Short Question's Answer of Organization and Management - Banking Diploma Education

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Thursday, June 12, 2014

Short Question's Answer of Organization and Management

Management Science (Nov’10): Management Science is concerned with developing and applying models and concepts that help to illuminate management issues and solve managerial problems.
The models used can often be represented mathematically, but sometimes computer-based, visual or verbal representations are used.
The range of problems and issues to which management science has contributed insights and solutions is vast. It includes scheduling airlines, both planes and crew, deciding the appropriate place to site new facilities such as a warehouse or factory, managing the flow of water from reservoirs, identifying possible future development paths for parts of the telecommunications industry, establishing the information needs and appropriate systems to supply them within the health service, and identifying and understanding the strategies adopted by companies for their information systems.

Management by Objective (May'12, May’13, and Dec’12): Management by Objectives is a process whereby superior and subordinate managers of an Organization jointly define its common goals, define each individual's major areas of responsibility in terms Of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members.
The process of setting objectives in the organization to give a sense of direction to the employees is called as Management by Objectives.
It refers to the process of setting goals for the employees so that they know what they are supposed to do at the workplace.
Management by Objectives defines roles and responsibilities for the employees and helps them chalk out their future course of action in the organization.
Management by objectives guides the employees to deliver their level best and achieve the targets within the stipulated time frame.

Job Evaluation (Nov’10):  A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.
Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of gathering information about a job. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Thus, job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs.
Features of Job evaluation: The purpose of job evaluation is to produce a defensive ranking of jobs on which a rational and acceptable pay structure can be built. The important features of job evaluation may be summarized thus:
1.         It tries to assess jobs, not people.
2.         The standards of job evaluation are relative, not absolute.
3.         The basic information on which job evaluations are made is obtained from job analysis.
4.         Job evaluations are carried out by groups, not by individuals.
5.         Some degree of subjectivity is always present in job evaluation.
6.         Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

Job analysis (Nov’10): Job analysis: Job analysis is the formal process of identifying the content of a job in terms activities involved and attributes needed to perform the work and identifies major job requirements. Job analysis was conceptualized by two of the founders of industrial/organizational psychology, Frederick Taylor and Lillian Moller Gilbreth in the early 20th century. Job analyses provide information to organizations which helps to determine which employees are best fit for specific jobs.
Purpose of Job analysis: One of the main purposes of conducting job analysis is to prepare job descriptions and job specifications which in turn help hire the right quality of workforce into an organization. The general purpose of job analysis is to document the requirements of a job and the work performed. Job and task analysis is performed as a basis for later improvements, including: definition of a job domain; description of a job; development of performance appraisals, personnel selection, selection systems, promotion criteria, training needs assessment, legal defense of selection processes, and compensation plans. 

Job description (Nov’10): A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative, but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop competency architecture for an organization, from which job descriptions are built as a shortlist of competencies.
Creating a job description: A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis considers the areas of knowledge and skills needed for the job. A job usually includes several roles.
Roles and responsibilities: A job description may include relationships with other people in the organization: Supervisory level, managerial requirements, and relationships with other colleagues.
Goals: A job description need not be limited to explaining the current situation, or work that is currently expected; it may also set out goals for what might be achieved in future.
Limitations: Prescriptive job descriptions may be seen as a hindrance in certain circumstances:
1. Job descriptions may not be suitable for some senior managers as they should have the freedom to take the initiative and find fruitful new directions;
2. Job descriptions may be too inflexible in a rapidly-changing organization, for instance in an area subject to rapid technological change;
3. Other changes in job content may lead to the job description being out of date;
4. The process that an organization uses to create job descriptions may not be optimal.

Management of Objective (Dec’12): The main objectives of management are provides below:
1. Getting Maximum Results with Minimum Efforts: The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is basically concerned with thinking and utilizing human, material and financial resources in such a manner that would result in best combination. This combination results in reduction of various costs.
2. Increasing the Efficiency of factors of Production: Through proper utilization of various factors of production. Their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages and breakage of all kinds; this in turn leads to saving of time, effort and money which is essential for the growth and prosperity of the enterprise.

3. Maximum Prosperity for Employer & Employees: Management ensures smooth and coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other hand.

4. Human betterment & Social Justice: Management serves as a tool for the organization as well as betterment of the society. Through increased productivity & employment, management ensures better standards of living for the society. It provides justice through its uniform policies.

Mobile Banking (Dec’12): Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.
Mobile banking differs to mobile payment's which involves the use of a mobile device to pay for goods or services either at the point of sale or remotely, analogously to the use of a debit or credit card to effect an EFTPOS payment.
The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. Mobile banking has until recently (2010) most often been performed via SMS or the mobile web.

Strategic Planning (Nov’10, Nov’11 and Nov’12): Strategic planning determines where an organization is going over the next year or more, how it’s going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization. While the focus of a business plan is usually on a particular product, service or program.
There are a variety of perspectives, models and approaches used in strategic planning. The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization, expertise of planners, etc.
For example: there are a variety of strategic planning models, including goals-based, issues-based, organic, scenario (some would assert that scenario planning is more of a technique than model), etc.

1) Goals-based planning is probably the most common and starts with focus on the organization's mission (and vision and/or values), goals to work toward the mission, strategies to achieve the goals and action planning (who will do what and by when).

2) Issues-based strategic planning often starts by examining issues facing the organization, strategies to address those issues and action plans.

3) Organic strategic planning might start by articulating the organization's vision and values, and then action plans to achieve the vision while adhering to those values. Some planners prefer a particular approach to planning, e.g. appreciative inquiry.
Some, plans are scoped to one year, many to three years and some to five to ten years into the future. Some plans include only top-level information and no action plans. Some plans are five to eight pages long, while others can be considerably longer.
Quite often, an organization's strategic plan less already know much of what will go into a strategic plan (this is true for business planning, too). However, development of the strategic plan greatly helps to clarify the organization's plans and ensure that key leaders are all "on the same script". Far more important than the strategic plan document, is the strategic planning process itself.

Communication Process (Dec’12): Communication is a process of exchanging verbal and non verbal messages. It is a continuous process. Pre-requisite of communication is a message. This message must be conveyed through some medium to the recipient. It is essential that this message must be understood by the recipient in same terms as intended by the sender. He must respond within a time frame. Thus communication is a two way process and is incomplete without a feedback from the recipient to the sender on how well the message is understood by him.

The main components of communication process are as follows:
1. Context: Communication is affected by the context in which it takes place. This context may be physical, social, chronological or cultural. Every communication proceeds with context. The sender chooses the message to communicate within a context.

2. Sender / Encoder: Sender / Encoder are a person who sends the message. A sunder makes use of symbols (words or graphic, or visual aids) to convey the message and produce the required response. For instance, a training manager conducting training for new batch of employees. Sender may be an individual or a group or an organization. The views, background, approach, skills, competencies, and knowledge of the sender have a great impact on the message. The verbal and non verbal symbols chosen are essential in ascertaining interpretation of the message by the recipient in the same terms as intended by the sender.

3. Message: Message is a key idea that the sender wants to communicate. It is a sign that elicits the response of recipient. Communication process begins with deciding about the message to be conveyed. It must be ensured that the main objective of the message is clear.

4. Medium: Medium is a means used to-exchange / transmits the message. The sender must choose an appropriate medium for transmitting the message else the message might not be conveyed to the desired recipients. The choice of appropriate medium of communication is essential for making the message effective and correctly interpreted by the recipient. This choice of communication medium varies depending upon the features of communication. For instance - Written medium is chosen when a message has to be conveyed to a small group of people, while an oral medium is chosen when spontaneous feedback is required from the recipient as misunderstandings are cleared then and there.

5. Recipient / Decoder: Recipient / Decoder is a person for whom the message is intended / aimed L targeted. The degree to which the decoder understands the message is dependent upon various factors such as knowledge of recipient, their responsiveness to the message, and the reliance of' encoder on decoder.

6. Feedback: Feedback is the main component of communication process as it permits the sender to analyze the efficacy of the message. It helps the sender in confirming the correct interpretation of message by the decoder. Feedback may be verbal (through words) or non-verbal (in form of smiles, sighs, etc.). It may take written form also in form of memos reports, etc.

Industrial Relations (Dec’12): Industrial relations are a multidisciplinary field that studies the employment relationship. Industrial relations are increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships: this move is sometimes seen as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations. Other authors see employee relations as dealing only with non-unionized workers,
Where as labour relations are seen as dealing with unionized workers. Industrial relations studies examine various employment situations, not just ones with a unionized workforce. However, according to Bnice E. Kaufman "To a large degree. Most scholars regard trade unionism. Collective bargaining and labour-management relations, and the national labour policy and labour law within which they are embedded, as the core subjects of the field."
Initiated in the United States at end of the 19th century, it took off as a field in conjunction with the New Deal. However, it is generally a separate field of study only in English-speaking countries, having no direct equivalent in continental Europe. In recent times, industrial relations has been in decline as a field, in correlation with the decline in importance 'of trade unions, and also with the increasing preference of business schools for the human resource management paradigm.

E-commerce (Dec’11): Electronic commerce, commonly known as e-commerce or e-com, is the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.

Management by Exception (Nov’11): Management by Exception is a style of business management that focuses on identifying and handling cases that deviate from the norm.
Practice whereby only the information that indicates a significant deviation of actual results from the budgeted or planned results is brought to the management's notice. Its objective is to facilitate management's focus on really important tactical and strategic tasks. In MBE (Management by Exception), the decision that cannot be made at one level of management is passed on to the next higher level.
Management by exception has both a general business application and a business intelligence application. General business exceptions are cases that deviate from the normal behaviour in a business process and need to be cared for in a unique manner, typically by human intervention. Their cause might include: process deviation, infrastructure or connectivity issues, external deviation, poor quality business rules, malformed data, etc. Management by exception here is the practice of investigating, resolving and handling such occurrences by using skilled staff and software tools. Good management can contribute to efficiency of business processes. Often in these cases the process will be called exception management, as exceptional cases are not the sole focus of the managerial policy, and exception management (as opposed to management by exception) denotes a more moderate application of the process.

Inter-Branch Reconciliation (Nov’11): Inter-Branch Reconciliation is an important back-office function for Banks and its significance cannot be more emphasized in today's expanding world of banking. As commercial activities and money involved grow in magnitude, co-ordination between activities of all branches becomes a daunting task. With this in perspective, it becomes important for banks to protect their assets. In case of fraudulent or errors in transactions due to negligence, a good Bank Reconciliation system helps detect them. Once identified, the errors can be rectified or at the very least, short-circuit the progression of losses.
Therefore, it becomes imperative to have an efficient and robust IBR system, which can handle high volume of data with accuracy and also with an inbuilt flexibility to handle exceptions.

Performance appraisal/ merit-rating or performance evaluation (Nov’10):
Merit Rating: Performance appraisal, merit-rating or performance evaluation is one of the most important functions of personnel management! People differ in their abilities and aptitudes. The personnel management should know these differences to develop various development programmes in the organisation to have an efficient work force. Merit rating technique has been evolved to know the relative worth of the employee-quantitatively and qualitatively -on the job, in comparison to other fellow workers. Merit rating is used for measuring the merit or performance of an employee and comparing it with that of others in the same group. According to Flippo — "Merit-rating is a systematic, periodic and, so far as humanly possible, an impartial rating of an employee's excellence in matters pertaining to his present job and to his potentialities for a job.
According to Denyer, "Merit rating is an assessment according to individual ability which may be rewarded by additional payments to the ordinary rates of pay for the different job". According to Yoder, performance appraisal refers to all formal procedures used in working organisations to evaluate personalities and contributions and potential of group members". Thus merit-rating is a systematic evaluation by the supervisor or some qualified person of an individual worker's performance. The process of merit-rating starts at the time of recruitment and continues throughout the life of an employee in an organization.

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