Management • The American management association ,“the art of getting things done through other people.” • Henry fayol, “to manage is to forecast & plan, to organize ,to compound, to coordinate & to control.” • Donald j. Clough, “ management is the art & science of decision making & leadership.” • J.N Schulze, “ management is the force which leads, guides & directs an organization in the accomplishment of pre-determined object.” • Louis allan, “ management is what a manager does.” • Stanly vance , “ management is simply the process of decision making & control over the action of human beings for the express purpose of attaining pre-determined goals.” • John f.Mee , “Management is the art of securing maximum result with minimum of efforts so as to secure maximum prosperity for the employer & employee & give the public best possible service.” • Keith & Gubellini , “ management is the force that integrates men & physical plant into an effective operating unit.”
Four orientation of management definition • Production of efficiency oriented definition:- • “management is the art of knowing what you want to do & then seeing that it is done in the best & cheapest way ” • Decision oriented definition:- • “management is simply the process of decision making & control over the action of human beings for the expressed purpose of attaining pre-determined goals” • People oriented definition:- • “management is the art of getting things done through & with people in formally organized groups” • Function – oriented definition:- • “Management is process involving planning , organizing ,staffing , directing & controlling human efforts to achieve stated objective in an orgenisation”
Nature of Management • Art as well as science:- • It is an art in the sense of possessing of managing skill by a person, management is science because of developing certain laws or principle • Multidisciplinary :- • management has developed as separate discipline, it draws knowledge & concept from various discipline such as psychology, economics ,sociology etc • Management is a continuous process:- • The management function of any one alone cannot produce any result in the absence of any other basic functions of management so mgmt is cont process • Management is factor of production:- • Factors of production include land , labor ,capital • Orgenisation goal should achieved when these are effectively co-ordinated • Management is a discipline:- • Management is a purposeful activity:- • to achieve predetermined objectives • Management aims at maximizing profit:- • Universal Application:- • the principle & practice of management are applicable not to any particular industry alone but applicable to every industry. • Management as profession:- I) existence of knowledge ii) acquisition of knowledge iii) ethical code • Management is getting thing done:- • Management as class or team:- • Direction & control:-
Importance Of Management • Why management ? • Emergence of large orgenisation • Orgenisation is complex • Changing the nature of society • Effective utilisation of resources • The resources are scare in nature • Management will help to take decision to takes action to utilise in particular alternative in the best way • Development resources • Management improves the quality of lives of people in the society • To incorporate innovation • Today changes are occurring at very fast rate in both technology & social process • Integrating various interest groups • Pressure of Groups like shareholder ,employee ,government & society on orgenisation • Management has to balance these pressure from various interest group • Stability in the society • Management provide integration between tradition & new invention ,& safeguards from the unfavorable impact of these invention • Achievement of goal • Meeting the challenge of change
Process of Management INPUT MEN MATERIALS MACHINERY METHODS MONEY OUTPUT PRODUCTION SERVICES PROFITS SATISFACTION SOCIAL JUSTICE Planning Directing PROCESS OF MANAGEMENT Organizing Controlling
Process Of Management • Management process categorized in • Continuous process:- • It is concerned with constantly identifying the problem & solving them by taking adequate steps. it is ongoing process • Integrating process:- • Management undertake job of bringing together human , physical , & financial resources so as to achieve orgenisation purpose • Social process:- • Since human factor is most important factor among the other factor • It is duty of management to make interaction between people & productive useful for obtaining the orgenisation goal. The management as a process considered to be composite , never-ending & dynamic process.
Top Level Managers • Top level managers considered executives , responsible for the performance of an orgenisation as a whole. • Functions • Formulation of long term plan • Guidance & direction • Integration • Staffing • Review & control • Public relation
Middle Level Managers • He has to get things done through others. • Middle managers develop & implement action plans consistent with company objective • Upper middle level managers • The basic division of orgenisation are determined & overall programs of division are established. • E.g. vice president , divisional managers • Lower middle level managers:- • It is primarily concerned with carrying out function for achieving specific goals • E.g.. Departmental managers. • Functions:- • Co-operations among top & middle management & supervisors • Training & development of employee for better functioning • Recruitment • Integration of various parts of department
Low/Supervisory level • Actual work is carried out by low level managers. • Level can be classified in three categories • Senior supervisor • Intermediate supervisor • Front-line supervisor • Role of supervisors • Scientific management • Human relations • Functional roles • Functions • More concerned with execution • Maintain discipline • Organizing & maintaining production
Functions Of Management • Planning :-planning is the primary function of management • Organising:- Organising is the distribution of work in GroupWise or section wise for effective performance. • Staffing:-it comprises the activities of selection & placement of competent personnel. it refers to placement of right person at right jobs. • Directing:-direction deals with making the workers learn techniques to perform the job assigned to them. it include guidance ,supervision & motivation of employees. • Co-ordination : - grouped activities are co- ordinate towards the accomplishment of objectives of an orgenisation. • Controlling :- Prof. Theo haimann define “control is the process of checking to determine whether or not ,proper progress is being made towards the objective & goal & acting if necessary, to correct any deviation” Henry fayol” control consist in verifying whether everything occurs in conformity with the plan adopted, the instruction issued and principle issued”.
1.Planning • “Planning is the process of establishing goals & suitable course of action for achieving those goals” -James Stoner • “A plan is a trap laid to capture the future” - -Allen • “planning is deciding in advance what is to be done. it involves the selection of objectives ,policies, procedures & programmes from among alternatives” -M.S.Hurley • “Planning is an ability to visualize a future process & its results” -J.P Barger • “planning is the selecting & relating of facts & the making & using of assumptions regarding the future in the visualization & formulation of proposed activities believed necessary to achieve desired result.” -Terry
Objectives of planning • Reduce uncertainty • Future is uncertainty, planning will convert it in to certainty. • Bridge co-operation & co-ordination • Economy in operation • Anticipates unpredictable contingencies • Some events could not be predicted called as contingencies • The planning provides provision to meet such contingencies • Achieving the predetermined goal • Reduce competition
Nature & Characteristics of Planning • Planning contributes to the objectives:- • Planning involve selection of suitable course of action:- • Planning is the basic function of management:- • Planning is an intellectual activity:- • planning required a lot of thinking ,imagining & visualizing. • Planning is directed towards efficiency:- • Planning is continuous process:- • Planning is common to all • Planning is done by every person may be he is manager or a foreman • Planning helps decision making:- • Planning is flexible & dynamic:-
Planning Process • Analysisof external & internal environment • External envort consist socio-economic( classification of society on the basis of income , age , class) ,political condition in country • Internal audit( strength & weakness of the company called as resource audit ex-plant capacity, available manpower) • Determination of objective:- • Objective of orgenisation is preplanned then department wise objective should be determined • Determining planning premises & constraint:- • Forecasting means the assumption & the anticipation of certain events • Prediction of certain event like tax policy , technology change mfg coast • Identification of alternatives:- • Based on objective & planning premises ,various alternative can be identified
5.Evaluation of alternatives:- • Selection of best alternative course of action • Choose more than one alternatives • Planner should be ready with alternatives , normally known as contingency plan which can be implemented in changed situation • Formulation of supporting plan • Which support main plan, • The derivative plans are formulated out of the main plan therefore , they support it 8. follow-up & evaluation • The continuous evaluation of planning is necessary • Actual performance is compared with the planning & corrective action is taken
Types of Planning A) Coverage activities • Corporate Planning:- • corporate planning deals with top management • Which cover whole organizational activities • To determine long term objectives of orgenisation . 2. functional planning:- • is planning that covers some functional areas like production ,finance ,marketing etc. B) Time period involved 1. Long Range planning :- • long range planning deals with the futurity of present decision, long range planning sets long-term goals for the enterprise & then proceed to formulate short Range Planning specific plan for attaining those goal. • Time period is more than one year extending to twenty years 2. short Range Planning • short range mainly concerned with the determination of short-term activities to accomplish long-term objectives. • It is also known as operational or tactical planning
C)Importance of contents 1) Strategic planning :- • strategic planning is done by the middle level management which provide the foundation for operative plans. it helps for pointing out how an enterprise can optimize the use of its resources in men , money, materials & facilities within the strategic objectives. • operational planning:- • Operational planning is done by the lower level manager to put the administrative plan into action .operational plan define the detailed manner and programmes as to how current operation to be carried out. D) Degree of formalisation :- 1) Formal planning :- • formal planning are systematically carried on by the management & those which have been written down in the form of document. • Well structured process involving different steps 2) Informal planning:- • simple thinking by planners or plans ,usually remains in the mind of the planner, are useful for short range issues. • It undertaking by smaller orgenisation
E)Approach adopted:- 1)Proactive planning:- • Proactive planning involves designing suitable course of action in anticipation of likely changes in the relevant environment • Orgenisation do not wait for environment to change but take actions in advance of environmental change. 2) Reactive planning • In this planning orgenisation responses come after the environmental change have taken place
importance of planning • Convert uncertainty in to certainty:- • Planning provides economy in operations:- • Unnecessary production ,ineffective utilization of resources & unnecessary activities are eliminated through planning • Delegation authority facilitated:- • Planning provides the basis for control in organization:- • Planning leads to more effective and faster achievements in any orgenisation:- • Planning promotes internal co-ordination:- • Planning result in greater productivity:- • To increase organizational effectiveness:- • Effective utilization of resources:- • Avoiding business failures :- • Improve ability to cope with change:-
Limitations /Barriers to effective Planning • Lack of reliable or dependable information:- • if reliable & accurate information is not available planning should be failure. • Time consuming & expensive:- • Problems of rapid change • Rapid change in environment make complexity in planning • Internal inflexibilities:- • Psychological inflexibility:-manager & employee in orgenisation may develop pattern of thought & behaviour that hard to change. • Policy & procedural inflexibility:- • Capital investment • External inflexibilities:- • Political climate:- taxation policy , attitude of govt towards business. • Trade unions:-trade unions can interfere in the management activities on work rule, fixation of wages ,productivity & associated benefits. • Technological changes:- • Failure of people in planning:- • People involved in planning process fail to formulate correct plans
Feature of good plan or making effective plan • Linked to long-term objectives • Direction for action • A good plan is one which provide direction for future course of action clearly & specifically • Consistent • It must be consistent in terms of external & internal factors which are considered at the time of plan formulation • Feasible • Plan should be based on reality of the situation • Must be feasible to implement • Simplicity • A good plan must be simple to understand • Flexible • A plan should be flexible enough to incorporate unforeseen future events • Participation in planning process • Require participation from subordinate managers
Organising • “The process of identifying & grouping the work is to be performed ,defining & delegating responsibility & authority & establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives” -allen • “An identified group of people contributing their efforts towards the attainment of goal is called an orgensiation” -Mc Farland • Orgenisation is the form of every human association for the attainment of common purpose” -Mooney & Reily • The term ‘orgenisation ‘ is used in two different sense in first it is denote the process of orgenisation & second sense it is used to denote the ‘result of that process 'namely as orgenisation structure
Features of orgenisation • Deliberate & conscious creation • Orgenisation is a deliberately & consciously created human group. • Orgenisation can also recombine its personnel through promotion ,demotion & transfer • Purposive creation • All the orgenisation have some objectives • The objectives are mutually agreed upon the members of the groups. • Coordination of activities • Coordination is necessary because all the members contribute to commonly agreed goal • Structure • Structure provides power centers which co-ordinate & control concerted effort of the orgenisation & direct towards its goals. • Rationality • Every orgenisation has some specified norms & standards of behaviour • Every individuals & every member should behave according to these norms
Functions Of Organisation • Determination of activities:- it includes the deciding & division of various activities required to achieve the objectives of the orgenisation. • Grouping of activities:-identical activities are grouped under one individual or a department. i.e.-sales department • Allotment of duties to specified person:-i.e. purchasing activity to purchase manager. • Delegation of authority:- • Defining relationship:- • Co-ordination of various activities:-
Importance of orgenisation • Personal identity:- • the orgenisation structure defines the role of each member of an enterprise. thus every member knows where he and his department stands. • Facilitate administration:- • Increase the effiency of management:- • Ensures optimum utilisation of material resources & human efforts:- • Encourage creativity & initiative:- • A sound organizational structure will give an opportunity for employee show their hidden talent • Facilitates co-ordination:- • Facilitates training & development of managerial personnel:- • Prevents the growth of secret ,influence & corruption:- • sound orgenisation develops the morale, honesty , devotion to duty & loyalty of business orgenisation.
Process of organising • Identification of activities:- • the manager must identify the series of activities to be carried out in order to achieve the desired organizational objectives. • Grouping of activities:- • the activities of a manufacturing concern may be grouped in to such departments as production ,marketing, finance , H.R • Assigning activities:- • after grouping , the competent personnel manpower who could carry out these activities are to identified. • Delegation of authority:- • injecting the position with managerial authority .to carry out any activity, one must have enough authority.
Principle of Organisation • Principle of definition:- • define & fix the duties ,responsibilities & authority of each worker. • Principle of objective:- • oraganisation structure should be geared to achieve the main objective of the organization. • Principle of co-ordination:- • the objectives of the organisation may be achieved quickly whenever co- ordination exist among the worker. • Principle of authority:- • The authority is the tool by which a manager is able to accomplish the desired objectives • Principle of efficiency:- • The orgenisation structures should enable the enterprise to function efficiently • The work should be completed with minimum resources & within right time • Principle of responsibility:- • Each person is responsible for complete the work • principle of leadership facilitation • Orgenisation will appoint the person with leadership quality in key position • Principle of flexibility:- • The orgenisation set up should be flexible to adjust to the changing environment
Principle of unity of direction • All the groups or department are requested to co-operate to attain the main objectives • Principle of join decision:- • In complicated problem decision should taken by various manager • Principle of balance:- • Their should be balance in responsibility • Principle of leadership facilitation:- • Person with leadership quality are appointed in key position . • Principle of uniformity:- • The work distribution in such manner that there should be an equal status & equal authority & powers among the same line managers • Principle of correspondence • Need Proper communication between various dept/manager • Principle of simplicity & homogeneity • Orgenisation structure should be simple so staff members can discharge his duties effectively
Process of designing the organizational structure • To determine the objectives:- • To enumerate activities:-an industrial concern may be divided into the following major function i )production ii)finance iii)sales etc • To classify activities:-according to similarities ,common purpose and function • To fix individual into functions:-fix suitable & well qualified person into these activities . • To assign authority for action :- • To prepare an organizational manual:- • To prepare standard practice of instructions:- • To revise the system on the basis of assessment of personnel & funds: assess the capacities & abilities of the people .
Staffing • According to koontz “the managerial function of staffing involves the managing the orgenisation structure through proper & effective selection ,appraisal & development of personnel to fill roles designed into structure” • S.Benjamin “ the process involved in identifying ,assessing , placing , evaluating & directing individuals at work” • According to Theo Heinemann “staffing function is concerned with the placement, growth & development of all those members of the orgenisation whose function is to get things done through the efforts of other individuals ” • “Staffing is the function by which managers build an orgenisation through the recruitment ,selection & development of individuals as capable employees” • “The managerial function of staffing is defined as filling position in the orgenisation structure through identifying workforce requirement ,inventorying the people available , recruitment , selection ,placement, promotion ,appraisal , compensation & training of needed people ”
Importance of staffing • Filling orgenisational position • Shortage of good quality managerial & technical personnel in such a situation there is need of systematic staffing so orgenisation fill the various position with personnel of good quality • Developing competencies • Changing nature of job profile there is requirement of multi skill • Form making employee competent newer training & development techniques are been evolved • Retaining personnel • Employee turnover is high • Orgenisation should retain their employees by adopting many methods having long-term implication
Factors affecting staffing • External factors • Nature of competition for human resources • Competition for skilled workforce • Legal factors • Govt act • Provision regarding mandatory employment of certain categories of personnel such as scheduled cast/tribes OBC • Socio-cultural factors • Orgenisation can employ certain categories of personnel for certain job • Ex. employment of women in mfg operations • External influences • Pressure for employing in the orgenisation • Political pressure • Ex. ‘sons of the soil’ • Internal factors • Orgenisational business plan • Business plan determine the type of personnel that may be required in feature • Size of orgenisation • Size of orgenisation determines degree of attractiveness to the prospective candidate • Small orgenisation cannot have same staffing as large orgenisation • orgenisational image • Image depends upon training & development, promotional avenues ,compensation ,work culture
Function Of Staffing • Human resource planning:- • Development:- development of staff members through adequate & appropriate training program. • Fixing the employment standards:- it involves job specification & job description. job description is systematic & organized written statement of the duties & responsibilities in a specific job. job specification is a statement of personal qualities that an individual must posses. • Sources :- 1)internal 2)external • Selection & placement:- • Training:- • Other functions:- promotion , transfer, record maintenance, motivation
Staffing Process • Human Resource planning • Job Analysis • Recruitment • Selection • Placement & orientation • Training & development • Performance appraisal • Promotion & transfer of the employees
1. Human Resource planning • “Is the process by which a firm ensure that it has the right number of people & right kind of people ,at the right time ,doing thing for which they are economically most useful” • “HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities ,how many people will be available ,& what , if anything must be done to ensure that personnel supply equals personal demand at the appropriate point in the future ” • Hr manager should find out the requirement of manpower to undertake the various activities. it is determined in terms of quality & quantity. • To formulate action programme & procedure as to acquire & develop required manpower. human resource plan consist finding out the sources of labour supply & necessary preparation are made for conducting various development programme.
Importance of HRP • Defining future personnel need :- • Coping with change • Providing base for developing talents • Increasing investment in human resources • The cost of acquiring ,developing & retaining personnel is increasing much faster than average rate of inflation • Increase in salary package • Forcing top management to involve in staffing
HRP Process • Forecasting future manpower requirement:- • Forecasting based on specific future plan of the economy • Inventorying present manpower • To know how the resources employed optimally • Skills inventory:-employee personal data , education ,job exp , training, special achievement • Management inventory:-personal data , work history, strength promotion potential • Anticipating manpower problem To determine adequacy both quantitatively & qualitatively • Planning the necessary program • Such as recruitment ,selection , training & development , promotion , motivation so future requirement will met.
2.Job Analysis • “job analysis is the process of studding & collecting information relating to the operations & responsibility of specific job” it consist two sub-process • Job description:- is an orgenised factual statement & summary of the job contents in terms of title , location , duties , working condition , equipment to be used , amount of supervision needed, personal requirement of the job. • Job specification:-it gives details relating to the candidate who is supposed to do the job , such as qualification , experience • Personal characteristics such as age ,sex ,education ,job experience • Physical characteristics such as height , weight , hearing • mental characteristics such as intelligence , memory • Social & psychological characteristics such as emotional stability,creativity
Uses of job analysis • Acquisition of personnel • HRP , recruitment & selection ,orientation & placement • Job analysis give information for forecasting human resource need in terms of knowledge ,skill & experience • Human resource development • Career planning • Training & development • Job evaluation & compensation • Is the process of determining the relative worth of different job in an orgenisation with view to link compensation • Performance appraisal • Job analysis helps in determine performance standard against which the actual job performance measured • Safety & health • Job analysis helps in taking preventive measure for maintaining safety & health of employee at workplace by providing information • Employee counseling • It helps in counseling to employee those working under stress
3. Recruitment • “Recruitment is the process of finding & attracting capable applicants for employment .the process begins when new recruits are sought & ends when their application are submitted .” • “The term recruitment applies to the process of attracting potential employee of the company.” -Dalton E.McFarland
Internal Sources • Advantages:- • It increase the morale among the staff member • Giving promotion keep the employee happy. • Training expenses may be reduced some extent. • It ensures the continuity of job to the staff member & stability of the orgenisation. • It induces the staff members to work hard to get promotion. • Expenses as on advertisement ,recruitment , Test & interview are avoided. • Disadvantages:- • The outsider do not have a scope to show their ability. • An under qualified person may be appointed in the higher post. • If the higher post is filled by internally ,the company will not able to get fresh & original ideas .
External Sources • Advantage:- • Choice:-a company can recruit a person out of a large number of applicant . • New outlook:-new person uses new approaches to solve the problem which will give maximum benefit to the company. • Wide experience:-recruited candidate has the experience in various fields. • Disadvantage- • Gruging of old employees:- • Lack of co-operation:- • Expensive:- • Danger of non- adjustment :- if a newly person fails to adjust himself to the working condition of the company, it leads to more expenditure in looking for his replacement.
4.Selection • “selection is the process adopted by an orgenisation to select adequate number of persons who are fit the job” Selection Procedure:- A. Job analysis:- a) job description:- it gives details about duties ,responsibilities b)job specification:-it specify the type of person required in terms of educational qualification ,experience, aptitude etc 1.Receiving & Screening application 2.Employment tests:- a)intelligence test b) aptitude test c) performance test d)personality test 4. Employment interviews:- types of interview:- 1) informal interview 2)Formal interview 3) planned interview4) structured interview 5) stress interview 6) group interview 7) panel or board interview 5) Checking Reference 6) Conducting medical or physical examination 7) Final selection & placement
5. Placement & induction:- 1) he placed on the job for which he was selected 2) an employee should introduced to the orgenisation culture & environment. Information about company history ,objectives , rules & regulation ,opportunities ,promotion ,transfer 6. Training & development:- “training is the act of increasing the knowledge & skill of an employee for doing a particular job.” Advantage of T&D :- • Increased efficiency & productivity:- • Reduced supervision & direction:- • Employee moral will improve • Confidence in employee • Positive attitude • Enhance existing knowledge of employee
Methods of training 1) On the job training:- • Demonstration:-operatives can be trained through demonstration by trainer • Vestibule training:- two parts first there is lecture method focus on theoretical method & second aspect is practical exercise based on theoretical aspect • Apprenticeship:- • Coaching:- • Job rotation:-movement of employee from on job to another job 2) Off the job training:- • lectures • conference • case studies • role play
7. Performance Appraisal:- • “ Is the systematic description of an employee’s job relevant strengths & weaknesses” • “ Is the systematic evaluation of the performance of an employee by an expert or his immediate superior” • “ Is the systematic evaluation of the individuals with regard to his or her performance on the job & his potential for development” • Objectives • Salary increase • Promotion • T & D • Feedback • Pressure on employees Importance:- • helps mgmt to take decision about salary increase • Continuous evaluation of an employee helps in improving quality of employee • Minimize communication gap between employee & employer • Training needs can be identified • Promotion & demotion is given on the basis of performance appraisal • Helps to improve the employee & employer relation