MANAGEMENT

Management is the art of knowing what you want to do and then seeing that they do it in the best and the cheapest may.
Nature/Characteristics of Management
1. Management is Universal Activity: Management is universal in nature. All the organizations irrespective of their nature,
type, size and purpose management is required, for managing their activities. It is performed in small, medium and big
organisation as well.
2. Goal Oriented: Every organization is set up with a predetermined objective and management helps in reaching those goals
timely, and smoothly. All the activities of the management are directed towards achieving the objectives of the organisation.
3. Management is a Continuous Process: Management is a continuous or never-ending function. All the functions of
management are performed continuously, for example planning, organising, staffing, directing and controlling are performed
by all the managers all the time
4. Management is Human Activity: Management is a human activity. It can be accomplished only by and through human
beings. Management is added by computers but cannot be replaced by the computers.
5. Management is intangible: Management function cannot be physically seen but its presence can be felt. The presence of
management can be felt by seeing the orderliness and co-ordination in the working environment.
6.Management is a Dynamic Function: An organisation has to adapt to the environment in order to succeed. Thus,
management is dynamic in nature and adapts to the ever- changing social, economic and political conditions.
7. Composite Process: Management consists of series of functions which must be performed in a proper sequence. These
functions are not independent of each other. They are inter-dependent on each other. As the main functions of management
are planning, organising, staffing, directing and controlling: organising cannot be done without doing planning, similarly,
directing function cannot be executed without staffing etc.
8. Management is an Activity for getting things done through Others: Management is an activity for getting things done
through others. Managers perform managerial functions (Planning, organising, directing etc) for getting things done through
and with others.
9. Management is a Group Activity: Management always refers to a group of people involved in managerial activities. The
management functions cannot be performed in isolation. Each individual performs his/her role at his/her status and
department, and then only management function can be executed.
SCOPE OF MANAGEMENT
Management is an all-pervasive activity. It has a wide scope in every field. It is carried out in every functional area of every
organisation.
1. Production Management: Production management focuses on the transformation process of inputs and raw materials into
finished products, to satisfy the needs of the consumers. In production management, the production manager is responsible for
procuring raw materials, hiring and assigning labour for different work activities, maintaining equipment and creating
production budgets.
2.Marketing Management : The marketing of goods produced is equally important in today's competitive world. Unless the
product is made known to the customers it is very difficult to market it. Marketing management is concerned with those
activities which ensure the flow of goods and services from producer to consumer, to satisfy the needs of the society. It
involves market research, effective advertising, transportation, etc. Functions and areas of marketing are very vast. It also
requires specialisation in management. Thus, marketing has assumed a very specialised and expert branch of management.
3.Financial Management: Financial management is a top priority for companies as the effective and proper managing of
finances enables them to stay in business and remain competitive. It is necessary for companies to plan, organise, direct and
control their financial activities to increase profit and reduce wastage of resources. By applying management principles to their
financial resources, companies can keep track of how they procure revenues and how they utilise them.
4.Personnel/ Human Resource Management : Personnel management is about managing the personnel or staff in an
organisation and maintaining a positive and productive business environment. Personnal management ensure the right person
at the right job. It includes establishing effective communication with the organisation's personnel, publishing company
policies, implementing health and safety practices, responding to grievances and taking disciplinary action when necessary.
5. Purchasing Management: The raw material is the most important factor of production which decides the quality and cost of
the product. So, it is essential to have a proper purchasing management system. Purchasing management is concerned with the
activities for procurement of raw material, stores and supplies, tools, equipment, implements, machinery, office appliances,
and services required to produce certain goods and services. All these purchases should be made at the right time, at the right
price, right quality, and in the right quantity.
6. Office Management : Office management concerns the planning, coordinating and controlling the different work activities in
an office environment. The aim of office management is to ensure the smooth and efficient functioning of all office
departments to get the necessary work done and achieve the organisation's work targets and business goals.
7. Research and Development Management: Due to fast changes in business environment, improved and appropriate
techniques of management must be developed through research. Research and development management involves innovating
new products, new designs, production process, etc.
NEED OF MANAGEMENT STUDY
Proper management skills are one of the most essential quality of an effective employee. Management in every organisation is
essential to achieve the organisational goal.
1.New Challenges Require New Business Models: In an ever- changing environment, management studies have become
inevitable. Managers who have sound technical knowledge can understand the fundamental connections between business,
the environment, and society. Thus, management study has become essential for every firm and individual.
2. Optimum Utilization of Resources: Management is learning to organise the available resource in an efficient way to achieve
the organisational goals. Management as a discipline ensures that resources are optimally deployed while delivering a product,
and services Thus, management skills are important to avoid wastages and achieve efficiency.
3.Innovation: In today's competitive environment, there is little differentiation between two or more competing products/
services, across categories. Management studies encourage innovation in the organisation, which makes the organisation more
competitive and efficient.
4. Ensuring the Success of the Business: Management is the channel without which no organisation can work or survive.
Indeed, it is the quality of management that decides the success of a business enterprise.
5. Developing Human Resource: Management studies help individuals and businesses to develop a talented workforce that can
be expected to tackle complex situations and relationships with the clients of any organisation.
6. Encourages Team-work: Management studies encourage employees to develop a team spirit. Teams working in co-
ordination are bound to be more successful than individual efforts.
7. Acute Shortage of Management Talent in the Developing World: At a country level, management skills enable the growth of
the GDP. Business worldwide today is facing a shortage of management talent, hence there is a need for management study.
8. Bridging the Gap: Modern management bridges the gap between business schools and the industry.
FUNCTION OF MANAGEMENT
1.Planning: Planning is an indispensable as well as the first and foremost function of management. Almost all managers at
different levels of the organisation have to plan. Thus, planning is systematic thinking about ways and means for the
accomplishment of pre-determined goals. Planning is necessary to ensure the proper utilization of human and non-human
resources.
2.Organising : It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals. Organizing as a process involve * Identification of activities.
*Classification of grouping of activities. *Assignment of duties. *Delegation of authority and creation of responsibility.
*Coordinating authority and responsibility relationships.
3.Staffing : It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater
importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior
etc.The main purpose of staffing is to put right man/woman on right job.
4.Directing : This is the function of guiding, overseeing, and leading the people. It is concerned with getting work done through
and with people, it requires continuous encouragement to the people to work effectively. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for
doing the work.
5.Controlling: Controlling is one of the important functions of a manager. The controlling function can be defined as ensuring
that activities in an organization are performed as per the plans. An efficient system of control helps to predict deviations
before they occur. Controlling also ensures that an organization's resources are being used effectively and efficiently for the
achievement of predetermined goals.
6. Motivation: Motivation is the actuating force that stimulates a man to put his best in the accomplishment of a task.
Motivation is a powerful tool in the hands of a manager for inducing his subordinates to act in the desired manner by satisfying
their needs and desires.
7.Commuication: Communication is the flow of information vertically and horizontally in organisation structure.
Communication also leads to the sharing of information ideas and knowledge. Effective Communication is for managers in the
organizations to perform the basic functions of management, i.e., Planning, Organizing Leading and Controlling.
8 Co-ordinating: Every business enterprise is divided into many departments and every department has several groups and
individuals. Co-ordination is necessary between all departments and within all departments. Co-ordination is not a separate
function of the management; it is the force that binds all the other functions of management.
Taylor Principles and Features of Scientific Management
1. Replace Rule of Thumb: Taylor recommended the replacement of the rule of thumb with scientific methods. The rule of
thumb stresses estimation whereas the scientific approach brings precision. Every work should be planned properly before it is
carried out. Taylor suggested work-study to eliminate unnecessary operations, standardisation of tools and equipment,
scientific selection of employees, differential piece rate system to encourage employees for better performance.
2. Labour-Management Co-operation: The principle of co-operation was suggested to encourage a combined effort not only
among workers but also between workers and management. Both should try to create mutual confidence, co-operation, and
goodwill.
3. Maximisation of Output or Production: The whole philosophy of scientific management revolves around increased
production and productivity. Taylor wanted to change the old methods of production so that rate of production should be
increased.
4. Equal Division of Responsibility: The responsibility should be distributed between workers and management. Managers
must fulfil their responsibility of planning and organising effectively. On the other hand, workers must fulfil their responsibility
by executing the work as per the directions of the bosses.
5. Job specialisation: Taylor believed that each worker should be a specialist in his job. At the same time, each worker should
be supervised by different specialist supervisors to increase efficiency.
6. Scientific Selection, Training, and Development of Workers: Taylor realised the importance of the right person for the right
job to attain higher efficiency. He, therefore, stressed the need for proper selection and training of the workers.
7. Standardisation: According to Taylor standardisation of materials methods, tools, time, etc. for each activity is very
important. Therefore, standards should be fixed for each of them.
8. Planning and Scheduling Work: According to Taylor everything in an organisation should be done by the plan. Daily as well
asthe yearly plan should be prepared.
CONTRIBUTION OF TAYLOR/ TECHNIQUE/MECHANISM OF SCIENTIFIC MANAGEMENT
1.Scientific task setting: Taylor suggested that the task of every worker for each day should be determined through scientific
investigation. Taylor called it "a fair day's work". On a working day how, much work is to be done by a worker but be fixed by a
manager and the task should be set every day.
2. Differential Payment System: Under this system, a worker received the piece rate benefit which will attract the workers to
work more for more amount of wages and more incentives would be created to raise the standardization of output to promote
the workers to produce more and perform more tasks than before and utilize waste time to earn more wages.
3. Functional Foremanship: To ensure specialisation at supervisory level, Taylor suggested functional foremanship Taylor states
that the workers should only emphasize planning of doing. There should be 8 foremen in which 4 are for planning and 4 for
workshops or shops.
4. Scientific Recruiting and Training: Taylor realised the importance of the right person for the right job. Therefore, he states
that staff and workers should be selected and employed on a scientific basis.
5. Cost Accounting System: Taylor felt the need for an effective costing system, to control the cost of production and pricing. It
helps to minimize the waste.
6. Specialisation: Taylor suggested that scientifically selected and trained workers should be allocated the tasks according to
their specialisation to increase productivity and efficiency.
7. Standardisation: Standardised working environments should be provided to the workers which help to increase efficiency
and eliminate or minimise wastage of resources. This will ultimately reduce the cost of production.
8. Experimentation or Work-study: Work-study means organised, systematic and objective analysis and assessment of the
operational efficiency of all the elements connected with the work.
FAYOL PRINCIPAL OF MANAGEMENT
Fayol proposed 14 principles of management. He believed that these principles should guide the thinking of managers in doing
their job.
1. Division of Work: The total work of the organisation is divided among different employees on basis of qualification, likes and
dislikes. Doing the same work again and again the workers become experts. This helps to get the benefit of specialisation and
therefore production increases.
2. Authority and Responsibility: According to Henri Fayol, there should be a balance between authority and responsibility. The
right to give orders should not be considered without reference to responsibility. If the authority is more than responsibility
then chances are that a manager may misuse it. If responsibility is more than authority, he will not be able to do the work
properly and may feel frustrated.
3. Discipline: Discipline means respect for the rules and regulations of the organization. Discipline may be Self-discipline, or it
may be Enforced discipline. Managers should see that discipline is maintained.
4. Unity of Command: According to this principle, a subordinate must have and receive orders from only one superior. If the
subordinate receives an order from more than one boss, it will create confusion.
5. Unity of Direction: One head and one plan for a group of activities with the same objective. All activities which have the
same objective must be directed by one manager, and he must use one plan. This is called unity of direction.
7. Remuneration: Remuneration is the price for services received Remuneration should be fair and equitable, encourage
productivity by rewarding a well-directed effort. The payment methods should satisfy both the employees and the employers.
8. Centralisation: In centralisation power lies in the hands of few people whereas in decentralisation the power is delegated to
all the levels of management. The degree of centralisation and decentralisation depends upon the nature and size of the
organisation. There should be a balance between centralisation and decentralisation. Fayol believed that managers should
retain final responsibility but also need to give their subordinates enough authority to do their jobs properly.
PLANNING
Planning means thinking in advance what to do, when to do, how to do, and who will do. i.e. thinking before doing is called
planning. Planning is done for the future.
Defination
The process of making present entrepreneurial decision systematically and with best possible knowledge of their futurity.
Characteristics/Nature of Planning
1. Primary Function: Planning is the basic function of management. It is a primary function because it is the foundation on
which all other managerial functions rest. Without planning, other functions of management like organising, staffing.
controlling, etc
2. Goal-oriented: Planning starts with the determination of objectives. We cannot think of planning in the absence of
objectives.
3.Planning is a Pervasive Function: Planning is a pervasive function. Every manager irrespective of their level of management,
has to plan all their activities about the business. However, the time spends on planning differs. Top-level-managers are
required to spend more time on planning as compared to managers at a lower level.
4. Planning is Directed towards Efficiency: Planning is done to increase the efficiency of the enterprise. A good plan results in
the maximum output and profit at minimum cost
5.Futuristic : Planning always means looking ahead. Planning is never done for the past. All the managers try to make
predictions and assumptions for the future. These predictions are made based on past experiences of the manager, and with
the regular and intelligent scanning of the general environment.
6. Intellectual Process: Planning is done for the future, which is uncertain. Planning requires logical and systematic thinking,
based on the analysis of facts and forecasts rather than guesswork. It is an intellectual process and involves creative thinking
and imagination.
7.Planning involves Decision Making: Planning is wider than decision making. A decision can be done without planning but
planning cannot be done without decision making. In planning, a manager evaluates various alternatives and selects the most
appropriate one.
8. Continuous and Dynamic Activity: Planning is a never-ending function; it starts with the establishment of business and
continues as long as the enterprise exists. Plans are prepared for a specific period and as soon as the existing period gets
completed, there is a requirement of new plans again.
NEED AND IMPORTANT OF PLANNING
1. Focuses on Objectives: Planning is done to achieve the objectives of the organisation. Planning lays down the ways and
means to achieve the objectives.Thus, it is a path to achieve the objectives.
2. Increases Efficiency: Planning makes optimum utilization of all available resources. Planning replaces random operation by
orderly and meaningful actions. It helps to reduce the wastage of valuable resources and avoids duplication.
3. Planning Reduces the Risk of Uncertainties: Organisations have to face many uncertainties and unexpected
situations every day. Planning helps the manager to face uncertainty by forecasting the future. With the help of planning, an
enterprise can predict future events and make due provision for them.
4. Helps Optimum Utilisation of Resources; Sound planning helps the organisation for the proper allocation of the resources
among plans and activities. This helps in achieving the optimum utilisation of resources of an enterprise
5.Facilitates Coordination: Planning facilitates coordination in an organisation. The departmental plans are derived from the
main organisational plan. As a result, there will be co-ordination in different departments
6. Encourages Innovation and Creativity: Planning requires high thinking and it is an intellectual process. So, there is a great
scope for finding better ideas, better methods, and procedures to perform a particular job.
7. Planning enables a Company to remain Competitive: Planning provides competitive strength to the company who properly
forecast and plan their activities. Through planning, a company may systematically add a new line of products, expand the plant
capacity, change the method of work ETC.
8. Provides a Basis for Control : Controlling means checking whether the activities are carried out according to the plan.
Controlling includes a comparison of actual output with the planned ones and finding out the deviations if any and taking
corrective measures
FORM OR TYPE OF PLANNING
1. BASED ON NATURE
(A) Operational plan : Operational plans are formulated by lower- level managers. These plans focus on short-range actions and
adhere to planned schedules and budgets. These plans are concerned with day to day operations of the organisation.
(B) Administrative Planning: These plans are formulated by middle-level managers who provide the foundation for the
operative plans. These plans are concerned with the integrationof various organisational units and ensures implementation of
strategic plans on day to day basis. Such plans are more specific and concrete.
(C) Strategic Plans: Strategic plans are formulated by top management to achieve the overall objectives of the organisation.
These plans are long term plans for five years or more. A strategic plan defines how an organisation will integrate itself into its
environment.
2 BASED ON MANAGERIAL LEVEL
(A) Top-level Plans: Top-level plans are long-range plans which are formulated by top-level management. These include the
formulation of the overall goals and objectives of an organisation.
(B) Middle-level Plans: These plans are prepared by middle-level management. These plans are prepared by the managers or
departmental heads for their concerned department to achieve the department goals.
(C) Lower Level Plans: These plans are prepared by lower-level management i.e. by supervisors or foremen. These plans are
related to day to day work and its problems. These plans are prepared for a short period.
3 BASED ON TIME
(A) (a) Long Term Plan: These plans are prepared for more than five years. These plans are usually referred to as strategic
plans. Long-range planning deals with broad technological and competitive aspects of the organisation and allocation of
resources. These are the plans formulated by the organisation to reach their mission or vision
(b) Medium or Intermediate Plans: These plans are usually for the period for a one to five-year period. These plans are more
detailed than long-range plans. It outline how the strategic plan will be pursued.
c) Short-range Plans: The short-term plan usually extends from a few weeks to one year. These are specific plans with respect
to plant location, work methods, inventory plans and controls, employee training, and so on
4. BASED ON THE FREQUENCY OF USE
(a) Standing Plans: These plans are designed for repeated, ongoing activities. These plans are designed to cover issues that
managers face repeatedly. It tends to remain fixed for long periods
(b) Single-use Plans: These plans are used once for a situation or to deal with the non-repetitive problem. They are usually
replaced after one use. Examples of single-use plans include projects, budgets, and so on.
5. BASED ON ORGANISATIONAL SCOPE : Plans vary in scope. Some plans focus on the entire organisation: thus, these are called
business or divisional level plans. Other plans are narrower in scope and are focused on the day to day operations of lower-level
organisational units, these are called unit or functional level plans.
6. FORMAL PLANNING AND INFORMAL PLANNING
Formal Planning: Formal planning is systematically carried on by management. Formal planning specifies in black and white,
the specific goals and the steps to achieve them.
Informal Planning: Informal planning is mere thinking by some individuals which may become the basis of formal planning.
7. PHYSICAL PLANNING: Physical planning is concerned with the physical location and arrangement of buildings and
equipment. Examples of physical planning are regional planning or city planning
FORECASTING
Planning is done for the future and hence the need for forecasting arises. Management authority makes some predictions for
effective planning and decision making. Forecasting is a function that enables the managers to anticipate the future and to plan
accordingly
'Business forecasting includes both, assessing the future and making provisions for it.' - Henry Fayol
Importance of Forecasting
1. The Essence of Planning: Forecasting plays a very important role in planning. Forecasting estimates the future by analysing
the past and present related data. Without forecasting, planning is not possible.
2. Facilitates Management Decisions: Sound forecasting brings accuracy in management decisions. If the future is estimated
properly the management can take proper decisions. It improves the quality and validity of management decisions.
3. The Regularity of Production: Future demand is estimated by forecasting. It helps to regularise the production.
4. Cope up with Changing Environment: The business environment is ever changing. Proper forecasting helps the business
organisation to adapt to the changing environment.
5. Contribution to Business Success: The success of a business depends on accurate forecasts. Proper forecasting helps to
identify and face environmental challenges. Forecasting helps to reduce business risks and uncertainties
6. Smooth Working of an Organisation: Forecasting ensures the smooth and continuous working of an organisation. Accurate
helps the business organisations from the adverse impact of trade cycles
DECISION MAKING
Decision making is one of the most important functions of management. Decision making means choosing one alternative from
available so many.. The manager who can take proper and timely decisions is supposed to be a good
George R. Terry: "Decision making is the selection based on some criteria from two or more possible alternatives".
Nature/ characteristics of decision making
1. Process: It is a process of searching, evaluating, and selecting the best course of action among different alternatives.
2. Commitment: Decision making involves a commitment to actions and resources.
3. Existence of Alternatives: The purpose of decision making is to select the best alternative, which can significantly contribute
to organisational goals
4. Intellectual and Logical Process: It is an intellectual and logical process. It requires deep understanding, creativity, and
imagination.
5. Rationality: Rationality is another characteristic of decision making. Decision making is affected by the sentiments, values
and intuitions of human beings
6. Environmental Influence: Every organisation works in its internal and external environment. The decision making process
is influenced by changes in environmental conditions.
7. Pervasive Activity: Every manager at all levels has to take decisions pertaining to his field of work. Hence, it is a pervasive
function of management.
8. Purposeful: Decision making aims to achieve the objectives in a given situation..
STEP RATIONAL DECISION MAKING DECISION MAKING IS A PROCESS.
1. Identification of the Problem: The need for decision making arises because some problem or opportunity exists. That is a
manager is required to make a decision when he perceives a gap between existing and desired state of affairs. Thus, the
decision making process begins with the identification of some problems or opportunities,
2. Diagnosis of the Problem and Collection of Relevant Data: After the identification of the problem, the next step is to
diagnosis the problem. Diagnosis of the problem means to know the exact nature and cause of the problem
3. Establishing Specific Objectives: Here the manager should clearly state the objectives to be achieved by the solution to the
problem ie. decision. Objectives may be in quantitative or qualitative or in both the terms
4. Identifying Limitations or Constraints: The next step of a decision making process is to identify the limitations or constraints
of a possible solution or decision.
5. Finding Alternatives: The next step is to find a set of alternative solutions to the problem. If no alternative is available there
is no need to make a decision.
6. Evaluating Alternatives: The available alternative should be evaluated based on the advantages and disadvantages of each
alternative. While evaluating the alternative the manager should take into consideration the limitations and constraints like the
risk involved, the economy of efforts, timing, limitations of resources, etc.
7. Selecting an Appropriate Alternative: The next step is to select the best alternative i.e. to make decisions based on the
comparison of alternatives. However, when the problem is complex no alternative stands out clearly as the best choice.
8. Implementing the Decision: After selecting the appropriate alternative next step is to implement it. Therefore, the manager
should make the necessary arrangements for its implementation. He should delegate authority and the necessary resources to
implement the decision.
9. Feedback: This is the final stage in the decision-making process. Feedback is essential to ensure that the results are in
accordance with those which are expected at the time of taking the decision.
ORGANIZING
Organization is a mechanism which is created to achieve common goal with the help of employee to employee and employee
to work relationships. It is a social entity which is goal-oriented and intentionally structured for coordinate its various activities.
Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationships
among them."
Process of Organizing
The function of organizing is to arrange, direct, coordinate, and control the activities of an organization. Organizing includes
creation of a sound organization structure so that work is carried out as per plan.
1. Determining the Objectives of the Organization: This is the first step in organizing in which the top level management
determines the common objectives of organization. Similarly departmental objectives are fixed by middle level management
and at the lower level, supervisory management fix the day-to- day objectives.
2. Identifying the Activities to be Done: In the second step, the top-level management prepares a list of various activities to be
carried out for achieving its common goal.This step is important,as it ensures that there will not be any duplication of work and
wastage of efforts.
3. Grouping the Similar Activities: Different activities which are identified in second step are grouped together to make
departments. For example a separate finance department is created for activities which are related finance.
4. Determining Responsibilities of each Employee: Under this step the responsibility of each employee is clearly determined.
This removes confusion of employees and ensures completion of work within time limit. It also results in increase in efficiency .
5. Delegating Authority to Employees: Authority includes the right to give orders to subordinates and get the work done.
Without authority, the employees cannot fulfill their responsibilities hence each employee is given adequate authority
6. Fixing Authority Relationship: When two or more people work together for a common objective, it is essential to clearly
define the relationship between them. Each individual should know who his boss is, whose instructions he has to follow and to
whom he will be liable.
7. Giving all Required Resources Employees: After to determining relationship of authority and responsibility of each and every
person, the employees are given required resources such as money, material and other facilities.
8. Coordinating Efforts of all to Achieve Goals: This is often the final step in organizing process. In this step efforts of all the
people and departments brought together and are co-coordinated towards the common targets of an organization.
PRINCIPLES OF ORGANIZATION UNTI
1. Clearly Defined Goals: The goals of the organization should be clearly defined. Each employee in the organization should
understand these objectives.
2. Specialization: This principle states that every employee in the organization should be asked to perform only one type of
function. This function should be given to him after considering his educational background, ability and work-experience
3. Co-ordination: The efforts of all the individuals, departments, levels, etc. should be co-coordinated towards the common
goals of an organization. In order to achieve this, managers must try to maintain co-ordination among various activities, people
and department.
4. Authority: Each employee should be given sufficient authority to perform his responsibilities. This authority should be clearly
defined. Authority should be higher at the top level and it should decrease as we come to the lower levels.
5. Responsibility: The responsibility of every person should be clearly defined. It should be transferable to others.
6. Span of Control: Span of control means the maximum number of subordinates which one superior can manage effectively. It
should be as small as possible. Some of the important factors on which span of control depends are nature of the job, ability of
superior and skill of subordinate.
7. Balance: According to this principle, there should be a proper balance between the different levels, functions and
departments of the organization. At the same time, there should be a proper balance between centralization and
decentralization as well as authority and responsibility.
8. Chain of Command: The chain of command, sometimes called the scalar chain. It is the formal line of authority, responsibility
and communication within an organization. The chain of command should be very short. That is, there should be very few levels
of management.
9. Delegation: Authority and responsibility should be delegated to the lowest levels of the organization so that the subordinates
can complete their task without difficulties. The authority delegated to an individual should be equal to his responsibility.
DELEGATION OF AUTHORITY

In an organization, the manager has several responsibilities and work to do. So, in order to reduce his burden, he shares his
authority with his subordinates. This process of sharing authority with subordinates is called as delegation of authority. Under
the delegation of authority, the superior does not surrender his authority completely, but only shares certain responsibility with
the subordinate and delegates that much authority which is necessary to complete that responsibility.
DIFFICULTIES IN DELEGATION AUTHORITY
(A) From the View Point of Management:
1. Lack of Confidence in Subordinate: Some managers are not willing to delegate authority to their subordinates because they
do not have confidence in them. They think that it is better to work them-self
2. Lack of Confidence in Self: The lack of self-confidence forces managers to not to delegate authority to their subordinates.
These managers think that after delegating authority to their talented subordinates, they may find fault in their work and they
may be exposed in the organization
3. Fear of Losing Control: Some managers do not want to delegate the authority as they always have concern about losing
control over the job.
4. Lack of Coordination: Lack of coordination between subordinate and superior is also one of the important difficulty in
delegation of authority
(B) On the Part of the Subordinate:
1. Incompetent Subordinates: Some subordinates are unwilling to accept delegated authority because of lack of self-
confidence. They fear of making mistakes in their performance.
2. Lack of Motivation: Lack of motivational environment discourages subordinates to take responsibility and accept authority.
Such environment is found in organizations where there is lack of reward and judgment system
3. Fear of Criticism: A subordinate may refuse to accept authority due to fear of criticism for his mistakes. A subordinate tries to
avoid criticism for any likely mistakes.
4. Lack of Essential Information and Resources: Subordinates may hesitate to accept new assignment, in case he is not given
the necessary resources and information. He thinks that he may not discharge his duties properly in the absence of adequate
resources.
STAFFING
The term 'Staffing' relates to the recruitment, selection, development, training and compensation of the managerial personnel.
It involves the determination of manpower requirements of an organization and provision of adequate competent people at all
its levels.
"Staffing relates to the recruitment, selection, development, training, compensation of subordinate managers".
Need and Importance of Staffing
1. Optimum utilization of Resources: Staffing plays a vital role in maximum and efficient utilization of resources. Good staffing
system ensures appointment of competent employees in the organization.
2 Reduces Cost of Production: Staffing ensures appointment of right person at the right job, at the right time, which ultimately
results in reduction in cost of production.
3. Job Satisfaction: Staffing is a vital source for employee's job satisfaction. Through effective staffing jobs are allocated among
the personnel according to their ability, talent, aptitude and specializations. It gives employees more satisfaction regarding their
jobs.
4.Meeting Present and Future Needs of Employees: Staffing is very essential for fulfilling present as well as future needs of
employees. It gives a clear idea to organization that in coming year how much positions will be vacant and new positions will be
generated.
5.Maintaining Co-ordination among the Employees: Staffing leads to unity and co-ordination among the employees. When
employees get jobs as per their ability, talent, aptitude and specializations, they try to maintain cooperation among themselves.
6.Better Industrial Relations: Effective staffing ensures better industrial relations in the organization. It assists in building closer
personal relationships between the various managers subordinate which, in turn, help in developing good relationships with
other personnel.
7. Improved Organizational Performance: Effective staffing includes matching jobs and job performers which leads to better
utilization of organizational resources. Staffing creates satisfied human resources which achieve better results
8.Support to other Functions: Staffing is the key to efficient performance of other functions of management. If an organization
does not have competent employees, it can't perform planning, organization and control functions properly.
RECRUITMENT
People are integral part of any organization. No organization can run without its human resources. Every organization needs
sufficient amount of manpower for completing its various functions. Recruitment makes available the required number of
employees to the organization
"Recruitment is the process of finding and attracting capable applicants for employment".
Methods of Recruitment
Recruitment methods refer to the means by which an organization reaches to the potential job seekers. These are the ways of
establishing contacts with the potential candidates.
1. Direct Method: In this method, the representatives of the organization approach the potential candidates in the educational
and training institutes. They create contacts with the candidates seeking jobs. These representatives work in cooperation with
placement cells of their organization. Persons pursuing degree or diploma relating to management, engineering, medical etc.
are recruited by using this method.
2. Indirect Methods: Indirect recruitment method includes recruiting prospective candidates by giving advertisements in
newspapers, radio, television, professional journals and technical magazines.
This method is useful when an organization wants to fill up scientific, professional and technical posts
3. Third Party Methods: Under this method help of third parties such as private employment agencies, management
consultants, professional bodies, employee recommendations, voluntary organizations, trade unions, data banks, labour
contractors is taken to establish contact with the job-seekers.
CONCEPT OF DIRECTION
Direction is one of the important functions of Management because it deals with human relations.
Direction is the managerial function of guiding, motivating, leading and supervising the subordinates to accomplish the desired
goals or objectives". Thus people must be directed, otherwise without proper direction and supervision, employees become
inactive and inefficient.
"Directing is a managerial function that involves the responsibility of managers for communicating to others what their roles
are in achieving the company plan."
Features and Nature of Direction
1.Directing Initiates Action: In Direction, action is initiated at the top level of the organization and it flows down the hierarchy.
Hence, subordinates are guided by their superiors.
2.Directing Deals with People: Directing function is related to subordinates and hence it is influenced by the human factor. It
deals with human behaviour.
3.Directing is a Continuous Activity: Directing is a continuous function which is required to be carried out throughout the life of
the organization.
4.Pervasive Function: Directing takes place at all levels of the organization. Whenever there is a superior subordinate
relationship, directing exists. Every superior has to provide guidance and inspiration to his subordinates.
5.Descending Order of Hierarchy: Directing flows from a top level of management to the bottom level. Every manager
exercises it on his subordinates.
6.Seeks Performance: Directing is done with the intention of translating plans into action. In direction manager not only issues
orders but also supervises the of subordinates.
7. Directing is a Linking Function: Directing bridges the between standard and actual performance. It links managers and lower
level subordinates in the organization.
(8) Directing facilitates Co-ordination: Directing influences the subordinates to work properly and effectively to achieve
organizational goals. It brings harmony among employees and top level management.
Elements of Direction
Directing is a process in which the managers instruct and guide the subordinates and they oversee the performance of their
subordinate. Directing is called as the heart of process of management .
(1) Issuing of Orders and Instructions: It is the first element of Direction. It includes issuing of orders and instructions by the
superiors to subordinates because superiors have to get things done from subordinates.
(2) Guiding the Subordinates: When orders and instructions are issued to the subordinates, they must be guided regarding the
proper method of work. This is done to ensure that the assigned tasks are carried out effectively and efficiently.
(3) Supervision: In order to see whether the work is done according to the instructions, superiors must observe and supervise
the activities of subordinates. Supervision is done to ensure that whether activities of subordinates contribute to the
organizational objectives.
(4) Leadership: Leader has to influence others towards achievement of goals. Thus manager has to work as a leader of his
subordinates for getting things done.
(5) Motivation: It is one of the most important elements of directing. Manager has to inspire and induce the employees to act
and get expected results
Principles of direction
(1) Principle of Unity of Command: It is the most fundamental principle of Direction. It means that the subordinate should
receive orders from one and only one superior. If subordinate receives instructions from more than one person, there may be a
confusion, conflict, chaos, disorder and indiscipline in the organization
(2) Principle of Harmony of Objectives: Individuals join organization to achieve their own objectives. They are expected to
work for the achievement of organizational objectives.Direction function must resolve the conflict between individual
objectives and organizational objectives
3.Principle of Follow Up: Direction is a continuous activity which includes continuous supervision, counseling, and helping the
employees. Therefore managers should not only issue orders and instructions but he has to take continuous follow-up and
should identify the problems faced by employees and should modify his instructions accordingly.
(4) Principle of Direct Supervision: Direction becomes more effective when there is direct communication between superior
and subordinates. Employees can be motivated effectively with the help of direct communication with them
(5)Principle of Appropriate Techniques: For directing, manager has to use different techniques. Delegation, Supervision,
Issuing Instructions are some of the techniques that can be used for direction. This principle states that the techniques used for
direction should be appropriate to the people, work and situation.
(6) Principle of Leadership: Manager should not only give orders and instructions but they should guide and help subordinates
whenever required. Manager should act as a leader of his subordinates. He should Counsel them and understand their
problems so that he can win their confidence.
7.Principle of Managerial Communication: Manager should follow two way communication process for Direction function. He
should give orders and instructions to subordinates and should take feedback from them. There should be upward and
downward communication in the process of Direction.
(8) Maximum Individual Contribution: Manager should try to subordinate individual objectives and organizational objectives.
For this, manager should inspire his subordinates so that they can give their best to the organization
PRINCIPLES REGARDING INTERPERSONAL COMMUNICATION AND GROUP BEHAVIOUR
Interpersonal Communication means exchange of information, ideas and feelings between two or more people. It is possible
with the help of verbal and non-verbal methods. It can be with the use of voice or facial expressions or body language and
gestures.
(1) Clarity of Thought: The message must be clear and free from ambiguity. The message should be in simple language so that
receiver can understand it easily.
(2) Brevity: Message to be given must be brief. It should not include meaningless words and information. The message should
be concise and concrete.
(3) Timeliness: The message should reach the receiver within proper time i.e. right time.
(4) Compassion: While communicating, communicator has to understand the intelligence level of the receiver.
(5) Feedback: There should be follow up action and feedback in effective communication. Communication is a two way process
so feedback gives an idea about whether message is understood or not.
(6) Attention: The communicator should try to seek attention of communicatee. He should covey his message in such a manner
that the emotions of receiver are not hurt. Manager while communicating should have empathetic listening and open mind.
(7) Use of Grapevine: It is informal way of communication which can be used in addition to formal communication. He must
understand informal channels of communication within the
8.Completeness: Message to be sent must be complete in all respects. Incomplete message creates misunderstanding and
delays action. Manager has to provide complete information to his subordinates for proper action.
(9) Integrity: Actions, behaviour of the sender and message must be consistent with each other.