Professional Documents
Culture Documents
Staffing
Staffing
Staffing
D
total revenue line
loss total cost
FC
G
A X
output (in units)
3Budgetary control
-Master budget –it covers both functional &
operational activities
-Materials & utilities budget- mainly concentrates on
operational side
-Control of liquidity budget- it forecasts cash receipts
& outlays in a set time basis & is necessary to control
the income & expenses, no shortage of cash, no
shortage of cash, no excess cash unused
-Revenue & expense budget-plans for sales revenue
& expenses such as rent, utilities, suppliers etc
- Capital expenditure budget-plans for long term
investment like expenditure for plant & machinery,
major installations, replacement of existing equipment
-sales budgets
-production budgets
-balance sheet
-Flexible budget- time to time changes could be
incorporated in the expenditure (variable cost)
due to change in volume of production &
revenues
-zero base budget(ZBB)-the budget is
constituted from a zero base as if it is the very
first budget of the org. It builds up the cost from
zero.
Steps involved in ZBB
-activities are divided in to parts-decision
packages
-all activities are evaluated & ranked on the
basis of benefits to org .Activities with highest
will get immediate/first attention. Activities at
the lowest rank would get lowest priority
-allocation of resources
Advantages of ZBB
-able to know whether an activity is continued
or not
-greater participation of all concerned people in
planning process
-quantification is done for each alternative
,assessment is objective in nature, more
clear ,unambiguous
Disadvantages OF ZBB
-costly ,more time
-middle mgt reluctant to go for this method
Limitation of budgeting process
-They are too rigid
- Are used to evaluate the performance &
results, but the causes of failure & success are
not thoroughly investigated.
-budget purely used as a rating tool-solely for
catching the mistakes it will lower the
employee morale & dilute their sense of
dedication
-budget goals may be concerned as too high
goal ,found to be unrealistic/may create
tension & pressure result in worker
inefficiency
Benefits of budgetary control
Characteristic features of an effective
budgetary control system.
4)PERT/CPM
PERT DIAGRAM
Time taken to complete an activity
activity event
2
2 A 6 C
1 4 E8 5
3
3B D7
Time estimate is based on 3 types of time
To-optimistic time
Tm – most likely time
Tp –pessimistic time.
The formula for computing the estimated time is
To + 4 Tm +Tp
6
PERT/CPM developed by special projects office
of the US navy .Programme Evaluation and
Review Technique was first applied to
planning & control of the Polaris Weapons
System. PERT is a time event network analysis
system in which the various events in a
programme /project are identified, with a
planned time established for each .These
events are placed in a network showing the
relationship of each event to other event
-5)Human Asset Accounting mainly assessed on
the basis of cost /benefit analysis.
The major costs include
-acquisition cost
-leaving cost
-separation cost
The contribution made by the employee is valued
on the basis of following:
-Causal variables includes –all those development
programs undertaken by org which acts as a
cause for the contribution made by employees
-Intervening variables- performance goals,
group loyalty, degree of conflict & co
operation, motivation, respect for authority
-End result variables- includes sales volume,
sales cost, earning made by sales
representatives etc.
Leadership & Motivation
Leadership may be defined as the art of influencing
& inspiring subordinates to perform their duties
willingly competently & enthusiastically for
achievement of group objectives
Traits of leadership
energy ,drive, appearance, present ability
,enthusiasm, total personality, initiative
,intelligence, self confidence, sociability, tact &
diplomacy, moral courage, & integrity, willpower,
& flexibility, knowledge of human relations
Leadership styles
1 Autocratic/dictatorial keep decision making
authority & control with a central position &
assume responsibility for all actions. They
structure the entire work situation in their
own way & expect the workers to follow
Advantages
-can increase efficiency & get quicker results
-it is useful when the chain of command &
division of work is clear & understood by all
• Disadvantages
One way communication with out feedback lead
to misunderstanding &communication
breakdown
-whole decision is taken by the autocratic leader
-it inhibits the workers freedom
-it is undesirable when the workforce is
knowledgeable abt their jobs & the job calls
for team work & co operative spirit
2) Participative /democratic leadership
Subordinates are consulted & their feedback is
taken in to consideration for decision making.
Advantages
-increases productivity & satisfaction
-workers develop self esteem
-workers become more committed to changes
- The leadership induces confidence ,co
operation & loyalty amg workers
- -it results in higher employee morale.
Disadvantages
-labor must be literate
-here the general assumption is that workers are
interested & loyal towards the org& that their
individual goals are infused with the org goal.
This assumption may not always be valid.
3 Laissez faire/free reign leadership
Here leader act as figure head do not participate
in decision making –full freedom given to the
subordinates to accomplish goals which is
generalized org policies & objectives
Advantages
Enviromnet of freedom,team spirit &
individuality
-highly creative
Disadvantages
-may result in disorganized activities
-insecurity & frustration may develop
-uncooperative members –team spirit may
suffer
-some members may put their own interest
above the group & team interests
Theories of leadership
1 Trait theory emphasizes that leaders are born
& not made leadership is a function of inborn
traits
2 Behavioral theory
3 contingencu theory
4 The path goal theory
5Vroom Yetton model how the leaders should
behave in decision making .The focus is on the
assumption that different problem have
different characteristics & should therefore
be solved by different decision techniques.
The decision so reached ,should be high in
quality, should be accepted by people who
have to implement it & should be time
efficient
6 The managerial Grid Approach
Two axis are
Vertical axis represents workers involvement
Horizontal axis represents work design both has
a scale from 1 to 9
Vertical axis 1 representing least involvement by
the employees & 9 the most involvement
Horizontal axis 1 representing a very lose work
design structure & 9 representing a highly
structured work design.
5 co ordinates that reflects leadership behavior
are
-co ordinate (1,1) mgr’s make minimum efforts
to get the work done minimum workers
dedication & minimal work stds
-co ordinate (9,1) excellent work design, very
less workers dedication
-co ordinate (1,9 )high workers dedication high
morale, loosely structured work design
-co ordinate( 5,5 )satisfactory performance &
reasonable morale
-co ordinate (9,9 )ultimate in managerial
efficiency & highly dedicated people