HOW MANAGEMENT THEORIES EFFECTIVELY CONTRIBUTE TO BANKING SECTOR OF GHANA’S

ECONOMY.

The most popular of the management theories applied in recent times are:

1) The system management theories

1) Contingency management theories
2) Theory X and theory Y
3) Scientific management theories
4) Classical management theories

But we are placing more emphasis on the classical management theory.

Throughout history, companies have been putting different management theories into practice. Not only
have they helped to increase productively but they have also improved quality. Although they were
developed long ago their effectiveness still works; help create interconnected work environments were
employee and employers work hand in hand to achieve a common goal.

CLASSICAL MANAGEMENT THEORY

This occurs within a structural administrative setting with recommended roles. It is directed towards
achieving the objectives and goals by influencing the efforts of others

1.Marks on Structure

2.Strict about what is upright for the firm

3.manage practically

HOW THE MANAGEMENT THEORIES WORK OR RELATE IN THE BANKING SECTOR

DIVISION OF WORK

This term helps to develop practice and familiarity among the staff and reduces effort or attention for
one person or a group. This helps in effective transaction with clients.

2.DISCIPLINE

IT outlines the formal agreement between employees and firm. Not only does it have to do with
dressing but the way an employee relates with clients .

2.Unity of command

It deals with the flow of information .it implies that subordinates should report to or receive orders from
only one superior and to whom they shall be accountable.

3.Unity of direction

It implies that all the members of an organization that share the same activities should work towards a
common goal . the goal should be ‘One Head One Plan’ rule

5.INITIATIVE
They are in the form of incentives, allowances [accommodation, healthcare, petrol ,car maintenance

This initiative boosts the morale of employees in the banking sector for effective work outputs

IMPORTANCE OF THE MANAGEMENT THEORIES IN THE BANKING SECTOR

INCREASE PRODUCTIVITY

There are number of tellers assessing to different customers which help in the fast rendering of services.
Also, their trained management background there is effective communication with clients

SIMPLIFIED DECISION MAKING

Applying the unity of command term, it eliminates any conflict that arises due to dual command which
may slow down decision making

ENCOURAGE STAFF PARTICIPATE

Due to tellers interaction with clients in the banking sector, they are able to know the grievances and
communicate them to management This helps in the development and improvement in the institution