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Topic-1
Concept of Management, Nature,
Process and Significance of
Management
Concept of Management: – Management can be defined as the process of achieving
organizational goals through planning, organizing, leading, and controlling the human,
physical, financial, and information resources of the organization in an effective and efficient
manner.
Every business needs planning for the future for a successful business and the person who
is in the authority, has to take decisions and he will be responsible for the consequences of
his decisions whether favorable and unfavorable.

What is management?
Meaning of Management: – Management is what a manager does within the organization.
All the activities whether related to decision making or implementation of such decisions are
performed by the managers with the purpose of achieving common goals.
Definition of Management
Concept of management is defined as the process of getting things done from others to
achieve goals effectively and efficiently.
Efficiently: –
 To complete a task with minimum cost.
 For example: – ‘A’ got a task of construction of the Flyover. The estimated target for the
same is 1000 crores and ‘A’ completed the construction of flyover in 900 crores. In this
case, A worked efficiently.
Effectively: –
 It is basically to complete the task on time.
 For example: – Keeping in mind the above example, Suppose, ‘A’ got two years’ time
period for the construction of flyover. If ‘A’ completes his task within the span of two
years. Here, in this case, we can say A’s management is effective.
Process of Management
The process includes the functions performed by the management within the organization.
1. Planning: – Planning means thinking in advance. Planning relates to setting goals,
objectives and targets and also describe a mechanism to achieve them at various levels
throughout the organization.
2. Organizing: – It means the arrangement of resources to do different tasks in the
organization.
3. Staffing: – It means the appointment of the right person at the right place or job.
4. Directing: – It includes the instructions, guidance and motivation given by the manager
to their employees and manager adopt their leadership tasks.
5. Controlling: – Control is concerned with measuring and minimizing the difference
between planned performance and actual performance, and monitoring performance as
well as taking corrective actions wherever necessary. Thus management is a complex,
integrated and ongoing dynamic process.

Concept of Management: Nature

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1. Goal-Oriented: – The main task of management is to achieve the goals of the

organisation. An organization has some goals, which are the basic reason for its
existence.
A. Goal: – It means what the organisation wants to achieve.
B. For example, Reliance Jio; It came up with a goal to capture whole telecommunication
industry and to get the highest market share.
C. Here, in the above-mentioned example, the work of management is to achieve goals
set by ‘Reliance Jio’ with effectiveness and efficiency.
D. The goal should be clear and simply stated to each member working for the
organization.
2. Management is a Group Activity: – Management is not a one-person activity.
A. It is a group activity and every individual working for the organization fully knows his
responsibilities and duties which he/she is expected to achieve within the time allotted.
B. Every individual joins the organization with different and multiple needs known as
personal objectives but works towards the achievement of organizational goals.
3. Management is an Intangible Force: – Management cannot be touch or seen but its
presence can be observed if its objectives are achieved as per the set goal.
A. The satisfaction of stakeholders is a guiding force of good management.
B. The decision making of managers should be in the light of objectives to be achieved.
C. Secondly, the implementation of such decisions such target both efficiency and
effectiveness.
(The term stakeholders include all the persons who are interested in business directly
and indirectly. It includes customers, government, public, investors, etc.)
4. Management is All-Pervasive: – Management is a pervasive function as it is applied to
all kinds of organization.
A. It is applied in all types of organization irrespective of the following factors: –
 Size (small scale, medium scale or large scale)
 Purpose (profit earning or non- profit earning organizations)
 Level (top, middle or lower level of organizations)
B. For example: – The lower level does day to day planning, the middle level does
departmental level planning and the top-level does organizational-level planning.
5. Management is Multi-Dimensional: – It is a complex activity with three main
dimensions.
A. Management of work: – Management of work aims to manage the work i.e., which
work to be performed at what time.
B. Management of people: – Management of people includes management of individuals
i.e., to allot authorities, responsibilities and their duties. Managing people has two
dimensions: –
 Management of individuals: – It means dealing with employees as individuals with
their diverse needs and behaviors.
 Management of people: – It means dealing with individuals as a group of people
i.e., to maintain coordination among individuals at the same level.
C. Management of Operations: – It is interlinked with both management of work and
management of people.
 This has some basic products and services to provide in order to survive.
 For example: – the main activity of banks is to provide loans and to take loans from
the public but they are providing other activities as well as online banking, ATM
services at no cost, etc.
6. Management is a Continuous Process: –
A. Management is a process of continuous activities, but separate functions i.e., planning,
organizing, staffing, directing and controlling.
B. Management starts with the organization and ends with organization.
7. Management is a Dynamic Function: –

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A. In order to survive, management should make changes according to the business

environment. In order to ensure regular growth, managers should make changes in
the policies as per the needs of the stakeholders.
B. For example: – Paytm is making the ventures with all types of business units such as
schools, universities and other companies and professionals to provide a single
platform for all payment solutions.
Significance/Importance of concept of management
1. Optimal use of resources: – A manager eliminates wastage of resources that leads to
efficiency in all business functions.
2. Effective leadership and motivation: – It helps employees to work in harmony and
achieve goals in a coordinated manner. It provides effective leadership and motivation for
employees to work hard.
3. Sound industrial relations: – A manager maintains a balance between employees
demands and organizational needs, helping to reduce industrial disputes.
4. Achievement of goals: – It helps in realizing goals with maximum efficiency by
minimizing unnecessary deviations, overlapping efforts and waste motions.
5. Improvement in living standards: – It improves the standard of living of people by
ensuring optimum utilization of scarce resources and survival of the firm in a dynamic
environment.
6. Establishing a sound organization: – Managers help to establish a sound organization
through effective authority and responsibility relationships.
7. Reduces Cost: – A manager uses cost-effective techniques to reduce production costs
and increase production.

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Topic-2
Evolution of Management Concept
The origin of Evolution management can be traced back to the days when man started

living in groups. History reveals that strong men organized the masses into groups

according to their intelligence, physical and mental capabilities. Evidence of the use of

the well recognized principles of management is to be found in the organization of

public life in ancient Greece, the organization of the Roman Catholic Church and the

organization of military forces. Thus management in some form or the other has been

practiced in the various parts of the world since the dawn of civilization. With the on

set of Industrial Revolution, however, the position underwent a radical change. The

structure of industry became extremely complex. At this stage, the development of a

formal theory of management became absolutely necessary. It was against this

background that the pioneers of modern management thought laid the foundations of

modern management theory and practice.

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Explain the Evolution of Management Thought

Evolution of management thought may be divided into four stages

1. Pre-scientific management period.

2. Classical Theory

a. Scientific Management of Taylor

b. Administrative Management of Fayol
c. Bureaucratic Model of Max Weber
3. Neo-classical Theory or Behaviour Approach
4. Modern Theory or Systems Approach

Evolution of Management Thought

Pre-scientific Management Period

The advent of industrial revolution in the middle of the 18th century had its impact on

management. Industrial revolution brought about a complete change in the methods

of production, tools and equipments, organization of labour and methods of raising

capital.

Employees went to their work instead of receiving it, and so, the factory system, as it

is known today, become a dominant feature of the economy. Under this system, land

and buildings, hired labour, and capital are made available to the entrepreneur, who

strives to combine these factors in the efficient achievement of a particular goal. All

these changes, in turn, brought about changes in the field of management.

Traditional, conventional or customary ideas of management were slowly given up

and management came to be based on scientific principles. In the words of L. F.

Urwick- "Modern management has thrown open a new branch of human knowledge, a

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fresh universe of discourse". During the period following the industrial revolution,

certain pioneers tried to challenge the traditional character of management by

introducing new ideas and character of management by introducing new ideas and

approaches. The notable contributors of this period are:

a. Professor Charles Babbage (UK 1729 -1871): He was a Professor of Mathematics

at
Cambridge University. Prof Babbage found that manufacturers made little use of
science and mathematics, and that they (manufacturers) relied upon opinions
instead of investigations and accurate knowledge. He felt that the methods of science
and mathematics could be applied to the solution of methods in the place of guess
work for the solution of business problems. He advocated the use of accurate
observations, measurement and precise knowledge for taking business decisions. He
urged the management of an enterprise, on the basis of accurate data obtained
through rigid investigation, the desirability of finding out the number of times each
operation is repeated each hour, the dividing of work into mental and physical
efforts, the determining of the precise cost for every process and the paying of a
bonus to the workers in proportion to his own efficiency and the success of
enterprise.
b. James Watt Junior (UK 1796 - 1848) and Mathew Robinson Boulton(1770
- 1842): James Watt Junior and Mathew Robinson Boulton contributed to the
development of management thought by following certain management
techniques in their engineering factory at Soho in Birmingham. They are:-
c. Robert Owens (UK 1771 - 1858): Robert Owens, the promoter of co-operative
and trade union movement in England, emphasized the recognition of human
element in industry. He firmly believed that workers' performance in industry was
influenced by the working conditions and treatment of workers. He introduced new
ideas of human relations - shorter working hours, housing facilities, training of
workers in hygiene, education of their children, provision of canteen etc. Robert
Owen, managed a group of textile mills in Lanark, Scotland, where he used his
ideas of human relations. Though his approach was paternalistic, he came to be
regarded as the father of Personnel Management.
d. Henry Robinson Towne (USA 1844 -1924): H.R Towne was the president of the
famous lock manufacturing company "Yale and Town". He urged the combination of
engineers and economists as industrial managers. This combination of qualities,
together with at least some skill as an accountant, is essential to the successful
management of industrial workers. He favoured organized exchange of experience
among managers and pleaded for an organized effort to pool the great fund of
accumulated knowledge in the art of workshop management.
e. Seebohm Rowntree (UK 1871- 1954): Rowntree created a public opinion on
the need of labour welfare scheme and improvement in industrial relations. The
Industrial Welfare Society, The Management Research Groups and the Oxford
Lecture Conferences in the U.K owed their origin and progress to the interest and
zeal of Rowntree.
Classical Theory

Prof. Charles Babbage, James Watt Junior and Mathew Robinson Boulton, Robert

Owen, Henry Robinson Towne and Rowntree were, no doubt, pioneers of

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management thought. But, the impact of their contributions on the industry as a

whole was meagre. The real beginning of the science of management did not occur

until the last decade of the 19thcentury. During this period, stalwarts like F.W.

Taylor, H.L. Gantt, Emerson, Frank and Lillian Gilberth etc., laid the foundation of

management, which in due course, came to be known as scientific management. This

epoch in the history of management will be remembered as an era in which

traditional ways of managing were challenged, past management experience was

scientifically systematized and principles of management were distilled and

propagated. The contributions of the pioneers of this age have had a profound impact

in furthering the management know-how and enriching the store of management

principles.

F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific

management and administrative management and both provided the bases for

science and art of management.

Features of Management in the Classical Period:

1. It was closely associated with the industrial revolution and the rise of large-scale
enterprise.
2. Classical organization and management theory is based on contributions from a
number of sources. They are scientific management, Administrative
management theory, bureaucratic model, and micro-economics and public
administration.
3. Management thought focussed on job content division of labour,
standardization, simplification and specialization and scientific
approach towards organization.
A. Taylor's Scientific Management: Started as an apprentice machinist in
Philadelphia, USA. He rose to be the chief engineer at the Midvale Engineering
Works and later on served with the Bethlehem Works where he experimented with
his ideas and made the contribution to the management theory for which he is so
well known. Frederick Winslow Taylor well-known as the founder of scientific
management was the first to recognize and emphasis the need for adopting a
scientific approach to the task of managing an enterprise. He tried to diagnose the
causes of low efficiency in industry and came to the conclusion that much of waste
and inefficiency is due to the lack of order and system in the methods of
management. He found that the management was usually ignorant of the amount
of work that could be done by a worker in a day as also the best method of doing
the job. As a result, it remained largely at the mercy of the workers who
deliberately shirked work.

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He therefore, suggested that those responsible for management should adopt a

scientific approach in their work, and make use of "scientific method" for achieving

higher efficiency. The scientific method consists essentially of

a. Observation
b. Measurement
c. Experimentation and
d. Inference.

He advocated a thorough planning of the job by the management and emphasized

the necessity of perfect understanding and co-operation between the management

and the workers both for the enlargement of profits and the use of scientific

investigation and knowledge in industrial work. He summed up his approach in

these words:

o Science, not rule of thumb

o Harmony, not discord
o Co-operation, not individualism
o Maximum output, in place of restricted output
o The development of each man to his greatest efficiency and prosperity.
Elements of Scientific Management: The techniques which Taylor regarded as its
essential elements or features may be classified as under:

10. Scientific Task and Rate-setting, work improvement, etc.

11. Planning the Task.
12. Vocational Selection and Training
13. Standardization (of working conditions, material equipment etc.)
14. Specialization
15. Mental Revolution.
16. Scientific Task and Rate-Setting (work study): Work study may be
defined as the systematic, objective and critical examination of all the factors
governing the operational efficiency of any specified activity in order to effect
improvement. Work study includes.
a. Methods Study: The management should try to ensure that the plant is laid
out in the best manner and is equipped with the best tools and machinery. The
possibilities of eliminating or combining certain operations may be studied.
b. Motion Study: It is a study of the movement, of an operator (or even of a
machine) in performing an operation with the purpose of eliminating
useless motions.
c. Time Study (work measurement): The basic purpose of time study is to
determine the proper time for performing the operation. Such study may be
conducted after the motion study. Both time study and motion study help in
determining the best method of doing a job and the standard time allowed for
it.

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d. Fatigue Study: If, a standard task is set without providing for measures to
eliminate fatigue, it may either be beyond the workers or the workers may over
strain themselves to attain it. It is necessary, therefore, to regulate the
working hours and provide for rest pauses at scientifically determined
intervals.
e. Rate-setting: Taylor recommended the differential piece wage system,
under which workers performing the standard task within prescribed time are
paid a much higher rate per unit than inefficient workers who are not able to
come up to the standard set.
f.
17. anning the Task: Having set the task which an average worker must strive
toperform to get wages at the higher piece-rate, necessary steps have to be
taken top lan the production thoroughly so that there is no bottlenecks and the
work goes on systematically.
18. lection and Training: Scientific Management requires a radical change in the
methods and procedures of selecting workers. It is therefore necessary to entrust
the task of selection to a central personnel department. The procedure of
selection will also have to be systematised. Proper attention has also to be
devoted to the training of the workers in the correct methods of work.
19. Standardization: Standardization may be introduced in respect of the following.
a. Tools and equipment: By standardization is meant the process of bringing
about uniformity. The management must select and store standard tools and
implements which will be nearly the best or the best of their kind.
b. Speed: There is usually an optimum speed for every machine. If it is exceeded,
it is likely to result in damage to machinery.
c. Conditions of Work: To attain standard performance, the maintenance
of standard conditions of ventilation, heating, cooling, humidity, floor
space, safety etc., is very essential.
d. Materials: The efficiency of a worker depends on the quality of materials and
the method of handling materials.
20. Specialization: Scientific management will not be complete without the
introduction of specialization. Under this plan, the two functions of 'planning' and
'doing' are separated in the organization of the plant. The `functional foremen'
are specialists who join their heads to give thought to the planning of the
performance of operations in the workshop. Taylor suggested eight functional
foremen under his scheme of functional foremanship.
a. The Route Clerk: To lay down the sequence of operations and instruct
the workers concerned about it.
b. The Instruction Card Clerk: To prepare detailed instructions regarding
different aspects of work.
c. The Time and Cost Clerk: To send all information relating to their pay to
the workers and to secure proper returns of work from them.
d. The Shop Disciplinarian: To deal with cases of breach of discipline and
absenteeism.
e. The Gang Boss: To assemble and set up tools and machines and to teach
the workers to make all their personal motions in the quickest and best way.
f. The Speed Boss: To ensure that machines are run at their best speeds and
proper tools are used by the workers.

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g. The Repair Boss: To ensure that each worker keeps his machine in
good order and maintains cleanliness around him and his machines.
h. strong>The Inspector: To show to the worker how to do the work.
21. Mental Revolution: At present, industry is divided into two groups –
management and labour. The major problem between these two groups is the
division of surplus. The management wants the maximum possible share of the
surplus as profit; the workers want, as large share in the form of wages. Taylor
has in mind the enormous gain that arises from higher productivity. Such gains
can be shared both by the management and workers in the form of increased
profits and increased wages.
Benefits of Scientific Management: Taylor's ideas, research and

recommendations brought into focus technological, human and organizational

issues in industrial management. Benefits of Taylor's scientific management

included wider scope for specialization, accurate planning, timely delivery,

standardized methods, better quality, lesser costs, minimum wastage of materials,

time and energy and cordial relations between management and workers.

According to Gilbreths, the main benefits of scientificmanagement are "conservation

and savings, making an adequate use of every one'senergy of any type that is

expended". The benefits of scientific management are:-

v. Replacement of traditional rule of thumb method by scientific techniques.

w. Proper selection and training of workers.
x. Incentive wages to the workers for higher production.
y. Elimination of wastes and rationalization of system of control.
z. Standardization of tools, equipment, materials and work methods.
aa. Detailed instructions and constant guidance of the workers.
bb. Establishment of harmonious relationship between the workers.
cc. Better utilization of various resources.
dd. Satisfaction of the needs of the customers by providing higher quality
products at lower prices.
Criticism

31. Worker's Criticism:

a. Speeding up of workers: Scientific Management is only a device to speed up
the workers without much regard for their health and well-being.
b. Loss of individual worker's initiative: Scientific Management
reduces workers to automatic machine by taking away from them the
function of thinking.
c. Problem of monotony: By separating the function of planning and thinking
from that of doing, Scientific Management reduces work to mere routine.
d. Reduction of Employment: Scientific Management creates unemployment
and hits the workers hard.
e. Weakening of Trade Unions: Under Scientific Management, the

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important issues of wages and working conditions are decided by the

management through scientific investigation and the trade unions may
have little say in the matter.
f. Exploitation of workers: Scientific Management improves productivity
through the agency of workers and yet they are given a very small share
of the benefit of such improvement.
32. Employer's Criticism:
a. Heavy Investment: It requires too heavy an investment. The employer has
to meet the extra cost of the planning department though the foreman in this
department do not work in the workshop and directly contribute towards
higher production.
b. Loss due to re-organization: The introduction of Scientific Management
requires a virtual reorganization of the whole set-up of the industrial unit.
Work may have to be suspended to complete such re-organization.
c. Unsuitable for small scale firms: various measures like the establishment
of a separate personnel department and the conducting of time and motion
studies are too expensive for a small or modest size industrial unit.
Contributions of Scientific Management: Chief among these are:

33. Emphasis on rational thinking on the part of management.

34. Focus on the need for better methods of industrial work through systematic
study and research.
35. Emphasis on planning and control of production.
36. Development of Cost Accounting.
37. Development of incentive plans of wage payment based on systematic study of work.
38. Focus on need for a separate Personnel Department.
39. Focus on the problem of fatigue and rest in industrial work.

Taylor was the pioneer in introducing scientific reasoning to the discipline of

management.

Many of the objections raised were later remedied by the other contributors to

scientific management like Henry L Gantt, Frank and Lillian Gilbreth and Harrington

Emerson.

Frank (USA, 1867 - 1924) and Lillian (U.S.A, 1878 - 1912): The ideas of

Taylorwere also strongly supported and developed by the famous husband and wife

team of Frank and Lillian Gilbreth. They became interested in wasted motions in

work. After meeting Taylor, they combined their ideas with Taylor's to put scientific

management into effect. They made pioneering effort in the field of motion study

and laid the entire foundation of our modern applications of job simplification,

meaningful work standards and incentive wage plans. Mrs. Gilbreth had a unique

background in psychology and management and the couple could embark on a quest

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for better work methods. Frank Gilbreth is regarded as the father of motion study.

He is responsible for inculcating in the minds of managers the questioning frame of

mind and the search for a better way of doing things.

Gilbreth's contributions to management thought are quite considerable. His main

contributions are:

nn. The one best way of doing a job is the way which involves the fewest motions
performed in an accessible area and in the most comfortable position. The best
way can be found out by the elimination of inefficient and wasteful motions
involved in the work.
oo. He emphasized that training should be given to workers from the very
beginning so that they may achieve competence as early as possible.
pp. He suggested that each worker should be considered to occupy three positions -
(i) the job he held before promotion to his present position, (ii) his present
position, and
qq. the next higher position. The part of a worker's time should be spent in
teaching the man below him and learning from the man above him. This
would help him qualify for promotion and help to provide a successor to his
current job.
rr. Frank and Lillian Gilberth also gave a thought to the welfare of the individuals
who work for the organization.
ss. Gilbreth also devised methods for avoiding wasteful and unproductive
movements. He laid down how workers should stand, how his hands should
move and so on.
Henry Lawrence Gantt (USA, 1861 - 1819): H.L Gantt was born in 1861. He

graduated from John Hopkins College. For some time, he worked as a draftsman in

an iron foundry.

In 1884, he qualified as a mechanical engineer at Stevens Institute. In 1887, he

joined the Midvale Steel Company. Soon, he became an assistant to F.W Taylor. He

worked with Taylor from 1887 - 1919 at Midvale Steel Company. He did much

consulting work on scientific selection of workers and the development of incentive

bonus systems. He emphasized the need for developing a mutuality of interest

between management and labour. Gantt made four important contributions to the

concepts of management:

46. Gantt chart to compare actual to planned performance. Gantt chart was a daily chart
which
graphically presented the process of work by showing machine operations, man
hour performance, deliveries, effected and the work in arrears. This chart was
intended to facilitate day-to-day production planning.
47. Task-and-bonus plan for remunerating workers indicating a more humanitarian

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approach. This plan was aimed at providing extra wages for extra work besides
guarantee of minimum wages. Under this system of wage payment, if a worker
completes the work laid out for him, he is paid a definite bonus in addition to his
daily minimum wages. On the other hand, if a worker does not complete his
work, he is paid only his daily minimum wages. There
was a provision for giving bonus to supervisors, if workers under him were able
to earn such bonus by extra work.
48. Psychology of employee relations indicating management responsibility to teach
and train workers. In his paper "Training Workmen in Habits of Industry and
Cooperation", Gantt pleaded for a policy of preaching and teaching workmen to
do their work in the process evolved through pre-thinking of management.
49. Gantt laid great emphasis on leadership. He considered management as
leadership function. He laid stress on the importance of acceptable leadership as
the primaryelement in the success of any business. Gantt's contributions were
more in the nature of refinements rather than fundamental concepts. They made
scientific management more humanized and meaningful to devotees of Taylor.
Harrington Emerson (USA, 1853 - 1931): Emerson was an American Engineer.

He devoted his attention to efficiency in industry. He was the first to use the term

'efficiency engineering' to describe his brand of consulting. He called his philosophy

"The Gospel of Efficiency". According to him, "efficiency means that the right thing is

done in the right manner, by the right man, at the right place, in the right time".

Emerson laid down the following principles of efficiency to be observed by

management:-

50. Ideals
51. Common Sense
52. Competent Counsel
53. Discipline
54. Fair Deal
55. Proper Records
56. Dispatching
57. Standards and Schedules
58. Standard Conditions
59. Standardized Operations
60. Standard practice instructions and
61. Efficiency Reward.
B. Administrative Management Theory: Henry Fayol was the most important
exponent of this theory. The pyramidal form, scalar principle, unity of command,
exception principle, span of control and departmentalisation are some of the
important concepts set forth by Fayol and his followers like Mooney and Reiley,
Simon, Urwick, Gullick etc.
Henry Fayol (France, 1841 - 1925): Henry Fayol was born in 1941 at

Constantinople in France. He graduated as a mining engineer in 1860 from the

National School of Mining. After his graduation, he joined a French Coal Mining

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Company as an Engineer. After a couple of years, he was promoted as manager. He

was appointed as General Manager of his company in 1888. At that time, the

company suffered heavy losses and was nearly bankrupt. Henry Fayol succeeded in

converting his company from near bankruptcy to a strong financial position and a

record of profits and dividends over a long period.

Concept of Management: Henry Fayol is considered the father of modern theory of

general and industrial management. He

divided general and industrial management into six groups:

0. Technical activities - Production, manufacture, adaptation.

1. Commercial activities - buying, selling and exchange.
2. Financial activities - search for and optimum use of capital.
3. Security activities - protection of property and persons.
4. Accounting activities - stock-taking, balance sheet, cost, and statistics.
5. Managerial activities - planning, organization, command, co- ordination and control.

These six functions had to be performed to operate successfully any kind of

business. He, however, pointed out that the last function i.e., ability to manage,

was the most important for upper levels of managers. The process of management

as an ongoing managerial cycle involving planning, organizing, directing, co-

ordination, and controlling, is actually based on the analysis of general

management by Fayol. Hence, it is said that Fayol established the pattern of

management thought and practice. Even today, management process has general

recognition.

Fayol's Principles of Management: The principles of management are given below:

6. Division of work: Division of work or specialization alone can give maximum

productivity and efficiency. Both technical and managerial activities can be
performedin the best manner only through division of labour and specialization.
7. Authority and Responsibility: The right to give order is called authority. The
obligation to accomplish is called responsibility. Authority and Responsibility are
the two sides of the management coin. They exist together. They are
complementary and mutually interdependent.
8. Discipline: The objectives, rules and regulations, the policies and procedures
must be honoured by each member of an organization. There must be clear
and fair agreement on the rules and objectives, on the policies and
procedures. There must be penalties (punishment) for non-obedience or
indiscipline. No organization can work smoothly without discipline - preferably
voluntary discipline.
9. Unity of Command: In order to avoid any possible confusion and conflict, each
member of an organization must received orders and instructions only from one

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superior (boss).
10. Unity of Direction: All members of an organization must work together to
accomplish common objectives.
11. Emphasis on Subordination of Personal Interest to General or
CommonInterest: This is also called principle of co-operation. Each shall work
for all and all for each. General or common interest must be supreme in any
joint enterprise.
12. Remuneration: Fair pay with non-financial rewards can act as the best
incentive or motivator for good performance. Exploitation of employees in
any manner must be eliminated. Sound scheme of remuneration includes
adequate financial and nonfinancial incentives.
13. Centralization: There must be a good balance between centralization and
decentralization of authority and power. Extreme centralization and
decentralization must be avoided.
14. Scalar Chain: The unity of command brings about a chain or hierarchy of
command linking all members of the organization from the top to the bottom.
Scalar denotes steps.
15. Order: Fayol suggested that there is a place for everything. Order or
system alone can create a sound organization and efficient management.
16. Equity: An organization consists of a group of people involved in joint effort.
Hence, equity (i.e., justice) must be there. Without equity, we cannot have
sustained and adequate joint collaboration.
17. Stability of Tenure: A person needs time to adjust himself with the new work
and demonstrate efficiency in due course. Hence, employees and managers
must have job security. Security of income and employment is a pre-requisite
of sound organization and management.
18. Esprit of Co-operation: Esprit de corps is the foundation of a sound
organization. Union is strength. But unity demands co-operation. Pride, loyalty
and sense of belonging are responsible for good performance.
19. Initiative: Creative thinking and capacity to take initiative can give us sound
managerial planning and execution of predetermined plans.

C. Bureaucratic Model: Max Weber, a German Sociologist developed the bureaucratic

model.
His model of bureaucracy include
a. Hierarchy of authority.
b. Division of labour based upon functional specialization.
c. A system of rules.
d. Impersonality of interpersonal relationships.
e. A system of work procedures.
f. Placement of employees based upon technical competence.
g. Legal authority and power.

Bureaucracy provides a rigid model of an organization. It does not account for

important human elements. The features of Bureaucracy are:-

1. Rigidity, impersonality and higher cost of controls.

2. Anxiety due to pressure of conformity to rules and procedure.

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3. Dependence on superior.
4. Tendency to forget ultimate goals of the organization.
Bureaucratic Model is preferred where change is not anticipated or where rate of

change can be predicated. It is followed in government departments and in large

business organizations.

Neoclassical Theory:Neo-classical Theory is built on the base of classical theory. It

modified, improved and extended the classical theory. Classical theory concentrated

on job content and management of physical resources whereas, neoclassical theory

gave greater emphasis to individual and group relationship in the workplace. The neo-

classical theory pointed out the role of psychology and sociology in the understanding

of individual and group behaviour in an organization.

George Elton Mayo (Australia, 1880 - 1949): Elton Mayo was born in Australia. He

was educated in Logic and Philosophy at St. Peter's College, Adelaide. He led a team of

researchers from Harvard University, which carried out investigation in human

problems at the Hawthorne Plant of Western Electrical Company at Chicago. They

conducted some experiments (known as Hawthorne Experiments) and investigated

informal groupings, informal relationships, patterns of communication, patterns of

informal leadership etc. Elton Mayo is generally recognized as the father of Human

Relations School. Other prominent contributors to this school include Roethlisberger,

Dickson, Dewey, Lewinetc.

Hawthorne Experiment: In 1927, a group of researchers led by Elton Mayo and

Fritz Roethlisberger of the Harvard Business School were invited to join in the studies

at the Hawthorne Works of Western Electric Company, Chicago. The experiment lasted

up to 1932. The Hawthorne Experiments brought out that the productivity of the

employees is not the function of only physical conditions of work and money wages

paid to them. Productivity of employees depends heavily upon the satisfaction of the

employees in their work situation. Mayo's idea was that logical factors were far less

important than emotional factors in determining productivity efficiency. Furthermore,

of all the human factors influencing employee behaviour, the most powerful were

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those emanating from the worker's participation in social groups. Thus, Mayo

concluded that work arrangements in addition

to meeting the objective requirements of production must at the same time satisfy the

employee's subjective requirement of social satisfaction at his work place.

The Hawthorne experiment consists of four parts. These parts are briefly described
below:-

1. Illumination Experiment.
2. Relay Assembly Test Room Experiment.
3. Interviewing Programme.
4. Bank Wiring Test Room Experiment.
1. Illumination Experiment: This experiment was conducted to establish
relationship between output and illumination. When the intensity of light was
increased, the output also increased. The output showed an upward trend even
when the illumination was gradually brought down to the normal level. Therefore,
it was concluded that there is no consistent relationship between output of
workers and illumination in the factory. There must be some other factor which
affected productivity.
2. Relay Assembly Test Room Experiment: This phase aimed at knowing not only
the impact of illumination on production but also other factors like length of the
working day, rest hours, and other physical conditions. In this experiment, a small
homogeneous work-group of six girls was constituted. These girls were friendly to
each other and were asked to work in a very informal atmosphere under the
supervision of a researcher. Productivity and morale increased considerably during
the period of the experiment. Productivity went on increasing and stabilized at a
high level even when all the improvements were taken away and the pre-test
conditions were reintroduced. The researchers concluded that socio-psychological
factors such as feeling of being important, recognition, attention,
participation,cohesive work-group, and non-directive supervision held the key for
higherproductivity.
3. Mass Interview Programme: The objective of this programme was to make a
systematic study of the employees' attitudes which would reveal the meaning which
their "working situation" has for them. The researchers interviewed a large number
of workers with regard to their opinions on work, working conditions and
supervision. Initially, a direct approach was used whereby interviews asked
questions considered important by managers and researchers. The researchers
observed that the replies of the workmen were guarded. Therefore, this approach
was replaced by an indirect technique, where the interviewer simply listened to
what the workmen had to say. The findings confirmed the importance of social
factors at work in the total work environment.
4. Bank Wiring Test Room Experiment: This experiment was conducted by
Roethlisberger and Dickson with a view to develope a new method of observation
and obtaining more exact information about social groups within a company and
also finding out the causes which restrict output. The experiment was conducted to
study a group of workers under conditions which were as close as possible to
normal. This group comprised of 14 workers. After the experiment, the production
records of this group were compared with their earlier production records. It was

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observed that the group evolved its own production norms for each individual
worker, which was made lower than those set by the management. Because of
this, workers would produce only that much, thereby defeating the incentive
system. Those workers who tried to produce more than the group norms were
isolated, harassed or punished by the group. The findings of the study are:-
i. Each individual was restricting output.
ii. The group had its own "unofficial" standards of performance.
iii. Individual output remained fairly constant over a period of time.
iv. Informal groups play an important role in the working of an organization.

Contributions of the Hawthorne Experiment: Elton Mayo and his associates

conducted their studies in the Hawthorne plant of

the western electrical company, U.S.A., between 1927 and 1930. According to them,
behavioural science methods have many areas of application in management. The
important features of the Hawthorne Experiment are:-

1. A business organization is basically a social system. It is not just a techno-economic

system.
2. The employer can be motivated by psychological and social wants because his
behaviour is also influenced by feelings, emotions and attitudes. Thus economic
incentives are not the only method to motivate people.
3. Management must learn to develop co-operative attitudes and not rely merely on
command.
4. Participation becomes an important instrument in human relations movement.
In order to achieve participation, effective two-way communication network is
essential.
5. Productivity is linked with employee satisfaction in any business organization.
Therefore management must take greater interest in employee satisfaction.
6. Group psychology plays an important role in any business organization. We must
therefore rely more on informal group effort.
7. The neo-classical theory emphasizes that man is a living machine and he is far more
important than the inanimate machine. Hence, the key to higher productivity lies in
employee morale. High morale results in higher output.
Elements of Behavioural Theory: There are three elements of behavioural theory.

1. The Individual: The neoclassical theory emphasized that individual differences

must be recognised. An individual has feelings, emotions, perception and attitude.
Each person is unique. He brings to the job situation certain attitudes, beliefs and
ways of life, as well as skills. He has certain meaning of his job, his supervision,
working conditions etc. The inner world of the worker is more important than the
external reality in the determination of productivity. Thus human relations at work
determine the rise or fall in productivity. Therefore human relationists advocate
the adoption of multidimensional model of motivation which is based upon
economic,individual and social factors.>
2. Work Groups: Workers are not isolated; they are social beings and should be
treated as such by management. The existence of informal organization is natural.
The neo-classical theory describes the vital effects of group psychology and
behaviour on motivation and productivity.

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3. Participative Management: The emergence of participative management is

inevitable when emphasis is laid on individual and work groups. Allowing labour to
participate in decision making primarily to increase productivity was a new form of
supervision. Management now welcomes worker participation in planning job
contents and job operations. Neoclassical theory focuses its attention on workers.
Plant layout, machinery, tool etc., must offer employee convenience and facilities.
Therefore, neoclassical approach is trying to satisfy personal security and social
needs of workers.

Human relationists made very significant contribution to management thought by

bringing into limelight human and social factors in organizations. But their concepts

were carried beyond an appropriate limit. There are many other factors which

influence productivity directly. Modern management thought wants equal emphasis

on man and machine and we can evolve appropriate man- machine system to secure

both goals – productivity and satisfaction.

Limitations of Human Relations Approach:-

1. The human relationists drew conclusions from Hawthorne studies. These

conclusions are based on clinical insight rather than on scientific evidence.
2. The study tends to overemphasize the psychological aspects at the cost of the
structural and technical aspects.
3. It is assumed that all organizational problems are amenable to solutions
through human relations. This assumption does not hold good in practice.
4. The human relationists saw only the human variables as critical and ignored other
variables.
5. The human relationists overemphasize the group and group decision-making. But
in practice, groups may create problems and collective decision-making may not
be possible.
Modern Theory (System Approach): The systems approach to management
indicates the fourth major theory of management thought called modern theory.
Modern theory considers an organization as an adaptive system which has to adjust
to changes in its environment. An organization is now defined as a structured process
in which individuals interact for attaining objective s. Meaning of "System": The
word system is derived from the Greek word meaning to bring together or to
combine. A system is a set of interconnected and inter-related elements or
component parts to achieve certain goals. A system has three significant parts:

1. Every system is goal-oriented and it must have a purpose or objective to be attained.

2. In designing the system we must establish the necessary arrangement of components.
3. Inputs of information, material and energy are allocated for processing as per plan
so that the outputs can achieve the objective of the system.
The Design of a Basic System

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Systems Approach Applied to an Organization: When systems approach is applied

to organization, we have the following features of an organization as an open adaptive
system:-

1. It is a sub-system of its broader environment.

2. It is a goal-oriented – people with a purpose.
3. It is a technical subsystem – using knowledge, techniques, equipment and facilities.
4. It is a structural subsystem – people working together on interrelated activities.
5. It is a psychosocial system – people in social relationships.
6. It is co-ordinate by a managerial sub system, creating, planning, organizing,
motivating, communicating and controlling the overall efforts directed
towards set goals.
Characteristics of Modern Management Thought:

1. The Systems Approach: An organization as a system has five basic parts -

1. Input
2. Process
3. Output
4. Feedback and
5. Environment.
It draws upon the environment for inputs to produce certain desirable outputs. The

success of these outputs can be judged by means of feedback. If necessary, we have

to modify out mix of inputs to produce as per changing demands.

2. Dynamic: We have a dynamic process of interaction occurring within the structure of

an
organization. The equilibrium of an organization and its structure is itself dynamic
or changing.
3. Multilevel and Multidimensional: Systems approach points out complex
multilevel and multi dimensional character. We have both a micro and macro
approach. A company is micro within a business system. It is macro with respect to
its own internal units. Within a company as a system we have:-

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1. Production subsystem
2. Finance subsystem
3. Marketing subsystem
4. Personnel subsystem.

All parts or components are interrelated. Both parts as well as the whole are equally

important. At all levels, organizations interact in many ways.

4. Multimotivated: Classical theory assumed a single objective, for instance, profit.

Systems approach recognizes that there may be several motivations behind our

actions and behaviour. Management has to compromise these multiple objectives

eg: - economic objectives and social objectives.

5. Multidisciplinary: Systems approach integrates and uses with profit ideas

emerging from different schools of thought. Management freely draws concepts
and techniques from many fields of study such as psychology, social psychology,
sociology, ecology, economics, mathematics, etc.
6. Multivariable: It is assumed that there is no simple cause-effect phenomenon. An
event may be the result of so many factors which themselves are interrelated and
interdependent. Some factors are controllable, some uncontrollable. Intelligent
planning and control are necessary to face these variable factors.
7. Adaptive: The survival and growth of an organization in a dynamic environment
demands an adaptive system which can continuously adjust to changing
conditions. An organization is an open system adapting itself through the process
of feedback.
8. Probabilistic: Management principles point out only probability and never the
certainty of performance and the consequent results. We have to face so many
variables simultaneously. Our forecasts are mere tendencies. Therefore, intelligent
forecasting and planning can reduce the degree of uncertainty to a considerable
extent.
Contingency Theory: Systems approach emphasizes that all sub- systems of an

organization along with the super system of environment are interconnected and

interrelated. Contingency approach analysis and understands these inter relationship

sothat managerial actions can be adjusted to demands of specific situations or

circumstances.

Thus the contingency approach enables us to evolve practical answers to problems

demanding solutions. Organization design and managerial actions most appropriate to

specific situations will have to be adopted to achieve the best possible result under the

given situation.

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There is no one best way (as advocated by Taylor) to organize and manage. Thus,

Contingency Approach to management emphasizes the fact that management is a

highly practice-oriented discipline. It is the basic function of managers to analyse and

understand the environments in which they function before adopting their techniques,

processes and practices. The application of management principles and practices

should therefore be continent upon the existing circumstances.

Contingency approach guides the manager to be adaptive to environment. It tells the

manager to be pragmatic and open minded. The contingency approach is an

improvement over the systems approach. It not only examines the relationships

between sub- systems of the organization, but also the relationship between the

organization and its environment.

However, the contingency approach suffers from two limitations:-

1. It does not recognize the influence of management concepts and techniques on

environment.
2. Literature on contingency management is yet not adequate.

TOPIC-3

What are managerial skills?

Simply, managerial skills are the knowledge and ability of the individuals in a managerial
position to fulfil some specific management activities or tasks. This knowledge and
ability can be learned and practiced. However, they also can be acquired through practical
implementation of required activities and tasks. Therefore, you can develop each skill
through learning and practical experience as a manager.

When we talk about managerial skills, we talk about the skills of a manager to maintain
high efficiency in the way how his or her employees complete their everyday working tasks.
Because of that, managers will need skills that will help them to manage
people and technology to ensure an effective and efficient realisation of their working
duties.

Types of managerial skills

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Robert Katz identifies three types of skills that are essential for a successful
management process:

 Technical skills

 Conceptual skills

 Human or interpersonal management skills

Technical skills

As the name of these skills tells us, they give the manager knowledge and ability to use
different techniques to achieve what they want to achieve. Technical skills are not related
only for machines, production tools or other equipment, but also they are skills that will be
required to increase sales, design different types of products and services, market the
products and services, etc.

Technical skills are most important for first-level managers. Whet it comes to the top
managers, these skills are not something with high significance level. As we go through a
hierarchy from the bottom to higher levels, the technical skills lose their importance.

Conceptual skills

Conceptual skills present knowledge or ability of a manager for more abstract

thinking. That means he can easily see the whole through analysis and diagnosis of
different states. In such a way they can predict the future of the business or department as
a whole.

Conceptual skills are vital for top managers, less critical for mid-level managers and not
required for first-level managers. As we go from the bottom of the managerial hierarchy to
the top, the importance of these skills will rise.

Human or interpersonal managerial skills

Human or interpersonal management skills present a manager’s knowledge and ability to

work with people. One of the most critical management tasks is to work with people.
Without people, there will not be a need for the existence of management and managers.

These skills enable managers to become leaders and motivate employees for better
accomplishments. Additionally, they help them to make more effective use of human
potential in the company. Simply, they are essential skills for all hierarchical levels in
the company.

TOPIC-4

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Functions of Management
Planning, Organizing, Staffing, Directing & Controlling

Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfillment of given
purposes.

It is a dynamic process consisting of various elements and activities. These activities are
different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manger irrespective of his level or status.

Different experts have classified functions of management.

According to George & Jerry, “There are four fundamental functions of management i.e.
planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, &
to control”.

Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O
for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for
Budgeting.

But the most widely accepted are functions of management given by KOONTZ and
O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e. they are highly inseparable. Each
function blends into the other & each affects the performance of others.

1. Planning

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It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals.

According to KOONTZ, “Planning is deciding in advance - what to do, when to do &

how to do. It bridges the gap from where we are & where we want to be”.

A plan is a future course of actions. It is an exercise in problem solving &

decision making.

Planning is determination of courses of action to achieve desired goals. Thus,

planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals.

Planning is necessary to ensure proper utilization of human & non-human resources.

It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals.

According to Henry Fayol, “To organize a business is to provide it with everything

useful or its functioning i.e. raw material, tools, capital and personnel’s”.

To organize a business involves determining & providing human and non-human

resources to the organizational structure. Organizing as a process involves:

o Identification of activities.
o Classification of grouping of activities.
o Assignment of duties.
o Delegation of authority and creation of responsibility.
o Coordinating authority and responsibility relationships.
3. Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement of
technology, increase in size of business, complexity of human behavior etc.

The main purpose of staffing is to put right man/woman on right job i.e.
square pegs in square holes and round pegs in round holes.

According to Koontz & O’Donell, “Managerial function of staffing involves manning

the organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the structure”. Staffing
involves:

o Manpower Planning (estimating man power in terms of searching, choose the

person and giving the right place).
o Recruitment, Selection & Placement.
o Training & Development.
o Remuneration.
o Performance Appraisal.

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o Promotions & Transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes.

It is considered life-spark of the enterprise which sets it in motion and action of

people, because planning, organizing and staffing are the mere preparations for
doing the work.

Direction is that inter-personnel aspect of management which deals directly with

influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements:

o Supervision
o Motivation
o Leadership
o Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is

the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal

to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

Leadership- may be defined as a process by which manager guides and influences

the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

5. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals.

The purpose of controlling is to ensure that everything occurs in conformities with

the standards. An efficient system of control helps to predict deviations before they
actually occur.

According to Theo Haimann, “Controlling is the process of checking whether or not

proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”.

According to Koontz & O’Donell “Controlling is the measurement & correction of

performance activities of subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being accomplished”. Therefore
controlling has following steps:

a. Establishment of standard performance.

b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out
deviation if any.
d. Corrective action.

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TOPIC-5
Planning

1. Introduction

A plan is a predetermined course of action. It is a blue print for goal achievement. Simply
stated, it is setting goals and deciding how to achieve them. Planning is deciding in advance
what to do, how to do it, when to do it and who is to do it. It bridges the gap from where
we are to where we want to go Planning has a number of characteristics:

 Planning is goal-oriented: All plans arise from objectives. Objectives provide the basic
guidelines for planning activities. Planning has no meaning unless it contributes in some
positive manner to the achievement of predetermined goals.
 Planning is a primary function: Planning is the foundation of management. It is a parent
exercise in management process. It is a preface to business activities.
 Planning is all-pervasive: Planning is a function of all managers. It is needed and
practiced at all managerial levels. Planning is inherent in everything a manager does.
 Planning is a mental exercise: Planning is a mental process involving imagination,
foresight and sound judgment. Planning compels managers to abandon guesswork and
wishful thinking. It makes them think in a logical and systematic manner.
 Planning is a continuous process: Planning is continuous. It is a never-ending activity. It
is an ongoing process of adjustment to change. There is always need for a new plan to be
drawn on the basis of new demands and changes in the circumstances.
 Planning involves choice: Planning essentially involves choice among various alternative
courses of action. If there is one way of doing something, there is no need for planning. The
need for planning arises only when alternatives are available.
 Planning is forward looking: Planning means looking ahead and preparing for the future.
It means peeping into the future, analyzing it and preparing for it. Managers plan today with
a view to flourish tomorrow. Without planning, business becomes random in nature and
decisions would become meaningless, ad hoc choices.
 Planning is flexible: Planning is based on a forecast of future events. Since future is
uncertain, plans should be reasonably flexible. When market conditions change, planners
have to make necessary changes in the existing plans.
 Planning is an integrated process: Plans are structured in a logical way wherein every
lower-level plan serves as a means to accomplish higher level plans. They are highly
interdependent and mutually supportive.
 Planning includes efficiency and effectiveness dimensions: Plans aim at deploying
resources economically and efficiently. They also try to accomplish what has been actually
targeted. The effectiveness of plans is usually dependent on how much it can contribute to
the predetermined objectives.

2. Importance of Planning

Planning helps an organisation in the following ways:

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 Planning provides direction: Planning provides direction and a sense of purpose for the
organisation. Without plans and goals, organisations merely react to daily occurrences
without considering what will happen in the long-run. Plans avoid this drift situation and
ensure that short-range efforts will support and harmonize with future goals. It helps an
organisation decide what to do and when to do it. It reduces aimless activity and makes
action more meaningful.
 Planning provides a unifying framework: A plan helps people to set priorities and put
effort accordingly. A plan tells everyone what the organisation hopes to achieve and what
the contribution of each department must be, and who is to utilize resources to achieve the
goals. Plans help in coordinating effort at various levels. In the absence of a plan, the
organisation would be pulled in different directions, creating confusion and
misunderstanding at various levels.
 Planning is economical: Effective plans coordinate organisational work and eliminate
unproductive effort. Guess work is banished. Facilities are employed to the best advantage.
Waste motions and idle facilities are removed By focusing attention on what is to be done,
how and when it is to be done, plans help an organisation to economically utilize the
physical and financial resources. This, ultimately, improves efficiency of operations.
 Planning reduces the risks of uncertainty: Planning helps an organisation to cope with
an uncertain future. It helps management to anticipate the future and prepare for the risks
by making necessary provisions to meet the unexpected turn of events. Planning minimizes
the chances of mistakes and unpleasant surprises because objectives, policies and
strategies are formulated after a careful scrutiny of internal as well as external
environment. Planning, thus, seeks to minimize risk while taking advantage of
opportunities.
 Planning facilitates decision making: Decision-making involves searching of various
alternative courses of action, evaluating them and selecting the best one. Planned targets
serve as the criteria for the evaluation of different alternatives so that the best one may be
chosen. If there are no plans for the future, there are few guidelines for making current
decisions. For example, decisions have to be made in present for a product to be introduced
three years in the future. When future plans exist, decisions consistent with the future plans
are made. Further, without plans, people will make decisions according to their own
preference rather than those of the organisation.
 Planning encourages innovation and creativity: Planning involves looking ahead and
preparing for the future. The process of looking ahead, forces an organisation to be alert of
opportunities and threats in the environment. It forces managers to find out new and
improved ways of doing things in order to remain competitive and avoid the threats in
the environment. It compels the managers to be creative and innovative all the time.
Planning helps managers to visualize problems early and take suitable remedial steps. It
helps them exploit opportunities and come out as ‘winners’ in a competitive world.
 Planning improves morale: Once members know what is expected of them, they can
contribute better. When goals are properly defined, work assignments can be fixed and
everyone can begin to contribute to the achievement of these goals. This produces
improvements in morale. Further, planning permits employees to participate in the thinking
process. This helps them develop a broad mentality. Also, when the plan is actually
translated into action, they feel that it is their own plan. Positive attributes are, thus,
developed.
 Planning facilities control: Planning and controlling functions are said to be ‘Siamese
twins’ (inseparable twins). There is nothing to control without planning and without proper
control, planning proves to be a wasteful and an unproductive exercise. Plans serve as
yardsticks for measuring performance. They help in channelizing behaviour in the right
direction. They help in preventing mistakes, oversights and deviations.

3. Limitations/Criticisms

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The limitations of planning can be examined under the following headings:

 Rigidity: Plans put the activities of an enterprise in a rigid framework. Everything is spelt
out in detail and deviations are not permitted. New opportunities are often ignored or
rejected because of the commitment to existing plans. Events may change, but plans may
remain fixed. Managers, too, would be reluctant to reorient their plans suitably, because it
involves serious mental work to put everything in black and white change the same all over
again.
 Costly and time consuming: Planning is costly. It is expensive in terms of time spent to
formulate the plans, the manpower required to do the planning and resources needed to
execute the plan. The collection of information, evaluation of alternatives, selection of a
suitable course of action, etc., may consume lot of executive time and organisational
resources.
 Employee resistance: For any plan to succeed, you need operating people to understand
it, embrace it, and make it happen. One of the frequent complaints made against the
planning process is that it is done by specialists who are not in touch with operations. As a
result, operating people who are not involved in planning tend to resist the planning
process. Planning ‘imposed from above’ often leads to resentment and resistance from
those forced to execute.
 False sense of security: Elaborate planning may create a false sense of security in the
organisation. Managers may begin to feel that everything is well taken care of. They begin
to assume that as long as plans are adhered to, there will not be any problems. As a result,
they fail to take note of environmental changes and the need to review, restructure and
reorient the old plans in an appropriate way.

Why plans fail?

 Managerial deficiencies: Planning is an intellectually demanding function. Since managers

are assessed on the basis of results, they begin to discount long-range plans, and adopt
short-range plans which would put them in a comfortable position. This may harm
organisational interests in the long-run. Planning involves lot of paper work and hard mental
labour. Most managers may not like to undergo such a painful process which, ultimately
may not produce results.
 Planning prevents innovation: Planning demands commitment to written policies,
procedures and rules etc. It restricts a manager unnecessarily to defined areas. The
executive is prevented from experimenting with novel ideas, venturing into risky but
profitable areas and exploring the untested yet lucrative grounds.
 External Limitations: It is quite often remarked that ‘planning is a ritual in a fast changing
environment’. This statement subscribes to the fact that planning is an empty academic
exercise in the face of a highly competitive and turbulent environment.

1.
1. Difficult to predict: It is difficult for planners to forecast economic
conditions, government policies, competitive manoeuvers or human behaviour
with any degree of accuracy. Planning, basically depends on a whole set of
assumed conditions. Only when these assumptions are substantially correct,
planning produces fruitful results.
2. Projected too far into the future: Moreover, the reliability of planning
efforts is open to doubt since they are projected farther into the future, where
the manager has no control over environmental forces.
3. Environmental turbulence: Future is a moving target. It may not be
possible to anticipate future changes accurately and provide for them in

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 CLASS NOTES

plans. Uncertainty and unpredictability, the hallmarks of business

environment–reduce the usefulness of planning and forecasting. Competition
turns the best laid human plans into waste paper. Economic, political and
technological revolutions force corporate planners to revise the plans day in
and day out. Sometimes, there is a revision in plans even before their
implementation. In the face of a highly volatile and turbulent environment,
plans become obsolete documents and fail to guide the destinies of the
organisation. And, it is extremely difficult for the organisations to buffer
themselves against environmental instability, no matter how carefully and
effectively the planning exercises are done.
4. Emergency situations: The utility of planning is further discounted, in the
face of emergencies like strikes, lockouts, industrial disasters like the one that
took place in Chemical Plant in Bhopal, Madhya Pradesh (India). In such
instances, plans are completely upset, decisions made hand-to-mouth.

4. Process of Planning

The process of planning consists of the following steps:

 Establishing objectives: The first step in the planning process is to identify the goals of
the organisation. The internal as well as external conditions affecting the organisation must
be thoroughly examined before setting objectives. The objectives so derived must clearly
indicate what is to be achieved, where action should take place, who is to perform it, how it
is to be undertaken and when is it to be accomplished. In other words, managers must
provide clear guidelines for organisational efforts, so that activities can be kept on the right
track.
 Developing premises: After setting objectives, it is necessary to outline planning
premises. Premises are assumptions about the environment in which plans are made and
implemented. Thus, assumptions about the likely impact of important environmental factors
such as market demand for goods, cost of raw materials, technology to be used, population
growth, government policy, etc. on the future plans are made. Plans should be formulated
by the management, keeping the constraints imposed by internal as well as external
conditions in mind.
 Evaluating alternatives and selection: After establishing the objectives and planning
premises, the alternative courses of action have to be considered. The pros and cons as well
as the consequences of each alternative course of action must be examined thoroughly
before a choice is made.
 Formulating derivative plans: After selecting the best course of action, the management
has to formulate the secondary plans to support the basic plan. The plans derived for
various departments, units, activities, etc., in a detailed manner are known as ‘derivative
plans’. For example, the basic production plan requires a number of things such as
availability of plant and machinery, training of employees, provision of adequate finance,
etc. To ensure the success of a basic plan, the derivative plans must indicate the time
schedule and sequence of performing various tasks.
 Securing cooperation and participation: The successful implementation of a plan
depends, to a large extent, on the whole-hearted cooperation of the employees. In view of
this, management should involve operations people in the planning activities.
 Providing for follow-up: Plans have to be reviewed continually to ensure their relevance
and effectiveness. In the course of implementing plans, certain facts may come to light that
were not even thought of earlier. In the light of these changed conditions, plans have to be
revised. Without such a regular follow-up, plans may become out-of-date and useless.
Moreover, such a step ensures the implementation plans along right lines.

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5. Principles

To be useful, planning should try to incorporate some of the time-tested and interrelated
principles, beautifully summed up by Koontz thus:

 Principle of contribution to objectives: Every plan should help in the achievement of

organisational objectives.
 Principle of primacy of planning: Planning precedes all other managerial functions. It is
the first and the foremost function to be followed in the process of management.
 Principle of pervasiveness of planning: Planning is an all-pervasive function. It is
important to all managers regardless of their level in the organisation.
 Principle of flexibility: By flexibility of a plan is meant its ability to switch gears, change
direction to adapt to changing situations without unnecessary cost (ability to vary product
mix, shift marketing effort geographically, raise additional funds on favourable terms,
reshuffle and relocate personnel quickly, change organisation structure etc.).
 Principle of periodicity: Plans should be integrated and interconnected in such a way as
to achieve the stated objectives economically and efficiently. A manager should review
events and expectations regularly; refine and redraw the plan and keep it on track.
 Principle of planning premises: Every plan is based on carefully considered assumptions,
known as planning premises.

“The more the individuals charged with planning, understand and agree to utilise consistent
planning premises, the more coordinated enterprise planning will be”.

 Principle of limiting factor: While choosing an appropriate course of action among

different alternatives, the limiting or critical factor (such as money, manpower, machinery,
materials, manahttps://taxmann.social/LwSSggement) should be recognised and given due
weightage. When ignored, the critical factor would seriously impact the process of planning
and make it impossible to achieve goals.

How To Make a Plan Effective

How can managers effectively plan when the external environment is continually changing?
The following steps have to be taken—according to experts– in order to make planning
effective:

 Climate: Planning must not be left to chance. Additionally, conducive climate must be
provided so that activities proceed smoothly and systematically. Top managers should
remove obstacles to planning, by establishing clear cut goals, realistic planning premises
and offering required information and appropriate staff assistance at various levels.
 Top management support: Planning must start at the top. It must receive attention of
the top management continually. They must be willing to extend a helping hand, whenever
required.
 Participation: Plans are implemented by people. So, it is necessary to secure acceptance
and commitment from them. One way to increase commitment is to solicit subordinates’
participation in the planning process. Planning comes alive when employees are involved in
setting goals and determining the means to reach them.

Ten Commandments of a good plan

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 CLASS NOTES

1. Should have a clear objective

2. Should be simple and easy to understand

3. Should provide for proper analysis and clarification of actions

4. Should be flexible enough to move in sync with changing trends

5. Should have a balanced focus

6. Should be practicable and capable of delivering results

7. Should allow people—especially those who look after its implementation– to participate a
ctively and enthusiastically

8. Should provide for optimum use of resources

9. Should be sold to everyone and communicated well before it’s being implemented

10. Should allow integration of effort at every level smoothly : (L.F. Urwick, Koontz, Stoner
)

 Communication: Goals, premises and policies must be properly communicated to people.

People must know what they are supposed to do, when, how and where. The time limits
must also be communicated in advance.
 Integration: Different plans must be properly balanced and integrated. They must support
each other and should not work at cross purposes. Every attempt should be made to ensure
that the pay-offs of planning are more than the costs involved.
 Monitoring: Plans must be subjected to regular appraisal and review, so as to take note of
internal as well as external changes. Better to keep the plan flexible to the extent possible.

It may sound curious but in an uncertain environment, managers should be armed with
plans that are specific but flexible. To be useful, plans need to be formulated in black and
white but they should not be set in stone. Using the road map provided by a plan, managers
should clear the hurdles on the way. They should be willing to change direction if
environmental conditions warrant such a step. Even in the face of continual changes in
environmental conditions, managers should adhere to a set of actions to see where things
are going off the track and their likely impact on organisational performance. When things
are manageable, as planned, then targets are achieved. Where things are thrown off the
track, managers need to pick the loose threads firmly and weave them into a fine garment—
as desired by customers and market forces.

Different Types of Planning

Strategic Planning

Strategic planning involves decisions about the organisation’s long term goals such as
survival, growth etc. It involves setting long term objectives (by top management) and
deciding about the judicious deployment of resources to achieve those objectives. Strategic
planning, thus, is long-term in nature. It tends to be a top management responsibility. It

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 CLASS NOTES

requires looking outside the organisation for threats and opportunities. It also requires
looking inside the organisation for finding out weaknesses and strengths. It affects many
parts of the organisation, as its decisions have enduring effects that are difficult to reverse.
It tries to equip the organisation with capabilities needed to confront future uncertainties,
by taking a holistic view of the entire organisation. Its focus is clearly on the ‘jungle, not the
trees’. The main objective is to position the firm in an advantageous position in relation to
the environment, keeping the firm’s own capabilities in mind.

Example: In business, it means how much money is going to be dedicated to a project, and
by when you expect the project complete. In personal life, suppose you plan a wedding, it
means deciding on the budget and the date.

Tactical Planning

Tactical planning translates broad strategic goals and plans into specific goals and plans that
are relevant to a definite portion of the organisation, such as a functional area like
marketing or human resources. Tactical plans focus on a major actions a unit must take to
fulfil a part of the strategic planning. They are often focused on 1-2 years in the future. This
is the implementation of the strategic plan stage combining your available resources, look at
obstacles, and review alternatives.

Example: In business, it means an analysis of resource combination, planning for

obstacles, and general timetable. In personal life, for the wedding, it means, finding the
place, developing a guest list, deciding on a menu and music.

Operational Planning

Operational planning identifies the specific procedures and processes required at lower
levels of the organisation. Frontline managers usually focus on routine tasks such as
production runs, delivery schedules, and human resource needs etc. They typically focus on
the short term, usually 12 months or less. These plans are the least complex of the three
and rarely have a direct effect or other plans outside of the department or unit for which the
plan was developed.

Example: In business, it means engaging the team, develop and answer the who, what,
when, where, how management questions. In personal life, for the wedding, it means,
choosing the band, finding the caterer, decide on flowers, etc.

To be fully effective, the organisation’s strategic, tactical and operational plans must be
aligned – that is, they must be consistent, mutually supportive and focused on meeting the
common purpose and direction.

Strategic, Tactical and Operational Plans: Key Differences

Point of Difference Strategic plans Tactical plans Operational plans

Next 12 months or le
Time horizon Typically 3-5 years 1-2 years
ss

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 CLASS NOTES

Most narrow, centere

A strategic busines d on departments or
Scope Broadest
s Unit smaller units of an or
ganization

Complex, but mor The least complex be

Highly complex, cove e specific with a mo cause they usually fo
Complexity
rs a large territory re limited domain o cus on small, homoge
f Application neous units

Have the potential to Affect specific busin

Impact is usually rest
have a dramatic impa ess units but the eff
ricted to a specific de
Impact ct –including survival ect on the entire or
partment or organisat
and success of the or ganization is measu
ion unit
ganization red

Middle managemen
Management level Top management Frontline
t

High interdependence Low interdepende-nc

Moderate interdepe
, must take into acco e; the plan may be li
ndence; must take i
unt the resources and mited to higher level,
nto account the res
Interdependence capabilities of the en tactical and strategic
ources and capabilit
tire organization and plans but are less in
ies of several units
its external Environm dependent on these p
within a business
ents lans

8. Components of Planning

Plans may be classified into two categories, i.e. standing plans and single use plans.

 Standing plans are put to use, again and again, over a long period of time. Once
established, they continue to apply until they are modified or abandoned. Standing plans
help managers in dealing with routine matters in a pre-determined and consistent manner.

Examples: Objectives, Strategies, Policies, Procedures, Methods and Rules.

 Single use plans are non-recurring in nature and deal with problems that probably will not
be repeated in the same form in future.

Examples: Programmes, Schedules, Projects, Budgets.

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TOPIC-6

Management by Objectives (MBO)

What Is Management by Objectives (MBO)?

Management by objectives (MBO) is a strategic management model that aims to improve

the performance of an organization by clearly defining objectives that are agreed to by
both management and employees. According to the theory, having a say in goal setting
and action plans encourages participation and commitment among employees, as well as
aligning objectives across the organization.

KEY TAKEAWAYS

 Management by objectives (MBO) is a process in which a manager and an employee

agree on specific performance goals and then develop a plan to reach them.
 It is designed to align objectives throughout an organization and boost employee
participation and commitment.
 There are five steps: Define objectives, share them with employees, encourage
employees to participate, monitor progress, and finally, evaluate performance and
reward achievements.
 Critics of MBO argue that it leads to employees trying to achieve the set goals by
any means necessary, often at the cost of the company.

Understanding Management by Objectives (MBO)

Management by objectives (also known as management by planning) is the establishment

of a management information system (MIS) to compare actual performance and
achievements with the defined objectives. Practitioners claim that the major benefits of
MBO are that it improves employee motivation and commitment and allows for better
communication between management and employees.

However, a cited weakness of MBO is that it unduly emphasizes the setting of goals to
attain objectives, rather than working on a systematic plan to do so. Critics of MBO, such
as W. Edwards Deming, argue that setting particular goals like production targets leads
workers to meet those targets by any means necessary, including shortcuts that result in
poor quality.1

In his book that coined the term, Peter Drucker set forth several principles for
MBO.Objectives are laid out with the help of employees and are meant to be challenging
but achievable. Employees receive daily feedback, and the focus is on rewards rather than
punishment. Personal growth and development are emphasized, rather than negativity for
failing to reach objectives.

MBO is not a cure-all but a tool to be utilized. It gives organizations a process, with many
practitioners claiming that the success of MBO is dependent on the support from top
management, clearly outlined objectives, and trained managers who can implement it.

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Management by Objectives (MBO) in 5 Steps

MBO outlines five steps that organizations should use to put the management technique
into practice.

1. Either determine or revise organizational objectives for the entire company. This
broad overview should be derived from the firm’s mission and vision.
2. Translate the organizational objectives to employees. In 1981, George T.
Doran used the acronym SMART (specific, measurable, acceptable, realistic, time-
bound) to express the concept.
3. Stimulate the participation of employees in setting individual objectives. After the
organization’s objectives are shared with employees from the top to the bottom,
employees should be encouraged to help set their own objectives to achieve these
larger organizational objectives. This gives employees greater motivation since they
have greater empowerment.
4. Monitor the progress of employees. In step two, a key component of the objectives
was that they are measurable for employees and managers to determine how well
they are met.
5. Evaluate and reward employee progress. This step includes honest feedback on
what was achieved and not achieved for each employee.

The term “management by objectives (MBO)” was first used by Peter F. Drucker in his
1954 book titled The Practice of Management.

Advantages and Disadvantages of Management by Objectives (MBO)

MBO comes with many advantages and disadvantages.

Advantages

 Employees take pride in their work and are assigned goals they know they can
achieve that match their strengths, skills, and educational experiences.
 Assigning tailored goals brings a sense of importance to employees, boosting their
output and loyalty to the company.
 Communication between management and employees is increased.
 Management can create goals that lead to the success of the company.

Disadvantages

 As MBO is focused on goals and targets, it often ignores other parts of a company,
such as the culture of conduct, a healthy work ethos, and areas for involvement and
contribution.
 Strain is increased on employees to meet the goals in a specified time frame.
 Employees are encouraged to meet targets by any means necessary, meaning that
shortcuts could be taken and the quality of work compromised.
 If management solely relies on MBO for all management responsibilities, it can be
problematic for areas that don’t fit under MBO.

What is the goal of management by objectives (MBO)?

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CLASS NOTES

Management by objectives (MBO) uses a set of quantifiable or objective standards against

which to measure the performance of a company and its employees. By comparing actual
productivity to a given set of standards, managers can identify problem areas and improve
efficiency. Both management and workers know and agree to these standards and their
objectives.

What is an example of MBO?

A company can set various goals with its employees. In the case of a call center, an MBO
could be to increase customer satisfaction, say, by 10%, while reducing call times by one
minute. The onus is now on finding ways to achieve this goal. Once that’s decided on, it’s
important to get employees on board and then monitor their progress, provide feedback,
and reward those who do a good job.

What are some drawbacks of using MBO?

As MBO is entirely focused on goals and targets, it often ignores other parts of a company,
such as the corporate culture, worker conduct, a healthy work ethos, environmental issues,
and areas for involvement and contribution to the community and social good.

What is the difference between MBO and management by exception (MBE)?

In management by exception (MBE), management only addresses instances where

objectives or standards are transgressed. Thus, workers are left alone until and unless
proficiency is not met.

The Bottom Line

As a theory, MBO makes a lot of sense: Help employees to get involved in setting company
goals and they are more likely to share management’s objectives, work harder, and
deliver.

However, there’s also a good reason why MBO is widely criticized. Like most things that
look good on paper, it doesn’t always work in practice. The key is to be aware of its
drawbacks, customize the plan according to your organization, and make sure that
everyone is fully on board and that the objectives are clear and reasonable before
commencing.

TOPIC-6
Management by Objectives (MBO)

What Is Management by Objectives (MBO)?

Management by objectives (MBO) is a strategic management model that aims to improve

the performance of an organization by clearly defining objectives that are agreed to by
both management and employees. According to the theory, having a say in goal setting
and action plans encourages participation and commitment among employees, as well as
aligning objectives across the organization.

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CLASS NOTES

KEY TAKEAWAYS

 Management by objectives (MBO) is a process in which a manager and an employee

agree on specific performance goals and then develop a plan to reach them.
 It is designed to align objectives throughout an organization and boost employee
participation and commitment.
 There are five steps: Define objectives, share them with employees, encourage
employees to participate, monitor progress, and finally, evaluate performance and
reward achievements.
 Critics of MBO argue that it leads to employees trying to achieve the set goals by
any means necessary, often at the cost of the company.

Understanding Management by Objectives (MBO)

Management by objectives (also known as management by planning) is the establishment

of a management information system (MIS) to compare actual performance and
achievements with the defined objectives. Practitioners claim that the major benefits of
MBO are that it improves employee motivation and commitment and allows for better
communication between management and employees.

However, a cited weakness of MBO is that it unduly emphasizes the setting of goals to
attain objectives, rather than working on a systematic plan to do so. Critics of MBO, such
as W. Edwards Deming, argue that setting particular goals like production targets leads
workers to meet those targets by any means necessary, including shortcuts that result in
poor quality.1

In his book that coined the term, Peter Drucker set forth several principles for
MBO.Objectives are laid out with the help of employees and are meant to be challenging
but achievable. Employees receive daily feedback, and the focus is on rewards rather than
punishment. Personal growth and development are emphasized, rather than negativity for
failing to reach objectives.

MBO is not a cure-all but a tool to be utilized. It gives organizations a process, with many
practitioners claiming that the success of MBO is dependent on the support from top
management, clearly outlined objectives, and trained managers who can implement it.

Management by Objectives (MBO) in 5 Steps

MBO outlines five steps that organizations should use to put the management technique
into practice.

6. Either determine or revise organizational objectives for the entire company. This
broad overview should be derived from the firm’s mission and vision.
7. Translate the organizational objectives to employees. In 1981, George T.
Doran used the acronym SMART (specific, measurable, acceptable, realistic, time-
bound) to express the concept.

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CLASS NOTES

8. Stimulate the participation of employees in setting individual objectives. After the

organization’s objectives are shared with employees from the top to the bottom,
employees should be encouraged to help set their own objectives to achieve these
larger organizational objectives. This gives employees greater motivation since they
have greater empowerment.
9. Monitor the progress of employees. In step two, a key component of the objectives
was that they are measurable for employees and managers to determine how well
they are met.
10. Evaluate and reward employee progress. This step includes honest feedback on
what was achieved and not achieved for each employee.

The term “management by objectives (MBO)” was first used by Peter F. Drucker in his
1954 book titled The Practice of Management.

Advantages and Disadvantages of Management by Objectives (MBO)

MBO comes with many advantages and disadvantages.

Advantages

 Employees take pride in their work and are assigned goals they know they can
achieve that match their strengths, skills, and educational experiences.
 Assigning tailored goals brings a sense of importance to employees, boosting their
output and loyalty to the company.
 Communication between management and employees is increased.
 Management can create goals that lead to the success of the company.

Disadvantages

 As MBO is focused on goals and targets, it often ignores other parts of a company,
such as the culture of conduct, a healthy work ethos, and areas for involvement and
contribution.
 Strain is increased on employees to meet the goals in a specified time frame.
 Employees are encouraged to meet targets by any means necessary, meaning that
shortcuts could be taken and the quality of work compromised.
 If management solely relies on MBO for all management responsibilities, it can be
problematic for areas that don’t fit under MBO.

What is the goal of management by objectives (MBO)?

Management by objectives (MBO) uses a set of quantifiable or objective standards against

which to measure the performance of a company and its employees. By comparing actual
productivity to a given set of standards, managers can identify problem areas and improve
efficiency. Both management and workers know and agree to these standards and their
objectives.

What is an example of MBO?

A company can set various goals with its employees. In the case of a call center, an MBO
could be to increase customer satisfaction, say, by 10%, while reducing call times by one
minute. The onus is now on finding ways to achieve this goal. Once that’s decided on, it’s

LDC GROUP OF INSTITUTIONS OFFERS: B TECH, MBA, MCA, BBA, BCA, POLYTECHNIC, ITI
CLASS NOTES

important to get employees on board and then monitor their progress, provide feedback,
and reward those who do a good job.

What are some drawbacks of using MBO?

As MBO is entirely focused on goals and targets, it often ignores other parts of a company,
such as the corporate culture, worker conduct, a healthy work ethos, environmental issues,
and areas for involvement and contribution to the community and social good.

What is the difference between MBO and management by exception (MBE)?

In management by exception (MBE), management only addresses instances where

objectives or standards are transgressed. Thus, workers are left alone until and unless
proficiency is not met.

The Bottom Line

As a theory, MBO makes a lot of sense: Help employees to get involved in setting company
goals and they are more likely to share management’s objectives, work harder, and
deliver.

However, there’s also a good reason why MBO is widely criticized. Like most things that
look good on paper, it doesn’t always work in practice. The key is to be aware of its
drawbacks, customize the plan according to your organization, and make sure that
everyone is fully on board and that the objectives are clear and reasonable before
commencing.

LDC GROUP OF INSTITUTIONS OFFERS: B TECH, MBA, MCA, BBA, BCA, POLYTECHNIC, ITI