MANAGEMENT

Management• The American management association ,“the art of getting things done

through other people.”• Henry fayol, “to manage is to forecast & plan, to organize ,to compound,

to coordinate & to control.” • Donald j. Clough, “ management is the art & science of decision making &

leadership.”• J.N Schulze, “ management is the force which leads, guides & directs an

organization in the accomplishment of pre-determined object.”• Louis allan, “ management is what a manager does.”• Stanly vance , “ management is simply the process of decision making &

control over the action of human beings for the express purpose of attaining pre-determined goals.”

• John f.Mee , “Management is the art of securing maximum result with minimum of efforts so as to secure maximum prosperity for the employer & employee & give the public best possible service.”

• Keith & Gubellini , “ management is the force that integrates men & physical plant into an effective operating unit.”

Four orientation of management definition1. Production of efficiency oriented definition:-– “management is the art of knowing what you want to do &

then seeing that it is done in the best & cheapest way ”

2. Decision oriented definition:-– “management is simply the process of decision making &

control over the action of human beings for the expressed purpose of attaining pre-determined goals”

3. People oriented definition:-– “management is the art of getting things done through & with

people in formally organized groups”

4. Function – oriented definition:-– “Management is process involving planning ,

organizing ,staffing , directing & controlling human efforts to achieve stated objective in an orgenisation”

Nature of Management1. Art as well as science:-

– It is an art in the sense of possessing of managing skill by a person, management is science because of developing certain laws or principle

2. Multidisciplinary :-– management has developed as separate discipline, it draws knowledge & concept from various discipline such as

psychology, economics ,sociology etc

3. Management is a continuous process:-– The management function of any one alone cannot produce any result in the absence of any other basic functions

of management so mgmt is cont process

4. Management is factor of production:-– Factors of production include land , labor ,capital– Orgenisation goal should achieved when these are effectively co-ordinated

5. Management is a discipline:-6. Management is a purposeful activity:-

– to achieve predetermined objectives

7. Management aims at maximizing profit:-8. Universal Application:-

– the principle & practice of management are applicable not to any particular industry alone but applicable to every industry.

9. Management as profession:- I) existence of knowledge ii) acquisition of knowledge iii) ethical code

10. Management is getting thing done:-11. Management as class or team:-12. Direction & control:-

Importance Of Management– Why management ?– Emergence of large orgenisation – Orgenisation is complex – Changing the nature of society

1. Effective utilisation of resources– The resources are scare in nature – Management will help to take decision to takes action to utilise in particular

alternative in the best way2. Development resources

– Management improves the quality of lives of people in the society3. To incorporate innovation

– Today changes are occurring at very fast rate in both technology & social process

4. Integrating various interest groups– Pressure of Groups like shareholder ,employee ,government & society on orgenisation– Management has to balance these pressure from various interest group

5. Stability in the society– Management provide integration between tradition & new invention ,& safeguards

from the unfavorable impact of these invention

6. Achievement of goal7. Meeting the challenge of change

INPUT

MEN

MATERIALS

MACHINERY

METHODS

MONEY

OUTPUT

PRODUCTION

SERVICES

PROFITS

SATISFACTION

SOCIAL JUSTICE

PROCESS OF MANAGEMENT

Planning

Organizing

Directing

Controlling

Process of Management

Process Of Management• Management process categorized in 1. Continuous process:-• It is concerned with constantly identifying the problem & solving

them by taking adequate steps. it is ongoing process

2. Integrating process:-• Management undertake job of bringing together human , physical ,

& financial resources so as to achieve orgenisation purpose

3. Social process:-– Since human factor is most important factor among the other

factor – It is duty of management to make interaction between people &

productive useful for obtaining the orgenisation goal. The management as a process considered to be composite , never-

ending & dynamic process.

Managerial levels/ hierarchy

Management

Top Level (BOD , Chairman ,

CEO , GM)

Middle Level (Branch Manager ,

Divisional Manager)

Low/Supervisory Level (Senior

Supervisor ,front line supervisor)

Top Level Managers• Top level managers considered executives , responsible for the

performance of an orgenisation as a whole.• Functions1. Formulation of long term plan2. Guidance & direction3. Integration4. Staffing5. Review & control6. Public relation

Middle Level Managers• He has to get things done through others.• Middle managers develop & implement action plans consistent with

company objective• Upper middle level managers

– The basic division of orgenisation are determined & overall programs of division are established.• E.g. vice president , divisional managers

• Lower middle level managers:-– It is primarily concerned with carrying out function for achieving

specific goals• E.g.. Departmental managers.

• Functions:-1. Co-operations among top & middle management & supervisors 2. Training & development of employee for better functioning3. Recruitment4. Integration of various parts of department

Low/Supervisory level• Actual work is carried out by low level managers.• Level can be classified in three categories

1. Senior supervisor2. Intermediate supervisor3. Front-line supervisor

• Role of supervisors– Scientific management– Human relations– Functional roles

• Functions• More concerned with execution• Maintain discipline• Organizing & maintaining production

Functions Of Management1. Planning :-planning is the primary function of management2. Organising:- Organising is the distribution of work in GroupWise or section

wise for effective performance.3. Staffing:-it comprises the activities of selection & placement of competent

personnel. it refers to placement of right person at right jobs.4. Directing:-direction deals with making the workers learn techniques to

perform the job assigned to them. it include guidance ,supervision &

motivation of employees.5. Co-ordination : - grouped activities are co- ordinate towards the

accomplishment of objectives of an orgenisation.6. Controlling :- Prof. Theo haimann define “control is the process of checking

to determine whether or not ,proper progress is being made towards the objective & goal & acting if necessary, to correct any deviation”

Henry fayol” control consist in verifying whether everything occurs in conformity with the plan adopted, the instruction issued and principle issued”.

1.Planning• “Planning is the process of establishing goals & suitable course of

action for achieving those goals” -James Stoner

• “A plan is a trap laid to capture the future” - -Allen

• “planning is deciding in advance what is to be done. it involves the selection of objectives ,policies, procedures & programmes from among alternatives” -M.S.Hurley

• “Planning is an ability to visualize a future process & its results” -J.P Barger

• “planning is the selecting & relating of facts & the making & using of assumptions regarding the future in the visualization & formulation of proposed activities believed necessary to achieve desired result.”

-Terry

Objectives of planning1. Reduce uncertainty

– Future is uncertainty, planning will convert it in to certainty.

2. Bridge co-operation & co-ordination

3. Economy in operation

4. Anticipates unpredictable contingencies– Some events could not be predicted called as contingencies– The planning provides provision to meet such contingencies

5. Achieving the predetermined goal

6. Reduce competition

Nature & Characteristics of Planning

1. Planning contributes to the objectives:- 2. Planning involve selection of suitable course of

action:-3. Planning is the basic function of management:-4. Planning is an intellectual activity:-– planning required a lot of thinking ,imagining & visualizing.

5. Planning is directed towards efficiency:- 6. Planning is continuous process:-7. Planning is common to all

– Planning is done by every person may be he is manager or a foreman

8. Planning helps decision making:-9. Planning is flexible & dynamic:-

Planning Process1. Analysis of external & internal environment

– External envort consist socio-economic( classification of society on the basis of income , age , class) ,political condition in country

– Internal audit( strength & weakness of the company called as resource audit ex-plant capacity, available manpower)

2. Determination of objective:-– Objective of orgenisation is preplanned then department wise

objective should be determined

3. Determining planning premises & constraint:-– Forecasting means the assumption & the anticipation of certain

events– Prediction of certain event like tax policy , technology change mfg

coast

4. Identification of alternatives:-– Based on objective & planning premises ,various alternative can be

identified

5. Evaluation of alternatives:-6. Selection of best alternative course of action

– Choose more than one alternatives – Planner should be ready with alternatives , normally known as

contingency plan which can be implemented in changed situation

7. Formulation of supporting plan– Which support main plan,– The derivative plans are formulated out of the main plan therefore ,

they support it

8. follow-up & evaluation– The continuous evaluation of planning is necessary – Actual performance is compared with the planning & corrective action

is taken

Types of PlanningA) Coverage activities

1. Corporate Planning:- – corporate planning deals with top management– Which cover whole organizational activities– To determine long term objectives of orgenisation .

2. functional planning:-– is planning that covers some functional areas like production ,finance ,marketing

etc.B) Time period involved1. Long Range planning :-

– long range planning deals with the futurity of present decision, long range planning sets long-term goals for the enterprise & then proceed to formulate short Range Planning specific plan for attaining those goal.

– Time period is more than one year extending to twenty years

2. short Range Planning– short range mainly concerned with the determination of short-term activities to

accomplish long-term objectives. – It is also known as operational or tactical planning

C)Importance of contents1) Strategic planning :-

– strategic planning is done by the middle level management which provide the foundation for operative plans. it helps for pointing out how an enterprise can optimize the use of its resources in men , money, materials & facilities within the strategic objectives.

2) operational planning:-– Operational planning is done by the lower level manager to put the administrative plan into

action .operational plan define the detailed manner and programmes as to how current operation to be carried out.

D) Degree of formalisation :-1) Formal planning :-

– formal planning are systematically carried on by the management & those which have been written down in the form of document.

– Well structured process involving different steps

2) Informal planning:-– simple thinking by planners or plans ,usually remains in the mind of the planner, are useful

for short range issues.– It undertaking by smaller orgenisation

E)Approach adopted:-1)Proactive planning:-

– Proactive planning involves designing suitable course of action in anticipation of likely changes in the relevant environment

– Orgenisation do not wait for environment to change but take actions in advance of environmental change.

2) Reactive planning– In this planning orgenisation responses come after the environmental change have taken

place

importance of planning

1. Convert uncertainty in to certainty:-2. Planning provides economy in operations:-

– Unnecessary production ,ineffective utilization of resources & unnecessary activities are eliminated through planning

3. Delegation authority facilitated:- 4. Planning provides the basis for control in organization:-5. Planning leads to more effective and faster achievements in

any orgenisation:-6. Planning promotes internal co-ordination:-7. Planning result in greater productivity:-8. To increase organizational effectiveness:-9. Effective utilization of resources:-10. Avoiding business failures :-11. Improve ability to cope with change:-

Limitations /Barriers to effective Planning• Lack of reliable or dependable information:-

– if reliable & accurate information is not available planning should be failure.• Time consuming & expensive:-• Problems of rapid change

– Rapid change in environment make complexity in planning

• Internal inflexibilities:-– Psychological inflexibility:-manager & employee in orgenisation may develop

pattern of thought & behaviour that hard to change.– Policy & procedural inflexibility:-– Capital investment

• External inflexibilities:-– Political climate:- taxation policy , attitude of govt towards business. – Trade unions:-trade unions can interfere in the management activities on work

rule, fixation of wages ,productivity & associated benefits.– Technological changes:-

• Failure of people in planning:-– People involved in planning process fail to formulate correct plans

Feature of good plan or making effective plan1. Linked to long-term objectives2. Direction for action

– A good plan is one which provide direction for future course of action clearly & specifically

3. Consistent– It must be consistent in terms of external & internal factors which are

considered at the time of plan formulation4. Feasible

– Plan should be based on reality of the situation – Must be feasible to implement

5. Simplicity– A good plan must be simple to understand

6. Flexible– A plan should be flexible enough to incorporate unforeseen future events

7. Participation in planning process– Require participation from subordinate managers

Organising• “The process of identifying & grouping the work is to be

performed ,defining & delegating responsibility & authority & establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives”

-allen• “An identified group of people contributing their efforts

towards the attainment of goal is called an orgensiation” -Mc Farland• Orgenisation is the form of every human association for the

attainment of common purpose” -Mooney & Reily

• The term ‘orgenisation ‘ is used in two different sense in first it is denote the process of orgenisation & second sense it is used to denote the ‘result of that process 'namely as orgenisation structure

Features of orgenisation

1. Deliberate & conscious creation– Orgenisation is a deliberately & consciously created human group.– Orgenisation can also recombine its personnel through promotion ,demotion &

transfer

2. Purposive creation – All the orgenisation have some objectives – The objectives are mutually agreed upon the members of the groups.

3. Coordination of activities– Coordination is necessary because all the members contribute to commonly

agreed goal

4. Structure– Structure provides power centers which co-ordinate & control concerted effort

of the orgenisation & direct towards its goals.

5. Rationality– Every orgenisation has some specified norms & standards of behaviour – Every individuals & every member should behave according to these norms

Functions Of Organisation 1. Determination of activities:- it includes the deciding & division of

various activities required to achieve the objectives of the orgenisation.

2. Grouping of activities:- identical activities are grouped under one individual or a department. i.e.-sales department

3. Allotment of duties to specified person:-i.e. purchasing activity to purchase manager.

4. Delegation of authority:-

5. Defining relationship:-

6. Co-ordination of various activities:-

Importance of orgenisation 1. Personal identity:-

– the orgenisation structure defines the role of each member of an enterprise. thus every member knows where he and his department stands.

2. Facilitate administration:-3. Increase the effiency of management:-4. Ensures optimum utilisation of material resources & human efforts:-5. Encourage creativity & initiative:-

– A sound organizational structure will give an opportunity for employee show their hidden talent

6. Facilitates co-ordination:-7. Facilitates training & development of managerial personnel:-8. Prevents the growth of secret ,influence & corruption:-

– sound orgenisation develops the morale, honesty , devotion to duty & loyalty of business orgenisation.

Process of organising• Identification of activities:-

– the manager must identify the series of activities to be carried out in order to achieve the desired organizational objectives.

• Grouping of activities:- – the activities of a manufacturing concern may be grouped in to such

departments as production ,marketing, finance , H.R

• Assigning activities:-– after grouping , the competent personnel manpower who could carry out

these activities are to identified.

• Delegation of authority:-– injecting the position with managerial authority .to carry out any activity,

one must have enough authority.

Principle of Organisation1. Principle of definition:-

– define & fix the duties ,responsibilities & authority of each worker.

2. Principle of objective:-– oraganisation structure should be geared to achieve the main objective of

the organization.

3. Principle of co-ordination:-– the objectives of the organisation may be achieved quickly whenever co- ordination exist

among the worker.

4. Principle of authority:-– The authority is the tool by which a manager is able to accomplish the desired objectives

5. Principle of efficiency:-– The orgenisation structures should enable the enterprise to function efficiently– The work should be completed with minimum resources & within right time

6. Principle of responsibility:-– Each person is responsible for complete the work

7. principle of leadership facilitation– Orgenisation will appoint the person with leadership quality in key position

8. Principle of flexibility:-– The orgenisation set up should be flexible to adjust to the changing environment

9. Principle of unity of direction– All the groups or department are requested to co-operate to attain the

main objectives

10. Principle of join decision:-– In complicated problem decision should taken by various manager

11. Principle of balance:-– Their should be balance in responsibility

12. Principle of leadership facilitation:-– Person with leadership quality are appointed in key position .

13. Principle of uniformity:-– The work distribution in such manner that there should be an equal

status & equal authority & powers among the same line managers

14. Principle of correspondence– Need Proper communication between various dept/manager

15. Principle of simplicity & homogeneity– Orgenisation structure should be simple so staff members can discharge

his duties effectively

Process of designing the organizational structure1. To determine the objectives:-2. To enumerate activities:-an industrial concern may be divided into

the following major function i )production ii)finance iii)sales etc3. To classify activities:-according to similarities ,common purpose and

function 4. To fix individual into functions:-fix suitable & well qualified person

into these activities .5. To assign authority for action :-6. To prepare an organizational manual:-7. To prepare standard practice of instructions:-8. To revise the system on the basis of assessment of personnel &

funds: assess the capacities & abilities of the people .

Staffing• According to koontz “the managerial function of staffing involves the

managing the orgenisation structure through proper & effective selection ,appraisal & development of personnel to fill roles designed into structure”

• S.Benjamin “ the process involved in identifying ,assessing , placing , evaluating & directing individuals at work”

• According to Theo Heinemann “staffing function is concerned with the placement, growth & development of all those members of the orgenisation whose function is to get things done through the efforts of other individuals ”

• “Staffing is the function by which managers build an orgenisation through the recruitment ,selection & development of individuals as capable employees”

• “The managerial function of staffing is defined as filling position in the orgenisation structure through identifying workforce requirement ,inventorying the people available , recruitment , selection ,placement, promotion ,appraisal , compensation & training of needed people ”

Importance of staffing1. Filling orgenisational position– Shortage of good quality managerial & technical personnel in

such a situation there is need of systematic staffing so orgenisation fill the various position with personnel of good quality

2. Developing competencies– Changing nature of job profile there is requirement of multi skill– Form making employee competent newer training &

development techniques are been evolved

3. Retaining personnel– Employee turnover is high– Orgenisation should retain their employees by adopting many

methods having long-term implication

Factors affecting staffing • External factors1. Nature of competition for human resources

– Competition for skilled workforce

2. Legal factors– Govt act – Provision regarding mandatory employment of certain categories of personnel such as scheduled

cast/tribes OBC

3. Socio-cultural factors– Orgenisation can employ certain categories of personnel for certain job– Ex. employment of women in mfg operations

4. External influences– Pressure for employing in the orgenisation– Political pressure– Ex. ‘sons of the soil’

• Internal factors1. Orgenisational business plan

– Business plan determine the type of personnel that may be required in feature

2. Size of orgenisation– Size of orgenisation determines degree of attractiveness to the prospective candidate– Small orgenisation cannot have same staffing as large orgenisation

3. orgenisational image– Image depends upon training & development, promotional avenues ,compensation ,work culture

Function Of Staffing1. Human resource planning:-2. Development:- development of staff members through

adequate & appropriate training program.3. Fixing the employment standards:- it involves job specification

& job description. job description is systematic & organized written statement of the duties & responsibilities in a specific job. job specification is a statement of personal qualities that an individual must posses.

4. Sources :- 1)internal 2)external5. Selection & placement:-6. Training:-7. Other functions:- promotion , transfer, record maintenance,

motivation

Staffing Process1. Human Resource planning2. Job Analysis3. Recruitment4. Selection5. Placement & orientation6. Training & development7. Performance appraisal8. Promotion & transfer of the employees

1. Human Resource planning• “Is the process by which a firm ensure that it has the right number

of people & right kind of people ,at the right time ,doing thing for which they are economically most useful”

• “HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities ,how many people will be available ,& what , if anything must be done to ensure that personnel supply equals personal demand at the appropriate point in the future ”

• Hr manager should find out the requirement of manpower to undertake the various activities. it is determined in terms of quality & quantity.

• To formulate action programme & procedure as to acquire & develop required manpower. human resource plan consist finding out the sources of labour supply & necessary preparation are made for conducting various development programme.

Importance of HRP1. Defining future personnel need :-

2. Coping with change

3. Providing base for developing talents

4. Increasing investment in human resources– The cost of acquiring ,developing & retaining personnel is increasing much

faster than average rate of inflation– Increase in salary package

5. Forcing top management to involve in staffing

HRP Process1. Forecasting future manpower requirement:-

– Forecasting based on specific future plan of the economy

2. Inventorying present manpower – To know how the resources employed optimally– Skills inventory:-employee personal data , education ,job exp , training,

special achievement– Management inventory:-personal data , work history, strength

promotion potential

3. Anticipating manpower problemTo determine adequacy both quantitatively & qualitatively

4. Planning the necessary program– Such as recruitment ,selection , training & development , promotion ,

motivation so future requirement will met.

2.Job Analysis• “job analysis is the process of studding & collecting information

relating to the operations & responsibility of specific job” it consist two sub-process

1. Job description:- is an orgenised factual statement & summary of the job contents in terms of title , location , duties , working condition , equipment to be used , amount of supervision needed, personal requirement of the job.

2. Job specification:-it gives details relating to the candidate who is supposed to do the job , such as qualification , experience

– Personal characteristics such as age ,sex ,education ,job experience – Physical characteristics such as height , weight , hearing– mental characteristics such as intelligence , memory– Social & psychological characteristics such as emotional

stability,creativity

Uses of job analysis1. Acquisition of personnel

– HRP , recruitment & selection ,orientation & placement– Job analysis give information for forecasting human resource need in terms of

knowledge ,skill & experience

2. Human resource development– Career planning – Training & development

3. Job evaluation & compensation– Is the process of determining the relative worth of different job in an

orgenisation with view to link compensation

4. Performance appraisal– Job analysis helps in determine performance standard against which the actual job

performance measured

5. Safety & health– Job analysis helps in taking preventive measure for maintaining safety & health of

employee at workplace by providing information

6. Employee counseling– It helps in counseling to employee those working under stress

3. Recruitment• “Recruitment is the process of finding & attracting capable

applicants for employment .the process begins when new recruits are sought & ends when their application are submitted .”

• “The term recruitment applies to the process of attracting potential employee of the company.”

-Dalton E.McFarland

3.Sources of Recruitment

Internal Sources

• Advantages:-1. It increase the morale among the staff member2. Giving promotion keep the employee happy.3. Training expenses may be reduced some extent.4. It ensures the continuity of job to the staff member & stability

of the orgenisation.5. It induces the staff members to work hard to get promotion.6. Expenses as on advertisement ,recruitment ,

Test & interview are avoided.

• Disadvantages:-1. The outsider do not have a scope to show their ability.2. An under qualified person may be appointed in the higher post.3. If the higher post is filled by internally ,the company will not

able to get fresh & original ideas .

External Sources• Advantage:-1. Choice:-a company can recruit a person out of a large number of

applicant .2. New outlook:-new person uses new approaches to solve the problem

which will give maximum benefit to the company.3. Wide experience:-recruited candidate has the experience in various

fields.• Disadvantage-1. Gruging of old employees:-2. Lack of co-operation:-3. Expensive:-4. Danger of non- adjustment :- if a newly person fails to adjust himself

to the working condition of the company, it leads to more expenditure in looking for his replacement.

4.Selection

• “selection is the process adopted by an orgenisation to select adequate number of persons who are fit the job”

Selection Procedure:-A. Job analysis:-

a) job description:- it gives details about duties ,responsibilities b)job specification:-it specify the type of person required in terms of

educational qualification ,experience, aptitude etc1.Receiving & Screening application 2.Employment tests:-

a)intelligence test b) aptitude test c) performance test d)personality test4. Employment interviews:- types of interview:- 1) informal interview 2)Formal interview 3) planned interview4)

structured interview 5) stress interview 6) group interview 7) panel or board interview

5) Checking Reference6) Conducting medical or physical examination7) Final selection & placement

5. Placement & induction:-1) he placed on the job for which he was selected2) an employee should introduced to the orgenisation culture & environment. Information about company history ,objectives , rules & regulation ,opportunities ,promotion ,transfer

6. Training & development:-“training is the act of increasing the knowledge & skill of an employee for

doing a particular job.”

Advantage of T&D :-1) Increased efficiency & productivity:-2) Reduced supervision & direction:-3) Employee moral will improve4) Confidence in employee5) Positive attitude6) Enhance existing knowledge of employee

Methods of training 1) On the job training:-

– Demonstration:-operatives can be trained through demonstration by trainer

– Vestibule training:- two parts first there is lecture method focus on theoretical method & second aspect is practical exercise based on theoretical aspect

– Apprenticeship:-– Coaching:-– Job rotation:-movement of employee from on job to another job

2) Off the job training:- – lectures – conference – case studies – role play

7. Performance Appraisal:-• “ Is the systematic description of an employee’s job relevant strengths & weaknesses”• “ Is the systematic evaluation of the performance of an employee by an expert or his immediate

superior”• “ Is the systematic evaluation of the individuals with regard to his or her performance on the job &

his potential for development”• Objectives

1. Salary increase2. Promotion3. T & D4. Feedback5. Pressure on employees

Importance:-– helps mgmt to take decision about salary increase– Continuous evaluation of an employee helps in improving quality of employee– Minimize communication gap between employee & employer– Training needs can be identified– Promotion & demotion is given on the basis of performance appraisal– Helps to improve the employee & employer relation

8.Promotion & Transfer• Need for Promotion1. Orgenisational need

– No orgenisation can rely on outside recruitment to fill all its requirement

2. Providing motivation– Promotion possibilities influence the behaviour of individuals in the

orgenisation

3. Providing satisfaction– Opportunities & clear policies for promotion provide satisfaction to

employee– Promotion provide economic & morale development

Directing

• “Directing consists of the process and techniques utilized in issuing instructions and making certain that operations are carried on as originally planned.”

• “Direction is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively to the attainment of enterprise objective.”

-Koontz & O'Donnell

• “direction is telling people what to do & seeing that they do it to the best of their ability . it includes making assignment, corresponding procedure ,seeing that mistake are corrected ,provide on-the-job instruction & of course ,issuing orders ”

-Earnent Dole

Importance of direction.o Direction initiates actions.

– Without direction other activities like planning , staffing become ineffective

o Direction integrates employee efforts.– In orgenisation activities are inter-related in such way that each individuals

performance affect the other performance– So individuals efforts should integrates in such manner so orgenisation

achieve objectiveo Direction attempts to get maximum out of individual.

– Direction will provide the way to utilise these capabilities o Direction facilitates changes in the organization.

– Orgenisation will change according to change in the society – To incorporate & implement these change

o Direction provides stability.– Effective leadership communication & motivation provide stability in the

orgenisation & maintain balance

Principles of direction.1. Principle Harmony of objectives

– Individuals have their own objectives ,orgenisation has its own objectives – Direction in such way that the individuals objectives can integrate with orgenisational

objectives2. Principle Maximum individual contribution.

– Direction technique which enables subordinates to contribute maximum3. Principle Unity of direction or command.

– Employee should receive orders & instruction from one superior4. Principle Efficiency of direction

– To provide satisfaction to employee5. Principle of managerial communication

– Communication from both the way downward & upward 6. Principle Appropriateness of direction technique.

– Three techniques of direction use the best technique on the situation7. Principle of use of informal orgenisation

– Use of informal group to communicate fast & making direction effective8. Principle Comprehensive.

– Brief explanation of duties should be given to subordinate9. Principle of leadership

– Manager should be good leader to influence the activities of their subordinates10. Principle Follow through

– Directing is continuous process – What difficulties subordinate facing ,if need the order can be modified & replaced

Techniques of direction1. Consultative.– The supervisor has consultation with his subordinates before

issuing direction – The co-operation of subordinate is necessary for successful

implementation2. Free rein.– Superior will assign the task generally, subordinate take

initiative to solve the problem3. Autocratic– Opposite free rein– Superior commands hi subordinates & has close supervision.

Co-Ordination• “co-ordination involves the development of unity of purpose & the

harmonious implementation of plans for the achievement of desired ends”

• “co-ordination is balancing & keeping the team together by ensuring a suitable allocation of working activities to the various members & seeing that these are performed with due harmony among the member themselves”

E.F.L.Brech• “co-ordination is the orderly arrangement of group effort ,to provide unity of

action in the pursuit of common purpose”James D. Mooney

• Importance 1. Unity in diversity:-

– orgenisation having large number of employees & each has different ideas, views or opinions, activities & background

– By co-ordination we use their in proper way

2. To achieve Team work:-– Co-ordination will eliminate the duplication of work which leads to economic &

efficient management

3. Large number employees – They have different behaviour , habits , approaches in particular situation

4. Interdependence of units 5. Functional differentiation:-

– the orgenisation are divided in department-wise, or section –wise – Each department tries to perform its own function – Co-ordination is required to integrate the function

• Problems Of Co-Ordination1) Natural Calamities2) lack of administrative talent3) lack of techniques of Co-Ordination4) Misunderstanding among the employees

• Types of co-ordination1. Internal co-ordination– It is relationship with view to co-ordinate the activities of all the

managers ,executives ,division, sub-division ,branches & workersA. Vertical co-ordination

• Co-ordination in which superior authority co-ordinates his work with that subordinate

B. Horizontal co-ordination• Establishment of a relationship between the person of same status.

2. external co-ordination– Define as establishment of relationship between employees of the

orgenisation & outsider of the orgenisation – Market agencies– Competitors – Customers– General public– Technological agencies

• Steps for effective Co-Ordination1) there should be proper delegation of authority & responsibility2) establishment of an effective communication system3) there should be proper system for reporting4) skilled worker are to be rewarded adequately5) management should encourage the employees to have friendly

relationship with others6)management should induce the employees to take active part in meetings , committees, conferences , seminars

6.Controling• “checking current performance against pre-determined standards

contained in the plan ,with a view to ensure adequate progress & satisfactory performance”

• “control consist in verifying whether everything occurs in conformity with the plan adopted ,the instruction issued & the principle established”

• Need of control1. Judging the accuracy with standards2. Minimize dishonest behavior3. Better performance

• Steps in control process1. Establishing standards:-

– Setting standards, it may be quantitative or qualitative

2. Measuring performance:-– The performance should be compared with the established standards

3. Comparison of actual with standards:-– Whenever comparison is made the deviation are known to the management– If results are intangible or qualitative, personal observation will be used to

find out the extent of deviation

4. Taking corrective action:- – After finding deviation – Finding the cause of the deviation it may be inadequate communication

defective system of wage payment, lack of proper training– Management should take necessary action on the basis of nature of cause of

deviation.

Techniques Of Control• Statistical control reports

– Reports are in quantitative form– Periodical report sales

• Personal observation– Manager personally observe the operations in work place

• Management audit– It will help in pointing out the inefficiency in the performance of management function

• Return on investment– Net profit / total investment or capital employed

• Internal audit– Internal audit reports can be produced normally by month

• External audit control– External auditors certify that all the books of account are kept as per the requirement – Balance sheet show the a true & fair view

• Zero-base budgeting– Zero-base budget is prepared without considering the previous years figures.

• Managerial statistics– Manager compares the past result with current result in order to know the cause of

change

Advantage of control1) Adjustments in operation

– Control provide clue to find the whether plans are properly implemented to achieve the objectives

2) Variation of policy– The management frames the policy & plans to help the orgenisation function smoothly – The orgenisation performance reviewed on this policies.– So management can review the policy through the control process

3) Psychologically pressure– The employee performance is evaluated & linked with rewards so employee work hard to

achieve the standard set to them

4) Co-ordination5) Efficiency

Limitation of control1. Absence of perfect standards

– Standards cannot be fixed in all the cases

2. Uncontrollable factors– Uncontrollable factor such as Govt policy , strategy of competitors

3. Difficulty in fixing responsibility– Control reduce the freedom of employees ,so they resist the exercise of control.

4. Expensive process– Control process is time consuming, much paper work

The Manager• Any person who perform the function of planning ,orgenising , staffing ,

directing & controlling for the accomplishment of pre-determined orgenisation goal is called as manager .

Characteristics Of effective Manager:-1. Decisive2. Productive 3. Creative4. Intelligent 5. Responsible 6. Enterprising7. Clear thinking 8. Agreeable9. Kindly10. energetic 11. Ability to learn12. Adaptability13. Positive attitude14. motivator

Behaviour of effective manager

• Campbell et al have listed some behaviours of good managers

1. To manage people instead of work2. To plan & organise effectively3. To set goal realistically4. To rely on others for help in solving problems5. They communicate effectively6. They coordinate effectively7. They co-operate effectively8. They show consistent & dependable behaviour9. They win gracefully

• Functions Of Manager:-1. Planning the work:-2. Taking decisions:-3. Delegating authority:-4. Solving the problems:-5. Co-ordination:-6. Motivating workers:-7. Setting target:-8. Guiding sub-ordinates:-9. Arranging the facilities:-10. Control the deviation:-

Role Of Manager1. Interpersonal Roles• The figurehead role. Every manager must perform some duties of a

ceremonial(traditional) nature (e.g., the president greets the touring dignitaries, the sales manager takes an important customer to lunch). These activities are important to the smooth functioning of an organization.

• The leader role. This role involves leadership directly . The leader role encompasses relationships with subordinates , including motivation, communication, and influence.

• The liaison role, in which the manager makes contacts inside and outside the organization with a wide range of people: subordinates, clients, business associates, government, trade organization officials, and so on.

2. Informational Roles• The monitor role. This role involves seeking current information from many

sources. • The disseminator role In their disseminator role, managers pass information to

other, both inside and outside the organization.• The spokesperson role. In their spokesman role, managers send some of their

information to people outside the organization about company policies, needs, actions, or plans.

3. Decisional Roles• The entrepreneur role. In his entrepreneur role , managers search for

improvement his unit to adopt it to changing conditions in the environment.

• The disturbance handler role. This role involves responding to high-pressure disturbances. For example, manager must resolve conflicts among subordinates or between manager's department and other departments.

• The resource allocator role. In their resource allocator role, managers make decisions about how to allocate people, budget, equipment, time and other resources to attain desired outcomes.

• The negotiator role. The negotiations are duties of the manager's job. These activities involve formal negotiations and bargaining to attain outcomes for the manager's unit responsibility

Responsibility of Manager

1. Planning of work2. Proper & effective communication3. Co-ordination of efforts4. Getting co-operation of employees5. Encourage a team sprit6. Better utilisation of resources7. Maintaining good human relations8. Solve the problem9. Arranging the training & development facilities

Managerial Skills 1. Technical Skill:-it involves specialized knowledge, analytical ability within

that specialty, and facility in the use of the tools and techniques of the

specific discipline.

2. Human Skill :-This refers to the ability to work with, understand and motivate other people. He is sufficiently sensitive to the needs and motivations of others in his organisation so that he can judge the possible reactions to, and outcomes of, the various courses of action he may undertake.

3. Conceptual Skill :-This skill involves the ability to see the enterprise as a whole; it includes recognising how the various functions of the organisation depend on one another, and how changes in any one part affect all the others

Types Manager• A functional manager is a person who has management authority

over an organizational unit - such as a department - within a business, company, or other organization. Functional managers have ongoing responsibilities, and are not usually directly affiliated with project teams, other than ensuring that goals and objectives are aligned with the organization's overall strategy and vision.

• In both traditional and matrix organizations, the control of the resources is centered around the functional managers, essentially putting project managers at a disadvantage when bargaining about staffing arrangements. Additionally, in such organizations, Project managers usually report to functional managers, who report to senior management

Generalize manager

• A manager may be responsible for one functional area, but the general manager is responsible for all areas. Sometimes, most commonly, the term general manager refers to any executive who has overall responsibility for managing both the revenue and cost elements of a company's income statement. This is often referred to as profit & loss (P&L) responsibility. This means that a general manager usually oversees most or all of the firm's marketing and sales functions as well as the day-to-day operations of the business. Frequently, the general manager is responsible for effective planning, delegating, coordinating, staffing, organizing, and decision making to attain desirable profit making results for an organization

Line & Staff Manager

• According to functional approach line function are those that are related directly with the attainment of organizational objective & staff function are those that help line function in attaining the objectives.

• “line function are those which have direct responsibility for accomplishing the objectives of the enterprise & staff refers to those elements of the orgenisation that help the line to work most effectively in accomplishing the primary objective of the enterprise ”

• Ex-in mfg orgenisation whose basic objective is to produce & sell goods. production & marketing are line function & finance ,personnel , legal are staff function

• Ex –marketing & selling function may be line function but market research is staff function

• Line authority carry outs orders & instruction ,the exercise of this authority always downward i.e. superior to subordinate

• A person performing staff function is called staff managers • The nature of staff relationship is advisory.• Staff authority involves in giving advice to line manager.

• Line manager authority• The direct relationship between a superior & his subordinate is

created through the enforcement of line relationship

1. As a chain of command– Line authority is the heart of this relationship because it entitles a

superior to direct the work of his subordinate.– In this superior is uncontrollable authority except those control

prescribed by orgenisation & regulated by environment factor, of giving order & subordinate has no alternative except obey those orders

2. As a channel of communication– Line authority treated as communication between members of the

orgenisation 3. As a carrier of responsibility – The line relationship carries ultimate responsibility for the work

assigned – Each individual is accountable for the proper performance of the

activity assigned to him

Staff Manager authority• the exercise of this authority depends on the degree of authority delegated

to staff man or department . staff authority in following form1. Advisory staff authority

– He study the problem ,offer suggestion , prepare plan for the use & help of line manager

– Provide advice, assistance & information, He make recommendation to line managers

– Accepting advice from staff manager is not obligatory for line manager.

2. Concurring staff authority– Under certain circumstances control over some operation is very important a staff

may be granted authority so that no action can be taken until the concern staff man agree

– Ex –agreement with the employees over the matter of wages should be entered only after the personal manager has agree

3. Control staff authority– certain unit manager with staff authority who directly or indirectly exercise

control over other unit in an orgenisation – Ex –quality inspection unit has authority over deciding the product which meet

the quality standards through the unit may not involve itself in manufacturing process

4. Functional staff authority– Means that staff managers can give certain orders directly to line in his own

name instead of making recommendation to his superior or other line managers.

– Functional authority arises because– Generally a superior delegates authority to staff man to transform information

proposal – He will not give recommendation but he will show how to take action• “functional authority is the power which an individuals or department have

delegated to it over specific process ,practices policies or other matters relating to activities undertaken by personnel in department other than its own ”

• A staff manager may work with other managers or business owners in order to create business and company policies, such as vacation time or dress codes, for instance. In addition, a staff manager will generally need to know the labor laws regarding things such as safe business practices and time spent working.

• Primarily, a staff manager is there to serve as a liaison between the staff of a business and the heads of the business. Employees can come to this manager with questions or requests for assistance at work

McKinsey 7-S framework • McKinsey he has given internal factor affecting orgenisation

effectiveness1. Strategy

– Means to achieve orgenisational purpose

2. Structure– Framework to designate responsibility & function

3. Systems– Management tools for planning ,decision making ,communication & control

4. Staff– Human resource

5. Skills – Orgenisational & individuals capabilities

6. Styles – How manager leads & motivate

7. Shared values– Objective ,goals which the orgenisation pursues