Principles of Management Projects & Notes. Know/define what is Principle of Management. R. Sivarethinamohan and P. Aranganathan, “Principles of Management”, 1st Edition, . published a book on “the principles of scientific management” in M.B.A with Diploma in Entrepreneur Development (CBCS Pattern) .. " management is the art of applying the economic principles that underlie the control .. Study in Personality and Innovation (Cambridge: MIT Press, ), notes that he did.
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Concept based notes. Principles and Practices of Management. MBA-(I Sem). Navleen Kaur. Richa Khunteta. MBA faculty (BISMA). Biyani Institute of Science. Function of Managers Evolution of Management Management definedPerceptive of Managers:There are many definitions of Authority Principles of-management-lecture-notes-for-mba ayofoto.info conceptual understanding of the management principles and techniques have to words, one need not necessarily possess M.B.A or any other management.
Unity of Command 7. Directing is that part of management process which actuates the members of an organization to work efficiently and effectively for the attainment of organizational goals. Clarifying Organisational roles 3. Taylor and Henry Fayol are generally regarded as the founders of scientificmanagement and administrative management and both provided the bases for scienceand art of management. Conceptual skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world.
Complete definition of management: Entity identity Management is a distinct process consisting of Planning Organizing Staffing Leading Controlling Applied to Efforts of a group of people to utilize effective available recourses Man Money Material Method Machine In order to achieve predetermined objectives of an organizationNecessity of Management: Manager is also known as leader and administrative, Manager is a person who undertake the tasks and function of managing at any level, in any kind of enterprise.
Managerial Skills: There are four skills of managers are expected to have ability of: Technical skills that reflect both an understanding of and a proficiency in a specialized field. For example, a manager may have technical skills in accounting, finance, engineering, manufacturing, or computer science. Human Skills: Concept Skills: Conceptual skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world.
Conceptual skills, coupled with technical skills, human skills and knowledge base, are important ingredients in organizational performance.
Design Skills: It is the ability to solve the problems in ways that will benefit the enterprise. Managers must be able to solve the problems. The Skills vary at different levels: Top management Concept and design Skills. Middle Human Skills. Skills of management at different levels. The Function of Managers: There are five functions of managers: Planning, Organizing, Staffing, Leading, and Controlling.
The functions of managers provide a useful structure for organizing managementknowledge. Planning involves selecting missions and objectives and the action to achieve them itrequires decision making, that choosing future courses of action from amongalternatives.
There are five types of planning: Missions and objectives. Strategies and polices. Procedures and rules. The purpose of an organization structureis to creating an environment helpful for human performance.
It is then managementtools and not an end. Although the structure must define the task to be done, the rulesso established must also be designed in the light of the abilities and motivations of thepeople available designing an effective organization structure is not an easymanagerial task. Many problems arises in making structures fit situations.
This isdone by identifying the work force requirement inventorying the people available andrecruiting, selecting, placing, promoting, appraising, planning the careers,compensating and training. All managers would agree that most problems arises from peoples desires and 9. Leading involves motivation, leadership styles and approaches and communications.
Controlling is measuring and correcting individuals and organizational performance. It involves measuring performance against goals and plans, showing where thedeviations from standards exit and helping to correct them. In short controllingfacilitates the accomplishment of plans. Controll activity generally relate to themeasurement of achievement. Some means of controlling like the budget forexpenses, inspection, record of labors-hours lost, are generally familiar.
Each showswhether plans are working out. History reveals that strong men organized the masses into groups accordingto their intelligence, physical and mental capabilities. Evidence of the use of the wellrecognized principles of management is to be found in the organization of public lifein ancient Greece, the organization of the Roman Catholic Church and theorganization of military forces. Thus management in some form or the other has beenpracticed in the various parts of the world since the dawn of civilization.
With the onset of Industrial Revolution, however, the position underwent a radical change. Thestructure of industry became extremely complex. At this stage, the development of aformal theory of management became absolutely necessary. It was against thisbackground that the pioneers of modern management thought laid the foundations ofmodern management theory and practice.
Different Author says that history of management is different Author contribute inmanagement. There are so many theories of management that why also called Jungleof management. Different period of management: Scientific Management: Operational Management i Henri Fayol. Behavioral Science: System Theory. Drucker Taylor and Henry Fayol are generally regarded as the founders of scientificmanagement and administrative management and both provided the bases for scienceand art of management.
Features of Scientific Management: It was closely associated with the industrial revolution and the rise of large-scaleenterprise.
Classical organization and management theory is based on contributions from anumber of sources. They are scientific management, Administrative managementtheory, bureaucratic model, and micro-economics and public administration. Management thought focused on job content division of labour, standardization,simplification and specialization and scientific approach towards organization.
Started as an apprentice machinist in Philadelphia, USA. He rose to be the chief engineer at the Midvale Engineering Works and later on served with the Bethlehem Works where he experimented with his ideas and made the contribution to the management theory for which he is so well known.
Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis theneed for adopting a scientific approach to the task of managing an enterprise. He triedto diagnose the causes of low efficiency in industry and came to the conclusion thatmuch of waste and inefficiency is due to the lack of order and system in the methodsof management.
He found that the management was usually ignorant of the amount ofwork that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirkedwork.
He therefore, suggested that those responsible for management should adopt ascientific approach in their work, and make use of "scientific method" for achievinghigher efficiency. The scientific method consists essentially of a Observation b Measurement c Experimentation and d Inference.
He advocated a thorough planning of the job by the management and emphasized thenecessity of perfect understanding and co-operation between the management and theworkers both for the enlargement of profits and the use of scientific investigation andknowledge in industrial work. He summed up his approach in these words: Elements of Scientific Management: The techniques which Taylor regarded as itsessential elements or features may be classified as under: Scientific Task and Rate-setting, work improvement, etc.
Planning the Task. Vocational Selection and Training4. Standardization of working conditions, material equipment etc. Mental Revolution. Scientific Task and Rate-Setting work study: Work study may be defined as thesystematic, objective and critical examination of all the factors governing theoperational efficiency of any specified activity in order to effect improvement.
Work study includes. The management should try to ensure that the plant is laid out in the best manner and is equipped with the best tools and machinery.
The possibilities of eliminating or combining certain operations may be studied. It is a study of the movement, of an operator or even of a machine in performing an operation with the purpose of eliminating useless motions. The basic purpose of time study is to determine the proper time for performing the operation.
Such study may be conducted after the motion study. Both time study and motion study help in determining the best method of doing a job and the standard time allowed for it.
If, a standard task is set without providing for measures to eliminate fatigue, it may either be beyond the workers or the workers may over strain themselves to attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses at scientifically determined intervals.
Taylor recommended the differential piece wage system, under which workers performing the standard task within prescribed time are paid a much higher rate per unit than inefficient workers who are not able to come up to the standard set.
Planning the Task: Having set the task which an average worker must strive to perform to get wages at the higher piece-rate, necessary steps have to be taken to - 12 - Selection and Training: Scientific Management requires a radical change in the methods and procedures of selecting workers. It is therefore necessary to entrust the task of selection to a central personnel department.
The procedure of selection will also have to be systematized. Proper attention has also to be devoted to the training of the workers in the correct methods of work. Standardization may be introduced in respect of the following. By standardization is meant the process of bringing about uniformity. The management must select and store standard tools and implements which will be nearly the best or the best of their kind.
There is usually an optimum speed for every machine. If it is exceeded, it is likely to result in damage to machinery. To attain standard performance, the maintenance of standard conditions of ventilation, heating, cooling, humidity, floor space, safety etc.
The efficiency of a worker depends on the quality of materials and the method of handling materials. Scientific management will not be complete without the introduction of specialization. Under this plan, the two functions of planning and doing are separated in the organization of the plant. Taylor suggested eight functional foremen under his scheme of functional foremanship.
To lay down the sequence of operations and instruct the workers concerned about it. To prepare detailed instructions regarding different aspects of work. To send all information relating to their pay to the workers and to secure proper returns of work from them.
To deal with cases of breach of discipline and absenteeism. To assemble and set up tools and machines and to teach the workers to make all their personal motions in the quickest and best way.
To ensure that machines are run at their best speeds and proper tools are used by the workers. To ensure that each worker keeps his machine in good order and maintains cleanliness around him and his machines. To show to the worker how to do the work. Mental Revolution: At present, industry is divided into two groups — managementand labour. The major problem between these two groups is the division of surplus. The management wants the maximum possible share of the surplus as profit; theworkers want, as large share in the form of wages.
Taylor has in mind the enormousgain that arises from higher productivity. Such gains can be shared both by themanagement and workers in the form of increased profits and increased wages. Benefits of Scientific Management: Taylors ideas, research and recommendations brought into focus technological,human and organizational issues in industrial management.
Benefits of Taylors scientific management included wider scope for specialization,accurate planning, timely delivery, standardized methods, better quality, lesser costs,minimum wastage of materials, time and energy and cordial relations betweenmanagement and workers.
According to Gilbreths, the main benefits of scientificmanagement are "conservation and savings, making an adequate use of every onesenergy of any type that is expended". The benefits of scientific management are: Replacement of traditional rule of thumb method by scientific techniques.
Proper selection and training of workers. Incentive wages to the workers for higher production. Elimination of wastes and rationalization of system of control. Standardization of tools, equipment, materials and work methods. Detailed instructions and constant guidance of the workers. Establishment of harmonious relationship between the workers. Better utilization of various resources. Satisfaction of the needs of the customers by providing higher quality products at lower prices. Workers Criticism: Scientific Management is only a device to speed up the workers without much regard for their health and well-being.
Scientific Management reduces workers to automatic machine by taking away from them the function of thinking.
By separating the function of planning and thinking from that of doing, Scientific Management reduces work to mere routine. Scientific Management creates unemployment and hits the workers hard. Under Scientific Management, the important issues of wages and working conditions are decided by the management through scientific investigation and the trade unions may have little say in the matter.
Scientific Management improves productivity through the agency of workers and yet they are given a very small share of the benefit of such improvement. Employers Criticism: It requires too heavy an investment.
The employer has to meet the extra cost of the planning department though the foreman in this department do not work in the workshop and directly contribute towards higher production.
The introduction of Scientific Management requires a virtual reorganization of the whole set-up of the industrial unit. Work may have to be suspended to complete such re-organization.
L Gantt was born in He graduated from John Hopkins College. For some time, he worked as a draftsman in an iron foundry. In , he qualified as a mechanical engineer at Stevens Institute.
In , he joined the Midvale Steel Company. Soon, he became anassistant to F. W Taylor. He worked with Taylor from - at Midvale SteelCompany. He did much consulting work on scientific selection of workers and thedevelopment of incentive bonus systems. He emphasized the need for developing amutuality of interest between management and labour. Gantt made four importantcontributions to the concepts of management: Gantt chart to compare actual to planned performance.
Gantt chart was a daily chart which graphically presented the process of work by showing machine operations, man hour performance, deliveries, effected and the work in arrears.
This chart was intended to facilitate day-to-day production planning. Task-and-bonus plan for remunerating workers indicating a more humanitarian approach.
This plan was aimed at providing extra wages for extra work besides guarantee of minimum wages. Under this system of wage payment, if a worker completes the work laid out for him, he is paid a definite bonus in addition to his daily minimum wages. On the other hand, if a worker does not complete his work, he is paid only his daily minimum wages. There was a provision for giving bonus to supervisors, if workers under him were able to earn such bonus by extra work. Psychology of employee relations indicating management responsibility to teach and train workers.
In his paper "Training Workmen in Habits of Industry andCooperation", Gantt pleaded for a policy of preaching and teaching workmen to do their work in the process evolved through pre-thinking of management.
Gantt laid great emphasis on leadership. He considered management as leadership function. He laid stress on the importance of acceptable leadership as the primary element in the success of any business. Gantts contributions were more in the nature of refinements rather than fundamental concepts. They made scientific management more humanized and meaningful to devotees of Taylor.
A, - The ideas of Taylor were also strongly supported and developed by the famous husband and wife team of Frank and Lillian Gilbreth. They became interested in wasted motions in work.
After meeting Taylor, they combined their ideas with Taylors to put scientific management into effect. They made pioneering effort in thefield of motion study and laid the entire foundation of our modern applications of jobsimplification, meaningful work standards and incentive wage plans.
Gilbrethhad a unique background in psychology and management and the couple couldembark on a quest for better work methods. FrankGilbreth is regarded as the father of motion study. He is responsible for inculcating inthe minds of managers the questioning frame of mind and the search for a better wayof doing things.
Gilbreths contributions to management thought are quite considerable. His maincontributions are: The best way can be found out by the elimination of inefficient and wasteful motions involved in the work. The part of a workers time should be spent in teaching the man below him and learning from the man above him. This would help him qualify for promotion and help to provide a successor to his current job.
He laid down how workers should stand, how his hands should move and so on. The Father of modern operational theory. Perhaps the real father of modern management theory is the French industrialist Henri Fayol. This monograph, reprinted in French several times, was not translatedinto English until No English translation was made or published in the US until Industrial Activities: Fayol found that industrial activates could be divided into six groups as shown infigure.
Technical Production 2. Commercial buying, Selling and exchanging. Financial Search for, and optimum use of capital. Security Protection of property and persons. Accounting including Statistics.
Managerial Planning, organization, command, contribution and control. Henri Fayol pointed out that these activities exist in every size of business. Fayolobserved that first five were well known and he devoted most of his book to ananalysis of the sixth.
General Principles of Management: Fayol listed Fourteen Principles based on experience. He noting thatPrinciples of management are flexible, not absolute and must be usable regard less ofchanging and special conditions.
Some kinds of Principles appeared to beindispensable in every undertaking.
Division of Work: Authority and responsibility: Henri Fayol finds authority and responsibility to be related with the latter arising from the former. Fayol declares that discipline requires good superiors at all levels. Unity of Command: This means that employees should receive order from one superior only. Unity Of Direction: According to this principal, each group of activities with same objective must have one head and one plan.
Subordination of individuals to general interest: When the two are found to differ, management must reconcile them. Remuneration and method of payment should b fair and have maximum possible satisfaction to employees and employer. Scalar Chain: This is essential principle in arrangement of things and people in an organization.
Loyalty and devotion should be elected from personnel on biases of kindliness and justice, when dealing with subordinate. Stability of tenure: In bad management, Fayol points out id dangers and costs. Initiative is execution of a plan. Esprit decrops: This is the principle that in the union there is strength. This principle emphasis on work, Unity of communication.
In order to accomplishment of objective. Element of Management: Fayol said the element of management is its functions. Planning, Organizing, Staffing, Leading, and controlling. He point out that the principles of management can apply not only to business but also to practical, religious, military and other understanding.
The behavioral management theory is often called the human relations movement becauseit addresses the human dimension of work. Behavioral theorists believed that a betterunderstanding of human behavior at work, such as motivation, conflict, expectations, andgroup dynamics, improved productivity.
The theorists who contributed to this school viewed employees as individuals, resources, andassets to be developed and worked with — not as machines, as in the past. Severalindividuals and experiments contributed to this theory. George Elton Mayo Australia, - Elton Mayo was born in Australia. He was educated in Logic and Philosophy at St. Peters College, Adelaide. He led a team of researchers from Harvard University, which carried out investigation in human problems. The Hawthorne experiments consisted of twostudies conducted at the Hawthorne Works of the Western Electric Company inChicago from to The first study was conducted by a group of engineersseeking to determine the relationship of lighting levels to worker productivity.
Surprisingly enough, they discovered that worker productivity increased as thelighting levels decreased — that is, until the employees were unable to see what theywere doing, after which performance naturally declined. A few years later, a second group of experiments began. Harvard researchers Mayoand F. Roethlisberger supervised a group of five women in a bank wiring room.
They gave the women special privileges, such as the right to leave their workstationswithout permission, take rest periods, enjoy free lunches, and have variations in paylevels and workdays. This experiment also resulted in significantly increased rates ofproductivity. In this case, Mayo and Roethlisberger concluded that the increase in productivityresulted from the supervisory arrangement rather than the changes in lighting or otherassociated worker benefits.
Because the experimenters became the primarysupervisors of the employees, the intense interest they displayed for the workers wasthe basis for the increased motivation and resulting productivity. Essentially, theexperimenters became a part of the study and influenced its outcome. The general conclusion from the Hawthorne studies was that human relations and thesocial needs of workers are crucial aspects of business management.
This principle ofhuman motivation helped revolutionize theories and practices of management. Max Weber Theory of bureaucracy: He believed that organizations should be managed impersonally and that a formal organizational structure, where specific rules were followed, was important.
This nopersonal, objective form of organization was called a bureaucracy. Weber believed that all bureaucracies have the following characteristics: All positions within a bureaucracy are structured in a way that permits the higher positions to supervise and control the lower positions. This clear chain of command facilitates control and order throughout the organization. All responsibilities in an organization are specialized so that each employee has the necessary expertise to do a particular task.
Standard operating procedures govern all organizational activities to provide certainty and facilitate coordination. Managers should maintain an impersonal relationship with employees so that favoritism and personal prejudice do not influence decisions.
A bureaucracy needs to maintain complete files regarding all its activities. System Approach: The systems approach to management indicates the fourth major theory ofmanagement thought called modern theory.
Modern theory considers an organizationas an adaptive system which has to adjust to changes in its environment. Anorganization is now defined as a structured process in which individuals interact forattaining objectives. Meaning of "System": The word system is derived from the Greek word meaning tobring together or to combine.
A system is a set of interconnected and inter-relatedelements or component parts to achieve certain goals. A system has three significantparts: Every system is goal-oriented and it must have a purpose or objective to be attained. In designing the system we must establish the necessary arrangement of components. Inputs of information, material and energy are allocated for processing as per plan so that the outputs can achieve the objective of the system.
The Design of a basic system - 23 - Chester Barnard — He president of New Jersey Bell Telephone Company, introduced the idea of the informal organization —cliques exclusive groups of people that naturally form within a company.
He felt that these informal organizations provided necessary and vital communication functions for the overall organization and that they could help the organizationaccomplish its goals. Barnard felt that it was particularly important for managers todevelop a sense of common purpose where a willingness to cooperate is stronglyencouraged. He is credited with developing the acceptance theory of management,which emphasizes the willingness of employees to accept that mangers havelegitimate authority to act.
Barnard felt that four factors affected the willingness ofemployees to accept authority: Peter Ferdinand Drucker November 19, —November 11, His writings have predicted many of the major developments of the late twentiethcentury, including privatization and decentralization; the rise of Japan to economicworld power; the decisive importance of marketing; and the emergence of theinformation society with its necessity of lifelong learning.
Basic ideas: Drucker discounted the command and control model and asserted that companies work best when they are decentralized. According to Drucker, corporations tend to produce too many products, hire employees they dont need when a better solution would be outsourcing , and expand into economic sectors that they should avoid. Drucker believed that employees are assets and not liabilities. He taught that knowledge workers are the essential ingredients of the modern economy.
Central to this philosophy is the view that people are an organizations most valuable resource and that a managers job is to prepare and free people to perform. This concept of management by objectives forms the keynote of his landmark "The Practice of Management". Profit is not the primary goal, but rather an essential condition for the companys continued existence.
William Edwards Deming October 14, — December 20, He was an American statistician, professor, author, lecturer, and consultant. Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan.
There, from onward he taught top management how to improve design and thus service , product quality, testing and sales the last through global markets through various methods, including the application of statistical methods.
Deming made a significant contribution to Japans later-renown-for innovative high-quality products and its economic power. He is regarded as having had more impactupon Japanese manufacturing and business than any other individual not of Japaneseheritage.
Despite being considered something of a hero in Japan, he was onlybeginning to win widespread recognition in the U. Deming philosophy synopsis: The philosophy of W. Edwards Deming has been summarized as follows: Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs by reducing waste, rework, staff attrition and litigation while increasing customer loyalty.
The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces. Demings philosophy was summarized by some of his Japaneseproponents with the following a-versus-b comparison: Demings 14 points: Deming offered fourteen key principles for management for transforming businesseffectiveness.
The points were first presented in his book Out of the Crisis. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs.
Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. End the practice of awarding business on the basis of price tag.
Instead, minimize total cost. Operation Manual — describes the established standards, procedures and methods for various jobs. Department Practice Manual — detailed information about the Organisation 5. Departmentation - As the process of grouping individual jobs in department. It involves grouping of activities and employees into departments so as to facilitate the accomplishment of Organisation Objectives. Specialisation 2. Expansion 3.
Autonomy 4. Fixation of responsibility 5. Appraisal 6. Management development 7. Administrative control Choosing a basis for Departmentation 1. Coordination 3. Control 4. Economy 5. Attention 43 Human Consideration Basis of Departmentation 1.
Departmentation by Functional Basis — Grouping of activities in accordance with the function of an enterprise. Each major function of the enterprise is grouped into a department.
Departmentation by Territorial basis — A company may have separate departments to serve the southern region, northern region etc. It has the advantage of the intimate knowledge of local conditions.
Many routine and service functions performed by all the regional units can be performed centrally b the head office very economically 44 Departmentation by Process basis — is done on the basis of several discrete stages in the process or technologies involved in the manufacture of a product. A cotton textile mill have separate departments for ginning, spinning, weaving, dyeing and printing and packing and sales. This increases efficiency. Departmentation by Product basis — suited for a large organization manufacturing a variety of products.
For each major product a semi- autonomous department is created and is put under the charge of a manager who may also be made responsible for producing a profit of a given magnitude. Product dept is the logical pattern to follow when each product requires raw materials, manufacturing, technology and marketing methods and that are markedly different from those used by other products in the Organisation.
Eg HLL manufacturing detergents, toiletries, Clearasil cream and soap. Demerits 45 Departmentation by Customer basis — An enterprise may be divided into a number of departments on the basis of the customers that it services. For Eg. An educational institution may have separate departments for day, evening and correspondence course to impart education to full time students, locally employed students and autstation students respectively.
Bases of Power 1. Legitimate 2. Expertness 3. Referrant 4. Reward 5. It denotes certain rights to take decision and get them executed by their subordinates.
Difference between Line and Staff Authority S. No Line Authority Staff Authority 1 Right to decide and command Right to provide advice, assistance and information 2 Contributes directly to the accomplishment of Organisational objectives Assist line in the effective accomplishment of Organisation objectives 3 Relatively unlimited and general Relatively restricted to a particular function 4 Flow downward from a superior to subordinate May flow in any direction depending upon the need of advice 5 Creates superior and subordinate relation Extension of line and support line 6 Exercise control Investigates and reports 7 Makes operating decision Provides idea for decision 8 Bears final responsibility for Does not bear final responsibility 47 The personnel manager may lay down the grievances procedure to be followed in all departments - granted to a staff specialist to issue instruction to line executives directly in a specific and limited area of operation.
Delegation of authority - To delegate means to entrust authority to a subordinate - Assigns some part of his work to his subordinate and also gives the necessary authority to make decision within the area of their assigned duties Def. General or Specific 2. Formal or Informal 3. Written or oral 4. Downward and sideward Process of Delegation 1.
Determination of results expected 2. Assignment of duties 3. Granting of authority 4. Accountability — is the obligation to carry out responsibility and exercise authority in terms of performance standard established by the superior - Once a subordinate is assigned a duty and given the necessary authority to complete it, he becomes answerable for the results. Thus accountability is a derivative of responsibility. Principles of Delegation 1.
Delegation to conform to desired objectives 2. Responsibility not delegatable 3. Authority to match duties 4.
Unity of command 5. Limits to authority to well-defined Merits 1. Basis of effective functioning 2. Reduction in managerial load 3. Benefits of specialized service 4. Efficient running of branches 5.
Aid to employee development 6. Aid to expansion and diversification of business Effective Delegation 1. Define assignments and delegate authority in the light of results expected 2. Select the person in the light of the job 3.
Maintain open lines communication 4. Establish proper control 5. Reward effective and successful assumption of authority Staffing - Filling and keeping filled, positions in the Organisation structure. Functions of Staffing 1.
Procurement — Job analysis 49 Human Relations - is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. Purpose and Importance 1. Increasing size of Organisation 2.
Advancement of technology 3. Long range needs of manpower 4. High wage bill 5. Trade unionism 6. Human relations movement 50 Sources of Recruitment 1. Internal sources — It includes personnel already on the payroll of an Organisation, presenting working force. Merits - Less expense - Builds loyalty - Ensures stability - Sense of security - Lower level to look forward to rising to higher levels - Morale of the employees Shows more Enthusiasm Demerits - Promotion based on seniority, inefficient people may also be promoted this will ultimately ruin the prospects of the firm.
External Sources — Fresh flood should be injected so as to make it more dyanamic - freshers from college - unemployed with a wide range of skills and abilities - retired experienced person Merits - required skills 51 Direct Method — campus recruitment 2.
Indirect Method — use advertisements for recruitment in newspaper, journal, etc - Blind advertisement — without company name the advertisement been made 3. Third Party method a. Private Employment agency b. Public Employment agency c.
Head hunters Professional Recruiting agencies d. Employee Referrals Recommendations e. Trade Unions f. Applicant at the gate g. Voluntary Organisation h.
Computer data bank Recruitment Policy 5 Elements 1. Identification of Recruitment needs 2. Preferred sources of Recruitment 3. Criteria of selection and selection techniques 4. Cost of Recruitment 5. Role, if any assigned to the union in the formulation and implementation of recruitment and selection policies. Selection - Process of discovering the most suitable and promising candidates to fll up the vacancies - The goal of selection is to sort out or eliminate those judged unqualified to meet the job and organizational requirements - -ve action, after receiving the application select a particular person 52 Receiving application 2.
Application blank 4. Psychological test 5. Interview 6. Reference check 7. Physical Examination 8. Final Interview Interview The Interview is the most frequent method of selection. The Interview is a face to face conversation between an applicant and the employer. The purpose of Interview is to collect information on behaviour, attitudes, opinions, maturity, emotional stability, enthusiasm, confidence, response and other commercial behaviour.
Types of Interview 1. Structured Interview — is also called as patterned interview. The interviewers are trained in the process to be used. A list of questions on analysis of the job specification is prepared. The Interviewing process attempts to predict how candidates will perform in the work situations. Group or Discussion Interview — The interviewees are given certain problems and are asked to reach a specific decision within a particular time limit.
The applicants enter into group discussion, knowing that the interview is a test, but do not know which qualities are being measured or tested. The object is to see how individuals perform on a particular task or in a particular situations 3.
Panel or Board Interview — Candidate is interviewed by a number of interviewers. Questions may be asked in turn or asked in random order as they arise on any topic. Stress Interview — The Interview assumes a hostile role toward the applicant. He deliberately puts him on the defensive by trying to any, embarrass or frustrate him.
The purpose is to find out how a candidate behaves in a stress situation whether he loses his temper, gets confused or frightened. Placement may be defined as the determination of the job to which an accepted candidate is to be assigned to that job.
A proper placement of a worker reduces Employee turnover, absenteeism and accident rates and improve morale. After the selection, the employee is generally put on a probationary period ranging from one to two years after his employment to regularized, provided that during this period, his work has been found to be satisfactory.
Clarifying the job 2. Developing realistic expectation about the Organisation 3. Reducing the amount of stress of new employee 4. Reducing startup costs 5. Strengthening the relationships between new employee, his superiors and peers A formal orientation programme generally provides information regarding the following: The history of the Organisation 2.
Products and services of the Company 3. Organisation structure of the enterprise 4. Location of departments and Units 5. Personnel policies and practices 6. Employees facilities and services 7. Rules and Regulations 8. Grievance procedures 9. Determining Training Needs a. Organizational analysis — analyzing the present and future needs of the total Organization b.
Operational analysis — need of a specific group of jobs c. Individual analysis — analyzing the need of the specific Employee 2. Deciding the purpose of Training 3. Choosing Training method 4. Evaluating Training Effectiveness Need for Training arises on the account of following reasons — 1.
New Environment 2. Lack of Trained Personnel 3. Advancement in Technology 4. Faculty Methods 5. Prevention of accidents 6. Career Development. Need for Training 1. To improve job related skills 2.
To update Knowledge and skills 3. To prepare for higher responsibilities and task 4. To develop proper job related attitudes 5. To inject motivation and morale 6. To mould personnel to adapt and adjust to Organizational change Advantages of Training 56 Increased productivity 2.
Job Satisfaction 3. Reduction in accidents 4. Better use of Resources 5. Reduced Supervision 6. Greater Flexibility 7. Management by Exception 8. Stability and Growth 57 Essential of a good Training Programme A good training programme must satisfy the following conditions 1.
Clear Purpose 2. Training Needs 3. Relevance 4. Individual Differences 5. Appropriate incentives 6. Management Support 7. Balance between theory and practice. Training Procedure 1. Preparing the Instructor - know the job or subject he is attempting to teach - Have the aptitude and ability to teach - Have willingness towards the profession - Pleasing Personality and capacity for leadership - Knowledge of teaching Principles and methods 2.
Preparing the Trainee 3. Getting ready to teach 4. Presenting the Operation 5. Follow - up Methods and Techniques of Training 1. On the Job Training a. Coaching b.
Understudy c. Job Rotation 2. Vestibule Training — Dummy Machine set up 3. Apprenticeship Training 4. Methods of Executive Development 1. On the Job Method a. Coaching and Understudy b. Position rotation c. Special projects and task forces d. Committee assignments e.
Multiple Management 2. Off the Job Method a. Special courses b. Conferences and Seminars c. Case study d. Selective Readings e. Brain Storming f. Simulation , role Playing and Management Games g. Sensitivity Training 59 It is the final action of a manager in getting others to act after all preparations have been completed.
It consist of the following elements: Elements of Management 2. Continuing Function 3. Pervasive Function 4.
Creative Function 5. Linking function 6. Initiates action 2. Ensures coordination 3. Improves efficiency 4. Facilitates change 5.
Harmony of objectives 2. Maximum individual contribution 3. Unity of command 4. Appropriate techniques 5. Direct Supervision 6. Strategic use of Informal Organization 7. Managerial Communication 8. Effective Leadership 9. Principle of Follow up through 61 Delegation 2. Supervision 3. Orders and instructions 4. Motivation 5. Leadership 6. Every executive has to supervise the work of his subordinates. At the operating level, supervision is the most significant part of the manager job.
The supervisor is in direct touch with the workers. He teaches proper work methods, maintains discipline and work standards and solve workers grievances or problems. To schedule work so as to ensure an even and steady flow. To assign work to different individuals 3. To provide proper working conditions 4.
To issue orders and instructions 5. To prescribe work methods and procedures 6. To guide, train and inspire workers in the efficient performance of work. Knowledge of Work 2. Knowledge of the Organization 3.
Communication Skill 4. Human Relation of Skill 5. Planning the work 2. Organising the Resources 3. Staffing the units 4. Maintaining discipline 5. Enforcing safety measures 6. Handling Grievances 7. Appraising performance 62 Time management and delegation 3. Organising the resources 4. Staffing the Units 5. Trianing and development of Employees 6. Disciplining the Workers 7.
Appraising the performance of Employees 8. Controlling the results 9. The ability to use power effectively and in a responsible manner 2. The ability to comprehend that human beings have different motivation forces at different times and in different situations 3. The ability to inspire 4. The ability to act in a manner that will develop a climate conductive to responding to and arousing motivations.
Fundamental understanding of People 6. Leadership Styles 1. Autocratic Leader —Commands and expects compliance, is dogmatic and positive, and leads by the ability to withhold or give rewards and punishment. Democratic or Participative — consults with subordinates on proposed actions and decision and encourage participation from there 3. Leaders depend largely on subordinates to set their own goals and the means of achieving them, and they see their role as one of aiding the operation of followers by furnishing them with information and acting primarily as a contact with the groups external Environment.
Paternalistic Leadership — Serves as the head of the family and treats his followers like his family members. He assumes a paternal or fatherly role to help, guide and protect the followers. Functions 1. Goal Determination 2. Motivating Followers 3. Direction 4. Coordination 5. Representation Importance of Leadership 1. Aid to authority 2. Motive power to group efforts 3. Basis for co operation 4. Integration of Formal and Informal Organization.
Trait Theory — A Leader is a one who has got a enthusiastic look, courageous look — describes the external qualities of a person 2. Behavioral Theory — A person who intend to be leader, they do not have any qualities like Trait Theory 3. Contigency Theory — a.
Fiedler Model b. Likert Model c. Managerial Grid Theory 64 Fiedler Model - Leaders can be classified as two - a. Relationship Oriented b. Task Oriented 3 Situations been given to find the performance of two types of Leader- — Leader member Relationships - Task Structure - Position Power Employees under Relationship oriented Leader seems to achieve more performance than the other. Likerts Model System 1 — Exploitive Autocratic Leader oriented towards task alone System 2 — Benevolent Autocratic Leader task oriented but has the quality of opposing if things are good System 3 — Participative Leader concerns the employees for a particular kind of work, though he concern decision will be taken only by him.
System 4 — Democratic Leader 3 Situations 1.
Subordinates feeling of freedom 3. Leaders concerned for People 2. Task Manager Eg Defence , Concerned only on task 2. Team Builders — leaders high concern for production as well as people 3. Impoverished Style — Unfit for Leadership qualities, less concern for people as well as production 4. Country club Manager Eg — Trade union, high concern for people than production.
Communication is the interchange of thoughts and information. Sender 2. Message — The Subject matter of Communication 3. Encoding — act of translating he msg into words, pictures, symbols 4.
Channel — Media used 5. Receiver — 6. Decoding — interprets the msg to draw meaning from it. He converts symbols, signs or pictures into meaning 7. Feedback — Sound Communication provides the following advantage 1. Improves Mangerial Performance 2. Facilitates Leadership 3. Increases job Satisfaction 4. Reduces time and efforts 5. Enhances coordination 6. Formal Communication — follows the route formally laid down in the organization structure a.
Downward Communication — flow of communication from superior to subordinate b. Upward Communication - flow of communication from subordinate to superior c. Horizontal Communication — transmission of information among the positions at the same level of he Organization. Informal Communication or Grapevine — Communication among people through informal contacts or relations. Distinguish between Downward and Upward Communication Down ward Upward From higher to lower levels From lower to higher levels Flow is downward Flow is upward Directive in nature Non-directive Purpose is to get plans implemented Purpose is to provide feedback on results Travels fast Travels slowly Orders, instructions, lectures, manuals, handbooks, etc are the main examples Reports, suggestions, grievances, protests, surveys are the main examples.
Distinction between Formal and Informal Communication Formal Communication Informal Communication Official Channel Unofficial Channel Deliberately Planned and Systematic Unplanned and Spontaneous Part of Organization Structure Cuts across formal relationships Oriented towards goals and task of the enterprises Directed towards goals and need satisfaction of individuals Impersonal Personal and social Stable and rigid Flexible and instable Slow and Structured Fast and Unstructured Grapevine Merits and Demerits Merits Demerits Useful for developing group cohesiveness Based on rumors Serves as an emotional safety value Misleads People Effective source of knowledge feelings and attitudes of Employees May breed against particular executives Supplements the channels of official communication May lead to more talk and less work Tells mgt when to be firm and when to yield May distort official channels of communication 67 Oral Communication 2.
Written Communication 3. It may take place. Merits Oral or Verbal communication offers the following advantages: Economical 2. Personal touch 3. Speed 4. Flexibility 5. Quick response Demerits Oral Communication suffers from the following weaknesses- 1.
Lack of record 2. Time Consuming 3. Lengthy message 4. Physical distance 5. Effectiveness 2. Lengthy messages 3. Economical 4. Repetition 5. Permanent record 6. Better response 68 Demerits 1. Time Consuming 2. Expensive 3. Inflexibility 4. Little secrecy 5. Lack of personal touch 6. Circle Network 2. Chain Network 3. Wheel Network 4. Organisational Barriers 1. Ambiguous policies, rules and procedures 2. Status patterns 3.
Long chain of Command 4. Inadequate Facilities b. Mechanical Barriers 1. Overloading 2. Semantic barriers 3. Noise c. Personal Barriers 1. Lack of attention or interest 2. Failure to Communicate 3. Hasty Conclusion 4. Distrust of communicator 5.