Principles of Management – University Questions

Steps in Management by Objectives Process

1. Define organization goals

Setting objectives is not only critical to the success of any company, but it also
serves a variety of purposes. It needs to include several different types of managers
in setting goals. The objectives set by the supervisors are provisional, based on an
interpretation and evaluation of what the company can and should achieve within a
specified time.

2. Define employee objectives

Once the employees are briefed about the general objectives, plan, and the
strategies to follow, the managers can start working with their subordinates on
establishing their personal objectives. This will be a one-on-one discussion where
the subordinates will let the managers know about their targets and which goals
they can accomplish within a specific time and with what resources. They can then
share some tentative thoughts about which goals the organization or department
can find feasible.

3. Continuous monitoring performance and progress

Though the management by objectives approach is necessary for increasing the

effectiveness of managers, it is equally essential for monitoring the performance
and progress of each employee in the organization.

4. Performance evaluation

Within the MBO framework, the performance review is achieved by the

participation of the managers concerned.

5. Providing feedback

In the management by objectives approach, the most essential step is the

continuous feedback on the results and objectives, as it enables the employees to
track and make corrections to their actions. The ongoing feedback is
complemented by frequent formal evaluation meetings in which superiors and
subordinates may discuss progress towards objectives, leading to more feedback.

6. Performance appraisal

Performance reviews are a routine review of the success of employees within

MBO organizations.

Functional Foremanship
 Instruction Card Clerk: Providing instructions to workers.
 Route Clerk: Determining the route to be followed in production.
 Time and Cost Clerk: Preparing sheets about time and costs so as to
minimize wastage.
 Disciplinarian: To ensure that discipline is being maintained
 Foremen should have intelligence, tact, grit, judgment, special
knowledge, energy and honesty.

Henri Fayol's 14 Principles of Management

Henry Fayol, also known as the Father of Modern Management
Theory, gave a new perception on the concept of management. He introduced a
general theory that can be applied to all levels of management and every
department. He envisioned maximising managerial efficiency.

The fourteen principles of management created by Henri Fayol are explained

below.

1. Division of Work

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

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

3. Discipline

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

4. Unity of Command

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

5. Unity of Direction

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

6. Subordination of Individual Interest

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

7. Remuneration

This plays an important role in motivating the workers of a company.

Remuneration can be monetary or non-monetary. Ideally, it should be according to
an individual’s efforts they have put forth.

8. Centralization

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

9. Scalar Chain

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

10. Order

A company should maintain a well-defined work order to have a favourable work

culture. The positive atmosphere in the workplace will boost more positive
productivity.

11. Equity

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

12. Stability

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

13. Initiative

The management should support and encourage the employees to take initiatives in
an organisation. It will help them to increase their motivation and morale.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be

supportive of each other regularly. Developing trust and mutual understanding will
lead to a positive outcome and work environment
 Differences between Power and Authority
The difference between power and authority can be drawn clearly on the following
grounds:

1. Power is defined as the ability or potential of an individual to influence

others and control their actions. Authority is the legal and formal right to
give orders and commands, and take decisions.
2. Power is a personal trait, i.e. an acquired ability, whereas authority is a
formal right, that vest in the hands of high officials or management
personnel.
3. The major source of power is knowledge and expertise. On the other hand,
position and office determine the authority of a person.
4. Power flows in any direction, i.e. it can be upward, downward, crosswise or
diagonal, lateral. As opposed to authority, that flows only in one direction,
i.e. downward (from superior to subordinate).
5. The power lies in person, in essence, a person acquires it, but authority lies
in the designation, i.e. whoever get the designation, get the authority
attached to it.
6. Authority is legitimate whereas the power is not.

Conclusion

After reviewing the above points, it is quite clear that power and authority are two
different things, where power has nothing to do with level or management or
position. On the other hand, authority completely depends on these two, i.e. the
position level determines the level of authority a person has. In addition to this, the
authority relationships, i.e. the relationship between superior and subordinate are
depicted on the organizational chart. Conversely, the power relationship is not
shown in the organization chart.

Techniques for Better Team Supervision

 Team Building.
 Take the Time to Know and Understand Each Team Member.
 Communicate.
 Be an Exemplary Leader.
 Provide Additional Educational/Training Prospects.
  Celebrate Victories.
 Never Micromanage. ...
 Organize Recreational Events.

Process of communication involves the following

steps
1. Sender: The person who conveys his thoughts, message or ideas to the
receiver is known as the sender. He is at the starting point of the
communication system and represents the source of communication.
E.g., In a classroom, a teacher is a sender.

2. Message: The subject matter of communication is termed as messages. It

includes ideas, feelings, suggestions, order, etc., which a sender wants to
convey to the receiver.

3. Encoding: The process of converting messages into communication

symbols, which may be understood by the receiver. It includes words,
pictures, gestures, symbols, etc. Encoding translates the internal thought of
the sender into a language which can be understandable.

4. Media: The path, channel or medium through which encoded message is

transmitted to the receiver is known as media. It is the carrier of the
message. It can be in written form, face to face, through telephone, letter,
internet, etc.

5. Decoding: The process of translating the encoded message into an effective

language, which can be understood by the receiver is known as decoding. In this,
the encoded symbols of the sender are converted.

6. Receiver: The person who receives the message of the sender is known as the
receiver.

E.g., Students are receivers in the classroom.

7. Feedback: In order to complete the process of communication, feedback is
essential. The process of reversal of communication in which the receiver
expresses his reaction to the sender of the message is known as feedback.
Feedback ensures that the receiver has received and understood the message.

8. Noise: Any construction or hindrance which hampers the communication

process is known as noise. The hindrance may be caused to the sender, message or
receiver. It acts as a barrier to effective communication and because of this
message is interpreted differently by the receiver. Disturbance in the telephone
line, inattentive receiver, faulty decoding, poor internet connection, improper
gestures and postures,

Various Classifications of Managerial Functions

1. Planning: it is the basic function of management. It deals with chalking out a

future course of action and deciding in advance the most appropriate course
of actions for the achievement of pre-determined goals. According to Koontz
‘O’Donnell, “planning is deciding in advance – what to do, when to do and
how to do. It bridges the gap from where we are to where we want to be”.
Thus, it is a systematic thinking about ways and means for accomplishment
of goals. Planning is necessary to ensure proper utilization of human and
non-human resources and helps to avoid confusion, uncertainties, risks and
wastages.
2. Organising: It is the process of bringing together physical, financial and
human resources and developing relationship amongst them for achievement
of organisational goals. It involves dividing work into convenient tasks or
duties, grouping of such duties in the form of positions, grouping of various
positions into departments and sections, assigning duties to individual
positions and delegating authority to each position so that the work is carried
out as planned.
3. Staffing: It is a function of acquiring, developing, employing, appraising,
remunerating and retaining people so that the right type of people, are
available at right positions and at right time in the organisation. Staffing
involves:
  Manpower planning: estimating manpower in terms of searching, choosing
the person and giving the right place.
 Recruitment, selection and placement
 Training and development
 Remuneration
 Performance appraisal
 Promotions and transfer

4. Directing: It is that part of managerial function which actuates the

organisational methods to work efficiently for achievement of organisational
goals. It is considered as the life-spark of the enterprise which sets in motion
of people because planning organising and staffing are the mere preparations
for doing the work.

However, direction is not merely issuing orders and instructions by a superior to

their subordinates but it includes the process of guiding and inspiring them. Thus it
has following elements:

1. Supervision: Overseeing the work of sub-ordinates by their supervisors. It is

the act of ordinated by their supervisors. It is the act of watching and
directing work and workers.
2. Motivation: Means inspiring or encouraging the sub-ordinates with zeal to
work.
3. Leadership: Defines as a process by which manager guides and influences
the work of subordinates.
4. Communication: It is process of passing information, experience, opinion
etc. from one person to another.
5. Controlling: Control is the process of checking whether the plans are being
adhered to or not, keeping a record of progress and then taking corrective
measures if there is any deviation. Thus, control involves knowing what
work is to be done as to quantity, quality and time available and verifying
whether work has been or is being carried out in advance with the plan.
 Steps involved in Forecasting
Meaning:

Forecasting is a decision-making tool used by many businesses to help in

budgeting, planning, and estimating future growth.

 Set clear goals: Start by deciding what you want to predict and why. Figure
out the purpose of the forecast, and choose the time frame you’re interested
in, whether short-term, medium-term, or long-term.
 Gather information: Collect past data related to your forecast, like previous
sales numbers, market changes, or economic signs. Make sure the
information is correct, trustworthy, and up-to-date to get the best possible
forecast.
 Choose a method: Pick the right forecasting technique based on your goals
and the available data. There are various methods, including qualitative
approaches (like expert opinions) and quantitative methods (such as
statistical models and algorithms).
 Analyse the data: Use the chosen method to examine the data and look for
patterns, trends, or relationships. This analysis will help you make informed
predictions about future events or outcomes.
 Make the forecast: Based on your analysis, make educated guesses about
what might happen in the future. Keep in mind the limitations of forecasting
and the uncertainty of the future while making your predictions.
 Validate the forecast: Check your predictions against actual outcomes or
historical data to see how accurate your forecast is. This step helps identify
any issues or inaccuracies in the forecasting process and can guide
improvements in future forecasts.
 Review and adjust: Regularly review your forecast and update it as new
information becomes available or conditions change. Stay flexible and be
prepared to modify your predictions and plans as needed.
Difference Between Line Organization And Functional
Organization
The main dissimilarities or difference between line organizational structure and
functional organizational structure can be pointed as follows:

1. Introduction

Line Organization: Oldest form of organizational structure where line authority

flows from the manager to immediate subordinate
Functional Organization: It is a modern form of structure where organizational
activities are divided into various functional areas.

2. Nature

Line Organization: Simple form of organizational structure which can be easily

understood and operated.
Functional Organization: Complex form of organizational structure which lacks
clear line of authority. Specialization

Line Organization: It lacks specialization

Functional Organization: This organizational structure if fully based upon
functional specialists.

4. Authority

Line Organization: Centralized authority

Functional Organization: Decentralized authority

5. Unity Of Command

Line Organization: Properly followed because of only one superior

Functional Organization: Difficult to follow because of several superiors

6. Cost Factor

Line Organization: It is more economical than functional organization

Functional Organization: It is costlier than line organization
7. Superior - Subordinate Relation

Line Organization: One superior to command one subordinate

Functional Organization: Several superiors to command one subordinate

8. Discipline

Line Organization: Strict discipline can be maintained in line organization

Functional Organization: It is difficult to maintain discipline in functional
organization

9. Decision Making

Line Organization: Superior or manager has the right to take decision without
consulting others. So, prompt decision is possible.
Functional organization: Ideas and opinions of specialists and departmental
heads are required to take decisions. So, decision making is slower than line
organization.

Types Of Leadership Theories and Leadership Models

There are several different types of leadership theories that have been developed
over the years to explain and understand leadership styles and behaviors. Here are
some of the prominent leadership theories

1. Situational Theories

Situational theories suggest that effective leadership is contingent upon the specific
situation or context. These theories argue that different leadership styles should be
adopted based on the characteristics of the followers and the demands of the
situation.

2. Contingency Theories

The next type of leadership theory is contingency theories that expand on

situational theories by proposing that various factors, such as the leader's traits,
behaviors, and the situation, interact to determine effective leadership. These
theories highlight the importance of adapting leadership styles to match the
specific circumstances.
3. Transformational Leadership

Transformational leadership theory emphasizes the leader's ability to inspire and

motivate their followers to exceed their own self-interests for the greater good of
the organization. Transformational leaders inspire their teams through vision,
charisma, intellectual stimulation, and individualized consideration.

4. Transactional Leadership

Transactional leadership theory focuses on the exchange relationship between the

leader and their followers. Transactional leaders motivate their team members
through rewards, recognition, and a system of rewards and punishments based on
performance.

5. Authentic Leadership

The next type of leadership theory is authentic leadership theory that emphasizes
the importance of leaders being genuine, self-aware, and true to their values and
beliefs. Authentic leaders build trust and inspire followers through their
transparency and ethical behavior.

6. Servant Leadership

Servant leadership theory proposes that leaders should prioritize the needs of their
followers above their own self-interest. They focus on serving and supporting their
team members, fostering a sense of community, and promoting personal growth
and development.

Functions of production management

Production management attempts to utilize 6M’s: Men, Machines, Money,
Methods, Materials, and Market in order to better serve consumer needs. Its
fundamental goal is to produce products and services in the right quantity, quality,
on a schedule, and for optimum money. Production management makes it simple
to adopt various technologies and innovative changes in the workplace. Production
management is in charge of supervising and controlling all employees involved in
the company’s production processes in order to ensure that the target output is
achieved.
Let’s discuss the functions of production management.

1. Selection of product and design

Production management helps the organisation select the right product for
production and also choose a relevant design for the product. This becomes
imperative for the survival of organisations to possess a good understanding of
their consumers in order to create products that fully satisfy needs. Products need
to go through a detailed evaluation in order to meet customer needs while also
remaining cost-efficient.

2. Production planning and control

Choosing the correct production processes for a particular product also becomes
important. Decisions must be taken in order to choose the correct type of machines
and technology, the capital investment required, and so on. It entails planning prior
to production. Decisions like the quantity of production, the flow of processes, and
so on are all planned out. Routing is the term used for charting out the sequence of
operations for a smooth workflow.

Production control is overseen by the production manager. The actual process is

compared and contrasted with the blueprint in place so that all necessary diversions
from th original plan can be mapped out and any loopholes in the original plan can
be spotted and corrected.

Scheduling is done to set up benchmarks as to when starting and when to complete

a particular production activity. Inventory and cost control also need to be taken
care of. The allocation of materials, labour, and other processes is called the
production schedule.

3. Machine maintenance and replacement

Production management takes care of the maintenance and replacement of

machines and equipment to ensure the efficient and smooth working of production
processes. This is taken care of by the production manager and the team to prevent
speed breaks and halts in production.
 Importance of production management
1. Efficent use of capital and resources

Production management minimizes the cost of production and enhances the use of
resources to the fullest. A concise blueprint enables proper use of resources and
time, minimising disparity between production process and output. Evaluation of
production processes and maintenance downtime will ensure processes can be
managed efficiently optimising workforce efficiency. A well-thought-out
production function will result in high-quality products, a faster rate of production,
and a lower cost per unit.

2. Competitive edge

Production management can be a great tool for organisations facing competition in

the market. A smoother flow of processes increases efficiency whilst also allowing
the company to provide quality products and services. Production management
techniques play a role in the effective innovation of new products and facilitate
research in developing new and quality products. It can aid organisations in
emerging as market leaders since less time spent for production processes means
more resources to spare for other domains that may need more attention.

3. Minimizes risk of product failures

Preparing a lucid roadmap and collating information and assumptions helps assess
the market and reduce chances of failure. Knowing the requirements and needs of
the market will help reduce the chance that a product will flop. Ultimately, product
management, like everything else, cannot guarantee success, but it does reduce it.