Name of the Program: Bachelor of commerce (B.Com.

)
Course Code: B.Com. 1.2
Name of the Course: Business Management & Startups
(Study Material – Module 1)

1.1 INTRODUCTION

This Unit introduces you to the basics of management discipline and its general principles and
functional elements. We shall discuss the meaning, purpose and scope of scientific management in
relation to the aims and objectives of any organisation, specifically for library management.

A CAREER IN MANAGEMENT
The work of management is divided into the activities around planning, leading, organizing, and
controlling, and the job of a manager encompasses all of these areas. Anyone aspiring to move into
management as a career should develop and display strong technical and functional skills. Become
an expert in your discipline, and have a strong affinity for interacting with, supporting, and guiding
others. 

The best managers understand that their role is about their team and its performance and not about
themselves. They work hard to develop the skills identified above and take great satisfaction in the
successes of their team members. Do this effectively at a lower level and others will recognize your
value and strive to increase your responsibilities over time. Management as a career is
simultaneously challenging and exciting.

1.2 MANAGEMENT – MEANING, IMPORTANCE AND SCOPE

It is very difficult to accurately define management. There is no universally accepted definition of

management. Management involves both acquisition and application of knowledge. It does not go
by rule of thumb or intuition alone even though it is considered to be an extension of common
sense. Hence, management is a combination of both an art and a science. The scientific approach
lies in decision-making, planning and in the appropriate use of technology. The artistic approach to
management can be found in the tasks of communicating, leadership and goal-setting.

The word management refers to all the tasks and activities undertaken by the people in an
organization for the successful achievement of goals and targets. It involves continuous activities
such as planning, organizing, leading and monitoring physical, financial and information resources.
Any organization’s success depends on the strength of those in management positions.
The term management is flexible and has been used in various ways. While it refers to
organizational activities, it also denotes a body of knowledge or discipline. Some describe it as a
means of leadership while others view it as an economic resource. Here are various categories that
describe management in multiple contexts.

MANAGEMENT AS A PROCESS

As a process, management aims at increasing productivity and efficiency in an organization. The

purpose is to strengthen the client base, improve the knowledge, skills and capacity of employees to
achieve particular targets and goals. Management is also a never-ending process that brings
different teams and individuals together. Everyone works in harmony to achieve common
objectives.
MANAGEMENT AS AN ACTIVITY

As an activity, management looks at the daily tasks and accomplishments of an employee. It helps
them prioritize activities and monitor progress, which further helps them grow in their roles. It
prevents miscommunication and task repetition as everyone is aware of their roles and
responsibilities. There is clarity and accountability—the cornerstones of business growth and
success.

MANAGEMENT AS A PROFESSION

Management as a profession has been popularized by courses and academic institutions across the
globe. Several organizations prefer individuals with a Master of Business Administration (MBA)
degree. Specialized knowledge (such as an MBA degree) provides an individual with a competitive
edge, making them more desirable for managerial roles. Therefore, management has evolved as a
body of knowledge that continues to solve various workplace problems.

A few commonly used definitions of management are given below:

• Managing is an art or process of getting things done through the efforts of other people.

• Managing is the art of creation and maintenance of an internal environment in an enterprise where
individuals, working together in groups, can perform efficiently and effectively towards the
attainment of group goals.

• Management is the process of setting and achieving goals through the execution of five basic
management functions (i.e. Planning, Organising, Staffing, Directing and Controlling) that utilise
human, financial and material resources.

• Management is a process or an activity that brings together several varied resources like persons,
materials, techniques and technologies to accomplish a task or tasks.

• Management, as a distinct field of study, is also the body of organised knowledge which underlies
the art of management. The above definitions and a study of management literature would reveal
the following characteristics of management:

• Managing is an activity or process (not a person or group of persons);

• Management refers to both the discipline as the well as group which manages the organisation;

• It makes things happen (and not let things happen);

• It is purposeful, the achievement of the organisation’s goals and objectives is the supreme purpose;

• It uses available resources economically to maximise outputs; • The organisation’s objectives are
accomplished by, with and through the efforts of others (group activity);

• Managing implies using certain skills, knowledge and practices to bring effectiveness;

• It is aided and not replaced by the computer; and

• It is intangible.
1.2.1 NATURE OF MANAGEMENT

Management—as a systematic process—helps identify a group of people who carry out particular
activities, thereby improving an organization’s efficiency and effectiveness. Here are the salient
features that highlight the nature of management in businesses.
UNIVERSALITY
Management is a universal process and is essential for all organizations. If there is human activity,
there is management. The principles of management are applicable irrespective of the size and
location of a business. The universal principle also means that managerial skills can be developed
over time and they’re transferable.

SOCIAL PROCESS

The nature of management involves organizing people in groups and managing them. It requires

different levels of empathy, understanding and dynamism. In addition to taking care of social and
emotional well-being, the process involves developing, motivating and retaining employees.

PURPOSEFUL

Management always has an end goal of achieving an organization’s targets, mission and vision. The
success of management can be measured by the extent to which an organization achieves its
objectives. There is an underlying purpose of increasing efficiency and productivity. The objectives
should be realistic, attainable and time-bound.

INTANGIBLE

There is no physical proof of the management process. Its success can be measured by the outcomes
of its efforts. For example, lower turnover rates indicate there’s high employee engagement and job
satisfaction. This further shows that managers or individuals in managerial roles have taken
proactive steps toward improving employee retention.

COORDINATION

Management coordinates all the functions of an organization by bringing together different teams
and departments. Without coordination, there would be ambiguity and chaos. Therefore, by getting
people on the same page, there is communication and minimized duplication of efforts.

CREATIVITY

Management is made up of individual components and is a composite process. Every independent

component contributes in unique ways. For example, group efforts encourage creative ideas and
imagination. The sum of individual efforts creates synergy and something new is born.

DYNAMIC FUNCTION

Management should be dynamic at its core because businesses are often influenced by economic,
social, political and technological factors. With room for flexibility and adaptability, individuals can
perform well even in stressful situations. There should be adequate training and facilitation within
the process.
1.2.2 SCOPE OF MANAGEMENT

Clearly defined responsibilities, concepts, theories and principles related to managerial functions
define the scope of management. Let’s look at the various aspects of this.

FINANCIAL MANAGEMENT

Every enterprise prioritizes financial management because finances can get extremely tricky if not
managed properly. Effective financial management ensures there are fair returns to stakeholders,
proper estimation of capital requirements and laying down optimal capital. It includes preparation
and examination of financial statements, creating proper dividend policies and negotiations with
external stakeholders.

MARKETING MANAGEMENT

The scope of management in marketing extends to planning, organizing, directing and controlling

activities in the marketing department. Identifying customer requirements is crucial for providing
business solutions. When a manager is fully aware of the benefits of the products and/or services
the organization provides, they achieve better results. Marketing management ensures that available
resources are properly utilized and the best possible outcomes are achieved.

PERSONNEL MANAGEMENT

Personnel management—as the name suggests—deals with personnel or individuals in a business

environment. It includes the recruitment, transfer, termination, welfare and social security of
employees. This aspect of management is extremely important as employees form teams and teams
drive an organization’s goals. Individual productivity also contributes to overall efficiency. Without
attending to employee needs and wants, an organization is likely to struggle.

PRODUCTION MANAGEMENT

This type of management refers to the process of creating utilities. When you convert raw materials
to finished products and oversee the planning and regulation, you’re engaging in production
management. Without production, there isn’t any finished good or service and without it,
organizations can’t generate interest or profits. The final product must fulfill customer requirements.
The process includes quality control, research and development, plan layout and simplification.

OFFICE MANAGEMENT

This includes controlling and coordinating all office activities to achieve an organization’s goals and
targets. For example, an administration’s efficiency impacts a business significantly. The more
organized the departments and responsibilities are, the more effective an organization is.

1.2.3 TIPS FOR EFFECTIVE MANAGEMENT

• Now that you’re aware of the nature of business management, let’s look at the different
ways in which you can enhance your managerial skills.

• Communication is the key to successful management; if you want to successfully achieve an

organization’s targets, you must communicate the overall needs and expectations with your
team
 • Management is a continuous process; there will be times when you need to assess your
team’s skills and train them to foster growth and professional development

• Everyone should be on the same page when it comes to accomplishing common objectives;
you need to delegate responsibilities and trust your team to do the job—hold them
accountable and guide them wherever necessary

• The primary objective of management is to achieve goals; you need to be goal-oriented,

have measures in place to track progress and get involved in strategic planning and
development

• Management isn’t easy and there will be plenty of roadblocks and setbacks that may
obstruct your progress; a positive mindset helps deal with challenges more effectively

1.3 SCIENTIFIC MANAGEMENT

Scientific management is almost synonymous with the teachings and practices of Frederick W.
Taylor (1850-1915). Throughout his life Taylor struggled to increase efficiency in production, not
only to lower costs and raise profits but also to make possible increased pay for workers through
higher productivity.

Scientific management is the name given to the principles and practices that grew out of the work of
Taylor and his followers (Carl George Berth, Henry L Gantt, Frank and Lillian Gilbreth, etc.) and
that are characterised by concern for efficiency and systematisation in management.

You may note that the management science is the application of mathematical modelling in
managerial decision making and is quite different from scientific management. The schools of
management thought are broadly divided into three parts, they are:

1) Classical Management Theory (1880’s-1920’s) which is organisation-centred and has dealt with
the economic “rational man”, and included scientific management, administrative management,
(Henry Fayol, C.I. Barnard, L Urwick) and bureaucratic organisation (Max Weber).

2) Neoclassical Theory (1920’s-1950’s) which is person-centered and human oriented and has
emphasised the needs, behaviours and attitudes of individuals (i.e., “social person” view) and
included human relations schools (Elton Mayo, F.J. Roethlisberger, W.J Dickson) and behavioural
schools (Maslow, McGregor, Argyris, Herzberg, Lickert, Lewin).

3) Modern Management Theory (1950’s-) which emphasises the complete employee view by
revisionist researcher (Litchfield) which includes systems theory, contingency theory, organisational
humanism and management science. Modern management is characterised by a scientific approach,
which involves:

• the application of scientific methods and analysis to managerial functions and problems; • serious
consideration of human elements in management, based on psychological studies and behaviour
analysis in different situations;

• increasing emphasis on economic effectiveness in all management functions;

• a systems approach, focusing equal attention on all functions of management; and

 • use of electronic computers for analysis and studies. Beginning from the fifties of 20th Century,
contributions have been made to management through disciplines such as mathematics, statistics
and economics. Mathematical models have been designed and constructed for use in planning,
decision making and forecasting. Operations research studies for operational efficiency, and
econometric analysis for cost benefits and effectiveness, are some of the other scientific methods
applied to management functions. The advent of computers and communications technologies has
aided researchers in the development of the management information system. These have become
vital components in scientific management.

Theories of leadership and organisation including human motivation and behaviour, organisation
relationships and nature of authority of the psychological and sociological methods applied to
studying personnel management. The systems approach has enriched management operations by
unifying to achieve a common goal. Thus we see that modern management has drawn from studies
and experiences from other disciplines and has successfully applied them to enhance productivity

1.4 LEVELS OF MANAGEMENT AND MANAGERIAL SKILLS

A manager is anyone, at any level of the organisation, who directs the efforts of other people. S/he
is the catalyst who makes things happen. It may be noted that the management of an organisation is
performed at different levels. Although the distinctions are by no means clear it is useful to think of
managers as being divided into three groups (or levels):

(i) Supervisory (or- First line or Operational) Managers are those who directly oversee the efforts of
those who actually perform the work. Performance of various routine tasks to obtain desired outputs
of every unit and concomitant activities is taken care of at this level;

(ii) Middle managers are above the supervisory level but subordinate to the most senior executives
of the organisation; they have the responsibility to develop implementation strategies for the
concepts determined by top management. Execution, supervision, monitoring and other related
functions are taken care of by them;

(iii) Top managers are the most senior executives of the organisation. Top managers are responsible
for providing the overall direction of the organisation. They carry out planning, maintenance of
relations with other agencies, policy making, standardisation, control, evaluation, resources
mobilisation, etc. As far as libraries are concerned, often two hierarchies of management operate
within libraries. One is that of the library, and the other is that of the organisation to which the
library belongs. Each level of management requires a different composition of managerial skills.
Skill is an ability to translate knowledge into action that results in a desired performance.

Normally, three kinds of basic skills are identified to be required by managers –

(i) Technical skill is the ability to use specific knowledge, methods, processes, practices, techniques
or tools of a speciality in performing the work;

(ii) Human skill is the ability to interact with other persons successfully, i.e., ability to understand,
work with, motivate and get along with other people; and

(iii) Conceptual skill deals with ideas and abstract relationships. It is the mental ability to
comprehend abstract or general ideas and apply them to specific situation. It requires a holistic
approach to understand the relationship of parts to the whole, the whole to the parts and cause and
effect. In other words, viewing the organisation as a whole and to see how the parts of the
organisation relate to and depend on one another and the ability to imagine the integration and
coordination of the parts of the organisation are essential for this skill.

The importance of these skills depends on levels of management. Technical skill is most important
for supervisory level managers and becomes less important as the manager move up to the middle
and top levels. Conceptual skill is increasingly important as manager moves up the levels of
management. However, human skills are important at every level in the organisation. It may be
noted here that there are other kinds of skills required for managers and they are not discussed here.

For example, top and middle managers need to have diagnostic and analytical skills. Diagnostic
skill is the ability to acquire, analyse and interpret information to determine the cause of change
either in inputs or outputs or in the transformation process. Analytical skill (which is complimentary
to diagnostic skill) is the ability to determine the cause of change and either to provide corrective
action or take advantage of the situation. All functions or elements of management (to be discussed
in next section) will be common to all levels of management in some form or the other. However,
the duties and responsibilities of the staff operating at different levels will vary.
The chart given below indicates how these three levels of management share their duties and
responsibilities as well as the skills required for them. Table showing levels of management, their
responsibilities, duties & skills

Skills Levels Duties & responsibilities

Conceptual Top Planning, Policy making, Quality control and
Evaluation, Resources Mobilisation
Human Middle Execution of Activities, Supervision, Monitoring
Technical Supervisory Routine tasks, concomitant activities

In the above table, while all the activities are shared by the three levels of management, the
proportion of responsibilities, duties and skills with reference to the activities vary. It should be
noted, however that the system will work efficiently only if the three levels work in unison. Top
management does very little routine operations, while the operational management level staff does
not do much planning. But the middle level management is involved in both planning and routine
operational work.

1.5 MANAGERIAL FUNCTIONS

We have already seen that there are several definitions given by experts to explain the meaning and
scope of management. One way is to view management as a set of common processes or functions
which, when carried out well, lead to organisational efficiency and effectiveness. These processes or
functions have been broken down into a set of related elements forming a useful framework.

A function is a type of work activity that can be identified and distinguished from other work.
Experts have identified several managerial functions as important elements of management. While
Newman and Summer have identified four functions namely, organising, planning, leading and
controlling, Henry Fayol has recommended five basic functions namely, planning, organising,
commanding, coordinating and controlling. Most authors present the following five as the essential
functions: planning, organising, staffing, directing and controlling. Luther Gulick and L. Urwick
have coined an acronym for seven functions namely POSDCORB which stands for Planning,
Organising, Staffing, Directing, Coordinating, Reporting and Budgeting. Some of these functions
are presented and discussed here separately. It is important to remember that they are carried out
simultaneously and concurrently.
The view of this approach is that an organisation is a total system and these functional elements are
interrelated and interdependent. The major advantage of separating and discussing these functional
elements individually is that this provides a helpful means to examine the various threads that are
interwoven into the fabric of what managers actually do.

1.5.1 PLANNING

Planning is a bridge taking us from where we are to where we want to reach. It is the process of
determining in advance what should be accomplished and how to do it. In other words, it is an
analytical process of establishing goals, objectives and targets, assessing the future, premising,
generating and evaluating alternatives, selecting programs, projects or courses, estimating
resources, preparing the plan document with derivative plans and implementing the plan. Four
important characteristics of planning are:-

(i) The purpose of every plan and all derivative plans is to facilitate the accomplishment of
enterprise purposes and objectives;

(ii) Planning is the “first” function and logically precedes the execution of all other managerial
functions;

(iii) Managers at all levels are involved in planning;

(iv) The efficiency of a plan is measured by the amount it contributes to the purpose and objectives
as offset by the costs of other unsought consequences required to formulate and operate. In other
words, planning is characterised by its primacy, efficient contribution to purpose and objectives and
all pervasiveness.

Some types of plan usually developed and operated include objectives (or goals), strategies (or
grand plans), policies, procedures, rules, programs and budgets. The process of developing a plan
consists of a few logical and basic steps.

Being aware of opportunities and a sort of SWOT (Strength, Weaknesses, Opportunities and
Threats) analysis is the first step followed by establishing specific and clear objectives. The third
logical step in planning is premising, i.e., taking note of planning assumptions.

Establishing complete premises and keeping them up-to-date is a difficult and complex task. The
success of a plan depends on the degree of accuracy in premising. The fourth step is to search for
and examine alternative courses of action. The step is immediately followed by a systematic
evaluation of alternative courses with the purpose of selecting the best course of action in the next
step.

The seventh step is formulating smaller derivative plans. The final step is to number-ise the plan
along with derivative plans by converting them into budgetary figures.

Many scientific techniques and models are available to determine the goals and objectives assess
future trends, formulate policies, choose among different alternatives (decision making),
preparation and production of plans, etc. There are rational approaches and principles to follow in
the planning process. A few of them, in addition to those mentioned above, are listed below:

• Planning should start with where we are (premising) rather than with where we want to be;
• Individuals involved in the planning process should agree to use consistent planning premises;

• Flexibility must be built into the plans; • The plans must be closely integrated;

• The plans should be documented and distributed to all members of the management team;

• Planning has value only if it is transformed into action; and

• Plans should be reviewed periodically throughout the year.

Inputs to a plan have to come from every unit of the organisation to ensure the involvement and
participation of the staff working at the operation supervisory level, besides the top management
which is more directly connected with the planning process and responsible for it.

A plan document provides a directive course of executive action incorporating every aspect of the
development of the organisation. Policies are framed to help the implementation process. Every
plan has to fit into a time frame annual, five year, long range or perspective - and also has to be
flexible to accommodate any unanticipated change at any point of time.

The significance and advantages of planning are:

• it offsets uncertainty and change;

• provides a framework for execution and direction; focuses attention on objectives;

• improves services, leads to operations and facilitates control;

• ensures rational and effective development;

• permits the anticipation and future resources needs; and

• brings the skills and experience of staff members to the planning process.

Inputs to a plan have to come from every unit of the organisation to ensure the involvement and
participation of the staff working at the operation supervisory level, besides the top management
which is more directly connected with the planning process and responsible for it.

A plan document provides a directive course of executive action incorporating every aspect of the
development of the organisation. Policies are framed to help the implementation process. Every
plan has to fit into a time frame annual, five year, long range or perspective - and also has to be
flexible to accommodate any unanticipated change at any point of time. The significance and
advantages of planning are:

• it offsets uncertainty and change;

• provides a framework for execution and direction; focuses attention on objectives;

• improves services, leads to operations and facilitates control;

• ensures rational and effective development;

• permits the anticipation and future resources needs; and

• brings the skills and experience of staff members to the planning process.

1.5.2 ORGANIZING

Organising is the process of prescribing formal relationships among people and resources (i.e.,
personnel, raw materials, tools, capital, etc.) to accomplish the goals. Organising involves:

• analysing the entire activities of an organisation into homogeneous types of works and jobs;

• sorting and grouping the resulting works and jobs into a logical structure;

• assigning these activities to specific positions and persons; and

• providing a means for coordinating the efforts of individuals and groups.

The term organisation refers to both the process of organisation and the result of that process.
Organisation refers to the structure which results from:-

(i) assembling the resources necessary to achieve the organisation objectives,

(ii) identifying and grouping work,

(iii) defining and delegating responsibility and authority, and

(iv) establishing activity-authority relationships.

In other words, organisation differentiates and integrates the activities necessary to achieve the
objectives. Activities are grouped into working divisions, departments, or other identifiable units
primarily by clustering similar and related duties. The result is a network of interdependent units.

Organisational structures usually comprise departments, divisions, sections, units or cells, obtained
on the basis of division of works and jobs, These structural patterns reflect horizontal and vertical
positions, indicating distribution of work, authority and responsibility, span of control, nature of
duties, outflow of work, means for evaluation of work output, staff discipline mechanism, smooth
flow, functional points and coordination points, etc.

Studies have been conducted to develop techniques for activity and workload analysis, work and
job analysis, job definitions and descriptions, models of organisational structure and similar others.
Organisation charts, block diagrams, work flow charts, etc., portray the functions of an organisation
vividly, indicating its managerial strength. Some basic principles of organising are listed below:

• The key activities should be clearly defined;

• The activities should be grouped on some logical basis;

• The responsibilities of each division, department, unit and job should be clearly defined;

• Authority should be delegated as far down in the organisation as possible; • Responsibility and
authority should be made equal;

• The number of persons reporting to each manager should be reasonable;

• The organisation should be designed to provide stability, flexibility, perpetuation and self-renewal;
and

• The organisation structure should be evaluated on the basis of its contribution to enterprise
objectives.

Libraries are generally organised on the basis of their functions, viz., collection development,
technical processing, users’ services, etc. But, they can be organised on the basis of user groups
served, subjects/areas handled, products and services generated, or a combination of these.
However, organisational structure varies according to the types of libraries, viz., national, public,
academic and special libraries.

1.5.3 STAFFING

If organisational structure creates positions at different levels for performing various functions,
staffing deals with providing the right type of persons to man them. Indeed persons are the key to
the effective functioning of any organisation. In fact, the real strength of an organisation is its
personnel; they can make or mar the organisation.

Staffing is the formal process of ensuring that the organisation has qualified workers available at all
levels to meet its short and long term objectives. This function includes

(i) Human resource planning

(ii) Recruitment and selection

(iii) Training and development

(iv) Rewards and compensations

(v) Health and safety

(vi) Career planning and management

(vii) Employee assistance, coaching and orientation

(viii) Performance appraisal. Some important basic concepts of staffing are job analysis, job
description, job specification, job enlargement and job enrichment.

Personnel management has assumed very great importance in modern management studies.
Attention is increasingly given to composition of staff, their types and levels, proper recruitment
methods and procedures, work distribution and assignment, staff training and development, salary,
status and career development opportunities, incentives and other related aspects. With the
increasing complexities of libraries and the services they are expected to offer, the staffing pattern is
constantly changing. Different categories of specialists are being recruited to operate at various
levels in libraries.

1.5.4 DIRECTING

Directing is the managerial function concerned with the interpersonal aspect of managing by which
subordinates are led to understand and contribute effectively and efficiently to the attainment of
enterprise objectives. It is aimed at getting the members of the organisation to move in the direction
that will achieve its objectives. In other words, directing is the managerial function that enables
managers to get things done through persons, both individually and collectively. Directing is related
to staffing in the sense that these two functions are concerned with the employees of the
organisation. While staffing is concerned with providing and maintaining human resources,
directing deals with leading and motivating the human resources to give out the best. It is the most
interpersonal aspect of management. Directing is closely related to the communicating function and
motivating; actuating and leading are sub-functions of directing

Directing is not the singular function of the top management. In fact, it pervades the organisation at
all supervisory levels. This calls for good interpersonal communication, both oral and written.
Written communications are often through memos, letters, reports, directives, policy guidelines,
staff and work manuals and similar others. It is essential to get them drafted unambiguously to give
proper direction to the employees. This is supported by oral communication, formally at staff
meetings and informally on other occasions.

It is necessary to note some important principles of directing. The more effective the directing
process, the greater will be the contribution of subordinates to organisational goals (the principle of
directing objective) and the more individuals perceive that their personal goals are in harmony with
enterprise objectives (the principle of Harmony of Objectives). The more completely an individual
has a reporting relationship to a single superior, the less the problem of conflict in instructions and
the greater the feeling of personal responsibility for results (the principle of Unity of Command).
Interestingly, reporting is the converse function. of directing. In other words, between two persons
in the hierarchy, if A directs B, then B reports to A.

1.5.5 CONTROLLING

Another important aspect of directing is exercise of control over the system. Control does not
merely mean restrictions or restraints to be forced on the system, but they are guidelines for the
organisation to perform according to set standards of efficiency and quality. What is implied in this
is, accountability, and the obligation of the staff at all levels, of reporting to a higher authority on
their productivity both in terms of quality and quantity. But these would need yardsticks and
measurement tools and techniques for evaluating performance. Thus, both directing and reporting
are closely related to the controlling function.

In simple terms, controlling can be defined as the process of comparing actual performance with
standards and taking any necessary corrective action. Hence, the control process consists of

(i) establishment of standards

(ii) measurement of performance, and

(iii) correction of deviations.

The standards may be physical standards, cost standards, revenue standards or even intangible
standards. Some of the common traditional control measures are budgets, statistical data, special
reports, break even point analysis, internal audit and personal observation. Other control measures
include time-event network analysis like milestone budgeting, program evaluation and review
techniques (PERT/CPM), programme budgeting, profit and loss control, return on investment (ROI)
and general key result areas like profitability, market position, productivity, public responsibility,
etc.
It has already been stated that establishing standards for quality, quantity, cost and time, measuring
performance against set standards, and correcting deviations are the three basic steps involved in
measurement of performance. Performance is closely related to techniques of operations and
technology employed.

Modern management uses techniques of Operations Research, Programme Evaluation and Review
Technique (PERT) and Critical Path Method (CPM), system analysis and others for improving
quality. A good control system should be forward looking, objective, flexible, economical,
understandable, reflect nature and needs of activity as well as the organisation pattern, promptly
report deviations and exceptions at critical points and lead to corrective actions. The other important
principles of controlling are listed below:

• Controls require a clearly defined organisational structure;

• Controls must be based on plans;

• Controlling is a primary responsibility of every manager charged with executing plans;

• The control itself should be exercised where the malfunction is likely to occur;

• Controls must focus on key variables;

• Controls must be meaningful and economical;

• Controls must provide accurate and timely feedback;

• Feed forward controls should be used to supplement feedback control; and

• Controlling requires action.

Devising effective control instruments for libraries is difficult due to their service and not-for-profit
nature. In the absence of realistic, objective and precise standards for measuring performance,
libraries resort to use of objectives, budgets, internal audit and the like.

1.5.6 OTHER MANAGEMENT FUNCTIONS

There are some more managerial functions other than the five most important elements discussed
above. Motivating, actuating and leading are already mentioned as sub-functions of directing. In
addition, communicating, delegating, coordinating, reporting, budgeting, innovating, influencing,
representing, etc., are often mentioned as managerial functions. Let us try to understand some of
them.

COORDINATING

This is the process of linking several activities to achieve a functional whole in the organisation. In
other words, it is the process of ensuring that persons who perform interdependent activities work
together in a way that contributes to overall goal attainment. Coordinating is the management of
interdependence in a work situation. It is much more than just cooperation and it involves an
information giving function. We have learnt in the organising function that the work of an
organisation is divided into various functional units and it is the coordinating function that ensures
that all these units efficiently contribute to the objective. It is in the coordinating process that a
manager has to act like a leader and her/his leadership skills are put to test. The best coordination
occurs when individuals see how their jobs contribute to the goals of the organisation. To avoid
splintering efforts, the dominant goal of the organisation should be clearly defined and
communicated to everyone concerned. Goals of subordinate departments should be designed to
contribute to the goals of the organisation. Coordination calls for skill of leadership, communication
and delegation.

COMMUNICATION

As mentioned earlier, communicating is the transfer of information, ideas, understanding or feeling

between people. In other words, it is the process of passing information and understanding from one
person to another. It needs no further emphasis amongst library and information people.
Communication is an all-pervasive phenomenon. Librarians have to communicate with each other
in issuing or responding to directives and in carrying out the functions of management. They also
communicate continuously with users and authorities.

Communication, both written and oral, is used to obtain and give information for planning and
decision making. Even though it may be outside the scope of this unit, you may note that there are
many obstacles or barriers to effective communication.

REPORTING

It has already been said that reporting is converse of directing. Reporting serves the purpose of
keeping authorities and the public at large informed about the performance, achievements and
shortfalls for a specific period. This function not only helps with a healthy self assessment but also
by maintaining good public relations. Libraries usually generate a great amount of statistical data
and reports.

BUDGETING

The budget is one of the plan documents. It is a statement of planned allocation of resources
expressed in financial or numerical terms. Budgeting includes financial planning, accounting and
controlling.

INNOVATING

As every organisation has to constantly grow bigger and better, innovation becomes an important
function of a manager. Innovation means creating new ideas which may either result in the
development of new products or finding the new user for the old ones.

REPRESENTING

Today’s manager is required to spend a part of his time representing his organisation before various
outside groups (stake holders) like Government officials, labour unions, financial institutions,
suppliers, customers, etc.

1.6 PRINCIPLES OF MANAGEMENT

Below are the time tested theories on Management propagated by experts in their respective fields
which ensures the smooth flow of management process. The theories are:-
1:- Principles of Management By Henri Fayol

2:- Principles of Scientific Management by F.W Taylor

1.6.1 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL

Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of
the concept of management. He introduced a general theory that can be applied to all levels of
management and every department. The Fayol theory is practised by the managers to organize and
regulate the internal activities of an organization. He concentrated on accomplishing managerial
efficiency.
The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will enhance the quality
of the product. Similarly, he also concluded that the division of work improves the productivity,
efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial
as well as a technical work level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the management to work
efficiently, and responsibility makes them responsible for the work done under their guidance or
leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy and
comprehensive. Employees good behaviour also helps them smoothly build and progress in their
professional careers.
4. Unity of Command-
This means an employee should have only one boss and follow his command. If an employee has to
follow more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means all the person
working in a company should have one goal and motive which will make the work easier and
achieve the set goal easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain
of command in a company.
7. Remuneration-
This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. However, it should be according to an individual’s efforts they have
made.
8. Centralization-
In any company, the management or any authority responsible for the decision-making process
should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the
point that there should be a balance between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This
is necessary so that every employee knows their immediate senior also they should be able to
contact any, if needed.
10. Order-
A company should maintain a well-defined work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more positive productivity.
11. Equity-
All employees should be treated equally and respectfully. It’s the responsibility of a manager that no
employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their job. It is the duty of the management to
offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives in an organization.
It will help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be supportive of each
other regularly. Developing trust and mutual understanding will lead to a positive outcome and
work environment.
This 14 principles of management are used to manage an organization and are beneficial for
prediction, planning, decision-making, organization and process management, control and
coordination.
1.6.1 PRINCIPLES OF 17MANAGEMENT BY F.W. TAYLOR

F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’
proved with his practical theories that a scientific method can be implemented to management.
Taylor gave much concentration on the supervisory level of management and performance of
managers and workers at an operational level. Let’s discuss in detail the five principles of
management by F.W Taylor.

1. Science, not the Rule of Thumb-

This rule focuses on increasing the efficiency of an organisation through scientific analysis of work
and not with the ‘Rule of Thumb’ method. Taylor believed that even a small activity like loading
paper sheets into boxcars can be planned scientifically. This will save time and also human energy.
This decision should be based on scientific analysis and cause and effect relationships rather than
‘Rule of Thumb’ where the decision is taken according to the manager’s personal judgement.

2. Harmony, Not Discord-

Taylor indicated and believed that the relationship between the workers and management should be
cordial and completely harmonious. Difference between the two will never be beneficial to either
side. Management and workers should acknowledge and understand each other’s importance.
Taylor also suggested the mental revolution for both management and workers to achieve total
harmony.

3. Mental Revolution-
This technique involves a shift of attitude of management and workers towards each other. Both
should understand the value of each other and work with full participation and cooperation. The aim
of both should be to improve and boost the profits of the organisation. Mental Revolution demands
a complete change in the outlook of both the workers and management; both should have a sense of
togetherness.

4. Cooperation, not Individualism-

It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and the
management. Managers and workers should have mutual cooperation and confidence and a sense of
goodwill. The main purpose is to substitute internal competition with cooperation.

5. Development of Every Person to his Greatest Efficiency-

The effectiveness of a company also relies on the abilities and skills of its employees. Thus,
implementing training, learning best practices and technology, is the scientific approach to brush up
the employee skill. To assure that the training is given to the right employee, the right steps should
be taken at the time of selection and recruiting candidates based on a scientific selection.
1.6.3 DIFFERENCE BETWEEN FAYOL’S & TAYLOR’S THEORIES OF
MANAGEMENT

Henry Fayol F.W. Taylor

Definition

Henry Fayol, father of modern management F.W. Taylor, father of scientific management
contributed fourteen management principles, contributed four management principles, for
accomplishing managerial efficiency. enhancing overall productivity.

Concentrated

Top-level management Low-level management

Approach

Top management based on top downward Supervisory viewpoint and bottom upward
approach. approach

Focus

Focused on delivering managerial efficiency. Increasing productivity of labour

Theory-based on

Personal experience Observation and experiment.

1.7 TASKS AND RESPONSIBILITIES OF A PROFESSIONAL

MANAGERIAL

Managers shape the culture of their teams and workplaces in countless ways. They have to play
both an administrative and leadership role. And they require a diverse set of skills to be successful.
But what exactly does a manager do? These are the fundamental requirements of the manager's job
and why these skills are critical for success in today’s organizations. Management continues to be a
viable career option.

1.7.1 ROLE OF MANAGER INSIDE AN ORGANIZATION

Organizations are hierarchies of titles. The organizational chart or the structure of the company and
the relationships of the jobs and responsibilities, from the top down, may include CEO, vice
president, director, then manager. Each of these people performs separate and critical functions,
enabling the organization to function, meet its obligations, and turn a profit.

The higher you climb in the organization’s ranks, the further away you move from the day-to-day
operations and work of the firm’s employees. While the CEO and vice presidents focus more of
their efforts on issues of strategy, investment, and overall coordination, managers are directly
involved with the individuals serving customers, producing and selling the firm’s goods or services,
and providing internal support to other groups.

Additionally, the manager acts as a bridge from senior management for translating higher-level
strategies and goals into operating plans that drive the business. In that position, the manager is
accountable to senior executives for performance and to front-line employees for guidance,
motivation, and support. It is common for managers to feel as if they are pulled between the
demands of top leaders and the needs of the individuals performing the work of the firm. 

The Work of the Manager

Have you ever witnessed the "plate spinner" at the circus? This performer places a breakable dinner
plate on a stick and starts it spinning. The entertainer repeats this task a dozen or more times, then
runs around striving to keep all of the plates spinning without letting any crash to the floor.
On many occasions, the role of a manager feels a great deal like this plate spinner. The manager’s
functions are many and varied, including:

✔Hiring and staffing

✔Training new employees
✔Coaching and developing existing employees
✔Dealing with performance problems and terminations
✔Supporting problem resolution and decision-making
✔Conducting timely performance evaluations
✔Translating corporate goals into functional and individual goals
✔Monitoring performance and initiating action to strengthen results
✔Monitoring and controlling expenses and budgets
✔Tracking and reporting scorecard results to senior management
✔Planning and goal-setting for future periods

The daily work of the manager is filled with one-on-one or group interactions focused on
operations. Many managers use early mornings or later evenings to complete their reports, catch up
on email, and update their task lists. There is never a dull moment, much less time for quiet
contemplation, in the lives of most managers. 

TYPES OF MANAGERS

Managers are most often responsible for a particular function or department within the organization.
From accounting to marketing, to sales, customer support, engineering, quality, and all other
groups, a manager either directly leads his or her team or leads a group of supervisors who oversee
the teams of employees. 

In addition to the traditional role of departmental or functional manager, or what is generally known
as a line manager, there are also product and project managers who are responsible for a set of
activities or initiatives, often without any people reporting to them. These informal managers work
across functions and recruit team members from the various groups for temporary and unique
initiatives. 

SPAN OF CONTROL

The phrase “span of control” relates to the number of individuals who report directly to any
particular manager. Various trends have existed over the years, but the current approach to creating
a proper span of control in an organization involves an analysis of what the organization and its
employees need.

When you think about the span of control, a small number of direct reports creates a narrow span of
control and a hierarchical structure in which decision making frequently resides at the top of the
organization. Narrow spans of control are more expensive, but they allow managers to have more
time to interact with direct reports. They also tend to encourage professional growth and employee
advancement because the manager knows the employees well and has time to spend with them
individually.

According to the Society for Human Resource Management: "In contrast, a wide span of control
refers to a larger number of direct reports supervised by one manager, creating a "flat" organization.
This approach increases the number of interactions between the manager and his or her direct
reports, which could cause managers to become overwhelmed but can also provide more
autonomy."

In summary, a manager optimally has no more than six to eight direct reports, although many have
ten or even twenty individuals they are responsible for on a daily basis. A smaller span of control
enables increased support for training, coaching, and development. The larger span reduces the
manager’s ability to support their direct reports but also allows for greater employee autonomy.

AUTHORITY OF THE MANAGER

A manager may have the power to hire, fire, discipline, or promote employees especially in smaller
organizations with the assistance of the Human Resources staff. In larger companies, a manager
may only recommend such action to the next level of management. The manager has the authority
to change the work assignments of team members in both large and small organizations.

1.7.2 ESSENTIAL SKILLS OF A MANAGER

Managers need to develop and hone the following skills:

LEADERSHIP

A manager has to be able to set priorities and motivate your team members. This involves self-
awareness, self-management, social awareness, and relationship management. The manager needs
to radiate energy, empathy, and trust. And, remember that effective leaders work daily to develop
team members through positive, constructive  feedback and coaching. 

COMMUNICATION

The manager must become a student of effective communication in all of its applications, including
one-on-one, small groups, large groups, email, remote working, and social media. Good managers
realize that the most important aspect of communicating is listening.

COLLABORATION

The manager serves as a role model for working together. You support cross-functional efforts and
model collaborative behaviours to set the example for your team members. 
CRITICAL THINKING

The manager strives to understand where and how your projects fit into the bigger picture to
enhance your effectiveness. The manager reviews priorities in light of larger organizational goals.
He or she translates this understanding into meaningful goals and objectives for their team members
who need to understand where their work fits in the big picture.

FINANCE

A manager needs to learn the language of numbers. Managers must strive to understand how
company funds are invested and to ensure that these investments earn a good return for the firm.
While you don't need to be an accountant to be a manager, it is imperative that you learn and apply
the basics of solid financial understanding. For example, how many employees can produce the
most quality product for the least cost?

PROJECT MANAGEMENT

Nearly every initiative in an organization turns into a project. And, projects can become complex
and unwieldy. Today’s managers understand and leverage formal project management practices to
ensure timely completion and proper control of initiatives.