PLANNING

 It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-determined
goals.

 It is an exercise in problem solving & decision making. Planning is determination of courses of

action to achieve desired goals.

 Thus, planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper utilization of human & non-human
resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion,
uncertainties

ORGANISING

 It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals.

 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”. To organize a business involves
determining & providing human and non-human resources to the organizational structure.

 Establishing the framework of working:

 How many units or sub-units or departments are needed.

 How many posts or designations are needed in each department.

 How to distribute authority and responsibility among employees

 Once these decisions are taken, organizational structure gets set up.

 Organising as a process involves:

 Identification of activities.

 Classification of grouping of activities.

 Assignment of duties.

 Delegation of authority and creation of responsibility.

 Coordinating authority and responsibility relationships.

STAFFING

 Recruiting, selecting, appointing the employees, assigning duties, maintaining cordial

relationship and taking care of grievances of employees.

 Training and Development of employees, deciding their remuneration, promotion and

increments.

 Evaluting their performance.

 It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behavior etc. The main purpose o staffing is to put right
man on right job i.e. square pegs in square holes and round pegs in round holes.

 Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the person
and giving the right place).

 Recruitment, selection & placement.

 Training & development.

 Remuneration.

 Performance appraisal.

 Promotions & transfer.

DIRECTING

 It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and staffing
are the mere preparations for doing the work. Direction is that inert-personnel aspect of
management which deals directly with influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals.
CONTROLLING

 It implies measurement of accomplishment against the standards and correction of deviation if

any to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to
predict deviations before they actually occur.

 According to Theo Haimann, “Controlling is the process of checking whether or not proper
progress is being made towards the objectives and goals and acting if necessary, to correct any
deviation”.

Frederick Winslow Taylor's scientific management theory, also known as Taylorism, was developed in
the late 19th and early 20th centuries and is considered the first systematic approach to management.
The theory is based on the following key principles:

1. Time and Motion Study: Taylor believed that the best way to improve efficiency was to break
down work into its individual tasks and study each one in detail. He used time and motion
studies to analyze work processes, identify inefficiencies, and develop new, more efficient
methods of performing tasks.
 2. Division of Labor: Taylor believed that work should be divided into specialized tasks, with each
worker performing a specific, defined task. This specialization would lead to higher productivity,
as workers would become skilled and efficient in their specific tasks.

3. Management Control: Taylor believed that management should have complete control over the
work process, including setting standards, monitoring performance, and making decisions about
how work should be done.

4. Selection and Training: Taylor believed that workers should be selected and trained for specific
tasks based on their natural abilities and aptitudes. He also believed that workers should be
trained and motivated to work efficiently and effectively.

5. Scientific Management Principles: Taylor believed that management principles could be

developed and applied in a scientific manner, and that these principles should be used to guide
all management decisions and actions.

Basis for
Forecasting Planning
Comparison
Forecasting alludes to estimating Planning is a process of looking ahead
future performance of an entity, and projecting the future course of action
Meaning
considering past and current for the firm and also for various other
performance and facts. units, within it.
Postulations and assumption, that Relevant information, forecasts and
Based on
involves a certain degree of guess. objectives.
Concerned with Estimating future event or trend. Assessing the future and providing for it.
Stresses on Facts Facts and expectations
Different levels of managers or
Responsibility sometimes experts are employed by Top level managers
the management.

the Hawthorne Experiments.

• They were conducted at Western Electrical Works in USA, b/w 1924-1932.

• It was initially designed by Western Electric Industrial engineers

Four Parts of Hawthorne Studies /

Experiments
• Part I - Illumination Experiments (1924-27)

• Part II - Relay Assembly Test Room Study (1927-1929)

• Part III - Mass Interviewing Programme (1928-1930)

• Part IV - Bank Wiring Observation Room Experiment (1932)

Part I - Illumination Experiments

(1924-27)

• These experiments were performed to find out the effect of different levels of illumination

(lighting) on productivity of labour.

• The brightness of the light was increased and decreased to find out the effect on the productivity of
the test group. Surprisingly, the productivity increased even when the level of illumination was
decreased.

• It was concluded that factors other than light were also important.

Part II - Relay Assembly Test Room

Study (1927-1929)

• Under these test two small groups of six female telephone relay assemblers were selected. Each group
was kept in separate rooms. From time to time, changes were made in working hours, rest periods,
lunch breaks, etc. They were allowed to choose their own rest periods and to give suggestions. Output
increased in both the control rooms. It was concluded that social relationship among workers,
participation in decision-making, etc. had a greater effect on productivity than working conditions.

Part III - Mass Interviewing Programme (1928-1930)

• 21,000 employees were interviewed over a period of three years to find out reasons for increased
productivity. It was concluded that productivity can be increased if workers are allowed to talk freely
about matters that are important to them.
Part IV - Bank Wiring Observation Room Experiment (1932)

• A group of 14 male workers in the bank wiring room were placed under observation for six months. A
worker's pay depended on the performance of the group as a whole. The researchers thought that the
efficient workers would put pressure on the less efficient workers to complete the work. However, it
was found that the group established its own standards of output, and social pressure was used to
achieve the standards of output.

Conclusions of Hawthorne Studies / Experiments

The conclusions derived from the Hawthorne

Studies were as follows :-

1. The social and psychological factors are responsible forworkers' productivity and job satisfaction. Only
good physicalworking conditions are not enough to increase productivity.

2. The informal relations among workers influence the workers'behaviour and performance more than
the formal relations in the organisation.

3. Employees will perform better if they are allowed to participate in decision-making affecting their
interests.

4. Employees will also work more efficiently,when they believe that the management is interested in
their welfare.

5. When employees are treated with respect and dignity, their performance will improve.

6. Financial incentives alone cannot increase the performance. Social and Psychological needs must also
be satisfied in order to increase productivity.

9. Good communication between the superiors and subordinates can improve the relations

and the productivity of the subordinates.

10. Special attention and freedom to express their views will improve the performance of

the workers.
Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the
concept of management. He introduced a general theory that can be applied to all levels of
management and every department. The Fayol theory is practised by the managers to organize and
regulate the internal activities of an organization. He concentrated on accomplishing managerial
efficiency.

The fourteen principles of management created by Henri Fayol are explained below.

1. Division of Work-

Henri believed that segregating work in the workforce amongst the worker will enhance the quality of
the product. Similarly, he also concluded that the division of work improves the productivity, efficiency,
accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a
technical work level.

2. Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management to work efficiently,
and responsibility makes them responsible for the work done under their guidance or leadership.

3. Discipline-

Without discipline, nothing can be accomplished. It is the core value for any project or any management.
Good performance and sensible interrelation make the management job easy and comprehensive.
Employees good behaviour also helps them smoothly build and progress in their professional careers.

4. Unity of Command-

This means an employee should have only one boss and follow his command. If an employee has to
follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction-

Whoever is engaged in the same activity should have a unified goal. This means all the person working in
a company should have one goal and motive which will make the work easier and achieve the set goal
easily.

6. Subordination of Individual Interest-

This indicates a company should work unitedly towards the interest of a company rather than personal
interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command
in a company.
7. Remuneration-

This plays an important role in motivating the workers of a company. Remuneration can be monetary or
non-monetary. However, it should be according to an individual’s efforts they have made.

8. Centralization-

In any company, the management or any authority responsible for the decision-making process should
be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that
there should be a balance between the hierarchy and division of power.

9. Scalar Chain-

Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is
necessary so that every employee knows their immediate senior also they should be able to contact any,
if needed.

10. Order-

A company should maintain a well-defined work order to have a favourable work culture. The positive
atmosphere in the workplace will boost more positive productivity.

11. Equity-

All employees should be treated equally and respectfully. It’s the responsibility of a manager that no
employees face discrimination.

12. Stability-

An employee delivers the best if they feel secure in their job. It is the duty of the management to offer
job security to their employees.

13. Initiative-

The management should support and encourage the employees to take initiatives in an organization. It
will help them to increase their interest and make then worth.

14. Esprit de Corps-

It is the responsibility of the management to motivate their employees and be supportive of each other
regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.

This 14 principles of management are used to manage an organization and are beneficial for prediction,
planning, decision-making, organization and process management, control and coordination.
Taylor's 4 Principles of Scientific Management

-Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.

-Scientifically select, train, and develop each worker rather than passively leaving them to train
themselves.

-Cooperate with the workers to ensure that the scientifically developed methods are being followed.

-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.