1. 1

2. MANAGE MEN T2 3. Unit I3 4. DEFINITION Management in all business and organizationalactivities is the act of coordinating the efforts of people to accomplish desired goals and objectives using available resources efficiently and effectively. - Wikipedia Art of getting things done through people Mary Parker Follet4 5. MANAGEMENT FUNCTIONS5 6. Planning It is the basic function of management. It deals withchalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. It is looking ahead and preparing for the future. This is done at all levels of management.6 7. Organizing According to Henry Fayol, To organize a business is toprovide it with everything useful or its functioning i.e. raw material, tools, capital and personnel. It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals.7 8. Staffing* The main purpose of staffing is to put right man onright job i.e. square pegs in square holes and round pegs in round holes. Staffing is considered as an on going responsibility in management.8 9. Directing Directionis that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Directing involves communication, leadership and motivation.9 10. Controlling It implies measurement of accomplishment againstthe standards and correction of deviation if any to ensure achievement of organizational goals.10 11. Role of a Manager Figurehead Leader Liaison Monitor Disseminator Spokesman 11 12. Role of a Manager (continue..) Entrepreneur Disturbance handler Resource Allocator Negotiator12 13. Levels of Management Although all managers are supposed toperform the basic functions (POSDCORB), generally there are three levels of managers First Line (Front Line), Middle and Top. This classification is done based on the responsibilities entrusted to them. (See page No.6) 13 14. Management & Administration There are two views to this. First, propounded byManagement writers like Sheldon, Spriegal and Milward Administration involves thinking. It is a top level function which centers around the determination of plans, policies and objectives of the business enterprise. Management involves doing which involves execution and direction of policies and operation.14 15. Management & view (E.F.L.Brech et al), Administration According to second Management is a comprehensive term embracing all the basic functions. Administration is only a branch of management which encompasses two of its function planning & controlling. According to this view, the function of management can be divided into Administration & Operations15 16. Distinction between Co-ordination and Co-operation Members in a group are expected to show theirvoluntary willingness to work together for certain common goal this is co-operation. Giving direction to all members of a group to apply the right amount of effort at the right place, at the right time is co-ordination. Thus co-ordination is superior in order of importance to co-operation. (Page 177)16 17. Distinction between Co-ordination and Control Control is direct intervention in the operations of anenterprise to ensure conformity with organizational goals. Co-ordination provides the appropriate linkage between different task units within the organization. It is associated with integrating activities dispersed across the enterprise and is less direct, economical and has a longer time span of control.17 18. Need for Co-ordination (because of the following reasons) Division of Labor Interdependence of Units Individual interests versusOrganizational interests (Page 177)18 19. Requisites for excellent Coordination 1. Direct Contact 2. Early Start 3. Continuity 4. Dynamism 5. Clear-cut Objective (Page 179) 19 20. 6. Simplified Organization 7. Clear Definition of Authority andResponsibility 8. Effective Communication 9. Effective Leadership and Supervision20 21. Types of Co-ordination INTERNAL: Co-ordination among the employees of thesame department or sections is called internal coordination. EXTERNAL: Co-ordination with suppliers, distributors, government and other outsiders with whom the enterprise has business connections is called external co-ordination21 22. VERTICAL: This is what exists within a departmentwhere the departmental head is called upon to coordinate the activities. HORIZONTAL: This takes place sideways. Horizontal coordination exists between different functional units like production, sales, purchase, finance, personnel etc.22 23. Organizational Behavior about human The study and application of knowledge behavior related to other elements of an organization like structure, technology and social systems L.M.Prasad OB is the systematic study of the actions and attitudes that people exhibit within the organization. Stephen B Robins OB is directly concerned with the understanding, predicting and controlling of human behavior in organizations. - Luthans23 24. OB is significant because it deals withmanaging work place diversity and improving ethical behavior. OB helps in defining power and authority of an individual employee vis--vis responsibilities. The status of an employee is also defined in OB.24 25. Interpersonal Communication Interpersonal communication is the process by whichpeople exchange information, feelings, and meaning through verbal and non-verbal messages: it is face-toface communication. Interpersonal communication is not just about what is actually said - the language used - but how it is said and the non-verbal messages sent through tone of voice, facial expressions, gestures and body language.25 26. Thirty years ago, a businessperson was generally hiredon the basis of technical skills. Since then, the worlds economy has moved toward service-oriented, information-focused businesses that are increasingly organized in teams. Now, Fortune 500 companies name strong interpersonal, communication and team skills as the most important criteria for success in management positions. (Buckley, Peach, & Weitzel, 1989; Kane, 1993), and employers consistently name interpersonal communication skills as crucial for success on the job (Maes, Weldy, & Icenogle, 1997).26 27. Unit II27 28. Planning Planningis the beginning of the process of management. Without planning other activities become mere activity, producing nothing but chaos. Decision Making is an integral part of planning. Planning is a continuous process monitoring the conditions within and outside the organization. It is said that a plan must be flexible able to adapt to changing situations without undue cost.28 29. Importance of Planning Minimizes Risk and Uncertainty Leads to success FocusesAttention Organization's goals Facilitates Control Trains Executivesonthe29 30. Types of Plans In a large corporate structure, there are various typesof plans that are arranged in a hierarchy within the organization. Plans at each level have to be consistent with and contributive to the achievement of plans above them.30 31. Types of Plans (continue..) Vision Mission Objectives (refer page No.61 to 63)31 32. Steps in Planning 1. Establish verifiable Goals or set Goalsto be Achieved. 2. Establish Planning premise (basis) 3. Deciding time of Planning Period 4. Finding alternative courses of action32 33. Steps in Planning (continue..) 5. Evaluating and selecting a course ofaction 6. Developing Derivative Plans 7. Establishing and Deploying Action Plans 8. Measuring and Controlling the Progress 33 34. Decision Making Decision making can be regarded as the cognitiveprocess resulting in the selection of a course of action among several alternative scenarios. Wikipedia Decision making permeates through all the functions of Management and thus a key part of a Managers activities.34 35. Steps in Rational Decision-Making 1. 2. 3. 4.5. 6.7.Recognizing the problem Deciding priorities Diagnosing the problem Developing alternative solutions Measuring and comparing the consequences of alterative solutions Converting decision into effective action Follow-up35 36. Difficulties in Decision Making Non Actionable Information Un-supporting Environment Non-acceptance by Subordinates Ineffective Communication Incorrect Timing36 37. BUSINESSthe process of making statements about FORECASTING Forecasting is events whose actual outcomes (typically) have not yet been observed. Prediction is a similar, but more general term. Business forecasting provides a guide to long-term strategic planning and helps to inform decisions about scheduling of production, personnel, distribution etc.37 38. Forecasting Techniques (read text and discuss) Delphi Technique Scenario Writing Subjective Approach Time-Series Forecasting38 39. Delphi Technique TheRAND Corporation developed the Delphi Technique in the late 1960s. In the Delphi Technique, a group of experts responds to a series of questionnaires. The experts are kept apart and unaware of each other. Based on the responses of the first questionnaire, a second one more specific is prepared. This questioning, compilation and requestioning continues until the researchers have a narrow range of opinions.39 40. Scenario Writing In Scenario Writing, the forecaster generates differentoutcomes based on different starting criteria. The decision-maker then decides on the most likely outcome from the numerous scenarios presented. Scenario writing typically yields best, worst and middle options.40 41. Subjective Approach Subjective forecasting allows forecasters to predictoutcomes based on their subjective thoughts and feelings. Subjective forecasting uses brainstorming sessions to generate ideas and to solve problems casually, free from criticism and peer pressure. Subjective forecasts are subject to biases and should be viewed skeptically by decision-makers.41 42. Time-Series Forecasting Time-series forecasting is a quantitative forecastingtechnique. It measures data gathered over time to identify trends. It is often shown as an upward- or downward-sloping line to represent increasing or decreasing trends, respectively.42 43. Business Forecasting Techniques (continues) Qualitative and Judgmental Method 2. Method based on Past results 3. Method based upon Casual relationship 4. Simulation Method 1.43 44. UNIT III44 45. Organization or the state of being (a)The act of organizing ized; (b) An organized structure or (c)A business or administrative concern united nstructed for a particular end; (d)A body of administrative officials, as of a al party, a government department, etc order or system; method.organ whole; and copolitic45 46. A social unit of people that is structured andmanaged to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.46 47. Process Process of organization includes departmentalizationor segmentation of activities on the basis of some homogeneity. We can describe this differentiation and integration in terms of a seven step procedure. Please see next page.47 48. 7 Step Process 1. 2. 3. 4.5. 6. 7.Consideration of Objectives Deciding Organizational Boundaries Grouping of activities into Departments Deciding Key Departments Deciding Levels at which Decisions are Made Determine the Span of Management Setting up a Co-ordination Mechanism48 49. Principles of Organizing 1. 2. 3. 4.5. 6. 7.Objectives Specialization Span of Control Management by Exception Principle Scalar Chain Unity of Command Delegation49 50. 8. Responsibility 9. Authority 10. Efficiency11. Simplicity 12. Flexibility 13. Balance14. Unity of Direction 15. Personal Ability 16. Acceptability50 51. Departmentalization The horizontal differentiation of tasks or activities intodiscrete segments is called departmentalization. The aim is to take advantage of the division of labour specialization up to a certain limit.51 52. Organizational Structure Thetypically hierarchical arrangement of lines of autho rity, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.52 53. Organizational Chart/Structure53 54. An organization can be structured in many differentways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.54 55. Line & Staff Concepts There are three types of authorityin mostorganizations: Line, Staff and Functional. Line authority is represented by the standard chain of command that starts with the board of directors an extends down through the various levels in the hierarchy to the point where the basic activities of the organization are carried out55 56. Literally, the word staff means the stick carried in thehands for support. They are instrumental in carrying out the directions of the Line or supporting to achieve the organizational objectives. (Please refer Fig.8.2 in page No.160.) The highest level o the staff employees authority isone where he is granted functional authority.56 57. Authority It is the formal right of the superior to command andcompel his subordinates to perform a certain act. Fayol defines authority as the right to give orders and power to exact obedience. According to Herbert A. Simon, three functions of authority are as follows.57 58. It enforces obedience to norms. 2. It secures expertise in the making of decisions. 3. It permits centralization of decision making and co-ordination of activity. 1.58 59. Decentralization of Authority In the words of Henry Fayol Everything that goes toincrease the importance of subordinates role is decentralization and everything that goes to decrease the importance of subordinates role is centralization.59 60. Delegation of Authority Assigning some part of his work by aManager to his subordinates and also gives them necessary authority to make decisions within the area of their assigned duties. This downward push of authority to make decisions is called delegation of authority. 60 61. Advantages of Effective Delegation 1. 2. 3. 4. 5.Relieves the manager of his heavy workload It speeds up decision making It helps train subordinates and builds morale Serves as compensation to those employees who face the prospect of limited advancement It helps create a formal organization structure61 62. UNIT IV62 63. STAFFING It is important to have an effective and unambiguousOrganizational Structure, but more important is to fill the jobs with the right people. Staffing includes principle functions like Recruitment, Selection, Training, Compensation, Performance Appraisal etc.63 64. Importance & Nee for Proper Staffing It helps in developing talented and competent workers and help them move up the corporate ladder. 2. It ensures greater productivity by putting the most suitable person. 3. It helps to avoid a sudden disruption of an enterprise's production by planning for manpower in advance. 1.64 65. 4. It assists to prevent under-utilization of personnelthrough over manning and the resultant high cost. 5. It facilitates information to the management for internal succession of managerial personnel in the event of an unanticipated turnover.65 66. I. Man-power Planning In large organizations this function will be performedby HRM department. According Geisler, manpower planning is the process by which a firm ensures that it has the right kind of people and the right number of people at the right places at the right time, doing work for which they are economically most useful.66 67. II.Once the requirement of manpower is known, the next Recruitment process is recruitment. It can be defined as the process of identifying the sources and stimulating applications. The sources could be Ex-employees, references from present employees and others, application at the gate, educational institutions, employment agencies, advertisements, etc.67 68. III. Selection Identifying the right person or the most suitableperson for the job and inducting them to the organization is selection. Getting a pool of qualified persons for selection is the preceding step that we have seen as recruitment.68 69. Steps in Selection Procedure Job requisition form from Department Head Or Job Analysis Sorting of Applications Initial Interview Employee Tests Checking References Physical and Medical Examination Final Interview69 70. IV. Placement The process of placing the right person for the rightvacancy or job is called placement. He should not be a round peg in a square hole. Placement will become a challenge when the vacancies to be filled up are more and complex due to many reasons.70 71. Manpower Planning in India Read out text, page No.213 and discuss.71 72. V. Induction Ushering in the new employee by providing all thenecessary information is called induction. This is done with two major objectives (1) familiarizing the new employee with his new surroundings, company rules & regulations; and (2) developing in him a favorable attitude towards the company.72 73. Training - Advantages quantity of a 1. Helps in improving the quality and workers output. 2. Enables the worker to make the economical an best use of materials and machine. 3. Reduces accidents by developing effective work habits. 4. Develops a feeling among the employees that the person is being cared for and important. A definite morale-booster!73 74. 5. Reduces the rate of employee turnover and 6.7. 8.9. 10.absenteeism. Helps management to distinguish between efficient an poor workers. Facilitates promotion of workers and increases their market value and earning power. Makes the employee more loyal and inducts him/her to the culture faster. Helps to build up a pool of efficient workers. Trains the worker in indigenous and alien cultural values.74 75. Types of Training 1. 2. 3.4. 5.6.Induction or Orientation Training Promotional Training Refresher Training Corrective Training Behavioral Training Training for Global Assignments 75 76. Training Methods 1. On the Job Training Vestibule Training Apprenticeship Internship1. Simulators & Training Aids 2. Programmed Instruction76 77. Selection of Training Methods 1.2. 3. 4.5. 6.Nature of Problem Area Level of Trainees in the organization's hierarchy Ability to stimulate interest in the participants Availability of competent trainers Finance Time 77 78. Evaluation of Training & Development Contextual Factors Training Inputs Training Process Training Outcome78 79. Performance Appraisal It refers to all the formal procedures used in workingorganization to evaluate the personalities and contributions of group members. As the term denotes, performance appraisal is objective and seldom subjective.79 80. Purpose of P. Appraisal I. II. III. IV. V.Basis for job change or promotion Guide for formulating training & development Serves as a feedback to the employees Works as a motivation because employees feel that what they do is noticed Supervisors tend to look at employees more objectively80 81. VI. Provides rational foundation of increment VII. Means for evaluating the effectiveness of devices forselection and classification of workers VIII.Provides concrete record which is useful when the supervisors change IX. Helps management to align performance with organizational strategies81 82. Essentials of a good A. System 1. 2. 3.4. 5.Easily understandable, continuous and not an annual event Should have support of all the people involved Should be data-based Must be truly indicative of performance System should be standardized82 83. Open and participative 7. Focusing more on the development and growth of employees 8. Basis for continuous guidance and counseling of employees 9. System should be constantly evaluated to ensure that it is meeting its goals 6.83 84. UNIT V84 85. Control of control is to reveal the variations The main object between the Standards set & Performance and then to take necessary steps to prevent such occurrences of such variations in future. Control is checking current performance against predetermined standards contained in the plans, with a view to ensure adequate progress and satisfactory performance E.F.L Brech85 86. Steps in a Control Process A. Establishing Standards B. Measuring & Comparing actualresults against Standards C. Taking Corrective Action86 87. Essentials of effective Control System 1) Suitable 2) Timely and Forward Looking 3) Objective and Comprehensible 4) Flexible5) Economical 6) Perspective and Operational 7) Acceptable to Organizational Members87 88. 8) Reveal Expectations at Strategic Points 9) Motivate People to High Performance 10) Should not lead to Less Attention to Other aspects 11) Should be periodically Reviewed and Evaluated88 89. Control Techniques Past-oriented and future-oriented control techniques II. Market-control techniques (CT), Bureaucratic CT and Clan CT III. Old and New CT I.89 90. Leading Ability to secure desirable actions froma group of followers voluntarily without the use of coercion Alford & Beatty Leadership is the ability persuade others to seek defined objectives enthusiastically Kieth Davis90 91. Characteristics of Leadership It implies the existence of followers 2. Involves a community of interest between the leader and his followers 3. Engages an unequal distribution of authority among leaders and group members 4. It means that leadership can influence followers or subordinates in addition to being able to give their legitimate directions 1.91 92. Functions of a Leader Setting and Achieving Organizational Goals 2. Planning Operations of the Organization 3. Symbolic Figure of the Group 1.(Refer Page 344)92 93. Difference between Leader & Manageri. i.Person emerges as a LeaderLeader has some Personal Power iii. Leader focuses on People iv. Leader believes in Doing Right Things ii.Manager reaches his position by appointment ii. Manager has some Positional Power iii. Manager focuses on Systems & Procedures iv. Manger believes in doing Things Right93 94. Direction Direction means issuance of orders and leading andmotivating subordinates as they go about executing orders. Direction is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise objective Koontz & ODonnell94 95. Requirements of Effective Direction Harmony of Objectives Unity of Command Direct Supervision Efficient Communication Follow through95 96. Motivation Motivation begins with the individualfeeling certain NEEDS. These needs give a thrust to the individual toward certain goals or rewards which he perceives (rightly or wrongly) will satisfy his needs.96 97. Job Satisfaction Whena persons job fulfils his dominant needs and is consistent with his expectations and values, the job will be satisfying. It refers to an employees general attitude towards his job.97 98. Morale It is a concept that describes theattitudes of the employees collectively towards all aspects of their work the job, the company, working conditions, fellow workers, supervisors and so on. Morale essentially is a group concept. 98 99. Communication Communication means the process ofpassing information and understanding from one person to another. Allen Louis defines it as the sum of all things one person des when wants to create understanding in the minds of another. 99 100. Importance of Communication As a result of the Hawthorne experiments,it was realized for the first time that every organization structure is a social system involving the interactions of people working at different levels and proper communication among them is necessary for achieving the goal of the organization.100 101. Purpose of Communication To persuade prospective employees while Recruitments 2. During the Orientation communication is essential 3. It is needed to enable employees to perform their functions, effectively. 4. Necessary to acquaint subordinates with the evaluation (appraisal) 1.101 102. Formal Communication Much of the communication in an organization isformal. It flows in formally established channels. All orders, instructions and decisions are communicated to the subordinates through this channel. They flow in four directions Downward, Upward, Laterally and externally102 103. Informal Communication One of the structure-less communication is Grapevine. Others are Rumors etc.103 104. Communication Process104 105. 5. Necessary to teach employees about 6. 7. 8. 9. 10.personal safety Communication is necessary to project the image of the organization Helps the manager in his decision process It helps in co-ordination Promotes cooperation and industrial peace It increases managerial efficiency 105 106. Barriers to Communication 1. 2. 3.4. 5.6.Badly Expressed Message Faulty Organization Distrust of Communicator Restricting Communication Poor Retention Different Backgrounds 106 107. 7. In-group Language 8. Inattention 9. Physical Barriers 10. Poor Understanding107