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Introduction of Management: Gobind Kumar Jha
Introduction of Management: Gobind Kumar Jha
Introduction of Management: Gobind Kumar Jha
Introduction of Management
Meaning and Definition of Management:-
According to Henry Fayol, “to manage is to forecast and to plan, to organise, to command, to co-ordinate and to
control.”
According to Harold Koontz, “Management is the art of getting thing done through and with the people in formally
organised groups.”
According to Mary Parker Follett, “Management is the art of getting things done through others.”
1. Process:-
2. Function:-
3. Purpose:-
4. Group effort:-
5. Universality:-
6. Continuity:-
7. Mixture of Art and Science:-
8. Profession:-
9. Resource:-
10. Multi-disciplinary:-
11. Principles:-
12. Scope:-
Importance of Management:-
Functions of management:-
Management is an activity- process. According to Henri Fayol, management functions include forecasting and
planning, organising commanding, co-ordinating and controlling. According to Luther Gullick, management is a
process of cyclical process of PODSCORB functions, i.e., the functions of management consist of Planning,
Organising, Directing, Staffing, Co-ordinating, reporting and Budgeting.
Is management a profession?
(i) It has a body of knowledge which is transferable, identifiable and which can be mastered and practised ;
(ii) It follows a specific approach ;
(iii) It involves specific skill and tools ;
(iv) It adheres to a code of ethics ; and
(v) It is a required discipline.
Levels of Management:-
Board of Directors
Socio-economic goals
and objectives Managing Director/CEO
A. Classical Approach: - the classical management theorists developed some principles, strategies, processes
and ideals of management. Their approach to management is called classical approach. Classical approach
includes—
1. Productivity Approach: - Frederick Winslow Taylor, Frank Gilbreth, H.L. Gantt and other contemporary
management experts have coined the term ‘productivity approach’. The main object of this approach is
to bring about a revolutionary change in the field of production by adopting scientific principles. It calls
for time study, motion study, fatigue study, work study and method study for increasing productivity.
But productivity approach applies to factory management only. It is not the total approach to
management. It neglects the human aspect of management.
2. Management process approach: - It is universal approach to management and is known as Traditional
Approach. Henri Fayol is the father of this approach. Mooney, Railey, Urwick, Harold Koontz and
O’Donnell, Newman, Luther Gullick, George Terry, Brech, McFarland etc. are the advocates of this
approach. This approach defines management as a process. Management discharge its functions
through the process of planning, organising, staffing, directing, co-ordinating and controlling. But
management process should not be regarded as universal because the functions of an organisation are
dynamic in nature.
B. Neo-Classical School: -
1. Human Relations Approach: - According to this approach, management has to inquire into the inter-
personal relations of the persons at work.
2. Empirical Approach: - This approach stresses management customs. It takes into account the experience
of past managers and ‘case study’ Ernest Dale, Harvard Business School, American Management
Association etc. nourish this approach. But the application of the results of ‘case study’ on changing
situations may not be effective.
3. Behavioural Approach:- Abraham Maslow, Douglus McGregor, Kurt Lewin, Chester I. Barnard, Mary
Parker Follet, Rensis Likrt, chris Argysis, Warren Benis etc. are the advocates of this approach. Prof.
Elton Mayo is the father of the Behavioural Approach. This approach considers that a manager gets
things done through and with the help of people. Therefore, management should pay attention to
workers and their inter-personal relations. Managers should concentrate on the study of individual
motives, informal groups, group dynamics and motivation. It calls for the analysis of human organisation
and human relations. Management acts as a team. It is based on co-operation and co-ordination.
Therefore, management has to follow the continuity of format and informal relations. This approach also
gives stress on employee welfare. But the behavioural approach does not provide a complete
explanation of management.
C. Modern Approach: -
1. System Approach:-
2. Decision Approach:-
3. Mathematical or Quantitative Approach:-
4. Contingency Approach:-
5. Economic Analysis and Accounting Approach:-
Why is Taylor called the father of Scientific Management?
1. Selection of workman:-
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2. Placement of Workman:-
3. Training of workers:-
4. Work study :-
5. Method study:-
6. Time study:-
7. Motion study:-
8. Fatigue study:-
9. Rate- setting :-
10. Introduction of functional control instead of line control:-
11. Appointment of eight functional bosses:-
(i) Gang boss:-
(ii) Speed boss:-
(iii) Repair boss:-
(iv) Inspector:-
(v) Shop disciplinarian:-
(vi) Route clerk:-
(vii) Instruction card man:-
(viii) Time and cost Clerk:-
12. Co-operation and friendship between labour and management:-
13. Mental revolution:-
14. Machinery:-
15. Materials:-
16. Factory location and environments:-
17. Central planning and scientific allocation of jobs:-
18. Prevention of wastage:-
1. Increase in efficiency:-
2. Increase in output:-
3. Increase in wages:-
4. Increase in standard of living:-
5. Greater incentive:-
6. Increase in labour productivity:-
Henri Fayol was born in France in1841. He became a graduate in mining Engineering in 1860. After becoming a
mining engineer, Fayol immediately joined in a coal mining company in France in 1860. He was promoted to the rank
of Managing Director of the company in 1888 for his versatile genius. When he became the chief executive of
Midvale Steel Company, the company was on the verge of collapse. He served there as the chief executive for a long
period of 30 years and provided a dynamic leadership. When he retired in 1918, the company became one of the
biggest iron and coal combines of Europe.
General principle of Management: - Henri Fayol evolved 14 principles of management and discussed them in his
book titled as “Administration industrielle at Generate” written in French language and published in in 1916, the
English version of which was made by Lindel Urwick in 1949 and which was published in the U.S.A. under the
caption “The General and Industrial Management,” Fayol observed that the principles of management are flexible
and not absolute and are usable regardless of changing and specie conditions.
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Fayolian principles of managements are:-
1. Division of Work:-
2. Authority and Responsibility:-
3. Discipline:-
4. Unity of Command:-
5. Unity of Direction:-
6. Subordinate of individual interest to general interest:-
7. Remuneration of personnel:-
8. Centralisation:-
9. Scalar chain:-
10. Order:-
11. Equity:-
12. Stability of tenure of personnel:-
13. Initiative:-
14. Esprit de Corps:-
Prof. Elton Mayo of Harvard School of Business Administration, U.S.A. contributed to the development of human
relationships approach to management. Human relations approach is a socio-psychological approach to
management. It is a neo-classical approach to management. Apart from Prof. Elton Mayo other contributors to the
development of human relations approach or school were Prof. Roethilisberger of Harvard School, Prof. Mary
Parker Follet, an industrial psychologist of Harvard University, T.N. Whitehead, W.J. Dickson, Doughlas McGregor,
Rensis Likert, Abraham Maslow, Cris Argysis, Frederick Herberg and Prof. Keith Davis. According to Prof. Keith
Davis of Indiana University of U.S.A. “human relations as an era of management practices is the integration of
people into a work situation in a way that motivates them to work together productively, co-operatively and with
economic, psychological and social satisfaction.
Prof. Elton Mayo suggests that a business enterprise is a social-psychological processor in which group norms
exercise a significant influence on the individuals’ behaviour and performance. Economic reward alone cannot
motivate the workers—workers require social satisfaction at the work place. Thus management should create a
congenial climate in the organisation so that workers can feel happy. Workers or employees can be kept happy and
satisfied through the following:
Feature / Characteristics: - Human relations approach is based the following ideas or features:
1. The individuals:-
2. The work group:-
3. The leader:-
4. The work environment:-
Essentials: The essentials of human relations approach as advocate by Prof. Elton Mayo are:-
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(i) Management is a social integrative process.
(ii) Management must secure voluntary co-operation from employees/ workers.
(iii) Economic, social and psychological needs of employees/workers are to be satisfied by management.
(iv) The basic organisational problem is employee development and not technical development.
(v) Management must understand individual and group behaviour of employees.
Hawthorne Experiments:-
1. Illumination Experiments:- it attempts to ascertain the relationship between quality and quantity of
illumination and efficiency or workers. The research was started on the hypothesis of scientific management
assuming that there was a co-relation between intensity of illumination and the workers’ output.
2. Relay Assembly Test Room Experiments:- it was started in 1927 to ascertain the relationship between
working conditions and productivity. Working condition included incentive scheme, provision for rest and
additional physical facilities.
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Planning
‘Trap the future’ is planning. Objectivising is essential in planning. Planning determines—
1. Primary of planning:-
2. Contributions of planning to objectives/goals:-
3. Pervasiveness of planning:-
4. Intellectuality:-
5. Decision-making:-
6. Dynamism:-
7. Efficiency of plans:-
8. Futurity:-
9. Forecasting:-
10. Flexibility:-
1. Inaccuracy:-
2. Time-consuming:-
3. Costly:-
4. Rigidity or inflexibility:-
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5. Attitudes:-
6. Faulty design:-
7. Constraints:-
8. Lack of orientation:-
9. Uncertainty:-
10. Lack of co-ordination:-
11. Impracticality:-
12. Lack of strategy:-
13. Lack in co-operation:-
14. Non-applicability:-
Planning premises:-
Definition: - The dictionary meaning of premises is ‘outset’ or framework. Planning premises are the basic
assumptions, on the basis of which the plan is made.
1. Internal premises:-
2. External premises:-
3. Controllable premises:-
4. Semi- controllable premises:-
5. Uncontrollable premises:-
6. Tangible premises:-
7. Intangible premises:-
8. Strategic premises:-
9. Level premises:-
10. Fixed and variable premises:
Types of Plan/Planning:-
Mission
Objectives
Koontz and
Weighrich’s Strategies
Hierarchical model of
corporate plan
Policies
Programmes
Budgets
Barriers to planning:-
Forecasting
Planning consciously and intelligently determines the future course of action and looks ahead. So planning cannot be
prepared without assuming the future possible events and situations. Forecasting is the base of planning.
Forecasting refers to scientific prediction or future assumptions regarding internal and external environment, future
variable situations, resource and ways or methods of acquiring means or resources. In business activities,
uncertainties always exist and planning depends on future happenings. As planning is future-oriented, it calls for
accurate forecasting or scientific assumptions.
Forecasting is concerned with systematic assumption of probable events. It involves looking ahead with a view to
predetermining the events and their financial impact on business. Forecasting is the formal process of predicting
future events on the basis of which the planning edifice is built up.
Definition of forecasting:-
Forecasting may be defined as a formal systematic or scientific process of determining future course of actions
through the analysis and interpretation of past and current events or information.
Techniques of forecasting:-
A. Qualitative techniques:-
B. Quantitative techniques:-
1. Deterministic technique:-
2. Analogicator historical technique:-
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3. Hunches and intuition technique:-
4. Opinion poll technique:-
5. Delphi technique:-
6. Survey technique:-
7. Brain storming technique:-
8. Scenario construction technique:-
B. Quantitative techniques of forecasting:-
1. Symptomatic technique:-
2. Time-series analysis technique:-
3. Extrapolation technique:-
4. Correlation and regression analysis technique:-
5. Input-Output analysis technique:-
6. Econometric model technique:-
1. Deterministic Technique
A. Qualitative techniques
5. Delphi technique
6. Survey Technique
FORECASTING
TECHNIQUES
1. Symptomatic Technique
B. Quantitative Techniques
3. Extrapolation Technique
Organisation:-
Concept of organisation/organising:-
After a plan is framed, men and materials are needed to work it. This requires organisation.
Organisation is the task of coordinating the efforts of men or employees. According to Henry Fayol, organisation
brings about a harmonious working relationship among materials, capital, machines and labour. It co-ordinates the
efforts of the employees with that of the activities of various departments and sections of an enterprises.
Nature of organisation:-
1. Social system:-
2. Human system:-
3. Process:-
4. Structure and base:-
5. Division of work and co-ordination:-
6. Establishment of authority and responsibility:-
7. Different aspect:-
1. Objectives:-
2. Human process:-
3. Departmentation:-
4. Divisionalisation:-
5. Definiteness of responsibility:-
6. Dynamic process:-
7. Collaborative relation:-
8. System:-
9. Principles and methods or system:-
10. Tangible resources:-
11. Authority:-
12. Channels of communication:-
Principles of Organisation:-
1. Principle of objective:-
2. Specialisation or division of work:-
3. Authority, responsibility and accountability:-
4. Span of control / management / supervision:-
5. Scalar principle:-
6. Unity of command:-
7. Functional classification:-
8. Structural unity:-
9. Balance:-
10. Flexibility and effectiveness:-
11. Simplicity:-
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Organisation structure—Forms
1. Line organisation:-
2. Staff organisation:-
3. Line and staff organisation:-
4. Functional organisation:-
5. Committee organisation:-
6. Project organisation:-
7. Matrix or grid organisation:-
8. Vertical organisation:-
9. Horizontal organisation:-
10. Circular organisation:-
11. Tree organisation:-
12. Formal organisation:-
13. Informal organisation:-
1. Line organisation:-
Board of Directors
Department Manager
Assistant Manager
Supervisor / Foreman
Assistants / Workers
(i) Depending upon the scale and managers’ decision-making ability, there may be many levels of
management.
(ii) There is vertical flow of authority. Authority moves downward from top to down.
(iii) There is unity of command. A subordinate should receive order from his immediate boss only.
(iv) Each subordinate is accountable to his immediate boss from whom he has obtained authority and none
else.
(v) Orders and instructions flow from the top through communication channel and complaints and
suggestions move from the lower level to the top step by step. There is scalar chain in this type of
structure.
(vi) Each departmental manager can control over the subordinates of his department.
(vii) There is span of control or supervision.
(viii) There is definite superior-subordinate relationship.
(ix) It is a medium of two-way communication.
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(x) This form of structure is most suitable and prevalent in bureaucratic model of management, such as
government administration.
2. Staff Organisation:-
Definition: - The organisation in which advisory experts render expertise advices to each
department in an organisation is called staff organisation. In this form of organisation structure
specialists play supportive or advisory role and act as consultants. They have no commanding
authority. There are two types of staff, viz. (i) specialist staff, and (ii) personal staff. Specialist staff
renders advices to all levels of line managers but personal staff renders personal services to upper
level managers only. Staff managers bear no liability or responsibility. Staff managers’ advices may
or may not be accepted by line managers. Research and development manager, purchase manager,
personnel manager, etc., are staff managers. Line managers have no compulsion to comply with the
advices rendered by staff managers.
Delegation of authority is the dynamic process of conferring or transferring authority to subordinate. Authority is
enjoyed only by managers and so authority to subordinate. Authority is enjoyed only by managers and so authority
can be delegated by a superior manager to a subordinate manager.
Assignment or
entrustment of duty
PROCESS OR ELEMENTS
Accountability Delegation of authority
OR COMPONENTS OF
DELEGATION
Centralisation:-
Definition: - Centralisation implies the Concentration of Authority at the top level of the Organisation.
According to Allen, “Centralisation is systematic and consistent reservation of authority at central points within an
organisation.
Advantage of centralisation:-
Decentralisation:-
Span of Management:-
Span of management refers to the number of subordinates who can be efficiently and effectively supervised, co-
ordinated and controlled by a manager.
1. Superior’s ability:-
2. Subordinates’ capability:-
3. Organisation structure:-
4. Communication techniques:-
5. Control techniques:-
6. Nature of work:-
7. Degree of decentralisation:-.
8. Soundness of plan:-
9. Time spent for supervision:-
10. Staff assistance:-
11. Other factors:-
(i) Physical limitation of activities,
(ii) Nature of the organisation,
(iii) Clarity of delegation of authority,
(iv) Rate of changes of work and objective standards,
(v) Personal contact,
(vi) Importance of the work,
(vii) Supervision from other, etc
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Leadership:-
Meaning and Definition of Leadership:-
Leadership is an activity and a dynamic process of influencing others to direct their will, abilities and efforts to
achieve the leader’s goal. It is the quality of the behaviour of manger who guides his subordinates and their activities
in organised effort. In fact, leadership means the capacity of an individual to influence the thought and actions of
others in right direction. The essence of leadership is followership. Leadership process consists of—
1. Personal quality:-
2. Existence of followers and group:-
3. Influence:-
4. Common goal:-
5. Process:-
6. Situational:-
7. Impartial behaviour:-
8. Responsibility:-
9. Code of conduct:-
10. Fellow feelings:-
11. Composition:-
12. Charisma:-
Importance of Leadership:-
1. Motive power:-
2. Social skill:-
3. High work performance:-
4. Enthusiasm:-
5. Confidence and co-operation :-
6. Integration:-
7. Advancement of business:-
8. Administrative development:-
9. Decision-making:-
10. Lifeline:-
11. Motivation:-
12. Creativity:-
13. Increase in social efficiency:-
14. Increase in morale:-
15. Aid to authority:-
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Qualities or Traits of leader and leadership:-
Leadership style may be defined as the manner or style or pattern of influence and authority that a manager adapts
to influence upon the behaviour of his subordinates or followers and to motivate them to achieve the desire goal.
: - L= f(S)
Where f = function.
1. Free-rein or Laissez-faire Leadership style: - In this case, the leader completely depends upon his
subordinates who make plans and take decisions and there is no rein of leadership. The leader plays the role
of advisor and he is like a referee in a football match. He does not direct his subordinates and does not
interfere in their work.
The main advantages of this style are:
(i) Motive for work increase.
(ii) There is freedom in work.
(iii) There is better relation between the leader and subordinates.
(iv) Subordinates’ morale is improved which leads to improved work performance.
2. Bureaucratic Leadership Style: - This style is prevalent in government and semi-government institutions. It is
impersonal and rule-ridden. Leaders are selected and promoted under specific norms and method. Leaders
work mechanically under red-tapism. The leader directs his subordinates as per specific methods and it is
formal and structured. It lays emphasis more on work than on performance.
(i) It is advantageous in government administration.
(ii) It is a formal rule-ridden management.
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(iii) There is uniformity in decision-making and work rules.
3. Autocratic / Dictatorial Leadership Style: - In this style, the leader takes decisions and impasses them on
subordinates to implement. The entire decision-making authority is centralised in the hands of the leader.
There is bossing and subordinates have no say. When the leader gets things done by subordinates have no
say. When the leader gets things done by subordinates by arousing fear in the minds of subordinates by
awarding punishment or frightening or by sacking the subordinates, autocratic style becomes dictatorial
style. Hitler was a dictatorial leader.
4. Paternalistic Leadership style: - In this style, leaders are like the fathers in families. Subordinates treat
leaders like father or guardians. Leaders take decisions without consulting subordinates but he cares for the
opinions of subordinates. The leader treats his followers as a ‘work team’ and takes care of them by
providing security and need satisfaction. He says, “if you do the work well, I shall take care of you.” He
directs his subordinates, inspires and motivates them and closely supervises their work.
5. Democratic or Participative or Consultative Leadership style:- In this style authority is decentralised and
subordinates are allowed to take part in decision-making process. The leader makes decision by consulting
with his subordinates. He cares for the suggestions made by his subordinates while taking decisions. There is
two-way communication. Subordinates are allowed to express their difficulties or problems. It is a
consultative and participative style of leadership.
In July 1966, Robert Blake and Jane Mouton published a much developed leadership style titled “Managerial Grid
Leadership Theory” in Advanced Management Journal.
In managerial grid, Blake and Mouton have concluded that organisation has two elements, viz.,
In managerial grid, concern for production is shown on the horizontal axis and concern for people is shown on the
vertical axis. When a leader’s rate for development is ‘1’, concern for production is the lowest and when it is ‘9’,
concern for production is the highest. When a leader’s rate for people is ‘1’, concern for people is the lowest and
when ‘9’ concern for people is the highest.
In managerial grid theory, Blake and Mouton have expressed five different styles of leadership which are shown
below:
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The Five categories of leadership styles as depicted in the managerial grid are discussed below: -
1. Impoverished (1, 1) : -In this style, a manager / leader shows less concern for people and less concern for
people and less concern for production. He exerts minimum or least effort to get things done and to keep up
the morale. He avoids controversy and confrontation and acts as an observer.
2. Country club (1, 9) : - In this style, the manager / leader is highly concerned with the people / employees or
worker. He makes conducive work environment, becomes friendly, develops close personal relationship and
satisfies needs of employees to increase the rate of performance.
3. Task (9, 1) : - In this style, the manager / leader is highly concerned with production. He tries to increase
production by increasing operational efficiency and exercising his authority position. He leads his team by
issuing orders and instructions and plays the role of a task master. In this style, the leader is least concerned
with human factor.
4. Middle of the road (5, 5): - In this style, the manager is equally concerned with production and people or
human factor. He balances production with morale. He tries to maintain satisfactory production level as well
as satisfactory morale level of employees. In this style, the leader seeks compromise.
5. Team (9, 9): - In this leadership style, the manager / leader gives maximum possible attention to both
production and people. He acts as the team leader. He consults with the team and drives the team members
to attain goals. He improves relationship with the employees on one hand and tries to maximise production
through team efforts on the other.
Team management or 9, 9 leadership styles is considered the best style because it gives maximum possible
attention to increase production and highest concern for people. Blake and Mouton’s managerial grid
leadership style has many similarities with Ohio-state University’s production- people style.
Introduction: Autocratic leadership style and Free-rein leadership style are the two extreme styles of leadership.
Under autocratic style, authority is fully centralised in the hands of the leader and under free-rein style, the leader is
completely dependent on the workers and rein is loose.
Continuum leadership style: Robert Tannenbaum and W. Schmidt opine that there are varied kinds of behaviour in
autocratic and free-rein leadership styles and they have depicted the various behaviour methods in a continuum
model showing autocratic leadership area at the left hand side and free- rein leadership at the right hand side of the
continuum model. Continuum leadership style highlights the range of possible leadership styles. The left end of the
continuum is ‘boss-centred’, i.e., autocratic style and the right of the continuum is ‘subordinate-centred’, i.e.,
free-rein style. When one moves from the left extreme to the right extreme, the degree of control reduces an the
freedom of subordinates increases.
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Old version of the continuum model :
The old version of the continuum leadership model is depicted below:
Autocratic Free-Rein
Area of freedom
for subordinates
❶ ❷ ❸ ❹ ❺ ❻ ❼
(1) Manager makes decision and announces it: It is the extreme form of autocratic leadership style. In this case,
the boss alone takes the decision and asks subordinates to implement the decision.
(2) Manager dells the decision: Under this style, the boss sells or lends the decision taken by him and persuades
the subordinates to accept it.
(3) Managers’ present ideas and invites questions: Under this style, the manager or the boss presents his plans
and proposals and invites suggestions from subordinates and thereafter arrives at the decisions.
(4) Managers present tentative decision subject to change: Under this style, the boss takes a tentative decision
and modifies it in the light of views on it expressed by subordinates.
(5) Manager presents problem, get suggestions and takes decision: Under this style, the boss takes decision
considering the suggestions given by subordinates.
(6) Manager defines the limits and asks the group to make decisions: Under this style, the boss allows freedom
to subordinates to make decisions within the prescribed limits.
(7) Manager permits subordinates to function within the prescribed limits of areas: Under this style, the
subordinates are free to decide and act within the prescribed limits or areas. This type involves full
participation of subordinates.
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Directing
Definition:-
Directing refers to a process or technique of instruction, guiding, inspiring, counselling, overseeing and leading
people towards the accomplishment of organizational goals. It is a continuous managerial process that goes on
throughout the life of the organisation.
1. Initiates action:-
2. Pervasive function:-
3. Continuous activity:-
4. Descending order of Hierarchy:-
5. Human factor:-
Importance of Directing:-
1. Initiates action:-
2. Ingrates efforts:-
3. Motivates employees:-
4. Provides stability:-
5. Coping up with the changes:-
6. Effective utilization of Resources:-
Elements of directing:-
1. Motivation:-
2. Communication:-
3. Supervision:-
Principle of Directing:-
Statements:-
1. “Directing is that function with the help of which the mangers influence their sub-ordinate staff” — this
statement is made by J.L.Massie.
2. “Directing concerns the total manner in- which a manager influence the action of his subordinate”. — Theo
Haimann.
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Staffing
Staffing is one of the function of management which is concerned with filling positions in the organisation or hiering
eligible candidate in the right post for the right job.
Features of Staffing:-
Parts of staffing:-
1. Recruitment:-
2. Selection:-
3. Training:-
1. Recruitment:-It is the process of drawing the attention of potential employees. It can be internal and
external, it is known as positive process.
2. Selection: - It is the process of choosing best out of best candidate and rejecting the rest it is known as
negative process.
3. Training: - it is the process of learning and growth. It is job oriented process and it can be:
a. On the job.
b. Off the job
4. Development:- It is the process over all growth it is carrier oriented.
Statements:-
1. “without human factor all other factors of production are useless”— Drucker
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Control:-
Concept of Control:-
Control is one of the principle functions of management. Simply, control means monitoring, reviewing, checking,
overseeing, regulating, verifying, comparing with standard and exercising power of directing and commanding.
Control refers to the task of ensuring that activities conform to predetermined target or standards. Control is a
process of checking or verifying the actual performance in the context and light of targets and standards set. Control
process involves certain stages.
The object of control is optimal utilisation of available scarce resource and monitoring the objective-behaviour of
employees.
Planning and controlling are closely related to each other. While plan looks ahead, control look behind. In fact,
control is an effective counter-part to planning.
Control involves quantitative and qualitative aspects of management. Control does not mean chasing an employee
but it does mean following him up. A successful manager never chases an employee but follows him up and puts him
on the track whenever derailed by taking corrective action.
Control may be preventive or feed-forward, current or real-time, post-mortem or feed-back or post control.
The task of control is to verify whether there has been any deviation in actual performance from the predetermined
standards and, if so, to take remedial action so that such variances do not recur in future.
Control refers to the task of verifying or checking and ensuring that activities are performed in accordance with the
performance standards set.
Thus control is a process to measure whether the accomplished work conforms to predetermined standards and if
deviations occur, to take corrective or remedial action.
1. Established of standards:-
(i) Physical standards, such as quantity of product, number of customers, quality of products and so
on.
(ii) Monetary standard, such as material cost, sales revenue, selling costs, gross profit, net profit,
investment, income, etc.
(iii) Time standards, such as labour hours, machine hours, completion time.
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2. Measurement of actual performance: - The next stage or step involved in control process is to measure the
actual performance, i.e., “actual”. Actual are measured against the standards set beforehand. “How to
measure actual performance” is indeed a difficult task.
Establishment of standards
1
Measurement of actual
2
performance
Taking corrective or
remedial action 4
Types of Control:-
1. Physical control:-
2. Activity control:-
3. Financial control:-
4. Quality control:-
5. Departmental control:-
6. Preventive control / Pre-control / Feed- forward control:-
1. Budgetary control:-
2. Break-even Analysis:-
3. Ratio Analysis:-
4. Profit and Loss Control:-
5. Funds Flows Statement:-
6. Cash Flow Statement:-
7. Return On Investment (ROI) :-
8. Internal Audit:-
9. Standard Costing:-
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10. Cost Control:-
11. Management Audit:-
12. Management Information System (MIS) :-
13. Direct Supervision and Observation:-
CO-ORDINATION
Concept of co-ordination
According to Koontz and O’Donnell, “Co-ordination is the Essence of Management.” It is the heart of management
because it brings unity of action and sense of oneness. It synchronizes the group efforts. It is an indispensable
function of management. Co-ordination removes disorders and ensures smooth functioning of an enterprise
economically and without chaos and confusion.
Definition of Co-ordination
1. Essence of management:
2. Facility of specialisation:
3. Establishment of unity in diversity:
4. Balancing among unequals:
5. Resolution of conflicts:
6. Establishment of interdepartmental harmony:
7. Unity in direction:
8. High morale:
9. Increase in production:
10. Total accomplishment:
11. Simplification of other managerial functions:
12. Establishment of integration among departmental activities:
13. Co-operation:
14. Differentiation and integration:
15. Creation of conducive work environment:
Principle of co-operation
Mary Parker Follett, who is regarded as the pioneer of behavioural approach to management, has mentioned
four principles of Co-ordination and Brown has emphasised on another principle of co-ordination known as
Principle of Self Co-ordination.
1. Early start: The process of co-ordination must begin in the early stages of planning and policy-making. As
soon as the plan starts, the task of co-ordination should be started. It helps in improving the quality of plans
and making the employees interdependent upon each other. So co-operation process should start with the
primary function, i.e., planning at the primary stage of work.
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2. Direct contact: There must be direct personal contact among the departmental managers. Direct personal
touch enhances inter-personal relationship, creates mutual understanding and confidence, clears out
misunderstanding, secures mutual co-operation, removes constraints and disrupting forces and makes the
task of co-ordination objective-oriented. Through direct contact, employees get the opportunity for mutual
exchange of opinions. It reduces the chance of conflicts and red-tapism. Direct contact makes the flow of
work smooth and department relationship, individual relation and group relationship are developed. Direct
contact is essential for mutual exchange of opinions and perceptions of employees.
3. Continuity: Co-ordination is not a stray process but a continuous and ever ending process. Managers must
endeavour to make efforts continuously to keep the process of co-ordination on-going. It should start with
planning and end with controlling. Co-ordination should cover the entire process of co-ordination. It should
move along with planning, organising, pooling of resources, staffing, directing, motivation and controlling. It
should be an all- pervasive and ever ending or non-stop process.
4. Reciprocal relationship/Reciprocity: Situational factors are inter-dependent and interrelated. Every
individual and group effort has impact upon other individual and groups in the organisation. So every
individual employees must consider the impact of his decision or action on others before taking any decision
or actions. Managers are to perform their task on the basis of mutual understanding and give and take
approach or attitude. Co-ordination is based on mutual inter-personal relationship. The better the relation
between manager and his subordinates, the more effective would be the task of co-ordination. Better
reciprocal relationship helps in synchronizing the departmental, sectional and group effort in a better way
and leads to smooth flow of work. It increases the efficiency of fellow-employees and through reciprocity
self-discipline is imposed.
Follett’s principles of
co-ordination
Dynamism
Common objective
Unity of command
Unity of direction
Pervasiveness
Integration of objectives
Scalar chain
Team spirit
Self- Co-ordination
Group task
Techniques of co-ordination:
Chapter – 5
Motivation
Motivation:
It is one of the element of management where by the superior or manager through various methods tries to
encourage the employees with the purpose of achieving desire goal.
Process of Motivation:
Process of motivation can be very simple. Since no employees carry self motivation for the organization a
manager needs to understand the needs of the employees and fulfill them accordingly.
Abraham Maslow identified the various needs through which an individual can be motivated as it is a
primary requirement for a manager or superior to understand the needs of individual. It had been used as
one of the tools to motivate the employees in various industrial sector. According to him, there are five
human needs:
Self
Actualization
Needs
Esteem Needs
Social Needs
Safety Needs
Biological Needs
Macgreger Theory:
Macgreger has introduced the theory of motivation through the classification of employees in two different
categories. He has explained two theories at a time:
1. Theory X
2. Theory Y
1. Theory X:
Under this theory, he has classified all those employees who are naturally unmotivated and dislike
working. According to this theory, managers must keep on constantly looking at the activities of the
employees so that they should not affect the operation of the business. Under this theory, the following
are the assumption of the managers regarding the behaviour of employees:
a) Disfavor working
b) Do not want to take the responsibilities
c) Need to be forced
d) Need to be controlled
e) Need to supervised at each and every step of the work
f) Do not feel to dedicate themselves for the betterment of organization.
On the basis of aforesaid ground the concluded that the worker falling in X category could be motivated
through the satisfaction of employees basic needs for which they work actually.
2. Theory Y:
According to Macgreger, there are also few employees who are naturally motivated towards the
achievement of organizational goals. He has made the following assumption regarding the behaviour of
employees falling under this category:
a) Self motivated towards the goal
b) Create in nature
c) They need not be forced for the work
d) They seem like the asset to the organization
e) Take responsibilities
On the basis of above points be concluded that these types of employers work by themselves and they
could simply be motivated through the attraction of self-esteem needs.
According to Herzberg, there are two types of factor working in the organization among the employees,
some factors deads to the job satisfaction and helps to motivate the employees known as motivating
factors, but at the same time some factors just exist to maintain the workplace environment which can
sometime result in jobs dissatisfaction this kind of factors are known as hygiene factors. These could be
explained as follows:
Hygiene Factor:
This factors do not result in motivating the workers as they do not help to fulfill the needs of those who
wants something other than basic needs.
a) Pay: Each on every organization must have equal system of pay so that the inequality should not
affect their job satisfaction.
b) Companies Policies: The policy of the company must be flexible it should not include any element of
discrimination. The policy must be fair and clean so that it must not lead to any sort of mental
dissatisfaction.
c) Physical Working Conditions: The employees must be provided with healthy working conditions
which must ensure safety and clean working system. The tools and equipments that one given to the
workers must be well updated.
d) Fringe Benefit: The various additional benefits must be offered to the employees in the form of
various services such as medical and health security to them as well as their family members.
e) Interpersonal Relationship: there must be a good and sound interpersonal relationship among
superior, subordinates and peers.
Motivational Factors:
It refers to all these factors which cause encouragement to the workers towards the work environment.
a) Recognition: Each and every employees desires that work must be recognized and praised. This
results in a kind of encouragement among the workers for the work.
b) Status: When the workers feel that their status will be upgraded then the sense of motivation arises
among them.
c) Growth Possibilities: If a worker sees their growth possibilities then they are highly motivated
towards the work else they are disinterested to perform for the organization.
d) Job Responsibilities: The job responsibilities sometimes automatically motivates the employees since
the sense of duties makes them feel to work towards the business goal.
10. For the accomplishment of some common purpose by harmonious adjustment of specialized
parts of a concern is called
a) Management
b) Coordination
c) Delegation
d) Organization
11. Authority always flows from
a) Superior to subordinate
b) Subordinate to superior
c) Both (a) and (b)
d) None of the above
12. The departmentation can be created
a) By function
b) By product
c) By process
d) All of the above
13. The specific number of subordinates that a manager can supervise effectively is called
a) Span of management
b) Span of organization
c) Span of freedom of action
d) All of the above
14. Which of the following does not come under the preview of directing?
a) Unity of command
b) Unity of direction
c) Supervision and advice
d) Performance evaluation
15. Which of the following does not belong to importance of leadership?
a) Helps to create motivation among the employees
b) Helps in building physical power among the employees
c) Acts as a motive power of group effort
d) Helps in exercising authority
16. Which of the following belongs to the leadership style based on behavior ?
a) Autocratic leadership
b) Bureaucratic leadership
c) Democratic leadership
d) Continum leadership
17. In the field of management, motivation is -
a) A part of staffing
b) A part of directing
c) A part of training
d) A part of placement
18. Hierarchy of needs theory is connected to -
a) Adam Smith
b) Henry Fayol
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a) Social responsibility
b) To earn money
c) Code of ethics (d) Well defined curriculum
6. Middle level management
a) Consists of departmental managers
b) Transmits orders downwards
c) Motivates lower management
d) All of the above
7. Which of the following is concerned with finding the right people for the right job? a)
Planning
b) Organizing
c) Staffing
d) Directing
8. General guideline for decision making is
a) Rules
b) Programme
c) Policy
d) Procedure
9. Strategic planning as a broad concept consists of -
a) Corporate strategy and business strategy
b) Strategy formulation and strategy implementation
c) Inputs and outputs
d) Environmental analysis and internal analysis
10. Analogical method, opinion poll, survey method are the techniques of
a) Coordination
b) Control
c) Selection
d) Forecasting
11. An intellectual process, primary function, thinking before acting, objectivity are the features
of
a) Motivating
b) Centralization
c) Planning
d) Coordinating
12. Which of the following is not true?
a) Planning is goal oriented
b) Planning is pervasive function of management
c) Planning is an intellectual process
d) Planning involves taking actions to attain organizational goals
13. Organization structure refers to
a) How activities are coordinated and controlled
b) How resources are allocated
c) Selection of the location of departments and office space
d) The policy statements developed by the firm
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b) Delegation
c) Directing
d) Coordination
23. Manpower planning, recruitment, selection, placement, induction are the primary elements
of
a) Planning
b) Communication
c) Staffing
d) None of the above
24. It is a mental process. It fulfills the objective of the organization: It fulfills the objective of the
individual: It is an indicator of satisfaction of needs. These are the features of a)
Coordination
b) Control
c) Motivation
d) Delegation of authority
25. Internal, External, Horizontal, Vertical, Substantive, Procedural are the types of a)
Planning
b) Forecasting
c) Coordination
d) Control
26. Policy verification, Foundation of future work, Removal of managerial weakness, Provision
for corrective action are the functions of-
a) Staffing
b) Organizing
c) Control
d) None of the above
27. Actual performance, measurement of performance, comparison of actual and standard
performance, analysis of causes of deviation, and corrective action plan these are the steps of
in:
a) Planning
b) Forecasting
c) Control
d) Directing
28. Which of the following does not belong to Traditional Control Techniques?
a) Critical Path Method
b) Ratio Analysis
c) Return on Investment
d) Financial Statement
29. Which organizational structure is generally followed by big steel plant?
a) Line organization
b) Functional organization
c) Line and staff organization
d) All of the above
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b) Motivation
c) Directing
d) Co-ordinating
8. Decentralization of the power, authority and decision making is the feature of –
a) Free-rein Leadership
b) Autocratic Leadership
c) Dictatorial Leadership
d) Democratic Leadership
9. Departmental planning, Directing, coordinating and control functions are performed by- a)
Top level managers
b) Middle level managers
c) Lower level managers
d) None of these
10. Which one of the following points are not the characteristics of planning?
a) Primacy
b) Simplicity
c) Objectivity
d) Extreme rigidity
11. A good plan means
a) Removal of uncertainty
b) Attention of the objective
c) Helping in o-ordination
d) All of these
12. Who was the advocate of fourteen principles of management?
a) Peter Drucker
b) Max Weber
c) B.C. Babbage
d) Henry Fayol
13. Henry Fayol is called the father of –
a) Scientific Management
b) Modern Management
c) Marketing Management
d) Industrial Management
14. Who wrote the famous book, “The practice of management” in 1954?
a) Henry Fayol
b) G.R. Terry
c) Charles A. Myres
d) Peter F. Drucker
15. --------------------was the first man to introduce the scientific approach in industrial management. a)
Max weber
b) F.W. Taylor
c) Mary Parker Follett
d) R.R. Blake
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16. ----------------is the combination of justice and kindliness to the employees at all levels. a) Order
b) Equity
c) Chain of command
d) Discipline
17. ----------------is a process of stimulation people to accomplish desires goals. a)
Staffing
b) Reporting
c) Motivation
d) Controlling
18. The advocate of X and Y theory in Motivation was –
a) Hezberg
b) Maslow
c) Mclelland
d) McGregor
19. Fear and punishment theory is one of the traditional theories of------------------- a)
Motivation
b) Direction
c) Leadership
d) Organization
20. The last step of management process is –
a) Staffing
b) Controlling
c) Leading
d) Directing
Group – B 1. Business
forecasting refers to –
a) The inference of probable events
b) The analysis of past events
c) The calculation of profit
d) None of these
2. Planning and forecasting are synonymous because they deal with –
a) Present situation
b) Past events
c) Future phenomena
d) All of these
3. Principles of Departmentation, Principles of division of work and Principles of unity of command are
the basic principles of –
a) Planning
b) Organization
c) Control
d) All of these
4. Delegation of authority refers to –
a) Allocation of resources to the employees
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b) Forecasting
c) Directing
d) Delegation
13. Planning should be
a) Accurate
b) Proper
c) Correct and precise
d) All of these
14. One of the characteristics of planning is –
a) Time consuming
b) Helping in function of control
c) Costly (d) Want of reliable information
15. The overall programme of business is called the –
a) Long-range plan
b) Short-range plan
c) Master plan
d) None of these
16. “Management is the art of getting things through the effect of other people”. The statement given by
–
a) Henry Fayol
b) Peter F. Drucker
c) Mary Parker follet
d) G.R. Terry
17. Which of the following arrangements of managerial function is incorrect sequence?
a) Planning, organizing, Directing, Controlling
b) Planning, Controlling, Organising, Directing
c) Planning, Directing, Controlling, Organising
d) Planning, Controlling, Directing, Oganising 18. Management is a --------------------
- work-process.
a) Universal
b) Local
c) National
d) Regional
19. Which is not the function of top level managers?
a) To determine the objectives of business
b) To prepare long-range planning
c) To prepare organizational structure
d) supervise the work
20. Which is not the merit of Scientific Management?
a) Increase in production in minimum time
b) Increase in quality of product
c) Reduction in cost of production
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d) Welfare of workers
21. Decentralization of authority is a fundamental phase of –
a) Centralisation
b) Delegation
c) Responsibility
d) All of these
22. Which of the following is not reason behind delegation of authority?
a) Natural limitation of human being
b) Full utilization of efficiency and power
c) Expansion of business
d) Limitation of resources
23. Advantage of delegation of authority are –
a) Reducing the burden of executives
b) Enhancing the moral of the staff
c) Only A. (d) Both A and B
24. “---------------- is the ability of a manager to exert-inter personal influence towards the achievement
of goal”
a) Motivation
b) Leadership
c) Management
d) Control
25. In the context of socio-economic changes, it becomes impossible for an organization to sustain is
existence for a long time without----------------
a) Promoter
b) Manager
c) Leader
d) Controller.
26. The most important qualities required for a leader are –
a) Health, physical soundness and technical knowledge
b) Mental force, enterprise and friendliness
c) Courage to accept responsibility and firm determination
d) None of the above
27. Behavioural continuum Leadership theory was developed by –
a) Koontz and O’ Donnell
b) R. Tanenbaum and W. Schmidt
c) R.R Blake and J.S Mounton
d) Perry and Frankin
28. ‘Team’ of Managerial Grid is the style of leadership where –
a) Maximum possible attention is given to workers and production
b) Minimum possible attention is given to workers and production
c) Maximum possible attention is given to workers only
d) Maximum possible attention is given to production only.
29. Recruitment, Selection and Placement are the main function of –
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a) Leadership
b) Staffing
c) Motivation
d) Training
30. Which one of the following is correct?
a) Performance Ability x Mental Process
b) Performance = Motivation x Mental Pressure
c) Performance = Ability x Motivation
d) None of these
9. Which theory assumes that people are naturally lazy and will avoid work and responsibility, possible. (A)
Theory Z
(B) Theory Y
(C) Theory X
(D) None of these
10. Controlling is directly related to -------------------- (A)
Planning
(B) Organising
(C) Co-ordinating
(D) Motivating
11. The first step of management process is---------------------
(A) Organising
(B) Planning (C) Leading
(D) Directing
12. --------------- is a process of stimulating people to achieve
desired goals. (A) Control (B) Planning
(C) Staffing
(D) Motivation
13. Which famous management thinker was related with the development of Theory X and
Theory Y
(A) Douglas McGregor
(B) Chester Barnard
(C) Fredrick Herzberg
(D) Abraham Maslow
14. Which one of the management structure of an organization?
(A) Decision Tree
(A) Hierarchy
(B) Satisfying Model
(C) Incremental Model
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(D) 12.
4. Delegation of authority means:
(A) Material release
(B) Manpower release
(C) Finance release
(D) Power release
5. Chief Executive Officer is a part of ------------------- (A)
Lower level of management
(B) Middle level of management
(C) Top level of management
(D) Top and middle level of management.
6. Hawthorne experiments are related to – (A)
New-classical approach
(B) Bureaucratic approach
(C) System approach
(D) Human relation approach
7. Planning should be – (A) Accurate (B) Proper (C) Precise
(D) All of these.
8. Forecasting refers to –
(A) The analysis of the past events
(B) The inference of probable events
(C) The calculation of profit
(D) None of these
9. Recruitment, selection and placement are the main functions of ------------ (A)
Motivation
(B) Control
(C) Staffing
(D) Planning.
10. The leader takes decision in consultation with his/her subordinates. Mention the style of
leadership.
(A) Democratic
(B) Autocratic
(C) Bureaucratic
(D) Impersonal
11. Among the following which reason cannot be accepted as a reason in favour of universality of
management.
(A) Systematic body of knowledge
(B) Transferability
(C) Difference in objectives
(D) Universal application
12. (i) Management is an art.
(ii) Management is culture based.
Which one of the following is related to the above statements? (A)
Functions of management
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7. Controlling is considered as :
(A) the first function of management (B) the second function of management (C) the third
function of management (D) the last function of management.
(A) allocation of resources to the employees (B) allocation of funds to the employees (C)
allocation of duties and responsibilities to the employees (D) all of these.
11. Planning should be :
(A) Creative (B) Flexible
(C) Proper (D) all of these.
12. Departmental planning, directing, co-ordinating and control functions are performed by :
(A) lower level managers (B) middle level managers (C) top level managers (D) all of
these.
Group - B
Choose the correct option of any twenty questions. (3×20)
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21. ‘To manage is to forecast and to plan, to organize, to command, to coordinate and to control.’
This definition was given by .
(A) P. F. Drucker (B) F. W. Taylor
(C) W. Terry (D) Henry Fayol
(A) arts, science and commerce (B) arts, commerce and profession (C) arts, commerce and
engineering (D) arts and science.
43. Motivation makes people willing to do their work in the best way they can and improve
their_________.
(A) resource (B) productivity (C) personality (D) all of these.
49. Human resource planning, recruitment, selection, placement, training and development are
the functions of __________.
(A) planning (B) staffing
(C) organising (D) none of these.
50. Informing principle objectives, departmental meetings, effective communication system,
direct supervision, integrated control system etc. are the techniques of .
(A) co-ordination (B) control (C) communication (D) organisation.