Professional Documents
Culture Documents
Span of Control can be defined as the total number of direct subordinates that a manager
can control or manage. The number of subordinates managed by a manager varies
depending on the complexity of the work.
You will find two types of span of control when measuring the ratio of employees to managers:
Narrow span of control, which refers to the traditional way of seeing managers as
having only a few subordinates. The organizational structure in this case is tall as
opposed to flat.
Wide span of control occurs when one manager supervises many employees. Most
big firms use wide span of control because it requires less operating costs.
Statistical quality control refers to the use of statistical methods in the monitoring and
maintaining of the quality of products and services. One method, referred to as acceptance
sampling, can be used when a decision must be made to accept or reject a group of parts or
items based on the quality found in a sample. A second method, referred to as statistical
process control, uses graphical displays known as control charts to determine whether a
process should be continued or should be adjusted to achieve the desired quality.
All the tools of SQC uses different tools to analyse quality problem: 1. Descriptive statistic 2.
Statistical process control 3. Acceptance sampling
State Elton Mayo’s illumination experiment with respect to human relation theory.
Illumination experiments were undertaken to find out how varying levels of illumination
(amount of light at the workplace, a physical factor) affected the productivity. The hypothesis
was that with higher illumination, productivity will increase. In the first series of experiments,
a group of workers was chosen and placed in two separate groups. One group was exposed
to varying intensities of illumination.
Since this group was subjected to experimental changes, it was termed as experimental
group. Another group, called as control group, continued to work under constant intensities
of illumination. The researchers found that as they increased the illumination in the
experimental group, both groups increased production. When the intensity of illumination
decreased, the production continued to increase in both the groups.
The production in the experimental group decreased only when the illumination was
decreased to the level of moonlight. The decrease was due to light falling much below the
normal level.
Thus, it was concluded that illumination did not have any effect on productivity but something
else was interfering with the productivity. At that time, it was concluded that human factor
was important in determining productivity but which aspect was affecting, it was not sure.
Therefore, another phase of experiments was undertaken.
Importance of TQM
TQM can have an important and beneficial effect on employee and organizational
development. By having all employees focus on quality management and continuous
improvement, companies can establish and uphold cultural values that create long-term
success to both customers and the organization itself. TQM’s focus on quality helps identify
skills deficiencies in employees, along with the necessary training, education or mentoring to
address those deficiencies.
With a focus on teamwork, TQM leads to the creation of cross-functional teams and
knowledge sharing. The increased communication and coordination across disparate groups
deepens institutional knowledge and gives companies more flexibility in deploying personnel.
Threats or
Opportunities to the organization.
The following section deepness each of the key areas of PESTLE analysis:
1. Political: These factors come from government influences. Here we investigate the
degree to which a government may influence a business environment.
Like, a political change may introduce many influences. For example, the government may
add a new tax. That may change the entire revenue generation structure of an organization.
2. Economics: These factors are related to the economic performance of the country.
Which have long term impacts due to its direct effect on businesses – Such as a rise in the
inflation rate, which may have an impact over
How organizations price their products and services,
the purchasing power of consumers, etc.
3. Social: Every culture has a unique mindset. And, that uniqueness cast an impact on
businesses and sales of their products and services. Organizations need to study:
Social lifestyle,
Domestic structures,
And cultural implications for understanding their consumers and market better.
And, that is very important to develop strategic long term plans.
4. Technological: Businesses need to integrate technological development to stay
connected along the way. For that, companies investigate:
How consumers are reacting to technological trends and using for their benefits.
For example, the technological revolution may open new doors to technological trends. This
revolution may produce opportunities for many businesses. And, the companies which are
unable to integrate these new trends face enormous threats.
5. Legal: The legislation’s change from time to time and affect many businesses, such as
labour law, food safety law. Organizations need to make sure legal compliance’s. And,
sometime it need change in strategies.
For example, the minimum unit price of alcohol may introduce threats to the organization,
which is selling with a higher price of the minimum unit price. And, business pressure could
enforce them to lower the prices.
6. Environmental: These factors come from the natural environment. And, affect certain
industry like farming, agriculture. Example factors could be an increasing concern in
packaging and pollution.
Human Relations Theory focuses specifically on the individuals’ needs and resultant
behaviours of individuals and groups. It takes an interpersonal approach to managing human
beings. It presents the organization is made up of formal and informal elements.
The formal elements of an organization are its structure. The informal aspects of the
organization include the interactions between individuals. In this way, the organization is a
type of social system.
This system should be managed to create individual job satisfaction and the resultant
motivation of the individual.
At the core of human relations theory are these six basic propositions:
Motion study is a systematic way of determining the best method of doing the work by
scrutinizing the motions made by the worker or the machine. As per Gilbreath it is the
science of eliminating the wastefulness due to unnecessary motions. He was interested in
finding the one best way to do the job. He analysed the motions of bricklayers and was
successful in reducing the number of motions of a bricklayer from 18 to 5.
BASIS FOR
THEORY X THEORY Y
COMPARISON
Focuses on Psychological needs and Social needs, esteem needs and self-
Security needs actualization needs.
What is planning? State the different steps of planning? State the important features of good
planning.
Planning is defined as setting an objective for a given time period, developing various
strategies or methods to attain them, and then selecting the best possible alternatives from
the various methods available.
Planning Process
Setting up the Objective- Till the manager does not have an objective, he cannot do
the planning, so the goal should always be clear.
Developing Premises- As we know the future is certain, therefore planning is
always made keeping the future in mind. Hence in the function of management,
certain assumptions are required to be made. These assumptions are known as
premises. Premises means making assumptions for the future. The manager can
make the assumption by studying the past decisions, policies, studying the facts, and
existing plans.
Listing the Various Alternatives for Achieving the Objectives- After setting up
objectives, the managers make a list of alternatives through which the organization
can achieve its objectives.
Evaluation of Different Alternatives- In this step of the planning process, managers
evaluate and closely examine each of the alternative plans. Every alternative will go
through an examination where all its pros and cons will be weighed. The alternative
plans need to be examined taking into account the organizational objectives.
Selecting an Alternative- This is the stage of planning in which the manager has to
adopt a decision. Here, the manager will choose the best and most feasible plan to
implement. The ideal alternative that is selected by the manager should be the most
profitable one with the least amount of negative consequences and is also adaptable
to dynamic situations.
Implement the Plan- This is the step where other managerial functions are also
considered. The step is concerned with putting the plan into action, i.e., doing what is
required. For example, if a manager makes a plan to increase production then more
labour, and more machinery will be required. Hence, this step would also involve
arranging for labour and the purchase of machinery.
Follow Up- To find out whether plans that are formulated are being implemented and
activities are performed according to schedule is also part of the planning process.
To stick with the plan and follow it in a given time frame is equally important to
ensure that organization objectives are attained.
Importance/ Significance of Planning
1. Planning Provides Direction- Planning provides us with direction. How to work in
the future includes planning. By stating in advance, how work has to be done,
planning provides direction for action.
2. Planning Reduces the Risk of Uncertainties- Uncertainty means any events in the
future that change our course of action. Planning helps the manager to face
uncertainty. We cannot remove such uncertainty from our life. However, due to
planning, we can work on such uncertainty. Just like an unforeseen event is going to
come in which we are going in loss. So, if we are already ready, we have made funds
for it, then we will be able to use it to fight that unforeseen situation.
3. Planning Reduces Overlapping and Wasteful Activity- Overlapping means the
working relationship has not been allocated specifically. If we plan, our time will not
be wasted.
4. Planning Promotes Innovative Ideas- If you are planning, then you get feedback
from your senior managers or juniors, from there you can get innovative ideas.
Besides, if you make your employees part of the decision-making, then you can get
new creative ideas from there too.
5. Planning Facilitates Decision- Planning helps in decision-making. The more
efficient you plan, the more right you will be in the decision. With good planning, our
decision-making gets accurate, it becomes feasible and it also gets improved.
6. Planning Establishes a Standard for Controlling- Controlling is incomplete without
planning and planning is incomplete without controlling. If you have done the
planning but you do not know if the thing is happening or not, then the planning is
useless. In case, there is no planned output then the controlling manager will have no
base to compare whether the actual output is adequate or not.
7. Focuses Attention on Objectives of that Company- Through planning, efforts of
all the employees are directed towards the achievement of organizational goals and
objectives.
He found that all activities of the industrial enterprise could be divided into six
groups:
Henry Fayol was the first person to recognise the different qualities for manager.
(ii) Mental (ability to understand and learn, judgement, mental vigour, and adaptability);
(iii) Moral (energy, firmness, willingness to accept responsibility, initiative, loyalty, tact and
dignity);
3. Functions of Management:
Fayol classified the elements of management into five and all such elements were
considered by him as the functions of management.
1. Planning
2. Organising
3. Staffing
4. Commanding
5. Coordinating
6. Controlling
1. Division of work,
2. Authority and responsibility,
3. Discipline,
4. Unity of command,
5. Unity of direction,
6. Subordination of personal interest to organizational interests,
7. Remuneration,
8. Centralization,
9. Scalar chain,
10. Order,
11. Equity,
12. Stability of tenure,
13. Span of co-operation and
14. Initiative
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.
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.
Within the MBO framework, the performance review is achieved by the participation of the
managers concerned.
5. Providing feedback
6. Performance appraisal
Performance reviews are a routine review of the success of employees within MBO
organizations.
Some of the problems and limitations associated with MBO are as explained below:
1. Lack of Support of Top Management:
In traditional organizations, the authority is vested in the top management and it flow from
top to bottom. In MBO, subordinates are given an equal opportunity of participation, which is
resented by the top management. This system cannot succeed without the full support of top
management.
The subordinates can also be resentful towards the system of MBO. Sometimes, while
setting the goals, they may be under pressure to get along with the management and the
objectives which are set may be unrealistically high or far too rigid. The subordinates,
generally, feel suspicious of the management and believe that MBO is another play of the
management to make them work harder and become more dedicated and involved.
The MBO will be successful only if the goals can be set in quantifiable terms. But if the areas
are difficult to quantify and difficult to evaluate, it will not be possible to judge the
performance of the employees. Moreover MBO does not have any subjectivity in
performance appraisal. It rewards only productivity without giving any consideration to the
MBO is quite costly and a time consuming process. There is a lot of paper work involved.
Moreover, there are a lot of meetings and too many reports to be prepared, which add to the
responsibilities and burden of the managers. Because of these reasons managers generally
Under MBO, goals are set only for a short period, say for six months or one year. This is
because of the reason that goals being quantitative in nature, it is difficult to do long range
planning. Since the performance of the subordinate is to be reviewed after every six months
or one year, they tend to concentrate on their immediate objectives without caring for the
long range objectives of the enterprise. This emphasis on short term goals goes against the
Most of managers lack adequate skills, knowledge and training required in interpersonal
interaction which is required in the MBO. Many managers tend to sit down with the
subordinate, dictate the goals and targets with no input permitted from the subordinates and
then demand that the goals be achieved in a specified time. Whether the goals are realistic
or not does not enter the picture. In this type of environment, two way communication is not
there and objectives are imposed on the subordinates. This destroys their morale, initiative
and performance.
7. Poor Integration:
Generally, the integration of the MBO with the other systems such as forecasting and
budgeting is very poor. This lack of integration makes the overall functioning of the system
very poor.
8. Lack of Follow Up:
Under the system of MBO, the superior must get in touch with the subordinate at the
appropriate time and at that time, the subordinate will inform the boss exactly what has been
accomplished and how. If the superior delays the meeting, it will create hurdles in the
successful implementation of MBO as the subordinate will also start taking the programme
casually.
When goals of one department depend upon the goals of another department, cohesion is
difficult to maintain. In such cases, the achievement of goals will also become very difficult.
10. Inflexibility:
MBO may make the organization rigid. As the goals are set after every six months or one
year, the manager may not like to revise the goals in between, even if the need arises, due
to fear of resistance from the subordinates. The managers must learn to handle this
situation, because sometimes revision of short term goals is necessary for the achievement
MBO is useful largely for the managerial and professional employees. It is not appropriate
for all levels and for everyone because of the heavy demands made by it. It can be made
applicable only when both the subordinates and manages feel comfortable with it and are
It takes a lot of time, sometimes 3-5 years to implement the MBO programme properly and
fully and some research studies have shown that these programmes can lose their impact
Management is the process of planning and organising the resources and activities of a
business to achieve specific goals in the most effective and efficient manner possible.
Efficiency in management refers to the completion of tasks correctly and at minimal costs.
Effectiveness in management relates to the completion of tasks within specific timelines to
yield tangible results.
Functions:
1. Planning: When you think of planning in a management role, think about it as the
process of choosing appropriate goals and actions to pursue and then determining
what strategies to use, what actions to take, and deciding what resources are needed
to achieve the goals.
4. Staffing: Recruiting and selecting employees for positions within the company (within
teams and departments).
5. Controlling: Evaluate how well you are achieving your goals, improving performance,
taking actions. Put processes in place to help you establish standards, so you can
measure, compare, and make decisions.