TERMS USED IN MANAGEMENT

Management
Management manages organizations. It coordinates resources to get
the job done for achieving goals. Resources can be human, financial,
material.

Management may be defined as the art of securing maximum results

with a minimum of effort so as to secure maximum prosperity and
happiness for both employer and employee and give the public the best
possible service. - John Mee
Management is distinct process consisting of planning, organising,
actuating, activating and controlling, performed to determine and
accomplish the objectives by the use of people and resources.
- George

According to Mary Parker Follet:

Management is the art of getting thing done through people.

According to henry fayol

Management is to plan, to organize, to command, to co-ordinate and
to control.

Accoding to f.w .taylor

Management is knowing exactly what you want people to do and then
seeing that they do it in best and cheapest way.

ADMIISTRATION
Administration comes from Latin word “Administer” means “I serve”.
According to Sherely
Administration means the performance of the executive of any
institution or business or any organization.

According to Newman
Administration is guidance, leadership and control of effort of a group
of people towards a common goal.

Difference between Administration and Management

Basis of difference Administration Management
Nature of work It is concerned about It puts into action the
the determination of policies and plans laid down
objectives and major policies by the administration.
of an organization
Type of function It is a determinative It is an executive
function function
Scope It takes major It takes decisions
decisions of an enterprise as a within the framework set by
whole the administration.

Level of authority It is a top-level It is a middle level

activity. activity
Nature of status It consists of owners It is a group of
who invest capital in and managerial personnel who use
receive profits from an their specialized knowledge to
enterprise. fulfill the objectives of an
enterprise
Nature of usage It is popular with government, It is used in business
military, educational, and enterprises.
religious organizations.
Decision making Its decisions are influenced by Its decisions are influenced by
public opinion, government the values, opinions, and
policies, social, and religious beliefs of the managers.
factors.
Main functions Planning and organizing Motivating and controlling
functions are involved in it. functions are involved in it.
Abilities It needs administrative rather It requires technical activities
than technical abilities.

ADIMINISTRATOR
Person who holds the administration is called administrator.
Administrator is a person through which the work is done by people.

LEADERSHIP
Leadership is the ability to mobilize the group towards the achievement
of purpose/goals thought the authority and responsibility.

Leadership is the activity to persuade others to seek defined objectives

enthusiastically.

It is the human factor which binds a group together and motivates it

towards goals
Keith Davis

MANAGER
Manager is the leader who works in an organization, and helps to get
work done effectively through the other people.

LEADER
Leader is a person who leads the group of people to achieve desired
goal.
CONCEPT OF MANAGEMET
Functional Concept
'Getting Things Done Through Others' Concept
Leadership and Decision-making Concept
Productivity Concept
Universality Concept

FUNCTIONAL CONCEPT
According to this concept 'management is what a manager does'.

James L. Lundy, “Management is principally the task of planning,

coordinating, motivating and controlling the effort of others towards a
specific objective. Management is what manager does. It is the task of
planning, executing and controlling."

'GETTING THINGS DONE THROUGH OTHERS' CONCEPT:

According to this concept, 'Management is the art of getting things done

through others'. Very narrow and traditional concept of management.
Under this concept, the workers are treated as a factor of production only
and the work of the manager is confined to taking work from the
workers. He need not do any work himself.
Modern management experts do not agree with this concept of
management.

LEADERSHIP AND DECISION-MAKING CONCEPT:

According to this concept, "management is an art and science of
decision-making and leadership. “Most of the time of managers is
consumed in taking decisions. Achievement of objects depends on the
quality of decisions. Similarly, production and productivity both can be
increased by efficient leadership only.
PRODUCTIVITY CONCEPT

According to this concept, "management is an art of increasing

productivity. “Economists treat management as an important factor of
production. According to them, "Management is also a factor of
production like land, labour and capital. “ F. W. Taylor, "Management is
the art of knowing what you want to do in the best and cheapest way."

UNIVERSALITY CONCEPT

According to this concept, "Management is universal". Management is

universal in the sense that it is applicable anywhere whether social,
religious or business and industrial. According to- Henry Fayol,
"Management is an universal activity which is equally applicable in all
types of organization whether social, religious or business and
industrial".

IMPORTANCE OF MANAGEMENT

Goals achievement
Management creates team-work and coordination in the group for the
achievement of the goal.

2. Optimum utilization of resources

Managers forecast the need for materials, machinery, money and
manpower. It ensure that the organisation has adequate resources and at
the same time does not have idle resources

3. Minimization of cost
Management directs day-to-day operations in such a manner that all
wastage is avoided.

4. Survival and growth

Management keeps in touch with the existing business environment
draws its predictions about the trends in future. It takes steps in advance
to meet the challenges

5. Generation of employment
By setting up and expanding business enterprises, managers create jobs
for the people.

6. Development of nation.
Management is the most crucial factor in economic and social
development. The development of a country largely depends on the
quality of the management

FUNCTIONS OF MANAGEMENT

The functions of management are as follows.

 Planning
 Organizing
 Staffing
 Directing
 Coordinating
 Controlling
 Reporting and recording
 Budgeting

1. PLANNING:

Planning means to decide in advance what is to be done. It charts a

course of actions for the future. It is setting goals and deciding how best
to achieve them.

Essentials of good planning:

Good planning
 Achieve organizational objectives
  Develops alternative approaches to meet these objectives.

 Helps to eliminate the future uncertainty and chance.

 Helps to gain economical operations

 Good planning

 Facilitates co-ordination.

 Helps to facilitate control.

 Dictates those activities to which employers are directed.

2. ORGANIZING:

Organizing means determining how to group activities and resources. It

means differentiating and coordinating activities to carry out the plan.
It is establishing a structure. All the task necessary to achieve goals is
assigned to position and people who can do them best.

Organising involves:
 Defining task required to achieve goals.
 Grouping the task in departments.
 Designing a structure.
 Establishing authority and responsibility
 Coordinating tasks to achieve harmony.

3. STAFFING

Staffing is the selection, training, motivating and retaining of a

personnel in the organization.
Before selection we have to make analysis of the particular job, which is
required in the organization then comes the selection of the personnel.
It involves manpower planning to have the right person in the right place
and avoid “square peg in the round hole”.

4. Directing
Directing means the issuance of orders, assignments and instructions
that permit the subordinate to understand what is expected of him.
Guidance and overseeing of the subordinate so that he can contribute
effectively and efficiently to the attainment of organizational objectives.

Directing includes the following activities:

Giving orders
Making supervision
Leading
Motivating
Communicating

5. COORDINATING:

It is the act of bringing people and activities together so that they

function smoothly in the attainment of organization objectives.
"Co-ordination is the integration of several parts into an orderly whole
to achieve the purpose of undertaking"

TECHNIQUES OF CO-ORDINATION

Communication
Orderly plans
Supervision.
Leadership
6. CONTROLLING:
Controlling can be defined as monitoring and correcting ongoing
activities to facilitate goal achievement.

The control function involves four steps.

Establishments of standards.
Measuring performance
Comparing the actual results with the standards.
Correcting deviations from standards.

7. REPORTING AND RECORDING:

Reports are oral or written exchanges of information shared between

workers in a number of ways.
A report summarizes the services of the person and of the agency.
Reports are written usually daily, weekly, monthly or yearly.

Purposes of reporting:
To show the kind and amount of services rendered over a specified
period.
To illustrate progress in reaching goals.
As an aid in planning.
Records and reports must be accurate, complete, current organized and
confidential.

8. BUDGETING:

Budgeting is expressed in financial terms and based on expected income

and expenditure.
Budget is the heart of administrative management.

Features of budget:
Should be flexible.
Should be product of joint venture & cooperation of executives/
department heads at different levels of management.
It should be in the form of specific numerical terms.

PRINCIPLE OF MANAGEMENT

Henri Fayol (1949) developed 14 principles based on his experience.

Fayol divided all the work carried out in a business enterprise into
the following categories.

Technical activities (production, manufacture, etc)

Commercial activities (buying, selling and industrial relations)

Financial activities ( to have optimum use of capitals)

Security activities

Managerial activities (planning organizing, commanding, directing,

coordination control, communication, motivation .leadership

PRINCIPLE OF MANAGEMENT

Division of work:
Work should be categorized to specific jobs (managerial and non
managerial) and should be assigned to specific individuals.

PRINCIPLE OF MANAGEMENT

Authority, responsibility and accountability:

Each workers should be given authority according to the degree of
his/her responsibility and should be held accountable.
Without authority one cannot discharge responsibility

Discipline:

It is the observance of the rules, regulations, norms, manners, code of

ethics and respect.

This has to be enforced and requires good supervisors at all levels.

Unity of command:
Each employee should receive orders from one superior only.

Unity of direction:
Similarly there should be one superior to give direction for the sets of
activities having the same objectives.

Centralisation of authority:
Refers to greater and larger authority resting with the top management
level.

Scalar chain of command :

There should be an unbroken scalar chain of authority and

communication extending from the top executive to the lowest level
worker.

Remuneration of personnel:

There should be a fair policy of payment to the staff, justifying the

workload, job hazards, efficiency and quality of performance.
Stability of tenure:

The employee requires assurance about permanent nature of work,

resulting in a feeling of security and involvement in work.

Initiative:
Employees should be given opportunities for use of creative ideas in
their work.

Subordination Of individual interest to organization interest.

The individual must sacrifice some self interest in the overall interest of
the organization and society.

Equity:
Loyalty and devotion must be elicited from personnel by combination of
impartiality, kindness and justice on the part of managers, when dealing
with subordinates.

Order:
Refers to a systematic arrangement of materials, supply and equipment
according to requirement of specific job departments and placement of
people in the organization.

“Espirit de corps’ :
There should be a sense of belonging, a team spirit that is necessary for
attaining the organizational objectives.
SCOPE OF MANAGEMENT

It consists of the following functional areas:

Production Management:
To produce the right goods, in right quantity, at the right time and at the
right cost. It deals with aspects such as production planning, quality
control and inspection, production control techniques, etc.

(ii) Marketing Management:

It refers to the identification of consumer’s needs and supplying them
the goods and services which can satisfy these wants.

It involves the following activities:

(a) marketing research to determine the needs and expectation of
consumers
(b) planning and developing suitable products
(c) setting appropriate prices
(d) selecting the right channel of distribution,
(e) promotional activities like advertising and salesmanship to
communicate with the customers

(iii) Financial Management:

It seeks to ensure the right amount and type of funds to business at the
right time and at reasonable cost.

It comprises the following activities:

(a) estimating the volume of funds required

(b) selecting the appropriate source of funds

(c) raising the required funds at the right time

(d) ensuring proper utilisation and allocation of raised funds so as to

maintain profitability of business,

(iv) Personnel Management:

involves planning, organising of human resources of an organisation.

It consists of the following activities:

(a) manpower planning

(b) recruitments,
(c) selection,
(d) training
(e) appraisal,
(f) promotions and transfers, etc

EVOLUTION OF MANAGEMENT
The evolution of management can be classified as follows:
 Scientific management theory
 Classic organizational theory
 Human relations theory
 Behavioural science theory
 Modern management theory

 SCIENTIFIC MANAGEMENT THEORY:

 Principles: the scientific management focuses on Observation

 The measurement of outcome
 The pioneers of scientific management are:
 Frederick W. Taylor (1856-1915)
 Gantt Henry I. Gantt (1861-1910)
 Emerson (1853-1936)
 Frederick W. Taylor (1856-1915): recognized as father of
scientific management. He conducted Time-And- Motion studies
to time the workers, Analyze their movements and set their
standards.

 Achievements of Taylor: He trained his workers to follow the

time to complete the task given.

 Labour costs per unit were reduced as a result.

 Increase production and higher profit

 Introduce incentive plan to pay to worker

 Achievements of Taylor:

 He considered management function is to plan.

 Working condition and methods to be standardized to maximize

production.

 It was management responsibility to select and train worker

 The effect of time- motion study of Taylor:

 Reduced wasted efforts

 Set standards of performance

 Encouraged specialization ( selection

 of specialized worker)

 GANTT HENRY I. GANTT (1861-1910):

 Gantt was concerned with problems related to efficiency.

 contributed to scientific management by refining the previous work

of Taylor than introducing new concepts.

 GANTT HENRY I. GANTT (1861-1910):

 Studied amount of work planned or completed on axis to the time

needed or taken to complete the task on the other axis.

 Gantt developed a task and bonus remuneration plan.

 recommended to select workers scientifically and provided with

detailed instructions

 He argued for a more Humanitarian approach by management,

placing emphasis on service rather than profit objectives.

 recognized useful non –monetary incentives such as job security

and encouraging staff development.
 EMERSON (1853-1936):
 His emphasis was on conservation and organizational goals and
objectives.

 3. EMERSON (1853-1936):

 He defined principles of efficiency related to

 Interpersonal relations and to system in management.

 Goals and ideas should be clear and well-defined (produce the best
product as quickly as possible at minimal expense)

 “Competent counsel “is essential.

 His theory explains about

 Management can strengthen discipline or adherence to the rules by

justice

 production scheduling is recommended.

 Standardized schedules and written instructions should be there to

facilitate performance.

 His theory explains about

 “Efficiency rewards “should be given for successful completion of

tasks.
 CLASSIC ORGANIZATIONAL THEORY:
 Importance of classic organization theory:
 began to receive attention in 1930.
 Organization is viewed as whole rather than focusing solely in
production.

 The concepts of scalar levels, span of control, authority,

responsibility, accountability, line staff relationships,
decentralization and departmentalization become prevalent.
 The pioneers of Classic organizational
 theory:

 Henry Fayol (1841-1925)

 Max Webber(1964-1920)

 Henry Fayol (1841-1925):

 Fayal was a French industrialist

 known as father of the management process school

 concerned with management of production.

 studied the functions of managers and concluded that management

is universal.

 Managers regardless of the type of organization or their level in

organization
 function is

 planning,
 organizing,
 issuing orders,
 coordinating and controlling.
 Functions of management:

 Planning policies, programs and procedures.

 Organization based on hierarchy of authority

 Directing the business to gain optimum return from all workers.

 Coordination, signifying harmony in activities of the organization

 Control, the errors of the functionaries of organization and ensure

that such errors do not occurs.

 Fayol divided all the work carried out in a business enterprise

into the following categories.

 Technical activities (production, manufacture, etc)

 Commercial activities (buying, selling and industrial relations)

 Financial activities ( to have optimum use of capitals)

 Security activities

 Managerial activities (planning organizing, commanding,

directing, coordination control, communication, motivation
.leadership
 Max Webber theory (1864-1920):

 German psychologist.

 father of organizational theory

 emphasis was on rules instead of individuals and on competencies
over favoritism

 conceptualization was on bureaucracy

 Max Webber theory (1864-1920):

 Bureaucracy define hierarchy governed by clearly defined rules

and regulation and lines of authority.

 Efficient to manage complex organization.

 It is management by strict rules and are static.

 Contribution of Bureaucracy Theory
 is useful to manage big and complex organization

 Decision making is rational based on clear-cut objectives, rules,

procedures and authority.

 Technical competence in employees,right person in right job.

 Limitation of Bureaucracy Theory
 lacks innovation & flexibility. It is rigid.

 It emphasizes efficiency at the cost of human needs.

 Rules and procedures become rigid, changing them is not easy.

 Routine matters take a lot of time of top managers.

 Communication is slow and distorted

 HUMAN RELATION THEORY:

 began in 1940s.
 Focused on the effect that the individuals have on the success or
failure of an organization.

 Classic organizational theory concentrated on the physical

environment fail to analyze the human element.

 Hawthorne Studies (Elton Mayo)

 These studies consisted a series of experiments that focused on
behavior in the work place. They provided new insights into group
norms and behavior.

 Hawthorne Studies (Elton Mayo)

 Hawthorne studies found that:

 People who are given special attention/observed tend to improve

their performance/behaviour this is called “Hawthorne Effect” .“

 2. Human element is important in management. People are

different than machines.

 3. Productivity is not only al technical but also a social

phenomenon. Workers are motivated by social needs. Money is not
the only motivator.

 4. Team work improves efficiency

 5. Group standards, group sentiments and security affect worker’s

output.
 2.Theory of Participatory Management (Mary Parker Follet)
 This theory regards that management is getting things done
through people.

 Management should achieve unity through coordination.

 2.Theory of Participatory Management

 Human element in the workplace is important.

 Cooperation ,unity and self control serve as keys to better human

relations.

 Managers should motivate performance rather than demand it.

 Principles of Theory of participatory Mgmt

 Coordination by direct contact:

 Managers should be in direct contact
 Communication should be both vertical and horizontal

 B. Coordination in early Stages:

 Concerned people should be involved in policies or decision in
early stages.

 Cont.
 C. Coordination as Reciprocal Relation:
 Decision and action of all people and department are interrelated.
 So before taking decision and action all manager must first find out
the effect of that decision and action on other person and
department.

 This is called as Reciprocal Relation:

 D. Coordination as Continuing process

 Contribution of Human Relations Theories
 shifted the focus of management to the human side of organization.

 stated that social setting and groups were important for

productivity

 emphasized employee satisfaction as a key determinant of

performance.

 Limitations of Human Relations Theories

 These theories gave overemphasis on human variables.

 They undermined task and structure to keep employees happy.

 Financial rewards were ignored.

 Behavioral Science Theories
 Behavioral Science theories apply the concepts of psychology,
sociology and anthropology to management.

 focus on employee behavior in organizational context.

 Behavioral Science Theories

 Behavioral Science Theories consists of:

 Theory of Human needs (Abraham Maslow)
 Theory X & Theory Y (Douglas McGregor)
 Theory of Human Needs
 This theory advocated that human behavior is motivated by needs.

 This theory says that:

 There is hierarchy of needs.

 People satisfy the most pressing needs first.
 Cont.
 Lower needs (physiological, safety): should be satisfied first before
higher order needs can be met.

 Man is never fully satisfied. Unfulfilled needs influence human

behavior in organization.
 2. Theory X & Theory Y (Douglas McGregor)
 One’s style of management is dependent on one’s philosophy of
humans and categorized those assumptions as X theory and Y
theory.

 2. Theory X & Theory Y (Douglas McGregor)

 Theory X

 Employees are lazy they dislike work & tend to avoid it.

 Employee need to be push, controlled & threatened to get the job

done.

 2. Theory X & Theory Y (Douglas McGregor)

 Theory X

 Employee avoid responsibility they seek formal direction by

superior
 they display little ambition and initiative.

 have little capacity for creativity in solving organizational

problems.

 Cont.

 Theory X is
 pessimistic,
 static,
 rigid and control-oriented.
 It presents negative view of people.

 Managers need to reward, punish, control and direct employees.

 Theory Y
 The assumption are:

 Employee view work as a natural activity like play or rest

 Employee exercise self direction and self control

 Theory Y
 accept and seek responsibility and want to learn new things for
self development

 have capacity for creativity in solving problems.

 The theory Y is
 optimistic,
 dynamic and flexible.
 emphasizes self control and direction.
 aims at integration of employee goal with organizational goals.
 presents a positive view of people.

 Contributions of Behavioral Science Theory

 emphasizes understanding of human behavior at work.

 gave important to non financial reward such as recognition and

appreciation for worker productivity.

 Contributions of Behavioral Science Theory

 advocated that needs influence behavior. Unfulfilled needs

influence productivity in organizations.

 Modern management theories

 Focuses on applying mathematical models and process to

management situation.

 It aid in decision making.

 Quantitative Approach include:

 A)Decision Theory of Management

 B) Management Science Theory

 Decision Theory of Management:

 Herbert Simon was the founder of this theory.

 focuses on rational decisions.

 Decision Theory of Management:

 deals with making of decisions, behavior of persons making

decision, decision making process and the decision environment.

 Main features of Decision Theory:

 Management is making decision.

 Decision are the heart of management and rational decisions

should be made.

 Members of organization are decision makers.

 Cont.
 III. Decision making is the control point in management.

 IV. Quality of decision is important for management efficiency.

 Cont.
 The rational approach to decision making involves following
steps:-

 Define the problem

 Identify relevant alternatives
 Evaluate the alternatives
 Select the best course of action
 Implement the action
 Evaluate the result of action

 Contribution of Decision Theory

 helps managers to discharge their decision making role effectively.

 Tools and techniques are available to help managers to make

decisions.

 Limitation of Decision theory

 does not take a total view of a management, its scope is limited

 It is limited to economic rationale

 It ignore behavioral aspect of people

 B. Management Science Theory
 Applies quantitative techniques to management.

 considers management as a system of mathematical models for

problem solving.
 B. Management Science Theory

 Quantitative techniques can be operations research, linear

programme and programme evaluation and review techniques
(PERT).

 Use of computer has made this theory popular

 Main features of Management Science Theory
 Makes use of mathematical tools and techniques for rational
decision making.

 Management problems can quantifies and described in

mathematical models

 Managers should aim at optimizing performance and maximizing

efficiency
 Contribution of Management Science Theory
 developed quantitative tools to make decision

 Most large organization use this theory for decision making

 widespread application on solving technical problems &

forecasting.

 Contribution of Management Science Theory

 useful for planning and controlling purpose.

 widely used in production and operations management

 Limitation of Management Science Theory
 ignores people and relationship in organization
 2. assumption used for quantifying decision making are not
realistic in the real world situations.

 3. not applicable where aspects of management cannot be modeled

 The System Theory of Management
 The system theory views the organization as unified whole,
composed of interacting and interrelated subsystem.

 The subsystems is part of organization.

 Activities in one part of the organization affects the activities in

other parts.

 The System Theory of Management

 The subsystem of an organization systems are:

 People subsystems :human resources
 Technology subsystems: equipments, methods, processes and skills
 Structure subsystems:
 Management subsystems:
 Key features of the system theory
 Goal oriented:
 A system is goal oriented.

 2. Subsystems:
 The part of the systems are subsystems.
 All the subsystems are related to each other and interact with other

 Key features of the system theory

 3. Open & Closed:

 A system can be open or closed.
 Closed has no environment and open interacts with the
environment.
 It respond to environment change

 4. Synergy:
 means that the whole is greater than sum of its parts.
 Working together produce more than working alone.

 .
 Key features of the system theory

 5. Boundary:
 Every system has a boundary that separates it from the
environment. Open system has flexible boundary.

 Flow: A system has flow of information, material & energy

resources. Feedback is the key to system control

 Cont.

 Feedback: It is getting information about actual performance. It is

the key to system control.

 8.Entropy: It is the process of decline. This happen when

organization fail to make corrections based on environmental
feedback
 Contribution of system theory
 recognizes the interrelations and interactions among subsystems
for synergistic effects.

 It recognize environmental influences and provides better

understanding of environment

 useful for studying complex organization

 Feedback facilitates changes in the systems

 Limitation of Systems Theory

 1.The system theory is complex for practical application. In
smaller organization it is not relevant.
 Contingency Theory
 This theory recognize the situational nature of management.

 most recent developed management theory.

 does not believe in universality of management.


 theory says that management practice depends on situations.
 Contingency Theory
 Each situation is unique and demands unique managerial action.

 Result differ because situation differ.

 Manager should be situation sensitive in their behavior.

 Different situations call for different management approaches.

 This theory says that
 leadership style,
 organizational structure,
 job design,
 motivational approaches,
 control systems should be situation specific.

 There is no one best way.

 Limitation of Contingency Theory
 1.Every situation is unique, manager may not be able to analyze
each and every situation.
 2. This theory is not applicable for all types of managerial issues.

 It is the production-oriented area of management that is dedicated

to improving efficiency, cutting waste, and improving quality.

 Used analysis and management skills in a planned and organized

way.

 Planning
 Concept of Planning

 Planning is a rational action mixed with a little of forethought.

 It is seen everywhere.

 In a business, planning is the primary of all managerial functions

as it involves deciding of future course of action

 Concept of Planning

 Planning is the process of deciding in advance what is to be done,

where, how and by whom it is to be done.

 Thus, it is basically a process of ‘thinking before doing’.

 All these elements speak about the futurity of an action.

 Definitions:
 “Generally speaking, planning is deciding in advance what is
to be done”
 -W H Newman

 Definition of Planning

 Koontz and O’Donnell have defined planning in terms of future

course of action. They state “that Planning is the selection from
among alternatives for future courses of action for the enterprise as
a whole and each department within it.

 Definition of Planning
 “Planning is fundamentally a mental predisposition to do things in
an orderly way, to think before and to act in the light of the fact
rather than guesses”.
 -L.F. Urwick

 Nature of Planning
 The nature of planning can be highlighted by studying its
characteristics. They are as follows

 Planning is a mental activity.

 Planning is not a simple process.
 It is an intellectual exercise
 involves thinking and forethought on the part of the manager.

 Nature of Planning

 (b)Planning is goal-oriented.
 Every plan specifies the goals to be attained in the future and the
steps necessary to reach them.
 A manager cannot do any planning, unless the goals are known.
 Nature of Planning
 (c) Planning is forward looking.
 planning means looking ahead.
 It is futuristic in nature since it is performed to accomplish some
objectives in future.
 Nature of Planning
 (f) Planning is based on facts.
 is based on objectives, facts and considered forecasts.
 Thus planning is not a guess work.
 Nature of Planning
 (g) Planning is flexible.
 Planning is a dynamic process capable of adjustments in
accordance with the needs and requirements of the situations.
 Thus planning has to be flexible and cannot be rigid.
 Nature of Planning
 (h) Planning is essentially decision making.
 planning process involves finding the alternatives and the selection
of the best.
 Thus decision making is the cardinal part of planning.

 Purpose of Planning
 To set the goal:
 Planning actually starts with the formulation of goals and
objectives.

 Goals guides futures activities.

 It establish priorities & help to avoid problems in futures.

 Purpose of Planning
 To focus on meaningful activities:
 Effective planning focuses the various course of action which are
useful to accomplish the objectives.

 Reduce unproductive activities.

 makes it clear for working at different levels.
 1
 3. To economizes the time & efforts & others resources:
 Planning at all levels keeps the whole process in order.

 Money, men, machines & materials are properly utilized &

wastages are minimized.

 1

 4. To maintain coordination:
 Planning facilitates better mobilization, allocation & coordination
of resources.

 Activities are pulled together for achieving interdepartmental

cooperation & coordination.

 Communication about plans avoids confusion.

 5. To reduce risk & uncertainty:

 Proper planning reduces the uncertainty.
 predetermine future targets & actions.
 forces managers to think ahead, anticipate changes, consider the
impact of change & develop appropriate responses.
 It roadmap for futures.

 6.To ensure proper control:

 Control is not possible without planning.

 Planning sets standards of performance for control.

 Actual performance is compared with planned targets to find

deviations & make correction.
 7. To achieve the organizational Effectiveness:
 ensures that the resources are utilized as per plan that helps to the
organizational effectiveness.

 8.To promotes creativity:

 Planning helps innovations & creativity thinking.
 Many new ideas come to mind of a manager during planning.

 9.Environmental adaptation:
 Planning identifies environmental opportunities & threats.
 helps organizations adapt to change
 Planning encourages innovation & creativity.
 reduces the negative impact of change.
 Change management become effective.
 PURPOSE OF PLANNING
 Planning leads to success in achieving goals and objective

 It gives meaning to work

 Provide means to the effective use of available resources

 PURPOSE OF PLANNING
 Help to cope with situational crisis.

 It is cost effective and needed for effective control.


Importance of Planning
 According to G.R. Terry, “Planning is the foundation of most
successful actions of all enterprises.” An enterprise can achieve its
objectives only through systematic planning on account of the
increasing complexities of modern business.
 Minimizes uncertainty:
 The future is generally uncertain and things are likely to change
with the passage of time.
 Planning helps in minimizing the uncertainties of the future as it
anticipates future events.

 Emphasis on objectives:
 The first step in planning is to fix the objectives.
 When the objectives are clearly fixed, the execution of plans will
be facilitated towards these objectives.

 Promotes coordination.
 Planning helps to promote the coordinated effort on account of pre-
determined goals.
 Facilitates control.
 Planning and control are inseparable in the sense that unplanned
actions cannot be controlled.
 Control is nothing but making sure that activities conform to the
plans.

 .
 Improves competitive strength.
 Planning enables an enterprise to discover new opportunities,
which give it a competitive edge.
 Economical operation.
 it helps in proper utilization of resources and elimination of
unnecessary activities.
 This, in turn, leads to economy in operation.

 g) Encourages innovation.
 Many new ideas come to the mind of a manager when he is
planning.
 This creates an innovative and foresighted attitude among the
managers.
 Tackling complexities of modern business.
 With modern business becoming more and more complex,
 planning helps in getting a clear idea about what is to be done,
when it is to be done, where it is to be done and how it is to be
done.

 ELEMENTS OF PLANNING
 AIM
 Any organization should have defined aim
 Clearly defined aim can guide and direct the activities
 Leads to economical growth and prosperity
 ELEMENTS OF PLANNING
 Objective
 Are goals toward which the group activities are directed
 Effective management is management by objective.
 ELEMENTS OF PLANNING
 Policies
 Policies are the verbal , written basic guide that provide direction
for action.

 Policies guides the actions of an origination.

 ELEMENTS OF PLANNING
 PROCEDURE
 Procedure spells out the action to be taken in practice to achieve
organizational objective.

 ELEMENTS OF PLANNING
 Methods
 Methods are work plan
 Provides the manner and order to achieve the objecive.

 ELEMENTS OF PLANNING
 RULES
 Rules are different from procedures and policies.
 A rule requires a specific and definite action be taken or not taken
with respect to a situation.

 ELEMENTS OF PLANNING
 Budget
 Budget is essentially a plan expressed in quantitative terms.
 Like the plan, budget is flexible, realistic and operates within a
framework.
 It is a tool for planning and control.
 c. Budget is expressed in financial terms.

 ELEMENTS OF PLANNING
 Strategies
 Koontz and O'Donnell consider this as an important planning
element.

 "Strategy concerns the direction in which human and physical

resources will be deployed and applied in order to maximize the
chance of achieving a selected objective in the face of difficulties“.
 ELEMENTS OF PLANNING
 Strategies
 planning strategy serves as a master plan which the company
adopts for the realization of the objectives.

 It provides skill and judgment to the management to predict and

foresee what difficult and complex situations are likely to arise and
they can take timely action to avert them or at least to minimize the
risk and uncertainty.

PLANNING

STEPS OF PLANNING

Establishing objectives:

primary step in planning is to establish objectives for the enterprise

and then for each subordinate work unit.

Objectives specify the expected results

Establishing objectives:

indicate the end points of

what is to be done ?
where the primary emphasis is to be placed?
what is to be accomplished by network of strategies, policies,
procedures, rules, budgets, and programmers?

give direction to the major plan.

Developing of planning premises

PLANNING PREMISIS
Planning premises are defined as the anticipated environment in
which plans are expected to operate.
These are the conditions under which planning activities are to be
undertaken.
THESE PREMISES MAY BE INTERNAL AND EXTERNAL

Internal Premises are internal variables that affect the planning.

includes organizational policies, various resources, skills of the
workers, philosophy of management etc.

External Premises come from the external environment.

That is, economic, social, political, cultural and technological ,
competitor plans and action environment.
cannot be controlled by the business.

Determining alternative courses:

third step in planning is to search for and examine alternative courses

of action

There is seldom a plan for which reasonable alternatives do not exist.

It is most likely that alternative properly assessed may prove worthy

and meaningful.

Evaluating alternative courses:

After seeking out alternative courses and examining their strong and
weak points.

The next step is to evaluate the alternative by weighing them in light

of premises and goals which may appear to be more profitable

Selecting a course:
fifth step in planning is selecting a course of acton from among
alternatives.

is the point at which the plan is adopted, the real point of decision
making for accomplishment of organizational objectives.

6.Formulating derivative plans:

planning is seldom complete, so that formulating derivatives plan is

indicated.

are almost invariably required to support the basic plan.

E.g. staffing plan, operating plan, maintenance plan, store plan etc
6.Formulating derivative plans:

Plan do not accompanished themselves.

They require to be broken down into supporting plans.

Master plan is accompanished on the basis of derivative plans.

Establishing sequence of activities

The starting and finishing time are fixed for each piece of work.

Bad timing of a program results in their failure.

To maintain smooth flow of work, the sequence of operation should

be made carefully.

Establishing sequence of activities

Timing of sequence of activities is determined after formulating basic
and derivative plan, so that plan may be put into action.

Timing is essential consideration in planning

Feed back or follow up action

Necessary to see that plan that are prepared are being carried out in
accordance or not.

Required to see whether the plan is working well in present situation.

Feed back or follow up action

If condition have changed , it is necessary to replace the plan.

Regular follow p is necessary for effective implementation of plan.

BENEFIT OF PLANNING
Planning offsets future uncertainty and change.

A business concern has to work in an environment which is uncertain

and ever changing.

Planning helps the manager carving out the future course of action

brings a higher degree of certainty and order into the organisation.

BENEFIT OF PLANNING
Tackles increasing complexity in modern business.

A business concern has to work in an environment which is uncertain

and ever changing.
To run a modern business, there is need for a large number of people
with different specialisation and complex machines.

This makes it necessary for the management to depend on planning

BENEFIT OF PLANNING
Helps in coordination.

Planning, through its defined objectives, well publicised policies,

programmes and procedures helps the management in the
coordination process.

According to Koontz and O’ Donnell, ‘plans are selected courses

along which the management desires to co ordinate group action.”
Helps in exercising effective control.

Planning involves the determination in advance of the work to be

done, the person responsible to do it, the time to be taken to do that
work and the costs to be incurred.

This makes it easy to compare the actual performance with the

planned one.

In case of deviations, steps may be taken to find out reasons for such
deviations. Thus, planning helps in exercising effective control.
Helps in proper utilisation of the company’s
resources.
As planning involves deciding in advance of what to be done, when,
where, and by whom it is to be done etc.,

there is a possibility for the proper utilisation of company’s resources

achievement of company objectives at the cheapest and the best

manner.
Facilitates unity of action.
 Under planning, policies, procedures and programmes are
predetermined and every decision and action should be within the
framework of predetermined policies and procedures and
programmes.

This facilitates the unity of action and also avoids the confusion or
misunderstanding at any level.
Helps in avoiding business failures.

As planning involves the selection of

best objective,
unity of action,
coordination of activities,
economy in operation and
offsetting of future uncertainty and change,
there is a great possibilities of avoiding business failures.
Focus’s attention on organisation's goals.

Planning helps the manager to focuses attention on the organisational

goals and activities.

makes it easier to apply and coordinate the resources of the

organisation more efficiently to meet organizational goal.

Improves competitive strength.

planning enables the enterprise to discover new opportunities and

thereby shape its own future.

The enterprises which adopt planning will have the competitive edge
over the other enterprises which don’t have planning.
Secures economy in operation.

As planning involves the selection of the most profitable course of

action after evaluating various alternatives, the enterprise can achieve
best result at a minimum cost.

LIMITATION OF PLANNING
Problem of rapid change:

In a complex and rapidly changing environment, complications that

may rise often make planning extremely difficult.

LIMITATION OF PLANNING
Internal inflexibilities

Managers while going through the planning process have to work in a

set of given variables.

The major internal inflexibilities are psychological, policy and

procedures, and capital investment.

These variables often provides less flexibility in planning

LIMITATION OF PLANNING
External inflexibilities:
Managers are faced with much external inflexibility and they do not
have control over these

managers have little or no control over social, economic,

technological, and political forces.

These changes stand in the way of effective planning.

LIMITATION OF PLANNING
Rigidity:
Planning implies strict adherence to predetermined policies,
procedures and programmers.

This restricts individual freedom and initiates and desires for

creativity.

Time consuming:
Planning is time consuming and may delay in action in certain cases.

LIMITATION OF PLANNING
Costly:
Planning is an expensive exercise as a lot of money has to be spent
for preparing estimates, collecting information and facts for analysis,
etc.

REASON FOR FAILURE OF PLANNING

Failure to follow the plan
Failure to manage change
Under estimation of time requirement
Poor communication
Inability to predict external environment
Over estimation of resource
Failure to coordinate
Failure to obtain employee commitment

REASON FOR FAILURE OF PLANNING

Failure to understand the consumer
Unrealistic goals setting
Plans are overly complex
Plan are based on insufficient data
Undefined roles and responsibilities
Staffing requirement are not fully understood

 APPROACHES TO PLANNING

 TOP DOWN PLANNING

 The phrase “top-down” means that all the directions come from the
top.

 Objectives and goals are established at the highest level.

 not often willing to take advice or any guidance from lower level
employees.

 Those following the plan are not involved in the planning process.

 TOP DOWN PLANNING[Autocratic type]

 Employees are not included in any of the decision making process.

 Top-down planning is focused on keeping the decision making

process at the senior level.

 Employee are only motivated through either fear or incentives.

 It’s characteristics:
 Leaders makes all the decisions.

 order what to do & how to do, subordinates are not consulted.

 No advice , suggestion taken from juniors.

 Authority centralized in the leader

 Leader give reward & punishment

 Information is controlled by the leader.

 Can be used in situation as follows

 When subordinate are unskilled or have limited skills.

 When people don not have experience.

 When the group is unreliable and they are not interested in

decision making.
 Can be used in situation as follows

 In emergency or crisis situation where immediate plan is needed.

 Merits of TOP DOWN PLANNING

 Planning is done only by experienced top level senior.

 Less chances of trial and error/failure of planning.

 Effective in crisis & emergency situations.

 Increase organizational efficiency by saving time.

 Demerits of TOP DOWN PLANNING

 Subordinates participation in decision making is ignored.

 does not motive the employee

 Subordinates work by fear of punishment

 Demerits of TOP DOWN PLANNING

 Fail to develop sense of commitment among the employee.

 One way communication from top to down leads to

misunderstanding.

 Demerits of TOP DOWN PLANNING

 Team spirit of group will be low.

 Higher psychological need are not fulfilled if employee are not
involved in decision making which leads to low morale and low
productivity.

 APPROACHES TO PLANNING

 BOTTOM UP PLANNING

 The bottom-up approach implies team input in the project planning

and operating process.

 Team members are invited to participate in every step of the

management.

 The decision on a course of action is taken by the whole team.

 Bottom-up style allows managers to communicate goals and value.

 BOTTOM UP PLANNING

 Then team members are encouraged to develop personal to-do lists

with the steps necessary to reach the goal on their own.

 It empowers team members to think more creatively.

 They feel involved into the organizational development and know

that their initiatives are appreciated.

 Its featured are:

 consult with subordinates in decision making

 encouraged to participate & give ideas.

 Authority is delegated to subordinates

 Influence flows both ways from leaders to subordinates &

followers to leaders.

 Information shared between leader & employee

 Emphasis in ‘we’ rather than I and you

 Can be used in situation as follows

 Employee are knowledgeable, skilled and experienced to make

decision.

 Employee are motivated and desire in active involvement .

 Leader wishes to empower the group members.

 Merits of BOTTOM UP
 Employee are involved in decision making which motivate them
by giving them sense of recognition.

 Develops feeling of commitment towards organizational goals.

 Promote creativity and analytical thinking among employee.

 Result in high morale & productivity,

 Merits of BOTTOM UP

 Provides opportunities for development & growth of employee

 Satisfy follower higher psychological needs like self esteem and

self actualization thus boost up morale.

 Promote group cohesion through understanding and cooperation


Demerits of BOTTOM UP
 Decision making is time consuming & slow

 It can result in indiscipline

 Plan may fail/ trail and error are promoted.

 Lack of experienced decision may led to failure.

 PARTICIPATORY PLANNING

 A participatory approach is one in which everyone who has a stake

in the organization has a voice, either in person or by
representation.

 Staff of the organization that will run it, members of the target
population, community officials, interested citizens, and people
from involved agencies and other institutions all should be invited .

 PARTICIPATORY PLANNING
 Everyone's participation should be welcomed and respected.

 Process shouldn't be dominated by any individual or group or by a

single point of view.

 The important thing to remember here is the word participatory.

 PARTICIPATORY PLANNING

 The use of that term implies not just that you'll ask for someone's
opinion but rather each participant becomes an important
contributor to the planning process.

 A true participatory approach is one in which everyone's

perspective is considered.

 PARTICIPATORY PLANNING

 That doesn't mean that people can't challenge others' assumptions

or argue about what the best strategy might be.

 It does mean that everyone's thoughts are respected .

 PARTICIPATORY PLANNING

 It isn't necessarily assumed that the professionals or the well -

educated automatically know what's best.
 Everyone actually gets to participate in the planning process and
has some role in decision-making.

 ADVANTAGES OF A PARTICIPATORY PLANNING

 Participation carries feelings of ownership and builds a strong

base .

 Provides access to a broader range of perspectives and ideas.

 Bring together and establish ties

 ADVANTAGES OF A PARTICIPATORY PLANNING

 Participatory planning process builds trust, both between your

organization and individuals involved.

 implies respect for everyone in the community

 Disadvantages OF A PARTICIPATORY PLANNING

 Participatory process takes longer.

 Members may not agree with the "experts " about what is needed.

 It may be difficult to assure that all the right people get to the table.

 takes patience and commitment on everyone's part.

 Strategies, Policies and Procedure

 STRATEGY
 The term ‘strategy’ has been derived from Greek word ‘strategos’
which means general.

 The word strategy means the art of general.

 Strategy is management’s “game plan” for running the business.

 Strategy
 Managers need strategies to guide
 HOW the organization’s business will be conducted
 HOW performance targets will be achieved.

 Strategy includes the internal factors as well as the external factors

of the organization

 Strategy

 “ strategy is a course of action through which an organization tries

to relate itself with its environment to develop certain advantages
which help in achieving its objectives”

 POLICY
 Policies are standing plans that provide guidelines for decision
making.

 A policy is a deliberate system of principles to guide decisions and

achieve rational outcomes.

 A policy is a statement of intent, and is implemented as a

procedure.

 POLICY
 Policies are generally adopted by the Board or senior governance
body within an organization.

 Policies should be clear, stable, understandable and observable.

 PROCEDURES
 Procedures is a systematic way of handling regular events

 Procedures is guides to action rather than thinking

 They are chronological sequences of required actions for handling

 PROCEDURES

 Procedure indicates how it should be done

 They are the means by with decision are implemented

 POLICY
 Policy are written guidelines to follow.

 Policies are plans that provide guidelines for decision making.

 Policies are developed within organizations, governmental , local

and international level.

 POLICY
 Policies are standing plan that provide solution to recurring
problems by setting boundaries telling people what can be done
and what cannot be done.

 Policies ensure uniformity in action and thus make decision more

predictable and transparent.
 Policy tell people how to do.
 Policy is verbal, written guide that set up the boundaries that
provide limit and direction in which managerial action will take
place.
 Types of policy

 Originated policies:
 These polices are formulated at the top managements for guiding
the actions of subordinates.
 Types of policy
 II. Appealed policies:

 Arise because the particular case is not covered by the earlier

policies.

 These kinds of policies are developed out of the appealed made by

subordinates to their supervisors.

 Types of policy
 III. Imposed policies:

 The policy that are externally imposed on an organization that it

must follow are imposed policy.

 Policies are sometimes imposed on business by external agencies

such as government, trade union , nursing council, medical
council.

 Types of policy
 Iv. Implied policies:
 Policies that are stated neither in writing nor verbally but believed
to exist are implied policies.

 They actually develop out of action of superiors that people see

about them and believe to exist as policy.
 Benefits of policy

 guides and directs the action to all the members.

 insures the consistent action through out the organization.

 provide easy reference to all the members of organization

 Benefits of policy
 ensures the safety of members of the organization

 brings efficiency in management by focusing on objectives

 fosters good human relationship with in organizations

 Development of policy

 Policy making is a cyclical process

 It begins in the agenda setting stage with recognition and definition

of a significant problem and an organized call to government
action.

 In response, the legislative and government may formulate, adopt,

and implement a policy for addressing the problem.

 Analysis of policy effectiveness in turn often reveals shortcomings

in formulation or implementation of policy.


 Development of policy
 It was developed as a theory from “Harlod lasswell’s work”

 Problem identification and Agenda setting :

 The recognition of certain subject as problem demanding
immediate further government attention.

 Based on this problem agenda is set.

 Development of policy

 2. Policy Formulation:

 policy proposals can be formulated through political channels by

policy- planning organizations, government, state legislatures and
the president .

 Involves exploring a variation of options or alternative course of

action available for addressing the problem
 3. Policy Adoption/Legitimization :

 Government decides on ultimate course of action.

 Policy is legitimized by government officials; both elected and

appointed—the president, legislators, agency officials, and the
courts.

 4. Policy Implementation:

 The ultimate decision made earlier will be put into practice.

 Policy implementation is what happens after a policy is passed.

 5. Evaluation:

 Assesses the effectiveness of policy in terms of its perceived

intentions and results.

 determine whether the course of action is a success or failure by

examining its impact and outcomes

 ORGANIZATION
 ORGANIZATION

 What is organization?
 “organization in a general sense means systematic arrangement of
activities”

 Concept of organization
 Existence of organization can be traced back to the existence of life
itself.

 During tribal life

 men slowly learned the value of working together and meaning f
cooperation

 Later
 Extended to working in the neighbour
 Concept of organization
 Advancement of technology has made all the nation neighbour

 Today no individual or nation can exist without cooperation of

other

 Organization is Omni present.

 Concept of organization
 As pointed by out by Etzioni (1965)” we are born in an
organization, educated by organization and most of spend much of
our lives working for an organization”.

 ORGANISATION

 The term ‘Organization’ is derived from the word ‘Organism’

which means a structure of body divided into parts that are held
together by a fabric of relationship as one organic whole.

 ‘Organization’ can be defined as a group of people working

together to create a whole.

 ALLEN defines “Organization “ is the process of identifying

and grouping the work to be performed defining and
delegating responsibility and authority and establishing
relationship for the purpose of enabling people to work most
effectively together in accomplishing objectives”.
 An identifiable group of people contributing their efforts towards
the attainment of goals is called organization.
 -Mc. Farland
 There are three elements of organization:
 Departmentation
 It is the process of dividing and grouping of various activities into
departments or units.
 E.g. administrative, finance, service, purchase, etc.

 There are three elements of organization:

 Delegation
 It is the assignment of a part of the work to subordinates with the
powers and rights required to accomplish it

 creation of accountability for performance, of that particular

responsibility.

 Decentralization
 It is a system of delegation of authority and accountability on
permanent basis to the lower possible level enabling the
subordinates to work independently on routine operations.

 Importance OF Organization
 Aids to management

 It facilitates growth, creativity.

 It ensures optimum use resources.

 Importance OF Organization

 Establishes relationship among individual groups.

 Maintain Coordination.

 Importance OF Organization
 For outlining administrative control.

 To evaluate strength and weakness of the current structure.

 Importance OF Organization
 For showing the relationships with other departments and agencies

 To present the agency’s structural design to others.

 Importance OF Organization
 To make clear lines of authority so the every body knows who
comes under whom.

 To maintain unity of control, better discipline, fixed responsibility,

flexibility and prompt decision.
 Authority
 Right to take decisions that arises due to position in organizational
structure.

 Authority is the right to perform or command.

 It allows its holder to act in certain designated ways and to directly

influence the actions of others through orders.

 RESPONSIBILITY
 Responsibility is the
 obligation to perform
o or
o duty to carryout certain activities
 RESPONSIBILITY
o It is obligation of subordinates to perform assigned task.

o It arises from superior- sub ordinate relationship in an

organization.

o It is person specific.

 RESPONSIBILITY
o It is obligation of subordinates to perform assigned task.

o It arises from superior- sub ordinate relationship in an

organization.

o It is person specific.

 Accountability
 Accountability:
o the state of being accountable, liable, or answerable
o Requirement to report

o It creates a mechanism of control.

 Authority
 Authority is right to give order.

 It is the right to make decision.

 It is assigned to department and positions.

 It is right to influence the action of subordinates to achieve goals.

 Authority

 Authority is the right to perform or command.

 It allows its holder to act in certain designated ways and to directly

influence the actions of others through orders.

 Authority

 Types of Authority:

o Line Authority
o Staff Authority
o Functional authority

 Types of Authority:

 Line Authority

o Most fundamental authority within an orgn.

o Reflects existing superior subordinate relationship.

o It consist of right to make decision and give order concerning

their product, sales or finance related behaviour to
subordinates.
 Types of Authority:

 Line Authority
 o People directly responsible for these areas within the
organization are delegated line authority to assist in
performing their activity.

o flows from top to bottom in an organization hierarchy.

 Types of Authority:
 Staff Authority

o Staff authority consists of the right to advise or assist those

who possess line authority as well as other staff personnel.

o Manager with staff authority do not have decision making

power.
o e.g.
 The legal Advisor
 Counseling Role
 The Control Role

 Types of Authority:

 Functional Authority

o Is given to line or staff manager to do a specific job.

o Generally covers only specific task area and is operated for

designated amount of time
 Types of Authority:

 Features of Functional Authority

 Given to manager to perform specific unction
 Manager may be line manager or staff manager
 Not limited to particular department
 Covers full organization.
 It is an additions authority
 Removed when work is completed.
 POWER
 Power is boarder than authority

 Power is derived form the Latin verb potere which mean to be

able.

 Power is the capacity to influence the belief and action of other

people through the use of strength and energy.

 It is ability to influence event.

 POWER
 Power can be personal power.

 A person get his personal power from his personality or form his
expert knowledge.
 Difference between power and authority

 Authority
 Formal right given to manager to make decision or command.

 Flows downward in organization

 Power
 Personal ability to influence other or event.
 Can flow in any direction. Even subordinate have power if they
can influence their behaviour.
 Difference between power and authority

 Authority
 Authority relationship
 ( superior-suborinate relationship)

 Authority depends on the level of management.

 Power
 cannot be shown in ogr charts.

 Power does not depend on the level of management

 Difference between power and authority

 Authority
 Authority is always official in nature.

 Is given to authority or post

 Power
 Need not be official in nature

 Power lives in the person who uses it

 POWER
 Type of power
 Referent power
 Expert power
 Reward power
 Punishment power
 Legitimate power

 TYPE OF POWER

 Referent power

 Referent power refers to the ability of a leader to influence a

follower because of the follower loyalty, respect , friendship,
admiration , affection or desire to gain approval.

 Referent power is gained by leader who has strong interpersonal

relationship skills.
 TYPE OF POWER

 Referent power

 Group members gain a sense of personal satisfaction from

identification with a referent leader.

 To gain and maintain a leader’s approval and acceptance, a

follower is likely to do what the leader asks, develop a similar
attitude, and even imitate the leader’s behaviour

 TYPE OF POWER

 Referent power

 By showing genuine concern and demonstrating a general level of

respect for others, referent power tends to increase early in the
relationship between leader and follower
 TYPE OF POWER

 2. Expert power

 Expert power derives from group members’ assumptions that the

leader possesses superior skills, knowledge, and abilities.

 This expertise enables leaders to perform tasks and provides them

with a better understanding of the world around them.
 TYPE OF POWER

 2. Expert power

 Having critical knowledge allows a manager to gain power over

others who needed that knowledge.

 Is limited to specialized area e.g. expertise in music would be

powerful only in that are.
 3. Reward power

 based on the belief that a leader controls important resources and

rewards that the follower wants.

 Leaders most commonly use reward power with a promise to give

staff something in exchange for carrying out an assigned task, e.g.
a grade, a special privilege, a form of recognition, etc.

 3. Reward power

 When leaders offer the right rewards, that is - rewards that are
valued, fair, and in line with what they can deliver - reward power
is effective.
 In addition, being true to one’s word and using rewards in a non-
manipulative fashion is also essential.
 4. Punishment power

 Coercive power is the capacity to dispense punishments to those

who do not comply with requests or demands.

 coercive comes form authority.

 People exercise coercive power through reliance upon physical

strength, verbal faculty, withhold resources from others.
 4. Punishment power

 Examples of coercive power in the workplace include the ability

(implied or real) to fire, demote or transfer to undesirable
positions.
 Coercive power can be useful for deterring behaviour and at times
when compliance is absolutely necessary,.

 should be used predominantly as a last resort as it has significant

negative side effects.
 5. Legitimate power

 It is positional power

 Authorithity is also called legitimate power.

 Power gained by title or official position within an organization .

 It give leaders power to control resources and to reward and punish

others.

 DELEGATION
 Introduction
 Delegation is the assignment of authority and responsibility to
another person to carry out specific activities.

 DELEGATION

 Delegation provides a means for increasing productivities.

 Delegation empowers a subordinate to make decisions.

 DELEGATION

 Delegate- “to entrust to another; to appoint as one’s representative;

to assign responsibility or authority”.

 "Delegation is defined as the transfer of responsibility for the

performance of a task from one person to another"

 DELEGATION

 "The transfer of responsibility for the performance of an activity

from individual to another while retaining accountability for the
outcome". (American Nurses Association)

 Successful delegation results in

 Makes work easier.

 Improves efficiency.
 Increases employee effectiveness.
 Develops employees growth.
 Ensures that the right people do the right jobs.
 Principles of Delegation
 Assignment of duties in terms of expected results.

 Parity of authority and responsibility:

 There should be equality of authority and responsibility.

 Principles of Delegation

 Clarification of limits of authority:

o Clear limit of authority permit subordinate to exercise
initiatives to develop their personal capacity

o Should have freedom of action and right to know their area of

operation.
 Principles of Delegation
 Unity of command:
 An employee should receive orders form one superior only.

 Subordinates should always be placed under the guidance, control

and supervision of one supervisor

 Principle of exception.
 Steps for effective delegation for nursing management

 Six stages of delegation, based on the key steps described by Culp

and Smith (1997), are as follows:
 Stage 1: Deciding what to delegate
 Stage 2: Selecting delegatees
 Stage 3: Assigning tasks
 Stage 4: Assessing and discussing
 Stage 5:Monitor performance
 Stage 6:Feedback
 Steps for effective delegation for nursing management

 Stage 1: deciding what to delegate

 Delegators must decide what tasks should be delegated.

 To accomplish this, they must examine the current situation within

a particular work environment.

 For example, they must determine who does what, and when and
how tasks are to be completed (Maddux 1997).

 Stage 2: selecting delegatees

 Delegators must identify what skills are needed for particular tasks

 decide whether delegatees are the best people to carry them out.

 It is necessary to match the skills required for the tasks with

delegatees’ skills.

 Stage 2: selecting delegatees

 It is also important to decide whether they need extra training

before undertaking the task.
 Selecting the right people can enhance the professional
development of delegatees .

 Stage 3: Assigning tasks

 Delegators should describe the particular task in detail

 offer an explanation as to why delegatees were selected.

 Stage 3: Assigning tasks

 also discuss the responsibilities associated with the task

 outline clearly the level of authority associated with it.

 Stage 3: Assigning tasks

 It is important to check the delegated tasks and the responsibilities

are within the skill and experience of the delegatees

 this stage are important because they can promote trust between
delegators and delegatees .

 Stage 4: Assessing and discussing

 Delegators need to assess the tasks carried out by delegatee’s and

determine whether they are happy to undertake them.
 may include further discussion of the skills required and whether
they are competent to undertake them and whether further training
and education are required .

 Stage 4: Assessing and discussing

 If the activities at this stage are followed

 Prevent duplication of effort and the possibility of team members

working at cross purposes can be reduced.

 Stage 5:Monitor performance

 Delegatees should keep delegators informed of how the tasks is

progressing.

 it is important that delegators inform other team members of the

level of authority that has been assigned to delegatees while they
undertake the tasks .
 Stage 5:Monitor performance

 According to Tappen, supervision can improve self confidence of

the delegatees.

 Stage 6:Feedback

 Should ask employee regarding their view about his work.

 It is essential delegators share success or shortcomings of the

completed tasks or projects.

 Celebrating success can increase the delegatees’ commitment and

self esteem .

 REASON FOR UNDER DELEGATION

 The belief that “I can do it better myself”

 Lack of confidence and trust in workers

 Low self confidence, insecurity

 Vague job description

 REASON FOR UNDER DELEGATION

 Inadequate training

 Lack of adequate recruitment and selection

 Reluctance to take the risks involved in depending on others.

 Fear of loss of power

 REASON FOR UNDER DELEGATION

 Subordinate resistance to delegation

 Failure of the delegator to see the subordinates perspectives

 Workload assigned are highly challenging both physically and

mentally

 Belief of employees that they are incapable of completing the

delegated task.
 REASON FOR UNDER DELEGATION

 Delegating to a transcultural work team

 Factors which may affect delegation when dealing with
 sub-ordinates from different cultural background
 include :
 Communication
 Space
 Social organisation
 Time
 Environmental control
 Biological variations

 Limitation of delegation

 Misuse of Power
 In delegating authority, there is a risk of the delegate misusing his
power for personal gains.

 He may have access to confidential information, which he may

leak to the competitors

 Limitation of delegation

 Failure to Fulfill the Tasks

 The manager's instructions may not be well taken care of by the

delegate

 he may not be very particular about following them.

 Limitation of delegation

 Delay

 The delegate may take long to understand the new responsibility.

 delayed actions on his part may hamper his team's performance.

 Limitation of delegation

 Impact on Quality of Work

 The experience and knowledge that the manager has, may be

lacking in the delegate.

 He might make mistakes.

 This may impact the overall quality of work.

 .
 Limitation of delegation

 Managers are reluctant about delegating authority:

 sometimes due to fear of the delegate outsmarting them, and at

times due to a doubt about the delegate's dependability.

 LEADERSHIP
 Leadership

 Leadership is an important function of management.

 It is a key to effective managerial performance.

 Organizational success depend on the quality of leadership.

 According to Stephen Robbins:

 Leaderhip is the ability to influence the other people ,to
accomplish goals .That is it is the ability to influence the behaviour
of others ,towards the achievements of a mutually established goals
 Leadership is the activity to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a
group together and motivate it towards goals
 Keith Davis

 Function of Leadership
 Goal determination

 Environmental Adaptation:
 Leadership is innovation & change oriented
 it adapts the organization to the dynamic changes

 Coordination
 brings unity of action & harmony
 resolves conflicts among subordinates to maintain harmonious
relations.

 Motivation
 Leadership induces & energies for highest productivity.
 Teamwork is facilitated the motivation.

 Communication
 influences subordinates through flow of information.
 Both formal & informal channels are used for communication and
directing purposes.
 Cont.
 Representation:
 Leadership represent the organization to the outsides world.

 Organization Climate
 Leaders define & maintain organizational climate
 FUNCTION OF LEADRESHIP

 Set and plan goals realistically in participatory approach.

 Development flexibility in implementing plan

 Convince followers to accept the organizational goals and work

enthusiasm

 FUNCTION OF LEADRESHIP

 Appreciate the ideas given by followers

 Inspire the workers to give their best to the organization.

 Provide a sense of security to follower by dealing with problem

positively

 FUNCTION OF LEADRESHIP

 Acts as a motivator

 Give suggestion to the problems

 Give due respect to subordinates

 Promote interpersonal relation within the organization

 FUNCTION OF LEADRESHIP

 Acts as mediator to solve problems or conflicts

 Be open to change

 Give non discriminative treatment to all

 Théories of leadership
 Théories of leadership
 1.Great man theory by Aristotle

 is the one of the oldest theory of leadership.

 states that certain persons are “ born to be leader” and that

leadership ability is inherited and can not be taught or learned .

 According to this theory ,an effective leader exerts control over all
aspects of a situation .

 2.Trait Theory

 This theory is described by Kelly (1974).

 According to this theory, leadership qualities can be identified and

then taught to others
 Everyone can be a leader if develop the necessary personality traits
or the qualities.

 A broad classification of six categories of

 trait are as follows:

 Physical characteristics of a leader such as age ,height ,weigh etc.

 Background characteristics –education ,social status and

experience.

 Intelligence
 d. Personality –alertness, enthusiasm, extroversion, independence,
self-confidence, authoritarian.

 e. Task oriented characteristics

 f. Social characteristics- Supervisory ability, cooperativeness,

popularity, prestige,tact,diplomacy.

 3. Situational Theory

 first proposed in the late 1930s .

 This theory is expanded in the trait theory

 essential trait for a leader vary, are determined by a particular

situation.

 3. Situational Theory
 Based on the situation ,an effective leader adopts an appropriate
leadership style.
 According to this theory we can find five
 leaders as follows:

 1.Natural leaders –
 Here the person becomes a leader inspite if himself.
 He does not seek role ,it is trusted up on him by the group and by
the tide of events.

 2.Charismatic leader -
 Here the person is an authentic hero in the eyes of his followers
,for he can do no wrong.

 He or she inspire people to make any sacrifice.

 3.Rational leader –
 Here the person is consistent and persistent

 4.Consesus leader –
 This leader is perceived as acceptable to all.

 5.Leader by force –
 Here the leaders power speaks through the nozzle of gun.
 He/she dominates others through fear.
 The situational leadership uses the following
 elements in their Styles:

 Directing –
 The leader provides specific instructions for task accomplishments
.

 Coaching-
 The leader directs and closely supervises task accomplishments
 explains decisions ,seek suggestions and supports progress.

 Supporting-
 supports the efforts of the subordinates towards task
accomplishment
 shares responsibility for decision making with employees.

 Delegating-
 The leader gives the responsibility for decision making and
problem solving to subordinates.

 4.BEHAVIOURAL THEORY OF LEADERSHIP STYLE

 are based on the belief that great leaders are made not born.

 focuses on the actions of leaders not on mental qualities or internal

states.
 4.BEHAVIOURAL THEORY OF LEADERSHIP STYLE

 According to this theory people can learn to become leaders

through teaching and observation

 According to this theory, styles of leadership are given below:

 Autocratic style
 leader takes all the decision and assign all responsibility to himself

 task oriented .

 Autocratic style

 uses positional and personal power for all goal settings and
decision making .

 make decision without the participation of the people concerned.

 Behaviors of autocratic leader

 -Strong control is maintained over the group

 -Communication flows downwards
 -Decision making does not involves others
 -Emphasis on difference and status.
 -Criticism is punitive(harsh)

 Democratic style
 leader shares little control with group members

 encourages them to participate in decision making and to co-

operate in carrying out decisions.

 Democratic style

 It is creative leadership

 delegates authority to subordinates.

 Behaviors

 -Less control is maintained

 -Economic and other award are used to motivate

 -Others are directive through suggestions and guidance

 Behaviors

 -Communication flows up to down

 -Decision making involves others

 -Emphasis in ‘we’ rather than I and you

 -Criticism is constructive
 Participation style

 type of leadership is a compromise between autocratic and

democratic style.

 In this style ,the manager presents her or his analysis of problems

and proposals for action to employees, inviting their criticism and
comments.

 Laissez-faire style

 also referred to as the freedom style or permissive leadership

 Leader denies responsibility

 leaves all the decision making and responsibility to the group.

 Behavior

 -is permissive with little or no control

 -Little or no direction is provided

 -Communication is between members of group and upward and

downward

 -Emphasis on the group

 -Criticism not given

 Bureaucratic leadership style

 similar to autocratic leadership but places more emphasis on
adhering to rigid rules and procedures .

 very structured and follows the procedure as they had been

established.

 Bureaucratic leadership style

 ensures that all the steps had been followed prior sending it to the
next authority.

 ensures quality, increase security and decrease corruption .

 Parental leadership style

 leader fosters obedience and dependency in group members.

 5. Participative Theories

 suggest that the ideal leadership style is one that takes the input of
others in to account.

 These leaders encourage participation and contribution from group

members

 5. Participative Theories

 help group members feel more relevant and committed to the

decision making process.

 6.Transformational Leadership
 leader built trust and self esteem in themselves and others.

 attempts to create a work place that is meaningful, inspiring and

motivational .

 goal of transformational leadership is to transform people .

 7. Contingency Theory

 Fred Fieldler introduced the contingency theory in 1960s.

 focus on particular variables related to the environment that might

determine which particular style of leadership is best suited for the
situation.

 5. Contingency Theory

 According to this theory no leadership style is best in all situations.

 Success depends upon a number of variables which includes

 leadership-member relationship,
 degree of task structure,
 leaders position of power,
 quality of the followers &
 aspects of the situation
 Personal characteristic s of a leader
 Physical fitness
 Should be physically fit and in sound health
 Should have energy and enthusiasm.
 Should be willing to work hard
 Moral integrity
 Should be a man of character

 Should behave in dignified manner

 Possess trait like honesty , loyalty, devotion and personal integrity.

 Should sense of fair play and justice

 Self-confidence
 Should now his strength and weakness

 Should have drive to lead

 Should have optimistic outlook

 Technical competence
 Should possess job related knowledge

 Should possess expertise in job matter

 Should have analytical ability

 Managerial qualities
 Should have qualities of
 planning,
 decision making,
 organizing,
 motivating,
 communicating and controlling.

 Should mange time, stress and conflict effectively

 Creativity
 Should be imaginative and creative.
 Manage change effectively to achieve goals

 Should have desire for learning

 Vision

 Should know where he want to go and how to go there.

 Should be charismatic

 Situational adaptation
 Should be adaptable to changing environment
 Should adapt quickly to change

 Good Listener
 Should be good listener
 Should listen to his followe
 Courage: Being a leader means taking some risks.

 Initiative: Good ideas are not enough. To be a leader ,one must act
on those good ideas

 Energy : Leadership also requires energy.

 Optimism : The ability to see a problem as an opportunity is part

of the optimism.

 .
  Balance: The most effective leaders have found a balance
between work and play.

 Ability to handle stress: Cope with stress in a positive and

healthy manner self

 Intellectual skill

 Enthusiasm

 Tactful: Ability to win the loyalty and support of others.

 Emotional control

 Awareness responsibilities and accountability

 Quality of building human relations

 DIFFERENT APPROACHES TO RESEARCH

Leadership style deals with the way leaders influences the followers.
The widely recognized leadership style are:

• Autocratic leadership style

• Democratic leadership style
• Free Rein Style of leadership

1.Autocratic Style:
 Under this style power & decision making are centralized in the
leader.
It’s characteristics:

 Leaders makes all the decisions.

 order what to do & how to do, subordinates are not consulted
 Leaders have position based authority.

 demand total obedience from subordinates, influences flows from

leaders to followers.

 Authority centralized in the leader

 Leader give reward & punishment

 Information is controlled by the leader

Merits of Autocratic leadership:

 Effective in crisis & emergency situations.

 Chain of command is clear & understand by all
 Discipline is maintained by organization

Demerits of Autocratic leadership:

 Subordinates participation in decision making is ignored

 does not motive the employee
 Subordinates work by fear of punishment
 does not consider situational need
 Democratic Leadership
 In this style power & decision making is decentralization.

 Discussion, consultation & participation is encouraged.

 Democratic Leadership
Its featured are:
 consult with subordinates in decision making
 encouraged to participate & give ideas.
 Authority is delegates to subordinates
Its featured are:.

 Influence flows both ways from leaders to subordinates & followers

to leaders.

 Performance based reward & punishment

 Information shared between leader & employee
 Merits of democratic style
 Employee are involved in decision making.
 Promote participation
 Effective where team approach is needed
 Result in high morale & productivity,
 Merits of democratic style
 people committed to organizational goal
 Motivates subordinates
 Provides opportunities for development & growth of employee
 creativity is encouraged
 Demerits of democratic style
Decision making is time consuming & slow
It can result in indiscipline
Leader may avoid responsibility
 Free rein (laissez-faire) style
Under this style power & decision making is entrusted to the
subordinates.

Its features are:

 Leader use vary little power & control,
 they serve as an information centre
 Free rein (laissez-faire) style
 Employee have complete freedom to make decision with
decentralized authority & responsibility

 they have high level of independency in decision making

 Employee set their own goals, their potential is effectively utilized
 Merits of free rein style
 Employee have freedom & autonomy to work,
 they set their own goal
 Effective for research oriented & creative job
 Employee morale is high
Demerits of free rein style

 Employee lack focus towards goal achievement

 Productivity lack
 Responsibility avoided
 Coordination is poor
TOOLS AND TECHNQUE OF PLANNING



SWOT Analysis
SWOT analysis

 SWOT analysis stands for Strengths, Weaknesses, Opportunities

and Threats.
 Technique is credited to Albert Humphrey who led a research
project at Stanford University in the 1960s and 1970s.
 It is a planning tool used to identify Strengths, Weaknesses,
Opportunities and Threats involved in a business.
 It is usually used as part of Strategic Planning Process.

 It is the foundation for evaluating the internal strength and weakness

and the probable opportunities and threats from the external
environment.

 It views all positive and negative factors inside and outside the firm
that affect the success.
 SWOT
 Factors affecting an organization can usually be classified as:

 Internal factors
 Strengths (S)
 Weaknesses (W)

 External factors
 Opportunities (O)
 Threats (T)

 SWOT
 Strengths- Internal attributes that are helpful to the organization to
achieving its objective.

 Weaknesses – Internal attributes that are harmful to the organization

to achieving its objective
 SWOT
 STRENGTHS: INTERNAL FACTOR
 Strengths are positive attributes, internal to an organization.

 Strength are those factors that makes an organization more

competitive than its peer organization.

 Strengths are
 Things a business is good at.
 Distinctive competencies and resources that will help the
business achieve its objectives

 STRENGTHS
 Examples
 High market share
 High quality Leadership & management skills
 Financial resources
 Research and development capabilities

 Examples
 Brand reputation
 Employee skills
 High productivity
 WEAKNESS- INTERNAL FACTOR
 Limitation, faults or defect within an organization that detract from
its ability to attain the core goal.
 In which areas might the organization improve?

 Weaknesses are:
 Things the business lacks or does poorly
 Where organization has inferior capabilities or resources as
compared to competitor.
 weakness
 Examples
 Outdated technology
 Poor quality product
 Lack of innovation
 A weak brand name
 High costs
 Examples
 Low productivity
 Skills shortages
 De-motivated staff
 OPPORTUNITIES – external factor
 An opportunity include any favorable current situation in the
organization external environment that enhance competitive
position.

 What opportunities exist in the environment which will propel the

organization?

 OPPORTUNITIES
 Examples
 Rapid market growth,

 Rival firms are weak

 New uses for product increased

 Examples
 Economic boom

 Government deregulation

 Sales decline for a substitute product .

 THREATS – EXTERNAL FACTOR

 Threats are any unfavorable situation , trends or impending change in
the organization environment that may hinder or prevent the business
from achieving its objectives
threats
 Examples
 Entry of foreign competitors

 Introduction of new substitute products

 Changing customer needs/tastes

 Examples
 Rival firms adopt new strategies

 Increased government regulation.

 Swot-analysis
norvic hospital
 NEEDS ASSESSMENT

 Need assessment involves determining the gap in the organization's

current state.

 A needs assessment is a planning tool used by organizations to

determine priorities or allocate resources and make organizational
improvements,.

 Through need assessment , a plan of action can be made to bring the

organization closer to its desired state.

STEPS OF NEED ASSESSMENT

1. Exploration and identification.

2. Data gathering and analysis.
3. Utilization.
4. Evaluation.

STEPS OF NEED ASSESSMENT

1. Exploration and identification.
 determine organization's needs whether it be resources,
technologies, or market condition.

 It's about figuring out where you are and where you want to be.

 discover other undisclosed needs that may be hindering you from

moving from where you are to where you want to be.
STEPS OF NEED ASSESSMENT

2. Data gathering and analysis.

 At this stage data are collected to better understand the gaps (needs)
between where you are and where you want to be.

 Data may be collected from internal company records or externally

through market research techniques such as surveys .

 After the data is collected, it is organized and analyzed.

3. Utilization.
 Analyzed data is used to create alternative, selecting and implement
it.
In this step:
 Set priorities.
 evaluate solutions.
 apply a cost-benefit analysis to determine which solution is best in
light of the relative costs and benefits .
 Choose a plan to implement and then allocate the resources
necessary for implementation.

4. Evaluation.

 While many organizations will not evaluate the results of their needs
assessment, smart organizations do.

 Evaluate the results of the action plan against the results: has the
action plan placed you closer to where you want to be