Meaning of Management

Management is understood in different ways by different people. Economists regard it as a

factor of production. Sociologists see it as a class or group of persons while practitioners of
management treat it as a process. For our understanding, management may be viewed as what
a manager does in a formal organization to achieve the objectives. In the words of Mary Parker
Follet management is “the art of getting things done through people”. This definition throws
light on the fact that managers achieve organizational goals by enabling others to perform
rather than performing the tasks themselves. Management encompasses a wide variety of
activities that no one single definition can capture all the facets of management. That is why,
it is often said that there are as many definitions of management as there are authors in the
field. However, the definition given by James A.F. Stoner covers all the important facets of
management. According to him: “Management is the process of planning, organizing, leading
and controlling the efforts of organization members and of using all other organizational
resources to achieve stated organizational goals”.

The definition suggests:

“Management is a continuous process;

“Several interrelated activities have to be performed by managers irrespective of their levels

to achieve the desired goals.”

“Managers use the resources of the organization, both physical as well as human, to achieve
the goals.”

“Management aims at achieving the organisation’s goals by ensuring effective use of resources
in the best interests of the society.”
Management Practices from Past to Present
The evolution and growth of change management as a discipline has seen a meteoric rise over
the three main eras of the definitive past, evolving present and the formalized and expanding
future. The foundational years before the 1990’s saw academics beginning to define and
understand the very basics of change management and systems experiencing, reacting and
learning to adapt to change.

1910s-1940s: Management as Science

Management as Science was developed in the early 20th century and focused on increasing
productivity and efficiency through standardization, division of labour, centralization and hierarchy.

1950s-1960s: Functional Organisations Due to growing and more complex organisations, the
1950’s and 1960’s saw the emergence of functional organisations and the Human Resource
(HR) movement.

1970s: Strategic Planning

In the 1970’s we changed our focus from measuring function to resource allocation and tools
like Strategic Planning (GE), Growth Share Matrix (BCG) and SWOT were used to formalise
strategic planning processes.

1980s: Competitive Advantage

As the business environment grew increasingly competitive and connected, and with a
blooming management consultancy industry, Competitive Advantage became a priority for
organisations in the 1980’s.

1990s: Process Optimisation

Benchmarking and business process reengineering became popular in the 1990’s, and by the
middle of the decade, 60% of Fortune 500 companies claimed to have plans for or have already
initiated such projects.

2000s: Big Data

Largely driven by the consulting industry under the banner of Big Data, organisations in the
2000’s started to focus on using technology for growth and value creation.

Management practices from past to present-

 Classical approaches to management include:

– Scientific management

– Administrative principles

– Bureaucratic organization

(A classical approach means people are rational.)

The scientific management theory focused on improving the efficiency of each individual in
the organization. The major emphasis is on increasing the production through the use of
intensive technology, and the human beings are just considered as adjuncts to machines in
the performance of routine tasks.
The scientific management theory basically encompasses the work performed on the
production floor as these tasks are quite different from the other tasks performed within
the organization.

7 Techniques of Scientific Management

1. Work Study

Work-Study includes the following techniques

(а) Method Study

(b) Motion Study

(c) Time Study or Work Measurement

(d) Fatigue Study

2. Standardization of Tools and Equipments

3. Scientific Task Setting

4. Scientific Setting of Wage Rates

5. Scientific Selection and Training

6. Functional Foremanship

7. Differential Piece-Rate Plan

 Bureaucratic organization (Max Weber)
– Bureaucracy

• An ideal, intentionally rational, and very efficient form of

organization.

• Based on principles of logic, order, and legitimate authority.

Characteristics of bureaucratic organizations:

– Clear division of labor

– Clear hierarchy of authority

– Formal rules and procedures

– Impersonality

 Possible disadvantages of bureaucracy:

– Excessive paperwork or “red tape”

– Slowness in handling problems

 – Rigidity in the face of shifting needs

– Resistance to change

 Human resource approaches include:

– Hawthorne studies

– Maslow’s theory of human needs

– McGregor’s Theory X and Theory Y

– Argyris’s theory of adult personality

Hawthorne studies
– Initial study examined how economic incentives and physical conditions
affected worker output.

– No consistent relationship found.

“Psychological factors” influenced results

Maslow’s theory of human needs

Implications of Theory X and Theory Y:

– Managers create self-fulfilling prophecies.

– Theory X managers create situations where workers become dependent and

reluctant.

– Theory Y managers create situations where workers respond with initiative

and high performance.

DEFINITION:
• F.W. Taylor - “Art of knowing what you want to do and then seeing that it is done the best
and cheapest way”.
• Henry Fayol – “To Manage is to forecast, to plan, to organize, to command, to co-ordinate
and to control”.
• Peter F.Drucker –”Management is work and as such it has its own skills, its own tools and
its own techniques”.
• “Management is the art of getting things done through and with people”.

Management is an Art or Science or both

To become an effective manager, a individual needs the understanding of management

principles and the skills of how to utilize the knowledge. Lack of either will lead to inefficiency.
A comparison between science and art is presented below.
Art Science
 Advances by practice Advances by knowledge
 Feels Proves
 Guesses Predicts
 Describes Defines
 Opines Measures
 Expresses Impresses

Levels of Management

The term “Levels of Management’ refers to a line of demarcation between various

managerial positions in an organization. The number of levels in management increases
when the size of the business and work force increases and vice versa. The level of
management determines a chain of command, the amount of authority & status enjoyed by
any managerial position. The levels of management can be classified in three broad
categories:

1. Top level / Administrative level

2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers-

Managers at all these levels perform different functions. The role of managers at all the
three levels is discussed below:
Managerial Roles & Functions-

Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management:
Inside our Strange World of Organizations," in 1990.

The ten roles are:

1. Figurehead

2. Leader

3. Liaison

4. Monitor

5. Disseminator

6. Spokesperson

7. Entrepreneur

8. Disturbance Handler

9. Resource Allocator

10. Negotiator

The 10 roles are then divided up into three categories, as follows:

 Category Roles

Figurehead
Leader
Interpersonal Liaison

Monitor
Disseminator
Informational Spokesperson

Entrepreneur
Disturbance
Handler
Resource
Allocator
Decisional Negotiator

Management Skills
What are management skills? Management skills mean having the capacity to run a
business. It's being able to make the right choices while managing the overall performance
of the company. It means being able to communicate and deliver results by providing
employees with a strong business plan to meet the aim for the company. Management skills
are required to manage the business and include overseeing workplace issues, employees,
teamwork and team development and communication. It also means giving employees their
duties and monitoring their performance, while at the same time reaching the business
objective.
Functions of Management
Planning

The planning function of management controls all the planning that allows the organization
to run smoothly. Planning involves defining a goal and determining the most effective
course of action needed to reach that goal.
Organizing

The organizing function of leadership controls the overall structure of the company. The
organizational structure is the foundation of a company; without this structure, the day-to-
day operation of the business becomes difficult and unsuccessful.
Staffing

The staffing function of management controls all recruitment and personnel needs of the
organization. The main purpose of staffing is to hire the right people for the right jobs to
achieve the objectives of the organization.
Coordinating

The coordinating function of leadership controls all the organizing, planning and staffing
activities of the company and ensures all activities function together for the good of the
organization.
Controlling

The controlling function of management is useful for ensuring all other functions of the
organization are in place and are operating successfully. Controlling involves establishing
performance standards and monitoring the output of employees to ensure each employee’s
performance meets those standards.

Meaning and Concept of Planning

In simple words, planning is deciding in advance what is to be done, when where, how and by
whom it is to be done. Planning bridges the gap from where we are to where we want to go.
It includes the selection of objectives, policies, procedures and programmes from among
alternatives. A plan is a predetermined course of action to achieve a specified goal. It is an
intellectual process characterized by thinking before doing. It is an attempt on the part of
manager to anticipate the future in order to achieve better performance. Planning is the
primary function of management.

According to Koontz and O’ Donnell, “Planning is an intellectual process, conscious

determination of course of action, the basing of decision on purpose, facts and considered
estimates.”
Nature of planning
• Intellectual process: A mental process involving imagination, foresight and sound
adjustment but not guesswork.

• Continuous process: An on-going/dynamic exercise as old assumptions change, old

plans are revised or new ones are prepared.

• Forward process: No plan can be prepared without knowledge of future.

• Involves choice : Decision making is core of planning

Objective Of Planning
• To focus attention on objective & results.

• To reduce uncertainty and change.

 • To provide sense of direction.

• To encourage innovation and creativity.

• To help in coordination.

• To guide decision making.

• To provide a basis for decentralization.

• To provide economy in operation.

• To facilitate control

Planning Process

Effective planning requires gathering data about the projected growth of the industry and
information about competitors -- their strengths, weaknesses and the strategies they are
devloping. The small business owner also must identify the best opportunities for his
company to pursue. He starts by analyzing customer needs and determines how to create
products and services to meet these needs. He then sets goals for the company, which may
include revenue targets and productivity goals such as the gross margin percentage he
intends to achieve. The next step is designing strategies and action plans -- the specific steps
the owner and his team will take to reach company goals.

Types of Planning

1. Financial Planning: It goes without saying that you must have a tangible financial
plan for your business, but with the infinite number of ways you can develop yours,
what do you do? When it comes to our financial planning, we’ve found the strongest
results after following this handful of “musts”:
o The plan must have buy-in from employees at all levels of the organization.
o The plan must be clearly communicated.
o The plan must be rooted in reality.
o The plan must be forward-looking.
o The plan must be reviewed formally; progress must be tracked on an ongoing
basis.

2. Strategic Planning: In addition to having a strong financial outlook, your company also
needs a clear strategic vision. (Again, you probably already know this—it isn’t rocket
science!) We suggest doing a quick online search—you’ll find several great templates that
will guide you in establishing your strategic vision

3. Contingency Planning: A sturdy contingency plan is essential to growth and business

success. After all, you need a “Plan-B” or a backup plan to launch when the
unexpected happens, right? Contingency planning makes you proactive and serves
as a source of innovation and business growth in and of itself (double win!). In short,
a good contingency represents a researched and vetted realistic opportunity. If
disaster strikes, activate contingencies in order to fill a void.
4. Succession Planning: What if your manager or an executive left suddenly? Is your
organization prepared to replace a major player on your team? While “missing”
them is one thing, making sure your organization continues to grow beyond their
departure is crucial to your overall success (obviously!). To make sure you don’t skip
more than a beat, you need to beef up your succession.

Types of Plans
Plans commit individuals, departments, organizations, and the resources of each to specific
actions for the future. Effectively designed organizational goals fit into a hierarchy so that
the achievement of goals at low levels permits the attainment of high‐level goals. This
process is called a means‐ends chain because low‐level goals lead to accomplishment of
high‐level goals.

Three major types of plans can help managers achieve their organization's goals: strategic,
tactical, and operational. Operational plans lead to the achievement of tactical plans, which
in turn lead to the attainment of strategic plans. In addition to these three types of plans,
managers should also develop a contingency plan in case their original plans fail.

1. Operational plans

The specific results expected from departments, work groups, and individuals are
the operational goals. These goals are precise and measurable. “Process 150 sales
applications each week” or “Publish 20 books this quarter” are examples of operational
goals.
Single‐use plans apply to activities that do not recur or repeat.
Continuing or ongoing plans are usually made once and retain their value over a period of
years while undergoing periodic revisions and updates

2. Tactical plan is concerned with what the lower level units within each division must do,
how they must do it, and who is in charge at each level. Tactics are the means needed to
activate a strategy and make it work.
3. Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate because of changing
circumstances.

Corporate planning is a process used by businesses to map out a course of action that will
result in revenue growth and increased profits. Although large corporations may have staff
members -- or entire departments -- devoted to performing the planning function, small
business owners can become proficient through learning basic concepts and putting forth
the effort necessary to create a comprehensive plan.
What is 'Management by Objectives - MBO'
Management by objectives (MBO) is a management model that aims to improve
performance of an organization by clearly defining objectives that are agreed to by both
management and employees. According to the theory, having a say in goal setting and
action plans should ensure better participation and commitment among employees, as well
as alignment of objectives across the organization. The term was first outlined by
management guru Peter Drucker in 1954 in his book "The Practice of Management."

Decision-making is regarded as the cognitive process resulting in the selection of a belief or

a course of action among several alternative possibilities. Every decision-making process
produces a final choice, which may or may not prompt action. Decision-making is the
process of identifying and choosing alternatives based on the values, preferences and
beliefs of the decision-maker.
TYPES OF DECISIONS:

PROGRAMMED DECISIONS:

Programmed decisions are routine and repetitive, and the organization typically develops
specific ways to handle them. A programmed decision might involve determining how
products will be arranged on the shelves of a supermarket. For this kind of routine,
repetitive problem, standard arrangement decisions are typically made according to
established management guidelines.

NON-PROGRAMMED DECISIONS:

Non programmed decisions are typically one-shot decisions that are usually less structured
than programmed decision.

5 ELEMENTS OF THE DECISION SITUATION:

1. The Decision Makers

2. Goals to be served
3. Relevant Alternatives
4. Ordering of Alternatives
5. Choice of Alternatives

Steps of Decision-Making Process

Following are the important steps of the decision-making process. Each step may be
supported by different tools and techniques.
Decision Making Techniques

5 techniques that can assist managers in their efforts toward

1. Brainstorming: It is a combination of group problem-solving and discussions. It works on

the belief that the more the number of ideas, greater the possibility of arriving at a solution
to the problem that is acceptable to all. It starts with the group generating ideas which are
then analyzed, with action points based on the discussions.

2. Nominal group technique: In a nominal group technique, the team divides itself into
smaller groups and generates ideas. Possible options are noted down in writing and the
team members further discuss these to narrow down the possible choices they would like to
accept. Team members then discuss and vote on the best possible choice. The choice that
receives the maximum votes is accepted as the group decision.
Continuing the above example, this group of instructional designers can be further divided
into smaller teams. Every member of the team gives their idea and at the end, each member
votes for the best one. At the end, the idea that gains the highest votes would be finalized.

3. Multi-voting: It starts with a round of voting where an individual casts his vote for the
shortlisted options. Each individual can cast one vote at a time. The options with the
maximum number of votes are carried to the next round. This process is repeated until a
clear winning option is obtained.
For instance, from the above discussed example, each team would propose their strategy in
front of the other teams. And the other teams would vote for the one they prefer best. The
strategy that receives the maximum number of votes is considered final.

4. Delphi method: In this method of decision-making, the facilitator allows team members
to individually brainstorm and submit their ideas “anonymously”. Other team members do
not know the owner of the ideas. The facilitator then collects all the inputs and circulates
them among others for modifying or improving them. This process continues until a final
decision is made. In the above example, you can have a facilitator who collects strategies
and passes them on to the others without revealing to whom the strategy belongs. Later,
the facilitator collects the improvised strategies and chooses the best one.
5. Electronic meeting: Here, the decision-making process takes place virtually with the help
of technology. For instance, we can have a Skype call with the client. Create two or three
strategies and discuss them with the client clearly in the Skype call; let the client choose the
strategy close to his expectations.
Team decision-making is a time-consuming process and before the team leader ensures the
participation of the full team, he/she must make sure he has enough time and resources for
the decision-making process and choose a technique that is most appropriate in a given
situation, keeping the profile of team members in mind.

Making decision effective-

1. Classifying the problem. Is it generic? Is it exceptional and unique? Or is it the first

manifestation of a new genus for which a rule has yet to be developed?
2. Defining the problem. What are we dealing with?

3. Specifying the answer to the problem. What are the “boundary conditions”?

4. Deciding what is “right,” rather than what is acceptable, in order to meet the boundary
conditions.. What will fully satisfy the specifications before attention is given to the
compromises, adaptations, and concessions needed to make the decision acceptable?

5. Building into the decision the action to carry it out. What does the action commitment
have to be? Who has to know about it?

6. Testing the validity and effectiveness of the decision against the actual course of
events. How is the decision being carried out? Are the assumptions on which it is based
appropriate or obsolete?
 UNIT-2

Meaning of organization

A social unit of people that is structured and managed to meet a need or to pursue collective
goals. All organizations have a management structure that determines relationships between
the different activities and the members, and subdivides and assigns roles, responsibilities, and
authority to carry out different tasks. Organizations are open systems--they affect and are
affected by their environment.
Types of organization

On the basis of relationship, an organization may of two types—formal and informal.

Formal organization refers to the structure of well-defined jobs, each bearing a definite
measure of authority, responsibility and accountability.
Informal organization refers to the relationship between people in the organization based on
personal attitudes, emotions and prejudices, likes and dislikes.
There are five common forms of organization structure—Line, Functional, Line and Staff,
Committee and matrix organization.
(1) Line organization —In this, there is a chain of authority which flows from upward to down
word.
Advantages- Main advantages of this form of organization are: (i) Simple, (ii) Fixed
responsibility, (iii)Flexibility, (iv) Prompt decision, (v) Unified control, (vi) Well-defined
authority, (vii) Fixed channel of promotions.
Disadvantages— The system claims the following disadvantages: (i) Unitary administration, (ii)
Overloading with work, (iii) Lack of specialization (iv) Lack of communication (v) Succession
problem, (vi) Absence of conceptual thinking, (vii) Favorites, (viii) No co-ordination.
(2) Functional organization—In this form of organization all activities in the organization are
grouped according to the basic functions, i.e., production, finance, marketing, headed by a
specialist.
Advantages- Main advantages of this form are: (i) Specialization, (ii) Large-scale production, (iii)
Improved efficiency, (iv) Flexibility, (v) Better industrial relations, (vi) Separation of mental and
physical functions.
Disadvantages—following are the disadvantages of this form of organization: (i) Multiplicity of
authority, (ii) Indiscipline, (iii) Shifting of responsibility, (iv) Lack of co-ordination, (v)
impracticable, (vi) delay in decision making.
(3) Line and Staff Organization—in this form of organization the structure is basically that of line
organization but functional experts are appointed to advise the line authority in their respective
field.
Advantages: (i) Advantages of the line and the functional organisations, (ii) Specialisation, (iii)
Sound
decisions.
Disadvantages: (i) Conflicts between the line and the staff executives, (ii) Advice of the staff
executives are ignored, (iii) No demarcation of authority, (iv) Lack of responsibility, (v)
uneconomical.
(4) Committee Organization—Committee is a group of individuals formed permanently or
temporarily for a particular purpose through free interchange of ideas.

Advantages—(I) Pooling of ideas, (2) Co-ordination, (3) Motivation through participation, (4)
Representation of interest groups, (5) Easy communication, (6) No concentration of power, (7)
A tool of management for development.
Disadvantages—(I) Slow decisions, (2) Divided responsibility, (3) Minority tyranny, (4) other
abuses.
(5) Project or Matrix Organization—in it authority flows vertically within functional
departments.

Advantages-It emphasizes multiple inter-dependence among various functions, horizontal

relationships and operational flexibility.

Disadvantages—it is of a temporary nature.

1
Organization structure

Functional Structure

Functional structure is set up so that each portion of the organization is grouped according to
its purpose. In this type of organization, for example, there may be a marketing department, a
sales department and a production department. The functional structure works very well for
small businesses in which each department can rely on the talent and knowledge of its workers
and support itself.
Divisional Structure

Divisional structure typically is used in larger companies that operate in a wide geographic area
or that have separate smaller organizations within the umbrella group to cover different types
of products or market areas. For example, the now-defunct Tecumseh Products Company was
organized divisionally--with a small engine division, a compressor division, a parts division and
divisions for each geographic area to handle specific needs.
Matrix

The third main type of organizational structure, called the matrix structure, is a hybrid of
divisional and functional structure. Typically used in large multinational companies, the matrix
structure allows for the benefits of functional and divisional structures to exist in one
organization
De–Centralization of the Authority
In an organization, the decentralization of the authority can be referred to as allowing the large
number of the persons within an organization to take the decisions. In the decentralization of
the authority, no concentration is given on the decision making. making is very clear.

The major disadvantages of the decentralization of the authority can be summarized as the
follows –

1. General slackness in the discipline.

2. Too much meddling in the process.
3. Existence of the political culture.
4. Loss in the effectiveness.
Meaning of Staffing:

The term ‘Staffing’ relates to the recruitment, selection, development, training and

compensation of the managerial personnel. Staffing, like all other managerial functions, is the

duty which the apex management performs at all times. In a newly created enterprise, the

staffing would come as a. third step—next to planning and organizing—but in a going

enterprise the staffing process is continuous.

Importance of Staffing:

It is of utmost importance for the organization that right kinds of people are employed. They

should be given adequate training so that wastage is minimum. They must also be induced to

show higher productivity and quality by offering them incentives.

In fact, effective performance of the staff function is necessary to realize the following

benefits:

1. Efficient Performance of Other Functions:

Staffing is the key to the efficient performance of other functions of management. If an

organization does not have competent personnel, it can’t perform planning, organization and

control functions properly.

2. Effective Use of Technology and Other Resources:

It is the human factor that is instrumental in the effective utilisation of latest technology,

capital, material, etc. the management can ensure right kinds of personnel by performing the

staffing function.

3. Optimum Utilization of Human Resources:

The wage bill of big concerns is quite high. They also spend money on recruitment, selection,

training and development of employees. In order to get the optimum output from the

personnel, the staffing function should be performed in an efficient manner.

4. Development of Human Capital:

The management is required to determine the manpower requirements well in advance. It has

also to train and develop the existing personnel for career advancement. This will meet the

requirements of the company in future.

5. Motivation of Human Resources:

The behavior of individuals is shaped by many factors such as education level, needs, socio-

cultural factors, etc. that is why, the human aspect of organization has become very important.

The workers can be motivated through financial and non-financial incentives.

6. Building Higher Morale:

Right type of climate should be created for the workers to contribute to the achievement of the

organizational objectives. By performing the staffing function effectively, management can

show the significance it attaches to the personnel working in the enterprise. This will increase

the morale of the employees.

Recruitment (hiring) is a core function of human resource management. It is the first step of
appointment. Recruitment refers to the overall process of attracting, selecting and appointing
suitable candidates for jobs (either permanent or temporary) within an organization.
Recruitment can also refer to processes involved in choosing individuals for unpaid positions,
such as voluntary roles or unpaid trainee roles. Managers, human resource generalists and
recruitment specialists may be tasked with carrying out recruitment, but in some cases public-
sector employment agencies, commercial recruitment agencies, or specialist search
consultancies are used to undertake parts of the process. Internet-based technologies to
support all aspects of recruitment have become widespread.

Selection
Definition: The Selection is the process of choosing the most suitable candidate for the vacant
position in the organization. In other words, selection means weeding out unsuitable applicants
and selecting those individuals with prerequisite qualifications and capabilities to fill the jobs in
the organization.
 Selection process is comprised of several steps:

1. Preliminary Interview
2. Receiving Applications
3. Screening of Applications
4. Employment Tests
5. Interview
6. Reference Checking
7. Medical Examination
8. Final Selection

Placement
After the employee is hired and oriented, he/she must be placed in his/her right job. Placement
is understood as the allocation of people to the job. It is assignment or re-assignment of an
employee to a new or different job. Placement includes initial assignment of new employees
and promotion, transfer or demotion of present employees. The placement is arising out of
promotion, transfer, demotion. Assignment of new employee to a job apparently seems to be
simple task. The employer advertises inviting applications from candidates for a specific post.

Few basic principles should be followed at the time of placement of workers on the job. This is
elaborated below:
1. Man should be placed on the job according to the requirements of the job. The job should
not be adjusted according to the qualifications or requirements of the man. Job first, man next,
should be the principle of the placement.
2. The job should be offered to the person according to his qualification. This should neither the
higher nor the lower than the qualification.
3. The employee should be made conversant with the working conditions prevailing in the
organization and all things relating to the job. He should also be made aware of the penalties if
he commits the wrong.
4. While introducing the job to the new employees, an effort should be made to develop a
sense of loyalty and cooperation in him so that he may realize his responsibility better towards
the job and the organization.
5. The placement should be ready before the joining date of the newly selected person.
Training and Development

Training and development is vital part of the human resource development. It is assuming
ever important role in wake of the advancement of technology which has resulted in ever
increasing competition, rise in customer’s expectation of quality and service and a subsequent
need to lower costs. It is also become more important globally in order to prepare workers for
new jobs. In the current write up, we will focus more on the emerging need of training and
development, its implications upon individuals and the employers.

Noted management author Peter Drucker said that the fastest growing industry would be
training and development as a result of replacement of industrial workers with knowledge
workers. In United States, for example, according to one estimate technology is de-skilling 75 %
of the population. This is true for the developing nations and for those who are on the
threshold of development. In Japan for example, with increasing number of women joining
traditionally male jobs, training is required not only to impart necessary job skills but also for
preparing them for the physically demanding jobs. They are trained in everything from sexual
harassment policies to the necessary job skills.

The need for Training and Development

Before we say that technology is responsible for increased need of training inputs to
employees, it is important to understand that there are other factors too that contribute to the
latter. Training is also necessary for the individual development and progress of the employee,
which motivates him to work for a certain organization apart from just money. We also require
training update employees of the market trends, the change in the employment policies and
other things.

The following are the two biggest factors that contribute to the increased need to training and
development in organizations:

1. Change: The word change encapsulates almost everything. It is one of the biggest
factors that contribute to the need of training and development. There is in fact a direct
relationship between the two. Change leads to the need for training and development
and training and development leads to individual and organizational change, and the
cycle goes on and on. More specifically it is the technology that is driving the need;
changing the way how businesses function, compete and deliver.
2. Development: It is again one the strong reasons for training and development becoming
all the more important. Money is not the sole motivator at work and this is especially
very true for the 21st century. People who work with organizations seek more than just
employment out of their work; they look at holistic development of self. Spirituality and
self awareness for example are gaining momentum world over. People seek happiness
at jobs which may not be possible unless an individual is aware of the self. At ford, for
example, an individual can enrol himself / herself in a course on ‘self awareness’, which
apparently seems inconsequential to ones performance at work but contributes to the
spiritual well being of an individual which is all the more important.
Principles of Directing-

Following are the principles of direction:

1. Harmony of Objectives: Harmonizing the individual’s objectives with the group objectives is
the first principle of directing. Persons join the concern for getting their physiological and
psychological needs satisfied. They are expected by the organization to work in such a manner
to achieve the organizational goals. Individuals also work well only when they feel that their
personal goals will be satisfied. Thus, directing function must first of all resolve the conflict
between the individual’s goals and organizational goals.
2. Unity of Direction: Another important principle of direction is that the orders should be
received by the subordinates from only one superior. In other words, there should not be dual
subordination. Dual subordination brings disorder, confusion, chaos and undermines authority
and leads to instability. The subordinates should report to only one superior.
3. Direct Supervision: It is essential for the managers to have a direct and personal contact with
their subordinates because direction involves motivating the subordinates toward work. Direct
supervision makes the subordinates happy and boosts their morale. It also ensures quick
feedback of necessary information.
4. Appropriate Leadership Style: Leadership is a process of influence exercised on group
members by the leader in the work environment. There is no one universally acceptable
leadership style. No single style is suitable to all situations. The style varies with the situations.
Therefore, a manager should exhibit appropriate leadership style i.e., the style that is suitable
to a given situation.
5. Appropriate Direction Techniques: Direction techniques that are used by the managers
should be appropriate i.e., it should be suitable to superiors, subordinates and the situation so
as to ensure efficiency of direction
6. Use of Informal Organization: Managers should make use of informal groups so that
the formal groups can be strengthened.
7. Use of Motivation Techniques: Managers should develop selective motivation techniques
such as money, pay, status, promotion, etc., So that the productivity and the quality of the
products can be increased. Motivation ensures higher job satisfaction.
8. Follow Up: Directing is a never ending process. It involves continuous supervision, advice,
counseling and assisting the subordinates in the performance. of their jobs. So it requires
continuous feedback which is essential to make necessary modifications in the activities of the
management.
Essence of coordination
An important question that arises in relation to coordination is whether or not it is to be
recognized as the sixth function in the chain of management functions (e.g. planning,
organizing, staffing, directing and controlling). Some management experts (e.g., Fayol, L.A.
Allen, and Ordway Tead) consider coordination to be a separate function of management.
However, modern management experts are of the view that coordination is not a separate
function of management; rather it forms a major part of all the other functions of management.
In other words, management cannot be accomplished without proper coordination and hence
management has to concentrate its efforts on the establishment of coordination.

Modern management experts Koontz and O’Donnell are also the supporters of this line of
thinking, and it is only in this relation that they have stated, “Coordination is the essence of

management.

It means when a manager diligently performs all the management functions, he or she remains

busy in establishing coordination. This fact is highlighted through the following discussion:

(1) Coordination and Planning:

While performing the function of planning, coordination forms the centre or focus of the

thinking of a manager. Planning is undertaken keeping in mind the various activities being

performed by the different departments in an organization.

For example, when a sales manager is making a plan to increase his sales target, he also

consults the production manager, the purchase manager, the finance manager, etc. in order to

avoid any problem that may arise in future. This clearly shows that coordination is very

essential while performing the function of planning.

(2) Coordination and Organizing:

While performing the function of organizing, the main work of the organization is divided into

various sub functions, and the relationships between the various people performing those sub

functions are defined, with the aim of accomplishing all the activities of the business in a

systematic manner.

While performing the function of organizing, the manager has to make efforts to establish

coordination among the various departments as well as the various people working in the same

department.

(3) Coordination and Staffing:

Organizing results in the establishment of various positions in the organization while staffing

breathes life into such positions, i.e., the various positions established during organizing are

filled with people.

(4) Coordination and Directing:

While performing the function of directing, a manager gives due priority to coordination. While

issuing orders and instructions to a subordinate, he has to keep in mind the effect they will

have on other people, and he should make all efforts to avoid any such adverse effect.
(5) Coordination and Controlling:

Controlling is the constant evaluation of progress of work, so that adverse results can be

avoided and corrective action can be taken in time. In the context of coordination, controlling

results in the harmonization of the objectives of the organization, the resources available to

achieve those objectives and the human efforts required.

Controlling- The Basic Control Process
● Controlling: The measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are being accomplished is called as
controlling.
● The Basic Control Process: Control techniques and systems are essentially the same for
controlling cash, office procedures, morale, product quality, and anything else. The basic
control process, wherever it is found and whatever is being controlled, involves three steps:
• Establishing standards
• Measuring performance against these standards, and
• Correcting variations from standards and plans.
• Establishment of Standards: Because plans are the yardsticks against which managers devise
controls, the first step in the control process logically would be to establish plans. However,
since plans vary in detail and complexity, and since managers cannot usually watch everything,
special standards are established. Standards are simply criteria of performance. They are the
selected points in an entire planning program at which measures of performance are made so
that managers can receive signals about how things are going and thus do not have to watch
every step in the execution of plans.
There are many kinds of standards. Among the best are verifiable goals or objectives, as
suggested in the discussion of managing by objectives. You will learn more about standards
later, especially those that point out deviations at critical points.
• Measurement of Performance: Although such measurement is not always practicable, the
measurement of performance against standards should ideally be done on a forward-looking
basis so that deviations may be detected in advance of their occurrence and avoided by
appropriate actions. The alert, forward-looking manager can sometimes predict departures
from standards. In the absence of such ability, however, deviations should be disclosed as early
as possible.
• Correction of Deviations: Standards should reflect the various positions in an organization
structure. If performance is measured accordingly, it is easier to correct deviations. Managers
know exactly where, in the assignment of individual or groups duties, the corrective measures
must be applied.
Correction of deviations is the point at which control can be seen as a part of whole system of
management and can be related to the other managerial functions. Managers may correct
deviations by redrawing their plans or by modifying their goals. (This is an exercise of the
principle of navigational change.) Or they may correct deviations by exercising their organizing
function through reassignment or clarification of duties. They may correct, also, by additional
staffing, by better selection and training of subordinates, or by that ultimate restaffing
measure-firing. Another way is to correct through better leading-fuller explanation of the job or
more effective leadership.

Techniques of control

 Traditional techniques

 Modern technique

What is traditional technique ?

These techniques of control are being used by managers since long time & there fore

Known as traditional techniques.

TRADITIONAL TECHNIQUES

1. Personal observation

2. Budgeting

3. Break-even analysis

4. Financial statement

5. Statistical data & report

6. Quality control

PERSONAL OBSERVATION

 This is the most traditional method of control.

 It helps managers to collect first hand information.

 It also creates a psychological pressure on the employees to perform well as they are
aware that they are being observed personally on their job.

 However it is very time consuming, & not suitable for all kinds of jobs.

BUDGETING.

 Meaning-
  A budget is a statement which reflects future incomes, expenditures & profits of the
firm.

 Benefit of budgeting-

 Standards of performance

 Planning

 Predicting the future

 Financial planning

BREAK EVEN ANALYSIS

 It deals with the study of the relationship between costs, volume, & profit.

 It determines the probable profit and losses at different levels of activity.

 The sales volume at which there is no profit, no loss is known as breakeven point.

 It can be calculated as ,

 Breakeven point=fixed cost/selling price per unit – variable cost per unit.

FINANCIAL STATEMENT

 Financial statements show financial position of a firm over a period of time, generally
one year.

 These are prepared along with last year statements, so that firm can compare its
present performance with last year’s performance & improve its future performance.

 It offers information on ,

1. Liquidity

2. Financial strength

3. profitability

STATISTICAL DATA & REPORT

 Statistical analysis in the form of averages, percentages, ratios, etc.

  Data can be used for diagrammatic representations like histograms, pie chart, bar
graphs..etc.

 A Report is a statement that represents data in the form of information for carrying out
the controlling function.

QUALITY CONTROL

 Quality control uses operational techniques and activities to sustain quality of the
product or service to satisfy customer needs

 It is the traditional way to manage quality

 There are three stages during the process when inspection is performed-

1. When raw material is received.

2. When raw material goes through the production process

3. When products are finished-testing takes place before products are dispatched to
customers.

Modern Techniques of Control |

Following are the modern techniques of control which are commonly used present:
I. Return on Investment (ROI):

Profits are the measure of overall efficiency of a business to the capital employed in business

efficiency is an important control device. If the rate of return on investment (shareholders

funds) is quite satisfactory, it will be taken as a yard-stick of good performance.

II. Programme Evaluation and Review Technique (PERT):

Programme evaluation and review technique (PERT) was first developed as a management tool

for co-ordination and early completion of Polaris Ballistic Missile Project in USA resulting in a

reduction of 30 per cent time in project execution. A contemporary of PERT is CPM (Critical

Path Method) and was developed in connection with maintenance and construction work.
III. Management Information System (MIS):

Management information system (MIS) is an approach of providing timely, adequate and

accurate information to the right person in the organization which helps in taking right

decisions.

IV. Management Audit:

Management audit is an investigation by an independent organization to find out whether the

management is carried performance out most effectively or not. In case there are drawbacks at

any level then recommendations should be given to improve managerial efficiency

Management by exception (MBE) is a practice where only significant deviations from a budget
or plan are brought to the attention of management. The idea behind it is that management's
attention will be focused only on those areas in need of action. When they are notified of
variance, managers can hone in on that specific issue and let staff handle everything else. If
nothing is brought up, then management can assume everything is going according to plan.
This model is similar to the vital signs monitoring systems in hospital critical care units. When
one of the patient's vital signs goes outside the range programmed into the machine, an alarm
sounds and staff runs to the rescue. If the machine is quiet, it's assumed that the patient is
stable, and they will receive only regular staff attention.
 UNIT-3 (MC&OB)

Fundamentals of individual behavior

Individual behavior can be defined as a mix of responses to external and internal stimuli. It is the way a person
reacts in different situations and the way someone expresses different emotions like anger, happiness, love, etc.
To get a brief idea about the individual behavior let us learn about the individual behavior framework and other
key elements related to it.

Individual Behavior Framework

On the basis of these elements, psychologist Kurt Lewin stated the Field theory and outlined the behavior
framework. This psychological theory studies the patterns of interaction between an individual and the
environment. The theory is expressed using the formula
B = F (P, E)
Where, B – Behavior, F - Behavior Function, P – Person, and E - Environment around the person.
Say for example, a well payed person who loses his job in recession may behave differently when unemployed.

Personality refers to individual differences in characteristic patterns of thinking, feeling and behaving. The study
of personality focuses on two broad areas: One is understanding individual differences in
particular personality characteristics, such as sociability or irritability.
 The four basic types of attitudes and behaviours that are positive, negative and neutral.

 Positive Attitude: This is one type of attitude in organizational behaviour. ...

 Negative Attitude: A negative attitude is something that every person should avoid. ...
 Neutral Attitude: ...
 Sikken Attitude:
Attitude components:
Meaning & Types of Group Behavior:
 Herzberg’s Motivation Theory model, or Two Factor Theory, argues that there are two factors that an
organization can adjust to influence motivation in the workplace.
These factors are:
 Motivators: Which can encourage employees to work harder?
 Hygiene factors: These won’t encourage employees to work harder but they will cause them to become
unmotivated if they are not present.
Victor Vroom's Expectancy Theory states that when an employee is completing a task they are
influenced by their view on:

1. The probability of completing the task and

2. The possible outcome or consequence of completing the task.

Expectancy Theory states that individuals choose actions that they think will give them a reward or
reduce the likelihood of pain. Under this theory the ultimate goal is not important to the individual;
what matters to the individual is the impact that achieving the goal will have on them.

The Diagram below illustrates the 3 components of Vroom's Expectancy Theory; Expectancy, Valency
and Instrumentality
Factor's Influencing an Employee's Opinion

Under Vroom's Expectancy Theory an individual's opinion is influenced by the following factors:

1. Expectancy: Does the individual believe that they can achieve the task?
2. Valence: Does the individual believe that completing the task will benefit them or cause detriment?
3. Instrumentality: What is the probability of completing the task leading to an outcome desired by the
individual?

Expectancy (Subjective Probability)

Expectancy is the individual’s belief about whether they can achieve the task. This view will be influenced by a
number of things including:

 The type of skills needed for the task,

 Support expectations of co-workers and line managers,

 Type of equipment/materials and Availability of pertinent information.

 UNIT-5

Leadership

Leadership is the art of motivating a group of people to act toward achieving a common goal. In a
business setting, this can mean directing workers and colleagues with a strategy to meet the company's
needs.

11 Types of Leadership

1. Authentic Leadership
The recent authentic Leadership approach seems to have evolved in the light of major scams and
scandals, a blind race for profits and personal gains, and a short term perspective, involving the ceos of
top organizations.

2. Autocratic Leadership
Autocratic leadership allows the autocratic leaders to take the ultimate control of taking decisions
without consulting others. An autocratic leader possesses a high level of power and authority and
imposes its will on its employees.

3. Laissez-Faire Leadership
Under this type of leadership, a laissez-faire leader does not exercise control over its employees directly.
Since employees are highly experienced and need little supervision, a laissez-faire leader fails to provide
continuous feedback to employees under his or her supervision.

4. Transnational Leadership
Informational leadership highlights a leader as a facilitator of change occurring when one or more
persons engage with others in such a way that leaders and followers raise one another to higher levels
of motivation and morality.

5. Transnational Leadership
Transnational Leadership contrast involves management –by- exception, intervention, and punishing
those who made errors. This can lead to negative emotions and performance on the part of the
subordinates. This approach would also require close monitoring of the subordinates, who would surely
not like it, and if they felt constrained, their performance might not be best.

6. Bureaucratic Leadership
Under bureaucratic leadership, a leader believes in structured procedures and ensure that his or her
employees follow procedures exactly. This type of leadership leaves no space to explore new ways to
solve issues and in fact work by book.

7. Charismatic Leadership
The charismatic leader is visionary and works by infusing a high amount of energy and enthusiasm in his
team. He sets a role model for his team and drives others to show a high level of performance.

8. Participative Leadership
 Also known as the democratic leadership style, participative leadership consults employees and
seriously considers their ideas when making decisions. When a company makes changes within the
organization, the participative leadership style helps employees accept changes easily because they had
given a big role in the process.

9. Directive Leadership
Directive Leadership provides guidance about what should be done and how to do it, scheduling work,
and maintaining standards of performance.

10. Supportive Leadership

Supportive Leadership show concern for the needs of the employees, the leader is friendly and
approachable. Supportive Leadership would be more suitable for highly structured tasks, under
bureaucratic and formal authority relationship.
11. Achievement Oriented Leadership
Achievement-oriented Leadership encourages employees to perform at their highest level by setting
challenging goals, emphasizing excellence, and demonstrating confidence in employees’
abilities. Achievement Oriented Leadership is largely suitable for unstructured tasks, where the
subordinate need for achievement is high.

Types of Leadership Styles

1. Democratic Leadership

2. Autocratic Leadership

3. Laissez-Faire Leadership

4. Strategic Leadership

5. Transformational Leadership

6. Transactional Leadership

7. Coach-Style Leadership

8. Bureaucratic Leadership
Strategic Leadership

Commonly Effective

Strategic leaders sit at the intersection between a company's main operations and its growth
opportunities. He or she accepts the burden of executive interests while ensuring that current working
conditions remain stable for everyone else.

Transformational Leadership

Sometimes Effective

Transformational leadership is always "transforming" and improving upon the company's conventions.
Employees might have a basic set of tasks and goals that they complete every week or month, but the
leader is constantly pushing them outside of their comfort zone.

Transactional Leadership

Sometimes Effective

Transactional leaders are fairly common today. These managers reward their employees for precisely
the work they do. A marketing team that receives a scheduled bonus for helping generate a certain
number of leads by the end of the quarter is a common example of transactional leadership.

Coach-Style Leadership

Commonly Effective

Similarly to a sports team's coach, this leader focuses on identifying and nurturing the individual
strengths of each member on his or her team. They also focus on strategies that will enable their team
work better together. This style offers strong similarities to strategic and democratic leadership,
but puts more emphasis on the growth and success of individual employees.

Comparison. Leadership style defines how leaders direct the work of a group of individuals. Leadership
style refers to the actions leaders take to gather input from subordinates, make decisions, solve
problems and review results. In contrast, leadership traits describe the personality types of
successful leaders.
Qualities of an effective leader

Share their vision

Lead by example

Demonstrate integrity

Communicate effectively

Make hard decisions

Recognise success

Empower others

Motivate and inspire

What are Leadership Traits?

Leadership traits refer to personal qualities that define effective leaders. Leadership refers to the ability
of an individual or an organization to guide individuals, teams, or organizations toward the fulfillment of
goals and objectives. It plays an important function in management, as it helps maximize efficiency and
achieve strategic and organizational goals. Leaders help motivate others, provide guidance, build
morale, improve the work environment, and initiate action.

List of Effective Leadership Traits

A common misconception is that individuals are just naturally gifted with leadership skills. The truth is
that leadership traits, like other skills, can be acquired with time and practice. Below are seven traits of
an effective leader:

1. Effective Communicators

Leaders are excellent communicators, able to clearly and concisely explain problems and solutions.
Leaders know when to talk and when to listen. In addition, leaders are able to communicate on different
levels: one-on-one, via phone, email, etc.
2. Accountable and Responsible

Leaders hold themselves accountable and take responsibility for any mistakes. Leaders support and
encourage individuality while abiding by organizational structure, rules, and policies that need to be
followed.

3. Long-term Thinkers

Leaders are visionaries. This is evidenced by the leadership trait of being able to plan for the future
through concrete and quantifiable goals. They understand the need for continuous change and are open
to trying new approaches to solve problems or improve processes.

4. Self-motivated

Leaders are self-motivated and are able to keep going and attain goals despite setbacks. In addition,
good leaders try their best to exceed, not just meet, expectations.

5. Confident

Virtually all good leaders share the leadership trait of confidence. They are able to make tough decisions
and lead with authority. By being confident, leaders are able to reassure and inspire others, establish
open communications, and encourage teamwork.

6. People-oriented

Leaders are typically people-oriented and team players. They’re able to foster a team culture, involve
others in decision-making, and show concern for each team member. By being people-oriented, leaders
are able to energize and motivate others. By making each individual feel important and vital to the
team’s success, they secure the best efforts from each member of the team.

7. Emotionally Stable

Leaders exercise good control and regulation over their own behavior and are able to tolerate
frustration and stress. Leaders are able to cope with changes in an environment without having an
intense emotional reaction.

Trait Theory of Leadership

The trait model of leadership is based on the characteristics of many leaders - both successful and
unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits are then
compared to those of potential leaders to assess their likelihood of success or failure.
Among the core traits identified are:

 Achievement drive: High level of effort, high levels of ambition, energy and initiative
 Leadership motivation: an intense desire to lead others to reach shared goals
 Honesty and integrity: trustworthy, reliable, and open
 Self-confidence: Belief in one’s self, ideas, and ability
 Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and
conceptually skilled
 Knowledge of business: Knowledge of industry and other technical matters
 Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.
 Others: charisma, creativity and flexibility

Hersey and Blanchard Situational Leadership Model

Hersey and Blanchard developed a theory (Hersey and Blanchard Situational Leadership Theory) that
suggests that the most effective leadership style is affected by the circumstances leaders find
themselves in. They argue that a leader’s ability to lead depends upon certain situational factors. By
understanding, recognizing and adapting to these factors, leaders will be able to influence their
surroundings and followers much more successfully than if these factors are ignored. More
specifically, Hersey and Blanchard focused a great part of their research on the characteristics of
followers in determining appropriate leadership behaviours. They found that leaders would have to
modify their leadership style as their followers changed in terms of their ability (Task Readiness) and
willingness (Psychological Readiness) to perform the required task. A leader’s relationship with
followers is therefore likely to go through different stages as these abilities and willingness can change
over time. This article will go into the four leadership styles (Telling, Selling,
Participating and Delegating) Hersey and Blanchard came up with in order to better deal with these
different stages of followers.
building and activities you can use.

Team building is the process of turning a group of individual contributing employees into a
cohesive team—a group of people organized to work together to meet the needs of their customers by
accomplishing their purpose and goals. Learn more about effective methods for team.

Psychologist Bruce Tuckman described how teams move through stages known as forming, storming,
norming, and performing, and adjourning (or mourning). You can use Tuckman's model to help
your team to perform better. ... Remember, teams can slip back a stage, too.
Organizational change refers to the actions in which a company or business alters a major component
of its organization, such as its culture, the underlying technologies or infrastructure it uses to operate,
or its internal processes.
Kurt Lewin: Any successful organizational change follows three steps:

Unfreezing –>Movement–>Refreezing

Stage 1: Unfreezing Static Organization Structure and Implement Change

Unfreezing is to move from status quo, which is called equilibrium, to something like organizational
chaos. Employees like the equilibrium because they have a sense of comfort, they know what to expect,
and there is no change happening. When the unfreezing process happens change is making the
organization turbulent and employees can become resistant. This is the most complicated step, to get
employees to unfreeze behavior and accept change.
Unfreezing happens in three ways:

1. Driving forces: Behaviors that contradict status quo is increased. These behaviors are the behaviors
that help employees learn about the change and the new processes.

2. Restraining forces: These behaviors support the status quo and contradict change. The restraining
forces need to be decreased.

3. Driving forces and restraining forces can be mixed together to illustrate that change within the
organization will work and is good.

Stage 2: Movement through Change

Employees may be confused at the Movement stage of Lewin’s Model. This confusion stems from
having to learn new habits, skills, and processes because change is being implemented.

At the Movement stage managers need to be good leaders and help support their
employees. Managers need to support employees if they want the change they are working for to stay
within the organization long term. Managers need to know that change must happen fast within an
organization to be successfully implemented.

Stage 3: Refreeze The Organization

The Refreezing stage helps reestablish stability and equilibrium with the new change. The employees
now have the new skills, knowledge, and understand why the change was implemented within the
organization. This stage helps employees go back to their normal and stable environment where they
are comfortable.

Creating Culture Change