Management is the act of getting people together to accomplish desired goals and objectives by using available resources efficiently and effectively. 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, there is the success in the companies and banks.

2. Project Topic
Development of Management
Thought

3. SR. NO TOPIC SLIDE. NO.
1 Introduction 1-4
2 Management practices in the past 5-7
3 Fredrick Taylor 8-11
4 Henry Fayol 12-21
5 Peter Drucker & Behavioral Scientists 22-25
6 Banking Sector 26-29
7 Insurance Sector 30-33
8 Case study 34-39
9 Conclusion & References 40-42
INDEX

4. Introduction
1

5. What is management?
Management is the act of
getting people together to
accomplish desired goals and
objectives by using available
resources efficiently and
effectively.
2

6. History of management
‘MANAGE’
Italian word – Maneggiare – handle or train
Latin word – Manus – hand
Management is often included as a factor of
production along with machines, materials
and money.
3

7. The size of management can
range
SINGLE FIRM LARGE ORGANISATION
4

8. MANAGEMENT IN THE PAST
5

9. Difficulties arise in tracing the
past history of management.
People have been shaping and
reshaping organizations for many
centuries.
6

10. In Ancient China
In Ancient India
In Ancient Rome
In Ancient Egypt
Double Entry System
In the 19th century
In the 20th century
7

11. Fredrick Taylor and Scientific
management
8

12. .•an American mechanical
engineer
•the father of scientific
management
•the first management
consultants.
•Scientific management-
analyzed and
synthesized work flows.
•Main objective-
improving economic
efficiency- labor
productivity.
Frederick Winslow Taylor 9

13. Contribution of scientific
management
Taylor major contributions were:-
•Motion and time study
•Piece-rate wage systems
•Scientific selection and training
10

14. BENEFITS LIMITATIONS
 Specialization &
Standardization
 Planning &
Controlling
 New Techniques
 Slide rule and other
work-saving
implements
 Work instructions
 Work standards
 viewed man as a
machine
 performance based
payments
 excess division of
labor
 authority with
managers
 Physiological
organization theory
11

15. Henri Fayol and his Principles
12

16.  French mining engineer and
director of mines
 developed a general theory of
business administration.
 developed theory of
management. which are
universally accepted and make
him universalistic.
 Here, we are giving some
important principles of
management.
Henry Fayol 13

17. Division of labor
Authority &
Responsibility
 Subdivision of work
makes it simpler and
results in efficiency. It also
helps the individual in
acquiring speed, accuracy
in his performance.
Specialization leads to
efficiency & economy in
spheres of business.
 Use in banking sector
 Use in insurance
company
 Authority &
responsibility are co-
existing. There should
be a balance between
the two i.e. they must
go hand in hand.
 Use in banking sector
 Use in insurance
company
14

18. Discipline Unity of Command
 Discipline means
sincerity, obedience,
respect of authority &
observance of rules and
regulations of the
enterprise.
 Use in banking sector
 Use in insurance
company
 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

19. Unity of direction
Subordination of
individual interests to
general interests
 It emphasizes the
attainment of common
goal under one head.
 Use in banking sector
 Use in insurance
company
 Employees should
surrender their
personnel interest
before the general
interest of the
enterprise.
 Use in banking sector
 Use in insurance
company
16

20. Fair Remuneration to
employees
Centralization and
Decentralization
 Wage-rates and
method of their
payment should be
fair, proper and
satisfactory.
 Use in banking sector
 Use in insurance
company
 Anything which
increases the role of
subordinate is
decentralization &
anything which
decreases it is
centralization.
 Use in banking sector
 Use in insurance
company
17

21. Scalar chain Order
 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
 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

22. Equity Stability of Tenure
 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
 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

23. Initiative Espirit de crops
 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
 Spirit De’ Corps
inspires workers to
work harder and
together as one team.
 Use in banking sector
 Use in insurance
company
20

24. Importance of 14 principles of
management in banks and
insurance companies
 Better understanding
 Increases efficiency
 Boost morale of the employees
 Social responsibility
 Co-ordination and control
 Acts as guide for research and
development
21

25. Peter Drucker and Behavioral
Scientists
22

26.  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

27. 3 WAYS TO DETERMINE THE
STRUCTURE OF THE
ORGANISATION
ACTIVITIES
ANALYSIS
RELATIO
N
ANALYSI
S
DECISIO
N
ANALYSI
S
24

28. 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

29. BANKING SECTOR
26

30. 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

31. NEED FOR BANKS
BANKING IN INDIA
28

32.  Accomplishment of goals
 Motivation & Specialization
 Encourages initiative
 Innovation
 Facilitates growth and
expansion
 Encourages team work
 Social obligation
29

33. INSURANCE SECTORS
30

34. 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

35. 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
 Productive utilization
 Insurance as an
investment
 Promotion of
international trade
 Removing fear
 Favorable allocation
of factors of
production
 Growth of Business
competition
 Employment
opportunity
32

36.  Social obligation
 Survival and growth
 Economic development
 Facing competition
 Achievements of goals
 Specialization & Motivation
 Better relation
33

37. CASE STUDY
34

38.  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

39. 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

40.  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
37

41. 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

42. 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

43. CONCLUSION & REFERENCES
40

44. 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, there
is success in the companies and banks.
41

45. BIBLIOGRAPHY WIBLIOGRAPHY
 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
 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 – management
in past, 14 principles of
42

46. THE END