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à
 Write a detailed note on importance of management



 

 




According to —
 management is the dynamic lift-giving element in every

organization. It is the activating force that gets things done through people. Without
management, an organization is merely a collection of men, machines, money and
material. In its absence, the resources of production remain resources and never become
production. The importance of management can be understood from the following points.

(i) R  

 
 

canagement ensures optimum utilization of resources by attempting to avoid wastage of

all kinds. It helps in putting the resources to the best advantage within the limitations set
by the organization and its environment. A right climate is created for workers to put in
their best and show superior performance.

(ii) 



 

In the absence of management, the working of an enterprise will become random and
haphazard in nature. Employees feel a sense of security when they find a body of
individual¶s working day and night for the continued growth of an organization.
canagement makes group effort more effective. It enables employees to move
cooperatively and achieve goals in a coordinated manner. canagement creates teamwork
and motivates employees to work harder and better by providing necessary guidance,
counseling and effective leadership.

(iii) 
   
 

canagement minimizes industrial disputes and contributes to sound industrial relations

in an undertaking. Industrial peace is an essential requirement for increasing productivity.
To this end, manager tries to strike a happy balance between the demands of employees
and organizational requirements. They initiate prompt actions whenever workers express
dissatisfaction over organizational rules, methods, procedures and reward systems.
(iv) 


 

canagement plays an important role in the achievement of objectives of an organization.

Objective can be achieved only when the human and non-human resources are combined
in a proper way. canagement is goal-oriented. With a view to realize the predetermined
goals-managers plan carefully. Organize the resources properly; hire competent people
and provide necessary guidance. They try to put everything on the right tract. Thus
unnecessary deviations. Overlapping efforts and waste motions are avoided. In the final
analysis, all these help in realizing goals with maximum

.

(v) 
  

Changes in technology, government policy, competition, etc., often threaten the survival
of a firm. Failure to take note of customer¶s needs regarding full efficiently has spelt
doom for µIdeal java¶ in the two-wheeler market in India. An enterprise has to take note
of these changes and adapt itself quickly. canagers help an organization by anticipating
these changes (careful planning, forecasting combined with efficient use of resources)
and taking appropriate steps. Successful managers are the ones who anticipate and adjust
to changing circumstances rather than being passively swept along or caught unprepared.

(vi)  
  

canagement improves the standard of living of people by (a) using scarce resources
efficiently and turning out profits. (b) Ensuring the survival of the firm in the face of
continued changes. (c) Exploiting new ideas for the benefit of society as a whole and (d)
developing employee talents and capabilities while at work and prompting them to show
peak performance.


à
 What is Organization Development? Compare organization development
with management development?


 

Organization Development (OD) is a response to change, a complex educational strategy

intended to change the beliefs, attitudes, values and structure of organization so that they
can better adapt to new technologies, markets, and challenges, and the dizzying rate of
change itself. (Bennis, 1969).

OD can be defined as a planned and sustained effort to apply behavioural science for
system improvement, using reflexive, self-analytic methods. (Schmuck and ciles, 1971)

Organizational development is a process of planned change- change of an organization¶s

culture from one which avoids an examination of social processes (especially decision
making, planning and communication) to one which institutionalizes and legitimizes this
examination. (Burke and Hornstein, 1972)

Organization development is an organizational process for understanding and improving

any and all substantive processes an organization may develop for performing any task
and pursuing any objectives«. A ³process for improving processes´ ± that is what OD
has basically sought to be for approximately 25 years (Vaill, 1989)

³Organizational development is a set of behavioural science-based theories, values,

strategies, and techniques aimed at the planned change of the organizational work setting
for the purpose of enhancing individual development and improving organizational
performance, through the alteration of organizational members¶ on-the-job behaviours.´
(Porras and Robertson, 1992)

³OD is a systematic application of behavioral science knowledge to the planned

development and reinforcement of organizational strategies, structure, and processes for
improving an organization¶s effectiveness.´ (Cummings and Worley, 1993)

³Organization development is a planned process of change in an organization¶s culture

through the utilization of behavioural science technologies, research, and theory.´ (Burke,
1994)

As you can see, these definitions overlap a great deal (that¶s encouraging), and contain
several unique insights (that¶s enlightening). All authors agree that OD applies
behavioural science to achieve planned change. Likewise, they agree that the target of
change is the total organization or system and that the goals are increased organizational
effectiveness and individual development.
Collectively, these definitions convey a sense of what organization development is and
does. They describe in broad outline the nature and methods of OD. There is no set
definition of OD and no agreement on the boundaries of the field, that is, what practices
should be included and excluded. But these are not serious constraints given that the field
is still evolving, and that practitioners share a central core of understanding as shown in
the preceding definitions.

Now let¶s turn to our definition of organization development. We do not propose it as the
³right´ definition, but as one that includes characteristics we think are important for the
present and future of the field.

³Organization development is a long-term effort, led and supported by top management,

to improve an organization¶s visioning, empowerment, learning, and problem-solving
processes, through an ongoing, collaborative management of organization culture-with
special emphasis on the culture of intact work teams and other team configurations-using
the consultant-facilitator role and the theory and technology of applied behavioural
science, including action research.´ This definition is lengthy, but it includes a number of
components that we consider essential.

—







—


R—

  

—


 R —




Objectives Increasing manager¶s Changing the nature of the organization.
contributions to goal
accomplishments.

Focus Train and equip employees and Focus on design, not on the managers;
managers to perform better in focus on achieving improvement in
existing organization. design.

Approach Educative and training Problem-solving approach.

Time Short-range. Long-range strategy for organizational

innovation and renewal.

Specialist No special requirement. Trained specialists required.



à
 cr. Vikram is the General canager of a textile company. He has to
participate in a meeting with the board of directors of the company. He is expected to
conduct the SWOT Analysis of the company. Help him in preparing the question
checklist in order to attain the required information about the company¶s Strengths,
Weaknesses, Opportunities and Threats.


 

   !"R


A situation or !"R
(Strengths, Weaknesses, Opportunities, and Threats) analysis is

vital for the creation of any strategic plan. The SWOT analysis begins with a scan of the
external environment. Organizations need to examine their business situation in order to
map out the opportunities and threats present in their environments. Sources of
information may include stakeholders like, customers (internal and external), suppliers,
governments (local, state, federal, international), professional or trade associations
(conventions and exhibitions), journals and reports (scientific, professional, and trade).

SWOT analysis provides the assumptions and facts on which a plan will be based.
Analyzing strengths and weaknesses comprises the internal assessment of the
organization.

For assessing the 
of the organization the following questions are important:

1. What makes the organization distinctive?

2. How efficient is our manufacturing?

3. How skilled is our workforce?

4. What is our market share?

5. What financing is available?

6. Do we have a superior reputation?

For assessing the 
#

 of the organization the following questions are important:

1. What are the vulnerable areas of the organization that could be exploited?

2. Are the facilities outdated?

3. Is research and development adequate?

4. Are the technologies obsolete?

For identifying R  
 the following elements need to be looked at:

1. In which areas is the competition not meeting customer needs?

2. What are the possible new markets?

3. What is the strength of the economy?

4. Are our rivals weak?

5. What are the emerging technologies?

6. Is there a possibility of growth of existing market?)

Identifying

involves the following:

1. In which areas does the competition meet customer needs more effectively?

2. Are there new competitors?

3. Is there a shortage of resources?

4. Are market tastes changing?

5. What are the new regulations?

6. What substitute products exist?

In general terms, the best strategy is one that fits the organization¶s strengths to
opportunities in the environment.

The SWOT analysis is used as a baseline for future improvement, as well as gap analysis.
Comparing the organization to external 
 # (the best practices) is used to assess
current capabilities. Benchmarking systematically compares performance measures such
as efficiency, effectiveness, or outcomes of an organization against similar measures
from other internal or external organizations.