M.A. PHILOSOPHY, CULTURE AND TOURISM
Temple Management –PCTC-205(2)
Definition and Nature of Management
Management, both as a practice and as a field of thought and study, has a-long history. Its roots go back almost two hundred years. Management was discovered before there was any management to speak of. The great English economists from Adam Smith (1723 -1790) to David Richardo (1772-1823) to John Stuart Mill (1806 - 1873), including their successor and antagonist, Karl Marx (1818 - 1883) have not mentioned any management. But the last of the great English classical economist Alfred Marshall (1842 -1924) did indeed add management to the factors of production. J.B.Say (1767 - 1832) the most brilliant economist produced by France, who was also the propagandist for "The wealth of nations" in France stressed on the concept of the" entrepreneur" who directs resources from less productive into more productive investments and who thereby creates wealth.
Thus great people of several nations observed management as a discipline which emphasize constructive, purposeful and systematic development of economy as a whole.
The role of Management : Management is critical element in the economic growth of a country. As Peter F. Drucker rightly observes that there are no underdeveloped nations but are only "Under managed nations", without management, a country' s resources of production remain resources and never become production. The management C, managing the four factors of production (viz; men, money material and machines), enables" a country to experience a substantial level of economic development.
Management is Universal: Management is necessary in all activities be it a profit able institution or a non profit service oriented institution. Principles of management are now universally used, .not just for business organizati0Ils; they are also applied in various other types of orgainisations such as social, governmental, educational and unliterary. From the management of a cig multi national company to the management of a home, follows the same pattern of principles.
Management is practice: Management, according to Drucker: is not and never will be a science but it is a practice. A practice feeds from a large body of line sciences, just as medicine feeds of biology, chemistry, physics and a host of other natural sciences, so management feeds of economics, psychology, mathematics, political thought, history and philosophy. Management is also a discipline in its own right, with its own assumptions, its own aims; its own tools and its own performance goals and measurements.
The essence of modern organisation is to make individual strengths and knowledge productive and to make individual weaknesses irrelevant. Hence, it is the .role of management that connects the individuals strengths and opportunities into an effective, purposeful and productive group in the organisations.
Definition of management: The popular definition of management is contributed by Mary Parker Follett. According to her, Management is the "Art of getting things done through people". Inspite of its popularity, the definition given by Mary Parker Follett has been criticized due to certain weaknesses such as
a. As the definition denotes that management is, 'art' of management is not merely an art. Art deals with application of knowledge. Management is not merely application of knowledge. It also involves acquisition of knowledge i.e. science.
b. The definition does not give the clear picture of the functions of manager. According to Peter F. Drucker management is defined as “a multipurpose organ which manages managers, workers and the work’. A some what more elaborate definition of management is given by George R. Terry. He defines management as a process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources”.
According to this definition
a. Management is a process – systematic way of doing things.
b.
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| of their actions in advance |
| material and human |
| managers coordinate material and human resources of the organization managers motivate and direct subordinates managers attempt to ensure that there is no deviations from the norm or plan. |
Controlling managers attempt to ensure that there is no deviations from the norm or plan.
c. Management involves the act of achieving the organizational goals by the use of people and resources.
According to Koontz "Management is the art of getting things done through and with people in formal1y organised groups". According to Kamball "Management may be broadly defined as the art of applying the economics principles that underlies the control of men and materials in the enterprise under considerations". According to Theo Haimann Management is the function of getting things done through people and directing the efforts of individuals towards a common objective".
The functions of Management or the process of Management: The functions of management are basically four in number. But various management writers have been giving different classifications with different terminologies. Newmann and Summer recognise only four functions namely, organising, planning, leading and controlling. Henry Fayol identifies five functions of management viz planning, organising, commanding coordinating, and controlling. Luther Gullick states seven functions under the popular word 'P O S D C O R B' which stands for Planning, Organising, Staffing, Directing, Co-ordinating, Reporting and Budgeting.
Koontz, ‘O' Donnell and Weirich classify the functions of management of five namely planning, organising, staffing, directing, controlling.
Warner Haynes and Joseph massive classify management functions into decision making, planning, organising, staffing, communicating, directing and controlling.
Summing up the important functions of management coined by various writers, the functions of management can briefly be described as follows:
1) Planning 2) Organising 3) Staffing 4) Directing and
5) Controlling
Two other important functions can also be added in modern management. They are Innovation and Representation as notice by Ernest Dale.
Planning: Planning i.e. predicting of forecasting the future in advance is the primary function of all managers. The nature of planning may differ from organization to organization because of the authority out lined by the superiors. The purpose of planning is to facilitate the accomplishment of the organizational objectives.
| Planning is essentially Deciding |
| What objectives we want to accomplish What actions should be taken to achieve them, What Organizational position is assigned to do them and Who would be responsible for the actions needed |
In the present era of globalisation 'planning' is the most important tool for the survival of any organization. Change and economic growth give rise to opportunities but they also bring risk. It is exactly the task of planning to minimize risk while taking advantage of opportunities.
Planning is a function which is performed by managers at all levels -top, m1ddle and supervisory. The plans made by top management are for longer periods while the plans made by the middle first line managers cover for shorter periods.
Organising: The process through which a group of people working together for the achievement of common objectives or goals is known as organising.
The organising process follows the planning. While planning it specifies what will be achieved when, organising specifies who will achieve what will be achieved when to achieve. Organising specifies. Who will achieve what and how it will be achieved. Organizing involves identification of spec1fic jobs, grouping of jobs of similar nature, number of jobs to be included in a specific group and deciding-how many people a manager can effectively oversees. An integrated network of people, their jobs and their working relationships ultimately constitutes the structure of the organization; briefly the skills of the organising lies in the ability to analyse and describe various. Organizational jobs
- Ability to draw working links i.e. to define authority and span of control amongst people and
- Ability to change these working links whenever there -are major changes in the environment or technology or strategy of the organisation etc.,
Staffing: Staffing is considered' as the important function in building the human organisation. In staffing the manager attempts to find the right person for the right job.
| Finding the right person for right job. Fixing a manager' s responsibility in recruitment. Selecting and training the future managers Selecting a suitable system compensation. Developing an effective human resource development system |
| Staffing involves in |
Directing: The' above three functions, planning, organising. and staffing perform the physical aspects of organisation such as planning the goals objectives, establishing the organisation and its structure, authorities and responsibilities, staffing the people in the right jobs etc., The next function of directing is to -move the people and resources towards its defined objectives. The directing function involves with managing the human factor in the organisation.
Directing function is also called by various names by various management writers such as ‘leading’, ‘motivating’, ‘actuating’
a) Motivation
b) Leadership
c) Communication and
d) Coordinating
| Directing |
| Motivation |
| Leadership |
| Communication |
| Co-ordinating |
Motivation : According to Koontz O.Donnel" motivation refers to the drive and effort to satisfy a want or goal mot1vation implies a drive towards an outcome".
Leadership: Leadership is the function of the leader, the followers and the situation. Leading is influencing people so that they will strive willingly and enthusiastically towards the achievement of organisation and group goals.
Communication: The trial sub function of directing is communication which defined as the' transfer of information from one person to another with the information being understood by important functions of management as it directly involved with the effectiveness of the managing people and the resources.
Co-ordination: The other sub function of directing is coordinating which means achieving harmony of individual and group efforts towards the accomplishment of group purposes and objectives. Some management experts denote that supervision is also a sub function of directing.
Controlling: Controlling is the last function of management process. The process of managing the inputs to get desired output begins with planning and ends with controlling. Hence there is a saying that "while planning is looking forward, controlling is looking back". But the purpose of controlling is not only to look back but to establish the standards of performance through predicting the future.
The two important activities of controlling are:
· Measuring the performance of the people according to the standards established and
· Correcting and deviations if any in achievement of organisational objectives.
Thus the functions of management involve in processing the inputs into effective outputs in the organisation. The following figure explains the overall process of management with-a brief description of functions of management.
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LESSON 3
IMPORTANCE AND DEVELOPMENT OF MANAGEMENT
Early Management Approaches
Today management has risen to the central activity of our age and economy- a powerful and innovative force on which our society depends for support and development. Several c1assical economists explained the functions of management in the earlier times after industrial revolution. Adam Smith explained the concept of division of labour. Say explained the importance of planning. In the early nineteenth century (1800-1828) Robert owen was an out standing pioneer of management. He managed a group of textile mills on Scotland. Owen improved working conditions in factory and sought to improve entire community in which his employees lived by Building Houses and streets and made factory and community more attractive. For that reason he has been referred to as "The Father of Modern personnel management".
Char1es Babbage who invented 'analytical machine' in 1833 was a mathematical management scientist. Babbage argued that there should be mutual interest between the worker and owner of factories. However, Babbages interests and contributions were on1y found in the areas of costing and engineering etc., but not in the broader area s of management. Char1es Babbage has been called as "Father of Computers".
Thus the contributions of several economists, mathematicians, and management thinkers were most found in a systematic approach until F.W. Taylor made .his contributions to the study of scientific approach of management principles. During this century management has become a more scientific discipline with certain principles and practices. The evolution of management thought during 20th century can be studied in two parts, namely;
(1) Early management approaches
(2) Modern management approaches.
Management Approaches.
Scientific Management: Frederick Winslow Taylor, (1856-1915) is considered to be the father of scientific management. He gained a great fame on the development of management thought through his contributions. During his career for a period of 26 Years, Taylor conducted a series of experiments in three companies, Midvale Steel company, Simonds Rolling Machine and Bethlehem Steel company. Taylor wrote the paper "The Principles of Scientific Management" which was published in the year 1911.
The fundamental principles of scientific management written by F.W. Taylor are as follows:
1. Replacing rule of thumb with science (organised knowledge)
2. Obtaining harmony in group action rather than individual
3. Achieving cooperation of human beings rather· than chaotic individualism.
4. Working for· maximum output rather than limited output.
5. Developing all workers to their maximum potential for their own growth and company's prosperity.
The important contributions made by F.W. Taylor under scientific management can be grouped into the following aspects:
a. Time and Matian study: This replaced the rule of thumb and a job was found to workers. Time and motion study is the study under which each motion of a job was to be timed with the help of a stop watch and shorter and fewer motions were to be developed. Taylor thought that no worker or employee know how much work it was reasonable to expect a man to do. Therefore the time and motion study developed the knowledge of the workers.
b. Differential payment: Taylor linked incentives with productions. Under the plan the worker gets payment as per the no. Of pieces they made. Taylor thought this increase in payment would motivate the worker to increase production.
c. Reorganisation of supervision: Taylor suggested in his study that the work should be planned by a supervisor and not by the worker. He also insisted on foreman supervising the workers basing on their speciality of work.
d. Scientific recruitment and training: The scientific management emphasized on the scientific selection and development of the worker. He said that the management should develop and train every worker to bring out his best faculties and to enable him to do a higher, more interesting and more profitable class of work than he has done in the past.
e. Cooperation between the management and the worker: Taylor demanded' for a complete ~'mental revolution~' on the part 'Of management and labour to succeed in the scientific management. Taylor believed that the cooperation and mutual interest between management and workers would certainly increase the productivity of the organisation.
Post scientific period: Taylor's principles and concepts were refined and enlarged by several of his followers, notable among them are Henry L. Gantt and the Gilbreths. Gantt saw the importance of human element in productivity and propounded the concept of motivation as we understand it today. He proposed a charting system for production control which is called today-as "Gantt Chart". This chart reflects each man's daily performance in relation to a predetermined quota or standard of performance:
Frank and Lilian Gilbreths made their contribution to scientific management as a couple. They developed motion and fatigue study which raised worker's morale but also they dem6nstrated management' s concern for the workers.
Limitation of scientific management:
(1) Taylor believe d that financial incentives are strong, but he has other needs like security, recognition.
(2) Taylor's time and motion study is not accepted as scientific because there is no one best way as the motions are concerned
(3) Scientific advancement in methods, tools and machines eliminated some workers. This caused resentment among the workers.
HENRY FAYOL'S CONTRIBUTION
Administrative Management: The father of administrative management or modern' operational management is Henry Fayol who was a French industrialist. He made a unique contribution on the principles of general management. He wrote an article in French by name JI Administration Industrial at Generale in 1916. But it was translated into English only in 1929 and it was published in the United States In 1949, which later helped to develop the principles of' business management.
Fayol divided industrial activities into six groups' namely technical, commercial, financial security accounting and manageria1. He also recognised the need for teaching management. Fayol formulated fourteen principles of general management. A brief summary of the contributions of Fayol is as follows:
Fayol grouped the industrial activities into six groups:
| 1. Technical | : | Production activities |
| 2. Commercial | : | Buying, selling and exchange activities |
| 3. Financial | : | Searching for capital and optimum use of investment |
| 4. Security | : | Protection of property and persons in the organization |
| 5. Accounting | : | The activities of accounts maintenance including, statistics |
| 6. Managerial | : | The activities such as planning, organization, command, coordinated and control |
Universal Principles of Management
The 14 general principles of management which are noted as the universal principles of management are:
1 Division of work: The specialisation required for efficiency to kinds of work, managerial as well as technical.
2 Authority & Responsibility: Authority is the combination of official and personal qualities, where official deriving from the intelligence, experience moral work, past service etc., whi1e Fayol says, responsibility arises from assigning the work authority and responsibility; both are interrelated.
3 Discipline: The managers need discipline which is defined as “respect for agreements directed at achieving obedience, application, energy and the outward marks of respect”.
4 Unity of command: Employees should receive orders from one superior only.
5 Unity of direction: Each group of activities with the same .objective must have one head and one plan.
6 Subordination of individual to general interest: When two people are found to differ, management must reconcile they?
7 Remuneration: Remuneration and methods of payment should be fair and afford the, maximum possible satisfaction to employees and, employer.
8 Centralization: This term explains the extent to which authority is concentrated or dispersed.
9 Scalar chain: Scalar chain means the hierarchy authority from the highest executive to the lowest one for the purpose of communication. It takes superior subordinate relationship communication. It states superiors in retail, to subordinates at various levels. As per this principle, the orders or communications Seek through the proper channels of authority along the scalar chain.
10 Order: Management should have order in work through suitable organisation of meli and materials. The principle of II right place for everything for every man" should be observed by the management.
11 Equity: Employees expect management to be equally just to everybody. It requires managers to be free from all prejudices, personal likes or dislikes. Equity ensures healthy industrial relations between management and labour.
12 Stability of tenure of personnel: In order to motivate workers to do more and better work, it is necessary that they should be assured security of job by the management. Otherwise, they will not have any sense of attachment to the firm and they will always be on the lookout for a job elsewhere.
13 Initiative: initiative means freedom to think out and execute workers to do more and better work, it is necessary that they should be assured security of job by the management. Otherwise, they will always be on the lookout for a job elsewhere.
14 Esprit De Corps: This means "Unity of Strength". The management' should create team spirit (unit) among the staff are a great source of strength to the organisation.
Universality of Management Principles: The fourteen principles of general management are applied to any organisation profit or non profit organisations, service oriented organisations, large or small and anywhere in the universe. Management functions are not confined to business enterprises alone but are applicable to all organisations whenever group effort is involved. Hence, we can say that management theory, as a body of knowledge, is not culture bound but is transferable from one environment to another. This is the reason that) management principles contributed by Henry Fayol are called universal principles of management, and the approach has been named as 'Universality' of management principles.
LESSON 4
PLANNING
Planning is the primary function of the management. It is the beginning of the process of management. A manager need to plan, before he organises, staffs, direct and control. Without p1anning nothing can be achieved and other functions also become inactive. According to Koontz O.Donne1, p1anning is "an intellechla1 process, conscious determination of courses of action, the basing of decisions on purpose, facts and considered estimates". P1anning is a continuous and never ending process. Similarly planning should always be flexible. Because, the changes are certain. F1exibility of p1ans means the ability to change directions and to adopt to changing situations without undue cost. Planning is an all pervasive function which means, planning is important to all managers regard1ess of their level in the organisation. Top managers generally spend more time on planning, since they are involved in establishing objectives, strategies to meet the goals and the standards of performance. The other managers are more involved in execution of the plans made by the top leve1 managers.
Meaning: Planning is deciding in advance what to do it? How to do it? When to do it? And where to do it?
| What How When Who Where |
| to do it |
| Planning |
According to George R.Terry, p1anning is "a method technique of 100king ahead a constructive reviewing of future need so that present actions can be justed in view of the estab1ished goals.
Koontz and O. Donnel prescribes planning as "the function of a manager which involves the se1ection from among alternatives, objectives, policies, procedures and programmes. It is thus decision making, affecting the future course of an enterprise or a department.
MC.Far1and defined p1anning as "a concept of executive action that embodies the skills of anticipating influencing and controlling the nature and direction of change".
On the basis of definitions given by various writers, the following characteristics may be identified of planning:
· Planning is a process rather than behaviour.
· Planning is future course of action.
· Planning involves se1ection of best among various alternatives.
· Planning is pervasive in nature.
· Planning is flexib1e, based on changing conditions of situations and environment.
· Planning is a continuous process.
Importance of planning: P1anning is looking forward growth and expansion of any organisation, whether business or non-business, private or public sector, small or large depends upon the nature of effective planning. The organisations which plans ahead about what it can do in future is likely to succeed as compared to one which fails to do. For ex., Reliance Industries Limited, has achieved phenomenal growth within a short period because of its ability to plan new projects.
The importance of planning may briefly be discussed with the fol1owing features of planning.
1. Primacy of Planning: Planning is given the primary position among the functions of management process. Planning sets the objectives for all the other functions. The relation between planning and other functions can be shown as below.
| What kind of organisation structure |
| What kind of people are required |
| How effectively to lea d people |
| By furnishing standards of control |
| PLANS objectives and how to achieve them |
| Which helps to know |
| Which affects the kind of direction |
| In order to assure success of plans |
| Necessary for |
2. To face uncertainty and change: The change is certain in the environmental conditions of the organisations. Some changes are seen and some other changes are unseen. Tangible (seen) changes are in the form of technology, market forces, government regulations, etc. Intangible (unseen) changes are in the form of attitudes, values, cultures etc. Planning helps the organisation to take suitable actions through its flexible nature of objectives.
3. To achieve goals: The objectives that are established should be more meaningful and defined clearly for the successful achievement of goals. Planning the procedures, strategies and policies is the effective way to achieve the common goal or objectives.
4. Controlling: Planning is also more important in controlling the managerial activities. Controlling involves two important aspects;
a) Measurement of the performance against established plans and
b) Correction of deviations, if any.
Hence, it is said that control1ing is looking back where as planning is looking forward. 5. For Successful leadership: Planning is also important to exhibit leadership qualities by the managers. Planning may not guarantee success, but when a leader's actions are planned, he definitely succeeds in his tasks.
6. Form of plans: In terms of planning horizon, planning is two types:
a) Strategic planning
b) Operational planning
a) Strategic planning: The strategic planning is also called as long-range planning. It has two elements.
i) It covers long period of time.
ii) It covers totality of activities of enterprise.
The long range planning i.e. for 15 or 20 or more years is also known as perspective planning.
The strategic planning aims to future profits, future resources and environment. It tries to provide the opportunities and new approaches for the future. Strategic planning also involves high risk since it is planned for a long period.
b) Operational planning: A more detailed planning for a shorter period is known as operational planning. The plans are more specific and directly concerned with operations and deal with various functional areas of the enterprise like production, marketing, finance, research and development etc. Generally operational plans are made by lower level managers.
Operational plans aims at present profits, present resources and environment. It involves low risk as they are short term plans. However, strategic plans and operational plans are not separate and exclusive they overlap and mutually dependent. In fact, operational planning is a part of strategic planning.
The process of planning is a step by step exercise. The following steps are involved in planning:
1. Being aware of opportunities.
2. Estab1ishment of objectives.
3. Appraisal of planning premises.
4. Exploring alternatives.
5. Evaluating and selecting a best a1ternatives.
6. Developing derivative plans.
7. Measuring and controlling the progress.
Being aware of opportunities: As the definition of planning explains, plans determine a course of course of action to be adopted today in order to obtain the desired results tomorrow in order to that planning is regarded as effective, it must anticipate and meet the conditions as they develop in future. Forecasting, therefore, is a precondition to planning which simply stated, means making and intelligent estimate of the conditions that will exist during the plan period. For example, demand forecasting for a particular product is the first step for planning the production and sales in an enterprise. Thus planning requires real estimation and diagnosis of opportunities. Establishment of objectives: The second step in planning is to establish objectives which are to be achieved during the specified period. The objectives are established for the whole enterprise and also for each of its divisions or submits. The objectives or goals of the enterprise should be measurable and also used for measuring the performance of each unit or division by its manager. Generally, the objectives or goals of the organisation are in the form of increasing profits, promotion of sales, increasing the market share of the company and building the good will and image of the company etc.
Approval of planning premises: Premising is the forecasting of the planning environment or the expected environment in which plans will operate. Premises refer to the factors in the environment that effect the achievement of objectives. Example: Government policies.
Planning in any organisation rests on several premises, in other words, on assumptions about the expected environment conditions will require and alteration in the plan. Hence, the future environment of plans is so complex. It is not possible to make assumptions about every detail of the future environment of a plan. Therefore premises are limited to on1y critical strategic and most influential operations. Planning premises may be grouped as external premises and internal premises.
Exploring alternatives: The next step after premising is to explore the alternative plans of action. For instance, technical know how may be secured by engaging a foreign technician or by training staff abroad. Similarly products may be sold directly to the consumer by the company' s salesmen or through exclusive agencies. There is seldom a plan for which reasonable alternatives do not exist and quite often an alternative that is net obvious proves to be the best.
Evaluating and selecting a best action: After developing alternative courses, the next step is to evaluate them in the light of the premises and goals and to select the best course or courses of action. The best alternative course is the optimum course which fulfi1s the requirements of the problem and which cover all advantages of the alternatives developed. The weighing of advantage and disadvantages of each alternative is done with the help of quantitative techniques and operations research.
Developing derivative plans: Once the plan has been made, its general goals must be shown into a detailed, specific goals in the form of operations of the organisation. The middle and lower level managers must draw up the appropriate plans, programmes and budgets for their divisions or department. These are described as derivative plans. The development of the derivative plans are also similar to those taken for broader or upper level plans.
Measuring and controlling the progress: while planning is looking forward, controlling is looking back. It not on1y looking back, controlling also performs the functions of measurement of the performa.'1ce and correcting the deviations. Hence, it is foo1ish to let a plan run its course without monitoring its progress. Managers need to check the progress of their plans so that they can
(a) take the remedial measures necessary to make the plan work or
(b) modify the plan if it does not suit the realistic environment.
LESSON 5
DECISION MAKING
The success and growth of a business organisation depends upon the decisions taken by its managers or executives. Decision makil1g is the function of business managers. All the decisions in the organisation irrespective of functions, divisions or departments are concerned with the process of decision making. According to Herbert Simon, "a position cannot be said to be managerial until and unless it is attached to the right of decision making."
Meaning: Decision making is process of selection of one best alternative for achieving a goal or target.
A 'decision' has been defined by various writers as given below:
· According to Me. Farland, "A decision is an ad of choke wherein an executive forms a conc1usion about what must not be done in a given situation. A decision represents· a course of behaviour choosen from a number of possible alternative".
· R.A. Killian defines "a decision, in its simplest form, is a selection of alternatives" .
Decision making: George R. Terry defines making as "a major facilities for of managerial activities" . Franklin G.Moore defines as" decision ma king is a blend of thinking, deciding and acting". Koontz and O. Donnell have subscribed to decision making that "it is' the;' selection from among alternatives of a course of action". Rustom S.Davar, the Indian thinker defines decision making as "the selection based on some criteria of one blast alternative from two or more possible alternatives".
Elements of decision making
· Concepts of a good decision: The decisions should be based on facts and careful analysis of facts and figures.
Favourable environment of the decision: The management should create favourable environment in the orginisation structure for good decisions.
Decision making is a psychological process: The decision making is effected by the psychology of the decision make. The personal attributes like intelligence, educational level, temperament, perceptions and attitudes influence a person while he under goes in the process of decision making.
Time: The right time must be decided to put the decision impractical. The right decision in the right time is more effective.
Communication: The decision should be communicated the concerned people in the organisation with dear, simple, easy and comprehensive outlook.
Employee participation: Employees have to be participate d in the process of decision making so that they are motivated towards the achievement of the goals.
The process of decision making: Peter F. Drucker has said "what ever a manager does, he does through decision making". The process of decision making has been given in different. steps different authors of management. Hebert Simon given the stages, Cundiff & Still described in three while Peter F. Drucker has given five stages of decision making process. The main steps involved in decision making are:
1) To know one's objectives: An objective is an expected outcome of future action. Before deciding L advance, it is necessary to understand what is to be achieved. The better understanding upon the goals, targets and objectives makes planning more effective and the objectives are the criterial by which final outcome are to be measured.
2) Defining the problem: This step involves the better perception of the problem. Before deciding in advance, the problem has to be recognised, and defined dear1y. The right answer can be found only when right question is asked. Similarly the right problem must be identified to have a right decision. CI. Barnard says knowing the right question is winning almost half the battle". A manager should follow the systems approach in diagnosing a problem. He must make a thorough study of all the sub parts of his organisation which are connected with the sub part in which the problem seems to be located.
3) Developing alternative courses of action: After defining the problem, the next step is to find alternative courses of action. The development of alternative s, the concept of limiting factor should be applied. A limiting factor is one which stands in the way of accomplishing a desired objective.
The development of alternatives may be done through use of several sources. Among them three prominent ways are:
· Identifying alternatives through one's own last experience, practices followed by others and using creative techniques.
· Developing alternatives through one' s own past experience, practices followed by others and using creative techniques.
· Generating alternative s is through creative process, where various exercises are taken to gene rate entirely new ideas.
4) Evaluation of alternatives: Evaluation of alternatives means weighing each alternative in terms of its advantages and disadvantages and selecting the best among various alternatives. Evaluation of each alternative will be analysed into tangible and intangible factors. The tangible factors are a) cost per unit, b) investment required c) output to be received, etc. The intangible factors are non-economic factors like a) psychological problem arising out of displacement of persons from the plant b) ecological balance, etc. or determining the impact of such factors, various quantitative techniques have been developed. They are mathematical tools operations research tools and the modern approaches of decision making tools under uncertainty.
5) Selecting the best alternative: In choosing the best alternative, the decision maker can follow three approaches. They are:- a) Experience b) Experimentation c) Research and analysis. .
Though various approaches are avai1able for choosing an alternative, the decision maker's personal values and aspirations will have impact on selection of alternative. Thus the rational process decision making considerably affected by the personal factors. Managers also should take into account the uncertainty of outcome of a decision.
Implementation: The process of decision making actually ends with the choice of the best alternative. However, since decision making is a continuous and on-going process, must ensure that the objectives have been achieved by the choosen alternative. Unless the implementation of decisions is seen, the managers can never understand the effectiveness of a good chosen decision.
Implementation of a decision requires the communication to subordinates, getting acceptance of subordinates over the matters involved in the decision and getting their support for putting the decision into action. The right decision help in effective action.
Questions
1. Define planning and explain the steps involved in the process of planning.
2. What are the types of plans? Describe with examples?
3. What is policy? Explain the types of policies and principles of policy makings?
LESSON 6
ORGANIZING
Organizing is the grouping of the activities and resources for facilitating attainment of organisational objectives. Organising ensures that objectives are achieved in the shortest possible time, in an orderly manner with maximum utilisation of the resources. A manager has to organise like people, material, resources, machine, money and buildings etc. In managing the resources, the powers, authorities and responsibilities, are to be assigned to each position. In this chapter the meaning and principles of organising, the methods of orgarising and the relationships in the organisation are briefly discussed.
Various thinkers and organisation theorists have contributed much on the principles of organising. Simon' s theory of organisation has stated three principles while Koontz and O. Donnel have expanded the principles up to fourteen, Urwick narrates twelve principles and Alford and Beatty have contributed ten principles. Basing on all the above contributions, the principles of organising can be briefly discussed as below:
Unity of objective: An organisation structure is effective if it facilitates the contribution of individuals in the attainment of enterprise objectives.
Specialisation: It is the principle of division of work. The total work is divided in to groups, each group with its own specialised people. The work should be assigned to the right person according to his/her physical as well as psychological capacities.
The Scalar Principle: The scalar principle is dearly denned as the more dear of the lines of authority in an enterprise, the effective communication will be and responsible in decision making". The principle also called as 'scalar chain'. There must be dear definition of roles, duties, responsibilities and authorities in the organisation structure.
The Principles of Authority: Authority is the ability to influence or to cause a person to perform an act. Authority rests in position not in an individual. So, the responsibi1ity and authority of each position should be dearly defined. Authority should commensurate to the responsibility.
Unity of Command: No subordinate can work under two superiors. There should be only one command and one boss to one subordinate. The subordinate should get orders and instructions from only one boss. The unity of command avoids possibility of conflicts in instructions and develops the feeling of personal commitment and responsibility ~or the work.
Span of Control: This principle also known as "Span of management", "Span of supervision" of "Levels of organisation, etc. The number of subordinates that a supervisor can supervise is called "Span of Control". It should be important to see that no executive is required to supervise more subordinates than he can effectively manage and control. Due to time constraint also there is limit on the number of subordinates that a superior can effectively control.
Decreasing the span of control increases the number of levels. This can be shown in following tabular form.
V.A. Graicunas, a management consultant of Paris has made significant contribution. “The span of management theory. He points out that in selecting a span, managers should consider not only the direct one-to-one relationship with their subordinates, but also two other relationships.
They are direct group relations and cross relationships.
The number of direct group relationships can be found out through a formula [2n/2-1]
Where 'n' stands for the number of subordinates. Cross relationships are created when subordinates consult one another. The formula for finding these relationships is n(n-l)
The Graicunas formula to ascertain all the above relationship's can be written as follows:
Number of relationship's= n [2n\2+n-l]
When n stands for the number of subordinates.
The formula shows that no. of relationships increases as the no. of subordinates rises
According to Hamilton, the ideal number of subordinates is 3 to 6.
Delegation: Proper authority should be delegated to the lower level people in the organisation. The delegation should be adequate to enable him to accomp1ish results expected of rum. The authority delegated should be equal to responsibility necessary control and accountability should also be dean to accomplish the task assigned to the delegate.
Simplicity: The organisation structure should be as simple as possible and the organisation levels should as fall as possible be minimum. A large number of levels of organisation means difficulty of effective communication and coordination.
Co-ordination: Co-ordination is the management of interdependence in work situations. It is the orderly synchronization or fitting together of the interdependent efforts of the individual in order to attain a common goal. In other words coordination is to accord things and actions their rightful proportions and to adapt means to ends. Coordination is different from coordination is. Effective coordination can be achieved through direct personal contact, continuity, dear objectives, dynamism, effective communication, clearly defined authorities and responsibilities in the organisation.
Organisation chart: The frame work and pattern of relations among various positions II an organisation and among the people who hold those positions is called in Organisation Chart". The organisation chart outlines the overall structure of the organisation and it is the visual representation of the activities the organisation.
Unity of Direction: There should be one objective and one plan for a group of activities having the same objective. Unity of direction facilitates unification and co-ordination of activities at various levels.
Responsibility: The superior should be held responsible for the acts of his subordinates. Similarly subordinates are also responsible for the performance and accomplishment of the tasks assigned to them. No superior should be allowed to avoid responsibility by delegating authority to his subordinates.
Departmentations or divisionalisation: Departimentalisation or departmentation is also called as divisionalisation refers to the division of the whole enterprise into different groups with a view to facilitate the administration of the enterprise. Easy and simplified appraisal of the efforts is the most important purpose of departmenta1isation.The work and the people are divided into groups and subgroups commonly known as departments or divisions.
Methods of departmantation: Departmentation is done on the basis of several factors such as members, functions, products services, processes, territories or nature of customers and time. The following are the methods of departmentation on the basis of factors mentioned above.
1. Departmentation by number: All the people in the organisation are divided into groups consisting of fixed numbers. EX. Military organisations divides the organisation according to number of soldiers. Now this method is considered as one of the oldest methods. It is now not in use.
2. Departmentation by function: The idea of this method was contributed by webster Robinson and Oliver Sheldon who have said that" functions having identica1 nature should be grouped and absorbed in a single unit with a view to give a well defined direction to the whole group".
The departmentation by function is most1y used in organisations. According to this method the departments are created on the basis of specified functions such as production, marketing, personnel, finance, etc.,
Departmentation by function
Departmentation by product/service: According to this method, Product/Service from the basis to divide the organization into various departments. For example: A furniture manufacturing company divides its organization on the basis of the nature of product it offers to the customers.
a) Domestic futurities departments
b) Office furniture department
c) Schools / Colleges furniture department
d) Professional furniture department
A multinational corporation which is manufacturing a big product line also forms its divisions basing on the products.
d. Young male ready-made garments,
e. Adult female ready-made garments,
f. Adult male ready-made garments
Department by time: In some companies the tasks are performed in shift system. Departrnentation by time is followed in such companies as day shift, night shift, etc. In these companies each shift is organised and developed by the concern departments.
Merits of departmentation: The following are the advantages or merits of departmentation.
1) Increase in efficiency: Well defined goals, objectives, duties and responsibi1ities do help in motivating the workers to put a better performance and get the enterprise pioneer in the industry.
2) Responsibi1ity is clearly defined and fixed. This helps in getting the work completed on time with satisfaction.
3) The managerial performancesis developed through departmentation. The specialisation and standardisation which are outcome s of departmentation, result in the best utilisation talents of the people in the organisation.
4) In departmentation controlling is good. There is possibi1ity of easy appraisal because of dear defined duties, responsibilities and authorities. It is also easy to evaluate the individual as well as group performance in the department.
5) Compared to other methods of organising departmentation is economy oriented. It takes low cost and budgeting help in controlling the finance.
Limitations: Departrnentation is one of the traditional approaches of organising. Departrnentation presents problems at the top management level for coordination. The training in specialised skills for subordinates is also necessary for effective departrnentation.
LESSON 7
CENTRALIZATION VS DECENTRALIZATION
Centralisationand decentralisation are two methods of organising extended of delegation. Delegation refers to downward transfer of responsibility and authority at individual level whereas, the same process is done at organisation level in a systematic way, it is known as decentralisation.
Centralisation is the process where the authority in the organisation is not delegated, but concentrated at higher levels of management.
Decentralisation refers to systematic delegation of authority in an organisation. Henry Fayol says that "Everything that goes to increase the importance of the subordinate' s role in decentralisation, everything which goes to reduce it is centralization”.
No organisation can operate completely on decentralised basis since all authority would concentrate at lower levels and make it difficu1t to achieve coordination.
Louis A. Allen has defined centralisation as fol1ows:
"Centralisation is the systematic and consistent reservation of authority at central points within an organisation. Decentralisation applies to the systematic delegation of authority in an organisation
wide context".
Though delegation and decentralisation are closely related terms, decentralisation is much more comprehensive than delegation. The following are the difference between delegation and decentralisation.
| Delegation | Decentralization |
| 1. Delegation is process | Decentralisation is the end result of delegation and dispersal of authority |
| 2. Refers to the granting of authority and creation of responsibility as between one individual and an other | Exists as result of the systematic delegation of authority throughout the organisation |
| 3. Superior continues to be responsible the work delegated to his subordinates | Superior is relived from his responsibility for the work decentralised and the subordinate becomes liable for that |
| 3.Delegation is vital and essential to the management process | Decentra1isation is optional. It may or not be practised as systematic policy |
Factors determining degree of decentralisation
Some factors effects the extent of authority delegation which are beyond the control of individual managers. In such cases, managers may prefer degree of decentralisation. The factors determining the decentralisation are as fol1ows:
1) Size of the organisation: The larger size of organisation, greater is the need for decentralisation. In a large organisation, when there is no decentralisation, more decisions are to be decided at various places. This process will be quite costly and time consuming. Making the organisations into various units gives speedy decisions, reduces the amount of paperwork and improves the quality of decisions with lesser time and cost.
2) History of the organisation: Decentralisation of authority also depends upon the history and development of organisation on which it is built. Many organisations intend to keep authority centralised especially in case of the owner (founder) of the organisation. Therefore, at least for sometime the acquirers unit enjoy considerab autonomy ii the decentralisation is followed in organisation.
3) Management philosophy: Many top managers before they reached the top level should have not enjoyed authorities. Such managers cannot give up activities and auth6rities simply to their subordinates which is necessary for decentralisation. Top managers may also see decentralisation as a way of organisational life that takes advantages of the innate desire of people to create, to be free, or to have status. Thus the management philosophy of top level managers has considerable influence on the extent to which authority is decentralised.
4) Availability of managers: Decentralisation requires competence and better quality of managers. Because managers should handle the problems of decentralisation effectively and the managers in decentralised structure have higher degree- of autonomy.
5) Pattern of planning: In the organisation, which is having careful planning the chance for decentralisation is high because managers can make decisions within the context of those plans without referring matters under decisions upward . Hence, planning is usually the most important function of management in introducing decentral1sation. Other functions of management such as organising, staffing, directing and controlling are also equally important but all these activities depends on the allocation of planning activities in all levels.
6) Controlling: Higher the degree of development and use of control techniques, better is the success for decentralisation. In the absence of control techniques decentralisation can not work effectively.
7) Change in organisations: When the organisation is fast changing and there is need for expansion, there is more chance that authority will be decentralised. Managers will have to share disproportionate decision making. At this time of problems, delegating authority at lower levels is a must. Thus the rate of change in organisation also affects the degree of decentralisation.
Environmental factors: The environmental influences which are external to the organisation also determine the degree of decentralisation. The Governmental regu1ations over the private business, and the marketing functions throughout the country may influence the managers. Advantages of Decentralisation: The advantages of decentralisation are as follows:
1. Decentralisation reduces the problems of communication. When the size of the organisation increases, the communication in the organisation becomes critical as it is time consuming. Decentralisation helps in developing communication and improves efficiency in the organisations.
2. Managers in the decentralised structure takes quicker and better decisions because they are in touch with the specifics of the situation.
3. Decentra1isation recognises and actually capitalise on the importance of the human element Under decentralisation managers are able to exercise more autonomy. This gives them powers prestige and status. They feel more motiv~te9 and satisfied in their jobs.
4. Decentralisation leads to a competitive climate within the organisation. Each division is a distinct profit centre and this encourages the divisional head to exercise greater initiative since he is being compared with other heads of the other divisions.
5. Decentralisation ensures the development of more capable managers: Managers have to adopt and deal with difficult situations, they are excellently trained for the positions of greater responsibility and authority.
6. Decentralisation facilitates diversification of products, activities and markets. As companies expand and diversify their prc5duction the centra1ised structure proves inefficient and impractical. The products and units need independence in order to be able correspond quickly to the changing demands of the special markets. Thus decentralisation facilitates growth and expansion of the activities and the markets.
Line and Staff relationships: There are two types of authority in most organisations line and Staff. The line mangers are those who are directly involved with basic activities of the organisation i.e. manufacturing process of the organisation. For Example: the functional managers such as production managers, marketing managers are line managers. In line authority a superior exercises direct command over a subordinate. Line authority is represented by a standard chain of command that starts with the board of directors to all the levels in the organisation.
The staff managers are the managers who help and ·advise the line managers in carrying out their activities. The staff managers are specia1ised and people with expertise. Literally the word staff means the stick carried 'in the hand for support. A staff manager has the II authority of ideas'ion1y.The information from staff manager flows upwards to his line superior who decides whether they are to be transformed into action. For example: A market researcher advises marketing manager on demand for new product. An industrial engineer perspires layout plans and production methods for the acceptance of the production manager.
Accounting manager, Personnel manager, Financial manager, etc., are the examples of staff, people.
The highest level of the staff manager is the functiona1 authority. In this, he can give direct orders to people in other departments instead of making recommendations to them. In many companies the personnel manager provides an example: of functional authority. He Ii1ay.have complete control over specific areas such as recruitment and training in all departments of an organisation.
Levels of staff authority
Highest Functional authority
Concurring
Authority
Compulsory Consultation
Lowest Voluntary
Consultation
The conflicts between Line and Staff The line and staff relations in the organisation are always controversial. Each authority has got their own problems and complaints.
The line managers complain the following aspects:
· The staff people encroach upon their most1y theoretical and unhelpful in achieving production goals.
· The advice given by staff people is most1y theoretically and unhelpful in achieving production goals.
· Staff research experimentation is a waste of money. Comparatively line people could accomplish better results with less money.
· When a project is unsuccessful, it is the line people who are blamed and held responsible for its fai1ure but when it is successful, the staff people receive credits
· The people are generally Important head strong. They resist new ideas. They fear that changes in methods may expose forbidden practices and departmental inefficiency. They fear that changes in methods may bring personnel changes which will threaten the break-up of cliques and existing informal arrangements and quite possibly reduce their area of authority.
· Line people distrust, non cooperate and even sabotage staff plans.
· Staff 'has not enough authority to translate its advice into action.
· Line departments receive preferential treatment in matters of staff allowances and other facilities on the basis of their being earning departments.
The measures to the solve the conflicts between Line and Staff The following are the measures to solve the conflict between line and staff people. They are:
(1) Better understanding of the nature of the relationship between line and staff
(2) Line should be educated and encouraged to make maximum use of staff.
(3) Staff should merely transmit, not originate orders
(4) It should ‘sell before tell’ when dealing with line personnel.
The success of an enterprise is dependent upon both the line' and the staff per some. The relationship between the two should be of the professional-client relation types. So that neither party typically exercises authority over the other. However, there is influence in both directions. Thus line and' staff relationships are interdependent and inter infl1iential. The better understanding and compromise between the two authorities makes an organisation more effective and efficient. The conflicts between the two results in cha6s in organisations.
LESSON 8
STAFFING
1. Staffing provide information to management for the internal succession of managerial personnel in the event of an unanticipated personnel in the event of an unanticipated turnover.
2. Finally as sub system of management information a system staffing help s the overall success and growth of the organisation.
The functions of staffing: Staffing is a function of management. It has got other sub functions which help in better managing people in the organization. They are:
1. Manpower planning and
2. Recruitment
3. Selection
4. Training and development
5. Transfers and promotions
6. Performance appraisal
7. Organisation Development
All the sub systems of staffing can be shown in the following figure
| Job enrichment |
| Recruitment |
| Performance |
| Staffing system |
| Transfer & Promotions |
| Recruitment |
| Organization Development |
| Manpower planning |
| Selection |
Recruitment: Recruitment is the process of identifying the sources for productive candidates and to stimulate them to apply for the jobs. It is generating of application for applicants for specific positions. According to Dalton E.Mc. Faland, it is the process of attainting potential employees to the company.
The recruitment is of two types (1) Internal recruitment and (2) External recruitment.
Internal recruitment is don with the people from within the enter through promotions, transfers and hiring from outside.
The external recruitment is processed through use of different methods finding qualified people from outside to the Organisation. The employment agencies, published private provide the services of professional associations, educational institutions, referrals from people with an enterprise, the invided applications from people who are interested in the firm, help in recruiting begins, the positions requirements which should relate directly to the task must be clearly identified. This facilitates recruitment of suitable candidates from the outside.
The information required for recruitment: The information should be provided to the applicants with an objective description of the company and the position for proper recruitment and election. The information should be provided not only by the organisation but also should elicit the appropriate information from the applicant.
The organisation should give a picture of favourable image, stress, opportunities for personal growth and development, highlight potential challenges, promotion possibilities and should also convey information about pay, benefits and job security.
On the other hand, organisation should elicit from the applicants an objective demonstration of their knowledge, skills, abilities, attitudes and their motivation. To obtain this information from the applicants number of techniques and instruments are used. They are tests and interviews.
Interviews - Training for interviews
· Preparation for structured unstructured semi structured and right questions
· Multiple interviews
· The results of various tests are observed
The advantages and disadvantages of recruitment:
INTERNAL RECRUITMENT
The advantages of interna1 recruitment are:
1. Sense of security among the employees
2. Employees remain loyal to the organisation
3. Internal employees do not need induction training
4. Lower level people are encouraged and motivated to elevate to higher positions.
5. Labour turnover is reduced.
6. The relationship between suppliers and customers remain valuable and intact.
7. The employee - employer relations are established.
The disadvantages of interna1 recruitment are:
1. Restricts in choice of selection as it is limited to only within the organisation
2. It encourages nepotism and biased nature.
3. Promotions gets reutilized and there may not be any new ideas which are possible only with new blood and young people
4. In ease of expansion and modernisation of the enterprise, the internal candidates may prove unsuitable for new positions. This may also involve extra expenditure of providing training to them.
EXTERNAL RECRUITMENT
Advantages of external recruitment are
1. The external recruitment helps to bring new candidates with new blood and new ideas with a fresh outlook.
2. The newer generation may exhibit challenging and dynamic nature in accomplishment of goals.
3. The choice of selection is wider. This gives opportunities to select people with rich experience, skills and talents.
Disadvantages of external recruitment: The disadvantages of external recruitments are:
1. The morale of the organization is affected with external recruitment of employees, keeping internal candidates frustrated and discouraged.
2. The employees within the organisation may feel insecure of their positions and become disloya1 to the organisation.
3. There may be greater turnover of labour and
4. There is opportunity for industrial unrest because of deterioration of employee employer relationship in the organisation
SELECTION
Managerial selection is logically choosing among the candidates, the one that best meets the position requirements.
Selection is different from placement and promotion. In the selection, "app1icants are sought to fill a specific requirements" while in the placement II the strengths and weaknesses of the individuals are evaluated position in organisation to a higher position with greater responsibilities and need for more advanced skills than is the previous positions. It usually involves greater status and an increase in pay.
Peter's principle: The peter principle serve as a warning not to take the selection and promotion process easily. This principle cormotes that" managers tend to be promoted to the level of their incompetence.
The selection process: The broad outlines of the process of selection are listed in the following manner.
Systems approach to selection of managers: Selection process has been considered as a systems approach, as selection process is closely related to several variables such as job requirements, job analysis, job descriptions and job specifications. These enterprise needs should be matched with intelligence, knowledge, skills, attitudes and experience of the candidates. The selection must also give due consideration of the internal environment (company policies, supply and demand of managers, organisation climate, etc.,) as well as the external environment (laws, government regulations, availability of managers etc.,)
The newly selected managers carryout their functions resulting to II performance" which determines "enterprise performance. The managers are rewarded based on evaluation. Appraisal may become the basis for "Promotion, demotion, replacement and retirement. The systems model is shown in the following figure:
LESSON 9
LEADERSHIP SKILLS
The Skills Required for a Manager
A manager is the one who gets things done effectively through people and resources. To get the thing as done and achieve success certain skills are necessary for a manager. A skill is an individual' s ability to translate knowledge into action. It is not necessarily inborn. The skill can be developed through practice and through relating learning to one's own personal experience and background. In order to be able to successfully discharge his roles, a manager should possess the following major skills.
Robert LKatz identified the following skills required for managers. They are Technical skills
· Human skills and
· Conceptual skills
· Design skil1s.
1. Technical skills: These skills are the manager's understanding of the nature of job that people under him have to perform. The knowledge and proficiency involved in methods, processes and procedures should be known to a manager. The jobs' also involve working with tools and are superior or managers should have the ability to understand and teach these skills to lower levels. The technical skills and competence seems to be more important at the lower levels of management.
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2. Human skills: Human skills is the ability to deal with the people. This skill develops in the manager sufficient ability.
a) to understand the feelings and sentiments of others;.
b) to judge the possible reactions for various course s of action and
c) to evaluate himself, his concepts and values to develop himself.
In other words, human skills is a co-operative effort. It is teem work and creation of an environment in which people feel secure and free to express their opinions.
3. Conceptual skills: The conceptual skills refer to the ability of a manager to take a broad and far sighted view of the organisation and its future. The skills also shows the ability of a manager to analyse the forces working in a situation, his creative and innovative ability' and his ability to predict the future environment, the organisation and his own job. The skill of conceptual understanding helps the manager to set appropriate goals for his organisation, for himself and his group. The conceptual is more required at the top level management as a manager moves up to higher positions of responsibility, the need for conceptual skill also increases.
4. Design skills: The design skills means the ability to solve problems in beneficial ways to the organisation. In top level management, the managers, before seeing the problem, they must be able to predict the problem and design a solution for that. To do this they must have a skill of a good design engineer in working out a practical solution to a problem. Managers must also have a valuable skill of being able to design a workable solution to the problem in the light of the realities they face. The design skills are required more at the top level management. It is assumed in large companies chief executives can utilize the technical abilities of their subordinates. In smaller firms technical experience may be still important to the top level management.
Coordination: Coordination is the management of inter-dependence in work situations. Coordination is different from cooperation. Seeking willingness of members to work together for certain goals. Coordination is to accord things and actions in a rightful proportion and to adapt means to ends.
Henry Fayol, LA.Allen consider coordination as a separate managerial function. However, coordination has been considered an essential part of directing by several management experts. It has also an important place in the other functions viz. planning, organising and controlling.
Planning - To interrelate the plans of various department Organising - Grouping, assigning of activities, creating departments. Directing -Coordinating efforts of individuals motivation leadership, Controlling - In deviation, to take remedia1 actions coordination is assured.
Requisites for good coordination
Direct contact: Mary parker Follett states that coordination can be more easily achieved by direct personal contact among the responsible people concerned. By direct personal contact, ideas, goals, views can be discussed and mis understandings, if any, can be clarified much more efficiently.
Early start: Coordination can be achieved in the early stages of planning and policy making, while preparing the plan itself, there should be mutual consultation. By this the adjustment and integration in the process of implementation of the plan be comes easier.
Continuity: Coordination is a continuous process and it must go on all the time, starting from the stage of planning. Since coordination is the basis of the organisation structure, it well have to be continued so long as the enterprise functions.
Dynamism: Coordination should be continually modified in the light of changes in the internal and external environments. In other words, coordination should not be rigid.
Clear-cut objectives: Clear objectives are essential for securing effective coordination in an organisation. The functional and departmental managers should be informed and aware of the objectives of the enterprise and prevailed upon to work for the common goal of the enterprise. A clear objective and awareness and education of managers is bound to produce uniformity in action.
Clear authority and Responsibility: Another factor which facilitates coordination is the clarity in the definitions of the darity in authority and responsibility of each individual in the organization. Individuals but also helps in making them carry out their job with unity of purpose. A dear cut authority also helps the manager in holding subordinates responsible for violating the limits.
Effective communication: Effective communication is one of the prerequisites for proper coordination. Through effective communication, action or operations which are contrary to the employees can be directed towards the realization of the stated objective of the enterprise.
Effective Leadership and communication: Success of coordination is largely influenced by the nature of leadership and supervision. Effective leadership ensures coordination of the activities of people body at the planning and the implementation stage. An effective leader creates confidence in his subordinates and also keeps up their morale. In fact, effective leadership is the best method of coordination and no other method can replace it.
Techniques of coordination: There are several coordinating mechanisms that can be used to achieve effective coordination. The following are some important techniques of coordination.
§ Hierarchy
§ Rules, procedures and policies Planning
§ Committees
§ Induction
§ Incentives
§ Liaison departments
§ Work flow
Limitation: According to Mary parker Follett, we cannot integrate or' coordinate the parts of business successfully unless the purpose is; . .clearly defined.
Systems approach: The systems approach to organisation in which all parts of the organisation are woven into a configuration called the organisation system, makes coordination easy.
LESSON 10
COMMUNICATION
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The modern organisation which are complex
and being designed on the basis of specialization and division of labour constitute large size with large number of people. In such case, the effectiveness of organisation depends upon co-ordinated effort through mutual understanding, depends upon co-ordinated effort through mutual understanding, interpersonal relationships and mutual trust. This coordination is .possible on1y through effective communication in the organisation.
Definition of Communication: The word communication has been derived from the Latin word" communist" 'Which can be translated as common. It also translates the meaning of transfer, meaning and information.
The communication can be defined as "The process through which two or the persons come to exchange ideas and understanding among themselves".
Communication according to Koontz and O. Donnel," The transfer of information from one person to another with the information being understood by both the sender and the receiver.
The definition of communication reveals the following important aspects.
· The elements of communication
The sender, the receiver and the channel
The information, message or ideas and
The "understanding” element by the receiver.
Thus communication involves something more than mere transmission of the message. The connect interpretation and understanding of the message is prove important. The correct interpretation and, under standing of the message is more important. The communication is aid to be completes only when the sender receives the response or the receiver that message has been understood properly.
The complete communication with its elements
The elements of communication
1. The sender: The person who intends to make contact with the objective of passing information, ideas to other persons is known as sender.
2. Ideas: This is the subject matter of communication. This might be opinion, attitude, feelings, views, suggestions, orders, etc.
3. Encoding: Since the subject matter of communication is abstract and intangible, its transmission requires the use of certain symbols such as words, actions, pictures, etc. Conversion of the subject matter into these symbols is the process of encoding.
4. Channel: The symbols are transmitted through certain channels. For Example: Radio, telephone, air etc., depending up on the situation of the sender and the receiver.
5. Receiver: The person to whom the message is meant for and sent by the sender.
6. Decoding: Decoding and understanding the message constitute the last two elements in the process of communication from sender to receiver. A successful communication occurs when the receiver decodes the message and attaches a meaning to it which very nearly approximates the idea, thoughts, or information the sender wished to transmit.
Feedback: Response and feedback complete the two way process of communication. It is through the feedback that the source comes to know if his message was received.
The senders efforts to communicate are aimed at eliciting desired response.
Noise: Noise is any disturbs, confuses or otherwise interferes with communication. It can arise at any stage in the communication process. The message get distorted by other sounds in the environment. The receiver may not hear the message.
(No Desired feed back )
The role of communication in other functions of Management: One of the important roles of a manager is informational role where he is involved with various people in the organisation, the superiors, the subordinates, the creditors, the customers, the suppliers and with people who are relating to their jobs and responsibilities. Some of the studies made in USA show that between 40 to 60 percent of the work time in a typical manufacturing plant is involved in some phase of communication. The top and middle level managers typically devote 60 to 80 percent of their total working hours to communicating.
According to Peter F. Drucker, "good communication is the foundation for sound management." The managerial functions of planning, organising, staffing and controlling depend on communication in an organisation.
i) Without a good system -of communication, planning is not possible to be realistic. The future planning should be effectively communicated to marketers. The policies, objectives, decisions made are all depending on the effective communication through which the people in the organisation understands them properly and work for the achievement of objectives.
ii) The communication is also necessary for effective organising. A dear definition of roles, authorities and responsibilities are required for good organisation structure. The communication enables the charity in the definition of the organisation structure. Communication is also necessary for good delegation and decentralization of authority. The relationship between the and staff people also depends on effective communication. Some times the conflicts arise between line and staff due to some psychological barriers in communication.
iii) Communication is part of performing the functions of staffing such as recruitment, selection, training and promotions. For conducting the tests, oral interviews and to provide training communication takes key role.
iv) Establishment of standards of performance in the key role of controlling. Without understanding the standards people can not perform the work effectively. A good communication system provides better understanding of the objectives of the organisation, standards of performance and finding out deviations.
Planning
The mission Objectives, goals Policies
Estimation of future sales, etc.
Organising
| Communication |
Decentralisation
Line & Staff relationship
Staffing
Recruitment Selection Training Promotions
Controlling
Establishment of standards Measurement of performance Correcting deviations
Besides all these functions, communication is a sub-function of directing. To exercise leadership, to make decisions, to put efforts for coordination, to identify needs and motivate people towards desired objectives effective communication system is necessary. The success of a manager depend upon how effectively he can communicate with others in the organisation, how successfully he can use communication in all his functions to perform.
LESSON 11
CONTROLLING
The process of management involves the functions of management viz. planning, organising, staffing, directing and controlling. So far in the previous chapters planning, organising, staffing and directing have been discussed. Controlling is the last function of management.
| Planning Organising Staffing Directing Controlling |
Management
Process
All Organisations, business or non business, face the necessity of managing with problems of control. The purpose of controlling is to maximise the use of scarce resources and to achieve efficiency of organisation members. Planning state, managers decide how the resources would be utilised to achieve organisational objectives. While in controlling, managers true to visualise whether resources are utilised in the same way as in planning decided. Thus planning is looking forward, while controlling is looking back. Thus control completes the whole sequence of management process.
Controlling involves identification of actual results, comparison of actual results with expected results as set by planning functions. Identification of deviation between the two if any, and taking of corrective action so that actual results match with expected results. It brings to light all bottlenecks in work performance and operates as straight pointer to the needs of the situation.
Definition of controlling: Control is any process that guides activity towards some predetermined goals.
Control as an element of a management process can be defined as the "process of analysing whether actions are being taken as planned and taking corrective actions to make these to conform to planning".
According to Ferry "controlling is determining, what is being accomplished that is evaluation the performance and if necessary, applying corrected measures so that the performance takes place according to plan".
The Important features of controlling:
1. Control is not only looking back but forward looking because one can control future happenings and not the past. However, control future happenings and not the past performance because the future performance cannot be measured. Hence, corrective actions for future performance is suggested.
2. Controlling involves the following main steps.
a. Periodic review and measurement of the past performance
b. Checking and correcting of deviations, if any in the performance.
c. Controlling is both an executive process and a resile in the organisations of the systems point of view.
d. Controlling is a continuous process. If follows a definite pattern and time table periodically on a continuous basis.
e. Controlling is a co-ordinated integrated system. Though it is a single system, it is a set of inter-looking subsystems.
Importance of controlling: All organisations try to achieve their objectives to the maximum extent possible. However, the organisations must also monitor whether their actions are leading to alignment of objectives or not. Contr01ling takes initiative to integrate the actions of the people in the organisation and it also offers help in several directions. Some of the aspects of controlling are discussed below.
1. Modifications in operations: A control system checks and modifies the behaviour of operations. Objective alignment is not the only function to be performed in an organisation, but it constantly has to watch the performance being made by all the other functions also. Controlling helps to find out whether plans are being observed and suitable progress towards the objectives is being made and acting ii necessary to correct any deviation.
2. Verification of policies: The policies in the organisation generate the need for control. The policies made by top management as a part of plaI1I'ing become the basis and reason for control They become basis in the sense that organisational performance is reviewed in these lights. Though policies an organisation tries that its various individuals adhere to such framework. In this process, the organisation and its management can verify the quality of various policies.
3. Responsibility: Control is required because of the existence of responsibility at all levels of the organisation. A subordinate is responsible for his/her performance of assigned task. A boss or superior or a manager is responsible for the performance of his/ her subordinates. To be responsible in the organisation one should exercise control. Thus the control is required because of the very basic nature of the organisation itself. Control t10ws through the organisation from top level to bottom level. However, the nature of control may be different.
4. Psychological pressure: Controlling measures the performance of individuals and checks the deviations. Hence, it puts a psychological pressure on the individuals for better performance. The performance of individuals is evaluated in the light of targets set for them. A person is likely to put better performance if he is aware that his performance will be evaluated. He may feel pressure to achieve the results according to the standards fixed for him. His is further complimented by the reward and punishment based on the performance. Thus controlling ensures the contribution of every member to the organisation.
5. Control is a coordinating activity: Control systems are designed in such away that the\ focus not only on the operating responsibility of a manager but also on his ultimate responsibility. This forces a manager to co-ordinate the activities of his subordinates in such away that each of them contributes positively towards the objectives of the superior. If this is followed throughout the organisation coordination occurs.
6. Efficiency and effectiveness is ensured: Proper controlling ensures organisational efficiency and effectiveness. The factors like responsibility motivation for higher performance, and coordination makes control to ensure that organisation works efficiently. The organisations also moves towards effectiveness because of control system Since control focuses on achievement of organisational objectives control also leads to organisational effectiveness with proper achievement of organisational objectives.
LESSON 12
DEVELOPMENT OF TEMPLE MANAGEMENT
The administration of temples and other Hindu institutions were considered as a religions duty of the ancient kings, who mostly built an maintained them. Even under the Mohmadan Rulers, the state had control over temples. Under the Hindu Rule, the kings exercises through their officers direct control over all religions institutions and endourments. The supervision of temple management was recognized in every native to be are of the essential functions of government. Many of those institutions had been forwarded and endoured by their ancestors, and several of them continued to secure periodical pecuniary contribution from the states.
The Hindu rules inferred in the administration of the temples whenever it was found that the managers misused their position. During that periods when religions intolerance was very worst, the Mohmadan Rules of India made provision against the determination or decay of Hindu Temples by neglet or mismanagement.
After the east Indian company assumed severing powers had taken several steps to maintain the Hindu Temples. The British Rules was found that the income of many endowrments was mis-spent and misappropriated by the persons incharge of the same and the British rules asserted the right of supervision over the endoured properties. M 1765.
Crount constituted committee under the leadership of charter. After are year the charter. After are year the charter committee had submitted a report to the government. His recommendations was celled by charter acts.
British rules began to exercise legislative power under the regulation of the covernor General’s council with regard to temitories in Bengal, Madras and Bombay. The control over the management of Hindu temples, religions trust and endowments were continued to be functioned. Then after Govt. established the reground offices at the Bombay in 1810, at Bengal in 1817 and Madras in 1827 respectively.
After 1839 the Hindu and Muslim missionaries jointly agitated against Christian government should not administrate Hindu endourments and Mohmadam morgues. So the Govt. gradually with drawn the its management. The general principal that was laid down in with drawing the inference of government and its officers in the administration of religions institutions and endowments belonging thereto. On the 12th June 1841. The Tamil Nadu government issued instructions to the Board of Revenue in accordance with the above principles. In 1843, it was uparted to the government of India that the total withdrawal of al interference on the part of government with native religions institutions throughout the Madras Presidering, in their internal administration and in the expenditure of the revenue and also in the appointment of officers had been accomplished, but without any change as to the management of lands belonging to such institutions which were under the charge of government officers.
By 1862, government several all is connection with the management of Hindu temples. This change of policy led to the cessation of that control which has hill then worked with beneficial results, to the religions endowments.
Between the years 1842 and 1863 no supervision of any kind was exercised over the management of Hindu – Temples. As a results of this relinquishment of control and due to the inadequacy of checks provided by general law, in the absence of an active supervising agency, gross mismanagement and misappropriation of temple funds became rampart. The evil grow from had to worse until it come to a crisis about the gear 1960 and 1961.
By the Act xx of 1863, Local committees were appointed to exercise supervision of such Hindu Temples. Act 1863, while it gave effect to the management of Hindu temples, made no provision for the exercise of any supervision over a large and important class of temples in whose case the thrusters, though not originally heritary, came to be treated as hereditary trustees often 1863, as through the temples had been under the management of the heritary trustees from the very commencements. There were also had many defects, which contributed to the inefficient walking or the Act of 1863.
There were several attempts made from time to time for the removal or the principal defects in the working of religion empowerment act 1863. The government concerned with this view and appointed in the year 1875 a committee was contributed under the headings of Sir William Robinson, to draw up a fresh Bill, which would place matters on a proper footing without throwing the responsibility of the management of religions institutions on the comment. The bill submitted by the committee proposed.
1. The abolition of the local committees.
2. the centralisation of authority in statuary board to the established in the town of madras and
3. The inclurian under the jurisdiction of this board of endourments made centuries age and managed by the foundaries descantants and which new came under the control of ratine government and were excerpted from Act xx of 1863.
This bill was forwarded in due to the government of India and the secretary or stat for India. The subject was taken up by Mr. Carmichael, a member of the council, who in 1883 drafted a Bill deferent in many respects from Mr. Robinson’s Bill of 1875.
Mr. Carmichael hill aimed at the substation of district boards constituted under the boards constituted under the local boards Act in the place of the central board in the town of Madras and favoured exemption from all control of religions endowments under the management of hereditary trustees.
In 1894 another committee was constituted to consider the same subject with Mr. Muthusamy Ayyar as a president. This committee prepared a Bill which was submitted to the government of India. But it was returned to the father consideration of local governments.
Mr. P. Chentsal Rao’s committee was appointed in 1898 to wiring the Bill submitted by Mr. Muthusamy Iyar. This committee submitted a report but further act in was not pused.
In 1904 the Honi’ble Mr. Ananthachandru submitted a Bill for the better management of Hindu Endourments. After many lills were amended., The act of 1925 came into force immediately. Under this act, a statutory Board called the Hindu Religions Endowments Board was constituted, with four commissioners and a president of the board nominated by government and the system of supervision and control over temple and methods was put into force.
Question
1. State and explain the development of temple management
2. What in H.R & CE Board? Explain.
Reference
1. Shynmed Baneijee - Principles and practices
of management
2. Nair. N.C - Management systems
3. Tamilnadu Hindu Religions and chair table endowments Act XXII of - 1959.
4. Srinivasan. K.R. – Temples of South India,
New Delhi – 1971.
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