UNIT I 1. Explain the nature & characteristics of management.

1. Management as an activity ( or a process): manager performs a managerial activity task performed by a manager INPUT PROCESS OUTPUT 5m Planning Achievement of goals Men Organizing Profit/loss Money Staffing Performance of the firm Machine Directing Materials& Controlling Methods 2. Management is a universal process: - management can be noticed in all spheres of life - management activity is basically the same everywhere 3. Management is factor of production: - production activity - just as land, labour. Capital and organization. 4. Management is goal-oriented: - to accomplish the objectives of a enterprise - may be economic, socio-economic, social and human 5. Management is intangible: - the result of its efforts. 6. Management is purposeful: - deals with the achievement of something - success is measured by the objectives are achieved. 7. Decision-making: - it involves the evaluation and selection of alternatives.

2. Discuss about the Evolution of management.

Evolution of management. 1. Pre- scientific management -1880 AD 2. Scientific management (1880- 1920) 3. Human Relation period (1920-1950) 4. Modern management period (1950- present) I.PRE-SCIENTIFIC MANAGEMENT- 1880 AD 1. ROMAN CATHOLIC CHURCH: formal organization in the history of the western civilization Division work based on specialization employment of staff officers to advise the line managers 2.. ROBERT OWENS (1771-1858) -Robert owens, a successful textile mill manager -treated the workers in a fair way - provided incentives, improved working conditions, fair wages - leads to co-operation and maximum production. 3.CHARLES BABBAGE (1792-1871)

-Charles Babbage, a scientist mainly interested in mathematics, contribution to the management theory by developing the principles of cost accounting and the nature of relationship between various disciplines. -He concentrated on production problems and stressed the importance of a) division and assignment of work on the basis of skill and b) the means of determining the feasibility of replacing a replacing manual operations with automatic machinery. II. SCIENTIFIC MANAGEMENT (1880-1920) 1.HENRY FAYOL (1841-1925) -He was a French mining engineer who turned a leading industrialist and successful manager and rose to the position the chief management director. -In his famous work, General and industrial administration, Fayol has listed 14 principles of administration. -He evolved and general theory of administration to be applied in any field of organized activity, particularly at the top level of management. -He is father of management 2.F.W TAYLOR (1856-1915) -He has earned for himself an important place in the management thought. -He is called the father of scientific management movement which seeks to apply scientific method to the problem of management. -Taylor published the following articles: -i.A Piece Rate System, ii. Shop Management iii. On the Art of Cutting Metals and The Principles of Scientific Management which was published in 1911. 3. FRANK GILBERTH (1868-1924) -Frank bunker Gilberth and Lillian Moller Gilberth were a husband and wife team. They made significant contributions to motion study, fatigue study and work simplification. -He analysis of the ob convinced him that many of the body movements could be eliminated or combined to simplify the job and to increase productivity. -He found the most efficient and economical motions for each task. This increased the workers moral and productivity and reduced his fatigue. 4. HENRY L. GANTT (1861-1919) -He was an associate of Taylor at Midvale and Bethlehem steel works. -He developed the techniques of work scheduling and control. -His significant contribution was the famous Gantt chart which is still used for scheduling and control of work. -He also developed the Task and Bonus Plan under which a minimum wage is guaranteed to all workers irrespective of output. -He believed that is all problems of management, the human element is the most important. III. HUMAN RELATIONS PERIOD (1920-1950) 1. GEORGE ELTON MAYO (1880-1949) -He was a professor of industrial psychology at the Harvard Business School. He published several books and papers, e.g i. Human Problem of an Industrial Civilization, Management and Morale, The Social Problem of an Industrial Organization, Training for Human Relation etc. -He served as the leader of the team which carried out the famous Hawthorne Experiments, these experiments were conducted in the Hawthorne plant of West Electric Company in Chicago (USA) from 1927 to 1932. -Hawthorne Experiments may be classified into four stages: i. Illumination experimentsdesigned to Asses the effects of illumination on employee efficiency.

ii. iii. iv.

Team room experimentdesigned to judge the influence of working conditions (duration of rest periods, length of the work week, wage incentives, etc) on worker performance. These were experimental in nature. Interviewing studies- undertaken to improve employee attitudes. These were psychological in nature. Observational studies carried out to understand the factors influencing informal organization of work groups. These were sociological in nature.

IV. MODERN MANAGEMENT PERIOD 1950 at present 1. DOUGLAS MCGREGOR (1906-1964) -He was a professor of management at the MIT(USA). -He is known for the development of motivation theory. He developed Theory X and Theory Y. -He advocated motivation by participation and job enrichment. 2. PETER F. DRUCKER (1909-TILL DATE) -Drucker is now a professor of social sciences at Claremont graduate school, California. -His most popular book is The Practice of Management published in 1954 -He introduced the concept of MBO (Management By Objectives) and self-control in early fifties. -He has emphasized creative and innovative management and he is against bureaucratic management -He has identified three important phases in organizing activity analysis, decision analysis and relation analysis.

3. Explain about the Schools of Management thought or different approaches to management.

SCHOOLS OF MANAGEMENT THOUGHT (OR) DIFFERENT APPROACHES TO MANAGEMENT. Management thoughts have been termed as pattern approaches, or schools of management. Each of these employs certain beliefs, views, and formats. 1.Empirical Approach: it bases its methods on a close study of past managerial experiences and management cases. Studies experience through cases. Identifies successes and failures. Main contributors to this approach are Earnest Dale, Moony and Rellay, Urwick and many other management practioners. 2. Human Behaviour Approach: a) this approach draws heavily its concepts from psychology and sociology. b) Emphasis is placed on getting greater productivity through motivation and good human relations. c) Motivation, leadership, communication, participative management and group dynamics are the core of this approach. Beginning from the famous Hawthorne Experiments, contributions have come from many psychologists and sociologist notably from Maslow, Hers berg. McGregor etc 3. Social System Approach: The organization is essentially a cultural system composed of people who work in co-operation. a) Relationships exist among the external and internal environment of the organization. b) Co-operation among the group members is necessary for the achievement of organizational objectives. The real pioneer of social systems approach is Chester Barnard. 4. Decision Theory Approach: It concentrates on rational decisions and it is real job of every manager in the organization. Decision of what to achieve and how to achieve it are the vital characteristics and challenges of every manager. Major contributors are Simon, Forrester Cyert etc.

5.Mathematical approach: This school visualizes management as a logically entity. The action can be expressed in terms of mathematical symbols, relationships and measurable data. The major contributors included in this school are Newman, Russel Ackoff etc. 6.Social Technical system approach: This approach views an organization as two systems a) a social system and b) technical system, which necessarily interact. By Trist and Bamforth. 7.Systems approach: the system approach of management is of recent origin, having developed in late 1950. The system approach has made a significant contribution on management discipline and practices. Systems have boundaries, but they also interact with the external environment; i.e., organizations are open system. 8.Group Behaviour approach: emphasis on behavior of the people in groups. Based on sociology and social psychology. The study of large groups is often called organization Behaviour. 9.Mckinseys framework: the seven S are 1. Strategy, 2.structure, 3.systems, 4.style, 5.staff, 6.shared values, 7. skills 4.

Differentiate between Management & Administration.

Management VS administration There has been a controversy on the use of the two terms-management and administration. Administration is different from management: Administration is a higher-level activity while management is a lower level management. Administration is a determinative function concerned with the determination of objectives and policies while management is an executive function involving the implementation of polices. Administration 1. Legislative and determinative function. 2. Determination of objectives and policies 3. Provides a sketch of the enterprise. Management 1.executive function 2.Implementation of policies 3.provides the entire body mainly by administrative

4. Influenced mainly by public opinion and 4.influenced other outside forces. decisions 5. Mainly a top level function 6. Involves thinking and planning

5.mainly a lower level function 6.involves doing and acting

BOD Administration MD Production manager Plant superintendent Supervisor

Management

5. Explain the Levels of Management.

LEVELS OF MANAGEMENT: The different levels of management may be classified into three categories Levels of management: Board of directors Managing director

Production Manager Plant Superintend

Finance Manager chief account financial officer

marketing managermanag branch manager

HR manager

training officer

Foremen clerks Workers

sales officer salesmen

Management /industrial management has got the following activity levels. 1.Top-level management: -Top level management includes a) Board of Directors b) Managing Director, c) Chief executive, d) General manger, e) Owners, f) Shareholders. Setting basic goals and objectives. Expanding or contracting activities Establishing policies Monitoring performance Designing/Redesigning organization system Shouldering financial responsibilities etc. 2. Upper Middle Management -Upper Middle Management includes a) sales executive (manager), production executive, financial executive, R&D executives, Accounts executive - Establishment of the organization. Selection of staff for lower levels of management Installing different departments Designing operating policies and routines Assigning duties to their subordinates etc. 3.Middle Management It includes a) Superintends, Branch manager, General foreman, etc.

- To cooperate to run organization smoothly - To understand interlocking of departments in major policies - To achieve coordination between different parts of the organization - To conduct training for employee development - To build an efficient company team spirit 4. Lower Management It includes a) Foremen, Supervisors, or charge-hands, office superintendent, inspectors, etc. - Direct supervision of workers and their work - Developing and improving work methods and operations - Inspection function - Imparting instruction to workers - To give finishing touch to the plans and policies of top management - To act as a link between top management and the operating force (i.e workers) - To communicate the feeling of workers to the top management. 5. Operating Force It includes a) Workers, rank and file workman, skilled, semi-killed and unskilled. - To do work on machines or manually, using tools, etc - To work independently (in case of skilled worker) or under the guidance of supervisor.

6. Explain the details regarding Management Skills.

MANAGEMENT SKILLS: By managerial skills, we mean the skills or qualities desired in managers, the possession of which would enable them to act better as practicing managers. 1. Technical skill: - Technical skill might be termed as technical expertise. - It is an imperative sill for managers at the lower level management. Because it is actually these people who guide and supervise work of operators under their subordination. - Accordingly, it may range from knowledge regarding operation and repair of a machinery, storage of materials, to training of subordinates. 2.Human skill: - By human skill we mean the ability to tactfully deal with human beings and mould their behavior at work in the desired manner to help attain the common objectives of the enterprise-most effectively and efficiently. - A manager has to provide effective supervision, motivation and leadership that part of his subordinates. - A human skill is equally needed by all manages- from highest to the lowest authority in the management hierarchy. - Application of human knowledge and skill may involve motivating the sales force to achieve revised targets, or persuading the subordinates to effect economies, and so on. 3. Conceptual skill - It is concerned with concepts or ideas. - It is imperative for top management level, necessary for the middle management level and desirable for the lower level management

Application of conceptual knowledge and skills may involve formulation of a plan to introduce a new product, to explore new markets, or trying out new methods of production. skills and Management Level Top -----------------------------------------------------------------Middle --------------------------Lower -------------

7. Explain the Managerial Roles of the Manager in an Organisation.

MANAGERIAL ROLES: Many managers, especially at the top and middle management levels, perform some such functions, as could not, properly, be called management functions. I. Interpersonal roles: a) Figurehead: i. Attending the wedding ceremony of an employee of the organization. ii. Entertaining VIP visitors and taking them to lunch or dinner. iii. In this role the manager performs duties of a legal or ceremonial nature, such as welcoming visitors, giving testimonials to employees. b) Leader: In this role the manager provides the dynamic force and direction to his subordinates by means of guidance and motivation. c) Liaison: Dealing with public grievances and complaints for betterment of public relations. The manager maintains or helps to maintain a link of the enterprise with outside parties; which is necessary for collecting useful information for the enterprise and developing good relations of the enterprise with important sectors of society. iii. Liaison helps the manager to establish mutually helpful horizontal relationship II. Informational roles: a) Monitor: i. In this role the manager receives and analyses information form the outside world and from within the organization, for transmission to appropriate people. b) Disseminator: i. The information received from outside and from within the organization is analyzed from the point of view of its relevance. The relevant information is then passed on to the appropriate persons both within and outside the organization. ii. Manager performs the role of a disseminator in the sense that he shares the information and experience with others. c) Spokesman: i. The manager acts as a representative of the organization to transmit information to the outside world. i. ii.

ii.

When he negotiates with the trade unions or talks to the press person, he acts as a spokesman of the organization.

III. Decisional roles: a) Entrepreneur: i. A manager assumes the role of an entrepreneur when he initiates any change in technology or work methods. ii. Example: manager makes a decision to acquire new machine or modify work methods. b) Disturbance handler: i. In this role the manager is a troubleshooter, rushing in to provide speedy solution to a crisis. Breakdown of a machine, dispute between subordinates, strike call by labour union, withdrawal of credit facility by suppliers of material, loss of a valued customer. c) Resource allocator: i. The manager has to determine the distribution of organizational resources such as 5Ms. ii. Accordingly, setting of a time schedule for the completion of a job, or approval of expenditure on a particular project is the functions which the manager performs in the role of a resource allocator. d) Negotiator: i. The managers role as a negotiator consists in settlement of terms and conditions with various parties-particularly outside the enterprise. ii. A role could be-Settlement about wage, working conditions, bonus, workers participation in management etc. with labour union. -Settlement about price, delivery of goods, after-sales service and other issue with major customers. -Bargaining with suppliers of raw materials or goods.

8. Explain about 14 principles of management.

HENTRY FAYOLS CONTRIBUTION TO MANAGEMENT: a) Introduction to fayol and his work Henry Fayol (1841-1925) was a French mining who turned a leading industrialist and successful manager. He was a mining engineer in a French mining and rose to the position of the chief Managing Director. Fayols classification of business functions: Technical activities (relating to production) Commercial activities (relating to buying, selling or exchange) Financial activities (relating to search for and optimum use of capital i.e., finances) Security activities (relating to protection of the properties and personnel of the enterprise) Accounting activities(( relating to a systematic recording of business transactions, including statistics also) General principles of management: Fayol advocated fourteen principles of management. 1. Division of Work: division of work leading to specialization result in increased human efficiency; as through the application of this principle, much more production is possible with the same amount of human efforts. It results in efficient use of resources and increases productivity. This is applicable to both managerial and technical functions. 2. Authority and responsibility: it is the power inherent in a managerial position which enables a manager to command subordinates to work towards the attainment of enterprise objectives.

Responsibility, is the reverse of authority; whose essence is an obligation owed by a subordinate to the superior for the proper performance of the job for which authority is granted to the former. 3. Discipline: discipline is absolutely necessary for the smooth running of an organization. Discipline means following rules, regulations, policies and procedures by all employees of organization. 4. Unity of command: an employee should receive orders from one supervisor only to avoid possible confusion and conflict. This principle is useful in the clarification of authority responsibility relationships. 5. Unity of direction: all the activities must be aimed at one common objective. It implies that for each group of activities having the same objective. There must be one head and one plan. 6. Subordination of individual interest to general interest: the interest of one employee or group should not be given importance over the interest and goals of organization. 7. Remuneration of personnel: remuneration of personnel is the price paid or payable to people managers and workers- for their service rendered towards the attainment of the enterprise objectives. 8. Centralization authority: it refers to a reservation of decision-making authority at top levels of management. Decentralization, on the other hand, means a dispersal of authority from the central (toplevel) points to middle, and specially lower level of management. 9. Scalar chain Management may be regarded as a chain of superiors. There should be an unbroken line of authority and command through all levels from the highest ( i.e., general manager)to the lowest ranks (employee). 10. Order: this promotes the idea that everything (e.g. materials) and everyone (human being) has his place in the organization. Materials and human beings should be arranged such that right material (think)/ person is in the right place. 11. Equity of treatment: - Managers should have fairness in treatment for all his subordinates -Manger should deal with his subordinates with kindness and justice. -This will make employees more loyal and devoted towards the management. 12. Stability -Stable and secure work force is an asset to the enterprise, because unnecessary labour turnovers are costly. -An average employee who stays with the concern is much better than outstanding employees who merely come and go. -Instability is the result of bad management. 13. Initiative: -Mangers should sacrifice their personal vanity in order to permit their subordinates to exercise their own initiative. -A manager should encourage his subordinates to take initiative. 14. Esprit de corps -This principle of management emphasizes the need for teamwork (harmony, and proper understanding) among the employees and shows the importance of communications in obtaining such teamwork. - It is unity of strength

9. Explain about the contributions of F.W. Taylor in Scientific Management.

Contribution of F.W.Taylor He is called that father of scientific management. Taylors scientific management is popularly called as Taylorism.

Scientific management involves the application of a scientific approach to management decision-making; and discarding at the same time, all unscientific approach as like-rule of the thumb, a hit or miss approach and a trial and error approach. Definition of scientific management: Scientific management consists in knowing what you (i.e management) want men to do exactly; and seeing to it that they do it in the best and the cheapest manner. Principle of scientific management: 1. Science, not the rule of thumb. The basic principle of scientific management is the adoption of a scientific approach to managerial decision making; and a complete discard of all unscientific approaches, hitherto practiced by management. 2. Harmony, not discord Harmony refers to the unity of action; while discords refer to differences in approach. 3. Co-operation, not individualism Co-operation refers to working, on the part of people, towards the attainment of group objectives; while regarding their individual objectives as subordinate to the general interest. 4. Maximum production, in place of restricted production. His view the most dangerous evil of the industrial system was a deliberate restriction of output. 5. Development of each person to the greatest of his capabilities. Management must endeavor to develop people to the greatest of their capabilities to ensure maximum prosperity for both employees and employers. 6. A more equal division of responsibility between management and workers. This principle of scientific management recommends a separation of planning from execution. 7. Mental revolution on the part of management and workers. It involves a complete mental revolution on the part of both sides to industry viz workers and management.

10. Explain about the Taylors scientific management.

AN OUTLINE STRUCTURE OF TAYLORS SCIENTIFIC MANAGEMENT 1. Separation of planning and doing. Before Taylor scientific management, worker himself used to decide how he had to work and what instruments were necessary. Taylor has emphasized that planning function should be separated from actual performance and should be given to specialists. 2. Job analysis: There is one best way of doing a job which requires least movement, consequently less time and cost. In very industry, this way should be determined which involves time, motion and fatigue study. i. Time study: Time study involves the determination of time a movement takes to complete. The movement, which takes minimum time, is the best. ii. Motion study: it involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements. iii. Fatigue study: this indicates that the workers feel fatigued after putting in work for a certain period and they are not able to do the work at their full capacity. Thus, they should be provided appropriate rest at appropriated intervals. The fatigue study shows the time and frequency of rest. 3. Standardization of raw materials, tools and working conditions: i) Raw materials, tools, machines and other facilities of work must be of a reasonable good quality so that the quality of production is reasonable. ii) Another variety of standardization which Taylor refers to is uniformity in providing work facilities and work conditions to all workers, doing a similar type of job.

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4. Scientific selection and training of workers. Selection of workers should be on scientific basis. A worker should be given worker which he physically and technically most suitable. Training should be provided to workers to make them more efficient 5. Diiferent piece-rate system: In order to motivate worker-positively as also negatively to product the standard output. The inherent features of this scheme are: i. A standard output for each worker is determined in advance through scientific workstudies. ii. Two rate of wage-payment are established. a) A higher rate per unit of output b) A lower rate per unit of output. 6. Financial incentives: Worker can be motivated by financial incentives. Taylor himself applied differential piece rate system which is of a highly motivating nature. The wage should be based on individual performance and o the position which he occupies. 7. Economy: While applying scientific management, not only scientific and technical aspect should be considered but adequate consideration should be given to profit and economy. 8. Function foremanship: The scheme of functional foremanship recommended by taylor, is, in fact, an introduction managerial specialization at the shop level. In this system eight persons are involved to direct the activities of the workers. Planning function Route clerk instruction time & shop Card clerk cost clerk disciplinarian executive function gang boss boss speed boss repair inspector

WORKERS

11. Explain about the Social Responsibility of Business?

SOCIAL RESPONSIBILITY OF BUSINESS: Concept: It refers to such decisions and activities of a business firm which provide for the welfare of the society as a whole along with the earning of profit for the firm.

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It implies formulation of business objectives, plans, policies and programmes etc. with emphasis on not only the economic concept of profit-maximization; but also with an orientation towards meeting social obligations- so that business functioning does not impinge on the legitimate interest of various segments of society. CONPONENTS OR AREAS OF SOCIAL RESPONSBILITY: I. Responsibility to itself:: - A business entity is supposed to earn a reasonable amount of profits to ensure its own survival and gradual growth. - This can be achieved only by planning effectively, honestly and with a foresight. - Stability, expansion and growth are three watchwords which a business has to keep in mind in order to fulfill its obligations toward its own self. II. Responsibilities towards owners. Paying a reasonable rate of dividend as reward for risking capital in business. Ensuring safety of investment of funds provided by owners. Showing due regard towards the interests of minority of members. Ensuring growth of the company Giving owners a true and fair account of the functioning, profitability and financial position of the company. Accessibility of chairman and directors to the owners for getting information relating to the company. III. Responsibilities towards workers: Payment of adequate and timely wages Providing adequate industrial safety devices Granting job security Providing congenial work environment Providing opportunities for promotion and advancement Ensuring reasonable workers participation in management Protecting worker from occupational hazards Encouraging participative management in the company Giving humane treatment to workers Encouraging the development of good trade union leadership IV Responsibilities towards consumers Ensuring availability of products in the right quantity, at the right place and at the right time Supplying products of high quality. Avoidance of indulging in unfair trade practices like-Supplying lesser weight -Defective packing of goods -Black-marketing, hoarding and profiteering -Adulteration etc. o Providing good after-sales services. o Using correct measures o Immediate redress of consumer grievances o Encouraging the formation of associations of consumers and consumers advisory councils and maintaining close links with them. V. Responsibilities towards suppliers and fellow-businessmen:

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- Fair settlement of accounts in time - Abiding by the terms of contracts made with suppliers (and fellow businessmen) - Development of sound business relations with suppliers (and fellow businessmen) - Refraining from exploitation of the small businessmen, by their bigger counterparts. VI. Responsibilities towards the state: - Timely payment of legitimate taxes - Strictly observing the provisions of the various laws and enactments. - Co-operating with the government in the implementation of its economic and social policies - Not to indulge in winning political favors for selfish interests. - Supplying the required information to governmental departments, from time to time. VI Responsibilities towards the society at large: - Optimizing the use of resources - Generation of maximum employment opportunities. - Controlling environmental pollution - Preventing urban congestion - Undertaking programmes for rural development - Innovating and implementing schemes for the uplift of the downtrodden

12. Define Ethics. Discuss about the important functions of Ethics.

ETHICS: Ethics is defined as discipline dealing with what is good and bad and with moral duty and obligation. Personal ethics: the rules by which an individual lives his or her personal life Accounting ethics pertain the code that guides the professional conduct of accountants. Business ethics is concerned with truth and justice and has a variety of aspects such as the expectations of society, fair competition, advertising, public relations, social responsibilities, consumer autonomy, and corporate behavior in the home country as well as abroad. Code of ethics: A code is a statement of policies, principles or rules that guide behavior, certainly, codes of ethics do not apply only to business enterprise; they should guide the behaviour of persons in all organization and in everyday life. The functions of code of ethic committee of a business enterprise may include 1. Holding regular meeting to discuss ethical issues 2. Dealing with gray areas 3. Communicating the code to all members of the organization 4. Checking for possible violations of the code 5. Enforcing the code 6. Rewarding compliance and punishing violations 7. Reviewing and updating the code 8. Reporting activities of the committee to the board of directors. Concept of business ethics: Definition: business ethics are moral principles which must govern the conduct of business enterprise; and guide businessmen as to whether their decisions and actions are right or wrong in terms of welfare of society. Social Welfare ethical business behaviour unethical neglect of social welfare

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The notion business ethical affecting social welfare Analysis of the above definitions: - Business ethics are moral principles which guide business behaviour - Business ethics imply an idea of honesty in that these guide businessmen as to rightness or wrongness of their decisions and actions - The basic philosophy of business ethics is maximum social welfare, through functioning of business enterprises. Examples of unethical business behaviour 1Workers: o o o Overlooking industrial norms in order to get work done Denying legitimate promotions Discrimination among workers on the bases of caste, sex or relation.

2. Consumers: - Indulging in vulgar and false advertising to attract consumers - Neglecting after sales service - Supplying lesser weight at higher prices, etc 3. Investors/shareholders: - Indulging in unhealthy speculation to the detriment of the interests of genuine investors - Withholding payment of dividends; even when it is possible, etc. 4. Government: - Keeping two sets books to evade taxes - Supplying wrong or misleading information to government departments vis--vis labour strike, labour problems, production, etc. 5. Society at large - Bribing public officials to obtain undue favours - Black marketing and hoarding of goods - Production of things injurious to health of people etc. Ethics vs. Law Law is also based on ethical considerations; in that all law is based on the notions of equity, fairness and justice. However, in some cases it may be observed that a thing is unethical but perfectly legal. In fact, law may be against ethics. For example, production of liquor, cigarettes, and vulgar movies may be legal; but absolutely unethical.

13. Explain about the Functions of Management.

FUNCTIONS OF MANAGEMENT: 1. Planning: Planning involves the formulation of what is to be done, how, when and where it is to be done, who is to do it and what results are to be evaluated. - Planning means looking ahead, it is mental work, it is selecting from among many choices following the procedure given below: i. Lay down the company objective/targets. ii. Collect and classify the information relating to company objectives. iii. Develop alternative course of action to do the things. iv. Compare the alternatives in terms of objectives, feasibility and consequences

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v. Select the optimum course of action yielding maximum benefit/gain vi. Establish policies, procedure, methods, schedules, programmes, systems, standards and budgets for the optimum course of action selected. 2. Organizing: o After determining the course and make-up of action, the next step, in order to accomplish the task, is to distribute the necessary work among the working groups. -It is the process of by which the structure and allocation of jobs is determined. -It means, organizing people, materials, job, time etc., and establishing framework in which responsibilities are defined and authorities and laid down o The process of organizing involves: -Divide the work into component activities -Assign people to task (component activities) -Define responsibilities -Delegate authority -Establish structural relationship ( i.e organization structure) to secure coordination -Staffing is the process by which managers select, train, promote and retire their subordinates. -Staffing involves the developing and placing of qualified people in the various jobs in the organizations -Staffing is a continuous process. The aim is to have appropriate persons to move into vacated positions newly created in the enterprise. -Function of staffing is from Recruitment to Retirement (RR) 4. Directing -Directing is the process by which actual performance of subordinates is guided towards common goals of the enterprises -It includes i) Giving instructions to subordinates ii) Guiding the subordinates to do the work iii) Supervising the subordinates to make certain that the work done by them is as per the plans established. - Directing involves functions such as a) Leadership: leadership is the quality of the behaviour of the persons (mangers) whereby they inspire confidence and trust in their subordinates, get maximum cooperation from them and guide their activities in organized effort. b) Communication: it is the process by which ideas are transmitted, received and understood by others for the purpose of effecting desired results. c) Motivation: Motivating means inspiring the subordinates to do a work or to achieve company objectives effectively and efficiently. d) Supervision: supervision is necessary in order to ensure, I. that the work is going on as per plan established, and ii) that the workers are doing as they were directed to do. 5. Controlling. Controlling is the process that measures current performance and guides it towards some predetermined goal. Controlling means checking up to ensure that the planned work is progressing as per schedule and if not, then to apply corrective action to achieve the predetermined objectives.

3. Staffing:

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The process of controlling involves:a) Observe continuously and study the periodic results of performance b) Compare this performance with the present standards c) Pinpoint deviations if any d) Ascertain the exact causes of deviations e) Initiate and implement the corrective action.

14. Define planning. Explain about the nature of planning.

1. PLANNING: Planning is the management function anticipating the future and conscious determination of a future course of action to achieve the desired results. Planning consists of both problems solving and decision-making. Major components parts of planning: 1. Initial (or basic) planning: Which is concerned with the determination of the objectives. 2. Subsequent (or route) planning: which is concerned with best alternative course of action. 3. Final (or operational) planning: wherein, the planner would analyze the technical, financial, personnel and other aspects involved in implementing the pre-selected course of planning. Nature of planning: I. Constitutional features: 1. Planning is goal-oriented: Planning has no meaning unless it contributes in some positive way to the achievement of desired goals. All plans emanate from objectives. The goals may be implicit or explicit but well-defined goals are essential for efficient planning. 2. Planning is reference in future: In fact, it is matter of common sense to understand that all planning is done for future; and in the context of future conditions. While planning, the planner has to do a forecasting of the relevant economic, social, political and technological condition; within framework of which the plan will have to operate. Forecasting is the heart of planning. 3. Planning is primary function: All other functions of management are designed to attain the goals set under planning. Planning provides the basis for efficient organizing, staffing, directing and controlling, 4. Planning involves choice: Planning is basically a problem of decision-making or choosing among alternative course of action. Planning are decisions made after evaluation of alternative course of action. 5. Planning is intellectual process: Planning is a mental process involving imagination, foresight and sound judgment. It requires a mental disposition of thinking before doing and acting in the light of facts, rather than guesses II. Operational Features: 6. Planning is all pervasive:

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Planning is the function of each and every manager irrespective of the level and area of his/her operation. Planning is an essential ingredient in management at all executive levels. Managers at the top level prepare long-term plan for the company as whole, middle level managers formulate departmental and functional plans for medium term. At the lowest level, managers prepare operating and short-term plans. 7. Planning is both- long-range and short-range Long-range planning usually covers a period ranging from 3 to 5 or 7 years, while plans for a period of upto 1 year (or even 2 years) are regarded as shortrange plans. 8. Planning is continuous: Planning is an on-going and dynamic exercise. As the assumptions and events on which plans are based change, old plans have to be revised or new ones have to be prepared. III. Desirable features: 9. Planning is actionable: An ideal requirement of planning is that is must be actionable. A plan is not just a paper-plan which either is not capable of implementation or is never put into practice, for any reasons whatsoever. 10. Planning is flexible: A plan is capable of modification, revision or readjustment, future; when some of those future environmental factors change on which the plan is based. 11. Planning is an integrated system: Ie. Various departmental plans, the plans of superiors and subordinates and the long-range and short-range plans- all must be harmonized and fitted into an integrated structure of planning. 12. Planning is efficient: The usual commercial cost-benefit formula is employed in the context of planning also-for judging how far and to what extent, is a plan efficient or otherwise.

15. Write the importance of Planning.

IMPORTANCE OF PLANNING:

1. 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 in carving out the future course of action and this brings a higher degree of certainty. 2. It tackles increasing complexity in modern business: To run a modern business undertaking, there is need for large number of people with different specialization and complex machines. 3. It helps in co-ordination: Planning is the best stage for the integration of diverse forces at work. Sound planning interrelate all the activities and resources of an organization. The activities and efforts of various departments and division can be harmonized with the help of an overall plan. 4. Encourage innovation and creativity

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Innovation and creativity are prerequisites to continuous growth and steady prosperity of business. Planning is forward looking and it enables an enterprise to cope with technological and other developments. Planning requires continuous monitoring of environment for new ideas and developments. 5. It facilities unity of action. Under planning, policies, procedure and programmes are predetermined and every decision and action should within the framework of predetermined policies and procedures. 6. It helps in avoiding business failure: As planning involves the selection of vest objectives, unity of action, co-ordination of activities, economy in operation and offsetting of futures uncertainty and change, there is a great possibility of avoiding business failures. 7. Gudies decision-making: Planned targets serve as the criteria for the evaluation of different alternatives so that the best course of action may be chosen. By predicting future, planning helps in taking future-oriented decisions. In the absence of plans there is no sound basis for making future-oriented decisions. 8. Improves competitive strength: The enterprises which adopt planning will have a competitive edge over other enterprises which do not have planning. Planning enables the enterprise to discovers new opportunities and thereby shape its own future 9. Facilitates control Planning provides the basis for control. Plans serve as standards for the evaluation of performance. Sound planning enables management to control the events rather than be controlled by them.

16. Explain the steps involved in planning process.

STEPS IN PLANNING (OR PROCESS OR HOW TO MAKE A PLAN?) Plans are made in all types of enterprises- business and non- business. Plans are made at all levels of management from the highest to the lowest.

1. Being watchful: It could be referred to as a pre-step in planning or a desirable pre-condition for making a successful plan. The management must, accordingly, initiate the planning process at the most opportune moments expecting gains through the adage well-begun is half done. 2. Awareness of opportunities and problems: The first step in planning is the awareness of the unexploited business opportunities or the problem to be provided for in future. 3. Collecting and analyzing information: The next step is to gather adequate information and data relating to the planning to be made and analyze it to find out the cause-effect relationship between the various factors. 4. Setting objectives: Analysis and interpretation of data facilitate in determining the enterprise objectives.

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Objectives must be specific and clear and should indicate the end result of planning activity.

5. Determining planning premises and constraints: Before plans are prepared the assumptions and condition underlying them must be clearly defined. These assumptions are called planning premises and they can be identified through accurate forecasting of likely future events. Three types of planning premises: i. Controllable premises: These are under the control of management ( eg. Policies, objectives, and resources of the enterprise). ii. Semi-Controllable premises: these are partially under the management control (e.g. trade union) iii. Non-Controllable premises: it refers to the external forces (e.g govt policy, political situation etc.). 6. Finding out the alternative course of action: After establishing the objectives and the planning premises, the alternative plans are developed. For every plan there are a number of alternative and hence, all possible alternatives to work out a plan for achieving the desired objectives should be found out for their evaluation. Cost, risk and resources associated with different alternatives should also be considered. Imagination and foresight are required to generate and evaluated policy alternatives. 7. Evaluation of alternatives and selection: A critical evaluation of alternatives involves going into the plus and minus points of each alternative; and to find out the net worth of each alternative-in terms of its contribution to the objectives of the plan. It is to evaluate all possible alternatives with reference to cost, speed, quality, etc., and select the best course of action. 8. Selection of the best alternatives: The management while selecting the best alternative might base decision on one or more of the following bases: a) Experience: the management might base its final selection of the best alternative, on its experience. In fact, experienced manager knows what types of alternatives he adopted in the past; and with what implications and consequences. b) Experimentation: in terms, of experiments with the best alternative; and analyses the outcome of the experiment, before finalizing the decision. 9. Formulation of derivative plans: A major plan, usually calls for a number of derivative plans; plans derived from the main plan. Derivative plans might also be called supporting or minor or secondary plans. A plan e.g relating to the installation of a new plant for manufacturing a new product might call for the following derivative plans:i. a plan for design and manufacturing of the new product. ii. Plans of recruitment, selection and training of personnel for operating the plant. iii. A plan for the repairs and maintenance of the plant. iv. A plan for advertising the product to be produced by the plant, etc. 9. Implementation of the plan: The step, which gives a finishing touch to the planning process, is concerned with the implementation of the plan, which implies putting the plan into action.

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10. Follow-up action: Though the planning process comes to a close with the implementation of the plan; yet a desirable step, which yet remains to be taken, relates to the follow-up action on the implementation of the plan. Follow-up action implies watching the consequences (both good and bad)- economic, social psychological etc.

17. Draw a chart for levels of planning.

PLANNING LEVELS TOP MANAGEMENT STRATEGIC PLANS -------------------------Objective Long range plans Policies ADMINISTRATIVE PLANS -----------------------------------Organization Motivation Managerial control OPERATIONAL PLANS ----------------------------------Rules Method Procedure long-range plans

MIDDLE MANAGEMENT

mediumrange plans

LOW MANAGEMENT

shortrange plan

TOP LEVEL MANAGEMENT: It is concerned with the strategic of courses of action, programme, policies, procedures and standards that will determine the procurement, use and disposition of these resources. MIDDLE LEVEL MANAGEMENT: Examples: Research and Development, Marketing, Manufacturing, finance etc. LOWER LEVEL MANAGEMENT Example: plans for finished goods inventories to meet current market demands, plans to accelerate research projects which are behind schedule.

18. Explain about the Types of Planning.

TYPES OF PLANNING: In the process of planning several specific plans are prepared which may broadly be classified into two categories: Standing and Single -Use plans . PLANS PLAN STANDING PLAN SINGLE USE PLANS Mission Objectives Policies Programmes Project Schedules

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Strategies Methods Procedure Rules

Budgets Standards

I. STANDING PLAN: Standing plan or multi-use plans are the recurring plans and they are used repeatedly in situation of a similar nature. A standing plan is a standing guide to recurring problem and it is used again and again. It is also called long- term plans. 1. Mission: The mission as a type of plan explains the most fundamental purpose of an enterprise. For example i. The mission of the government of a country might be eradication of poverty. ii. The mission of a manufacturing enterprise might be producing high quality goods for the common men of society at the most affordable price and so on. 2. Objectives: Objectives provide a sense of direction to the thinking process of the planner; and to the action process of the operators of the plan Objectives must be formulated keeping in viewi. The mission of the enterprise, and ii. The resources and limitation of the enterprise. Objectives are known by different names, e.g goals, aims, purpose, mission, targets, etc. Kinds of objectives: 1. Market standing 2. Innovation 3. Productivity 4. Physical and financial resources 5. Profitability 6. Manager performance and development 7. Worker performance and attitude and 8. Public responsibility

19. Define MBO. Explain the steps in MBO.

MANAGEMENT BY OBJECTIVES: (MBO) The philosophy of management by objectives (MBO) was highlighted in 1954 by Peter F. Drucker who stressed upon the need for management by objectives and selfcontrol. MBO may be defined as a process in which a manager and his subordinates jointly decide the targets and results to be achieved keeping in view the overall objectives of the organization, jointly identify the Key Results Areas (KRA) periodically evaluate the actual results in terms of results agreed upon in advance. Steps in MBO process: MBO is also known as Management By Results because results are to be evaluated in terms of objectives. 1. Preliminary setting of objectives at the top management level.

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2.

3.

4.

5.

6.

Top management usually gives a start to launching of scheme of MBO; by identifying the fundamental objectives of the enterprise as a guide to superiors and subordinates throughout the organization for setting their own objectives. They constitute the basic and long-term ends towards which the activities of all departments and individuals are directed. The objectives that are set also indicate the measures for achieving the objectives. Unit sub-goals Once the corporate objectives are formulated, the short-terms goals for each organizational unit e.g., division, department or branch are established. Such unit goals reflect what is expected of each unit. Individual targets. After the corporate and unit goals are set up the next step is to fix performance targets for each individual manager at various level of the organization. Superiors and subordinates throughout the enterprise determine their individual objectivesthrough a process of mutual consultation. Such setting of individual objectives is the core aspects of MBO. Matching goals with resources. To make MBO scheme realistic, goals of individuals are compared to the resources available for their implementation. This helps the organization in allocating the resources in an economical way. Recycling objectives. Recycling objectives under MBO is done to take care of the interconnection among related objectives. Every manager calls periodical meetings of his subordinates to discuss their performance and to jointly identify the steps to betaken for improvements in future. Performance of appraisal At the end of the year, a detailed discussion between a manager and this subordinate takes place in which results of the unit are evaluated and the targets reviewed.

20. Write the Merits & demerits of MBO.

Merits and demerits of MBO: Merits: 1. Better managing. MBO helps in better managing the organization. If forces management to think of planning for results. Objectives also force managers to think how these can be achieved and what resources would require. 2. Clarity in organization. MBO tends to force clarification in organization roles and structures. 3. Commitment MBO elicits commitment performance. If the objectives are set by people who are responsible for achieving them, they have a sense of feeling that they are achieving their own objectives. 4. Helps in Appraisal MBO provides the measurement criteria to judge where one stands. So that corrective actions. If required, can be taken well in time. Demerits: 1. Failure to teach the philosophy.

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 2. 3. 4. 5.

MBO seems to be easy on its face, but there is much to be understood and appreciated by managers. Problem of goal setting Truly verifiable goals are difficult to set MBO requires verifiable goals. For example, quantified goal setting for staff people is quite difficult. Emphasis on short-run goals: In most of the organizations practicing MBO, there is a tendency to emphasis short-run goals. Inflexibility: Sometimes MBO presents the danger of inflexibility in the organization. Wastage of time: MBO involves a wastage of a lot of valuable time of managers in joint consultations; and they left with little time for efficiently discharging their

21. Define Strategies. Explain the process.

STRATEGIES The concept of strategy in business has been borrowed from military organization. Strategy is the complex plan for bringing the organization from a given posture to a desired position in a future period of time. For example, if the management anticipates price-cut by competitors, it may decide upon a strategy of launching an advertising campaign to educate the customers and to convince them of the superiority of its products. Strategy making process: 1. Environment analysis: First of all the external environment of the enterprise is analyzed to determine the opportunities and threats for the enterprise. 2. Self-appraisal The internal environment of the enterprise (resources, capabilities, etc) is examined to know the strengths and weaknesses of the firm. 3. Strategic alternatives Alternative strategies are developed to deal with the environmental forces. 4. Strategic implementation Detailed operational plans are developed and communicated to employees so as to execute the chosen strategy. I. SWOT Analysis: SWOT analysis is a key concept in the world of corporate planning, strategy formulation and other practical spheres of management. SWOT is also called TOWS by same management people. In fact, TOWS is SWOT; just written backwards. Concept and purpose a SWOT analysis: S W O T Strengths Internal environment Weaknesses Opportunities External environment Threats 1. The purpose of SWOT analysis is: To capitalize (i.e. to take best advantage) on the strengths of the company.

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To overcome the weaknesses of the company To exploit fully the opportunities available in the external environment To manage successfully the threats posed by the external environment A brief account of environmental analysis: i. Internal environmental analysis ii. External environmental analysis I. Internal environmental analysis All that environment which is found within the business enterprise itself, may be termed as the internal environment of business. a) Philosophical environment, consisting of the mission, values, beliefs and long-term goals of the enterprise and organizational culture. b) Managerial environment, consisting of the management hierarchy, quality of management talents and the process of managerial development. c) Structural environments, consisting of - rules, policies and procedures of the organization - communication network - controlling techniques etc. d) Production environment, consisting of- raw material availability and utilizations system - quality control system - technology available to the organization e) Marketing environment, consisting of - marketing research system and procedures - advertising and other sales promotion techniques - training and compensation of salesmen. f) Personnel environment, consisting of- quantity and quality of manpower - type and nature of manpower planning g) Financial environment, consisting of - working capital management - capital budgeting-techniques and procedures h) Human relations environment, consisting of- line-staff harmony and conflicts - public relations etc - management labour relations II. External Environmental analysis: It would be the fitness of things, to first identify the salient features of external environment It is quite difficult to identity specific factors comprised in this environment. a) Legal factors: Legal factors constitute the existing legal framework; as applicable to business enterprise - commercial laws, - industrial laws, - import-export laws - taxation laws b) Political factors: - political stability - taxation attitude towards business - policies of liberalization - ideology of the government towards business reflected in its economic and business policies

2.

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c) social-religious-cultural factors: - population growth and trends - level of education in society - craze for a higher standard of living - consumer awareness - changing social and cultural value etc. d) Competitive factors: - Their patronage of business products (services) buying capacity, likes, dislikes, preference etc. vitally ensure profitability for the business enterprise. e) Technological factors: -if they plan to adhere to the new technology, they may be -problem of resource chrunch -re-organizational problems -resistance to organizational changes by workers f) Financial factors - policies of banks and financial institutions - stock market environment - structure of interest rates - foreign capital etc - control of central bank g) Natural environment factors - natural resources - climate - geographical features whether the area is hilly or plain etc.

22. Explain TOWS Matrix in SWOT analysis.

TOWS MATRIX:

1. The WT strategy aims to minimize both weakness and threats and may be called
the mini-mini strategy. For example, form a joint venture, retrench or even liquidate 2. the WO strategy attempts to minimize the weaknesses and maximize the opportunities.(mini-maxi) 3. the ST strategy is based on the organizations strengths to deal with threats in the environment. The aim is to maximize the former while minimizing the latter.( maxi- mini) 4. The most desirable situation is on in which a company can use its strengths to take advantage of opportunities (the SO strategy). maxi-maxi

Internal factors

Internal strength (S) e.g strength in management, operations, R&D

Internal weaknesses (W) e.g weaknesses in areas shown in the box strengths.

External factors S

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23. Define Decision making. Explain the important features of D-M.

DEFINITION: 1.Decision-making is the selecting of an alternative, from two or more alternatives, to determine an opinion or a course of action. Beorge R.Terry. 2.Whatever a manager does, he does through making decisions. -Peter F. Drucker. FEATURES OF DECISION-MAKING: 1. Decision-making is goal-oriented 2. Decision is the choice of the best course among alternatives. 3. Decision-making is a mental process (thoughtful considerations). 4. Decision is aimed at achieving the objectives of the organization 5. It involves the evaluation of the available alternatives. 6. It may also be negative and may just be a decision not to decide. 7. Decision relates the means to the end. 8. Decision-making involves a certain commitment.

24. Write the major classifications of the types of decisions.

A major classification of the types of decisions: 1.Personal and Organization decisions: Personal decisions are those which are taken by managers concerning their personal life matters. Organizational decisions are those which are taken by managers, in the context of organization and for furthering the objectives of the organization. 2. Casual and routine decisions: Casual decisions only on some special issues concerning organizational life. E.g. a decision to install a new piece of machinery. Routine decisions day-to-day operation of the organization. E.g. sending samples of a product to the Govt. investigation center 3. Strategic and tactical decisions: Decision relating to designing of strategies are strategic decisions. Eg. Major capital expenditure decision. For implementation purposes, strategies are translated into operational plans or tactical decisions. Such tactical decisions are taken at middle and lower levels of management. 4. Policy and operative decision: A policy decision is a decision - guidance and instruction Policies are decided by superiors towards subordinates. Decisions of subordinates taken within the prescribed limits are called operative decisions. 5.Programmed and non-programmed decisions: Programmed decisions are normally of repetitive nature taken by lower level managers

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Non-programmed decisions are of non-repetitive. new branch, introducing a new product in the market etc. 6. Major and Minor decisions: Major decision: if it relates to the purchase of a big machine worth, say a lakh of rupees, it is a, major decision. Minor decision: purchase of fountain pen ink a few reams are minor matters and may be decided by the Office Superintendent. 7. Individual and collective decisions: An individual (not personal) decision is taken by a manager is his individual capacity, without being consultation with any other person. (Autocratic) Collective decisions are those which are jointly taken by a group of managers forum. (Democratic)

25. Explain about the Decision Making Process.

PROCESS OF DECISION MAKING: I. Background steps: 1. Definition of the decision making problem: define the problem, before he takes any decision. take care of many factors in defining the problem. Sufficient time should be spent on defining the problem. 2. Collection of data: A decision as good as the adequacy and quality of data are on which it is based. Accordingly management should proceed to collect necessary data for decision-making purposes. Service of MIS in this regard may prove to be highly useful and valuable. II. Technical Steps: 3. Development of alternatives: This step usually guided by SWOT analysis. Accordingly, management must develop those alternative; which-Capitalize on the strengths of the company -Overcome its weaknesses/limitation -Lead to best exploitation of environment opportunities. -Manage threats successfully. 4. Evaluation of alternatives: After development of alternative is critically evaluated in terms of its merits and limitations- to get at the net worth of each alternative. The following criteria for evaluation-Risk and resource implication associated with each alternative. -Cost-benefit analysis for each alternative. i. Quantitative and qualitative factors: Quantitative factors: these are factors that can be measured in numerical terms, such as time or various fixed and operating costs. (Tangible) Qualitative factors: factors are those that are difficult to measure numerically, such as the quality of labour relations, the risk of technological change, or the international political climate. ii. Marginal Analysis: Evaluating alternatives may involve utilizing the techniques of marginal analysis to compare additional revenues arising from additional costs.

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If the additional revenues of a larger quantity are greater than its additional costs, more profits can be made by producing more. Marginal analysis can be used in comparing factors other than costs and revenues.

iii. Cost effectiveness analysis: An improvement on, or variation of, traditional marginal analysis is cost effectives, or cost benefit, analysis. It seeks the best ratio of benefits and costs, this means, for example, finding the least costly way of reaching an objective or getting the greatest value for given expenditure. 5. Selection of the best alternative: In making a selection of the best alternative, management may base its decision on any of the following two bases: - Experience (experience managers take better decision) - Experimentation. (A sample of decision may be put to implementation on a trial basis) III. Practical Steps: 6. Implementation of the decision: A decision remains only a paper-decision; unless and until it is put into practice. The following managerial aspects, to be taken care of: - Communication of decision to those who are to implement it - Making all resources and facilities available to the operators of the decisions - Motivating people to implement the decision with enthusiasm. - Exercising general supervision over the implementation of the decision. 7. Follow-up or feedback action: The implementation of decision leaves certain information for the decision-making process. The result of decision-execution can imply two sets of information. i. That the decision-making process was right and should be continued. ii. that the decision-making was wrong and or should be enriched with new ways and techniques. Objective Problem Fact finding Alternative X Y Z Evaluation of alternatives Selection of best Alternatives Implementation Feed back action Decision-making process

Test

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UNIT-II ORGANIZATION 26. Define Organisation. Explain steps in Organising process.

Important Definition: Mcfarland has characterized organisaiton as an identifiable group of people contributing their efforts toward the attainment of goals. Koontz and ODonnell. Organization involves the grouping of activities necessary to accomplish goals and plans, the assignment of these activities to appropriate departments and the provision for authority delegation and co-ordination. Mooney and Railey Organisation is the form of every human association for the attainment of a common purpose. As a function of management, organizing is a process; broadly consisting of the following steps: 1.Determination of the total workload and division of work: The very first step in the process of organizing is to make a determination of all the activities of all the activities which are necessary to be undertaken for the attainment of the enterprise objectives. Fayol divided business activities into technical, commercial, financial, , security, accounting and managerial. 2.Grouping and sub-grouping of activities i.e creation of Departmentation. The various activities identified under the first step are then classified into appropriate Departmentation and divisions according to similarities and common purpose. Such grouping of activities is known as Departmentation. Each department may be further divided into section to create a logical structure. 3. Assignment of duties. The individual departments are then allotted to different positions and individuals. The duties of every individual are defined on the basis of his ability and aptitude. Every individual is made responsible for the specific job assigned to him. In this way, duties are assigned to specific individuals. 4.Delegation of authority: Once the duties and responsibilities of every individual have been fixed, he must be given the authority necessary to carry out the duties assigned to him. A chain of command is created from top to bottom through successive delegations of authority.

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27. Explain about the Principles or Features of Organisation process.

PRINCIPLE OF ORGANISATION OR FEATURES OR ORGANISATION: 1.Unity of objective: an organisation and every part of it should be directed towards the accomplishment of common objectives. It implies the existence of formulated and understood objectives. 2. Efficiency: an organisation is efficient if is able to accomplish predetermined objective at minimum possible cost. 3. Division of work: the activities of the enterprise should be so divided and grouped that there is the most efficient breakdown of tasks. 4. Span of control: no executive should be required to supervise more subordinates than he can effectively manage. The number of employees a manager can directly supervise. 5. Scalar principle: Authority and responsibility should be in a clear unbroken line from the highest executive to the lowest executive. 6. Delegation: authority should be delegated to the lowest possible level, consistent with necessary control so that coordination and decision-making can take place as close as possible to the point of action. 7. Functional definition: the duties and authority-relationships of different individual must be clearly defined so that there is, no confusion or overlapping. 8. Correspondence: authority and must be coterminous and co-extensive. 9. Unity of command: each person should receive orders from only on superior and be accountable him. 10.Unity of direction: there must be one head and one plan for a group of activities towards the same objectives. 11. Balance: the various parts of an organisation should be kept in balance and none of the functions should be given undue emphasis at the cost of others. 12. Exception principles: every manager should take all decisions within the scope of his authority and only matters beyond the scope of his authority should be referred to higher levels of management. 13. Coordination: the purpose of organizing is to secure unity of effort. 14. Flexibility: the organisation must be free from complicated procedures and red tape. 15. Continuity: the organisation should be so structured as to have continuity of operations. Arrangements must be made to enable people to gain experience in positions of increasing diversity and responsibility.

28. Explain about the Formal & Informal Organisation.

Formal Organisation: The formal organisation is a system of well-defined jobs, each bearing a definite measures of authority, responsibility and accountability. - louis A.Allen It is a deliberately designed structure of roles; which is built by management through assigning a matching role to each one of the groups for facilitating individuals- to best attain the objectives of the enterprise. Informal Organisation: Informal organisation is a social group of individuals which comes into existence automatically as a result of the operation, and interaction of certain socio-psychological factors, among persons who are working in various capacities within the four wall of the formal organisation. Informal organisation is the network of personal and social relationships not established or required by formal organisation. - Keith Davis ADVANTAGES AND LIMITATIONS OF INFORMAL ORGANISATION: Advantages: I. Advantages from the viewpoint of management 1. More productivity and production: By winning the co-operation of informal groups and their leaders, management is assured of more productivity on the part of workers leading to higher production.

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2. Communication feedback Through the forum of informal organizations, management could get the reaction of the employees of the organisation i.e. the communication feedback, on the communications transmitted by it. 3. Innovative and creativity encouraged. Informal groups and their leaders might often come out with suggestions or recommendations for the betterment of organizational functioning. If, even some of such suggestions are accepted and implemented by the management; the same acts as a spur to innovation and creativity on the part of the members of informal groups. 4. A more humanistic formal organisation The emergence, activities and growth of informal organizations lead to the development of human-touch which makes the formal organizations more humanistic or prevents dehumanization of the personnel. II. Advantages from the viewpoint of the members 1. Solution to work-problem: Informal groups provide a forum for discussion wherein members can discuss their work-related problems with senior and expert members of the group. 2. Management made alert and responsible The fact of the existence of informal organizations and the fear of their likely actions makes management more alert and responsible- while designing its plans, policies and actions. 3.Bulwark against management Informal groups, especially labour unions, act as a bulwark of employees-against the undesirable practices and actions of management. 4. Doing away emotional tensions Informal groups, by providing a forum of entertainment, gossips etc. help members do away with their emotional tensions- caused by personal affairs and family circumstances. Limitations: I. Limitations from the viewpoint of management 1. Spread of rumours The grapevine communication carries with itself, a natural possibility of spreading rumours which might injure the interests and intentions of management. 2. Less than optimum production. Actions and activities of informal organizations lead to a wastage of the productive time of members. There is also some amount of time wasted in gossips indulged in by the members. 3. Problem of indiscipline Informal organizations my-a-times invite and encourage rash and reckless behaviour on the part of members. This creates long-run problems of indiscipline for the organisation and management. II. Limitation from the viewpoint of members 1. Political domination of informal groups They mould the functioning of informal organizations to serve their own petty selfish political interests injuring the interests of members badly. 2. Loss of self-entity A vast majority of the members of informal groups-specially less educated, unskilled and semiskilled-seek pleasure in being blind followers of the leaders of these groups. Formal organization Informal organisation 1. Origin It is a deliberate or intentional creation by It is a self-generating process. It comes

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management done for purpose of achieving the objectives of the enterprise. 2. Objectives Its different departments have specific objectives which are developed through definite planning and decision-making process. 3. Functioning To pre-planned rules, polices, procedures and programmes. 4.Authority-responsibility relationships There are clear-cut and properly defined, authority and responsibility relationship which are usually shown through organizational chart. 5. Leadership Every group manager, is a leader; by virtue of, his official status and authority.

into existence; due to the operation of certain socio-psychological factors. It does not have any specific objectives evolved through planning etc. There is no such rules and procedure of functioning.

There are no such specific authority and responsibility relationships. It represents a natural-social structure-never depicted on a chart.

Leaders are those who are popularly accepted by all or a majority of the group-to act as leaders of the group. -Personal power. 6. Communication system There is well planned system of It is of a grapevine nature i.e it might spread communication routed through the scalar- from any person to any person, in any chain. manner and in any direction. 7. Stability It is most stable It is least stable. 8. Political domination At least on the face of it, is away form In a large number of cases are politically political domination. dominated.

29. Explain about the Types of Organisation.

TYPES OF ORGANISATION: The nature of authority-responsibility relationships found in an organisation makes for a particular pattern of the organizational structure. Types: I. Line Organisation. This is the oldest type of organisation. Under it, the persons having the greater decision-making authority are placed at the top and those having the least decision-making authority at the bottom. It consists of direct vertical relationships. It does not make provision for staff specialists. Operation of this system is simple Existence of superior-subordinated relationship The boss gives instructions directly to his subordinates. Superior at each level makes decisions within the scope of him authority.

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Shareholders Authority Flow Directors M.D Production Manager Works Manager Workers Finance Manager accounting officer clerk Line Authority Types of Line Organisation: 1. Pure line organization: The activities at any one level are the same and all the individuals perform the same type of work and the divisions or departments are made for the sake of control and direction. Example, at the lowest levels of an organisation all the workers may be engage in a similar activity, but for better control and supervision. Works manager Foreman Dept.No.1 workers Foreman Dept.No.2 workers Foreman Dept.No.3 workers Foreman Dept.No.4 workers Marketing Manager advertising section salesman Personnel Manager Training section HR executive

2. Departmental Line Organisation: The whole unit is divided into different departments that are convenient for control purposes. All the departmental managers enjoy equal status and work independently. For example, in the production, there may be a number of foremen each in charge of a subdepartment and controlling a certain number of workers. Factory superintended Foreman Foreman Shearing Dept. Press Dept. Foreman Welding Dept Foreman Finishing Dept

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Workers

workers

workers

workers

Advantages of line organisation 1. Simplicity: It is the simplest and the oldest type of organisation. It is easy to establish and operate. It is also easy to explain the workers. 2. Flexibility As each executive has full authority and responsibility for his job, required changes can be made quickly and easily. The adjustments in the organization can be easily made to suit the changing conditions. 3. Quick decision: Managers can take decisions quickly and act promptly as no staff officers are to be consulted and there is adequate authority at every level. 4. Unified control: There is unity of command and control according to which an employee can be given orders by one superior only. All activities affecting a department are under the control of one executive. 5. Fixed responsibility: Every person knows from whom he gets orders and to whom he is accountable. Every executive can be held fully responsible for the actions of his subordinates. 6. Effective discipline: Singleness of responsibility and control ensures strong discipline among the employees. 7. Economy: It less expensive in terms of overhead costs, as there are no staff specialists. 8. Speed action: Because of a clear division of authority and responsibility, as also unity of command and control, decisions can be made and executed promptly. Limitation of line organization: 1. Overburdening: Key executives are overloaded with administrative work. Top executives have to be superman to effectively control diverse activities. As the business grows in size, executives find it impossible to cope with their duties in the absence of staff assistance. 2. Instability: The success and survival of the enterprise depends upon a few individuals. There is little scope for expansion of business beyond their capabilities. Loss of key executives may put the future of the concern in jeopardy. 3. Lack of specialization: There is no scope for specialization as one individual cannot be expert in all function. Lack of specialization and over dependence on subordinates lower efficiency of operation. 4. Autocratic control: As each department is under the complete control of one executive, there is danger of authoritarian. There is possibility of favouritism. 5. Delayed communication: Subordinates hesitate to offer suggestions and to criticize a wrong decision taken by the superior.

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II. LINE AND STAFF ORGANISATION: Line authority: Responsibility for proper performance of work is not delegated. But authority can be delegated and the term line is used to indicate the line of authority. Staff authority: Staff is a stick carried in the hand for support. Staff authority means authority to support the line authority. Staff authority denotes a non-executive relationship where personnel with expertise provide assistance to the line management, but only in an advisory capacity.

STAFF L I N E

STAFF

Body of Members Board of Director Personnel manager Taxation expert Labour expert Chief Executives Private Secretary PRO Account Officer

Production manager

finance manager

marketing Manager subordinates

Subordinates LINE STAFF

subordinates

Advantages of Line and Staff Organisation:

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1. Discipline: Unity of command is maintained, as staff is not given executive authority. 2. Expert advice: Line executives, and through them the enterprise as a whole, benefit a great deal from the expert advice and guidance provided by the staff officers. 3. Balance decisions: With information and advice provided by staff specialists, line executes can take better and more sound decisions. 4. Relief to line executives: The staff officers look after the detailed analysis of each important managerial activity which is a big relief to the line officers. Disadvantages of line and staff organisaiton: 1.Conflicts: Staff may undermine line authority while line may ignore staff. This may lead to friction between them. 2. Advice ignored: As the staff officers lack authority to put their recommendation into practice, the line executives may ignore their advice. 3. Expensive: It is expensive in terms of overheads as two separate sets of personnel are required. 4. Conflict between line and staff: The allocation of responsibility between line and staff may not be very clear. Staff advice may be confused with line authority creating confusion and disorder. Line and Staff authority: Line authority Staff authority 1.It refers to those positions and 1. It refers to those elements which elements of the organisation, which have responsibility and authority for have the responsibility and authority, providing for providing advice and and are accountable for service to line in attainment of accomplishment of primary objectives objectives. 2.line elements provide decision 2. Staff elements facilities the authority and a central means for the decision process by bringing expert flow of communication through scalar and specialized knowledge.. chain of authority. 3.line managers make the salient 3.staff officials advise and counsel. decisions by exercising command authority.

30. Explain about the Conflicts between Line & Staff Organisation.
CONFLICT BETWEEN LINE AND STAFF. The major source of line and staff conflict is the difference in their viewpoints and perception. Conflicts arise when any of them fails to appreciate the view of the other. When a conflict between line and staff arises both the parties try to explain the causes of conflict in terms behaviour of the other. The viewpoints of both line and staff on this conflict are given below. a) The line viewpoint: the line managers have the following to say about the staff people. 1. Staff authority undermines line authority and interferes in the work of line managers.

36

2. Staff authorities are not acquainted with the practical problems of the enterprise, as they are only academics. 3. As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. 4. Advice given by the staff is not always sound. Advice is only theoretical and unrealistic. 5. Staffs take credit if the programme (as per the advice of the staff) is successful and blame the line if it is not successful. b) The staff viewpoint: staff authorities have the following complaints against line officers: 1. Line officers do not make proper use of advice given by itself. 2. Line officers reject the advice without giving reasons. 3. Line officers are slow to accept new ideas and they resist change. 4. Staff authorities feel that they do not have authority to get their ideas implemented. Improving Line and Staff Relationship: 1. The limits of authority of both line and staff should be prescribed clearly. 2. Staff authority should be restricted to a purely advisory role. 3. Line officers should give due consideration to staff advice. They should state reasons in case they cannot accept the advice. 4. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. 5. The advice of staff should be realistic and practicable. 6. Both line and staff should try to understand can others responsibilities and difficulties and try to co-operate with each other for the achievement of enterprise objectives.

31. Explain about Committee Organisation.

COMMITTEE ORGANISATION A committee is a group of people who meet by plan to discuss or make a decision for a particular subject. A committee means a group of persons formed for a stated purpose. It may be a standing committee, or convened for a special purpose. There may be executive committee, finance committee, audit committee, bonus committee, grievance committee, etc. Characteristics: 1. A committee is a group of person. There should be at least two persons and no limitation on the maximum. 2. A committee is charge with dealing with dealing specific problems and it cannot go in for actions in all spheres of activities. 3. A committee may be constituted at any level of organisation. 4. Members of committee have authority to go into details of the problems. 5. Types of Committee: 1. Standing or Ad Hoc committee: Standing: it exists continuously for indefinite period. Ad hoc committee: it is constituted for a specific purpose or to solve a specific problem. 2. Decision-making committee. It is one which is charged with the responsibility of making and executing its decisions. 3. Line and staff committee. Line committee: it is responsible for controlling coordinating a specific business function having executive authority over the subordinates within a formal chain of command.

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Staff committee: only acts in an advisory capacity, having no authority to impalement its decisions. 4. Formal and informal committee: Formal: it is duly constituted by organizational rules, regulations with specific authority. Informal: it is not as per any policies or rules of the organisation, and it has no formal authority as such. Advantages of committee organisation: 1. Pooling of knowledge and experience. 2. Facility of coordination 3. Motivation through participation 4. Easy communication 5. A tool of management development 6. Consolidation of authority. Disadvantages of committee organisation: 1. High cost 2. Slowness in decisions 3. Dividend responsibility 4. Misuse of committee.

32. Explain about Matrix Organisation.

MATRIX ORGANISATION: When an enterprise undertakes a large number of small projects; a matrix organisaiton is more suitable. A matrix organisation is characterized by two major features: i.It undertakes a large number of small projects; ii.There is a dual line of command, in a matrix organisation. Matrix organisation = Dual line of command + matrix culture + matrix behaviour. Matrix organisation represents a combination of functional departmental organisation and project organisation. Different project managers share resources and authority with functional heads. When one project is over; its personnel and resources are diverted to some new project. General Manager

Production Manager Project Mgr 1 Project Mgr 2 Project Mgr 3

Finance Manager

Marketing Manager

personnel manager

Project Mgr 4 -- Authority of project manager Advantages:

--- Authority of functional head.

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1. It is oriented toward end results 2. Professional identification is maintained 3. Pinpoints product-profit responsibility Disadvantages: 1. Conflict in organisation authority exists 2. Possibility of disunity of command exists 3. Requires manager effective in human relations.

33. Explain about SBUs?

STRATEGIC BUSINESS UNIT (SBUs) Companies have been using an organizational device generally referred to as a strategic business unit (SBU). SBUs are distinct little businesses set up as units in a larger company to ensure that a certain product or product line is promoted and handled as though it were an independent business. In some cases companies have also used the device for a major product line. Occidental Chemical Company, for example, used it for such products as phosphates, alkalies, and resins. Generally a business unit must meet specific criteria. An SBU, for example must: 1. Have its own mission, distinct from the mission of other SBUs, 2. Have definable groups of competitors, 3. Prepare its own integrative plans, fairly distinct from those of others SBUs, 4. Manage it resources in key areas, and 5. Have a proper size- neither too large nor too small General manager business manager Production Manager accounting Manager Marketing Manager sales Manager product development

Works man Manager Altanta

works manager Chicago

works manager dallas

Regional manager new york Product Manager A

Regional manager chicago product manager B

Regional manager los angeles product manager C Key elements of organisation process:

Organisa tion Process

39

1. Departmentation. 2. Delegation 3. Decentralization.

34. Define Departmentation. Explain about needs & Importance of Departmentation.

DEPARTMENTATION: Departmentation may be defined as the process of grouping individual jobs into departments. It involves grouping of activities and employees into departments so as to facilitate the accomplishment of organizational objectives. Once the total work of an enterprise is divided into individual functions and sub-functions, these functions are grouped together into work units on a particular basis. Need and importance of Departmentation: 1. Specializations: When every department looks after one major function of business, division of work becomes possible. It enables an enterprise to avail of the advantages of managerial specialization. 2. Expansion: Grouping of activities and personnel into departments makes it possible to expand an organisation to an indefinite degree. 3. Autonomy: The feeling of autonomy provides job satisfaction and motivation which in turn lead to higher efficiency of operation. 4. Fixation of responsibility: It enables each person to know the specific part he is to play in the total orgnisation. The responsibility for results can be defined more precisely and an individual can be held accountable for performance. 5. Appraisal: Appraisal of managerial performance becomes easier when specific tasks are assigned to departmental personnel. The sources of information, the skills and competence required for total managerial decisions can be located. 6. Decentralization facilitates: Many departmental heads may be granted full powers to run their departments efficiently through systematic departmentation. 7. Managerial development: It simplifies the training and development of executives by providing them opportunity to take independent decisions and to exercise initiative. 8. Administrative control: Standards of performance for each and every department can be precisely determined.

35. Write the important types of Departmentation.

Bases or Types of Departmentation: 1.DEPARTMENTATION BY FUNCTIONS:

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This is a very popular method of departmentation. It refers to grouping of activities of the enterprise into major functional departments like production, marketing, accounts, personnel etc. The process of the functional differentiation may take place through successive levels in the hierarchy. The process can continue as long as there exists a sound basis for further differentiation. M.D General Managers

Production Production Planning Engineering Tool & Equipment

Finance financial planning budgeting Accounting

Marketing marketing research market Planning sales management

Personnel recruitment section training officer wage administration employee welfare

Costing General data collection Production processing Advantages of Functional Departmentaion: advertising sales promotion

1. It follows the principles of specialization. It can employ experts in the various functional areas and thus can achieve specialization easily. 2. It facilitates delegation of authority 3. It permits effective control over performance 4. It eliminates costly duplication of effort. 5. It is economical, simple and easy to understand. 6. It represents a very natural and logical way of grouping activities. 7. It facilitates co-ordination both within the functions and at the interdependently level. Disadvantages of Functional Departmentation: 1. It results in excessive work and responsibility for the departmental heads. 2. It hampers coordination between different functions. 3. It carries specialization a bit too and thus a functional manager becomes an expert in handling problems of that particular function alone. 4. This method does not facilitate proper and satisfactory handling of diversified product lines. 2. DEPARTMENTAION BY PRODUCT: Each department looks after the production, sales and finance of one product. It is useful when product expansion and diversification, manufacturing and marketing characteristics of the product are of the primary significance.

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This structural design is popular in multi-line large-scale enterprise; whose major objectives is production expansion and development.

M.D General Managers

Production

Finance

Marketing

Personnel

Motor division Engineering accounting

scooter division engineering

spare parts division accounting

accounting engineering

Production

production

production

Advantages: 1. The salesman has deeper product knowledge and this may lead to better customer service. 2. This method facilitates in ascertaining the performance of each product line and , therefore, an unprofitable line can be dropped. 3. It facilitates effective coordination. 4. T performance of each product division and its contributions to overall results can be easily evaluated. Disadvantages: 1. It necessitates employment of a number of managerial personnel. 2. It makes the control work difficult 3. There may be a duplication of activities. 4. There is the extra cost of maintaining a sales force for each product line. 3.DEPARTMENATION BY TERRITORIAL: It is very useful to a large-scale enterprise whose activities are geographically spread. Banks, insurance, railways are examples of such enterprise. Under this activities are divided into zones, divisions, and branches. BOD MD

42

Northern Region

western region

central region

eastern region

southern region

Branch I

branch II

branch III

branch IV

Advantages: 1. It facilities the expansion of business to various regions. 2. It facilities effective span of control 3. It enable the enterprise to gain intimate knowledge about customers in the local markets 4. Since accounting results of each territorial regions can be compared with each other, control and competitors. Disadvantages: 1. It requires employment of a numbers of managerial personnel. 2. It dilutes control from headquarters 3. It may lead to duplication of activities. 4. It is a costly system and hence small business concerns cannot afford it. 4.DEPARTMENTATION BY CUSTOMERS: It takes into account the needs of customers. Examples: i.)a large cloth store may be divided into wholesale, retail and expert divisions. A commercial bank may be divided into a number of departments, each specializing in loan to farmers, traders, industrialists, professionals etc. M.D General Managers

Production

Finance

Marketing

Personnel

Wholesale

exports

retail

Advantages: 1. This system facilitates the company in meeting the widely varied needs of customers. 2. It promotes specialization among the staff of the enterprise. 3. The enterprise gains intimate knowledge of the needs of each category of customers. 4. Special attention can be given to the particular tastes and preferences of each class of customers. Customers satisfaction enhances the goodwill and sales of the enterprise. Disadvantages: 1. There may be duplication of activities. 2. There may be difficulty in co-ordination.

43

3. There may be under-utilization of facilities and manpower, particularly during periods of low demand. 5.DEPARTMENTAION BY PROCESS Manufacturing enterprise often group activities around a process or type it equipment and bring together people and materials at one place to carry out a particular operation. For example, Textile mills.

Board of Directors Chief Executive

Ginning Dept

Spinning dept

Weaving dept

Dyeing dept

finishing dept

Advantages: 1. This method facilitates the use of costlier equipment in an efficient manner. 2. The maintenance of departments is facilitated. 3. There may be economy in operation. 4. It enables effective performance control Disadvantages: 1. This method requires more space and investment. 2. This method is costly and hence small organizations cannot afford it. 3. A breakdown is one process department may bring the entire production system to a halt. 6.COMPOSITE OR COMBINED DEPARTMENTATION: Each basis of departmentation has its own merits and demerits. Therefore, the relative advantages and limitations of various types of departmentation should be analyzed in the light of the needs and circumstances of the particular enterprise. That basis of departmentation is the best which facilitates the achievement of organizational objectives most economically and efficiently. Managing Director

Works Manager

marketing manager

finance manager --------- Functional

Consumer product Division Domestic sales Manager

industrial supplies division -------------- product export sales manager

--------------territorial

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Private buyers

Govt agencies

--------------customers

36. Define Authority. Differentiate between Authority & Power.

AUTHORITY: Authority may be defined as the right to give orders and to enforce them. Applied to the managerial job, authority is the power to command others, to act or not to act in a manner deemed by the possessor of the authority to further enterprise or departmental purpose. The power to make decisions which guides the actions of another. It is relationship between two individuals- one superior, the other subordinate. Salient features of the concept of authority: 1. Authority lies in managerial positions 2. Authority is the key to a managers job. 3. Authority is hierarchical in nature 4. Authority is exercised by making decisions that are to be carried out by the subordinates. POWER: Powers refers to the ability of a person to influence others. Persons power may be measured in terms of his capacity to i. Give rewards, ii. Punish individuals, etc. Difference between authority and power: Authority Power 1.It is the right of a person to 1.It is the capacity of a person to influence others influence others 2. It is institutional in character 2. It is personal in nature. (sum up= power +authority) 3. It may have no legitimacy 3. It is legitimate. 4. Power, being a personalized attribute 4. It can be delegated. cannot be delegated. 5. It is hierarchical in nature. 5. It does not have any system.

37. Explain about the different types of Authority.

TYPES OF AUTHORITY: 1.Formal or Traditional or Top-Down Authority: Authority flows downwards in an organisation, through the delegation process. It is always from top or bottom Examples, in case of a limited company, shareholders possess the ultimate authority to manage the affairs of the company. The board of director delegates authority to the chief executive and chief executive in turn to the departmental managers and so on. 2.Acceptance or Bottom-up Theory: It states that authority is the power that is accepted by others. The subordinates accept the authority only if the advantages to be derive by its acceptance exceeds the disadvantages resulting form its refusal. Authority flows from bottom to top. A manager has authority if he gets obedience from the subordinates. 3.Competence of Personal Authority Theory: Authority flows from the personal qualities or technical competence of a person. A manager enjoys it by virtue of his intelligence, knowledge, skill and experience. Many persons derive informal authority because of their competence.

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Responsibility is a duty or obligation owned by a subordinate to the superior, from whom the former derives authority-for the proper discharge of the assigned job. It proceeds in an anti-hierarchical manner from subordinates to superior.

38. Explain about the Delegation of Authority.

To delegate means to entrust authority to a deputy so as to enable him to accomplish he task assigned to him. Authority is said to be delegated when a superior assigns a part of his rights to a subordinate. It is a process which involves sharing of either managerial work or operating work between a manager and his subordinates. Main features of delegation: 1. It occurs when a manager grants some rights to a subordinate. 2. A manager cannot delegate authority unless he himself possesses the authority. 3. A manager never delegates all his authority to subordinates. He transfers only a part of his authority. 4. Delegation does not imply reduction in the status of manager. A manager can reduce, enhance or take back the delegated authority. 5. No manager can avoid his responsibility by delegating authority to subordinates. ELEMENTS (PROCESS) OF DELEGATION: 1. Determinination of the results expected of the subordinate. While planning to delegate authority, first of all, the superior has to make a determination of what results i.e how much performance and of what quality, could be expected of the subordinate who is to be delegated authority. 2. Assignment of Duties: A manager defines the duties or tasks to be performed by his subordinates. Before assigning duties to subordinates, an executive subdivides his job and allocates a part of it to each subordinate. 3. Granting authority: Authority is the right granted to an individual to make possible the performance of work assigned. An executed then confers on his subordinates the rights necessary to perform the duties assigned to them. 4. Fixation of responsibility on the subordinate: Exaction of responsibility implies creating an obligation and to hold the subordinates accountable for results. Principle of delegation: 1. Principle of non-delegation of personalized matters 2. Principle of delegation by the results expected. 3. Principle of unity of command 4. Principle of scalar chain. 5. Principle of absolute responsibility. Advantages: 1. Basis of organisation 2. Reduction in the work load of managers 3. Training of subordinates 4. Motivation and morals of subordinates 5. Organisation growth and expansion facilitated. Disadvantages: 1. Lack of receptiveness 2. Lack of ability to direct 3. Lack of willingness to let go

46

4. Lack of control 5. Lack of willingness to trust subordinates. 6.

39. Explain about the Decentralisation.

Decentralization: Decentralization is the opposite of centralization. In centralized set-up, decision-making, authority is concentrated in a few hands at the top. As against this, in a decentralized organisation, there is dispersal of decision-making authority. Form of i. Departmentalization or Divisionalisation, ii. Arrangement of activities in terms of places or, iii. Dispersal of decision-making powers among executives at various levels. Factors determining Degree of Decentralization: 1. Size and complexity: a very large and diversified firm finds it hard to practice centralization. Decentralized to a greater extent than a small organisation with limited operation. 2. History of the enterprise: firms that have been built under the personal leadership of owners are likely to minimize decentralization. 3. Availability of qualified executives: dispersal of decision-making is possible when the lower level staff is of high caliber. Decentralization itself is essential for the development of good managers. 4. Location of operation: authorities tend to be decentralized when performance is decentralized. Geographical dispersion activities make communication difficult under centralized decision-making. 5. Uniformity of action: greater is the need for uniformity of policy or action, greater is likely to be the degree of centralization. That is why pricing, wage fixation and public relations are more centralized than production and sales. 6. Control techniques: decentralization is greater when techniques available for controlling subordinates action are effective. 7. Number of decisions: the greater the number of decisions made lower down the management hierarchy the greater of decentralization. 8. Effects o decisions: in decentralized authority structure the decisions affecting more function are made at lower levels.

40 .Explain about Advantages & disadvantages of Centralisation & Decentralisation.

Advantages of centralization /limitation of decentralization: 1.Consistency/ lack of consistency in decision-making. Centralization- leads to consistency in decision-making Decentralization lack of consistency in decision-making 2. Strong /weak top management Centralization- strengthens top management Decentralization weak top management 3. Lower /higher cost of administration. Centralization- cost of administration is lesser Decentralization cost of administration is higher. 4. Broad/narrow approach to a managing Centralization- the top management has a broad outlook Decentralization a narrow outlook to managing 5. Discourage /encourage inter-departmental conflicts: Centralization- discourage inter-departmental conflicts Decentralization encourage inter-departmental conflicts. 6. Mature/risky decision-making Centralization- mature decisions carry the chance of being least risky Decentralization less mature and high risky decision

47

7. Retention /loss of control by top management. Centralization- top management retains tight control over the whole organisation, because of its vast powers. Decentralization top managements control over the organisation is. Loosened 8. Efficient /inefficient handling of emergencies. Centralization- there is an efficient handling of emergency by top management Decentralization- lower level management may be frightened by emergencies. 9. Suitable/ unsuitable in the present-day environmental scenario. Centralization- small firms (suitable) Decentralization large firms Limitation of centralization /advantages of decentralization: 1. Heavy burden/light burden on top management. Centralization- there is heavy burden of management work on top management Decentralization there is light burden on top management. 2. Lower/higher status of lower level management. Centralization- decrease the status of lower level management Decentralization adds to the status of lower level management. 3. Autocratic/democratic management Centralization- it may lead to autocratic Decentralization it leads to democratic features in organizational functioning. 4. Initiative discouraged/encouraged. Centralization- it discourages the exercise of initiative on the part of the lower level management Decentralization it encourage the exercise of initiative on the part of lower level Management 5. Delayed/quick decision-making: Centralization- delayed decision-making Decentralization quick decision-making 6. Inferior/superior decision-making Centralization- there is inferior decision-making by top management Decentralization it is superior. 7. Egoistic/rational planning Centralization- sometimes, may indulge in egoistic planning for ambitious purposes; Decentralization rational planning is done by lower level managers. A centralized enterprise: President Vice president Sales Purchasing Research Engineering Public Relations Vice president Production vice president Finance Cost Standards

48

Manager Plant 1 Dept

manager plant2 dept

manager plant 3 dept

manager plant 4 dept

A decentralization enterprise: President Vice president Sales Manager Plant 1 Standard Cost Purchasing Research Engineering Dept Vice president Production manager plant2 Standard Cost Purchasing Research Engineering dept manager plant 3 Standard Cost Purchasing Research Engineering dept vice president Finance manager plant 4 Standard Cost Purchasing Research Engineering dept

41. Write the difference between Delegation of authority & Decentralisation.

DISTINCTION BETWEEN DELEGATION OF AUTHORITY AND DECENTRALIZATION. Basis Delegation of authority Decentralization 1. Nature It is an act, or a process It is the end-result of delegation It is the primary or basic of dispersal of authority at various concept levels. It is the secondary concept. 2. Relationship It refers to relationship between two individuals, i.e a superior and his immediate subordinates. It is a way of organizational life i.e without delegation, organizational functioning is It refers to a relationship between the top management and various departments and divisions in the enterprise. It is way of growing of expanding organizational life. Some minimum, it becomes a must.

3.requirement

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4.choice 5.control

not possible It is vital to management process. Control over a subordinates performance is exercised by his superior

It is optional Even the power to control may delegated to be departments concerned.

42. Write the meaning of OC. Eplain it also.

ORGANIZATIONAL CULTURE Culture is a social phenomenon. Culture is the set of important understanding that members of community shares in common. It is a complex of values, beliefs, attitudes and understanding which are showed in common by aggregates of people, living in organized societies; and which shapes human behaviour to a particular style. Concept of Organisation culture: it refers to a common perception of an organizations mission, values, beliefs, expectation, policies, rituals, taboos etc. shared by members of an organisation; making it look different from other organisation. Examples: the hallmarks of the Japanese organizational culture are emphasis on seniority based promotions, collective decisions making, life-long employment, a deep concern for employees on the part of employers etc; which differentiate a Japanese organisation, from organizations found in many other countries. Determinants /components of organizational culture: 1. Individual autonomy; which implies opportunities to people for excising initiative in work related matters. 2. Support provided by organisation/superiors to subordinates. 3. Equality of treatment to all; implying equal rights for equal performance i.e rewards based on merit or performance. 4. Equity, which in Henry Fayols views refers to sense of kindliness and justice on the part of managers, while dealing with their subordinates. 5. Job security; which infuses a sense of loyalty, commitment and devotion among employees. 6. State of general motivation; i.e how much and to what extent people identify themselves with the organisation 7. Degree of conflict, present among peers and among superiors and subordinates. 8. Industrial culture, i.e machines, power, technology, automated equipment etc; making for a different type of sub-culture in the organisation, popularly called industrial culture. 9. Rituals of the organisation, e.g. farewell banquets held in honour of retiring employees, welcome to new employees etc. 10. Organizational taboos, e.g not to accept gifts from others, not to call seniors (specially superiors) by name etc.

42. Explain about the types of OC.

Types of organisation culture 1.mechanistic Organisation culture: It exhibits the values of bureaucracy and feudalism. Organizational work is conceived as a system of narrow specialization, as among craft guilds. Authority is thought of as flowing down from the top and information and instructions follow formally prescribed channels.

50

There is a great deal of departmental loyalty and inter-departmental animosity, a strong we versus they perception. This sort of culture resists changes and innovations. 2.organic organisation culture. The organics organizational culture is a contrast to the mechanistic culture. Formal hierarch of authority, departmental boundaries, rules and regulations and so forth are frowned upon. There is a great deal of emphasis on teamwork. Free flow of information, ease of communication, both and formal and informal, across departments and specializations and up and down the hierarchy, are strongly emphasized. The culture stresses flexibility, consultation, changes and innovation. 3. authoritarian organizational culture. Power is concentrated in the boss and obedience to orders and discipline are stressed. Any disobedience is punished severely to set an example to others. People working in the organisation are looked after, so that they can give their best to the organisation. 4.participative organizational culture It rests on the notion that people are more committed to decisions that are participatively made than to decisions that are imposed upon them. It tends to emerge where most organizational members are professionals or otherwise see themselves as equals (as in cooperative societies). 5.management systems culture. Every operation is carefully analyzed to see how it could be done most efficiently, and in doing this heavy use is made of textbook tools of management such as sophisticated planning, budgetary control and information systems, sophisticated techniques of market research, activity scheduling, network analysis, investment analysis, professional selection and training of personnel, etc. This sort of culture is frequently found in highly professionally management corporations or technology intensive organisation. 6.entrepreneurial organizational culture it is one which favours growth, big deals and empire building, big vision, boldness in decision making and going in where angels fear to tend. This sort of culture is frequently found in a new industry. 7.paternalistic or familial organizational A culture that is very common in societies undergoing a transition from traditionalism to modernity is the paternalistic or familial organizational culture. This sort of culture is commonly found in family controlled enterprise and institutions.

UNIT III 43. Define Staffing. Write the nature of staffing.

Meaning: The managerial function of staffing involves manning the organisation structure through proper and effective selection, appraisal, and development of personnel of fill the roles designed into structure. The essence of staffing is the placement of the right man on the right job and at the right time. Right Right

51

Job Right Man

Time

Nature of staffing: 1. Personal department created to help line management, in-the best discharge of the staffing function. 2. Staffing concerned with acquisition, utilization and maintenance of the human factor. 3. Crux of staffing: right man, at the right job, at the right time, i.e. 3Rs of staffing. 4. Provides finishing touch to organizing. 5. Key to directing and controlling. 6. Staffing of managers occupies prominent place. 7. Continuous exercise. 8. Crucial for successful functioning of the enterprise. 9. Affected by external factors also

44. Explain the functions. HRM.

Function of HRM(Human Resources Management) The HRM activities play a key role in any organisation. The important functions of HRM are discussed below: 1. Formulating HRM strategy 2. Restructuring of organisation 3. Training and development 4. Resourcing 5. Human resource planning 6. Compensation and Reward

HR Planning

compensation&

-HR analysis reward -HR Strategy HRM -wage/salary -Assessments Activit

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ROLES OF THE PERSONNEL MANAGER: 1.Figurehead Role: All the managerial and operational activities of this department are carried out under the able leadership, guidance and control of the personnel manager. 2. Liaison Role: The personnel manager plays the role of the liaison officer; in maintaining links with labour organizations, government labour department, labour contractors, labour welfare organisation etc. 3. Organisation Role: He plays an advisory role regarding personnel matters. He suggests best personnel plans, policies, and programmes, to the top management, for the timely procurement and the best utilization of the personnel. 4. Legal advisory Role: The industrial and commercial enterprises are subject to a number of labour legislations concerning various labour issues- like hours of work, payment of wages and bonus, workmen compensation, settlement of industrial disputes etc. 5. Welfare Role (or a well-wishers role): Maintaining congenial work-environment. Adequate and timely payment of remuneration, bonus, profit-share etc. Ensuring opportunities for advancement or promotions to employees. Planning for job-security Fair dealing with employees, with a sense of justice. Implementing industrial safety measures. 6. Reconciliatory role: Settlement of terms with labour union leaders on the issues of wage and bonus payments. Settlement of industrial disputes. Securing co-operation on introduction of organizational changes. Recruitment of workers based on the recommendations of labour unions, etc. 7. Researchers Role: Developing new and better sources of recruitment Suggesting improvements in selection procedures for various categories of personnel Discovering better motivational techniques Thinking over more effective measures towards assuring better labour relations etc. 8. Societary Role He must be primarily concerned with generation of maximum employment opportunities and ensuring social-peace through maintaining excellent industrial relations to the benefit of the society and also to the benefit of the organisation.

45. Explain about the functions of Personnel manager.

Functions of the Personnel management (personnel manager): Personnel Manager a) Managerial Function i. Planning ii. Organizing

b)Operational function i. Technical functions ii. Efficiency functions

53

iii. Staffing iv. Directing v. Controlling

iii. Motivational functions iv. Welfare functions v. Procedural (legal) functions vi. Social functions vii. Research functions

a) Managerial Function: 1. Planning: the type of planning done by the personnel manager relates to determination of the objectives of the personnel department. 2. Organizing: the processing of organizing followed by the personnel department is the same as is required for developing the overall enterprise organizational structure i.e. allocation of duties to various individuals. 3. Staffing: the personnel has to first care for its own staffing. There must be a perfect matching of jobs and individuals. 4. Directing: the major components of the directing function i.e supervision, motivation, leadership and communication are as much applicable to the personnel department as to the enterprise, as a whole. 5. Controlling: the controlling processes are also enforced to regulate the functioning of people working in the personnel department. b) Operational functions: 1. Technical functions: i. Recruitment, ii. Selection. 2. Efficiency functions: i. Placement, ii. Training and development, iii. Promotions, iv. Maintaining congenial work-environment. 3. Motivational functions: i. Development of a suitable system of compensation, ii. Profit sharing, iii. Incentives plan of wage payment. 4. Welfare functions: i. Job-security, ii. Industrial safety, iii. Retirement benefits, iv. Leave benefit, v. amicable settlement of industrial disputes, vi. Other facilities. 5. Procedural functions: i. keeping personnel records, ii. Designing schemes and methods for performance appraisal and job analysis, iii. Maintaining crucial records of absenteeism, labour turnover, industrial accidents etc., iv. Keeping legal records. 6. Societal functions: I. Generation of maximum employment opportunities, ii. Maintaining excellent industrial relations, iii. Ensuring Maximum labour productivity. 7. Research functions: i. Developing new and better sources of recruitment, ii. Developing better motivational techniques, iii. Researching into better techniques of job-analysis and job-evaluations etc., iv. Designing and implementing ever-improving selection procedures, v. designing better and more acceptable methods of performance appraisal. The staffing process: Staffing process 1. Primary phase i. Man-power planning ii. Recruitment iii. Selection iv. Placement v. Induction 2. Secondary phase i. Training and development ii. Compensation iii. Integration (motivation) iv. Promotion, demotion and Transfer v. Personal welfare (health, safety, Recreation etc

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vi. Performance appraisal vii. Human relations

46. Explain about the Man Power Planning.

I. MAN-POWER PLANNING Manpower planning is planning done in relation to the manpower resource (human asset) of the enterprise. It refers to the number and quality of work force required in an organisation while planning for work force involves anticipating needs for employees. Man power planning is the process (including forecasting, implementing and controlling) by which a firm ensures that it has the right number of people and right kind of people at the right place, at the right time, doing things for which they are economically most useful. Manpower planning has two main aspects a) Quantitative: This aspect of manpower involves the determination of the number of personnel required. The number of employees is determined on the basis of workload analysis and workforce analysis. Workload analysis is based on production and sales budgets, time study and work scheduling. Work-force analysis is an analysis of the present manpower and its future potential. b) Qualitative: this aspect is concerned with the determination of the type of manpower required. It might be defined as a process, which is undertaken for matching or balancing manpower demands of an enterprise-both in the short-run and the long-run with the supplies of manpower; with the basic objective of providing the right man at the right job, at the right time-through the formulation and implementation of the suitable programmes and policies-for attaining the aforesaid objective. Manpower Demands Manpower Supplies

Manpower planning as a matching process Manpower planning could be analyzed into short term and long term manpower planning. The former covers a period upto 1 year or 2 years; while the latter extends to a period ranging from 3 to 5 years-upto a maximum of 10 years.

Features of manpower planning: 1. It includes all activities in regard to human resources 2. It is concerned with finding out the manpower requirements of the organisation in the right number and at the right time. 3. It takes decision to meet the difference between demand and supply of manpower.

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4. It includes inventory of present manpower of the organisation. 5. To be effective, manpower planning must include not only recruitment, development of workers, etc., but also their working conditions. 6. Control of wage and salary costs 7. Assessment of future skill requirements 8. Determination of future recruitment and selection needs. 9. Anticipation of surplus staff and avoidance of unnecessary dismissals. 10. Ensuring optimum utilization of human resources currently employed

47. Explain about the Manpower planning Process.

Manpower Planning Process: 1.Phase One: This phase is mainly concerned with both job analysis and skills inventory. Job analysis is the process by which pertinent information relating to the nature of a specific job in the organisation is obtained. Job analysis involves job description and job specification. a) Job description: it describes the job and specifies the requirements of a job. It is a detailed outline of a job, specifying the attributes and factors involved in its performance, including mental requirements, physical attributes, working conditions, responsibilities, stress factors etc. Name or title of the job, and its location (department) Nature of authority, responsibility, relationships. Necessary qualifications, i.e education, skills, training, experience etc. Working conditions b) Job specification: it states the qualities needed for an individual to perform the job successfully. It is based on job description and job analysis. Education BE Attainments experience Intelligence common sense Physical good health, eye-sight Age - 25 2.Phase Two: This phase is concerned with personnel forecasting Personnel forecasting is process by which the future personnel requirements of the organisation to achieve the organizational objectives is determined. 3.Phase Three: This phase is concerned with the taking of measures to obtain the quantity and quality of human resources to achieve the enterprise objectives.

48. Define Recruitment. Write different Sources of recruitment.

2. RECRUITMENT Recruitment is the process of searching for sources of manpower supplies; and include preparation of recruitment list- to provide the basic man power data for final selection purposes. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. Recruitment Source

Recruitment sources:

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a) Internal sources
1. Promotions 2. Transfers 3. Old employees

b) External Sources 1. Advertising the vacancies 2.employement exchange 3. Gate Hiring 4. Educational & technical insti. 5. Labour contracts 6. Personnel consultants 7. Labour unions 8. Recommendation of existing Employees.

I. INTERNAL SOURCES: Internal sources of recruitment are those through which the manpower supplies are obtained, out of the personnel, already working in the organisation or out of the ex- employees of the organisation. 1. Promotions/Demotions of existing employees: Promotion means an upward placement of an existing employee on a higher-level job; involving more responsibility coupled with higher status, and carrying more remuneration and perks. Demotion means a downward placement of an existing employee on a lower level job; involving less responsibility coupled with lower status, and carrying less remuneration and perks. It is vertical shifting of employees 2. Transfers of existing employees A transfer refers to the shifting of an employee from one job to another without a orastic change in the responsibilities and status of the employee. It is a horizontal shifting. 3. Appointment of ex-employees. Sometimes ex-employees, of an organisation might be recalled; and assigned to suitable posts, in the organisation. Two types of situations Recalling of ex-military personnel, in case of military organisation, especially emergency situations, e.g the outbreak of war. Recalling laid-off or retrenched employees, by any organisation, provided such personnel are willing to rejoin the organisation. Merits of internal sources of recruitment: 1. Easy availability: From the internal sources of recruitment, personnel are easily available, specially in case of promotion and transfers. 2. No recruitment costs: It does not entail any substantial recruitment costs; as recruitment list can be prepared without much time, efforts and costs, by management- on the basis of past personnel record. 3. Selection procedure formalities, not required A specified selection procedure formality is naturally rendered unnecessary, in case of internal sources of recruitment. 4. No need for orientation Existing employees or ex-employees of the organisation do not require any induction or orientation; as these are already introduced to the organisation. 5. High moral and reduced labour turnover

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It leads to high employee morale. This advantage is specifically applicable in case of promotions; when promotions are to be made, on the basis of seniority or merit. 6. Correcting faults in placements Through effecting demotions and transfers of existing employees, internal sources of recruitment, provide an opportunity to management to correct defects in the original placements of employees 7. To enrich experience of existing employees. It enables management to enrich the experience of existing employees; by effecting pleasant transfer and resorting to promotions of employees on new and challenging jobs. Limitations of internal sources of recruitment 1. Fresh talent from outside, not availed of It limits the talent only to the limited talents of the existing employees. Fresh talent from outside sources is ruled out, under this method of recruitment. 2. Favoritism and nepotism It might lead of spoiling human relations in the organisation. At the same time, meritorious employees might become negligent in their work in future. 3. Limited sources When a large number of personnel are required for promotions or placement on additional jobs created by the expansion of the enterprise. 4. Unsuitable for newer types of jobs When certain newer types of jobs are created in an organisation, because of restructuring of manner of functioning of the organisation; it might fail to serve the purposes of management. II. EXTERNAL SOURCES OF RECRUITMENT 1.Advertisements: Vacancies might be advertised through the following media: Press: including leading newspapers, local dailies, trade magazines and journals etc. Audio- audio-visual media: including radio, T.V, cinema, Internet etc. It is a convenient and economic method. The disadvantages of advertising are that it brings in a flood of applications, many of which are from unsuitable candidates. 2. Employment exchanges It is the most popular medium of external recruitment. Public employment exchange: i.e established by the state, there are usually, separate exchange for unskilled, semi-skilled and technical types of personnel. Private employment exchange, more often, specialize, in the registration of personnel aspiring for management cadre jobs or technical type of jobs. 3. Campus recruitment i.e educational and technical institutions: It relates to getting personnel from-schools, colleges, universities and technical institutes. Representatives or agents of employers visit these educational institutions; and make a fires-hand recruitment for willing personnel 4. Jobbers or contractors/personnel consultants Jobber or contractors maintain close contacts with labourers and they can provide the required number of workers at short notice. They maintain contacts with employers, who would require personnel, available with them; and supply the requisite number and quality of personnel to them- charging commission, for their services. 5. Recruitment at the factory gates or gate hiring. It is common practice, still today, in India, for unskilled labourers to throng factory gates; aspiring for getting jobs-temporary or permanent.

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Management can recruit personnel, out of this source, in the number required by it; on the basis of preliminary interview or interrogation. 6. Waiting lists of unsolicited applicants. Applications received from such persons have a short life, because properly qualified and experienced applicants would not wait until the enterprise has a suitable vacancy for them. Unsolicited applicants may or may not get jobs of their suitability; depending on the availability of vacancies, with employer 7. Recommendations of existing employees. Existing employees of the organisation might be asked to recommend the names of their friends, relatives or acquaintances for recruitment to various posts lying vacant in the organisation. 8. Labour union recommendations The management of a business enterprise might invite recommendations from the leaders of labour unions, to suggest the names of suitable personnel, for recruitment to certain jobs, lying vacant in the organisation. Sometimes, there might be an agreement management and labour union leaders, whereby, at least some agreed percentage of personnel must be recruited on the recommendations of the labour union. It helps to the management in the way of good relation with trade union and gets trust and confidence on personnel. 9. Field trips An enterprise may send out teams of experts to different places where the kinds of personnel needed by it may be found. But in this case it is necessary to give wide publicity to the date, venue and the time when such a team would interview candidates at a particular place.

49. Define Selection. Write the importance of Selection.

SELECTION: Selection might be defined as careful screening of recruited candidates (i.e prospective candidates) through testing and interviewing them; with a view to discovering best-fit from among them for assignment to various jobs in the organisation. The process of selection in a process of elimination of unsuitable candidates-at various stages, comprised in the selection procedure.

Significance of selection: 1. Reduced labour turnover: The phenomenon of unnecessary labour turnover is highly minimized-making for a stable labour force in the organisation. This is benefit both the organisation and workers. 2. Lesser need for training: Properly selected personnel exhibit a lesser need for training; as their suitability for the jobs to be assigned to them, has already been verified through the selection-procedure. As such saving organizations time, effort and cost. 3. Self-motivation and high morale: When suitable candidates (i.e best-fit) are assigned to matching jobs; such personnel feel selfmotivated towards the best performance on their jobs. It helps in building high morale of such personnel, for the organisation. 4. More and better production- leading to profit maximum

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The derivative advantages of the self-motivation and high morale is that the production (or performance) turned out by best fits is not only more in quantity; but also of a superior quality. This phenomenon leads to profit maximization, for the enterprise, in the long-run. 5. Good human relations As a result of goods selections, there is a better environment for working in the organisation. Such environment helps to promote good human relations in the organisation.

50. Explain about the Selection Procedure.

: A selection procedure differs From organisation to organisation, depending on the philosophy of selection. A selection procedure suitable for clerical jobs might not be at all suitable for managerial or technical jobs. Following is a brief-comment on each of the above-stated steps of the basic selection procedure; with a somewhat detailed account of selection-tests and interviews. 1. Requisition: The requisition for personnel from any particular department must be duly authorized by the head of that department further, It must be accompanied by the relevant job specification to enable the personnel department select the right quality of personnel, required by the department (sending the requisition) In particular, the requisition for personnel sent by a department must state- The number of personnel required - The qualifications or qualities required in those personnel. 2. Recruitment On the basis of Requisition received by the personnel department, the same will search into various sources of recruitment. Next, it will prepare a recruitment list. 3. Application blank/preliminary interview. This stage is, perhaps, the real starting point of the selection procedure. Each person whose name appears on the recruitment lists is sent a blank application form-called the application blank; to be duly filled in by the candidate. An ideal application blank might be suggested to contain the following particulars, under some of the oft-used categories. i. Personal data ii. Educational and technical qualifications - Academic examinations passed, with details - Technical examinations passed with details - Experience - Employment exchange particulars - Extra-curricular activities - Work preferences salary, perquisites, type of work desired by the candidate. - References i.e names of two or three renowned personalities 4.scrutiny of application forms The application forms filled in by candidates are scrutinized i.e carefully examined on the basis of job-specification and other organizational requirements, desired in candidates; so as to eliminate the outright misfits, at this stage. 5.Test Candidates, whose applications are accepted; are usually supposed to take certain tests, to prove their suitability for the jobs, being applied for by them.

i. ii.

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Various types of tests, in the selection procedure, might be placed in the following three categories. I. Trade Test A trade test is test, given to a candidate in performing the job, for which, the candidate has applied; and which would be assigned to him, if selected. i. Job-test proper - Example: a person applying for the job of a typist might be given a rest in typing to test his speed and accuracy. Likewise, candidates who are to be placed on various machines etc., might be asked to demonstrate their ability in the proper and safe handling of such machines. ii. Proficiency or achievements tests - A refinement of the job-test proper - An outstanding example of proficiency test could be traced in case of sports organisation; which might ask sportsmen- candidate to exhibit their proficiency by showing excellent- performances, at sports-trials, held for this purposes under the invigilation of sports-experts. II. Psychological Tests - Psychology, as a branch of knowledge pertaining to social sciences, deals with a study of mind and the mental processes involved in the functioning of mind. a) Intelligences tests - These are conducted for having an idea of the intelligence of a person; with reference to an examinations of mental traits like the following: - Mental alertness, power of reasoning and drawing inferences, power of memory i.e power to retain ideas and things, in mind, originality, initiative etc. - The basic technique followed in analyzing intelligence tests is to obtain (from conducting a particular intelligence test) rating called Intelligence Quotient (or I.Q) - I.Q. is calculated as per the following formula: Mental age I.Q = ------------------------------- x 100 Chronological age - If a person of the age of 20, replies questions which could be answered well by a person of the age of 15; his I.Q will be 75, as calculated below: 15 I.Q = ------- x 100 20 Level of intelligence IQ Very poor between 50 to 60 Average between 100 to 110 Above average 130 Quite advanced 140 or 150 or higher - Showing a short film and asking questions based on things shown in the film- to test the power of memory etc. b) Interest test: - These tests are designed and given to candidates; to judge their areas of interests. - Interests tests seek to discover- the special concerns of people for different jobs, their fascination for particular jobs, their degree of involvement in jobs to their liking. c) Aptitude tests - Aptitude means a natural ability to acquire knowledge or skills. - The purpose of aptitude tests, ultimately, is to find out the potential of individuals for development on the jobs of their interests- physically and mentally.

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d) Personality tests - To assess some of the following features of candidates: - Self confidence - Temperament - Dominance - Courtesy - Emotional maturity - Quality of mixing up with others - Sense of social behaviour etc. III. Special tests This test seeks to judge the ability and speed with which persons can move their hands and fingers. An efficient use of hands, in an important requirement for the successful performance of most of the manual jobs or machine operated jobs. 6. Employment Interview Personal or face-to-face interview is the most popular step in selection procedure. It helps to serve several purposes. i. It provides additional information about the candidate. ii. Face to face conversation helps in judging the suitability of the candidate. iii. Interview serves as a check on the information obtained through application blank and tests. iv. Interview may be used to give detailed information about the job and the organisation. v. A personal meeting between the candidate and the interview board can be used for exploring the candidates aptitude and capabilities. Types of Interview: I. Questions asked a) Patterned or structured interview In this type of interview, the interviewer has a list of standardized questions prepared in advances; and each candidate is asked the same questions as per the list, with the interviewer. This type of interview is conducted, usually for routine type of jobs; where an interview is held only as a matter of formality. b) Unstructured or in depth interview There is no standard list of questions, with the interviewer. The interviewer may ask any type of questions from any candidate; depending on the nature of job and the outwardly appearance of the candidates. It usually is held for candidates to be selected for higher level of jobs. It is concerning various social, political and organizational aspects etc. relevant for efficient job functioning. II. Technique of interviewing: a) Directing interview: This s type of interview is a brief but straight- forward, face-to-face question answer session between the interview and the interviewee. In such an interview, it is not possible to make any in-depth observation or analysis of a candidates, skills, characteristics or attitudes. b) Indirect interview: There are no direct or straight questions put to the candidate.

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The interviewer in such an interview is a patient listener, neither interrupting the candidate, nor expressing any opinion or judgment on what he says.

III. Number of interviewers: a) Single interviewer interview There is only one interviewer; who would put questions to all candidates. b) Panel or board interview There is not one, but many interviewers to put questions to a candidates. One interviewer may ask questions concerning the candidates educational background, another about his professional skills, yet another regarding his interest and aptitudes and so on. A candidate is selected or rejected on the basis of the combined performance rating by the interviewers. IV. Number or interviewees: a) Single candidate interview: This type of interview is suitable where- There number of interviewees is rather, limited - There is a need to examine each candidate in an in-depth manner. b) Group interview: A number of candidates are interviewed simultaneously. A question or problemsituation is posed before them and each candidate is asked to participated in the discussion that follows. It is on the basis of a candidates performance during the group discussion that he is selected or rejected. V. Special or Stress interview: The interviewer deliberately creates situation that puts the candidate to considerable stress and strain. For example: the interviewer may, by turn, display anger, or highly critical reaction, and may even try to draw the candidate into a verbal duel. Alternatively, he may display utter passivity, not reacting to anything said by the interviewee. An atmosphere of tension or stress in the interview might be created, e.g by- Putting unusual questions to candidates - Posing a ticklish or complex problem concerning the candidates likely work field and asking them to suggest a suitable solution to it. Procedure for an Interview: 1.Review of background information it is advisable to collect and co-relate all relevant information 2.Preparation of question plan- it is to prepare a question plan, particularly if the interviewer is not sufficiently. 3.Putting the candidate at ease-the candidate should be provided all necessary facilities and comforts so as to put him at ease with himself. 4.Drawing out the best in the candidate-interviewer to decide how best to tackle each candidate so that he is enabled to give out the best in him. 5.Concluding the interview-the interviewer should quickly glance through his notes and bring to mind his impressions about the candidate so as to make a provisional assessment of his performance. 7.Medical Examination Some organizations ask for a certificate of physical fitness from a medical expert while others insist on a medical examination of the candidate by their own panel of doctors. Physical examination fulfills fulfils at least three objectives. - It serves to ascertain that the candidate is physically fit of perform the job.

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- It helps to prevent communicable diseases entering the organisation. - It serves to protect the organisation against unwarranted claims under the Workmens Compensation Act. A proper medical examination will ensure high standards of health and physical fitness of employees and will reduce the rates of accident, absenteeism and labour turnover. Minimum standards of physical fitness should be laid down according to the nature of jobs. 8. References. A candidate likely to be eligible for selection, might be asked to furnish certain references i.e the names, addresses and designations of some men of status, trust and confidence; who might be used by the employer for ascertaining the candidate, in question. A referee is potentially an important source of information about the candidates personality and character. 9. Final selection / issuance of letters of appointment. A candidate who has crossed all the hurdles in the selection procedure is formally appointed by issuing an appointment letter or by entering into a service agreement with him. Selection procedure Requisition Recruitment R E Scrutiny of application J Test E Interview C T S Medical examination Reference Final selection Placement E C T S L E Application Blank/Preliminary Interview S

51. Define Orientation. Explain about Orientation Programme.

ORIENTATION OR INDUCTION When a newly appoint employee reports for work, he should be made familiar with the work environment and the fellow employees. This is known as induction or orientation. The new employee can be inducted into the organisation by introducing his job, fellow workers, superiors and subordinates to him. The new employee should be oriented to the new organisation and its policies, rules and regulations.

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Orientation makes the employee feel at home and helps to adjust him into the new environment. It is designed to achieve the following objectives: 1. To build up the new employees confidence in the organisation and in himself so that he may become an efficient employee. 2. To develop among the newcomers a feeling of belongingness and loyalty to the organisation. 3. To faster a close and cordial relationship between the newcomers and the old employees and their supervisors. 4. To give newcomers necessary information such as location of lockers rooms, cafeteria and other facilities, rest period, leave rules, etc.

The following information may be provided under an orientation programme: 1. Short history of the company 2. Operations and products of the company 3. Companys organizational structure 4. Location of departments and employee facilities 5. Personnel policies and practices 6. Rules and regulation 7. Grievances procedure 8. Safety measures 9. Standing orders 10. Employees activities.

52. Explain about T&D Programme.

TRAINING AND DEVELOPMENT Training is the process of increasing the knowledge and skills of an employee for doing a particular job. In industry, it implies imparting technical knowledge, manipulative skill, problem-solving ability and positive attitudes. The effectiveness of a training programme should be evaluated so that necessary improvements may be in it from time to time. Training involves changing of skills, knowledge, attitude, or social behaviour. Training is the art of increasing the knowledge and skill of an employee for doing a particular job. Development is the process of transition of an employee from a lower level of ability, skill and knowledge to that of higher level. This transition is influenced by education, training, work experience and environment. Development will improve value of individual employee in terms of his self-development, career growth and contribution to the organisation. Training and Development (T&D): Training implies the act of increasing the knowledge and skills required for efficient performance of a particular job. Development means growth of an individual in all respects. All executive development programmes are designed to build up or improve competence and potential for managerial jobs. Training is largely job-centered while development is career bound.

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Objectives of T&D To increase productivity of employees/workers To improve quality of work/product To enhance and update knowledge and skill levels of employees in the organisation To secures better health and safety standard To improve quality of life of employees To attain competitive advantages To sustain competitive advantages, etc Types of training:

Orientation training: it seeks to adjust newly appointed employees to the work environment. Job training: it refers to the training provided with view to increase the knowledge and skills of an employee for a particular job. Employees may be taught in the techniques and machines used in a job. Safety training: training provided to minimize accidents and damages to machinery. It involves instruction in the use of safety devices and in safety consciousness. Promotional training: it involves training of existing employees to enable them to perform higher-level jobs. Refresher training: when existing techniques become obsolete due to the development of better techniques, employees have to be trained in the use of new methods and techniques.

53. Explain about the types of Trainning Programme.

Methods of Training or classification of Training: I. ON-THE-JOB TRAINING (Under this method, an executive learns by doing the job) i. Coaching and under study: A senior executive acts as the coach or counselor and is assigned the responsibility of seeing that trainee learns the necessary skills. The trainee receives personal instruction and guidance from his skills. ii. Position Rotation: It refers to the rotation of the trainee from one job to another so as to widen his knowledge and skills. The object in this case is to give the trainees an experience of actual participation in managerial decision-making at higher levels. iii. Apprenticeships The apprentice learns the methods of work by observing and assisting his senior. It is normally given to artisans, electricians, plumbers, bricklayers, and the like. The duration is normally varied from 2 to 5 years. iv. Orientation or induction training It is meant for the new employees and its sole object is to adapt them to the specialized job requirement and work methods of the enterprise. v. Special Projects The trainee may be asked to perform a special assignment so that he would be in a position to acquire knowledge and also to learn the work procedure. vi. Refresher training or retaining

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While refresher training helps the workers in learning new methods and skills, it also enables them to refresh their memory of thing which they had learnt a long time ago. This is not all. Due to changes in demand for goods and services, many new jobs have to be created and to master these, refresher training becomes necessary. vii. Vestibule Training It means training organized in a school in an industrial plant to train new workers in specific skills, so as to prepare them to handle jobs on the shop floor. It is provided by special instructors, away form the shop floor. .OFF-THE-JOB PROGRAMMES i. Special course and lectures: Special course and lectures are arranged by business organizations in numerous forms for developing theirs managers. SBI, HLL, RBI, These organizations also arrange some courses or lectures by the staff of some universities and institutes. Sometimes, the business concerns may send their employees to attend courses of one or two week duration conducted by some university. ii. Conference: A conference is a group meeting in which the members participate in discussion on some topic. The purpose of the conference is to develop the knowledge and understanding of the participants. iii. Role Playing. It refers to the process in which the trainees act out samples of real business behaviour. The role players are given a written or oral description of the situation and the role they are to play. For instance, a trainee may play the role of a supervisor discussing a grievance with an employee or a salesman making a presentation to the customer. iv. Management or business games It involves a group exercise in decision-making as regards an administrative problem. As the business conditions are simulated in a game, this method is also known as simulation training. In the management games, trainees are asked to make decisions about production, sales, inventory, research and development cost, etc. It provides training in decision-making under uncertainty and experience in team-work. v. Brainstorming It is a problem-solving technique which consists of evaluation of ideas put forward by a group of people who are convened especially for this purpose. vi. Case study In this method, in instructor describes the actual situation or problems of a specific concern and the participants are encouraged to take part in objective discussion of the problem. This method increases the trainees power of observation and also his analytical ability. vii. Sensitivity Training (T-group training) It involves interaction in small-unstructured groups under conditions of stress so as to develop awareness and sensitivity to behaviour patterns of oneself and others. It seeks to increase tolerance power of a person and his ability to understand others. In group discuss, the trainees freely express their ideas, beliefs and attitudes viii. Transactional analysis It is yet another training method to develop interactive and communication skills.

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It is a means to know why people are what they are, and also why they do what they do. When applied to job situations, it enables better understanding of how people relate to each other, and how communication and human relationships between them can be made more effective.

54. Explain the Systematic approach to Trainning.

Systematic approach to Training A systematic training is specifically designed to improve and develop the knowledge, skills and attitude required by individuals to perform adequately a given task or job Stage 1: Identify Training Needs Organizational level/corporate level Job/occupational level Individual employee level. Stage 2: Design Training Solution Using various methods of training programme Stage 3: Implement Training Solution. On-the job training Off-the job training Stage 4: Evaluate Training Effectiveness Subjective evaluation Objective evaluation Advantages of Training 1. Job satisfaction 2. Higher output of quality goods 3. Fewer accidents reducing numbers of accidents 4. Low spoilage rate 5. Reduction in number of complaints 6. Mastery in new methods 7. Better use of resources 8. Introduction of latest methods Healthy inter-personal relations. 55. Explain about Performance Appraisal. PERFORMANCE APPRAISAL (OR) MERIT RATING Job Design: Job design is the process of deciding on the content of a job in terms of its duties and responsibilities, on the methods to be used in carrying out the job, and on the relationship that should exist between the job-holder and his superiors, subordinates and colleagues. Concept of performance appraisal: It means the systematic evaluation or appraisal of the performance of an employee by some qualified persons. It is a systematic and impartial assessment of an employees performance on the assigned job, with view to discovering how well or worse is the job being performed by him/ her; and also unearthing his/her potential for further development.

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It refers to various formal systems of appraisal, in which the individual is compared with others and ranked or rated. He is rated in the sense that he is measured or compared and classified. It is made to find out the quality of performance of different employees in relation to the requirements of each job.

Purpose or importance of performance appraisal: 1. It assists the supervisor to appraise the performance of his employee which is of immense use to the management 2. It may be used for the selection and training of new employees 3. It is also useful in deciding the type and nature of training programme of the employees. 4. It forms a scientific and systematic basis for any increase in the wages of employee 5. It is helpful in preventing grievances because it is a definite aid to management in promoting fairness to employees. 6. It guides and helps the employees in their self-improvement. 7. It enables close monitoring of the progress made by each employee. 56. Explain about techniques of Performance appraisal. TECHNIQUES OF PERFORMANCE APPRAISAL (OR) APPRAISAL METHODS OR TOOLS OF (PA) I. Traditional approach: 1.Ranking Method: It is the oldest and the simplest method of performance appraisal. Under this method, all the employees in a work group are ranked one against the other. Names of employees are written on cards and on the basis of individual work performance, attitudes, behaviour, sincerity, honesty and such other positive factors, the cards are arranged in order from low to high. 5 Murgan 4 Robert 3 Singh 2 Shyam 1 Ram

Merits: This method is the simplest. It gives performance appraisal of employees immediately. Demerits: It cannot be effectively applied in large undertakings. It does not accurately determine the degree of difference between any two employees. 2.Graphic scale method Under this method, persons in a work group are ranked on against the other. But it attempts to quantify each trait or factor in an employee. As the very names implies, these methods provide some kind of a scale for measuring absolute difference between individuals. Suppose that employees are to be evaluated against the following yardsticks. i. Knowledge of the job ii. Quality of performance iii. Quantity of output iv. Honesty and loyalty v. Capacity for hard work.

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Further suppose that each trait is composed of 10 degrees, having categorization in five classes of-Very Poor, Poor, Average, Above Average and Excellent. VP P A AA E Knowledge of the job 0 1 2 3 4 Quality of performance Quantity of output Honesty and loyalty Capacity for hard work 0 0 0 0 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 z

Merits: This technique forces the rate of think in specific terms about each employee. This is a quantitative method of performance appraisal. Therefore, better inter-employee comparisons could be made. This method is quite interesting for the rather; even when the number of employees is considerable. Demerits: The same rating scale may not be valid for all the traits (like quantity of output, capacity, for hard work etc.) Specification of degrees into various classes like poor, average, excellent etc. is quite arbitrary. The rater could afford to be biased or prejudiced, which encircling degrees of particular traits. 3.Paired Comparison Technique Each employee is rated in comparison with each of the others in the rating list. But whereas one employee is compared with all the others, only two of them are compared at one time. For example, if there are five employees A, B, C, D, and E; first of all A will be compared with B; then A with C; next A with D and finally A with E. in a similar manner, B will be compared with A, C, D, E and so on for C, D and E. No. of comparisons = N(N-1)/2 In case of 5 employees as stated in the example given above, the total number of comparison will be 10 i.e 5(5-1)/2 =10 The results of comparisons are tabulated; and the ranking order is created from the number of times a person is considered superior to others. Merits: This method gives a better ranking order than the overall ranking method Demerits: It suitable, when the number of employees preferably, does not exceed10; so that the task of comparisons does not become boring and tiresome. Its weak point is that it may become too lengthy and also complicated. 4.Forced Distribution Method In this method, the employees are rated for overall performance and not for each trait This method requires the rater to distribute his rating to follow predetermined distribution. All employees in a work-group are divided into following 5 categories, with a fixed percentage of total employees being place in each category.

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The ratings of employees performance are distributed along a bell-shaped curve.

No: of Employees

10% Poor

20% 40% below average average

20% above average

10% outstanding

Belled-Shaped curve. In this way, all employee to be rated are classified in five categories, in a Normal Distribution pattern

Merits: This method is quite useful, when there are a large number of employees, in the work group. It is easy to understand and to administer and also minimizes or eliminates the bias of the rater. It enables the rater to make better inter-employee comparisons.

Demerits: This method follows an illogical approach in placing employees in five categories. There is difficulty in having a normal distribution of employees, on the basis of performance appraisal. 5.Critical incident method. Each job calls for several requirements on the part of workers, and that at least some of these requirements are critical either a workers performance is extremely good, or it is extremely bad. The performance of an employee is rated on the basis of certain events or incidents which may have really happened. Some example of such events or incidents are as follows: i. Refused to co-operate with fellow workers ii. Refused to undergo further training iii. Becomes upset or angry over work iv. Suggested methods to avoid wastage v. Suggested methods to improve the quality of goods. vi. Refused to obey orders. These types of critical events or incidents which may be exceptional success or exceptional failure are noted and are taken as a basis for rating the employees. Merits: This method avoids unwarranted comparisons of an employee with others. This method asks supervisor to develop habits and skills to judge exceptional performance good or bad; making them more dutiful. Demerits:

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This method of performance appraisal fails; when there are no critical events, in the working career of an employee. There is no definite conception of critical events.

6.Checklist Method In this method, the rater does not evaluate the performance of the employee but simply reports it to the personnel department which does the job of final rating. The rater checks to indicate, whether the answer to a question about an employee is in yes or no and make a tick-mark( ) in the appropriate column on the checklist, accordingly. Following is an illustration of the checklist technique of performance appraisal.

Questions Is the attendance of employee satisfactory? Is he interested in the job? Shows respect to supervisors Co-operates with fellow workers Makes mistakes Is punctual on the job Keeps ahead of work schedule Does he follow orders? Does he take initiative?

Yes ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

No ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

Merits: In this method, as the rater is only to report to the personnel department without evaluating the performance of the employee, this method is considered very simple. Demerits: This system is subject to bias or prejudice of the rater. It is difficult to construct a good and comprehensive checklist. 7.Field Review Method. An expert from the personnel pays a visit to the spot; (i.e. the field) where the employee is performing his job. He observes the work performance and the behaviour of the employee; interview the supervisor attending of the employee and takes detailed notes of such interview. The supervisor is asked to give his opinion on his subordinates regarding their performance, progress etc., and on the basis of this personnel department specialist prepares detailed notes. Merits: This method is useful for large organizations with a large number employee and appears to overcome number of weaknesses found in some of the other methods of appraisal. 8.Performance evaluation: Under this method of merit rating, the emphasis is on actual performance, and not on the personality of the employee to be rated. For this purpose, written descriptions of employees performance have to be prepared. But this method necessitates a lot of paper work which makes it quite complicated and timeconsuming.

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9. Modern approach It consists of only one technique, called the goal-setting approach to performance appraisal. Since this approach is a by-product of MBO. It is also called the MBO approach to performance appraisal. The crux of goal setting approach is mutual setting of objectives by the superior and the subordinate concerned (the subordinate and the subordinate jointly decide upon the objectives) Objectives which are set are both a method of planning and an instrument of control, in that the performance of the subordinate is appraised against these very objectives. Objectives, in order to be actionable and communicative; are set in verifiable terms i.e numerical terms. Goals or objectives are set for a short period, e.g a week, a fortnight, a month, but at the most one year. A review of performance is done, at frequent intervals. Final review of performance is done at the end of the MBO period; usually a year. 57. Explain about requsites of an effective performance appraisal REQUISITES OF AN EFFECTIVE PERFORMANCE APPRAISAL PROGRAMME 1.Determination of objectives The management, before introducing an appraisal programme, should set out the objectives of appraisal programme, i.e whether to appraise to i . Ones performance on his present job or ii. Determine his potential for a higher job or iii. Determine the training and development needs of employees iv. For transfer or v. Increase in pay, etc. 2. Selecting and training of appraiser The management should select a proper person to appraise the employees and also to give him sufficient training in the methods of appraisal. 3. Establishing standards of performance. Determining the standards of performance in clear-cut terms for various individuals on their jobs and put it in writing and communicating it to the subordinates well in advance is another important requisite. 4.Frequency of appraisal As far as practicable, the management should put forth efforts to make performance appraisal a continuous process. 5. Preparation of forms The contents and design of the form should be based on the nature of job, objectives of performance of job. 6. It must be easily understandable It may be anchored to the ground by its own-dead weight of complicated forms which nobody but the experts understand 7. The system should fit the organizations operations and structure Performance data pertaining to any one individual cant be regarded as sufficiently discrete or reliable of appraising his performance. 8. The system should be both valid and reliable The validity of ratings is the degree to which they are truly indicative of the intrinsic merit of employees. 9. The system should have a built-in incentive, i.e a reward should follow satisfactory performance.

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10. The system should be periodically evaluated to be sure that it is continuing to meet its goals 58. Explain about Merits & Demerits of PA.
MERITS AND LIMITATION OF PERFORMANCE APPRAISAL (PA)

MERITS: 1. Assistance in operational decisions of personnel management Performance appraisal is helpful in operational decisions of personnel management, relating to, -Pay increase -Promotions/demotion -Lay-offs -Transfers etc. 2. Clues to medications in selection procedures etc. PA of employees provides clues to management for effecting improvements in selection procedures and placement of employees. 3. Development of training programmes The top management can advise/direct the personnel department to design and implement suitable training programmes, for the betterment of employee performance. 4. Encourages health competition PA information encourages a healthy competition among employees; in that each one would try to excel all others, in matters of work-performance. 5. Unearthing potential for growth PA, besides measuring job performance, also seeks to discover the potential for growth in employee. 6. Attracts good personnel to the organisation If better than average performance is rewarded by management, based on PA records; the same is likely to attract good personnel to the organisation. 7. Rule of thumb replaced PA seeks to evaluate employees performance in a systematic manner; and replaces the rule of the thumb of supervisor, in this regard. LIMITATIONS 1. Ability of the rater; doubtful The rater not be competent to do performance appraisal task; unless, of course, he is an expert in the area concerning the actual job operations. 2. Distrust of superior Apart from the modern goal setting approach to PA; almost all the methods comprised in the traditional approach are alleged to carry the charge of the distrust of supervisor, in PA procedure and practices. 3. Different standards of evaluation Different raters, engaged in the performance appraisal process, likely to follow different yardsticks or standards of performance evaluation. 4. Comprehensive appraisal, not possible

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No technique of PA could be comprehensive enough to embrace all possible aspects of the behaviour, qualities and performance of employees. 5. Vague measurement of abstract qualities Abstract qualities of employees like aptitude for work, a sense of co-operation, initiative, creativity etc., cannot be measured exactly, under any system of PA. 6. Ignore measurement of human values Human values like honesty, sincerity, loyalty, love etc. seem beyond the scope of PA. In 58. Define Career Strategy. Explain steps involved in career strategy. CAREER STRATEGY Performance appraisal findings provide the very basis for developing a career plan or strategy for an individual. Career strategy is a personal matter and a variable concept; whose dimensions and implications differ from person to person in various enterprises and various societies.

Steps in Formulating Career strategy: 1.SWOT analysis. A career plan must be realistic and capable of attainment, and not idealistic and unattainable throughout ones life. The acronym SWOT stands for: o S Strengths i.e plus point of the personality of an individual o W Weakness i.e minus points of the personality of an individual o O Opportunities for progress lying inside and outside the organisation o T Threats or challenges posed by organizational environment or the environment obtaining outside the organisation.

A realistic career strategy must be formulated in a way so as to exploit fully the opportunitieswhile capitalizing on ones strengths and at the same time, overcoming ones weakness and keeping away from threats. 2. Setting long-range personal goals What should be the time frame for setting long-range objectives, depends on the commitment principle i.e long-range should be planned for a period during which their attainment is possible. For example: A new school or college teacher who sets an objective of becoming the Head of an institution (principal) must set a long-range personal goal of at least 10 to 15 years a minimum period necessary for acquiring experience to be eligible for headship or principalship. 3.Development of strategic career alternatives Career strategy formulation would be to develop strategic career alternatives, again in the light of the findings of the SWOT analysis. For example: a teacher who is excellent in academics but poor in administrative abilities, may have a strategic career alternative of being a professor rather than a principal, in a educational institutions. During the process of developing strategic career alternatives, the following considerations require special focus and attention: i. Consistency Test o Consistency testing implies that the Strategic career alternatives are consistent with the personal values or interests of the individual.

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Example: a person who has necessary skills for being a computer programmer may take more interest in dealing with people i.e he/she may have a better career in being a public relations officer, somewhere.

ii. Development of Contingency plans Contingency career plans based on alternative assumptions should be prepared, to keep oneself on the safe side. 4. Development at short-range career objectives and action plans: The strategic career alternative finally selected by an individual should be translated into shortrange career objectives and action plans. For example, an average employee (say a clerk) who plans to be a manager after earning a master of business degree must complete a number of courses necessary to qualify for that degree. This amount to setting short-term career objectives. 5. Implementation of the career plan. The best career plan is useless; if it is not carried out. For the implementation at the career plan, one can request a promotion or a transfer or find another job outside the organisation. Intelligent management considers career goals and personal ambitions of people, while selecting or promoting employees. 6.Monitoring progress Monitoring is the process of evaluating ones progress towards career goals; which is best undertaken at the time of performance appraisal. 7. Charting ones progress A person, who is highly ambitious and also practical, will always keep planning of better and better career opportunities. Process of formulating careers strategy Strengths SWOT opportunities

Long-range personal goals Consistency testing Development of strategic career Alternatives With focus on Short range career objectives and Action plans Monitoring progress Implementation of career plan Charting ones progress contingency plans

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With focus on

59. Define MD. Explain about the Manager Development process. MANAGER DEVELOPMENT

Manager and organisation development is a twin concept Manager development refers to the development of managers as individual. Organizational development refers to development of groups of individuals or the development of organisation as a whole

MANAGER DEVELOPMENT: It refers to an all-round development in the personality of a manager; that enables the manager to perform a wide variety of managerial jobs, in a most effective manner. The emphasis is laid on increasing the human and conceptual skills of managerial personnel. Significance of Managerial Development: Managers while taking work out of subordinates motive and lead them. In fact, managers personality and caliber leaves a direct and permanent impression on the behavior and performance of subordinates. It leads to the development of the subordinate staff-ensuring more of success for the organisation. Manager Development Process

Present Job Performance appraisal

Next Job

Future Job

Identification of development Needs

performance appraisal (PA)

Formulation of Development Programmes

development programmes to cope with changing technology and other challenging environmental factors

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1. Present Job: A managers performance on his present job is evaluated, through a systematic performance appraisal process. From the findings of PA, the needs for managerial development are identified and suitable development programmes are designed and put into practice.

2.Next Job In the view of the competence of managers as revealed by the progress, a manager proves at development programmes; the next suitable job is assigned to him. Again, there is performance appraisal on the next job. 3. Future Job Progressive organizations always prepare managers to take up future jobs of a challenging naturecreated by future technology and other environment factors like competition, social values, governments likely policies and so on. Approach to (or methods of) Manager Development i. Experience it is a trial and error one i.e he commits mistakes and later on improves on his subsequent performance. ii. Coaching a new manager is taught the art of managing by a senior experienced manager. iii. Understudy a junior managers (under study) under the instructions and guidance of some senior manager with the intention that after the period of training, the junior manager will take over the position of the senior manager. iv. Position rotation- one manager is rotated among several managerial positions at the horizontal-level. (in different depts.) v. Special projects- a special project might be assigned to a manager which is a piece of task falling outside the scope of his normal functions. vi. Placement on committees when a manager is placed on a committee as a special member of that committee; he not only develops conversational powers, but also comes to learn interacting with others. vii. Special courses- several progressive organizations send their selected-executives to management institutes, for undertaking a study of any of the specialized management courses. viii. Case study (or problem solving method)- this method of executive development aims at the development of decision-making skills among managers. Here, a manager is provided with a case from a real-life organisation situation; pertaining to a specific managerial area e.g motivation of employees, deteriorating Human Relations etc. ix. Role playing an artificial managerial situation is created, in contemplation of some real-life situation. One sample, attending to employee grievances, handling compliant made by a customer x. Sensitivity-training (or T-group training) there is a group of 10 to 15 participants called the Tgroup. Maintaining emotional stability through appreciating viewpoints of others and tolerating criticism of ones own valuable ideas, by other members of the group. xi. Brain storming when a problem is posed before trainees for giving a solution to it; there is a sort of storm in their minds and each one under brain-in-storm, offers his own ideas for solving the problem. 60. Define OD. Explain process of OD. ORGANISATION DEVELOPMENT

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OD is an effort planned, organisation-wide, and managed from the top, to increase the organisation effectiveness and health through planned intervention in the organizations processes, using behaviour science knowledge. Features of OD: 1. Long-term approach OD is basically a long-term approach to increasing organisation efficiency as in the shortrun it is not much possible to bring about improvements, specially in organizational culture and value system. 2. Human-behaviour oriented OD aim at modifying human behaviour, without which technology innovations have a limited meaning 3. Comprehensive OD is broad-based. It is a comprehensive strategy intended to change the environment of the whole organisation, rather than concentrating only on a particular group of persons or particular types of job. 4. Systems oriented OD utilizes the open-adaptive systems approach. It believes that no part of the organisation can be changed without affecting other parts. 5. Research-based OD involves data collection, evaluation and then decision-making. Most of the OD interventions are research-based. 6. Dynamic process OD recognizes that organizational objectives change because of the dynamic nature of the economy. Hence, means for attaining objectives should be also change. 7. Normative re-educative strategy OD Programmes call for changes in managerial leadership style. Process of OD Evaluation and feedback step 7

Implementation of OD

step 6

Planning OD intervention

step 5

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Diagnosis of the problem Data feedback Collection of data Initial consultation with OD expert

step 4 step 3 step 2 step 1

1. Initial consultation with OD expert Whenever an enterprise experiences a problem like e.g low morale, customer complaints, declining market share etc. the CEO may contact on OD expert to discuss the situation. 2. Collection of data The OD consultant collects information through-personal interviews, questionnaires, personal observations etc. Collection of data must relate to nature of the problem. 3. Data feedback The work groups go through the data and locate the points of disagreement and discuss such points with the OD expert. 4.Diagnosis of the problem Diagnosis involves understanding the causes of the problem. Experience and judgment of the OD expert, at this stage, may help him in accurately diagnosing the real causes leading to the end result problem. 5. Planning OD intervention technique The OD expert should determine a strategy having the highest probability of success. 6. Implementation of OD intervention Most of the OD programmes begin with training to people, in the light of the proposed organizational change. Gradually intervention may be attempted at all the three levels individual, group and organisation. 7. Evaluation and feedback Evaluation means judging the success of the OD programme so that suitable action may be taken to modify further programmes. 61. Explain about Techniques of OD. Techniques of OD/ OD interventions 1. Sensitivity Training ( T-group training) 2. Management By Objectives (MBO) 3. Process consultation 4. Likerts 4-system management (leadership) 5. Survey feedback

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According to French and Bell, survey feedback consists of 5 steps: Step 1.Organisation members at the top of the hierarchy are involved in preliminary planning Step 2. Data are collected from all organizational members. Step 3. Date are feedback to the top executive team and then down through the hierarchy in functional teams. Step 4. Each superior preside at a meeting with his/her subordinates in which data are discussed and plans are made for constructive changes. Step 5. Most feedback meeting includes a consultant who has helped prepare the superior for the meeting and who serves as a resource person. 6. Team building One type of group is a family group, consisting of a manager and his/her subordinates. A second type of group is a special group formed to solve a specific problem. The essence of team building is to increase trust among members because people work better together, when there is open and honest sharing about problems and difficulties. UNIT IV DIRECTING

62. Define Directing. Explain the Process of Directing.

Direction is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively to the attainment of enterprise objectives. Process of Directing 1. Issuing orders and instructions to subordinates 2. Continuous guidance and supervision of employees to ensure that they carry out their assignments in the proper manner 3. Motivating subordinates to work efficiently for the achievement of organizational objectives 4. Communicating with employees to understand their needs, aspirations, problems and suggestions 5. Maintaining discipline and rewarding those who perform efficiently and 6. Providing leadership to the subordinates so that they work with real and confidence. Planning Directing as a bridge Principles of Directing 1. Harmony of objectives The management should bring about co-ordination of individual objectives of the subordinates working in the organisation with those the enterprise. 2. Maximum individual contribution It should be in a position to inspire the employees to contribute their maximum for the achievement of the enterprise objectives. 3. Unity of command A subordinate should at a time receive orders from and be accountable to only one superior. 4. Direct supervision Personal supervision improves the motivation and morale of subordinates and improves their loyalty to the organisation. 5. Flow of information Effective direction is largely dependent upon the flow of information and the efficiency with which it is disseminated among the subordinates. 6. Appropriate Techniques Performance

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The techniques of direction should be efficient and appropriate to the people, the tasks and the situation. 7. Comprehension The manager should take action to ensure that orders and instructions are well understood and properly carried out by the subordinates. 8. Strategic use of informal organisation Managers should accept and use the informal organisation to supplement and support the formal channels of communication 9. Effectove Leadership An effective leader guides and counsels his subordinates on work problems as well as on their personal problems. A good leader can win the trust and confidence of subordinates to make direction effective. 63. Explain about the Elements of Directing. ELEMENTS OF DIRECTING The directing function includes the following,

1. Supervision
2. Motivation

motivation

3. Leadership
4. Communication.

supervision

directing

leadership

Communication

1. SUPERVISION SPAN OF SUPERVISION OR SPAN OF CONTROL OR SPAN OF AUTHORITY It refers to the number of subordinates a manager can effectively manage. If the number of subordinates is too large, effective control may become difficult control over them. The concept of span of a management has a significant influence on the overall performance of an enterprise and hence modern management experts have recognized its importance. Graicunas Theory of Span of Management V.A Graicunas, a French Management consultant, has made an important contribution to the span of management theory. He has identified three types of subordinate-superior relationship. I. Direct single relationships Direct single relationships are created when an executive is directly and individually related to his immediate subordinates. A ---- Superior

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Y ---- Subordinates

1.Relationship between A and X -----1 2.Relationship between A and Y----- 1 2 meetings Depending on the needs of a situation, A might consult with X or Y II. Direct group relationships If an executive speaks to each possible combination of subordinates under him, it is called direct group relationship. A ---- Superior X (XY) Y ---- Subordinates (YX)

1.Relationship between A and XY -----1 2.Relationship between A and YX----- 1 2 meetings A might consult with X, while Y is in attendance. Or, he might consult with Y, with X in attendance. III. Cross relationships. It comes into existence when subordinates find it necessary to consult with one another. In the example given above, two cross relationships can take place between X and Y viz., Y with X and X and Y. A ---- Superior X (XY) Y ---- Subordinates (YX)

1.Relationship between A and XY -----1 2.Relationship between A and YX----- 1 2 meetings I+II+III = 2+2+2= 6 Meetings The formula: Graicunas has prescribed the following formula to ascertain the number of subordinatesuperior relationships. 2n Number of relationships = n +n-1 n = number of subordinates 2 graicunass formula showing the number of Relationships Corresponding to the Number of Subordinates. No.of subordinates No.of Relationships

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1 2 3 4 5 6 7 8 9 10 For example If we take a superior supervises 5 subordinates. N =5 25 Number of relationships = 5 + 5-1 2 Number of relationships = 5 16 + 4 , = 5 x20

1 6 18 44 100 222 490 1080 2376 5210

n = number of subordinates

= 100 Relationships Factors determining Span of Management 1. Capacity of supervision 2. Time for supervision 3. Nature of work 4. Nature of planning 5. Capacity of subordinates 6. Degree of decentralization 7. Staff assistance 8. Controlling Techniques 9. Communication Technique 64. Define Motivation. Explain the process of Motivation. MOTIVATION The basic objective of a manager is to secure from his subordinates an optimum performance toward accomplishment of the predetermined objectives. Performance = Ability x Effort x Opportunity. Motives may be defined as drives or impulses without an individual. It implies something within a person which prompts him into action. Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar forces that induce an individual or a group of people to work. koontz and ODonnell. Motivation means a process of stimulating people to action to accomplish goals. William G.Scott Process of Motivation Individual needs (or) Unfulfilled needs incentives (or) environment incentives And disincentives action (or) wants (Tension)

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Best attainment Of common Objectives (Or ) ----------------------------Awareness Of Needs search of action Discovery of new need fulfillment of need non-fulfillment of need Revaluation and new action

Motivation (or) Fulfillment of Unfulfilled needs

------------------------------------------Elements of Motivation Individual Characteristics The individual The job The work situation

Job Characteristics Work Situation Characteristics Employees Motivation

63. Explain the nature & Characteristics of Motivation. Nature / characteristics of Motivation 1.Psychological concept Even workers with extraordinary abilities will not be able to perform as desired until they are effectively motivated. Effective performance on the part of workers can be said to be the result of their abilities backed by proper motivation. Performance = abilities x opportunity x Motivation 2. Motivational is total, not piecemeal A worker cannot be motivated in parts. For successful motivation, he should be treated as an indivisible unit, taking into account all his urges and aspirations. 3. Motivation is determined by human needs Human needs are of various kinds and may be classified in many ways. I. Basic, Primary or Physiological Needs: it needs food, water, and shelter, which are vital to its existence. II. Secondary, Social, Psychological or Acquired Needs: Besides basis needs. Secondary needs are often vague because they are the needs of the mind and spirit, rather than of the body. 4.Motivation may be financial or non-financial

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Financial motivation seeks to satisfy physiological and security needs. It is by way of wages, allowance, bonus, etc. Non-financial motivation which seeks to satisfy social, recognition needs may be by way of appreciation for the work done, higher status etc. INCENTIVES

FINANCIAL INCENTIVES

NON-FINANCIAL INCENTIVES

A) INDIVIDUAL B) COLLECTIVE 1.Various Premium importance 2.plan by Taylor, spirit halsey, rowan, etc

B) COLLECTIVE C) INSTITUTIONAL 1.equal wage rates 1.human Relation 2.wage increased based 2.participation on ability 3.competition 3.pension plan 4.informal groups 4.production bonus 5.discipline 5.profit-sharing 6.co-partnership 1.Status

A) INDIVIDUAL 1.social 2.team

2.promotion 3.responsbility 3.communication 4.plesent&interesting 4.building morale Job

5.recongnition of work 6.Job security

I. Individual Incentives: These incentives motivate people on an individual basis, i.e., only certain individuals may get them e.g., giving promotion to certain individual. ii. Collective Incentives: Employees perform their duties in groups and the management tries to motivate them in groups e.g. encouraging team spirit among employees. ii. Institutional Incentives These incentives relate to conducive and congenial atmosphere of the organisation. It includes better human relations in industry, workers participation in management. 5. Motivation is constant process Human needs are infinite. Man is a wanting animal as soon as one of his needs is satisfied, another appears in its place.

64. Explain about Maslows Need Hierarchy Theories .Maslows Need Hierarchy Theories A.H.Maslow, an eminent American psychologist, has advanced a comprehensive structure of human needs known as Maslows Need hierarchy.

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 1. 2. 3. 4. 5.

Maslows theory which is based on the needs of the people states that an individual is motivated to satisfy certain unsatisfied needs. His theory is based on certain assumptions. They are: Physiological (or basic or survival) needs Security (or safety) needs Social (or affiliation) needs Ego (or esteem) needs Self-realization (or self-actualization) needs

Following is a brief account of the above-mentioned human needs

SELF ----------------------------------5 ACTUALIZATION NEEDS -----------------------4 ESTEEM (EGO) NEEDS SOCIAL NEEDS SAFETY NEEDS PHYSIOLOGICAL NEEDS -----------------3 -----------2 ------1

1.Physiological Needs: Physiological needs include, needs for food, drink, clothing, shelter, rest and other similar basic requirements. Once an individual is satisfied reasonably well these needs, he thinks in terms of higher level needs 2. Safety needs These are the needs for protection against danger, threat, deprivation and the need for job security. Economic security needs: a man wants economic security i.e fulfillment of basic needs. Physical security needs: these needs include protection against- fire, accidents and other types of physical dangers. Social security needs: these include a need for state of illness or permanent incapacity to work caused by some disablement. 3. Social (or affiliation) needs These needs include those of belonging, association, acceptance, friendship and love. Social needs become important for all those who live in societies and work in the company of others. 4. Ego (or esteem) needs These needs include those of self-confidence, independence, achievement, status and recognition. These needs dominate only when an individual is reasonably satisfied with the first three needs. 5. Self-Actualization (self-fulfillment) Needs In simple words, these needs reflect a desire to become what one is capable of becoming

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These needs are concerned with the need to realize ones capacities and potentialities by achieving specific goals. He accepts such work which is challenging and creative and also provides opportunities for selfdevelopment Merits and Demerits of Maslows theory Merits: Comprehensive It possibly covers all human needs from birth till demise. Logical this system arranges human needs into a hierarchical manner which is quite logical. Guide to management- for launching motivational schemes. Simple to comprehend- not only students but also a layman, this is quite understandable. Demerits: 1. It is not universal it is not universally applicable to all individual i.e labour, professionals etc. 2. Not comprehensive excludes several important human needs such as need for mental peace, need for happiness in life, personal needs like for piety (devotion to God) 3. Global differences the same human needs have different implication for different people in various countries (poor or rich). 4. An element of overlapping human needs cannot be placed in watertight compartments things maslow has done. 5. Simultaneous operation of needs- this theory does not recognize the simultaneous emergence of two or more needs, at the same time. 65. Explain about Herzbergs Two-Factor Theory of Motivation Herzbergs Two-Factor Theory of Motivation Frederick Herzbergs two factor theory motivation is based on his research conducted among 200 accountants and engineers of Pittsburgh area, U.S.A who were asked the following questions: i. What is about your job that you like? ii. What is about your job that you dislike? Accordingly, he put the responses into two categories o Factors that present dissatisfaction, known as Hygiene factor o Factors that have positive effect on job satisfaction, known as motivators. a) Hygiene factors (or Maintenance factors or dissatisfiers) Hygiene (medical term) it means taking steps to maintain ones health but not necessarily improve it. For example: brushing teeth regularly helps prevent dental diseases but not improve the condition of teeth. Herzberg mentions the following factors as hygiene factors; Salary Job security Working conditions Company policy and administration Technical supervision Interpersonal relationship with peers Interpersonal relationship with supervisors, subordinates. Status Personal life b) Motivational Factors or Satisfiers

1. 2. 3. 4.

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An increase in these factors will motivate people while a decrease in these factors will have no effect on motivation. Herzberg mentions the following factors as motivators: Achievement Recognition Responsibility Advancement Opportunities for growth Work itself Merits of Herzbergs Theory: 1. Money is not a motivator. It is rather a hygiene factor 2. Dissatisfiers are an eye opener to management 3. Management must provide for motivators within the job-contents. Demerits 1. This Theory is based on a small sample 2. There is an element of overlapping. Motivational factors Self-actualization -Work itself Esteem -achievements -Growth prospects -advancement -responsibility -Recognition -status

Social Safety Physiological -Pay -job security -Working Conditions

-relations With superiors, Subordinates, Peers.

Maintenance factors 66. Explain about the McGregors Theory X and Theory Y. Apparently, Theory X contains a set of negative assumptions about human behaviour and Theory Y contains a set of positive assumptions about human behaviour. Theory Y can be said to be positive and optimistic whereas Theory X is negative and pessimistic. A comparative account of assumptions contained in Theory X and Theory Y Theory X Theory Y 1.People have a dislike for work and like 1. People like work, in fact, to avoid work, if they can do so. expenditure of physical and mental efforts involved in work is as natural as involved in play or rest. 2. People wish to avoid responsibility 2. People like not only to accept responsibility but also seek responsibility 3. People prefer to be directed by or led 3. People prefer to lead and exercise by others. self-direction and self control 4.People lack creativity and 4. People possess creativity and imagination.(in fact, creativity is imagination (creativity is widely

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distributed among population) 5. Commitment to objectives is a function of a rewards associated with their achievement 6. People are not much self-centred and are interested in organizational goals. 7. People have limited potential of 7. People have unlimited potential of capabilities. capabilities. Under modern industrial conditions, potential of men is only partially utilized. 67. Explain about Z theory. Theory Z The Z theory, proposed by William Ouchi, is an integrated motivational model, based on the Japanese management practices. It provides an example of how management can transform the organizational environment and bring about close, co-operative and trusting relationships between workers, managers and other groups. Features of Z theory: 1. Life-time employment 2. Restricted promotion (horizontal mobility possible) 3. Greater workers involvements (short-term motivational device) 4. Participative decision-making 5. Informal control system 6. Stable and cohesive work environment 68. Explain about the V.H.Vrooms Expectancy Theory: .V.H.Vrooms Expectancy Theory: People must believe that by working, they will receive rewards that are important to them. Peoples actions are based on their expectations as well as their needs. Unless there is positive expectation of a reward that will satisfy a need, an individual will not take action. Assumption: Individuals make conscious decisions in a work-situation to behave in certain ways and not any others. Outcomes desired by different individuals are determined by their value-system. Different individuals have different expectations as regards the amount of effort which is required to achieve particular outcomes. There are also different expectations among them as regards the probability of success in achieving outcomes. The key elements: Effort: A person will be motivated to expend effort if he believes that there is a reasonable likelihood that his effort will produce the desired outcome, and that such outcome will result in extrinsic or intrinsic rewards to satisfy his felt need. Performance: In a situation where only improved team work can accomplish a task, even extraordinary effort on the part of a lone individual may not be of any avail and it is more likely to go unrewarded.

narrowly distributed among population) 5. Commitment to objectives is a function of punishments associated with their non-achievement 6. People are self-centred and indifferent to organizational goals.

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Outcome: It signifies the desired result of ones effort. It may lead to extrinsic rewards such as wages, appreciation and recognition by others, or intrinsic rewards, such as, increased responsibility, more enjoyable and /or challenging work. Importance of Motivation: For performing any job, two important things are necessary, viz., will to work and ability to work. The importance of motivations lies in converting this ability to work into the will to work. Without willingness, ability to work is of no use. Performance depends on ability and willingness and in turn, willingness depends on motivation. Performance = Ability x Motivation 1. Maximum utilization of factors of production Motivation makes workers work sincerely for completing the task assigned to them. Effective utilization of the enterprise resources, viz., human, physical and financial, to the maximum. 2. Reduced employee turnover and absenteeism Attractive motivational schemes bring about satisfaction to employees and by this, their commitment organisation increases and they are not easily tempted by offers from competitors. 3. Increase in efficiency and output As motivation brings about satisfaction to employees, they work wholeheartedly. Because of this, there will be an increase in their efficiency and output. 4. Sense of belonging A proper system of motivational schemes promotes closer identification between enterprise and workers. This results in better relations between management and workers. 5. Easy availability of right personnel Because of the proper motivational schemes, the enterprise is in a position to attract highly talented and competent persons from external sources to serve in its organisation. 6. Best attainment of common objectives Motivated employees put in their best efforts towards the attainment of common objectives of the enterprise. 7. Stability of work force Motivation, directly and indirectly, results in the stability of work force, necessitating only minimum inevitable labour-turnover. 8. Minimum resistance to change Motivated employees better appreciate the management viewpoint as to the introduction of organizational changes. 69. Define Leadership. Explain about Importance of Leadership. Definition: Leadership is the ability of a manager to induce subordinates (followers) to work with confidence and zeal. - Koontz and ODonnell A leader is one who guides and directs other people. A leader gives the efforts of his followers a direction and purpose by influencing their behaviour. - Louis A. Allen. Importance of (or function) of leadership: a) Primary significance of leadership:

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The primary significance of leadership lies in leading people to give their superb performance towards the attainment of common objectives- through zeal, enthusiasm and dedication. Performance inspired by Leadership (35% to 40%) Performance caused Out of Org. and other Pressures (60% to65%)

b) Others points of significance 1. Leading people to give their superb performance towards the attainment of common objectives. 2. Achieving co-operation through team-work 3. Emphasizing on unity of objectives 4. Arousing self-confidence through direction of followers talents. 5. Encouraging initiative 6. Best utilization of manpower through motivation 7. Developing good human relations 8. Building and raising morale 9. Overcoming resistance to changes

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Point of Distinction 1. Concept

Managership

Leadership

2. Applicability 3. Authority Vs power

Managership is a wider concept Leadership is a narrow includes leadership i.e every concept as every leader may manager is leader. or may not be a manager. E.g Gandhiji was a leader but not a manager. Managership is applicable to Leadership is found in both only formal groups. formal and informal groups.

4. Context

5. Appeal 6. Approach 7. Organisation

A manager operates on the A leader operates basically, basis of his formal authority. by virtue of, his power possessed through his chairman and personal qualities Managership is more significant Leadership is specially to business concern. required in politically organization. A manager makes a formal A leader makes an appeal to subordinates. emotional appeal to followers. A manager is a boss and pusher A leader is a friend and a of people puller of his followers A manager deals with an A leader deals primarily organisation which is both- with human organization. technical and human A manager is primarily concerned with shaping or moulding behavior of subordinates towards the attainment of common objectives. A leader is concerned with inspiring followers through creating zeal and enthusiasm in them towards the attainment of common goal.

8. Role

70. Explain about Leadership Styles. TYPES OF LEADER Depending on the attitude of a leader towards his followers and their work, the following major styles of leadership could be identified. 1. 2. 3. 4. Autocratic leadership style Democratic leadership style Laissez-faire or free-rein leadership style Paternalistic leadership style

1. Autocratic leadership style:

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An autocratic leader is one who takes all the decisions himself without consulting his subordinates. He decides policies for the group without consulting the group and also asks the group to take steps as per policies determined by him An autocratic leader may be of two types. i. Strict Autocrat: a strict autocrat is one who relies on negative influences and gives order which must be obeyed by the subordinates without question. (Imposing penalty, criticizing subordinates) ii. Benevolent autocrat: a benevolent autocrat is one who uses a positive motivation style. He disperses rewards to his group.( higher productivity).

Merits: 1. This style leads to quick-decision making. 2. It suitable at lower levels in an organization 3. It is suitable in emergency situation 4. It may provide strong leadership to the group Demerits 1. It leads to development of frustration in subordinates 2. Subordinates shirk work and avoid responsibility 3. This phenomenon retards human development 4. It may yield fruit but only in the short-run. 2.Democratic or Participative Leadership Style. A democratic leader is one who takes decisions in consultation with his subordinates. Decentralization of authority, participative planning, two-way communication, etc., is the main features of democratic leadership. This style of leadership is usually adopted by the chief executive of a business enterprise while discussing major organizational objective, strategies and policies with departmental managers. Merits: 1. It invites commitment to decisions on the part of subordinates. 2. Potential of subordinates is utilize under this style. 3. It helps to increase-motivation, morale and job-satisfaction for subordinates. 4. It leads to the emergence of good human relation, in the enterprise. Demerits: 1. There is usually delayed decision-making 2. It may disclose as a sign of managerial incompetence 3. In the long run, it leads to loss of leaders control over the subordinates. 4. There is usually witnessed, the phenomenon of passing the buck. 3. Laissez faire or free-rein style: The leader leaves it to the subordinates to decide and control themselves believing that they are competent and motivated. He does not interfere in the activities of his subordinates. He believes that people will perform better if they are left free to make and enforce their own decisions. Using Fields: sports, educational institution Merits: 1. It leads to a highest sense of job-satisfaction for subordinates 2. It encourages the fullest exploitation of potential of subordinates. 3. It is a way or technique of training and developing subordinates for higher managerial position. Demerits: 1. It minimizes the role of the leader 2. Performance of subordinates is rather poor loss of control of leader

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3. Subordinates may work at cross-purpose 4. It is not suitable when subordinates are uneducated. 4. Paternalistic leadership style: A paternalistic leadership is characterized primarily by loyalty of followers in a warm and cohesive setting. The leader is much concerned with the well being of his followers and comes to their rescue ever so often. The leader plays a father-like role towards his followers and takes care of their problems, the way a father does for his family. He believes in the philosophy work hard and I will take care of you. It is one of the fundamental characteristics of the Japanese management system. Merits: 1. Subordinates are loyal to the leader and the organisation both (because of a father-like) 2. There are good human relations in the organisation 3. It implies a balanced leadership approach. Demerits: 1. Subordinates might take undue advantage of the leniency of the leader 2. Leader might be more involved in personal problems of subordinates than organizational issues. 3. It is unsuitable when there is a lack of mutual trust between the leader and the followers. 71. Explain about the THEORIES OF LEADERSHIP 1. Personality theories 2. Behavioral theories 3. Situational theories 1.Personality theories of leadership: Some important theories of leadership under this category are: i. Great man theory ii. Trait theory iii. Role theory i. Great man theory: Some people believe that leaders are born and not made. It assumes that leadership qualities are in-born or god-given Example: great leaders like Mahatma Gandhi, Churchill, and Nelson Mandela. (Ambani brothers) It was presumed that he had inherited the qualities of his father i.e leadership qualities were carried in the genes. ii. Trait Theory According to this theory, successful leadership depends on certain traits or qualities possessed by a leader some of such traits are inborn and some traits could be acquired by a person by education, training and experience. Various leadership traits: General qualities, technical qualities, managerial qualities and psychological qualities. iii. Role Theory: Role theory is a refinement of trait theory. According to role theory, a leaders traits are reflected in his roles A leader stimulates followers superb performance, by inspiring them through his charisma and outstanding personal traits. Example:M.G.R++++ i. Stimulate ii. Representative- outside world iii. Integrator personal objective with organizational objectives

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iv. Co-coordinator- like music director v. Fatherly-figure as a friend and guider vi. examplar outstanding devotion, courage and integrity vii. Expert the techniques of work performance viii. Philosopher- acts as an ideologist for his followers. 2. Behaviour theories: i. Rensis Likerts 4- system management ii. Managerial grid or leadership grid i. Rensis Likerts 4- system management Likert has postulated four systems of management. System 1: Exploitative-authoritative It is highly autocratic Decision-making is centralized in the hands of the leader. There is downward communication system only i.e from the leader to the subordinates. System 2: Benevolent authoritative The leader is a bit lenient autocrat. He solicits some ideas and opinions from subordinates. He motivates subordinates with some rewards and some fears and punishments. He permits some upward communication also ie from subordinates to the leader. System 3: consultive He makes constructive use of subordinates ideas and opinions. The system of motivation consists of rewards with occasional punishment. Communication system is two-way i.e downwards and upwards. System 4: participative-group or democratic: He has complete confidence and trust in subordinates, in all matters. He always gets ideas of subordinates and constructively uses them. There is much emphasis on communication downwards and upwards The leader always encourages group approach to decision making, throughout the organisation. In likerts view, system 4 is the best; system 1, is the poorest. ii. Managerial grid / Leadership style: Intensive research studies undertaken regarding the behavior of leaders, at the Ohio-State University and the University of Michigan (U.S.A) revealed that there were two broad dimensions of leadership behaviour viz. o Initiating structure or task oriented behaviour: the leader closely supervises subordinates to ensure that the task is performed in a satisfactory manner and behaves like and autocratic leader. o Consideration or employee-oriented behaviour: the leader adopts an attitude of friendship and trust towards subordinates and behaves like a democratic leader. Theory of leadership is Managerial grid concept developed by Robert Blake and Jane Mouton. It identifies various alternative combinations of both basic styles i.e., concern for production and concern for people. These combinations are put in the horizontal and vertical dimensions of the grid, have a scale from 1 to 9. Thus the grid has 81 possible combinations.

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(1,9)

(9,9)

9 Con7 cern 6 for 5 Peo 3 ple 2 1 4 8

(5,5)

(1,1) 1

(9,1) 2 3 4 5 6 7 8 9 Concern for production

Note: in this gird, concern for production is shown on horizontal axis, and concern for people on vertical axis. Five major leadership behaviour styles: a) Impoverished leadership style (1,1): Managers have very little concern for either people or production They act as messengers- communicating information from subordinate to subordinate. This style of leadership behaviour is also called laissez-fair style as everything is left to situation. b) Team leadership style (9,9) The leader has highest dedication to both people and production. The leader tries mesh production needs with needs of individual. Research found that experienced managers preferred, (9,9) style of leadership, regardless of variations in situations. c) Middle of the road leadership style (5,5) The leader has little concern for production and maximum concern for people. The philosophy behind this style is that thoughtful attention to the needs of people leads a friendly and comfortable organizational atmosphere and work tempo. d) Task leadership style (9,1) The leader is concerned only with development of efficient production operations with little or no concern for people. The leader behaves as an autocrat. The philosophy behind this approach is that efficiency results from arranging work in such a way that human elements have little effect. 3. Situational (or contingency) theories of leadership There are 4 factors which affect leadership style and also determine leaders effectiveness i. Leader his traits

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Followers their knowledge, experience and involvement in work Organisation task and technology forces Situation i.e., internal and external environmental factors. Under the situational theories, we basically consider the following three theories: a) Leader continuum theory It is situational and contingent nature. It suggests a variety of 7 leadership styles, ranging from the one which is highly boss centred to the one which is lightly subordinate centered.

ii. iii. iv.

Freedom area for the leader

Freedom area for followers

2 3 4 5 6 7 Leadership continuum 1. Manager makes decisions (this is fully boss-centred or autocratic style) 2. Manager sells the decisions transferring the decisions to subordinates 3. Manager takes decisions and just responds to question from subordinates or followers. 4. Manager takes a tentative decision subject to change- feedback from subordinates 5. Manager presents problem gets suggestion of subordinates and then take a decisions. 6. Manager defines limits within which followers take decisions 7. Manager and followers jointly make decisions. Point: No one style is the best. It all depends on the situation as to which style will yield best overall results for the organisation. b) Fielders contingency theory: By combining the trait and situational approach. There is nothing extra-ordinary in Fielders contingency approach. Experience managers themselves realize that style of leadership depends on the situation. c) Path-Goal theory The central idea behind path-goal theory is that most effective leaders are those who help subordinates to achieve both-enterprise goals and their personal goals by defining task roles clearly and by removing obstacles to performance. This is especially valid for upper level positions, where the behaviour of leaders can have considerable influence on designing an environment for performance. Leadership Roles: Group task roles Initiator-contributor Group building maintenance roles Encourager and Individual roles. Aggressor

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Information seeker Opinion seeker Information giver Opinion giver Elaborator Coordinator Orienter Evaluator-critic Energizer Procedural technician Recorder

Harmoniser Compromiser Gate keeper and expediter Standard setter and ego ideal Group observer/ commentator Follower

Blocker Recognition seeker Self-confessor Playboy Dominator Help seeker Special interest pleader

72. Explain about the Functions of a leader. Function of a leader: Leadership functions

a) Primary 1.executive 2.planner 3.policy maker 4.expert 5.external group representative 6.controller of internal relations 7.purveyor of rewards and punishments 8.arbitrator and mediator

b) Accessory 1.expemplar 2.symbol of the group 3.substitute for individual responsibility 4.ideologist 5.father figure 6.scapegoat

73. Define Communication. Explain the process of communication. Communication is the process of passing information and understanding from one person to another. - Keith Davis Communication is an exchange of facts, ideas, opinions or emotions by two or more persons. Newman and Summer. Process of Communication: 1. Sender the person who wishes to speak out or send or transmit a written message. 2. Message- the subject matter of communication (opinion, order, appeal, suggestions etc.) 3. Encoding the act of putting the message is suitable words, charts or other symbols of transmission. 4. Transmission -the act of saying, sending or issuing the message. 5. Medium-the medium (channel) used to transmit the message. 6. Receiver-the person for whom the message is sent. 7. Decoding- the act of understanding the message exactly as it has been sent. 8. Feedback (response)-the reaction, reply or response which the receiver of the message sends to the sender. Sender message Feedback encoding transmission medium

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Decoding 74. Explain about Types of Communication. Types of Communication

receiver

On the basis of relations Formal informal downward

On the basis of flow direction upward sideward

According to expression Oral written gesture

I. On the basis of relation: 1. Formal communication: It follows the course laid down in the organisation structure of the enterprise. Members of the enterprise are supposed to communicate with each other strictly as per the channels laid down in the structure. Generally, orders, instructions, decisions of the superior officer, etc. are communicated through this channel

2.Informal Communication (or grapevine communication) This communication has no formal manner of routing. It might spread from any person to any person, in any manner and in any direction, like the structuring of a grapevine. Jumping of communication channels takes place because of informal relations between members of the organisation. It may be conveyed by a gesture, nod, smile etc.

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A comparison between formal and informal communications

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III. According to Expression Basis of Formal communications Distinction 1. Speed It is slow. The rate of slowness of this type of communication depends on the length of the scalar chain. It is not suitable in emergency situations. 2. Authenticity 3. Nature 4. Planning It is most authentic, as it takes place via the official scalar it chain. It is impersonal and official. It is a source of tension to individuals in, many cases. It is preplanned. It helps people understand their jobs and is the basis of smooth. no communication; no functioning of organisation. Feedback to communication may or may not be there. In fact, people at lower levels might not be able to express themselves freely on many organizational issues. It is controllable by management. It could be subject to modification, subsequently.

Informal communications It is very fast. It spreads like an epidemic as it might proceed from any person to any person, in any manner. It is suitable for transmitting useful information, in emergency situations. It is least authentic as it spreads in a grapevine manner. (Rumors) It is personal and unofficial. It relieves individual of tension, in many cases. It is wholly unplanned. It is contingent in nature.

5. Feedback

Immediate feedback is there. People can freely express their opinions about informal communication, without fear or favour. It is wholly uncontrollable. Not possible to modify as the source of communication may not be known at all.

6. Control

7. Distortion

Distortions in communications There are distortions in are not possible, especially informal communication when it is in writing. according to the whims and prejudices of individuals. 8. Record-keeping It is mostly written. Records of It is mostly oral. No records communication could be easily of it could be kept. kept, for future reference. 9. Fixation of As the source of It is not easily traceable. responsibility communication is known Responsibility for responsibility for communication could not be communication could be easily fixed on any individual. fixed on individual. 10. Resistance It being official, usually meets Question of resistance to this with resistance, on the part of type communication does not employees. arise, as it is social and personal in nature. 11. Secrecy of Confidential information does Confidential information confidential matters not leak. It could be kept could not be confidential like restricted. an epidemic. 12. Rigidity or It is based on the plans, rules It is quite flexible and flexibility and policies of the organisation, depends on personal likes and which are quite fixed. dislikes. (ever changing) 13. Mutual support. It does not support informal It supports the formal communication communication.

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1. Oral communications or verbal communication: It is a way of transmitting messages etc. through words spoken by the sender of communication to the recipient of it. Communication is made direct face to face or through telephone or intercom system. Modes: o Communicating through a face-to-face contact (sender-recipient) o Communicating through mechanical devices (speaker, telephone, intercom) o Sending oral messages through peons, agents, servants o Speaking to people through delivering lectures. o An exchange of views at meeting, conferences, etc. o Holding group discussions. 2. Written communication It is way of transmitting messages etc. through words reproduced in writing by the sender of communication for the information of the recipient of it. It includes statements, circulars, letters, reports, memos, manuals etc. Modes: o Sending letters by the sender to the recipient o Communicating through publications in house journal, magazines, bulletins et. o Communicating messages, news, etc. through notices displayed on notice boards. 3. Gesture communication Communication through gestures is often used as a means to make the verbal or written communications more effective. One has only attend a meeting addressed by a trade union leader to see how he used the different gestures wave of hand pouting of lips, movement of eyes---to make his point. Gestures can be used to express ones feelings, ideas or sentiments. For a subordinate in an enterprise, a handshake with the boss is enough to turn his head for days, if not month. III. On the basis of Direction 1.downward communication It moves downwards in an organisaiton, from the top management to middle and lower level managements traveling via various links in the scalar chain. The communication flows from the superiors to the subordinates. Essentially, the purpose here is to communicate the policies, procedures, programmes, orders, instructions, etc. to subordinates. Issuance of orders and instructions is the heart of downward communication i..e following suggestions:-It must be complete, in all respect -It must be issued in clear language -It must be timely -It must be rational -It must be capable of implementation -It must preferably be in writing. -It must be brief and to the point.

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-----Top

-Orders -Instruction -Policies -Procedures -Programmes. ----Lower

2. Upward communication it proceeds upwards in an organisation from the lower level management to middle and upper levels management, traveling via various links, in the scalar chains. This type of formal communication is really a feedback to downward communication. It includes reports, suggestions, reactions of workers, proposals, inquiries, complaints, grievances, etc. Following forms:-Reports by subordinates, to superiors on work place. -Grievances, problems or difficulties of subordinates forwarded to superiors, at appropriate levels. -Suggestions and ideas of subordinates to upper management, for kind considerations and appropriate implementation. -Clarifications sought by subordinates form superiors as to the orders and instructions issued by the latter i.e superiors.

-----Top

-Suggestions -Grievances -Reports -Proposals -Complaints -Ideas. ----Lower

3. Sideward (horizontal) communication It takes place among managers, placed at the same rank, in the organisation. It is necessary for achieving co-ordination of actions of individuals, doing the similar type of work, under managers of equal ranks. For example, a communication between two assistant production managers is an instance of horizontal communication. It used to improve. Understanding, coordinate efforts for achieving organisation objectives. It related to task coordination/ understanding, problem solution/conflict resolution, information sharing.

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Supervisor Upward communication Subordinate Vertical communication 75. Explain about Barriers of Communication. Explain how to overcome it. I. Organizational barriers: 1. Lengthy scalar chain: When the scalar chain, which is the basic route of travelling for all formal communications, is too lengthy. (R) Cut short the scalar chain, in emergency situations. (R) Make use of and authorize the building of gang planks, as suggested by Henry Fayol. 2. Vaguely clarified authority-responsibility relationships When authority relationships among superiors and subordinates are not clearly defined; superiors and subordinates, both might find confused as to whom to contact and convey their problems, suggestion, etc. (R) Management must design a compact and well-defined organizational structure by means of an organizational chart displayed at various organizational points. 3. Too wide a span of management Where, in an organisation, span of management is too wide the superior might not be able to effectively communicate, with an unduly large number of subordinates. (R) The span of management must be reduced to the optimum level by the top management. 4. One-way communication system. The communication system is only a one-way track i.e only from the top management to downwards at lower levels. (Lack of feedback) (R) Design and maintain a two-way communication network so as to allow upward communication. 5. Irrelevant and out of context communication. The situation accounting for irrelevant and out of context communication, usually emerges when organizational objectives are not clearly defined and organizational policies are imperfect. (R) Organizational policies must be perfected by concerned higher authority so as not to let subordinates exercise unnecessary discretion, while implementing those policies. downward communication Subordinate

6. Lack of adequate communication facilities Adequate communication facilities like-telephone, intercom, peons, messengers, Photostat or typing facilities are not available. As a result, communication delays or bottlenecks arise, impairing with a free-flow of communication.

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(R) Management must see to it that requisite facilities for communication are provided to needy personnel in the organisation. II. Linguistic Barriers i.e relating to language of communication, 1. Poor or harsh language When the communication whether oral or written is expressed in a poor or harsh language the sentiments of the recipient are emotionally affected and resistance (or reaction) to such communication is invited on his part. (R) The sender must use polite and dignified language so as to touch the sentiments of the recipient. 2. Vague language When language used in drafting a communication is vague (i.e the same word meaning differently to different individuals) (R) Use of technical language must be avoided, as far as possible. The technical terms must be explained or translated into the laymens language. 3. Faulty or misleading (Distortion) Sometimes managers, especially at middle levels, receive communications from the upper levels which have to translated by them into some other simpler language for use of subordinates and operators. Managers-poor translation art-might distort the original communication. (R) Only such managers as an adept in transaction work must be permitted to translate messages into required languages.

Manager as a communication filter III. Barriers on the part of the sender of communication 1. Badly expressed messages Poor organisation of ideas Lack of co-ordination Inadequate vocabulary Repetition Awkward sentences Careless omissions etc. (R) The sender must be an adept at drafting. The drafted message must look like an integrated and compact piece to communication. 2.Distrust of the communication Many superiors, sending communications are distrusted by subordinates because the former might be alleged for countermanding (i.e canceling) or modifying an original communication, according to their own whims and prejudices.

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In such situations, even the genuine and honest communications, by such superiors are not taken serious note of by subordinates who might throw such communications, in the waste-paper basket. (R) Superiors gradually try to build their image of trust and confidence in the minds of subordinates. 3. Superiority complex Many superiors suffer from superiority complex and would not like to talk to subordinates or otherwise communicate with them. In such situations, not only does the work of the organisation suffer but also the subordinates feel frustrated and degraded. (R) The superiors must give up their superiority complex as a sign of psychological health and communicate with subordinates freely and in a friendly manner. 4. Egoistic communications Some superiors make egoistic communications to subordinates just to satisfy their false ego and impress subordinates with their power, status and authority, in doing so. Such communications merely waste the time of both the sender and the recipients and it makes no meaningful. (R) Superiors must desist themselves from making egoistic communications bearing in mind the old adage the pride hath (has) a fall. 5. Failure to communicate Communication-gap sometimes, superiors fail to communicate, even important messages or news with subordinates either because of information overload or assuming that people already know that which they intended to communicate to them. (R) Despite information overload, they must spare time for making relevant and required communications. 6. Fear of challenge to authority Some superiors might be reluctant (or hesitant) to make even important communications to subordinates fearing that any feedback or reaction to their communication might challenge their authority. (R) They must gradually acquire self-confidence and make better communications, in future. 7. Untimely communications Sometimes, communications by superiors may be untimely much in advance of time required for their making them or making communications, just in the nick of time. (R) Superiors must only make timely communications neither before time nor unduly delayed. IV. Barriers on the part of the recipient of communication 1.No attention So many recipients of communications pay no attention to it either because of tension created by personal and family problems, or because of being overburdened with other emergency issues. (R) Communication must be made short, simple and attractive to gain the immediate attentions of the recipient. 2. Premature evaluation Many recipients, especially subordinates, go in for a pre-mature evaluation of the communication even before the communication is fully communicated to them. (R) They must wait for the sender to complete the communication. This only requires patience on the part of the recipients. 3. Individual perception Many recipients have their own perceptions and interpret messages in their own way of thinking and to their own advantages. (Frustration)

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(R) Recipients must have a broad outlook and appreciate the viewpoint of the sender in making the communication. 4. Fear of superiors Some recipients, especially subordinates, give a wrong or misleading feedback to communication owing to fear of superiors or out of their sheer inferiority complex. (R) Subordinates must impart a free and impartial feedback to communicate. V. Miscellaneous barriers to communication 1. Mechanical barriers In some cases, mechanical appliances, used in the communication process, might suffer from mechanical defects leading to e.g distortion of messages owning to technical faults in telephone lines or sudden disconnection to telephone link rendering communication incomplete etc. (R) For mechanical devices used in communication process, the management must care for their maintenance and due repairs. It should be kept up-to-date. 2. Loss of transmission and poor retention There is usually a loss of contents of the message when it is in a course of transmission via various links in the scalar chain especially when the communication is made verbally. (R) Emphasis of the sender must be on making written communication repeated reasonably frequently to overcome these barriers. 3. Insuffiecinet period allowed It relates to o Change of work i.e nature or type of work o Change of place o Change of shift o Changeover to new methods of operation etc. o (R) Management i.e sender of communication must provide for (or allow for) necessary adjustment period to people to realize the intentions involved in making such communications. UNIT-V: CONTROLLING 76. Define controlling. Explain about Process of control. o Controlling is determining what is being accomplished, that is evaluating performance and, if necessary, applying corrective measures so that the performance take place according to plan, that is, in conformity with the standard. The process of control -------------------1. Objectives 2.Standard Corrected Performance No normal deviation comparison 3.Performance 5.Corrective action If necessary -------------------------------------4.Measurement

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77. Explain about the Standard in Controlling. Determination of standards: Standards Tangible standards Intangible standards (not measured)

Physical (mhr, color of goods) Employee morale(absence from duty) Cost (direct& indirect) Consumer satisfaction (after-sales service) Revenue (average sales per customer) Corporate image(goodwill) Capital (rate of return) Product leadership (quality of goods) Programme (improving the cost control) 78. Define Benchmarking. Explain three types of benchmarking. Benchmarking: Benchmarking is a concept that is now widely accepted in the U.S.A It is an approach for setting goals and productivity measures based on best industry practice. Example: a company needs six days to fill a customers order and the competitor in the same industry needs only five days, then five days does not become the standard if a firm in an unrelated industry can fill the orders in four days. The four-day criterion becomes the benchmark even when at first this seems to be an unachievable goal. The process involved in filling the order is then carefully analyzed and creative ways are encouraged to achieve the benchmark. Three types of benchmark: 1. Strategic benchmark: it compares various strategies and identifies the key strategic elements of success. 2. Operational benchmark: it compares relative costs or possibilities for product differentiation. 3. Management benchmark: it focuses on support functions such as market planning and information systems, logistics, human resources management, and so on. 79. Explain about the features of Controlling. Characteristics/features/nature of controlling or control: 1. Controlling makes for a bridge: Controlling makes for a bridge between the standards of performance and their realistic attainment. Standards controlling as a bridge Attainment of standards

2. Planning is the basis of controlling The standards of performance (which are starting point of the controlling process) are laid down in plans. 3. Controlling is pervasive managerial exercise All managers, at different levels in the management hierarch, perform this function, in relation to the work done by subordinates under their inchargeship. It could be generalized that delegation is the key to controlling. 4. Control is a continuous process It involves continuous review of performance and revision of standards of operations. Control is a process of regular measurement, comparison and verification. 5. Action is the essence of control

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An effective control system facilitates timely action to adjust performance to predetermined standards so that there is minimum wastage of resources. Action also includes modification or improvement of existing plans. 6. Controlling is based on information feedback On the reports on actual performance done by operators. Information or feedback enables the manager to determine how far the actual operations is proceeding according to plans or standards and where remedial actions are needed. 7. Control aims at future Control involves a post-mortem of what has happened and is in that sense looking back. But the control action seeks to regulate events in future as past is uncontrollable. Control is thus both backward-looking and forward-looking. Past is the basis for regulating action in future. It is looking at future through the eyes of past. 80. Explain about control Mechanism. Control mechanism: Control falls, plan also fail and plans succeed, control also succeeds. Four elements: 1. Setting of standards of performance at strategic points 2. Leading, motivating and supervising employees 3. Measurement of actual performance and its comparison with the stated standards of performancemonitoring and reviewing activities of the supervisor. 4. Corrective action, when necessary. So, control standards are derived directly from the objectives, specifications, and other goals established in the process of planning. Standard is a rule of measuring. Effective control of operation function Quantity quality time use cost

i. Quantity of output ii. Quantity of sale iii. Quantity of Inventory

i. quality control over raw materials finished goods ii. Quality control Over non-physical Goods and services Of an organisation e.g customer service Morale, leadership etc. 81. Define Managerial control. Explain it. Managerial control: Manager Information for aiming And planning Managing

i.Gantt chart i. direct cost: ii.PERT/CPM materials (these are tools oflabour time use control and expenses Save money) ii. Indirect cost: O.H BEP

Information for controlling

Aiming and plan

controlling

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1.Establishing standards by setting Objectives approving plans 2.Stating policy. 3.delegatingh authority 4.approving procedures etc.

1.supervision 2.measurement 3.comparasion 4.evaluation 5.corrective action to Adjust performance to Standards

Framework of management

Information evaluating adequacy Of standards performance with standards

information comparing

82. Explain about Controlling process. Steps in controlling or control process 1. Desired Performance 8.implementation of correction 7.corrective action plan 6.analysis of causes of Deviations

2. Actual Performance

3.measurement of performance

4. Comparison of 5.identification of actual and standard deviation

1. Establishment of standards The process of controlling commences with the determination of standards of performance, for all phases of the organizational activity. Standards may be stated in physical terms such as units of output, man-hours worked, etc., or in monetary terms such as sales, costs, profits, etc. Standards may also be of a qualitative nature e.g company image. Time standards: machine hours, man-hours Capital standards: current ratio Monetary standards: income, sales, profits, costs etc. Quantitative standards: units of production, unit of sales Intangible standards: morale of employees, competence of managers etc. Requirements of ideal standards:

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i. Standard must be practical ii. Standards must be scientific iii. Standards must be simple to understand iv. Standards must be expressed in numerical terms v. Standards must concentrated on results vi. Standards must be flexible 2. Measurement of actual performance The results of operation are measured and evaluated in comparison with the standards. Ideally, measurement should be such that deviations may be detected in advance of occurrence and avoided by appropriate action. Effective methods of observation, inspection and reporting are required. Measurement must be: i. Clear, simple and rational ii. Relevant iii. Direct attention and efforts and iv. Reliable, self-announcing and understandable without complicated interpretation. 3. Comparison of actual performance against standard and locating deviation It involves two steps i. Finding out the extent of deviations and ii. Identifying the causes of such deviations Management may have information relating to work performance, data, charts, graphs and written reports, besides personal observation to keep itself informed about performance in different segments of the organisation. When the standards are achieved, no further managerial action is necessary and control process is complete. 4. Analysis of variances Comparison of actual performance with standards will reveal deviations. Critical deviations are analyzed to diagnose their cause and their impact on the organization Remedial action can be possible only when the causes of the trouble spots have been identified. Find causes of deviations: i. External environment factors ii. Internal environment factors iii. Organizational defects iv. Imperfections in planning v. Staffing defects vi. Flaws in directing techniques 5. Corrective of deviations This is the last steps in the control process which required that actions should be taken to maintain the desired of control in the system or operation. Control action may be i. Review of plans and goals and change therein on the basis of such review. ii. Change in the assignment task iii. Change in existing techniques of direction and iv. Change in organisation structure provisions for new facilities. 83. Explain different types of Control. Control

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Based on elements Strategic control Operational control Feedback Control

Based on stages

Feed forward Control Control

Concurrent

I. Based on elements: 1. Strategic control It is the process of taking into account the changing planning premises, both external and internal to the organisation on which the strategy is based continuously evaluating the strategy as it is being implemented, taking corrective action to adjust the strategy to the new requirements. Aim: proactive continuous questioning of the basic direction of the strategy. Basic question: are we moving in right direction Focus: external environment Time horizon: long-term Main techniques: environmental scanning, information gathering questioning and review. 2. Operational control It is concerned with action or performance and is aimed at evaluating the performance of the organisation as the whole or its different components- strategic business units, deviations and departments. It can be exercised at different stages of work performance Basic question: how are we performing Aim: internal environment Time horizon: short term Main techniques: budgets, schedules and MBO. II. Based on stages: Feed forward Control Inputs Concurrent Control Processing Outputs

----

-------------------------------------------------------------Flow of information Corrective action

Feedback Control

a) Feed forward (predictive) control Control monitors critical inputs and suggests preventive measures in the form of corrective action Correcting inputs budgets b) Feedback control

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 Feedback monitors or evaluates output variables and suggests remedial or corrective action. Correcting inputs morale of employees, reducing cost etc c) Concurrent control It measures enable us to take timely action before larger damage take place. Example: quality control used in production operations enable us to take immediate corrective action before additional products are produced. Control areas: 1. Control over polices formulating policy 2. Control over organisation structure organisation chart and manuals are used 3. Control over personnel morale, synergy 4. Control over cost actual cost > standard cost =unfavorable, vice versa 5. Control over wages and salary programme of job evaluation 6. Control over method and manpower individual performance, working time 7. Control over line of product rationalize the line of products 8. Control over capital expenditure capital budgeting 9. Control over R &D technical, monetary, personnel 10. Control over external relation these are regulated by public relations department 11. Over all control control over each segment of the organisation. 84. Discuss about the essentials of Effective control system . Essential of effective control system: 1. Suitability A good control system must be tailor-made to suit the nature and requirements of the activity controlled. The system of control should be geared to the objectives of the organisation and must be consistent with the companys total operating system 2. Promptness An ideal control system should detect and report deviations as soon as, if not before, they occur. Timely corrective action is possible only through prompt reporting of deviations and their causes. 3. Forward looking A good control system should take into account the possibilities of the recurrence of deviations. Example: the need for cash may be forecast in advance to avoid shortage of cash at the time of payment. 4. Control by exception It should focus attention on the strategic points or key areas where control action is most urgent. 5. Objectivity Standards and measurement of performance should as far as possible be objective, verifiable and specific. Control should not be influenced unduly by the personality of the superior and the subordinates. 6. Flexibility The system of control should be flexible enough to be adjusted according to changes in needs and circumstances. Flexible control can be possible through flexible plans. Flexible budgets, for example, keep the control system elastic and responsive to changes. 7. Organizational pattern Organisation structure is a means of control. Control system should reflect the efficiency and effectiveness of the organisation.

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8. Economy. The cost of installation and maintenance of the control system should be justified by its benefits. 9. Simplicity It should be simple to administer. A control system can work effectively when it is understood by all 10.Suggestive A good system should suggest the necessary remedial action. Objectives of controlling: 1. To bring actual operational performance on the right track 2. Locating deviations 3. Analyzing deviations 4. Undertaking remedial action 5. Preventing occurrence of deviations 6. Cost control and profit maximization 7. Helping achieve co-coordinated action 8. Maintaining discipline.

85. Explain about the Controlling Techniques. Controlling techniques: (control tools or control aids) Control techniques Operational control techniques (It is exercised at the level of various Operating units by the concerned Operating manager) Overall control techniques (it is exercised by top level management)

Financial control (Budgetary control)

Operating control (Non-budgetary control)

I. BUDGETARY CONTROL: Definition: budgetary control involves the use of budgets and budgetary reports throughout the period to coordinate, evaluate and control day to day operations in accordance with the goals specified in the budget It is the process of defining desired performance through the preparation of budgets, measuring and comparing actual results with the corresponding budget data and taking of appropriate action to correct deviations, if any. A budget is a recorded plan of action expressed in quantities terms A budget is prepared to act as a means of controlling operations Budgetary control naturally involves preparation of budgets and later comparison of actual with planned expenditure or comparison of actual performance with the budget and taking corrective actions, if necessary.

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A) Budgets

1. Master budget: it is the budget for the enterprise as a whole. It is a coordinated summary of
departmental budgets.

2. Production budget: it lays down the quantity of goods to be produced during the budget period.
It lays down the production programme and schedule for enterprise. i. Man-hours ii. Machine-hours 3. Labour budget: it lays down the estimates of direct and indirect labour requirements for a given period of time. It is based on production and sales budget. 4. Material budget: it lays down the quantity and quality of raw materials required for achieving the desired output during the budget period. 5. Cash budget: it contains detailed estimates of cash receipts and cash payments for the budget for the budget period. 6. Capital expenditure budget: it consists of the estimates of capital investment in plant, machinery, furniture and other fixed assets. 7. Overhead budget: it contains estimates of overhead costs. i. Factory overheads ii. Administration overheads iii. Distribution overheads 8. Sales budget: it is a forecast of the total volume of sales and also its breakup product wise and area wise. 9. Fixed and flexible budget: i. A fixed budget is based on a specified level of operations and it does not show changes in expenditures according to changes in the scale of operations. ii. Flexible budget shows changes in costs according to varying levels of operations. 10. Zero-Base Budget: i. ZBB is based on a system where each function, irrespective of the fact whether it old or new, must be justified in its entirety each time a new budget is formulated. ii. It requires each manager to justify his entire budget in detail from scratch that is zero bases. iii. Each manager states why he should spend any money at all. The process of ZBB involves the four basic steps: Identification of decision units, that is, clusters of activities or assignments within a managers operations for which he is accountable. Analysis of each decision unit in the context of total decision package. Evaluation and ranking of all decision units to develop the budget request and Allocation of resources to each unit based upon ranking B) Control through costing Standard costing a method of ascertain cost. Standard cost- pre-determined cost (material cost, labor cost, and over heads cost) Variance = standard > actual - favourable Variance = standard < actual unfavourable Standard costs are predetermined costs which are used as standards for measuring actual performance. It distinguishes between controllable and uncontrollable costs. Standard costing and marginal costing are useful means of cost reduction and cost control. Cost, Volume and Profit analysis (CVP) It discloses the relationship between cost, volume and profit.

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Break Even Point: the point where is intersect the total sales curve and the total cost curve i.e No Profit and No Loss.

C) Responsibility Accounting A management accounting system consist of two principal parts: one is called product cost accounting; the other is called responsibility accounting. It focuses attention on MBO rather than MBD(domination) It cost are assigned to responsibility center rather than to products. A responsibility center is an organisation unit, such as division, department or section, head by responsible person. Head is made responsible for the controllable cost. It is a system of controlling, whereby the performance of managers is judged by assessing how for they have achieved the targets set for their departments or sections for whose performance they are responsible. There are three types of responsibility centers: In the Cost centers, the control system measures only the costs incurred by responsibility centers; no attempt is made to measure the value of their outputs. Thus, most individual departments and staff departments are cost centers. In profit centers, the targets are fixed in terms of profit which is measured by the amount of input and output. In the investment centers, managers are held responsible for the effective use of assets as well as for revenue and costs.

D) Internal Audit It is an effective tool of managerial control Internal audit is carried out by managers themselves or by special staff appointed for this purpose. It is appraises policies, procedure, quality of management, effectiveness of method etc. Internal audit is vouching and verification of accounting by a staff of internal auditors and is also concerned with examining the overall operational efficiency of the enterprise. Scope: appraisal of financial controls, compliance with polices and procedures, efficiency in utilizing resources and appraising quality of management performance etc.

86. Explain about the advantages & disadvantages of the Budgetary Control System: Advantages of the Budgetary Control System: 1. Expression of planning in definite terms Since budgets are a numerical expression of business plan the budgetary control system-built around the concept of budgeting expresses plans in definite terms. 2. Comprehensive managerial technique Planning and controlling are two extremes of budgetary control and other managerial function viz. organizing, staffing, direction naturally fit into the budgetary control structure at their appropriate places 3. Communication of jobs (or duties) though budgets The budgetary control system is the mouthpiece of management as budgets convey to people what jobs are assigned to them or what role they are supposed to play, in the organizational life. 4. Instrument of co-ordinations Through budgets, the functioning of functional departments, management level and actions of individuals throughout the enterprises are all endeavoured to be co-coordinated.

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5. Profit-maximization attempted through cost-control The budgetary control system helps management to strive for the profit-maximization goals in a legitimate manner 6. Fixation of responsibility facilitated Responsibility for weaknesses or shortfalls in performance can be easily fixed through the budgetary control system. Limitation of budgetary control system 1. Difficulty in setting rational standards Despite the adoption of the best scientific approaches to setting rational standards: prejudices, bias and personal opinions of manger enter the budgetary control system, through the back door. 2. Danger of over-budgeting Regulating the organizational operational life through the budgetary control system might carry a danger of over-budgeting. 3. Lack of department co-operation and co-ordination There might be a lack of departmental co-operation and co-ordinations, while designing and implementing the budgetary control system 4. Umbrella for inefficiency It may become an umbrella for hiding organizational inefficiency as many people might act within budgets though remaining highly inefficient otherwise. 87. Explain about Non- Budgetary Control. NON-BUDGETARY CONTROL 1. Quality control Quality is sense of appreciation that something is better than something else. The concept of quality is fitness for use and the methodology adopted is defect prevention rather than inspection and rejection. Quality of an item refers to the ability of a product to satisfy its intended purpose in relationship to the price. The function of quality control is an integral part of management control. Quality control, if it is effectively done, results in many benefits. They are: i.it minimizes waste, ii. Reduces costs, iii. Builds up goodwill of the product in the market, iv. Facilitates advertising and v. increases sales 2. Total quality management (TQM) There is very high emphasis on quality both for products and service. Create customers and retain customers 3. Quality control through Quality Circle. QC Japanese- JIT, KANPAN, KAIZEN, SIC SIGMA etc, QC is a group of employees that meet regularly to solve problem affecting its working area. This group carries on continuously as a part of organisation-wide control activities, selfdevelopment and mutual development and control and improvement within the workplace utilizing control with all members participating. Generally six to twelve volunteers from same work area make up the circle. 4. Inventory control Inventory consists of raw material, work-in-progress and finished goods. Inventory is kept at a particular level. i. ABC Analysis - Technique for classifying different items - This technique use the values of different types of inventory for their classification

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A A group consists of those items which have high value though their number may be low B B group items fall in between with average value and number. C- C group items have very low value but their number may be more.

Inventory classification Group A B C no: of items (%) 15 30 55 100 value of inventory (%) 70 20 10 100

ii. Economic Order Quantity (EOQ) - EOQ is a mathematical formula employed in the determination of base stock - It guides efficient inventory management - It explains how to maintain the stock economically. 4. Time Even Network Analysis This is undertaken to ensure that the programme or project is completed within the stipulated time i. Gantt Chart Henry Gantt identified the relationship among different activities required to complete a programme. A- task B-task C- task ii. PERT/CPM PERT (Programme Evaluation Review Technique) uncertainty in the duration of activities is allowed and is measured by three parameters. - Most optimistic duration - More likely duration - Most pessimistic duration. CPM (Critical Path Method) assumes the duration of every activity to be constant therefore, every activity is either critical or not Uses: i. Minimize total time for a given cost, ii. Minimize total cost for a given total time. 88. Explain about Overall control techniques. OVERALL CONTROL TECHNIQUES (PREVENTIVE CONTROL) 1. Financial Ratio Analysis i. Control through Return On Investment ii. Management Audit iii. Social Audit 2. Human Resource Accounting 3. Management Information System 1. Financial Ratio Analysis

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The relationship between two financial variables in order to derive meaningful conclusion about their behaviour. Financial statement analysis helps in diagnosing the health of a business concern. Analysis of profitability, liquidity and solvency ratios an important of control of overall performance. Ratio analysis helps in making inter-firm and intra-firm comparison. i. Return on Investment (ROI) ROI or rate of return is the ratio total profit and total investment. It can be used to appraise the overall profit performance of company and of its various segments. It may be used for both planning and control purposes. The rate of return criterion is most useful in long-term investment decisions. ROI can also be used to compare the relative contributions of different products to overall profitability of the firm. ROI TURNOVER-----------------Multiplied by---------------------------SALES --divided by----TOTAL INVESTMENT EARNINGS WORKING + CAPITAL PERMANENT INVESTMENT SALES INVENTORY + ACCOUNT RECEIVABLES + CASH ----mins------COST OF SALES ---divided by---SALES EARNINGS AS % OF SALES

FACTORY COST

OFFICE COST

SELLING COST

2. Management Audit Management audit is an evaluating of management as a whole It examines the total management process of planning, organizing, staffing, directing and controlling. A periodically done critical analysis of various components of organizations as a whole; its endresults; deviation and degree of impact of various factors resulting in deviations in the principles and practices of managerial functions at different levels in the organisation may be called MA. It is a periodic evaluation of the past and present managerial practices to identify the adjustments necessary to make the organisation more effective. Areas: - An appraisal of managers - Economic functioning of the enterprise - Fulfillment of major social responsibilities

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Functioning of the Board of Directors Soundness of organizational structure. Emphasis of research and development etc.

3. Social Audit Social audit is concerned with the measurement of social performance of an organisation in contrast to its economic performance. The application of the concept of social may be attributed to an increasing awareness of social responsibility by business enterprise. It is designed to measure the value of productivity capability of organizations human resources and value of the various parties external to the organisation but interacting with the organisation. 4. Human Resources Accounting ( HRA) To measure the performance in the use of human resources, Likert has developed the technique of HRA. HRA is accounting for people as an organizational resource. It involves measuring the cost incurred by business firms and other organisation to recruit, select, and hire, train and development human assets. It also involves measuring the economic value of the people to the organisation. Its basic purpose is to facilitate the effective management of human resource by providing information to acquire, develop, retain, utilize, and evaluate human resource. 5.Management Information System Though MIS is not a control technique it is quite helpful in planning, controlling and other organizational processes. The flow of information is made regular by information by system. MIS the system of providing needed information to each manager at the right time, in right form, and relevant one which aids his understanding and stimulates his action. MIS is an assemblage of personnel and facilities organized into an integrated system by whichrelevant, adequate and timely information is supplied to executives. MIS consists of following steps: i. Assembly collection of data ii. Processing editing of data, their classification, and summation iii. Storage and retrieval indexing, coding, filing of information and getting back information. iv. Evaluation- determination of accuracy and relevance of data v. Dissemination supplying the relevant information in the proper form and at the right time. MIS a blue print Information with increasing use of electronic devices computer. Principle of preventive control system: The principle of preventive control, thus, is that the higher the quality and caliber of managers; the lesser will be the need for direct controls. Assumptions underlying preventive control system 1. Assumption that qualified manager makes a minimum of errors. 2. Assumption that management fundamental can be used to measured performance 3. Assumption that the application of management fundamentals can be evaluated.

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Advantages of Preventive Control 1. A basic for managerial training/development 2. Encouragement to self-concept 3. Managerial burden lightened 4. Better superior-subordinate relationships. Developing excellent managers- the key to preventive control 1. Willingness to learn 2. Planning for innovations and inventions 3. Tailoring information 4. Acceleration of management development programme 5. Measuring managerial performance and rewarding it 6. Need for management research and development 7. Need for intellectual leadership 89. Discuss about the Productivity. PRODUCTIVITY It may be defined as the output- inputs ratio, within a given time period and with due consideration for quality of performance. Productivity is the ratio of the inputs facilities to the output of goods and services. In general sense, productivity is some relationship between inputs and outputs of an enterprise. It is the quantitative relationship between that we produce and what resources used. Productivity means a balance between all factors of production that will give the maximum output with the smallest effort. Measure of Output output Productivity = ------------------------(or) ------------Measure of Input input QT Pt = -----------------L+C+R+M R = Raw Material M= miscellaneous Pt = Total Productivity L = Labour C = Capital

Importance: The aim should be optimum use of resources so as to provide maximum satisfaction with minimum efforts and expenditure. Productivity analysis and measures indicate the stages and situations where improvement in the working of inputs is possible to increase the output. It can be used different purpose: - Comparison of performance for various organizations - Contributions of different input factors - Bargaining with trade union etc. Factors affecting productivity: Category I: 1. Primary factors are efforts and working capacity of an individual 2. Organizational factors the design, transformation process, nature of training, skills of workers etc.

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3. Conventions and traditions of the organisation. E.g. activity of labour union, medical facilities, executives Category II a) Factors related to output R&D techniques, improvement of technology, efficient sales strategy of the organisation will lead to improvement in output b) Efficient use of input resources better stores control, production policy, maintenance of machines etc. will minimize the cost of production. Category II & I can be classified into four major classes

1. Technological: it can increase the output per unit of input substantially. 2. Managerial factors: organizational structure, scheduling work, financial management layout,
innovation, personnel policies, material management etc. 3. Labour: skills of the workforce, health, attitude towards management, training, discipline etc. 4. External factors: power, transport facilities, tariffs and taxes etc. Ways of Increasing Productivity: It can be increased wither by reducing the input for the same level of output or by increasing the output with the same level of input or by combinations of both. This can be achieved by elimination of waste by using improved technology, better production design and management efforts. Techniques of improve productivity 1. Better planning and training of employees, improved job and communication and effective management CPM/PERT method. 2. Use of time and motion studies to study and improve performance 3. Better transportation and material handling system 4. Value engineering to reduce material content by good design. Measurement of productivity (mainly two) 1. In terms of input performance by calculating in output per unit of unit of input. 2. On the basis of output performance by calculating change in input per unit of output. Measures: Amount of output 1. Labour productivity: ----------------------------Amount of labour (Total man hour x rate) 2. Capital Productivity = Turnover ------------------------Capital employed

Profit 3. Profit Productivity = -----------------Investment Output A general measures of productivity:---------------------------------------Labour +capital+ other inputs In fact, the measures of productivity indicate the performance of inputs namely labour, capital and other inputs in an organisation.

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90. Explain about the Operations Management. OPERATIONS MANAGEMENT or PRODUCTION PLANNING AND CONTROL Production management and operations management is one and the same thing. In fact, operation management is a new name for production management. Operations management is the designing, operating and controlling of production systems whereby, products/services are produced/delivered, through a process of conversion from inputs to output. It coordinates supply and movement of materials and labour ensure economic and balanced utilization of machines and equipment as well as other activities related with production to achieve the desired manufacturing results in terms of quantity, quality, time and place. Objectives of operations management 1. Determining the nature and magnitude of various inputs factors to manufacture the desired output. 2. To coordinate labour machines and equipment in the most effective and economic manner 3. Establishing targets and checking these against performance 4. Ensuring smooth flow of material by eliminating bottlenecks, if any, in production. 5. Utilization of under employed resources. 6. To manufacture the desired output of right quality and quantity at right time. Structure Works Manager Production planning and control manager Production engineering Section material manager inventory controlshipping Section receiving and section

Production planning categories Routing Scheduling loading

Routing: it means determines of path or route over which each piece is to travel in being transformed from raw material into finished goods. Scheduling: the determination of time that is required to perform each operation and also the time to perform the entire series as routed is scheduling. Loading: the study of the relationship between load and capacity at the places where work is done. 91. Explain about the Process of operation management. Process of operation management

External Environment

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Inputs 1. 2. 3. 4. 5. 6. Information Technology Raw-materials Manpower Management Physical factors (land, buildings etc) 7. Other necessary inputs

transformation or Conversion process planning, operating and controlling the production system

output products services

Feedback

External Environment

Steps involved in operation management 1. Planning the system i. Search for selection of the product or service ii. Production design iii. Determination of production layout 2. Operating the system i. Setting up an organisation structure ii. Staffing positions and training people iii. Supervising workers, so that theory produce desired goods/services iv. Motivating and leading people, to get best performance output of them. 3. Control the system i. Quantity and quality of output ii. Utilization of raw material and wastages, iii. Price and quality of raw material purchased. iv. Inventory levels of raw materials and finished goods etc. Tools of operations management: Operations Research: OR might be defined as quantitative common sense for obtaining optimum solutions to business problems. OR includes: i. Liner programming, ii. Just-in-Time (JIT) inventory system etc. 92. Explain about Global management system. GLOBAL MANAGEMENT THEORY Proverb = Merchant has no Nation International Management is the process of planning, organizing, leading and controlling in organizations engaged in international business.

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A multinational corporation (MNC) is an organisation that is engaged in production or services through its own association in several countries, manages and control the overall activities from a global perspective Multinational companies are large in size and are engaged in substantial amount of business throughout the world The shift towards a more integrated and interdependent world economy. Globalization ha two main components the globalization of markets and the globalization of production. charles Interdependency and integration of individual countries of the world may be called the globalization.

Features of globalization: Operating and planning to expand business throughout the world. There must be a global approach to market, a free market or a competitive market. Products, process and methods must fit in with the global quality standards. Management must have a global perspective. There must be a global acceptability of products and policies Erasing the difference between domestic market and foreign market Sourcing of factors of production and inputs like raw material, machinery, finance, technology, human resource, managerial skills from the entire global. Global orientation in strategies, organizational structure, organizational culture, managerial expertise. Example: Mazdas sports car MX 5 Maita, Designed California Prototype England Assembled-Michigan and Mexico Using electronic components New jersey Fabricated Japan Sources of Finance Tokyo and New York Marketed - world wide

Components of Globalisation Globalization is tending toward a more integrated global economic system. Components of Globalisation

Globalisation of Markets 1. 2. 3.

Globalization Production Investment

Globalization Technology

Globalization

Globalisation of markets: Global acceptance: Coca-Cola, Pepsi, McDonalds burgers, Indian Masla Dosa Globalization Production Labour cost: china low, India low, USA high, German high. Globalization investment

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Foreign Direct Investment, Coca-Cola acquired a number of bottling companies throughout India by investing the capital directly. 4. Globalization of Technology B2B, B2C, Joint Venture Advantages: 1. Free flow of capital 2. Free flow of technology 3. Increasing in industrialization 4. Balanced development of world economy 5. Increase in production and consumption 6. Increase employment and income 7. Higher standard of living 8. Culture exchange Disadvantages: 1. Kill domestic business 2. Leads to unemployment and under employment 3. Decline in demand for domestic products (home country) 4. Widening gap between Rich and Poor 5. Transfer of Natural Resources 6. Leads to commercial and political colonialism

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