Published on March 23, 2014
FYBBI SEMESTER 1 PROJECT PRINCIPLES OF MANAGEMENT GROUP 2 PRESENTATION 3
DEVELOPMENT OF MANAGEMENT THOUGHT'S Project Topic 4
INTRODUCTION Management is the art of getting work done through others in an organized manner. 5
74 Important Stages in the Development of Management Thoughts NEO- CLASSICAL APPROACH MODERN APPROACH CLASSICAL APPROACH
FREDRICK TAYLOR'S SCIENTIFIC MANAGEMENT Major contributions of scientific management were:- • Motion and time study • Piece-rate wage systems • Scientific selection and training 7
13 HENRY FAYOL’S ADMINISTRATIVE MANAGEMENT 8
9 Division of labor Authority & Responsibility14
Discipline • Discipline means sincerity, obedience, resp ect of authority & observance of rules and regulations of the enterprise. • Use in banking sector • Use in insurance company Unity of Command • A subordinate should take order from only one boss and he should be responsible and accountable to him. • Use in banking sector • Use in insurance company 15 10
Unity of direction • It emphasizes the attainment of common goal under one head. • Use in banking sector • Use in insurance company Subordination of individual interests to general interests • Employees should surrender their personnel interest before the general interest of the enterprise. • Use in banking sector • Use in insurance company 16 11
Fair Remuneration to employees • Wage-rates and method of their payment should be fair, proper and satisfactory. • Use in banking sector • Use in insurance company Centralization and Decentralization • Anything which increases the role of subordinate is decentralization & anything which decreases it is centralization. • Use in banking sector • Use in insurance company 17 12
Scalar chain • Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate authority to the lowest”. Gang Plank clarifies that management principles are not rigid rather they are very flexible. • Use in banking sector • Use in insurance company Order • This principle is concerned with proper & systematic arrangement of things and people. Arrangement of things is called material order and placement of people is called social order. • Use in banking sector • Use in insurance company 18 13
Equity • Equity means combination of fairness, kindness & justice. Equity is essential to create and maintain cordial relations between the managers and sub- ordinate. But equity does not mean total absence of harshness. • Use in banking sector • Use in insurance company Stability of Tenure • Principle of stability of job creates team spirit and a sense of belongingness among workers which ultimately increase the quality as well as quantity of work. • Use in banking sector • Use in insurance company 19 14
Initiative • Workers should be encouraged to take initiative in the work assigned to them. It means eagerness to initiate actions without being asked to do so. • Use in banking sector • Use in insurance company Espirit de crops • Spirit De’ Corps inspires workers to work harder and together as one team. • Use in banking sector • Use in insurance company 20 15
• an influential writer, management consultant, and self-described “social ecologist.” • Wrote over 33 books to his credit • earlier works made a significant contribution to establishing what constitutes management practice • later works tackle the complexities - and the management implications - of the post-industrial 1980s and beyond. Peter Ferdinand Drucker 23 16
3 WAYS TO DETERMINE THE STRUCTURE OF THE ORGANISATION ACTIVITIES ANALYSIS RELATION ANALYSIS DECISION ANALYSIS 24 17
Abraham Maslow James March and Herbert Simon Douglas McGregor Victor Vroom Fredrick Herzberg Chester Barnard The behavioral scientists have shown how human beings bring to their charge characteristics of behavior, which the successful manager should helpfully understand. 25 Names of some behavioral scientists 18
BANKING SECTOR 26 19
WHAT IS A BANK? A bank is an institution which provides fundamental banking services such as accepting deposits and providing loans. Banker- Conducting current accounts for his customers Paying cheques drawn on him Collecting cheques for his customers. 27 20
NEED FOR BANKS BANKING IN INDIA 28 21
• Accomplishment of goals • Motivation & Specialization • Encourages initiative • Innovation • Facilitates growth and expansion • Encourages team work • Social obligation 29 22
INSURANCE SECTORS 30 23
WHAT IS INSURANCE? Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. 31 24
IMPORTANCE/ ADVANTAGES OF INSURANCE • Removal of uncertainties • Stimulant of business enterprise • Promotion of saving • Correct distribution of cost • Source of credit • Reduction of the chances of loss • Solution of social problems • Insurance as an investment • Promotion of international trade • Removing fear • Favorable allocation of factors of production • Growth of Business competition • Employment opportunity 32 25
• S o c i a l o b l i g a t i o n • S u r v i v a l a n d g r o w t h • E c o n o m i c d e v e l o p m e n t • F a c i n g c o m p e t i t i o n • A c h i e v e m e n t s o f g o a l s • S p e c i a l i z a t i o n & 33 26
CASE STUDY 34 27
• Jane managed the training department of ICICI Bank. • One of her best employee, Geeta, came to Jane one day with a job posting application. • Geeta wanted to transfer to another department where the employees supposedly did less work and got higher salary. • Jane learned that Geeta was very unhappy with the merit increase she had recently received. • Geeta believed that she could earn more money in the open position, which was three grades higher than the position she currently occupied. • Geeta now functioned more as an administrative assistant than as a departmental secretary (the position for which she had been employed). • Jane knew that the job evaluation system in use was valid and up-to- date, and that the grade differences between Geeta‘s job and the open position meant real differences in responsibility, skill and accountability. • Jane didn’t want to lose Geeta. 35 28
QUESTIONS •What were the reasons given by Geeta for wanting to post for a position in another department? What points are accurate and which are debatable? •How should Jane respond to Geeta’s request to transfer? How should Jane respond to Geeta’s salary complaints? 36 29
• Strength- In this case the strength is that Jane is an understanding supervisor who understands the problems of her juniors and tries to find a solution to their problems. • Weakness- The weakness is that Jane would be losing her best employee Geeta and that Geeta on her part is right up to some point. Even Geeta has got some misunderstanding about the new job that she is planning to join. • Opportunity- The opportunity to resign from a job and join some other place with higher salary is open for everyone even Geeta. • Threat- The resigning of Geeta due to some misunderstanding or misleading information would be a great loss to the Bank. 37 30
WHAT WERE THE REASONS GIVEN BY GEETA FOR WANTING TO POST FOR A POSITION IN ANOTHER DEPARTMENT? WHAT POINTS ARE ACCURATE AND WHICH ARE DEBATABLE?•Improper merit increase •Open position available •Less work-more pay •Changing job 38 31
HOW SHOULD JANE RESPOND TO GEETA’S REQUEST TO TRANSFER? HOW SHOULD JANE RESPOND TO GEETA’S SALARY COMPLAINTS? •Counsel Geeta •Ask Geeta to inquire •Pay Proper salary •Try to talk to her •Ask her to review the new job 39 32
CONCLUSION & REFERENCES 40 33
CONCLUSION • Management is very important for the success of banks and insurance companies. • The principles stated by Henry Fayol and Peter Drucker help in managing the banks more efficiently and effectively. • For the better functioning of banks and insurance companies it is necessary to follow the guidelines given by the leaders of the past. • Whenever there is proper management, 41 34
BIBLIOGRAPHY • 50 case studies • Practice of management by Peter Drucker • Principles of management by N.G. Kale and M. Ahmed • The Principles of Scientific Management by Taylor WIBLIOGRAPHY • Wikipedia the free encyclopedia – Peter Drucker, Henry Fayol, Fredrick Taylor, Management, Max New York Life Insurance Company, Banks, ICICI bank with pictures/ images • www.scribd.com – insurance, Drucker • www.wisegeek.com – insurance companies • www.yaymicro.com – pictures/ images • www.icicibank.com – ICICI bank with pictures • Wiki answers – 42 35
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