Qualities Of Good
Manager(Mangment Notes )
Qualities Of Good Manager
1.Intersting and Engaging work as opposed
to routine tasks
If an employee is being asked to apply their unique talents, think
through a challenge independently and contribute original work, they’re more
likely to enjoy their workday more than if they are bored.
2. Feedback that is timely and specific
There is a big difference between an employee hearing, “You’re
doing a great job,” every now and then and hearing, “I am so glad you’re part
of my team because your attitude has helped create the positive culture we
want.” It’s best if they can hear specifically why they have made a difference.
The more details the better when it comes to feedback.
3. Being thanked
Most employees want to feel appreciated, whether they’ll admit to
it or not. It’s important to recognize and thank them for the contributions
they have made that they may feel most proud of. Managers can say things like,
“I know that you didn’t have the time or all of the resources you needed, but
you pulled the project off anyways,” or “You knew we needed to close that deal
in order to make our numbers and you came up with a way to get it done. I’m
really grateful to you. Thanks.” Once again, be specific.
4. Simple rewards
Employees enjoy recognition and rewards that are on-the-spot. Even
the smallest monetary gift can make a difference, such as a gift card with an
announcement of their achievement at a company meeting. Or, a manager could
offer the employee an afternoon off because that person has been working hard
and putting in extra hours.
5. More money if they perform better
When it comes to compensation, pay-for-performance can be highly motivational.
Employees are inspired to put out extra effort and take pride in their work
when the following is true: If I work harder, I get paid more. This situation
is far more motivating and satisfying that an employee thinking, “Oh, I’m
getting rewarded for being here another year.”
6. Having all of the resources they need
to do their job
Carroll jokes, “If an employee has a computer that is eight years old and
connects to the internet via dial up, that makes it hard for them to be
engaged.” Having the right kind of software, an ergonomic chair or even a
functioning stapler can make the difference between an employee being efficient
or just feeling frustrated.
7. Opportunities to develop their skills
Carroll points out that continuing education is essential not just to help an
employee be better at their current job, but to help them with their next role.
It boosts an employee’s morale to know that they are growing their career and
have more opportunities and higher income possible in their future.
8. Opportunities for advancement
Much like the point above, letting an employee know that there is
somewhere for them to go within the company, or eventually in their career, is
something they will likely appreciate. Managers can help set goals for their employees
and offer them guidance.
9. Their own workspace
Carroll tells the story of being on a tour of a 24-hour call
center. A manager was leading her group around. One person on the tour noticed
that there were a lot of empty desks. The manager explained that the desks were
clear because they were shared between employees on the graveyard and daytime
shifts. Someone in finance had thought of this approach for cost savings.
Carroll didn’t like this idea becase she guessed it made the employees feel like
machine parts rather than people. She found out later that the company had seen
an increase turnover rate in recent months. Why? “People like their own space,”
Carroll says. She guessed that people wanted a place to display family pictures
or store favorite snacks.
10. Support of a healthy work-life
balance
“If your kid is sick, you need to take care of your kid,” says Carroll.
Employees should not have to feel the stress of their job compounded by the
stress of having to hide their personal needs. What goes on at home affects
workers’ happiness and productivity and needs to be addressed respectfully by a
manager.
Administrative
theory of Management(Mangement Notes)
Q.1. Describe in brief the administrative theory of Management?
OR
Briefly explain the Fayol's general principles of Management.
OR
To arrange is to forecast and plan, to organize, to command, to coordinate and
to control, Discuss
OR
Discuss the contribution of Fayol to the science of Management.
Henri Fayol - Father of Mangement
Fayol
was a French mining engineer in his early thirties, but after that he switched
over to general management ans was Managing Director from 1888 to 1918. He
wrote his book General and Industrial Management in 1916 in French,
which was translated in English in 1949, only when American Management writers
came to know about his ideas.
Fayol is known as the father of management or the founder of the
classical management. Not because he was first to investigate managerial behaviour, but
because he was the first to systematize it. He was contemporary to Taylor.
Taylor was basically concerned with organizational fucntions, whereas Fayol was
interested in the total organization. It
may be noted that Taylor is known as the father of
scientific management, i.e. supervisory or lower management, while Fayol is
recognized as the father of management, i.e. the
higher management or the general management.
Division of Business Activities
According to Fayol, business activities in any organization consist of six
interdependent operations as follows:
1. Technical - activities
concerning production.
2. Commercial - activities
concerning buying, selling and exchange.
3. Financial - activities concerning
optimum use of capital.
4. Security - activities
concerning protection of property.
5. Accounting - activities
concerning final accounts, costs and statistics. And
6. Managerial - activities
concerning planning, organizing, commanding, coordinating and controlling.
According to him, the first five activities were well known and as such to
devoted his attention to the description and explanation of the managerial
activities. Also he analyzed the nature of such activities and skill
requirements, which were so far given little scattered attention by thinkers.
Universality of Management: (Elements of Management)
Fayol considered the process of management to be of universal application and
distinguished between five elements of the process. He regarded these elements
of management as the function of management, which were being performed by all
managers universally and at all the levels of organization. He divided
management functions into five parts as follows:
·
Forecasting and planning
·
Organizing
·
Command
·
Coordination
·
Control
Thus, according to Fayol, management means to forecast and
plan, to organize, to command, to co-ordinate and to control. The management
was defined as the process of performing these functions. It may be noted that
the present pattern of management functions follows broadly the lines set by
Fayol.
Fayol emphasized that management involved the application of certain skills,
which could be acquired by persons on the basis of systematic instructions and
training. Once acquired the skills could be applied to all kinds of
institutions including church, schools, political as well as industrial
organization
Basic principles of management
Q. Describe the basic principles of management?
Principles of Management
Fayol made a distinction between "elements of management" and "general
principles of management". Besides a systematic analysis of the management process and
management functions, Fayol formulated a set of fourteen principles as
guidelines for implementing the process of management.
These principles may be listed as follows:
1. Division of Work
In any organized situation, work should be divided into compact jobs to be
assigned to individuals. This applies to managerial work and non-managerial
work. Division of labour facilities specialization and improves efficiency, if
it is done within reasonable limits.
2. Authorities and Responsibility
The authority is the official right to a manager to manage people and things.
Authority of a manager goes hand in hand with the responsibility for effective
results. In other words, there should be parity or balance between authority
and responsibiliy vested in a managerial position.
3. Discipline
Discipline is defined as observance of diligence and respect for seniors and
rules and regulations. Managers as leaders of their work groups should enforce
discipline throughout the organization. Fayol declares that discipline requires
good superiors at all levels. He emphasized the need of discipline among the
personnel for the smooth running of organization. He advocated penalties to
prevent in violation.
4. Unity of Command
It means that a subordinate in an organization should be under direct
supervision of a single from whom he should get instructions and to whom be
should be accountable. In other words, every employee should have only one
boss. If a subordinate has more than one boss, to that case conflict and
condition in authority and instructions of general bosses would result.
5. Unity of Direction
Fayol advocates one head, one plan for a group of
activities having same objective. In other words, a set of activities having
the same objective should be under the direction of a single manager.
Similarly, there should be one plan of action for such a set of activities
because the objective is the same. This principle promotes smooth coordination of
activities, efforts and resources.
6. Subordination of Individual Interest to Group Interest
The collective good and common interest of the organization should prevail over
the narrow, sectional and self-interest of its members of an organization for
the welfare of both the organization and the members.
7. Remuneration of Personnel
Remuneration as well the methods of payment in an organization should be fair
so as to afford maximum satisfaction both to the organization and its
employees.
8. Centralization
According to Fayol, every thing which reduces the importance of subordinates
role is centralization and that which increases it, is decentralization. In his
opinion, the question of centralization and optimum degree in particular case.
There should be a proper combination and decentralization in an organization
based on a consideration of several internal and external factors.
9. Scalar Chain
Fayol defines the scalar chain as the chain of superiors ranging from the ultimate authority (i.e.
top authority) to the lowest ranks. It is also known as
hierarchy of management. Every communication should follow the prescribed
route, i.e. the proper channel. Authority relationships are said to be scalar
when subordinates report to their immediate superiors and when their superiors,
in turn, directly report as subordinates, to their superiors.
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10. Order
Order relates to both persons and things. It means a systematic arrangement of
materials and systematic placement of people in the organization. In material order, everything should be
in its proper place and there should be a place for everthing. For social order there should be a place
assigned to each employee, and each employee should be in the place assigned.
The right man in the right place is the ideal here.
11. Equity
Equity means combination of fairness, kindliness and justice. Equity motivates
the workers to perform their duties. Besides, it promotes a friendly atmosphere
between superiors and subordinates.
12. Stability of Tenure of Personnel
Management should strive to minimize employee turnover (i.e. changes in staff).
In other words efforts should be made to achieve relative stability and
continuity of tenure of the personnel. This could be achieved by attractive
remuneration and honourable treatment of personnel. Stability and continuity of
personnel promote teamwork, loyalty and economy.
13. Initiative
It refers to the freedom to propose a plan and execute it. Management should encourage
subordinates to take desirable initiative in thinking out plans and executing
them. Entending opportunities and freedom to contribute their best could do
this.
14. Esprit de corps
Esprit de corps means the spirit of loyalty and devotion, which unites the members
of a group or society. It is a sense of respect and belongingness to one's
organisation. This principle stresses the need for team spirit, cordial
relations, and co-operations among the personnel.
It is to be noted that Fayol made is clear that he had no intention to close
the list of principles or make them inflexible.
Critical Evaluation
Fayol's administrative or process or functional theory of management may be
evaluated as follows:
(A) Contribution of Fayol's Work
Fayol's major contribution was to identify management as a separate set of skill or functions performed
by managers in the organizations. The skills and abilities required for
effective management were stated to be dependent on the manager's positions at
different levels of organization. Fayol pointed out that administrative or
managerial skills were more essential for higher-level manager, whereas
technical skills and abilities were required more of the lower levels.
Fayol was the first thinker who emphasized, for the first time the necessity of
formal education and training in management. He was the person who provided a
set of means (i.e. planning, organizing, commanding, coordinating and controlling)
for understanding the management process. He also provided principles for
implementing this process.
He provided conceptual framework for analyzing the management process and
emphasized that management was a separate, distinct activity.
Management as a body of knowledge gained immediately from Fayol's analysis of
management skills of universal relevance and the analysis of the principles of
general management.
(B) Limitations or Weaknesses
Fayol's administrative theory of management is criticized on the following
grounds.
1. It is too formal as
Fayol divides "business activities" into six categories,
and their management into five functions and the implementation of these
functions with the help of fourteen principles.
2. Some critics call this
theory as inconsistent, vague and inadequate.
3. It does not pay
adequate attention to workers. It has pro-management bias.
4. Jernert Simon calls
Fayol's principles as proverbs, comparable to folklore and folk wisdom.
Conclusion
Inspite of several criticisms of Fayol's work, his theory of managerial functions
still exerts considerable influence on the practice of management as well as
the teaching of this subject world over.
It may be also noted that when combined together the scientific management
approach and the functional approach are called classical school or classical theory of
management or classical approach to management.
What is human relations
approach to Management?(Mangment)
Q. What is human relations approach to Management? Critically
evaluate its contribution to Management theory.
OR
Discuss the impact of Hawthorne Experiments on Management thought.
Human Relations Approach Historical Perspective
Scientific management remained concerned tithe the efficiency and productivity
of workmen at the shop floor. Fayol's functional approach to management aimed
as improving the managerial activities and performance at top level in the
organization. Between 1925, opinion of many experts was directed towards the
human element or aspect of the organization. They drew their attention from"work" emphasis to "worker" emphasis. It was
clearly felt that earlier approaches to management were incomplete and
insufficient in that there was little recognition of the importance of workers
as human beings, their attitudes, feelings, needs and requirements. In fact,
the technical approach to work methods in scientific management did not produce
durable and desirable results in all cases. Individual and group relationships
in the work place often prevented maximum benefits to be derived from planning
and standardization of work or monetary rewards offered for efficiency. Elton
Mayo is the founder of this theory.
Hawthorne Experiments
The human relations approach to management developed as a result of a series of
experiences (in all four) conducted by Elton Mayo and his associates F.J.
Reothlisherger and W.J. ****son at the Hawthrone plant of the Western Electric
Company at Chicago in United States. The Hawthrone studies were aimed at
finding out what factors really influenced the productivity and work
performance of workers. These experiments were made with respect to - different
levels of illumination in the work place changing in working conditions like
hours of work, lunches, test periods and how group norms affect group effort and
output.
Human Relations Concepts: Findings of Hawthorne Studies
The main findings of Hawthrone studies were as follows:
1. Physical environment at
work place (i.e., working conditions) do not have any material effect on the
efficiency of work.
2. Social or human
relationship influenced productivity more directly than changes in working
conditions.
3. Favourable attitudes of
workers and work-teams towards their work were more important factors
determining efficiency.
4. Fulfillment of workers
social and psychological needs have a beneficial effect on the morale and
efficiency of workers.
5. Employee groups formed
on the basis of social interactions and common interest exercised a strong
influence on workers, performance. In other words, informal organization
controlled the norms established by the groups in respect of each member's
output.
6. Workers cannot be
motivated solely by economic reward. More important motivators are job
security, recognition by superiors and freedom to take initiative and to
express their individual opinions as matters of their own concern.
Comprehensive note on Behavioural
approach to management. (Managment)
Q.2. Write a comprehensive note on Behavioural approach to management.
OR
Explain the significance of the Behavioural approach in management. What are
its main features? Discuss.
Behavioural Or Social Science Approach
Historical Perspective
The Behavioral or social science approach developed as a corollary to the human
relations approach.
Social scientists and organization theorists are of the opinion that best
results can be obtained by building theories of management and organization
based on findings of the Behavioural sciences, such as psychology, sociology,
psychiatry, economics, cultural anthropology and philosophy.
Behavioural approach reflects the findings of intensive carried out by
Behavioural scientists like Chester I Bernard, Douglas McGregor, Chris Argyris,
A.H. Maslow, Herzberg, Rensis Likert etc. many of the conclusions of the
Hawthorne studies have been reaffirmed by subsequent research studies.
Moreover, certain ideas have been refined, extended and these behaviour
scientists have highlighted other important ideas. These scientists have tried to
eliminate the exaggeration of the importance of informal relations. The focal
point of management action is the behaviour of human being in the organization
- management as a technical process only, was given up.
Behavioural scientists conduct research to answer the question. "Why a person or a
group of persons behaves or acts in a particular manner? They try in answer in
any problems faced by the managers by explaining the behaviour of the
people".
Elements Or Concepts or Features Of Behavioural Approach
The Behavioural approach concerns itself with the social and psychological
aspects of human behaviour in organization. The behaviour of members of an
organization clearly affects both its structure and its functioning as well as
the principles on which it can be managed. Behavioural researches have provided
sufficient evidence that human element is the key factor in the success are
failure of an organization. In several experiments, it has been observed that
people prefer to be consulted rather than receive order or information. Less
reliance on the use of authority is preferred.
Some of the more important elements or concepts of Behavioural approach may be
outlined as follows:
1. Individual Behaviour
Individual behaviour is closely linked with the behaviour of the group to which
he belongs. The group dictates changes in his behaviour. Individuals observe
those work standards which are prescribed by the group.
2. Informal Leadership
Informal leadership, rather than formal authority of managers is more important
for setting and enforcing group standards of performance. A a leader, a manager
may be more effective and acceptable to subordinates, if he adopts the
democratic style of leadership.
3. Participation
If the subordinates are encouraged and allowed to participate in establishing
goals, there will be positive effect on their attitude towards work. If
employees are involved in planning, designing the jobs and decision-making,
there will be least resistance to changes effected in technology and work
methods.
4. Motivation by Self-Control and Self-Development
Behavioural scientists maintain that by nature most people enjoy work and are
motivated by self-control and self-development. Managers should try to identity
and provide necessary conditions conducive to the proper and sufficient use of
human potential. The managers attitude towards human behaviour should positive.
They should know that average man is not lazy by nature. But he is ambition.
Every man likes to work and prefers to assume responsibilities. MacGregor
maintains that employees favour self-direction and self-control.
Behaviouralists believe that in place of the concept of social man the concept
of self-actualizing man would be more appropriate to explain human motivations.
Chester I Bernard pointed out that material reward is of crucial signification
only upto a definite point. The incentives of status, power, good physical
conditions opportunities of participation and good social (i.e., cultural
interrelationships) are very important.
5. Informal Organization
Behaviouralists particularly Bernard, consider informer organization as an
essential part of the formal organization. Informer organization must always be
taken into account while determining managerial behaviour.
6. General Supervision Not Close One
As regards supervision of subordinates, Behaviouralists particularly Likert,
are not in favour of close supervision. They advocate general supervision,
which tends to be associated with high productivity.
Basic Assumptions (Are Propositions) Of Behavioural Scientists
The Behavioural science approach is based on certain assumptions about man and
organization, which my be looked upon as their prepositions (statements of
opinion or judgement) also. Those may be outlined as follows
1. Organization is
socio-technical system involving people and technology as their primary
components.
2. The behaviour of the
members of an organization clearly affect both its structure and its
functioning, as well as the principles on which it can be managed.
3. Individual's behaviour
is closely linked with a greatly influenced by the behaviour of the group to
which he belongs.
4. A wide range of factors
influences work and interpersonal behaviour of people in the organization.
5. Congruence (agreement)
between organizational goals and individual goals organizations members would
be established.
6. Several individual
differences in perceptions, aspirations, needs, feelings, abilities and values
of people excite in the organization, such difference along with their changing
nature over periods of time have to be recognized.
7. Informal leadership
rather than the formal authority of supervisors is more important for increase
in employee performance.
8. Democratic leadership
style and participative managerial style encourage positive attitude of
employee towards work and faster's high moral and initiative among them.
9. By nature most people
enjoy work and are motivated by self-direction, self-control and
self-development.
10. Conflict in
organization may to some extent to inevitable and at times even desirable for
development, innovation and creativity in certain cases. Conflicts and
cooperation coexist in organizations. Conflicts are not to be suppressed, but
are to be resolved and that too not always. Coordinated in vital for
achievement of organizational goals.
The above preposition are important elements of Behavioural science thinking.
Thus the Behavioural approach represents a significant advance over the human
relations approach.
The major areas of research and analysis by the Behavioural scientists are
interaction between organizational structure, work performance and employees
behaviour, consequences of traditional, coercive controls on humans, influence
of technological advances and changes on group behaviour, human needs and
aspirations, theories of motivation and leadership, developmental aspects of
human resources, organizational behaviour aspects, group dynamics, patterns of
communication and their importance in the organization, managerial styles and
their impact on employee behaviour, organizational climate, culture and
politics, organizational development, change and conflict, organizational rules
and status, and so on.
Distinguish between Human Relations and
Behavioural approaches? (Managment)
Distinguish between Human Relations and Behavioural approaches?
OR
Distinction Between Human Relations and Behavioural Approaches
As indicated earlier, Behavioural science approach is an improvement over the
human relations thinking. This may be explained in the following ways.
1. Areas of Study
The human relations movement kept it limited to the study of psychological
needs of people, supervision styles, working conditions, interpersonal
relations, communication etc. On the other hand Behavioural scientists have
gone very far and wide in the study of organizational and managerial aspects
covering the areas as mentioned in the previous paragraph.
2. Human Nature Assumptions
Human relation theorists have made some general, unverifiable assumption about
human nature holding "social man" view. In contrast,
Behavioural scientists have understood the factual nature of individuals and of
their behaviour-holding "self-actualizing man" model.
3. Human Needs
Human relations thinkers presume that people have only social needs, whereas
the Behavioural scientists regard individuals as different from one another and
dynamic with respect to their needs and attitudes and emphasize both social and
psychological needs.
4. Organization Nature
Human relations approach believes organizations to be purely social systems,
while Behavioural science approach views organizations as socio-technical
systems which are required to accomplish a set of individual, social and
corporate (economic) goals.
5. Employee Satisfaction
Human relations theorists advocate that employees satisfaction is achieve
through economic and other incentives and then it automatically leads to higher
employee productivity. On the other hand, Behavioural scientists assert that
employee satisfaction is a matter of a set of factors including fulfillment of
social and self-actualization needs and high morale is also necessary for
achieving higher employee productivity, which is a composite thing made by
different factors including participative management.
6. Conflict Treatment
Human relation thinkers proposed that conflict, competition and disagreement is
to be avoided or should always be resolved, whereas Behavioural scientists
concede that conflict is not always bad, it may be constructive too, it is
inevitable and may not always be resolved.
7. Manager's Role
Under human relations model, manager's traditional role of controller is
modified to include responsibility for maintenance of the human system. On the
other hand, under the behavioural science model, the manager's basic role is
rather dramatically redefined and he is no longer viewed as a controller but
rather as a developer and facilitator of the performance of the socio-technical
system to which he is assigned.
8. Nature of Approaches
Human relations approach is criticized for being unscientific (i.e. vague and
simplistic and for patting forth broad conclusions having personal bias. On the
other hand, behavioural scientists have made their propositions based on
extensive researches and its sub discipline organizational behaviour also has a
strong research orientation.
Contribution
The contribution of behavioural science to management thought and practice
consists primarily of creating new insights rather than new techniques. It has
developed a useful way of thinking about the role of a manager, the nature of
organizations and the behaviour of individuals with organziations.
Management science
approach to management (Managment)
What is management science approach to management? Critically
examine it.
OR
Define management science approach and explain the characteristics of the
situation in which management science applications are usually made.
Management
Science Or Operations Research Or Approach
Quantitative Approach
A quantitative approach to management thought is known as management science or
operations approach.
"C.West Churchman. Russell Adoff and E.Leonard Arnoff" define the
management science or operations research OR approach as an application of the
scientific method to problems arising in the operation of a system and a
solving of these problems by the solving of mathematical equations representing
the system. (Introduction to Operations Research. New York Willey. 1957).
The management science approach suggests that managers can best improve their
organisation by using the scientific method and mathematical techniques to
solve operational problems.
The Beginning of the Management Science Approach
During the World War II, in Great Britain and in America, some mathematicians,
physicists and other scientists were called to help solve complex, operational
problems that existing in the military. They were able to achieve significant
technological and tactical breakthroughs. The scientists were organized into
teams that eventually became known as operations research or groups. When the
war was over the applicability of or to problems industry gradually became
apparent, particularly in the wake of new industrial technologies being put
into use or specialists were called to help managers come up with answers to
the new problems. With the invention of electronic computer system or
procedures were formalized into what is now called "management science
school" or "quantitative school".
The early or groups typically included physicists and other "hard"
scientists, who used the problem solving method known as scientific method
which involves.
(i) Observing the problem system.
(ii) Constructing a model, i.e. a generalized framework from which consequences
of changing the system can be predicted.
(iii) Deducting (inferring) from the model how the system will behave it
changes were made in existing conditions.
(iv) Testing the model by performing an experiment on the actual system to see
whether the effects of changes predicted using the model, actually occur when
the changes are made.
The Operations Research groups were very successful in using the scientific
method to solve their operational problems.
Now, the management science approach is being used in many companies in India
and other countries and applied to many diverse management problems, such as
production scheduling, plant location product packaging etc.
Characteristics of Management Science Applications
Four primary characteristics are usually present in situations in which
management science techniques are applied. These are as follows:
1. Large Number of Variables
The management problems studied is so complicated that managers need help in
analyzing a large number of variables.
2. Use of Mathematical Model
The use of mathematical models the investigate the decision situation in
typical in management science applications. Models are constructed to represent
reality and then used to determine how the real world situation might be
improved.
3. Use of a Computer
A management science application makes use of computers. There are two factors
that make computers extremely valuable to the management science analyst.
Today, managers are using such management science tools as inventory control
methods, network models and probability models as aid in decision making
process. Since management science thought is still evolving, more and more
sophisticated analytical techniques can be expected.
Critical Evaluation of Management Science Approach
Management science team presents management with an objective basis for making
a decision. Management science techniques increase the effectiveness of the
managers decision making. They are best suited analyzing quantifiable factors,
such as expenses, sales and units of production. They are used in such
activities as capital budgeting management, cash flow management, production
scheduling, development of product strategies, planning for human resource
development programmes, maintenance of optional inventory levels and aircraft
scheduling.
However, is special widespread use for many problems, management science of
today has not developed to a point where it can effectively deal with an
important aspect of the organization, that is the human side of an enterprise.
But no doubt that it has marvelously contributed to the solving of planning and
control problems and to the progress in the areas of organizing, staffing and
the leading the organisation. Anyhow some managers complain about the
complicated nature of the concepts, language and techniques of management
science, which are not readily understandable and not easily implemental. Some
other managers indicate about the drawback of management science in that if
fails to address to the psychological and Behavioural components of workplace
activities because the managers are not sufficiently involved with management
scientists at the initial level of developing decision making techniques and as
a result the later implementation of these techniques remain often
unsuccessful. There exits a lack of awareness among the management scientist
regarding the problems and constraints actually faced by the managers in
orgnanization, particularly because of their remoteness from the actual some of
the workplace activities.
Production
Management(Managment)
Define Production Management. Explain production planning and
control. Discuss briefly the various techniques of production control.
OR
What is Production Management? Discuss the functions of production, planning
and control.
OR
Define Production, Planning and Control. What are its main steps or elements?
Discuss in brief.
OR
What are Production, Planning and Control? What are its objects and advantages?
Outline the requirement of effective production control system.
Definition of Production Management
In modern competitive world, if an enterprise and master its production and
marketing, it will be able to acquire and maintain a considerable market share.
Production may be define as the conversation of the raw material into finished
goods are services through transforming process for purposes of supplying them
into the market. Thus, it is process of creation of goods and services. The
terms "production and manufacturing" are generally used as synonyms.
Production activities are vital for the survival, growth and development of
every enterprise.
Production to be successful has to be managed. Hence production management
assumed great importance in every organisation.
Some important definition of production management may be given as follows:
Elwood Buffa
Production management deals with decision-making related to production process
so that the resulting goods and services are produced according to the
specifications in the amounts and by the schedule demanded and at minimum cost.
A.W.Field
Production management is the process of planning and regulating the operations
of that part of enterprise which is responsible for actual transformation of
materials into finished products.
Major Activities of Production Management
Production management deals with manpower and physical resources and facilities
for transforming inputs into outputs. Production Management involves three
major activities or fucntions:
1. Planning of Production Inputs
It includes determining of necessary inputs including raw materials, labour,
electrical power, machines and equipments, facilities etc., required for
production work.
2. Installation of the Necessary Inputs
It includes taking decisions with regard to designing of the plant, choice of
the best machines and arrangement of other necessary facilities so that the
production work can be started.
3. Co-Ordination and Control of the Production Process
An effective production system involves co-ordination among the various
activities and affairs within the production department itself and also
integration of its activities and decisions with other departments of the
enterprise, such as finance, marketing, purchases, personnel, according and
research and development. It also includes determining the necessary sequence
of operations, preparing work schedules and assigning work to specific
employees, so as to ensure smooth production operations. Control includes
ensuring that the actual production performance meets the predetermined
production plans and goals and also providing for proper feedback for taking
corrective action.
Importance of
production management(Managment)
Describe the nature & importance of production management?
Nature and Importance of Production Management
Production management has become an important now a day that it is
treated to be a separate, independent functional area of management.
Production management has assumed its importance because of the following
reason:
1. It is the foundation for earning profits - by producing goods or services
and selling them into the market.
2. It ensures that produced goods or services are of desired quality, in
required quantity and according to time-schedules.
3. It facilitates optimum inventory level.
4. It ensures proper co-ordination and necessary control, which are required
for adequate, time and cost-conscious production.
5. It ensures coping with the changes in demands in the market and maintains
stability in the production department.
Production Planning and Control
Production Planning, Planning is deciding in advance what to do, how to do it,
when to do it, who is to do it. Then, production planning involves decision
making in various production aspects, such as designing of production plans,
programmes and goals, selection of production process, plant layout, provision
of physical facilities (like material, tools, machines, equipments etc.) and
preparation of time-schedules.
"Lawrence Bethel Observes" Production planning takes a given product
or line of products and organizes in advance the manpower materials, machines
and money required for a predetermined output in a given period of time. It
starts with a product concept capable of being manufactured, a general idea of
the process by which it can be made and a sales forecast for the descernible
future.
Production Control
Control means ensuring that actual performance meets the predetermined
standards. Then, "production control" refers to a set of steps for
verifying whether production operations occur in conformity with the production
plan adopted. It guides and directs the flow of production so that the goods of
desired quality are manufactured at the right time and it maximum possible
economic manner. It may be noted that "production control" is
frequently used synonymously with "production planning and control"
with planning being implied.
Spriegel and Lansburgh define production control as
the process of planning production in advance of operations, establishing the
exact route of each individual item, part or assembly, setting, starting and
finishing dates for each important item, assembly, and the finished products
and releasing the necessary orders as well as initiating the required follow-up
to effective the smooth functioning of the enterprise.
James Lundy says
Basically, the production control function involves the co-ordination and
integration of the factors of production for optimum efficiency. The principal
objective of production control is to facilitate the task of manufacturing and
see that everything is being done strictly in accordance with the plan. It co-ordinates
and integrates the factors of production for optimism and directs and checks
the course and progress of work.
Advantages
of production planning & control
Describe the advantages of production planning & control?
Advantages of Production Planning and Control
Production planning and control yields the following main advantages,
1. Avoidance of Rush Orders
Production is well planned and its time aspects are well controlled. Therefore,
production control reduces the number of risk-orders and overtime work on
plant.
2. Avoidance of Bottlenecks
The incomplete work does not get accumulated because production control
maintains an even flow of work.
3. Cost Reduction
Production control programmes minimizes the idleness of men and machines, keeps
in process inventories at a satisfactory level, leads to a better control of
raw materials inventory, reduces costs of storage and materials handling, helps
in maintaining quality and containing rejection and thus reduces unit cost of
production.
4. Effective Utilization of Resources
It reduces the loss of time by the workers waiting for materials and makes most
effective use of equipments.
5. Co-Ordination
It serves to co-ordinate the activities of plant and results in a concerted
effort by workmen.
6. Benefits to Workers
Adequate wages, stable employment, job Security, improved working conditions,
increased personal satisfaction, high morale.
7. Efficient Service to Customers
It ensures better service to the customers by enabling production to be
conducted in accordance with the time schedules and therefore deliveries are
made on promised dates.
Basic
functions of Marketing? (Managment)
What are the Basic functions of Marketing?
Basic Functions of Marketing
The marketing process performs certain activities as the goods or services move
from producer to consumer. Every firm does not perform all these activities or
jobs. However, any company that wants to operate its marketing system
successfully must carry them out. The following marketing tasks have been
recognized for a long time.
1. Selling
It is core of marketing. It is concerned with the persuasion of prospective
buyers to actually complete the purchase of an article. Setting pays an
important part in realizing the ultimate aim of earning profit. Selling is
enhanced by means of personal selling, advertising, publicity and sales
promotion.
2. Buying
It involves what to buy, what quality, how much, from whom, when and at, what
price. People in business buy to increase sales or to decrease costs.
Purchasing agents are much influenced by quality, service and price. The
products that the retailers buy for resale are determined by the need and
preferences of their customers.
3. Transportation
Transport is the physical means whereby goods are moved from the places where
they are produced to those they are needed for consumption. Transportation is
essential from the procurement of raw materials to the delivery of finished
products to the customers places. Marketing relies mainly on railroads, tracks,
waterways, pipelines and air transport. The type of transportation is chosen on
several consideration such as suitability, speed and cost.
4. Storage
It involves the holding of goods in proper condition from the time they are
produced until they are needed by consumers (in case of finished products) or
by the production department (in case of raw materials and stores). Storing
protects the goods from deterioration and helps in carrying over surplus for
feature consumption or use in production. Goods may be stored in various
warehouses situated at different places. Storing assumes greater importance
when production is seasonal or consumption may be seasonal. Retail firms are
called "stores".
5. Standardization and Grading
The other activities that facilitate marketing are standardization and grading.
Standardization means establishment of certain standards or specifications for
products based on intrinsic physical qualities of any commodity. This may
involved quantity (weight or size) or it may involve quality (colour, shape,
appearance, material, taste, sweetness etc). Government may also set some
standards e.g., in case of agricultural products. A standard conveys a
uniformity of the products.
"Grading means classification of standardized products into certain
well-defined classes or groups." It involves the division of products into
clauses made up of unit processing similar characteristics of size and quality.
Grading is very important for "raw material" (such as fruits and
cerials), mining products" (such as coal, iron-ore and mangenese) and
"forest products" (such as timber). Branded consumer products may
bear grade levels, - A B C.
6. Financing
It involves the use of capital to meet financial requirements of the agencies
dealing with various activities of marketing. The services of providing the
credit and money needed to meet the cost of getting merchandise into the hands
of the final user is commonly referred to as finance, function in marketing. In
marketing, finances are needed for working capital and fixed capital, which may
be secured from three sources - onward capital, bank loans and advances, and
trade credit (provided by the manufactures to wholesaler and by the wholesaler
to the retailers).
7. Risk Taking
Risk means lose due to some unforeseen circumstances in future. Risk-bearing in
marketing refers to the financial risk inherent in the ownership of goods held
for an anticipated demand, including the possible losses due to a fall in price
and the losses from spoilage, depreciation, obsolescence, fire and floods or
any other loss that may occur with the passage of time. From production of
goods to its selling stage, many risks are involved due to changes in marker
conditions, natural causes and human factors. Changes in fashions or
interventions also cause risks. Legislative measures of the government may also
cause risks.
8. Market Information
The only sound foundation, on which marketing decisions may be based, is
correct and timely market information. Right facts and information reduce the
aforesaid risks and thereby result in cost reduction. Business firms collect,
analyze and interpret facts and information from internal sources, such as
records, sales people and findings of the market research department. They also
seek facts and information from external sources, such as business
publications, government reports and commercial research firms. Retailers need
to know about sources of supply and also about customers buying motives and
buying habits. Manufacturers need to know about retailers and about advertising
media. Firms in both these groups need information about competitors activities
and about their markets. Even ultimate consumers need market information about
availability of products, their quality standards, their prices, and also about
the after-sale service facility Common sources for consumers are sales people,
media advertisements, colleagues etc.
It may be noted that in addition to the mentioned jobs, the marketing manager
is also involved in product planning, pricing of products, selection of
distribution channels, framing of marketing objectives, environmental scanning,
target market selection, market programming and developing marketing strategy.
Various stages or steps in
marketing research process. (Managment)
Describe the various stages or steps in marketing research process.
Stages or Steps in Marketing Research Process
Marketing research exercise may take many forms but systematic enquiry is a
feature common to all such forms. Being a systematic process. Though it is not
necessary that all research processes would invariably follow a given sequence,
yet marketing research aften follows a generalized pattern, which can be broken
down and studied as sequential stages stages. The various stages or steps in
the marketing research process may be discussed as follows:
1. Identification and Defining of the Problem
The market research process begins with the identification of a problem faced
by the company. The clear cut statement of problem may not be possible at the
very outset of research process because often only the symptoms of the problems
are apparent at that stage. Then, after some explanatory research, clear
definition of the problem is of crucial importance in marketing research
because such research is a costly process involving time, energy and money.
Clear definition of the problem helps the researcher in all subsequent research
efforts including setting of proper research objectives, the determination of
the techniques to be used and the extent of information to be collected. It may
be noted that the methods of explanatory research popularly in use are : survey
of secondary data, experience survey or pilot studies i.e. studies of a small
initial sample. All this is also known as preliminary investigation.
2. Statement of Research Objectives
After identifying and defining the problem with or without explanatory
research, the researcher must make a formal statement of researcher objectives.
Such objectives may be stated in qualitative or quantitative terms and
expressed as research questions, statement or hypothesis. For example, the
research objective. "To find out the extent to which sales promotion
schemes affected the sales volume" is a research objective expressed as a
statement. On the other hand, a hypothesis is a statement that can be refuted
or supported by empirical findings. The same research objective could be stated,
"To test the proposition that sales are positively affected by the sales
promotion schemes undertaken this winter." Example of another hypothesis
may be. "The new packaging pattern has resulted in increase in sales and
profit." Once the objective or the hypothesis are developed, the
researcher is ready to choose the research design.
3. Planning the Research Design or Designing the Research Study
After defining the research problem and deciding the objectives, the research
design must be developed. A research design is a master plan specifying the
procedure for collecting and analyzing the needed information. It represents a
framework for the research plan of action. The objectives of the study are
included in the research design to ensure that data collected are relevant to
the objectives. At this stage, the researcher should also determine the type of
sources of information needed, the data collection method (e.g. survey or
interview), the sampling methodology and the timing and possible costs of
research.
4. Planning the Sample
Sampling involves procedures that use a small number of items or parts of the
population (total items) to take conclusion regarding the population. Important
questions in this regard are; who is to be sampled as a rightly representative
lot? Which is the target - population? What should be the sample size - how
large or how small? How to select the various units to make up the sample?
5. Data Collection
The collection of data relates to the gathering of facts to be used in solving
the problem. Hence, methods of marketing research are essentially methods of
data collection. Data can be secondary, i.e. collected from concerned reports,
magazines and other periodicals, especially written articles, government
publications, company publications, books etc. Data can be primary i.e.
collected from the original base through empirical research by means of various
tools. There can be broadly two types of sources - (i) Internal sources -
existing within the firm itself, such as accounting data, salesmen's reports
etc. (ii) External sources - outside the firm.
6. Data Processing and Analysis
Once data have been collected these have to be converted into a format that
will suggest answer to the initially identified and defined problem. Data
processing begins with the editing of data and its coding. Editing involves
inspecting the data collection - forms for omission, legibility and consistency
in classification. Before tabulation, responses need to be classified into
meaningful categories. The rules for categorizing, recording and transferring
the data to "date storage media" are called codes. This coding
process facilities the manual or computer tabulation. If computer analysis is
being used the data can be key-product and verified.
7. Formulating Conclusions, Preparing and Processing the Report
The final stage in the marketing research process is that of interpreting the
information and drawing conclusion for use in managerial decision. The research
report should clearly and effectively communicate the research findings and
need not include complicated statement about the technical aspect of the study
and research methods. Often the management is not interested in details of
research design and statistical analysis but instead in the concrete findings
of the research. If need to the researcher may bring out his appropriate
recommendation or suggestions in the matter. Researchers must make the
presentation technically accurate, understandable and useful
Management
by Objectives?(Managment)
What do you mean by Management by Objectives? Explain the
goal-setting process through Management by Objectives?
OR
Discuss the strengths and weakness of Management by Objectives. What are the
minimum requirements of a Management by Objectives programme?
OR
Define Management by Objectives. Explain the Management by Objectives Cycle.
Meaning and Definition of Management by Objectives (MBO)
Management by Objectives (MBO) has become a widely used slogan. It is a basic
mentality that a high-performance manager brings to the job of managing. Peter
Drucker coined the term "Management by Objectives" in 1954. He
profounded Management by Objectives concept and emphasized it and than it
developed as a management philosophy. Some authors has used the term
"management by results" interchangeable with Management by
Objectives.
Management by Objectives is an overall philosophy of management that
concentrates on goals and end results. Management by Objectives is based on the
presumption that people perform better when they know what is expected of them
and can relate their personal goals to organisation goals. It also assumes that
people are interested in the goal setting process and in evaluating their
performances against the target.
Some important definitions of Management by Objectives may be given as follows:
George S. Odiorne
The system of management by objectives can be described as a process whereby
the superior and subordinate managers of an organisation jointly identify its
common goals, define each individual's major ares of responsibility in terms of
the results expected of him and use these measures as guides for operating the
unit and assessing the contribution of each of its members.
Peter Drucker
He says that management by objectives and self-control is a philosophy of
management, resting on a concept of human action, human behaviour and human
motivation. Management by objectives applies to every manager at any level and
to all business enterprises whether large or small. He says the Management by
Objectives "ensures performance by converting objective needs into
personal goals"
Heinz Weihrich and Harold Koontz
"Management by objectives is a comprehensive managerial system that
integrates many key managerial activities in a systematic manner and that is
consciously directed toward the effective and efficient achievement of
organizational and individual objectives."
Essential Characteristics of Features of Management by Objectives
A careful study of the above definitions bring out the following features of
Management by Objectives:
1. Management by Objectives is a philosophy or a system and not merely a
technique.
2. It emphasizes participative goal setting.
3.It clearly defines each individual's responsibilities in terms of results.
4. It focuses attention on what must be accomplished (goals), rather than on
how it is to be accomplished (methods).
5. It converts objectives needs into personal goals at every level in the
organisation.
6. It establishes standards or yardsticks (goals) as operating guides and also
as basis of performance evaluation.
7. It is a system intentionally directed toward effective and efficient
attainment of organizational and personal goals.
Management by Objectives Process
There are four important and essential steps or elements in the Management by
Objectives process as follows:
1. Setting Objectives
Goal setting or objective-setting is a multistage process. It starts with the
examining of the current state of affairs, level of efficiency, threats and
opportunities. Then the key result areas are identified, such as product
markets, improved services, lowered costs, work simplification, employee
motivation, profitability, innovation and social responsibility. The performance
of these areas is critical for organisation in the sense that failure in these
areas my result in failure of the organisation and this is why they are known
as "key" results areas. Peter Drucker says, "Objectives are
important in every area where performance and results directly affect the
survival and prosperity of business."
Therefore interacting or joint goal setting takes place. Subordinates are
actively involved in formulating goals at every level is the organisation. Such
goals are finished with reference to the overall objectives of the
organisation. Care is to taken establish goals that are measurable and
contribute to the accomplishment of corporate objectives. Proper attention is
given to "time" element also. Such goals may be long-range,
medium-range or short-range. Further, resources availability also becomes an
important consideration in goal setting. There is always need to decided
priorities among the different objectives keeping in view the environment which
business operates as well s possible future changes in it.
2. Developing Action Plans
Set objectives must be translated into action plans. It requires assignment of
specific responsibilities to different departments, divisions and individuals.
It also requires allocation of necessary resources needed to perform the
assigned responsibilities. Time dimensions are also to be decided in order that
targets are reached without any unwarranted delays.
3. Periodic Review Or Monitoring the Progress
After setting objectives and developing action plans, it is necessary to
establish a proper monitoring system with a view to regularly keeping the
activities and efforts on a prescribed path leading to the ultimate objectives.
The progress is monitored without day-to-day interference in subordinates
functioning. At agreed intervals, results are measured in terms of quantity,
quality, time and cost against the set objectives. It is ensured that the
deviations found, if any are thoroughly discussed and immediate corrective
actions are taken to set them right on the course. Such a regular monitoring
and periodic review not only provide feedback, which is essential for
completion of work in time, but also motivates the managers accountable for
performance. Periodic review and monitoring are done at departmental levels
generally.
4. Performance Appraisal
This is the last phase of Management by Objectives programme that evaluates
performance annually. The annual review or appraisal is comprehensive and is
done at the organizational level. The actual annual results are evaluated
against the set objectives. Such assessment is also used for determining
targets for next year for modification in standards (goals) if needed and for
taking corrective actions in order to avoid deviations from predetermined objectives.
Management by Objectives Cycle and Recycling Objectives
When all the four steps or phases in the Management by Objectives as mentioned
above are completed then one Management by Objectives cycle is said to be over.
The last phase or the fourth step in the Management by Objectives cycle is used
as an input for recycling objectives and other actions. Objectives are changed
or modified in the light of the environmental changes and the experiences
gained over the year. Then, revised action plans are developed as per needs,
periodic review is done. And performance is gain evaluated. Thus goes on the
recycling.
Benefits of
Management by Objectives(Managment)
|
Describe the benefits of Management by Objectives Benefits of Management by Objectives |
limiatation of
Management by Objectives.(Managment)
Describe the limiatation of Management by Objectives.
Limitations of Management by Objectives
In spite of its many advantages, the Management by Objectives has some
weaknesses as follows:
1. Unfavourable Attitude of Managers
Some managers have an attitude that the regular attention required of them by
Management by Objectives system, draws heavily on their busy time-schedule and
is not consistent with their roles. They feel that it is not so effective a way
as some other approaches. Some managers view their roles as principally
involving policy-making, budget formulation etc.
2. Excessive Paper Work
Management by Objectives programme involves a huge amount of newsletters,
instruction booklets, training manuals, questionnaires, performance date,
review and appraisal reports to be prepared by the superiors and subordinates.
Thus, Management by Objectives is said to have created one more "paper
mill" in the organisation added to the already existing large amount of
paper work.
3. Problems about Goal Setting
Management by Objectives requires issuance of proper, exhaustive guidelines to
goal-setters. However, managers responsible for practicing Management by
Objectives do not themselves understand and appreciate a good deal about it,
expecially about the concept of self-control and self-direction which is basic
to Management by Objectives. Similarly, there are several other difficulties in
goal setting:
* Positive and active participation from subordinates is not easily
forthcoming.
* Truly verifiable goals are not easy to formalize.
* Empahasis is put on short-range goals, where as long-range goals are avoided,
though long-range goals are vital for growth and development of the
organisation.
* Goals remain inflexible and rigid. For example, changes desirable in annual
budgets are not easily accepted in the middle of the year.
* Over-use of quantitative goals jeopardizes the qualitative aspect which may
even more important the quantification is some case.
* Goals tend to take precedence or priority over the people who uses them. Any
action is acceptable if it serves in the attainment of goals, without caring of
its impact on people. Thus, all these difficulties come in the way of making
management by objectives operational in an organisation. Further, managing
involves more than goal setting.
4. Time-Consuming Nature of Management by Objectives
Management by Objectives system is time-consuming especially in the early
phases of its introduction when employees are unfamiliar with its process.
Since managers also have to learn the necessary skills it is commonly estimated
that it takes 2 years to take an management by objectives programme working
smoothly. A few management by objectives programme working smoothly. A few
management by objectives programmes have failed because managers could not
spare adequate time needed for its various phases.
5. Difficulties in Making Organizational Changes
Management by Objectives system requires to be integrated with other systems in
the organisation, such as budgeting, forecasting, communication, control etc.
Sometimes current practices may have to be changed. Thus, greater
decentralization may become a necessity. Moreover, some systems may required to
be changed, for example, control system, data processing system etc. Managers
feel such changes as time-consuming, distributing there "status quo"
(or as it is) facilities and difficult in different other ways.
6. Failure to Teach Management by Objectives Philosophy
Management by Objectives as a concept is simple but it is deceptively so. It is
much easier to explain this principle than to introduce it to an organsation,
especially in a very dynamic and changing environment. Moreover, management by
objectives is still building toward achieving a fully institutionalized system
of management to be used by the entire key manager. Sometimes managers fail to
use objectives as a constructive force, even with the full participation and
assistance of their superiors. In order to understand the philosophy of
management by objectives, managers have to make themselves professionals.
Decision Making (Management)
Q. "Decision making
is the primary test of management." Discuss this statement and explain the
process of decision-making.
OR
Whatever a manager does, he does through decision making. Critically examine
this statement.
OR
What is the significance of decision making? What procedure should be followed
in arriving at a correct decision?
OR
Decision making is the vehicle for carrying managerial workload and discharging
the managerial responsibilities. Evaluate the statement and examine the
significance of rational decision making in management.
OR
Decision making is at the care of planning. Discuss this statement and spell
out the nature of decision-making.
OR
Decision making is at the care of planning. Discuss this statement and spell
out the nature of decision-making.
OR
What is decision making? What are the important factors that influence decision
making?
Meaning and Definition of Decision Making
Decision making may be reviewed as the process of selecting a course of action
from among several alternatives in order to accomplish a desired result. The
purpose of decision making is to direct human behaviour and commitment towards
a future goal. If there are no alternatives, if no choice is to be made, if
there is no other way-out, then there would be not need for decision making. It
involves committing the organisation and its resources to a particular choice
of course of action thought to be sufficient and capable of achieving some
predetermined objective.
Managers at all level in the organisation make decision and solve problems. In
fact, decision-making is the process of reducing the gap between the existing
situation and the desired situation through solving problems and making use of
opportunities. A decision is a course of action consciously selected from
available alternatives, with a view to achieving a desired goal. It is an
outcome of the judgement and represents a choice and commitment to the same. It
is a final resolution of a conflict of needs, means or goals made are the face
of uncertainty, complexity and multiplicity. A decision is conclusion reached
after consideration it occurs when one option is selected to the exclusion of
others - it is rendering of judgement.
Different management scholars have defined Decision making as follows:
George Terry
Decision making is the selection based on some criteria from two or more
alternatives.
Heinz Weihrick and Harold Koontz
Decision making is defined as the selection of a course of action among
alternatives, it is the care of planning.
Louis Allen
Decision making is the work a manager performs to arrive at conclusion and
judgement.
Nature Or Characteristics of Decision Making
Decision making is globally thought to be selection from alternatives. It is
deeply related with all the traditional functions of a manager, such as
planning, organizing, staffing, directing and controlling. When he performs
these functions, he makes decisions. However, the traditional management
threorists did not pay much attention to decision making. Infact, the
meaningful analysis of decision making process was initiated by Chester Bernard
(1938) who commented, The process of decision are largely techniques for
narrowing choice.
The nature of decision-making may be clearly understood by its following
characteristics features:
1. Decision making is an intellectual process, which involves imagination,
reasoning, evaluation and judgement.
2. It is a selection process in which best or most suitable course of action is
finalized from among several available alternatives. Such selected alternative
provides utmost help in the achievement of organizational goals. The problems
for which there is only one selection are most decision problems.
3. Decision making is a goal oriented process. Decisions are made to attain
certain goals. A decision is rated good to be extent it helps in the
accomplishment of objectives.
4. It is a focal point at which plans, policies, objectives, procedures, etc.,
are translated into concrete actions.
5. Decision making is a continuous process persuading all organizational
activity, at all levels and in the whole universe. It is a systematic process
and an interactive activity.
6. Decision making involves commitment of resources, direction or reputation of
the enterprise.
7. Decision making is always related to place, situation and time. It may be
decision not act in the given circumstances.
8. After decision making it is necessary and significant to communicate its
results (decisions) for their successful execution.
9. The effectiveness of decision-making process is enhanced by participation.
Elements of Decision Making
There are following elements in decision making.
* The decision maker.
* The decision problem or goal.
* Attitudes, values and personal goals of the decision maker.
* Assumption with regard to future events and things.
* The environment in which decision is to be made.
* Available known alternatives and their estimated or imagined outcomes.
* Analytical results in the whole perspective.
* The constraints.
* The act of selection or choice.
* Timing of decision.
Proper communication of decision for its effective execution.
Different
theories of Decision-Making.(Managment)
Discuss in brief
different theories of Decision-Making.
OR
What are the principles of Decision-Making? How and why the employee
participation in Decision-Making process should be introduced?
OR
Make out a case for employees participation in Decision-Making
Theories of Decision Making
The most common bases upon which decisions are made are, fact experience,
intuition and authority. The decision itself is concerned with the achievement
of an objective. Bridging the gap between the basis for the decision and the
decision itself is the theory (or technique) used to arrive at the decision.
Theories of decision making stem from the manner in which decisions are made.
Ernest Dale has suggested a comprehensive list of theories of decision making
as follows
1. Traditional Economic Theory
2. Psychological Theory
3. Mathematical Theory.
1. Traditional Economic Theory Or Marginal Theory
The simplest theory of business decision making is that the decision makers try
to maximize profits and that key consider all courses of action open to them in
attempting to do. This is the theory held by traditional economists. Although
it may be partially true that the decision makers generally have the effect of
profits on mind, they may not always attempt to maximize profits. Marginal
theory is based on the law of diminishing return. According to this law, with
the additional units of inputs (labour and capital), the marginal contribution
of each unit is at a decreasing rate. There comes a stage when the marginal
return is zero. This is marginal point. A number of decisions in the area of
production, sales, marketing, advertising, recruitment, etc are taken by the
management on the basis of marginal theory.
2. Psychological Theory
This theory is designed to identify what actually goes on in the decision
maker's mind when he makes a decision. Several factors leave an impact on the
mind of the decision maker, such as nature, size and purpose of the
organisation, manager's aspiration, attitude, habits, personally temperament,
political learning's, social and organizational status, technological skill,
domestic life, education, experience, level of satisfaction and so on Psychology
of a manager has an important bearing on the quality of decisions he makes. As
decision making is an intellectual process, these psychological factors cannot
be avoided altogether.
One of the best-known psychological theories is Herbert Simon's theory, which
explain that the decision maker attempts to satisfies rather maximize. In other
words, a manager finds an answer that is good enough. What consequences the
manager considers good enough, will depend on what has been achieved in the
past.
3. Mathematical Decision Theory
It is not designed to show how decisions are actually made. Rather, it is
designed to help the decision maker who is interested in maximizing profits in
a given situation, to lay out the alternatives in such a way that he sees the
risks and the consequences more clearly. With the development of operations
research and computers for handling complex mathematical models, this approach
is commonly used by large organizations where decision making problem is very
complex. The linear programming, venture analysis, game theory, queuing theory,
probability theory, etc are some of the examples of widely used Operations
Research technique. Although these techniques provide a good deal of analysis,
yet the rational and psychological aspects of decision making cannot be ignored
totally. The attitude, intelligence and wisdom of the decision maker shall
always have an important impact on the quality of decisions made by him
Policy
Policies are guide-posts
for managerial action. Discuss this statement and give at least two examples of
policies in any area of business management.
OR
What is Policy? What characteristics do policies have? Also discusses various
classifications of an industrial policy.
OR
What is Policy and What are the essentials of a sound policy?
Meaning and Definition of Policy
A policy is a general statement that guides thinking, action and decision
making of managers for the successful achievement or organizational objectives
Policies define the limits within which decisions are to be made. This ensures
consistent and unified performance and exercise of discretion by managers.
The top managers generally frame the policies. However, a manager at any other
level may low down policies within the limits of his authority and also within
boundaries set by policies of his seniors.
A policy is not static and may be modified or reviewed in the light of changes
in the environment. A policy may be verbal, written or implied.
A well defined policy help the manager to delegate authority without undue
fear, because the policy lays down the limits for decisions by the
subordinates. Moreover, policies operationalise objectives, speed up decision
making, ensure coordination, help in training and orienting employees and
ensure proper administrative control.
Different scholars have defined the term policy as follows:
Heinz Weihrich and Harold Kountz
Policies are plans in that they are general statement or understanding that
guide or channel thinking in decision making. Not all policies are statements
they are often merely implied from the actions of managers.
F.T. Hanker
A policy is a statement, verbal, written or implied of those principles and
rules but are set by managerial leadership as guidelines and constraints for
the organisation's thought and action.
E.F.I Brech
Policy is a patter of direction for the guidance of those who carry
responsibility for the management of the activities of the enterprise.
Dalton McFarland
Policies are planned expressions of the company's official attitudes towards
the range of behaviour within which it will permit or desire its employees to
act.
George Terry
Policy is a verbal, written or implied overall guide setting up boundaries that
supply the general limits and direction in which managerial action will take
place
Characteristics
or features of Policy.(Managment)
Describe the characteristics
or features of Policy.
Characteristics Or Features of Policy
Policy has the following important features:
1. A policy is a standing, repeat-use plan for answering the recurring problem
of the similar nature.
2. It is a guide thinking in decision making. It is not an exact order in which
things are done. It provides the framework within which decisions should be
taken. It unfolds the broad guidelines for achieving organizational objectives.
3. It allows some amount of judgement or discretion on the part of the
executives.
4. It prescribes the course of action selected to guide and determine present
and future decisions.
5. It lays down the limits within which decisions are to be made. This ensures
consistent and unified performance and exercise of discretion on the part of
the executives.
6. Policies are generally framed by top-level management, however, managers at
other levels also can frame necessary policies to deal with recurring problems
of similar nature, such as departmental policies, divisional policies -
formulated at the level of department or division.
7. Departmental or divisional policies are formulated within the limits of the
authority of hte respective in charge and also within the limits set by the
organizational policies.
8. A policy is not static. Policies are reviewed and modified from time to time
as per requirements or demands of the changing environment.
Classification
of Policies(Managment)
Describe the Various
types / Classification of Policies.
Classification of Policies
A number of policies are used in an enterprise in order to attain the
organizational objectives. Policies may be classified as follows:
(A) On the Basis of Source
According to their source, origin or emergence, policies may be of the
following kinds:
1. Originated Policy
It is also known as formulated policy. It is a policy deliberately formulated
by top management to guide decision-making at lower levels, board of directors,
the chief executive, the executive committee of the board or heads of the major
departments or divisions. Such policies are broad in scope and affect usually
the whole organisation or its major segments. These policies are often written
ones, typically in the form of a policy manual of the organisation and flow
down.
2. Appealed Policy
It is a policy formulated on the appeal or request of subordinates for filling
the gaps left by originated policies. In other words, when a subordinates
refers an exceptional problem of recurring nature not covered by existing
policies, to his superior and appeals for a policy decision. When the superior
makes decision in such a case, it becomes a precedent (policy) for future
action. Such policies may be formulated at any level and are in the nature of
flowing upward policies.
3. Imposed Policy
It is a policy, which an organisation is compelled to adopt due to some outside
forces, such as the government and its regulatory agencies, trade association,
trade unions.
(B) On the Basis of Functions
Policies are needed in all areas of business of an enterprise. These may be
classified on the basis of different managerial functions as follows:
1. Production Policy
Raw material, purchase policy, repairs and maintenance policy, technology adoption
and development policy, quality control policy, inventory policy and research
and development policy are some examples in the category. Indent for the
purchase of raw materials should be made at least a week in advance is an
example of Raw Materials Purchase Policy.
2. Human Resource Policy
Examples in this category are recruitment policy, training policy, employee
career development policy, wages and salary policy, placement policy, promotion
policy and transfer policy, employee participation policy. Any vacancy shall be
filled first by promotion from within the organisation and then, if need be,
from outside sources Is an example of Recruitment Policy.
3. Marketing Policy
Capital structure policy, packaging policy, distribution policy, advertising policy,
customer service policy, credit policy, market research policy and important
examples in this category. Customer's complaint must be responded within the
next day is an example of Customer Service Policy.
4. Finance Policy
Capital structure policy, fixed capital policy, working capital policy,
investment policy, research policy, divident policy are some examples in this
category. Excess capital, if any should be invested for short term only,
preferably in limited company shares registered in stock exchange is an example
of Investment Policy.
5. Accounting Policy
Inventory valuation policy, depreciation policy, provisions policy (for bad
debts etc) deferred revenue expenditure policy etc. are examples in this
category. Deferred revenue expenditure (e.g., a huge amount spent on
advertisment) should be spread over the years of its benefit generation and
written off every year accordingly, is an example of Deferred Revenue
Expenditure Policy.
Meaning and
Definition of Leadership(Management)
What leadership means? What are its important characteristics? Why
is their need of leadership also discussing its importance?
Meaning and Definition of Leadership
Simply stated, leadership is the process of influencing the behaviour of others
towards the attainment of desired goal or purpose in given circumstances.
Leadership is a tool to get the desired work done through employees or
subordinates. Leadership is majorly explained on the basis of influence
relationships and motivational considerations. One method of solving the
problem of motivation is the effort to provide inspiring and effective
leadership to the employees. The success of a manager is largely decided by the
fact as to how much effective he is as a leader. Leadership is the ability to
make people act the way the manager or leader wants. It is the process of
influencing others to become what they are capable of becoming in the view of
the leader. Leadership, in essence is carrying the people with the leader by
their consent.
Different scholars have defined leadership in the following ways:
Rober Tannenbaum
Leadership is interpersonal influence, exercised in situations and directed,
through the communication process, towards the attainment of goals.
George Terry
Leadership is the leadership in which one person or the leader influences
others to work together willingly on related tasks to attain that which the
leader desires.
Theo Haimann
Leadership can be defined as the process by which an executive imaginatively
directs, guides and influences the work of others on choosing and attaining
specified goals by medicating between the individual and the organisation in
such a manner that both will obtain maximum satisfaction.
E.B. Reuter
Leadership is an ability to persuade or direct men without use of the prestige
or power of formal office or external circumstances.
Weihrich and Koontz
Leadership is defined as influence that is the art or process of influencing
people so that they will strive willingly and enthusiastically inward the
achievement of group goals.
Peter Drucker
Leadership is lifting of a man's vision to higher sights, the raising of a
man's performance to a higher standard and the building of a man's personality
beyond its normal limitation.
Characteristics Or Features of Leadership (Nature)
The important characteristics of leadership, which indicate its nature, may be
described as follows:
1. Leadership is an influence process stimulating group members.
2. It is a relational concept in which two sides are included, influencing
agent and the persons influenced. The first side is called leader the second
side is called followers.
3. Leadership is a complex relationship which exists between the leader, the
followers, the organisation, the social values and the economic and political
condition. Each of these ingredients or factors has its own peculiarities which
are the cause of the complexity of this relationship.
4. Leadership required aptitude and basic attitudes with regard to behaviour
pattern, tolerance, human psychology and achievement.
5. Leadership depends on the properties of the situation and the persons to be
led. In other words, these two factors especially affect the effectiveness of
leadership. Generally, it is the function of the leader, the followers and
other situational variables.
6. The leader's role and the degree of its acceptance by the group members,
condition the leadership. In other words right person's right role proves him
to be a good leader.
7. Th core of leadership is to motivate the employees by integrating their
individual goals with those of the organisation.
8. A leader leads he does not push. It means that a leader takes his followers
and their achievements to such a height where they do not believe to reach.
When a leader leads, he serve also , i.e., he fully cars for the satisfaction
of his followers.
9. Leadership appears to be more of an emotional than an intellectual or
rational process, because its direct concern is with men whose both emotional
and rational powers are to be stimulated or incited. Such powers can be had by
means of dedication not only by use of knowledge. Leadership is a rational to
the extent that is is goal directed.
10. Persons capable of exercising effective leadership in organisations are in
critically short supply in relation to their tremendous demand.
11. Leadership is part of management, but not all for it.
12. Leadership is a nebulous, not fully clear accept even after so research
done in this field. In other words, still there is no simple answer to the
riddle
Theories
of Leadership(Mnagement)
Briefly describe various
theories of leadership.
OR
Discuss different approaches to leadership.
OR
Explain the main theories of leadership.
OR
Differentiate between tratist and situationalist theories. Which of the two is
near to the modern thinking?
OR
Enumerate the qualities of leadership.
Theories of Leadership
Leadership styles focus on the behaviour pattern exhibited by a leader during
supervision of the subordinates. On the other hand, who will emerge an
effective leader? Or how effective a leadership style will be? such questions
are answered by leadership theories. Simply stated, theories focus on various
approaches to successful leadership.
The theories of leadership may be classified into three categories, Trait
theories, Behavioural theories and situational theories.
1. Tratist Leadership Theory
In its early stage, this theory was called great man theory of leadership,
which says that leaders are born and not made. Ancient people
thought that certain natural qualities of leadership exist in a person.
Ultimately, the great man theory gave way to a more real theory the Trait
approach.
Trait theory views leadership as a conglomerate (or a large set) of different
traits or qualities. The great man theory believed that traits were inherited.
Whereas, trait theory holds that traits are not always inborn but can be
acquired through education, training and experience. Trait theory holds that
leadership is largely a matter of personality, a function of specific traits.
It suggests that there are certain unique qualities or traits clearly
identifiable in leaders. The greater the degree of such traits possessed by a
person the better and more successful will be proved as a leader. It further
suggests that leaders differ from followers with respect to certain key traits
and these traits remain unchanged across time. The trait theory attempts to
isolate the attributes of successful and unsuccessful leader and using such a
list of traits, it predicts the success of failure of persons as leaders. It is
to be noted that these traits are not measurable.
Various thinkers have differed on the package of traits. Many studies of traits
have been made. Ralph Stogdill found (1974) that various researchers have
identified specific traits related to leadership ability as follows:
1. Physical Traits
Five in all, such as energy, appearance and height.
2. Intelligence and Ability Traits
Four in all, such as high level of intelligence and judgement.
3. Personality Traits
Sixteen in all, such adaptability, agressiveness, enthusiasm and
self-confidence.
4. Task-Related Characteristics
Six in all, such as achievement drive, persistence and initiative
5. Social Characteristics
Nine in all, such as cooperativeness, interpersonal skills and administrative
ability.
It may be noted that the discussion of the importance of traits still goes on.
More recently (1991). Shelly Kirkpatrick and Edwin Locke have identified the
following key leadership traits.
1. Drive
Including achievement, motivation, energy, ambition, initiative and tenacity
(i.e. firmness).
2. Leadership Motivation
The aspiration to lead but not to seek power as such.
3. Self-Confidence
Including motional stability.
4. Cognitive Ability
The ability of knowing, including consciousness of things and judgement about
them.
5. An Understanding of the Business
According to them, less clear is the impact of creativity, flexibility and
charisma (i.e. strong personal charm to attract and influence) on the
leadership effectiveness.
In general the study of leaders traits has not been a very fruitful approach to
explaining effectiveness of leadership. Not all leaders possess all the traits
and many followers (non-leaders) may possess most or all of them. Further, the
trait theory does not indicate as to how much of any trait a person
should have to be an effective leader. Also, most of these so-called traits are
really patterns of behaviour. Furthermore, the list of traits is not uniform.
Effective leadership is not a function of some traits only, situation also
plays an important role in making someone a successful leader.
2. Behavioural Theories of Leadership
Dissatisfaction with the results of the trait approach has caused a significant
change in the emphasis of leadership research and the focus shifted in the
actual behaviour and actions of leaders from the traits or characteristics of
leaders. Thus, Behavioural theories attempt to describe leadership in terms of
what leaders do rather than what they are. According to Behavioural approach,
leadership is the result of effective role behaviour. This approach hold that an
effective leader is one who performs these acts which help the group to attain
its goals.
The most popular models of leadership based on the behavioural appraoch may
briefly be discussed as follows:
Likert's for systems of management. Rensis Likert has studied the patterns and
styles of leaders and manager for three decades (1961). He has developed a
continuum of our systems of management or leadership styles as follows:
1. System 1 Management
It is described as exploitative authoraitative. Its managers are higher
autocratic have little trust in subordinates and motivate people through fear
and punishment and only occasionally reward. They engage in downward
communication and limit decision making to themselves.
2. System 2 Management
It is called benevolent - authoritative. Its managers have a patronizing
confidence and trust in subordinates. They motivate with rewards and some fear
and punishment. They permit some upward communication and solicit some ideas
and opinions from subordinates. They allow some delegation of decision making
but with close policy control.
3. System 3 Management
It is referred to as Consultative. Its managers have substantial but not
complete confidence and trust in subordinates. They usually try to make use of
subordinates ideas and opinions. They use reward for motivation with occasional
punishment and some participation.
Meaning and
Definition of Planning(Managment)
Define Planning and
discuss its main characteristics.
OR
Discuss the advantages, limitation and principles of Planning.
OR
What is planning? Outline the steps in planning process.
OR
What is the concept of planning as an element of Management process? Discuss
its nature and role in a modern business organisation.
Meaning and Definition of Planning
Planning is thinking in advance or before doing something. All kinds of
organisation do planning. Planning helps us in looking into the future.
Planning establishes goals or objectives and identifies the ways to achieve
them. A plan is a predetermined course of action to be taken in future.
George Steiner
Planning is a process that begins with objectives, defines strategies,
policies and detailed plans to achieve them.
Peter Drucker
Planning is the continuous process of making present entrepreneurial (risk
taking) decisions systematically and with best possible knowledge of their
futurity.
Nature of Characteristics of Planning
There are a number of features or characteristics of planning that indicate
towards its nature. These may be outlined as follows:
1. Goal-Oriented
Planning is goal-oriented in the sense that plans are prepared and implemented
to achieve certain objectives.
2. Basic to all Managerial Functions
Planning is a function that is the foundation of management process. Planning
logically precedes all other function of management, such as organizing,
staffing etc because without plan there is nothing to organize nothing to
control. Every managerial action has to be properly planned.
3. Pervasive
Planning is a function of all managers, although the nature and extent of
planning will vary with their authority and level in the organisation
hierarchy. Managers at higher levels spend more time and effort on planning than
do lower level managers.
4. Interdependent Process
Planning affects and is affected by the programmes of different departments in
so far as these programmes constitute an integrated effort.
5. Future Oriented
Planning is forward looking and it prepares an enterprise for future.
6. Forecasting Integral to Planning
These essence of planning is forecasting. Plans are synthesis of various
forecasts. Thus, planning is inextricably (inseparably bound up with planning).
7. Continuous Process
Planning is an ongoing process. Old plans have to be revised and new plans have
to be prepared in case the environment undergoes a change. It shows the dynamic
nature of planning.
8. Intellectual Process
Planning is a mental or conceptual exercise. It therefore involves rational
decision making, requires imagination, foresight and sound judgement and
involves thinking before doing thinking on the basis of facts and information.
9. Integrating Process
Planning is essential for the enterprise as a whole. Newman and others have
drawn our attention towards this feature of planning, without planning, an
enterprise will soon disintegrate the pattern of its actions would be as random
as that made by leaves scampering (running quickly in short steps) before an
autumn wind and its employees would be as confused as ants in an upturned
anthill. If there are no plans action will be a random activity in the
organisation instead there will be chaos.
10. Planning and Control are Inseparable
Unplanned action cannot be controlled, without controlled, planned actions
cannot be executed. Plans furnish standards of control, In fact Planning is meaningful
without control and control is aimless without planning. Planning is measuring
rod of efficiency.
11. Choice among Alternative Courses of Action
The need for planning arises due to several ways available for an action. If
there is only one way-out left, there is no need for planning.
12. Flexible Process
The principle of navigational change (i.e. change according
to changes in environment) applies to planning. In other words, effective
planning requires continual checking on events and forecasts and the redrawing
of plans to maintain a course towards desired goals. Thus, plans have to be
adaptable to changing circumstances.
Various
Steps of Planing Process
Describe in detail the
various steps of Planning.
Planning Process
The process of planning involves the following steps:
1. Analyzing Environment
At the outset, the internal and external environment is analyzed in order to
identify company's strengths and weaknesses (in internal environment) and
opportunities and threats (existing int the external environment). This is also
known as SWOT (strengths, weaknesses, opportunities and threats) analysis.
2. Establishing Objectives Or Goals
In the light of the environmental scanning (study), clear or probable
opportunities that can be availed are identified. In order to avail them,
objectives or goals are clearly defined in specific term along with priorities
in all the key areas of operations. Major problems associated with such
objectives are also identified and defines, so that there may be special
emphasis on their planned solutions.
3. Seeking Necessary Information
All relevant facts and data are collected from internal and external sources.
For example, availability of supplies, physical and human resources of the
company, finances at disposal, relevant government policy, general economic
conditions and relevant specific market situation. Then such investigated and
collected information and factors are analyzed. Such information analysis is
used in two ways - first, to make necessary modifications in objectives or
goals and secondly to take help from them in premising (considering)
assumptions.
4. Premising Or Establishing the Planning Premises
In order to develop consistent and coordinated plans, it is necessary that
planning is based upon carefully considered assumptions and predictions. Such
assumptions and predictions are known as planning premises. The assumptions
under which plans are supposed to operate should be clearly brought out. Such
presumptions and forecasts are prepared for various areas, such as sales,
prices, wages, taxes, changes in fashions and habits, purchasing power,
standards of living, population competitors and so on.
5. Identifying and Developing Alternative Courses of Action
After establishing objectives or goals and taking other related steps, feasible
alternative programmes or courses of action are seached out. Impossible or
highly difficult propositions are left out.
6. Evaluating the Alternatives
Probable consequences of each alternative course of action in terms of its pros
and cons (e.g. costs, benefits, risks, etc) are assessed and than relative
importance of each of them is found out by looking at their overall individual
strengths and limitations especially in the light of the present objectives and
the environment of the company.
7. Choosing the Most Appropriate Alternative Or Course of Action
After weighing the pros and cons of each of the alternative courses of action
and realizing their individual relative importance, the most appropriate
alternative in the light of the overall consideration is selected to be followed.
In other words, the alternative which appears to be most feasible and conducive
to the accomplishment of company's predetermined objectives, is chosen as a
final plan of action - as strategy.
8. Preparing the Derivative Plans
Derivative plans involve short range, operating plans that are useful in
day-to-day operation and provide a working basis for such operations. Such
plants are developed in the form of schedules, budgets, programmes, procedures,
methods, rules, policies etc. The derivative plans are prepared in different
departments and their timing and sequence are also specified. Such plans are
prepared in concrete terms showing specific results to be attained within
specified time limit and by utilizing the allocated resources. An integrative
mechanism has also to be provided for effecting coordination between and among
different derivative plans being executed by different departments
Various
elements of good planning.(Managment)
Discuss the various elements of good planning.
OR
Discuss briefly the various types of plans.
Elements of Good Planning
Managerial planning comprises various types of plans, which are also known as
elements of good planning. Some of the important types of plans may be
discussed as follows, which must be included in a sound planning system.
1. Objectives
Objectives may be defined as the targets people seek to achieve over different
time periods. Objectives gives direction to human behaviour and effort. Hence,
an essential task of management it to formulate, classify and communicate
organizational objectives. Managers are required to set both general and
specific objectives. Survival, growth and development are general objectives of
a business enterprise. The specific objectives include the goals set for
various departments, divisions, groups and individuals. The general objectives
are long term in nature, where as the specific objectives are short range,
though the short range objectives are and should be a part of long term
objectives. Departmental objectives must be consistent with the conductive to
the overall, corporate objectives.
2. Policies
A policy is a general statement that guides thinking, action and decision
making of managers for the successful achievement of organizational objectives.
Policies define the limits within which decision are to be made. This ensures
consistent and unified performance and exercise of discretion by managers. Top
management generally frames the policies. However, a manager at any other level
may lay down policies within the limits of his authority and also within
boundaries set by policies of his seniors. A policy is not static and may be
modified or reviewed in the light of changes the environment. A policy may be
verbal, written or implied. A well defined policy helps the manager to delegate
authority without undue fear, because the policy lays down the limits for
decisions by the subordinates.
3. Procedures
A procedure prescribes the sequence of steps that must be completed in order to
achieve a specific purpose. A procedure is a guide to action rather than to
thinking. It details the exact manner in which a certain activity must be
accomplished. Its essence is chronological sequence of required actions or
steps. A procedure is generally established for repetitive activity so that
same steps are followed each time when that activity is performed. The
procedures do not allow much latitude in managerial decision making because
they lay down a definite way of doing certain things. Procedures are designed
to execute policies and achieve objectives. Procedures are used in all major
functional areas. Purchase procedure, materials issue procedure, costumer's
order executing procedure, accounting procedure, grievance handling procedure,
etc, are some of the examples of usual procedures.
4. Rules
Like a procedure, a rule is a guide to action. But it does not lay down any
sequence of steps as in the case of a procedure. A role tells us whether a definite
action will be taken or will not be taken in case of a given situation.
Examples of rules are: (i) Customer's complaint must be replied within one day (under
customer satisfaction policy), (ii) No smoking in the factory (under safety policy). Thus, a rule is
prescribed course of action or conduct that must be followed. As such, a rule
does not leave any scope for discretion on the part of the subordinates. Rules
are definite and rigid because there must be no deviation from the stated
action, except in very exceptional cases.
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5. Strategy
Strategy is a pattern or plan that involves matching organisation competences
(i.e. internal resources and skills) with the opportunities and risks created
by environmental change, in ways that will be both effective and efficient over
the time such resources will be deployed. Effective formal strategies contain
three elements: (i) the most important goals, (ii) the most significant
policies, (iii)the major
programmes. Strategy deals with unpredictable and unknowable. It is developed
around a few key concepts and thrusts. A well-formulated strategy helps to
marshal and allocate and organisation's resources into a unique and viable
posture in relation to the strengths and weaknesses of the organisation, the
anticipated changes in the environment and the contingent moves of the
opponents. Generally when we walk of organizational strategy, it refers
organisation's top level strategy. However, strategies exist at other levels
also.
6. Programmes
A programme lays down the principal steps for accomplishing a mission and sets
an approximate time for carrying out each step. George Terry says, A programme can be
defined as a comprehensive plan that includes future use of different resources
in an integrated pattern and establishes a sequence of required actions and
time schedules for each in order to achieve stated objectives. Programmes
outline the actions to be taken by whom and where. A programme is made
up of objectives, policies, procedures, task assignment, budgets, schedules
etc. Examples of programmes are, building programme, expansion programme, moral
improvement programme, acquisition of the new line of business programme,
training programme, development of a new product programme, advertising
programme and so on. Programmes may be measure or minor, primary or derivative
and long-term, medium term or short term.
7. Projects
Often a single step in a programme is set up as a project. In fact a project is
simply a cluster of activities that is relatively separate and clear cut. Thus,
projects have some features of a programme but are usually parts of some
programmes. Building a hospital, designing a new package, building a new plant,
are some examples of projects. The chief virtue of a project lies in
identifying a nice, neat work package within a bewildering array of objectives,
alternatives and activities.
8. Budgets
A budget is a statement or a plan of expected results expressed in numerical
terms, such as man hours, units of production, machine hours, amount of
expenditure or any other quantitatively measurable term. Then it may be
expressed in time, money, materials or other quantitative units. Budget is
prepared prior to a definite period of time of the policy to be pursued during
that period for a purpose of a given objective. It introduces the idea of
definiteness in planning. A budget is an important control device also because
it provides standards against which actual performance may be measured. Examples
of budgets are, production budget, sales budget, material budget, cash budget,
capital expenditure budget, expenses budget and so on.
9. Schedules
A schedule is an operational plan, timetable of work that specified
time-periods (with beginning and completion time points) within which activity
or activities are to be accomplished. In order to keep the schedule realistic
and flexible, minimum and maximum time-periods may be specified. Three main
elements are involved in planning a schedules, (i) identification of
activities or tasks, (ii)determination of their sequence, (iii) specification of
starting and finishing dates for each activity as well as for teh sequence as a
whole. Scheduling is the process of establishing a time sequence for the work to
be done. Schedules translate programmes into actions. Scheduling is necessary
in all organisations with a view to providing for an even flow of operations
and to ensure completing of each task at the right time. While planning
schedule, the avialability of resources, processing time and the delivery
commitments should be kept in view. Due allowance should be made for delays
created by factors beyond the control of management as well as for
non-productive time.
10. Forecasts
Planning presupposes forecasting as the former is defined as deciding what is
to be done in future. Henri Fayol has described a plan as the synthesis of
various forecasts - annual, long-term, short-term, special etc. The targets
cannot be fixed with any degree of precision unless forecasts are made.
Forecasts are estimates of future events, providing parameters to planning.
Forecasts do not involve any kind of commitment of organizational resources.
Planning without forecasts is not possible. In fact, forecasts are predictions
or estimates of the changes in the environment, which may effect the business
plans. A manager has to make forecasts keeping in view the planning premises.
There are various types of forecasts, such as economic, technological,
political, social and so on. However, sales forecast is the basis of most
planning.
Various
elements of good planning.(Managment)
Discuss the various elements of good planning.
OR
Discuss briefly the various types of plans.
Elements of Good Planning
Managerial planning comprises various types of plans, which are also known as
elements of good planning. Some of the important types of plans may be
discussed as follows, which must be included in a sound planning system.
1. Objectives
Objectives may be defined as the targets people seek to achieve over different
time periods. Objectives gives direction to human behaviour and effort. Hence,
an essential task of management it to formulate, classify and communicate
organizational objectives. Managers are required to set both general and
specific objectives. Survival, growth and development are general objectives of
a business enterprise. The specific objectives include the goals set for
various departments, divisions, groups and individuals. The general objectives
are long term in nature, where as the specific objectives are short range,
though the short range objectives are and should be a part of long term
objectives. Departmental objectives must be consistent with the conductive to
the overall, corporate objectives.
2. Policies
A policy is a general statement that guides thinking, action and decision
making of managers for the successful achievement of organizational objectives.
Policies define the limits within which decision are to be made. This ensures
consistent and unified performance and exercise of discretion by managers. Top
management generally frames the policies. However, a manager at any other level
may lay down policies within the limits of his authority and also within
boundaries set by policies of his seniors. A policy is not static and may be
modified or reviewed in the light of changes the environment. A policy may be
verbal, written or implied. A well defined policy helps the manager to delegate
authority without undue fear, because the policy lays down the limits for
decisions by the subordinates.
3. Procedures
A procedure prescribes the sequence of steps that must be completed in order to
achieve a specific purpose. A procedure is a guide to action rather than to
thinking. It details the exact manner in which a certain activity must be
accomplished. Its essence is chronological sequence of required actions or
steps. A procedure is generally established for repetitive activity so that
same steps are followed each time when that activity is performed. The
procedures do not allow much latitude in managerial decision making because
they lay down a definite way of doing certain things. Procedures are designed
to execute policies and achieve objectives. Procedures are used in all major
functional areas. Purchase procedure, materials issue procedure, costumer's
order executing procedure, accounting procedure, grievance handling procedure,
etc, are some of the examples of usual procedures.
4. Rules
Like a procedure, a rule is a guide to action. But it does not lay down any
sequence of steps as in the case of a procedure. A role tells us whether a
definite action will be taken or will not be taken in case of a given
situation. Examples of rules are: (i) Customer's complaint must be replied within one day (under
customer satisfaction policy), (ii) No smoking in the factory (under safety policy). Thus, a rule is
prescribed course of action or conduct that must be followed. As such, a rule
does not leave any scope for discretion on the part of the subordinates. Rules
are definite and rigid because there must be no deviation from the stated
action, except in very exceptional cases.
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5. Strategy
Strategy is a pattern or plan that involves matching organisation competences
(i.e. internal resources and skills) with the opportunities and risks created
by environmental change, in ways that will be both effective and efficient over
the time such resources will be deployed. Effective formal strategies contain
three elements: (i) the most important goals, (ii) the most significant
policies, (iii)the major
programmes. Strategy deals with unpredictable and unknowable. It is developed
around a few key concepts and thrusts. A well-formulated strategy helps to
marshal and allocate and organisation's resources into a unique and viable
posture in relation to the strengths and weaknesses of the organisation, the
anticipated changes in the environment and the contingent moves of the opponents.
Generally when we walk of organizational strategy, it refers organisation's top
level strategy. However, strategies exist at other levels also.
6. Programmes
A programme lays down the principal steps for accomplishing a mission and sets
an approximate time for carrying out each step. George Terry says, A programme can be
defined as a comprehensive plan that includes future use of different resources
in an integrated pattern and establishes a sequence of required actions and
time schedules for each in order to achieve stated objectives. Programmes
outline the actions to be taken by whom and where. A programme is made
up of objectives, policies, procedures, task assignment, budgets, schedules
etc. Examples of programmes are, building programme, expansion programme, moral
improvement programme, acquisition of the new line of business programme,
training programme, development of a new product programme, advertising
programme and so on. Programmes may be measure or minor, primary or derivative
and long-term, medium term or short term.
7. Projects
Often a single step in a programme is set up as a project. In fact a project is
simply a cluster of activities that is relatively separate and clear cut. Thus,
projects have some features of a programme but are usually parts of some
programmes. Building a hospital, designing a new package, building a new plant,
are some examples of projects. The chief virtue of a project lies in
identifying a nice, neat work package within a bewildering array of objectives,
alternatives and activities.
8. Budgets
A budget is a statement or a plan of expected results expressed in numerical
terms, such as man hours, units of production, machine hours, amount of
expenditure or any other quantitatively measurable term. Then it may be
expressed in time, money, materials or other quantitative units. Budget is
prepared prior to a definite period of time of the policy to be pursued during
that period for a purpose of a given objective. It introduces the idea of
definiteness in planning. A budget is an important control device also because
it provides standards against which actual performance may be measured.
Examples of budgets are, production budget, sales budget, material budget, cash
budget, capital expenditure budget, expenses budget and so on.
9. Schedules
A schedule is an operational plan, timetable of work that specified
time-periods (with beginning and completion time points) within which activity
or activities are to be accomplished. In order to keep the schedule realistic
and flexible, minimum and maximum time-periods may be specified. Three main
elements are involved in planning a schedules, (i) identification of
activities or tasks, (ii)determination of their sequence, (iii) specification of
starting and finishing dates for each activity as well as for teh sequence as a
whole. Scheduling is the process of establishing a time sequence for the work
to be done. Schedules translate programmes into actions. Scheduling is
necessary in all organisations with a view to providing for an even flow of
operations and to ensure completing of each task at the right time. While
planning schedule, the avialability of resources, processing time and the
delivery commitments should be kept in view. Due allowance should be made for
delays created by factors beyond the control of management as well as for
non-productive time.
10. Forecasts
Planning presupposes forecasting as the former is defined as deciding what is
to be done in future. Henri Fayol has described a plan as the synthesis of
various forecasts - annual, long-term, short-term, special etc. The targets
cannot be fixed with any degree of precision unless forecasts are made.
Forecasts are estimates of future events, providing parameters to planning.
Forecasts do not involve any kind of commitment of organizational resources.
Planning without forecasts is not possible. In fact, forecasts are predictions
or estimates of the changes in the environment, which may effect the business
plans. A manager has to make forecasts keeping in view the planning premises.
There are various types of forecasts, such as economic, technological,
political, social and so on. However, sales forecast is the basis of most
planning
Meaning and
Definitions of Control(Mnagment)
Define Control. Discuss
the importance of Control in organizational system also explain the elements of
control.
Meaning and Definitions of Control
Control is necessary function to make all other managerial functions effective.
Its ensures that the corporate goals are achieved effectively and efficiently.
Controlling is the process that the corporate goals are achieved effectively
and efficiently. Controlling is the process by which management regulates that
work activities according to designed plans, policies, procedures and
programmes so as to ensure the accomplishment of the organizational resources
and people in a direction leading to organizational goals.
some important definitions of control may be given as follows:
Henri Fayol
Control consists in verifying whether everything occurs in confirmatory with
the plan adopted, the instruction issued and principles established. It has for
object to point our weaknesses and errors in order to rectify them and prevent
recurrence. It operates on everything, things, people, action.
Theo Haimann and William Scott
Controlling is the process which check the performance against standards. It
makes sure that organisation goals and objectives are being met.
Robert Anthony
Management control is the process by which managers assure that resources are
obtained and used effectively and efficiently in the accomplishment of an
organisation's objective.
Weihrich and Koontz
Controlling is the measurement and correction of performance in order to make
sure that enterprise objectives and the plans devised to attain them are being
accomplished.
Characteristic
Or Features of Control(Mnagment)
Describe the
characteristics, nature and feature of control.
Characteristic Or Features of Control
Controlling has the following important features, which clearly bring out its
nature:
1. Control is a Continuous Process
Control is not a single step activity. Rather, it is a dynamic process that
involves constant analysis of actual and planned performance and the resultant
deviations as well as the revision of objectives, plans, policies, procedures,
positions, incentives etc in the light of such deviations.
2. Purpose of Control is Positive
George Terry says, the function of controlling is positive - it is to make
things happen, i.e. to achieve the goal within stated constraints, or by means
of the planned activities. Controlling should never be viewed as being negative
in character - as a hurdle in getting objectives won. Controlling is a
managerial necessity and a help, not an impediment or a hindrance.
3. Controlling is a exercise at all levels in the Management Hierarchy
Control is a function of every manager, from Chairman and Managing Director to
a supervisor, though it may vary in scope among managers. For example the top
managers are concerned with administrative control, which is exercised through
broad policies, plans and other directives. The middle level managers are
concerned with the executor control for the purpose of getting the plans,
policies, and programmes executed. At the lower level, supervisors exercise
operational control to ensure successful performing of actual operations or
production activities by their close monitoring.
4. Control Guides Behaviour of People and use of Resources and Facilities
Control guides the action and the behaviour of the people who are responsible
for carrying out different activities or operation, and also guide the use by
them of different organizational resources and facilities in order to
effectively and efficient, contribute toward accomplishment objectives.
5. Control is mainly Forwarding Looking
Control mainly aims at the future because future is a head and past in gone.
However, the experience about the criterion for future standards, but it may be
noted that control may also be past control and current control. Thus it is not
full correct to say that control is looking back.
6. Control Measures and Evaluate Performances
Controlling involves measurements of the actual results in order to facilitate
other evaluation or comparison against the planned results. It also suggests
guidelines for future course of action.
7. Control Facilities Coping with Environment
Effective controlling system foresees the likely changes in consumer
preferences and demands and therefore guides the members of the organisation to
modify the products or services to meet the anticipated needs and requirements
of the consumers in the future market.
8. Control Closely Related to Planning
Planning is the basis of controlling. Control implies the existence of certain
standards or yardsticks against which actual results are to be evaluated.
Planning provides such standards, if there is no plan; it means that there is
no basis for control. Planning sets the course of action and controlling
monitors the operation or activities to follow such course of action. In fact,
planning initiate the process of management and control completes this process.
Without a plan control is blind because it does not know where to go and
weather it is going on a right path or not. Control looks active in the company
of a plan because then it seeks to compel events to confirm to the plan.
Without a plan is handicapped. H.G. Licks comments, Planning is clearly a pre-requisite
for controlling, it is utterly foolish to think that controlling could be
accomplished without planning. Without planning there is no predetermined
understanding of the desired performance. In fact planning without
corresponding control is likely to be a hollow hope.
On the other hand, planning without control is not a reality. In the absence of
a control system, best designed plans may go astray and thus will fail to reach
their destination. Control ensures to the organizational activities and the
functions on the right track and aligned with plans and goals. Standards for
evaluation of performance are the beginning point of the control process.
Controlling indicates the need for revision of plans in case the standards are
not achievable or if the environment has changed. The information collected by
the control system is also useful for planning in future. Without control
planning will be a futile exercise remaining on the papers only. Control makes
plans meaningful and effective, similarly controlling is effective only when it
is specially tailored to plans.
Thus, it is correct to comment that planning is manning less without control
and control is aimless without planning. Weihrich and Kortz comments, Planning
and controlling may be viewed as the blades of a pair of scissors, the scissors
cannot work unless there are two blades. Without plans and objectives, control
is not possible because performance has to be measured against some established
criteria. Similarly, without control, realization of plans is not possible be
guided on the right path leading to the accomplishment of plans. This is why
that Weihrich and Koontz has commented as follows. Planning and controlling are
inseparable the Siamese twins of management. Any attempt to control without
plans is meaningless, since there is no way for people to tell whether they are
going where they want to go (the result of the tusk of control) unless they
first know where they want to go (part of the task of planning). Plans thus
furnish the standards of control. Thus, there is complete interdependence
between planning and controlling.
Define Group, why
they are formed?(Managment)
Define Group, why they are formed?
Group Defined
From times immemorial, man has lived in a social system (a large group), and
the family (a small group) is an integral part of it. On this earth, there are
groups, large or small, which influence our social system, social relations and
communication.
Group exists in every organisation and they effect the behaviour of their
members and also other groups. They have also impact on the whole organisation.
If one wants to study and organisation, one will have to understand the groups
existing in that organisation and their functioning. There are so many small
groups existing in that organisation. Such groups are formed by the
organisation by dividing its ultimate task into small tasks, which are assigned
to various subunits known as departments, sections units etc. Besides there are
many other groups, which are created automatically (may be called informal
groups) because of the operation of socio-pychological factors at the work
place.
The social process by which people interact fact to face in small groups in
called group dynamics. Interaction in small groups is not always governed by
rules, regulations and conventions though well established.
The word dynamics is originally a Greek word implying force. Thus, group
dynamics means the study of forces operating within a group in social interaction.
It concerns the interactions and forces between group's members in a social
situation. When the concept of group dynamics of members of formal and informal
groups in the organisation.
The term group dynamics has been interpreted in many ways. One view is that it
deals with how the groups are formed and function. The other view is that
groups dynamics is a state of techniques such as role playing, brain storming,
leaderless groups, group dynamics, thus should be viewed in terms of the
internal nature of groups, their information, structure and processes and the
way they affect individual members, other groups and the organisation. This
view is more prevalent.
Behaviour in Groups
Social variables influence the manner perception and judgement particularly in
a group setting. Focus should be on the individual. But the group itself should
be studied as a whole because the product of groups, interaction cannot be
indicative of the performance of the individual outside the group. Both the
composition and the behavioural history of a group are determinants of its
stimuli for the individual members. The groups also determines the nature and
patterns of reinforcement, the members receive in the course of their
interaction with another. The group influences the behaviour of individuals in
many ways such as in the form of conformity to group forms, group cohesiveness,
group participation, group competition and group problem solving. These
characteristics are found in both formal and informal groups.
Conformity to Group Norms
There are certain forms of the groups, which the group members are to follow:
they are expected to behave in the same manner. This normative behaviour of the
members helps the managers of the organisation to understand how and why an
individual will behave in accordance with the group norms. Group norms perform
two main functions.
First, norms help the group to achieve its goals: they bring uniformity of
action towards the goals. Second, norms help the group maintain itself a group;
these ensure that divisive forces in the group may be put under pressure
against their behaviour.
People conform to group forms also for their own benefit. But the degree of
conformity differs from member to member. Researches on this aspect of group's
dynamics present the following conclusion.
1. The degree of conformity to group forms depends upon the status of the group
and its members. Within a group, it has been observed that the higher the rank
of a person, the more nearly his activities conform to group norms.
2. Seniority also influences the degree of the conformity. A new person may be
expected to adhere more closely to norms than a senior person.
3. Pressure of conformity increases with the increase in the number of persons
agreeing to the norms.
4. On applying rigid standards to evaluate the forms, non-conformity as likely
to increase.
Group Cohesiveness
Group cohesiveness is a situation in which all members of the group together
for a common goal, or where everyone is ready to take responsibility for group
chores. The greater the group cohesiveness, the greater will be its influence
on the behaviour of members. Group cohesion brings low absenteeism and high
personal adjustments. Many factors bring cohesion in the group such as degree
of dependency on the group, size of the group, homogeneity and stable
membership, composition and outside pressure.
Participation
The effectiveness of the group is determined by the degree of participation of
its members in its functioning. The more the participation, the more effective
is it's functioning. Better participation results in high morale and better
labor-management relationships, in addition to increased productivity
What is
group cohesiveness? (Managment)
What is group cohesiveness? Also describe the factors influencing
cohesiveness.
Group Cohesiveness
The termcohesiveness implies solidarity. Group cohesiveness may be
characterized by the situation in which all members of the group work together
to achieve a common goal or where every one takes responsibility to work for
the group goals. Groups cohesiveness may be described as the force, which keeps
the members of the group together. The main aim of the groups is to satisfy its
members needs. The more needs are satisfies, the more attractive it becomes for
the members of the group. Cohesion is essential not only for the existence of
the group but also for the achievement of the group's objective. If group
cohesion is high, the interaction between members will high.
Cohesiveness has a direct bearing on group behaviour. The greater the group
cohesiveness, the greater will be its influence on the member's behaviour. A
cohesive group is able to act as one body to achieve its goals. In a
cohesiveness group, group members are apt to conform to group norms. Conformity
to group norms is essential for the effective functioning of the group. Thus,
conformity and cohesiveness are interrelated and are reinforcing factors.
According to Shaw, members of highly cohesive groups are more energetic in
group activities, are less likely to be absent from group meetings and are
happy when the group succeeds and sad when it fails, where as members are not
dedicated to the group and its purposes their loyalty and support are mediocre
or variable.
Factors Influencing Cohesiveness
There are several forces that bring cohesion in the group:
1. Degree of Dependency on the Group
Members join the group because it satisfies certain needs. The more highly
dependent a person is on the group for his need satisfaction the greater will
be the group attractiveness and consequently greater is its cohesiveness.
2. Size of the Group
Size of the affects interaction among group members in inverse direction and
also affects group cohesiveness. The larger the group size, the lesser the
cohesiveness, due to problems of interaction among members of the groups, lack
of appreciation of each other's problem. Difficulty arises is achieving the
common goals if the group. It is one of the reasons why informal group are smaller
in size.
3. Homogeneity and Stable Membership
Groups whose members have diverse interests and different and also affects
group cohesiveness. The larger the group size the lesser the cohesiveness due
to problems of interaction among members of the group, lack of appreciation of
each other's problems Difficulty arises in achieving the common goals if the
group is large. Hence the entire group dynamics revolves round the small group.
It is one of the reasons why informal group are smaller in size.
4. Inter and Intra Group Competition
Competition among groups (inter-group) and competition among members of the
groups (intro-group) have different effects on group get united and the group
sets solidified. The solidarity continues among members of the winning group
whereas the losing group gets weakend. Success resulting from inter-group
competition increases cohesion further. The member of the losing group, if they
have no hope of revival of prestige of the group, gradually leaves the group.
The picture is different when competition is among the members within the
group. If the rivalry is healthy, members stand to gain. But, generally,
intra-group rivalry among members takes the form of jealousy that results in
the weakening to group cohesiveness. There may be three possible causes of
intra group competition:
* When members or sub-groups within the group adopt different methods to
accomplish the same goal
* When there are differences regarding the goal or goals of the group among
members
* When goals of individual members clash with group goals.
5. Outside Pressure
When there is outside pressure or threat to group survival, the group members
sink all their differences and join hands together to meet the challenges to
the group. Hence, outside pressure or threat is a cementing force and increase
group cohesiveness.
6. Customs and Traditions
If members share the same customs and traditions, they become familiar with one
another in no time and also they are benefited from one another knowledge and
experience. This commonness prevents the entry of any other person who does not
follow the same traditions. This develops a feeling among members that they are
distinct from others. This increases interpersonal relationships among members.
7. Location
People who work at the same geographical location tend to be close to one
another and have numerous opportunities to interact and exchange ideas,
resulting in cohesiveness of the group. But groups are not cohesive when their
members do not work within the same geographical limits.
Group Cohesiveness and Productivity
Group cohesiveness and productivity do not seem to be related. Highly cohesive
groups need not necessarily be highly productive or vice versa. Researches also
could not establish any relationship, positive or negative, between these two
variables. However it has usually been observed that a cohesive group is more
productive than a less cohesive group, the group's attitude favors the goals of
the organisation. As the members of the group they follow the guidelines
prepared by the group.
If the group supports the organizational goals, the members will tend to
produce more. On the other hand, where cohesiveness is high but the group does
not favor the organizational goals, productivity of the member's declines.
Where the group norms are not supportive of performance, cohesive groups are
less productive. When resistance to organizational changes is greater and where
proper leadership is not provided, such groups can affect productivity severly.
If management wishes to minimize productivity, it must build cohesiveness,
which does not directly influence productivity but only indirectly depending
upon the alignment of group goals with the organizational goals.
Meaning and
Definition of Organisation(Managment)
Explain the term organisation. Why is it regarded as the foundation
upon which the whole structure of management is built?
OR
Define organizing. Explain the nature and process.
Meaning
and Definition of Organisation
We live in the age of organisations. Modern civilization requires large
aggressions of people working together to produce the goods and services
efficiently. Organisations are grand strategies created to bring order out of
chaos when works together. The structure resulting from three things is known
organisation. (i) identifying and grouping of work, (ii) defining and
delegating authority and responsibility, and (iii) establishing
relationships among those who are engaged in performing group activities.
Without defined relationships, there will be no organisation. Peter Drucker
rightly says, An institution (organisation) is like a tune it is not
constituted by individual sounds but by the relating between them. Organisation
is a dynamic tool for interweaning six M's, Men, Money, Machines, Materials,
Methods and Markets. People work for organisation's objectives and manage its
affairs for achieving them effectively and efficiently.
Some important definitions of organisation may be given as follows:
Hodge and Johnson
An organisation can be thought of as a complex relationships among human and
physical resources and work, cemented together into a network of system.
James Mooney
Organisation is the form of every human association for attainment of a common
purpose.
J.L. Massie
Organisation is the structure and process by which a cooperative group of human
beings allocates its tasks among its members, identifies relationship and
integrates its activities towards common objectives.
George Terry
Organizing is the establishing of effective Behavioural relationships among
persons so that they may work together efficiency and gain personal
satisfaction in doing selected tasks under given environmental conditions for
the purpose of achieving some goal or objectives.
Organisation Concepts
Every scholar has defined organisation from his own perception. But in all,
there are three concepts of organisation as follows:
1. Structure
2. Process
3. System
1. Organisation as a Structure
Weihrich and Koontz point out, Organisation implies a formalized intentional
structure of roles or positions. Organisation structure may be defined as the
established pattern of relationships among the component parts of an enterprise.
In this sense, organisation structure refers to the network of relationships
among individuals and positions in an enterprise. It is the network of
horizontal and vertical relationships among the members of group designed to
accomplish some common objectives. This network governs the activities of
people in the form of a social group. The horizontal dimension shows
differentiation of job into departments, divisions or sections. The vertical
dimension reflects what is known as hierarchy or chain of command, of
authority. The organisation structure is the skeleton framework of business
enterprise. Thus, the organisation structure implies the following things.
(a). Division of labour into group activities under departments, divisions or
sections and also into various positions.
(b). Assignment of tasks and activities to different persons and departments.
(c). The formal relationships with well-defined responsibilities.
(d). The hierarchical relationships with allocation of authority between
superior and subordinates - delegation and decentralization of authority.
(e). Span of control with defined number of subordinates under a superior.
(f). Coordination among different departments and people.
(g). A set of policies, procedures, standards (goals) and methods of evaluation
of performance, all formulated to guide the people and their activities.
However, the actual operations and behaviour of people are not always governed
by the formal structure of relations. Hence, the formal structural arrangements
are affected and modified by social and psychological forces combined known as
informal organisation.
2. Organisation as a System
Organisation as a system implies the component parts, each of which has its
unique properties, capabilities and natural relationships and thus all are
interrelated and interdependent. Hence, system implies an arrangement and set
of relationships among multiple parts operating as a whole, each part being
called a sub-system. Every sub-system is itself a system composed of smaller
interrelated parts of sub-system. The system produce synergic effect which
means that the sum of all the parts is greater then the whole i.e., 2 + 2 =
more than 4. Organisation as a system also implies that it is an open system,
which means that it interacts with its environment for its survival, growth and
development. An organisation as a socio-technological system consists of the
following components or elements:
(a). Inputs
The system takes certain inputs from its environment. These inputs are human
resources, physical resources and facilities, energy, supplies, technology and
information.
(b). Processing or Transformation
Processing or transformation involves the utilization of the inputs through
some specified technique to convert them into outputs. A number of sub-systems
are created for processing or transformations purpose, such as production,
finance, personnel and research and development. Interrelatedness and
interdependence of all these sub-systems is kept in mind.
(c). Output
The processing or transformation technique results in output that may be
intended and unintended. Intended outputs are usually called objectives or
goals. For example, high productivity and efficiency we intended objectives.
The output may consist of goods and services. An unintended output may be
informal relation among the group members.
(d). Distribution
For distributing the output to the target market or consumers, several
sub-systems may be created, such as sales, marketing, advertising, etc.
Distribution may be done directly or through intermediaries known as
wholesalers, semi-wholesalers and retailers.
(e). Management
The management component of the organisation system is concerned with the
determination and implementation of processing and distribution activities in
order to achieve system's goals. It involves planning, organizing, staffing,
directing and controlling.
(f). Feedback
For effective managing, feedback of information with regard to the quality,
quantity, cost and time of system outputs is necessary. It also helps in
establishing and enforcing standards for desired results. It facilities
corrective action wherever needed in the system.
(g). Environment
The management components helps in coping with the environment, which is
complex and fast changing in the modern world. Management takes adequate steps
needed for availing the opportunities and averting the threats in the
environment. If the organisation system intends to survive, grow and develops,
it has to interact properly and successfully with its environment.
3. Organisation as a Process
Organisation as a process is known as organizing. Weihrich and Koontz point
out, Organizing is (1) the identification and classification of required
activities, (2) the grouping of activities of activities necessary to attain
objectives, (3) the assignment of each grouping to a manager with the authority
(dilatation) necessary for coordination horizontally (on the same or a similar
organizational level) and vertically (for example, corporate, headquarters,
division, and department) in the organization structure.'
Importance
of Organisation?(Managment)
What is the importance of Organisation?
Organisation is needed in order to avert the havoc of disorganisation.
It may be briefly illustrated as follows: A short sentence is disorganized like
this, riirggnagesnoiztlsuse. In this form it is
nonsense. If we reorganize it substantially, it will look like this: Organizinggetsresults Now it is workable, but
difficult. By a slight change, it reads: Organizing gets results. Hence organization
become important for management by results - for accomplishing our goals.
A sound organization contributes greatly to continuity, growth and development
of an enterprise in the following ways:
1. Facilities Administration
A properly designed organization facilitates both management and operation of
the enterprise by helping in its smooth functioning through various factors,
such as well-defined areas of work for employees; effective delegation and
decentralization of authority; clear mutual relationships; good communication
network; coordination of the activities of individuals, groups and units,
adequate and control.
2. Facilitates growth, expansion and diversification
A sound organization structure is flexible enough to accommodate future changes
with regard to growth expansion and diversification of enterprise's activities.
Besides, certain organization practices are developed which lead the business enterprise
to expand and diversify.
3. Permits Optimum Utilization of Resources
Sound organisation permits optimum use of technological improvements and human
resources and efforts (right persons being placed in right positions on the
basis of their skills, knowledge and experience). It develops competent people
through the facility of appropriate effective training and promotion
opportunities.
4. Stimulates Creativity
Specialization provides individuals with well-defined duties, clear lines of
authority and clearly defined responsibilities. Delegation and decentralization
makes it possible for superiors to assign routine and repetitive jobs to their
subordinates and to concentrate themselves on important issues in order to
better exploit their own potential and encourage the creative thinking and
innovative skills of the people.
Organisation Charts(Managment)
What are Organization Charts? Discuss their advantages and
limitations.
Organisation Charts
Organisation structure is represented primarily by means of a graphic
illustration called an organisation chart. An organisation chart is a diagram
depiciting organisation's formal positions and formal lines of authority. In
fact, it is structural skeleton of an enterprise's heirarchy of management.
Organisation charts are a means of avoiding conflict by clarification. With
their familiar pattern of boxes and connecting lines, these charts are used as
a management tool for deploying human resources.
An organization chart shows two dimensions of the structure: (a) the vertical
authority structure, such as official positions, span of management, heirarchy
of command, etc and (b) the horizontal differentiation of work activities such
as work units or departments. It reflects the pattern of authority flow from
top management to the lower levels. It also shows managers, ranks and
jurisdications, types of authority relationships, line, staff or functional -
communication lines throughout the organization, the number of levels in the
managerial hierarchy, the span of management and the relative status of
different managerial positions and departments. Organisation charts also help
in reflecting as to who reports to whom - who is superior and who is
subordinate, how many subordinates are accountable to a superior and what are
the avenue, open for advancement of a manager holding a particular position in
the chart.
The organisation structure can be diagrammed into an organization chart in
three different ways:
(a). The traditional or conventional vertical chart shows the
position of the chief executive at the top of a pyramid form, from where the
authority flows downward. The managers towards the top of the pyramid have more
authority than those who are towards the bottom.
(b). The horizontal chart originates from its left and proceeds to the right, depicting the
chief executive's position at the extreme left and placing the successively
lower managerial positions towards the right end.
(c). The circular or concentric chart places and
shows the chief executives position at its center and other middle and lower
level managerial position radiate from the center in concentric circles, the
lowest managerial positions being placed on the outermost circle.
The horizontal and circular charts represents a healthy departure to the extent
that they de-emphasize the hierarchical, i.e., bureaucratic nature of
organisation structure. However, vertical charts are still common in practice.
Normally, the greater the height of a vertical chart, the smaller the span of
management and the lower the height, the greater the span of management.
Organisation charts with little height are usually referred to as flat and
those with much height as tall.
Advantages of Organisation Charts
They are useful in several ways as follows:
·
Organisation
chart is a means to indicate graphically how the managerial positions fit into
the total organisation and how they relate to each other.
·
It
shows at a glance the lines of authority and reporting pattern.
·
It
provides a conceptional background to identify inconsistencies and deficiencies
and thereby helps in deciding for further improving modifications to cope with
future demands of the changing environment.
·
It
serves as a reliable blueprint for newly recruited personnel who may understood
the structure of the organisation and the interrelationships among its various
work units.
·
It
provides a framework of personnel classification and evaluation systems.
Limitations of Organisation Charts
Organisation chart depicts only a static view of the organisation, while the
organization is a dynamic concept.
·
It
shows only the formal relationships and fails to describe informal
relationships in the organisation, though informal relationships are equally
important and significantly affect the functioning of the organization.
·
It
does not show the quality and content of the managerial relationships that
actually exist in the organization, but shows only the 'supposed
relationships'. Thus, it fails to tell about the effectiveness of various
elements, processes, and other structural dimensions within the organization.
·
Organization
charts become quickly outdated because they fail to incorporate into them the
frequent changes or alternations taking place in the organization structure and
in the patters of authority and activity relationships
Decentralization
of Authority (Managment)
What is meant by Decentralization of Authority?
Decentralization
of Authority
Decentralization of authority means dispersal of decision - making power to the
lower levels of the organisation. According to Allen, decentralization refers
to the systematic effort to delegate to the lowest level all authority except
that which can only be exercised at central points. Thus decentralization means
reservation of same authority (power to plan, organize, direct and control) at
the top level and delegation of authority to make decision at points as near as
possible to where action takes place.
Decentralization is not same thing as delegation. Delegation means entrustment
of responsibility and authority from one individual to another. But
decentralization means scattering of authority through the organization. It is
the diffusion of authority with in the enterprise. Delegation can take place
from one person to another and be a complete process. But decentralization is
complete only when the fullest possible delegation is made to all or most of
the people.
Decentralization is distinct from dispersion
Dispersion occurs when plants and offices are located at different place with
physical distance between them. Performance of work in dispersed plants and
offices does not necessarily lead to decentralization. A company may be highly
centralized although its physical facilities and employees are widely dispersed
and company may be highly decentralized even through all physical facilities
and employees are located in a single building.
Distinction Between Delegation and Decentralization
The points of distinction between and decentralization are given below:
1. Delegation is a process of devolution of authority where as
decentralization.
2. Delegation take place between a superior and a subordinate and is a
complete process. It may consist of certain tasks alone. But decentralization
involves spreading out the total decision - making power.
3. In delegation control rests entirely with the superior or delegator but in
decentralization, the top management may exercise control only in a general
manager and delegate the authority for control to the departmental manager.
4. Delegation is a must for management. Subordinates must be given sufficient
authority to perform their assignments otherwise they will come to the superior
time and again even for minor decisions. However, decentralization is optional
in the sense that the top management may or may not decide to disperse
authority.
Principles of Staffing. (Managment)
Explain the principles of Staffing.
Principles
Staffing not only helps in acquiring right talent, but also strives for
nurturing. There are no universally accepted staffing principles. However,
Heinz Weihrich and Harold Koontz have identified certain useful major
principles or guidelines for understanding and performing more effective
staffing function.
1. Principle of the Objective of Staffing
The objective of managerial staffing is to ensure that those qualified
personnel who are able and wiling to occupy them fill organisation roles. There
is considerable evidence of failure to achieve results when these qualities are
lacking.
2. Principle of Staffing
The clearer the definition of organisation roles and their human requirements
and the better the techniques of manager appraisal and training employed, the
higher the managerial quality. Those organisations that have no established job
definitions, no effective appraisals and no system for training and
development, will have to rely on coincidence or outside sources to fill
positions with able managers. On the other hand organizations applying the
systems approach to staffing and human resource management, will utilize the
potentials of individuals in the enterprise more effectively and efficiently.
3. Principle of Job Definition
The more precisely the results expected of managers are identified, the more
the dimensions of their positions can be defined. Since organizational roles
occupied by people with different needs, these roles must have many dimensions
- such as pay, status, power, direction and possibility of accomplishment -
that induce managers to perform.
4. Principles of Managerial Appraisal
The more clearly variable objectives and required managerial activities are
identified, the more precise can be the appraisal of managers against these
criteria. This principle suggests that performance should be measured both
against verifiable objectives (as in an appraisal approach based on management
by objectives) and against standards of performance as managers. The appraisal
of managers as manager considers how well the key managerial activities within
the functions of planning; organizing, staffing, directing and controlling are
carried out.
5. Principle of Open Competition
The more an enterprise is committed to the assurance of quality management, the
more it will encourage open competition among all candidates for management
positions. Violation of this principles has led many firms to appoint managers
with inadequate abilities. Although social pressures strongly favour promotion
from within the enterprise, these forces should be resisted whenever better
candidates can be brought in from the outside. At the same time, the
application of this principle obligates the enterprise to appraise its people
accurately and to provide them with opportunities for development.
6. Principle of Management Training and Development
The more management training and development are integrated with the management
process and enterprise objectives, the more effective the development
programmes and activities will be. This principle suggests that in the systems
approach, training and development efforts are related to the managerial
functions, the goals of the enterprise and the professional needs of managers.
7. Principle of Training Objectives
The more precisely the training objectives are stated; the more likely are the
chances of achieving them. The analysis of training needs is the basis for
training objectives that give direction to development and facilitate the
measurement of the effectiveness of training efforts. This principle brings
into focus the contribution that training makes to the purpose of the
enterprise and the development of individuals.
8. Principles of Continuing Development
The more an enterprise is committed to managerial excellence, the more it
requires that manager practice continuing self-development. This principle
suggests in a fast-changing and competitive environment, that managers cannot
stop learning. Instead, they have to update their managerial knowledge
continuously, revaluate their approaches to managing and improve their
managerial skills and performance to achieve enterprise results.
Types
of Interviews (Managment)
Describe the various types of interviews.
Types of Interviews
In general, there are several types of interview's, which may be briefly
discussed as follows:
1. Unstructured Or Non-Directive Or Informal Or Traditional Interview
In an unstructured interview, there are no predetermined questions or
prearranged sequence of topics for discussion. Consequently, by design
unstructured interviews are highly flexible and informal - no fixed questions
format or systematic scoring procedure. Interviewers are free to probe into
those areas seeming to deserve further investigation and to adapt (alter) their
approach to the prevailing situation, as well as to changing stream of job
applicants. Spontaneity characterizes this type of interview. Its direction is
large determined by a job applicant's answers. To be effective, an unstructured
interview requires highly skilled and trained interviewers. Experience shows
that, if properly conducted, an unstructured interview can lend to significant
job-related insights. However, such interview is highly susceptible to
distortion, bias, inconsistency and difficult verification of its results.
2. Structured Or Patterned Interview
Structured interviews are recommended as alternative to traditional
unstructured or informal interview. A structured interview may be defined as a
series of job-related questions with standardized answers that are consistently
applied across all interviews for a particular job. In this interview
standardized questions are asked from all applicants for certain jobs and a
standard form is used for recording responses. Standardization permits easy
comparison of candidates. It also helps in achieving and proving validity. Of Course,
no interview can be completely unstructured or nondirective and it is hard to
conceive of an interview that is totally structured or patterned.
Generally, structured interviews are constructed, conducted and scored by a
committee of three to six members so as to try to eliminate bias. The
structured interviews are more likely to provide consistent and reliable
information from the various interviewers. Furthermore, if the specific
interview questions in a format are drawn from an accurate job analysis, then
structured interviews are also more likely to be valid. However, such
interviewers have limited flexibility. The unstructured interview format (form)
restricts adaptation (alteration) to unusual circumstances or unusual
interviews. Such interviews do not afford the opportunity to the applicants to
demonstrate their job knowledge, communication skills, etc.
3. Stress Interview
Most interviews try to place interviewees at ease. However, the opposite is
true in the stress interview. It is specifically intended to determine a job
applicant's interviewer purposefully attempts to create a climate of
intimidation (threat), criticism and ridicule (mockery or making some one
appear foolish or worthless). The purpose is to deserve the interviewee's
reaction to stress and tension. This approach is based on the theory that
certain personal traits, for example, emotional stability, can be deserved only
when an individual is placed in stressful surroundings. Thus, an interviewer
may deliberately interrupt an applicant in his mindsentence, cast aspersions on
an applicant's character, remain silent for protracted (longer) periods of time
and adopt a hostile posture in an attempt to create a pressurized situation.
The extent which stress interviews are useful is debatable. Some justify its
use when the concerned job position is particularly stressful, for example, law
enforcement officer, airline pilot, sales representative, or fire fighter.
However, some critics contend that the kind of stress created in an interview
is rarely similar to that found on a job. Moreover, there are not very many
positions in which the ability to cope with stress in a primary
characteristics.
4. Group Interview
Interview also differs according to how many interviewers and applicants are
involved. Normally, job applicants meet with interviewers one-on-one, i.e.,
individually. However, in the group interview, several applicants questioned
together by one or more interviewers. A small group of fine or six candidates
is observed and evaluated in group discussions and interactions, by the
selectors.
5. Series Interview
For certain types of jobs, especially managerial jobs candidates may be
required to go through a series of interviews of a progressively rigorous
nature.
6. Board Interview
For important jobs, especially those of a political nature the board interview
may be used. Here several interviewers, often members of a government board or
committee, quiz one or more candidates.
Meaning of Span
of Management (Managment)
What do you understand by Span of Management? Explain the factors
that determine the Span of Management. What is the impact on Organization?
OR
The Span of Management is the corner stone concept in traditional Management
theory. Do you agree?
Meaning of Span of Management
The term Span of Management is
also known as Span of Control or Span of Authority or Span of Supervision. Simply stated Span of
Management means the number of subordinates that a manager can effectively
manage. This concept implies that the number of subordinates directly reporting
to a superior should be limited so as to make supervision and control
effective, because executives have limited time and ability. It is an accepted
proposition that the larger the number of subordinates reporting directly to a
manager, the more difficult it will be for him to supervise and coordinate
their activities effectively.
What is an Ideal Span?
It is sometimes suggested that the span of management should neither be too
wide nor too narrow. Then, the question arises as to how many persons a
supervisor can manager effectively. Some experts tell that the ideal span is 4
at higher levels and 8 to 12 at lower levels. But the number of subordinates
cannot be easily determined because the nature of jobs and capacity of
individuals vary from organization to organization.
Classical View of Span of Management
The first person to draw attention to the principle of span of management was a
British General, Sir Iaan Hamilton (1920) who said that the average human brain
can be effective in handling from 3 to 6 other brains. After a lengthy study of
military organisations, he concluded that the span should be smaller at the top
of the organisation, where thought processes were more complicated and that it
should set progressively larger toward the lower levels, where thought
processes were less complicated and more routine.
V.A. Graicunas (1933) suggested that as the number of subordinates increases
arithetically, the number of potential relationships, between the superior and
subordinates increases geometrically. For example, Graicunas indicates that if
a superior manages 2 subordinates, there are actively 6 different
relationships. Thus, he pointed out that an increase in the number of
subordinates causes almost an explosive growth in the number of possible
relationships. Hence, only number of bodies in a span should not be counted,
but the multifarious relationships generated by the numbers must also be
recognized while deciding for the span of individual manager.
Classical writers advocated a span of control ranging from 3 to 7 or 8 persons
at the higher levels and a span of 20 to 30 persons at the lowest level.
Modern View of
Span of Management (Managment)
Describe the
modern view of Span of Management.
Modern View of Span of Management
Contingency Or Situational Approach (Factors Determining Span of Management
The evidences indicate that spans of control cannot be stated in absolute terms
as done by the classical scholars. There is no correct span for all situations.
The predominant current view is to look for the causes of limited span in
individual situations, rather than to assume that there is a given numerical
limit generally applicable to all. Pragmatically speaking, a really proper span
of control is one that is not improper.
Modern Approach has shifted away from trying to find out a universal formula of
span of management. Instead of emphasizing absolute spans (specific numbers),
the current view is that span is more flexible thing, and there is no one
correct span for all situations. The appropriate number of span of control for
a particular manager is contingent on several factors that may be discussed as
follows:
1. The Capacity and Ability of the Superior
The personal abilities and influence of the superior (manager) play an
important role in determining the number of subordinates that can be
effectively supervised by him. If the superior possesses qualities of
leadership, decision-making ability, communication skill, motivating strength
and time management expertise, in greater degree, that the span of control may
be wider. In other words, if the superior (executive) can comprehend problems
quickly, can get along well with people and can command loyalty and respect
from the subordinates, then he can supervise a large number of subordinates
effectively.
2. The Capacity and Skill of Subordinate
In case the subordinates are competent, well trained, experienced and have good
judgement, initiative and a sense of obligation, then they seek less guidance
from their superior and therefore the superior manager will be in a position to
supervise a large number of subordinates. On the other hand, if the manager has
no confidence in the capacity and caliber of his subordinates, then the span
will be restricted to be narrow.'
3. Nature and Importance of Work Supervised
If the work is simple and repetitive, the span of management may be wider,
because it does not require much attention and time on the part of the
superior. On the other hand where the subordinate's job is complex requiring
close supervision by the superior, then the number of persons under him should
be narrow or small. Such characteristics generally indicate whether jobs are
easy or complicated, dissimilarity of jobs assigned the number of new problems
that may be encountered, the need for frequent consultations and communication,
the physical dispersal of jobs, geographically location of members, nature of
decision making by the subordinates and so on. The more a subordinate's job
involves unpredictability, variety, discretion and responsibility, the smaller
span is likely to be.
4. Clarity of Plans and Responsibility
If the plans and policies are clear and easily understandable and if the
functions and responsibilities are laid down in as definite terms as possible,
the the task of supervision is easier and the span of management can be wider
because the subordinates need not go to superior frequently for orders,
instructions and guidance.
5. Degree of Decentralization
If there is proper delegation and decentralization of authority, then the
superior can successfully supervise a large number of subordinates, because in
that case he has not to take any decisions himself and merely provides
encouragement and occasional direction. In case of centralization of authority,
the span will be narrow.
6. Staff Assistants
When staff assistants (experts) are employed to advise and serve the superiors
and the subordinates, then contract between the superior and the subordinates
may be reduced and the span be broadened.
The Impact of the Span of Organisation
The actual span of supervision affects the organisation in different ways. The
structure of organisation produced by the narrower span is called tall organisation, and the wider span
produce what is known as flat organisation. The narrow span requires multiple levels of supervision and
hence longer time for communication. Tall organisation is more expensive and
complicates the process of communication and integration. A narrow span results
in harassed subordinates and frustrated superiors. However, a narrow span
enables managers to exercise close supervision and control and wherever these
are needed, the narrow span is better suited.
Conversely, a wider span results in fewer levels of supervision. The flat organisation
facilitates better communication and coordination, but it permits only general
supervision due to the limited availability of time. The wide span results in
harassed superiors and frustrated subordinates.
Robert House and John Miner (1969) have summarized the entire question of span
of management as follows:
1. Under most
circumstances the optional span is likely to be in the range of 5 to 10.
2. The larger spans (say 8
to 10) are most often appropriate at the highest policy making levels of an organisations.
3. The number of effective
spans of first-line supervisors is contingent upon the technology of
organisation.
4. Appropriate span for
specific situations depends on a set of local factors (for example, task,
interdependencies and leadership skills).
Meaning
and Definition of Planning(Managment)
Define Planning and discuss its main
characteristics.
OR
Discuss the advantages, limitation and principles of Planning.
OR
What is planning? Outline the steps in planning process.
OR
What is the concept of planning as an element of Management process? Discuss
its nature and role in a modern business organisation.
Meaning and Definition of Planning
Planning is thinking in advance or before doing something. All kinds of
organisation do planning. Planning helps us in looking into the future.
Planning establishes goals or objectives and identifies the ways to achieve
them. A plan is a predetermined course of action to be taken in future.
George Steiner
Planning is a process that begins with objectives, defines strategies,
policies and detailed plans to achieve them.
Peter Drucker
Planning is the continuous process of making present entrepreneurial (risk
taking) decisions systematically and with best possible knowledge of their
futurity.
Nature of Characteristics of Planning
There are a number of features or characteristics of planning that indicate
towards its nature. These may be outlined as follows:
1. Goal-Oriented
Planning is goal-oriented in the sense that plans are prepared and implemented
to achieve certain objectives.
2. Basic to all Managerial Functions
Planning is a function that is the foundation of management process. Planning
logically precedes all other function of management, such as organizing,
staffing etc because without plan there is nothing to organize nothing to
control. Every managerial action has to be properly planned.
3. Pervasive
Planning is a function of all managers, although the nature and extent of
planning will vary with their authority and level in the organisation
hierarchy. Managers at higher levels spend more time and effort on planning
than do lower level managers.
4. Interdependent Process
Planning affects and is affected by the programmes of different departments in
so far as these programmes constitute an integrated effort.
5. Future Oriented
Planning is forward looking and it prepares an enterprise for future.
6. Forecasting Integral to Planning
These essence of planning is forecasting. Plans are synthesis of various
forecasts. Thus, planning is inextricably (inseparably bound up with planning).
7. Continuous Process
Planning is an ongoing process. Old plans have to be revised and new plans have
to be prepared in case the environment undergoes a change. It shows the dynamic
nature of planning.
8. Intellectual Process
Planning is a mental or conceptual exercise. It therefore involves rational
decision making, requires imagination, foresight and sound judgement and
involves thinking before doing thinking on the basis of facts and information.
9. Integrating Process
Planning is essential for the enterprise as a whole. Newman and others have
drawn our attention towards this feature of planning, without planning, an enterprise will soon disintegrate
the pattern of its actions would be as random as that made by leaves scampering
(running quickly in short steps) before an autumn wind and its employees would
be as confused as ants in an upturned anthill. If there are no plans action will be a random activity
in the organisation instead there will be chaos.
10. Planning and Control are Inseparable
Unplanned action cannot be controlled, without controlled, planned actions
cannot be executed. Plans furnish standards of control, In fact Planning is meaningful without control and control is
aimless without planning. Planning
is measuring rod of efficiency.
11. Choice among Alternative Courses of Action
The need for planning arises due to several ways available for an action. If
there is only one way-out left, there is no need for planning.
12. Flexible Process
The principle of navigational change (i.e. change according to changes in environment) applies to planning. In other words, effective planning requires continual checking on events and forecasts and the redrawing of plans to maintain a course towards desired goals. Thus, plans have to be adaptable to changing circumstances.