CHETHAN.

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Dept. Of Management, SIMS

MANAGEMENT PROCESS

 Meaning:-
Management is a distinct ongoing process of allocating inputs of an
organization (human and economic resources) by typical managerial
functions (planning, organizing, directing and controlling) for the
purpose of achieving stated objectives, viz., output of goods and services
desired by its customers (environment).
It is a process of consisting of functions such as planning, organizing,
controlling business operations in such a manner as to attain the
predetermined goals.
It consist of all organizational activities that involve goal formation and
accomplishment, performance appraisal and the development of an
operating philosophy that ensures organization survival.
 Definition of Management:-

According to Harold Koontz,

"Management is the art of getting things done through and with people
in formally organized groups."
According to Henri Fayol,
"To manage is to forecast and to plan, to organize, to command, to co-
ordinate and to control."
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 FEATURES OF MANAGEMENT:-

1. Continuous and never ending process:-

Management is a Process. It includes four main functions, viz., Planning,

Organizing, Directing and Controlling. The manager has to Plan and
Organize all the activities. He had to give proper Directions to his
subordinates. He also has to Control all the activities. The manager has
to perform these functions continuously. Therefore, management is a
continuous and never ending process.
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2. Getting things done through people:-

The managers do not do the work themselves. They get the work done
through the workers. The workers should not be treated like slaves. They
should not be tricked, threatened or forced to do the work. A favourable
work environment should be created and maintained.
3. Result oriented science and art:-

Management is result oriented because it gives a lot of importance to

"Results". Examples of Results like, increase in market share, increase
in profits, etc. Management always wants to get the best results at all
times.

4. Multidisciplinary in nature:-

Management has to get the work done through people. It has to manage
people. This is a very difficult job because different people have
different emotions, feelings, aspirations, etc. Similarly, the same person
may have different emotions at different times. So, management is a
very complex job. Therefore, management uses knowledge from many
different subjects such as Economics, Information Technology,
Psychology, Sociology, etc.

5. A group and not an individual activity:-

Management is not an individual activity. It is a group activity. It uses
group (employees) efforts to achieve group (owners) objectives. It tries
to satisfy the needs and wants of a group (consumers). Nowadays,
importance is given to the team (group) and not to individuals.
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6. Follows established principles or rules:-

Management follows established principles, such as division of work,
discipline, unity of command, etc. These principles help to prevent and
solve the problems in the organization.

7. Aided but not replaced by computers:-

Now-a-days, all managers use computers. Computers help the managers
to take accurate decisions. However, computers can only help
management. Computers cannot replace management. This is because
management takes the final responsibility. Thus Management is aided
(helped) but not replaced by computers.

8. Situational in nature:-
Management makes plans, policies and decisions according to the
situation. It changes its style according to the situation. It uses different
plans, policies, decisions and styles for different situations.

9. Need not be an ownership:-

In small organizations, management and ownership are one and the

same. However, in large organizations, management is separate from
ownership. The managers are highly qualified professionals who are
hired from outside. The owners are the shareholders of the company.

10. Both an art and science:-

Management is result-oriented. Therefore, it is an Art. Management
conducts continuous research. Thus, it is also a Science.
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11. Management is all pervasive:-

Management is necessary for running a business. It is also essential for
running business, educational, charitable and religious institutions.
Management is a must for all activities, and therefore, it is all pervasive.

12. Management is intangible:-

Management is intangible, i.e. it cannot be seen and touched, but it can
be felt and realized by its results. The success or failure of management
can be judged only by its results. If there is good discipline, good
productivity, good profits, etc., then the management is successful and
vice-versa.

13. Uses a professional approach in work:-

Managers use a professional approach for getting the work done from
their subordinates. They delegate (i.e. give) authority to their
subordinates. They ask their subordinates to give suggestions for
improving their work. They also encourage subordinates to take the
initiative. Initiative means to do the right thing at the right time without
being guided or helped by the superior.

14. Dynamic in nature:-

Management is dynamic in nature. That is, management is creative and

innovative. An organisation will survive and succeed only if it is
dynamic. It must continuously bring in new and creative ideas, new
products, new product features, new ads, new marketing techniques, etc.
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Dept. Of Management, SIMS

 Management — an Art, A Science or A Profession?

 Science implies existence of a body of knowledge in a

systematized form based upon careful observation, accurate
measurement, experimentation and inferences or conclusions
derived from detailed analysis of data, i.e., facts and figures.

 The knowledge is verifiable through experiments giving us the

cause-effect phenomenon. In other words, science provides the
theory, principles and the laws on any branch of human
knowledge. Science gives knowledge which in turn gives power
for application.

 Management is a developing science. It has now evolved certain

basic principles and elements in the form of process of
management which has universal application in each branch of
human activity profit-making as well as non-profit organizations.
However, management is riot comparable to exact sciences like
physics, chemistry, biology, etc. It deals with human beings and it
is a social science like the science of economics.

 It is quite obvious that principles of management are not

fundamental truths and their application may not yield the desired
results always. Human behaviour is ever-changing and most
unpredictable. It is not governed by the laws of mechanics.

 A human being is not an inanimate machine. Hence, management

dealing with complex human beings is bound to be an inexact
science.
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Even then theoretical base of knowledge is essential for developing

sound practice. In fact, theory must be supplemented by practical
knowledge continuously. Science and art are complementary and
each supplements the other.

 Art reflects practical application of knowledge and it is perfected

through knowledge and experimentation. Art is not only based on
knowledge but it derives its inspiration through intuition,
inspiration and such other purely subjective attributes.

 A manager is not only a scientist but also an artist. As a scientist,

he relies on the existing theory and philosophy of management and
develops new knowledge, new principles and new schools of
management thought.

 As an artist, he has to depend on his own experience, intuition and

judgment while making a decision on any managerial problem and
taking action on the decisions to realise the set objectives.
Scientific attitude and scientific method shall be applied in
problem-solving approach, e.g.. marketing research, business
research, etc. But decision making cannot be totally reduced to
science.

 In reality, human judgment and experience enjoy the veto power in

decision and as a decision-maker a manager is an artist. In the
ultimate analysis, decision making, the heart of management, is an
Art, to be acquired by conscious effort and practice.

 ‘Knowledge is power’ is an old saying. But to be correct the saying

should be ‘Applied knowledge is power.’ Neither science should
and the art of management go together hand-in-hand and both are
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mutually interdependent and complementary. Theoretical teaching

of medicine and engineering is almost invariably accompanied by
practical work in a hospital or workshop.

 Process of Management:-

The management work can divided into a few basic functions of

management, viz:

(1) Planning,

(2) Organizing,

(3) Directing,

(4) Controlling.
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Dept. Of Management, SIMS

 Objectives of Management:
The primary objective of management is to run the enterprise smoothly.
The profit earning objective of a business is also to be kept in mind
while undertaking various functions.

Following are the broad objectives of management:

1. Proper Utilization of Resources:
The main objective of management is to use various resources of the
enterprise in a most economic way. The proper use of men, materials,
machines and money will help a business to earn sufficient profits to
satisfy various interests. The proprietors will want more returns on their
investments while employees, customers and public will expect a fair
deal from the management. All these interests will be satisfied only
when physical resources of the business are properly utilized.

2. Improving Performance:
Management should aim at improving the performance of each and
every factor of production. The environment should be so congenial that
workers are able to give their maximum to the enterprise. The fixing of
objectives of various factors of production will help them in improving
their performance.

3. Mobilizing Best Talent:

The management should try to employ persons in various fields so that
better results are possible. The employment of specialists in various
fields will be increasing the efficiency of various factors of production.
There should be a proper environment which should encourage good
persons to join the enterprise. The better pay scales, proper amenities,
future growth potentialities will attract more people in joining a concern.
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Dept. Of Management, SIMS

4. Planning for Future:

Another important objective of management is to prepare plans. No
management should feel satisfied with today’s work if it has not thought
of tomorrow. Future plans should take into consideration what is to be
done next. Future performance will depend upon present planning. So,
planning for future is essential to help the concern.

 Scope or Branches of Management:

Management is an all pervasive function since it is required in all types
of organized Endeavour. Thus, its scope is very large.

The following activities are covered under the scope of management:

(i) Planning,

(ii) Organization

(iii) Staffing.

(iv) Directing,

(v) Coordinating, and

(vi) Controlling.

The operational aspects of business management, called the

branches of management, are as follows:
1. Production Management

2. Marketing Management

3. Financial Management.

4. Personnel Management and

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5. Office Management.

1. Production Management:
Production means creation of utilities. This creation of utilities takes
place when raw materials are converted into finished products.
Production management, then, is that branch of management ‘which by
scientific planning and regulation sets into motion that part of enterprise
to which has been entrusted the task of actual translation of raw material
into finished product.’

2. Marketing Management:
Marketing is a sum total of physical activities which are involved in the
transfer of goods and services and which provide for their physical
distribution. Marketing management refers to the planning, organizing,
directing and controlling the activities of the persons working in the
market division of a business enterprise with the aim of achieving the
organization objectives.

3. Financial Management:
Finance is viewed as one of the most important factors in every
enterprise. Financial management is concerned with the managerial
activities pertaining to the procurement and utilization of funds or
finance for business purposes.

The main functions of financial management include:

(i) Estimation of capital requirements;
(ii) Ensuring a fair return to investors;
(iii) Determining the suitable sources of funds;
(iv) Laying down the optimum and suitable capital
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Dept. Of Management, SIMS

4. Personnel Management:
Personnel Management is that phase of management which deals with
the effective control and use of manpower. Effective management of
human resources is one of the most crucial factors associated with the
success of an enterprise. Personnel management is concerned with
managerial and operative functions.

Managerial functions of personnel management include:

(i) Personnel planning;
(ii) Organizing by setting up the structure of relationship among jobs,
personnel and physical factors to contribute towards organization goals;
(iii) Directing the employees; and
(iv) Controlling.

The operating functions of personnel management are:

(i) Procurement of right kind and number of persons;

(ii) Training and development of employees;

(iii) Determination of adequate and equitable compensation of

employees;

(iv) Integration of the interests of the personnel with that of the

enterprise; and

(v) Providing good working conditions and welfare services to the

employees.

5. Office Management:
The concept of management when applied to office is called ‘office
management’.
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Office management is the technique of planning, coordinating and

controlling office activities with a view to achieve common business
objectives. One of the functions of management is to organize the office
work in such a way that it helps the management in attaining its goals. It
works as a service department for other departments.

The success of a business depends upon the efficiency of its

administration. The efficiency of the administration depends upon the
information supplied to it by the office. The volume of paper work in
office has increased manifold in these days due to industrial revolution,
population explosion, increased interference by government and
complexities of taxation and other laws.

 Management and Administration

According to Theo Haimann, “Administration means overall
determination of policies, setting of major objectives, the identification
of general purposes and laying down of broad programmes and
projects”. It refers to the activities of higher level. It lays down basic
principles of the enterprise.

Whereas, management involves conceiving, initiating and bringing

together the various elements; coordinating, actuating, integrating the
diverse organizational components while sustaining the viability of the
organization towards some pre-determined goals. In other words, it is an
art of getting things done through & with the people in formally
organized groups.

The difference between Management and Administration can be

summarized under 2 categories: -
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1. Functions
2. Usage / Applicability

On the Basis of Functions: -

Basis Management Administration

Meaning Management is an art of getting It is concerned with

things done through others by formulation of broad
directing their efforts towards objectives, plans & policies.
achievement of pre-determined
goals.

Nature Management is an executing Administration is a decision-

function. making function.

Process Management decides who Administration decides what

should as it & how should he is to be done & when it is to
dot it. be done.

Function Management is a doing function Administration is a thinking

because managers get work function because plans &
done under their supervision. policies are determined under
it.

Skills Technical and Human skills Conceptual and Human skills

Level Middle & lower level function Top level function

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On the Basis of Usage: -

Basis Management Administration

Applicability It is applicable to It is applicable to non-

business concerns i.e. business concerns i.e. clubs,
profit-making schools, hospitals etc.
organization.

Influence The management The administration is

decisions are influenced influenced by public opinion,
by the values, opinions, govt. policies, religious
beliefs & decisions of the organizations, customs etc.
managers.

Status Management constitutes Administration represents

the employees of the owners of the enterprise who
organization who are paid earn return on their capital
remuneration (in the form invested & profits in the form
of salaries & wages). of dividend.

Practically, there is no difference between management &

administration. Every manager is concerned with both - administrative
management function and operative management function as shown in
the figure. However, the managers who are higher up in the hierarchy
denote more time on administrative function & the lower level denote
more time on directing and controlling worker’s performance i.e.
management.
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Dept. Of Management, SIMS

 Importance of Management
1. It helps in Achieving Group Goals - It arranges the factors of
production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals.
2. Optimum Utilization of Resources - Management utilizes all the
physical & human resources productively. This leads to efficacy in
management. Management provides maximum utilization of scarce
resources by selecting its best possible alternate use in industry
from out of various uses.
3. Reduces Costs - It gets maximum results through minimum input
by proper planning and by using minimum input & getting
maximum output. Management uses physical, human and financial
resources in such a manner which results in best combination. This
helps in cost reduction.
4. Establishes Sound Organization - No overlapping of efforts
(smooth and coordinated functions). To establish sound
organizational structure is one of the objective of management
which is in tune with objective of organization and for fulfillment
of this, it establishes effective authority & responsibility
relationship.
5. Establishes Equilibrium - It enables the organization to survive in
changing environment. It keeps in touch with the changing
environment. With the change is external environment, the initial
co-ordination of organization must be changed.
6. Essentials for Prosperity of Society - Efficient management leads
to better economical production which helps in turn to increase the
welfare of people.
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 Levels of Management
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of

managers at all the three levels is discussed below:

LEVELS OF MANAGEMENT
1. Top Level of Management

It consists of board of directors, chief executive or managing

director. The top management is the ultimate source of authority
and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies

of the enterprise.
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b. It issues necessary instructions for preparation of department

budgets, procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental
managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the
outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the
shareholders for the performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute

middle level. They are responsible to the top management for the
functioning of their department. They devote more time to
organizational and directional functions. In small organization,
there is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level
management. Their role can be emphasized as -

a. They execute the plans of the organization in accordance

with the policies and directives of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level
management.
d. They interpret and explain policies from top level
management to lower level.
e. They are responsible for coordinating the activities within the
division or department.
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f. It also sends important reports and other important data to top

level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers
towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of

management. It consists of supervisors, foreman, section officers,
superintendent etc.

According to R.C. Davis, “Supervisory management refers to those

executives whose work has to be largely with personal oversight
and direction of operative employees”. In other words, they are
concerned with direction and controlling function of management.
Their activities include -

a. Assigning of jobs and tasks to various workers.

b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of
production.
d. They are also entrusted with the responsibility of maintaining
good relation in the organization.
e. They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher
level goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for
getting the things done.
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j. They prepare periodical reports about the performance of the

workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.

Functions of Management
Management has been described as a social process involving
responsibility for economical and effective planning & regulation of
operation of an enterprise in the fulfillment of given purposes. It is a
dynamic process consisting of various elements and activities. These
activities are different from operative functions like marketing, finance,
purchase etc. Rather these activities are common to each and every
manger irrespective of his level or status.

Different experts have classified functions of management. According

to George & Jerry, “There are four fundamental functions of
management i.e. planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to

organize, to command, & to control”. Whereas Luther Gullick has given
a keyword ’POSDCORB’ where P stands for Planning, O for
Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions
of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of

management but practically these functions are overlapping in nature i.e.
they are highly inseparable. Each function blends into the other & each
affects the performance of others.
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1. Planning

It is the basic function of management. It deals with chalking out a

future course of action & deciding in advance the most appropriate
course of actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance - what
to do, when to do & how to do. It bridges the gap from where we
are & where we want to be”. A plan is a future course of actions. It
is an exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals. Thus,
planning is a systematic thinking about ways & means for
accomplishment of pre-determined goals.
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Dept. Of Management, SIMS

2. Organizing

It is the process of bringing together physical, financial and human

resources and developing productive relationship amongst them for
achievement of organizational goals. According to Henry Fayol,
“To organize a business is to provide it with everything useful or
its functioning i.e. raw material, tools, capital and personnel’s”. To
organize a business involves determining & providing human and
non-human resources to the organizational structure. Organizing as
a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping

it manned. Staffing has assumed greater importance in the recent
years due to advancement of technology, increase in size of
business, complexity of human behavior etc. The main purpose o
staffing is to put right man on right job i.e. square pegs in square
holes and round pegs in round holes. According to Kootz &
O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection,
appraisal & development of personnel to fill the roles designed un
the structure”. Staffing involves:
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 Manpower Planning (estimating man power in terms of

searching, choose the person and giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.
4. Directing

It is that part of managerial function which actuates the

organizational methods to work efficiently for achievement of
organizational purposes. It is considered life-spark of the enterprise
which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the
work. Direction is that inert-personnel aspect of management
which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational
goals. Direction has following elements:

 Supervision
 Motivation
 Leadership
 Communication

Supervision- implies overseeing the work of subordinates by their

superiors. It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-

ordinates with zeal to work. Positive, negative, monetary, non-
monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager

guides and influences the work of subordinates in desired
direction.
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Communications- is the process of passing information,

experience, opinion etc from one person to another. It is a bridge of
understanding.

5. Controlling

It implies measurement of accomplishment against the standards

and correction of deviation if any to ensure achievement of
organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient
system of control helps to predict deviations before they actually
occur. According to Koontz & O’Donnell “Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives
and plans desired to obtain them as being accomplished”.

Henry Fayol’s 14 Principles Of Management:-

1. DIVISION OF WORK: Work should be divided among
individuals and groups to ensure that effort and attention are
focused on special portions of the task. Fayol presented work
specialization as the best way to use the human resources of the
organization.

2. AUTHORITY: The concepts of Authority and responsibility are

closely related. Authority was defined by Fayol as the right to
give orders and the power to exact obedience. Responsibility
involves being accountable, and is therefore naturally associated
with authority. Whoever assumes authority also assumes
responsibility.
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3. DISCIPLINE: A successful organization requires the common

effort of workers. Penalties should be applied judiciously to
encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from

only one manager.

5. UNITY OF DIRECTION: The entire organization should be

moving towards a common objective in a common direction.

Basis Unity of command Unity of direction

Meaning It implies that a sub-ordinate It means one head, one plan for
should receive orders & a group of activities having
instructions from only one similar objectives.
boss.

Nature It is related to the It is related to the functioning of

functioning of personnel’s. departments, or organization as
a whole.

Necessity It is necessary for fixing It is necessary for sound

responsibility of each organization.
subordinates.

Advantage It avoids conflicts, confusion It avoids duplication of efforts

& chaos. and wastage of resources.

Result It leads to better superior It leads to smooth running of

sub-ordinate relationship. the enterprise.
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6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE

GENERAL INTERESTS: The interests of one person should not
take priority over the interests of the organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply

of qualified personnel, general business conditions, and success of
the business, should be considered in determining a worker’s rate of
pay.
8. CENTRALIZATION: Fayol defined centralization as lowering the
importance of the subordinate role. Decentralization is increasing the
importance. The degree to which centralization or decentralization
should be adopted depends on the specific organization in which the
manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like

authority scale. Each manager, from the first line supervisor to the
president, possess certain amounts of authority. The President
possesses the most authority; the first line supervisor the least.
Lower level managers should always keep upper level managers
informed of their work activities.

10. ORDER: For the sake of efficiency and coordination, all materials
and people related to a specific kind of work should be treated as
equally as possible.
11. EQUITY: All employees should be treated as equally as possible.

12. STABILITY OF TENURE OF PERSONNEL: Retaining

productive employees should always be a high priority of
management. Recruitment and Selection Costs, as well as increased
product-reject rates are usually associated with hiring new workers.
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13. INITIATIVE: Management should take steps to encourage

worker initiative, which is defined as new or additional work activity
undertaken through self direction.

14. ESPIRIT DE CORPS: Management should encourage harmony

and general good feelings among employees.

 Social responsibility of Management and Ethics:-

Meaning:

Social responsibility of business implies the obligations of the

management of a business enterprise to protect the interests of the
society.

According to the concept of social responsibility the objective of

managers for taking business decisions is not merely to maximize profits
or shareholders’ value but also to serve and protect the interests of other
members of a society such as workers, consumers and the community as
a whole.

 Meaning of Ethics:-
Moral principles that govern a person's behavior or the
conducting of an activity.

 Meaning of Business Ethics:-

Application of ethics in Business is called Business
Ethics.
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1. Responsibility to Shareholders:
In the context of good corporate governance, a corporate enterprise must
recognize the rights of shareholders and protect their interests. It should
respect shareholders’ right to information and respect their right to
submit proposals to vote and to ask questions at the annual general body
meeting.
2. Responsibility to Employees:

The success of a business enterprise depends to a large extent on the

morale of its employees. Employees make valuable contribution to the
activities of a business organization. The corporate enterprise should
have good and fair employment practices and industrial relations to
enhance its productivity. It must recognize the rights of workers or
employees to freedom of association and free collective bargaining.
Besides, it should not discriminate between various employees.

3. Responsibility to Consumers:
Some economists think that consumer is a king who directs the business
enterprises to produce goods and services to satisfy his wants. However,
in the modern times this may not be strictly true but the companies must
acknowledge their responsibilities to protect their interests in
undertaking their productive activities.
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Dept. Of Management, SIMS

4. Obligation towards the Environment:

The foremost responsibility of business enterprises is to ensure that they
should not damage the environment and for this purpose they should
reduce as much as possible air and water pollution by their productive
activities. They should not dump their toxic waste products in rivers and
streams to avoid their pollution. Pollution of environment poses a great
health hazard for the people and is a cause of several respiratory and
skin diseases.

5. Responsibility to Society in General:

Business enterprises function by public consent with the basic objective
of producing goods and services to meet the needs of the society and
provide employment to the people. The traditional view is that in
performing this function businesses maximise profits or shareholders’
value and doing so they do not behave in any socially irresponsible way.