Management

MANAGEMENT
- No individual can satisfy his desires himself.

- Unites with fellow beings and work in organized group to
achieve what one cannot achieve individually.
- Management is essential part of any group activity.
- Management is the Primary force within the group which
tends to lead it toward the group goal.
- Management is required to plan, organize, coordinate and
control the affair of organization.
- Brings the human and material resources together and
motivate people for the achievement of the objectives.
- Wherever there is human activity, there is management.
copyright © Navin K Dev, DEI Technical College, Dayalbagh

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MANAGEMENT cont.
Management has been used in two sense:
i) Management as a noun
- when used as a noun, management refers to all those
persons who are concerned with getting things done
through others.
- all persons having supervisory responsibility over others
like, Board of directors, Managing director, General
manager etc.
ii) Management as a process
- Management when used as a process, refers to all that a
manager does.

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MANAGEMENT cont.
- Manager use the available resources efficiently.
- Functions like planning, organizing, staffing, directing,
coordinating and controlling fall under the process of
management.
Definition:
Management is the act of getting things done through and
with people in formally organized group.

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Levels of Management
- Levels involves persons arranged in series
- Levels of management suggest the arranged managerial positions in an
organization.
- No. of levels depends upon its size, technology and range of production
- Broadly there are two levels of management; administrative
management and operative management
Management
Administrative Operative
Management Management
Use of Implementation
Policy Planning
Various factors of
determination Production of production policies
Fixation of Directing
Standards operations
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Levels of Management cont.
- In real working it is difficult to separate out the
administration management and operative management
e.g. the director of a Co. involves in administrative management would
also like to see that the policies adopted are being implemented or not.
Therefore, the organisation is segregated into levels on the

basis of authority and responsibility.
i) Top Management
- consist of owners, Board of directors, Managing directors,
Chief executives and General Managers.
ii) Middle Management
- consist of functional heads, such as Production manager,
Marketing manager, Financial controller, and divisional
and sectional heads working under functional heads.
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iii) Lower Level or Operating Management
- consist of superintendents, supervisors and foreman
Functions of Top Management
(a) Determining goal and objectives of the enterprise.
(b) Framing the policies and making the plans to achieve the
objectives.
(c) Setting up an organizational framework.
(d) Assembling the resources of money, men, materials
machines and methods.
(e) Exercising effective control.
(f) Providing overall leadership.

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Functions of Middle management
- This level is concerned with the task of implementing the
policies and plans laid down by the top management.
- It works as a link between top and lower management.
Various function of middle management are:
(a) Interpreting the policies framed by the top management.
(b) Preparing organisation set up within their respective
department.
(c) Selecting suitable operative and supervisory personals.
(d) Assigning duties and responsibility for timely execution of
the plan.

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(e) Motivating personal to achieve higher productivity.
(f) Coordinating with other department so as to ensure a
smooth running of entire organisation.
(g) Collecting information and reports on performance.
(h) Reporting to top management.
Functions of Lower or operating management
(a) To plan day-to-day work within the goals prescribed by
higher management
(b) To issue orders and instructions for executing the work.
(c) To arrange material and equipment for the work force.
(d) To supervise and control the work and workers.

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(e) To advise and guide worker about the work procedure
and solving their problem.
(f) To maintain proper discipline in section.
FUNCTIONS OF MANAGEMENT
Henry Fayol, who born in Spain in 1841, father of principles
of management, described various functions of
management as:
(i) Planning (ii) Organizing (iii) Staffing (iv) Directing
(v) Coordinating and (vi) Controlling

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FUNCTIONS OF MANAGEMENT
1. Planning
Defined as:
- The determination in advance of a line of action by which
certain results are to be achieved.
- Planning is the deciding of a course of action required for
reaching organizational goals.
- The line of action is decided in advance so that actual
execution becomes easy later on.
Importance of planning
1. Facing complexities of modern business
- Business has become too complex

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FUNCTIONS OF MANAGEMENT cont.
- Uncertainty prevails due to short product life cycle varying
choice of customer.
- Planning is required to set objectives of each and every
person in the organization.
2. Face competition in the market
- Large scale and quality production has increased the
market beyond national boundaries
- To face competition within national and foreign producers,
enterprise require sound planning
3. Forewarn against business failure
- Business fails due to wrong planning
- Wastage of human and physical resources due to wrong
planning.
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4. Meeting changing situation
- Economic and political situations is fast changing
- Consumer has become more aware about the quality and
utility of various products.
- Business is required to adjust its working with needs of
situation.
- planning may help business to keep pace with changing
economic, social, legal and political environment.
5. Technological changes
- Technology is fast changing
- To minimize the adverse effect of the technological
changes, planning will be useful in arranging and
rearranging resources so that the business is able to
adjust itself. 12
Steps in planning process
1. Recognizing need of action
- awareness of business opportunities
- Present and future opportunities must be found so that
planning may be undertaken for them.
- Trend of economic situation should also be visualized
e.g. if thinking of the govt. is to develop rural areas as industrial
canters, a farsighted businessman will think of setting up units suitable to
that environment and will avail the facilities offered for this purpose.
2. Gathering necessary information
- Before actual planning is initiated, relevant data is
gathered.
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- The type of customer to be dealt with, the circumstances
under which goods are to provided, value of products to
customers etc. should be studied in detail.
3) Laying down objectives
- Objectives are the goals which the management tries to
achieve.
- Planning starts with determination of objectives.
- Objectives should be properly formulated and
communicated to all members of the organization.
4) Determining planning area
- Planning is done for uncertain future.

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- Although nothing is certain in coming period, but still
certain assumptions have to be made
- Forecasting is essential even if all may go wrong.
Forecasting are generally made for the following:
(a) the expectation of demand
(b) the likely volume of production
(c) the anticipation of cost and likely prices at which products
will be marketed.
(d) supply of raw material, labour etc.
(e) economic policies of the govt.
(f) consumer’s preference in multi-product industry.
(g) impact of technological changes.
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(h) sources of supply of funds.
- very necessary that the forecast be done with minimum error
possible.
5. Examining alternate course of action
- No. of ways doing a thing.
- Planner should study all alternatives and then finally should
select the best one.
6. Evaluation of action patterns
- After selection of course of action, evaluation of that action
be made on the basis of performance.
- the factors involved should be weighed against each other.
e.g. cost and service level contradict each other. An optimal level of each
should be found out.

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7. Determining secondary plans
- Once a main plan is formulated then a no. of supportive
plans are required
e.g. once a production plan is made then material requirement plans
are made, requirement of machinery is made, requirement of labour is
made etc.
8. Implementation of plan
- Plans are executed according to policies, procedures,
standards and budgets established by the organization

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2. Organising function
- Organising is concerned with developing a framework
where total work is divided into manageable components
in order to achieve goals
Principle of Organization
i) Principle of objective
- aims are set for which enterprise work
- a common goal is devised for business
- in absence of common aim, each department set up their
own goals and there is possibility of conflicting objectives.

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ii) Principle of specialization
- each individual should be assigned duty according to his
skill, education and qualification
- person should continue the work so long he gets
specialized in his work.
iii) Principle of coordination
- coordination of different activities is an important principle
of the organization
- in the absence of coordination, again there is a possibility
that each department set their own goal, leading to
conflicting objectives.

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iv) Principle of Authority and Responsibility
- Authority flows downward in an organization line.
- Every individual is given authority to get work done.
- Authority is delegated but the responsibility lies with the
man who has been given work.
- even superior who delegates authority is also not absolved
of his responsibility
v) Principle of definition
- the authority and responsibility of each individual should be
well defined.
- if duties are not clearly assigned, no one would be held
responsible.
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- relationship between different departments should be clearly
defined for smooth work.
vi) Span of control
- span of control means how many subordinates can be
supervised by a superior.
- too small will lead to non-utilization of full time and energy of
superior.
- too large will lead to difficulty in controlling.
Ideally at middle management no. is 4 and at low level it is
6 to 10, i.e. a manager can have 4 deputy managers and a
supervisor can have 10 workers.

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A researcher named V. A. Graicunas, wrote a paper in 1933.
He analyzed the nature of relationships a superior has to
undergo that effects span of control.
e.g. a superior Tom has two subordinates, Dick and Harry.
In first way Dick and Harry’s behavior as an individual towards Tom will be
different as in second case when Dick and Harry talk to Tom jointly. Thirdly,
in the absence of Tom, there is another relationship i.e., how Dick and
Harry react to each other, i.e., their decision may contradict to each other in
individual and jointly.
Therefore, for two persons span of control, there are six relationships to
handle.
2 – direct single relationship
2 – direct group relationship
2 – cross individual and group relationship.
Thus he found with 12 subordinates, the relations rises to 24,708.
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vii) Principle of balance
- only that much work should be assigned which can be
performed well.
- a dissatisfaction among workers would result if work is not
balanced.
viii) Principle of flexibility
- organization should be flexible to the changing situations
- everyday technology of production, marketing systems
changing
- the organization should be dynamic to cope with the
changing system and should adjust itself.

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ix) Principle of uniformity and unity of command
- distribution of work should be such that each incharge look
after his respective area only to avoid conflict and each
person should be answerable to one boss only to avoid
contradictory orders from different superior.
x) Principle of exception
- principle state that top management should not interfere in
day-to-day work of organization
- should leave routine things to lower level.
- should concentrate on policy and planning making.
xi) Principle of simplicity
- organization structure should be simple and understandable
by each person.
- the authority, responsibility and position of every person
should be made clear.
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xii) Principle of efficiency
- within minimum cost, organization should able to achieve
objectives.
- cost and revenues are pre-determined and performance
should be according to these goals.
- organization should enable the attainment of job
satisfaction to each employee.
xiii) Scalar principle
- principle refers to vertical placement of supervisors starting
from top and going to lower level.
- it is pre-requisite for effective and efficient organization.

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3. Staffing
- Every organization require no. of persons for taking up
different positions.
- Staffing is defined as manning the organization structure
through proper and effective selection of personal that fill
the roles* designed into structure.
* role means the person that suit the work in organizational
structure.
Difference between organizing and staffing is:
organizing means  creation of job for a particular work and recruiting is
done.
staffing means  making a people suitable for job

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Process of staffing
- purpose is to employ most suitable and competent persons
as per the requirements of the organization.
Following process is followed:
i) Manpower planning
- manpower needs is estimated in advance, keeping in view
production schedules, demand forecasts, market schedules
etc.
ii) Recruitment
- process of searching prospective employee.
- before recruitment, position that are to be filled are
determined.
- recruitment may be from within the organization and from
outside sources.
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iii) Selection
- process of selecting suitable person for different jobs.
- applications of candidates are scrutinized so that unsuitable
persons are not called for the interview.
iv) Placement and orientation
- placement is positioning of selected candidates for which
he/she is appointed for.
- Orientation means introducing the new employee to the
environment, colleagues, rules, regulations and policies of the
organization.
v) Training
- Training is meant to improve the skills and knowledge of
employee
- generally a new entrant is attached to senior person for
sometime. 28
- a well trained worker improves his efficiency and productivity.
- A formal training will avoid the risk of trial and error while
putting onto work directly and will minimize the cost of
wastage.
vi) Performance appraisal
- method to assess the working of a person. To know how well a
person is performing.
- has he been able to fulfill the requirements at his position level
- done by immediate superior.
- deficiencies are also mentioned for improvement.
vii) Promotion
- process of giving higher responsibility, better status, more
emoluments etc.

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- basis are performance, his outlook, capabilities of taking
responsibilities, seniority etc.
- promotions helps in retaining capable employee in the
organization.
viii) Compensation
- matching of salary to the contribution of employee is a difficult
task of staffing process.
- wage and salary should be such that both employer and
employee should be satisfied.
- salary should commensurate to contribution of employee.
- management has to fix reasonable rates of compensation so
that it does not adversely effect any party.
ix) Separation
- leaving of employee is separation from organization
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- may be due to any reason (retirement, resignation, termination,
retrenchment, death etc.)
- though separation can’t be eliminated, but higher rate may be
dangerous to organization.
- a new employee takes time in reaching the level of performance
of old employee.
- lot of expenses is required to train.
4. Directing
- concerned with carrying out the desired plans.
defined as:
- the process and techniques utilizing in issuing instructions and making
certain that operations are carried out as pr original plans.

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Principles of effective direction
i) Harmony of objectives
- it makes the people realize about the objective to be
achieved by the organization
- effective direction foster a sense of belongingness among
all subordinates in such a way that they always identify
themselves with enterprise and time their goals with those
of enterprise. i.e., employee take their interest and entrprise
in harmony.
ii) Unity of command
- one person should receive order from only one superior,
otherwise contradiction occurs.

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iii) Unity of Direction
- for effective direction, each group of activities having same
objective must have one plan of action and must be under
the control of one supervisor.
e.g. for the objective to provide high service level to the customer,
consist of various activities like appointing service engineers, providing
necessary machinery planning out financial requirements etc.
Therefore all the plans should lead to fulfill the objective of high service
level.
iv) Direct supervision
- Directing function of management becomes more effective if
the superior maintain direct personal contact with his sub-
ordinates.
- direct contact creates sense of encouragement and
supervisor gets real information of work.
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v) Participative or Democratic management
- according to this principle, superior must act after mutual
consent on a decision with sub-ordinates.
- this motivates sub-ordinates and a sense of acceptance of
work is ensured.
- it is noteworthy that this mutual consultancy can take place
with immediate lower level, a departmental head cannot
consult with worker.
vi) Effective communication
- for effective direction, effective communication, free flow of
ideas, suggestions, information, complaints and grievance are
very essential.

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vii) Follow up
- for effective direction, manager must continuously guide,
motivate, lead his sub-ordinates.
- not only issue orders and instructions but also have to follow
up the performance so as to ensure that work is being
performed as desired.
5. Control
Definition
The measurement and correctness of the performance of
activities of subordinates in order to assure that enterprise
objectives and plans devised to attain them are being
accomplished.

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Pre-requisites of control system
i) Planning
- involves setting of objectives and deciding of appropriate
action.
- control is concerned with finding out whether the objective
have been achieved or not.
- if results are not according to set standards, then deviations
are ascertained.
- controlling relates to finding out deviations and taking
corrective action.
- if performance is still low, steps should be taken to set it right.

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ii) Action
- Timely action by the manager should be taken to exercise
control
- beside all precautions, there may be some deviations.
- deviations should be reported at the earliest. Delay in
reporting would delay in corrective action.
iii) Delegation of Authority
- Delegation of authority is essential for controlling.
- controlling process involves:
a) evaluating the performance
b) ascertaining deviation and taking corrective action

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These steps require authority. If production manager is asked to
increase the production by 20%, he require authority:
a) to employ more workers
b) to give incentives to workers for improving their performance
c) to take disciplinary action against inefficient workers.
- Unless proper authority is delegated, no control will be
possible.
iv) Prompt flow of information
- should be proper feed back of information for exercising
control.
- performance of subordinates should reach the manager at the
earliest.

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- enables manager to take corrective measures soon.
- time factor is very important in controlling. Time of flow of
information up and down the organization should be prompt.
- if reports of performance or suggestion of improvement from
manager are delayed, then measures to improve will also be
delayed
Steps in controlling process
Four steps in controlling process:
i) Setting of control standard
- every enterprise plans its activities in advance.
- goals or objectives are converted to quantity, value, man-hour
etc. to be achieved in future.

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- qualitative measures to be achieved are service levels,
customer satisfaction, good relationship with suppliers,
employees morale etc.
- level of achievement are fixed in advance. e.g. setting service
level to some value 95% (say)  means, 95% of the time when a
customer comes for the service should be satisfied.
- to access responsibility of any person these standards are
monitored regularly.
ii) Measurement of performance
- actual performance is measured against the standards set.
- this will enable management to check whether the work is
done according to plans or not.
- quantitative performance measurement is easy since data is
available
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- qualitative measures can only be measured through
psychological tests and surveys.
iii) Comparing actual and standard performance
- standard and actual performances are compared and
(a) find the deviation (b) find reason of deviation
- while comparing some limits are fixed.
- if performance is out of limit, it should be brought to
management notice for taking corrective action.
- if weak areas are not rectified at one point it may effect the
whole process down the line.
- The corrective measures should be such that the performance
should not be deteriorate again.

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iv) Taking corrective action
- whenever the performance is less than standard, efforts
should be made to rectify it.
- no control process can automatically rectify the mistakes in a
system, action has to be taken.
- sometimes efforts do not result required performance.
- review of plans has to be done. In that case, technique or
change in organizational structure may be required. i.e.
control may be required at managerial level instead of worker
level.

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Delegation of Authority
In any organization managers are assigned lot of work and
mangers alone cannot perform all the work.
- divide the work among different subordinates according to
their capability.
- Managers begins with sharing of responsibilities with his sub-
ordinates.
- After passing the responsibilities he passes some of his
authorities i.e. power to make decision with his sub-ordinates
so that responsibilities may be carried properly.
- to assure that work is carried efficiently and effectively,
managers creates accountability and this whole process is
called delegation.

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Delegation of Authority cont.
Therefore, Delegation may be defined as:
A process of entrusting responsibility and authority to the
subordinate and creating accountability on those employee
for feed back.
Delegation is very important process to carry on the work
systematically, but the delegation is not a process of
abdication, i.e., superior can’t get away from responsibility.
e.g. A manager has to sell 1000 products. He made five sales persons
responsible for equal distribution. One of sale persons fell ill and only 800
products were sold. For 200 less products, manager is held accountable
although he delegated his target to sub-ordinates.

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Co-ordination and Co-operation
Coordination Cooperation
1. Meaning: Coordination is the 1. Cooperation is willingness of
synchronization of various individuals to help others.
activities.
2. Dependence: Coordination is 2. Cooperation is also dependent
possible with the cooperation on coordination.
of everybody.
3. Nature: It’s a necessary 3. It is a voluntary efforts of
attempt of a manager to individuals to help the
achieve organizational goal. organization.
4. Scope: Coordination is a wider 4. It’s a narrow concept for
term and includes cooperation. establishing coordination.
5. Need: It is essential to achieve 5. It arises only when people
organizational goals. desire to work together.

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Co-ordination
Definition
To coordinate is to harmonize all the activities of a person in
order to facilitate its working and its success
Coordination is necessary for the following reasons:
1. Coordination needed at all levels
(a) At top level co-ordination is needed to synchronize the
activities of the organization for achieving overall goals of
the firm, i.e., there should be coordination while policy
making, planning, machine, material and for raising funds
for the Co.
(b) At middle level, co-ordination is needed to balance the
activities of different department for attaining the
organizational objectives, i.e., optimal span of control at
each level 46
Co-ordination
c) At lower level, the activities of worker and others are
coordinated for achieving departmental goals.
2. Coordination needed to perform all functions
a) Planning need coordination among main plan and sub-
plans.
- The plans of different departments or sections will be
coordinated to prepare a plan for whole organization.
e.g., based upon production plans, material plans will be
made.
- based on material plans, financial plans will be made.
Therefore, based on all sub-plans, co. can plan their overall
organizational plan to achieve their objective.

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Co-ordination
b) while performing organizational function, there is need to
have coordination between authority, responsibility and
accountability at different levels.
c) Co-ordination in staffing function is needed between nature
of job and qualification of employee and between nature of
work and compensation fixed.
d) In directing function, coordination is required between
superior and sub-ordinate, between orders, instructions,
guidelines etc.
e) In controlling function, coordination is required between
standards set and actual performance.

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MANAGEMENT

- No individual can satisfy his desires himself.

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

Therefore, the organisation is segregated into levels on the

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

copyright © Navin K Dev, DEI Technical College, Dayalbagh

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