Bangladesh Bank, the central bank of the country, was established as a body corporate vide the Bangladesh Bank

Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. The general superintendence and direction of affairs and business of the Bank are entrusted to a nine member Board of Directors which consists of the Governor as chairman, a Deputy Governor, three senior government officials and four persons having experience and proven capacity in the fields of banking, trade, commerce, industry or agriculture - all nominated by the government. The board, which is the highest policy making body, meets at least six times a year and at least once every quarter under the chairmanship of the Governor. The Governor, appointed by the government as the chief executive officer, directs and controls all the affairs of the Bank on behalf of the Board. Definitions The organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker , the basic task of a management is twofold: marketing and innovation. Practice of modern management owes its origin to the 16th century enquiry into low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More . As a discipline, management consists of the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing an organization's resources to achieve the policy's objectives. 2. The directors and managers who The size of management can range from one person in a small organization to hundreds or thousands of managers in multinational companies. In large organizations the board of directors formulates the policy which is then implemented by the chief executive officer. Some business analysts and financiers accord the highest importance to the quality and experience of the managers in evaluating an organizations current and future worth.

Profile Institution:

Established - After the liberation war, and the eventual

independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank. This reorganization was done pursuant to Bangladesh Bank Order, 1972, and the Bangladesh Bank came into existence with retrospective effect from 16 December 1971.
Head Office: Motijheel, Dhaka.

Number of

Branches: 9 branches.

Barishal Office Chittagong Office Motijheel Office Rangpur Office

Bogra Office Khulna Office Rajshahi Office Sadarghat Office

Sylhet Office

Vision The Bangladesh Bank (BB), through ensuring the quality of services and the competence of its staff, shall operate as a modern, dynamic, effective, and forward-looking central bank to manage the countrys monetary and financial system with a view to stabilizing the internal and external value of Bangladesh Taka conducive to rapid growth and development of the economy.

Mission To uphold the vision and in pursuant with the Bangladesh Bank Order of 1972, Bangladesh Banks mission is to promote and maintain macroeconomic and price stability through:

Formulating and implementing appropriate monetary policy consistent with the countrys national development goals; Pursuing prudent policies to ensure stable internal and external value of Taka;

Identifying policy priorities for implementation by the Government through assessing the transmission channels and the interactions of monetary policy with fiscal, exchange rate, and other macroeconomic policies and their impact on the economy; Proposing necessary legislative measures to attain the central banks objectives and perform its functions including strategies and regulations for and supervision of banking companies and financial institutions with the aim to providing efficient financial intermediation and financial services to large, medium, small, and micro enterprises and to pro-poor activities ; Promoting, regulating and ensuring a secure and efficient payment system, including the issue of Bank Notes; Giving advice to the Government on the interaction of monetary policy with fiscal and exchange rate policies, on the impact of various policy measures on the economy; Analyzing priority macroeconomic issues for policy advice and dissemination of information to attain the central banks social responsibility.

To this end, BB would ensure that it has the requisite human and infrastructural resources and build its capability to promote and ensure a robust and well-functioning financial sector. This mission statement pledges that the guiding philosophy of Bangladesh Banks operations would be sound regulatory framework conducive to the operation of efficient market mechanism along with transparency and accountability, professionalism, ethical standards, adoption of modern technology in operational and decision making processes, and trust and respect in all relations. Periodic strategic planning would serve to identify the emerging challenges, key changes affecting Bangladesh Banks internal and external environment and set its strategic guidelines, set priorities, promote improvements in management practices, and induce necessary changes in organizational culture. To fulfill its mission, Bangladesh Bank would undertake activities related to developing the national financial system and management of monetary, foreign exchange, and credit policies. The Bangladesh Banks core mission strategies cover both monetary policy and financial sector developments. Objectives of Bangladesh Bank

As the central Bank of Bangladesh, the broad objectives of the Bank are : a) To regulate currency issuance and to keep foreign exchange reserves. b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value. c) To preserve the par value of the Bangladeshi Taka. d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country's productive resources. e) To Reserve all the rights of the bank. Functions of Management

Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action.

Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.

Staffing: Job analysis, recruitment, and hiring for appropriate jobs. Leading/directing: Determining what needs to be done in a situation and getting people to do it.

Controlling/monitoring: Checking progress against plans. Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation does not take place in an organization, then employees may not contribute to the other functions (which are usually set by top-level management).

Principles of Management
Division of work. This principle is the same as Adam Smith's

'division of labour'. Specialization increases output by making employees more efficient.

Authority. Managers must be able to give orders. Authority gives

them this right. Note that responsibility arises wherever authority is exercised.
Discipline. Employees must obey and respect the rules that

govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organizations rules, and the judicious use of penalties for infractions of the rules.
Unity of command. Every employee should receive orders from

only one superior.

Unity of direction. Each group of organizational activities that

have the same objective should be directed by one manager using one plan.
Subordination of individual interests to the general interest. The

interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
Remuneration. Workers must be paid a fair wage for their

services.
Centralization. Centralization refers to the degree to which

subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralization for each situation.

 Scalar chain. The line of authority from top management to the

lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed.
Order. People and materials should be in the right place at the

right time.
Equity. Managers should be kind and fair to their subordinates. Stability of tenure of personnel. High employee turnover is

inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
Initiative. Employees who are allowed to originate and carry out

plans will exert high levels of effort.

Esprit de corps. Promoting team spirit will build harmony and

unity within the organization.

Theory X In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid

responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employee's compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses. Theory Y In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to Papa, to them work is as natural as play[1]. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive

view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human resource development. It's human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them. This theory is a positive view to the employees, meaning that the employer is under a lot less pressure than some one who is to influenced by a theory X management style.

Maslows Theory

Physiological needs For the most part, physiological needs are obvious they are the literal requirements for human survival. If these requirements are not met, the human body simply cannot continue to function. Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements. The intensity of the human sexual instinct is shaped more by sexual competition than maintaining a birth rate adequate to survival of the species. Safety needs With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety -- due to terrorist attack, war, natural disaster, or, in cases of family violence, childhood abuse, etc. -- people

(re-)experience post-traumatic stress disorder and trans-generational trauma transfer. In the absence of economic safety -- due to economic crisis and lack of work opportunities - these safety needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, and the like. Safety and Security needs include: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Love and belonging After physiological and safety needs are fulfilled, the third layer of human needs are social and involve feelings of belongingness. The need is especially strong in childhood and can over-ride the need for safety as witnessed in children who cling to abusive parents which is sometimes called Stockholm syndrome. The absence of this aspect of Maslow's hierarchy - due to hospitalism, neglect, shunning, ostracism etc. - can impact individual's ability to form and maintain emotionally significant relationships in general, such as: Friendship Intimacy Family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group, such as clubs, office culture, religious groups, professional organizations, sports teams, gangs, or small social

connections (family members, intimate partners, mentors, close colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others. In the absence of these elements, many people become susceptible to loneliness, social anxiety, and clinical depression. This need for belonging can often overcome the physiological and security needs, depending on the strength of the peer pressure; an anorexic, for example, may ignore the need to eat and the security of health for a feeling of control and belonging. Esteem All humans have a need to be respected and to have self-esteem and self-respect. Esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel self-valued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an inferiority complex. People with low self-esteem need respect from others. They may seek fame or glory, which again depends on others. Note, however, that many people with low self-esteem will not be able to improve their view of themselves simply by receiving fame, respect, and glory externally, but must first accept themselves internally. Psychological imbalances such as depression can also prevent one from obtaining self-esteem on both levels. Most people have a need for a stable self-respect and self-esteem. Maslow noted two versions of esteem needs, a lower one and a higher one. The lower one is the need for the respect of others, the need for status, recognition, fame, prestige, and attention. The higher one is the need for self-respect, the need for strength, competence, mastery, self-confidence, independence and freedom. The latter one ranks higher because it rests more on inner competence won through

experience. Deprivation of these needs can lead to an inferiority complex, weakness and helplessness. Maslow also states that even though these are examples of how the quest for knowledge is separate from basic needs he warns that these two hierarchies are interrelated rather than sharply separated (Maslow 97). This means that these levels of need, as well as the next and highest level, are not strict, separate levels but closely related to others, and this is possibly the reason that these two levels of need are left out of most textbooks. Self-actualization Main article: Self-actualization What a man can be, he must be. This forms the basis of the perceived need for self-actualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming. This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions. As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs.

Objectives of Bangladesh Bank As the central Bank of Bangladesh, the broad objectives of the Bank are :

a) To regulate currency issuance and to keep foreign exchange reserves. b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value. c) To preserve the par value of the Bangladeshi Taka. d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country's productive resources. e) To Reserve all the rights of the bank. Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can bean action or an opinion of choice.

Questionnaire
1) Why do you define mission of Bangladesh Bank? 2) Why do you define the vision of Bangladesh Bank? 3) Rate the following according to their importance in Management process? A) Planning B) Controlling C) Staffing D) Organizing E) Directing F) Coordinating 4) Which system approach you follow? Open system or close system. 5) Which one of fielders contingency approach Bangladesh follow?

A) Combining with outside environment B) On the job management 6) What types of goal Bangladesh bank have achieved? A) Specific B) Difficult C) Anticipated 7) Which one consider for designing the job? a) Job rotation b) job enlargement c) job enrichment 8) Which kind of leadership Bangladesh bank prefers? A) Centralized B) decentralized 9) On which kind of leader a manager should emphasize? A) Production oriented B) Employee oriented 10) What is the effect of Maslows hierarchy of need theory through Bangladesh Bank? 11) Does Bangladesh bank supported to Expectancy Theory of Victor H.Vrwm? 12) What is the goal setting process of Bangladesh Bank?