ASSIGNMENT 2 ( MANAGEMENT CONCEPTS )

Explain in details the functions of Management ?

Management is a set of principles relating to the functions of planning,organizing,directing,

and controlling, and the applications of these principles in harnessing physical, financial,
human, and informational resources efficiently and effectively to achieve organizational goals.

There are basically five primary functions of management. These are:

1. Planning :- Planning is the continuous process of making present entrepreneurial decisions
systematically and with best possible knowledge of their futurity, organizing systematically the
efforts needed to carry out these decisions and measuring the results of these decisions against the
expectations through organized and systematic feedback
2. Organizing :-Organizing requires a formal structure of authority and the direction and flow of
such authority through which work subdivisions are defined, arranged and coordinated so that each
part relates to the other part in a united and coherent manner so as to attain the prescribed
objectives.
To organize a business is to provide it with everything useful or its functioning i.e. raw material,
tools, capital and personnel’s
3. Saffing :- Managerial function of staffing involves manning the oganization sructure through the
proper and effective selection, appraisal & development of personnel to fill the roles designed in the
structure.Staffing is the function of hiring and retaining a suitable work-force for the enterprise both
at managerial as well as non-managerial levels. It involves the process of recruiting, training,
developing, compensating and evaluating employees and maintaining this workforce with proper
incentives and motivations.
4. Directing :-The directing function is concerned with leadership, communication, motivation, and
supervision so that the employees perform their activities in the most efficient manner possible, in
order to achieve the desired goals.
The leadership element involves issuing of instructions and guiding the subordinates about
procedures and methods.
The communication must be open both ways so that the information can be passed on to the
subordinates and the feedback received from them.
Motivation is very important since highly motivated people show excellent performance with less
direction from superiors.
Supervising subordinates would lead to continuous progress reports as well as assure the superiors
that the directions are being properly carried out.
5. Controlling :- 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.
The function of control consists of those activities that are undertaken to ensure that the events do
not deviate from the pre-arranged plans. The activities consist of establishing standards for work
performance, measuring performance and comparing it to these set standards and taking corrective
actions as and when needed, to correct any deviations.
The controlling function involves:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Measuring actual performance with the pre-determined standard and finding out the deviations.
d. Taking corrective action.

Write a brief note on principles of planning ?

Planning is a major and primary function of management. No organisation can operate properly
without planning. Planning is the process by which the managers of an organisation set objectives,
make an overall assessment of the future, and chart the courses of action with a view to achieving
the organisational goals.

The planning process involves:

(i) The determination of appropriate goals and objectives,
(ii) The specification of the actions needed to reach the established objectives; and
(iii) The optimum period of time for achieving them.
The important principles of planning are as follows:

1. Principle of Commitment:
This means that certain resources must be committed or pledged for the purpose of planning.
Planning is not an easy task. So, necessary help is to be taken from experts. The enterprise must be
ready to exhaust the available resources for the achievement of a plan.

2. Principle of the Limiting Factor:

A plan involves varied factors of different importance. This principle implies that more emphasis
has to be put on that factor which is scarce or limited in supply or extremely costly. This will help in
selecting the most favourable alternative.

3. Principle of Reflective Thinking:

Planning, being an intellectual activity is based on rational considerations. These involve reflective
thinking which signifies problem-solving thought process—a process by which past experiences are
superimposed on the facts of the present situation and possible future trends. None can be a planner
whose mind is not active, who does not possess any deliberate power and whose sense of judgement
is not strong.

4. Principle of Flexibility:
Though a plan is prepared after reflective thinking, this does not mean that no departure can be
made in the course of its operation. The plan should be so prepared that there is sufficient scope for
changing it from time to time. Changes must necessarily be effected in the plan for taking into
account new developments that may take place in the course of the operation of the plan.

5. Principle of Contribution to Enterprise Objectives:

A major plan is prepared and it is supported by many derivative plans. But all plans must contribute
in a positive way towards the achievement of the enterprise objectives.

6. Principle of Efficiency:
A plan should be made efficient to attain the objectives of the enterprise at the minimum cost and
least effort. It must also achieve better results with the minimum of unexpected happenings.
Therefore, it is to be seen that what is expected is likely to be achieved.

7. Principle of Selection of Alternatives:

Planning is basically a problem of choosing. The essence of planning is the choice among
alternative courses of action. There is no need for planning if there is only one way for doing
something. In choosing from alternatives, the best alternative will be that which contributes most
efficiently and effectively to the accomplishment of a desired goal.

Explain the steps involved in organizational structure and design ?

Essential Steps for Designing an Organisational Structure are as follows :-

1. Clearly defined objectives, 2. Determining activities, 3. Assigning duties, 4. Delegating authority,
5. Co-ordinating activities, 6. Providing physical facilities and right environment, 7. Establishment
of structural relationship for overall control.

1. Clearly defined objectives:

The first step in developing an organisational structure is to lay down its objectives in very clear
terms. This will help in determining the type and basic characteristics of the organisation, Infact,
organisation activities are detailed in terms of objectives to be achieved.

2. Determining activities:
In order to achieve the objectives of the enterprise, certain activities are necessary. The activities
will depend upon the nature and size of the enterprise. For example, a manufacturing concern will
have production, marketing and other activities. There is no production activity in retail
establishment.
Each major activity is divided into smaller parts. For instance, production activity may be further
divided into purchasing of materials, plant layout, quality control, repairs and maintenance,
production research etc.

3. Assigning duties:
The individual groups of activities are then allotted to different individuals according to their ability
and aptitude. The responsibility of every individual should be defined clearly to avoid duplication
and overlapping of effort. Each person is given a specific job suited to him and he is made
responsible for its execution. Right man is put on the right job.

4. Delegating authority:
Every individual is given the authority necessary to perform the assigned activity effectively. By
authority we mean power to take decisions, issue instructions, guiding the subordinates, supervise
and control them.
Authority delegated to a person should commensurate with his responsibility. An individual cannot
perform his job without the necessary authority or power. Authority flows from top to bottom and
responsibility from bottom to top.

5. Co-ordinating activities:
The activities and efforts of different individuals are then synchronised. Such co-ordination is
necessary to ensure effective performance of specialised functions. Inter-relationship between
different jobs and individuals are clearly defined so that everybody knows from whom he has to
take orders and to whom he is answerable.

6. Providing physical facilities and right environment:

The success of an organisation depends upon the provision of proper physical facilities and right
environment. Whereas it is important to have right persons on right jobs, it is equally important to
have right working environment. This is necessary for the smooth running and the prosperity of the
enterprise.

7. Establishment of structural relationship for overall control.

It is very essential to establish well defined clear-cut structural relationships among individuals and
groups. This will ensure overall control over the working of all departments and their co-ordinated
direction towards the achievement of pre-determined goals of business.

Briefly explain importance of staffing

Managerial function of staffing involves selection of employees in the oganization sructure through
the proper and effective selection, appraisal & development of personnel to fill the roles designed in
the structure.Staffing is the function of hiring and retaining a suitable work-force for the enterprise
both at managerial as well as non-managerial levels. It involves the process of recruiting, training,
developing, compensating and evaluating employees and maintaining this workforce with proper
incentives and motivations. Staffing is one of the essential functions of management that is
concerned with acquiring, hiring, developing, motivating and retaining the best talent for achieving
the goals of the organisation.
In staffing, the right person is recruited for the right jobs, therefore it leads to maximum
productivity and higher performance. It helps in promoting the optimum utilization of human
resource through various aspects. Job satisfaction and morale of the workers increases through the
recruitment of the right person.

Importance of Staffing

Efficient Performance of Other Functions

For the efficient performance of other functions of management, staffing is its key. Since, if an
organization does not have the competent personnel, then it cannot perform the functions of
management like planning, organizing and control functions properly.

Effective Use of Technology and Other Resources

What is staffing and technology’s connection? Well, it is the human factor that is instrumental in the
effective utilization of the latest technology, capital, material, etc. the management can ensure the
right kinds of personnel by performing the staffing function.

Optimum Utilization of Human Resources

The wage bill of big concerns is quite high. Also, a huge amount is spent on recruitment, selection,
training, and development of employees. To get the optimum output, the staffing function should
be performed in an efficient manner.

Development of Human Capital

Another function of staffing is concerned with human capital requirements. Since the management
is required to determine in advance the manpower requirements. Therefore, it has also to train and
develop the existing personnel for career advancement. This will meet the requirements of the
company in the future.

The Motivation of Human Resources

In an organization, the behaviour of individuals is influenced by various factors which are involved
such as education level, needs, socio-cultural factors, etc. Therefore, the human aspects of the
organization have become very important and so that the workers can also be motivated by financial
and non-financial incentives in order to perform their functions properly in achieving the objectives.

Building Higher Morale

The right type of climate should be created for the workers to contribute to the achievement of the
organizational objectives. Therefore, by performing the staffing function effectively and efficiently,
the management is able to describe the significance and importance which it attaches to the
personnel working in the enterprise.

What are the various devices of control ?

Types of Control Techniques in Management are as follows :-

1.) Budgetary Control.

2.) Standard Costing.
3.) Financial Ratio Analysis.
4.) Internal Audit.
5.) Break-Even Analysis.
6.) Statistical Control.
Budgetary Control
Budgeting simply means showcasing plans and expected results using numerical information. As a
corollary to this, budgetary control means controlling regular operations of an organization for
executing budgets.
The main aim of budgetary control is to regulate the activity of an organization using budgeting.
This process firstly requires managers to determine what objectives they wish to achieve from a
particular activity. After that, they have to lay down the exact course of action that they will follow
for weeks and months.

Standard Costing
Standard costing is similar to budgeting in the way that it relies on numerical figures. The difference
between the two, however, is that standard costing relies on standard and regular/recurring costs.
Under this technique, managers record their costs and expenses for every activity and compare them
with standard costs. This controlling technique basically helps in realizing which activity is
profitable and which one is not.

Financial Ratio Analysis

Every business organization has to depict its financial performances using reports like balance
sheets and profit & loss statements. Financial ratio analysis basically compares these financial
reports to show the financial performance of a business in numerical terms.
Comparative studies of financial statements showcase standards like changes in assets, liabilities,
capital, profits, etc. Financial ratio analysis also helps in understanding the liquidity and solvency
status of a business.

Internal Audit
Another popular traditional type of control technique is internal auditing. This process requires
internal auditors to appraise themselves of the operations of an organization.
Generally, the scope of an internal audit is narrow and it relates to financial and accounting
activities. In modern times, however, managers use it to regulate several other tasks.

Break-Even Analysis
Break-even analysis shows the point at which a business neither earns profits nor incurs losses. This
can be in the form of sale output, production volume, the price of products, etc.
Managers often use break-even analysis to determine the minimum level of results they must
achieve for an activity. Any number that goes below the break-even point triggers corrective
measures for control.

Statistical Control
The use of statistical tools is a great way to understand an organization’s tasks effectively and
efficiently. They help in showing averages, percentages, and ratios using comprehensible graphs
and charts.
Managers often use pie charts and graphs to depict their sales, production, profits, productivity, etc.
Such tools have always been popular traditional control techniques.