MANAGEMENT

• “Perhaps there is no more important area of human activity than management”              – KOONTZ & O’DONNELL.
• The term management is so popular that it needs no introduction. Without management, it is difficult to achieve anything. Management means “manage-men-tactfully” for achieving the desired goals.

MANAGEMENT

Manage-

Planning
Organizing
Staffing
Directing
Controlling

MEN- Group of person tactfully
Efficiently (in the best way)
Effectiveness (work on time)

DEFINITIONS OF MANAGEMENT

• According to Pete F Druker- “management is a multipurpose organ that manages a business and managers and also manages workers and work”.

• According to F.W. Taylor-“Management is the art of knowing what you what to do and then seeing and then seeing that it are done in bet and cheapest way”.

• According to Harold Koontz- “Management is the art of getting things done through with formally organised group.”

• According to E.F.L Breech- “Management is the process of planning and regulating the activities of enterprise.”

• According to Henry Feyol- “To manage is to forecast and to plan to organise to command and to coordinate.”

• According to George.R.Terry- “ Pseudo Science”

• According to Earnest Dale- “ Soft Science”

To sum up, management may be defined as a noun, discipline or purpose. As noun, management may be termed as a group of person who plans and execute the activities of an organization or getting the desired goals achieved.

Features of Management-

Management is a social process. It is directly or indirectly related with members of society.
Management is a complete process. It is universal.
It is a continuous process. It is a art
It is a profession
Management is an intangible force
Management is an intangible discipline.
Management is a science.
Management is not the direction of things but development of the people.

Administration and Management

MANAGEMENT	ADMINISTRATION
. Goals and policy are executed by management.	. Goals and policy are decided by administration.
. More popular     in business organization.	. More popular in government organization.

Both are different:

• Oliver sheldom ( Base: goal & policy )
  • William sprieger
  • Ordway tead
  • D.E McFarland

Both are similar:

• Kimball & Kimball
  • Henry feyol
  • Theo Haiman

William Newman

FUNCTIONS OF MANAGEMENT—

1. According to Henry Fayol- 5 functions (POCCC)

1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling

2. According to Koontz & O’Donnell- 5 functions- (POSDC)

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

3. According to Luther Gulick- 7 functions (POSDCORB)

1. Planning

• Organizing
• Staffing
• Directing
• Coordinating
• Repeating
• Budgeting

4. According to Earnest Dale- 7 functions (POSDCIR)

1. Planning
2. Organising
3. Staffing
4. Directing
5. Controlling
6. Innovation
7. Representation

General Functions of Management

• Primary Functions-
• Planning – Thinking in advance what is to be done in future
• Organizing – A process of identify and grouping of activities. Delegation of authority and establishing relation.
• Staffing – A process of manpower planning, recruitment, selection, placement, induction, training, remuneration and retirement etc.
• Directing – A process of issuing orders, supervising, guiding and inspiring the subordinates.
• Controlling – A process of setting standards, observing, tracing out deviation and taking remedial actions.
• Secondary Function–
• Co-ordination- Integrating group efforts.
• Commuting- Telling, listening and understanding.
• Decision-making- Choosing the best alternative.
• Innovation- Searching some new idea, product, process, machinery material etc.
• Representation- Safeguarding the interest of all parties related to the business unit.

MANAGEMENT ROLES AS PER HENRY MINTZBERG

The role of management is given by Henry Mintzberg (USA) in 1960. Mint Berg classified the managerial roles in the following three groups consisting of in all ten roles.

1.Interpersonal Role- Establishes relationship between inside and outside of organization.

Based on experience and quality.
Mint Berg has described three roles in this regard-

Figure head- As head of unit manager performs various routine duties of legal and social.
Leader- Directs and motivates the staff for maximizing their efficiency.
Liaison- Liaison meets different persons for developing fruitful relation for mutual benefit

2.Informational Role- Manages information incoming as well as outgoing efficiently.

Collection and distribution of information. Three roles are given in this regard-
Monitor- Monitor keeps an eagle eye on all relevant events inside as well as outside the organization.
Disseminator- Transfers the received information to the concerned staff for further action. (Distributor)
Spoke person- Speaks to outsiders on various issues on behalf of the organization. (Presenter)

3.Decisional Role- Taking decision continuously in different situation. Four roles are given in this regard-

Entrepreneur- The entrepreneur dream about a project make plans and tries to execute them successfully.

Disturbance handler- It resolve unexpected disturbance at the earliest.
Resource allocator- He distributes available resources amongst different units and position.
Negotiator- He tackles burning organizational issues through discussion with relevant parties. ( Talking on problems )

Levels of Management-

Level of management describes three levels-
Top level- BOD, CEO, SHAREHOLDERS, CFO Etc.
Middle level- Sales manager, marketing manager, executive officer, etc.
Lower or supervisory level- Foreman, clerk, section officer, etc.

Management Thoughts:-

• Classical Thought-

1.Scientific Management-

• Founder- Fredrick Winslow Taylor
• Belongs- U.S.A.
• Lifetime- 1856-1915
• Career- apprentice mechanist
• Writings\publishing-
• a Piece Rate System, 1895
• Shop Management,1903
• On the art of cutting metal,1906
• The Principal of Scientific Management,1911
• Scientific Management,1912
• Supporters- Henry Lorenz Gnat, Herring Ten

Principals of Scientific Management-

• Separation between planning and doing
• Development of best method of work
• Standard time
• Standard working condition
• Best worker for every work
• Scientific training to workers
• Functional organization
• Different price rate system
• Focus on mental revolution
• Cost accounting system

Techniques-

• Functional organization
• Time study
• Method study
• Motion study
• Fatigue study
• Mental revolution

Criticism-

• Exploitation of workers
• Encourage to managerial autocracy
• Concept of best
• Difficult in time, motion, and fatigue study
• Focus only on production management

• Process Management/ General/ Administrative Management Theory –
  • Founder- Henry Fayol
  • Belongs- France
  • Lifetime- 1841-1925
  • Known as- Father of Management, Father of Principal of Management, Father of Administrative,
  • Supporter- Oliver seldom, J.D. Maney, L.F. Urwik, max Webber
  • Career-mining engineering
  • Published- General and Industrial Management, 1929

Contribution-

• Division of business activity
  • Technical activity
  • Commercial activity
  • Financial activity
  • Accounting activity
  • Security activity

Managerial activity Main Element\Process-

• Planning
  • Organizing
  • Commanding
  • Co-ordination
  • Controlling

14 Principals of Management-

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to general interest
7. Remuneration of personnel
8. Centralization and decentralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure personnel
13. Initiative
14. Esprit de corp.

Criticism-

1. Lack of empirical research
   1. Vague thought
   1. Over simplification
   1. Focus on management & managers

v   Difference between Feyolism and Taylorism management concept:

.NO	ASIS	FEYOLISM	TAYLORISM
.	Area of Management	general management	scientific management
.	concentration	manager	workers
.	expertise	administrative expert	efficiency expert
.	artistic/Scientific	artistic	scientific
.	theory/Practical	practical	theoretical
.	management Education	yes	no
.	individual/ Group	group	individual
.	work/place/career	France (mining engineer)	U.S.A (apprentice mechanist)

• Bureaucratic Management-
• Max Webber (1864-1920) known as Father of Bureaucracy
• Basically applied in government organizations
• Max Webber has view of that there is lack of trusting human judgment and emotions

Features-

• Division of work
• Administrative hierarchy
• Rules and regulation
• Impersonal conduct
• Official conduct

Formal environment Feature of Classical Thought-

• It assumes organization as a machine and workers as equipment
• Workers are motivated only through monetary incentive
• Focus on formal working condition
• Rational behavior of human being

• Neo-Classic Thought-

Hawthorne Experiment

• When the approach given by classical thinkers adopted in Hawthorne plant of western electric company (Chicago) in 1920.
• But this approach did not give any expected results
• For solving this puzzle company took help of Elton Mayo (psychologist)
• In November 1924 a group of researchers lead by Elton Mayo and William Dickson to conduct research for solving the puzzle which between 1924-1932

Ø Experiment-

• Illumination experiment
• Relay assembly test room experiment
• Bank touring observation room experiment
• Mass interview program

Ø Conclusion-

• It is also known as Situational and Spontaneous Theory
• It is improvement over system theory
• It advocates specific spontaneous response to specific problem in specific situation
• No universal principal are applied to solve managerial problem
• Organisation is a social system including different interactive parts.
• Informal group have their informal leaders who affect their performance.
• Output level of the worker not decided by psychological capacity but social capacity.
• Non monetary incentives also affect the performance of the workers.
• Worker do not behave as individual at work place but as a member of group.
• Workers developed their informal channel of communication.
• Workers prefer employee oriented supervision.

Human Relation Approach-

• Human being is not only economic man but also social man.
  • They are also motivated through non monetary incentive.
  • Output of workers is decided by social capacity.
  • Workers not always behave in rational way.
  • Key terms-
• Interpersonal relation
• Informal group
• Informal communication etc

Behavioral Approach-

• Organization is a social and technical relation.
  • Human being has different types of needs which affect their behaviour.
  • Work should not be super imposed but self realized.
  • Democratic value given due importance by management.
  • Key terms-
• Motivation
• Leadership
• Communication

Ø  Criticism

1. Unrealistic relation/assumptions.
2. Over focus on Psychology.
3. Wrong relation between happiness and productivity.
4. Wrong perception of conflict.
5. These factors do not focus on external factors.

Note: Chester.I.Barnard firstly explained organisation as a system.

• Modern Thought

System Theory-

• Organization as a system which has number of sub-system which are inter related.
  • Various sub system have their set of boundaries.
  • System may be open or close.

• System functions through input and output
  • Macro and micro level goals.

System

(Combination of sub-system/parts) M₁ + M₁ + M₁ + M₁ = M_a

Contingency theory/ situational theory-

• It is also known as situational & spontaneous theory.
  • It is improvement over system theory.
  • It advocates specific spontaneous response to specific problems in specific situation.
  • No universal principles, method or solution may be applied in all managerial problems.
  • Manager must scientifically analyse the specific problem and accordingly apply their knowledge, skills and techniques to solve the problem.

Quantitative theory-

• This theory focus on use of quantitative techniques for solving the problems.
  • In this theory the statistical & mathematical models are used to solve complex organisation problems.

Information processing theory-

• Organisation must effectively receive process and act on information to achieve performance.

Ecological theory-

• It presents the theory “environment” which is most important for organisation.
  • The survival and the failure of the organisation depend on environments.

Learning theory-

• According to the theory success of the organisation depends upon proactive mode and not on reactive mode.
  • The management must learn to anticipate possible future change in advance and accordingly take innovative measures.

Radical humanism (importance of workers) Theory-

• Success of organisation depends upon workers should be empowered and given significance control over their own environment in organisation.

Chaos theory-

• As per this theory prediction and control of system decide features of the organisation.
  • Chaos theory is the branch of mathematics.
  • This theory focus on the behaviour of dynamic system that is highly sensitive to initial condition.

Planning

• Planning is a process of making an effective plan.
• According to Koontz and O’ Donnell- planning is a decision in advance what is to be done in future. It bridges the gap between where we are and where we want to go.

·    Features of Planning-

• First function of management.
• Objective is the focus point of management.
• It always relate with future.
• It is an intellectual process.

• Continuous/Dynamic/Pervasive process.
• It has several components.

Ø Forecasting:

• It is the process of predicting, projecting and estimating future trend of relevant factor operating within and outside the organisation to make effective plan.
• Planning is a macro concept whereas forecasting is micro.

• Forecasting is done basically by middle and lower management whereas planning is done by top management.

Process of Planning—

• Setting of objectives
  • Establishing premises
  • Developing alternative
  • Evaluating alternative
  • Selecting and implementing
  • Follow up action
  • Feedback

     Types of Plan-

1.    On the Basis of Time-

• Long term plan
• Medium term plan
• Short term plan

2.    On the Basis of Level of Management-

• Top management plan
• Middle management plan
• Lower management plan

3.    On the Basis of Use-

• Single use plan
• Standing / Continuous plan

4.    On the Basis of Approval-

• Formal plan
• Informal plan

5.    On the Basis of Scope-

• Micro plan ( doesn’t affect whole organisation )
• Macro plan

6.    On the Basis of Objective-

• Routine plan
• Emergency plan

7.    On the Basis of Nature-

• Reactive plan ( after facing problem )
• Proactive plan ( before facing problem )

Elements of Planning–

1)           Objective-

• centre of planning
  • These are the target or standard achievement which is to be attained.

2)            Policy-

• General guidelines to decision making in a repetitive situation.

3)            Procedure-

• Sequence of steps taken to complete a work.

4)            Methods-

• It is a sub procedure. It defines detail of how steps should be implemented.

5)            Rules-

• Specific statement tells about what should be done and what should not be done.

6)            Programme-

• Statement of chronological event with fine schedule.
  • It involves listing of activities necessary for achieving objective.
  • Deciding sequence of activities along with necessary resources and time schedule.

7)            Budget-

• Statement of expected income and expenditure for future period.
  • It expect in quantitative resources.

8)            Strategy-

• Formulation of course of action in the light of competitive course of action.

MBO (Management by objective)

• The term MBO refers by authors as- Henry Feyol, L.F.Urwick & Alfred Slone.
  • This concept is detailed by Peter.F.Drucker in his book- The Practice of Management in 1954.
  • He is known as Father of MBO.
  • G.S.Ordioni make this concept popular.
  • MBO is also known as-
• Management by goal
• Management by results
• Management by purpose
• Management by control
• Management by work, planning & review.

Ø  MBO= agreed objective+ agreed plan+ agreed performance

• FEATURES:
• Objectives are decided at Micro and Macro level.
• Standard time fixed for achievement of objectives.
• Feedback of performance on regular basis.
• Focus on self control and self motivation.( Y theory of MC Greeger)
• Preference to decentralisation
• Good performance promptly rewarded.
• Chronic defaulter is suitably punished.

Decision Making

Decision making refers to selecting best alternative for solving problem. It is a process, technique of identifying and analyzing problem, developing          possible     alternative,          selecting    and   executing best alternative, and getting feedback for solving problem.

Feature of Decision Making-

1. It is a selective process
   1. It is an intellectual process
   1. It is a means not end
   1. It s an universal activity
   1. Continuous activity
   1. Affected by situation and affected the situation
   1. It may be positive or negative

Process-

1. Identification of problem
2. Analysis of problem
3. Development of possible alternative
4. Selection of best alternative
5. Implementation of selected alternative
6. Getting feedback

Models of Decision Making-

Economic men model- has complete rationality. Have full information and knowledge of all alternative.

Administrative men model- have limited rationality and also limited information.

Types of Decision-

1. Strategic and routine decision
2. Major and minor decision
3. Organizational and personal decision
4. Programme and non-programme
5. Individual and group

Technique of Decision Making

Brain Storming Technique- discussion a problem face to face with open mind by a group of person to arrive at a consensus situation

Nominal Group technique- considering a problem face to face by writing the situation individually on a piece of paper by selected executive and then discussing each solution one by one

Delphi technique- sending the detail of a problem and then obtaining the opinion and judgment again and again from a selected isolated experts

Synetics – discussing a problem before a group of selected person experts with a special request to think and develop ideas of creative and innovative nature and arriving at a consensus solution through discussion

peration research technique- quantities research Game theory
Queuing theory Decision tree theory
Limbering programming
Programme evaluation and review technique critical path method

ORGANISATION

Organization is a group of person who are co-operating under the direction of leadership for achievement of common goal- R.C. Dovis Organization is the structure of relationship by which an enterprise is bound together of the framework in which individual efforts is cooperated- Koontz & o’ Donnell

Points-

• Group ore created on the basis of homogeneous work
• It may be vertical and horizontal
• It work on principle of unity of direction
• It focus on specialization of work
• It do not work automatically
• These are created deliberately and consciously

Process of Organization-

1. Determination of activity
2. Grouping of activity
3. Allocation of group of activity
4. Delegation of authority
5. Developing and coordinating relationship

Principles of Organization-

1. Clarity and unity of objective
2. Division of labour
3. Unity of command
4. Unity of direction
5. Scalar chain
6. Span of management
7. Parity between authority and responsibility
8. Effective communication system
9. Principle of exception
10. Principle of flexible
11. Principle of dynamism
12. Principle of balance

Forms of Organization-

·          Line Organization-

1. It is used in military organization
2. It is also known as vertical organization
3. It is simplest and oldest form o organization
4. No supportive and service providing unit are there
5. There are two types of line organization- pure line organization and departmental line organization
6. Possibility of behaving in autocratic style

7.       Types: 2

1. Pure line organisation
2. Departmental line organisation

·    Line and Staff Organization-

1. It is modify form of line organization to reduce the burden of line executive
2. Also known as line activity, staff activity and core activity

• Staff are appoint to advice and assist the line executive
• Line executive are not bond to accept the suggestion of staff
• Staff have neither authority nor responsibility and they are not responsible for anything happen
• Appointment of staff that assist the line executives in performing of their work by providing supportive and advisory services.

Staff personnel

• Personalised staff
• Officer or special duty
• Personal assistant
• Personal secretary

Ø Specialised staff

1. CA
2. CS
3. Advocate
4. Welfare officer
5. Legal advisor

Ø Generalised staff

1. Customer relationship manager
2. Quality improvement manager
3. Resource & devotement manager

Functional Organization

1. This form removes the drawback of line and staff organization
2. There is no use of unity of command but followed diversity of command.
3. Specialization increase the work based on function and not on department
4. In this staff have authority and responsibility with concern work

• This concept is given by F.W Taylor

• Planning should be separated from doing.

• Authority is based on nature of function and operation and not limited to particular department.

• Suitable only for large organisation.

·    Community Organization-

1. Organization with temporary and permanent purpose
2. Most democratic form of organization
3. Created to take decision on consensus basis
4. Committee has two or more persons has a chairman
5. Decision in committee is taken on common / conscious basis

·       Types of committees:

1. Permanent & temporary committee
2. Executive & advisory committee
3. Formal & informal committee

•Project Organization-
1.Every project is headed by project manager
2.Organize for completation of different project of the organization
3.Every project have their separate fund men and material
4.Suitable for organization which have few project but larger in nature

•Mixed Structure-
1.Also known as grid structure
2.Combination of flat and tall structure
3.Mixture of project and functional organization

·    Boundary Less Structure-

1. It is also known as free form of organisation, autocratic organisation, naturalistic organisation.
2. This concept has been emerged during World War 2, when adhoc military teams were used to be created for specific mission and after completion of stipulated / specified task the team work dissolves.
3. This structure eliminates organisational charts, chain of command, and span of control and replaces departments with empowered teams.
4. It focuses on cross hierarchical teams, participative decision making & 360 degree performance appraisal.

Types of organisation:

§ On the basis of functions:

1. Economic organisation-

TATA,BATA,BHEL,HCL,DLW,SBI,LIC,GIC ETC

• Religious organisation- temples, mosques, church, gurudwara etc
• Security organisation- BSF,CRPF, STF,RPF,BDS,POLICE ETC
• Educational organisation- school, collage, university, tech.institution, research bodies etc
• Cultural organisation- ICSR, BCCI, HFI, LION’S CLUB etc.

§ On the basis of primary beneficiary:

1. Mutual benefit organisation- trade union, student union, political parties, religious organisation etc.

• Business organisation- partnership, sole trade, HUF, company etc.

• Service organisation- School, college, hospital etc.
• Common welfare organisation- military, police, fire- brigade, paramilitary force, central and state government agencies, municipality etc.

·    Key points

• Begins with identification of major activities and classification of those activities.
• Departmentation may be on many bases.
• Dynamic process.
• Main object is to improve efficiency.
• May be horizontal or vertical.
• It follows the unity of command.

·    Basis of departmentation

• Departmentation by function (production, finance, marketing etc)
  • Departmentation by product (A,B,C etc)
  • Departmentation by process ( weaving, printing etc)
  • Departmentation by customer ( age, income, gender etc)
• Departmentation by territory, place, location (branches, zone, offices etc)
  • Departmentation by time (shifting or 24*7)
  • Departmentation by numbers (post office, banking etc)
  • Composite departmentation
  • Power- inside
  • Authority- positional, institutional, organisational Influence- The ability of a person to change the attitude and behaviour of another person.

Power, Authority and Delegation of Authority

Power- It is the capacity or ability of person to get things done from others in spite of their unwillingness or resistance
Power is created by oneself from within authority can be delegation but power cannot be delegated
Sometimes it is also called as informal authority to influence other
It may be organizational as well as personal Higher the dependency greater the power
It may be negative or positive It may or may not be legimate It cannot be applied in isolation
Greater the dependency, greater the power

Note- authority can be delegated but power cannot be delegated

Types of Power- According to S.P Robbins:
1.Formal Power-
Coercive power- based on physical sanctions which creates fear, generate high resistance
Reward power- based on ability to reward others, generate lesser resistance
Legitimate power- based on acceptance of power of other to obligate. It is broader than coercive and reward power.

Information power- based on control over information

2.Personal Power-
Expert power- based on an individual knowledge and skills etc. Referent power- based on identification with person Charismatic power- based on magical personality of a person
Formal power is created by the organisation but personal power is created by personal traits.

Types of Power- According to S.P Robbins:
1.Formal Power-
Coercive power- based on physical sanctions which creates fear, generate high resistance
Reward power- based on ability to reward others, generate lesser resistance
Legitimate power- based on acceptance of power of other to obligate. It is broader than coercive and reward power.

Information power- based on control over information

2.Personal Power-
Expert power- based on an individual knowledge and skills etc. Referent power- based on identification with person Charismatic power- based on magical personality of a person
Formal power is created by the organisation but personal power is created by personal traits.

Authority-
Positional power
Legitimate power
Institutional power

It is institutional or positional right to give order and making it mandatory for subordinate to comply with it. If failing they are liable to punish.

Authority is given by somebody from outside Authority can be delegated
Flow of authority from top to bottom Authority is formal in nature
Authority is always related to some responsibility Maximum at top and minimum at bottom.

Source of authority/ origin point of authority-
1.Traditional theory/ formal authority theory- created by supreme position.
2.Acceptance theory- created by lowest position.
3.Competence theory- created by competency of person.

Delegation of Authority-

Transfer of authority only to the immediate subordinate by the superior so that he could concentrate on other important assignment.

Elements of Delegation of Authority-
1.Authority
Top to bottom
Transferred
Right to take action, decision.
Power to take decision

2.Responsibility
Top to bottom
Assumed
Assignment of obligation or work
Obligation to perform task

3.Accountability
Top to bottom
Created on non fulfilment of work
Answerable for work

Superior sacrifice subordinate gain
Subordinate work on behalf of superior.
Subordinate not responsible for end result but accountable for his performance.
In delegation of authority only authority is transferred not the position.
Delegation of authority is made by superior in a hierarchical order. Superior cannot transfer any such authority which he does not have.
It begins with transfer of authority Sufficient authority is granted

Responsibility related with work to be performed

Accountability related with the result of work problem

Differences

Responsibility	Authority	Accountability
it is obligation to perform duty.	it is right to give order for its compliance.	It is obligation to rely for end result.
is       derived from work.	is       derived from responsibility.	is derived from both
first step of DOA	second step of DOA	third step of DOA
is       assumed or assigned.	am transferred.	is imposed.
is not delegated.	is delegated.	is not delegated.

Span of Management

“Ideal span of management throughout the organization facilitates to make centralization or decentralization”.

Ideal number of immediate subordinates under a supervisor effectively manage

Also known as- span of management, span of control, span of authority, span of managerial responsibility.

Determination of Span of Management- Classical Approach-

1. In 1920– Sir Ian Hamilton
2. Did the study on military organisation
3. Commissioner officer (3 to 6) subordinates
4. Non commissioned officer (15) subordinates

2.       1933- V.A Gracunas

• Published an article on- Relationship in organisation

• Formula– style of relationship:
• Direct single relationship- n
• Direct group relationship- n (2n-1-1)
• Cross relationship- n (n-1)
• Total relationship: n [2n/2+n-1]

Higher level management-6 subordinate: 222 relation
Lower level management- 20 subordinate: 10486140 relation

3.1951- Prof. R.C Davis
Executive span- 3 to 9
Operative span- 30

4.1956- L.F Urwick
Higher level- 4
Lower level- 8 to 12

Centralization and Decentralization

• Centralisation of authority at top level in few hands.

Expansion of authority at middle and lower level at department and organisation level.

• Importance of superior increases. Importance of superior decreases.
  • Importance of subordinates decreases. Importance of subordinates increases.
  • Suitable in small organisation, indiscipline staff, in crisis situation, effective control and communication system.

Suitable for big organisation, discipline staff, effective control and communication system.

Note: when company converts its decentralisation into centralisation it is called- Recentralisation

Delegation of authority and Decentralisation

• Narrow concept Broad concept
  • Short term Long term
  • Individual (related to superior and immediate subordinate) Related to department and organisation.
  • DOA is not based on decentralisation Decentralisation is based on DOA

Staffing
“In mathematical terms, staffing is all about adding new staff, deducting unwanted staff, dividing staff as per requirement of jobs and multiplying their knowledge and skills.

Staffing is a base of HRM

Staffing is directly related with the person It affect other managerial activity

Scope & process of staffing:-
1.Procurement and Placement- HR planning
Recruitment Selection Placement Induction Orientation
2.Training and Development- Training Executive development program Transfer
Promotion Demotion
Organizational change Organizational development

3.Evaluation and Compensation- Performance appraisal
Wages and salary administration Fringe management
4.Integration and Management- Integration
Maintenance Labour welfare
5.Routine and Non-Routine Separation- Layoff
Refreshment Retirement

Staffing Function-
Human resource planning Recruitment
Selection Placement Induction Training

HR planning:
Also known as manpower planning Also called gateway of staffing
It is thinking in advance about the quality and quantity of HR needs of the organisation

Process-
Analysis of organisational plan Estimating future HR requirements Estimating future supply of HR
Comparison of estimated demand & supply and tracking out deviation
Formulating and implementing action plan Taking remedial action
It has been qualitative and quantitative aspect.

Recruitment-

After HR planning the process of recruitment is initiated Searching perspective employees for the organization and encouraging them to apply for the position
Recruitment may be three types-

I.Planned recruitment
II.Unexpected recruitment
III.Anticipated recruitment:

•It is linking activity between employee and employer
•It is a positive function
•It is a two way process
•It create large part of candidate

Source of Recruitment:
a)Internal source (with in organisation):
•Promotion
•Demotion
•Transfer
•Retrenchment
•Retirement
•Dependent of employee

b)External sources (outside the organisation)
•Employment exchange
•Advertisement
•Technical college and universities
•Recommdation of personal employees
•Former employees
•Employees of competitor
•Casual applicants
•Retired military personnel
•Labour contractor
•Factory gates

Promotion :
Wet- monetary incentive and perquisites
Dry- non increment in salary and perquisites
Employment exchange:

Establish link between job seeker and job provider. (Employment exchange act 1959)
Techniques of recruitment:
Direct recruitment
Indirect recruitment
Third party recruitment
Internet recruitment

Selection-

When the process of recruitment is over the process of selection begins It is the process of choosing the most suitable candidate out of pool of candidate
Giving employment to the deserving candidate
It is also the process of matching the qualification of applicants with the job recruitment
It is a evaluation tool Accepted group Rejected group
Note-
Recruitment- positive process Selection- negative process

Recruitment & Selection

Positive process Negative process
Recruitment proceed selection Selection succeed recruitment
Recruitment does not result in contract of service Selection leads to contract of service
Recruitment involves searching

Selection involves comparison and choice
Recruitment begins with inviting the applicants and end with receiving the application
Selection begins with screening the application and end with final approval of selection by higher authority

Process of selection:
Checking of application
Conducting written test:

general knowledge and basic written test
specific knowledge test
psychological test
aptitude test
dexterity test
achievement test/proficiency test
personality test
conducting preliminary interview
conducting group discussion
conducting interview
conducting medical examination
checking of reference
getting approval for appointment

Interview: Interview is the process of face to face interaction between employer and perspective employee wherein both the party evaluate each other to take a final decision regarding employment.

Types of interview:
informal interview
formal interview
patterned/structured/directed/guided/pre-planned interview
non structured/non planned/non directed interview
depth interview
walk in interview
stress interview
broad/panel interview
exit interview

Placement-
Putting the right man at the right job
Placement is the process of assigning specific job to each one of selected candidate

It involve- assigning a specific rank and responsibility to new candidate It is matching recruitment of job with the qualification of candidate.

Induction-
It is meant for introducing new employee about the organization its environment, important feature of job and superior, peers and subordinate with whom he has to work
Assimilation, indoctrination

Orientation-
It is the process of welcoming socialization
It is held for new and existing both the employees Induction is for new employees
Induction relate with new recruits and orientation relate with in case of promotion and transfer

Training-
Adding new knowledge, skill in person
It fill the gap between job requirement and present competence of employees
It is never ending process

Differences-

Training v\s Education

Training	Education
Narrow term	Broad term
Specific term	General term
Applied and practical	Pure and theoretical
Short duration	Long duration
job orientation	person orientation
Quick and apparent result	Delayed          and   in apparent result
Skills	Knowledge

Training v/s Development

Training	Development
Employees	manager
Short duration	Long duration
Technical and mechanical	Conceptual and philosophical
Non-managerial	Managerial function
Specific job related skill	Total personality Development
External motivation	Internal motivation
Reactive	Proactive
Current need	Future need

HRM and HRD-

HRM	HRD
Re-active function	Proactive function
improves efficiency and administration	develop total organization and its culture
consider the responsibility of HR manager	consider the responsibility of all managers
focused improved satisfaction and moral is result of improve function	consider the improved performance

Types of Training:

On the basis of level of management
Training for higher level manager
Training for middle level manager
Training for supervisor
Training for skill/unskilled employees

On the basis of objective
Induction training
Specific training
Promotional training
Refresher training
Behavioural retraining
Safety and discipline training

On the basis of time
Short term
Medium term
Long term

On the basis of place of training:
• On the job
Coaching
Job rotation
Internship/apprentionship
Committee assignment

Off the job

Vestibule training
Conference method
Lecture method
Case study method
Role playing method
T group/ sensitive training
Training by training process outsousourcing center
E training method
Career planning: process of achieving career goal and individual capabilities with the opportunities for their fulfilment.
Man power planning: man power planning provides valuable information for career planning
Succession planning: process of ensuring to a qualified person are available to key managerial position whenever vacant position in the organisation due to untimely dealth, firing, retirement etc.
Career planning covers all level of employees
Succession planning covers higher level of executives
Six sigma : introduced by Motorola corporation, it improve the quality and reduce the cost to increase the consumer satishfctipon
Bench marking: developed by Xerox Corporation, it is the process of identifying, studying and building best practice in industry to match the best competitors.
Kaixen: continuous improvement with the innovation of everybody in the organisation as to generate greater value to customer
It is the process oriented in the place of result oriented
TQM (total quality management): it is the part of corporate strategy and the process of improvement in all aspect of organisation.
Empowerment: it means allowing a person to run the show by himself, so that employees become self directed and self control

Empowerment actioned by subordinates and excercise self control.
Performance appraisal: man to man rating, rating score, t is systematic, periodic and impartial rating of employee’s performance in matter to his present job & potential for better job.
Methods of Remuneration to Workers- Time Wage Method-
Wages= time speed on work* per unit wages
Piece Wage Method-
Number of unit produced*rate per unit Incentive Wage Method-
1.Halsey premium method
2.Rowan wage method
3.Merrick differential piece rate method
4.H.L Gantt wage method
5.Emerson efficiency plan
6.Sent present bonus plan
7.Benelux paint premium plan
8.Balance or debt method

Higher level management-6 subordinate: 222 relation
Lower level management- 20 subordinate: 10486140 relation

3.1951- Prof. R.C Davis
Executive span- 3 to 9
Operative span- 30

4.1956- L.F Urwick
Higher level- 4
Lower level- 8 to 12

• Job analysis: It is the process of deciding and study the task which comprises the job, the methods, equipement use and skill and attitude require for successful performance of job.
• Job: It is a group of task, position including same duty, responsibility, knowledge and skill as well as definite title and is different from other job.
• Job family: It implies a similar type of job.
• Job classification: It means grouping of job into certain category based on same characteristics.
• Job evaluation: It means determine the worth of job for an organisation by comparing with other job within the organisation and job market outside.
• Job description: a statement of task.
• Position description: Duties involved in a job.
• Job specification: A statement of minimum qualification required for a job.
• Job duty and responsibility is the heart of job description.
• Job design: It is the process of designing content of job in terms of duties, responsabilities, procedure, relationship etc.

• Job rotation: shifting of employees from one job to another without change in job.
• Job enlargement: It is the process of increasing the scope of job b adding more tasks in it.
• Job enrichment: It involves designing a job in such a way which provides employees greater autonomy for planning and controlling his own performance.
• Employees move from one job to another within the organisation through transfer, promotion, demotion, internal mobility.
• Employees leave the organisation due to recognition, retirement and termination is called external mobility.
• Transfer: It refers to horizontal or lateral movement of an employee from one job to another without change in status and pay scale n organisation.
• Promotion: It ever stop advancement of employee to higher post including greater responsibility, status and pay scale, upward movement, hierarchal order, wet promotion.
• Upgrading: it means movement of employees with higher pay scale without change in job.
• Demotion: It implies assignment of job of lower rank with lower pay and lower status.
• Resignation: It is voluntary separation initiated by employee himself employees may reason on different cases.

v Retirement:

• Compulsory: after attaining specific age
• Voluntary/pre matured: when an organisation wants to cut down its operation or to loss forever it may give employee an option with a certain minimum service for humus amount, it is called golden shake hand scheme.
• Lay off: It is temporary removal of employee from the pay roll due to circumstances beyond the control of employment.
• Retrenchment: It is a permanent termination of employee from the pay scale.
• Dismissal: Terminating the employee by the way of punishment mis conduct, unsatisfactory performance.

Directing

Process of giving instruction, supervise the performance, give guidance and inspire to work with their best ability to achieve organisation goal. Elements of directing:

• Order/instruction
• Supervision
• Guidance
• Inspiration/motivation

Techniques of direction:

• Auto critic (only give order)
• Democratic (both order and supervision)
• Free rein (free to employees)

MOTIVATION
Latin word- movers- to move Idle person convert ideal person
Impossible goal- I am possible goal
Motivation means encouraging somebody for putting his best possible effort
It is a psychic force that derive on individual toward goal realization The epic centre of motivation is need
The effect of motivation on the whole body of person not only the part of body
Only human being can be motivated Motivation- goal directed behavior Motivation is different from morale
Morale is a mental state which indicates willingness to work or not to work, motivation is a mean to affect morale
Need is natural & biological aspect of individual
Satisfaction: it is contentment experience of individual which derive out of need fulfilment.
Three things arises because of non fullfffillment of need: Flight: People who quit the job
Apathy: depression, lack of interest
Aggression: harm themselves, surrounding with their behaviour

Incentives: it is the mean of motivation.

Types:
On the basis of pressure:
Positive
Negative
On the basis of use of money:
Monetary
Non monetary
On the basis of number
Individual
Group

Theory of Motivation-
Oldest theory – Carrot & Stick theory Background of common sense
Scientific management- 1900 F.W. Taylor
Introduced differential piece wage system & think human being are money minded
Hawthorne experiment- 1920- Elton mayo
Introduced the concept of human relation and ignore the above concept & highlight people have social and egostic needs which motivate them Need hierarchy theory- 1943- Abraham h. Maslow
Two factor theory- 1959- Fredrick Herzberg Theory X and Theory Y- Douglas Megregar Three need theory- D.C. McClelland
E.R.G theory- around 1970- Clayton alderfer
Theory Z- William Ouchy ( American scholar) (1980) Expectancy theory- V. Vroom (1960)
Performance satisfaction theory- Prater and Lawler Equity theory- Stacy Adam (1963)

Carrot Stick Theory-
Carrot-
Enthusiasm Reward Satisfaction Less effective

Stick-
Fear Punishment Dissatisfaction More effective

Abraham Maslow Theory-
Given around 1943 Focus on need
According to Maslow need Need is epic point of motivation Needs are-
1.Psychological need
2.Safety need
3.Social need
4.Esteem need
5.Self actualization need
This theory is not based on empirical need
There is no direct relation between need and behavior

McClelland Theory-

three need theory

Full name David McClelland
Psychological professor at Howard university Need-
Need for achievement Need for power
Need for affiliation
This theory helps to understand relation between need and job satisfaction
Herzberg Two Factor Theory-
Motivation hygiene theory Dual structure theory
He conducted research 200 account amount and engineer at (USA)

They based on imperial study conducted around 200 accountant and engineers working in an organization at Pittsburgh in USA Accountant and engineers were asked to give their experience about their job as when they feel exceptionally good and exceptionally bad and he got two job factor
Hygiene factor: dissatisfies, maintenance, job context, extrinsic factor which includes: salary, job security, working condition, company policy and administration, supervision, relation with superior, subordinates and peers, status and personal life etc
Motivational factor: satishfer, job content, motivational, intrinsic factor which include: growth, achievement, responsibility, work itself, advancement, recognition

Vroom Expectancy Theory-
Given by vroom Given in 1964
It explain motivation process
This theory has three elements to motivate- Motivation=expectancy +instrumentality +valence
If all three is high then motivation is high if all three are low motivation is low
Note :
Maslow theory is more appropriate for developing country like India
Herzberg theory is more appropriate for developed country

LEADESHIP
Leadership is an art, ability or a process of issuing instruction, influencing, guiding, inspiring, the followers to give their best performance willingly, completely and enthuastically for achievement of predefined goal.
Features-
Leader Follower
Focus on inspiring
Inter personal relation between leader and follower Mutually accepted goal
Willingly cooperation

Continuous process Different style of leadership
Types of Leaders-
According to Alfred and Beatty-
Autocratic
Democratic
Intellectual
Institutional
Pervasive
Creative

Style of Leadership-
On the Basis of Motivation
1.Positive leadership style
2.Negative leadership style

On the Basis of Decentralization of Authority-
1.Autocratic
2.Democratic
3.Free rein/laisez faire/ permissive

On the Basis of Supervision-
1.Employee oriented
2.Production oriented

Theory of Leadership-
Traditional Traits-
1.Great man theory-
Leaders are not born made
the qualities are god gifted carried in their genes

2.Trait theory- Given by Bernard
Modified version of great man theory

CONTROLLING
Controlling means keeping check on the activities performing in the organization.
Features of Controlling-
It is the last function of management Universal function
Continuous function Positive force Executive process Forward looking
It is means not end Based on planning

Process-
According to Knootz and O’ Donnell-
Establishing standard
Measuring performance with standard Corrective variation from standard

Technique of Controlling-
Budget
Personal observation Statistical data
Ratio analysis Internal audit Self control
MIS (management information system) BEP analysis/ cost volume profit analysis PERT
CPM MBO HRA
Special report

BEP Analysis-
It helps in understanding and controlling the relationship between cost volume and profit on each other

PERT	CPM
program         evaluation         review technique	critical path method
also known as network analysis, network planning, scheduling method	also    known     as     technical      of peration research
was developed by US navy in 1958 for successfully completing its project related to nuclear and submarine missile	develop by E.I. DuPont and Remington rand corporation used for scheduling maintenance
there are three phase of PERT- o Project planning phase Project scheduling phaseEvent controller phase	Estimated normal time
More focus on time dimension of project	Focus on cost dimension of project
Used for 1 time project	Used for repetitive project

Quality Control-
Statistical quality control Inspection control
Quality control through quality circle
Inventory Control- ABC Analysis-
A – high volume low number
B – average volume average number C- low value high number

COMMUNICATION

Communication is a process of sending, receiving, and understanding of information and anything between two and more parties.
involve at least two parties is never ending process

Process-

Sender Message Encoding Media Channel Receiver Decoding Feedback

Message is converted into words, figures, diagrams, or gesture known as encoding
Encoded message can be sent in verbal, written, visual, audiovisual, or internet form
Channel through with message would be conveyed as- letter, slides, etc.
Giving meaning to the received message is decoding

Types of Communication-
1.On the Basis of Authority-
Formal communication Informal communication
2.On the Basis of Area-
External communication Internal communication
3.On the Basis of Direction-
Downward communication- from superior to subordinate
Upward communication- from subordinate to superior

Grapevine-

Horizontal communication- with the person of similar rank or position
Diagonal communication- when no principal of scalar chain is followed

Made between person not on official but on personal basis communication
is informal communication and may flow in any direction

There are 4 types of grapevine communication-
Single stand- one person passes message to second person and second person to third in a sequel Gossip- particular person passes message to large
number of his known person who is interested in news Probability- any person passes the message to any person on random basis
Cluster- it is made on selective basis as a person passes message to few selected person and some of such receivers pass it to their selected person

On the Basis of Media-
Written communication Oral communication Visual communication
Audio-visual communication Internet based communication

Barriers to Communication-
Semantic Barriers-
Wrongly expressed message Symbols with different meaning Faulty translation
Unclearfied assumption Use of technical language

Psychological barriers-

Immature evaluation Communication distract
Loss by transmission and poor relation Lack of attention
Less grasping power

Organizational Barriers-
Organizational rules and regulation policies Complex organizational structure
Lack of facilities
Improper maintenance of communication

Personal Barriers-
Body language
Seniority related obsolete

Other Barriers- Noise/time/distance Overload of information Cultural background
Modern mechanical equipment

KEY POINTS-
Formal leader- Autocratic type Informal leader- Democratic type
Liker’s four management system of leadership given by- Resins linker
Managerial grid/leadership grid theory of leadership
Given by R.R. Blake and J.S. Mouton They identified 5 extreme behavior-
1,9 style called impoverished – low concern for people and low concern for production
1,9 style called country club- high concern for people and low for production
5,5 style called middle road- middle path for production and people
9,1 style called authority compliance/ task based- high concern for production and low for people
9, 9 styles called team based- high concern for people and production both.