ABFM CAIIB notes – Unit 1
Dear CAIIB Aspirants,
These notes are a part of 2024 CAIIB Video library course of ADVANCED BUSINESS & FINANCIAL MANAGEMENT (ABFM) by Motivational Banker. These notes are intended to help you prepare better for your CAIIB exam.
These notes are a sample version of the full PDFs prepared by team Motivational Banker.
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Module A : UNIT 1- Basics of Management
Definitions of Management
“Management is an art of Getting things done through People”
Fayols Definition of Management
According to Henri Fayol “management is a process of forecast followed by planning, organization, command, coordination and control of activities of others.
In simpler terms, management refers to proper organization and delegation of work along with ensuring its completion.
Henri Fayol, widely acknowledged as the founder of modern management methods, was an early management writer who was instrumental in contributing immensely to ‘formal organisation theory’.
Henri Fayols Five Functions of Management
- Planning 2. Organizing 3. Command 4. Coordination 5. Control.
Taylor’s Definition of Management
According to Taylor, “Scientific Management is an art of knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”.
In Taylors view, if a work is analyzed scientifically it will be possible to find one best way to do it.
Scientific management, also known as “Taylorism’, is a management theory which was used for analysing and synthesizing workflows with the main objective of improvement of economic efficiency and labour productivity.
Six elements of scientific management as formulated by Taylor:
- Work Study
- Standardization of tools and equipment
- Scientific selection, placement and training
- Development of functional foremanship
- Introducing costing system
- Mental system
Functions of Management
- Planning
- Organising
- Staffing
- Directing
- ControllingPlanning
Planning is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance – what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”.
A plan is a future course of actions. It is an exercise in problem solving & decision making.
Organising
Organizing is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals.
