Management History :

Management in business and organizations means to coordinate the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprisesplanning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financialresources, technological resources, and natural resources.

1909: Peter Drucker is born, writes first book. No, just kidding. But the prolific 93-year-old author (36 books and counting!) is still the most influential and wide-ranging management thinker of the 20th century. His work has provided a blueprint for the modern corporation, from human resources to research and development to finance to manufacturing.

1911: RISE OF THE MACHINES An American engineer named Frederick Winslow Taylor publishes The Principles of Scientific Management, single-handedly creating "Taylorism," the first modern management craze. Inspired by the rise of the Industrial Age, Taylor encourages managers to think of their employees as specialized, replaceable components. By studying work methods and directing people more precisely, bosses could "secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee." BENEFITS A certain ruthless efficiency. DRAWBACKS Cogs have feelings too; Taylorism could turn your workplace into a socialist hotbed. CULTURAL RESPONSE Charlie Chaplin's proletarian stooge in Modern Times.

1923: MANAGING BY COMMITTEE Alfred P. Sloan becomes president of General Motors and creates a decentralized bureaucracy that will help make GM the leading car and truck manufacturer in the world. Instead of controlling his entire organization, Sloan--gasp!--delegates. Division leaders become responsible for meeting revenue and profit expectations, and are subject to price controls and budgets meted out by a central executive committee. BENEFITS A limber, more accountable organization that encourages ingenuity. DRAWBACKS Obvious to anyone who's ever had to sit through an executive committee meeting. CULTURAL RESPONSE Sloan's 1964 bestseller, My Years With General Motors, which created the genre of the mass-marketed CEO autobiography.

1927-32: THE KINDER, GENTLER WORKPLACE The National Research Council co-funds the "Hawthorne Experiments," a series of studies to determine what motivates workers. They find that Taylor was wrong: Workers aren't just machines who are motivated only by wages. They are people whose emotional needs must be addressed. The role of the authoritarian leader is downplayed; instead, group decision-making becomes the norm. The Human Relations Movement is born. BENEFITS Happier workers and a more humane worldview. DRAWBACKS Take this stuff too far and your office will be filled with beanbag chairs and silly bonding exercises like "Lazer-Tag Wednesdays." CULTURAL RESPONSE The assumption that every division chief should be intimately familiar with psychologist Abraham Maslow's Hierarchy of Needs.

1938: David Packard and Bill Hewlett form Hewlett-Packard. Their supervisory style, "Management by Wandering Around," encourages bosses to leave their offices and chat with their employees. (They're discouraged from starting conversations with "So, I was enjoying some foie gras on my yacht the other day....")

1945: Tom Peters--the enthusiastic management guru and author of In Search of Excellence, Re-imagine! and The Work Matters!--is born. His first word: "!"

1950: QUALITY IS JOB ONE W. Edwards Deming, a consultant and former statistician for the U.S. Census Bureau, gives his first lecture to the Union of Japanese Scientists and Engineers, preaching the concept of "quality management." The basic idea: Profit comes from repeat customers, so every person in a company should be focused on making the highest-quality product possible, not meeting management-mandated sales quotas; any resemblance to the old top-down management structure should be abolished. Japanese businesses quickly adopt his tenets, but it takes the U.S. until the 1980s--after NBC airs a documentary called "If Japan Can Do It, Why Can't We?"--to catch on. BENEFITS "Let's make the best damn widgets in the world!" is more Inspiring than "Let's increase revenues in our widget division by 17.8%!" DRAWBACKS An all-or-nothing approach that can require completely upending your company. CULTURAL RESPONSE Oh, about a million PowerPoint presentations that open with a slide reading the customer is king!

1978: CEOS THAT SAVE THE WORLD In his book Leadership, James MacGregor Burns, a presidential biographer and scholar, develops the doctrine of "transformational leadership," which holds that a leader's job is to determine how his company and his employees can benefit society. BENEFITS You're not just a money-grubbing capitalist, you're changing

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the world. DRAWBACKS Grandiosity. "Our online dry-cleaning service is a fundamental step forward for American democracy!" CULTURAL RESPONSE The Beatles' "Revolution" is used to sell basketball shoes.

1984: Chrysler's Lee Iacocca publishes Iacocca: An Autobiography, introducing the age of the celebrity CEO. Suddenly it's not enough for businesspeople to be rich and powerful; they've got to be famous too.

1990: AT YOUR SERVICE Robert Greenleaf, a former AT&T manager, dies. But during the next decade the philosophy of "servant leadership," which he created in the 1970s --stating that the main role of a leader isn't to single-handedly pursue some higher goal, but to act as a servant who keeps his employees happy--catches on. BENEFITS Let's see. Your employees do more work, and you get credit for being a modest, empathetic boss? Sweet! DRAWBACKS Say goodbye to that executive washroom. CULTURAL RESPONSE The cult of Southwest Airlines CEO Herb Kelleher; Ross Perot's anti-elitist presidential campaign.

2001: Daniel Pink publishes Free Agent Nation: The Future of Working for Yourself, arguing that workers no longer need companies to employ them. A year or two later that proves to be a good thing when many of his readers are pink-slipped.

MANAGEMENT PRINCIPLES

Management in every day life

Management is decision – making

Getting things done through people

‘Things’ are ‘activities’ – not any but

‘Right Things’ so fulfills predetermined objectives

Done in ‘Right Way’ i.e. appropriate strategy

In ‘Right Time’

By ‘Right Persons’ i.e. qualified and competent

With ‘Right amount of Resources’

Effective use of all resources

MANAGEMENT

Getting the right things done in right way in right time by right persons with right amount of resources and with effective use of resources.

MANAGEMENT CONCEPTS

It is the process of setting objectives and coordinating the efforst of personnel in order to attain them.

t Creating an internal environment

t Individuals working together in groups

t Perform efficiently and effectively

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t Attainment of group goals

t Management is goal oriented

DEFINITION

“Management is the process of designing and maintaining an environment in which individuals working together in groups efficiently accomplish selected aims.”

(Koontz)

“The collection and use of information in order to make decisions regarding the effective and efficient allocation of resources”.

(Gatewood Taylor)

MANAGEMENT PROCESS

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NEED FOR MANAGEMENT

Management Management and Technical Task© Difference between Managerial and Technical activities© Technical is

– Non managerial tasks– Not delegated

© Manager is not manager when he is doing technical workSYSTEM© Set or assemblage of things connected or interdependent, so as to form a complex unit.© More than the sum of its parts.© Closed or open© Must have boundaries© Every system is also subsystem

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Inputs (Resources)1. Human 3. Managerial2. Capital 4. Technological

Goal inputs of claimants1. Employers 2. Consumers3. Suppliers 4. Stockholders5. Governments 6. Community

7. OthersOrganizational Resources

General Categories :

Materials (e.g. Wood, metals)

Manpower (e.g. Labourers, accountants)

Machines (e.g. Bulldozers, forklifts)

Money (e.g. Working capital, equity)

Information (e.g. Audits, Market Research)

Others :Time

KnowledgeTechnology

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PLANNING“Planning involves selecting missions and objectives, the actions to achieve them, it requires decision making that is, choosing future course of action from among alternatives”ORGANIZING“Organizing is that part of managing that involves establishing an intentional structure of roles for people to fill in an organization s. The purpose of organizational structure is to help in creating an environment for human performance.”

STAFFING“Staffing involves filling and keeping filled, positions in the organizational structure all other personnel activities involved”.LEADING“Leading is influencing people so that they will contribute to organizational and group goals, it has to do predominantly with the interpersonal aspect of managing.

CONTROLLING“Controlling and measuring and correcting individual and organizational performance to ensure that events conform to the plans. In short, controlling facilitates the accomplishment of plan”.COORDINATING© An objective of management, rather than as a function in itself.© Successful coordination is effectively carrying out functions of management© If lack of coordination is detected, identify management function requiring improvement

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Outputs 1. Products

2. Services3. Profits4. Satisfaction5. Goal integration6. Others

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PENDING – 2Management Functions

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Manager types

They differ in major areas like –: © The titles allotted to positions© Nature of managerial work© Time frame of planning© Time allotted to managerial function© Organizational responsibility© Management skills required

Managerial Roles

Interpersonal RolesThe figurehead roleThe leader roleThe liaison role

Informational RolesThe recipient roleThe disseminator roleThe spokesperson role

Decisional RolesThe entrepreneurial role The disturbance – handler role The resources allocator role The negotiator role

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Goals of all Managers

In all kinds of organizations whether business or non-business, managers should create a surplus i.e. accomplish aims with minimum and available resources.Managers must be productive – successful companies create a surplus through productive operationsProductivity is defined as ‘the output – input ratio within a time period with due consideration for quality.

Organizational Functions Financé Production (Services) Personnel Sales (Marketing)

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HA – 1 Management Principles and Practices

Fayol, Henri (1841) – 1925)

Fayol is one of the most distinguished figures contributed by Europe to the management movement. He is described as the real father of operational modern Management Theory who recognized a wide spread need for principles and management teaching.

For 30 years, that is between 1888 and 1918, he was the Chief Executive of the great French mining and metallurgical combine (commentary – Fourchambault – Decazeville – “ Comambault”). This operation was on the verge of bankruptcy when he took charge. Its financial position was remarkable when he retired from the concern. It had made a valuable contribution to the national effort in the First World War and it had administrative and technical staff famous throughout, France. Fayal attributed his practical success to application of certain principles which could be taught.

After his retirement, at the age of 77 in 1918, he devoted the remaining seven years of his life to spreading an understanding of his theory and pointing out its application to fields other than business – military, naval and governmental.

Fayol was the author of may papers and articles on administration. His books include “Administration Industrille et Generale – Prevoyance, Organizaation, Commandments, Coordination,Control”, 1916 (republished in 1925by Dunod, Paris first English translation “General and Industrial Administration,

1929 International Management Institute, J.A. Conbrough Geneva.

Fayol in the beginning was inclined to be unsympathetic toward F.W. Taylor’s work; he latter saw it as complementary to his own field of study. Taylor had started at the worker level, whereas Fayol started at the opposite end – end – the chief executive. Union of the “Centre d’Etudes Administratives”, founded by Fayol and the “Conference de Organization Franchise, which had been established to introduce Taylor’s idea to France, was effect din the year 1925 and the new organization was christened as “Comte National de 1’Organization Franchise”. With the founding of “CNGF”, France became the first country with an institution equipped to promote the study and application of scientific method to business and other institution regarded as a whole.

Urwick, who edited ‘The Golden Book of Management’ for the International Committee of Scientific management (CIOS) in the year 1956 quoted that “This isolation and analysis of administration as a separate function was his unique and original addition to the body of management theory. It paved the ay for the evolution of the whole approach to problems of higher management by way of functional analysis. It exercised …… a profound influence on all others to organize thinking as to the qualities required for the nature of, and the correct analysis of “top management”.

This “essence of management” has stood the test of time. One of the first empirical studies in the era of top management, by Paul Holdin, Fish, L.S. and Smith, H.C. under the title “Top Management Organization and Control”, 1941, reported the general management practices of 31 industrial corporations. Based on their findings, the authors concealed that the primary responsibilities of top management involved.

1. Long range planning and the clear establishment of objectives.2. The establishment of sound organizational structure.3. The skilful training an development of all personnel and 4. Establishment of effective control procedures.

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The significant of this conclusion lies in the fact that these basically the same functions identified pragmatically earlier writers like Fayol.

Fayol’s contribution to management thought.

Five major Schools of management thought include, Classical school, Behavioural School, Quantitative School, Systems School and Contingency School. The classical school which includes Scientific (1880s) Bureaucratic (1920s0 and Administrative Management (1940s) emphasizes managing workers and organizations more efficiently Fayol propagated the administrative Management.

The Administrative Management focuses on the management procedures and principles of management. In contrast to Scientific Management which deals largely with jobs and work at the individual level of analysis, administrative management provides a more general theory of management.

Fayol argues that management was a universal process consisting of functions which he termed as planning organizing, commanding, coordinating and controlling.

Fayol believed that all managers performed these functions and they uniquely describe manager’s job and that these functions distinguished management as a separate discipline of studying apart from accounting, finance and production.

Fayol believed that management could be taught that managing ability was soley needed as one moved up in ladder and management was a separate activity which is applicable to all types of organization.

Although Administrative management has been criticized as being rigid and inflexible and the validity of functions approach is questioned this school of thought still influences management theory and practice. The functional approach to management is the dominant way of organizing management knowledge, and many of Fayol’s Principles of management, when applied with flexibility that he advocated are still considered relevant.

The functions of management

Fayol was the first writer to classify elements of management into functional areas such as planning, organizing, commanding, coordinating and controlling. Though his book was translated into English in 1929, widely made available only by 1949.

The most commonly cited functions of management are planning, organizing, leading and controlling. All managers perform these functions. The functions of management define the process of management as district from accounting, finance, marketing and other business functions. These functions provide a useful way of classifying information about management and most basic management text are organized around such a functional framework.

Fayol was the first person to identify elements or functions of management in his classic book in 1916. He suggested that there were 5 functions or elements of management – planning organizing, commanding, coordinating and controlling.

Fayol defined planning in terms of forecasting future conditions, setting objectives, and developing means to attain objectives Fayol recognized that effective planning must also take into account unexpected contingencies that might arise and did not advocate rigid and inflexible plans like some modem writers.

Fayol identified organizing is a function of management in his monograph in 1916. He defined organizing as making provisions for structuring of activities and relationships within firm and also recruiting, evaluation, and training of personnel Later writers sometimes classified these activities under separate management function, staffing.

According to Fayo], commanding as a managerial function concerned the personal supervision of subordinates and involved inspiring them to put forth unified effort to achieve objectives.

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Fayol emphasized the importance of manager's understanding the people who worked for him. Setting a good example, treating subordinates in a manner consistent with firm policy delegating and communicating through meetings and conferences.

Fayol saw the functioning of coordinating as harmonizing all of the various activities of the firm. Most of the later writers did not retain Fayol’s coordination function as a separate function of management but regarded as a necessary component of all the other management functions. Fayol defined control function in terms of ensuring that everything occurs within the parameters of the plan and accompanying principles. The purpose of control was to identify deviations from objectives and plans and to take corrective action.

All these text books defined as a process consisting of a set of interdependent functions. The authors of these books and the others were identified as ''process school of management"

Fayol also presented 14 principles of management. Fayol identified 14 principles of management mid noted that these principle are flexible and must he used regardless of changing conditions.

1. division of work/labour2. Authority* According to Fayol, authority is a combination of official factor, "compounded of intelligence,

experience, moral worth, past service etc. (classical/traditional authority ascribing pyramid shape organizational structure)

3. Responsibility Fayol suggests that responsibility mid authority should he relate,) with former arising form the latter.

4. Discipline5. Unity of direction6. Subordination of individual's interest7. Remuneration.8. Unity of command :

The employees should receive order* from one superior only. Fayol’s principle of the unity of command adds to the description of the relationship between a subordinate and superior by holding that a subordinate should report to on one and only superior. Fayol believed that this was necessary to provide the superior with clear position of authority, and to prevent subordinate from receiving conflicting orders. In many bureaucratically structured organizations chain of command is still very much alive even today. Problem arises when a subordinate bypasses his supervisor to give information or request a decision. The authority of supervisor is threatened. Morale of the manger declines based on urgency and frequency of such situations. Chain of command principle also known as line of command is formal line of authority and communication in an organization through which information, direction and reporting occur in a vertical direction. By utilizing the chain of command, and its visible authority relationships, the principle of unity of command is maintained. The scale and amount of direct authority in the reporting relationships between levels of management is known as scalar chain principle.

9. Line of authority Scalar chain a chain of superiors from the highest to lowest ranks. Scalar Chain principle states essentially that authority and responsibility flow, one level at a time in a vertical line from the highest level in an organization to its lowest level. This line of authority establishes an organizational hierarchy. The central issue is that pairs of superior and subordinate relationship are direct reporting relationships and therefore there is integrity to the structure. Fayol believes that This should not be departed from needlessly, should be short-circuited when following it scrupulously is detrimental

10. Order, 11. Equity 12. Stability of personal tenure 13. Initiative

14. Esprit dc corps (morale) this is the principle that "in union there is strength.” as well as an extension of the principle of unity of command, emphasizing the need for team work and importance of communication in obtaining it.

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ORGANIZATION DEVELOPMENT

Dr. R. M. Bhatnagar

Organization development is the process through which an organization develops the internal capacity to be the most effective it can be in its mission work and to sustain itself over the long term. This definition highlights the explicit connection between organizational development work and the achievement of organizational mission. This connection is the rationale for doing OD work.

Organization development, according to Richard Beckhard, is defined as: a planned effort, organization-wide, managed from the top, to increase organization effectiveness and health, through planned Interventions in the organization's ‘processes’, using behavioural science knowledge.

There are also a number of methodologies specifically dedicated to Organization Development such as Peter Senge’s 5th Discipline and Arthur F. Carmazzi’s Directive Communication. These are a few of more popular approaches that have been developed into a system for specific outcomes such as the 5th Discipline’s “learning organization” or Directive Communication’s “Organizational culture enhancement”.

According to Warren Bennis, organization development (OD) is a complex strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges.

Warner Burke emphasizes that OD is not just “anything done to better an organization”; it is a particular kind of change process designed to bring about 5 particular kind of end result. OD invokes organizational reflection, system improvement, planning, and self-analysis.

The term “Organization Development” is often used interchangeably with Organizational effectiveness, especially when used as the name of a department or a part of the Human Resources function within an organization.

Organization Development is a growing field that is responsive to many new approached including Positive Adult Development.

DefinitionAt the core of OD is the concept of an organization, defined as two or more people working together toward one or more shared goals. Development in this context is the notion that an organization may become more effective over time at achieving its goals.

“OD Is a long range effort to improve organization's problem solving and renewal processes, particularly through more effective and collaborative management of organization culture-with specific emphasis on the culture of formal work teams – with the assistance of a change agent or catalyst and the use of the theory and technology of applied behavioral science including action research

HistoryKurt Lewin (1898 -1947) is widely recognized as the founding father of OD, although he died before the concept, became current in the mid-1950s. From Lewin came the ideas of group dynamics, and action research which underpin the basic OD process as well as providing its collaborative consultant/client ethos. Institutionally, Lewin founded the Research Center for Group Dynamics at MIT, which moved to Michigan after his death. RCGD colleagues were among those who founded the National Training Laboratories (NTL), from which the T-group and group-based OD emerged. In the UK, working as close as was possible with Lewin and his colleagues, the Tavistock institute of Human Relations was important in developing systems theories. Important too was the joint TIHR journal Human Relations, although nowadays the Journal of Applied Behavioral Sciences is seen as the leading OD journal

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PROBLEMRECOGNITIO

N

ORGANISATION

DIAGNOSISFEEDBAC

K

DEVELOPMENT OF

CHANGE STRATEGY

MEASUREMENT AND

EVALUATION

INTERVENTIONS

In recent years, serious questioning has emerged about the relevance of OD to managing change in modern organizations. The need for “reinventing” the field has become a topic that even some of its “founding fathers” are discussing critically

A MODEL OF ORGANIZATION DEVELOPMENT

Consider a firm that experience certain problems: conflict among organizational units, low morale, customer

complaints, and increasing costs (problem recognition in the model). The chief executive contacts an od expert to

discuss the situation. The two agree on the necessity of an organizational diagnosis. The consultant then collects

information several organization units using questionnaires, interviews, and observations. The data are analysed and

prepared for feedback.

The executive confers with the other managers and set up a meeting with them. At the meeting after some

introductory comment the consultants present the findings under the heading “relations between departments”.

“enterprise goals” and “customer relation” (feedback). The groups then rank the problems in order of

their importance. With the guidance of the consultant , the group discuss the difficulties, identifies the underlying

causes, and explore the possible solutions.

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The role of the consultant is that of coach faciliting the process. Short lectures and exercise on decision making, team

building, and problem solving are integrated into the process. At times sub groups are established to deal with

specific issues. The emphasis is on openness and objectivity. The meeting ends with the agreement on a change

strategy.

The specific interventions may include a change in the organization structure, a more effective procedure for handling

customer complaints, and the establishment of a team charged with the responsibility of implementing a coast

reduction program. Furthermore the group agrees to meet again in three months to measure and evaluate the

effectiveness of the OD efforts.

Although three phase complete the OD cycle, the effort does not end, instead OD becomes a continuous process-

planned, systematic, and focused on change-that aims at making the enterprise more effective.

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ORGANIZING

Definition:

Organizing is the process of assigning duties & coordinating the efforts of personnel in their pursuit of the enterprise’s

objectives.

Meaning of Organizing

1. The process of putting together various activities, resources & people into a system so that people worktogether for a common purpose.

2. Building up a stable framework or structure of various intercalated parts of an enterprise, each part having its own function and being centrally regulated.

Process of Organizing

1. Division of work into jobs Identification & classification of required activities.

2. Grouping jobs into departments known as departmentation

3. Establishing authority / delegation / relationships among the positions held by people.The provision for coordination horizontally & vertic.

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Organizational Structure:

The process of organizing leads to the creation of the structure of organization which is a network of distinctive job positions their roles and relationship.

Managers must design an organization structure that makes the best use of resources to produce the goods and services customers want.

Organization structure has the shape of a pyramid. Provides a basis or framework for managers and other employees for performing their various functions.

IMPORTANCE OF ORGANIZING & ORGANIZATION STRUCTURE:

1. They facilitate coordination2. Provide a framework for other managerial functions 3. Clarify tasks/well defined objectives 4. Provide authority & power to people5. Serve as a source of support & security among them6. Enable the management to cope with changes in the external environment (Automation)7. Specialisation

8. Avoid replication of work.

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INTERNAL FACTORS:

1. The size of the organization :-2. As an organization gets larger it usually becomes more formalized.3. The diversity of its operations :-4. As the enterprise increases the scope of its operations its structure changes to accommodate the new demos

placed on the organization.5. The characteristics of the personnel :-6. If personnel want a less bureaucratic design, management is more likely to adopt its then if the employee

wants more bureaucratic structure.

EXTERNAL FACTORS:

1. Organization operating in stable environments tend to use a mechanistic structure.2. Those in dynamic environments are more likely to opt for an organic design3. This principle holds true for both the organization at large & departments in particular4. Technology :- Technology also influences structure specially that of small, production oriented units.5. Various external pressures :- Organizations subject to such external pressure as government regulation,

resources suppliers, clients, customers & competitors organize to accommodate the demands of these

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Formal Organization:

A prescribed and official structure of activities, roles and authority relationships are designed by the management.It means the intentional structure of roles in a formally organized enterprise.

Informal Organization

A network of social relations which emerges on its own as a natural outcome of formal roles & relationships among people.

It is a network of personal & social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

Span of Control:

Span means how many subordinates a superior can manage. Span of control refers to the number of people who report directly to a manager. If the span is narrow, the organization has a tall structure. If the span is wide, the organization has a flat structure.

Departmentalization:

1. Functional departmentalization .: Involves the management of the enterprise around the key functions or activities that it must perform.

2. Product departmentalization.: Occurs when an enterprise organizes itself around its major product lines.

3. Territorial departmentalization.: Employed by organizations trying to serve customers who are physically dispersed.

4. The matrix organization :Dual command system & management attempts to balance a concern for inputs with a concern for outputs.

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POWER:

The ability of individuals or groups to induce or influence the beliefs or actions of other person or groups.

Types of Power:

1. Legitimate Power

2. Referent Power

3. Reward Power

4. Coercive Power

1. Legitimate Power

It normally arises from position & derives from our culture system of rights, obligations, & duties whereby a

“position” is accepted by people as being “legitimate”.

2. Referent Power:

A influence that people or groups may exercise because people believe in them & their ideas. Ex-Martin

Luther King, military hero.

3. Reward Power:

University professors have considerable reward power they can grant or with hold high grades.

4. Coercive Power:

It is the power to punish, whether by firing a subordinate or withholding a merit increase

AUTHORITY:

Authority is the right to command.

TYPES OF AUTHORITY

There are four common types of authority

Line Authority

Staff Authority

Functional Authority

Project Authority

Splintered28

1. Line Authority : Direct authority such as that which a superior have over a subordinate.2. Staff Authority : Auxiliary, as in the case of a lawyer who provides advice to a top manager3. Functional Authority : authority in department other than one’s own, as in the case of the finance vice

president who has the authority to order the head of manufacturing to provide cost production data.4. Project Authority :The authority a matrix manager has over the individuals assigned to the project.5. Splintered Authority :Exist whenever a problem cannot be solvedor a division made without pooling the

authority of two or more managers.6. Recovery of Delegated Authority :-A manager who delegates authority does not permanently dispose of it.

Delegated authority can always be regained.

ADMINISTRATIVE ORGANIZATIONS

• Line organization :-Only direct authority links from top to the lower levels Managers focus on basic activities of the enterprise.

• Line & staff organization :-Line authority & Staff or Advisory authority coexist.

• Functional organization :-Line authority, Staff authority & Functional authority coexist.

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DELEGATION OF AUTHORITY:

Process of sharing work & authority between a manager & his subordinates

ELEMENTS OF DELEGATION:

• Assignment of tasks and duties

• Grant of authority

• Creation of responsibility and accountability

Importance of Delegation of Authority:

1. Reduces work load of managers 2. Basic of superior-subordinate relations 3. Improves managerial effectiveness 4. Motivates subordinates 5. Develops managers 6. Facilitates organizational growth

PRINCIPLES OF DELEGATION:

• Delegation by result expected• Party of authority & responsibility• Absolute responsibility• Authority level principle

Delegation involves a number of boss-related & subordinate related problems. The effective manager works to overcome these.

Overcoming delegation problems:

Define assignments & delegate authority in light of results expected. Select the person to light of the job to be done Maintain open lines of communication Establish proper controls Reward effectively delegation & successful assumption of authority

CENTRALISATION; Concentration of authority at higher management levels Managers at lower levels have only the responsibility of implementing the decisions as directed by higher

level management.

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TYPES OF CENTRALISATION

Centralization of performance :-

Pertains to geographic concentration, e.g., a company operating in a single location.

Departmental centralization :- Refers to concentration of specialized activities, generally in one department. Ex-maintenance for a whole plant may be carried out by a single dept.

Centralization as an aspect of management :- Tendency to restrict delegation of decision making.

A high degree of authority is held at or near the top by manager in the organization hierarchy.

Decentralization:

It is the tendency to disperse decision-making authority in an organized structure Systematic delegation of authority at all levelsof management and in all departments of the

Organization for taking decisions and actionsAppropriate at the respective levels

Ways of measuring Decentralization

Studying the quantity of decisions made at different level The quality of these decisions The impact of the decisions in lower levels The control the individual has in his or her own mode of operation

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Major factors influencing decentralization

Cost Size Desire for independence Availability of managers The nature of the enterprise

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Coordination:

Co-ordination is the synchronization of the human efforts of individuals & groups to attain organizational efficiency.Coordination is particularly important in the case of interdependent work.Interdependency can takes one of three forms

Pooled, Sequential & reciprocal

CommitteesCommittees are extremely valuable in coordinating activities

Advantages of committees

They make group judgment possible. Provide for the representation of interested parties Help to coordinate plans & activities Provide motivation.

Disadvantages of committees33

Their tendency toward indecision or compromise

Their costs in terms of time & money

Their tendency to promote lack of responsibility

Effective use of Committee:

Organization must focus their attention on organization The objectives, authority and documentation of the committee, the leadership of the committee and

support of the members,

Principles of Organizing:

• Science of organizing not yet developed to the point at which its principles are infallible laws.• These principles are truths (or are believed to be truths) of general applicability.

The most essential guiding principles of organizing are summarized in this section.• Purpose of organizing• Cause of organizing• Structure of organizing• Structure of organizing

The Purpose of Organizing:

To aid in making objectives meaningful & contribute to organizational efficiency Principle of unity of objectives :-

An organization structure is effective if it enables individuals to contribute to enterprise objectives Principle of organizational efficiency :-

An organization is efficient if it is structured to aid the accomplishment of enterprise objectives with a minimum of unsought consequences or costs.

The Cause of Organizing

The basic cause of organization structure is the limitation of the span of management Span-of-management principle :-

In each managerial position, there is a limit to the number of persons an individual can effectively manage, but the exact number will depend on the impact of underlying variables.

The Structure of Organization – Authority Authority the cement of organization structure, the reach that makes possible the means by which

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groups activities can be placed under manager’s coordination of organization units, can be promoted.

It is the power by which a manager is able to exercise his authority to create an environment for individual objectives.

Scalar principle The clearer the line of authority from the ultimate management position in an enterprise to every

subordinate position, the clearer will be the responsibility for decision making & the more effective will be organization communication.

Principle of delegation by results expected: Authority delegated to all individual mangers should be adequate enough to ensure their ability to accomplish the results expected

Principle of absoluteness of responsibility: The responsibility of absoluteness to their superiors for performance is absolute & superiors cannot escape responsibility for the organization activities of their subordinates.

Principle of parity of authority and responsibility: The responsibility for action cannot be greater than that implied by the authority delegated, nor should be less.

Principle of unity of command The more complete an individuals reporting relationship to a single superior, the smaller the problem of conflicting instructions & greater the feeling of personal responsibility for results.

Authority – level principle Maintenance of intended delegation requires that decisions with the authority of individual managers should be made by them & not be referred upward in the organization structure.

The Structure of Organization – Departmentalized Activities:• Organization involves the design of a departmental framework.

Principle of functional definition :The more a position or a department has a clear definition of the results expected, activities to be undertaken & organization authority delegated & has an understanding of authority & informational relationship with other positions, the more adequately the responsible individual can contribute toward accomplishing enterprise objectives.

The Process of Organizing:

Authority delegation & departmentation are fundamental truths about the process of organizingThe following principles help managers gain a sense of proportion or a measure of the total organizing process

Principle of balance Principle of flexibility Principle OF leadership facilitation

Principle of balance:The application of principles or techniques must be balanced to ensure the overall effectiveness of the structure and meeting enterprise objectives.

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Principle of flexibility:The more that provisions are made for building flexibility into an organization structure, the more adequately an organization structure can fulfill its purpose.

Principle of delegation facilitation:The more an organization structure & its delegations of authority enable managers to design & maintain an environment for performance the more they will help the leadership abilities to those managers

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DIRECTING:DefinitionDirecting as a function of management is concerned with instructing, guiding and inspiring people in the organization to achieve its objectives.

MEANING AND NATURE OF DIRECTINGIt involves overseeing people at work, making provision for necessary facilities and creating a work environment whereby employees may perform to the best of their abilities

Importance of Directing1. Direction may be regularized as the heart of the management process2. It initiates3. It integrates the effort of employees4. It provides for motivation of subordinates5. It brings about stability and balance in the organization6. It facilitates change through better communication and leadership

Role of Supervisor• The supervisor holds an intermediate position between the top or middle management and the

operatives.• Acting as a; link, the supervisor bridges the gap between what the management expects and what

the operatives want.• He occupies a key position in the organization, which turns plans and policies into actual results

through the efforts of operatives.• The supervisor is expected to secure not only the efficiency of operations but also the team spirit,

cooperation and discipline among the employees.

Functions of the Supervisor: Scheduling of activities. Providing instructions and guidance. Controlling work in the process of execution. Motivating subordinates for better performance. Communicating management decisions, plans and policies to subordinates and the latter’s

viewpoints, complaints and grievances to management. Preparing reports on progress and performance of work.

Motivation:Definition :

Motivation may be defined, as the process of stimulating people to action to accomplish desired goals.

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Importance of Motivation:ð Effectiveness of motivation contributes a great deal to the success of an organization.ð It sets in motion the action of people.ð It improves efficiency of work performance.ð It ensures achievement of organizational goals.ð It also creates friendly and supportive relationship between management and employees.ð Effective motivation leads to stability in the work force.

Difference between Motivation & Satisfaction

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MOTIVATION RESULTS

SATISFACTION

Leadership

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Controlling:

Definition :

The measurement and correction of performance in order to make sure that enterprise objectives and

the plans devised to attain them are being accomplished.

It involves three steps : establishing standards, measuring performance against these standards and

correcting \variations from standards and plans.

Meaning & Nature of Controlling :

Process through which managers assure that the activities conforming to the planned activities.

To make things happen in accordance with the plans and programmes and Rules and procedures laid

down.

Importance of Controlling

Helps in achieving organization objectives. Ensures the use of human and material resources in the best possible manner. Facilitates decision – making, enabling managers to identify the gap between thinking and doing functions.

Importance of Cycle

Creates an atmosphere of order and discipline in the organization and improves employee morale.

Facilitates coordination by keeping enterprise activities and efforts directed towards the achievement of

planned goals.

Provides useful information , which makes the plans more realistic.

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Establishment of Standards :

Standards represent desired performance

They state clearly as to what must be achieved during a specific period

To be useful, standards must be set and they must be measurable

Measurement of performance : The actual performance of employee is measured and expressed in the same

units as the planned targets or standards either through direct personal observation or through regular oral –

written report.

Managers generally prefer periodic measurement of performance.

Comparison of actual performance with the standard

Comparison of actual performance with the standard is undertaken to the extent of deviation and identify the

cause thereof.

Taking corrective actions

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Corrective actions are required to prevent the recurrence of deviations, if any, and to ensure the achievement of

planned goals.

Such actions may involve a change in methods, machinery, rules or procedures improving physical conditions of work

or nature of supervision

Relationship between Planning and Controlling

Planning and controlling are interdependent and interrelated activities.

Without planning, there is no basis for controlling activities and without effective control, planned activities cannot be properly implemented.

The statement, planning is looking ahead and controlling is looking back is not true. Like planning controlling is also forward looking.

Features of a Good Control System

Appropriateð Economicalð Simpleð Objectiveð Flexibleð Forward Lookingð Concentrating Exceptions

Features of Good Control System

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Appropriate : The control system should be appropriate to the nature of activities and needs of the organization.

Economical : The cost of securing and implementing a control system should not exceed the benefits derived from it.

Simple : The control system must be simple and easy to understandable to the managers and the employees.

Objective : An effective control system requires objective and accurate standards used on facts. Those should be expressed In quantitative terms as far as possible leaving no scope for subjective interpretation.

Principles of Controlling:

1. The purpose and nature ofControl 2. The stature ofControl3. The Process of Control

1. The Purpose and Nature of Control: The task of control is to ensure that plans succeed by detecting deviations from plans and furnishing a basis for taking action to correct potential or actual undesired deviation.

Because of time lags in the total system of control the more a control system is based on feed forward rather than simple feedback on information, the more the managers have the opportunity to perceive undesirable deviations from plans before they occur and to take action in time to prevent them.

The primary responsibility for the exercise of control rests with the manager charged with the performance of the particular plans involved.

Control techniques and approaches are efficient if they detect and illuminate the nature and cause of deviation from plans with a minimum of cost or other unsought consequences.The higher the quality of managers in a managerial system, the less will be the need for direct controls.

2. The Structure of Control: The more that plans are clear, complete and integrated and the more that controls are designed to reflect such plans, the more effectively controls will serve the needs of managers.

The more that an organizational structure is clear, complete and integrated and in place in the organization structure where responsibility for action lies, the more they will facilitate correction of deviation.

The more that control techniques and information are understandable to individual managers who must utilize them, the more they will actually be used and the more they will result in effective control.

3. The Process of Control : The more that managers concentrate control efforts on significant exceptions, the more efficient will be the results of their control.

If controls are to remain effective despite failure or unforeseen changes of plans, flexibility is required in their design.

Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organizing, staffing and leading.

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