MPP
UNIT- 1INTRODUCTION Q1) Define Management.A1) Management is defined as an act of managing people and their work with the aim of achieving a common goal by using the organization’s resources. It is the joint efforts of a group of people who use their skills and knowledge in running the complete system of the organization. It is a function, a process, a discipline, an art and much more. “Management is an art of getting things done through others.” Management is to plan, organize, direct and control the resources of the organization for accomplishment of common objectives or goals. It involves proper utilization of resources like material, money, machinery, methods, manufacturing and marketing. The knowledge of management theory and practice enables managers to take more practical view about organizational and social problems and to find out their effective solution. According to Taylor, “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.” According to Lawrence, “Management is the accomplishment of results through the efforts of other people.” According to Henry Fayol, “To manage is to forecast and to plan, to organize, to co-ordinate and to control.”Thus, it may be concluded that management plays a vital role in improving the standard of living of the people in the society by developing an ideal organizational structure and making economic use of available resources. Q2) State the nature of management.A2) Management has the following nature:1. Management is goal oriented- Management is concerned with achieving specific goals and objectives. The success of management is measured by the extent to which the goals and objectives are achieved. 2. Management is associated with group efforts- The business comes into existence with certain objectives which are to be achieved by a group as a whole. Management involves getting things done by, with and through the efforts of group members. It coordinates the activities and acts of its members towards a common goal. 3. Management is intangible- It is an unseen force. Its presence is evident from the result of its efforts. 4. Management involves decision making- Decision-making is an important part of modern management. Rational or sound decision making is considered as a primary function of management. 5. Management is an art as well a science: Management has the features of art and also science. Like an art, it requires skills and knowledge in order to be able to manage an organization. Also, like a science, management requires specialized knowledge, principles and practice for being successful in its endeavors. It is however not pure science like physics and chemistry. 6. Management is getting things done through others- A manager plans activities and goals of the organization and gets them done through subordinates. 7. Universal Process: Management is applicable in all organizations. Without effective management, the goals of the organisation cannot be achieved.8. Profession: Management is a profession as managers require specialized skills and knowledge and formal training methods in order to be appointed as a manager in an organization. 9. Process: The management method incorporates a range of activities or services directed towards specific goals. Q3) What are the objectives of management?A3) Management brings together the 5 Ms viz. Men, Material, Machines, Methods and Money. It is a result oriented activity which focuses on achieving the desired output. The main objectives of management are discussed below:1. Optimum utilization of resources- The most important objective of management is to use various resources of the enterprise in the most economic way so as to avoid wastages. The proper use of men, materials, machines, and money helps a business to earn sufficient profits and to satisfy various stakeholders. 2. Growth and development of business- By proper planning, organisation and direction etc., management leads a business to growth and development. It helps the business in expanding profitably. It provides a sense of security to the employers and employees. 3. Better quality goods- The aim of sound management is to produce better quality products at minimum cost. 4. Ensuring regular supply of goods- Another objective of management is to ensure regular supply of goods to consumers. It checks the artificial scarcity of goods in the market, thus keeping the prices of goods within permissible limits.5. Promotion of research and development- Management undertakes research and development activities to take lead over its competitors and meet uncertainties. Thus, it provides the benefits of latest research and technology to the society. 6. Minimize risk- Though the exact future cannot be predicted, yet on the basis of previous experience and existing circumstances, management tries to prepare the organization for future contingencies, thus minimizing the element of risk. Q4) Discuss the significance of management.A4) Management plays a vital role in an organization. Its significance may be studied as under:Achieving Group Goals: Management helps in the collaboration and coordination of individual efforts so as to accomplish individual targets together with the group goals. Increases Efficiency: Management improves productivity by managing resources in a reliable conceivable way in order to decrease cost upscale potency. Smooth operation of business: Management ensures smooth operation of business through sound planning, organization, direction and effective control. Adjustment with change: Management ensures adaptation of the organization and its working in all changing situations. Achieving personal objectives: Management promotes leadership and provides motivation to employees to operate effectively in order to accomplish their personal aims while working together towards the organizational goals. Development of Society: Management helps in the enhancement of community by manufacturing reliable and quality goods, establishing employment opportunities and developing innovative technologies. Q5) Explain the management process.OR Explain the functions of management.A5) Management is described as a social process. It is a dynamic process consisting of various elements and activities. These activities are common to every manager 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, and to control”. Whereas Luther Gullick 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 and B for Budgeting. But the most widely accepted are functions of management given by Koontz and O’Donnel iwhich are Planning, Organizing, Staffing, Directing and Controlling. For theoretical purposes, it may be convenient to separate the functions of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other, affecting the performance of the rest. Let us discuss the functions of management in brief. 1. PlanningPlanning is the basic function of management. Planning involves determining future courses of action to achieve desired goals. According to Koontz, “Planning is deciding in advance- what to do, when to do & how to do. It bridges the gap from where we are and where we want to be”. A plan is a future course of action. Thus, planning is a systematic thinking about different ways and 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. It helps in avoiding confusion, uncertainties and doubts, risks, wastages etc.2. OrganizingOrganizing is the process of defining and grouping of activities of the entire process and establishing the authority and responsibility relationship among them. It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of 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”. Thus, organization involves determining and providing resources to the organizational structure. Organizing as a process involves:• Identification of activities.• Classification of grouping of activities.• Assignment of duties.• Delegation of authority and creation of responsibility.• Coordinating authority and responsibility relationships. 3. StaffingAccording to Kootz & O’Donell, staffing is filling and keeping filled, positions in the organization structure through defining work-force requirements, appraising, selecting, compensation and training.” Staffing has assumed greater importance in the recent years due to advancement of technology, increased size of business, complexity of human behavior etc. The main purpose of staffing is to put the right man on the right job, i.e. square pegs in square holes and round pegs in round holes. Staffing involves:• Manpower Planning• Recruitment, Selection and Placement.• Training and Development.• Remuneration.• Performance Appraisal.• Promotions and Transfer. 4. DirectingDirection is called management in action. Planning, organizing and staffing are mere preparations for doing the work while direction actually initiates the work. Direction is that aspect of management which deals directly with influencing, guiding, supervising and motivating subordinates for the achievement of organizational goals. Direction has the following elements:• Supervision• Motivation• Leadership• CommunicationSupervision- implies overseeing the work of subordinates by their superiors. It is the act of watching and directing work and workers.Motivation- means inspiring, stimulating or encouraging subordinates to perform with zeal. Positive, negative, monetary, non-monetary incentives may be used for this purpose.Leadership- may be defined as a process by which managers guide and influence the work of subordinates in desired direction.Communication- is the exchange of information, experience, opinion etc. from one person to another. It is a bridge of understanding between people. 5. ControllingIt implies measurement of accomplishment against the standards and correction of deviation (if any) to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformity with the standards set. An efficient system of control helps in predicting 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 if necessary, to correct any deviation”. Therefore controlling has following steps:i. Establishment of standards of performance.ii. Measurement of actual performance.iii. Comparison of actual performance with the standards and finding out deviation, if any.iv. Taking corrective action. Q6) Differentiate between management and administration.A6) The major differences between management and administration are given below: 1. A group of persons, who are employees of the organization, is collectively known as management. On the other hand, administration represents the owners of the organization. 2. Management is an activity of business, generally at functional level, whereas administration is a high-level activity. 3. While management focuses on policy implementation, policy formulation is performed by the administration. 4. Functions of administration include legislation and determination. Conversely, functions of management are executive and governing. 5. Administration takes all the important decisions of the organization while management makes decisions under the boundaries set by the administration. 6. Management is a systematic way of managing people and things within the organization. Administration is the act of administering the whole organization by a group of people.7. Management can be seen in profit making organizations. Conversely, the administration is found in government and military offices, clubs, hospitals, religious organizations and all the non-profit making enterprises. 8. Management is all about plans and actions, but the administration is concerned with framing policies and setting objectives.9. Management plays an executive role in the organization. Role of administration is decisive in nature.10. Management focuses on managing people and their work. On the other hand, administration focuses on making the best utilization of the organization’s valuable resources. Theoretically, it can be said that both are different terms, but practically, we find that the terms are more or less same. A manager performs both administrative and functional activities. But we can say that administration is above management. Q7) What do you understand by the term Management Principles? Explain the 14 principles of management forwarded by Henri Fayol.A7) Principles are guidelines towards achievement of organizational objectives. Without principles of management, it would be difficult for an organization to achieve its aims or even coming up with aims.Henri Fayol, a French industrialist, is recognized as the Father of Modern Management. In the year 1916, Fayol wrote a book titled “Industrial and General Administration”. In this book, he has put forward a classical theory on the principles of management. It seeks to divide management into 14 principles that are universally accepted guidelines for managers to perform their job according to their responsibility. These management principles are explained below:1. Division of Work - According to this principle, the whole work is divided into small tasks. Work is divided and assigned to employees as per their specialized knowledge in a particular field. This increases productivity and the efficiency of labor. 2. Authority and Responsibility - According to Henri Fayol, there should be a balance between Authority and Responsibility. Authority means the right of a superior to give orders to subordinates, while responsibility is the obligation for performance. Authority and responsibility must always go together, as a pair. If the authority is more than responsibility then chances are that a manager may misuse it. If responsibility is more than authority, he may feel frustrated. 3. Discipline - It is obedience, proper conduct and respect of authority. It is essential for the smooth functioning of all organizations. Discipline may be Self-discipline or it may be Enforced discipline. To establish discipline, good supervision and impartial judgment are needed. 4. Unity of Command - This principle states that each subordinate should receive orders and be accountable to only one boss. If an employee receives orders from more than one superior, it is likely to create confusion and conflict in the organization. 5. Unity of Direction - All related activities should be put under one group. There should be one plan of action for similar activities, and they should be under the control of one manager. 6. Subordination of Individual Interests to the General Interest- The interest of one individual or one group should not prevail over the general good. The individual interest should be given less importance, while the general interest should be given the most importance. If not, the organization will collapse. 7. Remuneration- Remuneration is the price for services received. Pay should be fair to both the employee and the firm. If an organization wants efficient employees and best performance, then it should have a good remuneration policy, giving maximum satisfaction to both employers and employees. It should include both financial and non-financial incentives. It should be based on a systematic attempt to reward good performance.8. Centralization- In centralization, authority is concentrated in the hands of a few. However, in decentralization, the authority is distributed to all the levels of management. There should be a balance between centralization and decentralization. If there is complete centralization, then the subordinates will have no authority (power) to carry out their responsibility (duties). Similarly, if there is complete decentralization, then the superior will have no authority to control the organization. The degree to which centralization or decentralization should be adopted depends on the specific organization. 9. Scalar Chain- The chain of command or the scalar chain is the formal line of authority, communication, and responsibility within an organization. It is the line of authority from top to bottom of the organization. This chain implements the unity-of-command principle and allows the orderly flow of information from superiors to subordinates. Clear-cut chain of command ensures effective decision-making process and greater efficiency. 10. Order- There should be an order for all material/things and people in the organization. Order for things is called Material Order and order for people is called ‘Social Order’. Material Order refers to “a place for everything and everything in its place.” Social Order refers to the selection of the “right man in the right place”. Human and material resources must be in the right place at the right time, misplacement of which will lead to misuse and disorder in the organization. 11. Equity- The equity principle suggests that the managers/employers must be kind and equally fair to all subordinates/employees. Equity is a combination of kindness and justice. It creates a feeling of loyalty and devotion in the employees towards the organization. 12. Stability of Tenure of Personnel- Although it could take a lot of time, employees need to be given enough time to settle in their jobs. An employee needs time to learn his job and to become efficient. The employees should have job security because instability leads to inefficiency. 13. Initiative- Managers should encourage employees to make and execute their own plans. This is because an initiative gives satisfaction to the employees and brings success to the organization. It allows subordinates to chalk out a plan and do what it takes to make it work. 14. Esprit De Corps- Esprit de Corps means “Team Spirit”. Management should create unity, co-operation, and team-spirit among the employees. It is a great source of strength in the organization.These principles are guidelines for every management function. The manager must refer and apply these 14 principles of management in order to reach the desired goals. Q8) Discuss the levels of management.A8) Most organizations have three management levels- Top-level management, Middle-level management and Lower-level management. The managers of these three levels are classified in a hierarchy of authority and perform different tasks. The three levels of management, which are common in every corporation, are discussed below. 1. Top-level ManagementTop-level Management consists of the decision-makers in an organization. Every member of this level is responsible for the direction and growth of the company. Sound top-level management basically defines the success and future of a company.Some of the top-level designations are –• Chief Executive Officer• Chief Marketing Officer• Chief Sales Officer• Chief Technology Officer• President• Managing Director• Vice-president• Chief Operating OfficerThe functions that these executives perform within an organization are–i. Top-level management is responsible for making plans and strategies for the business. They formulate the company’s vision and mission, which helps every employee and the customers understand the fundamentals of every business.ii. They design the functions and responsibilities of middle-level management. They assign tasks and set goals for employees.iii. Top-level management drafts the policy of the company.iv. They are solely responsible for the survival and growth of the organization as a whole. 2. Middle-level ManagementMiddle-level management consists of the heads of various departments in an organization. These executives act as a bridge of communication between top-level management and the lower level of management. They manage most of the executions and micro-management within an organization.Some designations and titles of mid-level management executives are –• Marketing Manager• Purchase Head• Sales Manager• Operations Manager• Branch Manager• Finance ManagerThe basic functions and responsibilities of middle-level executives are:i. To communicate the policies and the mission set by top-level management and maintain a healthy work environment.ii. To micro-manage the tasks performed by every member of the lower-level management coordinate between teams.iii. They are responsible for the performance of lower-level executives by motivating and encouraging them.iv. Middle-level management handles all the recruitments and allocations within a team. 3. Operational/Lower level ManagementOperational level management is responsible for managing the coordination between the operative workforce and middle-level management. They micro-manage specific tasks assigned to operative workers and manage teams. Operational level management has very few decision making powers and generally execute orders received from the middle-level management.Some of the standard designations of operational level management executives are-• Supervisor• Foreman• Clerk• Junior Managers• Inspectors• Sub-department executivesThe role of operational level managers is also crucial in the success of an organization but the difference is that they do not make critical decisions, and their efficiency and performance depend on middle-level management. Some of the essential functions of operational level management are –i. To communicate the challenges and grievances of operative workers.ii. They are responsible for training the workers and managing their progress.iii. They are responsible for maintaining healthy working conditions for workers and improving their efficiency.iv. They ensure optimum utilization of company resources.v. They help the middle-level management in assessing employee performance.These management levels help define authority and responsibilities within an organization. Every successful company is built on the hard work of executives and employees of these three levels, as a whole. Q9) Discuss the functional areas of management.A9) There are several functional areas of management which are to be looked after during any business operation. Some of the most important functional areas are briefly discussed as under: 1. Production Management:As far as manufacturing organization is concerned, production is a core function. The entire production activities are to be planned, organized, directed, coordinated and controlled. The production activities involve the following:i. Product designing.ii. Acquisition of materials.iii. Storage of materials.iv. Planning and controlling of factory operations.v. Repairs and maintenance.vi. Inventory and quality control.vii. Research and development. 2. Marketing Management:Marketing is the total system of planning, pricing, promoting and distributing products and services to the satisfaction of current and potential customers. Marketing is concerned with all those activities which enable the seller to transfer the title to the buyer. The various marketing activities are: i. Product Planning:It is concerned with the following-a. Deciding on the products to be manufactured.b. New product development.c. Product alternation.d. Product diversification.e. Product elimination.f. Branding.g. Packaging.h. Handling various phases in product life cycle. ii. Pricing:Price determination is yet another task of the marketer. Pricing is governed by a number of objectives like target, return on investment, maximizing market share, meeting competition, preventing competition, etc. There are different methods of pricing the product. Marketing management has to decide the right pricing method in the light of factors influencing pricing decisions. iii. Physical Distribution:it includes choice of channels of distribution, storage, identification of source of supply, transportation, location of warehouse decisions, movement of goods within the facility, etc. iv. Promotion:Marketer has to decide on the promotional measures which would stimulate demand for the products and to enhance the volume of sales. A number of tools used for promotion include advertising, personal selling, sales promotion and public relations. 3. Financial Management:The main focus of financial management is to manage financial resources of the organization. Finance is the life blood of an organization and is needed for carrying on business, achieving growth and development, and protecting its identity in the changing environment. It comprises the following:i. Estimation of funds required for the survival and growth of the business.ii. Calculation of cost of capital.iii. Mobilization of funds.iv. Determining capital structure.v. Determining the level of leverage.vi. Managing current assets.vii. Dividend decisions.viii. Selection of appropriate sources of funds.ix. Ensuring proper utilization and allocation of raised funds. 4. Human Resource Management:This involves planning, organizing and controlling the procurement, development, compensation and maintenance of human resources in an enterprise. It includes the following activities:i. Manpower planning.ii. Recruitment and selection.iii. Job analysis.iv. Training and development.v. Performance appraisal.vi. Compensation and promotion.vii. Employee welfare.viii. Maintenance of personnel record. 5. Office Management:Office management is the central point of the business management. In fact, all the activities, performance, directions and policy implementation are directed and controlled over this focal point. It manages and maintains all the records and accounts relevant to different sections and departments of the organization 6. Sales Management:Sales management includes the recruitment and selection of sales employees, their training, supervising their work and the evaluation of execution of work. Sales management is also an important part of business. It aims to formulate sales plans, policies and programmes and to determine simple and effective sales procedures. It also manages and develops sales promotion and advertising tasks etc. 7. Communication Management:According to Newman and summer – ‘Communication is an exchange of facts, ideas, opinions or emotions from one person to another.’ The communication management organizes a mutual process to make more reliable and integrated relations. 8. Environmental Management:It analyses and evaluates different roles of environmental factors and their effects on the working and performance of the business. It develops and manages various measures and devices to make better environmental situation. 9. Quality Management:Basically the concept of total quality is the notion that is essential in all the functions of business and its allied activities. It aims to manage specialization, raise productivity, better performance, create reliability in product and services, optimum utilization of resources and raise the level of customer- satisfaction etc. 10. Research and Development Management:With the emerging issues like innovations, changed environment, technological upgradation, professionalization, social values, service patterns and new behavioural approaches, there is a need to manage the research investigation and organise the developmental activities. 11. Purchase Function:Traditionally, purchasing is considered a part of the production function. But in big organisations, there may be a separate department to perform some complicated purchase activities such as inviting tenders, choosing the sources of supply, making transport arrangements and import of raw materials and machines and equipment. 12. Legal Function:In big organizations, a legal department may be organized to ensure rules and regulations and also to give advice to the management in case of disputes with the customers, suppliers and even government over various commercial matters. Q10) Why is management known as a universal phenomenon? Discuss.A10) Management is a universal phenomenon in the sense that it is a common and essential element in all enterprises. Every group effort requires setting objectives, making plans, handling people, co-coordinating and controlling activities, achieving goals and evaluating performance directed towards organizational goals.According to Koontz and O’Donnell,” Management fundamentals have universal application in every kind of enterprise and at every level of the enterprise.”According to C.Mc Millan and R.W. Gonzalez,” Management philosophy is culture-bound and it is not universally applicable. External forces affect management philosophy.” Some experts support the universality of management on the ground that whatever the situation and whatever the level of management, the management function is common. A set of common principles or a general theory of management underlies all organizations. F.W. Taylor said that the fundamental principles of scientific management apply to all human activities from our simplest individual acts to work of our great corporations.Arguments Against the Universality of Management • Differences in objectives:The objectives of business enterprises differ from those of religious, political and educational institutions. No individual can be an equally successful manager in academic, military and business organizations because the objectives that underlie each are different. • Differences in philosophies:The business organization has a different philosophy than non-business organizations. Even two business concerns may have different philosophies. These differences in philosophy exert significant influences on organization structure, communication patterns, and employees’ morale. As a result, a different type of management is required in each case. • Management is Culture-bound:The applicability of management principles is limited by a particular cultural situation. Winston Oberg feels that if the rules under which the manager operates are different in different cultures (countries) then it is useless to search for a common set of strategies of management.An analysis of the arguments for and against the universality concept explains that the science of management and its principles and function are universally applicable. Now, it is clear that the functions and principles of management are universal, but according to the nature, size and another background of organizations, their application will differ according to circumstances. Q11) Discuss the roles played by management. Also discuss the skills required by managers to play their role effectively.A11) The roles that a manager plays in the organization require some skills. These are the skills or qualities that an organization looks for in a person to assign him as a manager. Let us see and try to understand the skills required for managing an organization and its working.1. Technical Skills.2. Human Skills.3. Conceptual Skills.4. Interpersonal and Communication Skills.5. Decision-Making Skills.6. Diagnostic and Analytical Skills. Technical SkillTechnical skill is knowledge of and proficiency in activities involving methods, processes, and procedures. Technical skill is the ability to use the specialized knowledge, procedures, and techniques of a field of activities. Accountants, engineers, surgeons all have their technical skills necessary for their respective professions. Most managers, especially at the lower and middle levels, need technical skills for effective task performance. Human SkillsHuman skills refer to the ability of managers to work effectively with other people both as individual and as members of a group. Human skills are concerned with understanding of people. These are required to win cooperation of others and to build effective work teams. Conceptual SkillConceptual skill is the ability to see the “big picture,” to recognize significant elements in a situation and to understand the relationships among the elements. It is the ability to coordinate and integrate all of an organization’s interests and activities. It requires having the ability to visualize the enterprise as a whole, to envision all the functions involved in a given situation or circumstance, to understand how its parts depend on one another and anticipate how a change in any of its parts will affect the whole. A manager’s ability to think in the abstract and to view the organization holistically is important. Suggesting a new product line for a company, introducing computer technology to the organization’s operations, or entering the international market; for deciding this magnitude, a manager requires conceptual skill is his personality. Interpersonal and Communication SkillsCommunication skill for a manager is a must. The manager must be able to convey ideas and information to others and receive information and ideas from others effectively. A manager’s job is to control the subordinates and give high-level managers or administrators, information about what is going on. Communication skill enables a manager to perform them properly. Most of his time, a manager’s job is to interact with people inside and outside of the organization.Manager’s ability to communication with individuals and groups, controlling and motivation they are what Interpersonal and Communication skill are. A manager requires having an effective Interpersonal and communication skill to keep the responsibilities given to him. Decision-Making SkillIn simple words, a manager’s job is to make decisions that will lead the organization to the attainment of is goals. Decision making skill is the skill that makes a manager able to recognize opportunities and threat and then select an appropriate course of action to tackle them efficiently so that the organization can benefit them. Diagnostic and Analytical SkillsA good manager has diagnostic and analytical skill in his bag. Diagnostic skill refers to the ability to visualize the best response to a situation. Analytical skill means, the ability to identify the key variables in a situation. Manager’s diagnostic and analytical skills help him to identify possible approaches to a situation. After that is also helps a manager to visualize the result or outcomes of these approaches. This skill sounds similar to the decision making skill, but it is the skill required to make the decision. These are the skills an ideal manager must have. These skills are inter-related and irreplaceable. A manager is appointed for making a decision. So, to make the decision he or she needs to identify a situation which could be opportunities or threat. Conceptual knowledge is essential for this as it helps the manager has a complete understanding of the organization. A manager cannot decide without diagnosing and analyzing. Diagnosing and analyzing the situation is required to tackle a situation and for this needs information and resources. Collecting Information and gathering resources requires communication with colleagues at work and peoples outsides the organization. Persuading, leading, motivating is required and get the best out of them. A manager cannot just give decisions and sit in this office; he needs to have technical skills is for performing the task which was set by the decision. A good manager has all these skills, but it is not necessarily true that all of them are equally important or required for the assigned job or post of a manager. The relative importance of these skills of a manager depends on the manager rank of his in the organizational hierarchy.
0 matching results found