CHAPTER 2

MANAGEMENT PROCESS

@ ASSISTANT PROFESSOR – SINURAJ P R

 MANAGEMENT PROCESS
Functions of Management -
Briefly, there are 5 core functions that
constitute scope of management, functions or
the process of management.
They are Planning, Organizing, Staffing,
Directing and Controlling.
POSDCORB –
Planning, Organizing, Staffing, Directing, Co-
Ordinating, Reporting and Budgeting.
“Management is the process of planning and organizing the resources and activities
of a business to achieve specific goals most effectively and efficiently”.
LEVELS OF MANAGEMENT -
Levels of Management -
The term ‘Levels of Management’ refers to a
line between various managerial positions in
an organization. The number of levels in
management increases when the size of the
business and work force increases and vice
versa.
◈ Top level / Administrative level
◈ Middle level / Executory
◈ Low level / Supervisory / Operative /
First-line managers
PLANNING -
Meaning -
It is the process of setting goals and choosing
the means to achieve those goals.
It involves setting of objectives and goals,
designing appropriate strategy and course of
action, and framing plans and procedure etc.
Types of Plans -
A manager is required to develop a number
of plans to achieve the organizational
objectives.
Major types of plans can help managers to
achieve their organizational goals.
▪ Standing Plans
▪ Single use Plans
TYPES OF PLANS -

Standing Plans - Single Use Plans –

▪ Policies ▪ Budget
▪ Procedures ▪ Programs
▪ Rules
PLANNING PROCESS -
Steps of Planning –

◈ Laying out the objectives:

◈ Assessment of Resources (materials and manpower)
◈ Identification of alternatives:
◈ Evaluation of alternatives:
◈ Formulation of plan (selection of suitable plan)
◈ Implementation of Plan:
◈ Evaluation
ORGANISING -
Meaning -

“Organizing involves the grouping of activities necessary to accomplish goals and plans,
the assignment of these activities to appropriate departments, and the provision of
authority delegation and Co-ordination.”

It is the function of identifying the required activities, grouping them into jobs, assigning
jobs to various position holders, and creating a network of relationship, so that the
required functions are performed in a coordinated manner, leading to the accomplishment
of desired goals.
ORGANISING – Span of Control
Meaning -

Span of management or Span of control means the number of people managed efficiently
by a single officer in an organization.

The limit of number of members for span of control may be increased or decreased
according to the levels of management.
The ideal number of subordinates is four in case of higher-level management and eight to
twelve in case of lower level management.
CLASSIFICATION OF ORGANISATION -

Types of Organization -
▪ Formal Organization
▪ Informal Organization
ORGANISATIONAL STRUCTURE -

Types of Organizational Structure –

▪ Line Organizational Structure

▪ Functional Organizational Structure
▪ Line and Staff Organizational Structure
DELEGATION OF AUTHORITY -
Meaning -
It is the power to make decisions which guide
the actions of others.
In other words, it is the power to give orders
and make sure that these orders are obeyed, in
order to finish the work on time.
According to Luis Allen, “It is the sum of powers and rights entered to make possible
the performance of the work delegated”
Delegation of Authority -
Delegation is a process which enables a
person to assign a work to others with
adequate authority to do it.
The authority can be delegated but not
the responsibility. Delegation of
authority is considered to be one of the
most important methods of training
subordinates and building morals.
PRINCIPLES / FEATURES OF DELEGATION -
Principles of delegation

Delegation to go by results
Non-delegation of responsibility (a superior can delegate authority but not
responsibility)
Parity of authority and responsibility (proper balance between authority and
responsibility)
Unity of command (should be assigned duties and responsibilities only by one
superior)
Definition of limitation of authority (written manual)
TYPES OF DELEGATION -
General delegation: It means granting authority to the subordinates to perform various managerial functions
and exercise control over them.
Specific delegation: Here, orders or instructions are delegated to a particular person specifically.
Written delegation: When authority is delegated in written words it is known as written delegation.
Unwritten delegation: If authority is delegated on the basis of custom or usage etc., it is known as unwritten
delegation.
Formal delegation: If duties and authority are shown in the organizational structure of the enterprise, then it
is called formal delegation.
Informal delegation: If a person exercising authority without getting it from the top management in order to
perform his assigned duties, it is a case of informal delegation.
Downward delegation: It is a case where the superior delegate duties and authority to his immediate sub
ordinate.
Sideward delegation: A person delegate authority to another person who is also in the same rank as he is in
the organization.
CENTRALIZATION AND DE CENTRALIZATION -

Centralization Decentralization

It means concentration of decision-making In decentralization, each section has its

authority at the top-level management. own workers to perform activities within
the department.

All the decision is taken by the top According to Allen, “Decentralization

management without delegating to the refers to the systematic efforts to delegate
subordinate. to the lowest levels all authority except
that which can only be exercised at
central point”.
DECENTRALIZATION -
Advantages of decentralization Dis advantages of decentralization
It saves the time of top executive and give It is suitable only to a big business
relief to the top executive enterprise.
Decentralization gives the subordinates
the freedom to act and make some It creates problem of co-ordination
decisions. It gives him a feeling of status among various levels
and recognition.
It helps to coordinate the activities of the
organization in a better way. There is a chance to miss the
uniformity in policies and procedures.
It helps to take prompt and quick action at
the earliest. .
It is a best devise to develop future
business executives
.
SPAN OF CONTROL -
Span of management or Span of control means the number of people managed efficiently by a
single officer in an organization.
It is an accepted truth that large number of subordinates cannot be supervised and their efforts
coordinated effectively by a single executive.
Only limited numbers of persons are allocated to the executive for dividing the work.
The limit of number of members for span of control may be increased or decreased according
to the levels of management.
STAFFING -
What is Staffing ?

Staffing may be defined as a process of recruiting and equipping the people to

handle various positions and perform assigned tasks in line with the structure
and the overall goals of the organization.

It is the managerial function which involves managing the organization

structure through proper and effective selection, appraisal and development of

the personnel to fill the roles assigned to the employers/workforce.
PROCESS/STEPS/FUNCTIONS OF STAFFING
Functions Staffing

Manpower Planning
Job Analysis
Recruitment
Selection and Placement
Orientation
Training and development
Performance Evaluation
Performance Appraisal
Manpower Planning
Is the process of estimating manpower required for an organization. It is necessary to
ensure adequate supply and optimum use of the most valuable human resource.

• Right number of people

• Right kind of people
• At the right place
• At the right time
Importance of Manpower Planning
Importance of manpower planning

Enable smooth operations

Supply of manpower
Optimum use of human resource
Expansion and diversification
Reduce Labour cost
Managing changes
Basis for employment development
Process of manpower planning
Manpower Planning - Process

Preparation of manpower Inventory

Analysis of future plans
Forecasting manpower requirement
Analysis of supply
Preparation of Action plan
Monitoring and Control
Job Analysis
It is the process of studying and collecting information's relating to a job position.
It involves recording the duties and responsibilities, skills, work environment, etc. of a
given job.

Job description Job specification

Is a document basically descriptive in nature Is a statement of minimum acceptable

and constitutes a record of facts (duties and qualities necessary to perform a job.
responsibilities) regarding job.
Recruitment
Sources of Recruitment – Internal and External Sources

External Internal
Advertisement Transfers
Employee Exchange Promotion
Campus Recruitment
Contractors
Consultants
Field trips
PROCESS/FUNCTIONS OF STAFFING
Selection Process

• Scrutiny of Application
• Blank application forms(Bio dada, education qualifications, experience, references,
salary expected etc.)
• Selection test (Proficiency test, Aptitude test)
• Interview
• Physical/Medical Exam
• Final selection
• Placement and orientation
PROCESS/FUNCTIONS OF STAFFING
Training and Development

Training -
Training is the act of increasing the knowledge and skills of an employee
for performing a particular job effectively and efficiently.

Development (Growth of an employee) –

Eemployees acquire skills and knowledge to perform the job and increase
capabilities for accepting higher positions in future.
PROCESS/FUNCTIONS OF STAFFING
Training Methods Training Methods

On the Job training- Off the job training–

Coaching Classroom training
Understudy/Assisting Group discussion method
Job rotation Case study method
Role play method
Conferences
DIRECTION

It is the process of activating human resources towards attainment of

organizational objectives.
It is concerned with – Iimportant aspects of direction -

• Instructing • Motivation
• Guiding • Leadership
• And Inspiring • Communication
• Counseling
• Overseeing
• Leading
PRINCIPLES OF DIRECTION
Principle of harmony of objectives -
Individual objectives of employees should be integrated with objectives of the
organization.

Principle of efficiency of direction -

Direction should be efficient so that organizational objectives are achieved with employee
satisfaction.

Principle of Unity of command -

A subordinate should get orders and directions from one superior only.
PRINCIPLES OF DIRECTION
Principle of appropriate direction technique -
Directive technique used should be appropriate to particular situation.

Principle of communication -
There should be effective communication between superior and subordinates in both
direction.

Principle of Leadership -
Manager should be a good leader capable of influencing and encouraging subordinates to
achieve organizational objectives.
PRINCIPLES OF DIRECTION
Principles of using informal organization -
Manager should encourage informal relationship in the organization to make direction
most effective.

Principle of follow up -
The manager should regularly verify whether their directions have been carried out or
not. They should advise, counsel and assist the subordinates in the performance of their
task.
CONTROLLING
Ccontrolling is the process of evaluating the performance and applying necessary
corrective measures to match actual performance with the forecasted.

Steps in Control Process -

• Establishment of standard ( Criteria against which actual performance can be

measured)
• Measurement of Performance
• Comparing Actuals with Standards
• Identify the cause of deviations
• Taking corrective action
CO - ORDINATION
It is the process of integrating the activities of different units of an organization to
achieve organizational goals.

It is concerned with –

• Instructing
• Guiding
• And Inspiring
THANKS!
Assistant Professor
Sinuraj P R
sinurajpr@yuvakshetra.org