Professional Documents
Culture Documents
Management is a vital aspect of the economic life of a man which is an organised group
activity. Management provides leadership through a business enterprise.
Koontz: Management is the art of getting things done through and with people in formally
organised groups.
1Q. FUNCTIONS (or) PROCESS (or) HIERARCHY:
Management as a process may involve several activities or elements. These activities are
called the functions of management. Many management experts have mentioned functions
of management by studying different organisations from different angles. “Luther Gullick
coined the word “POSDCORB” to describe the functions of management. Each letter of
this word denotes the initial letter of a management function, thus
“P” stands for Planning
“O” stands for organising
“S” stands for Staffing
“D” stands for directing
“CO” stands for Coordinating
“R” stands for Reporting
“B” stands for Budgeting
➢ The Important functions of management are discussed below:
1. The first management function in scope of management functions that managers must
perform is planning. Within this function plan is created to accomplish the mission and vision
of the business entity.
2.Organizing is the second function of a manager, where Manager had previously prepared
a plan, establishing an appropriate organisational structure in the business organisation.
3. Staffing, as the next function of management, consists of a selection of appropriate staff for
the organisation to reach a goal / goal easier and more efficiently.
4. Direction is an important managerial function through which management initiates actions
in the organisation. It is a function of management which is related with instructing, guiding
and inspiring human factor in the organisation to achieve organisational objectives
5. Control is any process that guides activity towards some predetermined goals. It can be
applied in any field such as price control, distribution control, pollution control etc.
2Q. GENERAL PRINCIPLES OF MANAGEMENT (OR) ADMINISTRATIVE
MANAGEMENT (OR)
HENRY FAYOL 14 PRINCIPLES OF MANAGEMENT:
Henry Fayol has given fourteen principles of management. He has made distinction between
management principles and management elements. Fayol evolved 14 general principles of
management which are still considered important in management.
1. Division of work: This principle suggests that work should be assigned to a person for
which he is best suited. This division of work can be applied at all levels of the organisation.
2. Authority and responsibility: Responsibility means the work assigned to any person, and
authority means rights that are given to him to perform that work. It is necessary that adequate
authority should be given to discharge the responsibility.
3. Discipline: This principle emphasises that subordinates should respect their superiors and
obeys their orders. Following rules and regulations, and taking disciplinary actions.
4. Unity of command: Subordinates should receive orders from one superior only. If he
receives orders from more than one person, he can satisfy none. (Order from one boss)
5. Unity of Direction: Each group of activities having the same objective must have one head
and one plan. (There should be one man to direct the team)
6. Subordination of individual to general interest: While taking any decision, the general
interest, i.e., the interest of the organisation as a whole should be preferred
7. Remuneration: Management should try to give fair wages to the employees and
employees should have the satisfaction of being rightly paid. Remuneration must give
satisfaction to both the employers and employees. (salaries, appreciation, awards,
recognition)
9. Scalar Chain: This is the chain of superiors from the highest to the lowest ranks. The
order of this chain should be maintained when some instructions are to be passed on or
enquiries are to be made. It suggests that each communication going up or coming down
must flow through each position in the line of authority.
10. Order: This is a principle relating to the arrangement of things and people. In material
order, there should be a place for everything and everything should be in its place. In social
order, there should be the right man in the right place. Placement of men and materials
should be properly made.
11. Equity: This principle requires the managers to be kind and just so that loyalty can be
won from the subordinates. Equity is a combination of justice and kindness.(treat everyone
equally, no partiality, no discrimination)
12. Stability of Tenure: Employees should be selected on the principles of stability of
employment. They should be given necessary training so that they become perfect. There
should not be frequent termination of employees.
(stability of employment, Policies should be employment friendly)
13. Initiative: Within the limits of authority and discipline, managers would encourage
their employees to take initiative. (support the employee invitation and accept)
14. Esprit de Corps: This is the principle of Union is strength ‘and extension of unity of
command for establishing teamwork. Managers should infuse the spirit of teamwork in
their subordinates.
(build team spirit and team appreciation not individual)
3Q. Explain about Scientific and Modern management by Taylor and Fayol.
Scientific management, developed by Frederick Winslow Taylor in the late 19th and early
20th centuries, is an approach to management that focuses on increasing efficiency and
productivity in organisations. Taylor's ideas revolutionised the way work was organised and
performed, particularly in manufacturing and industrial settings. Here's an explanation of
scientific management in easy context:
1. Work Study: Taylor believed that work should be analysed scientifically to determine
the most efficient way of performing tasks. He conducted time-and-motion studies to
break down work processes into smaller, repetitive tasks and identify the most efficient
methods of completing them.
2. Standardisation: Taylor advocated for standardising work methods and tools to
eliminate variability and inefficiency. He recommended developing standardised
procedures, tools, and techniques for performing tasks to ensure consistency and
maximise productivity.
3. Training and Supervision: Taylor emphasised the importance of training workers to
perform tasks using the most efficient methods identified through scientific analysis.
He also believed in close supervision to ensure that workers followed standardised
procedures and met performance targets.
4. Piece-Rate System: Taylor proposed the implementation of a piece-rate system, where
workers are paid based on the number of units they produce. This system provided
incentives for workers to increase their productivity and output, as they could earn more
money by producing more.
5. Worker-Management Cooperation: Contrary to popular belief, Taylor's scientific
management principles also emphasised the importance of cooperation between
workers and management. He believed that workers should be involved in decision-
making processes and that management should provide support and incentives for
workers to increase productivity.
4Q. CONTINGENCY APPROACH:
The contingency approach to management holds that management techniques should be
dependent upon the circumstances. In this lesson, you will learn what the contingency
approach to management is and the key elements of contingency management.
Definition: A contingency approach to management is based on the theory that
management effectiveness is contingent, or dependent, upon the interplay between the
application of management behaviours and specific situations. In other words, the way
you manage should change depending on the circumstances. One size does not fit all.
Theory: The contingency approach to management finds its foundation in the contingency
theory of leadership effectiveness developed by management psychologist Fred Fielder.
The theory states that leadership effectiveness, as it relates to group effectiveness, is a
component of two factors: task motivation, or relation motivation, and circumstances. You
measure task motivation, or relation motivation, by the Least Preferred Co-worker (LPC)
scale.
The theory states that task or relations motivations are contingent upon whether the
manager is able to both control and effect the group's situational favorability, or outcome.
According to the theory, you can assess situational favorability by three factors:
1. Leader-Member relations: This factor addresses the manager's perception of his
cooperative relations with his subordinates. In other words, is the cooperation
between you and your employees good or bad?
2. Task Structure: This factor relates to whether the structure of the work task is
highly structured, subject to standard procedures and subject to adequate measures
of assessment. Certain tasks are easy to structure, standardise and assess, such as
the operation of an assembly line
3. Position Power: This factor asks if the manager's level of authority is based on
punishing or rewarding behaviour. For example, does the manager derive his
authority from providing bonuses for meeting sales goals or terminating employees
for failure to meet the goals.
UNIT - II
1Q. DECISION MAKING:
Meaning: Decision making may be viewed as the process of selecting a course of action
from several alternatives in order to accomplish a desired result.
Definition: According to George R. Terry, “Decision making is the selection based on
certain criteria from two or more alternatives”.
DECISION MAKING PROCESS:
Using a step-by-step decision-making process can help us make more deliberate, thoughtful
decisions.
1. Defining and analysing the real problem: The manager should first find out what is
the real problem. After finding out the true problem, the manager must analyse it carefully.
He should find out the cause and effect of the problem.
2. Developing Alternative Solutions: After defining and analysing the real problem, the
manager should develop alternative solutions for solving the problem. Only realistic
solutions should be considered.
3. Evaluating the Alternative Solutions: The manager should carefully evaluate the
merits and demerits of each alternative solution. He should compare the cost of each
solution. He should compare the risks involved. He should find out which solution will be
accepted by the employees.
4. Selecting the best Solution: After evaluating all the solutions, the manager should
select the best solution. He should select a solution which is less costly and less risky. He
should select a solution which is accepted by the employees. The best solution is called
the "Decision".
5. Implementing the Decision: After making the decision, the manager should implement
it. That is, he should put the decision into action. He should communicate the decision to
the employees. This can be done by involving them in the decision making process.
6. Follow Up: After implementing the decision, the manager must follow up. That is, he must
get feedback about the decision. He should find out whether the decision was effective or not.
It helps to improve the quality of future decisions.
TECHNIQUES OF DECISION MAKING:
1.Managerial analysis: This technique is used in decision-making to figure out how much
extra output will result if one more variable (e.g., raw material, machine and worker) is
added. Paul Samuelson defines marginal analysis as the extra output that will result by
adding one extra unit of any input variable, other factors being held constant. Marginal
analysis is particularly useful for evaluating alternatives in the decision-making process.
2.Financial analysis: This decision-making tool is used to estimate the profitability of an
investment, to calculate the payback period (the period taken for the cash benefits to
account for the original cost of an investment) and to analyse cash inflows and cash
outflows. Investment alternatives can be evaluated by discounting the cash inflows and
cash outflows.
3.Break-Even Analysis: This tool enables decision-making to evaluate the available
alternatives based on price, fixed cost and variable cost per unit. The level of sales which
is necessary to cover the fixed costs can be estimated by break even analysis.
4.Ration analysis: It is an accounting tool for interpreting accounting information. Ratios
define the relationship between two variables. The basic financial ratios compare costs
and revenue for a particular period. The purpose of conducting a ratio analysis is to
interpret financial statements to determine the strengths and weaknesses of a firm, as well
as its historical performance and current financial condition.
5.Operation research: Operations research, rather simply defined, is the research of
operations. An operation may be called a set of acts required for the achievement of a
desired outcome. Such complex interrelated acts can be performed by four types of
systems: man, machine, man-machine unit and any organisation of men, machine and
man-machine units.
6.Force field analysis: This is a useful technique for looking at all the forces for and
against a decision. In effect, it is a specialised method of weighing pros and cons. By
carrying out the analysis one can plan to strengthen the forces supporting a decision and
reducing the impact of opposition to it.
7.Brainstorming: Brainstorming is meant to overcome pressures for conformity in the
interacting group that retard the development of creating alternatives. It does this by
utilising an idea-generation process that specifically encourages any and all alternatives,
while withholding any criticism of those alternatives.
8.Nominal group technique: The nominal group technique restricts discussion or
interpersonal communication during the decision-making process, hence the term
nominal. Group members are all physically present, as in a traditional committee meeting,
but members operate independently.
2Q. CONTROLLING:
Introduction: Managers formulate mission, objectives, strategies and plans, organise the
people and resources and direct the people to implement the plans to achieve the
objectives.
Definition:
Control consists of making something happen the way it was planned to happen.
➢ TYPES OF CONTROL:
1.Strategic Control: Strategic control aims at achieving the results planned at the time of
strategy formulation. It is a special type of org. control. It gives information on whether
strategic processes are appropriately compatible and functioning in a desirable direction.
2.Operational Control: It deals with monitoring and evaluating the operations to ensure that
org issues and operation function in the right direction. It focuses on various aspects of the
production, market, human resources and financial issues of the company.
Example: Middle level and low level.
➢ CONTROLLING PROCESS:
1. Establishment of Control Standards: The
first step of the process of controlling is to
establish standards of performance against which
the actual performance of the organisation is
measured. An organisation should clearly define
its standards to the employees and must establish
attainable, understandable, and realistic
standards to be achieved.
2. Measurement of Performance: The second
major step in the control process is the measurement of performance. The step involves
measuring the performance in respect of a work in terms of control standards. Measuring
performance is expressed in physical and monetary terms such as production units, sales
volume, profits etc.,
3.Comparing actual and Standard Performance: The third major step in the control
process is the comparison of actual and standard performance. It involves two steps:
i. Finding out the extent of deviations, and
ii. Identifying the causes of such deviations.
4.Correction of Actions: This is the last step in the control process which requires that actions
should be taken to maintain the desired degree of control in the system or operation.
Control actions may be
i. Review of plans and goals and change therein on the basis of such review.
ii. Change in the assignment of tasks.
iii. Change in existing techniques of direction.
iv. Change in organisation structure
➢ Controlling Techniques
3Q. PLANNING:
According to Henry Fayol: Planning is deciding the best alternatives among others to
perform different managerial operations in order to achieve the predetermined goals.
Generally speaking, planning is deciding in advance what is to be done, that is, a plan is a
projected course of action.
PLANNING:
According to Henry Fayol: Planning is deciding the best
alternatives among others to perform different managerial
operations in order to achieve the predetermined goals.
Generally speaking, planning is deciding in advance what is
to be done, that is, a plan is a projected course of action.
Planning are three types: -
i. Long Term Planning ---(above 5 years)
ii. Medium Term Planning ---(below 5 years)
iii. Short Term Planning ---(less than 1 year)
PLANNING PROCESS:
It is not necessary that a particular planning process is applicable for all organisations and for
all types of plans because the various factors that go into the planning process may differ from
plan to plan or from one organisation to another. This can be presented by using the following
diagram
➢ Planning Techniques
Planning is a fundamental function of management that involves setting goals, determining
actions to achieve those goals, and allocating resources effectively. There are several
techniques and tools that managers can use to facilitate the planning process. Here's a detailed
explanation of planning techniques in easy context:
UNIT - III
1Q. JOHARI WINDOW and TRANSACTIONAL ANALYSIS
➢ JOHARI WINDOW
The Johari Window is like a tool that helps people understand themselves and how they
interact with others. It's a simple way to think about what we know about ourselves and what
others know about us. Imagine it like a window with four different parts. Each part represents
something different about what we know and what others know about us. It's helpful because
it shows us areas where we might not be aware of how we come across to others, and it
encourages us to communicate better and learn more about ourselves.
The FOUR STAGES OF THE JOHARI
WINDOW:
1. Open Area (Known to self and others):
This is what you and others know about you. It's
like the part of you that's out in the open. For
example, if you're good at playing soccer, and
everyone knows it, that's in the open area.
2. Blind Area (Known to others, unknown to
self):
This is what others see in you, but you might not see it yourself. It's like your hidden blind
spot. For instance, if you have a habit of tapping your foot when you're nervous, others notice
it, but you may not realise you're doing it.
3. Hidden Area (Known to self, unknown to others):
This is what you know about yourself, but you keep it hidden from others. It's like your secret
vault. For example, if you're really scared of spiders but don't tell anyone, that's in the hidden
area.
4. Unknown Area (Unknown to self and others):
This is the part of you that neither you nor others know about. It's like a mystery waiting to be
discovered. For instance, you might have a hidden talent for painting that neither you nor
anyone else knows about yet.
Understanding these four areas can help you improve how you communicate and relate to
others. Sharing more about yourself can expand the open area, listening to feedback can reduce
the blind area, opening up about hidden thoughts or feelings can decrease the hidden area, and
exploring new things can help uncover the unknown area.
1. Parent Ego State: This ego state is based on learned behaviours, attitudes, and
responses adopted from parental figures or other authority figures. It can
manifest as nurturing and supportive (Nurturing Parent) or critical and
controlling (Critical Parent).
2. Adult Ego State: This ego state represents rational, objective thinking and
behaviour based on current reality and information. It involves problem-
solving, decision-making, and critical thinking independent of past influences.
3. Child Ego State: This ego state reflects learned behaviours, emotions, and
attitudes from childhood. It can be further divided into Natural Child
(spontaneous and playful) and Adapted Child (compliant or rebellious in
response to external influences).
The Porter and Lawler Model, developed by Lyman W. Porter and Edward E. Lawler III in
the 1960s, is a theory of motivation and job satisfaction in organisational psychology. This
model seeks to explain how individual motivation affects job performance and satisfaction
through the interplay of various factors.
● Effort: The model begins with the individual's perception of the effort required to
perform a job. This perception is influenced by factors such as job demands,
expectations, and personal abilities.
The Porter and Lawler Model emphasises the importance of understanding individual
perceptions and beliefs about effort, performance, and rewards in motivating employees. By
identifying and addressing factors such as expectancy, instrumentality, and valence,
organisations can design more effective motivational strategies and enhance job satisfaction
and performance.
7Q. PERCEPTION:
MEANING: Perception can be defined as a process by which individuals organise and
interpret their sensory impressions in order to give meaning to their environment. Perception
is not just what one sees with eyes. It is a much more complex process by which an individual
selectively absorbs or assimilates the stimuli in the environment
According to S.P. Robbins: Perception may be defined as a process by which individuals
organise and interpret their sensory impressions in order to give meaning to their
environment.
➢ FIVE STAGES IN PERCEPTUAL PROCESS:
Stage I: Observation Phase: It depicts the environmental stimuli being observed by the
five senses of the perceived
Stage II: Selection of the Stimuli: This is governed both by factors external to the
Perceived, such as the characteristics of the stimulus, and internal to the individual, such
as the personality disposition and motivations of the perceiver.
Stage III: Organising Stage: In this stage, the perceiver is influenced by figure and
ground, grouping, and several perceptual errors such as stereotyping halo effects,
projection and perceptual defence.
Stage IV: Interpretation Stage: This stage is governed by the perceiver’s assumptions
of people and events and attributions about causes of behaviour and feelings.
Stage V: Behaviour Response: In this stage the response of the perceiver takes on both
covert and overt characteristics. Covert response will be reflected in the attitudes, motives,
and feelings of the perceiver and overt responses will be reflected in the actions of the
individual.
FACTORS INFLUENCING PERCEPTION:
Several factors influence how we process the perceptual inputs and transform them into
outputs. There are three broad categories: Characteristics of Perceiver, Characteristics of
Target, and Characteristics of Situation.
✓ Characteristics of Perceiver: A person’s needs and motives, self-concept, past
experience, emotional state, and personality aspects strongly influence the
perceptual process.
1. Needs and Motives: Unsatisfied needs or motives stimulate individuals and may
exert a strong influence on their perception. For example, two groups of subjects.
One group who was deprived of food for about 24 hours and the other group which
had enough food were shown the blurred pictures and asked to explain the contents.
The first group perceived the blurred image as food far more frequently than the
other group. People's needs and motives thus play a big part in the perceptual
process.
2. Self-Concept: It refers to how a person perceives himself/herself which in turn
influences his or her perception of the world around them. If a person perceives
himself as incompetent, then he perceives the world as threatening. On the other
hand, if he feels himself as confident and capable, he will perceive everything
around as friendly.
3. Attitudes: The preferences and livingness affect one's perception. A lecturer, who
likes bigger classes, feels comfortable in a lecture session which has more than a
hundred students. Another lecturer, who likes small classes with a lot of questions,
may not be so comfortable in such big classes.
4. Interests: Individual’s focus of attention is also influenced by the interests of
people. A plastic surgeon will be more likely to notice an imperfect nose than a
plumber. Because our individual interests differ considerably, what one person
notices in a situation, can differ from what another person perceives.
5. Past experiences: Individuals past experiences also influence in moulding one's
perception. For example, if one has had problems responding to examination
questions in the past, he or she will tend to perceive even simple, straightforward
examination questions as tricky. Likewise, if a person was betrayed by a couple of
friends, he or she would never venture to cultivate new friendships in future.
6. Psychological or Emotional State: If an individual is depressed, he or she is likely
to perceive the same situation differently from the other person who is at the extreme
level of excitement or happiness. If a person has been scared of seeing a snake in
the garden, she is likely to perceive a rope under the bed as a snake.
8Q. Personality Types:
Personality refers to the unique set of characteristics, traits, behaviours, and patterns of
thinking and feeling that define an individual's distinct identity. While each person has a
unique personality, psychologists have identified several broad types of personality traits that
are commonly observed in people. Here are some simplified explanations of these personality
types:
➢ Transactional Leadership:
➢ Definition:
➢ Conflict Management:
➢ Change Management:
1. Assessment: Assessing the need for change by identifying gaps, opportunities, and
challenges within the organisation, and determining the desired future state.
2. Planning: Developing a comprehensive change management plan that outlines
objectives, strategies, timelines, and resources required to support the change
initiative.
3. Communication: Communicating the rationale for change, its benefits, and the
expected impact on stakeholders to build understanding, trust, and commitment to
the change effort.
4. Engagement: Engaging stakeholders at all levels of the organisation through
involvement, participation, and collaboration to gain buy-in and support for the
change initiative.
5. Implementation: Executing the change plan effectively by deploying resources,
monitoring progress, addressing challenges, and adjusting strategies as needed to
ensure successful implementation.
6. Evaluation: Evaluating the effectiveness of the change initiative by measuring
outcomes, soliciting feedback, and identifying lessons learned to inform future
change efforts.
Change management helps organisations adapt to external pressures, seize opportunities, and
achieve strategic objectives by building resilience, agility, and capacity for innovation amidst
uncertainty and complexity.
3Q. ENUMERATE THE STEPS INVOLVED IN ORGANIZING PROCESS?
The organising process involves several steps to effectively structure and coordinate resources
within an organisation. Here are the key steps involved:
1. Identifying Objectives: Define the goals and objectives that the organising process
aims to achieve. This could involve determining the organisation's mission, vision,
and strategic objectives.
2. Identifying Activities: Identify the tasks and activities required to achieve the
organisation's objectives. This includes breaking down large goals into smaller,
manageable activities.
3. Grouping Activities: Group related activities together based on their similarities,
dependencies, or functions. This helps in organising tasks into logical units and
facilitates coordination and collaboration.
4. Establishing Relationships: Determine the relationships and reporting structures
among individuals, departments, and units within the organisation. This involves
defining lines of authority, communication channels, and decision-making
processes.
5. Assigning Responsibilities: Allocate roles, responsibilities, and authority to
individuals or teams based on their skills, expertise, and resources. Clearly define
job descriptions, roles, and expectations to ensure clarity and accountability.
6. Delegating Authority: Delegate decision-making authority and empower
individuals or teams to make decisions within their areas of responsibility. Provide
necessary training, resources, and support to enable effective decision-making.
7. Establishing Accountability: Define performance metrics, standards, and
benchmarks to measure progress and evaluate outcomes. Establish mechanisms for
monitoring and assessing performance, and hold individuals accountable for
achieving their goals.
4Q. DEPARTMENTATION AND DECENTRALISATION
➢ DEPARTMENTATION
It is not possible for a single person to perform all the work in the organisation. To work on
this limitation. The total work in the organisation is divided into small units/parts known as
Department.
Definition: “Departmentation is the process of dividing and grouping the activities into
separate units known as Department.”
➢ Methods/Types of Departmentation:
● Departmentation by Function: Under this method, departments are created on the
basis of functions performed in the organisation. The organisation performs major
functions like HR, Finance, Marketing, R&D etc., which are grouped into different
departments.
● Departmentation by Product: Grouping of activities on the basis of product produced
by the organisation is called Departmentation by product. This type of Departmentation
is useful for the organisation which produces different types of products. Ex:
SAMSUNG
● Departmentation by Process: Where the production is carried through different
processes for converting the raw material into finished product.
● Departmentation by Customers: When the departments are created on the basis of
customers to be served, we call in Departmentation by customers. An organisation may
have different types of customers and each type of customer requires specialised
services. In such cases the departments are created on the basis of customers.
● Departmentation by Area: Departmentation based on Geographical area is often used
when the company has several branches spread throughout the country. Indian Railways
is the example for this type of department. Indian Railways is divided into southern,
north, east, west.
➢ Decentralisation:
It refers to the distribution of decision-making authority and power to lower levels of an
organisation. Instead of centralising decision-making at the top, decentralisation allows for
greater autonomy and flexibility at various levels.
● Methods/Types of Decentralization:
Decentralisation can take various forms or methods, each with its own characteristics and
implications for organisational structure and decision-making processes. Here are some
common types or methods of decentralisation: