Management for Engineers

Instructor: Nelwin Raj N. R.

Syllabus (Module 2 – Management and
Organization)
• Management Process, Planning types , Mission, Goals,
Strategy, Programmes, Procedures, Organising, Principles of
Organisation, Delegation, Span of Control, Organisation
Structures, Directing, Leadership, Motivation, Controlling.
Roles of Manager
 Role of the Manager

• A manager’s role is to organise, supervise and

control people so that there is a productive outcome
to work.
 Interpersonal Role
• Figurehead: activity include ceremony, status requests
and solicitations.
• Leader: for motivating and activating the subordinates.
• Liaison: means a self-developed network of outside
contacts and information.
 Informational Roles
• Monitor: This means seeking and receiving a wide variety
of special information to develop a thorough understanding
of organization and environment.
• Disseminator: This means transmission of outside
information to his subordinates.
• Spokesperson: This means transmitting information to
outsiders on behalf of the organization or department that
he heads.
 Decisional Roles
• Entrepreneur: this means searching the organization and its
environment for opportunities and initiating the improvement
(change) process to bring about transformation.
• Disturbance Handler: responsibility related to corrective actions
when organization faces sudden, unexpected disturbances.
• Resource Allocator: responsibility related to the allocation of
recourses of the organization among all concerned people or
departments.
• Negotiator: representing the organization at major negotiation.
 Change Handler
• Continuous improvement supporter: This means the route
of marginal or gradual improvement.
• Benchmarking Leader: involves identifying best practices or
world class performers in your area and identification of gap
between world class and your organization.
• Re-engineering Leader: is the total, radical redesign of the
system.
 Knowledge Leadership Role
• Knowledge team builder: This means that the manager
should create teams that have expertise in certain areas.
• Sustaining and maintaining knowledge: This related to
knowledge management. Activities include documenting
and sharing the expertise among group members.
Management Process - Functions of
Manager
Functions of Manager
Engineering Management is an art and science of (Major Five
Managerial Functions are highlighted)
•forecasting
•planning
•organizing
•staffing
•directing (Leadership, Communication, Motivation, Supervision)
•Coordinating
•Controlling
•Decision Making
 Forecasting

• Forecasting is a necessary preliminary to planning.

• Forecasting estimates the future work or what should

be done in future; may be as regards Sales or
production or any other aspect of business activities.
 Planning
• Planning all aspects of production, selling etc are essential in
order to minimize intangibles.
• Planning is a process by which a manager anticipates the
future and discovers alternatives courses of action open to
him.
• what will be done in future, who will be done in future, who
will do it and where it will be done.
• Without proper planning, the activities of an enterprise may
become confused, haphazard and ineffective.
 Organizing
• Organizing involves those activity of the management that are
performed to translate the required activities of plans into a
structure of task, authority and responsibility.
• Organizing is the process by which the structure and allocation of
jobs is determined.
• Organizing involves determining activities required to achieve the
established company objectives, grouping these activities in a
logical basis for handling by subordinate, managers, and finally
assigning persons to the job designed. In carrying out the above,
the manager will delegate necessary authority to his subordinates
and they in turn will take the necessary responsibility.
 Staffing
• Staffing is the process by which managers select, train,
promote and retire their subordinates.
• Staffing involves the developing and placing of qualified
people in the various jobs in the organization.
• Staffing is a continuous process. The aim is to have
appropriate
• persons to move into vacated positions or positions newly
created in the enterprise.
Directing
• Directing is the process by which actual performance of
subordinates is guided towards common goals of the enterprise.
• Directing involves motivating, guiding and supervising
subordinates towards company objectives.
• Directing involves functions such as
• Leadership
• Communication
• Motivation
• Supervision
 Directing - Leadership
• Leadership is the quality of the behavior of the managers
whereby they inspire confidence and trust in their
subordinates, get maximum cooperation from them and guide
their activities in organized effort.
• Leadership is more than personal ability and skill.
Directing - Communication
• Communication is the process by which ideas are transmitted,
received and understood by others for the purpose of selecting
desired results.
• Communication may be verbal or written orders, reports, instruction
etc.
• an ineffective communication leads to confusion, misunderstanding,
dissatisfaction and sometimes even strikes.
 Directing - Supervision
• supervision is necessary in order to ensure
• that the work is going on as per the plan established and
• that the workers are doing as they were directed to do.
 Coordinating
• Coordinating means achieving harmony of individual effort towards
the accomplishment of company objectives.
• Ineffective coordination between different functions of a business
enterprise (such as production, sales, administration etc.) can ruin the
enterprise.
 Controlling
• Controlling is the process that measures current performance
and guides it towards some predetermined goal.
• Controlling involves:
• the monitoring of program activities to make sure that end
objectives are being met.
• the initiation of corrective action as required to over-come
problems, if any, hindering the accomplishment of objectives.
Decision Making
• Decision making is the process by which a course of action is consciously
chosen from available alternatives for the purpose of achieving desired
results.
• An outstanding quality of a successful manager is his ability to make
sound and logical decisions.
What Is Planning?
• Planning is the process of analyzing the situation, determining the goals/
objectives that will be persuaded in the future and deciding in advance, the
actions that will be taken to achieve.

• Planning is selecting process .

• Planning minimize uncertainties.

• Planning improves employee's moral

 What Is Planning?
• Planning
• involves defining the organization’s goals, establishing an overall
strategy, and developing a comprehensive set of plans to
integrate and coordinate organizational work
• informal planning - nothing is written down
• little or no sharing of goals
• general and lacking in continuity
• formal planning - written
• defines specific goals
• specific action programs exist to achieve goals
© Prentice Hall, 2002
 Definition of Planning
• Weihrich & Koontz “Planning involves selecting missions and
objectives and the actions to achieve them; it requires decision
making, that is, choosing from among alternative future courses of
action”.
• McFarland “Planning may be broadly defined as a concept of
executive action that embodies the skills of anticipating, influencing
& controlling the nature &direction of change”.
• Terry “Planning is the selection & relating of fact & making & using
of assumption regarding the future in the visualisation & formation
of proposed activities believed necessary to achieve desired result.”
 Benefits of Planning
• Allows decisions to be made ahead of time.
• Permits anticipation of consequences.
• Provides direction and a sense of purpose.
• Provides a unifying framework; avoiding piecemeal decision making.
• Improves competitive strength
• Achieves better coordination
• Helps identify threats and opportunities and reduces risks.
• Facilitates managerial control through the setting of standards for monitoring
and measuring performance.
• Encourages innovation & creativity
Does Planning Improve Performance?

• Financial results

• Environmental concerns

• Quality and implementation

 Importance of planning
• Purposes of Planning
• Planning is the primary management function that establishes the
basis for all other management functions
• Planning establishes coordinated effort
• Planning reduces uncertainty
• Planning reduces overlapping and wasteful activities
• Manage complexities & competition
• Planning establishes goals and standards used in controlling
• To increase organizational effectiveness
 Importance of Planning
• Planning and Performance
• Generally speaking, formal planning is associated with:
• Higher return on assets
• Higher profits
• Quality of the planning process and the appropriate
implementation of the plans probably contribute more to high
performance than does the extent of planning
• External environment may undermine the effects of formal
planning
• Planning/performance relationship is influenced by the planning
time frame
 Nature of planning
• Planning is an intellectual process
• Planning determines the future course of action
• Primarily concerned with looking into future
• Involves selection of suitable course of action, means there are several
alternatives for achieving objectives
• All levels are concerned with the determination of future course of action.
• Planning is the most basic to all management functions
• Planning is pervasive function of management
• Planning is flexible because future is always dynamic
• Planning is a pervasive & continuous managerial function involving complex
processes of perception, analysis, conceptual thought, communication,
decision,& action
Benefits of planning
• Reduces uncertainty
• Encourage innovation & creativity
• Improves motivation
• Achieve better coordination
• Facilitates control
• Planning leads to success
• Focuses attention
 Merits And Demerits Of Planning
Advantages: Disadvantages :
1.Reduces uncertainty 1.Limitations of forecasts
2.Ensures economical operations 2.Rigidity in administration
3.Facilitates control 3.Time consuming process
4.Improves motivation 4.Costly affair
5.Gives competitive edge 5.Influence of external factors
6.Avoids duplication of efforts 6.Psychological factors
 Categories of Planning
Organizational level Focus/ Breadth Time period

Corporate Strategic Long range

Divisional Operational Medium range
Functional Tactic Short range

Frequency
Specificity of Use
Directiona Single use
l Standing
© Prentice Hall, 2002
Specific
Mission – Objectives – goals – strategy –
policies – program - procedures
 (1)
Mission
or Purposes,
(2) Objectives or goals,
(3) Strategies,
(4) Policies,
(5) Procedures,
(6) Rules,
(7) Programs, and
(8) Budgets

Hierarchy Of Plans
 The Strategic Management Process
Set Mission, Identify
Analyze the
Objectives, Opportunities
Environment
and Strategies and Threats

Identify Reassess
Analyze
Strengths and Mission and
Resources
Weaknesses Objectives

Formulate Implement Evaluate

Strategies Strategies Results
 Vision Statements
• Amazon: “To be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy
online”
• Google: "To provide access to the world's information in one click.“
• Samsung: "Inspire the world, create the future.“
• SCTCE: “To become an engineering and Technology institution which
is renowned for producing professionally capable and socially
responsible engineers”
• SCTCE, Dept. of ECE: “To be a centre of quality education and
research in the field of Electronics and Communication Engineering,
to mould socially responsible engineering professionals.”
 Vision
• Vision is defined as the main target/goal that any Organization strive to
achieve in the long term
• An inspiring description of what you would like to achieve in the long term
future
• Where the organization want to go/ what do we want to become? (usually 10
– 15 years)
• Guide to make strategic decisions to inspire people
• Agreement on the basic vision is critically important to the firm’s success.
Because the shared and established vision :-
• Creates commonality of interests
• Reduces daily Routine
• Provides opportunity & challenge
 Vision Statement
1. Core Values of Company: The core values of your company define
its identity and how it interacts with the communities and the
environment.
2. Company Mission: Understanding what your company does and
how it operates it’s essential to plan for the future.
3. Company Culture: A strong company culture it’s a very important
part of the success of any business..
4. Current Strategic Goals: Before you think about future goals, you
must understand where your organization currently stands. Your
vision might be a long-term plan that sets goals for the next 5 to 10
years, but those goals need to be realistic.
 Vision Statement
5. Define Future Goals: Think about what you’d like your
company to achieve in the next 5 or 10 years based on the
current status of your business and create a strategic plan
to achieve your goals.
6. Write Vision Statement: Now that you have an idea of
the main elements that are involved in the process of
writing your vision statement, you can create one that fits
your organization.
 Vision Statements – accepted rules
• They should be short - two sentences at an absolute maximum
• They need to be specific to your business and describe a unique outcome that
only you can provide.
• Do not use words that are open to interpretation.
• Keep it simple enough for people both inside and outside your organization to
understand.
• It should be ambitious enough to be exciting but not too ambitious that it
seems unachievable.
• It needs to align to the company values that you want your people to exhibit as
they perform their work.
 Mission Statements
• Amazon: “We strive to offer our customers the lowest possible prices, the
best available selection, and the utmost convenience.”
• Google: “to organize the world's information and make it universally
accessible and useful.”
• Samsung: “to devote its talent and technology to creating superior products
and services that contribute to a better global society.”
• SCTCE: “To create a learning process for students to acquire engineering
fundamentals, in an environment that encourages analysis, team work,
entrepreneurship and ethical values, thus preparing them for productive
careers.”
• SCTCE, Dept. of ECE: “Provide a systematic teaching-learning process, aiming
quality education, in an ambience that encourages research, industry
interaction and value based education”
 Mission Statement
• a declaration of an organization’s “reason for being.”
• answers the pivotal question “What is our business?”
• essential for effectively establishing objectives and formulating
strategies
• reveals what an organization wants to be and whom it wants to
serve
• Also called a creed statement, a statement of purpose, a statement
of philosophy, a statement of beliefs, and a statement of business
principles
Characteristics of a Mission Statement
• A good mission statement allows for the generation and
consideration of a range of feasible alternative objectives and
strategies without unduly stifling management creativity.
• A mission statement needs to be broad to reconcile differences
effectively among, and appeal to, an organization’s diverse
stakeholders
Characteristics of a Mission Statement

A mission statement should:

•define what the organization is and what the organization
aspires to be
•be limited enough to exclude some ventures and broad enough
to allow for creative growth
•distinguish a given organization from all others
Characteristics of a Mission Statement

A mission statement should also:

•serve as a framework for evaluating both current and
prospective activities
•be stated in terms sufficiently clear to be widely understood
throughout the organization
Characteristics of a Mission Statement
• A good mission statement reflects the anticipations of
customers.
• The operating philosophy of organizations should be to identify
customers’ needs and then provide a product or service to fulfill
those needs.
 Mission Statement Components
• Customers—Who are the firm’s customers?

• Products or services—What are the firm’s major products or

services?

• Markets—Geographically, where does the firm compete?

• Technology—Is the firm technologically current?

• Concern for survival, growth, and profitability—Is the firm

committed to growth and financial soundness?
Mission Statement Components
• Philosophy—What are the basic beliefs, values, aspirations,
and ethical priorities of the firm?
• Self-concept—What is the firm’s distinctive competence or
major competitive advantage?
• Concern for public image—Is the firm responsive to social,
community, and environmental concerns?
• Concern for employees—Are employees a valuable asset of
the firm?
Mission Statements
The Process of Developing Vision and
Mission Statements
• Select several articles about these statements and ask all
managers to read these as background information.
• Ask managers themselves to prepare a vision and mission
statement for the organization.
• Merge these statements into a single document and distribute
the draft statements to all managers
• Process should create an “emotional bond” and “sense of
mission” between the organization and its employees
Importance of Vision and Mission Statements
1. To ensure unanimity of purpose within the organization
2. To provide a basis, or standard, for allocating organizational
resources
3. To establish a general tone or organizational climate
4. To serve as a focal point for individuals to identify with the
organization’s purpose and direction
5. To facilitate the translation of objectives into a work structure
6. To specify organizational purposes
Importance of Vision and Mission Statements
 Goals
• Increase customer satisfaction by 10 pts by
2022
• Reduce overall budget costs by 10% by 2022
• Increase market share by 5% by 2022
• Increase return on assets by 20% by 2022
 Goals
• The most important element of a successful program is the
development of attainable goals and measurable objectives
• Guides program planning and design
• Communicates to stakeholders
• Enables evaluation
• Success is dependent upon realistic goals
• Describe the overall purpose of the program
• Describe broad outcomes and concepts (what we want to accomplish)
• Expressed in general terms.
 Goals defining steps
• Research the topic (define needs)
• Involve stakeholders (gains commitment)
• Brainstorm goals
• Select the goals that have priority (decide on what matters)
• Limit the program to two-five goals (select realistic goals)
Objectives
• Specifically state how the goals will be achieved
• Are measurable: Define what you want to see
• Encourage a consistent focus on program functions
 SMART Objectives
• Specific: Be precise about what you are going to achieve
• Measurable: Quantify the objectives
• Appropriate: Align with the needs of the target audience
• Realistic: Do you have the resources to make the objective
happen?
• Time-Specific: State when you will achieve the objective
 Specific Objectives
Specific: Be precise about what you are going to
achieve
• Specify target
• Specify intended outcome
• One outcome per objective
• Avoid vague verbs (e.g. know, understand)
• Make sure the objective is linked to the goal
 Measurable Objectives

Measurable: Quantify the objectives

• Use measures as indicators of program success
• If possible, establish a baseline (e.g. In January 2009, 2%
of the engineering majors at the institution were female)
 Appropriate Objectives
Appropriate: Align with the needs of the target audience
• Meeting the objective will advance the goal
• Identify a specific target audience
• Are inclusive of diversity within your group
 Realistic Objectives
Realistic : Do you have the resources to make the objective
happen?
• Are important to stakeholders
• Are adequately resourced
• Can be achieved
 Time-Specific Objectives

Time-Specific: State when you will achieve the

objective
• Provide timeframe indicating when objective will be
met
 Strategies
• “A strategy is a pattern or plan that integrates an organization’s
major goals, policies, and action sequences into a cohesive whole.”
• James Quinn
• Strategies might be decisions about :
1. Which areas of business to be in?
2. Choice of marketing methods- using distribution channels, own
retail outlets or direct marketing.
3. Adoption of growth routes- organic or inorganic.
 Strategies
• The purpose of strategic plan is to determine and communicate
through a system of major objectives and policies, a picture of the
envisioned enterprise as a framework to guide, thinking planning
and action
• Strategies of an enterprise are:
1. The determination of its basic long term objectives and
adoption of courses of action.
2. Allocation of resources necessary to achieve their goals.
• Strategies have long term impact.
• A strategic plan comprehensively addresses long term direction for
the organisation.
Characteristics of an Effective Strategy – S. C. Wheelwright

• It is driven by customer wants and needs.

• It makes a significant contribution to the success of the business.
• It matches the organization’s unique resources with opportunities
in the environment.
• It is durable and difficult for competitors to copy.
• It provides a basis for further improvement.
• It provides direction and motivation to the entire organization.
 Policies
• Policies are standing plans that communicate broad guidelines for
decisions and actions.
• Policies focus attention on matters of special importance to the
organization.
• Then policies guide managers to deal with various situations and
take decisions which are consistent with and contribute to
organization's objectives.
 Policies
1.Help decide issues before they become problems.
2.It does away with the need to analyze the situation every
time it comes up.
3.Delegating authority.
4.Allows for some discretion.
5.Encourages decision making.
 Procedures
• Procedures are plans that establish a required method of executing
future activities.
• The activities must be done in a pre-determined sequence.
• Procedures may cut across departmental lines.
• Procedures are usually developed from a policy
• For instance: a company may have a policy of allowing leave travel
concession to its employees. To avail LTC facilities the employees
shall be required to follow a prescribed procedure
• Procedures are more of a guide to action rather than thinking.
 Rules
• Rules spell out specific actions (or non-actions) .
• They do not allow any discretion.
• They are the simplest form of plans.
• The difference between procedure and rule is that rules guide
action, without specifying a time sequence while procedures are
essentially a set of rules to be executed in a time sequence.
• However, a rule need not be a part of a procedure.
• For instance: ‘NO SMOKING’ is a rule but not a part of any
procedure. But acknowledging receipt of a customer order the same
day is a rule out of a procedure to handle customer orders.
 Programmes
• Programmes are a complex collection of goals, policies,
procedures, rules, tasks, assignment steps-to-be-taken to carry
out a given course of action.
• Programmes are usually supported by budgets.
• Example:
• Indian Airlines has a programme of acquiring 43 new airliners in 5
years.
 Programmes
• In the above example of Indian Airlines the company has to
initiate various programmes such as:
i. Programme for funding of purchase of aircrafts and spares.
ii. Programme for developing operating and maintenance bases.
iii. Programme for training of pilots, flight crews, and ground
engineers etc.
iv. Programme for recruiting new employees.
v. Programme for advertising new services and schedules.
• For total success individual supporting programmes require perfect
co-ordination and timing.
Organizing, Principles of organizing,
Organizing Structures
 Organizing
• The process of arranging people and other resources to
work together to accomplish a goal.
• Organizing can be viewed as the activities to collect and
arrange resources in order to implement plans in a highly
effective and efficient fashion
• Theo Haiman: “Organizing is the process of defining and
grouping the activities of the enterprise and establishing
the authority relationship among them”
 Nature of organising
Identification of Activities:
• Enterprise must perform different activities to achieve definite
objectives.
• The activities of enterprise depend on its nature and size.
Grouping of Activities:
• Identified activities must be classified on the basis of common nature
and should be put at one group or subgroup.
• Involves creating departments and sections for specific works such as
production, marketing, finance, human resources etc.
• Department may be sub divided into sections and individual jobs.
• It is helpful to maintain coordination and exercise control over activities.
 Nature of organising
Accumulation of Resources:
• Resources are essential for smooth functioning of an enterprise.
• Resources involve manpower, materials, machines, money, technology etc.
• Availability of needed resources facilitate for uniform and smooth performance of the
enterprise which if supportive to produce quality products and to provide quality service
in time.
Defining Hierarchy of Position:
• Hierarchy of authority is formed on the basis of degree of responsibility and
accountability.
• It clarifies the role of each individual from top to the subordinate level.
• Higher level job needs more skill, experience and responsibility.
• Chain of command is implemented to see the progress of work of respective
subordinates.
 Nature of organising
Assignment of jobs:
• Total works of an enterprise is divided into small units on the basis of their common
nature.
• Each work is assigned to different individuals on the basis of their skill, ability and
experience.
• Assignment of right jobs to the right persons develops the practice of specialization and
efficiency among them. Minimizes wastage of materials, breakdown of machines and
equipment and supervision cost.
Establishing Authority and Responsibility Relationship:
• For systematic functioning of managerial function it is essential to establish authority
and responsibility relationship of all the employees from top level to subordinate levels.
• Job responsibility should be given to the employees on the basis of their skill and
efficiency.
• proper authority should be given on the basis of level of responsibility.
 Nature of organising

Evaluation of Performance:
• Organizing involves evaluation of actual performance achieved
within stipulated time.
• After implementation of plan it is essential to evaluate actual work
completed.
• Facilitates to compare actual work completed with planned
estimation and to take corrective measures if actual work
completed it not in accordance of planned work.
• It is helpful to meet determined objectives within time defined
 Principles of organising
Principle of Specialization
•According to the principle, the whole work of a concern
should be divided amongst the subordinates on the basis of
qualifications, abilities and skills. It is through division of work
specialization can be achieved which results in effective
organization.
 Principles of organising
Principle of Functional Definition
• According to this principle, all the functions in a concern should be
completely and clearly defined to the managers and subordinates.
This can be done by clearly defining the duties, responsibilities,
authority and relationships of people towards each other.
Clarifications in authority-responsibility relationships helps in
achieving co-ordination and thereby organization can take place
effectively. For example, the primary functions of production,
marketing and finance and the authority responsibility relationships
in these departments should be clearly defined to every person
attached to that department. Clarification in the authority-
responsibility relationship helps in efficient organization.
 Principles of organising
Principle of Scalar Chain
• Scalar chain is a chain of command or authority which flows from top
to bottom. With a chain of authority available, wastages of resources
are minimized, communication is affected, overlapping of work is
avoided and easy organization takes place. A scalar chain of
command facilitates work flow in an organization which helps in
achievement of effective results. As the authority flows from top to
bottom, it clarifies the authority positions to managers at all level
and that facilitates effective organization.
 Principles of organising
Principle of Unity of Command
• It implies one subordinate-one superior relationship. Every
subordinate is answerable and accountable to one boss at one time.
This helps in avoiding communication gaps and feedback and
response is prompt. Unity of command also helps in effective
combination of resources, that is, physical, financial resources which
helps in easy co-ordination and, therefore, effective organization.
 Principles of organising
• Principles of Span of Control/Supervision
According to this principle, span of control is a span of supervision
which depicts the number of employees that can be handled and
controlled effectively by a single manager. According to this principle,
a manager should be able to handle what number of employees
under him should be decided.
 Span of control
Span of control is also called as span of management or span of supervision. It
refers to the number of subordinates who can be managed effectively by a
superior.
• It influences the complexities of individual managers job.
•It determines the shape of the organization
•Managers should have neither too many nor too few subordinates.
•It can be narrower or broader depending on the circumstances of each
managerial job.
o Subordinates work in such that little interaction with others is required
o The work of subordinate is similar.
o Problems are infrequent.
o Managers have few non-supervisory duties to perform
 Span of control
• A wide span of management exists when a manager has a
large number of subordinates. Generally, the span of control
may be wide when
• The manager and the subordinates are very competent.
• The organization has a well-established set of standard
operating procedures.
 Span of control
The features of this Wide Span of Control are:-
• Less overhead cost of supervision
• Prompt response from the employees
• Better communication
• Better supervision
• Better co-ordination
• Suitable for repetitive jobs
• According to this span, one manager can effectively and efficiently
handle a large number of subordinates at one time.
 Advantages of wide span
The advantages of wide span of control are:
• There are less layers of management to pass a
message through, so the message reaches more
employees faster
• It costs less money to run a wider span of control
because a business does not need to employ as many
managers
 Span of control
A narrow span of management exists when the manager has
only a few subordinates. The span should be narrow when
• The manager has a lot of work to do in addition to
supervising workers.
• A great deal of interaction is required between supervisor
and workers.
• Keep in mind that the span of management may change
from one department to another within the same
organization.
 Span of control
The features of Narrow Span of Control are:-
• Work which requires tight control and supervision, for
example, handicrafts, ivory work, etc. which requires
craftsmanship, there narrow span is more helpful.
• Co-ordination is difficult to be achieved.
• Communication gaps can come.
• Messages can be distorted.
• Specialization work can be achieved.
 Advantages of a narrow span
The advantages of a narrow span of control are:
• A narrow span of control allows a manager to
communicate quickly with the employees under them
and control them more easily
• Feedback of ideas from the workers will be more
effective
FACTORS THAT MAY AFFECT SPAN OF CONTROL
• Job complexity
• Capacity of superior
• Capacity of subordinates.
• Nature of work
• Degree of decentralization
• Degree of planning
• Communication technique
• Abilities of employees
• Use of staff assistance
 DELEGATION

The process of transferring the responsibility for a specific

task to another member and empowering that individual
to accomplish the task effectively.
 Benefits of Delegation
• More involved,empowered workforce
• Increased productivity and quality
• Reduced costs
• More innovation
• Greater commitment
 Advantages of Delegation
• Increases manager’s discretionary time
• Develops subordinate capabilities
• Demonstrates confidence in delegates
• Enhances commitment of delegates
• Improves decision making
• Increases efficiency
 Delegation
Things to consider when delegating:
• Qualifications of subordinate
• Necessity of employee commitment
• Expansion of employee capabilities
• Evidence of shared values and perspectives
• Sufficient time for delegation
Barriers to Delegation
■ Lack of confidence
■ Fear
■ Insecurity
■ Self -importance
 Delegation Steps
1. Decide what to delegate
2. Decide who will do the task
3. Assign responsibility
4. Grant authority
5. Establish accountability
 Principles of delegation
Deciding when:
• Subordinates have needed information
• Commitment is crucial
• Common values are shared
• Sufficient time is available
• Subordinates capabilities will be expanded
Deciding to whom:
• Involve no one
• Consult with other individuals, but decide alone
• Consult with a team but decide alone
• Let the team decide
• Participate as a member of the team
 Principles of delegation
• Deciding how:
• Begin with the end in mind
• Delegate completely
• Allow for participation
• Match authority with responsibility
• Work within the structure
• Provide support
• Focus accountability on results
• Delegate consistently
• Avoid upward delegation
• Clarify consequences
Principles of delegation
• Effective outcomes of delegation:
• Readily acceptable assignments
• High morale and motivation
• Organizational coordination and efficiency
• Increased problem solving abilities
• More discretionary time for managers
• Stronger interpersonal relationships
• Successful task completion
Organizational Structure and Design
Organizational Design - the process of constructing and
adjusting an organization’s structure to achieve its goals.
• the process of developing or changing an organization’s
structure.
Organization’s structure: the linking of departments and
jobs within an organization.
• the formal framework by which job tasks are divided,
grouped and coordinated.
 Organizational Structure
• Organization structure means the systematic arrangement of the
people working for the organization in order to achieve predecided
goals
• Organization structure is concerned with the establishment of
positions and the relationship between positions
• The structure provides an appropriate framework for authority and
responsibility relationships between various positions.
• The organizational structure is generally shown on an organizational
chart.
Organization Chart

Line-and-staff Structure
 Organizational Structure
• The structure has two dimensions: horizontal and vertical
• The horizontal dimension defines the basic departmentation.
Departmentation is the process of division of the enterprise into
different parts.
• The vertical aspects of the structure relate to the creation of a
hierarchy of superiors and subordinates, leading to the establishment
of a managerial structure.
• Organisation has informal structure too which arises spontaneously
out of the activities and interactions of people.
 Need for Organization Structure
• The organisation structure is designed by the management to achieve specific
goals.
• Organisation structure facilitates in fixing the responsibility departmentwise,
sectionwise or on individual basis, which is necessary for timely completion of
work.
• It is necessary for the establishment of authority. It also clarifies ones
authority.
• It helps in achieving the desired level of coordination.
• It promotes division of work and leads to specialisation.
• It avoids confusion , duplication, wastage and inefficiencies.
• Facilitates flow of information and decision making from one level to another.
 Functional Structure

Advantage: efficiency, communication

Disadvantage: isolation of units
 Product Structure

Advantages: Product focus, flexibility

Disadvantage: Duplication of effort
Market Structure
Geographic Structure
 Matrix Structure

R&D Engineering Manufacturing

Product A

Product B

Product C
Directing, Leadership
 Directing
• Directing is said to be a process in which the managers instruct,
guide and oversee the performance of the workers to achieve
predetermined goals.
Directing Elements
• Supervision: To oversee the work of staff. Supervision is the act
of coaching, reflecting, and directing work and workers.
• Motivation: To inspire, stimulate, and encourage staff.
• Leadership: To guide and influence the work of staff in a
purposeful direction.
 Directing
Direction has got following characteristics:
• Pervasive Function - Directing is required at all levels of
organization.
• Continuous Activity - Direction is a continuous activity as it
continuous throughout the life of organization.
• Human Factor - Directing function is related to subordinates and
therefore it is related to human factor.
• Creative Activity - Direction function helps in converting plans into
performance.
 Directing
Direction has got following characteristics:
• Executive Function - Direction function is carried out by all
managers and executives at all levels throughout the working of an
enterprise, a subordinate receives instructions from his superior
only.
• Delegate Function - Human behaviour is unpredictable by nature
and conditioning the people’s behaviour towards the goals of the
enterprise is what the executive does in this function. Therefore, it
is termed as having delicacy in it to tackle human behaviour.
 Directing
Importance of Directing function are:
• It Initiates Actions - Directions is the function which is the starting point of
the work performance of subordinates.
• It Ingrates Efforts - Through direction, the superiors are able to guide,
inspire and instruct the subordinates to work. For this, efforts of every
individual towards accomplishment of goals are required. It is through
direction the efforts of every department can be related and integrated with
others.
 Directing
Importance of Directing function are:
• Means of Motivation - Direction function helps in achievement of goals.
A manager makes use of the element of motivation here to improve the
performances of subordinates. Motivation is also helpful for the
subordinates to give the best of their abilities which ultimately helps in
growth.
• It Provides Stability - Stability and balance in concern becomes very
important for long term sun survival in the market. This can be brought
upon by the managers with the help of four tools or elements of
direction function - judicious blend of persuasive leadership, effective
communication, strict supervision and efficient motivation. Stability is
very important since that is an index of growth of an enterprise.
Therefore a manager can use of all the four traits in him so that
performance standards can be maintained.
 Directing
Importance of Directing function are:
• Coping up with the changes - It is a human behaviour that human beings
show resistance to change. Adaptability with changing environment helps
in sustaining planned growth and becoming a market leader. It is directing
function which is of use to meet with changes in environment, both
internal as external.
• Efficient Utilization of Resources - Direction finance helps in clarifying the
role of every subordinate towards his work. The resources can be utilized
properly only when less of wastages, duplication of efforts, overlapping of
performances, etc. doesn’t take place.
Leadership Vs Management

Leadership
The ability to influence a group toward the achievement of goals

Management
Use of authority inherent in designated formal rank to obtain
compliance from organizational members
Management Vs Leadership
 Dimensions of leadership
1. Pioneering
2. Energizing
3. Affirming
4. Inclusive
5. Humble
6. Deliberate
7. Resolute
8. Commanding
 Pioneering
1. Goals: Quick action, new opportunities, exciting breakthroughs,
Adventurous, Dynamic & Charismatic, punctual, Optimistic &
Persuasive style
2. Influences others through: Charm, bold action, passion, Good at
Making Connections, Help others to reach their goals
3. Judges others by: Confidence, influence, ability to think creatively.
4. Fears: Loss of power, stifling environments, loss of attention
 Energizing

1. Goals: Popularity, approval, excitement

2. Influences others through: Charm, optimism, energy, personal

connection

3. Judges others by: Openness, social skills, enthusiasm

4. Fears: Rejection, not being heard, not being liked

 Affirming

1. Goals: Friendship, acceptance, close relationships

2. Influences others through: Agreeableness, empathy, being patient

3. Judges others by: Ability to see good in others, warmth,

approachability

4. Fears: Pressuring others, being disliked, facing aggression

 Inclusive

1. Goals: Harmony, stability, acceptance

2. Influences others through: Accommodating others, consistent

performance

3. Judges others by: Dependability, sincerity

4. Fears: Letting people down, rapid change

 Humble

1. Goals: Stability, reliable outcomes, calm environment

2. Influences others through: Practicality, diplomacy, self-control,

humility

3. Judges others by: Precise standards, reliability, even temperament

4. Fears: Emotionally charged situations, ambiguity, time pressure,

chaos
 Deliberate
1. Goals: Accuracy, objective processes

2. Influences others through: Logic, exacting standards

3. Judges others by: Expertise, systematic processes

4. Fears: Being wrong, strong displays of emotion

 Resolute
1. Goals: Independence, personal accomplishment, efficient results

2. Influences others through: High standards, determination, strict

standards

3. Judges others by: Competence, common sense, use of logic

4. Fears: Failure to achieve their standards, lack of control

 commanding
1. Goals: Bottom-line results, victory

2. Influences others through: Assertiveness, insistence, competition

3. Judges others by: Ability to achieve results

4. Fears: Being taken advantage of, appearing weak

Transactional Leadership
• Transactional leaders identify what needs to be done to achieve goals,
including clarifying roles and tasks, rewarding performance, and
providing for social needs of followers.
• Based on the concept of exchange between leader and group
members
• Leader provides resources and rewards in exchange for motivation,
productivity, effective goal, or task accomplishments
• Two forms:
• Contingent Reward
• Positively reinforce appropriate behaviors
• Negatively reinforce inappropriate behaviors
• Highly ineffective and/or satisfying to all
The Downside of Transactional Leadership
• Low expectations
• Minimal accomplishments
• Low levels of satisfaction
• Focus is on short-term, immediate outcomes only
Transformational Leadership
• “The ability to get people to want to change and to lead
change.”
• Transformational leaders articulate a vision, inspire and
motivate followers, and create a climate favorable for
organizational change.
 3 Elements of Transformational Leadership
• Inspiration and Charisma:
• Create an emotional bond between leader and group
• builds and sustains an emotional bond that overcomes the psychological and
emotional resistance to change
• Intellectual Stimulation:
• Challenge the group to identify and solve challenges (out of the box)
• provides the new solutions and innovations that empowers members
• Individual Consideration:
• Develop appropriate personal relationships with members
• Treat members differently but equitably
• encourages members because they actually know the leaders
Transactional and Transformational
Leadership
• Transactional = Give something to get something

• Transformational = Go beyond self interests for the good of

the whole
Motivation, Controlling
 Motivation
• Motivation is the word derived from the word 'motive' which
means needs, desires, wants or drives within the individuals.
• It is the process of stimulating people to actions to accomplish the
goals.
• the psychological factors stimulating the people’s behaviour can be
desire for money, success, recognition, job-satisfaction, team work,
etc
• The process of motivation consists of three stages:-
• A felt need or drive
• A stimulus in which needs have to be aroused
• When needs are satisfied, the satisfaction or accomplishment of goals.
Importance of Motivation
• Puts human resources into action: It is through motivation that the
human resources can be utilized by making full use of it. This can be
done by building willingness in employees to work.
• Improves level of efficiency of employees: For getting best of his
work performance, the gap between ability and willingness has to be
filled which helps in improving the level of performance of
subordinates. This will result into-
• Increase in productivity,
• Reducing cost of operations, and
• Improving overall efficiency.
• Leads to achievement of organizational goals
• The goals of an enterprise can be achieved only when the following
The Basic Control Process
• Involves three steps
• Establishing Standards: standards are simply criteria for
evaluation
• Measuring Performance against these standards
• Correcting variations from standards and plans.
Types of Control
On the Basis of the Stage or Time of Implementation:

1) Feed-forward Control (future oriented/preventive)

2) Concurrent Control (during implementation)
3) Feedback Control (after the activity has occurred)
Requirements of Effective Control
• Suitable: The control system must be suitable for the kind of activity
intended to serve. Apart from differences in the systems of control in
different business, they also vary from department to department and
from one level in the organization to the other. For example, the sales
department and production department may use different tools of
control.
• Understandable: The system must be understandable, i.e., the control
information supplied should be capable of being understood by those
who use it. A control system that a manager cannot understand is
bound to remain ineffective.
Requirements of Effective Control
• Economical: The system must be economical in operation, i.e., the cost of a
control system should not exceed the possible savings from its use. The
extent of control necessary should be decided by the standard of accuracy
or quality required. A very high degree or standard of accuracy or quality
may not really be-necessary. Undue complexity of the control system
should be avoided to keep a check on the costs of control.
• Flexible: The system of control must be flexible, i.e. workable even if the
plans have to be changed. In case the control systems can work only on the
basis of one specific plan, it becomes useless if the plan breaks down and
another has to be substituted. However thoroughly the plans may have
been formed or the planning premises established, unforeseen
circumstances can upset the best-laid plans.
Requirements of Effective Control
• Expeditious: Nothing can be done to correct deviations, which have
already occurred. It is, therefore, important that the control system should
report deviations from plans expeditious. The objective of the control
system should be to correct deviations in the immediate future. This
requires that the lime-lag between the occurrence of a deviation and its
reporting be kept at the minimum possible.
• Forward Looking: The control system must be forward looking, as the
manager cannot control the past. In fact, the control system can at times
be so devised as to anticipate possible deviations, or problems. Cash
forecasts and cash control is an example in point where a financial
manager can forecast the future cash requirements and provide for them
in advance.
Requirements of Effective Control
• Organizational Conformity: Since people carry on activities, and events
must be controlled through people, it is necessary that the control data
and system must conform to the organizational pattern. For example,
where factory costs are accumulated in a manner other than on me basis
of areas of responsibility, they may lose much of their values as an
instrument of control. In this case, the actual costs in a department may be
out of line with the standards set without the department knowing
whether the deviation has been caused by something within its control. In
this sense, organization and control are difficult to separate, being
dependent on one another for effective management.
• Indicative of Exceptions at Critical Points: The management principle of
exception should be used to show up not only deviations but the critical
areas must also be fixed for most effective control.
 Requirements of Effective Control
• Objectivity: As far as possible, the measurements used must have objectivity.
While appraising a subordinate’s performance, the subjective element cannot
be entirely removed. Here the personality of both the manager as well as his
subordinate would be reflected in the final judgment.
• Suggestive of Corrective Action: adequate control system should not only
detect failures must also disclose where they are occurring, is responsible for
them and what should be done to correct them. Overall summary information
can cover up certain fault areas. For instance, it is insufficient to show merely a
decline in the profits. The reason for such declined or which also be indicated,
such drop in the sales volume or an increase in the costs. Even this is
insufficient. The information should also disclose in which market areas the
sales decline which specific costs had increased.
 Characteristics of Effective Controls Systems

• Establishing right standards: guide for measurement

• Realistic and Flexible
• Clarity of Responsibility for delivery
• Timeliness
• Ease of Understanding
• Forward Looking
• Based on Facts
Types of Control
On the Basis of Control Systems and Techniques

1) Budgetary control
2) Financial Control
3) Quality Control
4) Inventory control
5) Operational Control
 1. Budgetary control
• Budget is a written plan for an activity, stating anticipated results
and likely investments, either in financial or non-financial
numerical terms for a specific future period.

• It depicts how much an organization expects to spend and earn.

• Revenue and Expenditure

 2. Financial Control:
• Financial health is crucial to the survival and growth of business.

• Financial Statements reflect how much was spent, how it was

spent, and what it obtained.

• The most common financial statements are: balance sheets,

income statements and cash flow statements.
 3. Quality Control
• Quality control aims at efficiency and customer satisfaction by
maintaining and monitoring quality levels.

• The quality related standards help managers to prepare a

product as per the market expectations.
 4. Inventory control
• It focuses on attaining efficiency and operational productivity for material
management achieved.
• It is applied to raw materials, work in progress, finished goods and goods
in the entire delivery chain.

• Just-in-Time (JIT)
• Radio Frequency Identification and Detection (RFID)
 5. Operational Control
• Operational control aims at evaluating the performance of the
organisation as a whole.

• Products and services should be produced at the required time.

• The cost incurred should be least as per the budget.
• The desired level of quality should be obtained.
Time Element in Controls
• Preventive controls (takes place before performance of an activity,
such as parts specification)
• Concurrent controls (monitors activities while they are carried out,
such as surveillance)
• Feedback controls (evaluates an activity after it is performed, such as
financial statement)

153
 Preventive control
• The principle of preventive control states that , the higher the quality of
managers and their subordinates, the less will be the need for direct
controls.

• Assumptions in the Principle of Preventive Control :

1.Qualified Managers make a minimum errors

2.Managerial performance can be measured. Concepts, Principles and
techniques are useful diagnostic standards in measuring managerial
performance
3.The application of management fundamentals can be evaluated
 Advantages of Preventive Control
1.Greater accuracy is achieved in assigning personal responsibility
2.Preventive control hasten corrective action and make it more effective
3.Preventive control lightens managerial burden
4.Psychological advantage. Subordinate managers know what is
expected of them, understand the nature of managing, and feel a close
relationship between performance and measurement
Global controlling
• The workplace in present day is increasingly multi-cultural and diverse
• Many products and services are produced for export.
• Leaders must be adaptive and flexible
• Control empazis process, not numbers.
• Control in USA is widely used by MBO (Management by Objectives)
• In china control is exercised by group leaders.