MANAGEMENT

SCIENCE
MANAGEMENT
• Definitions:
• “Management is the process of managing people, which involves getting
things done through and with others
• - Zene K.Quible -
• “To manage is to forecast and to plan, to organize, to command, to
coordinate and to control”
– Henry Fayol -
• “Management is simply the process of decision-making and control over
the actions of human beings for the express purpose of attaining
predetermined goals is called Management”
- Stanley
Vance -
• “Management is a distinct process consisting of planning, organizing,
actuating and controlling, utilizing in both science or arts and followed in
order to accomplish predetermined objectives” is called a a
Management.
MANAGEMENT AS
SCIENCE:
• Science explains phenomenon based upon experimentation, it
includes truths, and set of principles known as theory.
• Science is a systematized body of knowledge developed systematically,
based on observation, measurement, and experimentation and
drawing inferences based on data.
• It is useful for to maintain relationship and to follow scientific
principles.
Role of Management:
• It serves to identify a great need of our time; to improve standards of
living for all people through effective utilization of human and material
resources.
• Technological advancements, levels of production, capital investment
and other tangible elements have been emphasized as contributory
factors towards economic growth, rather than managerial skills.
Functions of Management:
• The following eight functions may be used to describe the job of
management.
• Planning
• Organizing
• Staffing
• Directing
• Coordinating
• Reporting
• Budgeting
• Among these functions planning, organizing, staffing, directing,
controlling are primary functions of management.
Planning
• Planning is the first and base component of management. It involves
recognizing the organization’s goals and developing strategies to
achieve these goals. This is called strategy planning. These strategies
may have to be altered or completely changed constantly based on the
macro and micro factors affecting an organization.
Organizing
• Organizing is an important responsibility of a manager. A manager’s
organizational responsibilities include organizing the resources of an
organization, identifying different roles, choosing the right people for
these roles, delegating tasks to people, etc. Inefficient
organization can lead to chaos in the company.
Staffing:
• Staffing is filling and keeping filled with qualified people all positions
in the business. Recruiting, hiring, training, evaluating and
compensating are the specific activities included in the function.
• Staffing is the process by which managers select, train, promote and
retire their subordinates.
• Staffing involves the developing and placing of qualified people in the
various jobs in the organization.
Directing:
• Directing is influencing people's behavior through motivation,
communication, group dynamics, leadership and discipline.
• Directing is guiding people in the organization through the means of
counseling, instructing, motivating and various other modes of
communication.
• Directing is the process by which actual performance of subordinates
is guided towards common goals of the enterprise.
• Directing involves motivating, guiding and supervising subordinates
towards company objectives.
Coordinating:
• Coordinating means achieving harmony of individual effort towards
the accomplishment of company objectives.
Controlling:
• Controlling is the sum total of process which ensures all the plans are
executed and implemented in the desired way.
• Controlling is a four-step process of establishing performance
standards based on the firm's objectives, measuring and reporting
actual performance, comparing the two, and taking corrective or
preventive action as necessary.
• Controlling is necessary to ensure that orders are not misunderstood,
rules are not violated and objectives have not been unknowingly
shifted. Control means control of person and other things.
HENRI FAYOL’s 14
Principles of Management:
• Division of Work
• Authority & Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of individual interests to the general interests
• Remuneration
• Centralization
• Scalar Chain
• Order
• Equity
• Stability of Tenure
• Initiative
• Espirit De Corps
Social Responsibility and
ethics:
• Meaning:
• Social responsibility means the obligation or responsibility of business
to act in a manner which will serve the best interest of the society. It
relates to the voluntary efforts if businessmen towards the
betterment of the society.
• Long-term interest of business
• Public Image
• Avoidance at Government Regulations
• Moral justification
• Consumer’s awareness
Responsibility towards
Investors:
• A fair and adequate rate of return on their capital.
• Capital appreciation in the value of investment.
• Safety of capital contributed by them.
• Respect their requests, suggestions, etc.
• A timely payment of their dues.
Responsibility towards
employees:
• Fair remuneration to employees in terms of wages and salaries
• Retirement benefits like gratuity, pension
• Security of job
• Job satisfaction
• Continuity of service
• Grievance settlement process.
Responsibility towards
consumers:
• Supplying goods and services which suit the needs of the consumers.
• Supplying goods of right quality
• Supplying goods at reasonale prices.
• Attending to the grievances of consumers promptly and with courtesy
• Ensuring regular and adequate supply.
Responsibility towards
government:
• Taxes
• Partnership with the government
• Responsibility towards community
• To prevent environmental pollution and to preserve the ecological
balance.
• Giving jobs to the local people
• Contribute to causes such as promotion of education and literacy
Systems Approach:
• Definition:
A system may be defined “As an orderly grouping of separate but
interdependent components for the purpose of attaining some
predetermined objective”. This definition leads to three important
aspects.
DECISION MAKING
PROCESS:
Designing Organizational
Structure:
• An organization is a social entity that has a collective goal and is
linked to an external environment. It is the collection of organs of
scientific methods and artifacts of the al matter.
ORGANIZATION
• Def:
• An Organization has been defined by as "a system of structural
interpersonal relationships. In it, individuals are differentiated in terms of
authority, status and roles with the result that personal interaction is
prescribed, and anticipated reactions between individuals tend to occur while
ambiguity and spontaneity are decreased".
• E. F. L. Breach -
• Organization is "the process of identification and grouping the work to be
performed, defining and delegating responsibility and authority and
establishing relationships for the purpose of enabling people to work most
effectively together in accomplishing objectives".
• Louis A. Allen -
• Organization as "the form of every human association for attainment of a
common purpose".
• James Mooney –
two types of organizations
• Formal Organization
• Informal Organization
Line Organization:
• In the line Organization, the line of authority moves directly from the
top level to the lowest level in a step-by-step manner.
• The top-level management takes all major decisions and issues
directions for actual execution.
• The responsibility moves in the upward direction.
Line Organization:
Advantages:
• Simplicity
• Prompt decisions
• Discipline
• Economical
• Attraction to talented persons
• Quick communication
Limitations:
• Heavy burden on line executives
• Non-availability of services of experts:
• Favoritism
• Too much dependence on limited
• Naturally, the success and stability of the entire organisation depends
on their personal skill, initiative and interest
• Rigidity
• Delays in communication, limited freedom to employees and
unsuitability to modern large business units are some more demerits
of line Organisation.
Line & Staff Organizations:
Features of Line and Staff
Organization:
• There are two types of staff :
• Staff Assistants
• Staff Supervisor
• Line and Staff Organization is a compromise of line organization
• Division of work and specialization takes place in line and staff
organization.
• The whole organization is divided into different functional areas to which
staff specialists are attached.
• Efficiency can be achieved through the features of specialization.
• There are two lines of authority which flow at one time in a concern :
• Line Authority
• Staff Authority
• Power of command remains with the line executive and staff serves only
as counselors.
Merits:
• Relief to line of executives
• Expert advice
• Benefit of Specialization
• Better co-ordination
• Benefits of Research and Development
• Training
• Balanced decisions
• Unity of action
Demerits:
• Lack of understanding
• Lack of sound advice
• Line and staff conflicts
• Costly
• Assumption of authority
• Staff steals the show
FUNCTIONAL
ORGANIZATION:
• Functional organization has been divided to put the specialists in
the top position throughout the enterprise. This is an organization in
which we can define as a system in which functional department are
created to deal with the problems of business at various levels.
Features of Functional
Organization
• The entire organizational activities are divided into specific functions
• Complex form of administrative organization compared to the other
two.
• Three authorities exist- Line, staff and function.
• Each functional area is put under the charge of functional specialists
and he has got the authority to give all decisions regarding the
function whenever the function is performed throughout the
enterprise.
• Principle of unity of command does not apply to such organization as
it is present in line organization.
Merits:
• Specialization
• Effective Control
• Efficiency
• Economy
• Expansion
Demerits:
• Confusion
• Lack of Co- ordination
• Difficulty in fixing responsibility
• Conflicts
• Costly
MATRIX ORGANIZATION
• An organizational structure that facilitates the horizontal flow of skills
and information. It is used mainly in the management of large projects
or product development processes, drawing employees from different
functional disciplines for assignment to a team without removing them
from their respective positions.
MATRIX ORGANIZATION
Advantages:
• The advantages of a matrix include:
• Individuals can be chosen according to the needs of the project.
• The use of a project team that is dynamic and able to view problems
in a different way as specialists have been brought together in a new
environment.
• Project managers are directly responsible for completing the project
within a specific deadline and budget.
Disadvantages:
• A conflict of loyalty between line managers and project managers over
the allocation of resources.
• Projects can be difficult to monitor if teams have a lot of
independence.