Sneha Khyatam - 59

Hemant Vyas -
Gaganpreet Bright
Yogesh Tripathi
Abhay
Deepak
Farheen
Sanjay Mohite
Mary Parker Follet-
“Management is the art of getting things done
through people.”
Henry Fayol-
“To manage is to forecast and to plan, to
organize, to control, to command, to coordinate and to
control.”
 Management is CREATIVE PROBLEM
SOLVING. This creative problem solving is
accomplished through management functions.
 In 1930s, Luther Gullick coined the
functions of management.
In 1916, Henri Fayol provided a functional
approach to management in his book. “Industrial and
General Management”.
These are the following functions of
management:
Planning, Organizing, Staffing, Directing,
Coordinating, Controlling.
 It is an ongoing process of developing
the business mission and objectives and determining
how they will be accomplished.
James Stoner states-
“Planning is a process of
establishing goals and a suitable course of action for
achieving those goals.”
 It is establishing the internal organizational structure
of the organization. It is in this function that managers
distribute authority to job holders.
Louis Allen states-
“Organizing is a process of identifying
and grouping of the work to be performed, defining
and delegating authority and responsibility, and
establishing relationships to accomplish objectives.”
J Knootz states-
“Filling and keeping, positions in the
organization structure.”
 It is influencing people’s behaviour
through motivation, communication, group dynamics,
leadership and discipline.
J.L.Massie states-
“Directing concerns the total
manner in which a amnager influences the actions of
subordinates. It is the final action of a manager in
getting others to act after all preparations have been
completed”
 It is a 4-step process of establishing performance
standards based on the firm’s objectives, measuring and
reporting actual performance, comparing the two, and taking
corrective or preventive action as necessary.
George Terry states-
“Controlling is determining what is being
accomplished, that is, evaluating the performance, and if
necessary, applying corrective measures so that the
performance takes place according to the plans.”
Theo Haimann states-
“Coordination is the orderly
synchronizing of efforts of the subordinates to provide
the proper amount , timing and quality of execution so
that their unified efforts lead to the stated objective,
namely the common purpose of the enterprise.”
 Banking Regulation Act of
India, 1949 defines Banking as "accepting, for the purpose
of lending or investment of deposits of money from the
public, repayable on demand or otherwise and withdraw
able by cheques, draft, order or otherwise.“

A banker or bank is a financial institutions whose primary

activity is to act as a payment agent for customers and to
borrow and lend money
•
•Commercial banks: An institution which accept deposits, makes
business loans, and offers related services.

•Retail Banking: Dealing directly with small business and individuals.

• Business Banking: Provide services to mid-market business.

• Private Banking: Providing wealth management services to High Net

Worth Individuals and families.

 Functions Of Banks
It is the most important function of bank as it involves the following
• First understand the financial needs: the financial needs of the
banking institution is understood by the group of employees and the
manager.
• Supporting informed decision making: Financial planning process
lays strong emphasis on the active involvement while identifying the
most appropriate financial solutions for the needs.
• Customizing and integrating approach: Financial planning is
supported by an integrated approach to investments and insurance
wherein specific product solutions are suggested after a comprehensive
financial plan that has been put in place.
•Creation of wealth: The wealth is created in the bank by the normal
deposits made by the customers or the a/c holders. Addition wealth, if
needed is provided by the RBI.
• To get rid of debts: There are situation when banks too banks too
faces debts in the form of bad debts. These debts are collected by
sending notices to the creditors or by cancelling their a/c’s etc.
• Financial planning: The financial takes place at the year end or when
there is any changes from the RBI. Basically financial planning is
already decided by the RBI, and the banks follow the same.
 Functions of Banks

• Common objectives of banks: the common objective of the baanks

include to achieve the predecided goals and to work as per the guidelines
of the RBI
• To attain the predecided goals: In the banks the predecide goals are
basically to complete the daily target of work like mainting daily
transactions of the cutomers, entering data in the books of a/c’s or
computers, total no. of new a/c holders etc.
• To ensure co-ordination: the manager in the bank ensures
coordination by giving group projects, picnic trips, group discussion etc.
• Optimum utilization of resources : There is optimum utilization of
human, financial and physical resources effectively and efficiently.
Interest rates of some banks:
BANKS PLR DEPOSIT RATES

State Bank Of India 10.75 1yr < 2yrs 6.00

2yrs < 3yrs 6.25
3yrs & 5.50
above
11.50(long trm) 1yr- 3yrs 5.00
Bank Of Baroda 11.00(med 3yrs & 5.00
trm) above
10.50(short
trm)
12(long trm) I yr 6.25
Bank Of India 11.50(short 2yrs & 6.50
trm) above 6.75
5 yrs
ICICI Bank 11.25 1yr<2yrs 5.75
2yrs<3yrs 6.75
3yrs & above 7.00
• Technological improvements: In organizing the technological
resources these days the banks are using computers to form a/c’s, keep
data of the a/c holders and also for counting the notes.

• Organizational structure: It is the formal decision-making framework

by which job tasks are divided, grouped, and coordinated. Formalization
is an important aspect of structure.

• Optimum utilization of resources : There is optimum utilization of

human, financial and physical resources effectively and efficiently.
 Functions of banks
• Continuous process: It a continuous process in all the organizations.
In banks the performance of the employees are monitored and according
to that the new interns are selected.

• Training: Now a days in banks a training are given to the employees

and the manager due to the introduction of new technology, specially to
the experienced and the elderly crowd.

• Labor relations: The groups formed in banks are formed such that the
both the experienced and the new crowd are in the group.

• Team work: Due to formation of such a group there is always team

work and the manager ensures that there is team work within the group.
•Labor relations: The groups formed in banks are formed such that the
both the experienced and the new crowd are in the group.

• Team work: Due to formation of such a group there is always team

work and the manager ensures that there is team work within the group.
 Functions of Bank
•Focus on goals: It basically depends in the goals of the banks that has
to be achieved. The bank manager inspires and motivates the employees
to achieve the goals.
• Chain of command: Directing is a process of chain of command. The
RBI gives direction to the bank owner, the owner to the branch
manager, the branch manager to the employees.
• Team work: The motivated direction from the branch manager
develops team spirit within the employees of the bank. Due to this
effective direction the employees work as team.
 Functions of banks

•Creativity: The creative in the banks takes place while there re group
discussions, projects, implementation of new offers etc

•Group activity: It always take place in the banks as the works are
assigned in groups only. This leads to better results in the work among
the employees.

•Resolves conflicts: There are conflicts which takes place. These

conflicts basically takes place due to disagreements among the
employees which re generally solve easily with the consult of the
manager.
•Encourages initiative: Better coordination between the managers and
the employees encourages initiative on the part of the employees. Due to
this effective decisions are made.

•Higher efficiency: Higher efficiency takes place when there are more
returns at less cost. This takes place in the banks due to better and
effective coordination among the managers and the employees.
Commercial banks:
•Receiving deposits
•Advancing loans
• Overdraft
• Investment of funds
• Discounting bills of exchange
• Agency functions
• Miscellaneous
 As per the research conducted on different banks and
from the interview taken of different employees of the banks we have
come to the conclusion that these are the following functions that the
banks are following.