ORGANIZATION

Definition:
A systematic arrangement of people brought together to accomplish some
specific purposed.

Characteristics of an organization:

1. Goal
2. Structure
3. People (living resource)

Non living resources:

Man, Money, Machine and Materials (4 M)

MANAGEMENT – Getting things done along with others

Definition:
Management is the process of designing and maintaining an environment in
which individual working together in a group, efficiently accomplish the
objectives. (Most readily accepted definition)

Reasons for studying management:

1. Living in the present
2. Building on the future
3. Remembering the past
 FUNCTIONS OF A MANAGER OR MANAGEMENT
1. Plan
2. Organize
3. Command
4. Co-ordinate
5. Control

This is as per the classification forwarded by Henry Fayol.

The 4 basic functions of a manager recognized in the modern era are :

1. Planning
2. Organizing
3. Leading
4. Controlling

ROLES OF A MANAGER
1. Interpersonal Roles: managers engaged in a great deal of interaction,
continually communicating with superiors, peers, subordinates and people
from outside the organisation.
1. Figurehead: manager as a visible personality representing an
organisation, department or work unit.
2. Leadership:= who energies others to get job properly.
3. Liaison: links together the activities of people both inside and outside
the organisation.
(Maintenance of a network to correlate the inside and outside world)

2. Informational Roles: managers obtain, interpret, and give out a great deal
of information.
1. Monitor: collect all the information’s.
2. Disseminator: transmitted only which are necessary .To act as a
transmitter of information to the internal employee.
 3. Spokesperson: To convey information to the outside world.

3. Decision making Roles: Managers are also asked to choose among

competing alternatives. This includes balancing the interests of the various
parties who have a stake in a decision.

1. Resource allocator: responsible for assigning people and other

resources to best meet organisation needs.
2. Disturbance handler: who takes corrective action, provides damage
control, and responds to unexpected situations or crisis.
3. Negotiator: reaching agreements and making compromises.
4. Entrepreneurial: who introduces changes into the organisation.

# SWOT (Strength Weakness Opportunity Threats) analysis.

# PEST (political economical social technical) analysis.

LEVELS OF MANAGEMENT
Top level managers: Responsible for the overall management of the organization
(policy fixation)

Middle level managers: Responsible for management of supervisory level

managers and convey policy details to lower level managers.

Lower/Supervisory level managers: Responsible for the work of the employees

Advantages of levels of management::

a. Distribution of work.
b. Efficient work.
c. Easy to handle processes.

Disadvantages of levels of management::

 Top level managers are not aware of works.
 Chances of corruption.
 Bad communication: - information may freeze in between or may
change the idea.

MANAGERIAL SKILLS

1. Conceptual skills: Ability to visualize and determine the objective of an

organization.
2. Human Skills: Ability to establish good interpersonal relationships with the
fellow managers.
3. Technical Skills: It refers to specialised knowledge and efficiency in handling
methods, procedures and techniques for doing a specific job.
4. Design skills: to select best solution for the problem or to select best
strategy.
 SKILLS AND LEVELS OF MANAGEMENT
(Diagram: Refer notes)

As far as the levels of management are concerned, since the top level
managers need to do more planning and organising as compared to the
other two level of managers, they ought to have more conceptual skills so
that they can visualize the circumstances in the best possible way and
thereby formulate the policies and set of objectives. As a manager, one has
to either convey policy details to one’s subordinates or report about the
progress in work to the senior managers or one may have to do both. In
other words, one needs to maintain a good network in the organization as
well as the society at large. So, human skill is an essential requirement for a
manager of any level in order to maintain a sound interpersonal
relationship with his fellow beings. Hence, human skill is of equal
importance in all the levels.

The managers of the supervisory level are directly involved with the
execution of policy formulated by the top level managers. They are
responsible for determining the technology or procedure to be adopted for
the achievement of the goals. So, they are supposed to have more technical
skills so that they can have better and more specialized knowledge in a
particular kind of application. They ought to be more forward in specific
areas for doing any particular job. They are more involved in leading the
employees as the employees will naturally follow their ideologies as far as
the procedures adopted are concerned. So, they are more involved in
leading the people then the others. They are responsible for controlling the
overall management of the system. The top level managers are responsible
for monitoring the activities going on and take decisions accordingly which
leads to the need for controlling the people under them as well as to
handle any kind of disturbance among them.
EVOLUTION OF MANAGEMENT THOUGHT
1. Classical School
a. Bureaucratic Organization-Max Weber
b. Scientific theory of management-F.W.Taylor
c. Administrative theory of management-Henry Fayol
2. Neo Classical School
a. Human relations/behavioural.
b. Behavioural and social sciences.
3. Modern aspects of management
a. Management science (quantitative approach).
b. Systems approach.
c. 7-S approach.
d. Operational approach.
e. Managerial roles approach.
f. Contingency approach
g. Case study.

Bureaucratic Organization
 Developed by Max Weber
 Example – Military organization
 Orders of superiors are to be followed strictly and cannot be questioned.

Special Characteristics:

 Hierarchy of Authority
 Clear cut division of work: One who is responsible for giving command will
only give command and one who is responsible for work will only work.
 A system of rules, regulations and procedures.
  Selection and promotion based upon managerial and Technical
Competency
 A rule by law leads to Impersonality of interpersonal or mutual relations.
 Authority and power rest in the office.
 Policies and rules are fixed and not flexible and are not meant to be
modified under any circumstances.
 Emotion has no place. Work has to be done at any cost

Scientific Management :
 Also called Taylorism.
 It emphasized detailed, precise planning of work to achieve efficiency,
standardisation, specialisation, simplification.
 It relied on formal top down budgeting which led to centralised control
system.
 Scientific techniques of management were employed for the management
of physical resources.
 Primary emphasis was on the analysis, planning and control functions
related to performance of basic task.
 It was assumed that normal economic incentives were enough for
implementation of plans and policies.
 It aimed at improving efficiency of human work but it considered human
being as a rational economic, man and he can act like a machine.

 Proposed by Federick.W.Taylor:: Father of scientific management

 Basic concern is productivity :
Earlier productivity was neglected. A daily usage principle was
followed which lead to loss of productivity then the target set.

Taylor’ ideas for scientific management are:-

1. All jobs can be observed and analysed scientifically in order to determine

the ‘one best way’ of accomplishing them.
2. The best man for the job can be scientifically selected and trained.
3. Paying the wage according to the productions.
4. Put a manager in charge of analysing, planning, preparing and inspecting
work.
5. Assigning appropriate man to each set of operations.
6. Choose the best means of economical production.
7. Co operation bet labour and management can be achieved.
8. Workers must be inspired or trained to use the scientific methods.
9. Management must be organised properly to carry out its duties.

**GUIDELINES DEVELOPED BY TAYLOR

 Scientific study and planning of work
Scientific and systematic study the work to formulate the way to be
adopted for accomplishing the work.
 Division of responsibility between workers and management
Division of work as well as responsibility.
 Wage incentive
Additional wages (bonus) for additional production. Wage will be
given of basis of performance.
 Scientific Selection training and placement
Selection should be scientific (systematic and impartial). Decisions
should be given scientifically and the right person should be placed in the
right position.
 Standardization
Standardize work for evaluation of the employees

Frank and Lillian Gilberth:-

# F.gilberth gave motion study. Known as father of motion study.
Therblig- F.G developed 17 basic motions which were called ‘therblig’.
# L.Gilberth emphasized the human factor in industry and stressed
psychological effects of fatigue.
 Frank and Lillian Gilberth made pioneering efforts in the field of
motion study and they laid the entire foundation of our modern
applications of job simplification, meaningful work standards, and incentive
wage plans.

ADMINISTRATIVE THEORY OF MANAGEMENT

Basic contributions:
 Management is a process.
 Management process to be separated into interdependent areas of
responsibility and functions.
 General principle of management.

HENRY FAYOL’S CONTRIBUTION

Father of modern management
 All operations in business organisations can be classified under six
heading:-
1. Technical (Production)
2. Commercial (purchase and sales)
3. Financial (funding and controlling capital)
4. Security (Protection of property and persons)
5. Accounting (Book of records of credit and debits)
6. Administrative activities (planning,organising,commanding,co-
ordinating and controlling)

ELEMENTS OF MANAGEMENT
  Planning
 Organising
 Commanding
 Controlling
 Co-ordinating

14 PRINCIPLES OF MANAGEMENT
1. Division of work: labours should be divided for different work.
2. Authority and responsibility: the right to give orders, the right to
command, is called authority. The obligation to accomplish is called
responsibility. Acceptance of authority implies acceptance of responsibility
for the performance of assigned work.

3. Discipline :Equally applicable for all

4. Unity of command: Command should come from only one source or one
manager so that it can be done efficiently.

5. Unity of direction: All members of an organisation must work together to

accomplish common objectives. Their efforts shall be directed towards
super –goal.
6. Emphasis on Subordination of individual interest to common interest:
Compromise with personal goals to give path for achievement of the
overall interest of the organization.
7. Remuneration: Fair treatment. Fair wage according to work done. Extra
payment for overtime.
8. Centralization: the extends of authority and power of the top level
managers
9. Scalar chain: a clear chain of command from top to bottom.
10.Order: Things should be in proper place.
11.Equity: Impartiality. Everybody should be properly treated.
 12.Stability of tenure: Manager has to provide security to the worker.
Adequate line and scope to be given to an individual to prove his/her skill.
13.Initiative: the fostering of creativity and innovation encourage workers to
act on their own.
14.Espirit-de-corps: Teamwork to be maintained properly in an organization

Neo –classical theory:

Hawthorne experiment:
- Conducted by Elton mayo and his associates.
- In the Hawthorne plant of western electric company in the USA between
1927-1932
- They adopted clinical and diagnostic methods.
- They formulated certain behavioural principles on the basis of Hawthorne
studies:
a. The workers in a group develop a common psychological bond
uniting them as a group in the form of informational organisation.
This influences their group conduct and behaviour.
b. Mental attitudes and emotions, including prejudices influence
considerably employee’s behaviour.
c. Management must understand that typical group behaviour can
dominate or even supersede individual propensities and
predilections.
d. Human and social motivation can play even a greater role than mere
monetary incentives in moving or motivating and managing
employee groups.
Mayo pointed out that an organisation is a social
system. Informal org. Is a reality. Effective management involves
leading person’s not merely manipulating robots. Knowledge of
human nature can solve many problems of management. He stressed
that successful human relations approach can easily creates harmony
in an org. Higher employee satisfaction and, therefore, greater
operational efficiency.
 PLANNING
 Deciding in advance what is to be done
 Process of coping with the uncertainty by formulation course of action to
achieve specified result
 An interrelated process of the conscious determination of courses of action
 Planning is regarded as a process of making decision on what is to be done,
when it is to be done and how is to be done

IMPORTANCE OF PLANNING

 It determines the future destination of an organization

 It economises the operation
 It provides a direction
 It facilitates efficient control
 It is a response of the management to cope up with the changing
environment
 It leads to the discovery of new ideas and opportunities
 It makes the activities of the employees meaningful
 It helps in reducing the risk of uncertainties

CHARACTERISTICS OF A planning.

I. Intellectual process.
II. Goal oriented.
III. Pervasive-everywhere planning top to down.
IV. Primacy-supremacy.
 V. Directed towards efficiency.

ESSENTIALS OF AN IDEAL PLAN:

Clarity:- plan should be very clear.

Simple:- plan should be in simple terms so that every people in the
organisation can understand.
Flexibility:- it should be very flexible so that when there is a need
for change ,it can.
Optimum use of resources:- not max,nor min.

Planning process: steps of planning.

1. Recognition of the need for action.
2. Collecting and analysing information.
3. Establishment of clear-cut objectives.
4. Building planning premises.
5. Examining alternatives courses.
6. Select a course of action.
7. Prepare a supportive plan.
8. Numberising plans.
9. Provision for future evaluation.

Four basic types of planning approaches:

 1. Top- down approach.
2. Bottom-up approach.
3. Composite approach.
4. Team approach.

TYPES OF PLANNING
A:On the basic of importance, scope, coverage and time dimension planning may
be classified into 4 types as given below

 CORPORATE PLANNING
 Determine overall objectives and discover courses of action to
achieve them
 Lays down basic objectives, strategies and policies for an
organization
 Undertaken by the top level managers
 the process of drawing up detailed action plans to achieve an
organization's goals and objectives, taking into account the
resources of the organization and the environment within which
it operates. Corporate planning represents a formal, structured
approach to achieving objectives and to implementing the
corporate strategy of an organization. It has traditionally been
seen as the responsibility of senior management. The use of the
term became predominant during the 1960s but has now been
largely superseded by the concept of strategic management.

 OPERATIONAL PLANNING
 Conversation of corporate plans into detailed and specific areas
dealing with various activities
  Departmental and divisional level
 Prepared for a short duration and more structured

 STRATEGIC PLANNING
 Developing an intensive course of action for achieving objective in a
changes situation
 Basically aimed at scanning the environmental opportunities and
threats by making situational analysis and studying the possible
implication on the achievement of the goals

 LONG RANGE PLANNING

 Determining long term objectives of an organization and proving a
broad framework useful for developing short time action
programme.
 Planning of future impact of today’s decision
 Normally made for a period of 5 years

 Corporate planning does not consider the future impact of the decision
taken unlike long term planning. Corporate planning is usually made for a
period of two years.

B:On the basis of situation and managerial decision plans may be divided into the
following two categories:

 Single use plan

  Objectives
 Strategy
 Programme
 Budget
 Standing plan
 Policies
 Procedure
 Methods
 Rules

SINGLE USE PLAN

 Basically developed for solving non-repetitive unique problem

 Tailored to fit a specific situation

 OBJECTIVES
 Future destination or desired state of affairs which the organization
wants to attain
 Represent not the end point of planning but the future destination
towards which the other function of management such as organizing,
staffing and directing are directed

 STRATEGY
 Unified, comprehensive and integrated action plan designed to
achieve specific objectives in the event of any difficulty
 Concerned with the direction in which various resources of the
organization will be mobilised and utilised maximising the chance of
accomplishment of the specific objectives in the specific situation
 PROGRAMMES
 Single use plan which refers to the outline of plan of work to be
carried out in proper sequence for achieving the specific set of
objectives
 An action plan , indicating a typical sequence in which various
activities are to be performed

 BUDGET
 Single use plan which expresses the anticipated results in numerical
forms
 An estimate of the future need arranged in an orderly bases,
covering some activities of the enterprise for a definite period of
time

STANDING PLAN

 Usually made for a longer duration of time

 Applied repeatedly to various situations

 POLICIES
 A general statement formulated by the organization to guide the
managers in decision making
 Standing decision made to ensure uniform action in the handling of
repetitive problems and questions that are significant to the
organization at a large

 PROCEDURES
  Determines the exact manner in which certain activity must be
performed
 Once a procedure is established for doing a particular activity, every
manager follows it and ultimately it ensures uniformity in
performance and actions

 METHODS
 Provides details about a particular activity of operation
 Prescribes the exact manner in which the operation will be
performed, are more detailed and specific in dealing with a
particular activity

 RULES
 It can be defined as a specific statement or a set of directives which
employees are expected to comply with which performing an
activity
 They indicate acceptable limits or patters of human behaviour in an
organization

PLANNING PROCESSES

 Being aware of opportunities

 The competition (market)
 Customer preferences
 Strength of the organization
 Weakness of the organization

 Setting objectives
 Where? i.e. Where we want to go
  What? i.e. What we want to achieve
 When? i.e. When we are going to achieve

 Considering planning premises

 External Environment
 Internal Environment
 Identification of objectives
 Comparing the alternatives in the light of goal sought
 Choosing an alternative
 Choosing the best alternative from the list of the alternatives to
accomplish our goals
 Formulating support plan
 Numbering plans by making budget

TECHNIQUES USED IN PLANNING

(MBO – Management by objectives)
 The credit of developing this technique goes to Peter Ducker in 1954
 It is a comprehensive managerial system that integrates many key
managerial activities in a systematic manner and that is consciously
directed towards effective and efficient achievement of organizational
resources.

MBO CYCLE

1. To define the objectives of the organization

 2. To formulate the sub-objectives
3. Determination of individual
4. Periodic evaluation and review
5. First review and performance appraisal

ORGANISING

 It is the process of integrating, co-ordinating and mobilising the activity of

members of a group for achieving a common goal
 It is the process of determining whom does, what and who reports to
whom

ALLEN DEFINATION:
It is the process of identifying and grouping the work to be performed, defining
and delegating responsibility and authority and establishing a pattern of
relationships for the purpose of enabling people to work most effectively
together to effectively accomplish certain well defined objectives.

IMPORTANCE OF PLANNING:

 It integrates and unifies the functioning of various departments and

different individuals
 In provides formal communication
 It necessitates delegation of authority among various managerial
positions
 A mechanism through which a manager direct co-ordinate and control
the activities of others
PRINCIPLES OF ORGANISING

1. Principle of division of labour

2. Principle of functional definition
3. Principle of scalar chain
4. Principle of span control
5. Principle of unity of command
6. Principle of flexibility
7. Principle of authority and responsibility
8. Principle of co-operation