Banking Hemant

8/8/2019 Banking Hemant

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Sneha Khyatam - 59

Hemant Vyas -

Gaganpreet Bright

Yogesh Tripathi Abhay

Deepak

FarheenSanjay Mohite



Mary Parker Follet-

³Management is the art of getting things done

through people.´

Henry Fayol-

³To manage is to forecast and to plan, toorganize, to control, to command, to coordinate and to

control.´



Management is CREATIVE PROBLEMSOLVING. This creative problem solving is

accomplished through management functions.



In 1930s, Luther Gullick coined thefunctions of management.

In 1916, Henri Fayol provided a functional

approach to management in his book. ³Industrial andGeneral 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-

³Planning 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.

LouisAllen states-

³Organizing is a process of identifying

and grouping of the work to be performed, definingand delegating authority and responsibility, and

establishing relationships to accomplish objectives.´



J Knootz states-

³Filling 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-

³Directing concerns the totalmanner 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

com leted´



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.GeorgeTerry states-

³Controlling 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-

³Coordination 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 R egulationAct 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.³

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.

R etail 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.

Investment Banking: R elating to activities on the financial markets.



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 normaldeposits 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 sendingnotices 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

Bank Of Baroda11.50(long trm)11.00(med

trm)

10.50(short

trm)

Bank Of India

12(long trm)

11.50(shorttrm)

ICICI Bank 11.25 1yr<2yrs 5.75

2yrs<3yrs 6.75

3yrs & above 7.00

1yr < 2yrs

2yrs < 3yrs

3yrs &

above

6.00

6.25

5.50

1yr- 3yrs3yrs &

above

5.005.00

I yr

2yrs &above

5 yrs

6.25

6.506.75



Technological improvements: In organizing the technological

resources these days the banks are using computers to form a/c¶s, keepdata 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 teamwork 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 thiseffective 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.

R esolves conflicts: There are conflicts which takes place. Theseconflicts 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:

R eceiving 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.

Documents

Banking Hemant