MANAGEMENT BCOM PART II

Definition and Introduction

Definition
Management is the process of organizing and maintaining an environment in which individuals
working together in groups, efficiently accomplish selected aims.

Explanation
Management is the process of reaching organization goals by working with and through the people
and other organizational sources. It involves a series of the steps to be followed in certain order with
a view to create and maintain an environment in an enterprise where the individuals working in
groups can perform their jobs with the perfect understanding, unity and efficiency. Therefore the
overall job of the manager is to create within the enterprise an environment, which facilitates the
accomplishment of the predetermined objectives.

The practice of the Management is found in every facet of human activity. It includes decision-making
and the giving of orders so that the maximum of the output could be obtained with the minimum of
input.

Steps in Problem Analysis

Problem Analysis
Problem Analysis is the logical process by which the manager narrows down a broad body of the
information during progressing towards solution. The following approach can lead to a precise
formulation of the problem itself and the steps that might lead to its solution.

1. State the Problem

A problem well stated is half solved, identifying accurately the problem in its true perspective. The
more correctly the problem is stated, easier the rest of the problem is.

2. Define the Present Level

Confirming to which level the problem solving related and what is its size or magnitude comes under
this step.

3. State Your Objective

State in specific and measurable terms the exact difference between the present and the way things
ought to be. What solution is intended and what is the exact purpose of problem solving process is to
be determined.

4. List the Possible Causes

Write down all the possible reasons of why the present situation has aroused. Setting forth the
possible ways of how the manager have to cope up with and enables him to develop a priority list for
himself.

5. Select the Most Likely Cause

Analyze every cause in the light of its merits and demerits. For each problem points to the major
causes that merit the most watching.

6. List Alternative Solutions

There is always more than one possible answer. Write down all the possible actions that would seem
to meet the need you have isolated.

7. Analyze the Alternative Solutions

Weigh each possible action with regard to the cost, effort and risk. Basically this involves relating
certain important facts in support of a certain alternative and repeats this for each alternative. Some
facts will support a given alternative others will indicate facts with the preference for a different
alternative judgment and experience will help in evaluating the alternatives.

8. Make Your Decision

Select the action of the alternative that has the highest total ratting on your effort. Cost and risk
evaluation are important to select the most strongest, most appropriate and the most feasible
alternative.

9. Make Action Plan

Carefully and with the attention to minute details of the plan that will have to occur to bring about the
selected alternative. Give attention to the specific dates and the objectives of each step towards
accomplishment of solution.

The Planning Process

Introduction
In designing an environment for effective performance of individuals working in groups, the most
essential task is to make sure that people must know what they are expected to accomplish. This is
the task of planning.
 Definition
Samuel Certo says:

Planning is the systematic development of the action programmes aimed at reaching agreed
business objective by the process of analyzing, evaluating and selecting among the opportunities
which are foreseen.

Types of Plans

Introduction
Plans may be classified into different types each of which constitutes the elements of main plan itself.
They are as under:

1. Objectives
The end point of planning is objectives. It not only points out the goals towards which activities are
aimed at but also provides the foundation on which all the rest of planning are based in preparing the
objectives. The planner has to follow all those steps that are adopted by him in formulating the main
plan.

2. Policies
Policies are general statements or understandings, which guide the thinking of a manager in making
decisions in the enterprise. Policies delimit an area within which a decision is to be made and ensure
a consistent and unified thinking throughout the enterprise. As an element of the plan, policies assist
the manager in determining what must be done to ensure timely accomplishment of objectives.

3. Procedures
Procedures provide the course of action that should be followed in-order to achieve the objectives.
They provide the path through which activities are to be followed.

4. Rules
In the interest of maintaining and observing discipline in the enterprise, all the employees must be
made to observe certain rules and regulations. Rules therefore determine the restrictions and the
limitations on the individual employees and provide internal laws, which govern the discipline of the
enterprise. In preparing the rules, same step is to be followed as that in the main plan.

5. Programmes
Programs specify the time limit for different activities and for the main objectives that are to be
accomplished. In fact programs establishes the timetable of the activities that are to take place in
different departments. In preparing a program a manager considers policies, procedures and rules so
 that a practicable timetable is prepared. Hence program is often called the complex of policies,
procedures and rules.

6. Budgets
As type of plan budget constitutes the elements which studies each factor i.e raw material to be
consumed, space to be covered and man and matching hours to be utilized. Budgets are the forecast
of those things, which can be counted or quantified with complete accuracy in other words it, is a
numerical statement of future activities.

7. Strategies
If the main plan of the business is prepared without taking into account, the activities of the
competitors. Consequently it is always advisable to prepare the plan in the light of the plan of
competitors and their activities. Strategies, therefore point out those aspects of the plan which when
taken into account provides information of the rivals.

Steps in Planning
In preparing the plan the following setup should be taken by the planners strictly in the sequence.

Establishing objectives
The first step in the planning is to establish or determine in the definite term the objectives. Objective
indicate basically what is to be accomplished and where the primary emphasis is to be placed and
what the police and procedures should be planning is to be the work out in the details what is to the
accomplished.

Communicatly objectives
In the designing an the environment for the effective performance of the work groups it is the
imperative that people must know what they are expected to the describe their personal business
goals it is the likely that they have no objectives at all.

Establishing planning premises

Te third step in the planner is to determine the relevant information that will be needed by the planner
in the establishing and estimating the plan.

Planning premises provide a background on which all the attention of the planner continuous to
provide the boundary wall with in which the attention remains diverted. Premises are the expected
environment of the plans in the plans in the operation premising then is the assessment of the future.

To a large extent the feasibility of the using any one alternative to reach organization objectives is the
determined upon which the alternation is the based.
Listing Alternation ways of the Reaching Objectives
Under this step managers should list is many available alternation as possible are the reaching the
pre-planned the objectives. In this connective the planner must reduce by the preliminary
examination the number of the alternation to those missing the most fruitful possibilities or by the
mathematically eliminating the least promising ones.

Evaluating Alternative Cases

Having sought out alternative courses and examined their strong and the weak points the fifth step is
the evaluate them by the weighting the various factors in the right of the promises and goals.

Establish Policies
Policies might be viewed as a board pathway with in which the worked moves towards on the
objectives when considering alternatives a worker can the automatically exclude those matters that
are outside the area designed as the acceptable by organization policy

Selecting A Courses of the Action

The seventh step-selecting the coursed of the action is the point at which a plan is the adopted the
real point of the decision-making occasionally an analysis and evolution of the alternation courses
against objectives.

Putting plans into the action

Once place have been developed they are ready to be put into the action. The plans should furnish
the organization with the both long range and short the range direction of the activity.

Establishing Budgets
The important step to give the plans a meaning is to the number them by the converting them to the
budgets are the expression of the expected in the numerical terms. If done well budgets become a
means of the auditing to getter the various plans and also important stand against which planning
progress can be measured.

Establishing Time Tables

Completion dates are the most important part of the any schedule. Millipores are the created for the
convenient intervals through out the life of the project so that the manager dose not suddenly realize
at the manager that he major objectives are only half realized.

Deciding on Standards
As a final step in the planning procures. It is important for the manager to realize that the plan
performance is measured. Consequently plans should be stated in a measurable manner.
 Organizing
Organization is the second fundamental function of the management and like of the planning it is of
the perspective type. That is it is related to the prepare stage and involved formulation of the effort
and establishment of framework for the proper pattern and relative position of the activities fore
undertaken. No planning succeeds unless a framework of the activities is built up to accomplish the
goal, which is contracted.

Organization is the managerial function that is the concerned with the arrangement of organizations
resources, people, material technology and finance in order to achieve organizational objectives.

The organization function of the management brings together human and physical recourses in an
orderly manner and arranges them in a Co-ordinate pattern to accomplish plan by the objectives.

Organization helps a manager to known reports and who is he to the help, to whom he reports and
who is to the reports to him, organization is a complete function, which involves

Determination of the activities to be the performed in the keeping with the objectives.
Classification of these activities in the light of their role and contribution.

Determination of the proper authority for the effective performance of the job.

Determination the relationship between each group to the make them devel understanding
and the unification.

A provision for the Co-ordination that would help on the developing a team spirit and feeling
of the joint efforts.

Span of Management / Control

One of the basic doctrines in the theory of the organization is the principal of the span of
management. The ability capability and the time of the managers are the necessarily restricted
by the biological and physical factors hence a manager cannot look after manage or the control
unlimited number of the people working under him. Consequently if the some one wants
effective management, than the number of the subordinates working under the manager must be
such which he can effectively handle. The theoretical justification for the restricted Span of the
Management was developed by A.G Gracie, the famous French mathematician and the
management consultant. He proved through a mathematical formula the relationships between a
manager and sub-ordinate working under him. This repaid increase in relationship is so much
fast that we call it in a geometrical progression Graciousness theory explains that there is not
one relationship between a manger and sub-ordinates that is controlled. Rather there are three
different relationships that require proper attention of a manager.
These three relationships have been identified as
1. Dirct single relationship
If a manger has three subordinate working under him, he will have three direct single
relationships. That is he develop intimacy ad relationship with his subordinates on the individual
basic and he understands them fully and perfectly in order to have a full control.
2. Direct group relationship
 Co-ordinates after work in a group although they are from different departments. They work
together because their boss in one and because they have common goal to accomplish. They
often come to their manager for the seeking advice in the groups. A manager must
Observes how the subordinate behave when they appear before him. It is the human nature that
often the behavior of the man change. When be become a member of a group. Hence such
changing behavior must be noted by a manager if he wants to have a complete control and
command over them.
3. Cross Relationship
For effective management it the essential for a manager to know how the sub-ordinates behave
in his/her absence. In other words the manager must known what sort of the relationship the
subordinates have with the each other this relationship is the important to understand their
character and behavior in the enterprise as it can greatly effect the atmosphere of a business.
According to the A.G Graicu has these three relationships between a manager and subordinates
go on the increasing rapidly as the follows

No. of Subordinates No. of Relationship

1 1
2 6
3 18
4 44
5 100
6 222
It means that a manager can next look after unlimited number of the subordinates organization
levels exist because there is a limit to the number of the persons a manager can supervise
effectively. His span of the control is the definitely limited according to his ability and the
capacity to the manager. Different experts on management believe that for an effective control a
manager should not have more than 6 to 8 persons under his control a manager should be very
important works. However there is no definite standard, which can be controlled effectively by a
manager.
It depends upon the certain conditions prevailing in an enterprise. These conditions definitely
determine whether the span of the management may be narrow or the wide. Span of the control
is also the called span of the supervise/ authority.
Controlling
Controls is the function of the every manager from president supervise
Controlling is the determining what the being accomplished that is the evaluating the
performance and if the performance and if the necessary of applying corrective measure so that
performance takes place according to plans.
Manager are the performance to see that the objectives as mentioned I plan are achieved as per
programmed the controls, becomes necessary to the verify whether every thing is the happen in
the conformity with the plan adopted instruction issued and the principal established controls
helps the manager in the verifying whether the things are happening as the describe or not and if
it is the not according to the expectation then the deviations or the discrepancies and the
discovered and the correct are made so that they may not be repeated.

Steps in Controlling
 The controlling function involves three steps, which are the integrated, and the interrelated.
Controlling constituted the following
1. Establishing standards
The first step is to prepare and establish standard or the certain criteria against which actual
results can be measured. They represent the expression of the planning goals against which the
actual accomplishment of the result can be measured standards may be stated in physical terms
I monetary terms or the verifiable qualitative terms or in ay other way which can give a clear
indication of the performance.
2. Measuring performance against these established standard
After preparation of the standards measurement of actual performance is the made. This is the
stage where actual results are physically measured.
Actually verified against the standards established with the establishment Measurement of the
actual accomplishment with the established standard can reveal whether things are the going in
as desired or the not. There is the hardly any function or the performance that the givens 100%
perfect result and the therefore some discrepancies of the minor or the major nature are the
likely to the simply known the satisfaction or the un satisfactory result but he has to the that of
the accomplishments are made according to the plan and of the consequently the moment he
detects the Cretins deviations he should immediately take steps to the remove it in orders of the
assure timely achievement of the stated goal.
3. Correcting Deviations of Noticed
Third equally important step in the controlling is to the correct any deviation or the
discrepancy as the early as the possible. Managers prepare plants and organize and the direct
with one view in their mind. That objectives established would be achieved accordingly to the
programmer, it may however mistake some where in his planning process, which may give un-
satisfactory results. The reason for such mistake may be discovered and the corrected of the
noticed immediately to ensure timely accomplishment of objectives. Timely correction of the
noticed deviations is therefore a step in that the directions.

Requirements of Good Control System

The purpose of the controlling is to the enable a manger to verify and the estimate the true
progress going on in his department. Every manager must use of the effective controls
techniques which may give him the describe result and the adequate it possesses the following
characteristic.
Control must Reflect the Nature And Need of the Activities
All controls systems are to reflect the job they are performing. A controls system of the sales
department with be different from that the purchase of the department. It must be seen that it
suits the requirement and reflects the nature of the activities

Budget As a Control Device

A Widely used device for the manager controls is the budget refers the formulation of plans for a
given future provide in numerical forms. It is forces of the further activities expressed in the
measurable units and on the basic of this forecast the actual accomplishment are the verified or the
measured. But as a plan is a more definite and the quantifiable shape in the order to this control the
affairs more of the effective in plans of the objective some times can not be accurately measured in
 measurable units to the convert objectives in the certain to the definite language by the forecasting
the goals budget allows no room for the vague determinations of the objectives

Being an expression of the objective to be achieved budget server as affection and dependable of the
basic or the standard against which the actual accomplishment are the evaluation and defects or the
deviation. If any are noted budget is a proper device for the controlling the activities of the business
enterprises and therefore almost all the business concerns we this the device some shape or the
another in controlling their the affairs.

Types of Budget
Budget may be classified into the five types. Which are as following.

1. Revenue And Expence Budget

The forecast of the expected income and expense expressed in the monitory units is known as the
revenue and expense budget. The planning objective of the earning within a certain period and
spending on business operation. May be expressed in a definite way through such budget are the
prepared the revenue and expenses must be nearer to the budget shown.

2. Time, Space , Material And product Budget

There are many activities, which can better be expressed in other units than money like time, Space,
material and products.

Time to be consumed within a given future period reflects time budgets the space to be utilized
measurable in the square foot takes the shape of the space budget and material to be consumed per
unit may be expressed in the material budget similarly number of the units to be of the produced in a
given period can be classified in the production budget.

3. Capital Expendation Budget

All big enterprises have certain programmer of the spending money for the capital goods like plants,
machinery and equipment and other related items are the planned which may be clearly expressed
with regards to the quantity and value of the purchase to be made with in a given period of the capital
budgets controls the expenditure involved in the purchase of the capital goods

4. Cash Budget
The cash budget is a simply a forecast of the cash receipts and disbursements against which actual
the experience is the important single of the control of the business.

5. Balance Sheet Budgets

 The Success of the every business reflects in how the much it expands and the increase in its total
assets each year. All good concerns have a definite programmer of the development and action and
on the basic of their programmer they make a forecast of the increase in their assets balance sheet
Budgets are a forecast of the status of the assets and liabilities and capital account (A/C) asset
particular times in the future.

Management of The Inventory Chart

Management Inventory chart has been defined as:

As inventory chart is the simply an organization chart of a unit with the managerial positions
indicated and the keyed as to the promoability of the each include.

It is an honest evaluation of the staff promoability put down in the block and white stands with
respects to the staffing function.

Advantages of the Management Inv.Chart

The following are the advantages of the management Inv.chart.

1. The chart give an overview of the staffing situation of the organization

2. Managers who are ready for the promotion can be easily indefinite.

3. Mangers who do not performed satisfactorily are the identified and need to the training or the
replacement is the indicated.

4. Managers who are close to the retirement can be identified and preparations can be made for their
replacement.

5. The chart facilities the transfer of the manager not only to strengthen of the manager not of the
experience.

6. One can identify and prevent the boarding of the promotable people by their Immediate superiors.

7. Manger can contest subordination about their career paths and relate them to the employment
opportunities with in the company.

8. If the organization has the insufficient depth of the recruited to the cruses future supply of the
managers.

Limitation of the Management Inv.chart

Following are the disadvantages the management Inv. Chart

1. The Chart does not show to what posing the manager may promotable. A promoted able manager of
one department can fill the job of the vice president in another department.
2. The data shown on the chart on the chart are not sufficient to make a fair assessment of the
capabilities of the individuals.

3. Al Though the chart is the useful for the counseling subordinate. It after not the practical to the
shown the information with all employees.

4. It takes time and effort to keep chart up to date.

5. Upper level manager may hesitate to make their charts available other upper level manager because
they may be afraid they will lose component subordinates the other organization units.

Management By Objectives

Definition
MBO can be definite as follows.

A comprehensive managerial system that integrates many key managerial activities in a systematic
manner, consciously directed towards the effective and efficient achievement of the organization and
individuals of the objectives.

MBO is a system of the setting up of the organization objectives, which then become the beginning,
middle and end of the operation. Objective monitor organization's progress and success. Departure
from the optimum path to these of the objective causes corrective action to be invited.

Charateirstic of the Mangement By objectives

Management by objectives has certain of the characteristics as the explained below.

1. Characteristics of objectives
It explains and spells out the Specification objective I clear understandable and definite terms. The
superior Known what he expects from his subordinate manager and the letter understands what he
has to accomplish by a given a time.

2. Success Of the specific goals

It sets specific goals in such a manner that it integrates shorts range objective with the long range.
Each successive specific goal is the perfectly integrated.

3. Delegation By objectives
 If the duties are assigned in term of the results becomes specific and simple it believes in the
delegations assigned.

4. Freedom to act
In the light of clear of the objective, specific goal along the work to it and the authority to the achieve
them. The subordinate manager gains freedom to act and put has best. He inactive to work and
developing faith in his own self.

5. Verifiable Results
It is the impossible to the measure achievement of objectives of the accurately stated in vague or the
general terms. Management by the objective of the expressed specific goals in verifiable and
quantifiable terms there by making measurement of performance or control easy.

6. Clear Communication
Clear communication is only established when a subordinator is given verifiable results to the action
and the authorities to achieve them. Such clear of the communication motivates the subordinate
manager to put forth his best efforts and the imagination.

7. Personal Accounting
If nature of the duties is vague but if duties of the assigned are the verifiable clear and the definite
and necessary authority delegated personal accountability become clears of the simple and easy
Management accountability possible.

8. Improved Management Ability

At each interval, the subordinates should be understand his capability of effectiveness and effacing
so that he may be concentrate on his weaker areas of the performance to the improve himself further
MBO. Provides the opportunity.

9. Shared responsibilities
The superior gives his own view to the subordinate manager while setting specific goals for the
earlier. He also asks his the subordinates what the goals he can accomplish in what time and with
what recourses accomplishment of the departmental objectives, therefore becomes a shared
responsibility.

Benefits of MBO

1. Better Managing
 MBO results in must improved to the managing to the ensure that the objectives are realized and it
also requires Manager to the think of the way they will be accomplish of the results the organization
and the personal they will need do so and the resources and assistance they will require.

2. Classified Organization
MBO. Assigns definite of the organization lacks along with the authority to the use organization
resources to achieve those tasks. A clearly defined MBO Program leave no question on the authority
granted to the subordinate Manager or on what is the expected from them. It forces managers to the
clearly organization roles and situation.

3. Personal Commitment
MBO encourages people to the commit themselves to their goals. No longer are people just doing
work. Following instruction and waiting for the guidance they are now individuals with clearly definite
purpose. They have had a part in actually setting their planning programs and evaluating themselves.

4. Development of the effective controls

In the same way that the MBO sparks more effective planning it also aids in the developing effective
controls. One of the major problems of the control is the knowing what to watch. A clear set of the
verifiable goals is the best guide to the knowing.

5. Improves subordinates Manager efficiency

MBO, enable subordinates manager to the known exactly where he stands with superior what are his
known weakness and what is his further it helps him to the develop his capabilities and improve
performance.

Weakness in MBO
MBO system has a number of the weakness and short comings:

1. Failure to teach the philosophy of MBO

It is the important that the management who would put MBO into practice must be understands and
appreciate a good deal about it. They in turn, must explain to the subordinates what it is apprising of
the performance and above all how participants can benefit.

2. Difficulty of the introducing MBO

Introducing MBO into an the existing work forces might be problems laden older managers who for
years might qualitative standard become fearful where the never, more precise standards are
introduced.
3. Different of the selling goals
Truly verification goals are the different to the set. It takes much study and work to the establish
verifiable objectives that are the formidable but attainable them to the develop many plans which tend
only to lay out work to be done

4. The short Run Nature of the goals

In most MBO programs managers set goals for the short term. Seldom for more than a year and often
for a quarter or less. There is the clearly the danger of the emphasizing the short run, Perhaps at the
expense of the longer run.

5. Dangers of inflexibility
Managers after hesitation to allow subordinates to change objectives. Al though goals may crease to
be meaning full if they are change too often it is the some times foolish to the expect a manager to the
strive for a goal that has been made absolute by the change premises modified policies etc

6. Overuse of the quantitative goals

In their desire to have verifiable goals, people may overuse quantization. Goals and attempt to the
force the value of the number in area where the not applicable. A favorable company may be the state
this in the quantitative terms.

Types of Groups (How They Group?)

Leonard R.Sayles named four (4) groups of the grouping to the describes them however, first groups
may be classified into two major types:

1. Formal Groups
A formal group is one that exists within an organization by the virtue of the management decree to the
performance tasks that enhance the attainment of the organizational objectives. Samuel certo.

From the point of the view of the organization formal groups are generally used to the pass along and
share of the information, train people or the help make a decision. Formal group are the divided into
the two basic types, which are two of the Leonards groups.

I. Command Group
Command group are the formal groups that are outlined on the chain of the command or on the
organizational chart. In the general command group typically handle the more routine organizational
of the activities. The command group exists because of the rank relationship of the group members.
 II. Task group
A task group is a group of the created by the organization to accomplish a relatively narrow range of
the purpose with in a stated or the implied horizon. Al though tasks groups are the commonly
considered to be made up of the member on the same organization level they can consist of people
from the different levels of the organization hierarchy.

2. Informal group
An informal group is one that develops out of the day to day activities inter actions and the sentiment
of the member for the purpose of the meeting their own needs.

These are not highly structured in terms of the procedure and are not formal recognized by the
management.

Theory X and Theory Y

Each of us has personal feeling about the kinds of the factors that may be counted upon to motivate
human beings. We each will give our own theory of the motivation to those whom we wish to
motivate.

The manner I which we will attention to the apply our theories is always determine by the
arrangement of the values that we attribute to the people dougias Mc Gregor has given names to the
theories most often held about people and motivation. Mc Gregor calls his two groups theory X and
theory.

Theory X Manager
A manager who fits into the theory X group leans to wards an organization climate of close controls
centralize of the authorities, autocratic of the relationship and minimum participation in the decision
making process. Such manager accepts certain assumplains. Theory X assumplains according to the
Mc Gregor are.

1-The average person dislike work and will avoid it as much as possible.

2-Stemming from this, according to the theory X, most people have to be forced or the threatened by
the punishment to the make the effort necessary to accomplish of the organizational goals.

3- The average individual is basically passive and therefore prefers to be directed, rather than to
assume any risk or the responsibility. Above all the else, Security is the important.

Theory Y Manager

A theory Y Manager of operates with a different set of the assumptions regarding human motivation.
This manager feels that an effective organizational climate has looser. More genera super vision of
the greater decent realization of the authority less reliance on coercion and the control democratic
leadership, style and more of the participation in the decision process. The assumption upon which
this type of the organization climate is based includes the following.

1- Work is a natural as play or the rest and therefore is not avoided.

2- Self-motivation and inherent of the satisfaction in work will be forth common in the situations
where the individual is the committed to the organizational goals. Hence, coercion is not the only
from of the influence that can be of the used to motivate.

3-Commitment is a crucial factor in the motivation and it is a function of the rewards coming from it.

4-The average individual learns to accept and even proper environment.

5-Contrary to the stereotypes the ability to be creative and the innovation in the solution of the
organization problem is the widely, not narrowly, distributed in the population.

6- In Modern business and organizations human interlaced potentialities are just practically realize.

Concept of Theory Z
The question arises as to which management philosophy and of the organizational limitation to
produce the best results under some conditions. Theory X works best and Theory Y, works suggest
that both assumptions are correct at the different times with different people ---- thus the mandatory
different motivational approaches depending on certain variable in the organization.

Human Relations Theory

The best explained of human relations theory ha been given by Rinses likert. In the course of the
researches carried out by Rinses Likert and his associates at the university of the Michigan. They saw
an effective manager as strongly oriented t the subordination relying on the communication to the
keep all parties working as a unit- All members of the group including the manager adopt a
suppurations attitude in which they share in one another common needs of the values, aspirations
goals and expectations, Since this is what appeals to the human motivations.

Likert suggested four systems of the Management, which are explained below.

System 1. Exploitive Authoritative Treating people poorly

These managers are the highly of the autocratic have little trust of the subordinates, motivates
people of the though fear and punishment and occasional rewards. Communication is the down
wards and orders are the issued solely by the leader under this system, productivity is the mediocre.

System 2. Benevolent. Authoritative Treating people less

 Managers have the condescending of the trust in the shared some with the middle and lower of the
manager engage in the communication both up and down. Motivate with the rewards occasional
punishment and some involvement and act connotatively in the other ways.

System 4. Participative group

Treating people extremely well

This system is the optimal approach to the leading there is the extensive of the interaction with a
high degree of the mutual trust and respect of the manager controls are the wildly self of the monition
and the producing is the excellent of the under this system subordinates are the motivates by the
such factors as the economic rewards based on a composed system of the develop through the
participation and the involvement in the goal of the setting.

Henry Fayon - Pioneer of the Administrative Management Techniques

The model of the Administrative of the management evolved during the early 1900s and is most
closely identified with Henry fayol a French industrialist. By 1888 he had become the managing
director of a large French mining conglomerate, which was, then on the brink of the bank ruptey.
Fayol made it a successful company again by the application of the doctrine administrative as he
called it,

Foyal General Administrative princiales

Foyal developed fourteen (14) of the management principles, which become more effective through
formal training in them. These principal were the explained in a book general industrial Management
published in 1916. They are the lashed below.

1. Division of the Labour

This implies that a task should be divided among a number of the employees according to their of the
capabilities. The more people specification the more efficiency they can perform their work. Applies
the principal in all kinds of the work. Managerial as well as technical.

2. Authority and Responsibility

According to the fayol of the authority and responsibility go hand in hand with the letter arising from
the former. Managers have the right to give orders so that they can get things done and at the same
time they are equally answered for the result. Fayol sees authority as a combination of manager's
position and personal intelligence of the experience moral worth, etc factors.

3. Discipline
Members of an organization need to the respect the rules and agreement that govern the organization.
Discipline require good superior at all the levels.
4. Unity of the command
This means that only me manager should exercise authority over a group of the people. Each
employee should receive instruction about a particular operation from only one person rather than
more than one manager which may cause conflicting instruction and confusion to the result.

5. Unity for the direction

This principal is corollary to the unity of the command and means that the efforts of employees
should be co-ordinate and direction by only on the manager in order to avoid to the different policies
and procedures. Just an only one person should say that to do only one manager should say how to
do.

6. Subordinates of the individual to the general interest

The manager should check that the interest of the employee dont take precedence over the interest
of the organization as a whole the employee should forget their personal linking and disliked and to
gather work for the survival of the organization.

7. Remuneration
Compensation for the work done should be fair and affording maximum possible satisfaction to the
employee.

8. Centralization
The authority to the exercise controls over the enterprises must concentrated at the top level of the
position of the Manager should return final responsibility is to be delegated is to be determined by the
circumstance.

9. Scalar chain
It is not possible that a single manager looks after the entire work of the authority to the others to
shares his burden of the management. This establishes. Achine of the link from highest to the lowest
rank and is known as the scalar chain of the command.

10. Order
This is the principal of the organization in the arrangement of things and the people.

(a)- Material order Implies a place for the every thing and the every thing in its place.

(b)- Social order Implies right man in the right place at the right time.
11. Equity part
In, justified and fair play on the part of the managers when dealing with the subordinates.

12. Stabilty And Tenure of the state

fayol finds unnecessary turn over to be both the cause and the effect of bad management. Unless the
employee enjoys job stability they will not develop a sense of the belonging ness and will not give
serious loyal and efficient performance.

13. Initiative
Subordinates should be given the freedom to formulate and carry out their plans. Fayol exhorts
managers to the sacrifice personal vanity in order to the permit subordinate to the exercise Initiative
so that they can fined their own ideas and come out with their latest of the talents.

14. Esclrit-De-Cores
This principal emphasizes the need for term sprit and the important of the communication in the
obtaining it. The manager should include sense of the co-operative and harmony the employee in the
interest of the organization.

Ethics in Management
Socially responsible behaviors by the manager is the usually a matter of the ethics. Ethical behavior
is the social behavior and that is consistent with the prevailing social and cultural of the norms
mores.

The words ethics is the derived from the Greek word refers to the character.

In simplest words of the ethics may be definite as.

A System of the moral principals that branch of the philosophy dealing with values relating to the
human of the conduct with respect to the rightness or the wrongness or the badness of the motive
and ends of such actions fulmar.

From the standpoint of the organization manager ethic may be seen.

As: The rules or standard governing the moral conduct of the members of the organization or the
management professional fulmar.

Values are the fundamental to the ethics. The process of the clarifying what constitutes human
welfare is the dynamic and is the stronger influenced by the fundamental values and change in them
over time.
 Human Balance Sheet
Every organization spends time effort and money in the recruiting and trading employee. Hence
human assets and should be carried as the assets on the organization balance sheet consideration
expenses are increased in order to the recruits ad train of the employee. Resins linker is of the view
that it is the interest of an organizations to the presence its human recourses even in the days of the
recessions, firms will be wiser to be the reduce industries and even shell machinery rather than the
dispose of their most important assets than is people so that it is the best interest of an organization
to have a good staff.

Promotion from within an important policy which has been followed by many companies to the recruit
their managerial requirements under this policy the employee are the provided a strong.

Incentive to the satisfactory work of the performance More over it is the provided a reserve stocked
from which potential manager can be selected of the according to the needs of the organization.