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PRINCIPLES OF MANAGEMENT

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PRINCIPLES OF MANAGEMENT
OBJECTIVE: This material attempts to give you an understanding of the concept Management approaches. Planning : Planning – Nature and importance – forms – strategic and Tactical – Type of plans – Steps I Planning, Decision – Making – Type of Decision – Decision Making process – Rationality in decision – making. Organization: Organization – Procts of organizing – Organization structure departmentalization – Span of Management – Delegation – Authority, Responsibility, Accountability – Decentralization. Direction : Direction – Principles – elements – Motivation – Maslow, Hexrzberg, Varoom models – Communication : Process – Forms – Network – Barriers – Measuring effectiveness – Co-ordination. Leadership : Leadership theories – Style – Managerial Grid – Control – Controlling and Planning – Types of control – Concurrent and forward control – Principles of control – Areas of control – Control techniques. REFERENCES: 1. 2. 3. 4. 5. 6. 7. Principles of Management Principles of Management Management Practice of Management Management Theory and Practice Management and Organisation Management Process : : : : : : : Koontz and O’Donnel Terry and Franklin James A.F. Stoner Peter F Drucker Ernst Dale Louis A. Allen Neumann

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CONTENTS
Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Lessons Introduction to Management Planning Organisation Direction Motivation Communication Leadership Co-ordination Control System and Process. Pg.No. 4 14 21 33 35 41 52 57 59

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It is an profession which involves specialized training and is governed by an ethical code. to command to co-ordinate and control. 4. It is an art of getting the work done through and with people in formally organized groups. The concept management may be used as Collective noun Field of study Function Board of directors or Executive Committee A branch of knowledge including the principles. techniques. It coordinates human factor and physical resources for the accomplishment of group objectives. It is an art of getting things done through and with people. DEFINITIONS “Management is an art of knowing what do you want to do and then seeing that is is done in the best and cheapest way. to plan. Art and science of decision making and leadership. functions and problem management. co-ordination and control In a more important sense. organizing. TAYLOR “To manage is to forecast.” . It connotes different meaning indifferent contexts. to organize. management is a vital function concerned wth all aspects of the working of an enterprise. W. 3. Here the management is considered as a body of knowledge consisting of several concepts. 5. HENRY FAYOL “Management is a distinct process consisting of planning. by balancing and integration (or) by innovation and adaptation 4 .” KOONTZ ANDO’DONNEL FEATURES OF MANAGEMENT The important characteristics of management as a business function are: 1. TERRY “Management is the creation and maintenance of internal environment is an enterprise where individuals working in groups can perform efficiently and effectively toward the attainment of group goals. principles. techniques and theories which can be adopted in any group Endeavour. organizing direction. It is a universal process for achieving results.LESSON – 1 INTRODUCTION TO MANAGEMENT MANAGEMENT Management is the process of designing and maintaining an environment in which individuals working together in groups to accomplish selected aims efficiently. actuating and controlling performance t determine and accomplish the objectives by the use of people and resources. Functions to be performed to attain the organizational objectives-planning.GEORGE R.” -F. 2.

Following limitations of this approach are quite obvious. Since management involves getting things done with and through people. 1. The intention of studying experience is to draw generalizations and to develop means to teaching experiences to other practitioners and students. that is. Attempts are made to duplicate successful experiences while avoiding unsuccessful ones. HUMAN BEHAVIOR APPROACH The human behavior approach is the outcome of the thoughts developed by behavioral scientists who look at the organization as collectivity of people. To increase the efficiency 2. 5 .IMPORTANCE OF MANAGEMENT STUDY The need and significance of management functions in the modern organizations are given below. Dynamism : This body of knowledge is going on changing continuously with respect changes that are taking place in the organizational environment. basing its generalizations on cases and past experiences has not contributed anything fundamental to the development of management as discipline because of obvious contradictions in various management experiences. 2. According to this approach. As such. learning through the experience of others. 3. This empirical approach. it is also known as case approach or management experience approach. This approach also helps in classroom. This approach offers the most conventional way of acquiring skills in management. to give a definite shape to management function. This approach suggestion how the knowledge of human behavior can be used in making people more effective in the organization. to attain social goals by effective utilization of resources. This approach can be divided into groups interpersonal behavior approach and group behavior approach. management is considered a study of manager in practice. the study on management must revolve round human behavior. APPROACHES TO THE STUDY OF MANAGEMENT A brief discussion about different approaches of management is given below. Regularity of human nature : It helps to shape the human behaviour in the work environment. situations for developing diagnostic and analytical skills in management students. 4. Universality : It has universal application in all kinds/nature and size of business activities. to improve research in management. NATURE OF MANAGEMENT FUNCTIONS 1. Relativity : It embraces all business functions at different levels. 4. EMPIRICAL APPROACH The empirical school of management bases its methods on a close study of past managerial experiences and management cases. 3.

SOCIAL TECHNICAL SYSTEMS APPROACH This approach believes that to solve organizational problems. adequate consideration should be given to technology as well as informal interactions of people. for achieves organization goals. 6 . however. the organization is essentially a culture system composed of people who work in cooperation. According to this approach. The vital aspect cannot be denied but management is more than mere decision making. have provided more exactness in solving managerial problems. The real pioneer of social system approach is Vilfred Pareto. time series analysis. It is true that manage can be better placed by understanding human behavior but equating management with human behavior is untenable. games theory. Therefore. spreads the boundary and application of management beyond the true concept of organizations. The manager is a decision maker and organization is a decision-making unit. The social system approach has real significance to the practicing managers in the sense that all managers operate n a social system and the organization is likely to succeed if the demands of the society in which it operates as fully recognized. this approach is more suitable for managing the problems at the shop floor leave rather thandandling the total management problems. this approach is not free from limitations. SOCIAL SYSTEM APPROACH Closely resembling the human behavior approach and often confused intermixed with it is the social system approach. As such. emulation. it is very difficult to call it a separate school of management because it does not provide the answer for the total managerial problems. This has contributed significantly in developing orderly thinking in management which has provided exactness in management discipline. DECISION THEORY APPROACH The major emphasis of this approach is that decision making is the job of every manager. it is not enough to look at the cooperative social systems alone but technical systems (methods and machines) and how it affects and is affected by social systems and a technical system. linear programming. Various mathematical tools like sampling. Management science approach is a fast developing one in analyzing and understanding management. a co-operative system of management can be developed only understanding the behavior of people in groups. There is something more than mere human relations management. The approach. Human behavior approach provides only the diagnosis for human problems but problems have to be solved by taking many more factors which are not explained by this approach. waiting line theory etc. Moreover. the basic problem in managing is to make rational decision. The real pattern of behavior in the organization is determined by the interaction of the two. MANAGEMENT SCIENCE APPROACH Management science approach also known as mathematical or quantitative measurement approach. However. Thus any change in technology must be viewed in subsequent change in social interactions at the workplace.However. The major contribution of this approach is that while analyzing management problem of getting things done by people. The approach demonstrates how managers can discharge their functions effectively. a sociologist. The approach contributes to the sharpening of managerial tools specially for making suitable decisions in the organization. Decision-making is vital in every school of management. visualizes management as a logical entity. the action of which can be expressed in terms of mathematical symbol relationships and measurement data. However. His ideas were later developed by Chest Bernard who has really developed the concept of social systems approach management.

System approach of management provides and integrated approach of managing. System approach of management lacks universality and its precepts cannot be applied to all organizations. Inspite of the various contributions. starting late 1950. It is often suggested that system approach is too abstract to be of much use to practicing managers. It provides a framework through which organization – environment interaction can be analyzed and facilitates decision-making. System approach of management provides an integrated approach of managing. 2. The implications of the contingency approach are given below. It merely indicate that various parts of the organization are interrelated. since the system within which managers make decisions can be provided as a more explicit framework decision-making is easier to handle. CONTINGENCY OR SITUATIONAL APPROACH The basic idea of contingency approach is that there cannot be a particular management action which will be suitable for all situations. 3. Contingency approach. This considers management in its totality.many managerial activities are not really capable of being quantified because of involvement of human being who are governed by many irrational factors also. Complex : analysis of a Determination of situation in which managerial action is to be taken involves large number of variables with multifarious dimensions. Contingency approach tries to fill this gap by suggesting what should be done in response to an event in the environment. 7 . It merely suggests what managers can do in given situation. It is an integrating approach which considers management in its totality based on empirical data. on the other hand suggests an active interrelationship between the variables in a situation and the managerial actions devised. Reactive not Proactive: Contingency approach is basically reactive in nature. it ha assumed considerable importance in analyzing the phenomena of management. contingency approach has not been acknowledged as a unified theory of management because it suffers from some limitations. and appropriate action is one which is designed on the basis of external environment and internal states and needs. 1. The implication of systems approach are given below. Inadequate Literature Contingency approach suffers from inadequacy of literature. This considers management in its totality. It emphasizes the multivariate nature of organizations and attempts tounderstand how organizations operate under varying conditions. It is the sophisticated approach to understand the increasing complexity of organizations. System approach possesses the conceptual level of managerial analysis much higher than any other approach. The basic idea of systems approach is that any object must rely on a method of analysis involving simultaneous variations of mutually dependent variables. SYSTEMS APPROACH This approach is of comparatively recent origin. Rather. The approach is directed towards suggesting organizational designs and managerial actins most appropriate to specific situations.

3. However. commonly known as management process. This approach views the management as a social process comprising a series of actions leading to the accomplishment of certain objectives. 6. directing and controlling. and devising a procedure. It offers practical suggestions by providing classification of managerial functions at first level into planning. various management functions. Another criticism against operational approach is that various terms used in this approach are not commonly shared. objective or goal is attained by performing certain fundamental management functions which can be grouped under basic heads. As such this approach is also known as management process approach. 4. However the operational approach has been criticized on the following grounds. The analysis of various approaches suggests that no approach is fully free from shortcomings. namely 1. It implies considering and arranging in advance a projected course of action. The manager must be sure of the objectives he desires to attain or of the end result to be ensured. staffing. It can also be definedas determining what is to be done.OPERATIONAL APPROACH This approach attempts to draw together the pertinent knowledge of management by relating it to the functions of managers. FUNCTIONS OF MANAGEMENT The basic aim of managing is to achieve certain objectives or goals. The basic tenets of operational management that is . 5. 3. 1. organizing. 7. The approach includes the entire scope of management and recognizes it as a separate discipline. method and time table to do it. The precise and the complete statement in this regard would make the objectives clear and understood by all concerned who have ot divert their activities towards its attainment. Planning Organizing Staffing Motivating Directing Coordinating Controlling PLANNING It means “Preparing a sketch or an outline of any proposed plan of actions”. are not universally accepted. 3. Planning is a general activity. It is a necessary part of all operations of an enterprise. making the decisions to do it. Operational approach offers a broad. easy to understand conceptual framework of management. a positive sign is emerging in the form of convergence of various approaches. The significance of operations approach is given below. The desired result. It helps the managers to put their knowledge to use. and for the 8 . 2. This approach suggests that management is a universal phenomenon irrespective of the type of organizations or levels of an organization. The convergence is provided by operational approach as compared to any other approach. 2. 2. Operational approach provides useful concepts for practicing managers. 1.

At this stage. Sales 3. section or unit being given with the authority to perform those tasks. the idea takes a definite shape with a due regard to the ordinary and immediate circumstances facing the enterprise. delegating the appropriate authority to them to discharge the respective responsibilities and establishing structural relationships to enable Co-ordination of the individual efforts towards accomplishment of the enterprise objectives. Generally. STAFFING It has been defined as manning and keeping manned the positions provided by the organization structure. Establishment of effective communication skills. In this sense. First it involves mental formulations of an idea of what is desired to be achieved. Evaluation of employees performance. Thus staffing involves four things: Assessment of personnel needs of the enterprise and selection and training of employees. identifiable units of tasks are put under the charge of a department. Sales manager plans his sales campaign The purchasing Manager plans his purchasing and transporting operations The production Manager plans his production programs. Thus planning involves two aspects. This definition is in the context of attainment of the goals and objectives of an undertaking. Organising may be defined as arranging a number of complex tasks into manageable units and defining the formal relationship among the people who are assigned the various units of tasks. . Determination of employees remuneration. Personnel After classification and analysis of functions to be performed by each department. For eg. Thus basically organization is concerned with grouping the activities required to attain the planned objectives. For eg. ORGANISATION To organize means to put into working order and arrange in a system. The main objective of organization is to establish well defined relationships as between individuals and groups of individuals and between the activities performed by them. defining responsibilities of the people in the organization. it remains at the thinking level and is based on forecasts and estimates.operations of each of the departments and sections. Secondly it determines the mode of action to be pursued to achieve what has been thought up. The head of that department. Finance and 4. Business activities in an industrial concern may be grouped under : 1. It involves forecast of future conditions and an estimate of how the proposed plans would be affected by them. an organization is an organized body or persons. section or division. Production 2. Upto this. Planning is an exercise in forecasting and decision making. persons possessing requisite qualifications and experience may be appointed as head of each of these departments. Such persons should also be given proper authority to discharge their functions efficiently. 9 . It stimulates people to action and also determines their mode of action.

DIRECTING To direct means to guide and supervise any action or conduct. Thus to make the organization click. Exercising supervision over the work done by subordinates to ensure tat it is n conformity with aims and objectives of the enterprise. executives have the authority to force their subordinates to comply with their directives.Staffing is a difficult managerial function. Direction function involves 1. Issuing orders and instructions to subordinated. For securing whole-hearted compliance from subordinated. planning. ii. training. be may be thrown out or punished in some other manner. so that plans of all departments are integrated into a master plan. The process of direction comprises of the following elements viz. But this a wrong view of the enterprise entire process of management. Guiding. Co-ordination must be sought from the very first step. From all accounts. namely. 2. i. This in fact is of very essence of management the art and process of getting things done by others. On any case. it becomes necessary to direct one’s subordinates in a manner that they become effective instruments in the realization of enterprise goods. iv. Leadership Communication Motivation and Supervision A detailed discussion about these aspects is given in the subsequent chapters. the function of direction assumes considerable significance. CO-ORDINATION Some authorities emphasis co-ordination as a separate function of Management. issuing the adequate co-ordination. with strong trade unions and a number of labour laws to protect the worker. No doubt. Finally the controlling aspect also indicates further co-ordination is required resulting in improvements and fresh plans. 10 . We have seen that in organisatin executives assign responsibilities and duties to their subordinates and delegate to them with requisite authority to perform the assigned responsibilities of duties. 3. In case any subordinates faisl or refuses to comply. iii. the function of directions is very important. it would not be wise to demand compliance from one’s subordinated. This approach has not been adopted here because it is felt that co-ordination is emphasized in each of the functions of management process. energizing and leading the subordinates to perform the work methodically. because it is concerned with selection of properly qualified and mentally well-adjusted persons and their retention in the enterprise as a contented and motivated work force. Similarly organizing of people into groups and work into activities involves adequate co-ordination. It can also be secured through proper motivation of the workers towards organized efforts in terms of organizational objectives and personal objectives of the employees through an integration of such objectives. It implies guidance or instructions about what to do and how to do it.

” In an organizational set up. “Management is the function in the industry concerned in the execution of policy within the limits setup by the administration and the employment of the organization for the particular object set before it”. The manager’s goal of attainment of enterprise objectives in the more efficient manner can be accomplished only when the people in the enterprise work to the best of their ability in the spirit of cooperation and zeal. 3. Management is primarly concerned with carrying out of the broad policies laid down by the administration”. Thus the above functions are said to be the important functions of Management. Human factor in industry has endless capacity for work provided planning and resources are made available to it. William sprigeal distinguishes “Administration as the determinate function and “management” as the executive function. 2. The essence of this concept is in determining in whether the activity is achieving the desire results. The essence of management is highlighted by the definition given by KOONTZ and O’ DONEL and by DONALD CLAGH. This is what control is all about. the co-ordination of finance production and distribution. However these two terms are different from each other. Administration is the function in the industry concerned in the determination of corporate policy. control is any process that guides activity towards some pre-determined goal. The third requirement of control is taking corrective action as soon as deviation from the plan is discovered. ADMINISTRATION AND MANAGEMENT The two terms administration and management are being used interchangeably for all practical purposes. Pre-requisites of control: 1. it must be based on a plan. For control to be effective and fruitful. Oliver Sheldon summaries the distinction as follows. The later describe management a the art and science of decision making and leadership. It every Manager’s responsibility to control the performance of work and workers places under his charge. The second requirement of control to measurement of the results of actual operations. Thus the administration is concerned with the thinking function and management with doing function. Art of getting things done through people and with people. there must be measurement of actual performance to ascertain deviations. Control is possible only where is there is a plan according to which actual performance is intended to proceed. Then on the basis of information received from the operational level. Fundamentally. 11 .CONTROL Controlling can be defined as “comparing results with plans and taking corrective actin when results deviate from plans. the settlement of complaints of the organization and ultimate control of executive”.

In this sense management is certainly regarded as science as it has also develop in to a systemized knowledge regarding a particular phenomenon. predict situations that would not come about without the deliberate effort. Professional association : An occupation which claims to be profession should have an association. MANAGEMENT IS A SCIENCE Science has been defined as “body of systemized knowledge accumulated and accepted with respect to the under standing of general tools concerning particular phenomenon subject or object of study.’ The emphasis is on applying skills with knowledge and accomplishing an end through deliberate effort. the purpose of which is to supply skilled service or advice to others for the definite fee or salary. only the law graduates can enter the profession of legal practice. 4. MANAGEMENT AS PROFESSION Profession is defined as an occupation based upon the specialized intellectual study and training. 3. managerial function. to secure them.MANAGEMENT : AN ART OR SCIENCE MANAGEMENT AN ART According to G. TERRY. 12 . 2. namely. CHARACTERISTICS OF PROFESSION 1. In management also. Ethical code : For every profession some ethical standards are provided and every individual of the profession is expected to maintain conformity with these standards. Art is “Bringing about a desired result through the application of will in any activity is called as an art. It is absolutely necessary that it should have codified principles and techniques that explains certain truth with respect to basic phenomenon. code of conduct has been formulated to suggest the behavioral pattern for professional managers. Existence of knowledge : Profession emerges from the establishment of fact that there is a body of knowledge which cannot started around but has to be studied for being a successful professional. results. Thus the function of the art is accomplishing concrete ends efforts. Acquisition of knowledge : An individual can enter profession only after acquiring knowledge and skills through formal training for example. However manager do not have single unified professional group like Indian medical council for medical practitioners from this new management cannot be termed as trade profession.

5. It earns but by the amount of social service it provides. The success of any profession is measured not in terms of money. 13 . So management positions should be held by persons who have professional skill and adequate training. Once organization grows beyond certain size. changes in the nature of management process demands that ownership and management should be divorced. Service motive: It is essential because the monetary value of professional service cannot be measured easily in absence of market mechanism except the competition among the professionals themselves. Similarly contributions of management cannot be measured in terms of money alone because without integrating effort of management. resources worth millions of rupees may be useless.

To insure against business failure. .It leads to increase in efficiency. when to do it. . procedures IMPORTANCE OF PLANNING The significance of planning function could be indentified from the follows To tackle increasing complexity in modern business. To meet the changing economic and political situations. foresight. It bridges the gap form where we are. .” .It is pervasive – prevailing in all activities . planning has certain features as given below. how to do it.KOONTZ & O’DONNEL “Planning is the thinking process.LESSON – 2 PLANNING MEANING It means determining what is to be done. policies. . to where we want to go.Accomplishment of enterprise objectives. . how. who is to do it.ALFORD & BEATTY FEATURES As a process.Primacy of planning – Prime .It is all embracing. DEFINITION “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization to achieve desire results. 14 . It lays down and object to pursuit and chalks out a specific course of action to achieve it. the organized.” . . It is the first step in the management process concerned with establishment of objectives and goals to be attained in the future in the light of an analysis of present limitations for attaining such goals with a views to their removal or reduction.” GEORGE TERRY “Planning is deciding advance what to do. when and by whom it is to be done.It is an integrated process consisting of objectives. To face increasing competition. anticipation and designing the course of action and programmes for attaining such predetermined goals. It makes it possible for things to occur which would not otherwise happen. To provide for complex technological changes.“Choosing” is at the root of planning. the vision based on facts and experience that is required for intelligent action. To bring greater economy.It s the thinking process. To exercise effective control.

project and activity planning. Limitations of planning The effectiveness of planning process may be affected on the following reasos 1.GEORGE TERRY Factors involved in decision making : Tangible factors: Profits. Rigidity 3. . DECISION MAKING “It is ht process selection an alternative from two or more alternatives to determine an opinion or a course of action.Aid to co-ordination and control . Man-power development. Business is a dynamic activity and hence plan May not be suitable in all situations. Uncertainty 2.Aid to foreseeing the future. prestige. Machine hours. planning may be Long Ranging planning Short Range planning 5 – 10 years Not more than one year On the basis of business function for when planning is to be drawn Product planning. Prior determination of policy.Unity of action could be ensured.Aid to economy. . 15 . programme. . Quality of output and all other quantitative factors Such as Man-hours. Makes it regid. Favourable consumer reaction. .Merits of planning Planning process facilities the managerial function on the following ways: -Selection of best objectives can be made with the help of planning Profits. High morale of workers.Aid to growth and Expansion. etc. Planning is time consuming and costly affair KINDS OF PLANNING On the basis of the time factor. . Costly Planning is based on forecasted results which will not Hold good in uncertain situations.” .Aid to employee co-operation. Unsuitability 4. .Increases the effectiveness of manager.

Consumer behaviour. Maximization of profit.) c. 2. Such other abstract factors.Intangible factors: a. development of managerial skill. . Procedures. Objectives 2. Rules 5. Developing alternative solutions.) Need : Weighing the consequences of each alternative course of action. Budgets 16 2. saving of time. increasing productivity etc. 4. CRITERIA Some of the rationales to be adopted indecision-making process are: Reduction of cost. Strategies.) b. Converting the decision into effective action. Steps in Decision-making process: Defining and analyzing the problem. Standing or repeated use plans 1. Programmes. Selecting the best solution. TYPES OF PLANS 1.) d. Single use of plans: 1. The prestige of business concern. Finding relevant facts. Decision-making Process Formulation Selection Deliberation Investigation Conception Ption Employee morale. Policies 3.

cost reduction. State or explicit policies.. increase in productivity goodwill. It is to be adequate in number to achieve organisationals goals. 3. Difficult to devise suitable means. fixation of objectives is subject to certain limitations viz. personnel development.) Objectives It may be defined as the specific goals or targets to be accomplished viz. Internal or originated polices. Remedies: 1. profit making. It ensure performance control.A brief description about these sub-types of plans are given below: a. 17 . Objectives should be specific. b. Difficult to define the objectives. Addealed policies. Healthy employee relations. 3. 2. Unstated or implied policies. KINDS OF POLICIES 1. Difficult to avoid conflict. 2. 5. It must ensure flexibility. 4. It should be a sound one. They are formulated in broad forms and provide a compressive and flexible course of action to be pursued to attain the given objectives FEATURES It is a broad outlines about the things to be done and the way in which they an to e done. External or imposed policies. Objective should be backed by suitable sub-goals. Limitations : However.. It helps to Integrate planning. Objectives should be flexible. Policies It may be defined as a guide to thinking and action of those who have to make decisions in the course of accomplishment of the enterprise objectives. Fixing of objectives in an organizational planning function ensures the following advantages. It is Consistent with that of the organizational plan. Objective should be realistic. social responsibility. It is vital to planning function. 4.

Ambitions. c. Governmental regulation and control. Prevalent Technology. 3.” They may be described as plans prescribing the exact chronological sequence of specific tasks required to perform designated work. 2. The person who will perform them. 8. Limitations : 1. 2. 3. and Foresight of the owners and members of the top management. Confidence booster. Ensures Consistency in all actions. 18 . Finance availability. Accomplishment and activities of competitors. It won’t help to solve all problems. Merits : 1. 7. 3.Factors to be considered while formulation policies are : 1. 2. 6. The time when those tasks will be performed. Procedures “The process of establishing time sequences for work to be done. Guide to think and act. Merits : 1. 9. It may nor encourage initiative. Aid to communication and co-ordination. Public attitudes and behaviour. Broader applicability. 4. 3. Demerits : 1. 5. Redundacy may takes place in course of time. It cannot substitute human judgment. Updating becomes must. Values. Ensure consistency in all operations. Instant solutions to problems may not be available. General business environment. Basis of control Standardisation of activities can be done. 2. 2. 4. To determine the specific tasks to be performed. 4. Employee reaction. 4. Price levels. Beliefs.

It is said to be formulated only to meet the challenge posed by competitions policies and activity. It means the art of projecting and planning the choice of means by which the enterprises forces ay be employed most effectively in order to accomplish it’s intended goal. Ensuring that action plans contribute to and reflect major objectives and strategies. Continuing to emphasis planning implementing strategy. Developing contingency strategies and program. e. Rules do not leave any scope for decision making nor do they permit any deviation. meaning general. Rule : It is decision made by the management regarding what is to be done and what is not to be done in a given situation. TYPES OF STRATEGIES Strike while the iron is hot-act prompt a while the action is likely to get results. Offence if the best form of a defence. 2. The following factors may be considered for formulating strategies. 3. Communicating strategies to all key decision-making managers. 2. Programme It lays down the operation to be carried out to accomplish a given work. 4. Reviewing strategies regularly. Greater risk of failure Inadequate motivation. 6. f. It applies to specific situations. Divide and rule. Strategies : It is derived form the greek word strategies. 19 . Camel’s head in the tent – creation of confidence regarding plan to some Unity is strength Time is greater heater. Demerits 1. Successful implementation of strategies : 1. Developing and communicating planning premises. Creating a company climate that forces planning. 2. Merits 1. Action based – practical guide to managerial action. 7. What human and physical resources are available to draw up a strategy.d. Correct assessment of reaction of the parties concerned. It prescribes how enterprise resources should be used. Greater motivation. Making the organization structure fit planning needs. 5. 8. Temperamental make-up of the persons to check-mate whom the strategy is being would up.

4. Semi-controllable premises such as firms market shares. during a given period. tastes. procedures. Objectives of Budgeting : 1. Cabined and confined. present and future. rules etc. Right motivation. They constitute the ground on which plans will stand. Selection of the premises that bear materially on program. 3. Verification of the consistency of premises Communication of the premises. preferences of people etc. Excessive reliance on past experience. Meaningful premises facilitate consistency and coordination of plans. PLANNING PREMISES Managerial plans are based on certain assumptions which are called planning premises. To exercise Controlling effective and achieving desire goals. Budget It is a plan relating to a period of time expressed in numerical terms. 4. 2. “as a pre-determined statement of management policy. 20 . Basis of control. The premises may be of Non-controllable premises such as economic conditions. 4. political situations. 3. To motivate the workforce for achieving desired results. 3. union management relations etc. Time bound Specific targets. Development of alternative premises for contingency planning. which provide a standard for comparison with the results actual achieved. To ensure effective planning.g. Danger of inaccuracy in estimates. Limitations 1. Effective Premising : To effectuate the planning premises following guidelines may be adopted. 5. Synthesis of past. Merits : Instrument of management policy 1. Hampers initiative – rational and pragmatic initiative is stiffed. Controllable premises such as policies of the organization. 2. 2. to facilitate Co-ordination function.

4. Operating the organizational activities in conformity with the establishment objectives of the enterprise. As a function it refers to establishing relationship between activities and authority pertaining to an enterprise. FACTORS INCLUDED IN THE CONCEPT OF ORGANIZATION a) b) c) d) Assembly of business elements such as men. 9. Principles of objectives. 12. PRINCIPLES OF ORGANIZATION 1. The term organization is used both structural and functional sense.LESSON – 3 ORGANISATION The term organization is derived form the word “organism” which means structure with parts so integrated that their relation to each other is governed by their relation to whole. As a structure it means a developed enterprise being operated t achieve the given goals. money and materials. 10. 7. DEFINITION “Orgnisation is the process of identifying and grouping work to be performed defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives. 21 . Creation of formal relationships between men employed at different levels through a hierarchy of authority. Principles of authority. Organization is nothing but a process of integrating and co-ordinating the efforts of men and materials for the accomplishment of a set objective. 3. 5. 8. Principles of formal authority Principles of the span of control Principles of decision Principles of Exception Principles of Definition Principles of Balance Principles of Continuity Principles of Organisation cost Principles of Effective communication. -ALLEN Organisation thus is an arrangement for internal administration of the enterprise. Principles of ultimate authority. Defining the functional role of the personnel and laying down the range of their responsibility for business performance. 6. 2. It describes the part which each employee is intended to play in the operation of an enterprise and ensures that concerned endeavour of all of them will be conductive to the full implementation of the plans of the enterprise. 11.

5. Division of work Grouping of activities. 4. 2. 3. Limitations 1. Vertical chart Horizontal chart Circular chart Tree chart Merits of Organisational Chart : 1.” -FEORGE TERRY TYPES OF CHARTS 1. ORGANISATIONAL CHART It is important tool for portraying net work of an organization structure. Delegation of Authority Establishment of relationship. 2. Likely to be outdated Rigidity It shows only relationships Shifting of responsibility to somebody else Does not show extents of authority or responsibility.ELEMENTS OF ORGANIZATION 1. nature of relationship between 2. 2. 6. 4. 3. Hence internal organization. 5. the channels of supervision and the relative authority of each employees who is incharge of each respective functions. Clarity in relationship Easy to understand at a glance Familiarizing new employees Helps in formulating training programme Helps to organizational change It serves as a better method of visualizing the tone and character of an organisation. 5. “It is diagrammatic form which shows important aspects of an organization. 3. It may go against teamsprit It ignores the informal aspects of orgnisation. implies designing an administrative set-up consisting of individuals with defined task and responsibility to be performed according to an orderly sequence procedures for attaining the result. The main portion. 2. 4. 4. Levels of management. 7. including the major function and their respective relationship. Assignment of Duties. It shows 1. 22 . 6. 3.

TYPES OF ORGANIZATION
The problem of organization is to select and combine the efforts of men of proper characteristics so as to produce the desired result. Although character and type of organization would depend largely on the size and nature of enterprise, the following broad patterns of organizing the personnel have been evolved. Line organization Functional Organisation Matrix Organisation Staff Organisation Line and Staff Organisation Projectised Organisation

A brief outline about the three basic organization structures are given below

LINE ORGANISATION
It is the oldest type of organisation in use in which authority flows from the men at the top to the lowest man vertically. i.e., the directionsare issued by the person incharge of the whole organization and are directly conveyed to the persons responsible forhte execution of the work. The advantages of this structure are: Simple to understand and develop. Clear-cut division of authority and responsibility is possible Discipline can be easily maintained. It makes for quick action However, this structure has following shortcomings: Makes the organization more regid and inflexible Lack of expert advice may be there. Key man are loaded heavily. Loss of one or two capable men may mar the organisatioin. Line Organisation Chart General Manager Manager Eastern Region Manager Western Region

Manager 1

Manager 2

Manager 3

Manager 4

Manager 5

Manager 6

LINE AND STAFF ORGNISATION
A manager today cannot hope to think of all possible factors in a given situation. Therefore, he hs a set of expert advisers. Those functions which have direct responsibility for accomplishing the major objectives of the firm are called line functions. The staff functions are supposed to help and assist the 23

line in discharging their responsibility. The staff position established as a measure of support for the line organization may be of personal staff, specialished staff and general staff. This form has certain advantages and limitations. They are It is based planned specialization It brings expert knowledge to bear upon management It provides more opportunity for advancement for able workers. Limitations: Relationship between line and staff member may creates confusion. Lack of authority may affect the interest of the staff member. Prestige and influence of line member ay suffer in front of specialist.

FUNCTIONAL

ORGANISATION

Here the whole task of management and direction of subordinates should be divided according to the type of the work involved. The functional management carries this idea to its logical limit and divides up management into a number of functions such as production, sales, finance and personae, and research and development etc. Each of these departments would serve its best for the organization. Its advantages are; It ensures a greater division of labour It Improves the efficiency of the organization. It brings specialization and innovations. It facilitates mass productin. However, it has certain limitations as given below; Strict enforcement of discipline is questionable. Creates complexity in structuring activities. Responsibility cannot be fixed effectively. A model of line staff and functional organization structure is given below. Chairman PA to Chairman

Director Personal

Director Production

Director Purchasing

Director Finance

GM 1

GM 2

Manager Manager Manager Personal Production Finance

Manager Personal

Manager Production

Manager Finance

24

FORMAL ORGANISATION
“A Network of personal and social relation not established or required by the formal organization but arising spontaneously as people associate with one another.” Types of informal groups 1. Social overlays 2. Functional overlays 3. Decision overlays 4. Power overlays 5. Communication overlays Benefits 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Sense of belonging Safety value for emotional problem Aid to the job Breeding ground for innovation and originality Important channel of communication Social control Check of authority Self – policing Fills gaps in a managers abilities Gives the managers feedback about employees and their work experience

Limitations 1. Resistance to change 2. Suboptimization 3. Rumor 4. Group think philosophy

AUTHORITY AND RESPONSIBILITY
Authority is the basis of organization in as much as organization is described as a system of authority relationships. Authority is the power to command others to act in a manner deemed by the possessor of the authority to further enterprise or departmental purpose. It is the power to make decisions which guide the actions of others. The person who makes the decisions is the superior and the person who accepts them and is guided by them is called one subordinate. Authority is the right to give orders and the power to exact obedience. HENRI FAYOL

Authority may be of formal authority, acceptance authority, authority of situation, position authority, and technical authority. Authority Power 1 It is the institutionalized right of a It is the ability of a person to influence superior to command and compel his another person to perform an act. subordinates to perform a certain act. 2 It rests in the chair It rests in the person 25

It really means that the obligation of a subordinate to perform the duty assigned to him. A failure to observe these elements may call forth a penalty. Speed up decision – builds up morale. Delegation means conferring authority from one manager to organizational unit to another in order to accomplish particular assignments. Accountability refers to the liability of a subordinate for a proper discharge of his functions. then obligation. Merits 1. Thus to be accountable is to be answerable for the fulfillment or non-fulfillment of the authority or responsibility assigned. activity or sometimes even authority. The essence of responsibility is. Delegation determines the effectiveness of the manager in his work. ELEMENTS OF DELEGATION The process of delegation involves three basic actions whether expressed or implied. 26 . obedience and Dependability. It includes responsibility and arises from it. He has to grant authority to subordinates to the delegated part of his work. They are The delegator should assign duties to subordinates. It is defacto concept Basis for informal organ Responsibility is an obligation of the individual to perform assigned duties to the best of his ability under the direction of his executive leader. 4.KEITH DAVIS Responsibility refers to duty. The way in which delegation will influence the relationship between the subordinate and his superior and through it the performance of the subordinate. In the normal functioning of an enterprise much of the responsibility in the nature of continuing obligation which means that the subordinate has an obligation to discharge his functions as required by the superior continually. Leads to better decisions. Responsibility involves Compliance. Train subordinates and Helps to create formal organization structure. punishment or disciplinary action against the erring subordinate. therefore. DELEGATION To delegate means to grant or confer. The term accountability can also be used as a substitute for responsibility. 2. 5. Relieves manager’s workload. In the absence of delegation. be unsure of his job. he may receive orders from many people and may.3 4 5 6 It is delegated It is well defined It is what exists in the eye It is a dejure concept Basis for formal organization It is earned by own efforts It is undefined It exists in fact. But accountability cannot be delegated. 3. . Delegation should create obligation on the part of subordinate to complete the job.

Authorization for action. STEPS IN DELEGATION The entire process of delegation of authority can be completed through the following steps. GUIDELINES FOR EFFECTIVE DELEGATION 1. Create climate for mutual trust and goodwill No over laps or slips in delegation. Nature of activities involved. It refers to the number of subordinates for whose activities an executive should be held responsible. No positive personal gain. 3. Assignment of duties. Lack of confidence in subordinates. 2. 6. Place available etc.BARRIERS TO DELEGATION. Ability of the superior (knowledge) Nature and ability of subordinates. 4. 3. The factors determining span of control of a superior are: 1. 4. 2. Determination of results protected. Lack of adequate information 3. Fear of criticism 2. Difficulty in briefing. Graicuna offer analyzing subordinate and superior relationship developed a mathematical formula. Limits of subordinates authority. Time available. 2. His theory identifies three types of the subordinates & superior relationships namely. 3. Positive incentive for accepting responsibility. The limit to the number of subordinates who can be effectively managed by a manager. Direct group relationships. GRAICUNA’S FORMULA French management consultant V. Fear of being exposed. 5. On the manager’s side: 1. 4. Clarity in assigning the task Proportionate authority. Direct single relationships. 27 . 7. 1. A. Creation of obligation. Lack of self confidence and initiative and resources. 4. 3. Proper training of subordinates. 5. Fear of loss of power 2. On the subordinates side: 1. SPAN OF MANAGEMENT It is one of the organization principle. Cross relationship between subordinates.

USE OF GRAICUNAS FORMULA It clearly shows complexity and difficulty of wider spans. Mathematical precision is debatable 2. Direct group relation may be far – fetched. It reminds manager of wisdom of striking to narrower spans. every time a new subordinates is added. It does apply in cases of cross relations of a big enterprise. Limited span of control ensures the following 28 . 1. Limitation 1. R=6 R = 44 When two subordinates 4 Subordinates = 4 x ( 24-1+(4-1)) = 4 x [23+(3)} = 4 x{8+3} = 44 Span of supervision require following skills : Supervision requires attention. He said the total number of relationships grows in geometrical ratio. 2. Nx [2n-1+(n-1) Number of subordinates Total relations. Supervision requires ability of subordinates. Supervision requires Emotional stability. FORMULA R= Where N = R= 1. The main problem is not number of RL but their frequency and the volume of stress and strain they generate. Supervision requires time. 3. Supervision requires nature of work.These relationships vary (considenancy) with the size of the subordinates group while the supervisions own direct relationship with individuals increase n (proption) to the addition to subordinates the groups and cross relationships increase much more than proportionately. 4.

3. Facilitating diversification. decentralizations of authority has been suggested and largely resorted to particularly to achieve the following purposes. 2. Decentralization implies a systematic delegation of authority through out the whole organization. Additional costs having more manager Complexities in communication will arise Prevention of democratic participation DECENTRALIZATION It is the situation which exists as a result of systematic delegation of authority through out the organization. Providing product of market emphasis. 3. Decentralization is an extension of delegation. Tighter control and closer supervision Ease of managing fewer. Having experienced many difficulties in the smooth running of such centralizes organizations. Promote the development of general managers. The term decentralization carries different meanings to different people. Under decentralization the whole organization is divided in to self-sufficient divisions. Encourages decision making and assumption of authority and responsibility.1. Availability of time to think and plan On the other hand limited span of control has some shortcomings also as given below 1. DISADVANTAGES OF DECENTRALIZATION 29 . ADVANTAGES OF DECENTRALIZATION Decentralization leads to specialization. 2. Aids in adoption of fast changing Environment. Easing burden of chief executive. Decentralization makes the sub – ordinates to work with involvement Facilitates diversification in large scale. WHY DECENTRALIZATION ? Large companies having independent product or service lines may adopt a form of decentralization. Developing managers and Improving motivation.

- Makes it more difficult to have a uniform policy. May be limited to External forces. DELEGATION Vs DECENTRALIZATION 1. 4. 2. Developed of managers Departmentation helps in the development of managers. The process of grouping activities is commonly known as departmentation. 5. May some time leads to mis-use of power in high levels. Delegation is vital and decentralization is optional. 3. Fixation of responsibility Departmentation helps in fixing the responsibility and consequently accountability for the results. these activities can be carried out more efficiently and effectively through the division of work leading to a specialization of managerial function. 1. 2. Feeling of Autonomy : 30 . Leads to increase in cost. Superior is responsible for delegation where as in decentralization subordinates are responsible. Facility in Appraisal Managerial performance can be measured when the area of activities can be specified and standards in respect of these can fixed. Advantages of specialization : Thus if the managerial function is conceived as a set of activities facilitating the work of organization. May be limited by the availability of qualified managers. DEPARTMENTATION First task in designing an organization structure is the identification of activities and to group them properly. Depertmentation provides helps in both these areas. 3. NEED AND IMPORTANCE OF DEPARTMENTATIN The basic need for departmentation arises because of specialization of work and the limitation on the number of subordinates controlled by a superior. Decentralization leads to problem in co – ordination. Leads to expenses in training a manager. Delegation is the process while decentralization is the end result.

payment schedule demand pattern etc. insurance.. preferences etc. time etc. The process are set in such a way that a series of operations is feasible making operations economic. styles. The basic idea of this departmentation is to provide services to clearly identified groups of customers. territory. Local factors such as customers. always affect organizational functioning. It provides advantages of specialization required at each level of total processes. payment schedule. There are several bases of departmentation. easier control over functions. process. The more commonly used bases are function. When the production activities involve the use of several distinctive processes. these can be used as the base for grouping of activities. culture. ensuring performance of activities necessary for the achievement of organizational objectives.. Some of these bases are internal-operation – oriented like function. Territorial departmentatin provides certain efficiency in operation. PRODUCT WISE DEPARTMENTATION Product departmentation involves the grouping together of all actibities necessary to manufacture a product or product line. Product departmentation offers several advantages places attention to product lines. CHOICE OF BASES FOR DEPARTMENTATION 31 . oil production etc. CUSTOMER – WISE DEPARTMENTATION Customer based departmentation is basically market – oriented in which departments are created around the markets served or around marketing channels. maintenance of plant can be done in better way.. FUNCTIONAL DEPARTMENTATION The grouping of common or homogeneous activities to form an organization unit is known as functional departmentation. processes involved in production or various types of equipments used are taken as basis for departmentation. time while others like product. customer. provides opportunities for further diversification and expansion of organization and provides product specialization necessary for managers specially when each product is different from other. transportation etc. territory and customer are output-oriented. PRODUCTION PROCESSES – WISE DEPARTMENTATION In process departmentation. Functional departmentation is the most widely used basis for organizing activities and is present almost in every large organization at some level. demand pattern etc.Deprtmentation provides motivation by developing feeling of autonomy to the extent possible. Therefore they can be attracted to the organization’s business by satisfying them by providing services. Product departmentation is preferred for product expansion and diversification when manufacturing and marketing characteristics of each product are of primary concern. elimination of un-necessary activities. reduces problems of coordination for different products. process. easier way for pinpointing training need of the managers and maintaining the relative importance of functions in the organization. TERRITORY – WISE DEPARTMENTATION Territorial or geographical departmentation is specially useful to large-sized organizations having activities which are physically or geographically spread such as banking. produt. Such activities may be textiles. and manpower can be utilized effectively. Functional departmentation is most commonly used because it offers certain advantages which include advantages of specialization. Each group of customers has different purchase behavior..

32 . 2. Specialization: The basis of departmentation should reflect the specialization in performing the work. a suitable basis of departmentation is one which facilitates the performance of organizational functions efficiently and effectively so that its objective are achieved. The existence of a department is desirable only when it contributes more than its cost.The selection of bases for departemntation involves a consideration of the relative advantages of each base for the organization. 4. Economy A balance should be maintained between the cost of creating a department and its contribution. Coordination: Coordination involves that all the related activities are performed in a way that their performance is synchronized so that each activity contributes to others. Focus on Result Those activities which contribute to the achievement to these results should be given proper attention. Ideally speaking. 3. informal work groups and attitudes of people towards various forms of organization structure. Local Conditions : Local requirements of the organization should also the taken into account while creating departments. 1. 6. their aspirations and value systems. Human Considerations : Departments should be created on the basis of availability of personnel. 5.

Developing the people. Direction attempts to get maximum out of individuals. Direction may be defined as the function of management which is related with instructing. communication. supervising. guiding and inspiring human factor in the organization to achieve organization objective. Organizing the efforts. Direction integrates employees efforts. 3. leading and if need be commanding. 33 . It is getting the work done through instructions and orders. Motivation Leadership Communication Direction has the following characteristics Direction is an important managerial function. Direction initiates action. but is includes the process of guiding and inspiring them. Direction provides stability and balance in the organization.Lesson – 4 Direction Direction is instructing the subordinates to follow a certain process to attain a give objectives. It is sum of total of managerial efforts that is applied for guiding and inspiring the working teams to make better accomplishments in the organization. The direction is not merely issuing orders and instructions by a superior to his subordinates. Through direction management can initiates actions in the organization. Direction initiates at the top level in the organization follows and bottom through there hierarchy. PROCESS OF DIRECTION 1. Direction function is performed at every level of management. 2. It is the heart and soul of management. IMPORTANCE OF DIRECTION The importance of direction function in the organization can be presented as follows. The analysis of definition reveals that direction function consist of three elements. It emphasizes that a subordinates is to be directed by his own superior only. Defining the objectives. Direction is a continuous process and it continuous through out the life of the organization. Ever manager in the organization gives direction to his subordinates as superior and receives direction s subordinate from his superior. Measuring the work. motivation. Direction facilitates charges in the organization. 4. It is the function of diversion in the management process to get the work from the subordinates by means of guiding.

Important requirements for effective direction are : Harmony of objectives. Thus one of the basics functions of management is direction. e. Principle relating to direction process: Principle of unity of command. Unity of command. Principles of maximum individual contribution. Principle of appropriateness of direction technique. Principle of comprehension. 2. Direction means the use of leadership and motivation to guide the performance of subordinates towards the achievement of the organization’s goals. c. a. efficient communication and follow-up. 34 . Principle of follow through. Principle of use of informal organization. f. Principle of harmony of objectives. Principle of efficiency of direction.PRINCIPLES OF DIRECTION Direction is one of the most complex function of the management as it ideals with people whose nature itself is quite complex and unpredictable. Principle of managerial communication. direct supervision. g. 1. b. b. c. d. Principle of leadership. Principles of relating to the purpose of directing a.

Motivation M S = = Results Satisfaction is a drive t satisfy a want is experienced when the outcome has been achieved. Reduce labour turnover. 4. 2. They are : 1. 2. Motivation is an act of inducement. Constant process NEED FOR MOTIVATION * * * * * Maximum utilization of factors of production.e.. Create sense of belonging. emphasizes Need hierarchy theory: Abraham Maslow’s book on motivation and personality multiplicity of human needs are arranged in an order. KINDS OF MOTIVATION 1.LESSON – 5 MOTIVATION Motivation is an art of stimulating someone or oneself or oneself to get designed course of action. 3. Determined by human needs. Herzberg’s theory Mcgegor’s theory Vrooms theory. The basic principle of motivation is based upon the following policy i. Maslow’s theory of motivation. 35 . Increased the efficiency and output. 3. Easy availability of right personnel. May be financial or non financial. 4.” NATURE OF MOTIVATION It is a psychological concept It is total not piecemeal. Positive motivation Negative motivation Financial motivation Non-financial motivation THEORIES OF MOTIVATION Management experts have formulated different theories on motivation at different dimensions. “Put a carrot in front of donkey to make it move or Jab his with a stick being. carrot or stick policy. to push the right button to get desire action.

They were agreed to 36 . or conversely. people like to give priority to the pressing needs first and the rest in next.2) The other sets of needs are called Higher order needs (3. Herzbergls of Case-Western reserve University and associates. Chance for development Opportunity to grow Chance for increased responsibility The job inself Needs priority. Motivators (feeling of achievement. U. During the structured interview. to a great extent. No indication regarding satisfaction of needs. 5. Motivation is piecemeal exercise by means of splitting of human needs. While going for achieving the particular need. characterizes the types of behavior. 9.4) According to him when one needs fulfils another need will emerge automatically. 2.* * * * * Physiological needs Safety needs Social needs Esteem needs Self actualization. The first two sets of needs are called Lower order needs (1. significance of growth) Maintenance factors 1.A. Short – coming of Maslow’s theory are: Order cannot be regarded as rigid. Factors that prevent dissatisfaction Factors that give satisfaction Hygiene factors. In this connection a research study was conducted by Frederick.S. It will be either directed towards achieving certain desirable positive goals. factors that give real satisfaction to an individual are motiators. Recongnition. towards avoiding other undesirable negative consequences. It may not have universal applicatibility. He classified the factors in to two viz. 6. 7. a question may arise as to what variables are perceived to be desirable goals to achieve and conversely undesirable conditions to avoid. Fair co policy and administration Supervisor knows the work Supervisors relationship Peers relationship Fair salary Job security Subordinates relationship Personal life Status Good working condition Motivators Opportunity to accomplish something significant. 4. Thus. 3. HERZBERGS’ THEORY According to Herzberg. This study consisted of an intensive analysis of the experiences and feeling of 200 Engineers and accountants in 9 different companies in Pittsbrug area. 10. 8.

individuals may be classified into two parts. These are not intrinsic part of job but they are related to conditions under which a job is performed. the maintenance seekers tend to be more concerned with factors surrounding the job such as supervision. Herzgerg maintains that potency to various factors is not entirely a function to factors themselves. salary. MOTIVATIONAL FACTORS These factors are capable of having a positive effort on job satisfaction often resulting in an increasing one’s total output. These are achievement. Most of these factors are related with job contents. with subordinates. recognition. their presence does not motivate them in a strong way. achievement and other factors associated with work itself. however. From this point of view. working conditions and status. An increase in these factors will satisfy the employees. Herzberg includes 6 factors that motivate employees. status. Another set of job conditions operates primarily to build strong motivation and high job satisfaction. 2. 3. however any cut below this level will dis-satisfactory them. Since. Hence. HYGIENE FACTORS According to Herzberg there are 10 maintenance or hygiene factors. In concluding the information from the interview. They produce no growth in a worker’s output. Herzberg model is method bound and a number of other methods used for similar study have shown different results not supporting his contentions other the theory has limitation is general acceptability. They were also agreed to rate the degree to which their feelings were influenced for better or worse by each experience which they described. They are company policy and Administration technical supervision. any decrease will not affect their level of satisfaction. His findings are that there are some job conditions which operate primarily to dis-satisfy employees when the conditions are absent. The first 80 job conditions has refused to as maintain or hygiene factors and second set job conditions as motivational factors. The motivation seekers generally are individuals who are primarily motivated by the satisfier’s such as advancement. inter-personal relationship with supervisors with peers. possibility of growth and responsibility. they only prevent prevent losses in workers performance due to work restrictions. these are in no way motivation them. job security. Infact job satisfaction and dis-satisfaction are two opposite points on a single continuum Individuals on the job are affected by any change either in the job environment or in the job content. The shortcomings of Herzberg’s theory are: 1. personal life. pay etc. maintenance seekers. These maintenance factors are necessary to maintain a reasonable level to satisfaction employees. thee increase level of satisfaction in the employees can be used in motivating them for higher output. As such these are also called dis-satisfiers since any increase to these factors will not affect employee’s level of satisfaction.desirable a few previous job experience in which they felt exceptionally good or exceptionally bad about jobs. but their absence carely proves strongly dissatisfying. This theory does not attach much importance to pay. It is also influenced by the personality characteristics to the individuals. Herzberg concluded that there were two categories of needs essentially independent of each other affecting behavior indifferent ways. 37 . working conditions. On the other-hand. Motivation seekers. advancement work itself. or inter-personal relationships which are help generally as important contents of satisfaction.

Traditional or X theory and Modern or y theory. Esteem or status 3. Gregore has introduced a fresh dimension in the discussion on theories relating to motivation. 2.. Social needs Physiological needs Status. 7. 8. Traditional or X theory. Douglas Mc. F A C U L T Y Job security. Authority is synonymous with control. Inbuilt dislike for responsibility 4. Responsibility. Obession with security. He has classified the prevalent theories into two groups viz. achievement. Fear can alone force action. 3. 1. Assumptions of X theory 1. working conditions. Advancement and recognition 2. 5. growth in the job. Interpersonal. Labour is only a factor of production. 38 . Money alone can make the people to work. 2. Living – off others. 6. Self actualization M O T I V A T O R M A I N T E N A N C E HERZBERG THEORY Challenging work. Decisions whether right or wrong have to be made by managers only. salary MC GREGORE’S THEORY Prof. Lack of inclination to work. the only rule assigned to workers being to mainly incline the decision. It completely excludes workers from the process of managerial decision making the theory stress that would here only when forced to do so through ruthless exercise of managerial authority over them through constant rebuking scolding reprimanding. 5.Comparison of maslows and herzberg theory MASLOW’S NEED THEORY 1.

Highly cohesive groups are more likely to conform to group pressures than are members of low-cohesive groups. it gives workers a pride of place in the process of management. 39 . = Strength of an individual preference for an outcome. Democratically inclined GROUP DYNAMICS Essentially dynamics is a branch of physics which means any matter in motion. 4. The group dynamic will be structured around the three key element such as basic element of group behaviour. The phrase Group Dynamics thus means a study of cohesive and disruptive force operating within a group. Inherent sense of responsibility 3. It can be said to be positive and optimistic outlook. 6. The manager must thus study them both as individual and as group. Sense of security. It emphasis fuel and active cooperation. VROOM People will be motivated to do things to reach a goal if they believe in the worth of that goal and if they can see that what they do will help them in achieve it. He states that: FORCE Force Valence Expectancy = VALENCE * EXPECTANCY = Strength of the person motivation.Modern theory or Y theory It is the exact opposite of x theory. Group dynamics means the action of a group engaged in a common endeavor. Financial reward is not the only inspiration. Assumptions of Y theory 1. as these are two interrelated elements of a motivational situation. THE EXPECTANCY THEORY OF MOTIVATION – VICTOR H. 5. are motivated to remain in the group. Work is reward in itself 2. Vroom makes the point that motivate is a product of the anticipated worth that an individual places on a goal and the chances the or she sees of achieving that goal. Decision – making ability is not the monopoly 7. Group structure if meant that the nature and characteristics of the interrelationships among the members of a group and the roles they play in it. Recongnition. group cohesiveness and the group structure. The three basic elements which generally of use in understanding the behavior of a group are activities. and mutually influence on another. interactions and sentiments. It also means a moral force that produce activity or change. The importance of group dynamic to a manager lies in the fact that many people tent to behave differently as individual and member of a group. Group cohesiveness refers to the degree to which its members are attracted to the group. they would willingly accept responsibility and show the sense of creativity and imagination in their work performance. = Probability that a particular action will lead to a desired outcomes. The world dynamics comes from the Greek work meaning force. between workers and management to accomplish the enterprise objectives as per theory if workers are properly maturated.

Perception of value vary among individuals at different times and in various places. Motivation is an extremely significant subject for managers get work done through others. First and second level outcomes. Mc Gregore. Merits of Vrooms Theory are: 1. Motivation. Demerits of Vrooms Theory are 1. It is completely consistent with the system of management by objectives. Instrumentality 3. 2. V Room and Porter and Lawler are some the important writers on motivation.Basic concepts of the theory are : 1. THE PORTER AND LAWLER MODEL Lyman W Porter and Edward Lawler III derived a substantially more complete model of motivation. motivation is a complex one. 2. Maslow. motivation may change and vary. It recognizes the importance of various individual needs and motivations. Expectancy 4. Important characteristics of motivation are individual differ in their motivation. 2. Difficulty to apply the practice. 40 . Motivation is the multiplicative function of the valence for each first level outcome (Vi) and the believed expectancy (E) that a given effort will be followed by a particular first level outcome. It fits the concept of harmony of objectives 3. The strength of motivation and energy exected = value of reward + amount of energy required + probability of receiving reward. individuals are unaware of motivation sometimes. Herzberg.

5. 3. This process of transmitting information as between different levels of authority and among the officers at the same level is called communication. directing. IMPORTANCE OF COMMUNICATIONS Communication is described as one of the crucial fouls of management. This would necessitate determination of information to link all the leavels and enable the concerned officers and operative to act upon such information. Receiving information on matters of actins expedited or yet to be expedted Creating under standing in others about their responsibility and position and prospects of a situation concerning then. Management tasks of planning. To put the policies and decisions into action results in accurate and efficient performance. ideas. 4. views. Giving information on matters regarding things done or to be done. It brings about mutual understanding between the officers and personnels at all levels and fosters the sprit of cooperation. They arise mainly due to communication gap. 2. or emotions by two or more persons. It is essential for coordination which is the essence of management. figures. Louise Allen CHARACTERISTICS OF COMMUNICATION 1. To formulate the comprehensive plans and policies on scientific basis. It enables the top management. 41 . This will give democratic character to managerial process and strengthen the moral of the staff. It helps in securing largest possible participation or consumption indecision making. opinions under transmissions. coordinating and motivation can be carried out by the process of receiving issuing recording and interpreting.LESSON – 6 COMMUNICATION The word communication originates from the latin word “communis” denoting common. It helps in handling the major managerial tasks of planning direction coordination motivating and controlling. It involves imparting a common idea or understanding and covers any type of behavior resulting in an exchange of facts. Making others listen attentively to the facts. Identifying the common intentions and interest by interaction of views through channels of commutations. planning and general administration. Helps the management to remain informed to the problems difficulties. opinions. grievances of personnel. The information of facts and figures related to the varied aspects of business activities necessarily implies transmission of information intended to convey the idea of what is desired or required to be done.

it has to communicate with the other business houses. 42 . It should be give at proper time. Informal Formal communication flows along prescribed channel which all members desires of communicating with one another are obliged to follow. Communicate or rece4iver or addressee Message – orders reports Communication channel. Principle of attention 3. 6. Principle of clarity 2. banks.e. It must be a complete one. 7. external and internal. ESSENTIALS OR PRINCIPLES OF GOOD COMMUNICATION 1. 1. Principle of adequacy 4. programs. Response – reply reaction. Principle of adequacy Principle of time Principle of integration Principle of informality Principle of feed back and suggestions etc It must give clear message n simple words and easily understandable form. 8. Formally a clerk in any of the sections cannot directly communicate with the managing director. Formal or official 2. 5. The press the customers and the general public Internal communication consists in transmitting information with in the organization. It should ensure cooperation at all levels. Communication must be a two way traffic message polices.ELEMENTS OF COMMUNICATION Communicator or sender or issuer. It should be consistent with plans. complaints are communicated upward. Externally. policies program and objective of the enterprise. Here we discuss about internal communication. Internal communication may again the be f two types. opinions etc are communicated downwardGrievances. flow of message : On the basis of mode of operation Oral communication Written communication Gesture communication Each business house is concerned with two types of communication. direction. government officers. TYPES OF COMMUNICATION On the basis of nature of passing information Formal communication Informal communication On the basis of direction i.

Important directives to initiate action may be communicated through letters policies and procedures may be announced house organs. often called a grape vine. To give information about the rational of the job. To explain to a subordinate the significance of the job assigned to him and why he has been entrusted with it. But the downward follow of communication is dominated by oral means. A manager giving a directive an assistant manager or supervisor. manuals. Horizontal communication flows between employees of equal or comparable status. that does not arise out of the organizational needs but that is never the less. Main objectives of downward communication 1. individual instructions policies. MEDIA FOR DOWNWARD COMMUNICATION Downward communication may be both oral and written. Orders. an integral part of his communication system. The format for this communication is predetermined and cannot be altered. it will definitely promote efficiency. It is eminently suited to an organization in which the line of authority runs distinctly downwards with each tank clearly below another t which it is directly related. 2. circular etc fall under downward communication. 4. a foreman instructing a worker. To appraise the subordinates of their performance: If the performance of the subordinates is objectively assessed and the assessment communicated to him in a considerate tone. It is called consensus. In addition to this formal channels of communication. A clear understanding of policies given the lower state. a statement job sheets.e. Appreciation to good work will raise his morale and strengthen his dedication pointing out has shortcomings will enable him to over come them. from where it will go to the managing director. The importance of the objective of downward communication has only been recently recognized. 43 .He must talk to his supervisor who wil pass on the passage to departmental managers. A wider perspective so that they can grasp and relay their role more meaningfully. DOWNWARD COMMUNICATION As explained earlier communication flows from a superior to a subordinate. bulletins etc. The decision fallen at managerial levels are transmitted to states in the form of directives so an action may be initiated. i. there exists in every organization an informal channel. Formal communication may more vertically or horizontally. To give specific direction about the job being entrusted to a subordinate. To explain the policies and organizational procedures. It is more natural to the foreman to issue oral instructions to his workers. Vertical communication can flow downward or upward. The managing director communicating with the departmental heads. 3. When a number of people irrespective of status sit down and confer with another to arrive at a decision acceptable to all.

Under – Communication and over communication Downward communication is often made by either under – communication or over communication i. There should not be over communication of authority at the highest level. they will be also to transmit information to their re-subordinated in an effective manner. Loss of information : Unless the communication is fully written. Built – in resistance Downward communication causes of too much authority flow. 2. 44 . Exaggerating statements giving unconscious taints to facts are a part of human nature. UPWARD COMMUNICATION If the managers have transmit information down the lines of authority they have also to receive information continuously emanation from levels below them the communication channel which pushes the flow of information upwards is known as the upward channels of communications. Managers have only recently come to the recognize the importance of upward communication. 2. information is not only distorted. the lines of communication will be shortened.LIMITATION OF DOWNWARD COMMUNICATION 1. The subordinates do not get any opportunity of participating in the decision making process they are expected to receive policy decisions and directive without questioning their appropriateness. They must decide before how much information is to be communicated and at what time. Distortion In long lines of communication. it is not likely to be transmitted downwards in its entirely. A part of it is almost contains to be lost. a superior may either talk to little or too much about a job under communication may also involved incomplete instructions. 3. 4. The information must be passed on to correct persons inherently. or it may have caused damaging delay. utility or validity which they resent. 5. 1. on the other hand may lead to the leakage of confidential information. Managers must work according to communication plan. By the time information reaches him it may have lost much of as significance. It they are themselves in possession of adequate information. If an organization is so structured that orders and instructions can originate at various levels.e. 3. making under ESSENTIALS OF EFFECTIVENESS DOWNWARDS COMMUNICATION. 4. which will inevitably lead to unsatisfactory performance over communication or talking too much. Delay : The lines of communication in downward communication being very long transmitting information to the lowest worker in time – consuming process. Managers should keep themselves well informed of the objectives and achievements of their organization.

2. in to these boxes. 2. METHODS OF UPWARD COMMUNICATION Some of the more commonly used methods of upward communication are discussed below.IMPORTANCE OF UPWARD COMMUNICATION 1. Some of these suggestion when implemented definitely prove beneficial. Although the management often these things and it knows and realizes the grievances of the employees. Providing feed back This communication provides the management with necessary feed back. The later hardly feel convinced and satisfied. 1. Open door policy: The employees are given a feeling that the managers doors are always open to them. Social gatherings: Social gathering are frequently arranged in different departments. Complaints and suggestions boxes: In some convenient places n the offer or the factory complaints and suggestions boxes are installed. These boxes are opened at regular intervals and the inform gathered scrutinized. 5. 4. 3. Easier introduction of new schemes Since the employees feels themselves to be party to the decision making process. Constructive suggestions Often employees often constructive suggestion to promote the welfare of the organization. The management is able to ascertain whether the directive issued the lower statuses have been properly understood and followed it also gets the valuable information on what the employees think of the organization and its policies. 45 . These gatherings offer a very informal atmosphere in which ate employees shed the inhibitions and feel free to talk about their problems. 3. it helps the organization to introduce new schemes without unduly antagonizing the employees. The employees are encouraged to drop their complaints or suggestion if any. whenever the like they can walk in to his room. Greater harmony and cohesion : It art as a kind of lubricant. Out let for the sent-up emotions: Upward communication is the employee and opportunity to sent their problems and grievances. It makes the atmosphere more congenial are creates great harmony and cohesion between the management and the employees. They develop source of participation in the decision making process. without any hesitation what so where and talk to him about their problems.

As they feel encouraged to talk about themselves freely. ignore their immediate superiors and directly approaches the top most authorities with their suggestions or complaints. &&&&&&& exchanging information with one another. ESSENTIALS OF EFFECTIVE UPWARD COMMUNICATION 1. Distortion by editing can be avoided if the lines of communication are kept as shortest possible. Upward communication is more prone to distortion them downward communication. supervisors holding a coffee break section s to discuss some organization are all engage in horizontal communication. In downward communicate distortion is often unconscious. HORIZONTAL COMMUNICATION Communication between departments or people on the same level in the managerial hierarchy of an organization may be termed as horizontal or lateral communication. In order to enable the workers to over come the awe of authority.4. they provide the managers with valuable information. LIMITATIONS OF UPWARD COMMUNICATION The shortcomings of the upward communication are: 1. Sometimes in the process of upward communication. But upward communication is deliberately distorted. 5. Employees are usually reluctant to initiative upward communication. 2. it may adversely reflect on their own efficiency. It is the most frequently used channels of communication. 3. The managers might keep their doors open. Workers communicating with one another. Diagrammatical representation of horizontal communication 46 . Reports: Employees may be required to submit repatriates about the progress of their work a regular intervals. Employees often feel that if they communicate their problems to their superiors. Direct correspondence: Some times the manager may directly write to an employees and ask him to communicate with him. 4. 3. the managers should keep on encouraging them to come out of their shell and communicate freely. but they cannot force the employees to walk in to their problem. 6. workers become to bold. All communicate should be properly analyzed genuine grievances deserve to be immediately resolved. Counseling In some organization workers are encouraged to seek the counsel of their superiors on their personal problems. 2.

It follows no set lines. They are the leaders who control the grapevine. This includes the free flow of communication takes place allow freedom of expression there is immediate feed back and all doubts and misunderstanding are sorted out. GRAPEVINE So for we have been discussing the formal channels of communication which follow certain definite predetermined directions apart from them. 47 . it is thronged out through mutual consultation. When one of them come across any peace of information interesting enough to be transmitted to the grape vine in a very mysterious manner he whispers it to another exhorting him to keep the information secret. nor any definite rules. Scarcity of raw material may cause the production to slow down but the sales department may continue booking orders free flow of horizontal communication among various departments can easily avert the incidents of such situations. Formal channels tend to move managers status conscious so that they express their view in extremely measured items. Some managers discourage horizontal communication feeling that workers may get friendly with one another and may tops and insist on their unqualified acceptance. Face to face exchanges of views or a brief conversation over the telephone in very convenient for horizontal communication. Information on most of these matters is supposed to be secret. It is quite natural for to group of people working together to be entrusted in one another and talk about appointments promotions retrenchments or even domestic affairs like the estranged relation of an employee with his wife or the romantic involvements of another. They do not face any communication problem for the moment problem crops up. In a small organization these functions are concentrated the same person or in the few person who are stationed in close proximity to one another.Production Purchase Accounts Sales Public relations Administration IMPORTANCE OF HORIZONTAL COMMUNICATION Horizontal communication is extremely important for promoting understanding and coordinating among various departments. But in large organization with complex routines. METHODS OF HORIZONTAL COMMUNICATION Horizontal communication is most effectively carried on through oral means. they operates in every organization an informal channel of communication called the grapevine. But some people drive great pleasure from gathering such “secret” information ad transmitting it to others. a deliberate effort has to be made to maintain a free of horizontal communication. The purchasing department might keep on purchasing material which is neither immediately needed nor can be adequately stored. Not much imagination is needed to visualize he embracing situations that the lack of co-ordination might create for the organization. The stores may report shortage of material when production is fully given up. in any direction any where and spared fast. but spreads like the grapevine.

I The single strand chain involves the passing of information through a long line of persons to the H ultimate recipient. IMPORTANCE OF THE GRAPEVINE 1. Thus the workers may have one grapevine and the first line supervisors another.Keith davis rightly pointed out that the grapevine is more a product of the situation then it is of the person. HOW THE GRAPEVINES OPERATES Professor Keith davis who has done some research in the nature of grapevine or the informal channel of communication classifies in the four basic types: Single strand. In the gossip chain. In the cluster chain. but it certainly provides them emotional relief. and even diagonally. A feels selected persons who may in turn relay the information communication follows this chain. The probability chain is a random process in which a transmits the information to others in accordance with the law of probability and them these others tell still others in C A G D A K a ultra manner. till the information has reached most B E L of the persons concerned. TYPES OF INFORMAL CHANNELS OF COMMUNICATION CLUSTER B F J C A G I D E H 48 LESTRAND PROBABILITY . Since the grapevine does not follow any formal channel. Talking about them may not alleviate their fears. This chain may also be called random. E Safety value: F D B C J Apprehension experienced by workers on matters like promotion and retrenchments become an obsertion with them. This chain is just like the wheel where A is at the centre and the information passes along the spokes of the wheel to others stationed on the rim. Probability and Cluster. A actively seeks and tells every one. for it is only people working at the same level of hierarchy who can informally communicate with one another with prefect case. Gossi. A model if different forms of grapevines are depicted in the chart. nobody can held accumulate G F H for any thing GOSSIP he has said. But the fact is that the grapevine does not follow any set pattern and it can be effective horizontal. A tells B who tells C who tells D and son on. vertically. The grapevine is basically a channel of horizontal communication.

This twists helps him to express his personal emotions. The very facts that they talk among themselves helps to promote organizational solidarity and cohesion. 1. a person is quit free to give it any twists he likes. Thus the grapevine supplements others channel of communication. Organizational solidarity and cohesion : The existence of grapevine provides that the workers are interest in the associates.While relaying the information to another fellow. Incomplete information: The grapevine information is usually incomplete. It can be transmitted through the grapevine. If there is some useful information and suitable for being transmitted through officials channels. So here is lively likelihood of its being misunderstood or misinterpreted. This may be classified as (i) (ii) (iii) External Organizational. 2. Feed Back: The grapevine provide feed back to the management. It enable them to know what the subordinates think about the organization and its various activates Demerits of grapevine: 1. Personal factors. Thus the grapevine act as a kind of safety value for the dent up emotions of the subordinates. 4. 3. Distortion : One of the major drawbacks of the grapevine is that it may speed baseless or distorted news which may sometimes prove harmful even to the employees. Semantic barriers : 49 . Damaging swiftness: The swiftness with which the grapevine transmits information may even be damaging. 3. Supplement to other channels : All information cannot be transmitted to the employees through he official channels. BARRIERS IN COMMUNICATION Their might be a number of such barriers impeding the flow of communication in the organization. 2. Twice Transmission : The speed with which information is transmitted through the grapevine is just remarkable. EXTERNAL BARRIERS Barriers to communication may be either external to the parties involved or they might be internal to them. Properly used grapevine may even raise the morale of the workers. 5.

it is essential on the part of the management to overcome these barriers.Semantic barriers are obstruction caused in the process of receiving or understanding of the message during the process of encoding and decoding ideas and words. 50 . s communication is basically an inter – personal processes. Status relationships. 3. The meaning ascribed to a message depends upon the emotional or psychological status of both the parties involved. This policy should also specify the subject matter to be communicated. Organizational policy Organizational rules and regulations. 1. Undue reliance on the return word. Failure to communicate. Faulty translations Un-clarified Assumption. 4. Inattention Loss by transmission and poor retention. day-today happening within it require being regulated in such a manner that they contribute to attain these objectives in the most efficient manner. Complexity in organization structure Organizational facilities. a host of factors internal to the two parties-sender and receiver-to this process also exert important influences on its operation. Specialist’s language. 2. Emotional or psychological barriers Emotional or psychological factors are the prime barriers in inter-personal communication. Personal barriers : While the organizational factors discussed above are. Premature evaluation. Organizational barriers : An organization being a deliberate creations for the attainment of certain specified objectives. It is imperative that organizational policy must be clear explicit and encouraging the communication flow so that people at all levels realize the full significance of communication. Distrust of communicator. 2. METHODS OF OVERCOMING THE BARRIERS Considering the importance of effective communication in the successful functioning of business organizations. no doubt important influences operating on communication. Badly expressed message.

Though the communication through proper channel is essential for orderly flow of information. faulty organization. trust and confidence is essential for its promotion. encoding. Ideation. Communication provides employees both the skill to work and the will to work. 7. Communication being an inter-personal process. 51 . Organization should have adequate facilities for promoting communication.3. It may be formal and informal. poor retention. Thus communication may be defined as the process of passing information and understanding from one person to another. different backgrounds are called as barriers to effective communication. decoding and acting are some of important steps in communication process. restricting communication. receiving. 4. distrust of the communicator. the development of inter-personal relationship based on mutual respects. There should be continuous programme of evaluating the flow of communication in different directions. 6. Whether it is formal or informal it must be done in a proper manner to serve the purpose. transmission. 5. Badly expressed messages. Even person in the organization shares the responsibility of good communication.

KOONTZ & O’ DONNEL IMPORTANCE OF LEADERSHIP 1. Tact and skillful handling. 2. 6. Personal magnetism Enthusiasm. 2. Co-operation. Open mind. 3. 3. Scientific approach. Ability to inspire and integrate. Leadership is generally defined simply as the art of influencing people so that they will strive willingly towards the achievement of group goals. 4. Ability to inspire. Physical qualities Sound health to fulfill his obligation. III. Exerting Resourcefulness. 3. Ability to act in a manner that will develop a climate conducive to and arousing motivations. 6. 3. 4. 2. Basis for co-operation. Vitality and endurance to face al hardships. 4. 52 . 7. II. 1. High degree of intelligence. Intellectual traits 1. Ability to comprehend the temperaments of human beings. Driving force group efforts. 2. 5. 1. Psychological qualities. LEADERSHIP QUALITIES I. Capacity to deal with every situation. Sound judgment. 5. Best teacher.Lesson – 7 Leadership Leadership is an abstract quality in a human being to induce his followers to do whatever he is directed to do with the zeal and confidence. Aid to authority Better utilization of man power. INGREDIENTS OF LEADERSHIP Ability to use power effectively and in a responsible manner.

C. 2. 4. Such qualities are considered as god given and hence leaders are born. Achievement oriented leadership. TYPES OF LEADERSHIP From the point of view of authority. and division of work are clear and full understood by all. 3. It works well employees who have a low tolerance for ambiguity feel insecure freedom. APPROACHES TO STUDY OF LEADERSHIP : A. Integrity 2. 3. Merits: 1. AUTOCRATIC LEADERSHIP The leader alone determines policies and makes plans. Chain of command. Leader behavior may be grouped into four : 1. save time and get good result. Thus. Instrumental leadership. Supportive leadership. Participative leadership. with 53 . Self discipline 3. 5. Path goal theory: It suggests that the main functions of the leader is to clarify and set goals with subordinates the them find the best path for achieving the goals and remove obstacles. 2. D. It can increases the efficiency. Personal Trait Approach This approach says that all of us are possessing certain abilities and share responsibilities. Willingness to accept and share responsibilities.IV. Group approach : A leader is one who comes attuned to he feelings and actins of people whom he is supposed to lead. Qualities of character 1. He demands strict obedience and relies on power. Situational / Contingency approach : (Fielder’s model) : This is viewing that leadership qualities are determined by the situation in which he/she operates. B. Willingness to work hard. the leader is one who comes closest to living up to the norms and standards of his group. Good natured 4. It is not individuals characteristics. leadership can be autocratic and democratic or free rein.

suggestions and talents of his people. DEMOCRATIC LEADERSHIP The entire group is involved in and accepts responsibility for goal setting and achievement. low morale and low productivity. Free rein leadership : Leader exercises absolutely no control. 3. Individual decision making may be dangerous in the changing environment. Resentment in form of massive resistance. Merits : 1. Subordinates have considerable freedom of action. This type does not hold good when the leader does not know well the competence and integrity of his people and their ability to handle this kind of freedom Spectrum of Leadership Styles : Leader centered [Autocratic] Participative [Democratic] Employee centered [Laissez faire] Area of freedom permitted to subordinates 1 2 3 4 5 6 7 54 . One – way communication may create costly errors. ideas. 2. The leader has the built-in personal motivation working for him. materials and facilities to hi men to enable them to accomplish group objectives. He provides only information.Demerits : 1. Leaders may avoid responsibility. The leader consistently receives the benefit of the best information. 2. Demerits : 1. Time consuming. This style permits and encourages people to develop grow and rise in the organization. 2.

They care about more for the welfare of their subordinates than for production. and satisfying inter-personal relations. The different scales in the spectrum describe the following : Point 1 : Leader makes decision and announces it.9 . Some styles emphasize on concern for production which means that the attitudes of superiors towards a variety of things. The right side of the spectrum denotes that the leadership style employee centered. Point 5: Present the problem. gets opinion and makes decision. It explains that whatever may be the type of leadership styles it ultimately relates with tasks to e performed and people with whom it is to be performed. responsibility based on trust. such as. MANAGERIAL GRID It is a form of continuum which emphasize that leadership style consist of factors of both the task-oriented and people relations oriented behavior in variying degrees. Based on these two factors leadership styles can be identified n to 5 types as given in the diagram. quality of staff service. 1. Point 3: Leader presents his idea and initiate discussion. Point 6: Leader allows the group to make decision within limits.9 9 8 7 6 5 4 55 5. quality of policy decisions. procedures and processes.5 9. Such leaders are more care about production than for the welfare of his subordinates. Point 4: Presents tentative decision subject to change. creativeness of research. Point 2: Making the subordinate to accept the decision. On the other hand there are certain leadership styles which emphasize on concern for people which means that degree of personal commitment towards goal achievement. Point 7: Leader allows the group to make decision within limits defined the situation. maintaining the self-esteem of workers. The left side of the spectrum emphasizes that his style is leader centered.This spectrum depicts that a leader can adopt number of ways to relate himself with a group. The centre of the spectrum finds a more equitable balance between the authority exercised by the leader and the amount of participation the grotto exercise. work efficiency and volume of output.

3 2 1 1. Among the five different styles.9 leadership style.1 9. expert. leadership may be defined as the ability to influence and direct the task-related activities of the members of group. 1. 9. To summarize. There are three approaches to the study of leader ship such as. A leader is a goal-setter. Managerial gird helps the managers to identify and classify managerial styles and it helps to understand why he gets the reaction that he does from his subordinates. 56 .9. executive. administrator of rewards and punishments and a symbol of the group. Behavioral approach and Contingency approach. The trans approach. In that Behavioral approach has emphasized different leadership styles. Team model style which highlights that work accomplished is from committed people with interdependence through a common stake in organization purpose and with trust and respect.e. the mid point of the grid i. group representative.5 is highly emphasized in the pure form of working conditions.1 Impoverished style where exertion of minimum effort is require get work done and sustain organization morale.1 6 7 8 9 High Concern for Production This managerial grid concept has been developed by Blame and Mour The 5 styles depicted by the diagram are : 1. Middle Road style rightly pointed out that adequate performance through balance of work requirements and maintaining satisfactory morale. 5.5 Task oriented style which says that efficiency results from arranging work in such a way that human elements have little effect.9 Country club style where thoughtful attention to needs of people leads to friendly and comfortable organization atmosphere and work tempo.9 5. So efforts have to be taken by developing suitable training programs that attempts to change managers towards 9. However. the most desirable leader behaviour is 9. planner.1 1 2 Low 3 4 5 9.

It refers to establishment or relationship with a view to coordinate the activity of those who are not part of the organization. It may be defined as balancing and keeping the teams together by ensuring a suitable allocation of working activities to the various members and seeing that they are performed with due harmony among the members themselves. NEED FOR COORDINATION • • • • • • Systematic sequence of operation Fulfillment of activities as per planned schedules Avoidance of interruptions in the operations Eliminating inconsistencies in objectives and policies Removal of conflicts among individuals Developing the team spirit and cooperation. ADVANTAGES OF CO-OPERATION 1. Improve the morale of the employees Develop and retain good personnel TYPES OF CO-ORDINATION 1. synchronization or orderly pattern of group efforts in the enterprise towards the accomplishment of objectives. It is the establishment of relationship with a view to coordinate the employees of all the departments. economizing the activities etc. Time schedule 57 . Increases in the productivity. 2.LESSON – 8 CO-ORDINATION It is the integration. 2. Balancing Timing Support. Internal co-ordination. It may be vertical or horizontal. 3. Eternal Co-ordination. 2. 3. 4. Increases the efficiency. timing and integrating. Early beginning Direct contact Reciprocity Continuity TECHNIQUES OF COORDINATION “A manager in managing must coordinate the work for which he is accountable by balancing. PRINCIPLES OF COORDINATION 1.

Integrating - Unification PROBLEMS OF COORDINATION Complex organizational structure Improper communication Higher labour turnover Lack of motivation and morale Favoritism Red-tapism Improper leadership Weak public relations 58 .

4. 59 . with a view to ensuring adequate progress and satisfactory performance. Policy verification Various policies in the organization generate the need for control. the instructions issued and principles established. Controlling consists in verifying whether everything occurs inconformity with the plan adopted. applying corrected measures so that the performance takes place according to plan. Thus control process tries to find out deviations between planned performance and actual performance and to suggest corrective action wherever these are needed.LESSON – 9 CONTROL SYSTEM AND PROCESS CONTROLLING Control is any process that guide activity towards some predetermined goals. distribution control pollution control etc. Managerial responsibility In every organization. This process starts at the top level and goes to the lower levels. Control is forward looking Control is both executive process and from the point of view of the organization of the system. Every organization has certain objectives to achieve which become the basis for control. if necessary. 2. 2. For organizational functioning. Thus control can be applied is n any field such as price control. 1. 1. A control system is a coordinated – integrated system. managers set certain policies and other planning elements which later become the basis and reason for control. that is evaluating the performance and. managerial responsibility is created through assignment of activities to various individuals. 3. For example terry has defined control as follows : “controlling is determining what is being accomplish. IMPORTANCE OF CONTROL Thus control is an integrated action of an organization or manager. a result Control is a continuous process. It offers help in the following directions. Control is checking event performance against pre-determined standards contained in the plans. Adjustment in operations A control system acts as an adjustment in organizational operations. 3. Its object is to point but weakness and errors in order to rectify them and prevent recurrence.

1. motivating them for higher performance. STEPS IN CONTROLLING The various steps in control process which are necessary for its relationship to planning. This steps may broadly be classified into four parts. The step involves measuring the performance in respect of a work in terms of control standards. control. objectives or targets to be achieved. and achieving coordination in their performance. making managers responsible. Psychological pressure Control process puts a psychological pressure on the individuals for the better performance. namely.4. Coordination in action Control system area designed n such a way that they focus not only on the operating responsibility of a manager but also on his ultimate responsibility. In the light of these standards are established which are criteria against which actual results are measured. Organizational efficiency and effectiveness Proper control ensures organizational efficient and effectiveness various factors of control. 2. 4. 60 . 6. 3. This forces a manager to co-ordinate the activities of his subordinate in such a way that each of them contributes positively towards the objectives of the superior. 5. The performance of the individuals is evaluated in the light of targets set for them. (1) Establishment of control standards Measurement of performance Comparison between performance and standards and the communication and Correction of deviations from standards Establishment of control standards Every function in the organizations begins with plans which are goals. (3) Comparing Actual and Standard Performance The third major step in control process is the comparison of actual and standard performance. ensures that their organization works efficiently. It involves two steps finding out the extent of deviations and identifying the causes of such deviations. (2) Measurement of performance The second major step in control process is the measurement of performance.

(4) Correction of deviations This is the last step in the control process which requires that actins should be taken to maintain the desired degree of control in the system or operation. therefore. 61 . Flexible Control system should be flexible so that it remains workable in the case of changed plans. 4. Economical Control should be economical and must be worth its costs. 7. All control systems and techniques should reflect the jobs they are to perform. Promptness in Reporting Deviations The success of a thermostat lies in the fact that it points the deviation promptly and takes corrective actions immediately. 5. unforeseen circumstances or failures. Objectives : The control should be objective. definite and determinable in a clear and positive way. ESSENTIALS OF EFFECTIVE CONTROL SYSTEM Control is necessary in every organization to ensure that everything is going properly. 2. Every manager. 3. the size of the operation the expense that might be incurred in the absence of control and the contribution the control system can make. there are certain requirements which should be kept in mind. should have an effective and adequate control system to assist him in making sure that events conform to plans. Pointing out Exceptions at Critical points : Control should point exception at critical points and suggest whether action is to be taken for deviations or not. Reflecting Organizational Needs . Forward Looking : Control should be forward looking. 6. In this tailoring of control system. Though many of the controls are instance. Economy is relative since the benefits vary with the importance of the activity. they must focus attention as to how future actions can be conformed with plans. 1.

Feed back loop of management control Desired performance Implementation of corrections Actual performance Programme corrective action of Measurement performance of Analysis of causes Comparison Performance of Identification deviations. Motivating : Control system should motivate both controller and controlled 10. of TECHNIQUES OF CONTROL 62 . 9. Simple Control system must be simple and understandable so that all managers can use it effectively.8. Reflecting Organizational Pattern: The control should reflect organizational pattern by focusing attention on positions in organization structure through which deviations are corrected.

A manager can also exercise effective control over his subordinates by observing them while they are engaging in work. It involves a comparison of actual with the standards and the discrepancy is called variance. The liquidity. Break-even analysis is useful in planning and control because it emphasize the marginal cost and benefit concept. Financial statement analysis such as Found Flow analysis. They are broadly grouped under two heads. labour budget etc. Reports may be prepared regarding taxation. 1. managers can use variety f tools and techniques. 63 . profitability and solvency position of the business unit can be ascertained and efforts can be taken to maintain these factors in an optimum proportion. break-even analysis and report writing etc. Auditing is the process of investigating financial and other operation of a business establishment. procedure and method which have a tendency to become obsolete. clearly indicate the limits for expenses and also the results to be achieved in a given period. financial statement and ratio analysis. Traditional techniques are those which have long been used by the managers. level of output and sales mix to the profitability of the organization. if necessary. variable cost. auditing. legislation and its effect on profit. price. 2. Personal observation helps the managers not only in knowing the workers attitude towards work but also n correcting their work and method. Adoption of reporting system helps to analyse a particular problem and to take necessary corrective action over it.” GEORGE R TERRY The different budgets such as production budget. It may be carried out by internal and external members.To control the activities in the organization. It promotes co-operation and team spirit among the employees Standard Costing is one of the techniques of cost control and it is being increasingly used by modern business concerns for the purpose of cost reduction and cost control. This it helps in choosing a suitable working procedures and methods. sales budget. It helps to scrutinizes the applicability and relevance of policy. Modern techniques. overhead budget. Cash Flow analysis and Ratio analysis help to know the financial performance and financial position of the business unit. make or buy decisions. “Budgetary control is a process of comparing the actual results with the corresponding budgeting data in order to approve accomplishments or to remedy differences by either adjusting the budget estimates or correcting the cause of the difference. Traditional techniques. ascertaining turnover for desire profit and estimating the impact of the variations of fixed and variable costs. Some of the important techniques under this heads are budgetary control. It ensures effective co-ordination of the work of the entire organization. replacement f capital equipment. It magnifies a set of relationships of fixed costs. social pricing analysis etc. It helps to make profit estimation at the different levels of activity.

It is helpful in solving problems of scheduling the activities of on-time projects. CPM has been jointly developed by DUPoint and Remington Rand USA in order to facilitate the control of large. To evaluate the management achievement. It aims to have future oriented control mechanism for the organization.MODERN TECHNIQUES These are of recent origin. MIS is a refined form of traditional information collection and supply to the organization points. procedures. Lac of knowledge. 5. in right form which aids his understanding and stimulate his action. These techniques help to give sharper focus and promise increasingly to improve the quality of control. These techniques are used to minimize total time. Management Audit is an evaluation of management as a whole. 3. minimize to cost. directing and controlling. quality Stores function performance Overall organizational objective performance. 2. the organization plans. scheduling ship construction etc. developed by an U. Office in 1958 in connection with the Polaris Weapon System and is credited with reduction the completion time of the program by two years. complex industrial projects. 2. which provide information not readily available with traditional methods. staffing. Budgetary control Cost control Production control Inventory control Profit & Loss Control ROL control External audit control Management self audit Financial performance Cost performance PERT CPM Production. Management Information System provides needed information to each manager at the right time. experience or judgment Questionable assumptions underlying direct control Assumption that that performance can be measured Assumption that personal responsibility exists Assumption that time expenditure if warranted 64 . minimize idle resources etc. 6. system of control personnel relation should be measure with its end results. Cause of negative Deviations from standards. organization structure. 7. PERT has been. policies.S. These tools re widely being used in construction industry. performance. planning and launching a new projects. Un certain. It ensures improved management of resources by facilitating better decision making. 1. Program Evaluation Review Technique (PERT) and Critical Path Method (CPM) are two major techniques coming under this head. Statutory performance - DIRECT CONTROL VERSUS PREVENTIVE CONTROL DIRECT CONTROL: 1. It examine the total managerial process of planning. 4.

Advantages : 1.Assumption that mistake can be discovered in time Assumption that the person responsible will take. to uncover deviations and to indicate corrective action. The goals and sub-goals at all management levels must them be set out. PREVENTIVE CONTROL Assumption : Qualified managers make a minimum of errors. MANAGEMENT BY OBJECTIVES It is a process whereby the superior and subordinate managers of an enterprise jointly identify its common goals. It is mainly used to measure progress. 3. Adjustment in the organization structure. 2. define each individual’s major areas of responsibility in terms of the results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members. The goals to be set at all levels must be joint and agreed ones. GEORGE S. ODIORNE MBO is comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and objective. Management fundamental can e used to measure performance Application of management fundamentals can be evaluated. 4. 65 . MBO PROCESS Step – 1: Step – 2: Step – 3: Step – 4 : Step – 5: Set down informally the goals of the enterprise. Greater accuracy Encourage self control Lighten the managerial burden Impressive Thus control is a very important process through which managers ensure that actual activities confirm to planned activities. Objective the goal so set out and define measures of performance. Corrective steps.

Improvement of managing Clarification of organization. 3. Appraisal of results proceed continuously against the goals at all levels.E. Difficulty of setting goals Emphasis on short-term goals Danger of inflexibility Other dangers.B. 3. Encouragement of personal commitment Development of effective controls. 2.Step – 6: Step – 7: Step – 8: Continuous feedback from appraisal of internal Goals and the enterprise goal as it is set. 5. 6. WEAKNESS OF MBO 1. 4. 4. 6. Failure to teach the philosophy of MBO Failure to give guidelines to goal setters. 5. The primary purpose of such a system is to simplify the management process itself. MANAGEMENT BY EXCEPTION (M. ELEMENTS OF MBE The MBE system’s structure is constituted by the following elements 1. it remains silent when his attention is not required. BENEFITS OF MBO 1. Prescribes the action that must be fallen in order (i) Bring performance back into control 66 . 4. 2. Review of sub-results throws light on organization results. follow progress towards its objectives to know current state of performance. 3. Measurement Projection Selection Observation Comparison Decision making by assigning values to performance towards business objective & expectations.) It is a system of identification and communication that signals the manager when his attention is needed: conversely. actual with expected and identify the exceptions. 2. It permits the manager to find the problems that need his action and to avoid dealing with these the are better handled by his subordinates.

Stimulates communication between different segments of an organization. 2. 4. delegation or responsibility and authority and span of control. 11. Delegate for result. 67 . 6. 4. 9. 12. 13. Provides qualitative and quantitative yardsticks for judging situations and people. 10. 5. 3. 2. 8. Encourages more comprehensive knowledge of all phases of business operations. 7. Alerts management to opportunity as well as difficulties. Practice of Self-control Discard pre-conceived notions. PRINCIPLES OF MBE The make the MBE system effective the following principles may be followed. Makes fuller use of knowledge of trends history and available business data. It tends to proliferate paper work It often assumes an un relational stability in business affairs. Fully utilizes highly paid people on high-return work. Merits The practice of MBE in management yields benefit in the following way : 1. It rewires a comprehensive observing and reporting system. 9. 3. Identify crises and critical problems. 3.(ii) Adjust expectations to reflect changing conditions (iii) Exploit opportunity It is also deeply rooted in the principles of the decision of labour. 5. It save personal time Concentrative executive effort Reduces distortions Facilitates broader management coverage Lessens frequency of decision making. Enables inexperienced managers to handle new assignments with a minimum of related experience and training. 8. 6. 7. Some critical business factors are difficult to measure It can’t be a substitute for thinking. Standard of comparison tend to become obsolete. Be guided by policy Learn to live with accountants. It breeds organization man thinking It is often dependent upon unbelievable data. 4. 5. 1. It gives false sense of security to management. 2. Demerits : Peter Druker’s critically viewed MBE as follows : 1.

Sharpen your observational power Use MBE to describe subordinates in different phases. 68 . 7.6. 9. 11. 12. 13. 8. 10. Invite enough participation Expect some people to call you lazy Differentiate between “Big” and “Little” jobs Don’t be an “Over-the-Shoulder” supervisor Avoid the “organization – man” attitude Expect to work harder but to enjoy it more.

Discuss the significance of leadership as an integral part of management. (4 X 15 = 60) (Max : 100 Marks) (5 X 8 = 40) 69 . 3. Explain different leadership styles. What do you mean by Management Control? Explain the Control process is an organization. Explain the Characteristics of management as profession? What do you mean by planning premises and how it can be made effectively? What do you mean by Span of Management? Distinguish between “Delegation” and Decentralization”? Discuss the principles of effective directing? What is Group Dynamics? What is managerial Grid? Part – B Answer ay 4 Questions 1. 2. 5. Are Management and administration different? Explain. 8. 7. 2. 4. Define Communication and describe the important steps is a communication process Explain the principal barriers to communication. 6. Discuss the merits and demerits of different types of organizational structure. 5. 4. 3.MODEL QUESTION PAPER Time : 3 Hours Part – A Answer any 5 questions 1. Explain the significance of different approaches of management in management theory.

14.B.A (S) DEGREE EXAMINATION. 11. What do you mean by programmed and non-programmed decisions? What are the characteristics of organization? What are the techniques of direction? Explain the different levels of management? What are the problems of co-ordination? What are the different types of planning Explain the functions of management? Explain the significance of planning? What are the barriers to communication? How can one overcome them? Explain Herzberg’s Motivation-Hygiene theory? Write in short the different steps in control process? Explain the principles of direction? What are the different types of co-ordination and explain any two of them in detail? B. 9. 3. 8. 15. 6. 12. 4. 13. 7.B. MAY 2008 / 13 PRINCIPLES OF MANAGEMENT Time : Three hours Maximum : 100 Marks 70 . 2. MAY 2007 / 13 PRINCIPLES OF MANAGEMENT Time : Three hours Maximum : 100 Marks Section A – (5 x 8 = 40 marks) Answer any FIVE questions.A (S) DEGREE EXAMINATION. the differences between formal organization and informal organization. All questions carry equal marks. Explain the nature of management? Discuss in detail. 10.B. 1. 5.

All questions carry equal marks.Scientific principles represents basic truth about a particular field of enquiry. Define Management-State the importance of Management? Explain different types of decision? What is planning? Explain in the nature of planning? Explain span of control? Define Authority and Responsibility? What is meant by motivation? What are the non-monetary factors of motivation? What are the qualities of good leadership? Explain the need for control? SECTION B – (4 x 15 = 60 marks) Answer any FOUR questions. Discuss the various steps to be followed in planning? 11. E. This principle is applicable to all type of organization . 7. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. 4. one man. Explain the principles of co-ordination and techniques to be used for effective co-ordination? 15. 71 . at all time & at all places. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i. one boss.g. 2.business or non business. What are the barriers to effective communication? How to overcome the barriers to communication? 12.e. 9. 6. Explain Maslow’s theory of motivation? 13. What is control? What are its steps? What are the techniques of control? Management as a Science Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon.law of gravitation which can be applied in all countries irrespective of the time. Universally acceptance principles . 8.Section A – (5 x 8 = 40 marks) Answer any FIVE questions. 3. . These principles may be applied in all situations. Explain different theories of Leadership? 14. 1. 5. These principles are developed through scientific method of observation and verification through testing. Science is characterized by following main features: 1. Explain the modern approaches of Management? 10. All questions carry equal marks.

g. Every manager has his own way of managing things based on his knowledge. The same is true for management. that is why some managers are known as good managers (like Aditya Birla. E.g.one having single boss and one having 2 bosses. 2.g. material. Art has the following characters - 1. Rahul Bajaj) whereas others as bad. in effectiveness. Similarly if workers are given bonuses. Test of Validity & Predictability . E. reduces productivity of organization. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient.Scientific principles are derived through scientific investigation & researching i. experience and personality. 3. they are based on logic. Personal Skill: Although theoretical base may be same for every artist. That is why the level of success and quality of performance differs from one person to another. In the same manner. It combines human and non-human resources in useful way so as to achieve desired results.g. when metals are heated. Moreover future events can be predicted with reasonable accuracy by using scientific principles. Perfection through practice: Practice makes a man perfect. they stand the test of time. It tries to produce sweet music by combining chords in an efficient manner. Cause & Effect Relationship . They have been developed through experiments & practical experiences of large no. E. Management as both Science and Art Management is both an art and a science. management is also directed towards accomplishment of pre-determined goals. Experimentation & Observation .e. of managers. 4. Management as an Art Art implies application of knowledge & skill to trying about desired results.Principles of science lay down cause and effect relationship between various variables.e. they are expanded. situations etc to use them appropriately. money. E.2. E. we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with moulding the attitude and behavior of people at work towards desired goals.F.e. 5. Principles of management can also be tested for validity. Hussain is recognized for his style. there are several qualified painters but M. The cause is heating & result is expansion. Every artist becomes more and more proficient through constant practice. lack of balance. the principle that earth goes round the sun has been scientifically proved. An art may be defined as personalized application of general theoretical principles for achieving best possible results.e. Science provides the knowledge & art deals with the application of knowledge and skills. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. therefore it also establishes cause and effect relationship. A manager can never be successful just by obtaining degree or diploma in management. If you know the cause i. Management is also creative in nature like any other art. principle of unity of command can be tested by comparing two persons . to become a good painter. 4. 72 . it is observed that fair remuneration to personal helps in creating a satisfied work force. the person may not only be knowing different colour and brushes but different designs. It is called an art because managing requires certain skills which are personal possessions of managers. he must have also know how to apply various principles in real situations by functioning in capacity of manager. but each one has his own style and approach towards his job. machinery & methods to promote growth of an organization. 3.g.g.g. The performance of 1st person will be better than 2nd. H2 & O2 will always give H2O. dimensions.Validity of scientific principles can be tested at any time or any number of times i. the effect can be ascertained easily i. Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. The above mentioned points clearly reveals that management combines features of both science as well as art. E. E. Managers use various resources like men. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. It is very important to know practical application of theoretical principles. fair wages they will work hard but when not treated in fair and just manner. Similarly management as an art is also personalized. Thus.g. E. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. Creativity: Every artist has an element of creativity in line. Each time these tests will give same result. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results.

bread and butter etc. Management: Its decisions are influenced by the values. Nature of status Administration:It consists of owners who invest capital in and receive profits from an enterprise. It has been aptly remarked that management is the oldest of art and youngest of science. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Management: It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise. Decision making Administration:Its decisions are influenced by public opinion. science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit. government policies. Management: It is used in business enterprises. military.). Science teaches to ’know’ and art teaches to ’do’. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why. 73 . Management: It is a middle level activity. These are as follows: Nature of work Administration: It is concerned about the determination of objectives and major policies of an organization. To conclude. and religious organizations. Scope Administration:It takes major decisions of an enterprise as a whole. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing.A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Management: It is an executive function. social. and religious factors. Type of function Administration:It is a determinative function. educational. E.g. Management: It takes decisions within the framework set by the administration. The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. Nature of usage Administration:It is popular with government. and beliefs of the managers. Management: It puts into action the policies and plans laid down by the administration. Level of authority Administration:It is a top-level activity. we can say that science is the root and art is the fruit. Difference between Administration /Management There are many factors according to which administration can be distinguished from management. opinions.

which is set up by the administration. In administration. religious and educational organizations. Management consists of a group of managerial persons. Administration is the top level. Administration handles the buisness aspects such as finance. so far as management is concerned. whereas management makes the decisions within the confines of the framework. whereas management decisions are shaped by the values. Administration has to do with the setting up of objectives and crucial policies of every organization. military. Management is used by business enterprises. opinions and beliefs of the mangers. and receive profits from an organization. Management vs Administration Management and administration may seem the same. however.Main functions Administration:Planning and organizing functions are involved in it. If one were to decide the status. Abilities Administration:It needs administrative rather than technical abilities. it involves motivating and controlling 74 . while management is an executive function. government policies. It also follows that administration makes the important decisions of an enterprise in its entirety. one would find that it consists of owners who invest the capital. and social and religious factors. whereas. the planning and organizing of functions are the key factors. Administrators are usually found in government. Administration is a determinative function. The decisions of an administration are shaped by public opinion. is the act or function of putting into practice the policies and plans decided upon by the administration. who leverage their specialist skills to fulfill the objectives of an organization. but there are differences between the two. whereas management is a middle level activity. What is understood by management. or position of administration. Management: Motivating and controlling functions are involved in it. Management: It requires technical activities Management handles the employers.

rather than technical qualities. is used by business enterprises. which has to do with the technical and mundane facets of an organization’s operation. Administrators are mainly found in government. religious and educational organizations. Management. It may be defined as a system of efficiently organizing people and resources. Both these functions are crucial. In management. technical abilities and human relation management abilities are crucial. military. Administration usually handles the business aspects. Management is the act or function of putting into practice the policies and plans decided upon by the administration. 2. Summary: 1. in their own ways. Administration is perhaps both an art and a science.functions. Administration must incorporate both leadership and vision. Management deals with the employees. one needs administrative qualities. Therefore. such as finance . which is set up by the administration. When it comes to the type of abilities required by an administrator. 3. and exercises control over the finance and licensing of an organization. while management is an executive function. each with their own set of functions. Administration is above management. Administration makes the important decisions of an enterprise in its entirety. This is because administrators are ultimately judged by their performance. whereas management makes the decisions within the confines of the framework. so as to make them successfully pursue and achieve common goals and objectives. we can see that these two terms are distinct from one another. Administration is a determinative function. on the other hand. to the growth of an organization. 4. Management is really a subset of administration. It is different from executive or strategic work. 75 .