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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
• • • •
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.
whether he is top manager or lower level manager. For the smooth functioning of the business it is very important to have reliable source of supply. there are several questions that need to be asked to realize the organization’s goals. PLANS According to Mondy. he has to plan. Who is responsible for doing what? 4.” Purposes of Planning. Planning “Planning is the process defining the organization’s goals..• • • Suppliers: The important force in the micro environment of a company is the suppliers i. citizen action publics and local publics are some examples. those who supply the inputs like raw materials and components to the company. What activities are required to accomplish the objectives? 2.e. As a manager. Planning reduces overlapping and wasteful activities. 6. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. selling. 5. Through planning. Where should the activities be carried out? . plans are statement of how objectives are to be accomplished. Planning gives direction to the organization. and developing a comprehensive set of plans to integrate and coordinate organizational work. 3. 2. Planning establishes objectives or standards that are used in controlling. 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. Planning reduces the impact of change. Whatever activities are planned by the managers. The marketing intermediaries include middlemen such as agents and merchants who “help the company find customers or close sales with them. Marketing: The marketing intermediaries are those firms aid the company in promoting. 1. Planning establishes a coordinated effort. 4. 1. Planning is important and serves many significant purposes. Media public. and distributing its goods to final buyers. Public: A company may encounter certain publics in its environment. Uncertainty regarding the supply or other supply problems will compel the companies to maintain high inventories which will cause increase in costs. When should these activities be carried out? 3. establishing an overall strategy for achieving these goals.
Goals are expected to be timely. e. it describes the ‘kind of an organization we want to become” e. vision is a concise descriptive phrase or slogan. When should the action be completed?. vendors and society at large. In short.g. It is in the form of strategic.g. easily understandable to everyone. and courtesy towards our clients. Ford Motor Company :To become the world’s leading consumer company for automotive products and services. Generally. attainable and rewarding. employees. specific. Mission A mission statement describes the raison d’être or rationale of the organization. Policies . measurable. Objectives of Planning: Vision A vision is a statement that describes the ideal state an organization wants to reach. 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. Goals Goals state clearly the measurable and specific results to be accomplished by the organization and the timeframe to attain them. Strategies A strategy is an approach to identify the major outcomes around which the organization allocated its resources and prioritizes its efforts. objectives help in monitoring the day to day activities and ensure the activities are progressing in the right direction.5. Clearly stated. Infosys Technologies Limited :To achieve our objectives in an environment of fairness. honesty. 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.
etc. A procedure is a prescribed series of related steps to be taken under certain recurring circumstances. 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. Hence objectives should be practical. units produced. wages given. e. policies are general. day in and dayout. g. 2) Well established and formalized procedures are often called standard operating procedures (SOPs). Planning starts with the setting of goals and objectives to be achieved. Number of men working. f. But such an objective cannot be stated in quantitative terms like performance of quality control manager. Moreover objectives focus the attention of managers on the end results to be achieved. acceptable. effectiveness of personnel manager. Otherwise the activities undertaken are bound to be ineffective. For example. As a matter of fact. objectives provide nucleus to the planning process. precise and unambiguous language. workable and achievable 3. Establishment of Planning Premises a. 1) Procedures are detained and inflexible.Policies are the guidelines that are in line with the strategies. Establishment of objectives a. objectives should be stated in a clear. c. 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. Procedures: Procedures are the detailed set of instructions for performing sequence of actions. Planning requires a systematic approach. 2. applied to everyone. d. As far as possible. Therefore. Evaluating environment: Management surveys the external and internal environmental that have a bearing on the performance of the organization. . Planning premises are the assumptions about the lively shape of events in future. objectives should be stated in quantitative terms. b. The policies are only useful and effective when employees see them in action. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts.
d. Secondary plans will flow from the basic plan. The purposes behind taking them into confidence are :1. 3. etc. 7. if profit maximization is the main aim of the enterprise. b. e. After the selected plan is implemented. etc. Derivative plans indicate time schedule and sequence of accomplishing various tasks. c. Securing Co-operation a. 6.economic. it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. These detail plans include policies. Subordinates may feel motivated since they are involved in decision making process. b. rules. programmes. The planners should take help of various quantitative techniques to judge the stability of an alternative. schedules. Internal premises are controllable whereas external are non. b. f. e. Internal includes capital investment policy. management labour relations. d. production maximization. and cost minimization. b. After objective and scientific evaluation. Planning premises may be internal or external. For example.4. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. philosophy of management. Formulation of derivative plans a.controllable. 5. These are meant to support and expediate the achievement of basic plans. a number of alternative course of actions have to be considered. it is important to appraise its effectiveness. each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. They serve as a basis of planning. g. procedures. Whereas external includes socio. Also the employees will be more interested in the execution of these plans. demerits as well as the consequences of each alternative must be examined before the choice is being made. b. It is to find out what obstacles are there in the way of business during the course of operations. When forecast are available and premises are established. derivative plans will include sales maximization. Follow up/Appraisal of plans a. d. After the plans have been determined. . political and economical changes. The merits. it is put into action. c. budgets. the best alternative is chosen. After choosing a particular course of action. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. For this purpose. c. Choice of alternative course of action a. 2.
tactical. Controls provide mechanism for ensuring that the organization is moving in the right direction and making progress toward achieve its goals. • • • Types of Plans: Effective planning is essential at all levels of organizations to identify opportunities and avoid problems. More effective control system The implementation of the plan can be evaluate and progress toward the achievement of performance objectives can be monitored. Planning horizon is a key differentiation between strategic. This enables the management to correct deviations or modify the plan. It sets the direction for the other functions of management and for teamwork. Plan helps to define the responsibilities of individuals and work groups and helps coordinate their activities. An organization’s plan provides a foundation for control of the process and progress of the organization. The follow up must go side by side the implementation of plans so that in the light of observations made. e. This is done on the basis of feedback or information received from departments or persons concerned. d. Participatory work environment Successful planning requires the participation of a wide range of organizational members. . and operational planning.c. f. 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. 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. This step establishes a link between planning and controlling function.
. team leaders usually assemble with a senior manager on a regular basis to share information. it is essential to develop: • • • • • • Clear result-oriented objectives. alternative solutions. • The structure of operational planning is closely related to organizational structure. available expertise. Project budgets. Preparation of project planning requires consideration of many issues such as existing environment. It is usually tightly integrated with the annual budget process. 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. • Tactical planning deals primarily with the implementation phase of the planning process and have a 1-2 year time horizon. Operational Plans: • Operational Plans have a short-term focus and are set by and for lower-level managers. Generally. Project reviews. Monthly reports and Annual reports. user needs. • The elements of tactical planning include Project plans.Strategic Plans: For strategic plans to be effective. Tactical Plans: • Tactical planning turns strategy into reality. budget constraints and time-schedules. • It is aimed at achieving the tactical goals set by and for middle management. they deal with the day-to-day and week-to-week work routine. In a traditional hierarchical organization.
So a mechanism must be put in place to insure proper flow of communication. It’s also important to identify the organization’s current objectives and strategies. implementation. Identifying the organization’s current mission. as well.• Additional periodic meetings are often required to coordinate efforts with other units in a process-oriented organization. . 1. STRATEGIC PLANNING Definition: Long range planning focus on the organizing as a whole. which defines the purpose of the organization. The first step is identifying the organization’s current mission. What is the organization’s reason for being in business? 2.e. and strategies. organization’s resources Identifying strengths and weaknesses SWOT analysis formulating strategies implementing strategies Evaluating Results A. Strategic Management: Definition: The process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy. Analyzing the External environment Identifying opportunities and threats. 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. After analyzing the External environment Analyzing the Internal Environment factors i. objectives. objectives. Strategic Management Process: The strategic management process is an eight-step process that encompasses strategic planning. and strategies. and evaluation.
3. The culture can also promote or hinder an organization’s strategic actions. managers need to assess what opportunities to exploit and what threats to avoid. 1. no matter how large or powerful. Managers look for core competencies. The analysis in step 4 should lead to a clear assessment of the organization’s internal resources. c. 2. and resources that determine its competitive advantage. A strong culture should make it easy for managers to convey to employees the organization’s distinctive competencies. Opportunities are positive external environmental factors. The merging of steps 3 and 5 results in a SWOT analysis. Step 5 is identifying strengths and weaknesses. C. managers need to reevaluate the organization’s current mission and objectives. a. 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. However. 2. The strength of the culture is a result of how much employees understand and support the shared values. if needed. which is an analysis of an organization’s strengths. 4. to a large degree. After analyzing the external environment. b. This step forces managers to realize that every organization. 1. . and work activities. Strategic choices will also be influenced by the culture’s tolerance of risk and innovation and how performance is rewarded. In this internal analysis. managers are looking at the organization’s specific assets. and threats. is constrained in some way by its resources and skills. E. It’s important to analyze the environment because. e. Step 3 The third step is identifying opportunities and threats. weaknesses. 1. 2. 1. opportunities. A successful strategy is one that aligns well with the environment. 5. One area that’s often overlooked in this step is an analysis of the organization’s culture and its strengths and weaknesses. It brings together the internal and external analyses in order to identify a strategic niche the organization might exploit. Remember that culture is the organization’s personality. In light of the SWOT analysis. the strong culture will make it more difficult to change. skills. Threats are negative external environmental factors. Weaknesses are those activities the firm doesn’t do well or the resources it needs but doesn’t possess. Step 2 is analyzing the external environment. it defines management’s strategic options. which are an organization’s major value creating skills. D. 2.B. d. capabilities. Step 4 is analyzing the organization’s resources. Strengths are those activities the firm does well or the unique resources it controls.
Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. Take the case in which a firm has a large amount of manufacturing capacity. 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. While this capacity may be considered a strength that competitors do not share. 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. Strategies need to be established for the corporate. Managers must evaluate the results to determine how effective their strategies have been and what corrections are necessary. Step 6 is formulating strategies. In formulating strategies. Strategies are only as good as their implementation. business. Some examples of such opportunities include: • an unfulfilled customer need . Step 7 is implementing strategies. G. a weakness may be the flip side of a strength. 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. Step 8 in the strategic management process is evaluating results.F. manager hopes to give the organization a competitive advantage. 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. For example. H. The strategies must now be put into action.
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. .• • • 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. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. 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.
They set the direction for the means of managerial decisionmaking.Decision Making Definition: Decision-making is defined as the process of choosing a course of action for dealing with a problem or opportunity. . Developing alternative courses of action: Search for alternatives may be constrained by time. Steps in Decision making: Identifying and analysis of managerial objectives: Objectives constitute the basis for rational decision-making. Attainment of the objective is the fundamental measure of decision success. 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.
Group decision making has several disadvantages when compared to individual decision making. . Programmed and Non Programmed Decisions: Programmed decisions are those made in routine. Most of the decisions made by first-line managers and many by middle managers are Programmed decisions. Evaluating the results as a follow up: Performance is measured by observing the implemented decision in relation to its standard derived from the objective. Members develop knowledge and skill for future use. Evaluating alternatives: Alternatives result from the search and there are usually three to five alternatives. Disagreements may delay decisions and cause hard feelings. Greater understanding and acceptance of the final decision are likely. 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. 3. repetitive. Non-programmed decisions are those for which predetermined decision rules are impractical because the situations are novel and/or ill-structured. The discussion may be dominated by one or a few group members. repetitive and simple. Routine and strategic Decisions(Same points) 4. An increased number of alternatives can be developed. Alternatives are evaluated using criteria derived from the objective. Unacceptable variance from standard performance should elicit timely and appropriate corrective action. 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. The choice should be the alternative that is most likely to result in the attainment of the objective. Require detailed analysis of problem while minor one doesn’t require much detailed analysis these are based on routine analysis or policies. Many programmed decisions are derived from established practices and procedures or habit. decision effectiveness is a function of decision quality and decision implementation. Groupthink is the tendency in cohesive groups to seeks agreement about an issue at the expense of realistically appraising the situation. Implementing the preferred course of action: Essentially. Computers are an ideal tool for dealing with several kinds of complex programmed decisions. Major and Minor Decisions Major decisions are required judgement and deliberation while minor one are routine. well-structured situations through the use of predetermined decision rules. Major decisions are taken by top level management. Types of Decisions: 1. Group decision making is more time consuming. 2.
“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. the favourable outcomes and high potentials are the areas of concern. A rapidly changing environment is a major cause of uncertainty. Uncertainty is a condition in which the decision maker chooses a course of action without complete knowledge of the consequences that will follow implementation. Optimizing: Optimizing implies the selection of the best possible solution to the problem. and their likely outcomes.” In this strategy. The Maximin orientation is good when the consequences of a failed decision are particularly harmful or undesirable. In this strategy. and so on. b. the worst possible outcome of each decision is considered and the decision with the highest minimum is chosen. this isn’t characteristic of most managerial decisions. and more . Satisficing: The word satisficing is derived from satisfactory and sufficient. even if one do not encounter the exact situation.” This strategy focuses on evaluating and then choosing the alternatives based on their maximum possible payoff. 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. you will have already thought through a number of different scenarios and your thinking will be faster. Long term and short term Decisions 7. Maximax: This stands for “maximize the maximums. Decision-making situations differ according to the types of problems that must be handled. Organizational and personal decisions 6. For many small decisions. By doing this. which pen to use. Decisions as per Situation: Certainty is a situation in which a manager can make accurate decisions because the outcome of every alternative is known. Uncertainty is seen as the reason why situation is risky. 4. which tie to wear. take an offensive approach—look ahead and consider various potential eventualities. the decisions might make. Risk is the possibility that a chosen action could lead to losses rather than the intended results. It is a good strategy for use when risk taking is most acceptable. Maximin: This stands for “maximize the minimums. 3. when the go-for-broke philosophy is reigning freely. values 2. such as where to park. that of the pessimist. Described as the strategy of the optimist. Why Decision making is vital for management? 1. a. knowledge • Personal psychology. However. the satisficing strategy is perfect. the first satisfactory alternative is chosen rather than the best alternative.5. what to drink. Departmental interdepartmental and enterprise decisions. exploring as many alternatives as possible. clearer. If a job might require to make decisions under pressure.
marketing planning. time is often a luxury they cannot afford. are high in accuracy in identifying patterns e. and purchasing among others. f. Quantitative forecasting methods: a. but medium for other methods. sales analysis. It may. have a medium-to-long time horizon b. Most people prefer to have sufficient time to analyze a situation and consider the alternatives. Delayed but right decisions Such decisions are put on hold till the decision–makers feel that the time is right. Forecasting is the process of predicting changing conditions and future events that may significantly affect the business of an organization. Forecasting is important to both planning and decision making. When an important decision must be made in a high-pressure situation.readily accessible. planning. whatever decision is required. Types of Forecasting: 1. 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. Forecasting is used in a variety of areas such as: production planning. strategic planning. have a short-to-medium time horizon b. require a medium-to-long time . inventory control. Technological forecasting methods: a. It prevents one from making a decision at the wrong time or before all the facts are known. however. budgeting. are low in accuracy in predicting turning points for time series. In a high-pressure situation. often have high development costs d. logistics. A go-ahead is given only when required elements are in place. at times result into forgoing of opportunities in the market that needs fast action. Hence it will totally depend on how the situation is. 1. Forecasting Definition: It is a process of estimating future based on the analysis of past and present behavior. it is natural to worry about making a “bad” or “wrong” decision. 2. In the workplace. Are difficult to understand 2.
have low development costs d. have a short-to-long time horizon b. are easily understood. 3.In this step. preparation of accounts. a forecast for a particular item. are of low accuracy in predicting turning points f. arranging. It is a means of forecasting in which organization executives hold a meeting and estimate. Identification of activities .” Organizing as a process: “It is a process of determining. Judgmental Forecasting relies mainly on individual judgments or committee agreements regarding future conditions. The Delphi method and Scenario analysis can be used as techniques. sales managers. the jobs related and the co. This organization of . For example. have medium development costs d. are of medium accuracy in predicting turning points f. grouping and assigning the activities to be performed to attain a specific objective. inventory control.All the activities which have to be performed in a concern have to be identified first. Judgmental forecasting methods: a. 2. Judgmental forecasting methods are highly susceptible to bias. etc.c. Organizing Organizing as a structure: “Organizing is a function by which the concern is able to define the role positions. All these activities have to be grouped and classified into units. as a group. 1. are of medium accuracy in identifying patterns e. 3. the manager tries to combine and group similar and related activities into units or departments. are easily understood.ordination between authority and responsibility. record keeping. 2. 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. are of medium-to-high accuracy in identifying patterns e. and/or distributors regarding the sales outlook.” Organizing function with the help of following steps:1. making sales. quality control. Departmentally organizing the activities . require a short time c. The jury of executive opinion is one of the two judgmental forecasting model.
money. This helps in achieving efficiency in the running of a concern. various activities are assigned to different people who are specialists in that area. The top management is into formulation of policies. effort. Classifying the authority . 4. This activity of giving a rank in order to the managerial positions is called hierarchy. Organizing is the function employed to achieve the overall goals of the organization. 3.dividing the whole concern into independent units and departments is called departmentation. This helps in avoiding wastage of time.Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. Specialization improves efficiency. A clear organizational structure is drawn and all the employees are made aware of it. the middle level management into departmental supervision and lower level management into supervision of foremen. Differentiated functions .Once the departments are made. Orientation towards goals Every organization has its own purposes and objectives. Characteristics of Organization: Division of work or specialization The entire philosophy of organization depends on the concept of specialization. Thus. In specialization. in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working. 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 harmonies the individual goals of the employees with overall objectives of the firm. Co-ordination between authority and responsibility . Individuals are grouped into departments and their work is coordinated and directed towards organizational goals. organization is the composition of individual and groups. The clarification of authority helps in bringing efficiency in the running of a concern. Composition of individuals and groups Individuals form a group and the groups form an organization. organization helps in division of work and assigning duties to different people. Thus. the manager likes to classify the powers and its extent to the managers.
. The span of control principle says there is a limit to the number of subordinates on superior should supervise. accounting or quality control. Middle managers will be responsible for directing work. The exact numbers that can be effectively managed by a supervisor depends on certain factors. 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. 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. Decentralized organization – Greater decision making responsibility is given to lower level managers.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. functional and first line usually supervise such as marketing. Organization is a never ending process. Span of control is the number of subordinates reporting to a supervisor. assigning to individuals/ work who are trained. This relationship do not come to end after completing a task. 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. communicate to lower managers. Job description detail the responsibilities and tasks associated with a given job. Centralized organization. Responsibility Efficiency Flexibility Span of control: Number of subordinates who report directly to a given manager. • • • Specialization: Identifying specialized task. or boss. Various organization distribute authority differently.top manages make decision. • Authority: Right to make decision and take actions. Span of control: Number of subordinates who report directly to a given manager.
the more difficult it is to manage a large number of individuals effectively. the more of them managers can supervise effectively. Planning The more time managers must spend on planning activities. obey -Tend to be bottleneck b’cos of the burden of managing subordinates. - - - - 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. Many levels costly excessive distance between the lowest and the highest level. Complexity of Function The more difficult and involved the activities are.- Job description detail the responsibilities and tasks associated with a given job. Rapid communication between Subordinates must willing to subordinates and superior. the smaller span of management should be. Geographic continuity The closer subordinates are physically. Disadvantages . Advantages Supervisors are forced to Close supervision and control. the span of management appropriate for the situation widens. Coordination The greater the amount of time that must be spend on such coordination. the fewer individuals they can manage effectively. -Danger of superior’s loss control. -required Good managers Superior’s too involved with subordinates. Factors that influence the span of management Similarity of Functions If similarity of subordinates activities increase.
The top management wields significant control over employees. empowering employees at all levels of the organization to take personal responsibility for the processes and activities in which they are engaged. Flat structures are is relatively flexible. Organic organizations have a flat structure with only one or two levels of management. They are structurally decentralized. They are open to a participative approach of management and encourage employees’ involvement in decision-making. In a tall organizational structure. employees are limited to their own sphere of work. . The purpose of this structure is to create small and independent units that can quickly respond to the changing environment and times. FLAT: few organization levels with flat wide span of authority. Danger of the superior’s loss control STEEP/Tall : Short span of authority with many organization levels. Advantages : Close supervision and control Rapid communication between subordinates and superior. They create more communication problems because of the number of people through whom information must pass.needed to handle situations. The tall structures are relatively expensive because of the number of managers involved. Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates.
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. An organization design is an overall pattern of departmentalization. The functional structure groups jobs into units based upon similarity of expertise. 2. accounting. Admin B.Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level. . The hybrid structure combines aspects of both the functional and divisional forms. HR. D. This again classified as • Product divisions • Geographical divisions • Customer • Process C. such as communication techniques. 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. 1.g. skills. The divisional structure groups jobs into units according to the similarity of products/ project/ programme or markets. There are four major patterns of departmentalization. • 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. A. with some jobs grouped into departments by functions and other grouped by products/ project/ programme or markets. The matrix structure superimposes a horizontal set of divisional reporting relationships onto a hierarchical functional structure. and work activities. e.
. 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. women’s clothing. major department stores are structured around product groups such as home accessories. Also.A. functional departmentalization allows for more precise working of facilities. knowledge. For instance. 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. • Advantages Efficiencies from putting together similar specialties and people with common skills. appliances. The functions reflect the nature of the business. and orientations Coordination within functional area In-depth specialization • Disadvantages Poor communication across functional areas Limited view of organizational goals B. men’s clothing. Functional: Grouping jobs by functions performed Departmentalization by function organizes by the functions to be performed. Functional departmentalization improves efficiencies by putting together similar specialty and people with common skills. and children’s clothing. and orientations.
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. 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.
Hybrid structures are adopted by large organizations to gain the advantages of functional and divisional structures. Hybrid structure 1. b. a. economies of scale. or in-depth expertise.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. Functional departments are created to take advantage of resource utilization efficiencies. . services. Divisional departments are usually created to benefit from a stronger focus on project / products. or markets/ community.
c. Employees who work in a matrix organization report to two “bosses. the unity-ofcommand principle are violated. geographic areas. Corporate and divisional goals can be aligned.” thus. Matrix structure An organization with a matrix structure has a functional and a divisional structure at the same time.• Advantages a. Specialized expertise and economies of scale can be achieved in major functional areas. The organization faces environmental uncertainty best met by a divisional structure. There may be a slow response to exceptional situations requiring coordination between a division and a corporate functional department. Hybrid organizations tend to develop excessively large staffs in the corporate-level functional departments. c. b. The organization has sufficient resources to justify the structure. Conflict may arise between departments and divisions. • Disadvantages a. . or customers. The hybrid structure is best used under particular conditions. b. The organization requires functional expertise and/or efficiency. Adaptability and flexibility may be achieved in handling diverse product or service lines. D. Organizations that adopt a matrix structure usually go through several identifiable structural stages.
c. Individuals can become preoccupied wit internal relations at the expense of clients and project goals. 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. Organizational Design for the 21st Century(For information) Virtual Organizations have typically only a handful of permanent employees. Environmental monitoring is improved. and a modest administrative facility. usually a functional structure. Support systems can be allocated to projects as needed. Administrative costs are increased. with actors using . Horizontal coordination is strengthened. e. Possibilities of conflict are increased.Stage 1 is a traditional structure. Stage 4 is a mature matrix. d. Decision making can be decentralized. • Advantages a. in which matrix bosses have equal power. e. Lines of authority and responsibility may not be clear to individual employees. Functional specialists can be added to or resigned to projects as needed. each having a particular competency that complements the others. which follows the unity-ofcommand principle. Third. b. Reactions to change may be slowed if interpersonal skills are lacking or top management fights for control. a very small staff. • Disadvantages a. c. timing is a key aspect of relationships. f. First. f. b. Stage 3 is a permanent overlay in which the managerial integrator positions become permanent. All decisions may become group decisions. leading to gross inefficiency. There are four key characteristics of virtual organization as process. virtual organizing capitalizes on the mobility and responsiveness of telecommunications to overcome problems of distance. Second. d. Responses to environmental changes are quickly made. virtual organization entails the development of relationships with a broad range of potential partners.
Last. there must be trust between actors separated in space for virtual organization to be effective.8 . 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. 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.responsiveness and availability to decide between alternatives. Authority is delegate from top. DELEGATION: b) 4. 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. Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. It is legitimate.
Unity of command. The Scalar principle: Members of the organization should know where they stand in the chain of command. Shared decision making can improve the quality and acceptance of decisions. and (5) appreciating. . Authority 3.Obligation to perform any assigned duties. 4. (2) planning. (3) discussing. Basic consideration in delegation are: 1. carry out actions and direct others in matter related to the duties and goals of a position. A clear line of authority will make it easier for organization members to understand. (4) auditing. Enable individual to know to whom they are accountable and whose instruction they must follow. To whom they can delegate Who can delegate To whom they are accountable Unity of command Each employee should report to only one superior.Right to make decisions. - Accountability. Superior delegate authority to subordinates in order to facilitate work being accomplished - Responsibility. Indicate there must be clear line of authority from the highest to the lowest level of organization. . Responsibility 2.The process of transforming the responsibility for a specific activity or task to another member of the organization. increase employee motivation.from superior to subordinate.Requirement to provide satisfactory reasons for significant deviation from duties or expected results. Authority . Accountability. The Scalar principles 5. - Steps of delegation: Delegation is the downward flow of formal authority . The delegation process has five phases: (1) preparing. create sense of belonging and improve interpersonal relations with employees.
1. Discussing includes reviewing the objectives of the task as well as the subordinate’s plan of action. any potential obstacles. Preparing includes establishing the objectives of the delegation. Auditing is monitoring the progress of the delegation and making adjustments in response to unforeseen problems. 2. 4. specifying the task that needs to be accomplished. the reluctance to delegate may be due to the following reasons: . 3. BENEFITS OF DELEGATION 1. The reasons for this unwillingness on both sides are as under: On the managers’ side. and deciding who should accomplish it. 4. Barriers to Effective Delegation: In spite of several advantages. difficult or important tasks. Leads to speedup and better decision making. 5. and ways to avoid or deal with these obstacles. Provides managers to opportunity to accomplish more complicated. managers are found unwilling to delegate authority and many subordinates are found unwilling to accept it. Helps to create organizational structure. Provides opportunity for employee to develop analytical and problem solving skills. 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. 2. Leads to a more involved and empowered workforce. 3. 5.
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 avoid accepting any authority because there are no positive personal gains to them for assuming extra responsibility. Allow the delegates to participate: . Lack of confidence in subordinates. in no uncertain terms. Assuming you’re willing and able individual. They may avoid accepting any authority if they feel that they lack adequate information and responsibility to help them discharge their duties properly. Difficulty in briefing. it is your responsibility to provide clear information on what is being delegated.Fear of loss of power. They may lack self-confidence and initiatives and this may also be the cause for them unwilling to accept it. Maintain the open lines of communication. Specify the delegate’s range of discretion: Every act of delegation comes with constraints. Establish proper controls. Guidelines for Overcoming Weak Delegation: The following practical guides will facilitate successful delegation: Define the assignment and delegate authority in light of results expected. Select the person in light of the jobs to be done. 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. Fear of being exposed. the result you expect and any time or performance expectations you hold. You need to specify what those parameters are so the individual knows. The ‘I can do it better myself’ fallacy. the range of his or her discretion. with certain parameters. 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. You’re delegating authority to act on certain issues and on those issues.
not absolute. What we mean by this is that an organization is never completely centralized or decentralized. Few organizations could function effectively if all decisions were made only by a select group of top managers. how much authority is needed to get the job done. 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. If an organization is cent percent decentralized then the existence of the top-level executives will be cease to exist. nor could they do so if all decisions were delegated to the lowest level of the organization. Let us define the two terminologies: Decentralization is the tendency to disperse decision-making authority in an organization structure. For instance. whereas. and the standards by which they will be judged. 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. The relative degree of centralization or decentralization depends on some underlying factors. On the other hand. Centralization VS Decentralization: Centralization and decentralization are two very important concept of managing. Rather. satisfaction and accountability for performance. Decentralization is the process of systematically delegate power and authority throughout the organization to middle and lower-level managers. 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. Centralization-decentralization is a relative. Inform others that delegation has occurred: Delegation should not take place in vacuum. Departmentation is a function/example of decentralization. if an organization centralizes all its power and authority. organizations will be relatively centralized or relatively decentralized. No organization is cent percent centralized or cent percent decentralized. concept. decentralization refers to granting of decision-making by management to lower level employees. If you allow employees to participate in determining what is delegated. 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. You increase employee motivation. then it will be difficult to create formal organization.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. .
c. • More reporting and inspection may be needed than if the control were centralized. Duplication of effort by various organizational units can be avoided. e. 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. d. . b. Decentralization advantages a. with more easily measured outputs. Disadvantages : • Each section may not have standard procedure. Top managers have a broader perspective on decision situations. Top managers have more experience and may therefore make better decisions. 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. It is easier to coordinate the activities of various units and individuals. c. b. Individuals at lower levels may be closer to the problem and may be in a better position to make good decisions. Strong leadership is promoted. d. Decisions can be made faster. b) Operations are geographically dispersed. Relatively independent units emerge as divisions.FACTORS INFLUENCING THE AMOUNT OF CENTRALIZATIONDECENTRALIZATION . MORE CENTRALIZATION MORE DECENTRALIZATION • Environment is more stable • Environment is complex. Top managers can concentrate upon major issues. e. The jobs of lower-level employees are enriched by the challenge of making decisions. Centralization advantages a.
General managers task or duty must first be clearly defined. screen.g. organizations structure their activities in rather predictable ways by means of rules. The manager will in turn may entrust the production to one executive. Authority and responsibility : For performing the work properly it is essential that everybody must know his task or duty. A staffing system is defined as a model and a process for those who recruit. in which constant change and uncertainty usually dictate higher level of fluidity and flexibility. An organic organization. Thus an organic organization is a fluid and flexible design most appropriate for unstable and unpredictable environments. on the other hand. d) The environment is increasingly uncertain. and hire new . specialized jobs. power or authority and responsibilitry. Free from uncertainty. and centralized authority. The manager has to not only set the vision and strategy but also hire the people to achieve them. it should be a strategic priority for the manager. ---------------------------------------------------------------------------------------------------------- Mechanistic and Organic Organization: (For information) A mechanistic organization is most frequently found in stable environments. maintenance to second. is most often found in unstable and unpredictable environments. general manager of the factory having 3 plants may transfer the sole charge of each plant to each manager. Mechanistic organization thus is defined as a rigid and bureaucratic form of design most appropriate for stable environments. Staffing Staffing is critical to improve the quality and performance of employees at all levels of an organization. interview. Therefore. who then transfer certain duties to his delegates e. purchase to third.c) Top managers cannot keep up with complex technology. accounting to other and so on. Mechanistic organizations are also quite similar in nature to bureaucracies.
training and experience. Work Samples. both the current and future business needs of your organization. Some of the most common are: Oral Interviews. In most cases a combination of methods will be used. Job specifications outline the knowledge. (4) training. education. . When properly designed and implemented. job descriptions and job specifications around measurable criteria related to ideal performance behaviors. Simulations. involving the development of a position description. you can ensure the availability of staff for the work that needs to be done – for now. in the long run. A well designed staffing system : • Helps in hiring the right people. (2) Determining the qualifications and competencies (3) Filling the position. • Creates consistency in hiring decisions throughout the organization. • Limits liability. it leads manager through the hiring process from start to finish. Qualifications are the attributes or accomplishments determined to be essential for the competent performance of a job. The next step in the staffing process is to decide what qualifications are needed to do the job.employees. 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). • Supports management development. By choosing options that can. Defining the job involves developing job analysis. • Reduces costs of the hiring process. skill and abilities required of the incumbent. • Helps to improve benchmarking throughout the organization. The staffing process generally involves at least four steps. to the greatest extent possible. he or she is trained in skills needed for efficiently handling the job. and for the future. For most positions qualifications include competencies. save time and resources. skills and abilities. which involves screening applicants and selecting an individual. Written Tests. knowledge. Common training methods are Lectures. These four steps are: (1) Defining the job. Job analysis is benchmarking basic task and skill requirements for a job. Once the right candidate is hired. Physical Tests and Past Work Performance. Staffing Process The best staffing option is the one that takes into consideration. There are many methods of assessment and any valid predictor of the applicant’s job performance may be chosen. Job description outlines the expectations and skill requirements of a job.
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 . Training 4. Selection 3. Recruitment 2.
2. duties and responsibilities of an employee holding a particular job. 6. Job analysis Job description Job specification JOB ANALYSIS Job Description Job title Location Job summary Duties Machine. 4. tools Materials and form Used working condition Job Specification Education Experience Training Physical effort Physical skill Communication skill 6.- 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. 5.1 1. Major source of Potential Job Candidates Internal search Advertisement Employee Referrals Employment agencies University placement Job fair SELECTION . Qualification needed to successfully perform a particular job. employees can be narrow intelligently. 3.
Understudy Assignment: .Employee work at different job . Simulation Exercise Vestibule training . . group interaction. .Provides good exposure to a variety of tasks. Sample on the job training methods 1. interpersonal or problem solving skills. Sample on the job training methods Job Rotation: .May include case analysis. .Learning tasks on the same equipment that one actually will use on the job but in a simulated work environment.Provide support and encouragement experience workers from 2.The process of screening job applicants to ensure that the most appropriate candidates are hired.Working with coach/mentor . 2 types of employee training methods: 1.Design to convey specific technical. role play.To demonstrate technical skills that are not easily to videos presented by other training methods. Sample Off the Job Training Methods Classroom Lectures Films and . . 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.Learning a job by actually performing the work.
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. skills. attitudes. . Useful basis for the coaching and counseling of individuals by superiors. value to organization etc.A judgmental process of the job performance of employees. Provide a systematic judgment to support salary increase. Importance of Performance Appraisal 1.The process of assessing how well employees are doing their job. employees and coworkers. 360 Degree Methods that utilizes feedback from supervisor. b) Employee Comparison Rank employees according to job performance. c) d) Critical.PERFORMANCE APPRAISAL . . promotion and transfers. Methods Of Performance Appraisal a) Rating skill Use a form containing several employee qualities and characteristics to be evaluated such as leadership. Telling subordinates how they are doing and to suggest needed changes in behavior. job knowledge etc. 3. Leading . 2.Form Essay Write down particular good or bad performance. initiative etc.
E. The process of directing human resource efforts toward organizational objectives Four important facts are: 1) 2) 3) Involves people.g suggesting solutions. expert power and legitimate power or authority. b.Definition: Process of directing and influencing the tasks related activities of group members to achieve goals. Task related/ problem solving function. 4) About values – Moral. LEADERSHIP STYLES : . Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence.employer and employees. counseling. E. opinion. offering information. Group maintenance/ social function. Two aspects of leadership behavior : Leadership function Leadership styles LEADERSHIP FUNCTION: Leader considered to be effective when practices these functions: a. obligation and responsibilities towards employees. Help the group to operate smoothly. reward.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling. An effective leader must performs both functions simultaneously. 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. referent. Importance to organization 1) 2) 3) 4) Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work.
When managers lead. Encourage to participate in decision making. An encoded message is then ready to be transmitted over one or more channels of communication. COMMUNICATION In organization – Disseminating of information through memos. that is. . reports and newsletters. organizing. 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. Managers try motivate rather than control the employees. When managers perform the planning function. gestures or symbols that the intended receiver of the message will be likely to understand. encoding. medium. Organizational communications cover every management function: planning. 2. Characteristic of Manager: Warmth and has special rapport with subordinates. Concern on getting the job done to her / his satisfaction rather than develop or employee growth. and then meet with other managers to explain the plan. Develop trust and respect . decoding. The sender’s mission is to translate internal thought patterns into words. they gather information. Concerned to get the job done rather than the development of the employees. to reach the desired receiver. write letters. Show high amount of consideration towards employee’s ideas and feelings. receiver. pathways along which information travels. letters. and feedback. Task oriented function/ production centered. memos and reports. leading and controlling. they communicate with subordinates to motivate them. Respect the feeling of others Sensitive to other’s needs and mutual trust. they gather information about the state of the organization and communicate a new structure to them.Generate into two different leadership styles : 1. Employee oriented/ people centered. This is the process of encoding. Communication Process Communication is a linked social process of sender. Discuss face to face meeting.
.In the form of instruction and information e.g policies. b) \ Lateral communication Known as Horizontal communication.g spoken English . E.g incomplete information. Upward – through suggestion schemes or some other form of feedback to management. Convey info to their superior. suggestion box. The element of the receiver’s response which the receiver communicates to the sender. E. Information flow at the same level.g I’m looking for a place on cad course. E. E.g that course is full. FORMAL ORGANIZATIONAL COMMUNICATION Information flows around organization whether or not they try to control it. Downward.Sender Encoding Medium Message Decoding Receiver Feedback Noise : : : : : : : : Person with information to communicate Ways in which the information is expressed. So that the receiver gets a different message from the one that was sent e. work schedules. suggest ideas. eg. reporting work progress. From in which the message is. The telephone The information itself as encoded by the sender. a) Vertical communication: Comm.g switch board Operator. Any kind of interference which results in distortion. Interpretation.The receiver’s thought process on getting The message. Person who receive the information. procedures. system in which messages / info move upwork and downward. rules.
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. Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication. usually in decision making setting. Received by or used by large number of people ( postal service. 3. Group communication Relates to the interaction of people in a small groups. Barriers to effective listening 1. 2. . It can be very responsive to the change and they may refuse to listen. internet etc) 4. Mass Communication Deals with public communication . Horizantal INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal. Vertical b. Information can be accurate/ inaccurate LEVEL OF COMMUNICATION 1. Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. 5.a.
Emotion How a receiver feels when a message is received influences they interprets it. ignore pass over or forget information. Filtering The deliberate manipulation of information to make it appear more favorable to the receiver. education and cultural back ground are the most variable that influence the language of a person. jealousy. embarrassment and enthusiasm. announcement and other formal forms of communication. 12.2. 13. 4. Information Overload The information we have to work with exceeds our processing capacity. fear. Credibility of the sender Associated with person’s feeling of love.defensive. 6. 10. confuse or disturb the messages from reaching the receiver. Selective perception When people selectively interpret what they see or hear on the basis of their interest. 7. Language Words means different things to different people. experience and attitudes. Where else. They tend to select out.. Jargon – specialized terminology or technical language. background. if the sender has low credibility the receiver may ignore the information. Defensiveness Respond in ways to hide an effective communication when people feel that they’re being threatened 11. Semantic Certain words may be interpreted differently by different people. 8. Credibility of a sender How trustworthy the sender or the source of the message. OVERCOMING COMMUNICATION BARRIERS . Use verbal consultation over on issues and draws up formal document to outline the agreement that was made. hate. positive and acceptable to the receiver. 3. Japan – more interact to their subordinates and used a more informal manner. If the sender is known to be trustworthy . 9. Often interpret the same message differently depending on whether you’re happy or distressed. 5. anger. Noise Factor interferes. Filtering Alteration of information to make it interesting. the information will get to receiver clearly. National culture Cultural differences can affect the way a manager chooses to communicate US tend to be individual rely on memoranda. age.
Modify language and use word appropriately We have to study audiences and their background. 3.Plan and clarify ideas before communicating b. 12. 10. 9. Use bias free language The receiver of messages can have a bias feeling when a biased term is used in the messages. Understand verbal and non. 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. visit site.Be specific c. education level and position. 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.Modify language and use words appropriate. 4. 8. 7. repeat message. 6. rational and trust Instill an atmosphere of openness. postures and gestures.Use bias free language d. 2. 5. 11.verbal communication Facial expression.1. clothes. Motivation . Obtain feedback Ask question. Send message in an effective way a. Listen actively Listen for full meaning without premature judgment or interpretation. Create openness.
The need causes tension and stress within the employee. and leads him to some kind of behaviour in an attempt to satisfy the need.actualizing. While skill is contingent upon education. Maslow reasoned that lower level needs had to be satisfied before the next higher level need would motivate employees. experience and training. Theories of Motivation: According to Maslow. such as food. (b) sympathetic help with personal problems. To be effective. social. An unsatisfied need triggers a chain of events leading to actions. The most predominant needs must be satisfied before the next higher level of needs can be addressed. there are ten strategies to induce employee motivation and improve their work performance: (a) job security. employees have five levels of needs: physiological. The pyramidal hierarchy is used to depict the different levels of importance of each need. Broadly. water and sleep.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. managers need to understand what motivates employees within the context of the roles they perform. (g) good wages. Esteem needs are recognition and respect from others. (c) personal loyalty to employees. (f) tactful discipline. Thus. safety. (h) promotions and growth in the organization. ego. social acceptance and esteem. Understanding this relationship between motivation and behavior is the starting point for understanding the conditions for . Self actualization needs are realizing one’s potential for personal growth and development. (e) good working conditions. they must demand food first and more strongly than anything else. (d) interesting work. motivation is induced by either internal or external stimuli. Motivated employees are more productive. Physiological needs are biological needs necessary for basic survival. safety. Performance is essentially a function of skill and motivation. although all people need food. and self. (i) feeling of being in things. Belongingness needs are the desire for love and affection. and (j) full appreciation of work done. Motivation is a psychological process that gives behavior purpose and direction. Security needs are essential for a safe physical and emotional environment.
recognition. 3. Social needs or “ Belongingness” Need for companionship. E. Examples are job security. Self esteem needs It is also known as growth need. freedom from coercion and a need for clearly defined regulations. achievement as well as prestige and status. But. 2. or need for personal “ belongingness”.g are love. It is a need for self-esteem and self growth. 5. need to love somebody as well as the need for social interaction. Self – Actualization needs It comprises needs for the development of one’s full potential or the realization of one’s own potential. water. OR write in this manner 1. E. 4.g food. . Physiological needs These need are our basic needs.g are respect from others.stimulating action on the part of subordinates. opportunities for advancement. the five levels of need are not always present and ordinal importance of needs is not always the same. and shelter from environment Safety or security needs Deals with our physical and psychological safety from external threats. These are for our survival. E.
interpersonal relations. while providing employees the opportunity to experience increased motivational factors through the use of job enrichment and the redesign of jobs. 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. They are on a continuum that ranges from satisfaction to no satisfaction.Herzberg’s Two-Factor Theory According to Herzberg. . responsibility and opportunities for advancement and growth. Motivational factors relate to job context or work content and include such aspects as achievement. A manager’s task is to ensure that the hygiene factors are not deficient and do not hinder motivation. recognition. He assumes that job satisfaction and job dissatisfaction are on two distinct continuums. the work itself. work environment. an employee’s satisfaction and dissatisfaction is influenced by two independent sets of factors motivation factors and hygiene factors. pay and company policies. They are on a separate continuum that ranges from dissatisfaction to no dissatisfaction. Hygiene factors relate to work environment and include such aspects as supervisor’s attitude.
Managers of theory X view the employees in terms of the following characteristics: 1. managers need only to apply the participative style of leadership. In short. since work brings satisfaction. ingenuity and creativity in accomplishing tasks. it might be necessary to alter the standards. 2. To ensure high performance. If performance is anticipated to be below set standards. 2. Theory T is optimistic view. 3. 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. If the gap between the standards and actual performance is huge. freedom and responsibility in their work. This theory describes the views or perception of managers with regard to their employees. preventive action becomes essential. 3. 4. Corrective action becomes necessary when performance is below standards. Capable of self –control 5. Theory Y manager will delegate the authority and allow employees to participate in decision making. Capable of directing themselves ( self direction) 4. comparing actual performance against the set standards and taking corrective or preventive action as necessary. Frequently using imagination. measuring actual performance. Here managers have a traditional or a pessimistic view of motivation with regard to employees. work is as natural as play or rest. where employees are allowed more participation. Willing to accept responsibility. management control can be an important element of a broader strategy to focus policymakers and those responsible for implementation on better .THEORY X AND THEORY Y (McGregor Theory) This theory was developed by Douglas McGregor. Controlling ‘Controlling’ is a process of establishing performance standards based on the organization’s objectives. Theory Y managers. view their employees in terms of the following characteristics: 1. Willing to work. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. 5. Coercive power will be used. 8. These managers in order to make sure that their employees do their work. If performance is greater than or on par with the standards. Greater job autonomy and taskvariety is offered to employees. 7. 6. Having to be pushed by managers to work. it is useful to reinforce behaviors that led to acceptable performance. Control is both anticipatory and retrospective.
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) . whereas implementing policy is a part of the control function. Setting policy is included in the planning function. . since policies are guidelines for future action. The following diagram illustrates the process of control. everyone in the organization should view control as a responsibility rather than a needless onus thrust upon them. Ideally. Methods for Control • Policies: Policies are important means for implementing preliminary control. Establish Standards Control: Standards should be expressed in quantifiable terms and conform to organizational goals. Control standards should be explicit indices of performance. • Job descriptions: Job descriptions are a part of the control function since they pre-determine the activities. responsibilities. 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.defining specific policy objectives and on continuously improving their capacity to meet those objectives. Measure Performance: Performance measures must be reasonable indices of performance. and authority of the jobholder. • 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. 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.
• Audit: A management audit is a study of the manner in which the project is being carried out. • Graphic Charts and Diagrams: Project activities can be graphically displayed on charts. . A financial audit examines the fiscal aspects of the project. graphs and/or network diagrams.• Budgets: The principal means of controlling the availability and cost (interest) of financial resources is budgeting. 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 focuses primarily on efficiency and management considerations. • Standard Cost Analysis: A standard cost system provides information that enables a manager to compare actual costs with pre-determined (standard) costs. • Employee Performance Evaluation: The most important and difficult feedback control technique is employee performance evaluation. It is important because the most crucial resource in any organization is its people. The manager must determine the reasons for the variances and decide what corrective action is appropriate.
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