Definition - Management - Role of Managers - Evolution of Management Thought - Organization and The Environmental Factors - Trends and Challenges of Management in Global Scenario
Definition - Management - Role of Managers - Evolution of Management Thought - Organization and The Environmental Factors - Trends and Challenges of Management in Global Scenario
Definition - Management - Role of Managers - Evolution of Management Thought - Organization and The Environmental Factors - Trends and Challenges of Management in Global Scenario
OVERVIEW OF MANAGEMENT
Definition - Management - Role of managers - Evolution of Management thought -
Organization and the environmental factors – Trends and Challenges of Management in
Global Scenario.
1
Management
- as how the mind controls the human body and its function similar
management (mind) controls the various activities ( human body) in the
Organisation
- Collection of physical equipments, 4 M’s in Organisation – Men, Machine,
Materials, Money, and leads to nothing. For efficient and profitable
functioning it is necessary that all these factors are put to work in a co-
ordinated manner.
Management Definition
Management is the art of getting things done through others. Harold Koontz
Def as “ Management is the process of designing and maintaining an environment in
which individuals, working together in groups efficiently to accomplish selected
aims”
Characteristics of Management
• Mgt is Universal
• Mgt is dynamic
• Mgt is a group of managers
• Mgt is Purposeful
• Mgt is goal oriented
• Mgt is integrative Function
• Mgt is a Social process
• Mgt is a Multi-faceted discipline
• Mgt is a continuous process
• Mgt is a system of authority
• Mgt is a resource
• Mgt is intangible
2
• Mgt is profession, an art as well as a science
ADMINISTRATION VS MANAGEMENT
3
Management as an Art
• A manager applies his knowledge and skills to coordinate the efforts of his
people
• Mgt seeks to achieve concrete practical results
• Mgt is creative. It brings out new situation and converts into output
• Effective Mgt lead to realization of Organizational and other goals. Mastery in
Mgt requires a sufficiently long period of experience in, managing.
Management as Science
Thus, the theory (Science) and practice (art) of Mgt go side by side for the
efficient functioning of an organisation.
4
Management as a Profession
Mgt is not a full fledged profession now due to the following shortcomings
But in India it is developing into a profession and it will be achieved in due course.
Managerial Skills
• Conceptual skills
• Human Skills
• Technical Skills
• Design Skills – Decision making
5
Levels of Management
• To plan day to day production within the goals lay down by higher
authority
• To assign jobs to workers and to make arrangement for their training and
development
• To supervise and control workers and to maintain personal contact with
them.
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Roles of a manager ( Mintzberg)
1. Interpersonal Role - Interacting with people inside and outside the Orgn
• Figurehead – as a symbolic head of an organisation, the manager performs
routine duties of a legal nature
•Leader – Hiring, Training, motivating and guiding subordinates
•Liason - Interacting with other managers outside the orgn to obtain favours
and information
Importance of Management
Management is the dynamic life –giving element in every business. Without it the
resources of production remain resources and never become production. Sound Management
provides the following benefits .
• Achievement of group goals
• Optimum utilization of resources
• Fulfillment of social obligations
• Economic growth
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• Stability
• Human Development
• Meets the challenge of change
Grouping of Functions,
Organising Departmentation, delegation,
decentralisation, activity analysis,
task allocation
Supervision, Motivation,
Directing communication, Leadership, etc
Evolution of Management
Father of Management – Henry Fayol (1841 – 1925)
Henry Fayol contributed 14 principles to Mgt which is widely applied in all the Orgn
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
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6. Subordination of individual interest to general interest
7. Remuneration of personnel
8. Centralisation
9. Scalar Chain
10.Order
11.Equity
12.Stability of Tenure of Personnel
13.Initiative
14.Esprit-de-corps
Critical Evaluation
• Too formal
• Not pay adequate attention to workers
• Vagueness
• His principle hinted but did not elaborate that mgt can and should be
taught.
Scientific Management
“The art of knowing exactly what you want men to do and see that
they do it in the best and cheapest way.”
Mgt a Science based upon certain clearly defined principles
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♦Mental Revolution – Workers and Management, Workmen towards their
work, their fellowmen and towards their employees. Mental attitude of the two
parties.
1. Time Study
2. Motion Study
3. Scientific task Planning
4. Standardization and simplification
5. Differential piece rate system
6. Functional foremanship – According to Taylor, one supervisor cannot be
an expert in all aspects of work supervision. In system of Functional
Foremanship in which eight supervisors supervise a workers job.
i. Route Clerk
ii. Instruction card clerk
iii. Time and cost clerk
iv. Shop disciplinarian
v. Gang boss
vi. Speed boss
vii. Repair boss
viii. Inspector
Critical Evaluation
• Mechanistic Approach
• Unrealistic Assumptions
• Narrow View
• Impracticable
• Exploitation of Labour
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Outcomes
• Workers working in a group develop bond of relationships
• Behaviour at workplace depens on their mental state, emotions and
prejudices
• Emotional factors play an important role in determining
• Human and liberal attitude of supervisor helps in improving
performance
• Managerial skills and technical skills are not necessary to be a
successful leader.
• Contribution was famous, Gantt Chart, used for scheduling and control
of work.
• Task and Bonus plan ( Minimum wages is guaranteed to all workers
irrespective of output, Extra wages are paid for extra work)
APPROACHES TO MANAGEMENT
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3. Management Science Approach
4. System Approach
5. Contingency Approach
ENVIRONMENT
Money
Manpower Goods & services
Machinery Employment
Material Taxes
Method Others
FEEDBACK
12
Def . Peter Drucker “ Social Responsibility requires managers to consider whether
their action is likely to promote the public good, to advance the basic beliefs of our
society, to contribute to its stability, strength and harmony.”
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Social Responsibility of Business
Ethics in Managing
- Ethics is defined as the discipline dealing with what is good and bad, with moral
duty and obligation.
- Personal Ethics has been referred to as “ the rules by which an individual lives his
or her personal life.
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- Accounting ethics pertains to the code that guides the Professional conduct of
accountants.
Business Ethics is concerned with truth and justice and has a variety of aspects such
as expectations of society, fair competition, advertising, public relations, Social
responsibilities, Consumer autonomy and Corporate behaviour in the home country
as well as abroad.
Ethical Theories
- Utilitarian Theory suggests that plans and actions should be evaluated by their
consequences.
- Theory based on rights holds that all people have basic rights.
- Theory of justice demands that decision makers be guided by fairness and equity,
as well as impartiality.
Institutionalizing Ethics
This means applying and integrating ethical concepts into daily action. This can be
accomplished in 3 ways-
1. By establishing appropriate company policy or a code of Ethics
2. By using a formally appointed ethics committee
3. By teaching ethics in Management development programs
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Globalisation
Benefits of Globalisation
• Improves efficiency
• Improves factor Income
• Improves finance
• Gains from Migrations
Drawbacks of Globalisation
• Globalisation increases the problems of unemployment
• Domestic Industries finds difficulty in survival.
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• Only group of people who participate in the process of
Globalization will be benefited, this creates income inequality
within the country
• Control on domestic economy becomes more difficult
• Developing country suffers from the problem of brain-drain
International Business
- Involves commercial activities that cross national frontiers
- It is a process of Entrepreneur conducting business activities across
national boundaries
- It consist of Exporting, Importing, licensing, opening of Sales office
- The activities necessary for ascertaining the need and want of target
consumer often takes place in more than one country. When an
Entrepreneur executes his or her business model in more than one country
International Business Occurring.
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Globalization in India
Some major aspects of the policy of globalization in India are:
i)Liberalisation of imports:
Most imports has been put under open general licence (OGL) where
automatic permission is granted to import goods.Export oriented units (EOUs)
have been allowed to import freely all types of goods require by the unit for
manufacturing, production or processing. The Government in it’s trade policy
announced on 31st August 2004 has permitted import of second hand capital
goods without any age restrictions.
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UNIT II
PLANNING
Nature and purpose of planning - Planning process - Types of plans – Objectives - -
Managing by objective (MBO) Strategies - Types of strategies - Policies - Decision
Making - Types of decision - Decision Making Process - Rational Decision Making
Process - Decision Making under different conditions.
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PLANNING
- Deciding in advance what to do, how to do, when to do and who is to do it.
- Bridges the gap between where we are to where we want to go.
- Thinking before doing.
- Intellectual demanding process.
Nature of Planning
I Purposes or missions:
- Meaningful existence – special task
- Elements are primary market, profitability, management philosophy
and corporate image
Eg. 1. Distribution of goods & services
- ITC “ Satisfaction”
- Dupont “better things through chemistry”
- Hallmark “The social expression business”
- GEC / USH “We are in energy business”
II Objectives:
- Ends towards which all activities are directed
- They are the most basic plan and all other plans are based on the
objectives
- They are multiple in nature.
- MBO
- Objectives and goals are interchangeable
- They have hierarchy.
- They are verifiable
- They form a network.
- They differ in time span. Some are long term and short term.
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- Objectives may be general or specific.
- Classified into
External institutional objectives (to develop high degree of
corporate image – TATA)
Internal Objectives (profit/maximum rate of return)
III Strategies:
IV Policies:
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Advantages:
Limitations:
Types of Policies:
22
V Procedures:
Advantages:
- Minimizes the burden of decision making
- Leads to simplification of work flow
- Elimination of unnecessary steps.
- Developed after careful analysis of various operations which are
necessary to bring co-ordination in organization.
- Uniformity and conformity of action
- Aid to communication – steps to be followed to complete a
particular work.
- Medium of control to evaluate the performance of the subordinate
Limitations
- Rigidity- discourages improvement
- Fixed way of doing a particular job
- Need to be reviewed and updated constantly
VI Rules:
- Rules spell out specific required action or non action, allowing no
scope for discretion.
- Rules Vs Procedures Vs Policies
- Rules – no time sequence – “No smoking”
- Sequence of rules.
- Detailed recorded instructions
- Uniform handling of events
- To avoid repeated approval from higher levels for routine
matters.
- Offers definite direction to planning process
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VII Programs:
- Combination of goals, policies, procedures, task assignments,
steps to be taken resources to be employed to carry out a given
course of action.
- Time element is introduced
- Planning for future events and establishing a sequence of required
actions.
- Supported by budgets.
- Primary program & supporting programs.
VIII Budgets:
- Statement of expected results expressed in quantitative terms.
- Expected income and expenditure under different heads.
- Gives clarity, direction and purpose in an organization.
- Control device.
- Fixed or variable (flexible) budget.
- Functional budgets.
Steps in Planning:
1. Being aware of opportunities.
- SWOT analysis
2. Establishing objectives.
3. Developing premises
- Planning premises are forecasts, applicable basic
policies, and existing company plans.
- They are assumptions about the environment in which
plan is to be carried out.
- Forecasting is important for premising.
- Premises should be make practical what volume of
sales? What price?
4. Determining alternative courses of action
5. Evaluating alternative course of action
- Operation Research – Decision tree
6. Selecting a course of action
- Decision making
7. Formulating Derivative plans
- Supporting plans for basic plan
8. Numerating plans by budgeting
- Income and expenses
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Kinds of planning
25
Types of Planning (Time limit)
1. Corporate Planning
2. Divisional Planning
3. Strategic Planning
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Management by Objectives (MBO)
Process of MBO
Benefits of MBO
Improvement of managing
Clarification of Organisation
Encouragement of Personal commitment
Development of Effective control
Weakness of MBO
27
Planning Premises
EXTERNAL
Economic Environment
• Includes the type of economic system that exist in the economy
• The nature and structure of the economy, the business cycle,the
fiscal, monetary and financial policies of the govt, foreign trade
and foreign investment policies of the govt.
• The type of economic system, that is socialist, capitalist or
mixed provides institutional framework with in which business
firm have to work.
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SOCIAL AND CULTURAL ENVIRONMENT
- Members of a society wields important influence over business
firms.
- Activities of business firm may harm the physical environment and
impose heavy social costs.
- Business should consider the social implication of their decisions.
- Social responsiveness ‘the ability of a corporate firm to relate its
operations and policies to social environment in way that are
mutually beneficial to the company and society at large..
- Social responsibility / social responsiveness related to ethics.
TECHNOLOGICAL ENVIRONMENT
DEMOGRAPHIC ENVIRONMENT
• Includes the size and growth of population, life expectancy of
the people rural urban distribution of population the
technological skills and educational levels of labour force.
• Since new workers are recruited from outside the firm,
demographic factors are considered as parts of external
environment.
• The skills and ability of a firms workers determine to a large
extent how well the orgn can achieve its mission.
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NATURAL ENVIRONMENT
• In the ultimate source of many inputs such as raw materials,
energy which business firms use in their productive activity.
• Availability of natural resources in a region a country is a basic
factor in determining business activity in it.
• It includes geographical and ecological factors such as minerals
and oil reserves, water and forest resources wealth and climatic
conditions, port facilities are all highly significant for various
business activities.
• Not the availability of natural resources alone but also the
technology and ability to being them in use that determines the
growth of business and the economy.
INTERNAL ENVIRONMENT
• Internal factors are to a good extent controllable factors because
the firm can change or modify these factors to improve its
efficiency.
VALUE SYSTEMS
• Means the ethical beliefs that guides the organization in achieving
its mission and objective.
• The value system of a business orgn makes an important
contribution to its success and its prestige in the world of business.
• Value system of a business firm has an important bearing on its
corporate culture and determines its behavior towards its
employees, shareholders and society at large.
• Infosys “Our corporate culture is to achieve our objectives in
environment of fairness, honesty, transparency and courtesy
towards our customers employees, vendors and society at large”
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MISSION AND OBJECTIVES
ORGANISATION STRUCTURE
31
• Due to importance of HR for the success of a company these days
there is a special course for managers how to select and manage
efficiently HR of a company.
LABOUR UNIONS
32
Uncontrollable Factors – Enterprises has absolutely no control are uncontrollable
premises. Eg – War, natural calamities, new invention, population trends.
Effective premises
33
in Opportunity box
Forecasting
- Process of predicting future conditions, that will influence and guide the
activities, behaviour and performance of the Organisation.
Def – “ Forecasting is the formal process of predicting future events that will
significantly affect the functioning of the enterprises.
Features
Process
Developing the ground work
Estimating the future trends
Comparing actual with estimated results
Refining the forecast
Importance
Key to planning
Means of coordination
Basis for control
Executive development
Facing Environmental challenges
Forecasting Techniques
34
1. Time series Analysis – involves decomposition of historical series into its
various components. Viz – trend, seasonal variations, cyclical variations and
random variations. A trend can be known over the period of time and
projections can be made about future.
2. Historical Analogy – past history records
3. Correlation – to find the relationship between two variables. Eg. Between
advertising expenditure and sales volume, Future sales estimated on basis of
change in adv expenditure
4. Regression – To measure the relationship between two variables. To find the
relative movements of two or more interrelated series.
5. Delphi Technique – the minds of the experts in the concerned areas are
probed systematically.
6. Input output analysis
Types of Forecast
35
Decision Making
1. Indecisiveness
2. Time pressure
3. Lack of Information
36
4. confusing symptoms with causes
5. Failure to evaluate correctly
6. Lack of follow through
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UNIT III
ORGANIZING
Nature and purpose of organizing - Organization structure - Formal and informal groups I
organization - Line and Staff authority - Departmentation - Span of control -
Centralization and Decentralization - Delegation of authority - Staffing - Selection and
Recruitment - Orientation - Career Development - Career stages – Training - -
Performance Appraisal.
38
ORGANIZING
Definitions
Allen defines Organising as “ the process of identifying and grouping of the work to
be performed, defining and delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work most effectively together in
accomplishing their objectives.”
Process of organizing
- the manager differentiates and intergrates the activities of his Organisation
- Differentiation - the process of departmentalization or segmentation of
activities on the basis of some similarity
- Integration – Process of achieving unity of effort among the various
departments
Principles of Organising
1. Objectives
2. Specialisation
3. Span of Control
4. Exception – the higher level have limited time, only exceptionally complex
problem should be referred to them and routine matters be dealt by the
subordinates at the lower levels
5. Scalar Principle / Chain of command – line of authority
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6. Unity of Command
7. Delegation
8. Responsibility
9. Authority
10.Efficiency
11.Simplicity
12.Flexibility
13.Unity of Direction
14.Personal ability
Span of Management
Orgn with Narrow span – superior with less number of subordinate to monitor
Advatages
- Close supervision
- Close control
- Fast Communication, between communication between subordinates &
superiors
Disadvantages
- Superiors tend to get too involved in subordinate work
- Many levels of Management
- High cost due to many levels
- Excessive distance between lowest level and top level
Orgn with wide span - superior with more number of subordinate to monitor
40
Advantages
- Superiors are forced to delegate
- Clear policies must be made
- Subordinates must be carefully selected
Disadvantages
- Tendency of overloaded superiors to become decision bottlenecks
- Danger of superiors loss of control
- Requires exceptional quality of managers
Organisation Chart
“ An Organisation chart is a graphic of the various positions in the enter[prise
and the formal relationships among them”.
- It is a blueprint of the company organization structure.
- George Terry “ An Organisational Chart is a diagrammatical form, which
shows important aspects of an Organisation including the major functions and
the respective relationships, the channels of supervision and the relative
authority of each employee who is in change of each respective function.
Characteristics
1. a diagrammatical presentation
2. represent the formal Organisation structure
3. it shows the main lines of authority in the Organisation
4. indicates inter-play of various functions & relationships
5. indicates the channel of communication
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Contents of Organisation Chart
Organisation Manual
An Organisation Manual is a small handbook or booklet contained detailed
information about the Objectives, Policies, Procedures, rules, etc of the enterprise
- It often includes Job descriptions which are factual statements of job contents
in terms of duties and responsibilities.
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Rules & regulations
3. Procedural
Office procedures and practices
Specimen form to be used
Standard instructions regarding the performance of different jobs
Methods relating to accounting, budgeting, etc.
1. Policy Manual
2. Company Organisation Manual – describes the duties and responsibilities of
various departments
- Outlines the formal chain of command and lines of promotion in the company
3. Operation Manual – describes the established standards, procedures and
methods for various jobs.
4. Department Practice Manual – detailed information about the Organisation
5. Rules & Regulation Manual – prescribes rules regarding hours of work,
timing, leave cafeteria, library, recreation, etc.
Departmentation
- As the process of grouping individual jobs in department. It involves grouping
of activities and employees into departments so as to facilitate the
accomplishment of Organisation Objectives.
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6. Human Consideration
Basis of Departmentation
1. Departmentation by Functional Basis – Grouping of activities in accordance
with the function of an enterprise. Each major function of the enterprise is
grouped into a department.
Merits
o It is a logical and time proven method
o It follows the principles of specialization
o Authority and responsibility can be clearly defined and fixed
o Since the top managers are responsible for the end results control shall
become effective
Demerits
This type of departmentation shall develop a loyalty towards the
functions and not towards the enterprise as whole.
Co-ordination of different function shall become difficult
Only the departmental heads are held responsible for defective work
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Various regional units may become so engrossed in short run
competition among themselves that they may forget the overall
interest of the total organization.
Demerits
Difficult to compare the performance of different process based
departments
4. Departmentation by Product basis – suited for a large organization
manufacturing a variety of products. For each major product a semi-
autonomous department is created and is put under the charge of a manager
who may also be made responsible for producing a profit of a given
magnitude. Product dept is the logical pattern to follow when each product
requires raw materials, manufacturing, technology and marketing methods and
that are markedly different from those used by other products in the
Organisation. Eg HLL manufacturing detergents, toiletries, Clearasil cream
and soap.
Merits
Relieves top management of operating task responsibility. It can
therefore better concentrate on such centralized activities like
finance, R& D and control
Enables the top management to compare the performance of
different products and invest more resources in profitable
products and withdraw resources from unprofitable ones.
Those who work within a department derive greater satisfaction
from identification with a recognizable goal.
Demerits
45
Results in duplication of staff and facilities
Employment of large number of managerial personnel is required.
Equipment in each product department may not be fully used
5. Departmentation by Customer basis – An enterprise may be divided into a
number of departments on the basis of the customers that it services. For Eg.
An educational institution may have separate departments for day, evening
and correspondence course to impart education to full time students, locally
employed students and autstation students respectively.
Merits
It ensures full attention to major customer groups and helps the
company to earn goodwill.
Demerits
It may result in under utilization of resources and facilities in
some department.
There may be duplication of facilities
Authority
- Power to take decision
- Right to get orders and obey orders
- Power – Ability of individual to influence the action of other person
- Authority – right in a position to exercise discretion in making decision
affecting others.
Bases of Power
1. Legitimate
2. Expertness
3. Referrant
4. Reward
5. Coercive
Def “ Authority may be defined as legitimate right to give orders and to get orders
obeyed. It denotes certain rights to take decision and get them executed by their
subordinates.
3 types of Authority
Line authority – are those that have direct impact on the accomplishment of the
objectives of the enterprises
46
- is the direct authority which a superior exercises over his subordinates to carry
out orders and instructions.
- The flow of line authority is always downward, that is from a superior to a
subordinate
- Creates a direct relationship between a superior and his subordinate
- Line authority is the direct authority which a superior exercises over his
subordinates to carry out orders and inspections such authority delegated top
those positions or elements of the organization which have direct
responsibility for accomplishing the primary objectives.
- Line relationship performs the following roles
a. as a chain of command
b. as a carrier of accountability (subordinate is answerable to his
superior)
c. as a channel of communication
Staff authority – Staff refers to those elements of the Organisation which help
the line to work most effectively in accomplishing the primary objectives of the
enterprises.
- are those that help the line person work most effectively in accomplishing the
objectives.
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results
9 Doing functions Thinking function
10 Provides channel of No channel of communication is
communication created
- generally relates to laying down systems and procedures. For Eg. The
personnel manager may lay down the grievances procedure to be followed in
all departments
- granted to a staff specialist to issue instruction to line executives directly in a
specific and limited area of operation.
Delegation of authority
- To delegate means to entrust authority to a subordinate
- Assigns some part of his work to his subordinate and also gives the necessary
authority to make decision within the area of their assigned duties
Def . Koontz and O’Donnel, “ The entire process of delegation involves the
determination of results expected, the assignment of tasks, the delegation of authority
for accomplishment of these tasks, and the exaction of responsibility for their
accomplishments.”
Types of delegation
1. General or Specific
2. Formal or Informal
3. Written or oral
4. Downward and sideward
Process of Delegation
1. Determination of results expected
2. Assignment of duties
3. Granting of authority
4. creating accountability for performance
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Accountability – is the obligation to carry out responsibility and exercise
authority in terms of performance standard established by the superior
- Once a subordinate is assigned a duty and given the necessary authority to
complete it, he becomes answerable for the results. Thus accountability is a
derivative of responsibility.
Principles of Delegation
1. Delegation to conform to desired objectives
2. Responsibility not delegatable
3. Authority to match duties
4. Unity of command
5. Limits to authority to well-defined
Merits
1. Basis of effective functioning
2. Reduction in managerial load
3. Benefits of specialized service
4. Efficient running of branches
5. Aid to employee development
6. Aid to expansion and diversification of business
Effective Delegation
1. Define assignments and delegate authority in the light of results expected
2. Select the person in the light of the job
3. Maintain open lines communication
4. Establish proper control
5. Reward effective and successful assumption of authority
Staffing
- Filling and keeping filled, positions in the Organisation structure.
- Def – Koontz and O’Donnell “ The managerial functions of staffing
involves manning the Organisational structure through proper and effective
selection, appraisal and development of personnel to fill the roles designed
into structure.
Functions of Staffing
1. Procurement
– Job analysis
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– Man power planning
– Recruitment
– Selection
– Placement
2. Development
- Performance appraisal
- Training
- Management Development
- Career Planning & Development
- Promotion
3. Compensation
– Job evaluation
– Wage and Salary administration
– Incentives
– Fringe Benefits
– Social security measures
4. Human Relations
- is an area of management in integrating people into work situation in a way
that motivates them to work together productively, co-operatively and with
economic, psychological and social satisfaction.
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Recruitment & Selection
- 1st Stage, continues with selection and stops with the placement of the
candidate
- +ve it stimulates people to apply for jobs to increase the hiring ration. i.e.
the number of applicants for a job
- Goal of Recruitment is to create a large pool of persons available and
wiling to work.
- Selecting the person overall
- Def.- Edwin & Flippo – “ Recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the Orgn.
Sources of Recruitment
1. Internal sources – It includes personnel already on the payroll of an
Organisation, presenting working force.
Merits
- Less expense
- Builds loyalty
- Ensures stability
- Sense of security
- Lower level to look forward to rising to higher levels
- Morale of the employees (Shows more Enthusiasm)
Demerits
- Promotion based on seniority, inefficient people may also be promoted this
will ultimately ruin the prospects of the firm.
- There will not be any any creativity
- Lack of Technical skills
Merits
- required skills
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- Do objective selections (since people are recruited from a large market, the
best selection can be made without any distinctions of caste, colour,
gender)
- May b economical in the long run (training is not required)
Demerits
-Brain Drain – Experienced persons or raided or hunted by other concerns
Selection
- Process of discovering the most suitable and promising candidates to fll up
the vacancies
- The goal of selection is to sort out or eliminate those judged unqualified to
meet the job and organizational requirements
- -ve action, after receiving the application select a particular person
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- Recruitment is a method while selection is a procedure.
- Successive hurdles techniques
Steps in Selection
Interview
The Interview is the most frequent method of selection. The Interview is a face
to face conversation between an applicant and the employer. The purpose of
Interview is to collect information on behaviour, attitudes, opinions, maturity,
emotional stability, enthusiasm, confidence, response and other commercial
behaviour.
Initiative
Response
Behaviour
Work Experience
Opinion
Attitude
Maturity
Emotional Stability
Enthusiasm
Confidence
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Types of Interview
PLACEMENT
The Placement of the individual on the new job and orienting him to the
Organisation. Placement may be defined as the determination of the job to which an
accepted candidate is to be assigned to that job. A proper placement of a worker
reduces Employee turnover, absenteeism and accident rates and improve morale.
After the selection, the employee is generally put on a probationary period
ranging from one to two years after his employment to regularized, provided that
during this period, his work has been found to be satisfactory.
Orientation
Training
Executive Development
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Orientation / Induction / Indoctrination
Induction is a technique by which a new employee is rehabilitated into the
changed surroundings and introduced to the practices, policies and purposes of the
Organisation
Training
- Training is an organized process for increasing the knowledge and skills of
people for definite purpose.
Training & Education
- Training and Education is concerned with imparting specific skills for
particular purpose
- Purpose of Training is to bring about improvement in the Performance of
work
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- Includes the learning of such skills as are required to do a specific job in a
better way
Training & Development
- Development involves the growth of the individual in all respects
- Training is job centered whereas development is career bound
- Aims at increasing the capacity for further tasks of greater difficulty
- Contents and techniques of employee training may differ from those of
Management Development.
Training & Development Process
1. Determining Training Needs
a. Organizational analysis – ( analyzing the present and future needs of the
total Organization)
b. Operational analysis – (need of a specific group of jobs)
c. Individual analysis – (analyzing the need of the specific Employee)
2. Deciding the purpose of Training
3. Choosing Training method
4. Evaluating Training Effectiveness
Advantages of Training
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1. Increased productivity
2. Job Satisfaction
3. Reduction in accidents
4. Better use of Resources
5. Reduced Supervision
6. Greater Flexibility
7. Management by Exception
8. Stability and Growth
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Essential of a good Training Programme
Training Procedure
1. Preparing the Instructor
- know the job or subject he is attempting to teach
- Have the aptitude and ability to teach
- Have willingness towards the profession
- Pleasing Personality and capacity for leadership
- Knowledge of teaching Principles and methods
2. Preparing the Trainee
3. Getting ready to teach
4. Presenting the Operation
5. Try out the Trainee’s performance
6. Follow - up
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Methods of Executive Development
a. Special courses
b. Conferences and Seminars
c. Case study
d. Selective Readings
e. Brain Storming
f. Simulation , role Playing and Management Games
g. Sensitivity Training
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UNIT IV
DIRECTING
Creativity and Innovation - Motivation and Satisfaction - Motivation Theories -
Leadership Styles - Leadership theories - Communication - Barriers to effective
communication - Organization Culture - Elements and types of culture - Managing
cultural diversity.
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DIRECTING
Directing concerns the total manner in which a manager influences the actions of
subordinates. It is the final action of a manager in getting others to act after all
preparations have been completed. It consist of the following elements:
1. issuing orders and instructions
2. continuing guidance and supervision of subordinates
3. motivating subordinates to work hard for meeting the expectation of
management.
4. maintaining discipline and rewarding those who perform well
5. providing leadership to subordinates
CHARACTERISTICS
1. Elements of Management
2. Continuing Function
3. Pervasive Function
4. Creative Function
5. Linking function
6. Management of Human Factor
SIGNIFICANCE OF DIRECTING
1. Initiates action
2. Ensures coordination
3. Improves efficiency
4. Facilitates change
5. Assists stability and growth
PRINCIPLES
1. Harmony of objectives
2. Maximum individual contribution
3. Unity of command
4. Appropriate techniques
5. Direct Supervision
6. Strategic use of Informal Organization
7. Managerial Communication
8. Effective Leadership
9. Principle of Follow up through
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TECHNIQUES OF DIRECTING
1. Delegation
2. Supervision
3. Orders and instructions
4. Motivation
5. Leadership
6. Communication
SUPERVISION
Supervision implies exert overseeing of people at work in order to ensure
compliance with established plans and procedures. Every executive has to
supervise the work of his subordinates. At the operating level, supervision is the
most significant part of the manager job. The supervisor is in direct touch with
the workers. He teaches proper work methods, maintains discipline and work
standards and solve workers grievances or problems.
RESPONSIBILITIES OF A SUPERVISOR
1. To schedule work so as to ensure an even and steady flow.
2. To assign work to different individuals
3. To provide proper working conditions
4. To issue orders and instructions
5. To prescribe work methods and procedures
6. To guide, train and inspire workers in the efficient performance of work.
FUNCTIONS
1. Planning the work
2. Organising the Resources
3. Staffing the units
4. Maintaining discipline
5. Enforcing safety measures
6. Handling Grievances
7. Appraising performance
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FUNDAMENTALS OF EFFECTIVE SUPERVISION
1. Planning the work
2. Time management and delegation
3. Organising the resources
4. Staffing the Units
5. Trianing and development of Employees
6. Disciplining the Workers
7. Appraising the performance of Employees
8. Controlling the results
9. Labour relations and Grievance procedures
LEADERSHIP
Definition
SKILLS
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Leadership Styles
1. Autocratic Leader –Commands and expects compliance, is dogmatic and
positive, and leads by the ability to withhold or give rewards and punishment.
2. Democratic or Participative – consults with subordinates on proposed
actions and decision and encourage participation from there
3. Free-rein leader / laissez-faire Leadership – uses his or her power very
little, giving a high degree of Interdepence in their operations. Leaders depend
largely on subordinates to set their own goals and the means of achieving
them, and they see their role as one of aiding the operation of followers by
furnishing them with information and acting primarily as a contact with the
groups external Environment.
4. Paternalistic Leadership – Serves as the head of the family and treats his
followers like his family members. He assumes a paternal or fatherly role to
help, guide and protect the followers.
Functions
1. Goal Determination
2. Motivating Followers
3. Direction
4. Coordination
5. Representation
Importance of Leadership
1. Aid to authority
2. Motive power to group efforts
3. Basis for co operation
4. Integration of Formal and Informal Organization.
Theories
1. Trait Theory – A Leader is a one who has got a enthusiastic look, courageous
look – describes the external qualities of a person
2. Behavioral Theory – A person who intend to be leader, they do not have any
qualities like Trait Theory
3. Contigency Theory –
a. Fiedler Model
b. Likert Model
c. Managerial Grid Theory
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Fiedler Model - Leaders can be classified as two -
a. Relationship Oriented
b. Task Oriented
3 Situations been given to find the performance of two types of Leader-
– Leader member Relationships
- Task Structure
- Position Power
Employees under Relationship oriented Leader seems to achieve more performance
than the other.
Likerts Model
3 Situations
1. Confidence / Trust in Employees
2. Subordinates feeling of freedom
3. Managers seeking involvement with Subordinates
Ratings of the Leaders by their employees at different situations
2 Kinds of Leader
1. Leaders concerned for People
2. Leader concerned for production / Task
Leader styles
1. Task Manager Eg Defence , Concerned only on task
2. Team Builders – leaders high concern for production as well as people
3. Impoverished Style – Unfit for Leadership qualities, less concern for people as
well as production
4. Country club Manager Eg – Trade union, high concern for people than
production.
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COMMUNICATION
ELEMENTS
1. Sender
2. Message – The Subject matter of Communication
3. Encoding – act of translating he msg into words, pictures, symbols
4. Channel – Media used
5. Receiver –
6. Decoding – interprets the msg to draw meaning from it. He converts symbols,
signs or pictures into meaning
7. Feedback –
CHANNELS OF COMMUNICATION
1. Formal Communication – follows the route formally laid down in the
organization structure
a. Downward Communication – flow of communication from superior
to subordinate
b. Upward Communication - flow of communication from subordinate
to superior
c. Horizontal Communication – transmission of information among the
positions at the same level of he Organization.
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Distinguish between Downward and Upward Communication
Down ward Upward
From higher to lower levels From lower to higher levels
Flow is downward Flow is upward
Directive in nature Non-directive
Purpose is to get plans implemented Purpose is to provide feedback on
results
Travels fast Travels slowly
Orders, instructions, lectures, Reports, suggestions, grievances,
manuals, handbooks, etc are the main protests, surveys are the main
examples examples.
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MEDIA OR METHODS OF COMMUNICATION
1. Oral Communication
2. Written Communication
3. Gestural Communication
ORAL COMMUNICATION
Oral Communication involves exchange of messages through spoken words. It may
take place. i) by face- to face contacts ii) through mechanical devices like
telephone.
Merits
Oral or Verbal communication offers the following advantages:
1. Economical
2. Personal touch
3. Speed
4. Flexibility
5. Quick response
Demerits
Oral Communication suffers from the following weaknesses-
1. Lack of record
2. Time Consuming
3. Lengthy message
4. Physical distance
5. Misunderstanding
WRITTEN COMMUNICATION
Written Communication is transmitted through written words in the form of letter,
circular, memos, bulletins, instruction cards, manuals, handbooks, reports, returns,
Merits
1. Effectiveness
2. Lengthy messages
3. Economical
4. Repetition
5. Permanent record
6. Better response
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Demerits
1. Time Consuming
2. Expensive
3. Inflexibility
4. Little secrecy
5. Lack of personal touch
6. Misunderstanding
COMMUNICATION NETWORKS
1. Circle Network
2. Chain Network
3. Wheel Network
4. All Channel Network
BARRIERS TO COMMUNICATION
a. Organisational Barriers
b.Mechanical Barriers
1. Overloading
2. Semantic barriers
3. Noise
c.Personal Barriers
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MAKING COMMUNICATION EFFECTIVE
1. Clarity of messages
2. Completeness of message
3. Consistency of message
4. proper timing
5. Credibility
6. Empathy
7. Follow-up
8. Economy
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UNIT V
CONTROLLING
Process of controlling - Types of control - Budgetary and non-budgetary control
techniques - Managing Productivity - Cost Control - Purchase Control - Maintenance
Control - Quality Control - Planning operations.
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Controlling
Definition
- as the process of analyzing actual operations and seeing that actual
performance is guided towards expected performance.
- Comparing operating results with plans and taking corrective actin when
results deviate from plans
- Def. Koontz and O’Donnell “ The managerial function of controlling is the
measurement and correction of the performance of activities of
subordinates in order to make sure that enterprise objectives and the plans
devised to attain them are being accomplished.
Elements of Control
1. Planning
2. Information Feedback
3. Delegation of Authority
4. Remedial action
Control Process
1. Fixation of Standard
2. Measurement of Performance
3. Comparing performance with standards
4. Correction of Deviations
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Characteristic of an ideal Control system
Suitable
Flexible
Economical
Simple
Objective
Prompt
Forward looking
Suggestive
Strategic point control
Motivational
Traditional Techniques
1. Personal Observation ( For Eg. A Factory manager goes around the plant,
observes the performance of Employees and Machines)
2. Good Organisation Structure
3. Unity of Plans
4. Statistical Control Reports
5. Budgetary control – Statement expressed in financial terms
a. Master budget
b. Functional Budget - Sales budget, Production budget, Material
budget, Labour budget, Cash budget, Administrative Overhead
budget,
c. Capital & Revenue budget
d. Fixed and Flexible Budget
e. Zero base budgeting ( the budget proposals are considered from
the ground up ( zero base) or from scratch
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Merits
Optimum use of resources
Fixation of Responsibility
Effective coordination
Planned approach
6. Profit & loss control
7. External audit Control
8. Overall Control criteria ( BEP Analysis)
9. Return on Investment Control
10.Management Audit
Organisation Structure
Executive appraisal
Functioning of the management board
Soundness of Earning
Economic Functioning
Service to stock holders
R&D
Fiscal Policy
Production Efficiency
11.Responsibility accounting
Cost centre
Profit centre
Investment centre
Techniques of Management
MBO
MBE
MBP – Management by Participation implies the mental and emotional
involvement of employees, share holders, investors, consumers and
other stake holders in the decision making process.
Forms
1. Work Committee
2. Joint Management Councils
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3. Worker Directors
4. Co-partnership
Operation Management
- is the design and operation of systems. Working of Operation Management.
Information
Technology
Raw Materials
Main Power Planning, operating & Product
Management Controlling production Services
Physical Factors ( like land, System
Building, Machines, etc)
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Developing Excellent Managers – The key to preventive control
Globalisation
Benefits of Globalisation
Improves efficiency
Improves factor Income
Improves finance
Gains from Migrations
Drawbacks of Globalisation
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Only group of people who participate in the process of Globalization will be
benifitted, this creates income inequality within the country
2. Control on domestic economy becomes more difficult
3. Developing country suffers from the problem of brain-drain
International Business
- Involves commercial activities that cross national frontiers
- It is a process of Entrepreneur conducting business activities across
national boundaries
- It consist of Exporting, Importing, lIcensing, opening of Sales office
- The activities necessary for ascertaining the need and want of target
consumer often takes place in more than one country. When an
Entrepreneur executes his or her business model in more than one country
International Business Occuring.
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