DEPARTMENT OF COMPUTER APPLICATION

Principal of Management

Presented By: - Md Nisu Ahmad

Semester: - BCA 3rd Sem
Roll No: - 048
Session:- 2017-2020
Guided By: - Santosh Sirivastava
Management ;
Management is a set of principles relating to the functions of
planning, organizing, directing, and controlling,
And the applications of these principles in harnessing physical,
financial, human, and informational resources efficiently.
And effectively to achieve organizational goals.
Management is essential for an organized life and necessary to
run all types of organizations.
Managing life means getting things done to achieve life s
objectives and managing an organization means getting things
done with and through other people to achieve its objectives.
There are basically five primary functions of management. These
are

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

(1) Planning
Planning is future-oriented and determines an organization s
direction.
It is a rational and systematic way of making decisions today
that will affect the future of the company. It is a kind of
organized foresight as well as corrective hindsight. It involves
predicting of the future as well as attempting to control the
events. It involves the ability to foresee the effects of current
actions in the long run in the future.
(2).Organizing ;

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Organizing requires a formal structure of authority and the
direction and flow of such authority through which work
subdivisions are defined, arranged and coordinated so that each
part.
According to Henry Fayol,
To organize a business is to provide it with everything useful or
its functioning i.e. raw material, tools, capital and personnel’s.

(3) Staffing
Staffing is the function of hiring and retaining a suitable work-
force for the enterprise both at managerial as well as non-
managerial
levels. It involves the process of recruiting, training, developing,
compensating and evaluating employees and maintaining this
workforce with proper incentives and motivations.
According to Kootz & O Donnell, Managerial function of staffing
involves manning the organization structure through the proper
and effective selection, appraisal & development of personnel to
fill the roles designed in the structure”.

(4) Directing
The directing function is concerned with leadership,
communication, motivation, and supervision so that the employees
perform their activities in the most efficient manner possible, in
order to achieve the desired goals.
The leadership element involves issuing of instructions and
guiding the subordinates about procedures and methods.
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The communication must be open both ways so that the
information can be passed on to the subordinates and the feedback
received from them.
Motivation is very important since highly motivated people show
excellent performance with less direction from superiors.
Supervising subordinates would lead to continuous progress reports
as well as assure the superiors that the directions are being
properly carried out.
(5) Controlling
The function of control consists of those activities that are
undertaken to ensure that the events do not deviate from the
pre arranged plans.
The activities consist of establishing standards for work
performance, measuring performance and comparing it to these set
standards and taking corrective actions as and when needed, to
correct any deviations.
The controlling function involves;
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Measuring actual performance with the predetermined standard
and finding out the deviations.
d. Taking corrective action.

* Levels of Management;
The term Levels of Management refers to a line of demarcation
between various managerial positions in an organization.
The level of management determines a chain of command, the
amount of authority & status enjoyed by any managerial position.
a) Top level / Administrative level
b) Middle level / Executory
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 c) Low level / Supervisory / Operative / First-line managers

1.Top Level of Management

It consists of board of directors, chief executive or managing
director. The top management is the ultimate source of authority
and it manages goals and policies for an enterprise. It devotes
more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

Top management lays down the objectives and broad policies of
the enterprise.

It issues necessary instructions for preparation of

department budgets, procedures, schedules etc.

It prepares strategic plans & policies for the enterprise.

It appoints the executive for middle level i.e. departmental
managers.

It controls & coordinates the activities of all the departments.

It is also responsible for maintaining a contact with the outside
world.

It provides guidance and direction.

The top management is also responsible towards the shareholders

for the performance of the enterprise.

2. Middle Level of Management;

The branch managers and departmental managers constitute middle
level. They are responsible to the top management for the
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functioning of their department. They devote more time to
organizational and directional functions. In small organization,
there is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level
management.
Their role can be emphasized as -
a) They execute the plans of the organization in accordance
with the policies and directives of the top management.
b) They make plans for the sub-units of the organization.
c) They participate in employment & training of lower level
management.
d) They interpret and explain policies from top level
management to lower level.
e) They are responsible for coordinating the activities within
the division or department.
f) It also sends important reports and other important data to top
level management.
g) They evaluate performance of junior managers.
h) They are also responsible for inspiring lower level managers
towards better performance.

3.Lower Level of Management

Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section officers,
superintendent etc. According to R.C. Davis,
Supervisory management refers to those executives whose work
has to be largely with personal oversight and direction of
operative employees”. In other words, they are concerned with
direction and controlling function of management. Their
activities include
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 a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of
production.
d. They are also entrusted with the responsibility of
maintaining good relation in the organization.
e. They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher level
goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for
getting the things done.
j. They prepare periodical reports about the performance of the
workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they
are in direct contact with the workers.

The contribution of F.W.Taylor to scientific management;

Frederick Taylor (1856-1915), developer of scientific management.

Scientific management (also called Taylorism or the Taylor system) is a
theory of management that analyzes and synthesizes workflows, with
the objective of improving labor productivity. The core ideas of the
theory were developed by Frederick Winslow Taylor in the 1880s and 1890s,
and were first published in his monographs, Shop Management

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General approach
Shift in decision making from employees to manage
Develop a standard method for performing each job
Select workers with appropriate abilities for each job
Train workers in the standard method previously developed
Support workers by planning their work and eliminating interruptions
Provide wage incentives to workers for increased output
Contributions

Scientific approach to business management and process improvement

Importance of compensation for performance
Began the careful study of tasks and jobs
Importance of selection criteria by management

Elements

Labor is defined and authority/responsibility is legitimised/official

Positions placed in hierarchy and under authority of higher level
Selection is based upon technical competence, training or experience
Actions and decisions are recorded to allow continuity and memory
Management is different from ownership of the organization
Managers follow rules/procedures to enable reliable/predictable behavior

Criticisms
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Did not appreciate the social context of work and higher needs of workers.
Did not acknowledge variance among individuals.

Elements and Tools of Scientific Management

Separation of planning and doing

Functional Foremanship
Job Analysis
Standardization
Scientific Selection and training of workers
Financial Incentives
Economy
Mental Revolution

Elton mayo theory of management;

Elton Mayo's contribution to management theory helped pave the way
for modern human relations management methods.
Mayo management theory states that employees are motivated far
more by relational factors such as attention and camaraderie than by
monetary rewards or environmental factors such as lighting,
humidity, etc.
His experiments drew a number of conclusions about the real source of
employee motivation, laying the groundwork for later approaches to
team building and group dynamics
1. Groups with low norms and low cohesiveness are ineffective; they have
no impact, since none of the members are motivated to excel, according
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 to Mayo's theory.

2. Groups with low norms and high cohesiveness have a negative impact,
since fellow members encourage negative behavior (e.g., gangs).

3. Groups with high norms and low cohesiveness have some degree of
positive impact through individual member accomplishments.

4. Groups with high norms and high cohesiveness have the greatest
positive impact, Mayo's theory predicts, since group members encourage
one another to excel.
Planning;
Planning involves determination of objectives of the business, formation
of programmes and courses of action for their attainment, development of
schedules and timings of action and assignment of responsibilities for
their implementation.
Planning thus precedes all efforts and action, as it is the plans and
programmes that determine the kind of decisions and activities required
for the attainment of the desired goals.

Advantages of Planning;

1. Attention on Objectives:
Planning helps in clearly laying down objectives of the
organization.
The whole attention of management is given towards the
achievement of those objectives. There can be priorities in
objectives, important objectives to be taken up first and others
to be followed after them.
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2. Minimizing Uncertainties;
Planning is always done for the future. Nobody can predict accurately
what is going to happen. Business environments are always changing.
Planning is an effort to foresee the future and plan the things in a
best possible way.
Planning certainly minimizes future uncertainties by basing its
decisions on past experiences and present situations.

3. Better Utilization of Resources

Another advantage of planning is the better utilization of
resources of the business. All the resources are first identified
and then operations are planned. All resources are put to best
possible uses.

4. Economy in Operations
The objectives are determined first and then best possible course
of action is selected for achieving these objectives. The
operations selected being better among possible alternatives,
there is an economy in operations. The method of trial and error is
avoided and resources are not wasted in making choices. The
economy is possible in all departments whether production, sales,
purchases, finances, etc.

5. Better Co-ordination
The objectives of the organization being common, all efforts are
made to achieve these objectives by a concerted effort of all. The
duplication in efforts is avoided. Planning will lead to better co-
ordination in the organization which will ultimately lead to
better results.
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6. Encourages Innovations and Creativity:
A better planning system should encourage managers to devise new
ways of doing the things. It helps innovative and creative
thinking among managers because they will think of many new
things while planning. It is a process which will provide awareness
for individual participation and will encourage an atmosphere of
frankness which will help in achieving better results.

7. Management by Exception Possible:

Management by exception means that management should not be
involved in each and every activity. If the things are going well
then there should be nothing to worry and management should
intervene only when things are not going as per planning. Planning
fixes objectives of the organization and all efforts should be
made to achieve these objectives. Management should interfere
only when things are not going well. By the introduction of
management by exception, managers are given more time for
planning the activities rather than wasting their time in
directing day-to-day work.

8. Facilitates Control:
Planning and control are inseparable. Planning helps in setting
objectives and laying down performance standards. This will enable
the management to cheek performance of subordinates. The
deviations in performance can be rectified at the earliest by
taking remedial measures.

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9. Facilitates Delegation:
Under planning process, delegation of powers is facilitated. The
goals of different persons are fixed. They will be requiring
requisite authority for getting the things clone. Delegation of
authority is facilitated through planning process.

Limitations of Planning
Despite of many advantages of planning, there may be some obstacles and
limitations in this process. Planning is not a panacea for all the ills of
the business. Planning will only help in minimizing uncertainties to a
certain extent.

The following are some of the limitations of planning

1. Lack of Reliable Data

Planning is based on various facts and figures supplied to the planners. If
the data on which decisions are based are not reliable then decisions
based on such information will also be unreliable. Planning will lose its
value if reliable facts and figures are not supplied.

2. Time Consuming Process

Practical utility of planning is sometimes reduced by the time factor.
Planning is a time- consuming process and actions on various operations
may be delayed because proper planning has not yet been done. The delay
may result in loss of opportunities. When time is of essence then
advance planning loses its utility. Under certain circumstances an
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urgent action is needed then one cannot wait for the planning process to
complete.

3. Expensive
The planning process is very expensive. The gathering of information and
testing of various courses of action involve greater amounts of money.
Sometimes, expenses are so prohibitive that small concerns cannot afford
to use planning
According to Hainman, The cost of planning should not be in excess of its
contribution, and wise managerial judgment is necessary to balance the
expense of preparing the plans against the benefits derived from them.

4. External Factors may Reduce Utility;

Besides internal factors there are external factors too which adversely
affect planning. These factors may be economic, social, political,
technological or legal. The general national and international climate
also acts as limitation on the planning process.

5. Sudden Emergencies;
In case certain emergencies arise then the need of the hour is quick
action and not advance planning. These situations may not be
anticipated. In case emergencies are anticipated or they have regularity
in occurrence then advance planning should be undertaken for
emergencies too.

6. Resistance to Change
The principal psychological barrier is that executives, like most people
have more regard for the present than for the future.
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Planning often implies changes which the executive would like to ignore,
hoping they would not materialize.
It is the planning which helps in minimizing future uncertainties.

Organization;
Organization refers to a collection of people, who are involved in
pursuing defined objectives. It can be understood as a social
system which comprises all formal human relationships.
The organization encompasses division of work among employees
and alignment of tasks towards the ultimate goal of the company.

Types of Organization Structure

a) Formal Organization Structure;
The organization structure of jobs and positions, with specified
activities and relationships, is known as formal organization
structure. It is created by management, to attain the objectives of
the company.
Line Organization:
Line organization is the oldest and simplest pattern of
orgnization, wherein the supervisor has outright supervision over
the subordinate. The flow of authority is from the top level
executive to the person at the lowest level of the
organization’s echelon.
Functional Organization;
As the name suggests, functional organization structure is one
in which the thorough task of managing and directicting the
employees, is grouped as per the functions or type of work
involved.
Line and Staff Organization;

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 This type of organization structure is an improvement over the
traditional line organization. In line and staff organization
primary and supportive activities are related to the line of
supervision by appointing supervisor and specialist, who are linked
to line authority.

Project Management Organization;

Project Organization is not an independent organization,
like the organization structure discussed above. Instead it
is a set up within an organization, so as to accomplish a
project or firm’s objectives. It is led by project manager, who
is responsible for project objectives.
Matrix Organization;
Matrix organization is the emerging structure of the
organization, which is a combination of functional organization and
project organization. In such an organization, the functional
departments such as production, accounting, marketing, human
resource, etc. constitute a vertical chain of command, while project
division consitute horizontal line of authority.
b) Informal Organization Structure;
The relationship between the employees, that relies on personal
attitudes, prejudices and interests rather than procedures. It is
system of personal and social connection, whose creation is not needed
by formal organization.
The organization structure is a basic idea, which depends on the activity
authority relationship in the company. It is designed in such a way to
realise business objectives.

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