Principles of Management

ABOUT THE PRINCIPLES

OF MANAGEMENT

INSIDE INTRODUCTION

CASE STUDY
INTRODUCTION
 PRINCIPLES
OF
MANAGEMENT
Management is a set of principles relating to
the functions of planning, organizing,
directing and controlling, and the application
of these principles in harnessing physical,
financial, human and informational resources
efficiently and effectively to achieve
organizational goals.
 01 02 03 04 05

DIVISION OF BALANCIN DICIPLINE UNITY OF UNITY OF

WORK G COMMAND DIRECTION
AUTHORITY
AND
RESPONSI
 06 07 08 09 10

SUBORDINA REMUNERA CENTRALIS SCALAR ORDER

TION OF TION ATION CHAIN
INTERESTS
 11 12 13 14 10

EQUITY STABILITY INITIATIVE ESPRIT DE

OF TENURE CORPS
 ABOUT
Kotak Mahindra Bank Ltd was incorporated in the year 1985 with the name Kotak Capital Management
Finance Ltd and In April 8, 1986, the company's name was changed Kotak Mahindra Finance Ltd.
The Bank offers transaction banking, operates lending verticals, manages IPOs and provides working
capital loans
Kotak Mahindra Bank Ltd is one of the fastest growing bank and among the most admired financial
institutions in India.
They have one of the largest and most respected Wealth Management teams in India, providing the
widest range of solutions to high net worth individuals, entrepreneurs, business families and employed
professionals.
They also offer investment products like Mutual Funds, Life Insurance, retailing of gold coins and bars
etc.
The Depository services offered by the Bank allows the customers to hold equity shares, government
securities, bonds and other securities in electronic or Demat forms.
Their tie-up with the Overseas Indian Facilitation Centre (OIFC) as a strategic partner gives them a
platform to share their comprehensive range of banking & investment products and services for Non
Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
The Bank offers comprehensive business solutions for the business community that includes the Current
Account, Trade Services, Cash Management Service and Credit Facilities.
The Bank addresses the entire spectrum of financial needs of Non-Resident Indians.
 DIVISION OF WORK

PRINCIPLE:
According to this principle the whole work must be divided into small tasks or units and
instead of assigning the whole work to one person, one task or a unit of work should be
assigned to one person according to the capability, qualification and experience of the
person.
When a person performs a part of job again and again he will become perfect and
specialized in doing that and the efficiency level of the employee will improve
IMPLEMENTATION:
At Kotak Mahindra bank there are different people employed for this purpose. There are
different employees for accepting cash deposits, clearing cheques, granting loan etc.
Each employee is guided by the branch operation manager, branch manager or by the next
senior person to that employee.
 AUTHORITY AND RESPONSIBILITY

PRINCIPLE:
Authority means power to take decision. Responsibility means obligation to complete the job
assigned on time.
According to this principle there must be a balance between the authority and responsibility.
As excess of authority without matching the responsibility may bring negative results and excess of
responsibility without matching the authority will not allow the worker to complete his job on time.
There should be a balance between both for best results.
IMPLEMENTATION:
At Kotak Mahindra Bank there are 2 verticals to follow this principle. The first one is the
imputer and the second is the authorizer.
The imputer enters the details of each and every transaction and the authorizer
simultaneously checks and verifies the transaction.
Both the imputer and the authorizer have been given the authority according to their work
which leads to completion of work on time.
 INITIATIVE
I
PRINCIPLE:
Initiative refers to chalking out the plan and implementing the same.
Fayol suggested that employees of an organization must be given an opportunity to take some
initiative in making and executing a plan. It gives immense satisfaction to the employees by doing so.
By following this principle manager can develop a feeling of belongingness among the employee.
.
IMPLEMENTATION:
At Kotak Mahindra Bank in every quarter there is a meeting held by the state head and managers in
which employees are invited to give their suggestions.
In this meeting the management discusses about the goals of the bank to be achieved and new plans
and rules that are to be implemented
The employees are invited to give their suggestions about the existing policies and the new policies
that the company will be introducing.
In order to encourage and foster continuous and transparent communication channels across the
length and breadth of the organization a structured "Communication Calendar" is followed. Through
such communication platforms employees get opportunities for skip level, leadership level and cross
functional interaction.
These channels are also actively used for seeking feedback, knowledge sharing and engagement
initiatives
 UNITY OF DIRECTION

According to this principle ”one unit means one plan” ,that is the efforts of all members and
employees of organisation be directed towards one direction.
If this principle is applied and followed nicely than tjis leads to coordination in the organisation.
In this organisation main aim is to satisfy customer needs. For this bank has already set his polices,
accounts and directs all the efforts of their employee towards the achievement of the organisational
goal and to satisfy customer.
 PRINCIPLE OF RENUMERATION OF A
PERSON
According to this principle employees must be paid fairly and adequately to give them maximum satisfaction.
The main purpose of this principle is to satisfy employee needs because an underpaid employee can’t give his
maximum.
In this organisation wages are given according to minimum wage act of government, by comparing the salary
with the other who are working on the same post.
Bank also compares the performance of the employees to determine the salary.
 DISCIPLINE
In an organization, discipline is like oil to the engine.
It constitutes about the following:
Sincerity about the work and enterprise
Following all orders and instructions
To have faith in the policies of the organisation
This is very relevant to bank, workforce with discipline is essential, who leads to a better quality and
quantity.
Example:
In the kodak Mahindra bank, if any employee found doing any kind of scam, whether it be anyone,
that person is punished.

We can see how punishment is significant, as bank being one of those sectors where the public is
affected greatly.
At bank we see the strict check for the discipline. The branch operations Manager checks
disciplinary level of the employees in the branch and their systematic working.
 UNITY OF COMMAND
According to this principle an employee should receive orders from the boss only and if it is not so, then he
will not be able to understand whose order must be executed first and gets a chance to give excuses by
saying that he was busy in executed in the was the other boss.
Example:
At Kotak Mahindra Bank on a macro and micro level again there are two departments.
1.sales department
2.operation department
Each of these departments has got 8 to 10 team members and a head to whom all the members have to
report about the activities carried by them.
The branch sales manager and the branch operations manager both will report about the activities carried
out by their departments to the branch manager.
And the branch manager report to the head of the zone.
The orders to each of these heads are given by their seniors only.
 STABILITY OF TENURE

This principle is established based on the belief that staff with a secured long-term tenure will use his
experience and knowledge gotten from working in the organization to initiate innovation, productivity, help
with the organizations growth and further increase the organizations profit base. Management in the
modern day suggests recruiting ready-made employees with experience and the right qualifications, hence
bank prefers recruiting the experienced staff, with retaining of the productive employees.
The positioned is not just filled b an employee, they research and then gather information about the job
applicant. They take information like the past and present employers, for this purpose.
As a matter of fact, Modern day firms are not keen on recruiting staff they invest so much in training before
they understand how work is supposed to be done in the organization.
this is the era of recruiting the best qualified staff, because, they believe from the beginning, they will
make work very easy and productive and afterwards get trained to improve on what they already know
how to do.
Example:
At, Kotak Mahindra Bank, employees are asuured on monthly basis. The manager after proper assessment,
warns those employees who didn’t perform to the satisfactory level and gives a chance for the
improvement.
But if the performance isn’t improving, they are sent for PIP (performance improvement plan) and here they
are given proper training.
The performance is tracked and they are given stars for it.
 SUBORDINATION OF INDIVIDUAL
INTERESTS TO THE GENERAL INTEREST.
In any group, the interest of the group should supersede that of the individual. When the
interests differ, it is the function of the management to reconcile them.

In a broader sense, when you are in a dilemma about a course of action, one that offers you large
benefits personally and another that benefits the organization as a whole, through slightly to your
personal detriment, choice of the latter indicates subordination of individual interest to general
interest.
-Good ans Peaceful working Environment

3.0
Great fun and free atmosphere in kotak
Deputy Manager (Current Employee) – Bakhtawar Bhavan, Nariman Point, Mumbai, –
November 30, 2018
In kotak great atmosphere there in work. People are so friendly and assist in your problems.
Good team work, supervisors are also good human being and try to develop each person after
consulting with them.
Pros
Free lunches at the time of workload
Cons
Providing tea at regular interval for refreshment
Was this review helpful?
5.0
Good
Assistant Manager (Former Employee) – Vijayawada, Andhra Pradesh – September 14, 2019
Working with Kotak is good.
Management is good.
Hr policies are good.
Basis upon our performance for every 2 yeas grade will be changed along with salary correction.
Was this review helpful?
4.0
Fun To Work And Lots Of Things to Be Learnt
Senior Manager (Document Verification Team Leader) (Current Employee) –
Noida, Uttar Pradesh – July 17, 2016
Every Day is a new challenge in the organisation, with these challenges have
learnt many things about banking which involves financial, and non financial
risk,Have learnt about people management and how to get things done from
team for the achievement of the goals of the bank
Pros
Working culture is good
Cons
Longs hours and salary
CENTRALISATION AND SCALAR CHAIN
Centralisation refers to the hierarchical level within an organisation that has authority
to make decisions. When decision making is kept at the top level, the organisation is
centralised; when it is delegated to lower organisational levels, it is decentralised .

Management and authority for decision-making process must be properly balanced in

an organization. This depends on the volume and size of an organization including its
hierarchy.

Hierarchy presents itself in any given organization. This varies from senior
management (executive board) to the lowest levels in the organization. Henri Fayol ’s
“hierarchy” management principle states that there should be a clear line in the area
of authority (from top to bottom and all managers at all levels). This can be seen as a
type of management structure. Each employee can contact a manager or a superior
in an emergency situation without challenging the hierarchy. Especially, when it
concerns reports about calamities to the immediate managers/superiors
1. A clear chain of command

2. Focused vision

3. Reduced costs

4. Quick implementation of decisions

5. Improved quality of work

 PRINCIPLE OF ORDER
- order doesn't mean command but it refers to the orderly arrangement of men and material.
- for this Fayol insisted that there must be a fixed place for a material or a person, so that no time and
energy is wasted in search of that material or the employee.
- Accordingly, at Kotak Mahindra Bank there's a developed system known as 'OUTLOOK'. It helps the
employees to know about the other employees at any time.
- An employee will also know the contact details of the other employee and even about the employees
who work under that employee.
- Therefore every asset has got a proper place at the bank as well as every employee has a proper
seating at the bank.
 PRINCIPLE OF EQITY

Equity refers to kind, fair treatment to the employees of the organization _Employees will put up their
maximum efforts only when they are treated with kindness and justice.
_If this principle is followed in an organization than the employees will get satisfied and will be
motivated which will lead to boost up their performance.
_At Kotak Mahindra Bank every employee are equally treated. There is no gender bias between any
employees.
_All the rules and regulations are same for both male and female workers, including the leave policy.
 ESPRIT DE CORPS
_It means union is strength. Fayol always emphasized on teamwork.
_Fayol believed that team contribution is always better and more than individual contribution.
_ Kotak Mahindra Bank is working on this principle only. The employees of the bank work in a team
and contribute all their efforts towards the achievement of organizational goal.
_An employee in the training session is also taught to work as a team and have a feeling of
belongingness towards the organization.
CONCLUSION
 Conclusion
In the end we conclude that all the principles are followed properly and it is ensure
that these principles are given priority first by the organisation.
It is the duty of the next head of the organisation to lead the organisation further by
maintaining the decorum of the organisation with the help of these principles.

These principles are complete in themselves and there is no possibility of changing

them so it is the basic requirement of every organisation.
THANK YOU
SUBMITTED BY:
NISTHA KUMARI
18BEE063
NITENDRA AGARWAL
18BEE064
TANISHA ANAND
18BEE118
SAUMYA SMRITI
18BEE103
RONAK AGARWAL
18BEE099
ANUSHKA SHRIVASTAVA
18BEE114