Assignment

Principles and Process of Management

On

Vision & Mission statements

Organizational Structure

Communication, Direction

And Controlling

Of

Central Bank of India

Date of Submission: 15-09-2010 Submitted by

Bhaskar Goswami MBA0510

Deepanjol Sawra MBA1010

Flora Biswas MBA1310

Khrawpyrkhad Rymnong MBA1810

Maidangshree Brahma MBA2210

Rajesh Sohmat MBA2710

MBA 1st Semester

NEHU, Tura Campus- 794002

MISSION ♦ To transform the customer banking experience into a fruitful and enjoyable one. ♦ To leverage technology for efficient and effective delivery of all banking services. ♦ To have bouquet of product and services tailor-made to meet customers’ aspirations. ♦ The pan-India spread of branches across all the state of the country will be utilized to further the socio economic objective of the Government of India with emphasis on Financial Inclusion.

VISION

To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to positively contribute to the emerging needs of the economy through consistent harmonization of human, financial and technological resources and effective risk control systems.

PROFILEEstablished in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The establishment of the Bank was the ultimate realization of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the nation and the country's asset'. He also added that 'Central Bank of India lives on people's faith and regards itself as the people's own

bank'.  

ORGANIZATION STRUCTURE

Organization structure denotes the pattern of relationship among the positions and jobs within an organization. It is the structure of human relationships or the network of horizontal and vertical dimension designed to achieve common goals. It is a systematic combination of people, functions and facilities which may take the form of line, staff, and line and staff.

The structure of an organization is generally shown in the organization chart. It shows the authority and responsibility relationship between various positions in the organization. A good organization structure should be dynamic and capable of changing in accordance with the situation or conditions.

FORMS OF ORGANIZATION STRUCTURE:-

1.LINE ORGANIZATION:

Line organization is the oldest and simplest form of organization. Line structure is generally found in small business units, although this is the basic framework of organization in large business units. Under this system, authority flows vertically from top to bottom. On the other hand, responsibility goes upwards. Everyone is responsible for his work and is accountable to his boss. Since authority and responsibility flows in an unbroken straight line, this type of organization is strictly based on the principle of ‘unity of command’ and ‘scalar chain’.

Type of line organizations: There are two kinds of line organizations. They are

Pure: In pure line organisation all the activities of one level are the same. They are grouped into departments or division solely for control and direction.

Departmental: In departmental line organisation, all the activities of the business are divided into departments. Each department is a self-sufficient units

Forman

Line Organization

2.FUNCTIONAL ORGANISATION

Functional organization is a means of putting the specialists in top positions throughout the organization. They have a limited power

Production Manager

Chief Engineer

Mechanical Engineer Electrical EngineerProduction Engineer

Workshop Supervisor

Superintendent Manufacturing Plant

Design Engineer Superintendent Powerhouse

Foreman

Senior Supervisor

Workers

of command. Their functional authority remains confined to functional guidance of different departments. Under this system the whole work of management and directions of subordinates are divided in accordance with the type of work involved.

e

3.LINE AND STAFF ORGANISATION

A line and staff organization is one that has line manager with direct, vertical relationships between different levels in the organization in addition to the specialists responsible for advising and assisting the line managers.

Chief Executive

Work Manager

Purchase Manager

Personnel Manager

Marketing Manager

Finance manager

Company Secretary

SuperintendentSuperintendent Foremen

Board of Directors

Chief Executive

Personnel development

Research department

Finance manager

Law department

Foreman machine shop Foreman assembly shop Foreman receiving and shipping

operators operators operators

Plant manager

4.PROJECT ORGANIZATION

Project organization is a temporary structure designed to accomplish a specific task or project with the help of specialists drawn from different functional departments within the organization.

5.GRID ORGANIZATION

Is a permanent organization structure designed to accomplish specific projects by using teams of specialist drawn from different functional departments within the organization.

6.COMMITTEE ORGANIZATION

Is a group of two or more appointed, nominated or elected persons to consider, discuss, decide, recommend or report on some issue or matter assigned to it.

The organizational structure of Central Bank of India in India level is as follows:

Corporate office

Zonal office

Regional office

Branches

The Central Bank of India in Tura level follows the line organizational structure as follows:

 Finding and Analysis at Tura Level:

In the Branch level of Central Bank of India in Tura level the pure line structure is followed. The head of the branch is the Branch Manager who is a Scale II officer. He has the duty to maintain the branch and manage the other hierarchical employees under him. Then comes the Assistant Manager who manages the operations and loans facilities. Thereafter follows the Head Cashier and then the Computer Terminal Officer (CTO) who is responsible for the operations of Networking and Management of the computer systems. After this follows the Head Peon who is responsible for receiving and dispatch of documents and letters. Then the Security Guard and the Peon who fall in the last hierarchical position of the organization.

DIRECTION:

Direction means issuance of orders and leading and motivating subordinates as they go about executing orders. According to Haiman “Directing consists of the

Branch manager

Assistant manager

Head cashier

Computer terminal operator

Head peon

Peon & guard

PTSK

process and techniques utilized in issuing instructions and making certain that operation are carried on as originally planned.

Requirements of Effective direction:

Some effective principles of effective direction may be outlined as follows;

Harmony of objectives.

Unity of command.

Direct supervision.

Effective communication.

Follow Through.

Thus direction is a vital managerial function. Without it the planning, organizing and staffing functions will go useless .Still the manager must ensure proper proclamation of orders and be ready to motivate employees.

Direction system in Central Bank of India:

In Central Bank of India, the higher level managers have the power and authority in directing the lower level employees. Further upper level managers have been empowered upto certain limits of money power which they can use for the proper functioning and development of their concerned branches. As of today, the Zonal offices can take decisions for maintenance function and development up-to Rs 5 Crores, the Regional offices can take decisions up-to Rs 2.5 Crores and the Branch office Scale II officer can take decide expenses for maintenance and development and functioning up-to Rs 1 Crore.

COMMUNICATION

Communication is a social process which means exchange of ideas, facts, opinions, information and understanding between two or more persons. It may be defined as the transfer of information from a sender to a receiver, with the

information being understood by the receiver. It can be said that the purpose of communication are:

To provide the information and understanding, necessary for group effort (i.e. the skill to work).

To provide the attitudes necessary for motivation, co-operation and job satisfaction (i.e. the will do work).

COMMUNICATION PROCESS

Sender Reciever

COMMUNICATION FLOW IN ORGANIZATION

In an effective organization, communication flows in various directions. The different kinds of information flows are as follows.

a) Upward-downward communication

Communication flows both from people at higher levels to those at lower levels in the organizational hierarchy and from subordinates to

Feedback

Transmission

of message

Noise

Encoding Thought Reception Decoding Understanding

superiors and continues up the organizational hierarchy.

b) Horizontal communication

Communication includes the flow of information among the people on same or similar organizational levels.

c) Diagonal/crosswise communication

Communication flow among the persons at different level who have no direct reporting relationship .This kind of information is used speed information flow, to improve understanding and to coordinate efforts for the achievement of organizational objectives.

Diagram for flow of communication

Top Level

Middle Level

Lower Level Leve Level

a) Upward downward communication :- A-B,A-C,B-D,B-E,C-F,C-G

b) Horizontal communication:- B-C,D-E,F-G

c) Diagonal/Crosswise communication:- F-B,D-C

A

B C

D E F G

Communication flow in Central Bank of India in Tura level

The communication system followed in Central Bank of India is Upward-Downward communication. For example; suppose the Head Cashier of any branch wants to communicate with the Regional Office, and then he/she can communicate the same via the Branch Manager only. Similarly if the Corporate Office wants to communicate to all the Branch offices of the organization, then it has to communicate the information via the Zonal offices, after that they will communicate with the Regional offices and then they will communicate the same information to all the Branch offices. The other way employees also have the right to directly communicate with their department or branch head regarding any problems or needs.

MOTIVATION

Motivation can be defined as an inner urge or feeling which drives a person towards achievement of a set of goals. It is the most important factor for the performance of an individual.

In management circle probably, the most popular explanations of motivation are based on the need of the individual .In short, all people have needs that they want satisfied. Some are primary needs such as those for food, shelter, sleep needs that deal with physical aspects of behavior. Secondary needs are psychological needs which are learned primarily through experience. This needs vary significantly by culture and by individuals. Secondary needs consist of internal states such as the degree for power, achievement and love.

Several theorists including Abraham Maslow, Fredrick Herzberg, David McCelland, Clayton Alderfer and Victor Vroom have provided theories to explain need such as source of explanation.

Abraham Maslow's hierarchy of needs theory

HIGHER LEVEL NEEDS TO SATISFY,OFFER:

Self-actualization needs Creative and challenging work

Participation in decision making

Job flexibility and autonomy

Esteem Needs Responsibility of an important job

Promotion to higher status job

Praise and recognition from boss

LOWER LEVEL NEEDS TO SATISFY ,OFFER:

Social Needs Friendly coworkers

Interaction with customers

Pleasant supervisor

Safety Needs Safe working conditions

Job security

Base compensation and benefits

Physiological Needs Rest and refreshment breaks

Physical comfort on the job

Reasonable work hours

HERZBERG’S TWO FACTOR THEORY

ALDERFER’S ERG THEORY

Existence needs are desires for physiological and material well being.

Relatedness needs are for satisfying interpersonal relationships.

Growth needs are desires for continued psychological growth and development.

Mc Celland’s acquired needs Theory

Need for achievement is the drive to excel.

Need for power for is the desire to cause others to behave in a way that they would not have behaved in a way that they would not have behaved otherwise.

Need for affiliation is the desire for friendly, close interpersonal relationship and conflict avoidance.

Motivation practice in Central Bank of India

In the case of Central Bank of India which is a Public Sector Undertaking(PSU) by the Government of India and is functioning in India since 1911, with 3563

Hygiene or Maintenance factors Motivators or Satisfiers

Salary Achievement

Job Security Recognition

Working conditions Work itself

Organizational policies Growth opportunities

Quality of supervision Responsibility

Branches and 34826 employees, motivation has played an exceptional role for this organization. Out of the total number of employees about half of them are lowly educated and many lower level managers might be non-professionals. However while moving towards the factor of motivation, these large number of Indian masses who are just surviving with minimum needs, getting any kind of a job in a PSU like Central Bank of India is itself a motivating factor for them.

The lower level employees give their time and energy to complete their duties in whatever post may be. As we rise towards middle and higher level managers, definitely they have the caliber but most of all what drives them is to out-shine, out-perform and live a standard life. With the implementation of the Sixth pay Commission in India in 2008, the salaries of the employees in public sector has been raised which is a very motivating factor. There is always a matter of job security among employees which is very secure while working in Central Bank of India. Apart from these every employee gets benefits like holdays, pension, perks and so on facilities.

In the branch level the Branch Managers motivate the lower level employees in their branches. They will have to allow for leaves, give incentives and seminars and get trained the lower level employees according to their needs.

CONTROLLING

Controlling consists of verifying whether everything occurs in conformities

with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.

According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

Controlling has got two basic purposes

It facilitates co-ordination.

It helps in planning.

Features of Controlling Function: Controlling is an end function- A function which comes once the

performances are made in conformities with plans. Controlling is a pervasive function- which means it is performed by

managers at all levels and in all type of concerns.

Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always looks to future so that follow-up can be made whenever required.

Controlling is a dynamic process- since controlling requires taking reviewable method; changes have to be made wherever possible.

Controlling is related with planning- Planning and Controlling are two inseparable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.

Basic Control Techniques

The basic control techniques involve three steps:-

a) Establishment of Standards:The first step in the control process logically would be to establish plans.

However, since plans vary in detail and complexity standards are simply criteria of performance. Standards should reflect the various positions in an organization culture.

b) Measurement of Performance:

Although such measurement is not always practicable the measurement of performance against standards should ideally be done on a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. If standards are appropriately drawn and if means are available for determining exactly what sub-ordinates are doing, appraisal of actual or expected performance is fairly easy.

c) Correction of Deviation:

Correction of deviations is the point at which control can be seen as a part of the whole system of management and can be related to the other managerial functions. Managers may correct deviations by redrawing their plans or by modifying their goals or by exercising their organizing function through reassignment or clarification of duties.

Findings and Analyses in Controlling at Tura level:

Controlling as seen from the Branch manager’s point of view, he has duty to justify the goal and targets assigned to him in the office. The following measures are taken by the branch manager in Tura level while controlling the employees.

For absenteeism; it is very common problem happening in any organization. Whenever any employee is absent over his/her casual leave and goes absent without permission which hampers the proper functioning of the branch for that reason some amounts are deducted from their salary.

For underperformance; now a day’s almost all employees are recruited on fair and merit basis. However, due to any reason whenever the employees are unable to perform their tasks up to the standard, the branch manager enquires the matter personally and gives help by his own hands. If more is required, they also sent for training and development programs.

Breach of rules and regulations; it is a universal affair for people of any organization to behave dynamically and so employees often may find ways and means to break some rules and regulations like coming late to office, smoking in office premises or other misconducts. The branch manager has every right to speak face to face with these kinds of employees and give warning on repeated mistakes. If an employee makes a bad track record, his/her chances of getting promotion will be minimized. Overall all managers have to attain leadership and motivational seminars to keep self and other employee motivated.

References:

Tripathi P.C, Reddy P.N, “Principles of management”, 4th edition, Chapter 16.

Cannice Heinz Weihrich, Mark V, Koontz Harold, “Management A global and entreprenurial perspective”, 12th edition, Chapter 17.

Nolakha R.L, ”Principles of Management”, 2nd Edition, Chapter 13.

Bose D.Chandra,”Principles of Management and Administration”, 2nd

Edition, Chapter 9.

www.centralbankofindia.co.in

www.google.com

Interview of the Branch Manager, Central Bank of India, Tura Branch on 8th September 2010.