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PRINCIPLES & PRACTICES OF MANAGEMENT (PPM

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Assignement Question Paper (ANSWERS)
Q1. (a) Functions of Managers: Evolution of Management Thoughts The operation / task of a Manager is related to the Industrial Revolution began in the eighteenth century and transformed the job of manager from owner-manager to professional, salaried manager. Prior to industrialization, the United States was predominantly an agricultural society. The production of manufactured goods was still in the handicraft stage and consisted of household manufacturing, small shops, and local mills. The inventions, machines, and processes of the Industrial Revolution transformed business and management (such as, the use of fossil fuels as sources of energy, the railroad, the improvement of steel and aluminum metallurgical processes, the development of electricity, and the discovery of the internal-combustion engine.) With the industrial innovations in factory-produced goods, transportation, and distribution, big business came into being. New ideas and techniques were required for managing these large-scale corporate enterprises. Management is creative problem solving. This creative problem solving is accomplished through four functions of management: planning, organizing, leading and controlling. The intended result is the use of an organization's resources in a way that accomplishes its mission and objectives. In Management, this standard definition is modified to align more closely with our teaching objectives and to communicate more clearly the content of the organizing function. Organizing is divided into organizing and staffing so that the importance of staffing in small businesses receives emphasis along side organizing. In the management literature, directing and leading are used interchangeably. Planning is the ongoing process of developing the business' mission and objectives and determining how they will be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal. Planning is concerned with the future impact of today's decisions. It is the fundamental function of management from which the other four stem. The need for planning is often apparent after the fact. However, planning is easy to postpone in the short-run. Postponement of planning especially plagues labor oriented, hands on managers. Organizing is establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders. Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function. In the family business, staffing includes all paid and unpaid positions held by family members including the owner/operators. Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives. Controlling is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary.

CO-ORDINATION- AS A TASK MANAGER:

Coordination- It is the act of coordinating, making different people or things work together for a goal or effect.

There are three basic coordinating mechanisms: mutual adjustment, direct supervision, and standardization (of which there are three types: of work processes, of work outputs, and of worker skills).

Mutual Adjustment This mechanism is based on the simple process of informal communication. It is used in very small companies, such as a 5-person software shop, or for very, very complicated tasks, such as putting the first person on the moon. Mutual adjustment is the same mechanism used by furniture movers to maneuver through a house, or paddlers to take a canoe downriver, or jazz musicians playing a live engagement. It's especially useful when nobody really knows ahead of time how to do what they're doing. Direct Supervision Achieves coordination by having one person take responsibility for the work of others, issuing instructions and monitoring their actions. An example is the offensive unit of a football team. Here, there is marked division of labor and specialization, and the efforts of the players are coordinating by a quarterback calling specific plays. If the organization is large enough, one person cannot handle all the members, so multiple leaders or managers must be used, then the efforts of these people (the managers) are coordinated by a manager of managers, and so on. Standardization A third mechanism of coordination is standardization. Here, the coordination is achieved "on the drawing board", so to speak, or "at compile-time" if you like, not during the action or "run-time". The coordination is pre-programmed in one of three ways: Work Processes. An example is the set of assembly instructions that come with a child's toy. Here, the manufacturer standardizes the work process of the parent. Often, the machinery in a factory effectively standardizes work by automatically providing only, say, blue paint when blue paint is needed, and only red paint when red paint is needed. Outputs. Standardized outputs means that there are specifications that the product or work output must meet, but aside from that the worker is free to do as they wish. Stereo equipment manufacturers have a lot of freedom in designing their products, but the interface portions of the product (the connections to other stereo devices like CD's, speakers, tape-recorders, etc.) must be the same as everyone else's, or else it would be hard to put together a complete system. Worker Skills. Professional schools, like medical schools, law school, business school, produce workers that do stuff exactly the same way. How do you treat a staphyloccocus infection? You use one of the following antibiotics. It's a series of recipes that are memorized. Employers (e.g., hospitals) can rely on these employees (physicians) to do things the standard way, which allows other employees (e.g., nurses) to coordinate smoothly with them. When a surgeon and an anesthesiologist meet for the first time in the operating room, they have no problem working together because by virtue of their training they know exactly what to expect from each other.

His five functions still form the basis of much of modern management thought and action. efficiency). Fayol was particularly interested in authority and its implementation while Taylor concentrated on work organisation (e. control (feedback and inspect) He also identified 14 principles that he saw as common to all organisations. 4. organise. FAYOLS ACTIVITIES IN INDUSTRIAL UNDERTAKING: 1. In many ways their views illustrating some of the differences between the USA and Europe. Organizing. command. co-ordinate. 2. Authority with responsibility Discipline Unity of command Unity of direction. His key work was Classical School of management Organisational Work Henri Fayol Henri Fayol (1841-1925) a Administration Industrielle et Generale. Commanding. Co-ordination & Controlling) 6. 1916 He belongs to the theory and was writing and exploring administration and work about same time as F W Taylor in USA. The views and attitudes towards organisations and management are not always led by American theorists. their approaches are quite different. Selling & Exchanging) Financial (search for optimum use of capital Security (Protection of property & persons) Accounting (Including statistics) Managerial (Planning. plan (and look ahead). Co-ordination & Controlling) .g. Organizing. He advocated a consistent set of principles that all organisations need to run properly.(b). Commercial Technical Financial Security Accounting Managers` Activities Managerial (Planning. Technical (Production) Commercial (Buying. Henry Fayol- People Whose Ideas Influence French engineer. Subordination of Individual Interests Remuneration Centralisation Chain / line of authority Order Equity Lifetime jobs (for good workers) Initiative Esprit de corps. 5. While both have a task focus. Specialisation/ division of labour. 3. Command.

nut it can get very complex and difficult to determine all the factors affecting the goal on the basis of situation This refers to the certain involvement of thoughts which results in developing & rediscovering previously known applications. Planning bridges the gap from where we are & where we have to go.Under this factor Managerial activities depends on the circumstances / environment around. 3. 2. Situational Approach.Planning logically precedes all other Managerial Functions. 2. 4. The FOUR MAJOR aspects of Planning are : 1. 2. But it differs with each Manager`s Authority. best way to do things. Staff : The people working within the organization. Primacy. (a). Strategy : Systematic action & allocation of resources to achieve companies goal.It has broad applicability.It is measured by the amount it can contribute to the purpose and objectives as off set by the costs required to formulate & operate it and by unsought consequences. organizing & controlling in an organization. Planning & Controlling are inseparable. The Seven “S” are as below : 1. Structure : Organising authority / responsibility relationships. Modern Management: The followings are the thoughts which has been discovered1. that is. 4.Q2. 5. Systems : The process & procedure requires for smooth functioning of strategy towards achievement of goals. It also requires decision making.This approach has recognized the relation between planning. Efficiency. The Systems Approach. 3. Organizations are open systems. Shared Values : The Values shared by the members of the company. Plans are efficient if they .The variety of approaches to management analysis. the amount of research and the number of differing views have resulted in much confusion as to what mgmt is & what theory & science to be applied & Managerial events to be analysed.with boundaries and also interacts with other external environment. 6. Managers have realised that there is no one. Pervasiveness. choosing from among alternatives future course of actions. It provides a rational approach to achieving objectives. Style : This refers to the way Management behaves & spends its time towards the achievement of goal. (b) Planning : It involves selecting missions & objectives and the actions to achieve them. 7. A Management Theory JUNGLE. McKinsey`s 7-S Framework: It was discovered & developed by the consulting firm of Mckinsey & Company. Its Contribution to purpose & planning for accomplishment of goal. This implies that any activity in an organization shows different patterns under different situations. Skills : Refers to the capabilities by which the targeted goal is achieved. 3.It is a necessity for all Managers.

Rules. Objectives : These are defined as the important ends towards which organizational & individual activities are directed. allowing no discretion. The purpose of policies is to guide decision making by marking off areas in which managers can use their discretion. It may deals with operations. Objectives OR Goals. 4. Since they are guides to decision making they must be followed for some discretion otherwise. Programs.This identifies the basic function or task of an enterprise / agency / any part of it. Policies. It is expressed in financial terms: labour hours. 8. Procedure. they would be rules. organizing. staffing. or machine hours or in any other numerical measurable term. an objective. Rules are also serves as guides. 7. 6. A procedure which guides action without specifying a time sequence. Management By Objectives- .These are plans that establish a required method of handling future activities. policies. because it is in the form of numbers & it forces precision in planning. The essence of a rule is that it reflects a managerial decision that some certain action must. It is also reffered to as a numberized program. Objectives should be verifiable. They detail the exact manner in which certain activities must be accomplished. Budgets vary considerably in accuracy. Some budgets vary according to the organizations level of output and are called Variable OR Flexible Budgets. be taken. TYPES OF PLANS: 1. can reflect capital outlays or may be shown as cash flows. and contribute to.These are the ends towards which activity is aimed. units of products. make it unnecessary to analyze the same situation every time it comes up. detail and purpose. that is.These spells out specific required actions or non-actions. leading & controlling are aimed. Strategies. task assignment. resources to be employed and other elements necessary to carry out a given course of action and are ordinarily supported by Budgets. rules. or must not.These define an area within which decision is to be made & ensure that the decision will be consistent with.This is defined as the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources. at the end of the period it should be possible to determine whether or not the objective has been achieved. Budgets. They represent the end point towards which planning. These should be distinguished from policies.It is a statement of expected results expressed in numerical terms. 5. when cost is measured not only in terms of money or time or production but also in the degree of individual and group satisfaction. A rule may or may not be part of the procedure. It permittes Managers to delegate authority and still maintain control over what their subordinates do.These are a complex of goals. 3. 2. Missions OR Purpose. The Major advantage of Budgeting is that it makes people plan. Zero Base Budget is a combination of the variable budget and the program budget. but they allow no discretion in their application. steps to be taken. A procedure might be looked upon as a sequence of rules. On the other hand Government agencies have or develop program budgets in which the agency identifies goals. They are chronological sequences of required action. develops detailed programs to meet the goals & estimates the cost of each program. Q 3 (a).achieve their purpose at a reasonable cost. A primary program may call for many supporting programs. procedures. These help decide issues before they become problems.

This is the first step in top managers to determine what he or she perceives to be the purpose or mission and the more important goals of the enterprise for a given period ahead.After making sure that subordinate managers have been informed or pertinent general objectives. Superiors must listen to. Clarifying Organizational Roles. Process of Management By Objectives 1. 2. the mission and over all objectives of the firm. strategies and planning premises. the superior can then proceed to work with subordinates in setting their objectives. is consistent with goals of other managers in other functions and is consistent with the longer-run objectives and interests of the department and the company. Objectives & planning programme form a network. helping their sub-ordinates develop consistent and supportive objectives and being careful not to set goals that are impossible to achieve. Analysis of an organization`s structure often reveals that the responsibility is vague and that re-organization is needed. If goals are not interconnected and if they do not support one another. Middle Level Management are involved in the setting of key result area objectives. sub-ordinates assume the responsibility of settingup a short.Definition. 3. in what time period. Lower Level Managers set objective of department and units as well as of their subordinates. people end up pursuing paths that may seem good for their own department but may be detrimental to the company as a whole. Setting Subordinates Objectives. Setting Preliminary Objectives at the top.It is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives. division objectives and department objectives. 3. Process of Setting ObjectivesManagers at different levels in the organization hierarchy are connected with different types of objectives. Peter Drucker emphasized that objectives must be set in all areas where performance affects the health of the organization. based on an analysis and judgement as to what can and should be accomplished by the organization within a certain period. . fully supportive of upper level objectives. and with what resources. 1. as well as the more specific overall objectives in the key result areas. The Goals set by the superior are preliminary. but in the end they must take responsibility for approving subordinates goals. Considering this as the main. This requires taking into account the company`s strengths & weaknesses in light of available opportunities and threats. The Board of Directors and top level managers are involved in determining the purpose.term objectives for themselves and then they review the same with their superiors.The relationship between expected results and the responsibility for attaining them often needs to be clarified. and work with their subordinates. The Superior judgment and final approval must be based on what is reasonably attainable. Superiors must be patient counselors. In 1954 Mr. 2. The Superior asks what goals the subordinates believe they can accomplish.

The Steps for Alternatives. 6.After alternative next step is of Evaluating them. the best alternative courseof action can be selected. Objectives should be assigned priorities. The Individuals who are expected to accomplish objectives should be given a chance to suggest their objectives. The assumptions & the planning premises underlying the objectives should be clearly identified.Setting objectives is not only a joint process but also an interactive one. 7. 4. They must have clear understanding of alternative sources by which a goal can be reached under existing circumstances and limitations. They should provide the feedback so that necessary corrective steps can be taken. 9. Evaluation of Alternatives. 13. Recognizing to those that will overcome the limiting factors.The first step of decision making is to develop alternatives. 10. Should be expressed clearly & in writing. The objectives should be co-ordinated with those of other managers an organizational units and should be consistent with the objectives of superiors and the company as a whole. The resources & authority should be sufficiently given to Managers to be able to achieve the targets. Preferably it is done by recognizing and overcoming those factors that stands critically in the way of a goal. that is at the end of the period one should be able to tell whether or not the objective have been achieved. Guidelines for Setting Objective 1. 11. Sub-ordinates should have control over aspects for which they are assigned responsibility. The Objective should cover the main features of the job. Top managers may have some idea of what their sub-ordinate`s objectives should be but they will almost certainly change these pre-conceived goals as the contributions of the sub-ordinate comes into focus. A limiting factor. It has to be rational. Re-cycling Objectives.is something that stands in the way of accomplishment desired objectives. Nor Should they be started from the bottom.It is defined as the selection of a course of action from among alternatives: it is the core of planning. yet reasonable. 8. Short-term objectives should be consistent with long term aims of the organization. 3.4. 2. The Objectives should be challenging. People deciding rationally are attempting to reach some goals that can not be attained without action. Objectives can hardly be set by starting at the top and dividing them up among sub-ordinates. STEPS IN DECISION MAKING 1. 12. The Objective should be verifiable. if so some of the objective can be combined.improvement objectives & personal development objectives. 5. Objectives should be communicated to all who need to be informed. 2. This usually done by the following steps mentioned below : . A degree of recycling is required. The Set of objectives should include. 14. The list of objectives should not be too long. Q 3 (b). this can be done with the assistance of the concept of the limiting factors. Decision Making.

3. The techniques in this chapter help you to make the best decisions possible with the information you have available. Selecting an Alternate. It is a technique for choosing the best plan when the objectives are less specific than sales. This has an implication that the more unique things you experience and the more meaningful things you experience (such as experiencing a philosophy book instead of watching Star Trek.quantifiable objectives can sometimes be given some of fairly specific measures of effectiveness. and we all learn everything solely by experience (including the experience of reading). but the old is well known and taught.The techniques of marginal analysis compares additional revenues arising from additional costs.For example. Experience is a subject of philosophy.to find the best output of a machineinputs could be varied against output until the additional input equals the additional output. Cost Analysis. c). With these tools you will be able to map out the likely consequences of decisions. Quantitative & Qualitative Factors. It is used for comparing factors other than costs and revenues. It helps seek the best ratio of befits and the cost. Qualitative or Intangible factors.finding the least costly way of reaching an objective or getting the greatest value for given expenditure. Profits are maximized when additional revenues costs are equal. and this is self-evident in invention where the new takes time to create and distribute. costs or profits. Marginal Analysis. Non. For Example.It reflest on the effective cost analysis. . and choose the best course of action to take. Reliance on past experience Experience as a general concept comprises knowledge of or skill in or observation of some thing or some event gained through involvement in or exposure to that thing or event.that are difficult to measure in numeric terms as the quality of labour relation or the international political climate. The importance of quantitative factors cannot be questioned but the success of the venture would be endangered if the intangible or qualitative factors are ignored. Without the experience we have difficulty expressing the thought or act.The three basic approaches which required for Managers to use his skills at area). work out the importance of individual factors.a). Experience: An event or a series of events participated in or lived through.Quantitative factors are those which can be measured in numerical terms such as time or various fixed and operating cost. b).

If the result of taking that decision is uncertain. draw out lines representing the options that you could select. and write that solution along the line. If you have completed the solution at the end of the line. It is worth much more to us to . Write the decision or factor above the square or circle. An example of the sort of thing you will end up with is shown in Figure 1: Result By applying this technique we can see that the best option is to develop a new product. Squares represent decisions. draw a small circle. and circles represent uncertain outcomes. Starting from the new decision squares on your diagram. Keep the lines apart as far as possible so that you can expand your thoughts. From the circles draw lines representing possible outcomes. draw another square. They also help you to form a balanced picture of the risks and rewards associated with each possible course of action. If the result is another decision that you need to make.At the end of each line. just leave it blank.Decision Trees are excellent tools for helping you to choose between several courses of action. Again make a brief note on the line saying what it means. Draw a small square to represent this towards the left of a large piece of paper. From this box draw out lines towards the right for each possible solution. Keep on doing this until you have drawn out as many of the possible outcomes and decisions as you can see leading on from the original decisions. consider the results. How to use tool You start a Decision Tree with a decision that you need to make. They provide a highly effective structure within which you can lay out options and investigate the possible outcomes of choosing those options.

Consider those affected by your decision. It is better just to improve our existing products than to botch a new product. the risk of the alternative you are considering. When making a decision you are simply choosing from among alternatives. Do not make decisions that are not yours to make. Use the OAR. Make notes and keep your ideas visible so you can consider all the relevant information in making this decision. decision tree analysis should be used in conjunction with common sense decision trees are just one important part of your Decision Making tool kit. than to rush the product to market. and making the right decisions is essential. Be sure to choose based on what is right.take our time and get the product right. Each person is a result of all of the decisions made in their life to date. even though it costs usless. approach in decision making. the Alternatives you sense are available to you and R. It has been said that a decision should always be made at the lowest possible level and as close to the scene of action as possible. so make the decision while you still have time. Do not let them accumulate. Recognize that you cannot know with 100% certainty that your decision is correct because the actions to implement it are to take place in the future. Write down the pros and cons of a line of action. Make decisions as you go along. a decision should always be made at a level insuring that all activities and objectives affected are fully considered. As with all Decision Making methods. However. A backlog of many little decisions could be harder to deal with than one big and complex decision. Objectives you are seeking to attain. get them involved to increase their commitment. • Avoid snap decisions. It clarifies your thinking and makes for a better decision. A. not who is right. • Choosing the right alternative at the wrong time is not any better than the wrong alternative at the right time. Move fast on the reversible ones and slowly on the nonreversible. A. Just as people are different. So make it and don't worry about it. • Do your decision making on paper. Key points Decision trees provide an effective method of Decision Making because they: • • • • Clearly lay out the problem so that all options can be challenged Allow us to analyze fully the possible consequences of a decision Provide a framework to quantify the values of outcomes and the probabilities of achieving them Help us to make the best decisions on the basis of existing information and best guesses. Recognizing this. Look at O. The second how far down it can be made. . • • • • • • • • • • Every manager must make decisions. The first rule tells us how far down a decision should be made. Whenever feasible. so are their styles of decision making. You are not making a choice between right and wrong. Remember that not making a decision is a decision not to take action. O. R. here are some tips to enhance your decision making batting average.

novel and ill defined situations of a nonrecurring nature. Some Board models. expects his team to be on time but sometimes when this routine is not followed and sees his colleagues are making a habit of coming late in office. Strategic decisions are non-programmed decisions. This decision is strictly in favour of organization. Morover its A class of decisions. asset mix decisions made by pension fund managers. objectives and deadlines for achievement. Therefore. One way to organize. since they require subjective judgments. Non Programmed Decisions. Some Committees are increasingly popular. your decision making must be informed by expert knowledge and experience. this is because problems at lower levels are often routine and well structured. (1976) to highlight the circumstances under which strategic decisions may be programmed. To that end. This is used in reference to a formalized structure of roles or is sometimes used to denote an enterprise. In Board meetings. The decisions are classified using the scheme developed by Mintzberg et al. the head of the dept. Organising: The term organizing means a formalized intentional structure of roles or poistions. Organizing is a broad set of activities.fire catches up due to short circuit in the dept. which exhibit characteristics of both programmed and strategic choices is examined in this paper. then he gets into some serious decision of say marking late or half day absent. The types of strategic decisions which lend themselves to programming are considered.These are used for unstructured. focus and activate Committees is by associating a work plan with each. As a manager. Most programmed decisions are made at lower levels of the organization. there are a wide variety of topics in organizing.. The following are some of the major types of organizing required in a business organization. This can be explain with a situation like.These are applied to structured or routine problems. The advantages and disadvantages of programming strategic decisions are also discussed. It is decision making by precedent. This we can explain thru this example. A work plan usually includes specific goals. requiring less decision discretion. the articles below on decision making can help. . Q 4 A).In an organization. and often considered one of the major functions of management. Programmed & Non. Often those goals are aligned with goals in an overall strategic plan. the immediate head will make sure his entire team should come out safe & sound without too much of panicking & fear in such a situation he has to keep himself calm & cool without loosing his thinking. minimize or avoid committees altogether.The process of decision making is of the utmost importance for effective management. Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. It relies primarily on previously established criteria. It is very essential in an organisation for employees to work together if they know what part they are to play in anay group effort and how their roles are interrelated. It's common for Board members to be organized into Committees. each Committee reports status on implementing its work plan. including the Policy Governance Model (a registered trademark of John Carver).Programmed DecisionsProgrammed Decisions. including the Audit Committee and Compensation Committee in for-profits and the Board Development (or Board Governance) Committee in nonprofits.

ORGANISATION CHARTS AS MENTIONED BELOW → (Organisation with Clear Spans) → (Organisation with Narrow Spans) → (Organisation with Wide Spans) Major Principles of Organizing There is a considerable agreement among management scholars and practitioners about a number of principles underlying the science of organizing. These Principles are truths of general applicability and are more Principle of functional definition .

If the authority allocation and the structural arrangements create a situation in which heads of department tend to be looked upon as leaders and in which their task of leadership is aided. it is important for the organization structure to do its part in creating a situation in which a manager can most effectively lead. . It is through their application that managers gain a sense of proportion or a measure of the total organizing process. political.staff and service departments. or too-firm departmental lines. Principle of balance In every structure there is need for balance. is risking the inability to meet the challenges of economic. Devices and techniques for anticipating and reacting to change must be built every structure. Principle of leadership facilitation The more an organization structure and its delegation of authority enable managers to design and maintain an environment for performance. Principles of flexibility The more that provisions are made for building flexibili0ty into an organization structure. the more adequately the responsible individual can contribute toward accomplishing enterprise objectives. The enterprise that develops inflexibilities. and organization authority delegated and has an understanding of authority and informational relationships with other positions. The application of principles or techniques must be balanced to ensure the overall effectiveness of the structure in meeting enterprise objectives. There are other principles that deal with the process of organizing. that the application of management theory depends on the specific situation. They deal with phases of the two primary aspects of organizing—. biological. The savings of functional specialization in departmentalizing must be balanced against the advantages the advantages of establishing profit responsible semi-independent product or territorial departments. organizing is a technique of promoting leadership. whether these are resistance to change. Losses from multiple commands must be balanced against the gains from expertness and uniformity in delegating functional authority to. Managerial effectiveness depends to a great extent upon the quality of leadership of those in managerial positions. both external and internal. In this sense. The inefficiencies of broad spans of management must be balanced against the inefficiencies of long lines of communication.authority and activity groupings. once again. Every enterprise moves toward its goal in a changing environment. the more adequately an organization structure can fulfill its purpose. the more they will help the leadership abilities of those managers. too complicated procedures. and social change.The more a position or a department has a clear definition of the results expected. The principles of balance is common to all areas of science and to to all functions of the manager. activities to be undertaken. organization structure has accomplished an essential task. It is apparent. Process of organizing The various principles of authority delegation and of department formation are fundamental truths about the process of organizing. technical.

and those requiring hierarchical referrals are more easily resolved There is a better balance between time. to project management. for example planning.Q4 (b). Since each project represents a potential profit centre. have functional responsibility to maintain technical excellence on the project. The functional departments.Creating awareness thru print. Second example like TATA SKY. and several people may be required for the same piece of work. include: • • • • Because key people can be shared. the project cost is minimized Conflicts are minimal. Hospitality Industry mainly due to the need of marketing. Other advantages of a pure matrix organizational form. Typical Matrix organization as shown below in the Diagram The basis for the matrix organization is an endeavor to create synergism through shared responsibility between project and functional management. MATRIX ORGANIZATIONThe matrix organization is an attempt to combine the advantages of the pure functional structure and the product organizational structure. Each functional unit is headed by a department manager whose prime responsibility is to ensure that a unified technical base is maintained and that all available information can be exchanged for each project. the project manager has the total responsibility and accountability for the success of the project. such as construction & hotel industry. Information sharing is mandatory in such an organization. that are “project-driven” & related to Hospitality Satisfaction of clients. cost and performance Authority and responsibility are shared . In a matrix organization. However. executing an advertisement campaign for a any Special Food festival happening at the hotel. visual media & penetrating market thru professional technical team for installation of DISH to improve on Consumer base. each project manager reports directly to the vice president and the general manager. This form is identically suited for companies. the power and authority used by the project manager come directly from the general manager. in general. on the other hand.

It requires many time consuming meetings. delegating. and control over their traditional domain. A job centered orientation is the approach in which the leaders emphasis on getting his / her job done thru planning. For the organization. which is positive and leads with the ability to withhold or give reward and punishment. An imbalance of authority & power. 6. a). Another major disadvantage is cost. There are other theories which has been discussed as below – 1.This emphasis on the ways in which leader applies the qualities for the achievement of the goal of an organization. as well as horizontal and vertical influence of the project and functional Managers." which can lead to delayed decision making and increased information-processing costs. Matrix management can be costly for both organizations and the individuals in these organizations. authority. evaluating performance & controlling. 4. organizing. In the employee centered orientation.• Stress is distributed among the team Suggested advantages of a strong matrix o o o o o o o Better solutions to client' needs Better reconciliation of technology requirements Better for complex projects Requiring a diverse mix of expertise Better integration across functional departments More effective departmental communication More efficient use of corporate resources Disadvantages of a Matrix 1. Leadership Behaviour & Styles. open relationships with employees and is very sensitive to their personal and social needs. mainly administrative. 2. One final disadvantage recently noted is the inability of the matrix structure to respond quickly enough to the rapidly changing demands of the multinational environment Q6. 5. can also lead to problems in matrix organisation. This view can result in resistance and hostility to the matrix. Autocratic Leader. Style based on the use of Authority.Under this quality the leader commands & expects the compliance. Functional managers often view a matrix organization as a loss of status. the existence of dual authority creates additional management overhead and additional staff. 3.The behavioural theorists contend that a leaders style is oriented towards either an employee centered or job centered emphasis.SHORT NOTES B). . The matrix also leads to costs associated with organizational "heaviness" including excessive meetings or "groupitis. A final issue in individual conflict can arise when functional managers experience insecurity and an erosion of autonomy. making decisions. the leader emphasis developing friendly.

in return giving his / her sub-ordinates the maximum independence in their operations to set their own goals.Under this quality the leader consults with subordinates for the decision making & actions to be taken which is return encourages the participation from them.b). its managers are highly autocratic. Character of Communication Process c). System4.Management is described as “Exploitive – Authoritative”. motivate with rewards & some fear. 2.This system reflects patronizing support & trust in subordinates. use rewards to motivate with occasional punishment. implement the same towards in constructive manner for the achievement of goals.Influence Process. They act as one of aiding the operations of followers by providing them with complete information and acting primarily as a contact with the groups external environment. Shows active participation downword & upwards communication & takes active participation in decision making. Performance Characteristics System1. Character of decision. d). tries to make use of subordinates ideas & opinions.“Participative Group”.“Benevolent Authoritative”.This system reflect that Managers have substantial but not complete trust & faith in subordinates. which are mentioned herein below. Democratic or Participative Leader. engage on downword communication & limit to decision making powers upwards.Rensis Likert thru his style of studying reflects that Supervisors with best of records in performance focus primarily on his / her subordinates human aspects by helping them & understanding their problems in endeavoring to build effective work groups/team with high performance goals. Productivity is fair to good. Productive is excellent under this system of leadership . c). This category completely indicates about the Leader who do take support of subordinates in their opinion for accomplishing any task. e).making process. The Free Rein Leader. Productivity is good. They always get & exchange ideas.“Consultative”. System3. permit some upward communication. rewards regularly as per the involvement of the group. solicit some ideas and opinions from subordinates and allow some delegation on decision making with close policy control. His observation such as that performance under this system / leader is mediocre. System2.This shows that Manager has complete faith.Under this category the leader uses very less or very little power. Character of Control Process g). motivate people through ear & punishment and only occasional rewards. Morever also reflects the openness any support required from his end. trust & confidence in their subordinates. Character of Goal Setting or Ordering. He described leadership styles in 4 systems wherein each style is defined by 7 operating characteristics. Character of Interaction. This quality is reflected in those leaders who do the consultation & discussion before taking a particular concurrence decision. have little trust on subordinates. general decisions at top level whereas major decision makings at lower level. a). Such Leaders depend largely on subordinates to achieve their goals. f). Likert`s Four Systems of Management. Character of Motivational Forces b). engagement in both upwards & downwards communication.

which cause breakdown of information exchange.When communication takes place.his / her value. It is the transfers of information from a sender to a receiver with the information being understood by the receiver. unfortunately barriers can and do often occur. 2.It includes the element related to personal commitment towards goals achievement.Force operating in the Manager`s Personality.It is the art of developing and attaining understanding between people. Degree of Motivating. Barriers to Good CommunicationCommunication.subordinates willingness to work. state of mind. .Forces in the Situation. experience. .3). Robert Tannenbaum & Mr. Similarly any communication issued from top gets into different understanding as moves downward. maintenance & satisfying interpersonal relations. confidence in subordinates & inclination towards leadership styles. Warren Schmidt. please have various motives to persuade. It reflects the openness in the firm for honest & pivotal factor. Under this basic honesty is vital in any communication & disclosure of feelings. This emphasis on leadership quality involving style from one that is highly boss oriented to the other which is highly subordinate centered.This concept has been developed by Mr. maintenance of the self esteem. There are lot of factors which affect the communication or comes as hindrances / hurdles to effective communication1. creativeness of research.organization values and traditions. The Manager must be aware of these and seek to dissolve their influence in the daily firm activities. The style varies from the degree of freedom a leader grants to subordinates. . frankness in presenting his ideas / opinions in front of the Leader & other colleagues. Filtering. Lack of Openness. Concern for Production.Employees tend to refrain from communication information that is potentially threatening to them. Leadership as a Continuum. As a result the information gets distorted as it ascends from bottom to the top of an organization. This may be caused by a number of factors which can usually be summarised as being due to physical barriers. 4). placement of responsibility on the basis of trust rather than obedience. This theory clearly states which style of leadership is appropriate depends on the leader. procedures & processes.Communication is between two persons and is subject to the influence that effects human behavior.It includes the elements related attitude of supervisor towards a wide variety of things such as quality of policy decisions. work efficiency & volume of outputs. In any organization there are barriers. No matter how good the communication system in an organisation is.It has concern for people & concern for production Concern for People. The Grid Dimensions. The enthusiasm displayed and interest shown definitely conditions the communication. quality of staff services. 3. & knowledge about the task. C). Under the theory the following elements can influence a leader.Forces in subordinates that will affect the Manager`s behaviour. to entertain and to reinforce ideas. the feasibility of safely delegating authority & the pressure time. provision of good working conditions. system design faults or additional barriers. It is the process of exchanging information & feelings between two or more people and it is essential to effective management. to tell.

the communication is almost be uncertain / ineffective. particularly the failure of management to introduce new technology. Our past experiences affect our perception & cause us to view people. 6. 10. and a lack of clarity in roles and responsibilities which can lead to staff being uncertain about what is expected of them. The reader should not assume that the receiver understands what she/he has been told. Snap Reactions. a lack of supervision or training. events & other messages differently. Thus.It is another consideration when emotionally loaded words like failure. the natural barrier which exists.This implies on the reader that if he/she feels that he/she will less benefited / gained. We people spends our 45 to 60 % work in listening out of which retention rate of oral communication is 50% only. for example. which in turn interfere with effective communication. which includes facial expressions. 5.Under this factor. Moreover it also implies on the state of mind of the person. In this they wants to hurry the conceptualization & encoding process & results in making mistakes / errors under which the information gets distorted. may also cause problems. This condition exists in communication between two people in conflict. System design faults refer to problems with the structures or systems in place in an organisation.This represents the art of listening. in which he is not in a position to come to a specific decision & can not view a situation correctly. There is also body language. Likewise.It is the factor under which we individually interpret the messages from other people / sources. 9. Poor Listening Skills. This hampers the time & approach of a communication. 8. Time Constraint. liar and defeat are used. More wider factors affects the communication• Physical barriers are often due to the nature of the environment. gestures made & tone of voice. Fear can affect the translation of information. Perception. Assumptions. poor or outdated equipment. Whilst distractions like background noise. Language. meaning of words gets influenced by association.This factor refers to the pressure on any employee / manager is made & placed. . whether he is completely involved in listening whats goin around.4. 7.This factor defines the acting or taking decisions based on some unjustified thinking / assumptions. Fear. Staff shortages are another factor which frequently causes communication difficulties for an organisation. Examples might include an organisational structure which is unclear and therefore makes it confusing to know who to communicate with. 11.Under this factor a person always remain with options. strike. Other examples could be inefficient or inappropriate information systems. Either or Thinking. poor lighting or an environment which is too hot or cold can all affect people's morale and concentration. The meaning of information / symbols gets influenced by the amount of education the participants possess. Mutual understanding must not be taken for granted. • • Attitudinal barriers come about as a result of problems with staff in an organisation. if staff are located in different buildings or on different sites.

These may be brought about. personality conflicts which can result in people delaying or refusing to communicate. the personal attitudes of individual employees which may be due to lack of motivation or dissatisfaction at work. or just resistance to change due to entrenched attitudes and ideas. We all tend to feel happier and more receptive to information when the sun shines. Physiological barriers may result from individuals' personal discomfort. Individual linguistic ability is also important. Different languages and cultures represent a national barrier which is particularly important for organisations involved in overseas business. lack of consultation with employees. errors are abound to take place in this resulting in requirement of Controlling Process. if necessary. loss. Poorly explained or misunderstood messages can also result in confusion. Presentation of information is also important to aid understanding. by ill health. Requirements of Effective ControlsControlling Process. brought about by insufficient training to enable them to carry out particular tasks. We can all think of situations where we have listened to something explained which we just could not grasp. Equally.It is determine what is being accomplished – that is. OTHER COMMON BARRIERS TO EFFECTIVE COMMUNICATION INCLUDE: Psychological factors such as people's state of mind. then this will probably affect them. for example. The use of difficult or inappropriate words in communication can prevent people from understanding the message. if someone has personal problems like worries about their health or marriage. Some thefts. applying corrective measures so that the performance takes place according to the plan. evaluating the performance and. . by such factors as poor management. D). poor eye sight or hearing difficulties. caused. for example.

staffing & leading. Controls to Lead Corrective Actions. Seeking Objective of Controls. either in financial terms as in revenue and expense and capital budgets. An adequate system will disclose where failures are occurring and who is responsible for them and it will ensure that some corrective action is taken E). But it is not enough just to look for exceptions. where & what expense.Implementation of a decision method and the use of feedback so that the goals and specific strategic plans of the firm are optimally obtained. It overcomes the weakness of all kinds on . It should be tailored to positions. It should be implemented that place of an organization where the responsibility lies and action lies more.It is justified only if deviation from plans are corrected through appropriate planning. 5. It should also highlight the structure of an organization. Controls point-up expectations at critical points. Tailoring Controls to plan & positions. Ensuring Flexibility of Controls. Programme Planning & BudgetingBudgeting. The feedback that management receives may suggest the need to replan. units of physical inputs or outputs. managers study accounting and other reports and compare them to the plans set earlier. or in nonfinancial as in budgets of direct-labour hours.Under this factor all controls techniques & systems should reflect the plans they are designed to follow.Controls allows Managers to benefit from the exception principle and detect those areas that require their attention. or units of production.Effective control requires objective. or outright failures. 7.These are meant to help Individual Managers to achieve the goals as set for them by the organization in order to carry out their function more efficiently. Requirements factors for the same are mentioned as below1. accurate & suitable standards.To be most effective. Budgets are statements of anticipated results. organizing. any system or technique must fit the organizational culture. or to reshape the organizational structure. Controls to Individual Managers. revenue.Controls must be worth their cost. These comparisons may show where operations are not proceeding as planned and who is responsible for what. 6. 3. 2. 4. Control techniques and approaches are efficient when they bring to light actual or potential deviation from plans with the minimum of costs. Consequently. the plan involve. to enable the Manager to correct deviation from plans. A Managers personality must not influence judgement of performance and make it less accurate. 8. It should clearly highlight the information in a precise manner so that they will understand and act accordingly. The purpose of budgeting is for Manager to identify and clearly see what capital will be spent by whom. To do this. to set new strategies. Fitting the Control system to the Organizational Culture. materials. unforeseen circumstances. Achieving Economy of Controls.It should remain workable in the face of changed plans. one must look for them at critical points. the exception principle should be accompanied in practice by the principle of critical point control. Programme Budgeting is basically a systematic method for allocating the resources of an enterprise in ways that will most effectively help the enterprise to meet its goal.It is the formulation of plans for given period in numerical terms. The Manager can then delegate more authority to affect the plan within the budget allotted for a particular task.

they are mentioned as below1. Formal & Informal OrganizationFormal Organization. Status clearly separated from the individual. There are some factors because of which this is not that useful in govt. A Formal Organization a relatively stable set of a description of the organization structure (typically in an Organization Chart) and the rules (policies. Informal Organization. it stresses the desirability of assessing costs against benefits when selecting the best course towards accomplishing a programme goal. . Many Govt. 5. Designed for efficiency: BUREAUCRATIC Vary in size. The Informal Organization can make Formal Organization much more effective & efficient by providing support to Management. It’s the togetherness of peoples personal & social relationship that arise as they associate with each other in work environment. Executive. Lack of attention to planning premises. 2. of social interactions among its employees. quarters or years. It can more defined as below mentioned points• • • • • • • • Large secondary groups that are deliberately and rationally designed to achieve specific objectives. It lacks clear defined goals for executives. Impact all our lives.budgets of being too closely tied to the time frames of accounting periods of months. There is lack of information in many areas to make meaningful cost effective analysis. So dominant that we create formal organizations to supervise and coordinate other organizations. operations but also used and applicable in/to all types of enterprises. Incentives and Authority etc. 6.especially in middle & lower level. effectively & efficiently. F). Fulfill a variety of personal and social needs. It implies that people in an organization should work together in order to fulfill the required roles. to improve concentration of programme responsibility. 3.It is a concept in Management Practice that denotes the network. Stability to environment & smooth use of communication channels. Many Govt. Carefully designed structure. Accounting data are often inconsistent with programme budgeting. 4. budgetary divisions are reluctant to make any changes from their practice and procedures of annual budgets to longer range programme budgets. It is mostly used in Govt. This can be explained by Contracts within the Organization. There is the political problems of re-organizing govt. depts. does not understand the philosophy & theory of the technique. By concentrating on goals & programmes in light of available resources. Secondly the roles should be designed in such a way that required task / work is done along with people enjoy & work smoothly. operations. procedures and regulations) that make up an organization. unrelated to the firms formal authority structure.It means the intentional structure of roles in a formally organized enterprise.

& routine jobs which are carried out on time to time. political processes. .This can be explained by norms.