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Management in all business and human organization activity is the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. OR Management is a distinct process consisting of planning, organizing, actuating and controlling performance to determine and accomplish the objective by the effective use of people and resource.
e.g. Finance management, Operational management, Marketing management, IT management, Purchase management, Human Resource management etc.
Basic functions of management (POSLCC)
Management operates through various functions, often classified as planning, organizing, leading/directing, and controlling/monitoring.
Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action. Planning is most basic and primary function of management. Planning is a process for accomplishing purpose. It is blue print of business growth and a road map of development. It helps in deciding objectives both in quantitative and qualitative terms. It is setting of goals on the basis of objectives and keeping in view the resources. Process of creating and maintaining a plan and process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior. It is essential to the creation and refinement of a plan, or integration of it with other plans, that is, it combines forecasting of developments with the preparation of scenarios of how to react to them.
Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans. Organizing, in companies point of view, is the management function that usually follows after planning. And it involves the assignment of tasks, the grouping of tasks into departments and the assignment of authority and allocation of resources across the organization.
Staffing: Job analyzing, recruitment, and hiring individuals for appropriate jobs. Staffing function become important as organization growing day by day with technoly. It involves:
Determination of manpower
Recruitment and interviews
Selection of suitable candidates Training ,induction and orientation programs Promotion, Demotion, performance appraisal and compensation Leading/directing: Determining what needs to be done in a situation and getting people to do it. It involves Issuing orders and instructions, supervising subordinates at work, motivation, effective communication Coordination is the act of coordinating, making different people or things work together for a goal or effect. Controlling/Monitoring, checking progress against plans, which may need modification based on feedback.
Management is an art or science?
One of the enduring questions in the field of management is whether it is an art or a science. An art as "skill in conducting any human activity" and science as "any skill or technique that reflects a precise application of facts or a principle." Management – A science: 1. Management as a science would indicate that in practice, managers use a specific body of information and facts to guide their behaviors. 2. Science is a collection of systematic knowledge, collection of truths and interfeaces afer continuous study and experiments. The relationship between variables and limits are defined and the fundamental principles are discovered. 3. Science has got 3 specific characters: It is the systematic and organized knowledge and based on the scientific methods and observations. Interferences are arrived after continuous observation and experiments It has logical principles which are well defined and universally applicable w/o any limitations.
4. Management principles have also evolved and it is changing day by day according to the
change in human behavior. Managers must study the way that workers perform their tasks and understand the job knowledge (formal and informal) that workers have, then find ways to improve how tasks are performed. 5. Managers must codify new methods of performing tasks into written work rules and standard operating procedures. 6. management as a science are likely to believe that there are ideal managerial practices for certain situations. That is, when faced with a managerial dilemma, the manager who believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to determine the correct course of action. This manager is likely to follow general principles and theories and also by creating and testing hypotheses. 7. E.g. if a manager has a problem with an employee's poor work performance, the manager will look to specific means of performance improvement, expecting that certain
principles will work in most situations. He or she may rely on concepts learned in business school or through a company training program when determining a course of action, perhaps paying less attention to political and social factors involved in the situation. Management – An Art:
1. Art uses the known rules and principles and uses the skill, expertise, wisdom,
perience to achieve the desired result. The point is how to get the things done in the desired manner to get the desired result. New methods can be adopted from past experience and incidents what to do and what not to do. Effective management is extracting voluntary cooperation from the staff. So it is definitely an art and it can be acquired only by practicing the theoretical knowledge skillfully. 2. These managers are likely to rely on the social and political environment surrounding the managerial issue, using their own knowledge of a situation, rather than generic rules, to determine a course of action. 3. E.g as a contrast to the example given previously, a manager who has a problem with an employee's poor work performance is likely to rely on his or her own experiences and judgment when addressing this issue. Rather than having a standard response to such a problem, this manager is likely to consider a broad range of social and political factors, and is likely to take different actions depending on the context of the problem. Thus management is a blend of art and science to more effectively cultivate managerial talent. This is evident in recent theories of management, research in workplaces, and education and development of managers.
Formation of the business policy
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The mission of the business is its most obvious purpose -- which may be, for example, to make soap. The vision of the business reflects its aspirations and specifies its intended direction or future destination. The objectives of the business refers to the ends or activity at which a certain task is aimed. The business's policy is a guide that specifies rules, regulations and objectives, and may be used in the managers' decision-making. It must be flexible and easily interpreted and understood by all employees. The business's strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the business's advantage. Initially, it could help the managers decide on what type of business they want to form.
A manager’s job is diverse and complex, and requires a range skills. Three basic kind of skills : technical, human and conceptual Technical skill- Is the ability to use the procedures, techniques and knowledge of a specialized field. Surgeons, engineer, musicians and accountants. Human skill - The ability to work with, understand and motivate other people as individuals or in groups.
Conceptual skill – ability to coordinate and integrate all of an organization’s Interests and activities.
Management Environment is a relationship between a business’s actions and its environment. Environment is the surroundings of a business by which business influenced directly or indirectly. Where the political, economic, social and technological factors shopping a business environment are assessed by a business so as to devise future strategy.
1. Internal Environment factor , these involve (6M's)
Business is normally under-taken for profit maximization. The internal factors are generally regarded as controllable factors because the company has control over these because the company has central over these factors; it can alter or modify such factors as its personnel, physical facilities, organization and functional means, such as marketing mix to suit the environment. The spirit of the internal environment of a firm is derived from its mission. The entire process takes place within the framework of a value system and corporate culture and the persons occupying different line and staff positions here to fit themselves into the value and culture framework. These factors establish the broad internal environment within which different departments of the firm operate in an interrelated manner.
• • • • • •
Management: Management structure such as board of directors, managers, employees etc the decisions made by these management affects the performance of organization. Manpower: Machine Material Money. Mission and Objective: that states as to why and for whom does it exist. This provides the basic purpose of a firm’s existence and operations. Top management of the firm executes the mission through a strategy which is based mission through a strategy which
is based on thorough planning in terms of clearly identified objectives to be achieved over a period of time.
2. External Environment factors:
It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. These are considered as uncontrollable factors. Macro factors are the one that affect the organization indirectly, these are (STEPEL) The other factors that can affect the business are:
• • •
Social – how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. Technological – how the rapid pace of change in production processes and product innovation affect a business. Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political – how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. Ethical – what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights. Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours.
Micro External factors are those which affect the organization directly it involve (CCSPM)
Customers: The customers have a direct impact on the business, companies go to create and sustain customers for continuity of business. A company may have different categories of customers viz, o Industrial customers o Retailers customers’ o Wholesalers customers o Government bodies customer’ o Foreign customers Competitors: Competitors play a vital role in running the business enterprise; business has to adjust its various business activities according to the behavior of the competitors. Product competition, Brand competition which improves quality of products, availability of products at cheap prizes to attract customers.
6. Planning establishes a coordinated effort. The marketing intermediaries include middlemen such as agents and merchants who “help the company find customers or close sales with them.. establishing an overall strategy for achieving these goals. Public: A company may encounter certain publics in its environment. there are several questions that need to be asked to realize the organization’s goals. Planning gives direction to the organization. Uncertainty regarding the supply or other supply problems will compel the companies to maintain high inventories which will cause increase in costs. Media public. and distributing its goods to final buyers. 1. What activities are required to accomplish the objectives? 2. Planning “Planning is the process defining the organization’s goals. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. 3. When should these activities be carried out? 3. 4. plans are statement of how objectives are to be accomplished. 2. Planning is important and serves many significant purposes. whether he is top manager or lower level manager. Who is responsible for doing what? 4. Where should the activities be carried out? . selling. he has to plan. 1. Planning establishes objectives or standards that are used in controlling. those who supply the inputs like raw materials and components to the company. and developing a comprehensive set of plans to integrate and coordinate organizational work. As a manager. Through planning.e. Planning reduces uncertainty. A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its interests. For the smooth functioning of the business it is very important to have reliable source of supply. Whatever activities are planned by the managers. 5. citizen action publics and local publics are some examples. PLANS According to Mondy.• • • Suppliers: The important force in the micro environment of a company is the suppliers i. Planning reduces overlapping and wasteful activities. Marketing: The marketing intermediaries are those firms aid the company in promoting.” Purposes of Planning. Planning reduces the impact of change.
Policies . It is a concise description of what the organization was formed to perform and provides the premises on which the organizational design and direction are built.5. and courtesy towards our clients. specific. Ford Motor Company :To become the world’s leading consumer company for automotive products and services. Strategies A strategy is an approach to identify the major outcomes around which the organization allocated its resources and prioritizes its efforts. Objectives of Planning: Vision A vision is a statement that describes the ideal state an organization wants to reach. vendors and society at large. e. Goals are expected to be timely. honesty. objectives help in monitoring the day to day activities and ensure the activities are progressing in the right direction. Clearly stated. vision is a concise descriptive phrase or slogan. Goals Goals state clearly the measurable and specific results to be accomplished by the organization and the timeframe to attain them. In short. Generally. Mission A mission statement describes the raison d’être or rationale of the organization. easily understandable to everyone. employees. it describes the ‘kind of an organization we want to become” e. attainable and rewarding. measurable. It is in the form of strategic.g. Infosys Technologies Limited :To achieve our objectives in an environment of fairness. It invigorates and induces the employees to strive toward that ideal. tactical and operational plans by following which an organization strives to accomplish the objectives. When should the action be completed?.g.
e. objectives provide nucleus to the planning process. Moreover objectives focus the attention of managers on the end results to be achieved. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. Planning premises are the assumptions about the lively shape of events in future. objectives should be stated in quantitative terms. A procedure is a prescribed series of related steps to be taken under certain recurring circumstances. 2) Well established and formalized procedures are often called standard operating procedures (SOPs). g. As a matter of fact. Hence objectives should be practical. f. workable and achievable 3. objectives should be stated in a clear. wages given. day in and dayout. Evaluating environment: Management surveys the external and internal environmental that have a bearing on the performance of the organization. 2. precise and unambiguous language. effectiveness of personnel manager. acceptable. The policies are only useful and effective when employees see them in action. They are derived from a consensus of the organization leadership and serve to identify what behaviors and attitudes are important to be built into the fabric of the day-today operation of the organization. etc. Procedures: Procedures are the detailed set of instructions for performing sequence of actions. c. For example. 1) Procedures are detained and inflexible. Establishment of objectives a. Number of men working. . Steps in Planning Function Planning function of management involves following steps:• • • • • • • Evaluating environment Establishment of objectives Establishing planning premises Choice of alternative course of action Formulation of derivative plan Securing Co-operation Followup 1. Planning requires a systematic approach. As far as possible. d. applied to everyone. Establishment of Planning Premises a.Policies are the guidelines that are in line with the strategies. Planning starts with the setting of goals and objectives to be achieved. But such an objective cannot be stated in quantitative terms like performance of quality control manager. Otherwise the activities undertaken are bound to be ineffective. units produced. policies are general. b. Therefore.
b. b. c. These detail plans include policies. After the plans have been determined. procedures. e. Securing Co-operation a. it is put into action. When forecast are available and premises are established. each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. After choosing a particular course of action. Also the employees will be more interested in the execution of these plans. Internal includes capital investment policy. For this purpose. Subordinates may feel motivated since they are involved in decision making process. d. f. Derivative plans indicate time schedule and sequence of accomplishing various tasks. 6. The purposes behind taking them into confidence are :1. Whereas external includes socio.4. e.economic. Formulation of derivative plans a. programmes. Planning premises may be internal or external. b. 5. Follow up/Appraisal of plans a. c. etc. . The merits. They serve as a basis of planning. 3. Choice of alternative course of action a. schedules. budgets. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. These are meant to support and expediate the achievement of basic plans. rules. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. b. the best alternative is chosen. management labour relations. c. g. political and economical changes. it is important to appraise its effectiveness. d. It is to find out what obstacles are there in the way of business during the course of operations. After objective and scientific evaluation. The planners should take help of various quantitative techniques to judge the stability of an alternative. For example. 7. Internal premises are controllable whereas external are non. Secondary plans will flow from the basic plan. d. a number of alternative course of actions have to be considered. 2. demerits as well as the consequences of each alternative must be examined before the choice is being made. derivative plans will include sales maximization. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. philosophy of management. and cost minimization. production maximization. it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. etc. if profit maximization is the main aim of the enterprise. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent.controllable. b. After the selected plan is implemented.
This enables the management to correct deviations or modify the plan. This step establishes a link between planning and controlling function. tactical. . • • • Types of Plans: Effective planning is essential at all levels of organizations to identify opportunities and avoid problems. f. d. Focus on forward thinking The planning function forces managers to think a head and consider resource needs and potential opportunities or threats that the organization may face in the future. Planning horizon is a key differentiation between strategic. and operational planning. An organization’s plan provides a foundation for control of the process and progress of the organization.c. Plan helps to define the responsibilities of individuals and work groups and helps coordinate their activities. Controls provide mechanism for ensuring that the organization is moving in the right direction and making progress toward achieve its goals. The follow up must go side by side the implementation of plans so that in the light of observations made. e. future plans can be made more realistic BENEFITS OF PLANNING • Better coordination Planning provides a foundation for the coordination of a broad range of organizational activities. This is done on the basis of feedback or information received from departments or persons concerned. It sets the direction for the other functions of management and for teamwork. More effective control system The implementation of the plan can be evaluate and progress toward the achievement of performance objectives can be monitored. Participatory work environment Successful planning requires the participation of a wide range of organizational members.
Tactical Plans: • Tactical planning turns strategy into reality. user needs. Project reviews.Strategic Plans: For strategic plans to be effective. Project budgets. alternative solutions. Preparation of project planning requires consideration of many issues such as existing environment. they deal with the day-to-day and week-to-week work routine. Generally. • Tactical planning deals primarily with the implementation phase of the planning process and have a 1-2 year time horizon. stated in measurable terms Identify activities required to accomplish the objectives Assign specific responsibilities to appropriate personnel Estimate the time required to accomplish activities Determine resources required to accomplish the activities Communicate and coordinate the above elements and complete the action plan. • It is aimed at achieving the tactical goals set by and for middle management. Operational Plans: • Operational Plans have a short-term focus and are set by and for lower-level managers. it is essential to develop: • • • • • • Clear result-oriented objectives. budget constraints and time-schedules. • The elements of tactical planning include Project plans. . It is usually tightly integrated with the annual budget process. available expertise. • The structure of operational planning is closely related to organizational structure. Monthly reports and Annual reports. team leaders usually assemble with a senior manager on a regular basis to share information. In a traditional hierarchical organization.
implementation. as well. It’s also important to identify the organization’s current objectives and strategies. The first step is identifying the organization’s current mission. organization’s resources Identifying strengths and weaknesses SWOT analysis formulating strategies implementing strategies Evaluating Results A. STRATEGIC PLANNING Definition: Long range planning focus on the organizing as a whole. Analyzing the External environment Identifying opportunities and threats. and strategies. 1. . which defines the purpose of the organization. Strategic Management Process: The strategic management process is an eight-step process that encompasses strategic planning. After analyzing the External environment Analyzing the Internal Environment factors i. Every organization needs a mission. It need managers to considers the organization as a total unit and ask themselves what must be done in along term to attain organizational goals. and strategies. What is the organization’s reason for being in business? 2.e. So a mechanism must be put in place to insure proper flow of communication. objectives. and evaluation. Strategic Management: Definition: The process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy. Identifying the organization’s current mission.• Additional periodic meetings are often required to coordinate efforts with other units in a process-oriented organization. objectives.
1. 1. Step 4 is analyzing the organization’s resources. 5. and resources that determine its competitive advantage. In light of the SWOT analysis. skills. In this internal analysis. Remember that culture is the organization’s personality. After analyzing the external environment. 1. 2. It’s important to analyze the environment because. Threats are negative external environmental factors. Step 2 is analyzing the external environment. The culture can also promote or hinder an organization’s strategic actions. weaknesses.B. . and threats. 4. 2. 3. A successful strategy is one that aligns well with the environment. capabilities. It brings together the internal and external analyses in order to identify a strategic niche the organization might exploit. Weaknesses are those activities the firm doesn’t do well or the resources it needs but doesn’t possess. D. c. b. managers are looking at the organization’s specific assets. One area that’s often overlooked in this step is an analysis of the organization’s culture and its strengths and weaknesses. However. The strength of the culture is a result of how much employees understand and support the shared values. managers need to assess what opportunities to exploit and what threats to avoid. Managers look for core competencies. a. the strong culture will make it more difficult to change. Opportunities are positive external environmental factors. Strengths are those activities the firm does well or the unique resources it controls. Step 3 The third step is identifying opportunities and threats. and work activities. d. This step is complete when managers have an accurate grasp of what is taking place in the external environment and are aware of important trends that might affect the organization. which are an organization’s major value creating skills. Strategic choices will also be influenced by the culture’s tolerance of risk and innovation and how performance is rewarded. no matter how large or powerful. to a large degree. 1. it defines management’s strategic options. This step forces managers to realize that every organization. The analysis in step 4 should lead to a clear assessment of the organization’s internal resources. 2. e. Step 5 is identifying strengths and weaknesses. managers need to reevaluate the organization’s current mission and objectives. C. 2. is constrained in some way by its resources and skills. opportunities. E. The merging of steps 3 and 5 results in a SWOT analysis. if needed. A strong culture should make it easy for managers to convey to employees the organization’s distinctive competencies. which is an analysis of an organization’s strengths.
SWOT analysis (For information) Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. and functional levels of the organization. Examples of such strengths include: • • • • • • patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks Weaknesses The absence of certain strengths may be viewed as a weakness. Some examples of such opportunities include: • an unfulfilled customer need . G.F. For example. The strategies must now be put into action. business. Take the case in which a firm has a large amount of manufacturing capacity. Strategies need to be established for the corporate. manager hopes to give the organization a competitive advantage. H. Step 6 is formulating strategies. Step 7 is implementing strategies. Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. In formulating strategies. While this capacity may be considered a strength that competitors do not share. Managers must evaluate the results to determine how effective their strategies have been and what corrections are necessary. Step 8 in the strategic management process is evaluating results. Strategies are only as good as their implementation. it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment. each of the following may be considered weaknesses: • • • • • • lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels In some cases. a weakness may be the flip side of a strength.
• • • arrival of new technologies loosening of regulations removal of international trade barriers Threats Changes in the external environmental also may present threats to the firm. Some examples of such threats include: • • • • shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers SWOT / TOWS Matrix Strengths Weaknesses Opportunities S-O strategies W-O strategies Threats S-T strategies W-T strategies • • • • S-O strategies pursue opportunities that are a good fit to the company's strengths. W-O strategies overcome weaknesses to pursue opportunities. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. .
money and declining value of additional information. A manager’s task is getting as many facts as possible about a decision within the limits and the ability to process them.Decision Making Definition: Decision-making is defined as the process of choosing a course of action for dealing with a problem or opportunity. . Steps in Decision making: Identifying and analysis of managerial objectives: Objectives constitute the basis for rational decision-making. Developing alternative courses of action: Search for alternatives may be constrained by time. They set the direction for the means of managerial decisionmaking. Attainment of the objective is the fundamental measure of decision success.
An increased number of alternatives can be developed. Disagreements may delay decisions and cause hard feelings. Choosing a preferred course of action: The choice is the culmination of the process and the best choice is likely to result from the right approach. Programmed and Non Programmed Decisions: Programmed decisions are those made in routine. Alternatives are evaluated using criteria derived from the objective. Individual and group decisions Some advantages of group decision making include Groups bring more diverse information and knowledge to bear on the question under consideration. well-structured situations through the use of predetermined decision rules. Group decision making is more time consuming. Members develop knowledge and skill for future use. Group decision making has several disadvantages when compared to individual decision making. Unacceptable variance from standard performance should elicit timely and appropriate corrective action. Implementing the preferred course of action: Essentially. Routine and strategic Decisions(Same points) 4. Greater understanding and acceptance of the final decision are likely. Evaluating alternatives: Alternatives result from the search and there are usually three to five alternatives. Major decisions are taken by top level management. Require detailed analysis of problem while minor one doesn’t require much detailed analysis these are based on routine analysis or policies. Evaluating the results as a follow up: Performance is measured by observing the implemented decision in relation to its standard derived from the objective. . The discussion may be dominated by one or a few group members. Computers are an ideal tool for dealing with several kinds of complex programmed decisions. repetitive. The choice should be the alternative that is most likely to result in the attainment of the objective. Groupthink is the tendency in cohesive groups to seeks agreement about an issue at the expense of realistically appraising the situation. Major and Minor Decisions Major decisions are required judgement and deliberation while minor one are routine. decision effectiveness is a function of decision quality and decision implementation. Many programmed decisions are derived from established practices and procedures or habit. 2. Types of Decisions: 1. 3. Non-programmed decisions are those for which predetermined decision rules are impractical because the situations are novel and/or ill-structured. Most of the decisions made by first-line managers and many by middle managers are Programmed decisions. repetitive and simple.
the first satisfactory alternative is chosen rather than the best alternative. Maximin: This stands for “maximize the minimums. For many small decisions. However. exploring as many alternatives as possible. Maximax: This stands for “maximize the maximums. 4. Described as the strategy of the optimist. the worst possible outcome of each decision is considered and the decision with the highest minimum is chosen. How thoroughly optimizing can be done is contingent upon: • Importance of the problem • Time available for solving it • Cost involved with alternative solutions • Availability of resources. Organizational and personal decisions 6. Risk is the possibility that a chosen action could lead to losses rather than the intended results. which tie to wear. “Quick but wrong Decisions or Delayed but right decisions” It’s quite obvious that no one wants to take wrong decisions but sometimes there are situations where decisions has to take under pressure. take an offensive approach—look ahead and consider various potential eventualities. what to drink. you will have already thought through a number of different scenarios and your thinking will be faster. the decisions might make. Decisions as per Situation: Certainty is a situation in which a manager can make accurate decisions because the outcome of every alternative is known. 3. the satisficing strategy is perfect. Satisficing: The word satisficing is derived from satisfactory and sufficient. when the go-for-broke philosophy is reigning freely. A rapidly changing environment is a major cause of uncertainty. and so on. Long term and short term Decisions 7. that of the pessimist. Uncertainty is seen as the reason why situation is risky. Departmental interdepartmental and enterprise decisions. even if one do not encounter the exact situation. a. which pen to use. this isn’t characteristic of most managerial decisions. clearer. b. By doing this. Uncertainty is a condition in which the decision maker chooses a course of action without complete knowledge of the consequences that will follow implementation. If a job might require to make decisions under pressure. In this strategy. knowledge • Personal psychology.” In this strategy. The Maximin orientation is good when the consequences of a failed decision are particularly harmful or undesirable. Why Decision making is vital for management? 1.” This strategy focuses on evaluating and then choosing the alternatives based on their maximum possible payoff. It is a good strategy for use when risk taking is most acceptable.5. values 2. such as where to park. and more . Decision-making situations differ according to the types of problems that must be handled. the favourable outcomes and high potentials are the areas of concern. Optimizing: Optimizing implies the selection of the best possible solution to the problem. and their likely outcomes.
A go-ahead is given only when required elements are in place. marketing planning. require a medium-to-long time . strategic planning. f. time is often a luxury they cannot afford. it is natural to worry about making a “bad” or “wrong” decision. often have high development costs d. In the workplace. Quantitative forecasting methods: a. Forecasting is important to both planning and decision making. have a medium-to-long time horizon b. inventory control. 2. require a short period of time if a method is developed c. people are often expected to make good decisions in a very short space of time. sales analysis. Forecasting Definition: It is a process of estimating future based on the analysis of past and present behavior. Most people prefer to have sufficient time to analyze a situation and consider the alternatives. Hence it will totally depend on how the situation is. 1. are low in accuracy in predicting turning points for time series. Technological forecasting methods: a. It prevents one from making a decision at the wrong time or before all the facts are known. whatever decision is required. are high in accuracy in identifying patterns e. In a high-pressure situation. Are difficult to understand 2. Delayed but right decisions Such decisions are put on hold till the decision–makers feel that the time is right. It may. Forecasting is the process of predicting changing conditions and future events that may significantly affect the business of an organization. and purchasing among others. have a short-to-medium time horizon b. When an important decision must be made in a high-pressure situation. planning. but medium for other methods. Forecasting is used in a variety of areas such as: production planning. budgeting. logistics. Types of Forecasting: 1.readily accessible. at times result into forgoing of opportunities in the market that needs fast action. however.
Organizing Organizing as a structure: “Organizing is a function by which the concern is able to define the role positions. a forecast for a particular item. inventory control. 1. are of medium-to-high accuracy in identifying patterns e. record keeping. are of medium accuracy in predicting turning points f. Judgmental forecasting methods: a. etc. grouping and assigning the activities to be performed to attain a specific objective. This organization of . and/or distributors regarding the sales outlook. as a group.ordination between authority and responsibility. All these activities have to be grouped and classified into units. Judgmental forecasting methods are highly susceptible to bias.” Organizing as a process: “It is a process of determining.” Organizing function with the help of following steps:1. are of medium accuracy in identifying patterns e. require a short time c. are easily understood. It is a means of forecasting in which organization executives hold a meeting and estimate. are of low accuracy in predicting turning points f. the manager tries to combine and group similar and related activities into units or departments.c. Identification of activities . the jobs related and the co. Departmentally organizing the activities . arranging. have low development costs d. quality control. The jury of executive opinion is one of the two judgmental forecasting model. have a short-to-long time horizon b.All the activities which have to be performed in a concern have to be identified first. have medium development costs d. Judgmental Forecasting relies mainly on individual judgments or committee agreements regarding future conditions. The Sales-force composite is a means of forecasting that is used mainly to predict future sales and typically involves obtaining the views of various salespeople. 2. The Delphi method and Scenario analysis can be used as techniques. preparation of accounts. 3. For example. are easily understood. sales managers. 2. 3.In this step. making sales.
Individuals are grouped into departments and their work is coordinated and directed towards organizational goals. 4. Differentiated functions . in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working. In specialization. The clarification of authority helps in bringing efficiency in the running of a concern. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. organization is the composition of individual and groups. This helps in achieving efficiency in the running of a concern. Orientation towards goals Every organization has its own purposes and objectives. This helps in avoiding wastage of time. The top management is into formulation of policies. Thus. 3. money. Specialization improves efficiency. Classifying the authority . the manager likes to classify the powers and its extent to the managers.dividing the whole concern into independent units and departments is called departmentation. various activities are assigned to different people who are specialists in that area. A clear organizational structure is drawn and all the employees are made aware of it.Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. Organizing is the function employed to achieve the overall goals of the organization. effort. This activity of giving a rank in order to the managerial positions is called hierarchy.Once the departments are made. Co-ordination between authority and responsibility . Characteristics of Organization: Division of work or specialization The entire philosophy of organization depends on the concept of specialization. Composition of individuals and groups Individuals form a group and the groups form an organization. Thus. organization helps in division of work and assigning duties to different people. the middle level management into departmental supervision and lower level management into supervision of foremen. Organization harmonies the individual goals of the employees with overall objectives of the firm.
Principles of organizing: • • Departmentalization: is the clustering of individuals into units and units into departments and larger units in order to facilitate achieving organizational goals. or boss. accounting or quality control. Various organization distribute authority differently. Continues process An organization is a group of people with defined relationship to each other that allows them to work together achieve the goals of the organization.top manages make decision. This relationship do not come to end after completing a task. Span of control is the number of subordinates reporting to a supervisor. . Middle managers will be responsible for directing work. The span of control principle says there is a limit to the number of subordinates on superior should supervise. assigning to individuals/ work who are trained. • • • Specialization: Identifying specialized task. • Authority: Right to make decision and take actions. Responsibility Efficiency Flexibility Span of control: Number of subordinates who report directly to a given manager. communicate to lower managers. Span of control: Number of subordinates who report directly to a given manager. Decentralized organization – Greater decision making responsibility is given to lower level managers. Centralized organization. Standardization :Developing the procedures an organization uses to ensure employees • • • perform their tasks in uniform and consistent manner Coordination: Formal and informal procedures that integrates both managerial and employees activities.The organization divides the entire work and assigns the tasks to individual in-order to achieve the organizational objectives each one has to perform a different task and tasks of one individuals must be coordinated with the tasks of others. Organization is a never ending process. functional and first line usually supervise such as marketing. The exact numbers that can be effectively managed by a supervisor depends on certain factors. Job description detail the responsibilities and tasks associated with a given job.
Geographic continuity The closer subordinates are physically. obey -Tend to be bottleneck b’cos of the burden of managing subordinates. -Danger of superior’s loss control. Factors that influence the span of management Similarity of Functions If similarity of subordinates activities increase. the fewer individuals they can manage effectively. Coordination The greater the amount of time that must be spend on such coordination. - - - - Types of organization structure: Flat and steep Flat – Flat wide span of authority Steep/tallShort span of authority with many organizations levels. delegate clear policies. the more of them managers can supervise effectively. Complexity of Function The more difficult and involved the activities are. Planning The more time managers must spend on planning activities. Many levels costly excessive distance between the lowest and the highest level. Rapid communication between Subordinates must willing to subordinates and superior. Advantages Supervisors are forced to Close supervision and control. the more difficult it is to manage a large number of individuals effectively. the smaller span of management should be. Disadvantages . the span of management appropriate for the situation widens. -required Good managers Superior’s too involved with subordinates.- Job description detail the responsibilities and tasks associated with a given job.
Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates. employees are limited to their own sphere of work. Advantages : Close supervision and control Rapid communication between subordinates and superior. Danger of the superior’s loss control STEEP/Tall : Short span of authority with many organization levels. The tall structures are relatively expensive because of the number of managers involved.needed to handle situations. empowering employees at all levels of the organization to take personal responsibility for the processes and activities in which they are engaged. They create more communication problems because of the number of people through whom information must pass. They are open to a participative approach of management and encourage employees’ involvement in decision-making. FLAT: few organization levels with flat wide span of authority. Organic organizations have a flat structure with only one or two levels of management. They are structurally decentralized. The purpose of this structure is to create small and independent units that can quickly respond to the changing environment and times. . In a tall organizational structure. The top management wields significant control over employees. Flat structures are is relatively flexible.
with some jobs grouped into departments by functions and other grouped by products/ project/ programme or markets. There are four major patterns of departmentalization. The functional structure groups jobs into units based upon similarity of expertise. . Narrow Span (a great number of time spent Wide span (very little time spent with with subordinates) subordinates) • Little or no training of subordinates • Thorough training of subordinates • Inadequate or unclear authority • Clear delegation and well-defined tasks delegation • Unclear plans for nonrepetitive • Well-defined plans for repetitive operations operations • Nonverifiable objectives and standards • Verifiable used as standards • Fast change in external and internal • Slow changes in external and internal environments environments • Use of poor or inappropriate • Use of appropriate techniques. skills. 2. HR. accounting. A. An organization design is an overall pattern of departmentalization. The matrix structure superimposes a horizontal set of divisional reporting relationships onto a hierarchical functional structure. and work activities. 1. D. including proper organization structure and vague instructions written and oral communication • Ineffective interaction of supervisor and • Effective interaction between subordinate supervisor and subordinate • Ineffective meetings • Greater number of specialists at upper level (top managers concerned with • Greater number of specialists at lower external environment) and middle levels • Competent and trained manager • Incompetent and untrained manager • Simple task • Complex task • Subordinates’ willingness to assume • Subordinates’ unwillingness to assume responsibility and reasonable risks responsibility and reasonable risks • Mature subordinates. • Immature subordinates Departmentalization: Departmentalization is the clustering of individuals into units and of units into departments and larger units in order to facilitate achieving organizational goals. such as communication techniques. This again classified as • Product divisions • Geographical divisions • Customer • Process C.Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level.g. e. The hybrid structure combines aspects of both the functional and divisional forms. The divisional structure groups jobs into units according to the similarity of products/ project/ programme or markets. Admin B.
men’s clothing. and children’s clothing. women’s clothing. functional departmentalization allows for more precise working of facilities. Functional: Grouping jobs by functions performed Departmentalization by function organizes by the functions to be performed. • Advantages Efficiencies from putting together similar specialties and people with common skills. and orientations Coordination within functional area In-depth specialization • Disadvantages Poor communication across functional areas Limited view of organizational goals B. appliances. Functional departmentalization improves efficiencies by putting together similar specialty and people with common skills. Divisional structure Divisional structures are also called “self-contained structures” because each division contains the major functional resources it needs to pursue its own goals with little or no reliance on other divisions. and orientations. Also. Product: Grouping jobs by product line Departmentalization by product assembles all functions needed to make and market a particular product are placed under one executive.A. . The functions reflect the nature of the business. For instance. knowledge. major department stores are structured around product groups such as home accessories.
marketing these functions are repeating ) • Limited view of organizational goals Geographical: Grouping jobs on the basis of territory or geography • • Advantages • More effective and efficient handling of specific regional issues that arise • Serve needs of unique geographic markets better Disadvantages • Duplication of functions • Can feel isolated from other organizational areas Process: Grouping jobs on the basis of product or customer flow Departmentalization by process groups jobs on the basis of product or customer flow where work activities follow a natural processing flow of products or even customers.Advantages: • Allows specialization in particular products and services • Managers can become experts in their industry • Closer to customers Disadvantages: • Duplication of functions(means accounting. . production.
b. a. Functional departments are created to take advantage of resource utilization efficiencies. . or markets/ community. economies of scale. Hybrid structure 1. services.Advantages: More efficient flow of work activities Disadvantages: Can only be used with certain types of products Customer: Grouping jobs by type of customer and needs Advantages: Customers’ needs and problems can be met by specialists Disadvantages: • Duplication of functions • Limited view of organizational goals C. Hybrid structures are adopted by large organizations to gain the advantages of functional and divisional structures. Divisional departments are usually created to benefit from a stronger focus on project / products. or in-depth expertise.
Corporate and divisional goals can be aligned. Specialized expertise and economies of scale can be achieved in major functional areas. There may be a slow response to exceptional situations requiring coordination between a division and a corporate functional department. The organization requires functional expertise and/or efficiency. Matrix structure An organization with a matrix structure has a functional and a divisional structure at the same time. . b. geographic areas.” thus. c. c. D. Organizations that adopt a matrix structure usually go through several identifiable structural stages.• Advantages a. The organization faces environmental uncertainty best met by a divisional structure. The organization has sufficient resources to justify the structure. Employees who work in a matrix organization report to two “bosses. • Disadvantages a. The hybrid structure is best used under particular conditions. the unity-ofcommand principle are violated. Adaptability and flexibility may be achieved in handling diverse product or service lines. Conflict may arise between departments and divisions. Hybrid organizations tend to develop excessively large staffs in the corporate-level functional departments. or customers. b.
Functional specialists can be added to or resigned to projects as needed. usually a functional structure. Third. e. and a modest administrative facility. Lines of authority and responsibility may not be clear to individual employees. Stage 2 is a temporary overlay in which managerial integrator positions are created to handle issues of finite duration that involves coordinating across functional departments. d. Responses to environmental changes are quickly made. b. a very small staff. Possibilities of conflict are increased. Reactions to change may be slowed if interpersonal skills are lacking or top management fights for control. leading to gross inefficiency. All decisions may become group decisions. virtual organization entails the development of relationships with a broad range of potential partners. Stage 4 is a mature matrix. each having a particular competency that complements the others. Support systems can be allocated to projects as needed. • Advantages a. First. virtual organizing capitalizes on the mobility and responsiveness of telecommunications to overcome problems of distance. c. Second. in which matrix bosses have equal power. There are four key characteristics of virtual organization as process. with actors using .Stage 1 is a traditional structure. Environmental monitoring is improved. d. Stage 3 is a permanent overlay in which the managerial integrator positions become permanent. Individuals can become preoccupied wit internal relations at the expense of clients and project goals. Decision making can be decentralized. Organizational Design for the 21st Century(For information) Virtual Organizations have typically only a handful of permanent employees. timing is a key aspect of relationships. which follows the unity-ofcommand principle. c. f. e. • Disadvantages a. f. Horizontal coordination is strengthened. Administrative costs are increased. b.
DELEGATION: b) 4. Authority: The right to perform a command and make decision with respect to work assignments and to require subordinates to perform assigned tasks in accordance with the decision made. Last. Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. Each employee and each superior should know Job suppose to accomplish Duties Authority His supervisor Subordinates Levels of performance Authority is a type of power. there must be trust between actors separated in space for virtual organization to be effective. Authority is delegate from top.8 .responsiveness and availability to decide between alternatives. Types of authority a) Line authority A manager is responsible for the work of his unit and its direct contributions to the objectives of the organization. It is legitimate.
4. Superior delegate authority to subordinates in order to facilitate work being accomplished - Responsibility. - Steps of delegation: Delegation is the downward flow of formal authority . A clear line of authority will make it easier for organization members to understand. increase employee motivation. The Scalar principle: Members of the organization should know where they stand in the chain of command. Responsibility 2. Accountability. The delegation process has five phases: (1) preparing. create sense of belonging and improve interpersonal relations with employees. Unity of command. - Accountability. . Authority .Right to make decisions. (3) discussing. (4) auditing. To whom they can delegate Who can delegate To whom they are accountable Unity of command Each employee should report to only one superior. Basic consideration in delegation are: 1. (2) planning. Shared decision making can improve the quality and acceptance of decisions.Obligation to perform any assigned duties.from superior to subordinate. and (5) appreciating. Indicate there must be clear line of authority from the highest to the lowest level of organization. The Scalar principles 5. . Enable individual to know to whom they are accountable and whose instruction they must follow.The process of transforming the responsibility for a specific activity or task to another member of the organization. carry out actions and direct others in matter related to the duties and goals of a position.Requirement to provide satisfactory reasons for significant deviation from duties or expected results. Authority 3.
3. and deciding who should accomplish it. and ways to avoid or deal with these obstacles. 3. 4.1. managers are found unwilling to delegate authority and many subordinates are found unwilling to accept it. 2. Discussing includes reviewing the objectives of the task as well as the subordinate’s plan of action. Helps to create organizational structure. Planning is meeting with the chosen subordinate to describe the task and to ask the subordinate to devise a plan of action. Appreciating is accepting the completed task and acknowledging the subordinate’s efforts. Provides managers to opportunity to accomplish more complicated. 5. any potential obstacles. 4. BENEFITS OF DELEGATION 1. Leads to speedup and better decision making. Barriers to Effective Delegation: In spite of several advantages. Preparing includes establishing the objectives of the delegation. difficult or important tasks. 2. The reasons for this unwillingness on both sides are as under: On the managers’ side. specifying the task that needs to be accomplished. the reluctance to delegate may be due to the following reasons: . Leads to a more involved and empowered workforce. 5. Provides opportunity for employee to develop analytical and problem solving skills. Auditing is monitoring the progress of the delegation and making adjustments in response to unforeseen problems.
Guidelines for Overcoming Weak Delegation: The following practical guides will facilitate successful delegation: Define the assignment and delegate authority in light of results expected. The ‘I can do it better myself’ fallacy. You need to specify what those parameters are so the individual knows. Lack of confidence in subordinates.Fear of loss of power. You’re delegating authority to act on certain issues and on those issues. how do you go about it? The following summarizes the primary steps you need to take: Clarify the assignment: The place to begin is to determine what is to be delegated and to whom? You need to identify the person most capable of doing the task and then determine if he or she has the time and motivation to do the job. Assuming you’re willing and able individual. the range of his or her discretion. with certain parameters. On subordinates’ side: They may refuse to accept authority because of their fear of criticisms by their managers in case they commit mistakes in decision-making. They may lack self-confidence and initiatives and this may also be the cause for them unwilling to accept it. Fear of being exposed. Specify the delegate’s range of discretion: Every act of delegation comes with constraints. it is your responsibility to provide clear information on what is being delegated. Maintain the open lines of communication. Establish proper controls. the result you expect and any time or performance expectations you hold. Difficulty in briefing. Allow the delegates to participate: . Select the person in light of the jobs to be done. They may avoid accepting any authority because there are no positive personal gains to them for assuming extra responsibility. They may avoid accepting any authority if they feel that they lack adequate information and responsibility to help them discharge their duties properly. Reward effective delegation and successful assumption of authority How Authority is delegated? (For information) If you’re a manager and want to delegate some of your authority to someone else. in no uncertain terms.
On the other hand. .One of the best sources of determining how much authority will be necessary to accomplish a task is the person who will be held accountable for that task. whereas. The relative degree of centralization or decentralization depends on some underlying factors. agree on a specific time for completion of the task and the set progress dates when the employee will report back on how well he or she is doing and any major problem that have surfaced. For instance. not absolute. Departmentation is a function/example of decentralization. If you allow employees to participate in determining what is delegated. Inform others that delegation has occurred: Delegation should not take place in vacuum. Not only you and the delegate need to know specially what has been delegated and how much authority has been grated but anyone else who may be affected by the delegation act also needs to be informed. organizations will be relatively centralized or relatively decentralized. Decentralization is the process of systematically delegate power and authority throughout the organization to middle and lower-level managers. decentralization refers to granting of decision-making by management to lower level employees. then it will be difficult to create formal organization. Centralization is the process of systematically retaining power and authority in the hands of higher –level managers Centralization is defined as the relative retention of decision-making authority by top-level management. nor could they do so if all decisions were delegated to the lowest level of the organization. and the standards by which they will be judged. Rather. Few organizations could function effectively if all decisions were made only by a select group of top managers. You increase employee motivation. if an organization centralizes all its power and authority. What we mean by this is that an organization is never completely centralized or decentralized. Establish feedback controls: The establishment of controls to monitor the employees’ progress increases the likelihood that important problems will be identified early and that the task will be completed on time and to the desired specifications. how much authority is needed to get the job done. Centralization VS Decentralization: Centralization and decentralization are two very important concept of managing. Centralization-decentralization is a relative. If an organization is cent percent decentralized then the existence of the top-level executives will be cease to exist. satisfaction and accountability for performance. concept. Let us define the two terminologies: Decentralization is the tendency to disperse decision-making authority in an organization structure. No organization is cent percent centralized or cent percent decentralized.
c. d. MORE CENTRALIZATION MORE DECENTRALIZATION • Environment is more stable • Environment is complex. b. c. e. Disadvantages : • Each section may not have standard procedure. Top managers have a broader perspective on decision situations. Top managers can concentrate upon major issues. Organizations should move toward a decentralized structure when: a) The organization is so large that top managers do not have the time or the knowledge to make all the major decisions. • More reporting and inspection may be needed than if the control were centralized. The jobs of lower-level employees are enriched by the challenge of making decisions. Relatively independent units emerge as divisions. Strong leadership is promoted. It is easier to coordinate the activities of various units and individuals. d. Individuals at lower levels may be closer to the problem and may be in a better position to make good decisions. Top managers have more experience and may therefore make better decisions. e. Duplication of effort by various organizational units can be avoided. Decisions can be made faster. b) Operations are geographically dispersed. with more easily measured outputs. Centralization advantages a. b. . Decentralization advantages a. uncertain • Lower-level managers are not as • Lower-level managers are capable or capable or experienced at making experienced at making decisions decisions • Lower-level managers want a voice in • Lower-level managers do not want to decisions have a say in decisions • Decisions are relatively minor • Decisions are more significant • Corporate culture is more open to • Organization is facing a crisis or the allowing managers to have a say in risk of company failure what happens • Company is large • Company is geographically dispersed • Effective implementation of company • Effective implementation of company strategies depends on managers strategies depends on managers having retaining more say over what happens more involvement and flexibility to make decisions.FACTORS INFLUENCING THE AMOUNT OF CENTRALIZATIONDECENTRALIZATION .
An organic organization. Mechanistic organization thus is defined as a rigid and bureaucratic form of design most appropriate for stable environments. Free from uncertainty.g. Thus an organic organization is a fluid and flexible design most appropriate for unstable and unpredictable environments. The manager has to not only set the vision and strategy but also hire the people to achieve them. ---------------------------------------------------------------------------------------------------------- Mechanistic and Organic Organization: (For information) A mechanistic organization is most frequently found in stable environments. on the other hand. interview. Authority and responsibility : For performing the work properly it is essential that everybody must know his task or duty. Therefore. The manager will in turn may entrust the production to one executive. Staffing Staffing is critical to improve the quality and performance of employees at all levels of an organization. Mechanistic organizations are also quite similar in nature to bureaucracies. d) The environment is increasingly uncertain. general manager of the factory having 3 plants may transfer the sole charge of each plant to each manager.c) Top managers cannot keep up with complex technology. General managers task or duty must first be clearly defined. it should be a strategic priority for the manager. in which constant change and uncertainty usually dictate higher level of fluidity and flexibility. and centralized authority. maintenance to second. is most often found in unstable and unpredictable environments. who then transfer certain duties to his delegates e. power or authority and responsibilitry. organizations structure their activities in rather predictable ways by means of rules. and hire new . accounting to other and so on. A staffing system is defined as a model and a process for those who recruit. purchase to third. screen. specialized jobs.
Simulations. (2) Determining the qualifications and competencies (3) Filling the position. . Once the right candidate is hired. When properly designed and implemented. skills and abilities. Written Tests. The next step in the staffing process is to decide what qualifications are needed to do the job. save time and resources. A well designed staffing system : • Helps in hiring the right people. both the current and future business needs of your organization. For most positions qualifications include competencies. The staffing process generally involves at least four steps.employees. education. Work Samples. • Limits liability. job descriptions and job specifications around measurable criteria related to ideal performance behaviors. In most cases a combination of methods will be used. • Helps to improve benchmarking throughout the organization. Physical Tests and Past Work Performance. Job specifications outline the knowledge. training and experience. you can ensure the availability of staff for the work that needs to be done – for now. By choosing options that can. • Supports management development. and for the future. he or she is trained in skills needed for efficiently handling the job. Some of the most common are: Oral Interviews. involving the development of a position description. • Creates consistency in hiring decisions throughout the organization. to the greatest extent possible. knowledge. There are many methods of assessment and any valid predictor of the applicant’s job performance may be chosen. These four steps are: (1) Defining the job. it leads manager through the hiring process from start to finish. skill and abilities required of the incumbent. (4) training. Role-plays and Case Studies (for improving interpersonal relations skills or group decision-making) and onthejob and vestibule training (to facilitate learning physical skills through practice and actual use of tools). Staffing Process The best staffing option is the one that takes into consideration. in the long run. which involves screening applicants and selecting an individual. Defining the job involves developing job analysis. Job description outlines the expectations and skill requirements of a job. • Reduces costs of the hiring process. Job analysis is benchmarking basic task and skill requirements for a job. Common training methods are Lectures. Qualifications are the attributes or accomplishments determined to be essential for the competent performance of a job.
Selection 3. HUMAN RESOURCE PLANNING Step in providing Human Resource 1.MANAGING HUMAN RESOURCE Definition: Refers to the individuals within the organization who make valuable contribution to the management system. Performance appraisal RECRUITING The process of finding qualified applications . Recruitment 2. Training 4.
tools Materials and form Used working condition Job Specification Education Experience Training Physical effort Physical skill Communication skill 6. 5. 3. Qualification needed to successfully perform a particular job. employees can be narrow intelligently.1 1. 2. 4. Job analysis Job description Job specification JOB ANALYSIS Job Description Job title Location Job summary Duties Machine.- Must begin with the understanding of the position to be filled so the broad range of potential Techniques used to gain the understanding are: Process for collecting information on the important work related aspect of the job Description of the basic tasks. 6. duties and responsibilities of an employee holding a particular job. Major source of Potential Job Candidates Internal search Advertisement Employee Referrals Employment agencies University placement Job fair SELECTION .
The process of screening job applicants to ensure that the most appropriate candidates are hired.Design to convey specific technical. Simulation Exercise Vestibule training . Sample Off the Job Training Methods Classroom Lectures Films and .Learning a job by actually performing the work. . interpersonal or problem solving skills.Provides good exposure to a variety of tasks. group interaction. Sample on the job training methods Job Rotation: .Learning tasks on the same equipment that one actually will use on the job but in a simulated work environment. . Sample on the job training methods 1.Employee work at different job . 2 types of employee training methods: 1.Provide support and encouragement experience workers from 2. .To demonstrate technical skills that are not easily to videos presented by other training methods.May include case analysis. role play.Working with coach/mentor . TYPES OF SELECTION DEVICE a) Application form b) Written test c) Interview d) Background investigation e) Physical examination TRAINING Is the process of developing qualities in human resource that will enable them to be more productive and thus to contribute more to organizational goal attainable. Understudy Assignment: . .
. 3. employees and coworkers. attitudes. skills. b) Employee Comparison Rank employees according to job performance.PERFORMANCE APPRAISAL . Provide a systematic judgment to support salary increase. initiative etc.Form Essay Write down particular good or bad performance. 360 Degree Methods that utilizes feedback from supervisor.A judgmental process of the job performance of employees.The process of assessing how well employees are doing their job. Useful basis for the coaching and counseling of individuals by superiors. Importance of Performance Appraisal 1. value to organization etc. c) d) Critical. 2. Leading . job knowledge etc. promotion and transfers. Telling subordinates how they are doing and to suggest needed changes in behavior. . Methods Of Performance Appraisal a) Rating skill Use a form containing several employee qualities and characteristics to be evaluated such as leadership.A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well to provide documentation to support those decisions.
Group maintenance/ social function.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling. Task related/ problem solving function. Importance to organization 1) 2) 3) 4) Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work.employer and employees. Two aspects of leadership behavior : Leadership function Leadership styles LEADERSHIP FUNCTION: Leader considered to be effective when practices these functions: a. 4) About values – Moral. Help the group to operate smoothly. E. Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence. b. LEADERSHIP STYLES : . The process of directing human resource efforts toward organizational objectives Four important facts are: 1) 2) 3) Involves people. reward. referent.Definition: Process of directing and influencing the tasks related activities of group members to achieve goals. BEHAVIORAL THEORIES OF LEADERSHIP This theory is believe that people can learn the characteristic of a leader or people can be train to be a leader. expert power and legitimate power or authority. obligation and responsibilities towards employees. offering information. opinion. counseling.g suggesting solutions. E. An effective leader must performs both functions simultaneously.
they gather information about the state of the organization and communicate a new structure to them. organizing. that is. receiver. Respect the feeling of others Sensitive to other’s needs and mutual trust. encoding. Show high amount of consideration towards employee’s ideas and feelings. The sender’s mission is to translate internal thought patterns into words. 2. Employee oriented/ people centered. Characteristic of Manager: Warmth and has special rapport with subordinates. Encourage to participate in decision making. Develop trust and respect . they gather information. reports and newsletters. memos and reports. gestures or symbols that the intended receiver of the message will be likely to understand. When managers organize. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. Organizational communications cover every management function: planning. Discuss face to face meeting. . and feedback. This is the process of encoding. write letters. Task oriented function/ production centered. COMMUNICATION In organization – Disseminating of information through memos.Generate into two different leadership styles : 1. and then meet with other managers to explain the plan. medium. decoding. letters. Concerned to get the job done rather than the development of the employees. they communicate with subordinates to motivate them. to reach the desired receiver. Communication Process Communication is a linked social process of sender. pathways along which information travels. Concern on getting the job done to her / his satisfaction rather than develop or employee growth. leading and controlling. An encoded message is then ready to be transmitted over one or more channels of communication. Managers try motivate rather than control the employees. When managers perform the planning function. When managers lead.
g switch board Operator.g that course is full. From in which the message is.The receiver’s thought process on getting The message. . a) Vertical communication: Comm.g spoken English .g policies. Convey info to their superior. Any kind of interference which results in distortion. Person who receive the information. E. FORMAL ORGANIZATIONAL COMMUNICATION Information flows around organization whether or not they try to control it. procedures. Upward – through suggestion schemes or some other form of feedback to management. E. Information flow at the same level. b) \ Lateral communication Known as Horizontal communication.g incomplete information. The telephone The information itself as encoded by the sender. eg. E. rules. Interpretation. E. reporting work progress.In the form of instruction and information e. So that the receiver gets a different message from the one that was sent e. system in which messages / info move upwork and downward. Downward. suggestion box.Sender Encoding Medium Message Decoding Receiver Feedback Noise : : : : : : : : Person with information to communicate Ways in which the information is expressed.g I’m looking for a place on cad course. suggest ideas. The element of the receiver’s response which the receiver communicates to the sender. work schedules.
Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. Mass Communication Deals with public communication . Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication. Barriers to effective listening 1. Vertical b. internet etc) 4. 3. Information can be accurate/ inaccurate LEVEL OF COMMUNICATION 1. 5. 2. Group communication Relates to the interaction of people in a small groups.a. usually in decision making setting. Horizantal INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal. Received by or used by large number of people ( postal service. It can be very responsive to the change and they may refuse to listen. Poor listening Happen when employees are not allowed to participate in the decision making process and are not given a detailed explanation of rules and procedures to be implemented. .
age. ignore pass over or forget information. if the sender has low credibility the receiver may ignore the information. National culture Cultural differences can affect the way a manager chooses to communicate US tend to be individual rely on memoranda. 12. Selective perception When people selectively interpret what they see or hear on the basis of their interest. the information will get to receiver clearly. announcement and other formal forms of communication. jealousy. 5. Defensiveness Respond in ways to hide an effective communication when people feel that they’re being threatened 11. 4. hate. 3. 8. Jargon – specialized terminology or technical language.defensive. Credibility of a sender How trustworthy the sender or the source of the message. background. Filtering The deliberate manipulation of information to make it appear more favorable to the receiver. Japan – more interact to their subordinates and used a more informal manner. 13. Emotion How a receiver feels when a message is received influences they interprets it. fear. They tend to select out.. Use verbal consultation over on issues and draws up formal document to outline the agreement that was made. Noise Factor interferes. Often interpret the same message differently depending on whether you’re happy or distressed. OVERCOMING COMMUNICATION BARRIERS . anger. 9. experience and attitudes. confuse or disturb the messages from reaching the receiver.2. positive and acceptable to the receiver. Semantic Certain words may be interpreted differently by different people. education and cultural back ground are the most variable that influence the language of a person. 6. 7. Filtering Alteration of information to make it interesting. Credibility of the sender Associated with person’s feeling of love. embarrassment and enthusiasm. If the sender is known to be trustworthy . Language Words means different things to different people. Where else. 10. Information Overload The information we have to work with exceeds our processing capacity.
Obtain feedback Ask question. Motivation . 8. postures and gestures. 5. Listening is an active search of meaning Listening is more tiring than talking Be specific in giving orders Managers must precise and clear when giving directive. Use bias free language The receiver of messages can have a bias feeling when a biased term is used in the messages. rational and trust Instill an atmosphere of openness. 10. 6. 7.1. visit site. Use simple language Technical terms must be clearly explained Recognized emotions Empathy Do not make own conclusion Listen to all issues carefully Avoid noise Identify it cause or sources. Create openness. 11.Be specific c. repeat message. Send message in an effective way a. 3. 9.Use bias free language d. 12. clothes. Listen actively Listen for full meaning without premature judgment or interpretation. 4. Understand verbal and non. Modify language and use word appropriately We have to study audiences and their background. 2.Modify language and use words appropriate.Plan and clarify ideas before communicating b.verbal communication Facial expression. education level and position.
there are ten strategies to induce employee motivation and improve their work performance: (a) job security. water and sleep. and self. safety. Esteem needs are recognition and respect from others. safety. Security needs are essential for a safe physical and emotional environment. Understanding this relationship between motivation and behavior is the starting point for understanding the conditions for . The most predominant needs must be satisfied before the next higher level of needs can be addressed. Motivated employees are more productive. Performance is essentially a function of skill and motivation. motivation is induced by either internal or external stimuli. managers need to understand what motivates employees within the context of the roles they perform. Broadly. such as food. employees have five levels of needs: physiological. Belongingness needs are the desire for love and affection. Theories of Motivation: According to Maslow.Motivation is the key to performance improvement and the job of a manager is not just to get things done through the employees but to get things done more efficiently and quickly. (e) good working conditions. Motivation is a psychological process that gives behavior purpose and direction. and (j) full appreciation of work done. social acceptance and esteem. experience and training.actualizing. Self actualization needs are realizing one’s potential for personal growth and development. (f) tactful discipline. (h) promotions and growth in the organization. While skill is contingent upon education. (b) sympathetic help with personal problems. An unsatisfied need triggers a chain of events leading to actions. Physiological needs are biological needs necessary for basic survival. and leads him to some kind of behaviour in an attempt to satisfy the need. ego. (d) interesting work. (c) personal loyalty to employees. (i) feeling of being in things. although all people need food. Thus. (g) good wages. they must demand food first and more strongly than anything else. The need causes tension and stress within the employee. Maslow reasoned that lower level needs had to be satisfied before the next higher level need would motivate employees. social. To be effective. The pyramidal hierarchy is used to depict the different levels of importance of each need.
OR write in this manner 1. Self esteem needs It is also known as growth need. water. or need for personal “ belongingness”.g are love. need to love somebody as well as the need for social interaction.g food. E. E.g are respect from others. 5. Self – Actualization needs It comprises needs for the development of one’s full potential or the realization of one’s own potential. recognition. These are for our survival. Physiological needs These need are our basic needs. the five levels of need are not always present and ordinal importance of needs is not always the same. E.stimulating action on the part of subordinates. and shelter from environment Safety or security needs Deals with our physical and psychological safety from external threats. opportunities for advancement. freedom from coercion and a need for clearly defined regulations. 4. 3. achievement as well as prestige and status. Examples are job security. But. Social needs or “ Belongingness” Need for companionship. . It is a need for self-esteem and self growth. 2.
work environment. A manager’s task is to ensure that the hygiene factors are not deficient and do not hinder motivation. They are on a continuum that ranges from satisfaction to no satisfaction. recognition. interpersonal relations.Herzberg’s Two-Factor Theory According to Herzberg. an employee’s satisfaction and dissatisfaction is influenced by two independent sets of factors motivation factors and hygiene factors. Hygiene factors relate to work environment and include such aspects as supervisor’s attitude. Motivational factors relate to job context or work content and include such aspects as achievement. while providing employees the opportunity to experience increased motivational factors through the use of job enrichment and the redesign of jobs. responsibility and opportunities for advancement and growth. . He assumes that job satisfaction and job dissatisfaction are on two distinct continuums. pay and company policies. The criticism against TwoFactor Theory is that the assumption of job performance improving with satisfaction is weak and subsequent research does not uphold this contention. the work itself. They are on a separate continuum that ranges from dissatisfaction to no dissatisfaction.
where employees are allowed more participation. If performance is greater than or on par with the standards. freedom and responsibility in their work. Greater job autonomy and taskvariety is offered to employees. Managers of theory X view the employees in terms of the following characteristics: 1. Having to be pushed by managers to work. These managers in order to make sure that their employees do their work. Control is both anticipatory and retrospective. Frequently using imagination. Theory T is optimistic view. Here managers have a traditional or a pessimistic view of motivation with regard to employees. Inherently disliking work Avoiding work whenever possible Lacking in ambition Irresponsible Resistant to change Feeling that work is of secondary importance Preferring to be led than lead. comparing actual performance against the set standards and taking corrective or preventive action as necessary. preventive action becomes essential. 3. If performance is anticipated to be below set standards. Capable of directing themselves ( self direction) 4. 7. Capable of self –control 5.THEORY X AND THEORY Y (McGregor Theory) This theory was developed by Douglas McGregor. work is as natural as play or rest. ingenuity and creativity in accomplishing tasks. Willing to work. it might be necessary to alter the standards. To ensure high performance. 5. it is useful to reinforce behaviors that led to acceptable performance. Coercive power will be used. since work brings satisfaction. measuring actual performance. view their employees in terms of the following characteristics: 1. 2. If the gap between the standards and actual performance is huge. 6. Willing to accept responsibility. Theory Y managers. Theory Y manager will delegate the authority and allow employees to participate in decision making. management control can be an important element of a broader strategy to focus policymakers and those responsible for implementation on better . 2. Corrective action becomes necessary when performance is below standards. 4. 8. Controlling ‘Controlling’ is a process of establishing performance standards based on the organization’s objectives. 3. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. managers need only to apply the participative style of leadership. This theory describes the views or perception of managers with regard to their employees. In short.
Ideally. • Job descriptions: Job descriptions are a part of the control function since they pre-determine the activities. The following diagram illustrates the process of control. whereas implementing policy is a part of the control function. since policies are guidelines for future action. Setting policy is included in the planning function. everyone in the organization should view control as a responsibility rather than a needless onus thrust upon them. Establish Standards Control: Standards should be expressed in quantifiable terms and conform to organizational goals.defining specific policy objectives and on continuously improving their capacity to meet those objectives. and authority of the jobholder. responsibilities. . Change the performance standard if it was set too high or too low Essentials of Effective Control Systems To make control sytem effective there has to be a facilitation of and support of collaborative activity. Methods for Control • Policies: Policies are important means for implementing preliminary control. • Quality control of materials: The materials to be used in the project must conform to standards of quality. Compare Performance Against Standards: Ascertain what acceptable digression from the performance standard is and use the suitable schedule for measurement. Control standards should be explicit indices of performance. Measure Performance: Performance measures must be reasonable indices of performance. Determine the Need for Corrective Action: Ascertain whether to maintain the status quo or correct the deviation to bring activities into observance with the standard. Effective control systems have the following characteristics: • Acceptability (to those who enforce decisions) • Clarity (of objectives and performance standards) • Flexibility (to accommodate changes) • Accuracy (of targets and expected results) • Timeliness (of evaluation of functions) • Objectivity (to avoid bias and distortions) • Cost-effectiveness (in terms of implementation) .
• Graphic Charts and Diagrams: Project activities can be graphically displayed on charts. • Audit: A management audit is a study of the manner in which the project is being carried out. • Employee Performance Evaluation: The most important and difficult feedback control technique is employee performance evaluation. . These graphic displays provide a useful means of helping the staff to visualize the relationship of activities and the time needed to complete each operation. It is important because the most crucial resource in any organization is its people. It focuses primarily on efficiency and management considerations. A financial audit examines the fiscal aspects of the project. • Standard Cost Analysis: A standard cost system provides information that enables a manager to compare actual costs with pre-determined (standard) costs.• Budgets: The principal means of controlling the availability and cost (interest) of financial resources is budgeting. graphs and/or network diagrams. The manager must determine the reasons for the variances and decide what corrective action is appropriate.
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