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INDEX

Unit I ................................................................... 3

Lesson 1: Management ........................................ 4

Lesson 2: Planning............................................. 12

Lesson 3: Coordination ...................................... 25

Unit - II ............................................................. 32

Lesson 4: Motivation .......................................... 33

Lesson 5: Delegation of Authority ...................... 39

Unit - III ............................................................ 47

Lesson 6: Departmentation ................................ 48

Lesson 7: Communication .................................. 52

Unit IV ............................................................... 62

Lesson 8: Leadership ......................................... 63

Lesson 9: Controlling ......................................... 68

Lesson 10: Directing .......................................... 75

Unit V ................................................................ 80

Lesson 11: Advertising ...................................... 81

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Unit I

Lesson 1:- Management

Lesson 2:-Planning

Lesson 3:-Co-ordination

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Lesson 1: Management

Objective:

In this lesson the students will explore the meaning and scope of management.

Structure:

1.0 Introduction

1.1 Concept of Management 1.2 Nature and Characteristics of Management

1.3 Principles of Management

1.0 Introduction

The basic unit of society is individual but no

individuals can satisfy all his desires himself so he

unites with his fellow beings in an organised group for achieving what he cannot do individually. Human

beings are surrounded by organised groups of many

kinds, viz., a family, a play group, a work group, a school, a business firm, a government, etc.

An organisation is a set of people working together

to achieve common goals. Wherever there is an

organised group of people working towards a common goal, some type of management becomes

essential. . No organisation can run successfully

unless there is someone to manage its activities.

"Organisation" specifies a set of people to achieve

common goals where group activities are co-

ordinated and some type of management is required. If an organisation has no management at

all, enemy individual will perform his own duties and

the result will be utter confusion where people will

be managing their own affairs and will be responsible for nothing else other than their own

jobs.

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Management is an essential part of any group

activity. It is a primary force within the group or

organisation which tends to lead it towards the

group goal. Management is required to plan, organise, co-ordinate and control the affairs of the

organisation. It brings the human and material

resources together and motivates the people for the achievement of the objectives of the organisation.

Without management, resources of production

remain resources merely and never become

production.

Management is a primary part of group activity and

teach to achieve the common goal. Management is

required to

Plan

Organise

Co-ordinate &

Control the Affairs

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(Management is the body of knowledge and its practice)

Art of getting things done

Concept of Scientific Principles of Management

Art and Science ofDecision Making and Leadership

Management as a Discipline

Manager as a Noun :(Management refers to all those persons who manage)

Board of Director

Managing Director

Chief Executive

General Manager

Functional Managers

Supervisors Labourers

Management Flow ChartSkills

As a process(Management is what a manager does)

Planning

Organising

Staffing

Directing

Co-ordinating

Controlling

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The concept of management was developed to

coordinate the functions of an organisation, getting

things done through others – Developing the leadership quality and confidence of decision making

for better “PROFITABILITY AND PRODUCTIVITY” of

the Organisation.

1.1 Concept of Management

The concept of management was developed to

coordinate the functions of an organisation, getting

things done through others – Developing the leadership quality and confidence of decision making

for better “PROFITABILITY AND PRODUCTIVITY” of

the Organisation.

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"MANAGEMENT CONCEPT"

FLOW CHART

1.2 Nature and Characteristics of

Management:

Each definition of Management shows one

emphasised area of work, but if taken the nutshell

of all definition into the characteristic of Management, the following would emerge as the

main features to be taken care of.

1. Management is a group activity:

No individual can satisfy or perform the jobs

individually to reach the management targets,

hence it becomes mandatory to perform in a group

activity.

Eg : In an export house from senior merchandiser to

cutters it has to be a group activity else shipments

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wont be completed on time and they will reflect

upon losses for the management.

2. Management is goal oriented:

Effective management is always "Management by Objectives". Rightly said as without an aim, or

objective no work process will have initiative and

targets to achieve.

3. Management is a factor of production:

That is not an end to itself but a mean to achieve

the group objective. Just as land, labour and capital

are factors of production.

4. Management is universal in character:

Management is applicable in all types of

organisations whether social, business, cultural, sports, religious, educational, military or political,

the basis principals are universal in character.

5. Management is needed at all levels of organisation:

Management is needed at all levels of the

organisation whether top level; middle level, the

difference at the levels i.e. only with nature of task and scope of authority.

6. Management is a distinct process:

Management is a distinct process to determine the processes through human beings and other

resources. The process of management consists of

functions like planning, organising, directing, controlling, staffing, motivating and co-ordinating.

7. Management is a social process:

Management consist of getting things done through

others. The efforts of human beings have to be directed and co-ordinated in order to achieve the

best results.

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8. Management is a system of Authority:

Management reflects rule making and rule enforcing

body. Authority is an essential part of Management

which has the power of getting the work done from others or compel them to work in a particular

manner.

9. Management is a dynamic function:

Management is a never ending functions, it has to

perform continuously keeping in track with the

charges and upgradation with flexibility to achieve

the best results in every sphere.

10. Management is an art as well as

science:

Management is a science as it has developed certain principles which are of universal application. The

result of Management depends upon the personal

skills of Managers and this is an art.

11. Management is a profession:

In present scenario management is recognised as a

profession. It has a systematic and specialised body

of knowledge consisting of principles, a technique can be taught as a separate discipline.

12. Management is intangible:

Management is intangible _ It can be felt in the form of results and not seen.

1.3 Principles of Management

Business to manage with different aspects of

Management has become very complex these days, as Managers are expected to deal with number of

problems in day-to-day working. To increase the

efficiency and have a coordinated effort to achieve Management targets Management Principles were

developed so that Managers could follow guidelines

and prove to be better managers for a better

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tomorrow. These principles are the real exercises

where problems were faced and the better achieve

results were developed into the principles.

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Lesson 2: Planning

Objective

In this lesson the students will understand the

types and role of planning in management.

Structure

2.0 Introduction

2.1 Definitions

2.2 Nature or Characteristics of Planning 2.3 Six P‟s of Planning

2.4 Needs for Planning

2.5 Principle of Planning 2.6 Characteristic of a Good Plan

2.7 Types of Planning

2.8 Advantages of Planning

2.9 Limitation of Planning

2.0 Introduction

Planning helps in determining the course of action to be followed for achieving various organisational

objectives. It's a decision in advance; what to do,

how to do and who will do a particular task.

Planning is a process, which in one line could be defined as `Think before act'.

2.1 Definitions

To some planning means everything a person does, to others it's specific activity. To clear the meaning

of planning, some definitions have been dismissed.

Hart: "The determination in advance of a line of

action by which certain results are to be achieved is planning". According to Hort, Planning is the

deciding of a course of action required for reaching

organisational goals. The line of action is decided in

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advance so that actual execution become easy later

on.

Alfred and Beauty: `Planning is the thinking

process, the organised forecast, the vision based on fact and experiences that is required for intelligent

action. Planning is a process in which decision are

taken in advance. The pros and cons of the decisions and their implication in future are

discussed before head. A wrong decision may create

difficulties for the management and may result in

financial loss too.

2.2 Nature or Characteristics of

Planning

a) Planning, an Intellectual Process: –

Planning is essentially an Intellectual process; its

mental is nature. A planner has to think about

following expects.

A decision on these aspects will depend upon capabilities of the decision maker. A proper planning

can make the organisation. Whereas Improper mar

on organisation

How is it tobe done ?

When is it tobe done ?

By whom is itto be done ?

What is it tobe done ?

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Planning is an integral part of management.

Especially in fashion world it is very essential. To

complete a certain order in a time period of say

three months lot of planning needs to be done in terms of proper infrastructure, staffing budget,

delegated, responsibility etc. The following

discussion will explain the nature of planning.

b) Primary of Planning

Without proper planning no management functions

can be performed systematically. How can a director

of an export house commit to dispatch a shipment in three months without proper planning. It can be

said that planning is the function that needs to be

done first of all.

The function like organising, staffing, Directing, controlling will overlap. It‟s not that the other can

start only when first is completed. There may be a

need for replanning or adjustment of planning. Controlling is one function which goes side by side

with planning. One is incomplete without the others

c) Planning: A Rational Approach

Planning process is a rational approach to the achieving of organisational goals. An action is

rational it is objectively and intelligently decided.

For eg. before accepting the order from the clients, the organisation has to plan the feasibility of the

Planning

Controlling

Directing Staffing

Organising

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order in terms infrastructure, labour, raw material,

time period etc

d) Focus on Objectives

An organisation employs a number of persons. Each one of them has different personality and attitude.

Planning focuses on setting up organisational

objectives and suggest ways to achieve them. For eg. If 3 lakh pieces of a garment have to be

prepared in six months, planning will show the path

of how to do so.

e) Leads to Efficiency and Economy

Planning includes the efficient utilisation of various

resources like capital, labour, machines, materials

etc. An effort is made to achieve organisational goals with minimum resources. Planning helps in

controlling duplication of efforts which also ensures

economy.

f) Limiting Factors

While planning limiting factors like money,

manpower, materials, market etc. should be

considered. If these factors are ignored then planning is bound to fail. The planning should start

early after considering the availability of limiting

factors.

g) Coordination

Coordination is essential for harmonious working of the organisation. Planning coordinates the what,

who, how, why and where of planning. In absence

of planning, different segments of the organisation may pursue different objectives.

h) Flexibility

Planning process should be adaptable to the changing business environment. Planning is a

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dynamic process and it adjusts with the needs and

requirements of the situations.

i) Realistic

Planning is based on future forecasts. Thought the future is always uncertain but the prediction should

be as realistic as possible. The objectives should not

be based on wishful thinking because then it will not be possible to achieve the goals.

j) Planning in Continuous

Planning is always uncertain and subject to revision

and amendment as new facts become known. Even in execution of planning there may be a charge in

settings and conditions which will leads to alteration

of plans.

2.3 Six P’s of Planning

Planning

These six P‟s state the fundamental requirement of

Planning. These P‟s are discussed as under :–

1. Purpose

An effective planning requires a clear understanding

of the purpose of planning. The purpose of an

organisation may be to increase profit or introduce more products etc.

2. Philosophy

It starts the beliefs as to how the organisations

purpose is to be achieved. The philosophy of an organisation may be based on profitability though

quality or increasing turnover through consumer

Purpose Philosophy Promise Policies Plas Priorities

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satisfaction etc. For long term survival and growth

the philosophy must adopt ethical conduct.

3. Promise

It‟s an assessment of strengths and weakness of the organisation based on the knowledge and

assumption of environment. By knowing strength

and weakness of the organisation management can deal with changing environment in a more effective

way.

4. Policies

Policies are the general statements for the guidance of the personnel. They are guidelines and limitation

which helps in management action and thinking. An

organisation can have marketing policies, production policies, financial policies etc.

5. Plans

These are the objectives and action statements. Objectives are the goal of an organisation and

action statement are means to achieve them. Plans

guides us for reaching goals and helping in knowing

the progress at different stages.

6. Priorities

An organisationmust fix goal priorities, because the

resources of finance, materials, personnel etc. are limited and these are to be allocated as per the

priorities set. The high priority goal will have

preference for allocation of resources.

2.4 Needs for Planning

Planning is first step in management. The increased

competition, changing consumer preferences have

necessitated the need for planning. Following reasons emphasises need for planning.

1. Essential for modern business

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The growing complexities of modern business, rapid

technological changes necessitate planning not only

in current outlook but also in the future

environment.

2. Related to performance

Planning help in setting goals for each function and

for each employee. The organisation having formal planning have performed better as compared to

those where planning is not taken up as a regular

activity.

3. Focus on objective

Objectives provide a direction and all planning

decisions are directed towards achieving them. It

ensure maximum utilisation of managerial time and efforts.

4. Proper Allocation of resources

The allocation of resources has to be properly planned thus, minimising wastage and ensuring

optional utility of these resources.

5. Facilitates Control

Planning can be used to devise a Mechanism of control. There can be targets and their comparison

with actual performance on being the notice any

deviation.

6. Helpful in decision making

Some planning helps in specifying the actions to be

taken for achieving organisational objection. It serves as a basis for decision-making for the future.

7. Avoiding business failures

Through proper planning business failure chances

are considerably reduced. A bad planning may result into wastage of human oral physical resources.

2.5 Principle of Planning

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A no. of fundamental principles have been devised

over years for undertaking planning.

1. Principle of contribution to objectives

All types of plans are prepared to achieve the objectives of the organisation. Planning is used as a

means to reach the goals.

2. Principle of Primary of Planning

Planning is first function to be undertaken in any

organisation. Organisation has to plan first and then

proceed to carry out other functions.

3. Principle of Alternatives

Planning process involves developing of many

alternatives and then selecting one which will help

in achieving desired business goals. In absence of alternatives planning gets difficult.

4. Principle of Timing

Planning is useless without proper time management. Time allocation should be done before

starting the projects.

5. Principle of commitment

There should be a time frame for meeting the commitments made. This will ensure the achieving

of targets in time.

2.6 Characteristic of a Good Plan

A good plan will be that which helps in achieving

objective of an enterprise. A good plan should have

the following characteristics: _

1. Clear objective

If goals are clear then there will be no confusion or chaos. The objective should be clear, definite and

accurate.

2. Proper understanding

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A good plan is that which is well understood by

those who are to execute them.

3. Comprehensive

A good plan should cover each and every aspect of

the business for proper fulfilment of objectives.

4. Flexible

A plan should be flexible to accommodate future

uncertainties. A flexible plan will be one which will

smoothly adjust requirement of changing condition.

5. Economical

The cost evolved in planning should be as economical as possible, depending upon the

resources available with the organisation.

2.7 Types of Planning

Plans may be classified into several types: _

A. Administrative Planning & Operative Planning

Administrative planning is concerned with

determining the bases of action for a period of time for the whole business as well as for various

segments of it. These plans provide guidelines to

operational plans.

Operational planning determines the bases of action for undertaking work. These plans are related to the

actual execution of work. Operative plan are

generally for a short period of time and are prepared at lower level management.

B. Long term, medium term and short term

planning

A long term planning set long term goals for the

firm and proceeds to formulate specific plans for

attaining these goals. This planning may be for a

period of five, ten or twenty years. It generally

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deals with Manpower planning, financial resources,

Product planning etc.

Medium term planning is for two to five years.

The areas covered in medium term planning are same and for long term planning. The details of

various plans are worked out for their proper

implementation.

Short term planning is concerned with

determining short term activities to accomplish long

range results. These plans are generally for one

year period. The department like production and marketing may develop quarterly or monthly

operating results.

C. Strategic and Tactical Planning

The main objective of strategic planning is set,

strategies are advised, policies are laid down.

Planning sets the direction in which the business will grow. It keeps in view the moves of competition,

market factors, consumer preferences, life cycle of

the product etc.

Tactical plans are to support strategic plans wherein some difficulty is faced in its implementation. Any

changes in internal organisation and external

environment have to be met through tactical plans. For e.g. there is a sudden change in prices of

products difficulty in procuring raw materials etc.

are taken care through strategic planning.

D. Standing and ad-hoc planning

Standing plans are meant to be used over and over

again. They are permanent in nature. These plans

provide ready made answers to a situation. Examples of standing planning are

1. Policies

2. Procedures

3. Methods

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4. Rules.

Ad-hoc plans are generally for specific matters.

These plans are prepared only when some need

arises. Different situations require different methods of tackling them. So, ad-hoc plan for one situation

cannot be used in another situation.

2.8 Advantages of Planning

Planning is one of the crucial functions of

management. It's basic to all other functions of

management. There will not be proper organisation

and direction without proper planning. Planning is important for the following reasons: _

1. Attention on objectives

Planning helps in clearly laying down adjectives of the organisation. The whole attention of

management is given towards the achievement of

these objectives.

2. Minimising Uncertainties

Planning certainly minimises future uncertainties by

leasing its decision on past experiences and present

situation.

3. Better Utilisation of Resources

Another advantage of planning is the better

utilisation of resources of the business. All resources are put to best possible uses.

4. Economy in Operations

The operations selected being letter among possible

alternatives, there is an economy in operation. The method of trial and error is avoided and resources

are not wasted in making choices.

5. Better Coordination

The objective of the organisation being common.

Planning will lead to better coordination in the

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organisation which will ultimately lead to better

results.

6. Encourage Innovation and creativity

Planning helps innovative and creative thinking among planners because they will think many new

things while planning.

7. Management by Exception Possible

Management by exception means that management

should not be involved in each and every activity.

By the introduction of Management by exception,

Managers are given more time for planning the activities rather than washing their time in directing

day-to-day work.

8. Facilitate Delegation

Under planning process, delegation of powers of

authority is facilitated through planning process.

2.9 Limitation of Planning

Every coin has two faces. Similarly despite of many advantages there are certain disadvantages of

planning which are mentioned as under:

1. Lack of Reliable Data

Planning is leased on various facts and figures

supplied to the planners. If the data on which

decision are based are not reliable then decision based on such information will also be unreliable.

2. Time Consuming Process

Practical utility of planning is sometime reduced by

the time factor. Under certain circumstances an urgent action is needed then one can't wait for the

planning process to complete.

3. Expensive

Planning process is very expensive. The gathering of

information and testing of various courses of action

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involve greater amount of money. The utility

derived from planning in no case should be less than

expenditure incurred on it.

4. External Factors may reduce utility

Beside internal factors there are external factors too

which adversely affect planning. They may be

economic, social, political, technological or legal.

5. Sudden Emergencies

In case certain emergencies arise then the needs of the hour is quick action and not advance planning.

These situations may not be anticipated in planning.

6. Resistance to Change

Most of the persons, generally don't like any

change. Their passive outlook to new Ideas

becomes a limitation to planning.

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Lesson 3: Coordination

Objective

The objective of this lesson is to introduce

students to the principles and process of coordination.

Structure

3.0 Introduction

3.1 Definitions 3.2 Principle of Co-ordination

3.3 Process of Coordination

3.0 Introduction:

Coordination refers to the process of clubbing all the

activities or synchronising activities of various persons in an organisation in order to achieve the

set target.

It is a source of creating mental awareness amongst all the employees and their efforts are directed in

unison.

3.1 Definitions:

1. Henry Fayol: "To coordinate is to harmonise all the activities of a person in order to facilitate its

working and its success."

According to this definition it is concluded that Co-ordination is a very important aspect of

management that enables a person to improve

his functioning. It creates harmony in the

working environment

2. Ordway Tead: "Co-ordination is the effort to

assure a smooth interplay of the functions and

forces of all the different component parts of an

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organisation to the end that its purpose will be

realised with minimum of friction and maximum

of collaboration effectiveness."

According to the above mentioned definition, the main purpose of co-ordination is to balance all

the functions of various departments in order to

achieve the Organisation goals to the fullest.

3. Koontz and O' donnell: "It seems more

accurate to regard co-ordiation as the essence of

managership for the achievement of harmony of

individual efforts towards the accomplishment of group goals is the purpose of management. Each

of the managerial function is an exercise in

coordination."

3.2 Principle of Co-ordination

There are four main principles of Co-ordination as

stated by Marry Parker Follett;

a) Principle of Direct Contract: _ Miss Follet is of the opinion that Co-ordination can be achieved more

easily if there is direct horizontal relationships

and direct personal communication. There always exist a possibility of conflicts and

misunderstandings. To avoid this direct contact

and proper communication is essential.

b) Principle of Early Beginning: – Co-ordination is

easily achieved if its struggled for in the early

stages of planning and policy making. For

example, in an export house, if the senior merchandiser or the head of the production

department while forming the policies, meets

and discusses with the other heads, the question involved, a successful co-ordination is far more

likely to be achieved.

c) Principle of Reciprocal Relationship – All the factors in a situation that exists at a work place

are interrelated reciprocally. Work of one person

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is dependent on that of the other, who in turn

may be dependent on some other. In the

absence of co-ordination among any one makes

the entire work suffer

For instance, in branded companies like Nike,

Reebok, Duke, materials, finance, sales,

production will be dependent upon0 one another, and when member of such companies realise

that all factors are reciprocally related then

coordination becomes a task which is easy to

perform.

At every level of management co-ordination is

essential for achieving harmony in the individual

efforts. According to Chester Bernard, “the quality of co-ordination is the crucial factor in the survival of

organisation.”

Co-ordination is important because of the following reasons :–

a) Good Personal Relations: With the help co-

ordination, good personal relations can be built up between management and staff. Mutual

discussion may sort out various conflicts in an

organisation.

b) Unity of Direction: Co-ordination creates unity of direction. Its absence might result in conflicting

goals.

c) Essence of Management: Every organisation maintains a degree of specialisation, division of

labour and large number of individual. Every one

Good personalrelations

Unit ofDirection

Essence ofManagement

Efficiency &Economy

RetainsPersonnel

IMPORTANCE OF CO-ORDINATION

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has a different way of working, therefore it

becomes essential to synchronise the work of all

persons in the organisation.

d) Efficiency and Economy: Efficiency and economy results in from coordination. Efficiency results

only when any sort of delays and duplication is

avoided. On the whole, it saves time and energy, bringing economy to the business.

e) Helpful in Developing and Retaining of Personnel:

Co-ordination not only promotes the spirit of

team work instead it also promotes job satisfaction among employees by developing

confidence and by giving them personal

contentment.

3.3 Process of Coordination

Coordination may be achieved through following

process: _

a) Proper Planning: Planning is deciding in advance what is to be done in futures. It‟s the elementary

stage of achieving coordination. According to

Mary Follett, planning stage is the ideal time to bring about co-ordination and they must see to it

that various plans are properly interrelated.

b) Through Organisation: Co-ordination is an essential part of every organisation. In an

organisation related activities are placed

together to avoid delays and confusions. In an

Organisation authority and responsibility go hand in hand. The superior assign various

responsibilities to the subordinates well planned

activities in an organisation may lead to ultimate co-ordination.

c) Through Directing: A manager gives direction,

guidelines and instructions for doing a job that he is support to do. His direction is the way to

achievement of overall set targets.

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d) Through Controlling: It‟s the manager who needs

to have control over the overall work

performances of the subordinates. These might

be chances wherein, the subordinates do not perform as per the directions in such cases;

manager will take corrective action so as bring

the performance upto the mark. Controlling itself facilitates co-ordination since it requires the

evaluation of performance of subordinates and

enables the manager to make necessary changes

if there are deviations between standards set and results achieved.

e) Through staffing: Right job is performed or can

be performed by the right / suitable person only. So while selection, its the responsibility of the

manager to appoint right at the right job so that

staffing as a function of management helps in co-ordination.

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Summary

Management is a process through which the working

of an organisation can be streamlined by planning,

organising, coordinating, and controlling of the affairs of the organisation. It involves planning and

coordination on the part of the manager so that the

organisation can function smoothly and efficiently.

Revision Points

Concept of management

Nature and characteristics of Management

Principles of Management

Six P‟s of Planning

Characteristic of a Good Plan

Principle of Co-ordination

Process of Coordination

Key Words:

1. Management: the process by which the

functions of an organisation are coordinated.

2. Planning: It's a decision in advance; what to do,

how to do and who will do a particular task.

3. Coordination: Coordination refers to the process of clubbing all the activities or

synchronising activities of various persons in an

organisation in order to achieve the set target.

Intext Questions

1. "Explain Management"

2. Define in brief the four parts of Management

Skills.

3. What is the need for "Planning”?

4. Briefly define "Concept of Management".

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Terminal Exercises:

1. Give different characteristics of Management.

2. What do you understand by the term "planning”?

3. Explain the characteristics of planning?

4. What are the 6 "P" of planning? Explain.

5. Why is Management required in any

organisation?

Assignments

1. List the advantages of planning?

2. What is coordination? How can Co-ordination be

achieved successfully?

3. Why do you think Co-ordination is important in

management? Explain with the help of an

example.

4. Explain the process of Co-ordination.

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Unit - II

Lesson-4: Motivation

Lesson-5: Delegation of authority

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Lesson 4: Motivation

Objective

The objective of this lesson is to introduce

students to the types, importance and techniques of motivation.

Structure

4.0 Introduction

4.1 Definitions 4.2 Types of Motivation

4.3 Importance of Motivation

4.4 Techniques to Increase Motivation 4.4.1 Financial Motivators

4.4.2 Non-Financial Motivators

4.0 Introduction:

Motivation is an important factor which encourages

human being to give there best performance and

helps them in attaining their goals. Motivation is an inner feeling which energies a person to work more.

It helps to activate the unused energizes a person

by channelising them into positive actions

4.1 Definitions

Motivation has been defined by various scholars as

follows

Dubin : “Motivation is the complex of forces started and keeping a person at work in an organization

Vanu : “Motivation implies any emotion or desire

which so conditions one‟s will that the individual is

properly bad into action

Lillis: “It is the stimulation of any emotion or desire

operating upon one‟s will and promoting or driving it

to action

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Every organisation aims to increase its profits and

excel in the market. To achieve these objectives

from its employees, the Organisation needs to

inspire and encourage workers to perform better and use their capabilities and capacities to the

fullest. Let‟s take an example of an export house; a

Manager who wants to achieve his targets in a limited time period. To do so, he needs full co-

operation from his team. He needs instil enthusiasm

among team members to accomplish the assigned task. He can do so by using positive or negative

methods to motivate them as discussed under:–

4.2

1. Positive Motivation: Positive motivation is based on rewards. The workers are offered

benefits for achieving the desired goals. The

benefits may be in the form of more pay, promotion, better reports etc. The want of all

these additional benefits makes the workers

happy and they want to improve their performance. Thus the targets are achieved with

full support of workers and administration in a

peaceful manner.

2. Negative Motivation: Negative motivation is based on force or fear. Employees are given

threats and forced to work more. In case, they

do not act accordingly they may be punished with demotions, extra time or even losing the

jobs. This prevails fear and employees do not co-

operate willingly. Though they work upto a level where punishment is avoided but this type of

Positive Motivation(Promotion, Salary raise, better reports

insurance, bonus etc.)

TYPES OF MOTIVATION

Negative Motivation(Fear, threat, punishment)

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motivation causes anger and frustration. It

becomes a cause for social evils. Inspite of the

drawbacks of negative motivation, this method is

commonly used to achieve desired results.

4.3 Importance of Motivation

Every organisation wants to maximise its output.

This is possible only when all the employees co-operates and give in this best effort. The following is

the importance of motivation.

1. High performance: - Positively Motivated

Employees will put Maximum efforts for achieving organisation goals. The unused

physical and mental abilities are used to the

maximum. Better performance will also result in Higher productivity.

2. Low Employee Turnover And Absenteeism: -

When the employees are not satisfied with their

job then they will leave it whenever they get an alternative of for the dissatisfaction among

employees costs high to the organisation when

the employees are satisfied with their jobs and they are will motivated from time to time by

offering them financial and non financial

incentives then the loyalty towards organisation increases. The rate of absenteeism will also be

law because they will try to increase their output.

3. Better Organisation Image:- The organisation

which offer better Monetary facilities to their employees have a letter image in the market.

Such concerns are successful in attracting letter

qualified and experienced professionals the high quality manpower the will help to further

improve the performance of the organisation.

4. Better Industrial Relations: - A good motivating system will create job satisfaction

among employees and employers The conflicts

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would be discouraged and cordial relations

among both sides will create a positive

atmosphere. It will lead to healthy competition

and better industrial relations.

4.4 Techniques to Increase Motivation

Every management tries to specify certain

motivational techniques specify certain motivational techniques which can be employed for improving

performance of its employees

4.4.1 Financial Motivators

Financial motivators may be in the form of more

wages and salaries, bonuses, profit sharing, leave

with pay, medical insurance, life insurance etc. The economists and most of the managements consider

financial incentives as important motivators.

Motivation in terms of salary / wages increase is must to retain people in the organisation.

4.4.2 Non-Financial Motivators

Financial Motivators

MOTIVATIONAL TECHNIQUES

Non-financial Motivators

Bonus Recognition

Project Sharing Participation

Insurance Competition

Higher Salary Job Enrichment

Leave with pay Status

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The motivators are in the nature of better status,

recognition, job security etc. some of these are

discussed below:

1. Recognition:- Error! Bookmark not defined.Recognition may be in terms of world of

praise, a better of appreciation, entry into annual

confidential meeting etc. There can also be awards certificates, trophies etc. The recognition

may be for better output, saving the time,

improving quality of products, effective solutions

etc. All these types of recognitions will act as motivators. If the performance of the workers is

not recognised and everyone is treated on the

same footing then potential minds will not try to put their best efforts

2. Participation:–Participation means physical and

mental involvement of people in decision making process. It uplifts ego and confidence of workers.

The feel important when asked to make

suggestions in these fields of activity.

Participation gives a sense of responsibility and accomplishment. Managers should encourage

subordinates to participate in open discussions

prior to decision making

3. Competition:– In some organisations

competition is used as a motivator various

employees are given certain objectives and everybody tries to achieve them ahead of others.

There may be praises, appreciation letters,

financial incentives etc. to these who reach the

goals effectively and efficiently. The competition encourages to improve performances

4. Job Enrichment: – Job enrichment has been

recognised as an important motivator by various researchers. The job is made more challenging

for the workers by giving the freedom in deciding

about their work methods. The employees are

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also asked to perform the functions of planning

and control. The employee is given the dealings

and quality standards he must meet. Within this

framework he is given a free hand to decide and perform the work. It brings more job satisfaction

and innovations in working styles

5. Status: – A management may create some status symbols in the organisation. This can be

done by way of giving various facilities to the

employees. There may be superior furniture,

carpets, on the floor, having peons or personal assistants etc. To get these facilities a person will

have to show a certain level of performance.

When a person achieves certain facilities then he tries to get better status by working more. In

this way, status acts as a motivator.

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Lesson 5: Delegation of

Authority

Objective

The objective of this lesson is to introduce

students to the theories, characteristics and

types of delegation of authority.

Structure

5.0 Introduction

5.1 Theories of Authority

5.2 Delegation 5.2.1 Definition

5.2.2 Characteristics of Delegation

5.3 Elements of Delegation 5.4 Types of Delegation

5.5 Difficulties involved in Delegation of

Authority

5.0 Introduction:

“Authority refers to the right that is given by a

superior to the subordinate

Need for delegation of authority increases as and

when an organisation grows. The main purpose of

delegation is to make organisation possible

It has following elements:

a) There exists right in authority. This right is given

by superior to subordinate

b) The right of giving of order

c) The right of decision-making goes at par with

authority

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d) Authority influences the behaviour of the

subordinates so that right things are done at

right time

5.1 Theories of Authority

a) Formal Authority Theory: This theory states that authority originates at top level and then goes

downward through the process of delegation.

b) For example: In an Export House senior

Merchandiser has the maximum authority to look after the exports of the company after the

Director. Later the authority is delegated to the

merchandised fashion co-ordinator sampling coordinator and finally to the fashion colourist

c) Acceptance Theory: According to this theory,

acceptance of an order depends upon relative consequences, both positive as well as negative.

Either order is fully accepted, or duly unaccepted

or partially accepted. A manager may not be

sure whether his orders will be accepted or not. It is his persuasion which will ensure the

acceptance of his orders

d) Competence Theory: Personal competence of a person is something that greatest authority.

Orders may get accepted not due to formal

authority but because of personal qualities

Formal AuthorityTheory

Theories of Authority

AcceptanceTheory

CompetenceTheory

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5.2 Delegation:

Refer to the administrative process of getting things

done by others by giving them responsibility

5.2.1 Definition

Allen: “The entrustment of a part of the work, or

responsibility and authority to another, and the

creation of accountability for performance

O.S. Hines: “Delegation takes place when person guide another the right to perform work on his

behalf and in his name, and the second person

accepts a corresponding duty or obligation to do what is required of him

5.2.2 Characteristics of Delegation

1. A manager is a one who exercises full control

over the activities of the subordinates even after delegation

2. It is only the authority which is delegated and

not the responsibility

3. Only a part of authority is delegated and to

subordinates

4. When manager grants some of his powers to subordinates, delegation takes place.

5. For Delegation to exist, the person delegating

the authority himself should have that authority

i.e. a manager must possess what he wants to delegate

5.3 Elements of Delegation

There are three basic elements of delegation

i. Assignment of Responsibility

ii. Grant of Authority

iii. Creation of Accountability

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1. Assignment of Responsibility: – The first basic

step of delegation is assigning of responsibility to

the subordinates i.e. Delegation of Authority.

Herein a superior asks his subordinate to perform a task in a given point of time

2. Grant of Authority: – The delegation grants

authority to the subordinate so that the assigned task is performed. Giving responsibility without

authority is meaningless. Authority is derived

from responsibility

3. Creation of Accountability: – Accountability is the obligation of a subordinate to perform the duties

assigned to him. Delegation creates an

Obligation. After the work is assigned and authority is delegated there results accountability

which is a by-product of this process.

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5.4 Types of Delegation

There are four basic types of delegation

a) General or Specific Delegation: Delegation is said

to be general when authority is given to perform general managerial functions like planning,

Organising directing, etc.

b) On the other hand, specific delegation refers to particular functions or an assigned task

c) Formal or Informal Delegation: Every person is

automatically given authority as per his duties.

When production manager gets powers to increase production then it is a formal delegation

of authority

d) Informal delegation does not arise due to position but depending upon the circumstances.

its not because a person is assigned a task to

perform that he does it, instead, its a necessary

part of his normal work

e) Written or Unwritten Delegation: Delegation

which is done in written form i.e. through letters,

instructions, circulars, etc., whereas unwritten delegation is through connections customs etc

f) Downward or Upward Delegation: Delegation

which is from a superior to subordinate is referred to as downward delegation. Upward

delegation takes place. When a subordinate

assigns some of his tasks to his superior. This is

not very common in nature

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5.5 Difficulties involved in Delegation

of Authority

Some of the difficulties that may arise due to

attitude of either superior or subordinate or both in the process of delegation of authority may be:

1. Over Confidence of superior that he is the only

one who can do a particular work effectively than

other is the main difficulty in delegation

2. Lack of Confidence in subordinates by superiors

that subordinates are not competent to carry out

certain things of their own, his lack of confidence in the subordinates, leads to the circumstances

where superior will hesitate to delegate authority

to his subordinate

3. Lack of ability in superior: – A superior may lack

the ability to delegate authority to subordinates.

4. Lack of proper Controls: – There may not be

proper controls in the organisation which help the manager to keep in touch with performance

of subordinates

5. Inability of subordinates: – some subordinate feel shy in taking responsibility. The shyness or

fear of committing mistakes or lack of confidence

on the part of subordinates may also act as a barrier in delegation of authority.

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Summary

For an organisation to work effectively it is very

important that the people working for that

organisation are highly motivated. This unit explains the importance of motivation and how a manager

can motivate his/her staff members using different

techniques.

Along with motivation delegation of authority is also

an important tool that a manager employs to ensure

that the work is distributed evenly to all the staff

members and everybody has some measure of authority subordinates so that right things are done

at right time.

Revision Points

Importance of Motivation

Types of Motivation

Techniques to Increase Motivation

Theories of Authority

Delegation: its elements and types

Difficulties involved in Delegation of Authority

Key Words:

Motivation: Motivation is an inner feeling which

energies a person to work more.

Financial Motivation: Financial motivators may

be in the form of more wages and salaries, bonuses, profit sharing, leave with pay, medical

insurance, life insurance etc.

Authority: Authority refers to the right that is given by a superior to the subordinate.

Delegation: Refers to the administrative

process of getting things done by others by giving them responsibility

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Intext Questions

1. What is motivation? What are its 2 types?

2. Define delegation of authority.

3. Explain Non-Financial Motivators.

Terminal Exercises:

1. Define Motivation. What is the importance of

motivation?

2. Which techniques are useful to increase motivation?

3. Differentiate between various types of

delegation.

4. What is positive Motivation?

5. What is negative motivation?

Assignments

1. What are the kind of difficulties that a manager faces while delegation.

2. Write short notes on :–

(i) Formal Theory

(ii) Acceptance Theory

(iii) Competence Theory.

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Unit - III

Lesson 6: Departmentation

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Lesson 6: Departmentation

Objective

Students will understand the need and

significance of departmentation in this lesson.

Structure

6.0 Introduction

6.1 Need and Significance of Departments

6.2 Advantages of Departmentation 6.3 Limitations of Departmentation

6.4 Factors Influencing Assigning Of Activities

6.0 Introduction:

Organisation involves the division of work into

groups which are to be done for the achievement of

organisational goals.

Departmentation is the process of grouping various

functional activities into functional subsystems

called departments. A department is a distinct section of the organisation concerned with the

unique business activities of like nature. In words of

Allen "Department is a means of dividing a large

and monolithic functional organisation into smaller, flexible, administrative units.

6.1 Need and Significance of

Departments

A department provides a frame work for an

organisation and allows business expansion

indefinitely. Departmentation basically aims at:

i. Specialisation of activities to increase performance.

ii. To simplify management tasks.

iii. Co-ordination and control of various activities.

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6.2 Advantages of Departmentation

i. It increases the performance and efficiency of

enterprise since the activities are integrated

into workable units.

ii. It provides the criteria for standards for

performance and activities and thus ensuring

effective control.

iii. It senders the task of fixation of

accountability for results very easy since

responsibilities are clearly laid.

iv. It also allows easy management of activities and increases managerial control of

organisation.

v. Processes Involved In Departmentation

vi. To identify the task or duties.

vii. To analyse the task, identifying the output,

activities and input in the production of

product or service.

viii. Identify the tasks performed and skill

required in a given job and group similar

activities

ix. To entrust the grouped activities to the

departmental heads

x. To clearly define the responsibility and authority of departmental head.

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6.3 Limitations of Departmentation

Although departmentation is important for the

efficient running and control of a business, but these

are also have some limitations

i. Decomposing the business into several

departments makes the co-ordination of

various activities very difficult

ii. Departmentation creates difficulties of

communication among various departments

of organisation and makes planning and

control more difficult

iii. Departmentation makes the level of

management which and increases the gap

between top management and the worker and at an higher cost

6.4 Factors Influencing Assigning Of

Activities

Control Co-ordination Major Activities Specialization Local Conditions Economy

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i. Control – The main aim of departmentation

is control. Departments must be clear in their

responsibilities and authorities to provide

effective control

ii. Co-ordination – Another factor is the co-

ordination between different departments and

co-ordination within the departments. The goals of an organisation is common and

everybody should try to achieve them in their

respective fields

iii. Major Activities – There are certain activities which are very important and all

these activities should be placed in separate

divisions.

iv. Specialization – While assigning proper care

should be taken concerning the local

conditions in the department viz. individual personality, responsibilities, and the nature of

informal relationship among people.

v. Economy – Another important factor while

creating separate departments is the expense involved and economy in its operation

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Lesson 7: Communication

Objective

Students will understand the meaning,

characteristics and importance of communication in this lesson.

Structure

7.0 Introduction

7.1 Meaning and Definition 7.2 Characteristics: Nature of Communication

7.3 Elements of Communication

7.4 Need or purpose of Communication 7.5 Importance of Communication

7.0 Introduction

This is one of the most important factors of management, nothing will happen until

communication takes place. Without communication

we cannot survive or make coordinated efforts. It is a medium by which we express ourselves,

understand others and make ourselves understood.

In every management activity 75 to 90 percent of

working time of managers goes by communicating with others. We can say that poor managers are

poor communicators.

7.1 Meaning and Definition:

The word communication has been derived from

Latin word „Communes‟ which means common when

we communicate we are trying to share information;

an idea or the attitude. The essence of communication is getting the “RECEIVER” and

“SENDER” termed together for a particular signifies

imparting, conveying or exchange of ideas, knowledge whether by speech, writing or signs.

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COMMUNICATION

Imparting, conveying or

exchange of Ideas/know

Speech Writing Signs

Definition:

In words of Keith Davis, “Communication is the

process of passing information and understanding from one person to another.

The American Management Association defines

communication as “Any behaviours that results in an exchange of meaning.

7.2 Characteristics: Nature of

Communication:

1. This involves at least two people: As mentioned communication requires minimum

two persons _ A sender and a receiver, the

sender is called communication and the receiver of the message is known as the communicatee.

One who writes, speaks or issues some

instructions is the sender and the person for

whom the communication is meant or who receives the message is the communitee.

2. Message is a must: Whenever communication

takes part a message is a must, the contents of the letter or speech, order, instructions or the

suggestions. If there is no message there is no

communication.

3. Communication may be written oral or

gestural: Communication is generally

understood as spoken or written words. It

includes everything meaning from one person to

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another e.g. - movement of lips, two man of

hands, body language, expression of eyes may

say more than written or spoken words.

4. Communication is a two way process: It involves both information and understanding. If

the receivers does not understand the message

conveyed and will not comply with it, will be termed as an incomplete communication.

5. The primary purpose is to motivate a

response: For any job which needs good results

and high targets, drafted words with effective communication can motivate the receiver.

6. Communication may be Formal or Informal:

Formal communication is one where the information flows from Top level to bottom level

for eg : from senior merchandises of an export

house to fashion coordinator, to fabric analyst to colourist, to sampling co-ordinator. In an

informal communication it flows between the

members and not through the proper channel

just by working together.

7. Communication flows up and down and also

from side to side: Communication has a

process like information flow from superior to subordinate and from subordinate to the superior

or from the colleague to another of the same

level.

8. It is an integral part of the process of

exchange: It refers to the exchange of ideas,

feelings, emotions and knowledge and

information between two or more persons.

7.3 Elements of Communication

The basic elements of communication are: _

1. Communicator: _ The sender, speaker who intends to convey some message.

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2. Communicate: _ The one who receives the

message.

3. Message: _ The content/subject matter of the

speech.

4. Communication Channel: The media by which

communication is transcripted from sender to

receiver, it is a link between the two or many or masses.

5. Response or Feedback: To evaluate about the

feedback from the receiver, back to the sender.

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7.4 Need or purpose of Communication:

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The main purpose of communication is to effect

change in someone i.e., to influence action or to

secure inaction in the overall interest of an

enterprise. It enables us to understand others to make ourselves understood. Without communication

we cannot live or work together in an organised

way. It is a flux that binds people together in an organisation. The basic purpose of communication is

to facilitate and lubricate the organisation. It helps

management in planning effectively and controlling

efficiently. John G. Clover has outlined the following important purposes of communication.

1. To keep employees informed.

2. To provide employees with orders and instructions in connection with their duties.

3. To solicit information from employees which may

aid management.

4. To make each employee interested in his

respective job and in the work of the company as

a whole.

5. To express management's interest in its personnel.

6. To reduce or prevent labour turnover.

7. To install each employee with personal pride in being a member of the company.

7.5 Importance of Communication

Communication is one of the most important

functions of management. The success of enterprises depends upon the effectiveness of

communication. It is said to be the nervous system

of an enterprise. Nothing happens in management until communication takes place. Every manager

must communicate in order to get things done

through others. It has been established that managers spend about 75 per cent to 95 per cent of

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their working time in communicating with others.

Communication is indispensable for all managerial

activities such as organising, planning, directing,

motivating and controlling. Its importance has been highlighted by Alvin Dodd, the then President of the

American Management Association, when he

remarked. "The No. 1 management problem today is communication."

In the opinion of Chester Bernard, the first

executive function is to develop and maintain a

system of communication, "Further he has called communication as the foundation of co-operative

group activity. Nobert Wiener has rightly said that,

"Communication is the cement that makes organisations."

"Whether we are considering a church, a family, a

scout troop or a business enterprise, the transfer of information from one individual to another is

absolutely essential. It means by which behaviour is

modified, change is effected information is made

productive and goals are achieved" _ Koontz and O'Donnell.

According to O'Donnell, "the achievement of

enterprise goals is of paramount importance and the communication is one of the important tools

available to the manager in seeking to attain them."

In the words of George R. Terry, It serves as the lubricant, fostering for the smooth operations of

management process."

The importance of communication can be judged

from the following:

1. Basis of Decision Making and Planning.

Communication is essential for decision-making

and planning. It enables the management to secure information without which it may not be

possible to take any decision. The quality of

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managerial decision depends upon the quality of

communication. Further, the decisions and plans

of the management need to be communicated to

the subordinates. Without effective communication, it may not be possible to issue

instructions and orders. Effective communication

helps in proper implementation of plans and policies of the management.

2. Smooth and Efficient Working of an

Organisation. In the words of George R. Terry,

"It serves as the lubricant, fostering for the smooth operations of management process."

Communication makes possible the smooth and

efficient working of an enterprise. It is only through communication that the management

changes and regulates the actions of the

subordinates in the desired direction.

3. Facilities Co-ordination. Management is the

art of getting things done through others and

this objective of management cannot be

achieved unless there is unity of purpose and harmony of effort. Communication through

exchange of ideas and information helps to bring

about unity of action in the pursuit of common purpose. It binds the people and facilities co-

ordination.

4. Increase Managerial Efficiency. Effective communication increases managerial efficiency.

It is rightly said that nothing happens in

management until communication takes place.

The efficiency of a manager depends upon his ability to communicate effectively with members

of his organisation. It is only through

communication that management conveys its goals and desires, issues instructions and orders,

allocates jobs and responsibility and evaluates

performance of subordinates.

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Summary

When the size of an organisation grows beyond a

certain number then it becomes necessary to create

departments in that organisation, so that the work can be divided into smaller, flexible, administrative

units.

The creation of departments leads to the necessity of facilitating communication between the

departments as well as individuals within the

department so that ideas and solutions can be

effectively exchanged.

Revision Points

Need and Significance of Departments

Advantages of Departmentation

Limitations of Departmentation

Factors Influencing Assigning Of Activities

Nature of Communication

Elements of Communication

Need or purpose of Communication

Key Words:

Departmentation: it is the process of grouping various functional activities into functional

subsystems called departments.

Communication: It is a medium by which we

express ourselves, understand others and make ourselves understood.

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Intext Questions

1. What do you understand by the term

Departmentation?

2. What is the need and significance of Departmentation?

3. What do you understand by word

"Communication”?

4. Describe formal and informal communication.

Terminal Exercises:

1. What are the different processes involved in

Departmentation ?

2. Why do we need to communicate?

Assignments

1. What are the factors influencing assigning of activities in Departmentation.

2. How are the terms "Receiver and Senders"

important while communicating?

3. Briefly describe elements of good

communication.

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Unit IV

Lesson 8: Leadership

Lesson 9: Control

Lesson 10: Directing

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Lesson 8: Leadership

Objective

Students will understand the characteristics and

techniques of leadership in this lesson.

Structure

8.0 Introduction

8.1 Definition

8.2 Characteristics of Leadership 8.3 Leadership Functions

8.4 Importance of Leadership in Management

8.5 Techniques of Effective Leadership

8.0 Introduction

Leadership is an important element of directing

functions of an organisation. Whenever there is an organised group of people working towards a

common goal, some type of leadership becomes

essential. Every time needs to have a leader to guide them, unite them and to encourage them, so

that the team can accomplish its goals. To be a

successful leader a manager must possess the

qualities of foresight, drive, initiative, self confidence and personal integrity. Different

situations may demand different types of

leaderships.

8.1 Definitions:

"Leadership" has been defined in various ways. The

definition given by some famous authors and

management experts are given below: _

Koontz and O’Donnell: "Leadership is the ability

of a manager to induce subordinates to work with

confidence and zeal."

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Dubin, R: "Leadership is the exercise of authority

and making of decisions".

George R Terry: "Leadership is the activity of

influencing people to strive willingly for group objectives."

In the above definitions of leadership the emphasis

is on the capacity of an individual to influences and direct the team towards the achievement of

organisational goals. Thus, we can say that

leadership is the practice of influence that

stimulates subordinates or followers to do their best towards the achievement of desired goals.

8.2 Characteristics of Leadership:

1. Leadership is a personal quality.

2. It exists only with followers. If there are no

followers, there is no leadership.

3. It is the willingness of people to follow that

makes person a leader.

4. Leadership is a process of influence. A leader

must be able to influence the behaviour attitude

and beliefs of his followers.

5. It exists for the realization of common goals.

6. It involves willingness to accept complete

responsibility in all good and bad situations.

7. Leadership styles do change under different

situations.

8. Leadership is guiding, encouraging and uniting

followers towards common goals.

8.3 Leadership Functions: _

Following are the important functions of a leader:

1. Setting Goals: A leader is expected to perform creative functions of laying out goals and policies

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to persuade the subordinates to work with zeal

and confidence.

2. Organising: The second function of a leader is

to create and shape the organisation on scientific lines. By assigning roles appropriate to individual

abilities, with the view to make its various

components to operate sensibly, the leader play important role towards the achievement of

enterprise goals.

3. Initiating Action: The next function of a leader

is take the initiative in all matters of interest to the group. He should not depend upon others for

decisions and judgement. He should come up

with new ideas and his decisions should reflect original thinking.

4. Co-ordination: A leader has to reconcile the

interests of the individual members of the group with that of the organisation. He has to make

sure that the whole team participates actively in

realising the common goals.

5. Direction and Motivation: It is the primary function of a leader to guide and direct his group

and motivate people to do their best in the

achievement of desired goals. He should build up confidence and zeal in the work group.

6. Link between Management and Workers: A

leader works as a necessary link between the management and the workers. He interprets the

policies and programmes of the Management to

his team members and represents the team

member‟s interests and problems before the management He can prove effective only when

he can act as the true guardian of the interests

of his co-workers.

8.4 Importance of Leadership in

Management: _

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The importance of leadership can be highlighted

from the following:

1. It improves motivation and Morale: Through

dynamic leadership managers can improve motivation and morale of their team. A good

leader influences the behaviour of the team in

such a manner that they work willingly towards the achievement of organisations goals.

2. It acts as a motive power to group efforts:

Leadership serves as a motive power to group

efforts. It leads the group to a higher level of performance through its efforts and enthusiasm.

3. It acts as a help to authority: The efforts of

authority alone cannot always bring the desired results. Leadership acts as an aid to the

authority by influencing, inspiring and initiating

action.

4. It is needed at all the levels of

management: Leadership plays an important

role at all the levels of management because in

the absence of effective leadership no management can achieve the desired results.

5. It provides the basis for co-operation:

Effective leadership increases the understanding between the workers and the management and

promoters co-operation among them.

8.5 Techniques of Effective

Leadership:

The following are the techniques of effective

leadership.

1. The leader should consult the team in framing the policies and lines of action and making any

changes or improvements in it further.

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2. He should attempt to develop voluntary co-

operation from his team in realising common

objectives.

3. He should exercise authority whenever necessary to implement the policies and maintain discipline.

He should give clear and complete instructions to

his team members.

4. It should build up confidence and zeal in his

followers.

5. He should listen to his team's view, ideas and

problems and try to help them accordingly.

6. He should communicate effectively.

7. He should follow the principle of motivation.

8. He should be a supportive team member.

9. He should possess the qualities of foresight,

drive, self confidence and personal integrity.

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Lesson 9: Controlling

Objective

Students will understand the characteristics and

requirements of controlling in this lesson.

Structure

9.0 Introduction

9.1 Definition

9.2 Characteristics of Control 9.3 Requirements of a control system

9.4 Importance of Control

9.5 Limitation of Control

9.0 Introduction

Control is one of the most important managerial

functions. Control is the process of checking whether the plans are being adhered or not, keeping

a record of progress and then taking corrective

measures if there is any deviation.

9.1 Definitions:

According to Robert N. Anthony: "Management

control is the process by which manager assure that

resource are obtained and used effectively and efficiently in the accomplishment of an

organisation's objectives."

According to George R. Terry: "Controlling is determining what is being accomplished that is

evaluating the performance and if necessary,

applying correct measures so that the performance

take place accordingly to plans."

9.2 Characteristics of Control

The main characteristics of control are given below:

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1. Managerial Function: Control is an important

managerial function. On this a person is

responsible for the work assigned to him. It is

mainly function of line organisation but manager can ask data from staff personnel also.

2. Forward Looking: Control is forward looking.

Past is already gone, so it helps to take corrective measures to control future activities. A

corrective action is taken to ensure that work in

future is done in proper manner.

3. Continuous Activity: Control is regularly exercised control cannot be done in isolation.

The managers see that the subordinates should

perform according to terms and conditions which is mentioned the term in all times. So hence

controlling is a continuous activity.

4. Control is related to Planning: Planning is the first managerial function and controlling is the

last managerial function. None can be exercised

without each other. Hence both are equally

important. For example if certain things are not happening in a proper manner then corrective

measures are taken immediately, so thus

planning provides base for controlling.

5. Essence of control is Action: Immediate

action is the essence of controlling. For example

if the sales in a particular year are less than the set up target so immediate steps should be

taken to increase the sales. If no such steps are

taken then there will be lack of control.

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9.3 Requirements of a control system:

The control system is such that it should help the

organisation to achieve the desired results. Every

control system should have certain essential features which were given below: _

1. Should be easily understandable: The control

system should be easily understood by the manager as well as subordinates. The managers

and subordinates should be clear about the

controls so that it should be easily exercised.

Hence all the levels of management should be clear about the areas in which they have to

control.

2. Reflect Organisation Needs: There are number of control techniques such as budgets,

PERT, CPM, etc. All these techniques won't to

suitable for every organisation. Those best

control techniques should be used which will give best results and reflect organisation needs.

3. Report Deviation Quickly: The control should

be such that deviations in performance are reported quickly, so that whenever there is need

of corrective measures, it should not be delayed.

Quick reporting is essential for good control system.

4. Must be Appropriate and Adequate: The

control system should be such that it should help

the organisation to achieve the desired objectives. In every level of management the

control will vary. The control for production

department will vary from that of marketing department. Thus control should be appropriate

and adequate.

5. Forward Looking: Control system should be forward looking so that corrective measures can

be taken to control future activities. Control

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system should help in planning, so that

appropriate data can be provided for planning

whenever needed.

6. Must the Flexible: A good control system is that which can change according to the needs of

the future, as feature is always uncertain. A

control system should not be rigid, it should be flexible.

7. Economical: The control system should be

according to the size of the firm. In a small

concern, the control technique should be economical and in bring concern the control

technique should be costly.

8. Must Report Deviation Quickly: In a control system the deviation must be reported quickly.

The managers cannot control the past but

effective control will help them to improve the work in future. The control system should be in

such a way that the discrepancies in

performance are reported quickly and there are

no late reporting of deviations.

9. Motivating: The control system should motivate

both the controller. The performance of the

employees and the controlled. The performance of the employees should be regularly monitored

so that they should feel motivated and there is

increase in their performance.

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9.4 Importance of Control:

Control helps and guides the management to

achieve its pre-determined goals. The following are

the importance of control system.

1. Basis for Future Action: Control provide basis

for future actions. The continuous flow of

information relating to the projects helps planning to remain in right track for long ruin. It

enables the management to avoid repetition of

past mistakes.

2. Facilities Decision making: Whenever there is deviation between standard and actual

performance the control help in deciding the

future course of action. Follow up actions were also facilitated in controlling.

3. Facilities Decentralisation: Decentralisation of

authority is very important in big enterprises.

The authority cannot be delegated by the management without ensuring proper control. If

the work is going on satisfactory then top

management should not worry. Various control techniques like budgeting, cost control etc. allow

decentralisation without losing control cover

helps in co-ordination of activities.

4. Facilitates Co-ordination: Control helps in co-

ordination of activities through unity of action.

Every manager try to co-ordinate activities of his

subordinates to achieve the departmental goals.

5. Helps in Improving Efficiency: Controlling

helps in improving organisation efficiency. The

performance of each and every person is regularly monitored and any deficiency is

corrected at the earlier stage so that no problem

arises in future.

6. Psychological Pressure: Controls put

psychological pressure on persons in the

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organisation. While controlling the performance

of an individual is regularly evaluated and the

person tries to improve his previous work. The

rewards and punishments are also linked with performance.

9.5 Limitation of Control: _

Though control is very essential for better performance, but it has written limitation also.

These limitations are given below: _

1. Influence of External Factors: There may be

effective control system but sometimes external factors adversely effect the working. These

factors may be government policy, technological

change, change in fashion, etc.

2. Expensive: The control system involves huge

expenditure on its exercise. The performance of

every person is measured and reported to higher

authorities. This requires number of person to be employed for this. Thus the exercise of control

require both time and effort.

3. Lack of Satisfactory Standards: In control there is lack of satisfactory standards.

Sometimes it is difficult to fix standards for

activities like public relation, research, etc. and due to which evaluation of work of person

becomes difficult.

4. Opposition from subordinates: In control,

there is increase in the pressure of work on subordinates as their performance is regularly

monitored and evaluated. These factors lead to

opposition of controls by subordinates.

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Lesson 10: Directing

Objective

Students will understand the nature, elements

and significance of direction in this lesson.

Structure

10.0 Introduction

10.1 Definition

10.2 Nature or Characteristics of Direction 10.3 Elements of Direction

10.4 Importance of Directing

10.0 Introduction:

Management is the art of getting things done

through others. Directing is related to carry out things in the desired manner. Direction is called

management in action.

10.1 Definition

1. According to Massie: "Directing concern the total manner in which a manager influences the action

of subordinates. It is the final action of manager

in getting others to act after all preparation has been completed."

2. According to Koont and O'Donnel: Directing is

the inter personal aspect of managing by which subordinates or led to understand and contribute

effectively and efficiently to the attainment of

enterprise's objectives.

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10.2 Nature or Characteristics of

Direction:

a) It is a dynamic functions and continuous process.

b) Directing initiates organised and planned action and ensures effective performance by

subordinates.

c) It provides necessary linkage between various

managerial functions like planning organising, staffing & controlling.

d) It is a universal function i.e. it is performed in all

organisations and at all levels of management.

e) It creates co-operation and harmony among the

members of the group.

10.3 Elements of Direction

a) Issuing Orders & Instructions: It‟s the manager

who is issued orders and instructions to his

subordinates. Instructions are important as they reflect the decisions of managers.

b) Leadership: Leader is a one who influences the

work of others. A leader is one step a head of

others. It is the ability to build up confidence and zeal among people and to create an urge in them

to be led.

c) Communication: It is the only means by which ideas can be shared in common. The word

communication has been derived from the latin

word “Communis” which means “Common”.

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10.4 Importance of Directing

The importance of directing can be discussed under

the following heads:–

1. It initiates action – Direction: – Initiates Action. Managerial functions like planning organising

staffing etc. Can all be brought into action

through directing.

2. Increase Efficiency: By using various skills of

direction i.e. motivation, communication and

leadership, the efficiency of employees can be

revised through writing co-operation.

3. Gives a Dynamic Environment to the business:

Direction makes the organisation dynamic and

responsive to new drastic and sudden developments.

4. Provides stability: – Directing helps the

organisation to attain stability and also helps the

organisation to exist for longer period.

5. Assist Co-ordination :– Individual efforts are co-

ordinated with the help of direction.

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Summary

An organisation with many departments and units

can only function well if it is guided by an able

leader. A leader will employ control and direction to help an organisation to achieve its goals by

managing its people and resources effectively.

Revision Points

Characteristics of Leadership

Importance of Leadership in Management

Characteristics of Control

Requirements of a control system

Nature or Characteristics of Direction

Elements of Direction

Key Words:

Leadership: it is the ability of a manager to induce subordinates to work with confidence and

zeal.

Control: Management control is the process by which manager assure that resource are

obtained and used effectively and efficiently in

the accomplishment of an organisation's objectives

Direction: Direction is called management in

action.

Intext Questions

1. Explain the meaning of the term leadership?

2. What are the various techniques of effective

leadership?

3. Define controlling. What are the characteristics

of control?

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4. How is directing on important aspect of

management?

Terminal Exercises:

1. What are the various functions of a leader?

2. Write a note on the qualities of a leader?

3. What do you understand by Directing? Explain its

nature and scope.

4. What are the limitations of control?

5. What are the requirements for an effective

control system?

Assignments

1. What do you understand by the leadership?

Discuss its important characteristics?

2. Explain the significance of leadership in management.

3. Write the importance of an efficient control

system?

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Unit V

Lesson-11: Advertising

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Lesson 11: Advertising

Objective

Students will understand the nature, elements and significance of direction in this lesson.

Structure

11.0 Introduction

11.1 Advertising Research 11.2 Types of Advertisements

11.3 Code of Ethics for Advertising

11.4 Technique of Creating an Advertisement

11.0 Introduction:

Advertisement is a powerful tool in the hands of any

organisation these days. There is a tremendous need of advertisement in present market situation

because of high competitions. Advertisement

becomes more necessary in the fashion Industry, because fashion is never static. Moreover, what is

fashionable in a particular place may not be relevant

in another. Due to this reason proper advertisement

strategy according to region and aesthetic sense there prevailing is very essential.

Through the above discussion make it very clear

that proper research is very essential before advertisement.

11.1 Advertising Research:

Following tests are used among Indian Advertising

Agencies to examine advertising effectiveness:

1. Consumer jury tests: Consumer jury test are

in which advertisements are shown to selected

number of prospective clients who are asked to rank the advertisements in order of merit.

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2. Eye movement analysis: In this test cameras

are used to track the direction of eye-movement

and the amount of time spent on different

elements of an advertisement; also to find out reactions which are reflected in the extent to

which eyes are opened.

3. Readability Studies: Readability studies involve research into the understanding and

emotional impact of words on persons with

different educational backgrounds and from

different cultures. Also word and sentence length.

4. Recognition and recall tests: Recognition and

recall tests are generally carried out in personal interviews with the help of a questionnaire. They

involve testing memory of having seen or heard

the advertisement.

5. Inquiry Tests: Inquiry tests make a free offer

of a booklet to readers or listeners who write in

for further information about the product. One of

the methods of making the offer in a coupon.

6. Split-run-tests: Such tests are meant to find

out which of two advertisements are more

effective or appealing, or offer a greater benefit. For e.g. A Magazine or paper prints one

advertisement in one half of its printing order,

and the second advertisement in the other half. Each advertisement offers the same booklet. The

number of enquiries coming in show which

advertisement has the greater pulling power.

11.2 Types of Advertisements

1. Any product can be advertised in various ways.

That can be done through print media, television,

hand bills, Road shows etc. It can be discussed in greater detail as under:

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2. Print Media: Advertisement can be done through

print media mainly in a newspaper or in a

magazine. These are the medium which reaches

the masses. Through these Print media one can reach the maximum population. It is more cost

effective to advertise in the print media.

3. Electronic Media: Electronic media or Television is an important tool for fashion advertisement.

Advertisement can be done through placing ads

on television which at a single time can reach

million of potential buyers.

4. Posters/Handbills: Posters/Handbills is also a

medium of advertising the production but it is

restricted to particular area. It locks the wider coverage but still to target a particular area. This

form of advertising is satisfied.

5. Fashion Shows: This is an excellent form of advertisement to target a particular state of

society. Potential buyers can be invited in a

fashion shows and products can be displayed

therein. This will give potential buyers to look for the product themselves.

11.3 Code of Ethics for Advertising: _

There are certain rules and regulations in terms of code of Ethics laid down which guide what should be

general set of rules and regulations which should be

kept in mind while framing an advertisement

following are the general rules of conduct in advertising:

1. Advertising should be so designed as to conform

not only to the laws but also the moral, aesthetic and religious sentiments of the country in which

it‟s published.

2. No Advertisement likely to bring advertising into contempt or disrepute should be permitted.

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Advertising should not take advantages of the

superstition or ignorance of the general public.

3. No advertisements of charms and character

reading from photographs or such other matter as will trade on the superstition of general public

shall be permitted.

4. Advertising should be truthful, avoid distorting facts and misleading the public by means of

implications and omissions. For instance, it

should not mislead the consumers by false

statements as to :

a) The character of the merchandise i.e. its

utility, materials, ingredients, origin etc.

b) The price of the merchandise, its value, its suitability of terms of purchase.

c) The services accompanying purchase,

including delivery, exchange, return, repair, upkeep etc.

d) The quantity of the value of completing goods

or the trust worthiness of statements made

by others. e) Testimonials which are fictitious or the

originals of which cannot be produced must

not be used. 1) Direct comparison with competing goods or firms

are in no circumstances permitted.

2) Vulgar, suggestive, repulsive or offensive themes or treatment should be avoided in all

advertisements.

3) No advertisement should be permitted to certain

any claim so exaggerated as to lead inevitably to disappointment in the mind of the public. Special

care is called for in the following cases :

a) Advertisement inviting the public to take part in lotteries or competitions such as are

permitted by law. Such advertisements

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should state clearly all the conditions for the

lottery or competition.

1) Methods of advertising designed to create

confusion in the mind of the consumer as between goods by one makes and another

makes are unfair and should not be used. Such

methods may consist in: _

a) The initiation of the trademark or name of

competition or the packaging or labelling of

goods.

b) The imitation of advertising devices, copy,

layouts, or slogans.

1. No advertisement should offer to refund money

paid.

2. The use of National Emblems is prohibited by law

in advertisement, trademarks etc. Also the

picture of Mahatma Gandhi, the President, the Vice-President and the Prime -Minister of India is

forbidden in such advertisements, trademarks

etc. This rule doesn't apply to advertising of

books, Films or other items in which these persons form the chief subjects.

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11.4 Technique of Creating an

Advertisement

Latch on to the power of simple words. Appeal to

the emotions by employing words that will provide some kind of benefit to the listener and if it's an ego

benefit, so much the better. `You are correct in

every repeat' runs it a close second. Some of the

most persuasive words that are used in advertisement are:

1. You: The most influential word you'll ever speak

both to an audience and to an individual. Equally an individual's some is the most important noun

ever devised. Use it and use it often.

2. Free: Gaining something for nothing is the desire of everyone on the planet. Also freedom,

as in freedom from problems is equally emotive.

3. Simple: Once you realize that the human race is

fundamentally lazy, this word offers acknowledgement of their laziness.

4. New: Think of rush to buy the new-letter

registered cars every August, plus the benefits gained form owning the vehicle, and the value of

`new' is obvious.

5. Discover: It takes just a minute to discover how useful this product will be. How often have you

been persuaded to buy when presented with

such a statement? The words bring out the

explorer in all of us.

6. Guaranteed: A very powerful word, indeed,

once you qualify it by spelling out the benefit of

the results to the listener.

7. Safe: This implies no risk, and therefore projects

a sense of security. Like reliable, the word

carries overtones of dependability.

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8. Save: Everyone likes the notion of saving:

Saving time, saving money, saving worry.

By following these simple techniques one can make

advertisement more effective.

Advertisement is a powerful tool in the hands of

manufacturers but the only thing is one should have

proper knowledge of how to use this powerful tools.

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Summary

Advertisement is a powerful tool in the hands of any

organisation for increasing the sale of their goods

and services. It should be done only after careful research of the target market, through the print,

electronic and similar mediums.

Revision Points

Advertising Research

Types of Advertisements

Technique of Creating an Advertisement

Key Words:

Advertisement: a form of commercial mass

communication designed to promote the sale of a

product or service, or a message on behalf of an

institution.

Advertising Media: the various mediums such

as print, electronic etc, which can be used for the

purpose of advertising.

Code of Ethics: rules and regulations laid down

which should be kept in mind while framing an

advertisement.

Intext Questions

1. What is advertising?

2. Explain the following mediums of advertising:

Print

Electronic

Other

Terminal Exercises:

1. How Research is done in order to result the best

available advertisement?

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2. What "Code of Ethics" should be followed while

forming an advertisement?

Assignments

1. What are various types of advertisement option available?

2. What are various techniques to make

advertisement more catchy?