Principles of management


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Introduction, planning, organizing, co-ordination,controlling,decision-making.

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Principles of management

  1. 1. Prepared By Prof. Pratiksha Patil 1
  2. 2. Sr no. Chapters Pg no1. Meaning & Nature of Management 3-62. Ethics in Managing & Social Responsibility 7-163. Evolution Of Management Thoughts 17-734. Planning 74-1145. Decision-Making 115-1536. Organizing 154-1917. Co-ordination & Control 192-212 2
  3. 3.  Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. 3
  4. 4.  Planning Organizing Staffing Directing Controlling 4
  5. 5.  Top level-Conceptual skills Middle level-Human skills Low level- Technical 5
  6. 6.  Interpersonal- Figurehead- Leader- Liaison Informational- Monitor- Disseminator- Spokesperson Decisional- Entrepreneur- Disturbance handler- Resource allocator- Negotiator 6
  7. 7. 7
  8. 8.  Socialresponsibility is defined as the obligation and commitment of managers to take steps for protecting and improving society‟s welfare along with protecting their own interest. 8
  9. 9.  Social Responsibility of Management- Responsibility towards owners- Responsibility towards employees:- Responsibility towards consumers- Responsibility towards the Governments- Responsibility towards the community and society 9
  10. 10.  Corporate Social Responsibility: Corporate social responsibility is involved with theimpact of the company‟s actions on the society. Social Responsiveness: Social responsiveness means the ability of acorporation to relate its operations & policies to thesocial environment in ways that are mutuallybeneficial to the company and to the society. 10
  11. 11.  Obligationof managers to take actions that protect and improve the welfare of society as a whole along with their own interests 11
  12. 12.  To produce customized products To establish fair prices of products consistent with quality, efficiency and reasonable profit to the firm. To provide prompt, adequate, courteous, and friendly service to customers. To ensure fairly wide distribution of products among all sections of consumers. To improve their standard of living in society by producing goods and services which they need 12
  13. 13.  Fairremuneration Job security and safety Proper working conditions and employee welfare Trade union rights Employee promotion and code of conduct Employee participation in management. 13
  14. 14. 1. Take corrective action before it is required.2. Work with affected constituents to resolve mutual problems.3. Work to establish industry-wide standards and self- regulation.4. Publicly admit your mistakes.5. Get involved in appropriate social programs.6. Help correct environmental problems.7. Monitor the changing social environment.8. Establish and enforce a corporate code of conduct.9. Take needed public stands on social issues.10. Strive to make profits on an ongoing basis. 14
  15. 15. • Changed public expectations• Better environment for business• Balance power with responsibility• Business has resources• Prevention is better• Moral responsibility• Globalization• Better employees 15
  16. 16. • Profit maximization• Society has to pay the cost• Lack of social skills• Social overhead cost• Lack of broad support• Experts‟ views 16
  17. 17. 17
  18. 18.  Connect between management & human civilization Human groups Organizational Activities Approaches in management Evolution of theories of management 18
  19. 19.  Theory is known as body of principles It gives clear,systematic view about the subject These theories make management teachable Method by which meaning is given to managerial jobs. 19
  20. 20.  It presents systematic view of the subject. Abstract knowledge of any art as opposed to the practice of it It is integrated group of fundamental principles 20
  21. 21.  It is application of science to management. Artof knowing what exactly you want from your men to do &then seeing that it is done in the best possible manner. 21
  22. 22.  F.W.Taylor is known as father of Scientific management He enriched management with few principles and scientific techniques. He basically worked towards improving industrial efficacy. F.W.Taylor is also called „‟Father of Scientific Management‟‟ His principles were highly influential in progressive era. 22
  23. 23.  One best way to do work Most remembered for developing the time and motion study. Break a job into components and measure the efficient time frame. But unfortunately he was unsuccessful at Bethlehem Steel. Management could be an academic discipline. 23
  24. 24.  Scientific management was developed to counter the problem of workers deliberately working below full capacity. Taylor pioneered time and motion study. Created best work method rather than traditional method. Implemented his theory at Bethlehem steel in two famous studies involving shoveling and pig-iron handling. His primary contribution remains redefining the role of manager in management theory. 24
  25. 25.  Replace the rule of thumb by science Scientific selection, training and development of workers Spirit of cooperation between workers and management Division of work between workers and management. 25
  26. 26.  Improvement of efficiency and maximization of profit. Organizational interest before self interest. IncreasedSize of labour to obtain division of labour and specialization of task 26
  27. 27.  Science not the rule of thumb Harmony not discard Scientific selection ,training and development. Division of work/responsibility Mental Revolution. 27
  28. 28.  Raise countries standards. Still tools being developed by scientific management adopted today 28
  29. 29.  HenryLaurence Gantt –management consultant-mechanical engineer. Developed the Gantt chart in 1990 Applied on projects such as Hoover Dam and inter state highway projects. 29
  30. 30.  Itused for scheduling multiple overlapping tasks over a period of time. Focused on motivational schemes Emphasizing the greater effectiveness of rewards for good work. Pay incentive system with a guaranteed minimum wage and bonus systems for people on fixed wages. 30
  31. 31.  The Gantt chart. The task and bonus system The social responsibility of business Workers training Stress on human element in management. Role of preaching and teaching workers. 31
  32. 32.  They can be understood by wide audience Can be difficult for projects having more than 30 activities. Chart does not represent the magnitude of the project 32
  33. 33.  Henry Fayol is known as Father of Administrative Management(1841) Contributed 14 principles of management. Management is a universal activity that applies well to family as well as corporation. 33
  34. 34.  Specialization of labour Authority Discipline Unity of command 34
  35. 35.  Unity of Direction Subordination of individual interests Remuneration Centralization Scalar chain 35
  36. 36.  Order Equity Personnel tenure Initiative Esprit de corps 36
  37. 37. Elton Mayo (180-1949)Contribution towards management with the famous Hawthorne Studies. Wrote a book" The human Problems of an Industrialized Civilizations” Peoples performance is related to social issues and job content. Logic of sentiment Vs Logic of cost &efficiency. 37
  38. 38.  Illumination experiment Relay Assembly test room experiment. Mass Interviewing programme Bank Wiring observation room experiment- Group of 14 male worker put together under observation for 6 months It was thought that more efficient worker put pressure on less efficient worker to provide higher out putIt was concluded that the group has established its own standards of output & these standards where implemented through social pressure. 38
  39. 39.  In the 1920s, the Hawthorne Works of the General Electric Company, Chicago employed around 30,000 workers and manufactured equipment for Bell Telephone System. Although it was a progressive organization, its managers were disturbed by the large number of complaints and high level of dissatisfaction among workers. In 1924, the company hired efficiency experts to find out the cause of the problem, but the investigations failed. Later, the company requested the National Academy of Sciences to help them find a solution. In order to find the relationship between worker efficiency and level of illumination in the workshop, the Academy conducted various experiments which came to be known as the Illumination Experiments. 39
  40. 40. The illumination experiments In these set of experiments, researchers modified the level of illumination i.e. the intensity of light, to determine its effect on productivity. Two groups of employees, namely, the control group and the experimental group, were selected to study the effect of varied illumination levels on their productivity. Illumination was not changed for the control group throughout the course of the experiments, while it was changed constantly for the experimental group. It was observed that when the illumination was enhanced for the experimental group, its productivity increased as anticipated by the researchers. However, the productivity in the control group also went up despite having no change in its illumination level. The researchers then lowered the illumination intensity for the experimental group, but surprisingly, the productivity still shot up. These experiments showed that productivity of workers was influenced by some other variable and not merely by illumination. These experiments revealed that there is some other variable beyond wages, hours of work, working conditions that made a significant impact on productivity. 40
  41. 41. Relay assembly room experiments This series of experiments began in 1927. These experiments were conducted by a team led by Prof. Elton Mayo of Harvard Business School, along with his colleague, Fritz Roethlisberger and some company representatives. Many management theorists consider these experiments to be the actual beginning of the Hawthorne Studies since the Illumination Studies failed to come out with any conclusion. Initially, two girls were selected for these experiments and they were, in turn, asked to choose four other girls. Thus, a group of six was formed. These girls were placed in a test room where they had to assemble telephone relays. A telephone relay is a small but complex device in which forty separate parts have to be assembled. The girls were seated on a lone bench where they assembled the parts and the assembled relay was dropped into a chute. 41
  42. 42.  An active observer was present with the girls in the workshop who kept a record of all the happenings, informed the girls about the experiments, obtained feedback from them and listened to their grievances The rate of production was determined by counting the relays that were dropped in the chute. The researchers noted the basic rate of production at the start of the experiments. They wanted to find out how productivity could be improved by introducing certain variables like rest pauses and modifying other variables like cutting down on work hours, and decreasing temperature and humidity. Various changes like change in the number of hours in a work week, number of hours in a work day, the number of breaks, lunch timings, etc. were planned and informed to the girls. Subsequently, these changes were introduced and their effectiveness was measured by noting the increase or decrease in the production of relays. 42
  43. 43. Findings of the relay assembly room experiments An overall increase in the productivity. This disagreed with the prevalent theory of Taylor, which stated that workers were motivated only by economic rewards. The researchers realized that since the girls were given a great deal of freedom, they had formed an informal group which also included the observer. They had a jovial time at work and also engaged in social meetings after work. The researchers thus discovered the concept of informal organization. They found that workplaces were social environments that gave employees scope to interact with each other. It was also realized that there were factors other than just economic self-interest. An important conclusion drawn from such observation was that every aspect of an industrial work environment had a social value. 43
  44. 44.  The presence of a friendly observer rather than an authoritarian supervisor at work added to their happiness. They felt valued and important when the observer informed them in advance about the changes in work pattern. As the supervisor was able to secure their whole-hearted cooperation, the productivity increased despite the withdrawal of many amenities at a later stage. 44
  45. 45. Bank wiring observation room experiments These experiments were undertaken by researchers in the later part of the Hawthorne Experiments conducted during 1931-1932. The bank wiring observation room experiments were aimed to understand the power of an informal group and peer pressure on worker productivity. In this study, a group of fourteen men were engaged in bank- wiring, i.e. attaching wires to switches for certain parts of telephone equipment. The fourteen participants in the experiment were asked to assemble telephone wiring to produce terminal banks. This time no changes were made in the physical working conditions. The workers were paid on the basis of an incentive pay plan, under which their pay increased as their output increased. 45
  46. 46.  Researchers observed that output stayed at a fairly constant level, which was contrary to their expectations. Their analysis showed that the group encouraged neither too much nor too little work. Thus, these experiments provided some insights into informal social relations within groups. It was concluded that the group has established its own standards of output & these standards where implemented through social pressure. 46
  47. 47. Interview phase, Hawthorne Studies During the course of the experiments, about 21,000 people were interviewed over a three-year period - between 1928 and 1930 - to explore the reasons for human behavior at work. It was concluded that productivity can be increased if workers are allowed to talk freely about matters that are important to them. 47
  48. 48.  The social and psychological factors are responsible for workers productivity and job satisfaction. Only good physical working conditions are not enough to increase productivity. The informal relations among workers influence the workers behaviour and performance more than the formal relations in the organisation. Employees will perform better if they are allowed to participate in decision-making affecting their interests. When employees are treated with respect and dignity, their performance will improve. Good communication between the superiors and subordinates can improve the relations and the productivity of the subordinates. Special attention and freedom to express their views will improve the performance of the workers. 48
  49. 49.  SocialFactor in output Group Influence Leadership Supervision Communication 49
  50. 50.  Mannot machinery,sensitive factors of production. Employee oriented approach Group attitude Moraleof employee has direct impact on productivity of an enterprise. 50
  51. 51.  Chester Irving Barnard (1886-1961) Looked at organization as system of cooperationContributed two theories: Theory of authority Theory of incentives.- Every one should know channel of communication- Should have access to formal channel of communication.- LOC should be short & direct as possible 51
  52. 52.  In his BOOK in 1960 The Human Side of Enterprise Introduced two theories Theory X and Theory Y Theory projects managements role is to assemble all factors of production including people. Purpose being economic benefit. 52
  53. 53.  Humans dislike work and try to avoid. As they dislike work they have to be forced Average employee would like to be directed. People don‟t like responsibility. Average human wants to feel secure at work Shop floors, mass manufacturing… 53
  54. 54.  People view work as being natural as play and rest. Motivate people and they woul be self directing. Average human seek responsibility naturally. People are imaginative and creative. Professional services, knowledge workers 54
  55. 55.  Satisfaction and dissatisfaction at work arose from different factors It is also called as two factor theory. According to theory people are influenced by two factors. Satisfaction and psychological growth are results of motivational factors. Dissatisfaction is a result of a lack of hygiene factors 55
  56. 56.  Motivation needs Hygiene needs  Challenge Policy.  Autonomy Relation with supervisor  Intrinsic interests Work conditions  Creative opportunities. Salary  Personal growth Company car 56
  57. 57.  Dreams Achievement Responsibility Personal growth 57
  58. 58.  Research on human behaviour asserts that to achieve maximum productivity He has identified four system Exploitive –authoritative system Benevolent- Authoritative system Consultative System Participative-Group System 58
  59. 59.  Exploitive–authoritative system- Decisions imposed on subordinates- Motivation is by threats- Little communication- No teamwork Benevolent- Authoritative system- Motivation by rewards- Manager feel responsibility- Little communication & little team work 59
  60. 60.  Consultative System- Leadership is by superior- No trust on subordinates- Motivation by rewards & some involvement- Moderate amount of teamwork Participative-Group System- Complete confidence on subordinates- Motivation by economic rewards based on goals- More communication 60
  61. 61. Self Esteem Social safetyPhysilogical 61
  62. 62.  Work simplification Organized application of common sense. A simpler way of laying brick but a faster way in order to meet 100% efficiency Employer –Employee board. E.g.-process charts,micro-motion,factory layout model 62
  63. 63.  BUREAUCRACY Division of labour. Hierarchy Formalized rules. Impersonality Selection and promotion of employees based on ability. 63
  64. 64.  Emphasis on mgmt functions and principles involved in performing function. Mgmt functions are universal in nature. Conceptual frame work can be constructed on the basis of analysis of mgmt process. Coreof mgmt revolves round planning, organizing ,staffing, directing and controlling 64
  65. 65.  Management is essentially decision making Members of org are decision makers and problem solvers. Org can be treated as combination of various decision centers. Quality of decision affects the organizational effectiveness. 65
  66. 66.  All factors affecting decision making are area of study for managers. Other factors affecting the decisions are process, information systems, social and psychological aspects of decision makers. 66
  68. 68.  Closedsystems which do not interact with environment. Opensystem are those system which have exchange 68
  69. 69.  Negative entropy :New energy. Synergy: ability to sum its parts. Thesystem view point: managers are more successful 69
  70. 70.  Competition People Technology Regulation Opportunities. 70
  71. 71.  Tom Peters and Robert Waterman had been consultants at McKinsey&Co They published this in the “Structure is not organization” “The Art of Japanese Management” 71
  72. 72.  Strategy Structure System 72
  73. 73.  Skills Shared values Staff Style 73
  74. 74. 74
  75. 75.  Planning is a mental predisposition to do things in an orderly way, to think before acting &to act in the light of the fact rather than guesses. 75
  76. 76.  Long term& short term plans. Standing plans: e.g-policies,objectives,strategies rules,procedures,mission. Single use plans:budgets,targets,quotas. 76
  77. 77.  Standing plans  Single use plans Made to meet  Made to meet situation recurring specific situation in nature. It is used time  Usedonly for fixed &again. purpose Brings unity & uniformity  Ceases to exist after its purpose. 77
  78. 78.  Strategic plans: They are detailed action steps mapped out to reach strategic goals. They are organization wide Developed by top management. 78
  79. 79.  They are means to support the strategic plans. They are more specific and concrete. The time taken is 1-3 years. 79
  80. 80.  Theyare means devised to support implementation of tactical plans. Operational plans spell out specifically what must be done to achieve operational goals. Time horizon is relatively short term less than 1 year. 80
  81. 81.  Identification of area of study Collection & analysis of data. Setting of objectives Establishing planning premises. 81
  82. 82.  Searching Alternatives Comparing and selecting the best. Formulating derivative course of action. Implementation Follow up. 82
  83. 83.  Frequent revision Resistance to formalized planning Pressure of day-day responsibilities. Managers may be poorly prepared. 83
  84. 84.  PlanningShould be supported by proper planning. Planningneeds to be done in small groups. planning staff) Contingency planning is the development of alternative plans. 84
  85. 85.  Objectivesare the goals, aims or purpose that organizations want to achieve over varying periods of time. Nature of objectives is as follows. Every organisation has an objective These may be broad or specific, wide or narrow, for long term or short term. 85
  86. 86.  These are clearly defined. Objectives have hierarchy They are created within social norms. They may have multiple objectives. 86
  87. 87.  These are done based on the value system of managers. Organizational strengths and weakness. External environment. 87
  88. 88.  Itmust be clearly specified They must be set keeping all factors in mind. Should be consistent with organizational mission. Should be realistic and rational. Should yield specific results when achieved. Should be consistent over a period of time. 88
  89. 89.  Peter Ducker was the person who popularized Management by objectives in the year-1954. MBO is concerned with goal setting for individual and their units. Essence of it is joint goal setting between superior and subordinate. Managers work with their subordinates to establish the performance. MBO focuses attention on appropriate goals and plans. 89
  90. 90.  Strategicplanning is the process of deciding on the objectives of the organisation ,on changes in these objectives on the resources used to attain objective & on the policies that will govern the acquisition ,use & disposition of these resources. 90
  91. 91.  Systematic means of analyzing the environment. Assessing the organizations strengths and weakness. Identifying opportunities that would give the organisation a competitive advantage. Provide a sense of direction so that the organisation members know where to expend their efforts. 91
  92. 92.  Mission &objectives Environmental scanning. Strategy formulation. Strategy implementation Evaluation and control. 92
  93. 93. Mission Mission is a reason for the company being there. It projects a sense of purpose to employees and projects accompany image to customers. It states a statement which sets the mood of where the company should go.Objectives Objectives are concrete goals that the organization seek to reach. The objectives should be challenging but achievable. 93
  94. 94.  Environmental analysis:External environment has two aspects, Macro environment that affects all firm and a micro environment that affects only firms in a particular industry.PEST Analysis. 94
  95. 95.  Michael Porter‟s 5 forces framework that is useful for industry analysis. It includes, barriers to entry,customers,suppliers,substitute products and rivalry among competing firms. 95
  96. 96.  Company culture. Company image. Organizational structure. Key staff. 96
  97. 97.  Access to natural resources Position on the experience curve. Operational efficiency. Operational Capacity. 97
  98. 98.  Brand awareness Market share. Financial resources. Exclusive contracts and patents and trade secrets. 98
  99. 99.  Itcan be formulated on the basis ofMichael Porter model. Cost leadership, Differentiation… He focused on 3 generic strategy. With one generic being pursued. 99
  100. 100.  It needs to be developed at each level. Marketing Research and development. Procurement. Production Human resource and Information system. 100
  101. 101.  Theentire process after being implemented needs to be controlled. Standards of performance needs to be taken into consideration. The actual performance is measured. Appropriate action taken for success. 101
  102. 102. Strengths WeaknessOpportunities Threats 102
  103. 103.  The technique is credited to Albert Humphrey. SWOT analysis is a tool for auditing an organization and its environment. Strengths and Weakness are internal factors. Opportunities and Threats are external factors. 103
  104. 104.  Also known as BCG Matrix BCG Growth share matrix is a portfolio – planning model. Itis developed by Bruce Henderson of the BCG in 1970. 104
  105. 105. 105
  106. 106. To assess : Profiles of products/businesses The cash demands of products The development cycles of products Resource allocation and divestment decisions 106
  107. 107.  Anticipated environment. Assumed premises. Known premises. External premises and Internal premises. 107
  108. 108.  Estimation of time series, cross-sectional or longitudinal data. Demand planning for manufacturing. Statistical forecasting and consensus process. 108
  109. 109.  Quantitative forecasting relies on numerical data and mathematical model. Time-Series model. Explanatory or causal models. 109
  110. 110.  Regression models. Econometric models. Leading indicators. 110
  111. 111.  Technological forecasting. Judgmental forecasting. Jury of executive opinion. Sales force composite. 111
  112. 112.  Have a short to medium time horizon. Require a short period of time. Often have development cost. Low accuracy and difficult to understand. 112
  113. 113.  Medium to long term horizon. Medium development cost. Medium accuracy in identifying patterns. 113
  114. 114.  Have a short to long time horizon Require a short time. Have low development costs. Medium accuracy. 114
  115. 115. 115
  116. 116. A decision is a course of action which is consciously chosen for achieving a desired result. It is a selection of one behavior alternative from two/more possible alternatives. Considers the fact. 116
  117. 117.  Understand the concept of decision making Takebusiness decisions by using the steps of decision making. Explain decision making. 117
  118. 118.  Management and decision making go side by side. Structured decision making important. Future of organization depends on the decision taken by management. 118
  119. 119. A crisis problem.A non crisis problem An opportunity problem. 119
  120. 120.  Defining the problem. Analyzing the problem. Establishing criteria by which it can be evaluated. Identifying alternate solutions. Selecting the best one Implementing the decision. Evaluating the decision. Developing Alternatives. 120
  121. 121.  Decision maker intends to maximise economic gains. He is objective and rational. He can identify the problem clearly. Has full information about alternatives. Complete freedom to choose alternatives. 121
  122. 122.  Decision under certainity. Decision under uncertainty. 122
  123. 123.  Routine& Strategic Decisions. Operating decisions. Organizational & Personal decisions. 123
  124. 124.  Programmed & Non Programmed. Individual & Group decisions. Irreversible &Reversible decisions. Experimental Decisions. 124
  125. 125.  Trialand error decisions. Made in Stages Decisions. Caution Decisions. Conditional decisions. Delayed decisions. 125
  126. 126.  Well-Structured problems are straight forward, familiar and easily defined.A programmed decision or repetitive decision can be used. 126
  127. 127.  Procedure. Rule. Policy. 127
  128. 128. Unusual problems or information.These are best handled by non programmed decision.Unique decision which requires custom made solution. 128
  129. 129.  Individual style of decision making. Two dimension style, two matrix style. 129
  130. 130.  Directive style Analytical style. Conceptual style. Behavioral style. 130
  131. 131.  Information. Time factor. External environment factors. Internal factors. 131
  132. 132.  Personality of the decision maker. Participation,Acceptance and Implementation. Precedent Experience of a decision maker. 132
  133. 133.  Experience of a decision maker. Power to decide. Escalation of commitment. Bounded Rationality Problem perception. 133
  134. 134.  Engage in COMPLETE RATIONAL DECISION PROCESS. Optimal decisions. Possess and understand all information relevant to their decision. 134
  135. 135.  Identifying a problem. Decision criteria. Developing alternatives. Selecting an alternative Choosing a course of action. Evaluating the decision effectiveness. 135
  136. 136.  It‟s a predictive model. Mapping of observation of an item. Synergy of mathematical and computing techniques. Aidsin description,categorisation and generalization of a given set of data. 136
  137. 137.  Simple to understand. Require little data Ableto handle both nominal and categorical data. Use a white box model 137
  138. 138.  Validate a model using statistical tests. Arerobust, perform well with large data in short time. 138
  139. 139.  Classification tree. Regression tree. CART analysis: Classification and regression trees. 139
  140. 140. Market research Through development good New product moderate poor RapidConsolidated developmentproduct Strengthen products Reap products 140
  141. 141.  When all the members together take a decision it is called as group decision. Features Used when problem is complicated. Time consuming process. Leads to higher quality of decisions. Legal requirements and group behavior. 141
  142. 142.  Group brings more diverse effects. Increased number of alternatives. Greater understanding and acceptance of the final decisions. Members develop knowledge and skills for future. 142
  143. 143.  Group decision making is more time consuming.Disagreements may delay decisions and cause hard feelings. The discussion may be dominated by one or few group members. Group think is the tendency in cohesive group. 143
  144. 144.  Individuals with information needs to be involved. Heterogeneous groups have been found with diverse behaviour. 144
  145. 145.  Brain storming. Nominal group technique. Delphi technique. Consensus Making. 145
  146. 146.  Delphi method Scenario Analysis. Deming TOOL for improvement. Nominal group technique. 146
  147. 147.  Creativityis a cognitive process of developing an idea,concept ,commodity or discovery. Creativity has two types of thinking. Convergent thinking, Divergent thinking. 147
  148. 148.  Domain relevant skills. Creativity relevant skills. Task motivation. 148
  149. 149.  Preparation involves the individuals immersion. Gathering initial information. Generating alternatives. 149
  150. 150.  Advantages- Better performance- More performance- Less mistakes Disadvantages- Time consuming- Creates chaos- More competition 150
  151. 151.  Brainstorming Delphitechnique Nominal technique 151
  152. 152.  Decision tree learning, used in statistics, data mining and machine learning, uses a decision tree as a predictive model which maps observations about an item to conclusions about the items target value. More descriptive names for such tree models are classification trees or regression trees. In these tree structures, leaves represent class labels and branches represent conjunctions of features that lead to those class labels. 152
  153. 153. Decision trees used in data mining are of two main types: Classification tree analysis is when the predicted outcome is the class to which the data belongs. Regression tree analysis is when the predicted outcome can be considered a real number (e.g. the price of a house, or a patient‟s length of stay in a hospital). The term Classification And Regression Tree (CART) analysis is an umbrella term used to refer to both of the above procedures, first introduced by Breiman et al. Trees used for regression and trees used for classification have some similarities - but also some differences, such as the procedure used to determine where to split. 153
  154. 154. 154
  155. 155. A group of people that have been established for the pursuit of relatively specific objectives on a more or less on continuous basis. 155
  156. 156.  Discipline Division of work Better coordination. Increase in efficiency. 156
  157. 157.  Securityand support. Avoid duplication of work Adaptability Better human relation. Achievement of goal. 157
  158. 158.  Assigning individuals with formal tasks. Formal reporting ,lines of authority, decision responsibility, hierarchical levels and span of management control. Design of systems. 158
  159. 159.  Review plans. List tasks. Group the tasks into jobs. Group jobs. 159
  160. 160.  Assignment of duties. Delegation of authority. 160
  161. 161.  Formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goals. 161
  162. 162.  It consists primarily of four elements. Job design. Departmentalization. Vertical coordination Horizontal coordination. 162
  163. 163. Bases:- Functions- Process- Product- Location- Customers- Time 163
  164. 164.  Itis a group combined together for performing certain functions of similar nature. Departmentalization is the process of combining related jobs into larger group. 164
  165. 165. 165
  166. 166.  Authority flow is in a direct chain. Top of the company to bottom. Chain of command is an unbroken line. Unity of command Span of control. 166
  167. 167.  More limited to advice. Authority that is based on expertise. Staff members are advisors and counselors. They are advisors such as accounting ,human resource, information technology. 167
  168. 168.  Committees or work team involved. They work with minimum supervision. They are empowered to plan and organize their own work. Empowered to create their own schedules. Facilitates to detect and react to changes in the environment. 168
  169. 169.  Authorities have power to get things done. Involving employees to set their objectives empowers them. 169
  170. 170.  Legitimate power Coercive power Reward power. Expert power. Referent power. 170
  171. 171.  Delegation consists of granting authority or the right to decision –making in certain defined areas & charging the subordinate with responsibility for carrying through the assigned task. Togive offer and allot a part of authority to subordinate. 171
  172. 172.  SMARTER Specific Measurable Agreed Realistic Time bound Ethical & Recorded. 172
  173. 173.  Authority Responsibility Accountability. 173
  174. 174.  Low degree of delegation. Moderate degree of delegation. High degree of delegation. 174
  175. 175.  Clarifying the assignment. Specify the subordinates range of discretion. Allow the subordinate to participate. 175
  176. 176.  Inform others that a delegation has occurred. Establish feedback control. 176
  177. 177.  Preparing Planning Discussing Auditing and Appreciating 177
  178. 178.  Lacking confidence Lacking trust May create bottleneck in process Fear of losing status and position No delegation may discourage person 178
  179. 179.  Superiors love for authority. Maintenance of tight control. Fear of subordinates. Negative attitude towards subordinates etc… 179
  180. 180.  Making the potential delegator feel secure. Creatingawareness for the need of delegation. Determining decision & tasks to be deligated. 180
  181. 181.  Delegating wisely. Tying delegation with planning. Delegating authority for whole job. 181
  182. 182.  Decentralizationrefers to the systematic effort to delegate to the lowest levels all authority except that which can be exercised at central points. 182
  183. 183.  Centralizedorganization systematically works to concentrate authority at the upper levels. Decentralized organization. Management consciously attempts to spread authority to the lower organization levels. 183
  184. 184.  Reduction burden. Facilitates growth and diversification. Considers good philosophy to motivate managers. Encourages development. 184
  185. 185.  Organization is large. Operation are geographically dispersed. Topmanagers can not keep up with complex technology. 185
  186. 186.  Political decentralization. Administrative decentralization. Fiscal decentralization Economic or Market Decentralisation 186
  187. 187.  Topmanagers can concentrate on major issues. Thejobs of lower level employees are enriched by the challenge of making decisions. Decisions can be made faster. 187
  188. 188.  Individuals at lower levels may be closer to the problem and be in a better position to make decisions. 188
  189. 189. A term which originated during the military organization. Span of management also called span of control, span of supervision. Should have neither toomany nor few subordinates. 189
  190. 190.  Capability of workers: if workers are highly capable, need little supervision, and can be left on their own, they need not be supervised much as they are motivated and take initiative to work; as such the span of control will be wider. Similarity of task. 190
  191. 191.  Capacity of superior. Capacity of subordinates. Nature of work. Use of staff assistance. 191
  192. 192. 192
  193. 193.  Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose. 193
  194. 194.  Coordination pulls all function. Itbrings satisfaction to all people in the organization. Smooth flow of information and resources. 194
  195. 195.  Constant change Passive leadership Large personnel Functional differentiation. Specialization. 195
  196. 196.  Clearly defined goals. Clear lines of authority &responsibility. Comprehensive programmes and policies. Staff meetings. 196
  197. 197.  Cooperation. Effective communication. 197
  198. 198.  Controlis a management function which implies measurement and correction of performance of subordinates to ensure that the predetermined objectives are accomplished. Taking actual steps to bring results. 198
  199. 199.  Makes plan effective. Make sure activities are accurate. Makes organization effective and efficient. Feedback on project status & decision making. 199
  200. 200.  Cope with uncertainty. Alert to possible opportunities. Enables to handle complex situation. 200
  201. 201.  Control is forward looking An essential function of management. Controls continuous activity. It is dynamic process. 201
  202. 202.  Control is also backward looking system. It is based on planning It aims to achieve results. Manage both human and physical factors. 202
  203. 203.  Establish performance standards. Measure actual performance Compare measured performance against established standards. Take corrective action. 203
  204. 204.  Feedforward control/ preliminary/ preventive/steering Concurrent control/screening/yes-no Feed back controls/post action /output. 204
  205. 205.  Traditional technique Modern technique. 205
  206. 206.  Budgetary control Top down budgeting Bottom-up budgeting Zero based budgeting Flexible budgeting. 206
  207. 207.  Statistical data and reports Marginal costing: ascertainment of marginal cost & of the effect on profit of changes in volume or type of output by differentiating between fixed and variable cost. Break even analysis: the position of profit, loss at different levels of activity. 207
  208. 208. Modern techniques Management audit PERT: Programme evaluation and review technique. CPM: Critical path method, marks critical activities in a project.- construction aerospace, & defense, software development, research projects, product development, engineering & plant maintenance MIS: Management information system 208
  209. 209.  Japanese believe in is lifetime employment. Besides job security Japanese companies believe in trust. Not to be promoted till one works for 10 years. 209
  210. 210.  Do not give set target Whiledecision making whole company should be involved. One individual should not be rewarded. 210
  211. 211.  Short term  Life employment. employment. Individual decision  Collective decision making making Individual  Collective responsibility Responsibility 211
  212. 212.  Rapid evaluation &  Slow evaluation & promotion promotion Specialized career  Non specialized path career path 212