principles of management, Lecture notes for Management Fundamentals

principles of management, Lecture notes for Management Fundamentals

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Definition of Management

“Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims”.

“Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.” F.W.Taylor

a. Management as discipline

b. Management as a group of people

c. Management as aprocess

Management Functions a. Planning b. Organising c. Leading d. Controlling

NATURE OF MANAGEMENT 1. Management is an activity 2. Management is a purposeful activity. 3. Management is concerned with the efforts of a group 4. Management applies economic principles. 5. Management involves decision making. 6. Management is getting things done through others. 7. Management is an integrating process. 8. Management co-ordinates all activities and resources.

IMPORTANCE OF MANAGEMENT

1] Management is goal oriented:- Management is concern with achievement of specific goals. It is always directed towards achievement of objectives. The success of management is measured by the extent to which objectives are achieved.

2] Management is associated with group efforts:- The business comes into existence with certain objectives which are to be achieved by a group and not by one person alone. Management gets things done by, with and through the efforts of group members. It co-ordinates the activities and actions of its members towards a common goal.

3] Management is intangible:- It is an unseen force, its presence can be evidence by the result of its efforts up to date order but they generally remain unnoticed, Where as mismanagement is quickly noticed.

4] Management is an activity and not a person or group of person:- Management is not people or not a certain class but it is the activity, it is the process of planning, organizing, directing and controlling to achieve the objectives of the organization.

5] Management is situational:- Management does not advice best way of doing things. Effective management is always situational. A manager has to apply principles, approaches and techniques of management after taking into consideration the existing situations.

6] Management is universal:- Most of the principles and techniques of management are universal in nature. They can be applied to government organization, military, educational institutes, religious institutes etc. They provide working guidelines which can be adopted according to situations.

7] Management is concern with people:- Since management involves getting things done through others only human being performed this activity with the help of planning and control. The element man cannot be separated from the management.

8] Management is the combination of art, science and profession:- Management makes use of science as well as art. It is science because it collects knowledge with the methods and data, analyzes and measures it and decision is taken with the help of experiment. It is a systematic body of knowledge. Art means application of knowledge for solving various problems. In modern times there is separation of ownership and management, so professional experts are appointed.

Functions Of management 1. Planning :

It includes forecasting, formation of objectives, policies, programmes, producer and budget. It is a function of determining the methods or path of obtaining there objectives. It determines in advance what should be done, why should be done, when, where, how should be done. This is done not only for organization as a whole but also for every division, section and department. Planning is thinking before doing.

2. Organizing: It includes departmentation, delegation of authority, fixing of responsibility and establishment of relationship. It is a function of providing everything useful to the business organization. There are certain resources which are mobilize i.e. man, machine, material, money, but still there are certain limitations on these resources. A manager has to design and develop a structure of various relations. This structure, results from identification and grouping work, delegation of authority and responsibility and establishing relationship.

3. Directing It includes decision making, supervising, guidance etc. It reflects providing dynamic leadership. When the manager performs these functions, he issues orders and instructions to supervisors. It also implies the creation of a favorable work, environment motivation, managing managers, managing workers and managing work environment.

4. Controlling: It is a process of checking actual performance against standard performance. If there is any difference or deviation then these differences should be detected and necessary steps should be taken. It involves three elements: 1. Establishing standard of performance. 2. Measuring actual performance with establishment. 3. Finding out reasons for deviation.

Management is an art because: .

1] It is creative 2] It involves use of skill. 3] It involves use of technical know how. 4] It is directed towards getting results. 5] It is personalized.

Management is a profession because:- 1. Systematic body of knowledge 2. Formal Education 3. Social Responsibility 4. Independent Office 5. Specialization: 6. Fees:

Management as a Science:- 1. Systematic collection and processing of information 2. Output may change though the inputs are same 3. Principles of Management are universally accepted:

LEVELS OF MANAGEMENT There are three levels of management: Top level management Middle level management Lower level management Administrative level consists of top or upper level of management. Operative level consists of middle level and lower management. Lower level management includes supervisor and foreman. The level of management is depends upon the size of the organization.

Evolution of management

A. Taylor's Scientific Management: 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. 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.a. Observation A.b. Measurement A.c. Experimentation and A.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:

• Science, not rule of thumb • Harmony, not discord • Co-operation, not individualism • Maximum output, in place of restricted output • The development of each man to his greatest efficiency and

prosperity. https://www.wisdomjobs.com/e-university/principles-of-management-and-organisational- behaviour-tutorial-366/evolution-of-management-thought-12679.html

Henry Foyls

1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.

2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. .

3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from only one manager.

5. UNITY OF DIRECTION: The entire organization should be moving towards a common

objective in a common direction.

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.

8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.

11. EQUITY: All employees should be treated as equally as possible.

12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.

14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

The main four approaches are:

1. Classical Approach 2. Quantitative Approach 3. Behavioral Approach 4. Contemporary Approaches:

4.a.Systems Approach 4.b. Contingency Approach

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

1.a.Top management lays down the objectives and broad policies of the enterprise.

1.b.It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

1.c. It prepares strategic plans & policies for the enterprise. 1.d.It appoints the executive for middle level i.e. departmental managers.

1.e. It controls & coordinates the activities of all the departments. 1.f. It is also responsible for maintaining a contact with the outside world. 1.g.It provides guidance and direction. 1.h.The top management is also responsible towards the shareholders for the

performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as -

1.i. They execute the plans of the organization in accordance with the policies and directives of the top management.

1.j. They make plans for the sub-units of the organization. 1.k.They participate in employment & training of lower level management. 1.l. They interpret and explain policies from top level management to lower level. 1.m. They are responsible for coordinating the activities within the division or

department.

1.n.It also sends important reports and other important data to top level management. 1.o.They evaluate performance of junior managers. 1.p.They are also responsible for inspiring lower level managers towards better

performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -

1.q.Assigning of jobs and tasks to various workers. 1.r. They guide and instruct workers for day to day activities. 1.s. They are responsible for the quality as well as quantity of production.

1.t. They are also entrusted with the responsibility of maintaining good relation in the organization.

1.u.They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.

1.v.They help to solve the grievances of the workers. 1.w. They supervise & guide the sub-ordinates. 1.x.They are responsible for providing training to the workers.

1.y.They arrange necessary materials, machines, tools etc for getting the things done. 1.z.They prepare periodical reports about the performance of the workers. 1.aa. They ensure discipline in the enterprise. 1.bb. They motivate workers.

1.cc. They are the image builders of the enterprise because they are in direct contact with the workers.

Managerial Roles

To meet the many demands of performing their functions, managers assume multiple roles. A role is an organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of all managers.

The ten roles are divided into three groups: • Interpersonal • Informational

• Decisional The performance of managerial roles and the requirements of these roles can be played at different times by the same manager and to different degrees depending on the level and function of management. The ten roles are described individually, but they form an integrated whole.

1. Interpersonal Roles

The interpersonal roles link all managerial work together. The three interpersonal roles are primarily concerned with interpersonal relationships.

Figurehead Role: The manager represents the organization in all matters of formality. The top level manager represents the company legally and socially to those outside of the organization. The supervisor represents the work group to higher management and higher management to the work group.

Liaison Role: The manger interacts with peers and people outside the organization. The top level manager uses the liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of work.

The leader Role: It defines the relationships between the manger and employees.

2. Informational Roles

The informational roles ensure that information is provided. The three informational roles are primarily concerned with the information aspects of managerial work.

Monitor Role: The manager receives and collects information about the operation of an enterprise.

Disseminator Role: The manager transmits special information into the organization. The top level manager receives and transmits more information from people outside the organization than the supervisor.

Spokesperson Role: The manager disseminates the organization’s information into its environment. Thus, the top level manager is seen as an industry expert, while the supervisor is seen as a unit or departmental expert.

3. Decisional Roles

The decisional roles make significant use of the information and there are four decisional roles.

Entrepreneur Role: The manager initiates change, new projects; identify new ideas, delegate idea responsibility to others.

Disturbance Handler Role: The manager deals with threats to the organization. The manager takes corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crisis.

Resource Allocator Role: The manager decides who gets resources; schedule, budget set priorities and chooses where the organization will apply its efforts.

Negotiator Role: The manager negotiates on behalf of the organization. The top level manager makes the decisions about the organization as a whole, while the supervisor makes decisions about his or her particular work unit.

Managerial Skills Managers at every level in the management hierarchy must exercise three basic types of skills: technical, human, and conceptual. All managers must acquire these skills in varying proportions, although the importance of each category of skill changes at different management levels.

Technical skills: • Technical skills refer to the ability and knowledge in using the equipment, techniques and

procedure involved in performing specific tasks. • These skills require specialized knowledge and proficiency in the mechanics of a particular.

• Technical skills lose relative importance at higher levels of the management hierarchy, but most top executives started out as technical experts.

Human skills: • Human skills refer to the ability of a manager to work effectively with other people both as

individual and as members of a group. • Human skills are concerned with understanding of people. • These are required to win cooperation of others and to build effective work teams.

Conceptual skills: • Conceptual skills involve the ability to see the whole organization and the interrelationships

between its parts. • These skills refer to the ability to visualize the entire picture or to consider a situation in its

totality.

• These skills help the managers to analyze the environment and to identify the opportunities. • Conceptual skills are especially important for top-level managers, who must develop long-

range plans for the future direction of their organization.

Challenges Of Management

Dynamic engagement Six themes in Management theory

New Organizational Environment • The dynamic engagement approach recognizes that an organization environment is not

some set of fixed, impersonal forces. • Rather it is a complex, dynamic, web at people interacting with each other. • As a result Managers not only pay attention to their own concerns, but also understands

what is important for other managers within the organization and in other organization. • They interact with theses other managers to create jointly the condition under which these

organizations prosper and struggle. • The theory of competitive strategy developed by Michael porter focuses on how managers

can influence in conditions in an industry when they interacts as Rivals buyers, suppliers, and so on.

• Another variation in on the dynamic engagement approach, most notably argued by Edward and jean garner stead in management for a small planet.

• Place ecological concern at the center of management theory.

Ethics and Social Responsibility • Managers using a dynamic engagement approach pay close attention to the values that

guide people in their organizations. • The corporate Culture that embodies those values, and values held by the people outside

the organization. • This idea came in to prominence with the publication in 1982 of in search of excellence by

Thomas peters and waterman. • From other study of ‘Excellent’ companies. Peters and waterman concluded that “the top

performers create a board, uplifting, shared culture, a coherent frame work • Within which charged up people search for adoptions. Robert Solomon has taken this idea

little further, arguing that managers must Exercise moral courage by placing the values of excellence at the top of the Agenda.

• In dynamic engagement, it is not enough for managers to do things in the way they always have, or to be content with matching their Competitors.

• Continuously striving towards excellence has become an organizational theme of the 1990s.

• Because values, including excellence, are ethical concepts. • The dynamic engagement approach moves ethics from the Fringe of management theory

to the heart of it.

Globalization and Management • The Dynamic engagement approach recognizes that the world is at the manager’s doorstep

in 1990s. • With world financial markets running 24 hours a day, and even the remotest Concerns of

the planet only telephone call away, managers facing the twenty first century think of themselves as global citizens.

• A simple comparison illustrates how things have changed. • If we were to look through the 1940s you would find very little about international factors

with good reason in the time and place.

Inventing and Reinventing Organizations

• Managers who practice dynamically engagement continually search for ways to unleashthe creative potential of their employees and themselves.

• A growing chorus of theorist is urging managers to rethink the standard organizationstructures to which they have become accustomed.

• Peter is once again at the forefront. His concept of ‘Liberation Management’ challenges the kind of rigid organization structure that inhibits people creativity.

• Peter’s heroes succeed in spite of those structures. • Michael hammer and James champ have made their concept of

reengineering the corporation into a bestseller. • Hammer and champ urge managers to rethink the very process

by which organization function and to be courage’s about replacing process that get in the way of organizationalefficiency.

Cultures and Multiculturalism • Managers who embrace the dynamic engagement approach

recognize that the various perspective and values that people of different cultural backgrounds bring to their organizations are not only a fact life but a significant source of contributions.

• Joanne martin has pioneered the cultural analysis of organizations. she explains how difference create unprecedented challenges for modern managers.

• Charles Taylor is a prominent proponent for the so called “Communitarian” movement.

• Taylor claims that people can preserve their sense of uniqueness –their authenticity

• Only by valuing what they hold in common in the organization and communities in which they live.

• Multiculturism is a moving target as more and more people become conscious of their particular traditional and ties.

Quality • By the dynamic engagement approach, total quality management (TQM) should Be in

every manager’s vocabulary. • All managers should be thinking about how every organizational process can be conducted

to provide product and service. • That is responsible to tougher and tougher customer and competitive services. • Strong and lasting relationships can be fruitful by product of quality frame Of mind and

action by this view. • Total quality management adds one more Dynamic dimension to management because

quality too is always a moving Target. • Dynamic engagement is an example of the changing face of management theory. • Not everyone we have mentioned in this overview of the dynamic approach called himself

or herself as a management theorist. • Some are philosophers and some are political scientists. • The dynamic approach challenges us to see organization and management as integral part

of modern and global society. • This was not always a tenet of management theory.

Entrepreneurship

Traditionally entrepreneurship has been defined as the process of designing, launching and running a new business. Entrepreneurs start businesses, offering either products or services, or both. They are innovative and creative and happy to break the norm. An entrepreneur is a person who is typically more comfortable with taking risk. They have given up the ‘Security’ of a job to startup a company to employ staff. They have to be comfortable as a leader and as a manager of people.

The level of risk that an entrepreneur takes is very much dependent on the individual. But where an entrepreneur is comfortable with taking higher levels of risk, a small business can become a much larger organisation. An entrepreneur is the person who brings the product or service into reality. Sometimes being the inventor, whilst other times starting a new business to provide an existing product or service, but in a better way.

Intrapreneurship Effectively, an intrapreneur is nothing but an entrepreneurwithin the boundaries of an organisation. Intrapreneurship is where an individual integrates risk-taking within his corporate management approach. Intrapreneur however is a term found in the Oxford Dictionary, and is defined as ‘A manager within a company who promotes innovative product development and marketing.’

Planning Management process

“Planning is an intellectual process, the conscious determinatory of courses of action, the basing of decisions on purpose, facts and considered estimates.”

Good plan features

• A plan should be aim at achieving goala • Simply and easily understandable • Flexible to conditions change • Concentrate on all vital areas • It provides proper analysis and classification of actions • It uses available recourses• it should be feasible and reasonable

Objectives of Planning

• Provide clarity • Persistence to certainty • Better allocation of recourses • Help to encourage creativity and innovation

Nature of planning

• Basic function of managerial functions • Objective oriented • Planning is an intellectual activity

Types of planning • Level of planning

• Corporate level • Divisional level • Sectional planning

• Focus of planning • Strategic planning • Tactical or coordinative • Operational planning

• Time period of planning • Long range planning • Medium range planning • Short range planning

Steps in panning • Clarity of objectives • Establishment of objectives • Collecting and forecasting information • Developing scope of planning • Determining alternative courses • Evolution of alternatives • Selecting an alternative • Supporting plans • Sequence plans by budgeting

MBO MBO (Management by Objectives) is a management system in which each member of the organisation effectively participates and involves oneself. This system gives full scope to the individual strength and responsibility. MBO harmonises the goal of an individual with the organisation’s goal. It creates self-control and motivates the manager into action before somebody tells him/her to do something.

Prof. Reddin defines MBO as, “The establishment of effective standards for managerial positions and the periodic conversion of those into measurable time bound objectives linked vertically and horizontally and with future planning.”

Features of MBO The following are the features of MBO: • Integrates the goals of an organisation and individuals, leading to an effective

management system. • Emphasises on the effective performance. • Combines the long term and the short term goals. • Constant attention to refine, modify and improve the goals with changing times. • Recognises participation of employees in goal setting process. • A high degree of motivation and satisfaction is available to employees through MBO. • Tries to relate the organisation goals with society goals.Process of MBO

The process of MBO constitutes of the following steps: • defining organisational objectives • goals of each section • fixing key result areas • setting subordinate objectives or targets • matching resources with objectives • periodical review meetings • appraisal of activities • reappraisal of objectives

Benefits of MBO The benefits of MBO are as given below: • Provides a foundation of participative management. • Gives the criteria of evaluation. • Delegation of authority is easily done. • Systematic evaluation of the performance. • Managers are involved in setting objectives at various levels of management. • Motivates employees by job enrichment. • The responsibility of a worker is fixed through MBO. • Provides a foundation for participative management and goal setting.

Limitations of MBO The limitations of MBO are as given below:

• it is a time consuming process • MBO fails to explain the philosophy • emphasises on short term objectives rather than the long term • the status of subordinates is necessary for proper objectives setting which is not possible

in MBO process • MBO’s are rigid in nature • the objectives are set without considering the available resources

Meaning and Definition of Decision Making Decision making is the process of choosing one best alternative from among the number of alternatives available to the management. The success of management depends upon the quality of decision. According to Andrew Smilagyi, “Decision making is a process involving information, choice of alternative actions, implementations, and evaluation that is directed to the achievement of certain stated goals.” According to George R. Terry, “Decision making is the selection based on some criteria from two or more possible alternatives.”

Types of Decisions • Routine and non-routine decisions • Programmed and non programmed • Individual and organisational • Strategic and tactical

Decision Making Process This process depends upon the nature of the problem and type of organisation. Following is the simple process taken up for decision making: • identification of a problem • diagnosing the problem • collect and analyse the relevant information • discovery of alternative course of action • analysing and screening of the objectives • selection of best alternative • conversion of decision into action • implementation • verifying the decision

Principles of Decision Making A quality decision may be taken by the manger if he adopts certain principles which are as given below: Marginal theory: This theory is based on the view that organisation is aimed at maximizing profits. Here the manager adopts the Law of diminishing returns, where the management appoints additional labour and uses additional capital, the production may be increased proportionately at reduced rates. A time comes when there in no increase in the production with increase in labour and capital, so this stopped and the production of the last unit is termed marginal. Principle of limiting factors: Problem is studied, conclusion and inference is drawn on the basis of study. The manager takes decision with the help of the conclusion. Limiting factors like time, cost or resources can also be a deciding factor. Principle of participation: This principle is based on human behaviour and relationship. Subordinates should be consulted and due weight age should be given; this will make them feel honoured. Mathematical theory: Venture analysis, game theory, probability theory and waiting theory are some of the Mathematical theories. Mathematical theory gives scientific approach to the manager while taking a decision. Psychological theory: A manager takes a decision on the basis of his aspiration, technological skill, personality, social status and organisation status. Though the manager is expected to take a decision confined to the scope of his responsibility and authority, there is an impact of psychology over the decision. The reason is that decision- making is a mental process. Principle of alternatives: If there is only one alternative to solve a problem, there is no need of taking a decision. Decision is a selection process where all the alternatives are evaluated and screened in the order of their usefulness and then finally the best alternative is selected according to the circumstances and purpose

Forecasting Business forecasting refers to the statistical analysis of the past and current movement in the given time series so as to obtain clues about the future pattern of those movements.”

Forecasting Process The various stages in the process are described as under: Thorough preparation of foundation: Detailed investigation and complete analysis of the company are necessary for forecasting which in turn is based on the organisation structure of the company and its past performance. Estimation of the future: The future of the organisation can be estimated by consulting the key executives of the company and then passing on the communication to the entire unit. Collection of results: Relevant records are prepared and maintained to collect the results. Comparison of results: The actual results are compared with the estimated results to know deviations. In caseof significant deviations proper measures are taken and it ultimately helps in forecasting. Refining the forecast: The forecast can be refined in the light of deviations that are the factors which undergo changes during the study period can be used to refine and improve the forecast.

Forecasting Techniques or Types or Methods

Similarity events method: In this method forecast is made on the basis of the events happened in the past which are most similar to the current events. Survey method: Field survey can be conducted to collect information regarding the attitude of people. The information collected is useful for proper forecasting. Time series analysis: In this method the future is forecast on the assumption that past activities are good indicators of future activities. Delphi method: The Delphi technique is another way of obtaining group input for ideas and problem-solving. It does not require face-to-face participation. It uses a series of carefully designed questionnaires interspersed with information summaries and feedback from preceding responses. Regression analysis: Regression analysis is used to find out the effect of changes of the relative movements of two or more inter-related variables. Input and output analysis: Forecast can be made on the basis of the relationship between input and output. For instance, the power requirement of the country can be determined on the basis of the current usage rate. Sales person’s opinion: The sales force of the existing product can be forecast with the help of opinions of sales persons. Sales persons are very closer to the consumers. So, the opinions expressed by the sales persons are of great value. A reasonable sales trend can be predicted based on the opinions of sales persons.

ORGANIZING

Organizing is a process of co-coordinating employee’s activities in an orderly manner. It is a managerial job. It specifies how work or duties shall be divided among the departments in the company, the policies to be followed while accomplishing the objectives, the scope and limits of responsibilities and the relationship of one job to another etc.

Process of organizing • Determining ultimate objects • Grouping of activities in to departments • Deciding the key department • Determining decision making levels • Determining span of management • Setting up a coordination mechanism

Nature of organising • Group of persons • Communication network • Basic function of management • Continuous process • Objective oriented • Organization implies structure of relation ships • Organization involves a network of authority and responsibility

Principles of organising • Principle of Specialization • Principle of Functional Definition • Principles of Span of Control/Supervision • Principle of Scalar Chain • Principle of Unity of Command

ORGANIZATION STRUCTURE

Factor determining organization structure • Environment • Culture • Strategy • Technology • People • Size • Management perception

Factor determining organization Design • Work specialization • Departmentalization • Chain of command • Span of control • Centralization and decentralization • Formalization

Types of organizations structure • Simple

• Line organization • functional

• Bureaucratic • Line and staff

• Matrix

Directing According to Koontz and O’Donnel, “Direction is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively to the attainment of enterprise objective.” There are three techniques of direction as follows: • Consultative direction • Free-rein direction • Autocratic direction

Motivation According to Koontz and O’Donnel, “Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar forces that induce an individual or a group of people to work.”

Process of Motivation • Need Identification • Exploring Ways to Fulfill the Need • Selecting Goals • Performance of Employee • Rewards/Punishments as Consequences of Performance: • Reassessment of Deficiencies of Need

Communication According to Koontz and O’ Donnel, “Communication is an intercourse by words, letters, symbols or messages and is a way that one organisation member shares meaning and understanding with another.”

Elements of Communication A communication process has following elements: • Information • Sender • Receiver • Communication channel • Symbols • Feedback

The following are the steps involved in communication process: • Source • Encoding • Transmission (messagr, channel) • Receiving • Decoding • Action • Feedback

Types of Communication • Upward communication • Downward communication • Horizontal • Diagonal • Formal • Informal • Grapevine • Rumors • Propaganda

Controlling According to Henry Fayol, “Control consists of verifying whether everything occurs in conformity, is with the plans adopted, the instructions issued and principles established. It has for its object to point out weaknesses and errors in order to rectify them and prevent recurrence.”

Steps in Control Process Control points out the deviations of the plans and suggests remedial action to improve future plans. Some of the procedures are found to be defective due to human limitations. Here the control function is put to action. The steps for control are as follows:

• Establishing standards • Measuring performance • Comparison of actual with standards • Taking corrective action • Feedback

Requirements of Effective Control System The requirements of effective control system are: • Feedback • Objective • Suitability • Prompt reporting • Forward looking • Pointing out exceptions • Flexible • Economy • Intelligent • Should suggest remedial action • Motivation

Types of control • Pre-controls or forward looking control • Feed forward or steering controls • Yes no controls • Post action controls

Key performance areas • Financials • Customer Satisfaction • Market Perception • Productivity

Ethics

Functions of production management • Plant location • Plant layout • Inventory control • Quality control • Routing • scheduling

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