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8Ps of Integrated Service Management

Product. Managers must select the features of both the core product and the bundle of supplementary service elements surrounding it, with reference to the benefits desired by customers and how well competing products perform. In short, they must be attentive to all aspects of the service performance that have the potential to create value for customers.

Place. Delivering product elements to customers involves decisions on the place and time of delivery as well as on the methods and channels employed. Delivery may involve physical or electronic distribution channels, depending on the nature of the service being provided. Use of messaging services and the Internet allows information-based services to be delivered in cyberspace for retrieval by telephone or computer wherever and whenever it suits the customer. Firms may deliver service directly to customers or through intermediary organizations, such as retail outlets that receive a fee or percentage of the selling price to perform certain tasks associated with sales, service, and customer contact, speed and convenience of place and time for the customer are becoming important determinants in service delivery strategy.

Process. Creating and delivering product elements to customers requires the design and implementation of effective processes that describe the method and sequence of actions in which service operating systems work. Badly designed processes are likely to annoy customers when the latter experience slow bureaucratic, and ineffective service delivery. Similarly, poor processes make it difficult for frontline staff to do their jobs well, result in low productivity, and increase the likelihood of service failures.

Productivity and Quality. These elements, often treated separately, should be treated strategically as interrelated. No service firm can afford to address either element in isolation. Productivity relates to how inputs are transformed into outputs that are valued by customers, whereas quality refers to the degree to which a service satisfies customers by meeting their needs, wants, and expectations. Improving productivity is essential to keep costs under control, but managers must beware of making inappropriate cuts in service levels that are resented by customers (and perhaps by employees, too).Service quality, as defined by customers, is essential for product differentiation and building customer loyalty. However, investing in quality improvement without understanding the tradeoff between incremental costs and incremental revenues may hurt profitability.

People. Many services depend on direct, personal interaction between customers and a firms employees (such as getting a haircut or eating at a restaurant ). The nature of these interactions strongly influences the customers perceptions of service quality. Customers will often judge the quality of the service they receive based on their assessment of the people providing that service. They may also make judgments about other customers they encounter. Successful

service firms devote significant effort to recruiting, training, and motivating their personnel. Firms often seek to manage customer behavior, too.

Promotion and Education. No marketing program can succeed without effective communications. This component plays three vital roles: providing needed information and advice, persuading target customers of the merits of a specific product, and encouraging them to take action at specific times. In services marketing, much communication is educational in nature, especially for new customers. Companies may need to teach these customers about the benefits of the service, as well as where and when to obtain it, and provide instructions on how to participate in service processes. Communications can be delivered by individuals, such as salespeople and trainers, or through such media as TV, radio, newspapers, magazines, posters, brochures, and Web sites. Promotional activities may serve to marshal arguments in favor of selecting a particular brand or use incentives to catch customers attention and motivate them to act.

Physical Evidence. The appearance of buildings, landscaping, vehicles, interior furnishing, equipment, staff members, signs, printed materials, and other visible cues all provide tangible evidence of a firms service quality. Service firms need to manage physical evidence carefully, because it can have a profound impact on customers impressions. In services with few tangible elements, such as insurance, advertising is often employed to create meaningful symbols. For instance, an umbrella may symbolize protection, and a fortress, security.

Price and Other User Costs. This component addresses management of the expenditures and other outlays incurred by customers in obtaining benefits from the service product. Responsibilities are not limited to the traditional pricing tasks of establishing the selling price to customers, setting trade margins, and establishing credit terms. Service managers also recognize and, where practical, seek to minimize other burdens that customers may bear in purchasing and using a service, including time, mental and physical effort, and unpleasant sensory experiences, such as noises and smells.

Historical Development of Management


T y r M jo C n e n a lo s a r o c r
An American engineer who worked his way through evening studies for his qualifications. From being an engineer in a steel company he became one of the first of a new breed of very influential management writers and theorists. He is known for defining the techniques of

scientific management which is the study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. He was writing at a time when factories were creating big problems for management who needed new methods for dealing with the management challenges. Taylor was one of the first to attempt to systematically analyze behaviour at work. His model was the machine therefore his ideas are often characterised as the machine model of organisations. Each task was broken down to its smallest unit to identify the best way to do each job. Then the supervisor, would teach it to the worker and make sure the worker did only those actions essential to the task..

Taylors major concern throughout most of his life was to increase efficiency in production, not only to lower cost and raise profits but also to make possible increased pay for workers through their higher productivity. As a young man working in machine shops, he was impressed with the degree of soldiering on the job, of making work, and of producing less rather than more, due primarily to the workers ear that they might work themselves out of a job if they produced more. He saw soldiering as a system. Form his own experience, he knew that much higher productivity was possible without unreasonable effort by the workers. Taylor decided that the problem of productivity was a matter of ignorance on the part of both management and labor. Part of this ignorance arose from the fact that neither managers nor workers know what constituted a fair days work were concerned too much with how they should divide the surplus that arose from productivity-the split in thinking between pay and profits-and not enough with increasing the surplus so that both owners and laborers could get more compensation. In brief, Taylor was productivity as the answer to both higher wages and higher profits. He believed that the application of scientific methods, instead of custom and rule of thumb, could yield productivity without the expenditure of more human energy or effort.

Major Contribution to Management Scientific management

Frederick W. Taylor, Shop Management 1903, Principles of Scientific Management 1911, Testimony before the special House Committee 1912.

Acknowledged as the father of scientific management. His primary concern was to increase productivity through greater efficiency in production and increased pay for workers, through the application of the scientific method. His principles emphasized using science, creating group harmony and cooperation, achieving maximum output, and developing works.

Henry L. Gantt 1990


Called for scientific selection of workers and harmonious cooperation between labor and management. Developed the gantt. Stressed the need for training.

Frank and Lillian Gilbreth 1900. Frank is known primarily for his time and motion studies. Lillian, and industrial psychologist, focused on the human aspects of work and the understanding of workers personalities and needs.

Modern Operational Management Theory

Herri Fayol, Administration Industrielle et Generale 1916 Referred to as the father of modern management theory Divided industrial activities into six groups : technical, commercial, financial, security, accounting and managerial. Recognized the need for teaching management. Formulated fourteen principles of management, such as authority and responsibility, unity of command, scalar chain, and esprit de corps.

Behavioral Sciences
Hugo Munsterberg 1912 Application of psychology to industry and management.

Walter Dill Scott 1911 Application of psychology to advertising, marketing, and personnel.

Max Weber (Translations 1946, 1947) Theory of bureaucracy.

Vilfredo Pareto (books 1896-1917) Referred to as the father of the social systems approach to organization and management.

Elton Mayo and F.J. Roethlisberger 1933 Famous studies at the Hawthorne plant of the western electric company. Influence of social attitudes and relationships of work groups on performance.

Taylors Principles
The fundamental principles that Taylor saw underlying the scientific approach to management are summarized in the Perspective below. You will notice that these basic precepts of Taylors are not far from the fundamental beliefs of the modern manager. It is true that some of the techniques Taylor and his colleagues and followers developed in order to put his philosophy and principles into practice had certain mechanistic aspects. To determine what a fair days work was and to help in finding the one best way of doing any given job, the careful study of time and motion was widely applied. Likewise, various pay plans based on.

Replacing rules of thumb with science (organized knowledge. Obtaining harmony in group action, rather than discord. Achieving cooperation of human beings, rather than chaotic individualism. Working for maximum output, rather than restricted output. Developing all workers to the fullest extent possible for their own and their companys highest prosperity.

Output were used in an attempt to increase the surplus to make sure that workers who produced were paid according to their productivity, and to give workers an incentive for performance. As they often were by many factory owners throughout the world, to increase labor productivity without providing ample reward, adequate training, or managerial help. But this was certainly not what Frederick Taylor had in mind.

Taylor emphasized the importance of careful advance planning by managers and the responsibility of manager to design work systems so that workers would be helped to do their

best. But as he spoke of management, he never overlooked the fact that the relations between employers and men form without question the most important part of this art.

Henri Fayol
The Father Of Modern Operational Management Theory Henri Fayol (1841-1925) a French engineer. His key work was Administration Industrielle et Generale, 1916 He belongs to the Classical School of management theory and was writing and exploring administration and work about same time as F W Taylor in USA.

The real father of modern management theory is the French industrialist Henri Fayol. Although there is little evidence that management scholars, either in England or in the United States, paid much heed to Fayols work or knew much about it unit the 1920s or even year later, his acute observations on the principles of general management first appeared in 1916 in French. Although the work of Fayol was brought to the attention of American management scholars in 1923 by Sarah Greers translation of one of Fayols paper.

Industrial Activates.

Fayol found that activates of an industrial undertaking could be divided into six groups, Technical (production), Commercial (Buying, selling, and exchanging), Financial (Search for and optimum use of capital), Security (Protection of property and persons), Accounting (including Statistics)and Managerial (Planning, Organization, Command, Coordination and control).

Noting that principles of management are flexible, not absolute, and must be usable regardless of changing and special conditions, Fayol listed fourteen, based on his experience. They are summarized in the perspective.

General Principles Of Management

1. Division of work. This is the specialization that economists consider necessary for efficiency in the use of labor. Fayol applies the principle to all kinds of work, managerial as well as technical.

2. Authority & responsibility. Here Fayol finds authority and responsibility to be related, with the latter arising from the former. He sees authority as a combination of official factors, deriving from the manager position and personal factors.

3. Discipline. Seeing discipline as respect for agreements which are directed at achieving obedience, application, energy, and the outward marks of respect. Fayol declares that discipline requires good superiors at all levels.

4. Unity of command. This means that employees should receive orders from one superior only.

5. Unity of direction. According to this principle, each group of actives with the same objective must have one head and one plan. 6. Subordination of individual to general interest. This is self explanatory when the two are found to differ, management must reconcile them.

7. Remuneration. Remuneration and methods of payment should be fair and afford the maximum possible satisfaction to employees and employer.

8. Centralization. Without using the term Centralization of authority. Fayol refers to the extent to which authority is concentrated or dispersed. Individual circumstances will determine the degree that will give the best overall yield.

9. Scalar chain. Fayol thinks of this as a chain of superiors from the highest to the lowest ranks, which, while not to be departed from needlessly, should be short circuited when to follow it scrupulously would be detrimental.

10. Order. Breaking this into material and social order, Fayol follows the simple adage of a place for everything and everything in its place.

11. Equity. Loyalty and devotion should be elicited from personnel by a combination of kindliness and justice on the part of managers when dealing with subordinators.

12. Stability of tenure. Finding unnecessary turnover to be both the cause and the effect of bad management, Fayol points out its dangers and costs.

13. Initiative. Initiative is conceived of as the thinking out and execution of a plan. Since it is one of the keenest satisfactions for an intelligent man to experience.

14. Esprit de corps. This is principle that in union there is strength as well as an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication in obtaining it.

Function of Management
Management is the process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling. This definition recognizes that management is an ongoing activity, entails reaching important goals, and involves knowing how to perform the major functions of management. Since these functions are crucial to effective management. We use them as the basic framework for this book. Accordingly, parts tow through five of the test are devoted, respectively, to planning, organizing, leading, and controlling.

Planning
Planning is the management function that involves setting goals and deciding how best to achieve them.

Organizing
Organizing is the management function that focuses on allocating and arranging human and nonhuman resources so that plans can be carried out successfully. Through the organizing function manager determine which tasks are to be done.

Leading
Leading is the management function that involves influencing others to engage in the work behaviors necessary to reach organizational goals. Leading includes communicating with others, helping to outline a vision of what can be accomplished, providing, direction, and motivating organization members to put forth the substantial effort required. This function also includes encouraging the necessary levels of change and innovation.

Controlling
Controlling is the management function aimed at regulating organizational activities so that actual performance conforms to expected organizational standards and goals. To do the necessary regulating, managers need to monitor ongoing activities.

K ym n g m n S ills e aae et k
In addition to having a knowledge base, managers need certain skills to carry out the various functions of management. A skill is the ability to engage in a set of behaviors that are functionally related to one another and that lead to a desired performance level in a given are. For managers, three types of skills are necessary :

Technical Skills
Technical skills that reflect both an understanding of and a proficiency in a specialized field. For example, a manager may have technical skills in accounting, finance, engineering, manufacturing, or computer science.

Human Skills
Human skills are skills associated with managers ability to work well with others, both as a member of a group and as a leader who gets things done through other.

Conceptual Skills
Conceptual skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world. Conceptual skills, coupled with technical skills, human skills and knowledge base, are important ingredients in organizational performance.

Jo T p s O M n g r l b y e f a a e ia

Although we hae been discussing the nature of managerial work in general, managerial jobs vary somewhat on the basis of two important dimensions. One is a vertical dimension, focusing on different hierarchical levels in the organization. The other is a horizontal dimension, addressing variations in managers responsibility areas. We explore these dimensions and their implications in this section. Because of its importance in fostering innovation, we give special attention to the entrepreneurial role at various hierarchical levels.

Vertical Dimension : Hierarchical Levels


Along the vertical dimension, managerial jobs in organizations fall into three categories : firstline, middle, and top management. These categories represent vertical differentiation among managers because they involve three different levels of the organization.

First-Line Managers
First-line managers (or first-line supervisors) are managers at the lowest level of the hierarchical who are directly responsible for the work of operating (no managerial) employees. They often have titles that include the work supervisor. First-line managers are extremely important to the success of an organization because they have the responsibility of seeing that day-to-day operations run smoothly in pursuit of organizational goals. Because they operate at the interface between management and the rest of the work force.

Middle Managers
Middle managers located beneath the top levels of the hierarchy who are directly responsible for the work of managers other middle managers or first-line managers. Sometimes middle managers also supervise operating personnel, such as administrative assistants and specialists. Many different titles are used for middle managers, including manager, director of chief, department head, and division head.

Top Managers
Top managers are managers at the very top levels of the hierarchy who are ultimately responsible for the entire organization. They are few in number, and their typical titles include chief executive office president, executive vice president executive director, senior vice president, and sometimes, vice president. Top level managers are often referred to as executives, although the term executive is also sometimes used to include the upper layers of middle managers as well. They typically oversee the overall planning for the organization, work to some degree with middle managers in implementing that planning, and maintain overall control over the progress of the organization. In public. Corporations, whose stock is sold to the public, top management ultimately reports to the board of directors, the board is composed of a group of individuals elected by the shareholders for the purpose of guiding corporate affairs and selecting officers. A board typically has from 15 to 25 members, depending on company size. In some companies, boards may essentially rubber-stamp management initiatives, particularly when the majority of the board is made up of top managers and outside individuals with close ties to management. In others, boards include more outsiders, operate more independently and are more proactive factors that often lead to better corporate performance. Typically, the board appoints the CEO, who then selects other top managers, including most vice presidents, subject to board approval. Often the CEO also serves as chair person of the board. A recent study, however, suggests that companies perform better when the CEO does not also hold the position of board chairperson as this arrangement allows the board to more adequately monitor the performance of top management.

Differences among Hierarchical Levels


Although the same basic managerial process applies to all three hierarchical levels of management, there are some differences in emphasis. Major difference stem mainly from the importance of the four functions of management, the skills necessary to perform effectively, the emphasis on managerial roles at each level, and the use of the entrepreneurial role.

Function of Management

The relative importance of planning, organizing, leading and controlling varies somewhat depending on managerial level. Planning tends to be more important for top managers than for middle or first-line managers. This is primarily because top managers are responsible for determining the overall direction of the organization, a charge that requires extensive planning. At the same time, organizing is somewhat more important for both top and middle managers than for first-line managers. This stems from the fact that it is the top and middle levels of management that are mainly responsible for allocating and arranging resources, even though this function is also performed to some extent by first-line supervisors. In contrast, leading substantially more important for first-line supervisors than for managers at higher levels. Since first-line supervisors are charged with the ongoing production of goods or services, they must engage in substantially higher amounts of communicating, motivating, directing, and supporting. All of which are associated with leading. Finally, the management function that is most similar at all three hierarchical levels is controlling. This similarity reflects a common degree of emphasis at all levels on monitoring activities and taking corrective action as needed.

Management Skills
The three levels of management also differ in the importance attached to the key skills discussed earlier: technical, human, and conceptual. Generally, conceptual skills are most important at the top management level. Top managers have the greatest need to see the organization as a whole, understand how its various parts relate to one another and associate the organization with the world outside. Whirlpools David Whitwam points out that looking at an organization as a whole can be difficult, particularly when a company is doing well and there is not imminent crisis on the horizon. He said that Whirlpool was doing well domestically, but nevertheless, top management faced up to the challenge of looking at the big picture because they could envision their future growing more difficult and complicated. When they took a more holistic view, they realized that they had to globalize to survive and prosper.

In contrast, first-line managers have the greatest need for technical skills, since they directly supervise most of the technical and professional employees who are not manager. Yet middle managers, too often need sufficient technical skills so that they can communicate with subordinates and recognize major problems. Even top managers must have some technical skills, particularly when technology is an important part of the products or services their organizations produce.
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Management Skills
The three levels of management also differ in the importance attached to the key skills discussed earlier: technical, human, and conceptual. Generally, conceptual skills are most important at the top management level. Top managers have the greatest need to see the organization as a whole, understand how its various parts relate to one another and associate the organization with the world outside. Whirlpools David Whitwam points out that looking at an organization as a whole can be difficult, particularly when a company is doing well and there is not imminent crisis on the horizon. He said that Whirlpool was doing well domestically, but nevertheless, top management faced up to the challenge of looking at the big picture because they could envision their future growing more difficult and complicated. When they took a more holistic view, they realized that they had to globalize to survive and prosper.

In contrast, first-line managers have the greatest need for technical skills, since they directly supervise most of the technical and professional employees who are not manager. Yet middle managers, too often need sufficient technical skills so that they can communicate with subordinates and recognize major problems. Even top managers must have some technical skills, particularly when technology is an important part of the products or services their organizations produce. Not surprisingly, all three levels of management require strong human skills because they all must get things done through people. Ironically, promotions to first-level management are often based on individuals good technical skills, with little consideration given to the adequacy of their human skills. Managers who lack sufficient human skills usually run into serious difficulties when they attempt to deal with individuals inside and outside their work units.

Managerial Roles
Although Mintzberg argued that the 10 managerial roles he identified apply to all levels of management he did note that there may be some differences in emphasis at various levels. Subsequent research by others suggests that the figurehead role and several others such as liaison and spokesperson may become more important ass a manager moves up the hierarchy. On the other hand, the leader role appears to be more critical at the lower levels, a finding that supports the idea that the leading function itself has greater importance for lower-level managers than for those higher up. In a study of the importance of the various roles, managers at all levels gave particularly high ratings to the entrepreneurial role. Several experts on innovation, however, argue that the

entrepreneurial role varies in some important way depending on a managers level in the hierarchy.

Promoting Innovation: The Entrepreneurial Role


An innovation is a new idea applied to imitating or improving a process, product, or service. The process of innovation is closely allied with the entrepreneurial role in organizations, particularly since that role relates to discovering and exploiting new opportunities. In fact, innovative activities in organizations, especially major ones, have frequently been refereed to as entrepreneurship within organization. More recently, individuals who engage in entrepreneurial roles inside organization are often called entrepreneurs. The term is used to differentiate innovators working inside existing organizations from individuals who innovate by creating new organizations. Encouraging innovation in organizations takes special effort. Furthermore, successful innovations are rarely the product of only one person work. Rather, the innovative process usually involves individuals at various level who fulfill three different types of entrepreneurial roles :

Idea Champion
An idea champion is an individual who generates a new idea or believes in the value of a new idea and supports it in the face of numerous potential obstacles. We often thin of such individuals as entrepreneurs, inventors, creative individuals, or risk takers. They are usually individuals at lower levels in the organization who recognize a problem and help develop a solution.

Sponsor
A sponsor is an individual, usually a middle manager, who recognizes the organizational significance of an idea, helps obtain the necessary funding for development of the innovation, and facilitates its actual implementation. Sponsors tend to be middle manager because their higher-lever position in the organization makes it more feasible for them to provide the strong backing necessary for the survival of innovations.

Orchestrate
An ORCHESTRATOR is a high-level manager who articulates the need for innovation, provides funding for innovating activates, creates incentives for middle managers to sponsor new ideas, and protects idea people. Because innovations often constitute a challenge to the current ways of doing things, they are frequently resisted by those who are comfortable with or have a particular stake in the status quo. An ORCHESTRATOR maintains the balance of

power so that new ideas have a chance to be tested in the face of possible negative reactions. By filling the role of orchestrator, top managers encourage innovation.

Without all three roles, major innovations are much less likely to occur. The development of the VHS videocassette recorder at JVC illustrates the importance of entrepreneurial, or innovative, roles at the various levels of the organization. Ultimately, the indirect intervention of Matsushita as an orchestrator became crucial. These three types of entrepreneurial roles constitute another vertical difference among managers.

Horizontal Dimension : Responsibility Areas


In addition to their vertical differences, managerial jobs differ on a horizontal dimension that relates to the nature of the responsibility area involved. In horizontal differentiation, there are three major types of managerial jobs : Functional, General, and Project.

Functional Managers
General managers are managers who have responsibility for a whole organization or a substantial subunit that includes most of the common specialized areas. In other words, a general manager presides over a number of functional areas. General managers have a variety of titles, such as division manager and president, depending on the circumstances. A small company will usually have only one general manager, who is the head of the entire organization. Depending on how it is organized, a large company may have several general managers (in addition to the chief executive officer) each of whom usually presides over a major division.

Project Managers
Project managers are managers who have responsibility for coordinating efforts involving individuals in several different organizational units who are all working on a particular project. Because the individuals report not only to the managers in their specific work units but also to their project manager, project managers usually must have extremely strong interpersonal skills to keep things moving smoothly. Project managers are frequently used in aerospace and other high-technology firms to coordinate projects, such as airplane or computer project development. They are also used in some consumer oriented companies to launch or stay on top of market development for specific products. Such as cookies or margarine.

Planning
Planing is thinking in advance or before doing something .All kinds of organizations do planing. Planing helps us in looking into the future.Planing establishes goals or objectives and identifies the ways to achieve them. A plan is a predetermined course of action to be taken in future. Planning has been defined as follows:

Counts and ODonnell


Planing is an intellectual process, the conscious determination of courses of action, the basing of decisions on purpose, facts and considered estimates. At another place they say Planning is deciding in advance what to do,how to do it, when to do it and who is to do it.

George Steiner
Planing is a process that beings with objectives; defines strategies, polices, and detailed. Plans to achieve them.

Peter Drucker
Planing is the continuous process of making present entrepreneurial (risk taking) decisions systematically and with best possible knowledge of their futurity.

Nature or characteristics of planning


There is a number feature or characteristics of planing that indicate towards its nature. These may be outlined as follows;
1 Goal-oriented. .

Planing is goal-orient in the sense that plans are prepared and implemented to achieve certain object.

2 Basic to all managerial functions. .

Planing is a function that is foundation of management process. Planing logically precedes all other functions of management, such as organization, staffing, etc. Because without plan there is nothing to control. Every managerial action has to be properly planned.
3 Pervasive. .

Planing is a function of all managers, although the nature and extent of planing will vary with their authority and level in the organization hierarchy. Managers at higher levels spend more time and effort on planing than do lower manager.
4 Interdependent process. .

Planing affects and is affected by the programs of different department in so programs constitute an integrated effort. 5. Future-oriented. Planing is forward looking and it prepares an enterprise for future.
6 Forecasting integral to planing. .

The essence of planing is forecasting. Plans are synthesis of various forecast.Thus, planing is inextricably(inseparably) bound up with planing.
7 Continuous process. .

Planing is an ongoing process. Old plans have to be prepared in case the environment undergoes a change. It shows the dynamic nature of planing. 8. Intellectual process. Planing is a mental or conceptual exercis.it therefore involves rational decision making: requires imagination, foresight, and sound judgement: and involves thinking before doing_thinking on the basis of facts and information. 9. Integrating process. Planning is essential for the enterprise as a whole. Newman and others have drawn our attention towards this feature of planning, without planning, an enterprise will soon disintegrate: the pattern of its action would be as random as that made by leaves scampering (running quickly in short steps )before an autumn wind, and its employees would be as confused as ants in an upturned anthill. If there are no plans, action will be a random activity in the organization, instead there will be chaos. 10. Planning and control are inseparable.

Unplanned action cannot be controlled without control, planned actions cannot be executed plans furnish standards of control In fact ,planning is meaningful without control and control is planning aimless without planning . is measuring rod of efficiency.
1. 1

Choice Among Alternative Courses Of Action.

The need for planning arises due to several ways available for an action If there is only one way out left there is no need for planning
1. 2

Flexible process .

the principle of navigational change (i.e, change according to change in environment) applies to planning In other words effective planning requires continual checking on events and forecasts ,and the redrawing of plans to maintain a course towards desired goals .thus plans have to be adaptable to changing circumstances

Planning process :Steps in planning


The process of planning involves the following steps

Analysing environment. At the outset the internal and external environment is analyzed in order to identify company ;s strengths and weaknesses (in internal environment)and opportunities and threats (existing in the external environment) this is also known as SWOT (Strengths Weaknesses Opportunities and Threats ) analysis . Establishing objectives or goals in the light of the environmental scanning (study)clear or probable opportunities that can be availed are identified in order to avail them objectives or goals are clearly defined in specific terms along with priorities in all the key areas of operations major problems associated with such objectives are also identified and defined ,so that there may be special emphasis on their planned solutions. Seeking necessary Information : All relevant data and facts are collected from internal and external sources such as Availability of supplies, physical and human recourses of the company , finance of disposal, relevant government policy etc then such collected information and factors are analyzed. These information can be used in two ways

1. To make necessary modifications in objective and goals 2. To take help them in premising assumption.

Establishing the planing premises

In order to develop consistent and coordinate plans ,it is necessary that planing is based upon carefully considered assumption and predictions

Identifying the alternative course of action.


After established the goals or objective and taking other related steps , feasible alternative programs or course of action are searched out . Impossible or highly difficult propositions are left out .

Evaluating the alternatives.


Problems consequences of each alternative course of action in terms of its pros and cons (eg Cost, benefits, risks etc) are assessed and then relative importance of each of them is found out by looking at their overall individual strengths and limitations especially in the light of present objective and the environment of the company.

Selecting the alternative or Course of action.


The alternative which appears to be most feasible and conducive to the accomplishment of companys objective, is selecting the final plan of action as strategy.

Preparing the Derivative plans


Derivative plans involve short rang operating plans that are useful in day-to-day operations these plans are developed through the 1 Schedules 2 Budgets 3 Programmes 4 Procedures 5 Methods 6 Rules & Polices etc.

These plans are prepared in different departments ,and their timings and sequence are also specified .

Advantages benefits of Planning


1. Provide a sense of direction. Without planning manager would fail to make proper decisions , and hance there would be chaos ,not activity in the organisation. Planing desired decision making and efforts on guided path leading to the desired destination. 2. Offsets (balance ) future uncertainty and change. Uncertainty and risk are inevitably associated with business and its operations. Through planing cannot eliminate these two element plans of nature and risk because they provide a better understanding of likely future events. 3. Focuses attention on objective and results. Organisation exists because people have common objective. Managers are charge of organisation for the purpose of attaining results .if attention are not focused on objective and results. 4. Causes efficient operations. Planing make things occur ,improves the competitive strength of the organisation, guides proper utilisation channels for resources and facilities integrates resources and efforts, aligns internal and external environment 5. Provides the basis for decentralization Decentralisation of authority signifies dispersal of decision making power to the lowest level in the organisation .Well-designed plans serve as guides to subordinates and reduce the risk involved in delegation of authority.
6 Guides Rational decision making .

Decisions are primarily future oriented .plans cover to the future activities without plans there is no sound basis for making future oriented decision

Stratigies and Policies


STRATEGY :

The determination of the purpose and the basic long term objectives of an enterprise, and the adoption of course of action and allocation of resource necessary to achieve these aims .

POLICIES : General statements or understanding that guide thinking in decision making, the essence of policies is the existence of discretion , with in certain limits, in guiding decision making . Both strategies and policies give direction to plans. They provide the framework for plans and serve as a basis for the development of tactics and other managerial activities .

SWOT Analysis
SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late 1960's by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood, IL: Irwin, 1969). The General Electric Growth Council used this form of analysis in the 1980's. Because it concentrates on the issues that potentially have the most impact, the SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation. The following diagram shows how a SWOT analysis fits into a strategic situation analysis.

Situation Analysis /\ Internal Analysis External Analysis /\/\ Strengths Weaknesses Opportunities Threats |

SWOT Profile

The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats.

Internal Analysis
The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as:

Company culture Company image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency Operational capacity Brand awareness Market share Financial resources Exclusive contracts Patents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses.

External Analysis
An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunities can arise when changes occur in the external environment. Many of

these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Changes in the external environment may be related to:

Customers Competitors Market trends Suppliers Partners Social changes New technology Economic environment Political and regulatory environment

The last four items in the above list are macro-environmental variables, and are addressed in a PEST analysis. The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats.

SWOT Profile
When the analysis has been completed, a SWOT profile can be generated and used as the basis of goal setting, strategy formulation, and implementation. The completed SWOT profile sometimes is arranged as follows:

Strengths 1. 2. 3. 4. 5. . 1. 2. 3. 4. 5 .

Weaknesses

Opportunities

Threats

1. 2. 3. 4. 5 .

1. 2. 3. 4. 5 .

When formulating strategy, the interaction of the quadrants in the SWOT profile becomes important. For example, the strengths can be leveraged to pursue opportunities and to avoid threats, and managers can be alerted to weaknesses that might need to be overcome in order to successfully pursue opportunities.

Multiple Perspectives Needed

The method used to acquire the inputs to the SWOT matrix will affect the quality of the analysis. If the information is obtained hastily during a quick interview with the CEO, even though this one person may have a broad view of the company and industry, the information would represent a single viewpoint. The quality of the analysis will be improved greatly if interviews are held with a spectrum of stakeholders such as employees, suppliers, customers, strategic partners, etc.

SWOT Analysis Limitations

While useful for reducing a large quantity of situational factors into a more manageable profile, the SWOT framework has a tendency to oversimplify the situation by classifying the firm's environmental factors into categories in which they may not always fit. The classification of some factors as strengths for weaknesses, or as opportunities or threats is somewhat arbitrary. For example, a particular company culture can be either a strength or a weakness. A technological change can be a either a threat or an opportunity. Perhaps what is more important than the superficial classification of these factors is the firm's awareness of them and its development of a strategic plan to use them to its advantage.

Kinds Of Strategies And Policies


Major kinds of strategies and policies need to developed in areas such as growth, finance, organization, personnel, public relations, products or services and marketing .

Competitive Strategies By Porter : Professor porter identified three generic competitive strategies related to :

Overall cost leadership Differentiation strategy . Focused strategies .

Effectively Implement Strategies : To implement strategies effectively, managers must communicate the strategies and planning premises to all who should know them and must make sure that plans contribute to and reflect the strategies and goals they serve . Managers must also review strategies requirely, develop contingency strategies, and be sure that the organization structure of the enterprise fits its panning programs managers need to make learning about planning and implementing strategy an on going process .

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Management by Objectives (MBO )

Meaning and definition of management by objectives Management by objectives (MBO) has become a widely used slogan. It is a basic mentality that a high-performance manager brings to the job of managing. The term management by objectives was coined by Peter Drucker in 1954. he propounded management by Objectives concept and emphasized it and then it developed as a management philosophy,. Some authors has used the term management by results interchangeable with management by objectives. Management by objectives is an overall philosophy of management that concentrates on goals and end results. Management by objectives is based on the presumption that people perform better when they know what is expected of them and can relate their personal goals to organizational goals. It also assumes that people perform better when they know what is

expected of them and can relate their personal goals to organizational goals. It also assumes that people are interested in the goal setting process and in evaluating their performance against the target.

Some important definitions of MBO may be given as follows :

George S. Odiorne. The system of management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.

Peter Drucker. He says that management by objectives and self-control is a philosophy of management. Resting on a concept of human action. Human behavior, and human motivation. MBO applies to every manager at any level and to all business enterprises whether large or small. He says the management by objectives ensures performance by converting objective needs into personal goals.

Heinz Weihrich & Harold Knoontz. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and individual objectives.

Essential Characteristics or Features of Management By Objectives


A careful study of the above definitions bring out the following features of MBO.

1. 2. 3. 4.

Management by Objectives is a philosophy or a system, and not merely technique. It emphasizes participative goal setting. It clearly defines each individual responsibilities in terms of results. If focuses attention on what must be accomplished (goals0 rather than on how it is to be accomplished. 5. It converts objective needs into personal goals at every level in the organization.

6. It establishes standards or yardsticks (goals ) as operation guides and also as basis of performance evaluation. 7. It is a system intentionally directed toward effective and efficient attainment of organizational and personal goals. 8. MBO process (or management by Objective cycle or key elements of management by Objectives or minimum requirements of management b y objectives. There are four important and essential steps or elements in the management by Objectives process as follows :

Setting Objectives. Goal-setting or objective setting is a multistage process. It starts with the examining of the current stat3e of affaires, level of efficiency, threats, and opportunities. Then the key result areas are identified, such as product markets, improved services, lowered costs, work simplification, employee motivation, profitability innovation and social responsibility. The performance of these areas is critical for organization in the sense that failure in these areas may result in failure of the organization. And this is why they are known as key result areas. Peter says, objectives are important in every area where performance and results directly affect the survival and prosperity of business.

Thereafter interacting or joint goal setting takes place. Subordinates are actively involved in formulating goals at every level in the organization such goals are finished with reference to the overall objectives of the organization. Care is taken to establish goals that are measurable and contribute to the element also. Such goals may be long rang, medium rang, or short range. Further, resources availability also becomes an important consideration in goal setting. There is always need to decide priorities among the different objectives keeping in view the environment within which business operates as well as possible further changes in it.

Developing Action Plans. Set objectives must be translated into action plans. It requires assignment of specific responsibilities to different departments, division, and individuals. It also requires allocation of necessary resources needed to perform the assigned responsibilities. Time dimensions are also to be decided in order that targets are reached without any unwarranted delays.

Periodic Review or Monitoring The Progress. After setting objectives and developing action plans, it is necessary to establish a proper monitoring system with a view to regularly keeping the activities. He progress is monitored without day path leading to the ultimate objective. It is ensured that the deviations found, if any, are thoroughly discussed and immediate corrective actions are taken to set them right on

the course. Such a regular monitoring and periodic review not only provide feedback which is essential for completion of work in time. But also motivates the managers accountable for performance. Periodic review and monitoring are done at departmental level generally.

Performance appraisal. This is the last phase of MBO program that evaluates performance annually. The annual review or appraisal is comprehensive and is done at the organization level. The actual annual results are evaluated against the set objectives. Such assessment is also used for determining targets for next year, for modification in standards (goals0 if needed, and for taking corrective actions in order to avoid deviations form predetermined objectives.

Benefits Of Management By Objectives


Balance stress on objectives. MBO forces managers to set objectives with balanced stress on key result areas. Thus, crisis conditions are avoided to take place in the organization.

Better managing. MBO forces managers to think about planning for results, rather than merely planning activities or work. Managers are required to ensure that the targets are realistic and needed resources are made available to subordinates to achieve the targets. Clearly set objectives for the subordinates serve as evaluation standards as well as motivators for them. Thus. MBO results in improvement in managing.

Better organizing. The positions in the enterprise can be built around the key result areas. Managers are required to clarify organizational roles and structures. Hence better organizing. Greater employee involvement & commitment. If MBO program is installed in an organization, people are not just doing work, following instructions and waiting for guidance and decisions form above and things are not dictated by the superiors. They are now individuals with clearly defined goals which have been formalized through their own participation in the process.

Orderly growth of organization. MOB provides for the maintenance and orderly growth of organization by means of predetermined set of objectives for everyone involved. It also provides for measurement of what is actually achieved. The progress and even the tenure of management by objectives emphasizes the ability, skill and achievement of managers rather than their personality. Thus, the orderly growth and development of the organization is ensured.

Development of effective controls. MBO not only sharpens the planning, but also develops effective controls. It specifically provides for periodic reviews and annual performance appraisals serving as the needed feedback for further streamlining the objectives or targets. It makes possible for a manager to control his own performance, high deg4ree of self control resulting in stronger motivation. Generating of an ideal atmosphere. Doughlas mcGregor says, the motivation, the potential for development, the capacity for assuming responsibility, the readiness to Direct behavior toward organization goals are all present in people. Management does not put them there. The essential task of management is to arrange organizational conditions and methods of operation .

Objective appraisal
M n g m n b o je t e p o id sas ie t a a e e t y b c iv s r v e c n ificb s a is fo e a a in as b r in t s p r r a c b c u e r v lu t g u o d a e e fo m n e e a s g a ( t n a d ) a ejo t s t b t es p r r a d o ls s a d r s r in ly e y h u e io n t es b r in t s h u o d ae .

Limitations /Weakness /Disadvantages of MBO Unfavorable attitude of Managers.


Some manager have an attitude that the regular attenuation required of them By MBO System, draws heavily on their busy time schedule and is not consistent with their roles.

Problems about Goals Setting. MBO requires issuance of proper , exhaustive guidelines to goal setters The following are difficulties in goals setting: i. ii. iii. iv. v. vi. Positive and active participation from subordinates is not easily forth forthcoming. Truly verifiable goals are bot easy to formalise Emphasis is put in short-range goals, whereas long-range goals are avoided, tough longrange goals are vital for growth and development of the organization Goals remain inflexible and rigid. For example, changes desirable in annual budgets are not easily accepted in the middle of the year. Over-use of quantitative goals jeopardizes the qualitative aspect which may more important than quantification in some cases. Goals tend to take orecedebce or priority over the people who use them. Any action is acceptable of it series in the attainment of Gilas, without caring for its impact on people. Thus, all these difficulties come in the way of making management by

vii.

objectives operational in an organisation. Further, managing involves more than goal setting. Time-consuming nature of management by objectives. Management by objectives system is time-consuming especially in the early phases of its introduction when employees are unfamiliar with its process.

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Exchange Of Information In Selection Of Managers

It works in two ways in recruitment and selection. An enterprise provides applicants with an objective description of the company and the position , while the applicant provides information about their capabilities. Business and organizations convey information about

Opportunities for growth Potential challenges Promotional possibilities Level of pay Fringe benefits Degree of job security Limitation or unfavorable aspects of the job

While an applicant must have


Job knowledge Skills Abilities Aptitudes Motivation Past performances.

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What is a Job?

If a function is performed a group of function is given to an individual . In job designing there are some scope

Appropriate job Full time position Challenge Skill ( required) Job can be designed for individuals or for team works . It also includes the importance of technical , conceptual , human and design skills.

Job design:

Job enlargement Job enrichment ( to increase the responsibilities )

Job analysis: You get the to get the information the job description , lob specification and try to finds out whether the lob will be enlarged or enriched . For this purpose you have to make

Questionnaires Interviews Observations

Job specifications: Required skills for the job


Qualification Experiences Age Skills Extra qualities

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Selection, Placement and Promotion

Selecting a manager is to choose the best candidate among all applicants. As selection is for specific job , there are two approaches 1. Selection approach :Is that , the candidate are made to fill a position with specific requirements 2. Placement approach :To find or design a suitable position by individual evaluation .

Promotion: Promotion is to shift to a higher position required more advanced skills and greater responsibilities . It involves higher status and an increase in salary.

The facts of selection and promotion are


Outstanding performance Better utilization of an individuals skills and abilities Past performance

Responsibilities For Selection:


Selector be held accountable Performance of the chosen candidate Get opinions of others Selection must be on the basis of the qualification and potentials of the candidates It shouldnt be on the basis of relations or friendships.

Interviews
To ask certain questions to candidates by one or more people is called interview . Nowadays this process is distrusted by the people and it also have some weakness .

Interpretation

In the obtained information


In e v w s m t e in e c d,ig o eh jo t r ie s o e im s flu n e n r is b pr r ac . e fo m n e In e v w r , d n a kt er h q e t n . T t r ie e s o t s h ig t u s io s o im r v t ein e v w gp o e ss v r l p o e h t r ie in r c s e e a t c n u sc nb u e . e h iq e a e s d In e v w gs o ldb t a e t r ie in h u e r in d In e v w gs o ldb p e a e t a kt er h t r ie in h u e r p r d o s h ig t q et n u s io C n u t m lt lein e v w u iliz gd r n o d c u ip t r ie s t in iffe e t in e v w ( t e s o ldp o id a d io a t r ie s h y h u r v e d it n l in r a io fo t em n g r fo t efin l d c io ) fo m t n r h aae r h a e is n It is o ea p c o t es le t np o e ss it n s e t f h e c io r c s o s o ldb s p le e t db h u e u p m ne y
o o o o

Data form Results of various tests Reference checks Letter of recommendation

There are three kinds of interviews

Unstructured interviews Semi structured interview Structured interview

Unstructured Interviews : are informal interviews in which the interviews may say some thing like tell me about your last job Semi Structured Interviews : Interviewers may follows the interview guide but may also ask other question.

Structured Interviews : In this kind of interview, interviewer asks a set of prepared questions.

Factors Of Management

Manager : Very important factor , should be qualified , skilled and leader

Organization It is a systematic arrangement of people to accomplish some specific purpose

Staffing : It is a labor through which production or output is obtained. Placing of right at right place is called staffing

Directives: The order passed from authorities for implementations to run organization effectively is called directives.

Counter check: This is factor of checking the desired result or output by some technical methods as well as surprise check

Rules: These are hard and fast rules of organization which may be applied from the very beginning . These are followed by all strictly.

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What is Leadership?

Many people believe that leadership is simply being the first, biggest or most powerful. Leadership in organizations has a different and more meaningful definition. Very simply put, a leader is interpreted as someone who sets direction in an effort and influences people to follow that direction. How they set that direction and influence people depends on a variety of factors that we'll consider later on below. To really comprehend the "territory" of leadership, you should briefly scan some of the major theories, notice various styles of leadership and review some of the suggested traits and characteristics that leaders should have. The rest of this library should help you in this regard.
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Style of leadership

The Autocrat
The autocratic leader dominates team-members, using unilateralism to achieve a singular objective. This approach to leadership generally results in passive resistance from teammembers and requires continual pressure and direction from the leader in order to get things done. Generally, an authoritarian approach is not a good way to get the best performance from a team.

There are, however, some instances where an autocratic style of leadership may not be inappropriate. Some situations may call for urgent action, and in these cases an autocratic style of leadership may be best. In addition, most people are familiar with autocratic leadership and therefore have less trouble adopting that style. Furthermore, in some situations, sub-ordinates may actually prefer an autocratic style

The Laissez-Faire Manager


The Laissez-Faire manager exercises little control over his group, leaving them to sort out their roles and tackle their work, without participating in this process himself. In general, this approach leaves the team floundering with little direction or motivation.

Again, there are situations where the Laissez-Faire approach can be effective. The LaissezFaire technique is usually only appropriate when leading a team of highly motivated and skilled people, who have produced excellent work in the past. Once a leader has established that his

team is confident, capable and motivated, it is often best to step back and let them get on with the task, since interfering can generate resentment and detract from their effectiveness. By handing over ownership, a leader can empower his group to achieve their goals.

The Democrat
The democratic leader makes decisions by consulting his team, whilst still maintaining control of the group. The democratic leader allows his team to decide how the task will be tackled and who will perform which task.

The democratic leader can be seen in two lights:

A good democratic leader encourages participation and delegates wisely, but never loses sight of the fact that he bears the crucial responsibility of leadership. He values group discussion and input from his team and can be seen as drawing from a pool of his team members' strong points in order to obtain the best performance from his team. He motivates his team by empowering them to direct themselves, and guides them with a loose reign.

However, the democrat can also be seen as being so unsure of himself and his relationship with his sub-ordinates that everything is a matter for group discussion and decision. Clearly, this type of "leader" is not really leading at all.
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Leadership is a facet of management

Leadership is just one of the many assets a successful manager must possess. Care must be taken in distinguishing between the two concepts. The main aim of a manager is to maximize the output of the organization through administrative implementation. To achieve this, managers must undertake the following functions:

organization planning staffing directing controlling

Leadership is just one important component of the directing function. A manager cannot just be a leader, he also needs formal authority to be effective. "For any quality initiative to take hold,

senior management must be involved and act as a role model. This involvement cannot be delegated." [1] In some circumstances, leadership is not required. For example, self motivated groups may not require a single leader and may find leaders dominating. The fact that a leader is not always required proves that leadership is just an asset and is not essential. 1. Heinz & Horald Koontz Management (A Global Perspective )10th Edition
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Manager

A manager is the one who motivates , takes decisions and risks and get the results.

Main Characteristics Of A Manager:

Power delegation
o T s a et ea t o it a dr s o s ilit o h r h u h r y n e p n ib y

a o gt et a a c r in t t ec p b y m n h e m c o d g o h a a ilit .

Decision making
o T k go d c io a a yle e o a t o it a in f e is n t n v l f u h r y

Problem solving approach


o S o ldb a let s lv t ep o le o t e hu e b o o e h r b m f h

t a , r g r in t eo g n a io a d e m e a d g h r a iz t n n pronl es n e

Leadership
o S o lds o le d r h s ills h u h w a e s ip k

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Human Factors And Motivation

Motivation : Motivation pertains to various drives , desires , needs , wishes and other forces .

Motivators: Forces that induce individuals to act or perform . Forces that influence human behavior.

T e r so M t a io h o ie f o iv t n

There are different theories of motivation.

Theory X Assumptions:
Assumptions about the nature of people as suggested by Douglas McGregor:1. People dislike work and will avoid if they can ; 2. People must be coerced , controlled , directed and threatened with punishment to get achievement of organizational objectives ; 3. Wish to avoid responsibility , have relatively little ambition and want security above all .

Theory Y Assumptions:
Theory y suggests :1. The expenditure of physical and mental effort in work is as natural as play or rest ; 2. External control and the threat of punishment are not for producing efforts. People will exercise selfdirections and self-control ; 3. Proportionality in degree of commitment and in size of the rewards ; 4. To learn for seeking knowledge; 5. High degree of imagination; 6. Potentialities of the average person are only partially utilized.

Hierarchy Of Needs :

Maslows theory that basic human needs exist in our ascending order of importance and that once a lower level need is satisfied , actions appealing to it cease to motivate.
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Herzbergs theory

It is based on two factors: 1. Motivators:

o o o o o o

Challenging work Achievement Growth in the job Responsibility Advancement Recognition

These factors motivate the people of organization.

2. Hygiene factors:
o o o o o o o

A es la y, r a r c m a yp lic a da m is r t n, o p n o y n d in t a io q a yo s p r is n, u lit f u e v io w r in c n it n , o k g o d io s in e p r o a r la io s , t r es n l e t n s au a d t t s n jo s c r y. b e u it

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Equity theory

Refers to individuals subjective judgment about the equity or fairness of the reward they receive in relation to their inputs ( which include factors such as effort , experience and education ) in comparison with others rewards . The aspects of the equity theory are :

Outcomes by a person = out comes by another person Input by a person = input by another person

Reinforcement theory : This theory was developed by skimmer, who suggested that people are motivated by praise of desirable behavior, people should participate in setting their goals and should receive regular feedback with recognition and praise .

Expectancy theory of motivation :

The theory that people will motivate by their expectancy that a particular action on their part will lead to a desired outcome . It is stated: Force = strength of a persons motivate Valence = Strength of an individual performance for an outcome Expectancy = Probability that a particular action will lead to a desired outcome
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Power And Authority

POWER : To make the people behave or want to make them behave . Authority : Legitimate power, position power . Types Of Power :

Expert power Referent power Personality ethics Character ethics Reward / coercive power

Functions: You make the people obey the functions

Functions

Responsibility

Responsibility: Obligations to perform assigned functions / duties .It is flow from the function.

Principle of functional similarity

Authority co equal Auth Resp. The official right to assign the people is responsibility.

Accountability. Type s of functions: Line:


Production Selling Financing

L ea dS a f A t o it : in n t f u h r y

There are various ways to conceptualize line and staff. Line and staff are characterized by relationships and not by people or departments .Line authority is that relationship in which a superior exercises direct supervisions over subordinates. The staff relationship consists of giving advise and council.

F n t n l A t o it : u c io a u h r y

Right to control processes , policies or other matters in departments ,other than a persons own . Functional authority is a small slice of a line managers authority and should be used sparingly.

Delegation of Authority

Top Level management cant personally perform all the tasks needed to achieve their goals ,they must use the chain of command to distribute authority among other organizational members to ensure that the work is completed. Authority refers to the right to make decision , to perform or supervise activities , and to allocate recourses in order to accomplish tasks that will achieve organizational goals. Authority flows down the chain of command ,so high-level positions have a wide scope and therefore more authority then low-level position . However , as the classical management theorists first pointed out , Formal authority is vested in the position not the person.

Employee play a key role in the managers exercise of authority. The acceptance theory of authority argues that authority in meaningful only when employee accept a managers legal right to direct their activities .But if employee believe their managers direction are outside the boundary of official authority they may choose not to accept these direction , and the managers authority is diminished.

Authority is the concept of responsibility the obligation to perform the assigned task or activities . Every organizational position carries with it responsibility for achieving the specific goals for achieving specific goals by perfuming specific duties. The organizational members have accepted the authority and the responsibility of their job , the are subject to accountability ; they must achieve the expected results of justify their deviation from the accepted result to managers higher in the chain of command . The pattern of transferring authority from one level to the next lower level occurs throughout every organization , enabling work to be accomplish and goals to be achieved at every level . in this way the authority can be distribute to the lowest possible position in the organization where employee and manager must make decision and exercise judgment about the day-to-day operation that contribute the performance ,even when manager delegate work to their employee , they are ultimately held accountable for the excepted result
B r ie st E f c iv D le a io ar r o f e t e e g t n

Although delegation enables manager to complete their work assignment and achieve results without having to handle every task personally, managers sometimes face barriers to effective

delegation, Especially when the stakes are very high, some managers view delegation as too risky. In such case managers may not trust their employees to complete delegated tasks competently, so they resort to micro management, an excessive degree of personal involvement in and control over the decisions and action of their employee.
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Centralization and Decentralization

Although top managers distribute some authority for decision and actions through out the vertical organization they also retain a certain amount of authority . Centralization is the extent to which authority remains concentrated at top level management level. The opposite of centralization is decentralization , delegation authority to lower management level. Centralization and decentralization are the two extremes of a continuum more authority delegation down ward reflects a higher degree of decentralization, when more authority detained by top managers reflect a higher degree of centralization.

What is Management?
Management is the process of designing and maintaining an Environment in which individuals working together in groups efficiently accomplishes selected aims.

Function of managements? 1. Management applies to any kind of organization. 2. It applies to managers at all organizational level. 3. Managers carry out the managerial function of planning, organization, staffing, leading and controlling. 4. The aim of all managers is the same to create a surplus. 5. Managing is concerned with productivity; this implies effectiveness and efficiency.

Managerial skill. 1. 2. 3. 4. Technical Skills. Human Skills. Conceptual Skill. Design Skill.

Technical Skills Knowledge and proficiency in avidities involving method, process and procedures for Example, mechanics work with tools and their supervisors should have the ability to show them how to work these tools.

Human Skills Ability to work with people it is the create of an environment in which people create of an environment in which people feel secure and free to express their opinion.

Conceptual Skills Ability to see the big picture to recognize significant element in a situation and to understand the relationship among the elements.

Design Skills Ability to solve problem in ways that will benefit the enterprise managers are not merely problem watchers they work out practical solution to their problems.

Evolution of management thought. Development of thought on management dates back to the days when people attempted to accomplish goals by working group.

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Frederick Taylor and Scientific Management

1. Was an Engineer? 2. Started out as an apprentice, common foreman, motor mechanic and then chief engineer of a steel company, he invented high-speed steel cutting tools. His patents made him rich and he stopped working at

the age of 45 and spent the remaining 14 years of his life as an unpaid consultant and promoting his ideas on scientific management. 3. Taylors major lancer was efficiency in production mode only to lower costs and raise profits but also to increase pay for workers through their higher productivity.

Taylors Principles. A careful study of time and motion under lines his famous work. Principles of scientific Management: various pay plans based on out put were used to increase the surplus to make sure that workers who produced were paid according to their productivity. Taylor emphasized the importance of careful advance planning by managers and the responsibility of managers to design work system so that workers would be helped to do their best. Henry L.Gantt 1. Was a Mechanical Engineer? 2. Like Taylor he emphasized the need for developing mutuality of interests between Management and labor and develop a harmonious cooperation; he developed graphic method of describing plant and improving managerial control the famous Gantt chart. Frank and Lillian GillBreth. 1. Frank was a bricklayer became the chief superident of a building contractor and the formed his own building contracting firm. 2. He reduced the number of bricklaying motions from 18 to 5 and doubled a bricklayers productivity. He became a famous consultant of improvement of human productivity. 3. Lillian was an industrial psychologist and great helped frank in his consultancy. After her husbands death, she carried on his consultancy business till her own death at the age of 93.

Fayol: - Operational Management Theory


Fayol saw that activities of an industrial undertaking could be divided into 6 groups. 1. Technical (Production) 2. Commercial (Buying, Selling and exchanging) 3. Financial (Search for and optimum use of capital.)

4. Security (Production of property and persons.) 5. Accounting (Including Statistics.) 6. anagerial (Planning, Organization, command, coordination and control)

Fayal focused his Analysis on the 6th groups and formulated 14th Principles. 1. Division of work. 2. Authority and responsibility. 3. Discipline. 4. Unity of command. 5. Unity of direction. 6. Subordination of undivided to general interest. 7. Remuneration. 8. Centralization. 9. Sector Chain. 10. Order-a place for everything and everything in its place. 11. Equity. 12. Stability of tenure. 13. Initiative. 14. Espirit do corps In union there is strength

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The Emergence of Behavioral Science

1. Industrial Psychological and social science also influence management thought industrial psychology: Hugo Munesterbergs objectives were to discover. 2. How to find people whose mental qualities best fit them for the work they do. 3. Under what psychological condition the greatest and most satisfying output can be obtained from the work of every person. 4. How a business can influence workers in such a way so as to obtain the best possible result from then. 5. Sociological approach to management observing people as products of group behavior.

Three Outstanding Scholars: 1. Max Weber (German) 2. Emile Durkheim (French) 3. Vilfredo Pareto (French Italian)

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Hawthorne Effect

Elton Mayo and his researchers saw that shortening workdays. Modifying rest periods changing illuminations for the test group and varying incentive pay system did not explain changes in productivity. They found that improvement in productivity was due to such social factors as morale satisfactory interrelationships between members of a work group (A sense of belonging) and effective management that understands human behavior and uses interpersonal skills as motivating, counseling, Leading and communicating. This phenomenon of noticing people is called the hawthorn Effect. Recent contributors to management thought. 1. 2. 3. 4. 5. Peter F.Drucker. W.Edwards Deming. Lanrence Peter. William Ouchi. T.Peters & R. Waterman.

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Approaches to Management Analysis

The managerial roles approach. Professor Mintzberg of McGill University observed what managers actually do to determine what managerial activities (or roles) are. MCKINSEYS 7-S Approach. The seven Ss are: Strategy, structure, system, style, staff, shared value and skills (of the firm)

MOTIVATION:Motives are the factors that energize and guide the human beings to achieve the specific goals. There are five basic needs as shown below:1. 2. 3. 4. 5. Physiological needs. Safety and security needs. Love and belonging needs. Self esteem needs. Self actualization.

1.Physiological needs. The first step is self-actualization is the satisfaction of the basic physiology needs of food, air, shelter, and so on. If you were lost on a deserted island, you would be more concerned with finding food shelter and cloth air etc. Maslow said the physical needs are first. 2.Safety and security needs. In some societies, the human needs for safety and security is never satisfied. People may live under continual treat by political, geographical, or weather factors. Generally people tried to migration form one place to another place because there is some satisfaction. An other example we take the earth quack in Pakistan lots of people live top of the mountain or northern side etc. when the earth quack came after earth quack create lots of problem like rain, snow falls etc also the shelter problems. The they have to decide to migrate to other places. 3.Love and belonging needs. Human are social animals, they want to be loved and needed by others.for the example we take they are satisfied about their need like food, shelter, air , and clothe then to create the love and belonging to other because with out belonging to others or love you are alone in the society. 4.Self-esteem needs. In our society there are many activities and products that promise to give self-esteem but are unable to make good on the promise. We know that the right deodorant and the right car will not make us right. We want to more and more satisfaction like advertiser to advertise in the newspaper or in television the new product if we have buying power then we should be able to satisfied. 5.Self-actualization. We sometimes speak of some acquaintance as being a fulfilled Person----one who has a specific goal and seems happily busy getting it. Achieving the top rung of mallows ladder is a matter of developing the inner nature or the potential we each have within us. Those who attention self actualization.
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HERBEG'S TWO FACTORS THEORY

THERE ARE TWO TYPES OF FACTORS.

1- Hygiene Factors The factors that prevent from the dissatisfaction for the example if a salary

2 Motivators Motivators are satisfied the factors. For the example bonus , salary satisfaction, rework itself possibility of the growth,

person got the premise but he dissatisfied the company policy and working environment.

responsibilities.

PLANNING
Planning is a foundation for organization implement and controlling. For the example if we want to made the any product in the organization being a manager we must be managed the organization and control the all kinds of disadvantages the implement at the lact we made the product successfully.

FLEXIBLE PLANNING. Some times managers have only a general idea of where they want to go with no final goal in mind. Such cases call for a certain amount of built-in flexibility. Michael Mc Caskey has made a distinction between the planning with goals and planning with out goals he point out the some efforts do not reveal their most valuable traits until we get into them.

MANAGEMENT BY OBJECTIVES. One of important concepts that came out of druckers work with general electric was management by objectives (MBO). This is a system of setting up organizational objectives that then become the beginning middle and end operation. The objectives tell us every one where she or he is going; departure from the optimums path.

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WHAT IS MANAGEMENT

The process of activities, completed efficiently and effectively with and through people is called management.

FACTORS OF MANAGEMENT

(1) MANGER (2) ORGANIZATION (3) STAFFING (4) COUNTER CHECK (V) RULES 1. MANAGER:- Very important factor should have qualified skilled leader. 2. ORGANIZATION:- It is systematic arrangement of people to accomplish some specific purpose. It have four important parts. 3. STAFFING: (It is a labor through with production or output obtained. Placingof right man at right place is staffing) 4. DIRECTIVES: (The orders passed from authorities for implementation to run organization effectively is called DIRECTIVES. Followed strictly the directive issued time to time according to the need. 5. COUNTER CHECK:- This is factor of checking the desired result or output by some technical method as well as surprise check. 6. RULES:- These are hard and fast rules of organization, which may be applied from very beginning. These are followed by all strictly.

MANAGER
Manager is first/ major part of organization who is responsible for activities. It may be first line manager (supervisors), second line (Middle managers, deal between top management and first line and top line managers who bring policies make lot of time in planning and takes decision. Simply a manager is one who innovate, take decision and risk and get.

MAIN CHARACTERISTICS OF MANAGER 1. Power delegation (To share authority and responsibility among the team according to capability. 2. Decision making (Takes decision at any level of in authority and do the needful. 3. Problem solving Approach (Should be able to solve the problems of in teams regarding the organization and personal. 4. leader ship (he should have the leadership skills.

MAIN CHARACTERISTICS OF ORGANIZATION:1) PRODUCTION 2) MARKETING 3) HUMAN RESOURCES 4) FINANCE The organization are based on above four factors and arrange the people in order to achieve the desire goals, when it innovate, invest and takes risk.

MAIN CHARACTERISTICS OF STAFFING

The responsibilities of staff

Shortage of managerial manpower Skilled about the modern machinery & its use Trade recognition of the problems Relation of organizational structure to staffing Keep in mind key factors of leadership Technical qualification & short courses of staff Personal interest of staff in filed of work Personal relation with staff and manager Limitation of work in staff Suitable timings of work Rewards and benefits of staff

LEVELS OF MANAGERS 1- First line managers (supervisors and manager) 2- Middle managers (Responsible for implementation ) 3- Top Managers.

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PRINCIPLES OF BUSINESS MANAGEMENT

1. Division of work (the scope of work in managerial and staffing parts should be divided clearly and standardized. 2. Authority and responsibility (The assignment of work should be equipped with certain authority and responsibility so that one may able to use it with confidence and becomes responsibility of work. 3. Discipline is use to control and correct the behaviors of all employees. Discipline improve the efficiency and avoid the ignorance of duty and responsibility.

MAIN FEATURES OF MANAGEMENT / FUNCTIONS OF AMANGEMENT


There are four main function s management. 1. PLANNING (To know about the purpose and destination. How to get the desire purpose and why should be clear, which is called planning. It is done by the top management but at each level of management some part of planning / involved.

2. ORGANIZATION (To adopt the process and structure about the planning in a better way by people is called organizing. It is arrangement of peoples and resources to achieve the desired goals. 3. Controlling (to ensure about all the above factors are going properly and the desired goals are achieving if there is any error is found, the controlling is operated with some extend.) 4. LEADER SHIP There is important quality of successful manager which is combination of by birth and child hood. Education as well as technical skills The managers should be leadership skilled which enhance in quality by various kinds as Personality neat & clean career, good knowledge telling and writing power , decision power , public dealing , problem solving approach, leading attitude in a mind, but friendly and brother attitude in practice , use of resources effective, minimize the waste and ___________ the .

1- SOCIAL MANAGEMENT In any organization the main objection is to minimize the profit in spite of other values. But the real organization need to concern with social value and social needs of society by surrendering the some share of profit. It is because of social needs or values of society e.g If in a society some items are not allowed so that it should be avoid to produce rather than concept of organization _________. If in a society some item are needed once in year firm should provide so that it shall be closer to society and goes to long run profit.

2- MANAGEMENT AS TECHNOLOGY The method in which a firm use the special education training and skills about the management and go through it is called management as technology. Because almost all the internal problems of organization may be solved through techniques of management so we can say the management as technology technological awareness to minimize the waste statistical analysis and computer science are essential.

3-MANAGEMENT AS CULTURE A the single person have its own personality through which he is appreciated or rejected or known similarly the personality of organization is management culture. How the organization behavior impression and imagine called the management culture e.g good / neat and clean clean organization versus poor / dirty and lose organization.

4- INSTITUTIONAL LEVEL OF MANAGEMENT

In an organization when proper rules directives discipline, authorizes and responsibilities are given then the management comes on institutional level where the management goes through hard and fast rule and managed very perfect and result oriented.

5-COMMITTEE MANAGEMENT The committee is ------ for some special task within specific time period and special powers. The management of committee exercise such type of special powers authorities and hierarchy is called committee management. This management has special and temporary title of name power and facilities which automatically finished by the completion of task.

6-PRODUCTION MANAGEMENT This type of management is involve in a production based organizations where \organization object is maximize the output. This mean a certain technical skills of management are required which use to maximize the production and minimize the waste , so the kind of management do in this way called production management.

7- SALES MANAGEMENT Sales Management is a part of broader filed of marketing or we can say that it is part of the field of management which concerns its self with the managerial aspects of marketing. Major parts of SALES MANAGEMENT. 1. 2. 3. 4. Functions of Sales management Planning and execution Planning consists or research and evaluation of organization goals or targets. Execution deals with assignment and __________ of work force and made good communication classification of sales management.

Management sale and service personal.

8 -FINANCIAL MANAGEMENT The role of finance is very important in an organization so to resolve the financial matters effectively by the management. Important factors of financial management.
1 . 2 . 3 . 4 . 5 . In e e t R le t rs o P n in D u ie la n g iffic lt s D mn o C p a e a d f a it l b s e sa din iv u l inw h u in s n d id a it A c u t gP o le c o n in r b m

6 . 7 . 8 . 9 .

T e&r km n g m n im is aae et C s flo v e r in a h w /s a n g T ec p a m r e h a it l a k t P im r &S c n a ym r e r ay eo dr ak t

Financial management may help to serve and secure the interest of organization in field of finance.

NEED THEORY OF MOTIVATION / MASLOWS THEORY OF NEEDS


MOTIVATION: Motivation as the processes that account for an individuals intensity, direction and persistence of effort toward attaining a goal. Finally motivation has a persistence dimension. This is a measure of how long a person can maintain his or her effort. Motivated individuals stay with a task long enough to achieve their goal.

H R R H O N E ST E R IE A C Y F E D H O Y
Its probably safe to say that the most well known theory of motivation is Abraham Maslows hierarchy of needs. He hypothesized that within every human being there exists a hierarchy of five needs. These needs are: 1- Physiological: Includes hunger, thirst, shelter, sex, and other bodily needs. 2- Safety: Includes security and protection from physical and emotional harm. 3- Social: Includes affection, belongingness, acceptance and friendship. 4-Esteem: Includes internal esteem factors such as self-respect, autonomy and achievement and external esteem factors such as status recognition and attention. 5- Self-actualization: the drive to become what one is capable of becoming includes growth achieving ones potential and self fulfillment. As each of these needs becomes substantially satisfied the next need becomes dominant. LOWER ORDER NEEDS: Needs that are satisfied externally physiological and safety needs. HIGHER ORDER NEEDS: needs that are satisfied internally social esteem and self actualization needs.

E P A A IO O IM O T N E O XL NT N R P RA C F M S O ST E R AL W HOY
Maslows need theory has received wide recognition particularly among practicing mangers. This can be attributed to the theory intuitive logic and ease of understanding. Unfortunately however research does not generally validate the theory. Maslows provided no empirical substantiation and several studies that sought to validate the theory found no support for it.

MBO (MANAGEMENT BY OBJECTIVE)

MBO Management by objective is the approach by which both employees and superior jointly set performance goals and duties. Having participated in the fixation of his own goals, the employee becomes more involved dutiful and active in performance. MBO facilitates employees to adjust their time schedules from time to time to attain the goals in planned time. It helps employees understand objectives and duties clearly.

MBO HAS THREE ELEMENTS 1. Managers (Subordinate manger) should be measured what they accomplish rather than how they spend their time. 2. Manager must be well informed of their objectives. Manager objectives are their duties that they must perform. 3.Manager and their subordinates should jointly set performance objectives.

PROCESS OF MBO

The process starts at the top of an organization and has the active support of the chief executive who give direction to the organization it is not essential that objective setting start t the top however it can start at the division level at the marketing manager level or even lower e.g in one company the system was first started in a division where it was carried down to the lowest level of supervision with an interlocking networking network of goals. As in all other kinds of planning one of the critical needs in MBO is the development and dissemination of consistent planning premises no manager can be expected to set goals or establish budgets without guidelines.

ADVANTAGES OF MBO 1.Organization is clearly defined in setting MBO organization roles and structure have to be clearly defined. Clearly defined authority is delegated key clearly defined 2. Better management the quality of management is improved because mbo focuses its attention in planning, Organization and controlling 3. Personnel Commitment the subordinate manager is committed dutiful and active in performance . he has high morale 4. Effective control managers are self directed and controlled.

MANAGEMENT CONTROL & ITS VARIOUS STEPS OF CONTROL PROCESS

MANAGEMENT CONTROL

Like other things are controlled management and managerial activities such as decision making, plans and putting them into effect. This type of control ensures the quality of management in terms of preparation of efficient and accomplishable plans, their execution and maximum output with a minimum input. Management control may be Direct control and Indirect control.

CONTROL PROCESS

The basis control process has three steps. 1. Establishing standards 2. Measuring performance 3. Correcting deviations

1. Establishing Standards

standards are yardsticks against which actual results are measured and efficiency is determined. Standards are plans which tell us where we should be. Standards may be physical, financial, qualitative or tangible. Standards are usually stated in specific terms but they may also be intangible like the degree of morale goodwill market image and public opinion and attitude.

2. Measuring Performance Standards are established to measure actual performance. By measuring actual performance against standards we come to know where we are as against we were supposed to be if the standards are objective measurement is objective.

3.Correction of Deviation the negative difference between where we should have been and where we actually are is controlled. Deviation is corrected controls should facilitate corrective actions. The manager may e compelled to correct actions by redrawing his plans or by modifying his goals. if controls are forward looking they may indicate weak areas in time stopping further damage.