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.

PROFILE
Established 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
Production Manager

Chief Engineer

Mechanical Engineer

Workshop
Supervisor

Design
Engineer

Production Engineer

Superintendent
Manufacturing Plant
Senior Supervisor

Electrical Engineer

Superintendent
Powerhouse

Forman
Foreman
Workers

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 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.
Chief Executive

Work
Manager

e
Superintende
nt

Purchase
Manager

Superintende
nt

Personne
l
Manager

Marketin
g
Manager

Finance
manager

Company
Secretar
y

Foreme
n

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.
Board of Directors
Chief Executive

Personnel
development

Research
departme

Foreman machine
shop
operators

Plant manager

Foreman assembly
shop
operators

Finance
manager

Law department

Foreman receiving and

shipping
operators

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:
Branch
manager
Assistant
manager
Head cashier
Computer
terminal
Head peon
Peon & guard
PTSK

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 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, cooperation and job satisfaction (i.e. the will do work).

COMMUNICATION PROCESS

Feedback

Transmission

Thought
Encoding

of message

Sender

Reception

Decoding

Understanding

Reciever
Noise

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 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

LowerDLevel Leve
Level

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

b) Horizontal communication:- B-C,D-E,F-G
c) Diagonal/Crosswise communication:- F-B,D-C

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

HERZBERGS TWO FACTOR THEORY

Hygiene or
Maintenance factors

Motivators or Satisfiers

Salary

Achievement

Job Security

Recognition

Working conditions

Work itself

Organizational policies

Growth opportunities

Quality of supervision

Responsibility

ALDERFERS 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 Cellands 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 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, outperform 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 managers 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 days 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.