Principal of Managment

8/3/2019 Principal of Managment

1/24

SET: - 1

QUESTION: -1

What is modern management approaches?

ANSWER: -1 There are so many different types of modern management approaches.

Behavioral Approaches:

This approache is an improved and a more mature version of the human relations

approach to management. Douglas McGregor, Abraham Maslow, Kurt Lewin,Chester Barnard, Mary Parket Follett, are some of the foremost behavioral

scientists who made signal contribution to development of the behavioral

approache to management. These scientist were more rigorously trained in thevarious social science and use more sophisticated research methods.

Thus, these people came to be regarded as behavioral scientists rather then

members of the human relations school. The finding of these people hasenormously helped us in understanding organizational behavior.

An approach that recognizes the practical and situational constraints on human

rationality for making decisions.

Behavioral scientists attach great importance to participative and group decision

making. They are highly critical of the classical organization structures built on

traditional concepts and prefer more flexible organization structures.

Two major theorists, Abraham Maslow and Douglas Mcgregor, came forward

with ideas that managers found helpful.


2/24

Abraham Maslow:

He developed the theory of motivation that was based on three assumptions. First,

human beings have needs that are never completely satisfied. Second, human

action is aimed at fulfilling the needs that are satisfied at a given point in time.

Third, needs fit into a hierarchy, ranging from basic and lower level needs at the

bottom to higher level needs at the top.


3/24

Douglas McGregor:

He developed a concept of Theory X versus Theory Y dealing with possible

assumptions that managers make about workers. Theory X managers tend to

assume that workers are lazy, need to be coerced, have little ambition and are

focused mainly on security needs. Theory Y managers assume that workers do not

inherently dislike work, are capable of self control, have capacity to be creative

and innovative and generally have higher level needs. This approach helped

managers develop a broader perspective on the nature of workers and newalternatives for interacting with them.

Douglas McGregor's XY Theory, managing an X Theory boss, and William Ouchi's

Theory Z

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in

his 1960 book 'The Human Side Of Enterprise'. Theory x and theory y are still referred to
http://www.businessballs.com/mcgregor.htm#theory_z_william_ouchihttp://www.businessballs.com/mcgregor.htm#theory_z_william_ouchihttp://www.businessballs.com/mcgregor.htm#theory_z_william_ouchihttp://www.businessballs.com/mcgregor.htm#theory_z_william_ouchi


4/24

commonly in the field of management and motivation, and whilst more recent studies

have questioned the rigidity of the model, Mcgregor's X-Y Theory remains a valid basic

principle from which to develop positive management style and techniques. McGregor'sXY Theory remains central to organizational development, and to improving

organizational culture.

McGregor's X-Y theory is a salutary and simple reminder of the natural rules for

managing people, which under the pressure of day-to-day business are all too easilyforgotten.

McGregor's ideas suggest that there are two fundamental approaches to managing people.

Many managers tend towards theory x, and generally get poor results. Enlightened

managers use theory y, which produces better performance and results, and allows people

to grow and develop.

McGregor's ideas significantly relate to modern understanding of the PsychologicalContract, which provides many ways to appreciate the unhelpful nature of X-Theory

leadership, and the useful constructive beneficial nature of Y-Theory leadership.theory x ('authoritarian management' style)

The average person dislikes work and will avoid it he/she can.

Therefore most people must be forced with the threat of punishment to work

towards organisational objectives.

The average person prefers to be directed; to avoid responsibility; is relatively

unambitious, and wants security above all else.

theory y ('participative management' style)

Effort in work is as natural as work and play.

People will apply self-control and self-direction in the pursuit of organisationalobjectives, without external control or the threat of punishment.

Commitment to objectives is a function of rewards associated with their

achievement.

People usually accept and often seek responsibility.

The capacity to use a high degree of imagination, ingenuity and creativity insolving organisational problems is widely, not narrowly, distributed in the

population.

In industry the intellectual potential of the average person is only partly utilised.

Behavioral scientists are highly critical of these classical organization structureswhich are build around the traditional concepts hierarchical authority, unity of

command, line and staff relationships and narrow spans of control. They regard

the classical approach as highly mechanistic, which tends to degrade the human
http://www.businessballs.com/psychological-contracts-theory.htmhttp://www.businessballs.com/psychological-contracts-theory.htmhttp://www.businessballs.com/psychological-contracts-theory.htmhttp://www.businessballs.com/psychological-contracts-theory.htm


5/24

spirit. Behaviorists prefer more flexible organization structure and jobs build

around the capabilities and aptitudes of average employees.

Behavioral scientists attach great weight-age to participative and group decision-

making because it is felt that business problems are so complex that it is neither

fair nor feasible to make individuals responsible for solving them.

Behaviorists underline the desirability of humanizing the administration of the

control process and encouraging the process of self-direction and control insteadof imposed control.

Behavioral scientists consider organizations as groups of individual with certaingoals. They have, therefore, made wide ranging studies of human groups. Big nad

small.

They have studied such issues as why individual join groups, group size, structure

and process, group cohesiveness and so on.

To behavioral scientists, the realistic model of human motivation is complex man.This model suggests that differently to the same situation or react the tailor his

attempts to influence people according to their individual needs.

The behavioral approach tp organizational conflict and change is quite pragmatic.It recognizes that conflict is invisible and sometime is even desirable and should

technological and social aspects and that it is generally the social aspect of change

which people resist.

Quantitative Approach:

An approach that focuses on the use of quantitative tools for

managerial decision making.

The quantitative management viewpoint focuses on the use of

mathematics, statistics and information aids to supports managerial

decision making and organizational effectiveness. Three main

branches have evolved: operations research, operations

management and management information systems.

Operations Research:

o Operations Research is an approach aimed at increasing decision

effectiveness through the use of sophisticated mathematical models and

possibilities as they can accomplish extensive calculation. Some


6/24

operations research tools are linear programming, querying, waiting line,

routing and distribution models.

Operations management:

o Operation management is a field that is responsible for managing the

production and delivery function of an organizations products and

services. Operations management is generally applied to manufacturing

industries and uses tools such as inventory analysis, statistical quality

control, networking etc.

Management Information System:

o Management Information System refers to the designing and

implementing computer based information systems for use by the

management. Such systems turn raw data into information that is required

and useful to various levels of management.

Contingency Approach:

o A view point which believes that appropriate managerial action depends

on the peculiar nature of every situation.

o This approach is a viewpoint which argues that there is no best way to

handle problems. Managerial action depends on the particular situation.

Hence, rather than seeking universal principles that apply to every

situation, this theory attempts to identify contingency principles that

prescribe actions to take depending on the situation.

Systems Approach to management:

o Systems theory is an approach based on the notion that organizations can

be visualized as systems. A system is a set of interrelated parts that operate

as a whole in pursuit of common goals.

o Every system has four major components:


7/24

o Inputs are the various resources required to produce goods and services.

2. Transformation processes are the organization managerial and

technological abilities that are applied to convert inputs into outputs.

3. Outputs are the products, services and other outcomes produced by the

organization.

4. Feedback is information about results and organizational status relative

to the environment.

Resources: (1) Human (2) Materials (3) Equipment (4) Financial (5)

Informational

Managerial and Technological Abilities: (1) Planning (2) Organizing (3)

Leading (4) Controlling (5) Technology

Outcomes: (1) product and services (2) Profits and losses (3) Employee growth

and satisfaction.

Short answers

Question: - 1

Explain the role of Manager.

Answer:-

Managers just don't go out and haphazardly perform their responsibilities. Good

managers discover how to master five basic functions: planning, organizing,

staffing, leading, and controlling.


8/24

Planning:

o This step involves mapping out exactly how to achieve a particular goal.

Say, for example, that the organization's goal is to improve company sales.

The manager first needs to decide which steps are necessary to accomplishthat goal.

o These steps may include increasing advertising, inventory, and sales staff.

These necessary steps are developed into a plan. When the plan is in place,the manager can follow it to accomplish the goal of improving company

sales.

Organizing: After a plan is in place, a manager needs to organize her team andmaterials according to her plan. Assigning work and granting authority are two

important elements of organizing.

Staffing: After a manager discerns his area's needs, he may decide to beef up his

staffing by recruiting, selecting, training, and developing employees. A managerin a large organization often works with the company's human resourcesdepartment to accomplish this goal.

Leading: A manager needs to do more than just plan, organize, and staff her teamto achieve a goal. She must also lead. Leading involves motivating,

communicating, guiding, and encouraging. It requires the manager to coach,

assist, and problem solve with employees.

Controlling: After the other elements are in place, a manager's job is not finished.

He needs to continuously check results against goals and take any corrective

actions necessary to make sure that his area's plans remain on track.

All managers at all levels of every organization perform these functions, but theamount of time a manager spends on each one depends on both the level of

management and the specific organization.

Roles performed by managers

A manager wears many hats. Not only is a manager a team leader, but he or she is

also a planner, organizer, cheerleader, coach, problem solver, and decision maker

all rolled into one. And these are just a few of a manager's roles.

In addition, managers' schedules are usually jam-packed. Whether they're busywith employee meetings, unexpected problems, or strategy sessions, managers

often find little spare time on their calendars. (And that doesn't even include

responding to e-mail!)

In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a

set of ten roles that a manager fills. These roles fall into three categories:


9/24

Interpersonal: This role involves human interaction.

Informational: This role involves the sharing and analyzing of information.

Decisional: This role involves decision making.Table 1 contains a more in-depth look at each category of roles that help managers

carry out all five functions described in the preceding Functions of Managers

section.

TABLE 1 Mintzberg's Set of Ten Roles

Category Role Activity

Informational Monitor Seek and receive information; scan periodicals

and reports; maintain personal contact with

stakeholders.

Disseminator Forward information to organization members

via memos, reports, and phone calls.

Spokesperson Transmit information to outsiders via reports,memos, and speeches.

Interpersonal Figurehead Perform ceremonial and symbolic duties, such

as greeting visitors and signing legaldocuments.

Leader Direct and motivate subordinates; counsel and

communicate with subordinates.

Liaison Maintain information links both inside andoutside organization via mail, phone calls, and

meetings.

Decisional Entrepreneur Initiate improvement projects; identify newideas and delegate idea responsibility to

others.

Disturbance Take corrective action during disputes or
http://www.cliffsnotes.com/study_guide/Functions-of-Managers.topicArticleId-8944,articleId-8848.html#benowitz384xc01-tbl-0001http://www.cliffsnotes.com/study_guide/Functions-of-Managers.topicArticleId-8944,articleId-8848.html#benowitz384xc01-tbl-0001


10/24

Category Role Activity

handler crises; resolve conflicts among subordinates;adapt to environments.

Resource

allocator

Decide who gets resources; prepare budgets;

set schedules and determine priorities.

Negotiator Represent department during negotiations ofunion contracts, sales, purchases, and budgets.

People:Managers concentrate on strengths and make weaknesses irrelevant.

Discover what strengths each of the people you manage possess.

Place people where they are called on to employ those strengths and capitalize onthem.

Give people authority to completely own their responsibilities.

Place:Managers create great workplaces where people thrive.

Focus on creating an environment where rewarding work happens.

Continually work to remove obstacles, barriers, and excuses.

Be the steward of the organizational culture.

Mission:Managers get the work to make perfect sense.

Connect the work to be done with the meaning why.

Plan to succeed with a viable business model, so people always see realisticpossibility.

Encourage people to work on the enterprise with you, not just within it. Vision:Managers expect and promote the exceptional.

Never settle for mediocrity; champion excellence so people rise to the occasion.Lead, mentor and coach. Harness energy and drive action. Do with, not for.

Foster sequential and consequential learning so people continue to grow.

Q.3Skills needed by managers

Not everyone can be a manager. Certain skills, or abilities to translate knowledge

into action that results in desired performance, are required to help otheremployees become more productive. These skills fall under the following

categories:

Technical: This skill requires the ability to use a special proficiency or expertiseto perform particular tasks. Accountants, engineers, market researchers, and

computer scientists, as examples, possess technical skills. Managers acquire these


11/24

skills initially through formal education and then further develop them through

training and job experience. Technical skills are most important at lower levels of

management.

Human: This skill demonstrates the ability to work well in cooperation with

others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, andgenuine involvement in interpersonal relationships. A manager with good human

skills has a high degree of self-awareness and a capacity to understand or

empathize with the feelings of others. Some managers are naturally born withgreat human skills, while others improve their skills through classes or

experience. No matter how human skills are acquired, they're critical for all

managers because of the highly interpersonal nature of managerial work.

Conceptual: This skill calls for the ability to think analytically. Analytical skills

enable managers to break down problems into smaller parts, to see the relations

among the parts, and to recognize the implications of any one problem for others.

As managers assume ever-higher responsibilities in organizations, they must deal

with more ambiguous problems that have long-term consequences. Again,managers may acquire these skills initially through formal education and then

further develop them by training and job experience. The higher the management

level, the more important conceptual skills become.

Although all three categories contain skills essential for managers, their relative

importance tends to vary by level of managerial responsibility.

Business and management educators are increasingly interested in helping people

acquire technical, human, and conceptual skills, and develop specificcompetencies, or specialized skills, that contribute to high performance in a

management job. Following are some of the skills and personal characteristicsthat the American Assembly of Collegiate Schools of Business (AACSB) is

urging business schools to help their students develop.

Leadership ability to influence others to perform tasks

Self-objectivity ability to evaluate yourself realistically

Analytic thinking ability to interpret and explain patterns in information

Behavioral flexibility ability to modify personal behavior to react objectively

rather than subjectively to accomplish organizational goals

Oral communication ability to express ideas clearly in words

Written communication ability to express ideas clearly in writing


12/24

Personal impact ability to create a good impression and instill confidence

Resistance to stress ability to perform under stressful conditions

Tolerance for uncertainty ability to perform in ambiguous situations

Question 2: -

Explain the skills of manager

Answer:-

Management is a challenging job. It requires certain skills to accomplish sucha challenge. Thus, essential skills which every manager needs for doing a

better management are called as Managerial Skills.

According to Professor Katz, there are three managerial skills, viz.,

What makes a good manager? Innate traits or acquired skills? Assuming that amanager is one who directs the activities of other persons and undertakes the

responsibility for achievement of objectives through such efforts, successful

management seems to rest on three basic developable skills: technical, humanand conceptual. The relative importance of these three skills varies with thelevel of managerial responsibility.

Conceptual Skills

Conceptual skill is the ability to visualize (see) the organization as a whole. It

includes Analytical, Creative and Initiative skills. It helps the manager toidentify the causes of the problems and not the symptoms. It helps him to

solve the problems for the benefit of the entire organization.

This skill involves the ability to see the enterprise as a whole; it includesrecognising how the various functions of the organisation depend on one

another, and how changes in any one part affect all the others; and it extends

to visualising the relationship of the individual business to the industry, thecommunity, and the political, social and economic forces of the nation as a

whole.


13/24

The conceptual skill involves thinking in terms of the following: relative

emphasis and priorities among conflicting objectives and criteria; relativetendencies and probabilities (rather than certainties); rough correlations and

patterns among elements (rather than clear-cut cause-and-effect relationships).

Training can enhance previously developed conceptual abilities. In developingthe conceptual skill, some of the best results have been achieved through

"coaching" of subordinates by superiors. One way a superior can help "coach"

his subordinate is by assigning a particular responsibility, and then respondingwith searching questions or opinions, rather than giving answers.

Another excellent way to develop this skill is through trading jobs: by movingpromising young men and women through different functions of the business

but at the same level of responsibility. Special assignments, particularly the

kind which involve inter-departmental problems, can also help develop thisskill.

It helps the manager to fix goals for the whole organization and to plan for

every situation. According to Prof. Katz, conceptual skills are mostly requiredby the top-level management because they spend more time in planning,

organizing and problem solving.

Human Relations Skills

Human relations skills are also called Interpersonal skills. It is an ability towork with people. It helps the managers to understand, communicate and

work with others. It also helps the managers to lead, motivate and develop

team spirit. Human relations skills are required by all managers at all levels ofmanagement. This is so, since all managers have to interact and work with

people.

This refers to the ability to work with, understand and motivate other people;the way the individual perceives (and recognises the perceptions of) his

superiors, equals, and subordinates, and the way he behaves subsequently. The

person with highly developed human skills is aware of his own attitudes,assumptions, and beliefs about other individuals and groups; he is able to see

the usefulness and limitations of these feelings.

He is sufficiently sensitive to the needs and motivations of others in hisorganisation so that he can judge the possible reactions to, and outcomes of,

the various courses of action he may undertake.

Human skills could be usefully devided into

(a) leadership ability within the manager's own unit and


14/24

(b) skill in intergroup relationships. Experience shows that outstanding capability

in one of these roles is frequently accompanied by mediocre performance in the

other. Intragroup skills are essential in lower and middle management roles andintergroup skills become increasingly important in successively higher levels of

management.

To acquire the Human Skill, the executive must develop his own personal point of

view toward human activity so that he will

(a) recognise the feelings and sentiments which he brings to a situation,

(b) have an attitude about his own experience which will enable him to re-evaluate

and learn from them,(c) develop ability in understanding what others by their actions and words are trying

to communicate to him and

(d) develop ability in successfully communicating his ideas and attitudes to others.

The process of acquiring this ability can be effectively aided by a skilledinstructor through use of case problems coupled with impromptu role playing. It

is important that the trainee self-examines his own concepts and values, whichmay enable him to develop more useful attitudes about himself and about others.

Technical Skills

A technical skill is the ability to perform the given job. Technical skills help

the managers to use different machines and tools. It also helps them to usevarious procedures and techniques. The low-level managers require more

technical skills. This is because they are in charge of the actual operations.

The technical skill implies an understanding of and proficiency in a specifickind of activity, particularly one involving methods, processes, procedures, or

techniques; it involves specialised knowledge, analytical ability within that

specialty, and facility in the use of the tools and techniques of the specificdiscipline. Vocational and on-the-job training programmes largely do a good

job in developing this skill.

Apart from Prof. Katz's three managerial skills, a manager also needs

(requires) following additional managerial skills.

Communication Skills

Communication skills are required equally at all three levels of management.

A manager must be able to communicate the plans and policies to the workers.Similarly, he must listen and solve the problems of the workers. He must

encourage a free-flow of communication in the organisation.

Administrative Skills


15/24

Administrative skills are required at the top-level management. The top-levelmanagers should know how to make plans and policies. They should also

know how to get the work done. They should be able to co-ordinate different

activities of the organisation. They should also be able to control the full

organisation.

Leadership Skills

Leadership skill is the ability to influence human behaviour. A manager

requires leadership skills to motivate the workers. These skills help the

Manager to get the work done through the workers.

Problem Solving Skills

Problem solving skills are also called as Design skills. A manager should

know how to identify a problem. He should also possess an ability to find abest solution for solving any specific problem. This requires intelligence,

experience and up-to-date knowledge of the latest developments.

Decision Making Skills

Decision-making skills are required at all levels of management. However, it

is required more at the top-level of management. A manager must be able to

take quick and correct decisions. He must also be able to implement his

decision wisely. The success or failure of a manager depends upon thecorrectness of his decisions.

Relative Significance of Managerial Skills

Conceptual

Human

Technical

Conceptual

Human

Technical

Conceptual

Human

Technical *

Supervisorylevel

Middle mgmtlevel

Top mgmtlevel

Technical skills are not so important for the chief executives in large

organisations where such executives have extensive staff assistance andhighly competent, experienced technical operators are available. In smaller


16/24


17/24

Communication skills are required equally at all three levels of management. A manager must be able to

communicate the plans and policies to the workers. Similarly, he must listen and solve the problems of the

workers. He must encourage a free-flow of communication in the organisation.

5. Administrative Skills

Administrative skills are required at the top-level management. The top-level managers should know how to

make plans and policies. They should also know how to get the work done. They should be able to co-

ordinate different activities of the organisation. They should also be able to control the full organisation.

6. Leadership Skills

Leadershipskill is the ability to influence human behaviour. A manager requires leadership skills to motivate

the workers. These skills help the Manager to get the work done through the workers.

7. Problem Solving Skills

Problem solving skills are also called as Design skills. A manager should know how to identify a problem.

He should also possess an ability to find a best solution for solving any specific problem. This requires

intelligence, experience and up-to-date knowledge of the latest developments.

8. Decision Making Skills

Decision-makingskills are required at all levels of management. However, it is required more at the top-level

of management. A manager must be able to take quick and correct decisions. He must also be able toimplement his decision wisely. The success or failure of a manager depends upon the correctness of his

decisions.
http://kalyan-city.blogspot.com/2010/07/managerial-leadership-leader-qualities.htmlhttp://kalyan-city.blogspot.com/2010/07/managerial-leadership-leader-qualities.htmlhttp://kalyan-city.blogspot.com/2010/06/decision-making-process-in-management.htmlhttp://kalyan-city.blogspot.com/2011/08/what-is-decision-making-meaning.htmlhttp://kalyan-city.blogspot.com/2011/08/what-is-decision-making-meaning.htmlhttp://kalyan-city.blogspot.com/2010/07/managerial-leadership-leader-qualities.htmlhttp://kalyan-city.blogspot.com/2010/06/decision-making-process-in-management.htmlhttp://kalyan-city.blogspot.com/2011/08/what-is-decision-making-meaning.html


18/24

Question: - 4

Define the levels of Management in an Organization.

Answer:

The term Levels of Management refers to a line of demarcation between

various managerial positions in an organization. The number of levels in

management increases when the size of the business and work force increasesand vice versa. The level of management determines a chain of command, the

amount of authority & status enjoyed by any managerial position. The levels

of management can be classified in three broad categories: -

Top level / Administrative level

Middle level / Executory

Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managersat all the three levels is discussed below:


19/24

LEVELS OF MANAGEMENT

Top Level of Management

It consists of board of directors, chief executive or managing director. The top

management is the ultimate source of authority and it manages goals and policiesfor an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

Top management lays down the objectives and broad policies of the enterprise.

It issues necessary instructions for preparation of department budgets, procedures,

schedules etc.

It prepares strategic plans & policies for the enterprise.

It appoints the executive for middle level i.e. departmental managers.

It controls & coordinates the activities of all the departments.

It is also responsible for maintaining a contact with the outside world.

It provides guidance and direction.

The top management is also responsible towards the shareholders for theperformance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They

are responsible to the top management for the functioning of their department.

They devote more time to organizational and directional functions. In smallorganization, there is only one layer of middle level of management but in big


20/24

enterprises, there may be senior and junior middle level management. Their role

can be emphasized as

They execute the plans of the organization in accordance with the policies and

directives of the top management.

a. They make plans for the sub-units of the organization.

b. They participate in employment & training of lower level management.c. They interpret and explain policies from top level management to lower level.

d. They are responsible for coordinating the activities within the division or

department.e. It also sends important reports and other important data to top level management.

f. They evaluate performance of junior managers.

g. They are also responsible for inspiring lower level managers towards better

performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It

consists of supervisors, foreman, section officers, superintendent etc. According

to R.C. Davis, Supervisory management refers to those executives whose workhas to be largely with personal oversight and direction of operative employees.

In other words, they are concerned with direction and controlling function of

management. Their activities include

Assigning of jobs and tasks to various workers.

a. They guide and instruct workers for day to day activities.

b. They are responsible for the quality as well as quantity of production.

c. They are also entrusted with the responsibility of maintaining goodrelation in the organization.

d. They communicate workers problems, suggestions, and recommendatory

appeals etc to the higher level and higher level goals and objectives to theworkers.

e. They help to solve the grievances of the workers.

f. They supervise & guide the sub-ordinates.

g. They are responsible for providing training to the workers.h. They arrange necessary materials, machines, tools etc for getting the

things done.

i. They prepare periodical reports about the performance of the workers.j. They ensure discipline in the enterprise.

k. They motivate workers.

l. They are the image builders of the enterprise because they are in directcontact with the workers.


21/24

Question: - 2

Explain the Function of Management.

Answer:

Management has been described as a social process involving responsibility for

economical and effective planning & regulation of operation of an enterprise in

the fulfillment of given purposes. It is a dynamic process consisting of variouselements and activities. These activities are different from operative functions like

marketing, finance, purchase etc. Rather these activities are common to each and

every manger irrespective of his level or status.

Different experts have classified functions of management. According to George

& Jerry, There are four fundamental functions of management i.e. planning,

organizing, actuating and controlling. According to Henry Fayol, To manage is

to forecast and plan, to organize, to command, & to control. Whereas LutherGullick has given a keyword POSDCORB where P stands for Planning, O for

Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting& B for Budgeting. But the most widely accepted are functions of management

given by KOONTZ and ODONNEL i.e. Planning, Organizing, Staffing,

Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of

management but practically these functions are overlapping in nature i.e. they arehighly inseparable. Each function blends into the other & each affects the

performance of others.


22/24

Planning

It is the basic function of management. It deals with chalking out a future course

of action & deciding in advance the most appropriate course of actions for

achievement of pre-determined goals. According to KOONTZ, Planning is

deciding in advance - what to do, when to do & how to do. It bridges the gap fromwhere we are & where we want to be. A plan is a future course of actions. It is

an exercise in problem solving & decision making.

Planning is determination of courses of action to achieve desired goals. Thus,

planning is a systematic thinking about ways & means for accomplishment of pre-

determined goals. Planning is necessary to ensure proper utilization of human &

non-human resources. It is all pervasive, it is an intellectual activity and it alsohelps in avoiding confusion, uncertainties, risks, wastages etc.

Organizing

It is the process of bringing together physical, financial and human resources and

developing productive relationship amongst them for achievement oforganizational goals. According to Henry Fayol, To organize a business is to

provide it with everything useful or its functioning i.e. raw material, tools, capital

and personnels. To organize a business involves determining & providinghuman and non-human resources to the organizational structure. Organizing as a

process involves:

a) Identification of activities.

b) Classification of grouping of activities.

c) Assignment of duties.d) Delegation of authority and creation of responsibility.e) Coordinating authority and responsibility relationships.

Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancementof technology, increase in size of business, complexity of human behavior etc.

The main purpose o staffing is to put right man on right job i.e. square pegs in

square holes and round pegs in round holes. According to Kootz & ODonell,

Managerial function of staffing involves manning the organization structurethrough proper and effective selection, appraisal & development of personnel to

fill the roles designed un the structure. Staffing involves:

a) Manpower Planning (estimating man power in terms of searching, choose

the person and giving the right place).

b) Recruitment, selection & placement.c) Training & development.


23/24

d) Remuneration.

e) Performance appraisal.

f) Promotions & transfer.

Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes. It is considered life-

spark of the enterprise which sets it in motion the action of people becauseplanning, organizing and staffing are the mere preparations for doing the work.

Direction is that inert-personnel aspect of management which deals directly with

influencing, guiding, supervising, motivating sub-ordinate for the achievement oforganizational goals. Direction has following elements:

Supervision

Motivation

Leadership Communication

Supervision- implies overseeing the work of subordinates by their superiors. It isthe act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates withzeal to work. Positive, negative, monetary, non-monetary incentives may be used

for this purpose.

Leadership- may be defined as a process by which manager guides and

influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose ofcontrolling is to ensure that everything occurs in conformities with the standards.

An efficient system of control helps to predict deviations before they actually

occur.

According to Theo Haimann, Controlling is the process of checking whether or

not proper progress is being made towards the objectives and goals and acting ifnecessary, to correct any deviation. According to Koontz & ODonell

Controlling is the measurement & correction of performance activities of

subordinates in order to make sure that the enterprise objectives and plans desiredto obtain them as being accomplished. Therefore controlling has following steps:


24/24

Establishment of standard performance.

Measurement of actual performance.

Comparison of actual performance with the standards and finding out deviation if

any.

Corrective action.

Bibliography: -

Principal of Managment

Documents