MBA DEPARTMENT ETHIRAJ COLLEGE FOR WOMEN CHENNAI

COURSE MATERIAL FOR SELF STUDY PAPER

MANANGEMENT PRINCIPLES
I YR STUDENTS

Contents: Objective: This course provides an overview of management. It covers theory, process and practice of the four fundamental management skills: Planning, Organizing, Leading and Controlling as well as the role of managers in organizations. Unit I: Concepts: The Evolution of Management Science – Classical – neo classical and modern theories of management – Management Defined – Basic Principles and Process of Management – Planning: Basic Techniques – Key factors – Business environment – Business environment – Micro-Macro relevant – techniques for environment scanning

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Unit II: Policies – Formulation – Classifications – Strategy – Concepts – Process – Organization: Hierarchy – factors to be considered & classifications – Methods of grouping – typical patterns used – Organization charts & manuals Unit III: Authority: Authority relationships – Delegation of authority & relationship – Centralization & decentralization – Span of control: Pros and cons of narrow and wide spans of control – Optimum span Unit IV: Communication – Introduction to managerial communication – Traits of good communication – Formal and informal channel-follow up Unit V: Co-ordination – need – techniques – Control: process – performance standards – measurement of performance – remedial actions Unit VI: Management by objectives – Management by exception – Trends – New perspectives in Management Outcome:  Use management terms as they relate to business situations  Understand and apply management principles and concepts as they apply to business situations  Understand the role of management in making business decisions

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MANAGEMENT Management in all business and human organization activity is simply the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resources encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources Some Definitions of management are:

Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909–2005), the basic task of a management is twofold: marketing and innovation. Directors and managers who have the power and responsibility to make decisions to manage an enterprise. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer.

Basic functions of management Management operates through various functions, often classified as planning, organizing, leading/motivating, and controlling.

Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action. Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.

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They are responsible for carrying out the decisions made by top-level management. and hiring individuals for appropriate jobs. Leading: Determining what needs to be done in a situation and getting people to do it. recruitment. They have to chalk out the plan and see that plan may be effective in the future. which may need modification based on feedback. checking progress against plans.• • • • Staffing: Job analyzing. Lower management 4 . Motivating: the process of stimulating an individual to take action that will accomplish a desired goal. directive. such as supervisors or team-leaders Top-level management • • • • • • • Require an extensive knowledge of management roles and skills. Management hierarchy:  Senior management (or "top management" or "upper management")  Middle management  Lower-level management. conceptual and/or behavioral/participative processes They are responsible for strategic decisions. Their decisions are generally of a long-term nature Their decisions are made using analytic. They have to be very aware of external factors such as markets. They are executive in nature. Middle management • • Mid-level managers have a specialized understanding of certain managerial tasks. Controlling: Monitoring.

Authority means the right of a superior to give order to his subordinates. DisciplineDiscipline refers to obedience. Authority and ResponsibilityThe issue of commands followed by responsibility for their consequences. The Principles of management Management principles are statements of fundamental truth. 4. the workers speed and accuracy in its performance increases. They are co-existent and go together. These principles serve as guidelines for decisions and actions of managers. Principles of Management: The Principles of Management are the essential. This principle suggests that there must be parity between authority and responsibilty. If an employee receives orders from more than one superior. 5 . By separating a small part of work. proper conduct in relation to others. it is likely to create confusion and conflict. creating specific personal and professional development within the labour force and therefore increasing productivity. and are two sides of the same coin. It is essential for the smooth functioning of all organizations. 3. there are fourteen 'principles of management'. This principle is applicable to both technical as well as managerial work.. 2. respect of authority. According to Henri Fayol (1841-1925) in his book General and Industrial Management (1916). 1. underlying factors that form the foundations of successful management.• • This level of management ensures that the decisions and plans taken by the other two are carried out. Lower-level managers' decisions are generally short-term ones. Division of Work The specialization of the workforce. responsibility means obligation for performance. Unity of Command This principle states that every subordinate should receive orders and be accountable to one and only one superior. etc. leads to specialization which increases the efficiency of labour. They are derived through observation and analysis of events which managers have to face in practice.

6. and they should be under the control of one manager. 8. Remuneration Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The Degree of Centralization The amount of power wielded with the central management depends on company size. reasonable and rewarding of effort. The quantum and methods of remuneration payable should be fair.defying the hierarchy of control. Equity - 6 . Sharing of authority with lower levels is called decentralization. It is considered a chain of command. Subordination of Individual Interest The management must put aside personal considerations and put company objectives first. Order Social order ensures the fluid operation of a company through authoritative procedure.However the imediate superiors must be informed about the matter 10. The organization should strive to achieve a proper balance. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency. Therefore the interests of goals of the organization must prevail over the personal interests of individuals. All related activities should be put under one group. Centralization implies the concentration of decision making authority at the top management. 9. 7. Scalar Chain Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. 11. Unity of Direction All those working in the same line of activity must understand and pursue the same objectives. there should be one plan of action for them. Material order ensures safety and efficiency in the workplace. 5.Unity of Command also makes it easier to fix responsibility for mistakes. It seeks to ensure unity of action. focusing of efforts and coordination of strength.

Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees. 12. Stability of Tenure of Personnel The period of service should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him. 13. Initiative Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization. 14. Esprit de Corps This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. These can be used to initiate and aid the processes of change, organization, decision making, skill management and the overall view of the management function. Scientific management Taylor believed that the industrial management of his day was amateurish, that management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified management and a cooperative and innovative workforce. Each side needed the other, and there was no need for trade unions. “Taylor’s approach is also often referred to, as Taylor's Principles, or frequently disparagingly, as Taylorism. Taylor's scientific management consisted of four principles: 1. Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. 2. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. 3. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" (Montgomery 1997: 250). 4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.

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Managers and workers Taylor had very precise ideas about how to introduce his system: It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions, and enforced cooperation that this faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone. Workers were supposed to be incapable of understanding what they were doing. According to Taylor this was true even for rather simple tasks. The introduction of his system was often resented by workers and provoked numerous strikes. The strike at Watertown Arsenal led to the congressional investigation in 1912. Taylor believed the labourer was worthy of his hire, and pay was linked to productivity. His workers were able to earn substantially more than those in similar industries and this earned him enemies among the owners of factories where scientific management was not in use. Management Theories: Scientific Management Theory (1890-1940) At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized scientific and technical matters, including careful measurement and specification of activities and results. Management tended to be the same. Frederick Taylor developed the: scientific management theory” which espoused this careful specification and measurement of all organizational tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, routinized activities. Bureaucratic Management Theory (1930-1950) Max Weber embellished the scientific management theory with his bureaucratic theory. Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinized tasks. Human Relations Movement Eventually, unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in 8

the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. The behavioral sciences played a strong role in helping to understand the needs of workers and how the needs of the organization and its workers could be better aligned. Various new theories were spawned, many based on the behavioral sciences (some had name like theory “X”, “Y” and “Z”). Mary Parker Follett (1868-1933), on the other hand focused more on human relations rather than on scientific type approaches in order to increase production. Follett's studies allowed for other theorists to study new areas, including Chester I. Barnard (1886-1961). His contribution was the introduction of the informal organization concept. He believed that if properly managed, this could be a powerful tool in helping the organization achieve its' goals (Daft and Marcic, 1998).

UNIT-II POLICIES BUSINESS POLICY – Meaning and Definition:Policy-making is one of the most important components of business planning. Policies may be defined as “the mode of thought and the principles underlying the activities of an organization or an institution”. Terry says, “A business policy is an implied overall guide setting up boundaries that supply limits and direction in which managerial action will take place”. FEATURES OF BUSINESS POLICY:• • • • Policies are a general statement of principles fro the attainment of objectives. Policies have a hierarchy. The policies delimit the area within which a decision is to be made and ensure that the decision will be consistent with and contribute to the objectives. Policies in general are meant for mutual application by subordinates.

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Classification according to the functional areas:• Production policies 10 . Development of policy. Acceptance of the policy. CLASSIFICATION OF POLICIES:1. Policies are found in all functional areas and at various levels within these areas. Policies serve an extremely useful purpose. Feed back.• • • • Policies tend to predecide issues. A policy is a positive declaration band a command to its followers. MECHANICS OF POLICY MAKING/ELEMENTS:• • • • • • Identification of the situation. Explanation of the policy. Dissemination of the policy. avoid repeated analysis and give a unified structure to other types of plans. Classification according to the level of formulation:Business policies are of different levels they are:• • Top management policies Middle level management policies • • upper middle management middle management lower level management policies operating force policies 2.

Classification according to the nature of origin:• • • • Originated policies Appealed policies Imposed policies Derivative policies 5. Classification according to the scope of organization:• • • Basic policies General policies Departmental or specific policies 6. Classification according to the expression:• • Expressed Oral Written Implied 4. Classification according to the nature of management function:• • • • Planning policies Organizing policies Actuating policies Controlling policies STRATEGY:- 11 .• • • Marketing and sales policies Financial policies Personnel policies 3.

GRAND OR MASTER STTRATEGY:. (b) Growth strategy:This means an enterprise wants to raise its level of performance or rate of growth. TYPES OF STRATEGIES:1. NATURE OF STRATEGY:Characteristics:Long-term plan provides the directions in which human and physical resources will be deployed for achieving organizational goals primarily concerned with expected trends in the markets an interpretative plan is forward looking mainly the job of top management. (e) Divestment or closure strategy:- 12 .It determines the nature and scope of the enterprise.Strategy is the complex plan for bringing the organization from a given posture to a desires position in a future period of time. (a) Stability strategy:An organization which follows this strategy is satisfied with its performance and wants the same rate of growth. (c) Integration strategy:Taking over or combining with other business firms is called integration strategy. (d) Turnaround or Retrenchment Strategy:This means reduction in the level of performance.

(4) Realistic.The most appropriative strategy is Self.STRATEGY:These strategies are used for development of resources to achieve specific objectives. (2) Consistency with environment. b.The external environment of enterprise is analyzed.Strategic Alternatives:. (6) Feasibility.Appraisal:.Environmental analysis:.This implies giving up operations altogether or closing down. is examined c.Detailed operational plans are developed and communicated to employees so as to execute the chosen strategy. 2. (5) Acceptable degree of risk. ESSENTIALS OF A GOOD STRATEGY: (1) Internal consistency.Strategy Implementation:. FUNCTIONAL STRATEGY OR SUB.Alternative strategies are developed. chosen. Strategic Choice:. STRATEGY-MAKING PROCESS: a. (3) Appropriate time horizon. e.The internal environment of the enterprise ORGANISATIONAL HIERARCHY:- 13 . d.

14 . within which there is greater employee empowerment and autonomy. Organization hierarchy is often shown in the form of an organization chart. but during the later 20th and early 21st centuries the layers of hierarchical positions within large organizations have often been reduced as part of downsizing exercises. These result in the shallow or nonexistent hierarchies of flexible. CFO’s and the Board of Directors. flat organizations. etc.Organizational hierarchy is the vertical representation of ranks of personnel within an organization. Middle level management:This level of employees consists of the managers and the supervisors that manage the lower level employees but are still under the top management and their job is administrative. An extended hierarchy is typical of a bureaucracy. Their job is to make the strategic decisions that will effect the company’s operations in the long run. Top leve l Middle level Strategic decisions Administration Operating level Operation Top level management:This level comprises of the various top level CEO’s. each layer subordinate to the one above it. Operating level management:This level of employees consists of the work shop employees and their job is routine.

The more the number of departments the more the administrative work of the middle level. This takes into consideration the number of sub-ordinates that a single supervisor can effectively manage at one time. • Chain of Command:The flow of command (authority) from the top level to the lowest level of management does decide the organization hierarchy.FACTORS TO BE CONSIDERED ARE AS FOLLOWS:• Specialization and division of labor:The organizational hierarchy depends on the specialization level and the division of labor as the lesser administrative work is required for a highly specialized job. DEFINITION OF GROUP:- 15 . • Department:This means dividing large and complex organizations into smaller and flexible administrative units. • Span of Management:This refers to the number of sub-ordinates that are directly under a supervisor.

Group is different from a mere aggregation or assembly of persons. e. Primary and Secondary groups:In a primary group individual members are in close face –to. Membership and reference groups:- 16 . Primary and secondary groups 3. TYPES OF GROUPS:Groups may be classified into the following categories:1. a committee. Informal groups tend to be smaller than formal groups. Members of a group have a common goal. Government. Membership and reference groups 4.g. Informal groups spontaneously emerge when people regularly interact stable and with one another on personal or social basis. In-groups and out-groups Formal and informal groups:Formal groups are deliberately created by management to achieve the goals of the organization. Formal and informal groups 2. In a secondary group.face relationship over a relatively long time period. or (b) tasks groups consisting of members performing similar tasks. Formal groups may be (a) command groups consisting of managers and subordinates. interact with one another and corporate work together to achieve a common goal. on the other hand interactions between members are loose and general. municipality and university are examples of secondary groups.A group consists of two or more persons who are interacting with one another in such a manner that each person influence and is influenced by others.

Desire to associate with others:Formal organizations is impersonal and does not satisfy the natural social needs of people . They develop informal relationships to release their tension. The organization becomes impersonal due to social distance.A membership group consists of persons who actually belong to the group. Job Specialization:In large organizations there is narrow specialization. 17 . REASONS FOR FORMATION OF INFORMAL GROUPS:The main causes leading to the formation of informal groups are as follows:1. In-groups and Out-groups:An in-group comprises persons who religiously abide by prevailing norms and values of the society. An out-group consists of persons whose norms and values differ from those prevailing in the society . 2. There may be a conflict between the norms and values of membership and reference group. 3. It causes burden and fatigue Employees are unable to understand how they contribute to the main job and goals of the organization. there is a hierarchical or formal chain of communication and control. A reference group is a group with which a person identifies himself or to which he would like to belong. Informal organizations provides them opportunity to interact and socialize outside the formal organizational relationship. Hierarchical Control and Communication:In a large organizations . There exist a large gap between superiors and subordinates. They may or may not be satisfied with being members of the group.

Informal groups fill this void by providing a social structure and status. The informal groups protect its members from external pressures such as a change in work methods.MERITS OF INFORMAL GROUPS:Informal groups offer the following benefits to their members:- Sense of Belonging: In a formal organization. Social Control:- 18 . Safety Value for Emotional Problems:The daily work routine causes tension and frustration to workers. Check on Authority:Informal groups force managers to plan and act more carefully Informal groups provide feeling of security and status to members. Communication Channel:In a formal organizations. employees receive important information about the company only when it is officially released. an employee is one among thousands and feels no sense of belonging. Breeding Ground for Innovation and creativity:Informal groups provide the environment necessary for individual creativity and innovation. Assistance on the Job:Members of an informal group help one another in case of accident or illness.

Every informal group has its norms which serve as guides to correct behavior for members. Sub-optimization:Members of an informal group give preference to their own needs and goals over the objective of the organization. Provide Feedback:Informal groups provide feedback about employees and their work experiences to management DEMERITS OF INFORMAL GROUPS:Informal groups suffer from following limitations: Resistance to Change:An informal group has its own culture conventions and work methods. The group resists those demands of management which are perceived as a threat to its culture. 19 . Role Conflict:When a person is a member of both formal and informal groups the faces a conflict. Informal groups may help to promote organization objectives by strengthening the ties of their members with the organization. Fill gaps in Manager’s Abilities:More competent members of an informal group may help in areas in which the superior is week. Self-policing:When the informal group is cooperative. management is relieved of the burden of supervision.

The following steps may be taken for this purpose:(i) (ii) (iii) (iv) Where informal group norms are acceptable they should be institutionalized. Therefore. and the relative authority of each employee who is in charge of each respective function”.Rumor:Informal groups are often the source of rumors. informal lines of Organizational Charts & Manuals Definition: “An organizational chart is a diagrammatical form. An outbreak of rumor can be very harmful to the company. HOW TO MANAGE INFORMAL GROUPS:Management does not create informal groups. Management should make constructive us of communication When informal leaders develop. All major cliques comprising the informal organizations should be catalogued. they may be appointed to positions of formal authority. which shows important aspects of an organization including the major functions and their respective relationships. management should take steps to harmonize these groups with formal organizations. Types: All organization charts may be classified into three broad categories: 1. the channels of supervision. Group Think: Many members come to believe that whatever the group decides is good any idea however useful which decides from the group philosophy is rejected. Vertical Charts: 20 .

• • • Shows the organization structure in the form of a pyramid from top to bottom in vertical lines Hence known as top to down chart also It is the most widely used chart 2. Functional Chart: Consists of sub-units. Contains the principal units and sub-units in the form of squares and rectangles. • • Master and supplementary charts: A master chart shows the whole structure of the organization and provides a clear picture of the entire structure. Pfiffner and Sherwood’s classification: • Skeleton Chart: It’s a mere graphic representation of the hierarchical framework. Solid black lines represent lines of command while broken lines indicate staff or functional relationships. Personnel Chart: same process of functional chart is used but boxes here contain personnel information. boxes represents divisions and sections. Horizontal charts: • • • Pyramid lies horizontally Hence called left to right chart Highest position is shown in the extreme left and lowest in extreme right 3. Concentric or Circular Charts: • • • • Highest position is shown in the centre and lowest in the outermost circle Distance of a position from the centre indicates the degree of closeness to the top position Position of equal status lie at the same distance from the centre More difficult to draw and confusing 4. A supplementary chart depicts the various units within a department and authority relationship among them. 21 .

policies. procedures. Introductory • • • Name Nature Objectives 22 . the lines of authority and responsibility. rules etc of the enterprise. Contents of the manual: 1. • • • • • Provides a basis of planning organizational change Guidance to outsiders as to whom to contact Guidance to new personnel into the total organization Identify overlapping relationships Facilitates communication Limitations: • • • • • • Shows only formal relationships Does not represent flexibility Updating of chart is difficult Fail to show the extent of authority Poor design may cause confusion Does not show actual relationship in the organization Organization manual:Definition: A small handbook or booklet containing detailed information about the objectives.Advantages and uses: • Shows clearly the various positions in the organization.

Policy Manual: • Contains basic policies of the company.• • Location Purpose of the organization 2. Administrative • • • • Organization structure Job descriptions Policies Rules and regulations 3. decisions and resolutions of the top management • • Describes overall limitations Serves as useful guide to action 2. Procedural • • • • • Procedures and practices Specimen forms to be used Standard instructions Methods Glossary of important terms Types: 1. Company organization manual: 23 .

Describes duties and responsibilities Outlines the formal chain of command 3. hospitalization etc. Departmental practice manual: • Contains detailed information about the orgn. and procedures of one dept. methods Gives overall view 4. 24 . policies. safety. Rules and Regulations Manual: • • • Advantages: • • • • Written form Useful in the orientation and training of new employees Permits quick decisions at lower levels Helps to avoid jurisdictional conflicts Describes operating rules and employment regulations Eg: hrs of work. recreation. etc. timings. procedures.• • • Gives the set-up of the Co. library. Operations manual: • • Describes established stds. • Inter-departmental relations are also shown 5. Explain employee benefit plans – housing.

Decentralisation refers to the systematic delegation of authority in an organisation context. Effective decentralization requires a proper balance between dispersal of authority among lower levels and adequate control over them.• Provides uniformity and consistency in operations Drawbacks: • • • Expensive and time consuming Creates rigidity in the organization Manuals may put on record those relationships which should not be exposed UNIT-III DECENTRALISATION Decentralisation refers to the systematic effort to delegate to the lowest level all authority except that which can only be exercised at central points. MEASURING THE DEGREE OF DECENTRALISATION:  Number of decisions  Importance of decisions  Effects of decision  Checking of decisions ADVANTAGES OF DECENTRALISATION: 25 .

DISADVANTAGES OF DECENTRALISATION:  Expensive  Difficulty to coordinate  Lack of uniformity  Narrow product lines  External constrains FACTORS DETERMINING DECENTRALISATION AND DELEGATION:  Size and complexity of the organisation  Dispersal of operations  Degree of diversification  History of the enterprise  Outlook of top management 26 . Relief to top executives  Motivation of subordinates  Quick decisions  Growth and diversification  Executive development  Effective communication  Efficient supervision and control.

 The delegator exercise control over the subordinate.  Delegation denotes the relationship between a superior and a subordinate. but the control may be delegated to the departmental heads. MAKING DECENTRALISATION EFFECTIVE:  Appropriate centralisation  Development of the managers 27 . But decentralisation denotes the relationship between the top management and various departments.  Delegation is a technique of management. but decentralisation is the end result of delegation. decentralisation is a philosophy of management.  Delegation is an essential management process but delegation is optional. Availability of competent personnel  Nature of functions  Communicative system  Complexities of the situation DISTINCTION BETWEEN DELEGATION AND DECENTRALISATIIION:  Delegation means transfer of authority from one individual to another  Decentralisation means diffusion of authority throughout the organisation.  Delegation is a process or an act.

everything which goes to reduce it is centralisation. Centralisation implies the concentration of authority at the top level of the organisation while decentralisation means dispersal of authority throughout the organisation. Open communication  Coordination  Adequate controls CENTRALISATION Centralisation is the systematic and consistency reservation of authority at central points within an organisation. Centralisation and decentralisation are relative terms Everything that goes to increase the importance of the subordinate’s role is decentralisation. ADVANTAGES:  Personal leadership  Uniformity of action  Flexibility  Integration  Handling emergencies  Utilisation of personnel DISADVANTAGES: 28 .

but which few understand. To delegate means to entrust authority to a deputy so as to enable him to the tasks assigned to him. “Delegation is the dynamics of management. Allen. Problem in decision making  Overburdening  Lack of executive development  Low morale DELEGATION Delegation is a skill of which we have all heard .” 29 . it is the process a manager follows in dividing the work assigned to him so that he performs that part which only he. because of his unique organizational placement can perform effectively. or as a dynamic tool for motivating and training your team to realize their full potential. and so that he can get others to help him with what remains. It can be used either as an excuse for dumping failure onto the shoulders of subordinates. In the words of Louis A.

These all depend upon communicating clearly the nature of the task. Delegation to confirm to desired objectives. To enable someone else to do the job. 2. With delegation. Not just the simple tasks of reading instructions and turning a lever. Accountability for exercise of authority. 5. 3. Authority to match duties. Responsibility cannot be delegated. one must ensure that: • • • they know what is wanted of them they have the authority to achieve it they know how to do it. Delegation of authority. 3. 4. Assigning of duties or tasks. Unity of command. and the sources of relevant information and knowledge.OBJECTIVE OF DELEGATION The objective of delegation is to get the job done by someone else. the staff have the authority to react to situations without referring back to the superior all the time. ELEMENTS OF DELEGATION In any scheme of delegation the following 4 elements stand out: 1. but also the decision making and changes which depend upon new information. PRINCIPLES OF DELEGATION Delegation can be effective only if it confirms to certain well-established principles like: 1. TYPES OF DELEGATION 30 . 2. 4. the extent of their discretion. Limits to authority to be well-defined. Accountability for performance of duties.

Habit pattern. BARRIERS TO DELEGATION Barriers could be in the form of organizational barriers and psychological barriers. It aids in employee development. Formal (or) Informal. It helps in maximizing organizational effectiveness 8. It is the basis for effective functioning. General (or) Specific. Fear of exposure. For example. it may be: 1. Loss of importance. 4. 4. Upward (or) Sideward. Risk avoidance. Downward. It helps in better and speedier decision-making 9. It helps to enjoy the benefits of specialized services. It aids in expansion and diversification of business. Why managers do not delegate: 1. 7. 2. 3. It helps in the efficient running of branches. 5. Written (or) Unwritten. Feeling of superiority. 4. 3. It helps in the reduction of managerial load. Feeling of indispensability. 31 . 3. 6. Important among these are: 1. 5. It helps to inculcate self-confidence and initiative among subordinates. 6. 2. ADVANTAGES OF DELEGATION Delegation offers several advantages. 2.Delegation may assume various forms.

Inadequacy of information and resources.  Mathematical formula for analyzing superior subordinate relationship. Lack of self-confidence.Why subordinates do not accept delegation: 1. Determination of specific goals. 2. DIRECT SINGLE RELATIONSHIP: 2 direct relationship For e. Insecurity and fear of criticism. 7. 5.g. SPAN OF CONTROL: Meaning: Number of subordinates who report directly to a single manager or supervisor. Authority and responsibility.  3 types of superior – subordinate relationship. 2. 3. DIRECR GROUP RELATIONSHIP: These relationships arise between the manager and group of his subordinates in all possible combinations. Motivation. to make delegation effective and productive of the desired results: 1.  No of subordinates increases arithmetically there is exponential increase in the no of possible relationship. 2. 6. Accountability. THEORY OF GRAICUNAR:  French management consultant. Chain of command. STEPS TO MAKE DELEGATION EFFECTIVE The following are the guidelines based on classical principles. Inadequate incentives. Unity of command. 3. 32 . Training. 4. 1. A with X and A with Y. 4.

Cross relationship: n (n-1 ) 3. Effective method of finding relationship 2. 6 subordinate – 222 relationships 3. Direct group relationship: n (2^n / 2-1) 2. Factors which determine span not taken into consideration. FORMULA FOR THIS THREE TYPE IS AS FOLLOWS.3. X with Y Y with X. Ignore the intensity of relationships 2. DEMERITS: 1. CROSS RELATIONSHIPS: Relationship that arise among the subordinates working under a common superior.g. For e. 1. Total relationship= n (2 ^ n / 2-1) + n (n-1) n(2^n/2+n–1) Were N = no of subordinates. Indication to manager to think twice before increase in subordinates. FACTORS DETERMING SPAN OF CONTROL:  Nature of work  Type of technology  Ability of manager  Capacity of subordinates  Degree of decentralization  Planning 33 . No of subordinates No of relationship 1 1 2 6 3 18 4 44 5 100 6 222 7 490 MERITS: 1.

Basis that has been used to establish an optimal span of management is through applying what appears to work for military organizations or very old organizations such as the Catholic Church. If a manager was responsible for more than five or six subordinates. The span of control. the message conveyed is that at some point the addition of one more subordinate could create some serious problems for the manager. organizing and leading. or span of management. In addition. Although only a small percentage of these interactions actually occur on a daily basis. This as based on the assumption that managers have a limited span of attention. Optimum Span of Control An important task in structuring organizations. There are several factors to consider in order to establish the proper span of control for managers. which is a measure of the length of that organization's lines of communications. Historically. energy and time. such as Col. stated that the optimal span of control was five or six. it was felt that the manager would loose track of what was happening. especially large ones. Staff assistance  Communication technology  Time available for supervision  Geographical dispersion of subordinates. Researchers in the past. The span of management has a direct beating upon the number of levels in an organization. the concern over span of control was based on the idea that some optimal number of manageable subordinates should exist. Urwick. The problem with this method and the other traditional views is that 34 . is determining what the span of control of managers or supervisors should be. the span of control will affect the attitudes and behavior of the organizational members. refers to the number of persons who report to one superior and includes the functions of planning.

Managers who are well-liked and inspire subordinates to work hard should have larger spans. Likewise. if the job requires nominal training and all workers know what to do. Examining all these different factors is very important before determining a proper span of control. As the immediate goals of subordinates become congruent with the goals of other subordinates and with the goals of the organization. Generally. Another way of expanding the span of control is to introduce staff assistants who can act as a screening mechanism and perform the more routine tasks. 35 . thereby encouraging employees to be as productive as possible. if workers are involved in work of a trivial or routine nature. Also. the supervisor will tend to require less application of control than if they perform work of greater significance or complexity. spans can be very broad. Using budget control systems also permits the supervisor to increase the size of his span. the span of management may be increased. subordinates that respond well to orders will make a larger span of control possible. Competent and well-trained subordinates tend to make fewer mistakes and require less correction and counseling from their supervisors. thus allowing the span of management to increase. In addition. a supervisor can exercise more effective control over a broader span in a stable situation than under dynamic conditions.they have a tendency to look for a single number answer without considering all the different factors that contribute to the effective span of control. Furthermore. Probably the most important way to achieve a wider span of control is to practice Theory Y management methods. spans may be limited by where people are and by the problems of control and communication over distance. Effective delegation of authority will allow a manager's span of control to increase by reducing the frequency and severity of time-consuming relationships with subordinates.

The primary advantages of having a narrow span of control are that it should provide close supervision. large firms tend to have larger spans than medium-size firms. professors and engineers. and * Excessive distance between lowest level and top level. perform work without much supervision. the danger of a superior's loss of control. and requires exceptional quality of managers. a flatter structure 36 . thereby making the job more fulfilling. Employee morale will improve with a broader span since subordinates will be subjected to a lesser degree of detailed supervision. so spans can be very broad. At the same time. such as doctors. The major disadvantages of a narrow span include: * Superiors tend to get too involved in subordinates' work. Many professional people. one of the worst aspects of a narrow span of control is the opportunity it gives a manager to harass his subordinates. * Many levels of management. The advantages of having a wide span of management are that superiors are forced to delegate. There appears to be several positive effects on individual attitudes and behavior when the span of control is large. In fact. The optimal span will measure the relative advantages and disadvantages of retaining supervisory responsibility as opposed to delegation. are offset by the advantages of narrow spans in faster and more effective problem resolution. Some of the disadvantages of a wide span of control are the tendency of overloaded superiors to become decision bottlenecks. It should be emphasized that quite frequently the advantages of flat structures. Wider spans will generally entail more responsibility be given to subordinates. which leads to high costs. clear policies must be made and subordinates must be carefully selected. close control and fast communication between subordinates and superiors.Since large firms typically face a greater volume of important problems. lawyers. such as information flow and individual satisfaction. Firms that insist on close supervision of responsible professionals will tend to lose them since few good professionals appreciate working in a tightly controlled environment.

it is the process of imparting ideas and making oneself understood by another. UNIT-4 COMMUNICATION MEANING OF COMMUNICATION: According to Theo Haimann. The sender may be a speaker. “communication is the process of passing information and understanding from one person to another…. SENDER: The person who sends the message is known as the source. SENDER MESSAGE DECODING FEEDBACK ENCODING CHANNEL RECEIVER 37 . He initiates the process of communication. ideas or feelings. MESSAGE: Is the subject-matter of communication.” ELEMENTS OF COMMUNICATION PROCESS: The communication process consists of the following steps 1.will provide more growth for the subordinates and create more reliance and trust from the supervisor. 2. writer or an actor. It exists in the mind of the reader. It may contain facts.

the communication process is said to be complete. Receiver is also known as communicate. • Facilitates leadership The modern concept of the leadership exercise through persuasion rather than command places a great premium on communication. 7. 6. When the sender receives the feedback. 5. Helps in logical planning . 4. signs or pictures into meaning. reaction or reply by the receiver. Channel may be formal or informal. DECODING: The receiver interprets the message to draw meaning from it. Without proper communication no organization can survive.3. IMPORTANCE OF COMMUNICATION: Communication is the responsibility of every executive to develop and maintain the system of communication. to direct effectively and to control effectively. • Increases job satisfaction Develops interest and motivation in work by communicating effectively. ENCODING: It is the act of translating the message into words. to organize systematically . RECEIVER: The person who receives the message is called the receiver. He converts symbols. He may be a listener or observer. pictures. FEEDBACK: It is the response. ADVANTAGES OF SOUND COMMUNICATION: • Improves managerial performances Communication enables a manager to diagnosis the various problem and to secure information for the decision – making. CHANNEL: It is the media through which the message passes from the sender to the receiver. signs or others. Major portion of the time is spent communicating. 38 . It is directed to the sender. symbols.

39 . e. Disadvantages in flow of formal communication: • • • • • organizational distance screening at various points Narrow route Downward(Vertical communication) Upward(Vertical communication) Three forms of formal communications. FORMAL COMMUNICATION Formal communication follows the routes formally laid down in the organization structure of the enterprise. • Enhances Co-ordination Individuals working in the organization perform different duties and activities.• Reduces time and effort Communication can be done through the reports etc.g. • Help public relations A business enterprise comes in contact with several social groups. An attempt is made to make the flow of information orderly so that it flows smoothly and timely to the points where it is required. Such economy in time and efforts help to ensure efficiency and effectiveness in the organization. CHANNEL OF TYPES OF COMMUNICATION A channel of communication is the path through which messages are transmitted from the sender to the receiver. Channels of communication may be formal or informal. customers. The officially prescribed path of communication is orderly in nature.. government and public. It must maintain harmonious relationship with these groups of external environment. The formal channels are deliberately created to regulate the flow of communication. Formal channels are the paths of communication which are institutionally determined and which are associated with status and position of the sender and receiver. It is necessary to integrate and unify these activities and human efforts. shareholders.

Purpose is to get plans implemented 5.• Horizontal VERTICAL COMMUNICATION Downward communication: It refers to the flow of information from the superior to the subordinate (the orders). instruction lectures. It generally improves the morale of the employees. face-to-face contacts.Directive in nature 4. protects. handbooks etc. are the main examples HORIZONTAL COMMUNICATION: Transmission of information among the positions at the same level of the organization. Upward communication: It implies the flow of communication from subordinates to the superiors of the organization. and inter departmental committee meetings. It involves reports suggestions.Travels fast 6.It also involves communication of policies procedures and programmes of the organization. letters. telephone talks. It takes the form of memoranda.grievance etc.Flow is downwards 3.Orders. Upward From lower to higher level Flow is upwards Non directive in nature Purpose is to provide feedback on results Travels slowly Reports. grivences.From higher to lower levels 2. recommendation. Difference between downward and upward communication: Downward 1. manuals. Such communication is also known as lateral or sideward communication. inquiries . Person with same status exchange information and ideas for achieving coordination among different departments or divisions. appeals . suggestions. surveys are the main examples 40 .

 Finally.  When formal channels break down. 2.  It is the main source of information about the feelings and attitudes of employees. 3. Part of organization structure. Distinction between Formal and Informal communication Formal Communication 1. It coexists with the formal communication system. 3.  It can transmit confidential information.  Informal channels partially replace and often supplement formal channels. informal channels are the only rescue and alternative. 2. People resort to informal communication when there are barriers in the formal 41 .  It fills in the gaps existing in the formal communication system.  It is a primary means of developing identification with the group and interest in work. which is unavailable in formal channels. Deliberately planned and systematic. Grapevine has no definite origin and direction. Benefits of Informal communication:  Informal communication is easier and faster than formal communication.  It is a powerful medium to transmit messages at great speed.  It also helps to satisfy the information needs of employees. informal communication tends to carry inaccurate and baseless information. Informal Communication 1. Unofficial channel. Official channels. the best way to deal with rumour is to supply true facts in face-to-face contacts.INFORMAL COMMUNICATION OR GRAPEVINE Informal communication or grapevine implies communication among people through informal contacts or relations. It contains rumours and gossips. channels. On the other hand. Cuts across formal relationship. Informal channels prove to be more effective and are more human & homely. Unplanned and spontaneous.

5. Fast and unstructured. Face-to-face conversation is the most natural way of transmitting the message. METHODS OF COMMUNICATION: There are three important types of communication media: 1) Oral Communication 2) Written Communication 3) Gestural Communication Each of there media may be used either exclusively or in combination with other media. Impersonal. 4. interview. Personal touch . committee meetings. Flexible and instable. It may be take place (i) through mechanical devices like telephone.Oral Communication is faster as compared to written Communication. Directed towards goals and need Satisfaction of individuals.. 2. Oriented towards goals and tasks of the Enterprise. 7. it is very speedy and helps to interchange feelings and attitudes. are becoming increasingly popular for communicating messages. Personal and social. Slow and structured 6. intercom system etc. 42 . MERITS: 1. Stable and rigid. These days mechanical devices like alarm bell. Economical . Speed . 7. 5. group discussions. 6. ORAL COMMUNICATION: Oral Communication involves exchange of messages through spoken words. 3. This Communication may take place through lectures.4.Oral Communication is more effective due to direct contact between the sender and the receiver. telephone. broadcast and social gatherings.Oral Communication is relatively less expensive both in terms of time and money.

5. Lengthy messages . Misunderstanding . 3. Physical distance .Oral Communication does not provide an authentic and permanent record of Communication unless the conversation is tape-recorded. WRITTEN COMMUNICATION: Written Communication is transmitted through written words in the form of letters.when there is a long physical distance between the speaker and the listener.Written Communication is cheaper when the sender and the receiver are situated at distant places. 6. Oral Communication may be ineffective. Lengthy message .4.In Oral Communication. DEMERITS: 1. 4. instruction cards. Permanent record . Repetition . Lack of record . Effectiveness . Written Communication tends to be a more dear and specific. Oral Communication may not produce satisfactory results. memos.If the subject . 2. circulars. 5. 43 . MERITS: 1. handbooks. DEMERITS: 1. 5. reports. Better response . manuals. returns etc. response or reaction to the message can be obtained on the spot.written messages are more carefully formulated than oral messages.Written Communication is more appropriate when the message is quite lengthy. Quick response . 3. Time Consuming . Therefore.Written Communication can be used again and again.Response is generally well thought out to this communication because the receiver gets sufficient time to understand and evaluate the message.Written Communication requires greater time in the preparation and transmission of message.Oral Communication may be misunderstood or not heard due to mutual distant or suspicion between the speaker and the listener. Economical . bulletins. Time Consuming . 2.Written Communication provides a reliable record for future reference.Oral Communication in the form of face-to-face talk may become time consuming and costly.Oral Communication is more flexible because the mode of delivery and the tone can be adjusted according to the type of listener or the audience. Flexibility . 4.matter to be communicated is quite lengthy.

A last moment communication with deadline may put too much pressure on the receiver and may result in resentment. 6. Misunderstanding . The receiver’s prejudices may also come in the way of his understanding the message in the right spirit. 3. Lake of personal touch . BARRIERS TO COMMUNICATION Communication is successful only when the receiver understands the message intended by the sender. It also encompasses many other factors that may exist at the end of sender as well as that of the receiver.As it takes long time to convey the message. Some of the sources contributing to noise are: • Poor Timing . 4. 44 . They are: NOISE: Noise is the first and foremost barrier to communication.A Written message once transmitted cannot be withdrawn. Written Communication is more expensive. emotions and attitudes. It is often used to supplement Oral Communication. GESTURAL COMMUNICATION: Communication through gestures or postures is known as Gestural Communications.” Noise does not mean only this. It means “interference that occurs in a signal and prevents one from hearing sounds properly.Written Communications tends to be very formal and lack personal touch.It is difficult to maintain complete secrecy about written messages.If the Written Message is poorly drafted it may create confusion and conflict. The receiver may mess up the message owing to inattention or may spoil decoding because of wrong or unexpected interpretation. The sender may resort to ambiguous or confusing signals. Managers often complain that one of their greatest problems is communication breakdown. Little secrecy . Gestural Communication is very useful in conveying feeling.2. Inflexibility . Expensive . 5. Specialists have made serious studies of this and have isolated certain factors that cause barriers to effective communication. also for the rent message there is no scope left for making amends for inaccuracy that may have crept into it.

religions.• • Inappropriate channel . Such an event would turn into one of miscommunication. and nationalities in their day to day encounters. And words. actions.Poor choice of channel of communication can also be contributory to the misunderstanding of the message. 45 . The meaning is in the mind of the sender and also in that of the receiver. Oral or written communication is based on words. Network Breakdown . The same category of words.Sometime staff may forget to forward a letter or there may be professional jealousy resulting in closed channel. There are innumerable examples of people who would give an ill-planned. CULTURAL BARRIERS: We live in a culturally diverse world. There is oftenanxiety surrounding unfamiliar cultures and cultural differences often come up as communication barriers. LACK OF PLANNING: Communication is not a casual affair. Unfortunately many people take it lightly. The result is that the message to be sent across may not be carefully planned. SEMANTIC PROBLEMS: Semantics is the systematic study of meaning. long-winding lecture while a short presentation with tables or graphs would be sufficient. may be used in unlimited ways. People will encounter individuals from different races. limited in number. But it is not always necessary for the meaning in the mind of the sender to be the same as in the mind of receiver. That is why the problems arising from expression or transmission of meaning in communication are called semantic problems. phrases. In the same way some people may not care to choose a suitable time and place that are so very necessary for effective communication. symbols. colours may mean different things to people of different countries or different cultural backgrounds.

46 . experience and other personal characteristics. A message received when we are emotionally worked up will have a different meaning for us than when we are calm and composed. It leads to psychological distancing which further leads to breakdown of communication or miscommunication. So it is necessary to be circumspect in such matters. SELECTIVE PERCEPTION: Perception provides each of us with a unique view of the world – a view some times related to. seniors. In the same way one’s family background formulates one’s attitude and communication skills. Selective perception means that the receivers selectively see and hear depending upon their needs. If. motivations. one’s relations with peers. without caring to seek clarification for them. place in society and status consciousness arising from one’s position in the hierarchical structure of the organization.WRONG ASSUMPTIONS: Quite often we act on assumptions. a customer writes to us that he would like to visit our office or factory without telling us that he would like to be picked up and we assume that he will manage to come on his own it may lead to loss of goodwill. EMOTIONS: Emotions play a very important role in our life. We should make all possible efforts to maintain our goodwill and not act impulsively on assumptions. Both encoding and decoding of messages are influenced by our emotions. This restricts participation of the less powerful in decision making. background. Anger is the worst emotion and enemy of communication. for example. but not necessarily identical with that held by others. Status consciousness is widely known to be a serious communication barrier in organizations. SOCIO-PSYCHOLOGICAL BARRIERS: The attitudes and opinions. Often it is seen that a man high up in an organization builds up a wall around himself. juniors and family background -all these deeply affect one’s ability to communicate both as a sender and receiver.

INFORMATION OVERLOAD: Unchecked inflow of information very often becomes another barrier to communication. for example. POOR LISTENING: Poor listening may lead to serious communication problems. culture. Every individual has a unique frame of reference formed by a combination of his experiences. and mostly talking about themselves. causing serious communication problems. FRAME OF REFERENCE: This is another barrier to clear communication.While decoding the messages. FILTERING: Filtering means that the sender of a message manipulates information in such a way that it will be seen more favorably by the receiver. education. There from arises the necessity to repeat the message and use more than one medium to communicate the same message. In this process he is filtering information. most of the receivers protect their own interests and expectations into the process of communication leading to a particular kind of feedback that may become a communication problem. A manager. Too many people are interested in talking. The net result is that the man at the top never gets objective information. the people at the lower levels condense and synthesize information so as to get maximum benefits for themselves. When people are bogged down with too much information they are likely to make errors. resulting in biases and different experiences in a communication situation. POOR RETENTION: People are also likely to forget messages reaching them. likes to tell his boss what he feels his boss wants to hear. They may also delay processing or responding to information/message and delay may become a habit. In the same way. attitude and many other elements. They are so much involved 47 . They hold back or ignore some important part of information.

and rules of the organization. 48 . Poor listening accounts for incomplete information and also poor retention. TRAITS OF A GOOD COMMUNICATION: 1. It should be encoded in the direct and simple language which the receiver can understand easily and quickly. Hence it is absolutely necessary for the management to adopt a persuasive style of communication. active and empathic listening. OFFENSIVE STYLE OF COMMUNICATION: It is quite obvious that offensive style of communication leads to communication breakdown. If a manager sends a message in such a way that the workers/juniors become defensive the relations get strained and communication suffers. CLARITY OF MESSAGE: The message must be clear and free from all ambiguity. The process of communication must ensure that various individuals in the organization get all the required information for proper discharge of their duties. It is a rather sensitive point. The result is that they are not interested in the speaker whose words go waste. CONSISTENCY OF MESSAGE: All messages must be consistent with the objectives. Everybody knows about the importance of listening. but very few actually practise patient. policies. 2. 3. COMPLETENESS OF MESSAGE: The message must be adequate and complete.with themselves that they do not have patience to listen. One may simply not get the desired result if this keeps on happening. That is why so many communication problems crop up.

the communicator must follow in action what he says in a message.4. frequency and the media of communication should not hurt the feelings of the communicates. UNIT-V DEFINITION OF CO-ORDINATION According to Henry Fayol “ to co-ordinate is to harmonize all the activities of a concern so as to facilitate its working and its success” NATURE AND CHARACTERISTIC OF CO-ORDINATION • • • • co-ordination is not a distinct function but the very essence of management. 49 . 5. This is known as the principle of feedback in communication. PROPER TIMINGS: The communication system should ensure that the message reaches the receiver when it is required. the mode. EMPATHY: The format. FOLLOW-UP: All communications should be followed up systematically. It is a basic responsibility of management. The cost of communication should be kept under check. 7. 8. Co-ordination does not arises spontaneously or by force. Heart of co-ordination is the unity of purpose. 6. The utility of the message depends upon its timeliness. This will ensure believability and seriousness in communication. The communicator must try to ascertain through some signals whether or not he is properly understood. Therefore. CREDEBILITY: Actions speak louder than words. ECONOMY: The communication system must be economical keeping in view its efficiency.

Co-ordination is the responsibility of each and every manager. PROBLEMS IN CO-ORDINATION • • INCREASE IN SIZE AND COMPLEXITY OF OPERATIONS SPECIALISATION Division of work into specialised functions and departments leads to diversity and lack of uniformity • CLASH OF INTEREST Often individual fail to appreciate how the achievements of organisation goals will satisfy their own goal. • DIFFERENT OUTLOOK OF WORKING AND APPROACH TOWARDS PROBLEMS • • CONFLICT BETWEEN LINE AND STAFF SPECIALIST EMPIRE BUILDING Some employees tend to over emphasis their own departments and sections. They try to get maximum possible share of total resources • PERSONAL RIVALRIES Members from rival groups try to settle personal scores in organisation activities. Co-ordination is required in group efforts not in individual effort. NEED AND IMPORTANCE OF COORDINATION • EFFECIENCY AND EFFECTIVENESS 50 . Such rivalry is disastrous to teamwork.• • • Co-ordination is a continuous or an on going process.

TYPES OF COORDINATION Coordination may be decided on different bases. Coordination helps in the accomplishment of organizational goals. External coordination refers to coordination between an organization and its external environment customers. • VERTICAL AND HORIZONTAL COORDINATION 51 . organizational goals and personal goals of people are reconciled. Quality of coordination determines the effectiveness of organized efforts. coordination can be internal of external on the basis of flow. it is classified as vertical and horizontal and coordination may also be procedural and substantive • INTERNAL AND EXTERNAL COORDINATION Coordination between the different units of an organization is known as internal coordination. UNITY OF DIRECTION Coordination helps to ensure unity of action in the face of disruptive forces. • QUNITESSENCE OF MANAGEMENT Coordination is all inclusive concept and the end result of management process. investors etc. It helps unity of action and helps to avoid conflicts between line and staff elements • HUMAN RELATION Coordination helps to improve team spirit and morale of employees. On the basis of scope or coverage.Coordination helps to improve the efficiency of operations by avoiding overlapping • efforts and duplication of work. In a well coordinated organization.

• PROCEDURAL AND SUBSTANTIVE COORDINATION Procedural coordination implies the specification of the organization in itself. they avoid unilateral action and coordination becomes easier. Sound coordination resolves conflicts as it arises. PRINCIPLES OF COORDINATION Mary Parker Follet has laid down four principles of effective coordination 1) DIRECT PERSONAL CONTACT Coordination is best achieved through direct personal contact with people. 3) RECIPROCITY It states that all factors in a given situation are interdependent and interrelated. Direct face to face contact communication is most effective. Substantive coordination is concerned with the content of the organizations activities. When People appreciate reciprocity of relations. 4) CONTINUITY It is an on-going or never ending process. Plans should be based on mutual participation. Early coordiantin also improves the quality of plans. Vertical coordination is ensured by top management through delegation of authority. 2) EARLY BEGINNING Coordination can be achieved more easily in early stages of planning and policy making.Vertical coordination implies coordination between different levels of organization. TECHNIQUES OF COORDINATION Main techniques of effective coordination arE 52 . Coordination between different departments and other units at the same level of management hierarchy is called horizontal coordination.

Clear cut objectives. It is possible in a climate of dedication and mutual cooperation. Clear cut authority relationships help to reduce conflicts and to hold people responsible. 53 . • CHAIN OF COMMAND Authority is the supreme coordinating power in an organization. • SIMPLIFIED ORGANISATION A simple and sound organization is an important means of coordination. harmonized policies and unified procedures and rules ensure uniformity of action. there is self coordination. Exercise of authority through the chain of command or hierarchy is the traditional means of coordination. • VOLUNTARY COORDINATION When every organizational unit appreciates the working of related units and modifies its own functioning to suet them. Sound leadership can persuade subordinates to have identity of interest and too adopt a common outlook. • EFFECTIVE LEADERSHIP AND SUPERVISION Effective leadership ensures coordination both at the planning and the execution stage. Effective interchange of opinions and information helps in resolving difference and in creation mutual understanding. • EFFECTIVE COMMUNICATION Open and regular communication is the key to coordination.• SOUND PLANNING Planning is the ideal stage for coordination.

MEANING OF CONTROL Controlling may be defined as the process of analysing actual operation seeing that actual performances is guided towards expected performance. Organizational activities are directed towards the attainment of pre-determined objectives through control. objective. THE CONTROL PROCESS 1. A manager cannot do the complete of managing without any control. NATURE AND PURPOSE OF CONTROL Main characteristics of control 1) Essential function of management 2) Ongoing process 3) Forward working 4) Involves measurement 5) The essence of control is action 6) Control is an integrated system ELEMENTS OF CONTROL 1) Planning 2) Information feedback 3) Delegation of authority 4) Remedial action NEED FOR CONTROL • • • • Control is an indispensable function of management. acceptable and workable. precise. 54 . Fixation of standards: • • • • Standards of desired performance should be established. Different standards are set up for various operations. It serves as the criteria by which actual results are to be evaluated. Management ensures that resources are obtained and utilized economically and efficiently for the accomplishment of organizational objectives through control. Standards should be accurate.

work. They should be measurable. Measurement of performance. the actual performance of various individuals. It should be in terms of range maximum and minimum so as to maintain flexibility. THE CONTROL PROCESS Meets standards Standards (Planning) Performanc e Operations (organizing and directing) Does not meet standards Corrective action 2. • • • • After fixation of standards.• • • • They should be flexible. Desired level of performance should be reasonable and feasible. groups and departments is measured. Performance should be measured in quantitative terms. Measurement of performance against standards should be on a future prevent them. It involves setting up the methods of collecting accurate and up-to-date information on the progress of. basis so that deviations are anticipated and necessary corrective actions are taken to 55 .

The corrective actions are programmed into the decision rules of the foremen. Only exceptional deviations are reported to the top management. This shows the unity of the manager’s job and the integrated nature of management process PROBLEMS IN CONTROL PROCESS 1. When deviations are beyond permissible limits. Corrective action may involve review and revision of goals or standards. 3. They should not only show results but also reasons. change assignment of tasks. any.3. 2. an analysis is made to identify the cause of deviations. provision for additional resources or new facilities. • • It requires changes in all other managerial functions. TIME RATE OF CHANGE: due to time lag in feedback. 56 .as a result there is slow down in the adaptive process. improvement in the selection and training of workers or reform in the techniques of direction. Reports should be clear. 4. Comparing performance standards: • • • • • • • The actual results are compared with standards to check deviations. ERRONEOUS STANDARDS: A mistake in setting standards is perhaps the most critical problem in a control system. Correction of deviations: • • The final step in the control process involves taking corrective action so that deviations do not recur. if quantitative terms. The deviations and their causes are reported to the manager and he will take the necessary corrective actions. the control system cannot respond quickly to change in the situation . WORKERS’ RESISTANCE: opposition arises at every step in the control process. MAGNITUDE OF CHANGE: control system is designed to cope with changes of a certain magnitude. Such comparisons are if the standards and actual performance are expressed in 4.

ECONOMICAL: The control system must be worth its cost and should justify the expenses involved. Later several pioneers suggested the use of MBO for performance appraisal. CHARACTERISTICS OF AN IDEAL CONTROL SYSTEM 1.g. OBJECTIVE: A sound control system must be objective and impersonal rather than subjective and arbitrary. 57 . 5. 4. As management philosophy MBO has now become a way of life for business managers. for long-range planning and for integrating the individual with the organization. 9. 2. FORWARD LOOKING: a control system is ideal only when it points outs deviations even before they take place.5. SIMPLE: Control system should be easy to understand and simple to maintain. COMMUNICATION PROBLEMS: semantic and other barriers to communication can distort the information flow. ‘Management by goals and results’. 7. STRATEGIC POINT CONTROL: a good control system should focus attention on critical or key points that need to be regulated. 3. SUGGESTIVE: solutions to the problems caused by the deviations should also be indicated. In 1954 Peter F. SUITABLE: The control system should be appropriate to the nature. MOTIVATIONAL: control system should aim at motivating people by fulfilling their needs. 6. UNIT-VI TECHNIQUES OF MANAGEMENT MANAGEMENT BY OBJECTIVE: Management by objective (MBO) is known by several names e. needs. ‘Goals management’ etc. 10. and circumstances of the enterprise and each level of activity inside it. Drucker suggested the concept of ‘Management by objectives and self control’. PROMPT: deviations in the control system must be reported quickly.. 8. FLEXIBLE: Only a flexible system can be pragmatic or critical. ‘management by objective’.

7. Second. Setting Objectives: The first step in installing the MBO system is to establish verifiable objectives for the organization as a whole and for various positions in the organization. MBO is both a philosophy and a technique of management. assess the contributions of each individual in terms of the results expected of him. 2. 5. First. MBO is a goal-oriented process and not a work-oriented process. Under MBO. MBO is a continuous process or a never-ending process. The superior must play a supportive role in helping his subordinates to develop 58 . 4. objectives for each department are laid down in consultation with the department heads.Concept of MBO: MBO has be defined as a process whereby superior and subordinates jointly identify the common objectives. objectives are established in several stages. set the results that should be achieved by the subordinates. The forgoing definition reveals the following characteristics of MBO: 1. It lays down an evaluative mechanism through which the contribution of each individual is measured. Self-direction and self-control are the built-in features of MBO. 6. Then this process of goal-setting is repeated at lower levels of management until goals for each and every individual are established. Performance of individual is periodically evaluated in the light of pre-determined targets. STEPS IN MBO PROCESS: The main steps in the process of MBO are as follows: 1. top management sets the goals for the total enterprise in certain key areas. and integrate individuals with the organization so a to make best use of organizational resources. Under MBO a linkage is created between organizational goals and individual goals. 3.

At annual reviews. Ways and means are identified to overcome problems and to improve performance in future. THE MBO PROCESS 59 . Then the means for the implementation of plans are decided. recycling objectives and periodic appraisal of performance. the goals are modified. Thus. 3. The goal-setting process is complete when agreement is reached between superior and subordinates as to what is to be accomplished and why. Rewards are decided on the basis of annual appraisal. the MBO process comprises preliminary goal-setting. Goals and resources must be matched together. If necessary. Conducting periodic reviews: At frequent intervals actual performance is reviewed jointly by the superior and the subordinates. matching goals with resources. 4. setting subordinates’ objectives. 2. responsibility for the achievement of each goal is specified. Developing action plans: Once the goals are established.consistent and feasible objectives for themselves. achievements are carefully analyzed against the given objectives. Appraising annual performance: A thorough evaluation of individual performance is done at the end of the year. Resources required for goals attainment are identified and allocated. Job descriptions for various positions must define the goals to be attained. Such periodic evaluation progress serves as a checkpoint.

APPRAISING ANNUAL PERFORMANCE 2. SETTING OBJECTIVES 4. DEVELOPING ACTION PLANS 3. CONDUCTING PERIODIC REVIEWS MANAGEMENT BY EXCEPTION: 60 .1.

The object is to reduce the quantity of detail contained in management reports and statistics to date on which action can be taken. It keeps management alert to opportunities and threats. If the personnel are performing as expected. The term is also used to describe provision of information to management in which only significant deviations from budgets or plans are reviewed as the basis for corrective action. Advantages of MBE: • • • • • It saves the time of managers because they deal only with exceptional matters. It facilitates delegation of authority. It focuses managerial attention on major problems. Subordinates may misuse the permissive atmosphere.It is a management style wherein managers intervene only when their employees fail to meet their performance standards. Limitations of MBE: • • Non critical and non exceptional areas may be crucial and may damage the system before remedial action is taken. 61 . It provides better yardstick for judging results. the manager will take no action.

Quality control method. measuring characteristic values of a product manufactured by implementing an inspection and manufacturing operation based on the quality maintenance matrix. performing factor analysis on a part related to the quality characteristic item showing an impermissible characteristic value in the above measurement and setting new conditions so as to improve the impermissible characteristic values and storing the quality maintenance matrix revised by the newly set conditions. quality control support system and trend management program for manufacturing operation A product quality control method for a manufacturing operation comprising: storing part-by-part data related to equipment used in a manufacturing process in a storage device using an inputting device. Tourism Futures: dynamics. outputting the stored data from the storage device via a processing device to an outputting device as a quality maintenance matrix.Trends In Management Tourism Management Dynamics As the global tourism industry continues to expand and to become more complex. challenges and tools helps one with a comprehensive insight of the changes in the external business environment. and equips them with new managerial techniques and tools in order to adapt and profit from these changes and into the future. and additionally storing the obtained characteristic values in the quality maintenance matrix. it is vital that those in the industry identify trends early and design proactive strategies to gain competitive advantage. 62 . It provides the manager of tomorrow with the ability to look beyond normal planning horizons and identify potential opportunities from change. implementing an inspection and manufacturing operation based on the thus revised quality maintenance matrix prepared in the first step.

The new buzzword is brightsizing. Many companies have policy statements in their employee handbooks that state that in layoff decisions "among equally qualified candidates preference will be given to the employee with the greatest seniority. etc. such as length of time with the company. they are good or bad depending on how well they are applied. as "corporate downsizing in which the brightest workers are let go. however. but applied incorrectly it can cause more harm than good. While it provides more opportunity for comic relief. This happens when a company lays off those workers with the least seniority. Brightsizing is downright dangerous and you need to protect your organization from it. company culture. It is. is appropriately called dumbsizing. when done improperly. existing contracts and laws." When faced with decisions that will result in a reduction in staff. It is more a reaction to the last few trends. For example: One company I worked with kept an individual with them because he was one of their first employees. it is no laughing matter. Re-engineering is a solid business management tool. The latest management buzzword isn't really a trend. Brightsizing is defined.Brightsizing-new technique in management: Management trends come and go. Mostly. They are good or bad depending on many variables: industry." Sometimes brightsizing is blamed on union contracts. make sure you first evaluate the value of the employee to the organization and THEN look at other mitigating factors. They kept finding jobs he could do as the company grew rapidly and outgrew his capabilities. Downsizing. education level of workers. by Paul McFedries. but its those young workers who are often the best trained and educated. courtesy of Dilbert. unfortunately. which enforce seniority-based hiring/firing practices. 63 . just as common in non-union companies.

McGraw Hill 64 . became an even greater liability to the company because he never adjusted to the changing social rules on interpersonal conduct.A. was nearly blind. This individual. His remarks and actions were usually dismissed because "he’s just a harmless old man". While it is important that you respect your employees as a group.”Principles Of Management”.: “Management and Organization”. your first obligation is to the health of your company. Recommended Text Books: • • • Koontz O. McGraw Hill Peter Druker The Practice of Management”. If the company suffers as a result of poor personnel decisions on your part. While I believe in company loyalty and retraining employees. The driver had gotten old. Allied Publications Louis. but the potential for a harassment lawsuit was significant. you have to draw the line somewhere based on performance and value to the company. they made him responsible for picking up dignitaries at the airport and bringing them to the office. not to any individual.Eventually. He did not make a good first impression for the company. Remember.Donnell . you can not sacrifice the company for any individual.Allen. and always treat them fairly. incidentally. and could not even converse socially with the dignitaries he picked up. it may result in further downsizing and more employees would have to be released.

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