Management in all business and organizational
activities is the act of coordinating the efforts of
and objectives using available resources
efficiently and effectively. - Wikipedia
Art of getting things done through people – Mary
It is the basic function of management. It deals with
chalking out a future course of action & deciding in
advance the most appropriate course of actions for
achievement of pre-determined goals. It is looking
ahead and preparing for the future. This is done at all
levels of management.
According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel”. It is the
process of bringing together physical, financial and
human resources and developing productive
relationship amongst them for achievement of
The main purpose of staffing is to put right man on
right job i.e. square pegs in square holes and round
pegs in round holes. Staffing is considered as an on
going responsibility in management.
is that inert-personnel aspect of
management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals. Directing
involves communication, leadership and motivation.
It implies measurement of accomplishment against
the standards and correction of deviation if any to
ensure achievement of organizational goals.
Role of a Manager
Role of a Manager (continue..)
Levels of Management
Although all managers are supposed to
(POSDCORB), generally there are three
levels of managers – First Line (Front
classification is done based on the
responsibilities entrusted to them. (See
Management & Administration
There are two views to this. First, propounded by
Management writers like Sheldon, Spriegal and
Milward “Administration involves ‘thinking’. It is a
top level function which centers around the
determination of plans, policies and objectives of the
business enterprise. Management involves ‘doing’
which involves execution and direction of policies and
Management & view (E.F.L.Brech et al),
According to second
Management is a comprehensive term embracing all
the basic functions. Administration is only a branch of
management which encompasses two of its function –
planning & controlling. According to this view, the
function of management can be divided into
Administration & Operations
Distinction between Co-ordination
Members in a group are expected to show their
voluntary willingness to work together for certain
common goal – this is co-operation.
Giving direction to all members of a group to apply the
right amount of effort at the right place, at the right
time is co-ordination.
Thus co-ordination is superior in order of importance
to co-operation. (Page 177)
Distinction between Co-ordination
Control is direct intervention in the operations of an
enterprise to ensure conformity with organizational
Co-ordination provides the appropriate linkage
between different task units within the organization.
It is associated with integrating activities dispersed
across the enterprise and is less direct, economical and
has a longer time span of control.
Need for Co-ordination
(because of the following reasons)
Division of Labor
Interdependence of Units
Individual interests versus
Requisites for excellent Coordination
1. Direct Contact
2. Early Start
5. Clear-cut Objective
6. Simplified Organization
7. Clear Definition of Authority and
8. Effective Communication
9. Effective Leadership and Supervision
Types of Co-ordination
INTERNAL: Co-ordination among the employees of the
same department or sections is called internal coordination.
EXTERNAL: Co-ordination with suppliers, distributors,
government and other outsiders with whom the
enterprise has business connections is called external
VERTICAL: This is what exists within a department
where the departmental head is called upon to
coordinate the activities.
HORIZONTAL: This takes place sideways. Horizontal
coordination exists between different functional units
like production, sales, purchase, finance, personnel etc.
Organizational Behavior about human
The study and application of knowledge
behavior related to other elements of an organization
like structure, technology and social systems –
OB is the systematic study of the actions and attitudes
that people exhibit within the organization. – Stephen
OB is directly concerned with the understanding,
predicting and controlling of human behavior in
organizations. - Luthans
OB is significant because it deals with
managing work place diversity and
improving ethical behavior. OB helps
in defining power and authority of an
responsibilities. The status of an
employee is also defined in OB.
Interpersonal communication is the process by which
people exchange information, feelings, and meaning
through verbal and non-verbal messages: it is face-toface communication. Interpersonal communication is
not just about what is actually said - the language used
- but how it is said and the non-verbal messages sent
through tone of voice, facial expressions, gestures and
Thirty years ago, a businessperson was generally hired
on the basis of technical skills. Since then, the world’s
economy has moved toward service-oriented,
information-focused businesses that are increasingly
organized in teams. Now, Fortune 500 companies
name strong interpersonal, communication and team
skills as the most important criteria for success in
management positions. (Buckley, Peach, & Weitzel, 1989;
Kane, 1993), and employers consistently name
interpersonal communication skills as crucial for success
on the job (Maes, Weldy, & Icenogle, 1997).
is the beginning of the process of
management. Without planning other activities
become mere activity, producing nothing but chaos.
Decision Making is an integral part of planning.
Planning is a continuous process monitoring the
conditions within and outside the organization. It is
said that ‘a plan must be flexible’ – able to adapt to
changing situations without undue cost.
Importance of Planning
Minimizes Risk and Uncertainty
Leads to success
Types of Plans
In a large corporate structure, there are various types
of plans that are arranged in a hierarchy within the
organization. Plans at each level have to be consistent
with and contributive to the achievement of plans
Types of Plans (continue..)
(refer page No.61 to 63)
Steps in Planning
1. Establish verifiable Goals or set Goals
to be Achieved.
2. Establish Planning premise (basis)
3. Deciding time of Planning Period
4. Finding alternative courses of action
Steps in Planning (continue..)
5. Evaluating and selecting a course of
6. Developing Derivative Plans
7. Establishing and Deploying Action
8. Measuring and Controlling the
Decision making can be regarded as the cognitive
process resulting in the selection of a course of action
among several alternative scenarios. –Wikipedia
Decision making permeates through all the functions
of Management and thus a key part of a Manager’s
Steps in Rational Decision-Making
Recognizing the problem
Diagnosing the problem
Developing alternative solutions
Measuring and comparing the consequences of
Converting decision into effective action
Difficulties in Decision Making
Non Actionable Information
Non-acceptance by Subordinates
BUSINESSthe process of making statements about
events whose actual outcomes (typically) have not yet
been observed. Prediction is a similar, but more
Business forecasting provides a guide to long-term
strategic planning and helps to inform decisions about
scheduling of production, personnel, distribution etc.
(read text and discuss)
RAND Corporation developed the Delphi
Technique in the late 1960s. In the Delphi Technique, a
group of experts responds to a series of
questionnaires. The experts are kept apart and unaware
of each other. Based on the responses of the first
questionnaire, a second one – more specific – is
prepared. This questioning, compilation and requestioning continues until the researchers have a
narrow range of opinions.
In Scenario Writing, the forecaster generates different
outcomes based on different starting criteria. The
decision-maker then decides on the most likely
outcome from the numerous scenarios presented.
Scenario writing typically yields best, worst and
Subjective forecasting allows forecasters to predict
outcomes based on their subjective thoughts and
feelings. Subjective forecasting uses brainstorming
sessions to generate ideas and to solve problems
casually, free from criticism and peer pressure.
Subjective forecasts are subject to biases and should be
viewed skeptically by decision-makers.
Time-series forecasting is a quantitative forecasting
technique. It measures data gathered over time to
identify trends. It is often shown as an upward- or
downward-sloping line to represent increasing or
decreasing trends, respectively.
Business Forecasting Techniques
Qualitative and Judgmental Method
2. Method based on Past results
3. Method based upon Casual
4. Simulation Method
Organization or the state of being
(a)The act of organizing
(c)A business or administrative concern united
nstructed for a particular end;
(d)A body of administrative officials, as of a
al party, a government department, etc
order or system; method.
A social unit of people that is structured and
managed to meet a need or to pursue collective goals.
All organizations have a management structure that
different activities and the members, and subdivides
and assigns roles, responsibilities, and authority to
are open systems--they affect and are affected by
Process of organization includes departmentalization
or segmentation of activities on the basis of some
homogeneity. We can describe this differentiation and
integration in terms of a seven step procedure. Please
see next page.
7 Step Process
Consideration of Objectives
Deciding Organizational Boundaries
Grouping of activities into Departments
Deciding Key Departments
Deciding Levels at which Decisions are Made
Determine the Span of Management
Setting up a Co-ordination Mechanism
Principles of Organizing
Span of Control
Management by Exception Principle
Unity of Command
14. Unity of Direction
15. Personal Ability
The horizontal differentiation of tasks or activities into
discrete segments is called departmentalization. The
aim is to take advantage of the division of labour
specialization up to a certain limit.
typically hierarchical arrangement of lines of
rity, communications, rights and duties of an
organization. Organizational structure determines how
the roles, power and responsibilities are
controlled, and coordinated, and how information
flows between the different levels of management.
An organization can be structured in many different
ways, depending on their objectives. The structure of
an organization will determine the modes in which it
operates and performs.
Organizational structure allows the expressed
allocation of responsibilities for different functions
and processes to different entities such as
the branch, department, workgroup and individual.
Line & Staff Concepts
There are three types of authority
organizations: Line, Staff and Functional.
Line authority is represented by the standard chain
of command that starts with the board of directors an
extends down through the various levels in the
hierarchy to the point where the basic activities of the
organization are carried out
Literally, the word ‘staff’ means the stick carried in the
hands for support. They are instrumental in carrying
out the directions of the ‘Line’ or supporting to achieve
the organizational objectives. (Please refer Fig.8.2 in
The highest level o the staff employee’s authority is
one where he is granted ‘functional’ authority.
It is the formal right of the superior to command and
compel his subordinates to perform a certain act. Fayol
defines authority as ‘the right to give orders and power
to exact obedience’.
According to Herbert A. Simon, three functions of
authority are as follows.
It enforces obedience to norms.
2. It secures expertise in the making of
3. It permits centralization of decision
making and co-ordination of activity.
Decentralization of Authority
In the words of Henry Fayol ‘ Everything that goes to
increase the importance of subordinate’s role is
decentralization and everything that goes to decrease
the importance of subordinate’s role is centralization.
Delegation of Authority
Assigning some part of his work by a
Manager to his subordinates and also
gives them necessary authority to make
decisions within the area of their
assigned duties. This downward push
of authority to make decisions is called
delegation of authority.
Advantages of Effective Delegation
Relieves the manager of his heavy workload
It speeds up decision making
It helps train subordinates and builds morale
Serves as compensation to those employees who face
the prospect of limited advancement
It helps create a formal organization structure
It is important to have an effective and unambiguous
Organizational Structure, but more important is to fill
the jobs with the right people.
Staffing includes principle functions like Recruitment,
Selection, Training, Compensation, Performance
Importance & Nee for Proper
It helps in developing talented and competent
workers and help them move up the corporate
2. It ensures greater productivity by putting the most
3. It helps to avoid a sudden disruption of an
enterprise's production by planning for manpower in
4. It assists to prevent under-utilization of personnel
through over manning and the resultant high cost.
5. It facilitates information to the management for
internal succession of managerial personnel in the
event of an unanticipated turnover.
I. Man-power Planning
In large organizations this function will be performed
by HRM department. According Geisler, “manpower
planning is the process by which a firm ensures that it
has the right kind of people and the right number of
people at the right places at the right time, doing work
for which they are economically most useful”.
II.Once the requirement of manpower is known, the next
process is recruitment. It can be defined as the process
of identifying the sources and stimulating
The sources could be – Ex-employees, references from
present employees and others, application at the gate,
educational institutions, employment agencies,
Identifying the right person or the most suitable
person for the job and inducting them to the
organization is selection. Getting a pool of qualified
persons for selection is the preceding step that we have
seen as recruitment.
Steps in Selection Procedure
Job requisition form from Department Head Or Job
Sorting of Applications
Physical and Medical Examination
The process of placing the right person for the right
vacancy or job is called placement. He should not be a
round peg in a square hole. Placement will become a
challenge when the vacancies to be filled up are more
and complex due to many reasons.
Manpower Planning in India
Read out text, page No.213 and discuss.
Ushering in the new employee by providing all the
necessary information is called induction. This is done
with two major objectives (1) familiarizing the new
employee with his new surroundings, company rules &
regulations; and (2) developing in him a favorable
attitude towards the company.
Training - Advantages quantity of a
1. Helps in improving the quality and
2. Enables the worker to make the economical an best
use of materials and machine.
3. Reduces accidents by developing effective work
4. Develops a feeling among the employees that the
person is being cared for and important. A definite
5. Reduces the rate of employee turnover and
Helps management to distinguish between efficient
an poor workers.
Facilitates promotion of workers and increases their
market value and earning power.
Makes the employee more loyal and inducts him/her
to the culture faster.
Helps to build up a pool of efficient workers.
Trains the worker in indigenous and alien cultural
Types of Training
Induction or Orientation Training
Training for Global Assignments
1. On the Job Training
1. Simulators & Training Aids
2. Programmed Instruction
Selection of Training Methods
Nature of Problem Area
Level of Trainees in the
Ability to stimulate interest in the
Availability of competent trainers
Evaluation of Training &
It refers to all the formal procedures used in working
organization to evaluate the personalities and
contributions of group members.
As the term denotes, performance appraisal is
objective and seldom subjective.
Purpose of P. Appraisal
Basis for job change or promotion
Guide for formulating training & development
Serves as a feedback to the employees
Works as a motivation because employees feel that
what they do is noticed
Supervisors tend to look at employees more
VI. Provides rational foundation of increment
VII. Means for evaluating the effectiveness of devices for
selection and classification of workers
VIII.Provides concrete record which is useful when the
IX. Helps management to align performance with
Essentials of a good A. System
Easily understandable, continuous and not an
Should have support of all the people involved
Should be data-based
Must be truly indicative of performance
System should be standardized
Open and participative
7. Focusing more on the development and growth of
8. Basis for continuous guidance and counseling of
9. System should be constantly evaluated to ensure
that it is meeting its goals
Control of control is to reveal the variations
The main object
between the Standards set & Performance and then to
take necessary steps to prevent such occurrences of
such variations in future.
‘Control is checking current performance against
predetermined standards contained in the plans, with a
view to ensure adequate progress and satisfactory
performance’ – E.F.L Brech
Steps in a Control Process
A. Establishing Standards
B. Measuring & Comparing actual
results against Standards
C. Taking Corrective Action
Essentials of effective Control
2) Timely and Forward Looking
3) Objective and Comprehensible
6) Perspective and Operational
7) Acceptable to Organizational Members
8) Reveal Expectations at Strategic Points
9) Motivate People to High Performance
10) Should not lead to Less Attention to Other aspects
11) Should be periodically Reviewed and Evaluated
Past-oriented and future-oriented
II. Market-control techniques (CT),
Bureaucratic CT and Clan CT
III. Old and New CT
‘Ability to secure desirable actions from
a group of followers voluntarily without
the use of coercion’ – Alford & Beatty
‘Leadership is the ability persuade
others to seek defined objectives
enthusiastically’ – Kieth Davis
Characteristics of Leadership
It implies the existence of followers
2. Involves a community of interest between the leader
and his followers
3. Engages an unequal distribution of authority among
leaders and group members
4. It means that leadership can influence followers or
subordinates in addition to being able to give their
Functions of a Leader
Setting and Achieving
2. Planning Operations of the
3. Symbolic Figure of the Group
(Refer Page 344)
Leader & Manageri.
Person emerges as a
Leader has some
iii. Leader focuses on
iv. Leader believes in
Doing Right Things
Manager reaches his
ii. Manager has some
iii. Manager focuses on
Systems & Procedures
iv. Manger believes in
doing Things Right
Direction means issuance of orders and leading and
motivating subordinates as they go about executing
‘Direction is the interpersonal aspect of managing by
which subordinates are led to understand and
contribute effectively and efficiently to the attainment
of enterprise objective’ – Koontz & O’Donnell
Requirements of Effective Direction
Harmony of Objectives
Unity of Command
Motivation begins with the individual
feeling certain NEEDS. These needs
give a thrust to the individual toward
certain goals or rewards which he
perceives (rightly or wrongly) will
satisfy his needs.
a person’s job fulfils his
dominant needs and is consistent with
his expectations and values, the job will
It refers to an employee’s general
attitude towards his job.
It is a concept that describes the
attitudes of the employees collectively
towards all aspects of their work – the
job, the company, working conditions,
fellow workers, supervisors and so on.
Morale essentially is a group concept.
Communication means the process of
understanding from one person to
another. Allen Louis defines it as the
sum of all things one person des when
wants to create understanding in the
minds of another.
Importance of Communication
As a result of the Hawthorne experiments,
it was realized for the first time that every
organization structure is a social system
involving the interactions of people
working at different levels and proper
communication among them is necessary
for achieving the goal of the organization.
Purpose of Communication
To persuade prospective employees while
2. During the Orientation communication is essential
3. It is needed to enable employees to perform their
4. Necessary to acquaint subordinates with the
Much of the communication in an organization is
formal. It flows in formally established channels. All
orders, instructions and decisions are communicated
to the subordinates through this channel. They flow in
four directions – Downward, Upward, Laterally and
One of the structure-less communication is Grapevine.
Others are Rumors etc.
5. Necessary to teach employees about
Communication is necessary to
project the image of the organization
Helps the manager in his decision
It helps in co-ordination
Promotes cooperation and industrial
It increases managerial efficiency
Barriers to Communication
Badly Expressed Message
Distrust of Communicator