| i PART I ORGANISATION Forms of Business Organisation. ee business includes ,industry, ) A. Introduction, In. broad sense, ‘commerce and trade. Its main aim is to increase wealth. Industry ineans a place where materials are extracted or converted in'o finished means @ Fished products.) Trade means a process of buying ani Shing of commodities, while commerce relates to financing, rane portation, insuring and allied activities. The form of ‘organisation to be selected will be decided by factors such as— (1) Size and nature of the business to be started + + (2) Technical difficulties ; (3) Market conditions (i.e. competition and scope of the article in the market) ; (4) Capital requires collect the funds. wut forth by the government (5) Limitations and restrictions p (ie. grant of loan ; licence ; foreign exchange and other such things). ‘After considering the above factors _a suitable type of organisa- tion as discussed below can be considered. Various Types of Business Organisation (1) Individual Ownership or Sole Trade. (2) Partnership. (3) Joint Stock Companies. (4) Co-operative Organisation. (5) State-owned or Government Ownership. (6) The Joint Sector Management. 1. Private Companies (Individual Ownership). As the name suggests, such type of business is owned bt i e y y one man. The business- man invests capital, employs labour and machines. This is the oldest d to start the business and the means to Scanned with CamScannersIRIAL, ORGANISAT! a INDUS ether iness -eaion, In such business res jmplest form of business organisat re ‘He produ on OP ried to run the organisation, pre gence capital nee 2 J pital ore own land, capital oe ae fe profits and suffers the losses in his P reme authority to ‘decide into differen a s and has unlimited freedom of action supplies all the Sri with the help Shiver alone enjoys th Therefore, he is the sup a ohcerning to his busines fegal jurisdiction. gal jure eantrol in_single hand helps him efiicient administration and working. In this tyP eflcien’ oat pe anxious to obiain valuable advice a” other sources. In such organisations 0} liabilities. Hence creditor cal t teblh property. Therefore, to have this type of money alone of the'debtor that is necessary’ 10 s enthusiasm, courage and faith of the person. ‘Applications. ‘This form of organisation is mo the following cases: (1) In small enterprises requiri spared by the one man (owner). ee (2) Where risk covered is not risk involved is very high. (0) Where management by one man is possible. Advantages. Following are the advantages of this form of organisation: (1) Such individual enterprises can exsily be formed and simple to run and at the same time owner Is free from all legal restrictions. (2) His (owner's) interest, care and efficiency di i , care ciency directly effect the profit in the business. Hence eflorts and rewards are directly (3) In this system owner himself is in touch with hence can know their likings. yi customers and (4) When it is supervised by the proprietor himselt heads wil be very much less and products can be a aa (5) Most_of the businesses have their_m: ‘ 3 30 onopoly certain secrecy in thei functioning. In this form ot ebay mepause of ett goons are performed bythe ounes himbelf and he does. not disclose it to any body else. Therefore, he has the greatest ossiblit of Tazoing bones well Ta other forms of cpanlatioa ite jittle chances of keepit ivi ir ae eeping such activites secret. for @ longer (6) It offers full freedom for w . ire ork and hence do not want 4 serve under or wth any boty Sait cae SoA independently and can show their talent. ‘Thus they © pee e free life. ay een in quick decision, 2 of organisation, g guidance from wwner himself is responsible for all the even from the pet- collect the money even fr¢ business it is not the ‘art but also the zeal, st satisfactory in ng small capital which can be too heavy. Because in this system Scanned with CamScanner ne eeFORMS OF BUSINESS ORGANISATION be taken. He doing some \d can avail (7) As he has not to consult for any decision to b can act promptly. [fany time he feels some benefit in , he can act quickly without any body's advice ant ‘the benefit. ey ee __ Disadvantages. This type of organisation has the foll disadvantages : (1) Amount of capital that can be invested is limited, therefore, modern factory cannot be run with this system of organisation. (2) Owner cannot be the master of all techniques like manage iment, sales, engineering processes etc. Hence work suffers. (3) Due to unlimited liability owner cannot take risk to start a big Industry. : ir isa wv tione 2, Partnership Organisation. Some of the above men Tae drawbacks of private companies are removed in the partnership ‘organisation upto some extent. Partnership is the relationship between the person desirous of starting ©. business and they combine or invite. together te increase Sutin S focs, ce capital, about, ailkand.abay, fhe We ee derstanding, co-opera- artnership depends upon mutual confidence, un’ e Jarinere rE uetment of the members to accommodate and ‘appreciate top-end cr Siew back of the pattoet should fealise that its Bis cach cent he should work hard to earn greater and greater profit. jowing Naar ethene pervcen persons who have agreed to share Wort ofa business concern carried on by all or any. one of them a ting for all”. When two and upto twenty persons in case of non- nd uj fF bankine Business eriter into banking business and upto ten incase, ol to carry on 2 business allowed by law, with the object of acontract amaking profit, a partnership is said to be formed. Every partner _is liable _and responsible for the_acts_of_other partners in that business. To avoid any complication at a latter stage the constitution of the company may be written in an agreement form. For the best partnership the number of partners should not be more than six, the Jesser the better. It generally happens that sone vith #0 00d idea an re ce of a business make partner- ith moneyed people. ship with mone 5 Peon Thus money and knowledge both are Advantages. This ty i a (1) It can be formed without ‘ ; cut heavy expenditure of repitition and som outs waa (2) This type of organisati , isati ; subject to strict government supervision n™* Feedom and is not Q) Di lar }) Due to large number of owners the amount of capital that Scanned with CamScannerOMCs 16 £00 cnceRl INDUSTRIAL ORGANISATION AND EN organisa f sole trade Tyee collected is more than that in the case o tion, ing different ig i spose er The i f organisation perso sr, There abi re choses and oat forte ‘Managerial at han th greater t ily ofthe firm asa whole would be muc! ‘MM Case of a sole trader, limitations isidvantages. Folowing are the disadvantages of OF the Partnership org. ) Due to unl 0) ership anisations : ; limited liability risk involved is more. e part Geath or retirement of any one partner, the P: mn may come to an end. After the ‘Tganisatioy ; i the joint ss capital in comparison to sities, r ohetiggg! aay hey require huge ea ) ise, {4) Sometimes, due {0 some misunderstanding friction may ari between Partners, which effect ‘adversely on the efficiency and Pansion of business, () All the partners ite Jointly and. severally able for the acts, of the partner, 1 Ro is placed inchatge of imanagement.- Thus some- time on PAtines may cause a big los tall he partners, pital and a large ‘eanisation may ie cateat Of involvement ma mpeest is common. "These members, ways : incite Partners. ‘These are those partners who take active Teed he management art Rep in the Tormultion’ Policies, These are also knowns rer ttS OF managing parte? (0), Sleenog and SienParinae PEtSOnS, Who just vest or ich members ater cota ing. thei "y either to share the iquidate the (2) Nominal Partoers, ps » Who do not iny do not take part in the Managem ame for the company The nominal ver, ‘Sscertning the soundness of the fo Secret Parte. These partes tak ‘ent Secrely, but nowhere their at appear Gnanctany setouee— FORMS OF BUSINESS f) Minor p, of 18 Jar anda Such pai ‘tner. fiber members. 'F limited liability). FO Partnershipe nut to avoi fraables which cab a written agreement ship Deed”, The partnersh (1) Name of f (2) Nature of G) Date or st (4) Duration, (5) The mone (6) The amou ) Share of p (8) Allotment (9) Salary, ify 10) Rate of int 0) Mainter (12) Loans ana any; (13) The basis as Tey ve limited is Voluy “capital divided int The capital j Persons. y 10 Purch; sharaging body shascholders, The wort importa Working of po enter, ite "818 form limited to the extent Scanned with CamScanner6 phere are two main ty (a) Private Limited Company (a) Public Limited Comps imit 1p nis type of compan: (a) Private Limited Company. 7] we ve Or amber of tormed by two or more persons. n 1 ship is ited to. 50. In this, transfer. of shares is Hiited ae Sly end general public cannot be invited to, SUBSET jarves. nly eaily the members of such a COmPAnY are frien ‘A. private limited company need not make the prospects; limited comperjpen. to the public. THE, members accounts and other porticwa™S PET Ee bufance sheet and suclors | accom entitled to receive a copy of the Bite ditors Sapirt, The government also does ct ferfere in the working oF TeDOrE pany. Us this system persons WhO ‘want to take adv of, limited lab’ he business 8s fy and ut the same time f0 Keep private as possible, can subscribe, (6) Poblc Limited Company. Tt is) one hose membership is open to general public as its name indicales The minimum number CRjuired. (0 form such a company is sevens but there is no upper limit. Such companies can advertise to offer its share to general public through @ prospectus. These public. limited companies ate Pumjected. to greater control and supervision of the government. This control is necessary to protect the interest ‘of the sharcholders and the members of the public. Shares are transferable in part or anid Mhout requiting any prior approval, The affairs of the company are managed by a elected body, known as “Board of Directors”. sae mmtimber of members in the board of directors is limited to seven. Liqitdation, It becomes riffcult to run the compuny if liability becomes much more than assets and when creditors press for pay- ments of Joan ete. At that time the company has to dissolve or wind up. This is known as liquidation, Liguidation may be compulsory or voluntar super ntti me) Ping resources donot permit yas then the assets. of the company have to be sold and then the amount poaid to. the creditors in proportion, If some amount is left afte payment then it is distributed among the shareholders. ry Raising Finance for Joint Stock Compen: yi to start and. to keep the business Tune a fae ee to. stat nsion, replacement and alterations. The required ae meupplied by. individuals, societies and associations. ee se eee itaken from banks ; finance corporations ces ik the Teas Scanned with CamScanner| “ i ‘sWorMS OP uUsINESS ORGANISATION ye taken of loan. Following are the sources from where money can be | for an enterprise. (1) dssue of Shares. A enterprise is collected in the form of shares. ie lance (2) Issue of Debentures. When company desires o eee ee instead of sale of shares, then deben- tures are issued, In this way it is advanta; AUSE coal Snot elaim for ownership and he is to be paid interest only Eee ed either for initial needs of the enterprise OF . for development and extension. j (3) Loan advances from banks. : | t (@) State loans from Industrial Corporations, State Finance | Corporations or through Industrial Development Corporation. ake the prospectus, ‘Advantages. Following are the advantages of the joint stock The memters | company over the previous two forms of business organisation ? et and auditors” (1) The liability being limited, the shareholders bear no risk re in the working of and, therefore, more and more persons are encouraged to invest to take advantage; capital. Thus more amount of capital can be collected to run modern apthe business as | industries. * (2) Because of large number of investors, the risk of loss is ase membership is divided. Therefore. even an average person can contribute capital minimum oumber } — without much hesitation. here. «no aupper (3) In the joint stock companies the work is divided among different group of persons; hence better work can be done. A portion of the money required for ‘of company can be wuumber of member- limited to members subscribe the s! iends and relatives. phate togeneral (8) Itcan bear the high salaries of the good managing agents 3 companies are { chief manager and other managers etc. inistration is {compa te hick manag gers etc. Thus administration is the shareholders: ‘ (5) Joint stock companies are not affected by the death or srable in part or of the company } Tetirement of any of the shareholders. of Directors”. i Disadvantages. Following are the main disadvantages of the 2 ited to seven. joint stock company : pany if ibility {P Lack of personal interest on the part of the salaried mang q ana- ress for pay. ' gers (because there is no, telse i ‘ssolve or wind | them) and this leads to the inefficiency and ees Eeene for : (2) This form of organisati *ganisation offe i o under the pes ad tbe members of the maiagemeat Reine Pe saree pepe Erne ofiey bein intimate knowledge of the fos meaty re i : . y, Nncial siti iiejgmmint tthe cn srefore, they can purchase or sell the shan (3) In this form of business there pane tom different parts of are hundred of investors is necessary i | a countr i needed to | ately come t 'Y who inves it savi itedeapital | ete check, Suey Me, EMEA body meetinay SaviBES: Dut very Finds cae | PeSons to scene Seet PEESONS offer Ua SeMES, OF exercise any hs | Cent shareholders. 1° °O"'"O! over “companies and. deceiver qautious € the intio- Scanned with CamScannerFORMS OF BUSINESS ORG joMIcs = 5, State Owner ‘i 2 : ig only serious compe is most. suitable for tl [AND ENGINEERING 10 INDUSTRIAL ORGANISATION Ke possible the : i al i vse of a group of cultivators. Ht wil thus make possible We co operating Erolements, ence and technology i agricul | on sae which in turn increase the yield. ‘ | seance ete are ‘avai (e) ‘Co-operative Credit Society. Its object iS to finance Ie | ins! 8 private ae cor (ihtivators by advancing Toans for the development of Jand 3 eas aati or ab Porehase of machinery €t© ae to expleig eee Teiloning are the advantages of co™opérs HE aieter ver cations + 2 z uired to S] end f Governmet i as, money required 19°F | (ries to prevent the ec (1) It sells the products cheaper : on advertisement and publicity is not needed. (2) Expenses for book-keeping, auditing and e are kept minimum, as members provide Hranorary services for such, _ | means to obstruct t manager en betterment of the con ‘The railways, P tasks. (3) It offers to-its employees better wages and reasonable coM- |. ion, ri \ and also by joint stoc Gitions of service. (4) There is no question of But state_natio marketing type of evils as the aim is ises his duty (s} Middleman’s profit eliminated as purchasing is dir fficienc made from manufacturer. (6) It suits well to Indian cultivators in improving the prob! of mechanised farming, warehousing ard credit ete. (7) Profits are shared equally say @ 02%, the palance goes for social ad fevelopment of locality such as medical aid, education, play-grounds and children gardens cic. placed in them, there (8) Ic tries to equalise money distribution. (Aeon (8) It benefits general public. —— (10) It promotes a sense of co-operation among the members. Prine (11) It is possible to take large amount of capital in the form of isa body vis BSF times the subscribed capital) from the government. functions clear! imitations. It has jts own ‘limitations, some of them are pendent of the finan listed below : = (2) The partis (Uy. As itssmembers come mostly. from the working class and laid down by the middle class, its capacity to raise capital is limited. Therefore, it is the corporation h suitable for small and medium sized undertakings only. administration and (2) Due to limited financial resources, services of highly aval 13), the corp fied persons camnot be utilized. fe and the conditions (3) Although it trades for the benefit of members only but nee sofiteering, hoarding and black to serve the community. 4 body re: tly ner pests Main reason fo ship is that they cant y such problems emerprises, the cm Jems loans \ ' \ | i at th same time it is not possible to ref only but | _reverues and outh beds a : Pp refuse to ‘trade with non: \ Sa ii the partie (4) Mostly inefficient management and sometimes found tha t (3) The nat management is inexperienced and corrupt. found | Some Problems (5) Members usually try to make undue advantage. () Price p (6) It requires better and strict supervision. 1 Featio eee (2) There are chances of excess officalization. | BE the fama eer Scanned with CamScanner> FORMS OF BUSTNess 1 STRIAI ysxriox AND ENOINEERING economics | x GAN 2 INDUSTRIAL ORGA risation of respect: “Therefor, tionalisatic + hi (2) Excessive centralization. Because. of the eat rhe biggest. | this form of organisayy the industries, each of these organisations is bigger tl ww that it (b) Co-operative; Organwation inthe private sector. Practical results Sd Trisher | gesponsible upto the ex fesulig im poor managemogt, poor labour relatio | eGo AS cegarde tk inefficiency, ane | Joint Stock Company a Pee . _ | Distinction between Joi Definition, Liability of a business means what it owes others. | Distinction NG rgauisatio Loans taken in. the. forty of cash or in the form of credit purchases | of se Ensen Mabiities, "Payments due for services Uke electrics water supply, insurance premium and salaries of staff are also Considered cy liabilities off a business, Owners, of the business AF° legally responsible for the payment of these liabilities. t Joint Stock Com, “Liabilities on owners are of two types * 1, Unlimited Liability. \ ‘A joint stort | can be compared =s Un ee } —_— rdination- ecutives how delegation ‘Acoount for any reluctance on the part of higher €x' to delegate. 8. () Explain clearly the principle of “Span o} iat out the consequences of Hts violation. (ii) Discuss the factors which you will consi the span of control in any given case. What is meant by centralization of authority 2 Discuss the Aina & gusing centralization of authority in any industrial organisation. 40. Write shorts notes on : (i) Management ratio, (ii) Chain of command, (iif) Delegation of authority, (iv) Principles of co-ordination, ena relationship. On f control” and, ider in fixing =o Scanned with CamScanner3 t Industrial Mangeme”™ Definition of Organisation beter Pe an Every business needs to be organised ieoents, § as ny q For a business there are three essentle req the coord tio’ i ‘material and machinery. “Organisation yaximum 0 tpl man, machine and material in such cree is assured.” v ease and efficiency under minimum tota ccalto For example, as in sports, @ group. of " achieve better performance. A'number of masons Ar organised for building construction under experienc any other im the same way a factory is organised for production oF 4 task. Hence basically “organisation isa form of human associat ‘to produce cheapest products of better quality”. Duties and Responsibilities of Organisation ‘ . (1) It provides means and medium through which groups “of people work together effectively for the achievement of spectic task. (2) It is to create relationship which can minimise friction and works on objectives. (3) It should clearly define the responsibilities of all persons jn the factory. This is absolutely essential where there isa great jncrease in the size of enterprise and use of principle of division of Jabour. ion » | Definition of Administration “Tf js that function of an enterprise which determines the over- all policies and objectives.” It decides the general purpose of an enterprise and frames the major policies. This all is done by the board of directors. ‘As the chief aim of any concern is to produce maximum at ‘minimum cost and to sell at large profits, therefore, to achieve this, poard of directors appoints a team of administrative staff. ° Scanned with CamScanner\ \ / NDUSTRIAL MANAGEMENT Duties and Responsibilities of Administration " (1) To form several departments in the factory for its smooth: running. (2) To maintain peace and discipline. , (3) To distribute responsibility and grant necessary authority” according to the status of individual employee. (4) To manage for the raw mat storage and employment” terials, 1 and external) of of workers. (5) To arrange for the transport (internal materials. : se (6) To earn maximum profits by timely purchase and sale o! materials. curate records. : the purchase of various t00) and equipments- (1) To maintain act (8) To arrange for required. over the various- of Management and control rok ol laid by the admi- It is concerned with the directio | con activites and work for the attainment ‘of objectives nistration. Dr. W. R. SP! tration, management, ant «administration predetermines the specific goals and lays down. the broad areas ‘to be attained. Thus- atin which these goals are the broad frerga determinative fonction. Wnt the management. adminitfgve function, which i mainly concerned with carrying. isan erect olces laid down by the administsa ion. Organisation out the Driinery through which the co-ordination js established _bet- isthe machineryuon and management.” Thus We may conclude in! Simple words that : “Administration cl ment works for bringing these policies i men jnim which helps the managemen| Moet laid by the administration. Duties and Responsibilities of Management (1) To maintain discipline and to keep com yees of various departments. p control over the emo (2) To distribute work and machine: i 5 amon} such a way as to secure maximum output. g the: workers o s keep era among the staff at various levels. improve effici¢ . Saupe ae management keeps sufficient watch. (5) To suggest new ideas and improvements. riegel has distinguished the three words, adminis~ jon as below. .d organisation as halks out the general policies while manage” into effect. Organisation is the- ‘tin. bringing the policies into Scanned with CamScanner(01 S ING ECONOM, AND ENG)NEERI ca {AL ORGANISATION 30 INDUSTRY i ing and recording. * @ To arrange for the efficient storing ir records. (1) To make the arrangement of payments and thei ‘The team of management has followin: (a) Top Management, (b) Middle Management and (c) Lower Management. (a) Top Management. It consists of Menaging, eat General Manager and other high rank officers such, as Deputy "General Manager and Works Manager etc. They are the ‘or heads in the concern. (6) Middle Management. Different department heads such as wa officer, es eee superintendent, chief store officer ete. come under the category of middle management. The¥ are responsi: ble for top management on the one hand and have control and “Supervision over the lower management staff. (c) Lower Management. It consists of Foremen, Supervisors, Mnspectors, Chargemen and Office Superintendent and such other Staff. They are just above the operational staff and their function is Fo get the work done from operational staff according to the instruc= tions of middle management issued by the top management. Principles of a Good Organisation Efficiency of the plant depends on the structure. A” good organ ‘principles : 1, “Allotment of work. Work should be distributed among fhe Persons very carefully on the basis of their skill cxmmtcnn and ‘@bltity to do that work. Experience shows that by” fixes responsi- Dility, speed of work and discipline increases. In this way there are Ro chances of shifting responsibilities, 2. | Grant of necessary Authority. Necessary authority should be granted to the individual to help him to speed up his assigned Work, ‘It reduces the work of management and increases the mae tive power and interest of subordinates, 3. Flexibility. The organisational structure should be flexible “to permit slight alternation and expansions whenever needed, 4. Distribution of work in different departments. The work -and resposibilities between administration and management should be clearly and precisely distributed, to increase the sympathy, cokes ion and good feelings. ‘The work load distributed to each department :should be equal and should be periodically evaluated. ordination among different departments. The organisa- " ee should be such that different departments co-ordinate with each other. Co-ordination is necessary for uniformity and g classification : organisational sation should have the following main Scanned with CamScanner, f yNDUSTRIAL MANGEAMENT Sf 31 6. Other principles. ‘A good organisation should be able to avoid wastage of labour, money ‘and material. It should minimise fabour trouble, increase production and improve quality .of product. i Qualities of a Good Industrial Management A good industrial management-is that which can steer through “different problems and is capable of ‘achieving its fixed targets. Some “of the important qualities of the management are ! It should go on collecting _ 1. Collection and analysis of data. } facturing including trend o} the data about the products, its manu vsales, availability of raw materials. 9. Proper research. Tt should have properly equipped research wing. Management should always be prepared to 3. Not too rigid. review its decisions. ' a, As far as possible management Not too much centrali should avoid over-centralisation. i 5, Division of labour. The management should be in a posi- tion to properly divide the available mae ‘power in such a way that | there is no wastage or there js no over-lapping. : 6 No wastage, Good management if expected to avoid wastage as far_as possible, whether i Mey ‘be human resources OF Heer It should see that money is spent in such a way that maxi- rum profits are available to the industry. 7. Proper controls. Good management is supposed to exercise discipline and controls over employees and over expenditure. §, Stress on training, Management should ensire that, the employees at all levels get refresher and in-service training to keep their knowledge uptodate. 9. Contacts the employees. Employees are the life and blood stan organisation. Hence management should have both formal and informal contacts with the employees. 10, Clear targets. Managements vst have clear and realis- tic planning. It must also Know about its target and the way how it iis to achieved. 4 oie Association of employees. Management must associate sith the workers while making the policy for the industry. { | ' 12. Providing In | to provide incentive, initiative and. adequate wages to its | it is bound to be miserable failure canoes tives and initiatives, If management fails? Scanned with CamScanner© INDUSTRIAL MANAGEMENT 43 Advantages of a Good Organisation J The following are the important advantages from a good: organisation : »_ (0) It makes administration easy by d sibilities of individual worker according to ividing duties and respon" his status in the factory. proper work to -ind 'd ‘experience, it promo! output and efficiency. (3) It keeps coordination among Tthe employees of different Jevels, which results in healthy relations and ‘smooth functioning. ment and administra~ (4) It allows sufficient time for top manage tion to work for future expansion, planning and improvements. (2) By assigning duties and allotting duals according to suitability, education an ieee specialisation. This results in the increased (5) It increases the margin of profits. Functions of Management ‘These functions are = (i) Planning (ii) Organising (ii) Directmg (iv) Motivating (») Coordinating (vi) Control. or these, the first two are generally knows, Oy “management if preparation” and the last four, femanagement in action”. The aim preparationent is “frst plan your work, then ‘work your plan”. (i) Planning. Planning means thinking before doing. Before actual work is started, in planning itis decided that what is to ber produced, how much is to be produced, how to be produced when produce it etc. The planning should to be produced, and who are to . be such that it eliminates wastage of material, idleness of men, be sacnecy and capital, In planning policies and objectives, pro- gramme of production and methods of production ete. are decided before hand. (ti) Organising. | When complete planning is done, next step: jsto arrange material, men and money for actual execution of manufacture. The main function consists of two divisions, namely (@) Material organisation (b) Human organisation. It is the human organisation which forms an important function of management. The purpose of organisation is the delegation of autho Dy ri responsibility. i iinet Generally this question is asked in examinatit i __ Get minations of differen universities—discuss how Factory organisation controls the utilisation | Scanned with CamScannerAND ENGINEERING ECONOmics 44 INDUSTRIAL ORGANISATION , ‘ INDUS a en e are discussing this statement ‘of:man, machine and money iw : Ff ‘ds—Factory Uherounder:: ation’ consists of two Wor t ; organisation en and machines a at i act d i g of Bn f inter-relation- cnr mal OTE geen of nese a a ‘the structure, for doing efforts by ah Sa escabind- fervent acommon object. Thus factory Oey a pateial to ‘tion of efforts with the help of man, machine, mon y um cost. give the maximum efficiency in-production at a minim ; i selection To get the good planning, best use of Saupe Theatr -and purchase of materi, to give best results, accuracy of WOrKSTE ‘ship, doing simplifcation and standardisation of products, sh inspection and-supervision, good organisation for the factory vessential, i As large part of the money is spent on purchase of materials and on labour wages. Therefore, it is essential that purchase organi sation should be such that purchase is done correctly, economically, as per standard, in required quantity and at required time to save money. Similarly organisation set up should be such that the work -of each worker and machine should be strictly checked and leakage -and wastage should be traceable easily so that men and machines -are utilised fully, to get maximum efficiency and economy. (ii) Directing. It means the system of directing the plan into operation. Only giving orders is no directing. The person, who directs must have dynamic leadership. This work is done by the ‘directors or General Manager or Managing Director, He issues ‘the instructions to his staff. These instructions must be simple, clear, -complete and reasonable and as far as possible must be in writing, The position of director in a factory is like « captain of a ship. The -duty of director is to issue instructions, explain them, guide the ‘subordinates and.maintain discipline in the whole factory and so on. (iv) Motivating. Suppose a person is highly qualified and ‘technically and physically “strong, but if he is not willing to work hard, his output will be much less. So the function of motivating ‘is to find out the motives of work in aman and then he should be encouraged to do work by keeping his moral high. Motivation is the skill of manager and is linked with co-ordination. (9) Co-ordinating. In an enterprise, there may be large number ‘of workers, altogether with the object of producing particular product. This is the task of co-ordination to integrate and harmonise them to achieve a common object. This is achieved by the skill of manager -and supervisor etc. Control. This is the last but most important function of smanagement. If above five functions are performed perfectly alright then there will be nothing left to control by the manager, but. in spractice certain omissions and errors may arise. So the function Scanned with CamScanner