Management

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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

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 Selection of suitable candidates  Training ,induction and orientation programs  Promotion, Demotion, performance appraisal and compensation Leading/directing: Determining what needs to be done in a situation and getting people to do it. It involves Issuing orders and instructions, supervising subordinates at work, motivation, effective communication Coordination is the act of coordinating, making different people or things work together for a goal or effect. Controlling/Monitoring, checking progress against plans, which may need modification based on feedback.

Management is an art or science?
One of the enduring questions in the field of management is whether it is an art or a science. An art as "skill in conducting any human activity" and science as "any skill or technique that reflects a precise application of facts or a principle." Management – A science: 1. Management as a science would indicate that in practice, managers use a specific body of information and facts to guide their behaviors. 2. Science is a collection of systematic knowledge, collection of truths and interfeaces afer continuous study and experiments. The relationship between variables and limits are defined and the fundamental principles are discovered. 3. Science has got 3 specific characters:  It is the systematic and organized knowledge and based on the scientific methods and observations.  Interferences are arrived after continuous observation and experiments  It has logical principles which are well defined and universally applicable w/o any limitations.
4. Management principles have also evolved and it is changing day by day according to the

change in human behavior. Managers must study the way that workers perform their tasks and understand the job knowledge (formal and informal) that workers have, then find ways to improve how tasks are performed. 5. Managers must codify new methods of performing tasks into written work rules and standard operating procedures. 6. management as a science are likely to believe that there are ideal managerial practices for certain situations. That is, when faced with a managerial dilemma, the manager who believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to determine the correct course of action. This manager is likely to follow general principles and theories and also by creating and testing hypotheses. 7. E.g. if a manager has a problem with an employee's poor work performance, the manager will look to specific means of performance improvement, expecting that certain

principles will work in most situations. He or she may rely on concepts learned in business school or through a company training program when determining a course of action, perhaps paying less attention to political and social factors involved in the situation. Management – An Art:
1. Art uses the known rules and principles and uses the skill, expertise, wisdom,

perience to achieve the desired result. The point is how to get the things done in the desired manner to get the desired result. New methods can be adopted from past experience and incidents what to do and what not to do. Effective management is extracting voluntary cooperation from the staff. So it is definitely an art and it can be acquired only by practicing the theoretical knowledge skillfully. 2. These managers are likely to rely on the social and political environment surrounding the managerial issue, using their own knowledge of a situation, rather than generic rules, to determine a course of action. 3. E.g as a contrast to the example given previously, a manager who has a problem with an employee's poor work performance is likely to rely on his or her own experiences and judgment when addressing this issue. Rather than having a standard response to such a problem, this manager is likely to consider a broad range of social and political factors, and is likely to take different actions depending on the context of the problem. Thus management is a blend of art and science to more effectively cultivate managerial talent. This is evident in recent theories of management, research in workplaces, and education and development of managers.

Formation of the business policy
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The mission of the business is its most obvious purpose -- which may be, for example, to make soap. The vision of the business reflects its aspirations and specifies its intended direction or future destination. The objectives of the business refers to the ends or activity at which a certain task is aimed. The business's policy is a guide that specifies rules, regulations and objectives, and may be used in the managers' decision-making. It must be flexible and easily interpreted and understood by all employees. The business's strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the business's advantage. Initially, it could help the managers decide on what type of business they want to form.

MANAGEMENT SKILLS

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:
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.
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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:

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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.

For the smooth functioning of the business it is very important to have reliable source of supply. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. Where should the activities be carried out? .• • • Suppliers: The important force in the micro environment of a company is the suppliers i. Planning reduces uncertainty. those who supply the inputs like raw materials and components to the company. 1. The marketing intermediaries include middlemen such as agents and merchants who “help the company find customers or close sales with them. Public: A company may encounter certain publics in its environment. Planning “Planning is the process defining the organization’s goals. What activities are required to accomplish the objectives? 2.” Purposes of Planning. Planning is important and serves many significant purposes. establishing an overall strategy for achieving these goals. Planning establishes a coordinated effort. When should these activities be carried out? 3.. Marketing: The marketing intermediaries are those firms aid the company in promoting. selling. Who is responsible for doing what? 4. Through planning. PLANS According to Mondy. 5. citizen action publics and local publics are some examples. 4. Planning reduces the impact of change. and distributing its goods to final buyers. Planning reduces overlapping and wasteful activities. Planning establishes objectives or standards that are used in controlling. and developing a comprehensive set of plans to integrate and coordinate organizational work. 6. 1. 2. whether he is top manager or lower level manager. Whatever activities are planned by the managers. plans are statement of how objectives are to be accomplished. Media public. there are several questions that need to be asked to realize the organization’s goals.e. Planning gives direction to the organization. he has to plan. Uncertainty regarding the supply or other supply problems will compel the companies to maintain high inventories which will cause increase in costs. As a manager. A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its interests. 3.

g. It invigorates and induces the employees to strive toward that ideal. Mission A mission statement describes the raison d’être or rationale of the organization. Objectives of Planning: Vision A vision is a statement that describes the ideal state an organization wants to reach. Goals are expected to be timely. employees. specific. easily understandable to everyone. Goals Goals state clearly the measurable and specific results to be accomplished by the organization and the timeframe to attain them. In short. Ford Motor Company :To become the world’s leading consumer company for automotive products and services. Clearly stated. 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. and courtesy towards our clients. attainable and rewarding. vendors and society at large. honesty. measurable.g. Strategies A strategy is an approach to identify the major outcomes around which the organization allocated its resources and prioritizes its efforts. vision is a concise descriptive phrase or slogan.5. Generally. When should the action be completed?. it describes the ‘kind of an organization we want to become” e. e. Infosys Technologies Limited :To achieve our objectives in an environment of fairness. Policies . tactical and operational plans by following which an organization strives to accomplish the objectives. It is in the form of strategic. objectives help in monitoring the day to day activities and ensure the activities are progressing in the right direction.

workable and achievable 3. etc. Moreover objectives focus the attention of managers on the end results to be achieved. policies are general. . Planning requires a systematic approach. Otherwise the activities undertaken are bound to be ineffective. acceptable. 1) Procedures are detained and inflexible. b. Hence objectives should be practical. Planning starts with the setting of goals and objectives to be achieved. g. A procedure is a prescribed series of related steps to be taken under certain recurring circumstances. But such an objective cannot be stated in quantitative terms like performance of quality control manager. objectives should be stated in quantitative terms. f.Policies are the guidelines that are in line with the strategies. applied to everyone. units produced. 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. As far as possible. 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. Establishment of Planning Premises a. objectives should be stated in a clear. objectives provide nucleus to the planning process. d. day in and dayout. e. Therefore. As a matter of fact. c. Establishment of objectives a. effectiveness of personnel manager. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. precise and unambiguous language. 2. 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. 2) Well established and formalized procedures are often called standard operating procedures (SOPs). For example. The policies are only useful and effective when employees see them in action. Number of men working. wages given. Procedures: Procedures are the detailed set of instructions for performing sequence of actions.

After the selected plan is implemented. f. . the best alternative is chosen. philosophy of management. programmes. Internal includes capital investment policy. demerits as well as the consequences of each alternative must be examined before the choice is being made. if profit maximization is the main aim of the enterprise.controllable. These detail plans include policies. c. derivative plans will include sales maximization. e. d. Planning premises may be internal or external. etc. Follow up/Appraisal of plans a. Whereas external includes socio.4. Internal premises are controllable whereas external are non. c. After choosing a particular course of action. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent. management labour relations. it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. For this purpose. c. b. political and economical changes. Also the employees will be more interested in the execution of these plans. e. 6. each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. After the plans have been determined. it is put into action.economic. b. The planners should take help of various quantitative techniques to judge the stability of an alternative. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. Derivative plans indicate time schedule and sequence of accomplishing various tasks. b. 5. g. rules. d. schedules. Securing Co-operation a. budgets. The purposes behind taking them into confidence are :1. For example. These are meant to support and expediate the achievement of basic plans. procedures. It is to find out what obstacles are there in the way of business during the course of operations. Subordinates may feel motivated since they are involved in decision making process. b. Choice of alternative course of action a. d. b. Formulation of derivative plans a. The merits. it is important to appraise its effectiveness. and cost minimization. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. 7. After objective and scientific evaluation. production maximization. etc. 3. 2. a number of alternative course of actions have to be considered. Secondary plans will flow from the basic plan. When forecast are available and premises are established. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. They serve as a basis of planning.

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. Plan helps to define the responsibilities of individuals and work groups and helps coordinate their activities. More effective control system The implementation of the plan can be evaluate and progress toward the achievement of performance objectives can be monitored. tactical. The follow up must go side by side the implementation of plans so that in the light of observations made. This is done on the basis of feedback or information received from departments or persons concerned. e. This enables the management to correct deviations or modify the plan. It sets the direction for the other functions of management and for teamwork. d. Planning horizon is a key differentiation between strategic.c. This step establishes a link between planning and controlling function. and operational planning. • • • Types of Plans: Effective planning is essential at all levels of organizations to identify opportunities and avoid problems. f. Participatory work environment Successful planning requires the participation of a wide range of organizational members. An organization’s plan provides a foundation for control of the process and progress of the organization. . 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. Controls provide mechanism for ensuring that the organization is moving in the right direction and making progress toward achieve its goals.

Project reviews. • The structure of operational planning is closely related to organizational structure.Strategic Plans: For strategic plans to be effective. user needs. . team leaders usually assemble with a senior manager on a regular basis to share information. Tactical Plans: • Tactical planning turns strategy into reality. 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. • The elements of tactical planning include Project plans. Project budgets. Operational Plans: • Operational Plans have a short-term focus and are set by and for lower-level managers. alternative solutions. It is usually tightly integrated with the annual budget process. it is essential to develop: • • • • • • Clear result-oriented objectives. budget constraints and time-schedules. In a traditional hierarchical organization. they deal with the day-to-day and week-to-week work routine. available expertise. Generally. • It is aimed at achieving the tactical goals set by and for middle management. • Tactical planning deals primarily with the implementation phase of the planning process and have a 1-2 year time horizon. Monthly reports and Annual reports. Preparation of project planning requires consideration of many issues such as existing environment.

objectives. and strategies. implementation.• Additional periodic meetings are often required to coordinate efforts with other units in a process-oriented organization. and evaluation. What is the organization’s reason for being in business? 2. which defines the purpose of the organization. and strategies. objectives. 1. Strategic Management Process: The strategic management process is an eight-step process that encompasses strategic planning. The first step is identifying the organization’s current mission. It’s also important to identify the organization’s current objectives and strategies.e. So a mechanism must be put in place to insure proper flow of communication. organization’s resources  Identifying strengths and weaknesses  SWOT analysis  formulating strategies  implementing strategies  Evaluating Results A. as well. 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. .  Analyzing the External environment  Identifying opportunities and threats. Every organization needs a mission. After analyzing the External environment  Analyzing the Internal Environment factors i. Strategic Management: Definition: The process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.  Identifying the organization’s current mission. STRATEGIC PLANNING Definition: Long range planning focus on the organizing as a whole.

Threats are negative external environmental factors. This step forces managers to realize that every organization. D. Weaknesses are those activities the firm doesn’t do well or the resources it needs but doesn’t possess. e. managers are looking at the organization’s specific assets. The culture can also promote or hinder an organization’s strategic actions. The merging of steps 3 and 5 results in a SWOT analysis. 2. 1.B. It brings together the internal and external analyses in order to identify a strategic niche the organization might exploit. no matter how large or powerful. 2. Step 5 is identifying strengths and weaknesses. A successful strategy is one that aligns well with the environment. a. 2. and resources that determine its competitive advantage. In this internal analysis. In light of the SWOT analysis. Step 3 The third step is identifying opportunities and threats. to a large degree. However. 1. Strengths are those activities the firm does well or the unique resources it controls. 4. The analysis in step 4 should lead to a clear assessment of the organization’s internal resources. The strength of the culture is a result of how much employees understand and support the shared values. which are an organization’s major value creating skills. weaknesses. Step 4 is analyzing the organization’s resources. 3. it defines management’s strategic options. managers need to reevaluate the organization’s current mission and objectives. if needed. opportunities. E. b. Strategic choices will also be influenced by the culture’s tolerance of risk and innovation and how performance is rewarded. C. skills. Remember that culture is the organization’s personality. d. which is an analysis of an organization’s strengths. 2. 1. . After analyzing the external environment. and work activities. c. Opportunities are positive external environmental factors. It’s important to analyze the environment because. 1. Step 2 is analyzing the external environment. and threats. managers need to assess what opportunities to exploit and what threats to avoid. is constrained in some way by its resources and skills. the strong culture will make it more difficult to change. 5. One area that’s often overlooked in this step is an analysis of the organization’s culture and its strengths and weaknesses. Managers look for core competencies. capabilities. 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. A strong culture should make it easy for managers to convey to employees the organization’s distinctive competencies.

In formulating strategies. Managers must evaluate the results to determine how effective their strategies have been and what corrections are necessary. manager hopes to give the organization a competitive advantage. Step 6 is formulating strategies. and functional levels of the organization. Step 8 in the strategic management process is evaluating results. G. Strategies need to be established for the corporate. Step 7 is implementing strategies. Some examples of such opportunities include: • an unfulfilled customer need . H. For example. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share.F. 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. Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. 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. Strategies are only as good as their implementation. 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. a weakness may be the flip side of a strength. business. The strategies must now be put into action. 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.

. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats. W-O strategies overcome weaknesses to pursue opportunities. 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.• • • 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.

Attainment of the objective is the fundamental measure of decision success. Steps in Decision making:  Identifying and analysis of managerial objectives: Objectives constitute the basis for rational decision-making.Decision Making Definition: Decision-making is defined as the process of choosing a course of action for dealing with a problem or opportunity. 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. They set the direction for the means of managerial decisionmaking. .  Developing alternative courses of action: Search for alternatives may be constrained by time.

 Require detailed analysis of problem while minor one doesn’t require much detailed analysis these are based on routine analysis or policies. Types of Decisions: 1.  Members develop knowledge and skill for future use.  The discussion may be dominated by one or a few group members. Evaluating alternatives: Alternatives result from the search and there are usually three to five alternatives. Programmed and Non Programmed Decisions: Programmed decisions are those made in routine. The choice should be the alternative that is most likely to result in the attainment of the objective. Most of the decisions made by first-line managers and many by middle managers are Programmed decisions.  Major decisions are taken by top level management. Alternatives are evaluated using criteria derived from the objective. . decision effectiveness is a function of decision quality and decision implementation. 2.  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. 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.  Greater understanding and acceptance of the final decision are likely. repetitive. 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.  Evaluating the results as a follow up: Performance is measured by observing the implemented decision in relation to its standard derived from the objective. Routine and strategic Decisions(Same points) 4. Unacceptable variance from standard performance should elicit timely and appropriate corrective action. repetitive and simple. 3. Many programmed decisions are derived from established practices and procedures or habit.  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.  An increased number of alternatives can be developed. Non-programmed decisions are those for which predetermined decision rules are impractical because the situations are novel and/or ill-structured.  Group decision making is more time consuming.  Disagreements may delay decisions and cause hard feelings. Group decision making has several disadvantages when compared to individual decision making.

Optimizing: Optimizing implies the selection of the best possible solution to the problem. a.” In this strategy. and so on.5. However. 4. and more . even if one do not encounter the exact situation. b. and their likely outcomes. 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. By doing this. Organizational and personal decisions 6. take an offensive approach—look ahead and consider various potential eventualities. Maximax: This stands for “maximize the maximums. Described as the strategy of the optimist. which tie to wear. when the go-for-broke philosophy is reigning freely. Risk is the possibility that a chosen action could lead to losses rather than the intended results. Maximin: This stands for “maximize the minimums. In this strategy. clearer. you will have already thought through a number of different scenarios and your thinking will be faster. It is a good strategy for use when risk taking is most acceptable. Decision-making situations differ according to the types of problems that must be handled. Satisficing: The word satisficing is derived from satisfactory and sufficient. exploring as many alternatives as possible. that of the pessimist. which pen to use. the favourable outcomes and high potentials are the areas of concern. For many small decisions. Uncertainty is seen as the reason why situation is risky. this isn’t characteristic of most managerial decisions. values 2. what to drink. the first satisfactory alternative is chosen rather than the best alternative. Departmental interdepartmental and enterprise decisions. Uncertainty is a condition in which the decision maker chooses a course of action without complete knowledge of the consequences that will follow implementation. Decisions as per Situation: Certainty is a situation in which a manager can make accurate decisions because the outcome of every alternative is known. If a job might require to make decisions under pressure. knowledge • Personal psychology. such as where to park. the worst possible outcome of each decision is considered and the decision with the highest minimum is chosen. Long term and short term Decisions 7.” This strategy focuses on evaluating and then choosing the alternatives based on their maximum possible payoff. The Maximin orientation is good when the consequences of a failed decision are particularly harmful or undesirable. 3. Why Decision making is vital for management? 1. the decisions might make. the satisficing strategy is perfect. A rapidly changing environment is a major cause of uncertainty. “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.

In the workplace. it is natural to worry about making a “bad” or “wrong” decision. at times result into forgoing of opportunities in the market that needs fast action. have a medium-to-long time horizon b. and purchasing among others. whatever decision is required. 2. Technological forecasting methods: a. sales analysis. f. often have high development costs d. Forecasting Definition: It is a process of estimating future based on the analysis of past and present behavior. 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. Hence it will totally depend on how the situation is. marketing planning. people are often expected to make good decisions in a very short space of time. time is often a luxury they cannot afford. are high in accuracy in identifying patterns e. Are difficult to understand 2. strategic planning. inventory control. It may. Quantitative forecasting methods: a. require a medium-to-long time . In a high-pressure situation. It prevents one from making a decision at the wrong time or before all the facts are known.readily accessible. budgeting. Most people prefer to have sufficient time to analyze a situation and consider the alternatives. Forecasting is used in a variety of areas such as: production planning. but medium for other methods. planning. logistics. however. have a short-to-medium time horizon b. 1. Delayed but right decisions Such decisions are put on hold till the decision–makers feel that the time is right. A go-ahead is given only when required elements are in place. Types of Forecasting: 1. require a short period of time if a method is developed c. are low in accuracy in predicting turning points for time series.

Judgmental forecasting methods are highly susceptible to bias. Identification of activities . the manager tries to combine and group similar and related activities into units or departments. preparation of accounts. sales managers. and/or distributors regarding the sales outlook.ordination between authority and responsibility.c. The Delphi method and Scenario analysis can be used as techniques. are easily understood. 2. Departmentally organizing the activities . are of medium-to-high accuracy in identifying patterns e. All these activities have to be grouped and classified into units. are easily understood. etc. Judgmental forecasting methods: a. record keeping. arranging. as a group. 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. 1. It is a means of forecasting in which organization executives hold a meeting and estimate. a forecast for a particular item.” Organizing as a process: “It is a process of determining.In this step. quality control. The jury of executive opinion is one of the two judgmental forecasting model. are of medium accuracy in predicting turning points f. are of low accuracy in predicting turning points f. the jobs related and the co. 3. 3. have medium development costs d. making sales. For example.” Organizing function with the help of following steps:1. Judgmental Forecasting relies mainly on individual judgments or committee agreements regarding future conditions.All the activities which have to be performed in a concern have to be identified first. have low development costs d. This organization of . require a short time c. inventory control. are of medium accuracy in identifying patterns e. 2. grouping and assigning the activities to be performed to attain a specific objective. have a short-to-long time horizon b. Organizing Organizing as a structure: “Organizing is a function by which the concern is able to define the role positions.

Individuals are grouped into departments and their work is coordinated and directed towards organizational goals. 4. Thus. The top management is into formulation of policies. Co-ordination between authority and responsibility . Classifying the authority . effort. Organization harmonies the individual goals of the employees with overall objectives of the firm. organization is the composition of individual and groups. This helps in avoiding wastage of time. A clear organizational structure is drawn and all the employees are made aware of it. Organizing is the function employed to achieve the overall goals of the organization. Characteristics of Organization: Division of work or specialization The entire philosophy of organization depends on the concept of specialization. 3.Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working. This activity of giving a rank in order to the managerial positions is called hierarchy. the manager likes to classify the powers and its extent to the managers. Composition of individuals and groups Individuals form a group and the groups form an organization. Thus. money. Orientation towards goals Every organization has its own purposes and objectives. In specialization.Once the departments are made. various activities are assigned to different people who are specialists in that area. Specialization improves efficiency. The clarification of authority helps in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. the middle level management into departmental supervision and lower level management into supervision of foremen. organization helps in division of work and assigning duties to different people.dividing the whole concern into independent units and departments is called departmentation. Differentiated functions . 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.

Job description detail the responsibilities and tasks associated with a given job. assigning to individuals/ work who are trained. Standardization :Developing the procedures an organization uses to ensure employees • • • perform their tasks in uniform and consistent manner Coordination: Formal and informal procedures that integrates both managerial and employees activities. The exact numbers that can be effectively managed by a supervisor depends on certain factors.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. Middle managers will be responsible for directing work. • • • Specialization: Identifying specialized task. communicate to lower managers. Decentralized organization – Greater decision making responsibility is given to lower level managers. 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. functional and first line usually supervise such as marketing. or boss. The span of control principle says there is a limit to the number of subordinates on superior should supervise. • Authority: Right to make decision and take actions. . Organization is a never ending process. Centralized organization.top manages make decision. Span of control: Number of subordinates who report directly to a given manager. Responsibility Efficiency Flexibility Span of control: Number of subordinates who report directly to a given manager. Span of control is the number of subordinates reporting to a supervisor. 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. This relationship do not come to end after completing a task. accounting or quality control. Various organization distribute authority differently.

Advantages Supervisors are forced to Close supervision and control.- Job description detail the responsibilities and tasks associated with a given job. Many levels costly excessive distance between the lowest and the highest level. Complexity of Function The more difficult and involved the activities are. Coordination The greater the amount of time that must be spend on such coordination. - - - - Types of organization structure: Flat and steep Flat – Flat wide span of authority Steep/tallShort span of authority with many organizations levels. the more difficult it is to manage a large number of individuals effectively. obey -Tend to be bottleneck b’cos of the burden of managing subordinates. Geographic continuity The closer subordinates are physically. Rapid communication between Subordinates must willing to subordinates and superior. Disadvantages . Planning The more time managers must spend on planning activities. the span of management appropriate for the situation widens. the more of them managers can supervise effectively. the smaller span of management should be. delegate clear policies. -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. -Danger of superior’s loss control. the fewer individuals they can manage effectively.

They are open to a participative approach of management and encourage employees’ involvement in decision-making. employees are limited to their own sphere of work. Danger of the superior’s loss control STEEP/Tall : Short span of authority with many organization levels. Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates. In a tall organizational structure.needed to handle situations. FLAT: few organization levels with flat wide span of authority. They create more communication problems because of the number of people through whom information must pass. Flat structures are is relatively flexible. Advantages : Close supervision and control Rapid communication between subordinates and superior. They are structurally decentralized. The tall structures are relatively expensive because of the number of managers involved. The purpose of this structure is to create small and independent units that can quickly respond to the changing environment and times. empowering employees at all levels of the organization to take personal responsibility for the processes and activities in which they are engaged. Organic organizations have a flat structure with only one or two levels of management. The top management wields significant control over employees. .

D. 1.g. 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. such as communication techniques. An organization design is an overall pattern of departmentalization. The hybrid structure combines aspects of both the functional and divisional forms. • 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. with some jobs grouped into departments by functions and other grouped by products/ project/ programme or markets. accounting. This again classified as • Product divisions • Geographical divisions • Customer • Process C. The functional structure groups jobs into units based upon similarity of expertise.Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level. Admin B. The divisional structure groups jobs into units according to the similarity of products/ project/ programme or markets. and work activities. e. skills. 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. . HR. A. The matrix structure superimposes a horizontal set of divisional reporting relationships onto a hierarchical functional structure. 2. There are four major patterns of departmentalization.

major department stores are structured around product groups such as home accessories. women’s clothing. and orientations. appliances. For instance. The functions reflect the nature of the business. Divisional structure Divisional structures are also called “self-contained structures” because each division contains the major functional resources it needs to pursue its own goals with little or no reliance on other divisions. and orientations  Coordination within functional area  In-depth specialization • Disadvantages  Poor communication across functional areas  Limited view of organizational goals B. functional departmentalization allows for more precise working of facilities.  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. Also. Functional: Grouping jobs by functions performed Departmentalization by function organizes by the functions to be performed. men’s clothing. . Functional departmentalization improves efficiencies by putting together similar specialty and people with common skills.A. • Advantages  Efficiencies from putting together similar specialties and people with common skills. and children’s clothing. knowledge.

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.

economies of scale. Divisional departments are usually created to benefit from a stronger focus on project / products. or markets/ community. . b.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. or in-depth expertise. Hybrid structures are adopted by large organizations to gain the advantages of functional and divisional structures. Functional departments are created to take advantage of resource utilization efficiencies. Hybrid structure 1. a. services.

Specialized expertise and economies of scale can be achieved in major functional areas. b. the unity-ofcommand principle are violated. • Disadvantages a. The hybrid structure is best used under particular conditions. The organization requires functional expertise and/or efficiency. The organization faces environmental uncertainty best met by a divisional structure. c. Hybrid organizations tend to develop excessively large staffs in the corporate-level functional departments. Organizations that adopt a matrix structure usually go through several identifiable structural stages. Corporate and divisional goals can be aligned. . geographic areas. There may be a slow response to exceptional situations requiring coordination between a division and a corporate functional department.” thus. D. b.• Advantages a. The organization has sufficient resources to justify the structure. Matrix structure An organization with a matrix structure has a functional and a divisional structure at the same time. Employees who work in a matrix organization report to two “bosses. Conflict may arise between departments and divisions. c. or customers. Adaptability and flexibility may be achieved in handling diverse product or service lines.

b. Stage 4 is a mature matrix. Individuals can become preoccupied wit internal relations at the expense of clients and project goals. usually a functional structure. b. Reactions to change may be slowed if interpersonal skills are lacking or top management fights for control. All decisions may become group decisions. virtual organizing capitalizes on the mobility and responsiveness of telecommunications to overcome problems of distance. e. virtual organization entails the development of relationships with a broad range of potential partners. Functional specialists can be added to or resigned to projects as needed. c. • Disadvantages a. f. in which matrix bosses have equal power. First. Decision making can be decentralized. 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. Second. timing is a key aspect of relationships. a very small staff. d. d. Support systems can be allocated to projects as needed. Lines of authority and responsibility may not be clear to individual employees. which follows the unity-ofcommand principle. c. Responses to environmental changes are quickly made. Organizational Design for the 21st Century(For information) Virtual Organizations have typically only a handful of permanent employees. with actors using . • Advantages a. Administrative costs are increased. There are four key characteristics of virtual organization as process. f. leading to gross inefficiency. Third. Environmental monitoring is improved. and a modest administrative facility. Stage 3 is a permanent overlay in which the managerial integrator positions become permanent. Horizontal coordination is strengthened. e. Possibilities of conflict are increased.Stage 1 is a traditional structure. each having a particular competency that complements the others.

Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. Last.8 . Authority is delegate from top. It is legitimate. 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. 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. 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. there must be trust between actors separated in space for virtual organization to be effective.responsiveness and availability to decide between alternatives. DELEGATION: b) 4.

increase employee motivation. Basic consideration in delegation are: 1. Responsibility 2. Superior delegate authority to subordinates in order to facilitate work being accomplished - Responsibility.The process of transforming the responsibility for a specific activity or task to another member of the organization.from superior to subordinate.Obligation to perform any assigned duties. and (5) appreciating. . (3) discussing. (4) auditing. Authority . Enable individual to know to whom they are accountable and whose instruction they must follow. create sense of belonging and improve interpersonal relations with employees. - Steps of delegation: Delegation is the downward flow of formal authority . The Scalar principles 5. 4.Requirement to provide satisfactory reasons for significant deviation from duties or expected results. The delegation process has five phases: (1) preparing. carry out actions and direct others in matter related to the duties and goals of a position. Unity of command. Indicate there must be clear line of authority from the highest to the lowest level of organization. - Accountability. A clear line of authority will make it easier for organization members to understand. To whom they can delegate Who can delegate To whom they are accountable Unity of command Each employee should report to only one superior. Accountability. (2) planning. The Scalar principle: Members of the organization should know where they stand in the chain of command. . Authority 3.Right to make decisions. Shared decision making can improve the quality and acceptance of decisions.

The reasons for this unwillingness on both sides are as under: On the managers’ side. Leads to speedup and better decision making. 5. Preparing includes establishing the objectives of the delegation. Planning is meeting with the chosen subordinate to describe the task and to ask the subordinate to devise a plan of action. Provides managers to opportunity to accomplish more complicated. and deciding who should accomplish it. Auditing is monitoring the progress of the delegation and making adjustments in response to unforeseen problems. Appreciating is accepting the completed task and acknowledging the subordinate’s efforts.1. 2. managers are found unwilling to delegate authority and many subordinates are found unwilling to accept it. 5. the reluctance to delegate may be due to the following reasons: . 3. difficult or important tasks. Helps to create organizational structure. specifying the task that needs to be accomplished. Discussing includes reviewing the objectives of the task as well as the subordinate’s plan of action. Barriers to Effective Delegation: In spite of several advantages. any potential obstacles. Provides opportunity for employee to develop analytical and problem solving skills. 2. 4. 4. 3. BENEFITS OF DELEGATION 1. and ways to avoid or deal with these obstacles. Leads to a more involved and empowered workforce.

Allow the delegates to participate: . Guidelines for Overcoming Weak Delegation: The following practical guides will facilitate successful delegation: Define the assignment and delegate authority in light of results expected. They may avoid accepting any authority because there are no positive personal gains to them for assuming extra responsibility. The ‘I can do it better myself’ fallacy. the range of his or her discretion. You need to specify what those parameters are so the individual knows. Select the person in light of the jobs to be done. 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. Specify the delegate’s range of discretion: Every act of delegation comes with constraints. the result you expect and any time or performance expectations you hold. You’re delegating authority to act on certain issues and on those issues. in no uncertain terms. Establish proper controls. Difficulty in briefing. They may avoid accepting any authority if they feel that they lack adequate information and responsibility to help them discharge their duties properly. Lack of confidence in subordinates. with certain parameters. Assuming you’re willing and able individual. 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. 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.Fear of loss of power. Maintain the open lines of communication. Fear of being exposed. it is your responsibility to provide clear information on what is being delegated. They may lack self-confidence and initiatives and this may also be the cause for them unwilling to accept it.

Few organizations could function effectively if all decisions were made only by a select group of top managers. 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. nor could they do so if all decisions were delegated to the lowest level of the organization. Inform others that delegation has occurred: Delegation should not take place in vacuum. satisfaction and accountability for performance. 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. Centralization VS Decentralization: Centralization and decentralization are two very important concept of managing. Rather. If you allow employees to participate in determining what is delegated. Centralization-decentralization is a relative. The relative degree of centralization or decentralization depends on some underlying factors. No organization is cent percent centralized or cent percent decentralized. if an organization centralizes all its power and authority. Departmentation is a function/example of decentralization. Let us define the two terminologies: Decentralization is the tendency to disperse decision-making authority in an organization structure. On the other hand. You increase employee motivation. 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. how much authority is needed to get the job done. not absolute. concept. 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. For instance. organizations will be relatively centralized or relatively decentralized.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. . decentralization refers to granting of decision-making by management to lower level employees. and the standards by which they will be judged. What we mean by this is that an organization is never completely centralized or decentralized. whereas. Decentralization is the process of systematically delegate power and authority throughout the organization to middle and lower-level managers. then it will be difficult to create formal organization. If an organization is cent percent decentralized then the existence of the top-level executives will be cease to exist.

with more easily measured outputs. d. Top managers have a broader perspective on decision situations. Decentralization advantages a. • More reporting and inspection may be needed than if the control were centralized. The jobs of lower-level employees are enriched by the challenge of making decisions. d. c. . c.FACTORS INFLUENCING THE AMOUNT OF CENTRALIZATIONDECENTRALIZATION . Disadvantages : • Each section may not have standard procedure. e. Decisions can be made faster. MORE CENTRALIZATION MORE DECENTRALIZATION • Environment is more stable • Environment is complex. e. Top managers can concentrate upon major issues. b. It is easier to coordinate the activities of various units and individuals. Individuals at lower levels may be closer to the problem and may be in a better position to make good decisions. Relatively independent units emerge as divisions. 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. 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. Strong leadership is promoted. Centralization advantages a. b) Operations are geographically dispersed. b. Duplication of effort by various organizational units can be avoided.

d) The environment is increasingly uncertain. General managers task or duty must first be clearly defined. Mechanistic organization thus is defined as a rigid and bureaucratic form of design most appropriate for stable environments. The manager will in turn may entrust the production to one executive.c) Top managers cannot keep up with complex technology. who then transfer certain duties to his delegates e. interview. it should be a strategic priority for the manager. and centralized authority. A staffing system is defined as a model and a process for those who recruit. Thus an organic organization is a fluid and flexible design most appropriate for unstable and unpredictable environments. general manager of the factory having 3 plants may transfer the sole charge of each plant to each manager. organizations structure their activities in rather predictable ways by means of rules. An organic organization. and hire new . purchase to third. accounting to other and so on. screen.g. Free from uncertainty. ---------------------------------------------------------------------------------------------------------- Mechanistic and Organic Organization: (For information) A mechanistic organization is most frequently found in stable environments. maintenance to second. Staffing Staffing is critical to improve the quality and performance of employees at all levels of an organization. Therefore. in which constant change and uncertainty usually dictate higher level of fluidity and flexibility. is most often found in unstable and unpredictable environments. Mechanistic organizations are also quite similar in nature to bureaucracies. on the other hand. power or authority and responsibilitry. The manager has to not only set the vision and strategy but also hire the people to achieve them. specialized jobs. Authority and responsibility : For performing the work properly it is essential that everybody must know his task or duty.

both the current and future business needs of your organization. The next step in the staffing process is to decide what qualifications are needed to do the job. When properly designed and implemented. in the long run. it leads manager through the hiring process from start to finish. job descriptions and job specifications around measurable criteria related to ideal performance behaviors. education. Staffing Process The best staffing option is the one that takes into consideration. (2) Determining the qualifications and competencies (3) Filling the position. and for the future. Once the right candidate is hired. There are many methods of assessment and any valid predictor of the applicant’s job performance may be chosen. Job specifications outline the knowledge. knowledge. • Helps to improve benchmarking throughout the organization. These four steps are: (1) Defining the job. • Supports management development. 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). training and experience. he or she is trained in skills needed for efficiently handling the job. . skill and abilities required of the incumbent. In most cases a combination of methods will be used. Job description outlines the expectations and skill requirements of a job. A well designed staffing system : • Helps in hiring the right people. Common training methods are Lectures. to the greatest extent possible. The staffing process generally involves at least four steps. Defining the job involves developing job analysis. skills and abilities. By choosing options that can. Work Samples. you can ensure the availability of staff for the work that needs to be done – for now. Simulations. Physical Tests and Past Work Performance.employees. involving the development of a position description. save time and resources. (4) training. Job analysis is benchmarking basic task and skill requirements for a job. Written Tests. For most positions qualifications include competencies. • Creates consistency in hiring decisions throughout the organization. Qualifications are the attributes or accomplishments determined to be essential for the competent performance of a job. which involves screening applicants and selecting an individual. • Reduces costs of the hiring process. Some of the most common are: Oral Interviews. • Limits liability.

Training 4. HUMAN RESOURCE PLANNING Step in providing Human Resource 1. Performance appraisal RECRUITING The process of finding qualified applications . Recruitment 2.MANAGING HUMAN RESOURCE Definition: Refers to the individuals within the organization who make valuable contribution to the management system. Selection 3.

Qualification needed to successfully perform a particular job. 5.- 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. Major source of Potential Job Candidates Internal search Advertisement Employee Referrals Employment agencies University placement Job fair SELECTION . 3. 4. 2. duties and responsibilities of an employee holding a particular job. 6. tools Materials and form Used working condition Job Specification Education Experience Training Physical effort Physical skill Communication skill 6. employees can be narrow intelligently. Job analysis Job description Job specification JOB ANALYSIS Job Description Job title Location Job summary Duties Machine.1 1.

role play. Simulation Exercise Vestibule training . interpersonal or problem solving skills.Working with coach/mentor . Sample on the job training methods 1.Provides good exposure to a variety of tasks. Sample on the job training methods Job Rotation: . Understudy Assignment: .Learning tasks on the same equipment that one actually will use on the job but in a simulated work environment. . .May include case analysis.The process of screening job applicants to ensure that the most appropriate candidates are hired.Employee work at different job . 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.To demonstrate technical skills that are not easily to videos presented by other training methods. .Provide support and encouragement experience workers from 2. Sample Off the Job Training Methods Classroom Lectures Films and .Design to convey specific technical. group interaction. 2 types of employee training methods: 1.Learning a job by actually performing the work. .

job knowledge etc. skills.Form Essay Write down particular good or bad performance. Importance of Performance Appraisal 1. .The process of assessing how well employees are doing their job. Useful basis for the coaching and counseling of individuals by superiors. c) d) Critical.A judgmental process of the job performance of employees. Telling subordinates how they are doing and to suggest needed changes in behavior. attitudes. 3. 2. Provide a systematic judgment to support salary increase. employees and coworkers. Methods Of Performance Appraisal a) Rating skill Use a form containing several employee qualities and characteristics to be evaluated such as leadership. Leading .PERFORMANCE APPRAISAL . promotion and transfers. b) Employee Comparison Rank employees according to job performance. 360 Degree Methods that utilizes feedback from supervisor. initiative etc. . value to organization etc.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.

Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence. 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. counseling.Definition: Process of directing and influencing the tasks related activities of group members to achieve goals. b.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling. LEADERSHIP STYLES : . Task related/ problem solving function. 4) About values – Moral. An effective leader must performs both functions simultaneously. reward. referent. E. Help the group to operate smoothly. opinion. Importance to organization 1) 2) 3) 4) Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work. Two aspects of leadership behavior : Leadership function Leadership styles LEADERSHIP FUNCTION: Leader considered to be effective when practices these functions: a. offering information.employer and employees. Group maintenance/ social function. obligation and responsibilities towards employees. expert power and legitimate power or authority. E. The process of directing human resource efforts toward organizational objectives Four important facts are: 1) 2) 3) Involves people.g suggesting solutions.

to reach the desired receiver. Concern on getting the job done to her / his satisfaction rather than develop or employee growth. The sender’s mission is to translate internal thought patterns into words. receiver. Characteristic of Manager: Warmth and has special rapport with subordinates. write letters. Managers try motivate rather than control the employees. and then meet with other managers to explain the plan. organizing. pathways along which information travels. letters. they gather information about the state of the organization and communicate a new structure to them. Show high amount of consideration towards employee’s ideas and feelings. Communication Process Communication is a linked social process of sender. reports and newsletters. Concerned to get the job done rather than the development of the employees. encoding. Develop trust and respect . memos and reports. Encourage to participate in decision making. When managers perform the planning function. 2. When managers lead. gestures or symbols that the intended receiver of the message will be likely to understand. that is. they communicate with subordinates to motivate them. When managers organize. they gather information. Respect the feeling of others Sensitive to other’s needs and mutual trust. leading and controlling. and feedback. This is the process of encoding. COMMUNICATION In organization – Disseminating of information through memos.Generate into two different leadership styles : 1. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. Employee oriented/ people centered. Organizational communications cover every management function: planning. medium. Discuss face to face meeting. decoding. An encoded message is then ready to be transmitted over one or more channels of communication. . Task oriented function/ production centered.

Convey info to their superior. The element of the receiver’s response which the receiver communicates to the sender. suggestion box. Person who receive the information. Any kind of interference which results in distortion.Sender Encoding Medium Message Decoding Receiver Feedback Noise : : : : : : : : Person with information to communicate Ways in which the information is expressed. E. a) Vertical communication: Comm.g incomplete information. Downward. From in which the message is.In the form of instruction and information e.g that course is full. rules. E. Upward – through suggestion schemes or some other form of feedback to management. The telephone The information itself as encoded by the sender. Information flow at the same level.g switch board Operator. eg. b) \ Lateral communication Known as Horizontal communication. E. E. procedures. FORMAL ORGANIZATIONAL COMMUNICATION Information flows around organization whether or not they try to control it. work schedules.g I’m looking for a place on cad course.g spoken English . suggest ideas. So that the receiver gets a different message from the one that was sent e. . reporting work progress. Interpretation.The receiver’s thought process on getting The message.g policies. system in which messages / info move upwork and downward.

5. . internet etc) 4. Mass Communication Deals with public communication . usually in decision making setting. 3. It can be very responsive to the change and they may refuse to listen. Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. Information can be accurate/ inaccurate LEVEL OF COMMUNICATION 1. Group communication Relates to the interaction of people in a small groups. Barriers to effective listening 1. Vertical b. Horizantal INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal.a. 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. 2. Received by or used by large number of people ( postal service.

embarrassment and enthusiasm. Defensiveness Respond in ways to hide an effective communication when people feel that they’re being threatened 11. Japan – more interact to their subordinates and used a more informal manner. positive and acceptable to the receiver. If the sender is known to be trustworthy .defensive. experience and attitudes. Information Overload The information we have to work with exceeds our processing capacity. 13. Selective perception When people selectively interpret what they see or hear on the basis of their interest. education and cultural back ground are the most variable that influence the language of a person. They tend to select out. Language Words means different things to different people. fear. 12. 8. Credibility of a sender How trustworthy the sender or the source of the message. 10. 3. 4. ignore pass over or forget information. Noise Factor interferes. National culture Cultural differences can affect the way a manager chooses to communicate US tend to be individual rely on memoranda. confuse or disturb the messages from reaching the receiver. OVERCOMING COMMUNICATION BARRIERS . Often interpret the same message differently depending on whether you’re happy or distressed. Semantic Certain words may be interpreted differently by different people. Use verbal consultation over on issues and draws up formal document to outline the agreement that was made. Where else. 7. Filtering The deliberate manipulation of information to make it appear more favorable to the receiver. Filtering Alteration of information to make it interesting. 6.2. anger. announcement and other formal forms of communication. the information will get to receiver clearly. jealousy. Jargon – specialized terminology or technical language. Emotion How a receiver feels when a message is received influences they interprets it.. background. 9. Credibility of the sender Associated with person’s feeling of love. hate. age. 5. if the sender has low credibility the receiver may ignore the information.

2. clothes.Modify language and use words appropriate.Use bias free language d.1. 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. 3. 6. visit site. 10. 5. postures and gestures. Modify language and use word appropriately We have to study audiences and their background.verbal communication Facial expression. 7. 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. rational and trust Instill an atmosphere of openness. Create openness. 9. 11. education level and position.Be specific c. Obtain feedback Ask question.Plan and clarify ideas before communicating b. Understand verbal and non. Send message in an effective way a. 12. Motivation . repeat message. 4. Use bias free language The receiver of messages can have a bias feeling when a biased term is used in the messages. 8. Listen actively Listen for full meaning without premature judgment or interpretation.

although all people need food. there are ten strategies to induce employee motivation and improve their work performance: (a) job security. employees have five levels of needs: physiological. Belongingness needs are the desire for love and affection. (i) feeling of being in things. they must demand food first and more strongly than anything else. and self. The need causes tension and stress within the employee. The most predominant needs must be satisfied before the next higher level of needs can be addressed. Maslow reasoned that lower level needs had to be satisfied before the next higher level need would motivate employees. social. (e) good working conditions. Theories of Motivation: According to Maslow. Performance is essentially a function of skill and motivation. Self actualization needs are realizing one’s potential for personal growth and development. social acceptance and esteem. (g) good wages. Understanding this relationship between motivation and behavior is the starting point for understanding the conditions for . Motivated employees are more productive. (d) interesting work. (b) sympathetic help with personal problems. (c) personal loyalty to employees. safety. Security needs are essential for a safe physical and emotional environment. To be effective.actualizing. Motivation is a psychological process that gives behavior purpose and direction. While skill is contingent upon education. ego. (f) tactful discipline. An unsatisfied need triggers a chain of events leading to actions. and (j) full appreciation of work done. safety. and leads him to some kind of behaviour in an attempt to satisfy the need. managers need to understand what motivates employees within the context of the roles they perform. Esteem needs are recognition and respect from others. (h) promotions and growth in the organization. motivation is induced by either internal or external stimuli. 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. Thus. experience and training. such as food. The pyramidal hierarchy is used to depict the different levels of importance of each need. Physiological needs are biological needs necessary for basic survival.

E. Examples are job security.g are respect from others. Self – Actualization needs It comprises needs for the development of one’s full potential or the realization of one’s own potential.g food. achievement as well as prestige and status. 5. freedom from coercion and a need for clearly defined regulations. But. 3. 2. Physiological needs These need are our basic needs. E. . opportunities for advancement. recognition. and shelter from environment Safety or security needs Deals with our physical and psychological safety from external threats. It is a need for self-esteem and self growth. E. or need for personal “ belongingness”. Self esteem needs It is also known as growth need.g are love. These are for our survival. 4. water. the five levels of need are not always present and ordinal importance of needs is not always the same. Social needs or “ Belongingness” Need for companionship.stimulating action on the part of subordinates. need to love somebody as well as the need for social interaction. OR write in this manner 1.

work environment.Herzberg’s Two-Factor Theory According to Herzberg. They are on a separate continuum that ranges from dissatisfaction to no dissatisfaction. an employee’s satisfaction and dissatisfaction is influenced by two independent sets of factors motivation factors and hygiene factors. interpersonal relations. recognition. A manager’s task is to ensure that the hygiene factors are not deficient and do not hinder motivation. 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. while providing employees the opportunity to experience increased motivational factors through the use of job enrichment and the redesign of jobs. They are on a continuum that ranges from satisfaction to no satisfaction. Motivational factors relate to job context or work content and include such aspects as achievement. responsibility and opportunities for advancement and growth. Hygiene factors relate to work environment and include such aspects as supervisor’s attitude. pay and company policies. . the work itself. He assumes that job satisfaction and job dissatisfaction are on two distinct continuums.

Having to be pushed by managers to work. Theory T is optimistic view. Theory Y managers. These managers in order to make sure that their employees do their work. 2. work is as natural as play or rest. 7. Here managers have a traditional or a pessimistic view of motivation with regard to employees. Willing to accept responsibility. Controlling ‘Controlling’ is a process of establishing performance standards based on the organization’s objectives. ingenuity and creativity in accomplishing tasks. 8. it might be necessary to alter the standards. Greater job autonomy and taskvariety is offered to employees. 2. Managers of theory X view the employees in terms of the following characteristics: 1. Capable of directing themselves ( self direction) 4. comparing actual performance against the set standards and taking corrective or preventive action as necessary. 4. preventive action becomes essential. management control can be an important element of a broader strategy to focus policymakers and those responsible for implementation on better . This theory describes the views or perception of managers with regard to their employees. it is useful to reinforce behaviors that led to acceptable performance. Willing to work. If performance is greater than or on par with the standards. If performance is anticipated to be below set standards. Control is both anticipatory and retrospective. In short. If the gap between the standards and actual performance is huge. Theory Y manager will delegate the authority and allow employees to participate in decision making.THEORY X AND THEORY Y (McGregor Theory) This theory was developed by Douglas McGregor. 5. where employees are allowed more participation. freedom and responsibility in their work. view their employees in terms of the following characteristics: 1. Corrective action becomes necessary when performance is below standards. Frequently using imagination. To ensure high performance. 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. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. Capable of self –control 5. 6. Coercive power will be used. managers need only to apply the participative style of leadership. measuring actual performance. 3. since work brings satisfaction.

Setting policy is included in the planning function. since policies are guidelines for future action. Control standards should be explicit indices of performance. Establish Standards Control: Standards should be expressed in quantifiable terms and conform to organizational goals. whereas implementing policy is a part of the control function. Compare Performance Against Standards: Ascertain what acceptable digression from the performance standard is and use the suitable schedule for measurement. Measure Performance: Performance measures must be reasonable indices of performance. and authority of the jobholder. responsibilities. Change the performance standard if it was set too high or too low Essentials of Effective Control Systems To make control sytem effective there has to be a facilitation of and support of collaborative activity. 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) . Ideally. everyone in the organization should view control as a responsibility rather than a needless onus thrust upon them.defining specific policy objectives and on continuously improving their capacity to meet those objectives. The following diagram illustrates the process of control. Methods for Control • Policies: Policies are important means for implementing preliminary control. • Quality control of materials: The materials to be used in the project must conform to standards of quality. • Job descriptions: Job descriptions are a part of the control function since they pre-determine the activities. 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. .

graphs and/or network diagrams. • Audit: A management audit is a study of the manner in which the project is being carried out. . A financial audit examines the fiscal aspects of the project. • Standard Cost Analysis: A standard cost system provides information that enables a manager to compare actual costs with pre-determined (standard) costs.• Budgets: The principal means of controlling the availability and cost (interest) of financial resources is budgeting. The manager must determine the reasons for the variances and decide what corrective action is appropriate. • 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. • Graphic Charts and Diagrams: Project activities can be graphically displayed on charts. 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.