Nature and meaning of management

Meaning- management is a process of taking managerial decisions and putting them into action. It determines the objectives of the organization and takes steps to achieve them. It is concern with the motivation of the employees. Management is the brain of any organization because it takes decision makes policies rules and regulations. Every organization requires taking decisions, co-ordination of activities handling of people and evaluation of performance of those directing towards attainment of objectives.

Features of management:- these are the following features of the management.
It s a process:- in studying management as a process, various managerial activities are taken as a basis for defining management as a process of planning, organizing, directing and controlling the activities of the people working in a group.

It s a social process:- management is a social process because management functions are basically concerned with relation among the people, it s called a social process . since the efforts of human being have to be directed co-ordinate & regulated by management. It s a group effort. Management always refers to group effort and does not apply to an individual. Its an attainment of pre-determined objectives:- group efforts in management are always directed towards the attainment of some pre-determined objectives. These objectives are the final goal of an enterprises towards with all managerial activities have to be oriented. It s a distinct entity:- management is a sapret & distinct entity. It is quite different from the various functional activities and the techniques and procedures. It s a system of authority:- decision making and organizing factions cannot be performed unless management is consist a system of authority. Since management is a system of directing to done a task authority to accomplish the work from others is implied by the vary concept of system. Universality of management:- universality of management is by character. Fayol was the man who contributed fourteen principles of management which implies more or less in every situation.

It is needed at all levels:- an important feature of management is that it applied at all levels of organization. The lower level supervisor has also performed the function of decision making alike top level executive. It s a discipline:- it has its organized body of knowledge & techniques. Its also taught in colleges and universities like other disciplines. Its an integrated process:- the essence of management is integration of human. and other resources in such as manager leads to effective performance.. Its an art as well as science. --------------------------------------------------------------------

Objectives of management:- these are the following objectives of the management.
Optimum utilization of resources:- the most important objective of management is to use various resources of enterprises in most economical way. The proper use of man,money,meterial will help the business to earn sufficient profit. Growth and development of business:- by proper planning organizing and directing management leads a business to growth and development. It help in profitable expansion of the business. Better quality goods:- the aim of the sound management has always been to produce the better quality product at minimum cost. Thus it will tries to remove all types of wastages of business. Ensuring regular supply of goods:- the another objective of management is to ensure the regular supply of goods to the people. It checks the supply of goods in the market. Discipline and moral:- the management maintains the discipline and boost the morale of the employees to imply the principle of decentralization and delegation of authority. Promotion of research and development:- management undertakes the research and development to take lead over its competitor and meet the uncertainty of future. Minimize the elements of risk:- management involves the function of forecasting through the exact future can never be predicted , yet on the basis of previous experience and existing circumstances management can minimize the element of risk.

8. improving performance:- management should aim at improving the performance of each and every factor of production. The enviourment should be such that workers contribute the best to enterprise. 9. planning for future:- another important purpose of management is to prepare a prospective plan. No management should be satisfy with today s work. Future plan should take into consideration what is to be done next. --------------------------------------------------------------------------------

Scope of management
The scope of management is very vast. Under the scope of management the following activities are included. Planning organizing staffing directing coordinating control --------------------------------------------------------------------------------------------------------

Functions of management:-

management is a dynamic process consisting of several

activities. These activities which every manager have to perform are known as functions of management. Planning:- planning is the first and most important function of the management it is a determination of course of action to be followed for achieving the organizational objective. I the words of Koonz and Donnels planning is deciding in advance what do, how to do it, when to do it and who is to do it. It can be characterized by think before doing . Planning is selecting a particular course of action out of several courses available to manager. If a situation changes the course of action selected may not achieve the desires result and a manager may be force to change the course of action. Rigidity should be avoided as far as possible. Planning is based on estimate of the future and the success of the plan therefore lies in the managers ability to forecast future situation correctly and accurately. Forecasting is an inseparable part of planning. Organizing:- it s a process of diving work into sections and departments. It involves the allocation of authority , responsibility and duty among all the members of the enterprise. The management has to organize the enterprise by grouping the activities so that the work is carried out as planned. Organization represent an organized effort to accomplish planned work. It s a tool of managing because it helps in creating a environment for human performance. Organization provides necessary framework within which people associate achievement of business objective.

A manpower management staffing process therefore provides the organization with adequate competent and qualified personal at all levels of the enterprises. Direction means guiding and supervising the coordinate. 4 interpreting results 5 taking corrective action. Direction:.it is unifying the actions of a group of people for some common purpose. everything accrue in confirmation with the plan adopted the instruction issues and principles established. promotion and operation.staffing means manning and keeping of right man at right place. control consist in verifying weather. Staffing consist the following. In terms of managerial function control consist of the steps taken to ensure the performance of the organization confirmed to the plan.control is to guide somebody or something in the direction in which it is intended to go. motivation. Staffing function of the management deserves sufficient care and attention of the management. Coordinating:.Staffing:. . Since successful performance in individual largely determined the success of the structure. training and development. The main aim of direction is to integrate the efforts of the people for the best interest of the enterprise. Sub functions of direction:. It is the job of harmonizing activities of different individual and group.manpower planning. It has the object to point out weakness and errors in order to rectify them and prevent re-occurrence. 3 comparing of actual performance with standard. Controlling:. Controlling enumerate the following four steps:1 establishing standards of accountability. determination of employees wages.communication. This needs manpower. Directing is a continuous function of management & it is performed by manager at all levels in a organization. leadership. recruitment selection and replacement. Henry fayol. Directing is concerned with implementation of plan in initiate organized action and ensure good performance by employees towards the accomplishment of group objective. 2 measuring actual performance with standard.the organization does not start working till the manager gave direction. Henry Fayol to coordinate is to harmonize all the activities of a concern so as to facilitate its working and success.

for any action an employee should receive order from one supervisor only. Discipline:. Authority and responsibility:. Which have same object in view. Management which involves direction of efforts of large bodies of people has to be in variably matched by marks. Discipline among the people whom skill and energy are to be channelize in specific direction. Remuneration personnel:. Management should centralize the authority to the extent that neither there should be too much consolidation power nor it devices too much.Fayols principles of management:Division of work:. Subordination of individual interest to general interest:. and that which reduces it is centralization. resources coordinate and direct to the same end.rewards per work done as soon as possible give satisfaction to both the employees and employer. We considered discipline as a absolutely essential for the smooth running of the business. It has its limits and work should not be sub divided beyond these limits.common interest is above the individual interest and when they confused between the two common interest prevail. dual command is perpetual command of action. Direction therefore is essential to consolidate the management over the activities and affair of any undertaking. Remuneration should be enable the employee to lead a satisfactory life and in addition offer special incentives to those who are more monitorial.according to Fayol discipline is obedience.authority is the right to give order and power to extract obedience. . Those who accept authority should be willing to share responsibility.this principle states that there should be at one plan for a group of action having same object. Centralization:. This principle called reconciliation of the object. Fayol warned that in all human associations. application and outward marks of respect. Its exercise must be occupied by reward and penalty and must carry with its responsibility and in this principle Fayol pointed out that authority must not be concrete apart from responsibility. Unity of direction:.everything that increase the important of subordinate role is centralization.the object of division of work is to derive the benefit from the principle of specialization. It means one manager and one plan for all operations. its advantages are widely recognized and it can be applied on any kind of work employing large number of workers. Responsibility can be pin pointed only when there is unity of command. The employees work will confuse if they have to report more than one supervisor. whereby activity. Unity of command:.

The following are features of art. Stability of tenure of personnel.. According to the Fayol communication should be short circuit as far as possible. Every art is practical in its approach because the proof of the competence of the proportional lies in the tentative result that able to show.art is concerned with the application of personal skill and knowledge to achieve useful results.the principle of fayol says that manager must treat employees with kindness. It suggest that manger should permit subordinate to exercise authority. Orderliness in work can be obtained by the management through suitable organization for man and material. Order:. Nature of management. Frequent chain should be avoided.according to fayol scalar chain is of the superior ranging from the ultimate authority to the lowest rank. The right man at right place. Equity ensure cordial elation between the manager and labor. The line of authority is the root followed by every link in the chain but all communications starts from ultimate authority.by order fayol means a place for everyone and everyone in his right place. Equity:. stability of tenure of personal generate prosperity of the organization. Unity among the persons can be accomplished through the proper communication and coordination. Manager should not drive doubtful take advantage by divide and rule police.(team spirit) this is the principle of union is strength liberally speaking the phase espirit the corps means the spirit loyalty and devotion with unites. Prejudices personals likes and dislike should be influence the managerial treatment of subordinate. espirit the corps.Art of Science Management as a art. Personal skill:. Management is certainly aim art as a manager uses his personal skill and . employee should welcome to make any suggestion which should receive proper consideration by management information of its objectives and plan. The devotion of group harmony among the personal is a source of strength.. Manager should secure initiatives possible for the subordinate.Scalar chain:. Initiative increase improve energy of the employee. Initiative: it is concerned with thinking out an execution of a plan. Right man for right thing right material for right person could ensure systematic utilization of resources and manpower employed in the undertaken.art is often considered as the application of skill and knowledge for the effective accomplishment of results.no employee should be remove within a short period of time . The employee should not be related on different jobs vary frequently because considerable time is required to learn each job. Art is called creative because it is concerned with a creation of something.

Universal approach:. Caused and effect relationship:.management is regarded as science as it is an organized body of knowledge. . Management does not simply means the knowledge of principles of management rather than it is the application of his knowledge with makes it effective and useful.an art means practical knowledge. It is concerned with application of skill and knowledge required.management process is directed towards the achievement of results. build up by management. Hence it have result oriented approach. spectaional thinkers and philosopher many period of years. When applies to management the principle of management also established cause and effect relationship. The knowledge of management has been enquired through continuous efforts of many practitioners after a period of time. It is systematic body of knowledge acquired by mankind through observation and experimentation which is capable of variation. Management as a science:.scientific principles establish cause and effect relationship between different variable.knowledge in solving many complicated problems that concurrent him working in his enterprise successfully. Regular practice:. Continuous observation: the principle of management has been developed after continuous observation. Features of management as a science:Systematile body of knowledge:.management has rewards certain general principles of universal applications. Science is a systematic in the sense that certain relationship. Personal knowledge:. Result oriented approach:.every art has an element of creativity. principle and their limitations have been discovered tested and established.the word science literally means knowledge. In this sense management can be required as most creating art it is concerned with getting things done through others b inspiring them to work. Better efficiency can be achieved through regular practice.like an artist management always tried to achieve higher goals with regularity. Example good planning and plant layout cause higher productivity. Creativity:.

the importance of correct forecasting is apparent from key role played in planning. sale. business activity to predict and estimate current future which company may have future. Business forecasting is the search procedure to discover those economical.the correction of management decision to great extent depends apon accurate forecasting. Since planning premises includes some furcating. . BUSINESS FORECASTING It is an art of predicting the future on the basis of present and past information.Validity and predictability:. Plan formation:. Correction of management decision:.the importance of forecasting can never be ignored in estimating the financial requirement of the concern. No business can service without adequate capital. Smooth and continuous working of a concern:. With the help of forecasting the promoter can find out whether he can succeed in new business or he can face the existing competition. and purchase.forecasting of earning ensure smooth and continuous working of an enterprise . It is not a easy task to start a businesses as it is full of uncertainty. Success in business:. Importance of business forecasting:. The success of a business depends apon accurate furcating. Forecasting is the basis of planning because it determined in the advance the nature of future business operation and provide basis for managerial decisions relating to material.the accurate forecasting of sale help to procure the necessary raw material on the basis of which many business activities are undertaken in the absence of accurate sale forecasting.the principle of management has been put to several test and found to be a valid for example and individual working under one manager will show better results than the individual who have follow two or more managers. Further principle of management caused and effect relation cause predicting future again.forecasting is at most important in setting up new business.particular to newly established business. social and financial influences. Estimation of financial requirement:. Accurate forecasting is a key to success in business. but adequacy of capital depends entirely on sound financial forecasting. It is difficult to decide how much production should do. It should not go uncounted that furcating is an essential element in planning.

control.the requirement of the entire trade industry are estimated first and then share of particular unit is ascertained. Political condition.in this case the business mostly rely apon the past experience of predicting the future. . Empirical method:.Types of forecasting General business forecast:. Previous experience properly organized and interpret in terms of casual relationship is the basis of scientific furcating.under this method the future is predicted in terms of past experience.every business enterprises will have to think of its financial plan. this data later on compiled together as the data for the company and their code. which is the basis of prediction. Accurate forecasting helps the organization to employ its capital to fullest extend and can get the optimum returns of its investment. It means every department makes its own forecast which later on clubbed together as aggregate date for the company.this type of forecasting decides the fate of the organization s the rules determines the success of the company. The continuant department later on get their share from company and hence the estimation have been made indirectly without giving any free hand in the compilation of object. population and national income etc have direct wearing on the business. Indirect or top down method:. Therefore sales furcating should be undertaken with due care and precaution so as to see that whether planning debt has to decide is carried out to promote the sale.under this method different departmental head and there subordinate collect information and for different aspect of production. Techniques of forecasting:Direct or bottom up method:. Scientific method. Capital forecasting:. It helps to read the future condition for business and to predict the probable changes in business condition that are likely to occur in the rear future in the near future. So it is necessary for manager to take into consideration out these factors to forecasting the prospect of his enterprise.no business is completely independent hence general business forecast is undertaken. Sales forecasting:. sale and purchase etc. . It shoult be determine so as to meet the needs of the company with this object include forecasting of capital requirement have become necessary and its taken as primary step in the organization. The empirical forecasting is based on the prediction method which assume that business follow their better general business trend.

. The responsibility of exactness is shared by many and the error of judgment is avoided to better extent.Historic method: this method is just the reverse of the historic method. Joint opinion method:. It is based on the committee as such better understanding and cooperation is expected in arriving at the accurate judgment.any work of forecasting under this method is done in concerning with person who are directly concern with the problem. Under this method for deciding the future trend forecasting under this method believe that old data become absolute after the laps of certain time and hence give more emphasis on the current data available in the organization. No past information is taken into account.

Nature and characteristics of planning. It is a contiguous process:.it is a dynamic function in the sense that the changes and modification are continuously done in the planned course of action on account of changes in business environment.the plan should be formulated in the light of limiting factors which may be any one of five man money machine material and method. It is intellectual process and involves creative thinking imagination.every manger must plan.a pre request of planning is that it should lead the attainment of objectives at the least cost. It has limitations:. It is concerned with the thinking before doing planning is the primary managerial function concerned with the determination of a course of action the action to achieve the desire results. directing and controlling. It is also economical because it bring down the cost to the minimum. The purpose of any plan is to contribute in the achievement of objective of an enterprise.Planning One of the most important function of management at any level is to plan. It involves forecasting:. organizing. It is function of all mangers:. Planning is dynamic:.It is primary function of a management: the functions of management are broadly classified as planning. It is an intellectual process: it is a mental work basically concerned with thinking before doing. Planning secure efficiency economy and accuracy:.planning largely depends apon accurate business forecasting helps to projecting the present trend into future. It is thus the first function of management at all levels since planning is involved at all managerial functions it is rightly called as an essence of management. .it is a continuous process and permanent and has no end. So as to achieve the desires results. It should also help in the optimum utilization of human a physical resources. A manager at all higher levels to devote more time to planning as compare to person at lower level. It is focuses on objectives: planning is process to determine the objectives of an enterprise. It is concerned with the future course of action in advance.

logical thinking while planning. .the objectives of the organization should be clear and attainable. If cause of planning is more than the benefit derived from it then such a planning must be rejected. Principle of limiting factor:.planning must take into consideration different limiting factors like man money material methods machine. policies. Planner should have rational thinking with an open mind forecasting the success of the project so planned. procedures and rules they are going to follow to achieve the plan. They should already know about the basic objectives.realization of organizational goals greatly depends apon effective planning.to see the effectiveness of the plan cause benefit analysis undertaken. Planning can be applied successfully if the goal of the organization are clear and understandable. Objectives can be achieved by contributing them.a planner should have a sound judgment.It s realistic:.a plan always outline the results to results to attain or achieve or achieve and as such it is realistic in nature.present is the age of competition. Long term plan should be interwoven with medium term plan and which in terms should be interrelated with short range planning in order to attain organizational objectives more efficiently and economically. program. Principle of communication:. Principle of flexibility:Principle of rational process:. Strategy are the plan undertaken to compete with the plans of the arrival thus strategy are formulated by keeping in view the plans and policies followed by the competitor.the plan finalized by the manager should be widely communicated to the personnel at all levels of management. Principles of planning:Principle of contribution to objects:. Principle of meaningful abjectives:. Principle of competing strategy :. Principle of cause benefit analysis:.

If these forecast are accurate the planning process will be more useful.the fourth step of planning is to discover the alternative courses of action i. All useful data should be included to formulate analysis and interpretation.the first step in planning is to determine clearing objects of the business. Formulation of deliberative plan:. First of all objectives of the entire organization are laid down and the objectives of the each department are specified . It is a strategy pint as everybody in the organization must know as to what is to be achieved in the future.each alternative is evaluated in terms of its expected result and benefit. material. power.the next step is to communicate the plan to every manager in the organization so that they cooperate in the implementation of plan.e. These forecast related to the price of a product. Determine alternative courses:.:.the next step is to select the best alternative when the competitive results of different alternatives are tabulated. Evaluating alternative course of action:. to develop more than one course of action. . Controlling the plan: the last step in planning is watching the program of a plan and note down its shortcomings.the second step is to determine the forecast apon which the planning shall be based. Collection analysis and classification of information. These shortcomings should be deducted without any delay. The alternative which seen to be the best is selected.Strategic planning process Determination of objects:.for achieving the objective of master plan subsidiary and derivative plans are formed. raising loan from bank of financial institute. For example if more funds are required these can be raised by the different way such as the issues of share capital. In order to implement the master plan each department head prepare a plan of his debt. availability of personnel etc. Communication of plan:. The strong and weak point of each alternative should be carefully analysis Selecting a plan:.for effective planning all relevant should be collected analysis and classified. Constructing planning premises:.

Financial and non financial plan:Financial.refers to physical resources of concern.refers to monitoring plans such as raising of capital. Long term and short term plans:Long term plan:.Types of plans Standing and Single use plans:Standing plan:. loans etc. Single use plans:.if an enterprise which is to be become a leader in the industry it has to make a plan for a long period of time which may me vary from 3 to 5 years. In banks a request for a loan is handled according to the standing plan.a standing plan is a plan which serves as a guidelines to a managerial action. Once the object of the plan is completed they are used again. When an activity is to be occur repeatedly a standing plan is used. according to Koontz and O Donnell A policy is a guide to thinking and actions of those who take decisions .the primary step in planning is to set objective of an enterprises. Objectives decides the end point to which an individual or organization wants to move. all activities of the undertaking are aimed at these goals.short range plan are the plan for guiding the day to day action of a undertaking. According to Allen objectives are goals established to guide the efforts of the company and each of its components . Standing plan provides readymade answer to an given situation. Objectives are important because they provide a direction to organization.policy provides guide to action where we want to go and how we can reach there. price policies promotion policy etc. Policy:. Usually we come across certain policies-personnel policies. Short term plan:. These plans have a short life. Policies decide the limits within which management can take decision.single use plans are plans designed for a special purpose only. Types of standing plans Objectives:. They specify the destination where we want to go. A policy is a general statement which guides thinking decision making and action in the organization. Non-financial. These plans are generally made for one year.

Rules spell out either specific required action or not allowing the discretion. A planner should see the plan and policies of its competitor then remodify is plans so that he may provide the superiority of his product and service Single use plans Program.a rule is a specific action to be taken or not to be taken with respect to situation. review the cost. standard method describe one best way of doing a given task whereby facilitate the work of planning and also keep operation running on the planned line. Procedures are plans that established a required method of handling future activities.program is a sequence of activities undertaken for implementing the policies and achieving the objectives of the business.Procedure:. They specify the roots towards objectives. Procedures are also planned by they are more specific and show the sequence of definite acts. for example there may be a program to increase sale by 20%. resources to be employed to many other activities. In business this means plan made in the terms of competitors. Budget:. may be made.e. Several small plans to increase the sale through advertisement. repetitive and routine step in production tool room etc. Strategies:. A program involves a number of activities. Example no smoking is rule which allow me discretion on the part of anyone in organization. Rules:. direct mailing etc. It tells how that single step is to be done. They prevent confusion and keep the communication line clear. Methods:.the term strategy is derived from military terminology. Methods are standardized way of accomplishing.a method is a standing plan which is more specific and detailed and dedicated than a procedure. The procedure shows a series of step where as a method shows working of a single step. It is a tool of control in the sense that corrective action is taken in care of any deviation. A budged is a plan in term of money i. .policies guide our thinking and procedures guide out action. It is made of many small plans and each plan contribute to the accomplishment of the small objectives of the concern. A budget quantifies the plan and raise down the target towards with actual operation are directed.budgets are very useful tool for planning and control.

political. Planning may be effected by external limitations:. It reduces initiative of employee :. A wrong assumption by the planner on account of his competence can result in inaccurate planning and its value may be loss.it is not possible to preplanning from human bias. Time consuming process: planning require too much of time and the decision making process yet delayed specially where immediate decisions are to be taken.on account of heavy cost involved in planning small and medium concern find it difficult to make comprehensive plans. It is difficult for them to spare money for collection of information forecasting and appointing experts. These factors are natural. Since these concern are already short of capital. Various policies of a government may made plan of a business concern workless.it is also effected by certain factors which are not within the control of a planner. social and economical and technological. Forecast relates to future which is very difficult to predict.Limitations of planning Planning is costly:. Capital invested In fix assets limits planning: the decision regarding purchase of fixed assets put the limits in the future action as huge amount is invested in the fixed assets. . A manager cannot do anything about the investment in future. Inaccuracy in planning:.planning tends to bring rigidity in methods of work as employees are required to work according to predetermined process. Planning is based on forecasting which can never be accurate.

Types of strategies:Tried by the iron is hot:.. Camels heat in the tent:.in order to achieve desired results a department head may request others to unite so that he combine efforts are made if a functional manager want to increase the wages of employee he may ask other managers to join him and put united effort to get this demand accepted. A favorable situation may be created by indirectly helping those who had favored the plan.sometimes problems are allowed to be hangs on so that their intensity cools down in the meantime. Divide and rule:. Strength in unity:. Human memory is very short and things are forgotten very easily. The best thinking for a manger is to solve a problem when out in certain situation is knowingly delayed. Every person inspire for a position and status .a strategy may be to keep one step ahead of others those things may be done which the competitors have not yet thought of.this strategy suggest that deviation should be created among the workers so that they are not able to put collective pressure. Timing is a great healer:.this strategy suggest that full advantage should be taken when the situation is favorable. Once an number of person start accepting the plan that plan can favorably implemented. One step ahead. by giving promotion to some management help in using them against others. A delayed action may not yield desired results. Action should be prompt to take advantage.it may be so happen that the plan is acceptable only to one person not others. .

based on some past experience and present condition. Features of decision making Goal oriented process:. Thus decision making involves a choice making activity. Continuous process:. Positive as well as negative:. it may be positive to perform certain activity and negative not to perform certain activities. decisions are taken at every step. It aims at achieving certain specific goals of the organization. Future course of action:. In business undertaking. According to George R Terry. decision making is the selection based on some criteria from two or more possible alternatives .decision making is a selection process in which best alternative course of action is chooses from the given alternative course of action.e.Decision making It may be defined as a collection of one course of action from two or more alternative courses of action. .decision making is a responsibility of manager at different level of management. Decision making is the core of managerial activities in an organization .decision making is a goal oriented process. decision making is concern with selecting a course of action from various alternatives to achieve a predetermined objectives.decision making can be positive and negative i.decisions are made for future course of action. All managerial functions planning organizing staffing controlling are carried decision. Selection process:.

Routine and strategic decisions:Routine decisions are related to the general functions of the organization. these decisions generally taken by higher level. These decisions may include purchase of a raw material.Types of decisions Programmed and non programmed decisions:Programmed decisions are concern with the problems of repetitive nature or standard procedure is followed to tackling such problems. These are non repetitive in nature and taken after careful analysis an evaluation of many alternatives. These decisions are taken generally by lover level manager. Non programmed decision related to typical situation for which there is no easy solution. Policy and operative decisions:Decisions pertaining to various policy matters of the organization are policy decisions. These decisions usually involves large investment. For example decision regarding location of plants. volume of production are policy decisions. Operative decision relates to day to day functioning or operation of business middle and lower level managers takes the decision. These decisions are taken by the top level and have long term impact on the functioning of the concern. . Strategic decision effect organization its objectives and goals and other important policy matters. If decision taken by the executive in personal capacity it is called personal decision. They do not require much evaluation and analysis and can be taken quickly . Organizational and personal decision When individual take decision in the official capacity it known as organizational decision. ample powers are delegated to lower rank to take the decision. These decisions are taken at the higher level of management. These matters are very important for organization for example opening of a new branch of the organization or introducing raw product in the market etc. granting leave to an employee etc.

These factors are optimistic in the way of finding proper solution. Selecting the best type of alternative:. Routine regular type of decisions are taken by individual within the broad policy framework of the organizations. Purchase of a stationary is a minor decision which is taken by the office staff. It is not a easy task. . (D) Final selection of a decision is also affected by the limited resources available at our disposal. The following are the four important points to be kept in mind in selecting the best from various alternatives. Steps in decision making Define the problem:. Individual and group decisions:. Group decision are taken by group of individual in the form of a standing committee generally very important matters for the organization are refer to this committee.when the decision are taken by the single individual. The main aim of defining alternative solution is to have the best possible decision out of the available collective course of action.after developing the various alternatives the manager have to select the best alternative. Developing alternative solutions:.the first and foremost step in decision making process is to define the real problem. The manager should consider critical factors in defining the problem. (B) Economy of effort involved in each alternative. It is also well said that.Major and minor decisions Decision pertaining to purchase of a new factory building is a major decision pertaining to top level. These are also known as limiting factors. well defined problem is half solved Analysis the problem:. (C) Proper timing of decision and action. classification and analysis of facts and figures. it is known as a individual decision.after defining the problem the next important step is a systematic analysis of the available data. (A) Risk element involved in each course of action against the expected gain.after defining and analyzing the problem the next step is to develop alternative solution. Sound decisions are based on proper collection.

Three things are impotent in it. The group in the organization work under leadership. Simply stated it is concerned with process of checking the proper implementation of decision. A sound management is based on proper organizational structure which is concerned with determining responsibility and assigning of authority to different superiors and establishing proper inter relationship among them for achieving the desires objectives.this system ensure the achievement of the plan. It is a group of individuals may be small or large. (a) Proper and effective communication of decision to the subordinate. --------------------------------------------------------------------------------------------------------- Organization Meaning of organization:. It only acts as means towards the ends. Monitoring & feedback:. It is executed through control. (b) Acceptance of the decision by the subordinate is important. If possible a mechanism should be build which would give periodic report on the success of the implementation. It is clear that organizing is as process of determining the total activities to achieve a given objective grouping and assigning of activities to individual. An organization is not an end in itself. Characteristics of an organization 1.Implementation of the decision: under this step a manager has to put the selected decision into action for proper and effective execution of the decision. Group participation and involvement of employee will facilitate the smooth and continuous execution of decision. delegating them authority necessary to perform activities assigned and accomplishing authority relationship among the different positions in the organization. Follow-up:. (c) Correct timing in the execution of decision minimizes the resistance to change. organization is the establishment of effective behavior relationship among selected work persons and work places in order for the group to work together effectively . .organization is defined as a group of persons working together for a common purpose. That is accomplishment of firmed goals. 2.feedback provides the means to determining the effectiveness of the implemented decisions. According to George R Terry .

the individual groups of activities are then allotted to different individual according to their ability and aptitude. It implies a structure of duties and responsibility.a success of an organization depends apon the provision of power physical facilities and right environment. marketing and other activities.the objectives of an organization plan an important role in determining the type of structure which should be develop. Attention to objectives:. Span of management:.every individual is given the authority necessary to perform the designed activities efficiently.the activities and efforts of different individuals are coordinated. Process or steps in organizing Clearly defined the objectives:. power and responsibility deliberatively planned. Such coordination is necessary to ensure effective performance of specialized function. It is a mechanism of management. The division of labor. It is an established fact that group of individuals can secure better results by making division of work. 5. a manufacturing company will have production.in order to achieve the objective of the enterprise certain activities are necessary. It is established for equipment of common objectives. Responsibility of every individual should be well defined clearly to avoid duplications and overlapping of efforts. Delegating authority:.the first step in developing an organizational structure is to lay down its objectives in very clear term.it is also refers that span of control signifies the number of subordinates reporting directly to any executive. 7. Providing physical facilities and right environment :. delegation of authority and coordination.while constructing organization division of work should be considered as the basis of efficiency.3. 6. it is an established fact that large number of subordinate . 4. Coordinating activity:. Determining objectives:. clearly defined objectives facilitates grouping of activities. This will help in determining the type and basic characteristics of the organization. Authority delegated to a person should match with his responsibility. This is necessary for the smooth running and prosperity of the enterprise. It has some directing authority which controls the efforts of the group. Principles of organization Division of work:. Assigning duties:. These activities are well depend on nature and size of the enterprise.

reporting to one executive the more difficulty tends to him to supervise them and coordinate then effectively.authority should match with responsibility. Flexibility:. Unity of efforts for the accomplishment of desired objectives is main aim of organization.while designing the organization structure it should be kept in mind that such organizational structure should not be regarded as static. Coordination:. While assigning the responsibility required authority should also be assigned.Departmentation is a process if grouping activities into units for purpose of administration. Unity of command:. Management by exception:. Departmentation:.the principle of coordination is underlines that there should be proper coordination between different departments. The main advantage of Departmentation is that it enable individual executive to manage his subordinate effectively.it implies selective dispersal of authority to help dept and units to run efficiently and effectively without frequent interruption from the top of the enterprise.the organization should be able to attain the predetermined executive at the minimum cost. Authority and responsibility:. The structure in the light of environmental changes is successful. Decentralization:.this principle signifies that problems of unusual nature should be only should be refers to top level and decided by executives where as the routine problems should be based on to lower level and solved there. Since a managerial number of persons are brought under the direct supervision of individual executive.organizational structure should also be designed in such a way that there exist unity of command. Efficiency:. There must be sufficient room for changes and modifications. what decisions push down and what to hold at the top of management. . In the sense that single leader is an ultimate source of authority. It requires very careful selection of.

Organizational structure As structuring organization is a network of internal authority. It constitutes a formal structure with dynamic authority and clear responsibility. responsibility and relationship. 2. It is the framework of relationship of persons operating at various levels to accomplish common objective. An organizational structure is systematic combination of people function and physical facility. A formal organization is preplanned and defined. In an organizational structure both formal and informal organization takes shape. authority follows downwards. The formal organization being laid down by the common sentiments. Types of organization Line organization:. The subordinates are accountable to their immediate superior. It is characterized by direct lines of authority. . An important characteristic of such type of organization is superior subordinate relationship. interaction and other interrelated attributes of the people in the organization. 5. Order and instructions flow from top to bottom where as request and suggestions move from bottom to up. Principle of unity of command is the most important feature of this type organization. This is simple to operate and control. 4. 6. Under this type of organization. General manager Manager Authority Superintend Forman Workers responsibility Characteristics of line organization 1. There are limited numbers of subordinates under one superior. flowing from the top to down of the organization hierarchy line of responsibility flowing in an opposite but equal direct manner. Coordination can easily be achieved. Responsibility moves upward in the straight line.it is the simplest and the oldest type of organization. Taylors principle of unity of command is strictly followed in line organization. 3. Superior delegate authority to another subordinate and so on.

Decisions can be taken promptly. Quick decision:.it is very simple to establish and operate.under this organization the departmental head is fully responsible of every activity in his department. This provides him an opportunity to enhance his capability and its greatly helpful in his overall development and performance. Coordination: it has to achieve effective coordination.it is simple and economical in operation. Flexibility:.on account of its simple operation and unified control and responsibility. It is very difficult for a single .it is flexible in the sense that it is subject to quick adjustments suit to changing conditions. Fixed responsibilities:. Direct communication:.duties and responsibilities are clearly defined for each individual with reference to the work assign to him.absence of managerial specialization is the major drawback of this organization on account of many functions and complexities. Unity of command:.Advantages of line organization: Simplicity: . It does not need any expert and specialized person.as there will be direct communication between the superior and the subordinates at the different level. All the activities pertaining to ingle department are controlled by one person.every worker is accountable to one boss in the department under this type of organization. He comes across many problems and obstacles in performing duties. disadvantages of line organization: Overloading:.the type of organization ensure better discipline in the enterprise. Economical:. Executives development:. It would be helpful in achieving promptness in performance.the main disadvantage of this system is that it tends to overload the existing executive with too many responsibilities. Lack of specialization:. Discipline:.

.under line organization ultimate authority lies in the hands of top management. Lack of coordination:.he lays down the exact route or power to be fill by raw material transforming into finished product.he makes the availability of different machine and tool requiring worker to carry out their work. Functional organization implies that the organization should be based on various functions. Time and cost clerk:. Scope of favoritism:. Tailors concept of functional foremanship is a comprising of eight different foremen discharging different function.individual to control all the matters effectively.under line organization suggestions move from down to upward. Gang boss:.there may be a good deals of favoritism under this organization.he is responsible for maintaining proper discipline in the organization. Departmental managers have little role.in reality it is very difficult to achieve proper coordination among various departments operating in all organization. Every worker in the organization is directly concerned with these Foreman. As the concern officers will judge the performance of the personnel and work according to his own standards. Lack of communication from lower rank:. Shop disciplinarian:. The eight specialized foreman are:- Route clerk:. Instructional card clerk:. The executive may not the expert in all aspects of managerial activities.W Tailor who is known as the father of scientific management develop the concept of functional organization. This is because each departmental manger carries the function of his department in accordance with the ways and means suitable to him. The superior usually do not pay attention to suggestions sent by lower rank.he determines the total time to be taken in the completion of a product and also works out the cost of production per unit. Functional organization F. Tailors functional approach is mainly based on the principle of specialization. Lack of initiative:.he prepares detail instructions to be followed in doing the work as per the route laid down by clerk.

this type of organization ensure enhanced efficiency as workers operating under the expert.the functional formation have to carry out the limited number of duties covering their area of work. Multiplicity of experts increase the over held expenditure for the small organization. Repair boss:.Speed boss:.appointment of several experts in the organization creates the problem of lack coordination and delay in decision making.the authority relationship relates the principle of unity of command. It creates several bosses instead of one line authority. He will guide subordinate with specialization to attain the specific object. Inspector:. disadvantages of functional organization:conflict in authority:.he is concerned with proper maintenance and repair of machine for keeping them in working order.it is flexible pattern of organization.this pattern of organization is impractical and expensive. Limited duty:.he checks and certifies the quality of work whether or not it is up to predetermined standard. Increase efficiency:. They cannot afford to install such a system. it is difficult to fix the responsibility of a particular foreman. Advantages of functional organization:Specialization:.he controls the speed of different machine operating in the organization. Especially when decisions are require the involvement of more than one specialist. A change can be made without disturbing the organization. . Expensive:. Flexible:. He undertakes proper supervision over speed within which a machine should operate.this system derives the benefit of specialization as every functional incharge is an expert in his area. Difficulty in pin pointing responsibility: on account of the non application of the principle of unity of control . Lack of coordination:.

Training for line officer:. Better decision:. Staff role is advisory in nature.staff services hence proved to be an excellent training medium for line officer. Line and staff organization ensure a proper balance between the two.staff specialist help the line manager in taking better decision by providing them adequate formulation of right types at right time. General manager advisors Authority Manager Superintend Forman Workers advisors responsibility Advantages of line and staff organization:Specialization:. Line organizations concentrate too much on control.Line and staff organization This organization is an improvement over the above two mentioned systems. in line and staff organization line officers get the advice of the staff.this type of organization is based on planned specialization and bring out the expert knowledge for the benefit of the manager. Line officers are usually assisted by staff officers effectively for solving various business problems. where as the functional system decentralized to great extend. Lesser burden on line officers: the work of line officers is considerably reduce with the help of staff. . Line and staff organization ensure a proper balance between the two. which is very helpful in carry on the task in an efficient manner.

They may not perform their duties well. Staff has no authority to make implementation of their advice.it is another reason for conflict line authority says that staff authority do not take any initiative they do the job only when they are asked to do. This causes conflict.thee may be confusion about the relationship of line and staff authority.whenever any job get successful the credit goes to line managers but staff authority says that the plan was their line mangers only implement it. . So they want credit for themselves.line members have authority to decide and to command. Initiative:. Line officer can complaints that staff does not always give proper or correct advice. Problem of line and staff authority:. Reasons of conflicts between line and staff managers Authority:. The staff officers object to it. Salary:. Line officers considered themselves superior in comparison staff officers. Lack of responsibility:. Expensive:. Staff advisors say that their ideas are not implemented so why should they take initiative. It is a reason for conflict because staff authority consider himself superior as they are experts and demand more salary.as the staff specialist are not accountable for the results. It is their choice whether to obey it or to disobey the staff s advice. On the other hand staff officer s complaints that there advice is not properly carried out.Disadvantages of line and staff organization:Conflicts between line and staff authority:. Importance:.there may be a chances of conflicts between the line and staff authority.the appointment of experts involves a heavy expenditure. so it is also a base of conflict. Small and medium size organizations cannot afford such a system.staff authorized are given less fees as compare to line authority.whenever a work is successful both line and staff authorities want to take credit but whenever there is a failure no one want to take responsibility for it. Sense of responsibility:.

ways to avoid conflicts between line and staff managers Understanding of authority relationship:. Also staff people should involve in basic planning process. There is less discipline There is n conflicts in line and staff officers.line officers should have authority for making operational decisions as they are responsible for the successful operation of the organization. They should not keep staff bury with unimportant problems.line officers are dependent on staff officer for solving the problem which require expertise knowledge and skill hence they make maximum use of staff officer. Staff person should keep contributing by making recommendation to line officer they should not rely apon authority of knowledge rather than the authority of position. . Line organization has no expertise or specialist to There are expertise and specialists to advice line advise to the line officer officer It is not based on specialization It is based on specialization There is complete discipline There is no conflicts. line organization:- line & staff organization. Proper use of staff:. Setting congenial organizational climate:.congenial organizational climate means full of mutual trust. respect. Difference between the line organization and line & staff organization. self control and mutual help is another important factor for successful operation of lie and staff personnel. it is concerned with those position which have the It is concerned with the positions which are mend responsibility of achieving the main objectives of for providing advice and help to line officer in the organization attainment of organizational goals.

Difference between the line organization and functional organization. In it there is loose discipline It is applicable to large scale organizations. Where specialization is must In it there is complete discipline It is applicable to small scale organizations Formal verses informal organization Formal informal this organization is deliberatively created by It arise continuously and not continuous effort management is made to make it. each subordinate get instructions from his different bosses. functions It can be shown in organizational chart It cannot displayed on organizational chart . line organization In it authority flows from top to bottom There is complete unity of command functional organization In it authority is functional There is no complete unity of command. It is based on rules and regulations It is based on attitudes and emotions of people It is predictable It is not predictable In it main emphasis is placed on authority and In it stress is on people and their relationship.

The powers are usually delegated to the departmental head by whoever in turn delegate some of his powers to their immediate subordinate in their respective department. delegation of authority is key to organization. Creation of an obligation:. in order to accomplish particular assignment.if a man is assigned certain duties he must also be given authority necessary for the performance of such duty. . The chief executive is responsible to carry out every work himself. He cannot do the entire work himself.Delegation The concept of delegation is inseparable part of the process of administration. A subordinate gives him promise to do his best.duty means the activities which the superior is expected to perform by virtue of his position in the organization. George R Terry. Elements of delegation Assignment of duties:. Delegation of authority is an important managerial practice of getting things through others by sharing the authority with them. Authority is the granted to an individual to direct and influence his subordinate. Koonz & Donnell. Right use raw material. Delegation is a means of assigning work to others and giving them the necessary authority to do it. Delegation is conferring authority from one executive s organizational unit to another. spend money to purchase it etc. In order to lesser the burden he delegates some of his powers to his immediate subordinate in the managerial hierarchy. carrying out his duties. In simple words it is the work to be completed so in it a person in delegation perform a job or completes a given work a according his responsibilities. Granting authority to perform the duty:. He can be held accountable for results.it is obligatory on the part of the subordinate to satisfy his superior that he performed his duties according to the best of his ability by accepting an assignment. Just as the authority is the key to managers job. Having taken a job he is bound to complete it.

to make delegation effective free flow of information also have great significance. Definiteness of authority and responsibility:.it is to be noted that work of delegation should not begin until the objectives are laid down. The authority delegated to a manger should be adequate enough to accomplish the results expected of him.some manger think that they can do the task better that subordinates. Obstacles or blocks in the delegation of authority or reasons of failure in delegation of authority On the part of superior Feeling of perfectionism:. Lack of ability to direct: lack of ability of the executive to identify and communicate the essential features of his plan creates obstacles for effective delegation. He is also to be given responsibility to do a job. Free flow of information:.Principles of delegation:Authority should be coextensive with responsibility:. Authority should be always delegated according to responsibility. There should be mutual understanding between superior and subordinate so that authority may be properly interpreted and decisions can be taken without delay. Unity of command:. Ultimate responsibility cannot be delegated:. For this reason they do not delegate authority. Establishment of objectives with intelligent planning:.by delegating a authority a manager cannot free himself from his own obligation rather it increase its responsibility. Assignment of duties in terms of results expected:.it is an important guideline to effective delegation since it lies on the assumption that goals are set to achieve them.there should exist unity of command in the sense that employee should receive order and instruction from one superior only.if a subordinate is given a responsibility to do a task.to make any delegation effective the primary requirement is to pass on clean cut authority to the subordinate with definite assignment. . He will now be accountable to his superior for act of his subordinate also.

Fear of competition from subordinate: in delegation of authority subordinate learns to take decision. The manager may develop a feeling of fear of competition from subordinate. Lack of positive incentive:.a conservative attitude of manger and his conscious temperament generally acts as obstacle in the delegation of authority. Dependence on the boss:.an employee find it difficult to take authority from his superior when he is not fully able to handle it and still dependent on superior.a subordinate lacking in self confidence will generally try to avoid delegation.Lack of confidence in subordinate:. The difficulties in delegation of authority may also lie within the organization:Vague organizational structure:Non clarity of authority and responsibility relationship:Planning and policy formation:- .a subordinate may be willing to accept more work. the subordinate avoid shouldering responsibility because of following reasons. On the part of subordinate: even if the superior are willing to delegate the authority. if he does not get adequate positive incentive in the form of pay and promotion etc. Lack of self confidence or fear of failure:. capacity and dependability of the subordinate restrict the boss to delegate authority. On the part of organization. Fear of criticism: if a subordinate finds that he will he will be criticized even for a small mistake he will shirk from accepting authority. Lack of confidence in ability. As the process of delegation involves risk which a manager with manage with conscious temperament would not like to undertake. Conservative attitude and conscious temperament:.delegation implies a mutual trust and confidence between the manager and subordinate.

If the person has to accept the delegation should be provided with detailed information with emphasis that work is both necessary and important.assignment should be clearly defined in terms of goals or results expected. improved working conditions. unless they are motivated by better wages.to get best results it is the duty of every manager to see that subordinates are motivated to do their job willingly. . The superior must give the instructions in clear words. promotion etc. Motivate subordinate:.if a manager is to perform efficiently he need to know what is job is and how much authority he has to perform it further a supervisor who is not sure his authority will make every question to his chief for decision.delegation is difficult process and can be accurse only by setting necessary training. methods to make delegation effective. Manager should give proper training to his subordinate to accept delegation. Establish adequate control:. Clarify responsibility and authority:. guidelines to delegation. The experience of many expertises provides the foundation for these guide factors explains below. Determine goals. Two way communication:.there should be two way communication between the superior and subordinate. Delegation is an art not science so there is no principle to improve the skill of delegation. He must allow the subordinate to seek clarification and guidance whenever subordinate feel some difficulty..How to make delegation effective or principles. For this the subordinate should be courage to follow the means of self control. Provide training:.control system in effective delegation should be such which can free executive from routine inspection yet enable him to maintain this accountability. Manager will have to improve the skill only by experience.

centralization of decision making is essential in case of multiunit and multi branches of a company so that there is uniformity of action.an enterprise running on the lines of centralization need not to have highly skilled personnel. Henry Fayol . Less skilled subordinate:.in the centralized organization emergency can be handled promptly. Centralization is that organization where the role of the subordinate is reduced Advantages of centralization Facilitate personal leadership:. It results in economy of wages and salary. Limitations of centralization: Centralization of authority increase the Burdon on the top executive and little time is left for attending to important functions of management like planning organizing directing etc. It reduces the scope for specialization as the person taking decision at the top level are not all around expert. Uniformity of action:. Centralization effects the growth and development of the subordinate as they do not given any authority to take important decision.Centralization Under centralization the executive reserves the authority with himself instead of delegating it to his subordinate but where he is forced to delegate he may do so by do not delegating adequate authority so that subordinate must approach him to arrive at the appropriate decision.in a small company centralization is desirable since the leader has to take quick decisions. Handling emergency:.

Decentralization refers to the systematic efforts to delegate to the lowest level or authority except that which can only be centralized at central point Levis Allen Advantages of decentralization Reduces the burden of top executive: it reliefs the top executive from the burden of performing various functions. Decentralization may or may not criticize as a systematic policy in the organization. Size:.decentralization improve the moral of the employees as they get involved in decision making process.delegation hardly faces any problem of coordination to the delegation of authority where as decentralization faces a problem of coordination. On the other hand decentralization receives him responsibility and the subordinate become liable for that work.Decentralization It is concerned with the decentralization of decision making authority to the lower level in managerial hierarchy. Facilitate diversification:.in the delegation the final control over the activity of organization lies with the top executive. Need or requirement:. He get things done in the organization.delegation is require and give good results in all types of organizations respect of their size. It promotes motivation:. while in decentralization the power of control exercised by unit heads.under it the diversification of product activities etc. Decentralization is effective only in big organizations. can be effectively done. Executive development:. Final control:. .delegation is almost essential for the management. Coordination:. Distinction between and centralization End responsibility:.When the authority is decentralized executives in the organization will get the opportunity to develop the talent by taking initiative which will also make them ready for managerial positions.in delegation a superior delegates some rights and duties to subordinate but his responsibility in respect of that work does not end.

It is also unite all activities of the business. It is very close to effective leadership. Principle of coordination: Early beginning: coordination must starts from the very beginning of management process. Each specialist tries to over emphasis his role. To coordinate is to harmonize all the activities of a concern so as to facilitate it working and its success Henry Fayol Importance of coordination or need for coordination: Specialization:. If individual is diverting him from the path of organizational goal he may be told to achieve the objectives of the organization.each individual in an organization is a complex and unique personality individual access and interpret organization goal from their own view point hence management has to coordinate the activities of these individual.it is very important for every enterprise to bring about coordination between organizational goal and individual goal. Thus coordination is necessary between line and staff officers for achieving the goals of the organization. The staffs officers may be confuse their authority with line officers. Decentralization is the result of big size and multi functions of enterprise. .Formation type: delegation is the result of human limitations to the span of management.the creation of line and staff structure in an organization is also creates a problem of coordination. In other words coordination must begin at the planning stage itself. It is difficult to coordinate the plan which has already started. Different outlook:. Coordination of divest activities of various department is of utmost important otherwise there may be a confusion. Coordination involves the integration of the various parts if the organization in order to achieve goals of an organization both physical as well as mental coordination is necessary.an organization is divided into various departments and each department is headed by a specialist. Remove conflicts of individual and organizational goal:. It is the job of harmonizing the activities of different individual or group as also reconciling conflicting interest. Line and staff structure:. Coordination It is concerned with unifying the actions of a group of people for some common purpose.

Formulation of clear-cut policies and procedures:. There should be organizational chart job description as there help to great extent in securing coordination. Flexibility: process of coordination must be flexible it must such that it changes with the change in internal and external environment.effective communication is essential for coordination. Every member of the organization must consider his individual interest subordinate to interest of organization. mutual exchange of ideas helps in varying harmony among the different departments of enterprise.in order to have an effective coordination it is essential that there should be a common understanding of the main objectives of the organization. Voluntary cooperation:. Techniques of or methods of coordination. Confusion regarding authority increases the problems of coordination because the responsibility can be fixed only when the authority and its sources are clearly defined. Define clearly authority and responsibility: in an organization there is several vertical and horizontal authority relationships. Authority flows from the top to bottom. It will ensure unity of action.Direct contact among parties: it is important for coordination that there must direct and personal contact among all levels of management. Sound organization structure:. Once there must be a regular exchange of ideas through a good communication system. Direct communication helps to solve the individual and departmental differences. Through decision. if all the members of the organization work as team the results can be automatically follows. . Existence of community and interest:.it facilitate cooperation.coordination become very easy if there is clear-cut and well defined policies and procedures.it is essential for coordination that here should be sound organizational structure. Continuity : it is continuous process and not like solving a problem. It helps in developing common understanding and mutual trust. Mutual communication:. Effective control: when an integrated control system is in existence it automatically ensures co oriented group efforts.

Difference between coordination and cooperation. An individual s weaknesses can be converted into strength by recognizing it and by making an effort in that direction. The first two variables are internal to the organization. 3. opportunity and threat. weakness. 3. 2. 4. 2. Coordination 1. Its scope is boarder then cooperation 4. Every individual can make a best of his strength and weaknesses. . It s a collective action of a group of persons towards the common goal. Its main purpose is mutual help. It is an important element of the coordination. It is the result of concise efforts on the part of the management. It is a proper method of group efforts to provide unity of action to achieve the goals of enterprise. Its purpose is to attain the goals if the enterprises effectively and economically.strength. Cooperation 1. where as last two are external. SWOT Analysis Internal variables Strength Weakness External variables Opportunity Threat The term SWOT is acronym made of four words. Similarly it is very important to be aware of the opportunity that comes to use at various parts of time and possible trust that also come from other person. It happens through voluntary efforts of individuals.

Lack of proper distribution system. Threats of business? Loss of sale New competitor. To enter the foreign market To acquire rival firm. Opportunity for business? To extend the existing companies product line.SWOT Analysis Internal external Strength weakness opportunity threat What is strength of business? Technical expertise Efficient human resources Goodwill Strong research and development Joint venture with MNC s. To find out new sale growth opportunity. . Weaknesses of business? Less competent staff Obsolete plant and machinery Inefficient leadership.

It evaluates the business environment in a delegated manner so as to take strategic decisions for the future course of action. An undertaking comes to know both internal as well as external functions effecting its success and failure. It helps in the formulation of a strategy.Importance of SWOT analysis it brings the light whether the business is heavy or sick. . how to make preparation for the possible threat from the competitor.

A French management consultant has suggested that the fixation of number of subordinates based on mathematical conclusion. larger the number of superior required. . This concept effect organizational design in a variety of ways including speed of communication flow.wide span of management structure reduces the level of management. Early ideas of span of management The classical approach to span of management has deal with embodying specific number of subordinates for effective span. It influences the complexities of individual manager s job. It is a dimension of organization design measured by the number of subordinate that report directly to a given manager. 1. Relationship arises because of mutual interaction of subordinates working under a superior. He examined the superior subordinate relationship and develop mathematical formulas. A small span of management would make it necessary to have more managers. Widen the control of management and is often more centralized. Types of management Narrow span of management: a small or narrow span of control result in each manager supervising small number of employees. Classical writers have suggested before tree to eight subordinates as ideal. 2. It also knows as a span of control and span of specialization. Direct single relationship where direct individual contact the superior. It refers to the number of subordinates who can manage effectively by a superior. 2. It determines the shape of organization. Fewer the number of subordinates reporting to a manager. The narrow span of management would result in slower communication between lower level employees and top level managers of the firm. The number of subordinates who are responsible to a superior has two important implications 1. Wide span of management:. He identifies three types of relationships. 3. employees motivation and administrative overhead. Direct group relationship arises in all possible combinations.Span of management It describes the number of subordinate that reports to each manager.

Factors that may affect span of control Job complexity: subordinates job that are complex. The request will be that the manager cannot supervise as many employees and would be most effective with narrow span of management. Such managers can function efficiently with a wide span of management. Physical proximity of subordinate: the more geographically dispersal a group of subordinate have the more difficulty arises. Motivation need to spend more time with employee. It is for manager to be in regular contact with them and the fewer employees the manager could reasonably oversee resulting in a narrow span of management. over manager who do not have access to the use of technology. Similarity of subordinate job:. Technology: cell phones email and other forms of technology that facilitate communication and the exchange of information make it possible to manager for increase their span of management. dynamic and complicated will require more management involvement and a narrows span of management. Ability of the manager:. Ability of employee: manager who supervise more number of employees that lack ability of employee. .some managers are better at explaining things to subordinate and more efficient in performing their job.the more similar and routine the job that subordinates are performing is the easier it is for a manager to supervise employees and the widen the span of management that likely to be effective.

measurable and result oriented. So that management and employees can understand their job. . Writing objectives:. He is ready to sit down and write his objectives. Where most of results can obtained. Objectives review: after the setting of objective has been agreed apon by the officer and his boss the stage is set for managing these objectives.(MBO) This term was firstly popularized by Peter Drucker in 1954. To provide direction to the entire organization. This managing process is the responsibility if the subordinate manager and it is interrupted only by the mutually arranged formal review session with the superior. Indentifies key result areas: the manager must identify the key result area of responsibility that are assigned to his unit. MBO process can be divided into three steps. The MBO process requires that the manager and employees agree to what the employee will have to achieve in the period ahead and that employee accept the objective. The main criteria are that they should be specified. The objectives are: 1. This process takes place in three general steps. 1. Manager objective setting: each individual manager in the organization must now determine the objectives for his office. MDO is a process where by a superior and subordinates of an organization jointly identifies it confirm goals and define each individuals major area of responsibility in forms of a results accepted of him and use these measures as guide for operating the unit and accessing the contribution of each of its members. It is important for the individual office manager to identify the areas of his unit. Process or steps of MBO. Organizations objectives setting:. It is a process of agreeing apon objectives within an organization. In the other words MBO requires that each individual have the freedom to perform a well define task without interference.Management by objectives:. 2. To provide guideline for subordinate level manager to formulate their objectives.this step require the top manager of an organization to review the purpose for which the organization exist with the mission in the mind the supervisor and his staff must then set organizational objective in area where they will concentrate its efforts during approaching the objective setting period.after a manager has identifies his key area of responsibility.

Question mark: business with high industry growth rate but low market share for a company is question mark.cash cows are businesses which generate large amount of cash but there rate of growth is low. question mark and dogs. If the company feels that it can obtain a dominant market share it may select expansion strategy otherwise retrenchment may be more realistic alternative. Cash cows:. Stars: stars are high growth and high market share business. The horizontal axis represent the relative market share. These businesses can adopt mainly stability strategy. Each of the cells represents a particular type of business. Question mark businesses are usually new products or services which have a good commercial potential.BCG (Boston Consulting Groupp) The BCG matrix provides a graphic presentation for an organization to examine the different businesses in its portfolio on the basis of their relative market share and industry growth. Dogs: those businesses which are related to slow growth rate and has a low market share formed as dogs. The vertical axis denotes the rate of growth in sales in percentage for particular industry. The experience curve for the company show that problems are during low . Business can be classified on the BCG matrix as either low or high according to their industry growth rate and relative market share. In the Indian contact there are many businesses which would be consider as stars for example reliance communications. fast food etc. They require large amount of cash to maintain a gain a market share. mark Cash cows dogs Low Relative market share The four cells of BCG matrix have been termed as stars. High low High Industry growth rate stars Ques. A company generally presumes a expansion strategy to establish a strong competition position with regard to stars business. cash cows.

Planning premises are the anticipated environment in which plan are expected to operate. 3. 2. 4. Planning premises can be classified as follows: (1) External premises:. In other words external premises are those assumptions that are around the various types of markets like product market. They include assumptions of the future that will affect the plan.these can be measured in quantity like money.these premises are controllable with the management for example managerial policies. International premises: it includes international social and economic condition. National premises: it includes political social and environmental etc. 2. time and units of production etc. It does not helps in comparing relative investment opportunities across different business unit in this portfolio. A major source of premises is forecasting which indicates that what is to be expected in future and this provides a framework on which plans are formulated. Tangible:. It is hard to clearly define the matrix as such it is difficult to measure accurately the market share and growth rate. 3. Intangible: those which cannot be quantifies such as goodwill of the concern. . The dividing of matrix into four cells is not simple. It does not recognize the market with average growth rate and average market share. Premises are the assumptions on which plans are formulated. Strategic evaluation may require more than the market share and growth rate. 5. Various types of external premises are:1. Limitations of BCG MATRIX 1. Controllable:. The only possibility for a company should be gain market share at expenses of rival firm. A business unit may be started because of technology. 4.these are based on factors that prevail outside the enterprise. capital market and labor market. Planning premises Planning is undertaken under certain premises. material market.market share. market condition and cultural trends etc.

(2) Internal premises:. Merits Skinning market Demerits Launch of a product Merits Penetrating market Demerits demands rural customer demands of urban customer demands rural customer demands of urban customer . competence of management abilities and skill of labor. Constant:.those premises which behave in the similar passion irrespective of action taken. Uncontrollable:. machine. A solution to such problem is decision tree.these are internal to the organization and known as sources and ability of the enterprise in the form of man. money and material. 7. money.6. 8. It is a graphical method of identifying various alternatives to a problem. Commitment to certain plan wage incentives etc these are fully controllable. These include man. So it is very difficult for a decision maker to resolve uncertainty. It helps the decision maker to study the pros and cons of various alternatives to a particular problem. Decision tree analysis In certain cases one decision depends apon the outcome of another and so on and in such cases lot of certainty prevails. estimating the responsibility and indicating the expected pay of this decision tree.these are unpredictable and uncontrollable like natural climate. Variable: these premises keep on varying in relation to course of action taken for example also sale volume of organization cannot be partly controlled by the management but there are certain factors which effect the sales volume of the enterprise.

Many of the problems become so complex with decision tee that complexities are to be used to solve the problems again the layman cannot use methods for taking decisions. Topics Departmentation Social responsibility Mission Departmentation and basics of Departmentation. Finding out probabilities is only possible with the help of expert. . 3. It is possible with the help of probabilities to make true decisions leading to desired results. Limitations It is very complex method as the various alternatives and events sometimes make it difficult to find solution. It makes possible to see at least major alternatives available and the results of subsequent decision based on this decision alternatives.Advantages or uses of decision tree 1. 2. It accesses the outcomes in quantitative tenses. 4. It gives answer to complex situations. It is based on the probability so no defined solution of a problem is given.

In this sense control means power or authority to direct. Process of control:Fixing standard: a standard means a way of finding what a thing should be. It is guide somebody in the direction in which it is intended to go. Slandered should be expressed in numeric form. Correcting deviation: after the causes of deviation are known. Like quantity of goods of product. Management should concentrate in significant deviation. suitable steps are taken to avoid deviations in the future. cost to be incurred or profit to be earned. standard refers to the objectives to be achieved in order to judge whether the actual performance is along the line. Measurement of actual performance:. They should be determined very carefully and scientifically. A 1000 900 -100 b 2000 2200 +200 c 2500 standard 2500 actual performance 00 deviation Comparing accrual performance with standard performance:. This involves the lying down of methods of evaluation performance. 1. reaffixing goals and standard etc. Find out the extend of deviation: identifies the causes of such deviations. It is also implied a standard of comparison for the results of any operation of experiment.the third major step in the control process in the attainment of actual and standard performance. In the context of business enterprises. It includes two steps. This will involves taking certain decisions by the management like modification of plan. . 2.after fixing standard the second step is to measure actual performance of various individual groups or units. the performance of the organization confirms to the plan.Control Control is a universal and important function of management. In terms of managerial function control consist of the step taken to measure that . Observation done in cases where standard has been set in numeric term. Standard serves as a basis of control.

Fixed forward control:. Control process necessitates future managerial control.many managements by experience have find out that the time lack in management. Feed forward control focus on operation .the management control is generally observed as a system of feedback refers to the process of adjusting future action on the basis of information about the past performance. rules and regulation for guiding employee task and behavior. measuring performance and correcting the deviation if any. Concurrent control: it involves the regulation of ongoing activities that are part of transformation process to ensure that confirm to organizational standards. Control is more complex and simple then this simple process. These standards rely on performance standards. they make a correction themselves or let the manager know that a problem is occurring. It they see that standards are not being met in some area. Fixed forward control can give the manager a correct and timely idea of not only taking corrective action but also possibility of the occurrence of certain problem. It measures whether the items being produced meet the quality standard. This is because the feedback system involved in this process. Employee monitor the measurement.Setting objectives Measure actual performance Correcting deviation Take corrective action. Control gives them the idea of feedback system. The following chart depicts the feedback process involved in a management. Types of control: Feedback control:. Actual performance Measure accrual performance Compare actual with standard Identification of standard Design program Program of corrective action Implementation of corrective action Analyses deviation It is clear from the above chart that the system of management control is just a simple process of establishing standard.

Budgetary control presumes that management has made budget for all departments of the enterprise and these budgets are summarized into a master budget. Budgetary control involves the following three steps. when known are compared with the budget estimate. 4. It facilitate control by establishing budget in respect of each function and assigning responsibilities for control of actual performance.before they begin. It is prescribed in such a way as to make a comparison with some predetermined standards. The data presented can be meaningfully provided. 2. Characteristics of budgetary control 1.statistical data are widely used for the purpose of managerial control. Thus standard cost is in a technique of cost accounting in which standard cost are used on recording certain transactions and the actual cost are prepared with the standard cost to find out the reason of variation from the standard. 2. 3. Time pass events cannot be allowed. Such standards are set in respect of total cost as a whole and its various components like material. Cost accounting and cost control: cost accounting is concerned with cost determination and shows what is likely to be cost of process or a product under existing conditions. C) Revision of budget in the light of changed circumstances. as possible and actual results. Statistical data quality control:. Budgetary control need recording of actual performance and continuous performance with the budgetary performance and analysis the variation.it is applied to a system of management and accounting control by which all the operations and outputs are forecast as far as ahead. 3. The manager must ensure that statistical reports shows . For example it includes system safety etc. labor and overhead. There goals is to prevent a problem with regular maintenance. Budgetary control assumes the existence of forecasted plans of various enterprises. Budgetary control involves the use of budget to plan coordinate and control day to day operation of business in accordance with the overall objects of business. Budgetary control:. Techniques of control Traditional techniques:1. Control through costing involves the control over cost in the light of certain predetermined costs. These may be presented in the form of statistical table and graphical charts. A) Preparation of budget B) Continuous comparison of actual budget with the planned one. It prevent deviation in future. Budgetary control is a system suggested suitable corrective action.

(3) To organizational structure is to be reviewed to access whether it can effectively fulfill the overall objectives of the detailed target.management audit attempts to evaluate the performance of various management process and functions. (2) Determine the proper sequence of the activities.e. PERT was developed in the late 1950 s for the US navy. Such special investigation generally discloses opportunity for lots improvement.even though routine accounting and statistical reports give a major information experience of certain area. Special reports and analysis:. (3) Construct a network diagram. Pert planning involves the following steps. 4. (4) The performance of each financial area is to be examined on the basis of above examination. (2) The overall objectives of the organization are to be broken up into detailed targets i. PERT(Project evaluation and review technique) It is a basic network technique which includes planning. Modern techniques 1. While doing so they may reveal area where the management can achieve significant improvement in the efficiency. Such problem area calls for special reports and analysis from special trained analytics meant for investigation and analysis such special problems.correct trend so that the person who views them can easily be understand the way things are moving. (4) Estimate the time require for the each activity. (1) Identification of the objectives of organization. It is an audit to examine review and approve the various policies and authority of the management on the basis of certain objective standard. monitoring and controlling of activities. Realistic course of action is to be suggested. (5) Determine the critical path (6) Update the pert chart as the profit progress. The PERT is a network model that allows for randomness in activity completion time. (1) Identify the specific activities. it is a comprehensive and critical review of all aspects of management. It goes beyond the conventional audit within the organizations . . Management audit:. The non routine nature of such special analysis may highlight the unusual things. a successful manager reveals that this is inadequate in certain area. It usually involves the following steps. plans for various segments. It has the potential to reduce both the time and cost required to complete a project. 2.

In Japanese companies workers do not like the idea that one individual should be rewarded for their performance. processing storing and communication information relevant to the various functions of organizations to various levels of management. Americans dislike this method because they believe in rapid feedback and fast promotion. MIS enhance the quality of management & growth of the organization by providing timely accurate and meaningful information for planning. 3. It they feel that there supplier is not giving them good deal they tend to look for somebody else. American company usually tends to use short term employment. 5. and customer to disturb organization. When a Japanese company has to make a decision they feel that the whole company should be involved. Americans on the other hand like praising and believe if a worker worked hard he should be rewarded for that. MIS is a scientific way of collecting. Beside job securities Japanese believe that there should not be any reason for employees. so that management may be facilitated In discharging its efficiency.3. 6. They believe that it is not right to compete workers. Difference between Japanese management and American management 1. The purpose of MIS is reporting & is to provide the necessary information to the managers and supervisor at various levels to keep them continuing the functions of organizing. 4. People in Japan feel that a person should not be evaluated or promoted until he has served 10 years with company. MIS (Management information system ) with the coming of computer the management information system is becoming popular and growing very quickly. Japanese believe in the life time employment they feel that the company has not right in firing employees until they do a criminal offence. Japanese believes that it should not give employee a set target. . American in the other hand believe that in order to operate a business you must give them there fix targets. During these years they taught everything with company. planning. US companies are known to disturb the one another. decision making & control. 2. supplier. Only top level executive make decisions. In US companies workers do not allow to make decisions. organizing & controlling.

He was an American engineer who sought to improve industrial efficiency.Evaluation of management thoughts Contribution by F.W. 4. transfer etc.Taylor has advocated that there should be harmonize relation between employees and employer. It is only through the cooperation with the employees that manager can insure that the work is carried in accordance with the standard. highly influential in the progressive era. 3. Scientific management characterized that form of organization and procedure in which purposeful collective efforts witch rest on principles or laws derived by the process of scientific investigation and analysis instead of tradition. Mental resolution:. Taylor has emphasis the each job performed in the organization should be based on scientific inquiry and not on institutional experience and by hit and miss method. Meaning of scientific management: scientific management is an art of knowing what exactly you want from your men to do and see that is done in the best possible manner. Employer should not treat worker mare wage earner. In simple words it is application of science to management.selection means to choose the best employees according to the need. Scientific relation training and development:. He was one of the intellectual leaders of the efficiency movement and his ideas broadly conceived were. Taylor:Fredrick Winslow Taylor is known as a father of scientific management. Their skill and experience must match the requirement of the job. so that work is done with full efficiency. Science not a tool of thumb: according to this principle work assigned to any employee should be observed and analysis in respect to time and part involved in it. 5. Cooperation between employer and employees:. The way of doing a job should be clear to all. So that they can perform the job efficiently. Training should give to all employees who are selected for the job. 2.according to the Taylor the workers and manager should have a complete mental revolution in respect to their mutual relationship. Principles of scientific management 1. Scientific development refers the criteria for promotion. . Division of work: the responsibilities of workers and management should be properly divided and communicated so that they can perform them in an effective way and should be suitably rewarded for the same. Workers should be considered as part of organization.

Order Order. The management of work should be separated from its performance. simplified tasks. Jobs should be designed and staffed with order in mind. Equity should be guaranteed by management. Remuneration of personnel The pay received by employees must be fair and satisfactory to both them and the firm. y y Authority Authority is the right to give orders and the responsibility to accept the consequences of using authority. The absence of such stability undermines organizational performance. Scalar chain The scalar chain is a hierarchical string extending from the uppermost manager to the lowest subordinate. and experience are needed. and justice. It can be expected only when a firm s managers and subordinates agree on the specified tasks that subordinates will perform. It should be used when managers desire greater control. Pay should be in proportion to personal performance. if subordinates opinions. Initiative Members should be allowed the opportunity to think for themselves because this improves the distribution of information and adds to the organization s pool of talent. y y y y y y y y y y . and satisfaction. because it increases members loyalty. however. but employees general welfare must not be threatened by unfair incentive payment schemes. Unity of command Each subordinate should receive orders from only one hierarchical superior. counsel.Contribution by Henry fayol Henri Fayol¶s 14 Principles of Management y Division of work A firm s work should be divided into specialized. Equity Equity means enforcing established rules with a sense of fair play. Unity of direction Each group of activities directed toward the same objective should have only one manager and only one plan. Individual versus general interests The interests of individuals and those of the whole organization must be treated with equal respect. or everything in its place. Stability of tenure Properly selected employees should be given the time needed to learn and adjust to their jobs. Neither can be allowed to supersede the other. The line of authority follows this chain and is the proper route for organizational communications. devotion. Discipline Discipline is performing a task with obedience and dedication. kindliness. should be instilled whenever possible because it reduces wasted materials and efforts. No one should possess one without the other. Centralization Centralization is the retention of authority by managers. Matching task demands with workforce skills and abilities will improve productivity. Decentralization should be used.

Starting point:. Focus.Taylor laid great emphasis on standardization of work and tool but Fayol laid emphasis on the principle of general management and the function of management.tailor wanted to improve the efficiency of the employee of the lowest level and moved upward while formulating the principles of scientific management. Both have emphasized that management activities can be effective if these are based on sound principles.Taylor used the expression scientific management and Fayol expressed his ideas as a general theory of management. Similarities between Fayol and Tailor: 1.y Esprit de corps Managers should harmonize the interests of members by resisting the urge to split up successful teams. The principle of both was to improve the management practice.Taylor tried to improve the productivity of the worker and eliminate all kinds of wastage but Fayol tries to develop through better management. 3. Whereas Fayols work was concerned with efficiency of administrative manager. 2. 3.. Emphasis:. Both have emphasized that management qualities are acquirable. . 4. 2. Concern: tailors main concern were task workers and supervision. Principle of both proves that management is universal in nature. Expression:. 5. unity of command and coordination. 5. There principle emphasis mutual cooperation between employer and employee. The principle of both shows that management is required at all levels. 4. Both have attempted to overcome managerial problems in systematic way. 7. Henry Fayol v/s Taylor 1. They should rely on face-to-face communication to detect and correct misunderstandings immediately. 6. Fayol on the other hand began from the top level and proceed downwards with emphasis only with unity of direction.

Contribution by Chester Barnard:
He was a telecommunication executive. He looked at the organization as system of cooperation of human activities and was worried about the fact that they are typically rather short lived. According to him, this happens because organization does not meet the two criteria necessary for survival: effectiveness and efficiency. He contributed the following theories to management which are very helpful even today. These are the theory of authority and theory of incentive. Both are seen in the context of communication system that should be based on some rules Everyone should know of the channels of communication. Everyone should have access to the formal channels of communication. Lines of communication should be as short and as direct as possible.

In the theory of authority he states that for a communication four conditions should meet:
It has to be understood by the subordinate. It should be possible to the subordinate to comply. The subordinate has to see no incompatibility between the communication and his own goal. The subordinate has to see no incompatibility between the communicating and the objectives of the organization.

In the theory of incentives he sees two ways to of convincing subordinate to cooperate:
Tangible incentives Persuasion

He gives much more importance to persuasion then economic incentives.

Contribution by Dr. Likert:- he has conducted much research on human behavior
within organization, particularly in the industrial situation. He has examined different types of organizations and leadership styles, and he asserts that to achieve maximum profitability and good labor relationship and high productivity, every organization must make optimum use of their human assets. Likert identified four main systems: The exploitive authoritative system: where decisions are imposed on subordinates, where motivation is characterized by threats, where high levels of management have great responsibilities but lower level have virtually none. Where there is little communication and no joint teamwork.

The benevolent authoritative systemwhere leadership is by a condescending form of mast servant trust, where motivation is mainly by reward, where managerial personnel feel responsibility but lower does not, Where there is a little communication and relatively little team work.

The consultative systemwhere leadership is by superiors who have substantial but not complete trust in their subordinates, where motivation is by reward and some involvement, where a high proportion of personnel, especially those at the higher levels feel responsibilities for achieving organizational goals, Where there is some communication (both vertical and horizontal) and a moderate amount of teamwork.

Participative-group systemwhich is the optimum solution, Where leadership is by superiors who have complete confidence in their subordinates. Where motivation is by economic reward based on goals which have been set in participation. Where personnel at all level feel real responsibilities for the organizational goal, Where there is much communication and a substantial amount of cooperative teamwork.

Abraham Maslow:- a famous social scientist and philologist develop a theory of
motivation which is based on the hierarchy of needs. According to him there are five kinds of needs are: 1. Physiological needs:- it refers to those needs which are very essential for life for example food, shelter and clothing etc. the survival of human beings would be in danger if these needs are not satisfied. These needs are biological in nature and keep the body fit. 2. Safety needs:- after physiological needs are satisfied to a reasonable degree the safety needs take place for example security of job, pension of old age, insurance plans etc. in changing a job security need play an important role. 3. Social needs:- it include need for love, affection friendship and acceptance by group of persons. A man is a social being and he has a need to love and to be loved. Workers form informal group for having a meaningful relationship from others. Management should not object to such group. 4. Esteem needs: these needs are concerned with once self esteem. Such as self respect, self confidence, status recognition etc. the satisfaction of their needs produces a feeling of self confidence among the employees. 5. Self actualization needs:- these needs include need for self development, self actualization, desire to take an increase respect etc. not many employee try to satisfy their needs but an employee who wants to develop will feel restless till he satisfied this need. Maslow motivation theory has these three basics (a) A man is a social animal and always desire for more and more, his needs are of many types. (b) There is a hierarchy of these needs i.e. those needs are arranged in a serial of preference after the lower level needs are satisfied the need of higher level take their place. (c) A satisfied need level worker works as a motivator.

and political science. It was based on the contents of interviews conducted on 200 engineer and accountants. 4. They are called extrinsic (external) factors because they work outside the work being performed. 1. salary. working conditions. Hygiene or environmental factors: these factors such as interpersonal relation with supervisor. These factors include recognition. 1. The absence of hygiene factors cause dissatisfaction among the employees. Division of labor Hierarchy Formulized rules Impersonality Selection and promotion of employee on the basis of ability. He has found that there a two set of needs. 2. . security. 2. opportunity for growth. Herzberg theory of motivation Frederic Herzberg develops the two way factor theory popularly known as motivation hygiene theory. (3) According to this theory money is not a motivational factor as it has been included in hygiene factor. challenging work potential for personal growth etc. Motivational factors: these factors are intrinsic factors because they are rare indicator of job satisfaction and primarily exist where the work is being carried out. 3. economics.Contribution by Weber He was a German intellectual with interest in sociology. In brief these theories lay down that (1) The absence of first set of factors leads to dissatisfaction although they are not motivational factors. increase responsibility. Although they results in job satisfaction. (2) The second set of factors is important as they provide satisfaction to employees and are termed as motivational factors. (4) His approach to a motivation is based upon the fact that country is rich. religion. According to Weber following are the essential elements for an organization. 5.

3. Organization as a social system:. He wished management to understand the problems of workers and make effort to solve them.. if management want to enhance productivity . He said that the techniques of economic incentive were not only inadequate but also unrealistic. . 4. sense of participation and belongings recognition are some times more important than monitory reward. 2. He said that human being is complex and influential input into organizational performance.he is rightly called the father of human relation movement. Human relation approach:. New economic reward. Social man:. 3. 4. His main contributions are as follows1. as motivator where as Herzberg consider these only as hygiene factor and not motivator. 2. Maslow takes into account all needs of individual where as Herzberg looks at only those needs which are concerned with environment. People form informal group to seek guidance for the actions from such groups. Maslow considers lower level need such as pay safety working condition etc. Maslow formulated his model as on the basis of experience where as Herzberg develop his theory on the basis of empirical study. Maslow s thoughts are applicable to all types of employees where as Herzberg theory is mainly applicable to professional person.Difference between Maslow and Herzberg 1. He was able to show that respectful treatment. Contribution by Elton Mayo in development of management thoughts Elton Mayo was a first person to plead for the understanding for workers functions in the context of growth of science and technology.he was of the view that informal relationship in the organization are more efficient then formal relationship. He recognizes the importance of human being in management. The social and physiological needs of human beings cannot be ignored. He said that man is basically motivated by social needs and obtains his sense of identity through relationship with other.he has developed a concept of social man.the earlier assumption was that workers will work more if they are offered more monitory incentive.

coordinate. Frequently used in project management. Gantt. . a Gantt chart provides a graphical illustration of a schedule that helps to plan. These Gantt charts were implied on major infrastructure project and still are important tool in project management. A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L.Contribution by Henry Gantt He was a mathematical engineer and management consultant. Importing the greater effect of developed a pay incentive system with a guaranteed minimum wage and bonus system for people on fixed wages. Henry Gantt developed the Gantt chart which is used to scheduling multiple overlapping charts over a time period. Who is most famous for developing the Gantt chart in 1910. He focused on motivation scheme. Gantt also focused on the importance of the guidelines of leadership and management skill in building effective industrial organization. an American engineer and social scientist. and track specific tasks in a project.

and time span for each task. as. Automated Gantt charts store more information about tasks. almost inevitably. They also offer the benefit of being easy to change. As the project progresses. broken down into increments (for example.you cannot tell how one task falling behind schedule affects other tasks. A Gantt chart is constructed with a horizontal axis representing the total time span of the project. they diverge from the original plan. timing. Using the same example. but one problem with them is that they don't indicate task dependencies . arrowheads. The bar spans may overlap. or the portions of tasks that have been completed. Gantt charts give a clear illustration of project status. secondary bars. days. the major tasks involved might be: conduct research. weeks. and then enter the other tasks below the first one and representative bars at the points in time when you expect to undertake them. you may conduct research and choose software during the same time span. install software). which is helpful. Charts may be adjusted frequently to reflect the actual status of project tasks as.Gantt charts may be simple versions created on graph paper or more complex automated versions created using project management applications such as Microsoft Project or Excel. Horizontal bars of varying lengths represent the sequences. for example. A vertical line is used to represent the report date. . The PERT chart. another popular project management charting method. is designed to do this. choose software. or darkened bars may be added to indicate completed tasks. if the project is outfitting your computer with new software. or months) and a vertical axis representing the tasks that make up the project (for example. such as the individuals assigned to specific tasks. you would put "conduct research" at the top of the verticle axis and draw a bar on the graph that represents the amount of time you expect to spend on the research. and notes about the procedures.

The most significant rewards the satisfaction of ego and self-actualization needs can be direct products of effort directed toward organizational objectives. The average human being has an inherent dislike of work and will avoid it if possible. can assume responsibility. and wants security above all. equipment. Expending physical and mental effort at work is as natural as play and rest.Contribution by Douglas McGregor Theory X Assumptions Theory X 1. people would be passive about or even resistant to organizational needs. Avoidance of responsibility. and modify their behavior to fit the organization s needs. Without such active intervention by managers. Theory Y 1. The essential task of management is to arrange organizational conditions are methods of operation so that working toward organizational objectives is also the best way for people to achieve their own personal goals. Commitment to objectives is a function of the rewards associated with their achievement. wishes to avoid responsibility. Theory Y 1. control their actions. lack of . People will exercise selfdirection and self-control in the service of objectives to which then feel committed. people solely in the interest of economic efficiency. 2. The average human being does not inherently dislike work. 2. The manager s function is to motivate workers. 3. Managers are responsible for organizing the elements of productive enterprise money. The average human being prefers to be directed. materials. 3. Managers are responsible for organizing the elements of productive enterprise money. rewarded. managers are responsible for enabling people to recognize and develop these basic capacities. External control and the threat of punishment are not the only means to direct effort toward organizational objectives. and punished for the good of the organization. directed. Because people are motivated to perform. and are willing to work toward organizational goals. 3. controlled. Role of Management Theory X 1. 2. Because they dislike work. 4. 2. direct their efforts. have potential for development. people in the interest of economic ends. or threatened with punishment before they will put forth the effort toward achievement of organizational objectives. has relatively little ambition. materials. most people must be coerced. 3. workers must be persuaded. equipment.

and principally desires security. and the ability to use these qualities to solve organizational problems are widely distributed among people. directed and threatened with punishment to motivate them to work. 5. Employees are responsible for accomplishing their own work objectives. Work is as natural as play and therefore people desire to work. Since employees do not like working. ingenuity. is not ambitious. Employees normally do not like to work and will try to avoid it. 4.ambition. THEORY Y 1. controlled. THEORY X AND THEORY Y THEORY X 1. The average employee is lazy. the average employee will seek and accept responsibility. shuns responsibility. Under favorable conditions. the average human being learns not only to accept but to seek responsibility. Employees can be innovative in solving organizational problems. and emphasis on security are not inherent human characteristics. Imagination. 3. 2. creativity. they have to be coerced. 5. . Under proper conditions. Comparable personal rewards are important for employee commitment to achieving work goals. 2. 3. needs direction.

This approach draws many things from the decision theory approach and provides many techniques for rational decision making. The primary focus of this approach is the mathematical model.Management science This approach is also known as mathematical and quantitative approach. Management science is the discipline of using mathematic and other analytical method to help better decision making. Operation research mathematical tool. (1) Emphasis of management function and principle involved in performing function. (3) Central core of managing revolves around planning. directing and controlling etc. simulation basic methodologies to solve managerial problems. staffing. (2) Management functions are universal in nature irrespective of the type of organization. Operational research regards the management as universally applicable body of knowledge. organizing . Trough this model managerial and other problem can be expressed in the basic relationship and where a given goal is sought. 3. Management is regarded as problem solving mechanism with the help of mathematical rule. Management activities can be quantifies. 2. . Operation approach. The actions of which can be expressed in mathematical term. Features of this approach are as follows. This approach is also known as management process approach. That can be brought to bear it all levels of managing and in all types of enterprises. Features of this approach 1. At the same time the approach recognize that the actual problems manager face and the environment in which they operate may vary between enterprises and level and it recognize that application of science by perceptive practioner must take this into account in designing practical problem solutions.

Therefore the basic problem in managing is to make rational decisions. System approach: It is an integrating approach which consider management in its totality . Example the world can be considered as system in which various national economies are sub systems. Features of this approach are as follows (1) (2) (3) (4) (5) Management is essentially a decision making unit. Quality of decisions effect the organizational effectiveness.close systems are those which have no interaction with the internal and external environment and self maintaining. . The basic idea of this approach is that a object must rely on the method of analysis involving simultaneous variation of mutually dependent variables. The manager is a decision maker and organization is a decision making unit.The decision theory approach: This approach is concerned with how real and ideal decision makers make or should make decisions. a system approach is composed of related and dependent elements which in interaction form a unitary hole. This approach looks at the basic problems of management around decision making-selection of an suitable course of action out of given alternatives. Members of organization are decision maker and problem solvers. is based on empirical data. All factors effecting decision making are area of study for manager. The major emphasis of this approach is that decision making is the job of every manager. Close Versace open system Open system:. Close systems:. System approach is based on the generalization that everything is interrelated and interdependent. The major contribution in this approach has come from Simon. Organization can be treated as combination of various decision centers. and how optimal decisions can be reached. The basic idea of system approach is that any object must rely on empirical data.open systems are those which interact with environment they import energy and export out.

Skill Distinctive capabilities of personnel or of the organization as a whole. The top 3 s across the top of the model are described as hard s s Shared Value The interconnecting center of McKinsey's model is: Shared Values. over time. customers.7-S McKinsey model to better represent the challenges of a service marketing McKinsey has developed a new framework for analyzing and improving organizational effectiveness. etc. network. holding. The four across the bottom of the model are lies tangible in nature and termed soft s s by McKinsey System The procedures. matrix. processes and routines that characterize how important work is to be done: financial systems. Style Cultural style of the organization and how key managers behave in achieving the organization s goals. Staff Numbers and types of personnel within the organization. promotion and performance appraisal systems. . functional divisions (top-down). Central beliefs and attitudes. hiring. information systems. Strategy Plans for the allocation of firms scarce resources. What does the organization stands for and what it believes in. Environment. competition. decentralized (the trend in larger organizations). Structure The way the organization's units relate to each other: centralized. the 7s model. to reach identified goals.

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