UNIT I
Introduction
Concept of Management The management is a particular kind of movement fundamentally dependable to complete things through others. All administrative capacities are general and all chiefs in any field of human endeavors play out that common place administrative capacities independent of what they are overseeing. One approach to dissect the management is to think as far as what a supervisor does. Utilizing this methodology, we can show up at the management cycle which depicts crafted by any director. A portion of the basic meaning of the management given by popular essayists and masterminds are: According to Harold Koontz and Heinz Weihrich, Management is the way toward planning and keeping up a climate in which people, cooperating in gatherings, proficiently achieve chosen points. As indicated by Kreitner, "The board is the way toward working with and through others to accomplish authoritative goals by proficiently utilizing restricted assets in the evolving climate.
Significance of Management:
The management helps in accomplishing group objective. The management improves effectiveness by limiting the wastage of assets. The management makes a powerful association which adjusts the changing business climate. The management helps in accomplishing individual destinations. The board helps being developed of the general public. Significance of Management having perceived that administration is a general action that is basic to any association we currently analyze a portion of the reasons that have made administration so significant. The board helps in accomplishing bunch objectives. The board is required not for itself but rather for accomplishing the objectives of the association. The assignment of a chief is to provide a typical guidance to the individual exertion in accomplishing the general objective of the association.
Nature of management process:
Management is a process which brings the scarce human and material resources together and motivates people for the achievement of objectives of the organization. Management isn't a onetime act but an on-going series of interrelated activities. The sum of these activities is called as management process. It consists of a group of interrelated operations or functions necessary to attain desired organizational goals. A process is a systematic way of doing things. It’s concerned with conversion of inputs into outputs. An analysis of management process will enable us to understand the functions which managers perform.
Features of Management Process:
Management process is characterized by the subsequent features:
1. Social Process:
The entire management process is considered a social process as the success of all organizational efforts depends upon the willing co-operation of individuals. Managers guide, direct, influence and control the actions of others to attain stated goals. Even people outside the organization are influenced by the actions of managers.
2. Continuous Process:
The process of management is on-going and continuous. Managers continuously take up one or the opposite function. Management cycle is repeated over and once again, each managerial function is viewed as a sub-process of total management process.
3. Universal:
Management functions are universal in the sense that a manager has to perform them regardless of the size and nature of the organization. Each manager performs similar functions no matter his rank or position in the organization. Even during a non-business organization managerial functions are the same.
4. Iterative:
Managerial functions are contained within each other the performance of the next function doesn't start only when the earlier function is finished. Various functions are taken together. For instance, planning, organizing, directing and controlling may occur within staffing function. Similarly, organizing may require planning, directing and controlling. So all functions are often thought of as sub-functions of each other.
5. Composite:
All managerial functions are composite and integrated. There cannot be any sequence which may be strictly followed for performing various functions. The sequential concept could also be true in a newly started business where functions may follow a specific sequence but the same won't apply to a going concern. Any function may be taken up first or many functions may be taken up at the same time.
Classification of Management Functions:
Different authors have given different managerial functions. Henry Fayol was the first to define specific functions of management. In his words, “To manage is to forecast and plan, to organize, to command, to co-ordinate and to control.”
He has given the subsequent functions:
(i) Forecasting and planning.
(ii) Organizing.
(iii) Commanding.
(iv) Co-ordination.
(v) Control.
Luther Gulick used the word POSDCORB to explain various functions.
This initial describes the subsequent functions: Planning (P). Organizing (O), Staffing (S), Directing (D), Controlling (CO), Reporting (R) and Budgeting (B).
Ralph Davis gave three functions of management: Planning, Organizing and Control. He was of the view that command and co-ordination facilitate control so these should be a part of it.
Koontz and O’ Donnell have adopted the subsequent functions:
(i) Planning.
(ii) Organizing.
(iii) Staffing.
(iv) Directing and
(v) Controlling.
Key Takeaways:
Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange World of Organizations," in 1990.
The ten roles are:
The 10 roles are then divided up into three categories, as follows:
Interpersonal Category:
Informational Category:
Decisional Category:
Let's look at each of the ten managerial roles in greater detail.
Interpersonal Category:
The managerial roles in this category involve providing information and ideas.
Figurehead – As a manager, you have social, ceremonial and legal responsibilities. You're expected to be a source of inspiration. People look up to you as a person with authority, and as a figurehead.
Leader – This is where you provide leadership for your team, your department or perhaps your entire organization; and it's where you manage the performance and responsibilities of everyone in the group.
Liaison – Managers must communicate with internal and external contacts. You need to be able to network effectively on behalf of your organization.
Informational Category:
The managerial roles in this category involve processing information.
Monitor – In this role, you regularly seek out information related to your organization and industry, looking for relevant changes in the environment. You also monitor your team, in terms of both their productivity, and their well-being.
Disseminator – This is where you communicate potentially useful information to your colleagues and your team.
Spokesperson – Managers represent and speak for their organization. In this role, you're responsible for transmitting information about your organization and its goals to the people outside it.
Decisional Category:
The managerial roles in this category involve using information.
Entrepreneur – As a manager, you create and control change within the organization. This means solving problems, generating new ideas, and implementing them.
Disturbance Handler – When an organization or team hits an unexpected roadblock, it's the manager who must take charge. You also need to help mediate disputes within it.
Resource Allocator – You'll also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources.
Negotiator – You may be needed to take part in, and direct, important negotiations within your team, department, or organization.
Knowing the story behind the development of the management thought and the advancement of speculations is fundamental. In the event that you know about them, including the advancement that achieved the current practices in business, at that point you will have a superior comprehension of the board rules that can assist you with overseeing individuals all the more successfully. The fact of the matter is that a great deal has changed about administration. Accentuation on structure and authority is no longer as solid as it used to be before. Presently the attention is on representatives. Notwithstanding, there are hypotheses on the components that rouse representatives.
Classical and neo-classical system-
Classical Theory of Management :
The board is an efficient organization (cycle) of interrelated capacities. Formal schooling and preparing is stressed for creating the board aptitudes. Individuals are persuaded by financial additions. Stress was given to the conventional association structure. Numerous standards have been created for the rehearsing chief. Capacities, standards and aptitudes of the board are viewed as widespread.
Neo-Classical Theory of Management :
This hypothesis manages the human factor. Elton Mayo and Mary Parker Follett are the fundamental patrons of human relations approach. This methodology additionally causes 'Conduct Science Management' which is a further refinement of human relations approach.
1. Human Relations Theory: It has focused on individual conduct. This considers bunch struggle as a negative power that influences authoritative effectiveness. It sees the laborers as a 'Social Man'. It offers significance to formal association structure. It sees association as social framework. It doesn't give logical vision to contemplate human conduct. Self-course and restraint methods are utilized in a restricted degree. It grants collective choice creation somewhat just to the normal choices.
2. Behavioral Science Theory: It has focused on gathering conduct. This considers bunch struggle as wellspring of new and inventive thoughts. It sees the laborers as a 'Self-Actualizing Man. It stresses on similarly an adaptable association structure. It sees as socio-specialized framework. It gives logical comprehension of human conduct. Self-bearing and discretion procedures are utilized to build bunch proficiency. It empowers collective choice creation for both daily schedule and significant issues.
Contingency Approach :
The all inclusive cycle approach is the most established and one of the most mainstream ways to deal with the board thought. It is otherwise called the Universalist or useful methodology. As indicated by the all inclusive cycle approach general cycle approach.It requires a similar reasonable administration measure In the organization, all things considered, public or private or huge or little, requires a similar balanced cycle. The Universalist methodology depends on two fundamental suspicions. To begin with, in spite of the fact that the motivation behind associations may shift for instance, business, government, training, or religion and so forth A center administration measure stays as before over all associations. Fruitful chiefs, thusly, are compatible among associations of contrasting purposes. Second, the general administration cycle can be decreased to a bunch of isolated capacities and related standards. In 1916, at 75 years old, Fayol's work has left a perpetual blemish on 20th century the executives thinking. Fayol was initial an architect and later a fruitful head in an enormous French mining and metallurgical concern, which is maybe why he didn't turn to hypothesis in his spearheading the management book. Or maybe, Fayol was a chief who endeavored to interpret his wide managerial experience into viable rules for the fruitful administration of a wide range of associations.
1. Division of Work: Representatives spent significant time in various zones and they have various aptitudes. Various degrees of mastery can be recognized inside the information zones from generalist to expert. Individual and expert improvements uphold this. As per Hanery Fayol specialization advances proficiency of the labor force and builds profitability. Furthermore, the specialization of the labor force expands their precision and speed. This administration standard of the 14 standards of the executives is pertinent to both specialized and administrative exercises.
2. Authority and Responsibility: In request to complete things in an association, the executives have the position to provide requests to the representatives. Obviously with this position comes duty. As per Hanery Fayol, the going with force or authority gives the administration the option to provide requests to the subordinates.
3. Discipline: This rule is about dutifulness. It is frequently a portion of the fundamental beliefs of a mission of articulation and vision as great lead and conscious connections. This administration guideline is fundamental and is viewed as the oil to make the driving force of an association run easily.
4. Unity of Command: The administration standard 'Solidarity of order' implies that an individual representative ought to get orders from one administrator and that the worker is liable to that supervisor. In the event that assignments and related obligations are given to the representative by more than one supervisor, this may prompt disarray which may prompt potential clashes for workers. By utilizing this standard, the obligation regarding missteps can be set up more without any problem.
5. Unity of Direction: This administration guideline is about concentration and solidarity. All workers convey the very exercises that can be connected to similar targets. All exercises must be completed by one gathering that frames a group. These exercises must be portrayed in a strategy. The administrator is eventually liable for this arrangement and he screens the advancement of the characterized and arranged exercises. Center zones are the endeavors made by the representatives and coordination.
6. Subordinate Individual Interest: There are in every case a wide range of interests in an association. To have an association work well, Hanery Fayol demonstrated that individual interests are subordinate to the interests of the association. The essential spotlight is on the hierarchical targets and not on those of the person. This applies to all degrees of the whole association, including the chiefs.
7. Remuneration: Motivation and profitability are near each other to the extent the smooth running of an association is concerned. This administration rule of the 14 standards of the board contends that the compensation should be adequate to keep representatives inspired and profitable. There are two kinds of compensation specifically non-money related a commendation, more duties, credits and financial pay, reward or other monetary pay. At last, it is tied in with remunerating the endeavors that have been made.
8. The Degree of Centralization: Management and authority for dynamic cycle must be appropriately adjusted in an association. This relies upon the volume and size of an association including its progressive system. Centralization suggests the grouping of dynamic authority at the top administration. Sharing of experts for the dynamic cycle with lower levels is alluded to as decentralization by Hanery Fayol. Hanery Fayol showed that an association ought to make progress toward a decent equilibrium in this.
9. Scalar Chain: Hierarchy introduces itself in some random association. This shifts from senior administration to the most reduced levels in the association. Hanery Fayol "progression" the board rule expresses that there should be an away from in the territory of power. This can be viewed as a kind of the management structure. Every representative can contact a director or an unrivaled in a crisis circumstance without testing the pecking order. Particularly, when it concerns reports about cataclysms to the prompt directors/bosses.
10. Order: According to this guideline workers in an association must have the correct assets available to them with the goal that they can work appropriately in an association. Notwithstanding social request and duty of the supervisors, workplace must be protected, perfect and clean.
11. Equity: The administration standard of value regularly happens in the guiding principle of an association. As indicated by Hanery Fayol representatives must be dealt with sympathetic and similarly. Representatives must be in the ideal spot in the association to do things right. Administrators ought to oversee and screen this cycle and they should treat representatives decently and fairly.
12. Stability of Tenure of Personnel: This guideline speaks to sending and overseeing of faculty and this should be in offset with the administration that is given from the association. The executives endeavor to limit worker turnover and to have the correct staff in the perfect spot. Center zones, for example, successive difference in position and adequate improvement must be overseen well.
13. Initiatives: Hanery fayol contended that with this administration standard workers should be permitted to communicate groundbreaking thoughts. This supports interest and inclusion and makes added an incentive for the organization. Representative activities are a wellspring of solidarity for the association as per Hanery Fayol urges the workers to be involve and interested.
14. Esprit de Corps: This standard represents taking a stab at the inclusion and solidarity of the workers. Directors are liable for the improvement of spirit in the work environment; exclusively and in the territory of correspondence. Esprit de corps adds to the improvement of the way of life and makes an air of shared trust and comprehension.
CONCEPT:
Arranging is the principal the board work, which includes choosing previously, what could possibly be done, is it to be done, how it is to be done and who will do it. It is a scholarly cycle which sets out an association's destinations and creates different strategies, by which the association can accomplish those goals. Precisely, how to accomplish a particular objective. Arranging is only speculation before the activity happens. It encourages us to bring a peep into the future and choose ahead of time the best approach to manage the circumstances, which we will experience in future. It includes legitimate reasoning and objective management.
PROCESS OF PLANNING :
1. Perception of Opportunities: Perception of chances isn't carefully a portion of the arranging cycle. In any case, this consciousness of chances in the outside climate just as inside the association is the genuine beginning stage for arranging. It is essential to investigate conceivable future chances and see them plainly and totally.
2. Establishing Objectives: This is the second step in the arranging cycle. The major authoritative and unit destinations are set in this stage. This is to be accomplished for the long haul just as for the short reach. Objective determine the normal outcomes and show the end purposes of what can anyone do, the essential accentuation is to be set and what is to be cultivated by the different kinds of plans.
3. Planning Premises: After assurance of hierarchical destinations, the subsequent stage is setting up arranging premises that is the conditions under which arranging exercises will be attempted. Arranging premises are arranging suspicions the normal ecological and interior conditions.
4. Identification of Alternatives: The fourth step in arranging is to distinguish the other options. Different options can be recognized dependent on the hierarchical destinations and arranging premises. The idea of different choices recommends that a specific target can be accomplished through different activities.
5. Evaluation of Alternatives: The different elective strategy should be investigated in the light of premises and objectives. There are different methods accessible to assess choices. The assessment is to be done in the light of different variables. Model, money inflow and outpouring, chances, restricted assets, expected compensation back and so onward, the options should give us the most obvious opportunity with regards to meeting our objectives at the least expense and most noteworthy benefit.
6. Choice of Alternative Plans: This is the genuine purpose of management. An investigation and assessment of elective courses will reveal that at least two. Which is appropriate and advantageous and fit one is chosen.
7. Formulation of Supporting Plan: After planning the fundamental arrangement, different plans are determined in order to help the principle plan. In an association there can be different subsidiary plans like making arrangements for purchasing gear, purchasing crude materials, enlisting and preparing individual, growing new item and so forth these subsidiary plans are figured out of the essential or fundamental arrangement and perpetually needed to help the essential arrangement.
8. Establishing Sequence of Activities: After detailing essential and subordinate plans, the arrangement of exercises is resolved so those plans are placed without hesitation. After choices are made and arrangements are set, spending plans for different periods and divisions can be set up to give designs more solid importance for execution.
PLANNING TYPES:
Corporate, Operational, Functional and Proactive Planning!
I. Corporate Planning:
The term corporate planning denotes planning activities for the whole enterprise.
The basic focus of corporate planning is to determine the long-term objectives of the organisation as an entire .then to get plans to attain these objectives taking into mind the likely changes within the external environment (macro level). Corporate planning is usually carried out at the top level of management.
“Corporate planning includes the setting of objectives, organising the work, people and systems to enable those objectives to be attained, motivating through the planning process and thru the plans, measuring performance then controlling progress of the plan and developing people through better decision making, clearer objectives, more involvement and awareness of progress.” —David Hussey
Hussey has given a broad definition of corporate planning. It covers various functions of management besides defining planning. Corporate planning is that the total planning activities in the organisation and not the entire management functions.
“Corporate Planning is the continuous process of creating present risk taking decisions systematically and with the greatest knowledge of their futurity; organising systematically the efforts needed to carry out these decisions, and measuring expectations through organised, systematic feedback.” —Peter Drucker
The corporate planning activities are carrying out at the top level. They’re important for the success of the whole organisation. The highest management is liable for the formulation of such plans and is prepared according to the inputs that are given to them either from the environment or the lower levels in the organisational hierarchy. The plans are generally long term and are broad based.
The corporate planning is of two types:
i. Strategic Planning.
ii. Operational Planning.
Strategic Planning consists of the method of developing strategies to reach a defined objective. It sets the long-term direction of the organisation during which it wants to proceed in future. according to Anthony it are often defined as the “process of selecting the objectives of the organisation, on changes on these objectives and on the policies that are to control the acquisition, use and disposition of these resources.”
An assessment of available resources is made at the top and then things are planned for a period of time of upto 10 years. It basically deals with the entire assessment of the organisation, strengths capabilities and weaknesses and an objective evaluation of environment is formed for future persuits.
Examples of strategic planning in an organisation may be; planned growth rate in sales, diversification of business into new lines, sort of products to be offered then on. Strategic planning also involves the analysis of various environmental factors specifically with reference to how organisation relates to its environment.
The strategic planning may be carried out serial of steps that include the
1. Specifying Missions and Objectives.
2. Elaborate Environmental Scanning.
3. Strategy Formulation.
4. Strategy Implementation
5. Evaluation and Control
Strategic planning is of prime importance for any organisation as they might specify the other decisions that require to be taken.
II. Operational or Tactical Planning:
Operational planning, is also called tactical or short-term planning, usually, covers one year approximately . Operational planning involves the conversion of strategic plans into detailed and specific action plans. These plans are designed to sustain the organisation in its products Operational planning is done at the middle or lower level of management Operational planning are often defined as follows:
“Operational planning is that the process of deciding, the most effective use of the resources already allocated and to develop an impact mechanism to assure effective implementation of the actions so that organisational objectives are achieved.”
An Operational plan is an annual work plan:
It narrates short term business strategies; it explains how a strategic plan will be put into operation (or what portion of a strategic plan will be put into operation (or what portion of a strategic plan are addressed) during a given operational period (fiscal year).
These plans are to support strategic plans whenever some difficulty is faced in its implementation. Any changes in internal organisation or external environment need to be met through tactical plans.
For examples, there's sudden change in prices of products, difficulty in procuring raw materials, unexpected moves by competitors; tactical plans will help in meeting such unforeseen situations. The success of tactical plan depends upon the speed and adaptability with which management acts to fulfill sudden situation.
Operational planning is concerned with the efficient use of resources already allocated and with the development of a control mechanism to make sure efficient implementation of the action in order that business objectives are attained.
III. Functional Planning:
The planning that's made to make sure smooth working of the organisation taking into account the needs of each and every department. the aim of functional planning is to market standardised management practices for corporate functions within the department’s decentralised corporate management structure.
The following three basic activities need to be carried out in functional planning:
(1) Functional Guidance:
Managers must be told and guided what they must be doing to properly manage corporate functions within the enterprise.
(2) Goal Setting:
Certain quantifiable goals need to be set that would measure the effectiveness of the functional planning. Goals should be meaningful, achievable and measureable.
(3) Functional Assessments:
Functional assessment wraps up the functional planning process. Here the Comparison is formed between the goal setting and therefore the goal achievement. The functional assessment should have the subsequent characteristics:
(i) Substantiation:
Managers who are accountable for corporate functions must explain how resources and activities devoted to their function provide support to the achievement of the corporate priorities and functional targets.
(ii) Measure of Success.
Managers accountable for corporate functions must quantifiably measure the success in meeting goals identified in their functional guidance.
(iii) Foresight:
Managers should be in a position to identify developing gaps and risks faced in their respective functional areas, alongside recommendations to refill those gaps and risks.
(iv) Proactive and Reactive Planning:
Classification of planning into proactive and reactive is based on the organisation’s response to environmental dynamics. Planning is an open system approach and is affected by environmental factors which keep it up changing continuously. However, organisations response to those changes differs. based on these responses, planning could also be either proactive or reactive.
Proactive Planning:
It is based on the anticipation of the future outcomes and state of affairs that might affect the working of the organisation. Such a planning has got to be broad based, highly flexible and creative by nature.
The organisation that favours this type of planning often anticipates the future and takes necessary steps before the happening of the events. In India, companies like Reliance Industries, Hindustan Lever etc., have adopted this approach and their rate of growth has been much faster than others.
Reactive Planning:
As the name suggests, this type of planning isn't in the anticipation of the future but becomes active only the matter is confronted or has already occurred. this is merely the corrective action that's taken. This approach of planning is beneficial in an environment which is fairly stable over a long period of time.
(v) Formal and Informal Planning:
Formal Planning exists in the formal hierarchy of the organisation and is usually carried out in the stepwise process. it's according to the pre expressed policies and the rules of the organisation. This type of planning is completed at a large scale and relies on the logical thinking. the planning process that's adopted is documented, and regular.
Informal Planning is typically carried out in very small organisations where the formal organisation structure may or might not exist. The planning is typically intuitive in nature and is short termed. Since the environment for smaller organisations isn't complex, they do reasonably well with informal planning process.
(vi) Automated Planning:
Automated planning and scheduling may be a branch of AI that concerns the realisation of strategies or action sequences, typically for execution by intelligent agents, autonomous robots and unmanned vehicles. This sort of designing is generally found within the technologically advanced organisations.
Key Takeaways:
CONCEPT:
More than everything else, the capacity to make sound, convenient choices separates a fruitful director from a non-effective. It is the obligation of chiefs to settle on excellent choices that are acknowledged and executed in an ideal style. By all accounts the choices should be firm, guessed, unforeseen, adaptable, improved, affecting, intuitional, non-critical, objective, operational one. One of the main elements of a director is to take choices. Whatever an administrator does, he does through management.
DECISION MAKING PROCESS :
Identify the decision: The initial phase in creation the correct choice is perceiving the issue or opportunity and choosing to address it. Decide why this choice will have any kind of effect to your clients or individual representatives.
Gather information: Next, it's an ideal opportunity to accumulate data so you can settle on a choice dependent on realities and information. This requires making a worth judgment, figuring out what data is applicable to the current choice, alongside how you can get it
Identify Alternatives: Once you have an away from of the issue, it's an ideal opportunity to distinguish the different arrangements available to you. All things considered, you have various alternatives with regards to settling on your choice, so it is essential to concoct a scope of choices.
Weight of evidence: In this progression, you should assess for attainability, agreeableness and allure to realize which option is ideal. It very well might be useful to search out a confided in second feeling to increase another viewpoint on the current issue.
Choose among alternatives: When it's an ideal opportunity to settle on your choice, be certain that you comprehend the dangers associated with your picked course. You may likewise pick a mix of options since you completely handle all significant data and expected dangers.
Take action: Next, you should make an arrangement for execution. This includes recognizing what assets are required and picking up help from workers and partners.
Review decision: A frequently ignored yet significant advance in the decision making cycle is assessing your choice for adequacy. Ask yourself what you progressed admirably and what can be improved next time.
References-
