1) What is meant by management ?

explain its functions

DEFINITION
“Management is the art of getting things done through and with people in formally organized
groups” --- Koontz
Management is concerned with systematic organization of economic resources and its task is to
make these resources productive”- Peter F. Drucker
“Management is the art of knowing what you want to do and then seeing that it is done in the
best and cheapest way” – F.W. Taylor
“To manage is to forecast and plan, to organize, to command, to coordinate and to control.”
Henri Fayol
“Management is the art of securing maximum results with minimum effort so as to secure
maximum prosperity and happiness for both employer and employee and give the public the best
possible service” --- John Mee
“Management is the accomplishment of results through the efforts of other people”
Lawrence
“Management is coordination of all resources through the process of planning, organizing,
staffing, directing and controlling human efforts to achieve stated objectives in an organization.”
Henry L.Sisk

FUNCTIONS OF MANAGEMENT:
To achieve the organisational objectives managers at all levels of organization should perform
different functions. A function is a group of similar activities.
The list of management functions varies from author to author with the number of functions
varying from three to eight.
Writers Management Functions
Henry Fayol Planning, Organizing, Commanding, Coordinating, Controlling
Luther Gullick POSDCORD- Planning, Organising, Staffing, Directing,
Coordinating, Reporting, Directing
R. Davis Planning , Organising, Controlling
E.F.L. Breech Planning, Organising, Motivating, Coordinating, Controlling
Koontz Planning, Organising, Staffing, Directing, Controlling
 Different authors presented different variations. By combining some of functions, these
are broadly grouped into Planning, Organising, Staffing, Directing, and Controlling.
1) Planning: Planning is the conscious determination of future course of action. This
involves why an action, what action, how to take action, and when to take action. Thus,
planning includes determination of specific objectives, determining projects and
programs, setting policies and strategies, setting rules and procedures and preparing
budgets.
2) Organising: Organising is the process of dividing work into convenient tasks or duties,
grouping of such duties in the form of positions, grouping of various positions into
departments and sections, assigning duties to individual positions, and delegating
authority to each positions so that the work is carried out as planned. It is viewed as a
bridge connecting the conceptual idea developed in creating and planning to the specific
means for accomplishment these ideas.
3) Staffing: Staffing involves manning the various positions created by the organizing
process. It includes preparing inventory of personal available and identifying the sources
of people, selecting people, training and developing them, fixing financial compensation,
appraising them periodically etc.
4) Directing: when people are available in the organization, they must know what they are
expected to do in the organization. Superior managers fulfill this requirement by
communicating to subordinates about their expected behavior. Once subordinates are
oriented, the superiors have continuous responsibility of guiding and leading them for
better work performance and motivating them to work with zeal and enthusiasm. Thus,
directing includes communicating, motivating and leading.
5) Controlling: Controlling involves identification of actual results, comparison of actual
results with expected results as set by planning process, identification of deviations
between the two, if any, and taking of corrective action so that actual results match with
expected results.

2) Any two motivational theories

HERZBERG’S MOTIVATION – HYGIENE THEORY:

 Frederick Hertzberg conducted a structured interview programme to analyse the
experience and feelings of 200 engineers and accountants in nine different companies in
Pittsburg area, U.S.A during the structured interview, they were asked to describe a few previous
job experiences in which they felt ‘exceptionally good’ or exceptionally bad about jobs.
In his analysis, he found that there are some job conditions which operate primarily to
dissatisfy employees when the conditions are absent, however their presence does not motivate
them in a strong way. Another set of job conditions operates primarily to build strong motivation
and high job satisfaction, but their absence rarely proves strongly dissatisfying.
The first set of job conditions has been referred to as maintenance or hygiene factors and
second set of job conditions as motivational factors.
Hygiene Factors:
According to Hertzberg, there are 10 maintenance factors. These are company policy and
administration, technical supervision, salary, job security, personal life, status, working
conditions, interpersonal relationship with superiors, interpersonal relationship with peers and
interpersonal relationship with subordinates.
These maintenance factors are necessary to maintain at a reasonable level of satisfaction
in employees. Any increase beyond this level will not produce any satisfaction to the employees:
however, any cut below this level will dissatisfy them.
Motivational Factors:
These factors are capable of having a positive effect on job satisfaction often resulting in
an increase in ones total output. Hertzberg includes six factors that motivate employees. These
are achievement, recognition, advancement; work itself, possibility of growth and responsibility.
Most of the above factors are related with job contents. An increase in these factors will
satisfy the employees: however, any decrease in these factors will not affect their level of
satisfaction. Since, these increased level of satisfaction in the employees, can be used in
motivating them for higher output.
VROOM EXPECTANCY MOTIVATION THEORY:
Vroom's expectancy theory separates effort (which arises from motivation), performance, and
outcomes. Expectancy theory suggests that individuals are motivated to act in a certain way
because they strongly expect that a particular action will lead to a desirable result. According to
this theory,
Force= valence * expectancy where
Force is due strength of a person’s motivation, Valence is the strength of an individual’s desire
for a particular outcome and expectancy is the probability that a particular action will lead to a
desired result. If probability is zero force will be zero. One gets strongly motivated to get into
action to reach a goal if he perceives that he can make it or he can see that what he is doing will
help him in emerging successful.

3) Work study objectives and procedure

Objectives of work study:

⮚ To increase productivity and reduce wastages through the optimum usage of human,

machine and material resource available in the organization.

⮚ To analyze the present method of doing a job, systematically in order to develop a new

and better way.

⮚ To measure the work content of a job by measuring the time required to do the job and

hence establish standard time.

⮚ To improve operational efficiency.

Work study procedure:

Step 1: Identify and select the job or process to be studied
Step 2: Use direct observation method and effective recording techniques for collecting data for
further analysis.
Step 3: Data and facts obtained in previous step are to be examine and analyzed critically
Step 4: Develop the most economical method under prevailing conditions
Step 5: Measure the quantity of work involved in the method defined and calculates standard
time for doing it by adding rest allowance
Step 6: Define the best method and related time
Step 7: Install the new method and train personnel so that it conforms the standard practices
Step 8: Maintain the standard practice by a proper control mechanism

4) What is SQC ? Merits & Demerits

STATISTICAL QUALITY CONTROL (SQC):

The process of applying statistical principles to solve problem of controlling the quality of a
product or service is called statistical quality control.

Merits of SQC :

1. Ease of Application : Statistical quality control is easy to apply. Even those persons who
have not had extensive specialised training can apply statistical methods easily.
2. Reduction in Costs : The cost of inspection is reduced in SQC as only a part or fraction
of a lot is taken and inspected.
3. Greater Efficiency : It provides greater efficiency as inspectors are more alert while
using SQC as only of part is inspected.
4. Early Detection of Faulty Units : SQC consists of continuous checking of the quality of
the product. Therefore, SQC ensures an early detection of faults and results in minimum
wastage of items.
5. Helpful in Specification : Using SQC, we can find out whether the item meets the
specifications within the tolerance limits or not.
6. Ensures Overall Coordination : SQC methods ensure coordination between managers
managing specifications, production and inspection.
7. Determination of the Effect of Change in the Process : With the help of control charts,
we can easily detect whether or not a change in the production process results in a
significant change in the quality.
 8. Equilibrium in Consumer’s and Producer's Risk : Methods such as quality control
and acceptance sampling help in maintaining equilibrium between the consumer's risk
and producer's risk.
9. Wider Applications : It is not only useful in the examination of items produced in small
numbers, but also when bulk production has to be done.

Demerits of SQC :

1. When a sample of the items drawn from the lot is not a true representative of the entire
lot and does not have the same characteristics as the lot from which it is drawn. Then a
good lot may be rejected and a bad one may be accepted. This is the main limitation of
SQC.
2. SQC cannot be used mechanically for any production process without studying the
process and without having adequate knowledge about the process.
3. SQC applied on a production process provides only the information that the process is
under control or out-of-control. It cannot take any action for improvement.

5) Product life cycle

Product Life Cycle Stages: The product life cycle has 4 very clearly defined stages, each with
its own characteristics that mean different things for business that are trying to manage the life
cycle of their particular products.
1. Introduction
2. Growth
3. Maturity
4. Decline
Introduction Stage – This stage of the cycle could be the most expensive for a company
launching a new product. The size of the market for the product is small, which means sales are
low, although they will be increasing. On the other hand, the cost of things like research and
development, consumer testing, and the marketing needed to launch the product can be very
high.
Growth Stage – The growth stage is typically characterized by a strong growth in sales and
profits, and because the company can start to benefit from economies of scale in production, the
profit margins, as well as the overall amount of profit, will increase. This makes it possible for
businesses to invest more money in the promotional activity to maximize the potential of this
growth stage.
Maturity Stage – During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. This is probably the most
competitive time for most products and businesses need to invest wisely in any marketing they
undertake. They also need to consider any product modifications or improvements to the
production process which might give them a competitive advantage.
Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s
known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e.
all the customers who will buy the product have already purchased it), or because the consumers
are switching to a different type of product. While this decline may be inevitable, it may still be
possible for companies to make some profit by switching to less-expensive production methods
and cheaper markets.

6) Various distribution channels

CHANNELS OF DISTRIBUTION:
CHANNEL: A channel of distribution or trade channel is defined as the path or route along
which goods move from producers or manufacturers to ultimate consumers or industrial users.
This channel consists of producers, consumers or users and the various middlemen like
wholesalers, selling agents and retailers (dealers) who intervene between the producers and
consumers.
These channels of distribution are broadly divided into four types:-

▪ Producer-Customer:- This is the simplest and shortest channel in which no middlemen

is involved and producers directly sell their products to the consumers. It is fast and
economical channel of distribution. Under it, the producer or entrepreneur performs all
 the marketing activities himself and has full control over distribution. A producer may
sell directly to consumers through door-to-door salesmen, direct mail or through his own
retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial
products of high value. Small producers and producers of perishable commodities also
sell directly to local consumers.

▪ Producer-Retailer-Customer:- This channel of distribution involves only one

middlemen called 'retailer'. Under it, the producer sells his product to big retailers (or
retailers who buy goods in large quantities) who in turn sell to the ultimate consumers.
This channel relieves the manufacturer from burden of selling the goods himself and at
the same time gives him control over the process of distribution. This is often suited for
distribution of consumer durables and products of high value.

▪ Producer-Wholesaler-Retailer-Customer:- This is the most common and traditional

channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are
involved. Here, the producer sells his product to wholesalers, who in turn sell it to
retailers. And retailers finally sell the product to the ultimate consumers. This channel is
suitable for the producers having limited finance, narrow product line and who needed
expert services and promotional support of wholesalers. This is mostly used for the
products with widely scattered market.

▪ Producer-Agent-Wholesaler-Retailer-Customer:- This is the longest channel of

distribution in which three middlemen are involved. This is used when the producer
wants to be fully relieved of the problem of distribution and thus hands over his entire
output to the selling agents. The agents distribute the product among a few wholesalers.
Each wholesaler distribute the product among a number of retailers who finally sell it to
the ultimate consumers. This channel is suitable for wider distribution of various
industrial products.
7) Scope of management

● Scope Of Management

Clearly defined responsibilities, concepts, theories and principles related to managerial

functions define the scope of management. Let’s look at the various aspects of this.

1. Financial Management

Every enterprise prioritizes financial management because finances can get

extremely tricky if not managed properly. Effective financial management ensures
there are fair returns to stakeholders, proper estimation of capital requirements and
laying down optimal capital. It includes preparation and examination of financial
statements, creating proper dividend policies and negotiations with external
stakeholders.

2. Marketing Management

The scope of management in marketing extends to planning, organizing, directing

and controlling activities in the marketing department. Identifying customer
requirements is crucial for providing business solutions. When a manager is fully
aware of the benefits of the products and/or services the organization provides, they
achieve better results. Marketing management ensures that available resources are
properly utilized and the best possible outcomes are achieved.

3. Personnel Management

Personnel management—as the name suggests—deals with personnel or individuals

in a business environment. It includes the recruitment, transfer, termination, welfare
and social security of employees. This aspect of management is extremely important
as employees form teams and teams drive an organization’s goals. Individual
productivity also contributes to overall efficiency. Without attending to employee
needs and wants, an organization is likely to struggle.

4. Production Management

This type of management refers to the process of creating utilities. When you
convert raw materials to finished products and oversee the planning and regulation,
you’re engaging in production management. Without production, there isn’t any
finished good or service and without it, organizations can’t generate interest or
profits. The final product must fulfill customer requirements. The process includes
quality control, research and development, plan layout and simplification.

5. Office Management

This includes controlling and coordinating all office activities to achieve an

organization’s goals and targets. For example, an administration’s efficiency
impacts a business significantly. The more organized the departments and
responsibilities are, the more effective an organization is.