SOLUTION OF MANAGING ORGANISATION

Ans 1. Management is the art of getting things done through others. Follett describes management
as an art of directing the activities of other persons for reaching enterprise goals. It also suggests that a
manager carries only a directing function.

Harold Koontz:

Management is the art of getting things done through and with people in formally organized groups.
Koontz has emphasized that management is getting the work done with the co-operation of people
working in the organization.

Management as a Process:

Some authors view management as a process because it involves a number of functions. Management
refers to all Involves different a manager does.

A)Management as a Discipline:

Sometimes the term management is used to connote neither the activity nor the personnel who performs
it, but as a body of knowledge, a practice and a discipline. In this sense, management refers to the
principles and practices of management as a subject of study. Management is taught as a specialized
branch of knowledge in educational institutions. It has drawn heavily from Psychology, Sociology, and
Anthropology etc. A person acquiring degree or diploma in management can try for a managerial job.

(B) Art and Science of Decision-Making and Leadership:

Decision-making and guiding others is considered an important element of management. A manager has
to take various decisions every day for properly running an enterprise.

C)An Art of Increasing Productivity:

Some authors are of the view that the science of management is used to increase productivity of the
enterprise. Management may be defined as the art of securing maximum prosperity with a minimum of
effort so as to secure maximum prosperity and happiness for both employees and employer and give
public the best possible service.

D)Integration of Efforts:

Management makes use of human and physical resources for the benefit of the enterprise.Management
is the force that factors integrates men and physical plant into an effective operating unit. Management
integrates physical and human resources for operating the manufacturing process in a better way.

OBJECTIVES

(1) Management is Goal-oriented Process:

No goal in the hand no need of management. In other words, we need management when we have some
goals to be achieved. A manager on the basis of his knowledge and experience tries to achieve the goals
which are already decided. Hence, nothing is wrong to say that management is a goal-oriented process.
2) Management is All-pervasive:

Anything minus management is nothing or zero. Here by anything we mean all types of activities-business
and non-business. If we deduct management out of these activities, the result will be failure or zero. It
means management is necessary to conduct any type of activities. Hence, it is pervasive or universal

(3) Management is Multidimensional

Every organisation is established for doing some work, like a school provides education, a hospital treats
patients, a factory produces, etc. Of these, no work can be completed satisfactorily without management

(4) Management is a Continuous Process:

The various managerial activities cannot be performed once for all, but it is a continuous process. A
manager is busy sometimes

CONCEPT
Ans2 Meaning and Concept of Planning

Planning is deciding in advance what is to be done, when where, how and by whom it is to be done.
Planning bridges the gap from where we are to where we want to go. It includes the selection of objectives,
policies, procedures and programmes from among alternatives. A plan is a predetermined course of action
to achieve a specified goal. It is an intellectual process characterized by thinking before doing. It is an
attempt on the part of manager to anticipate the future in order to achieve better performance. Planning
is the primary function of management.

Nature / Characteristics of Planning

Planning is an Intellectual Process

Planning is an intellectual process of thinking in advance. It is a process of deciding the future on the
series of events to follow. Planning is a process where a number of steps are to be taken to decide the
future course of action.

Planning Contributes to the Objectives

Planning contributes positively in attaining the objectives of the business enterprise. Since plans are there
from the very first stage of operation, the management is able to handle every problem successfully. Plan
try to set everything right.

Planning is a Primary Function of Management

Planning precedes other functions in the management process. Certainly, setting of goals to be achieved
and lines of action to be followed precedes the organization, direction, supervision and control.
A continuous Process
Planning is a continuous process and a never ending activity of a manager in an enterprise based upon
some assumptions which may or may not come true in the future. Therefore, the manager has to go on
modifying revising and adjusting plans in the light of changing circumstances.
Planning Pervades Managerial Activities
From primary of planning follows pervasiveness of planning. It is the function of every managerial
personnel. The character, nature and scope of planning may change fro personnel to personnel but the
planning as an action remains intact.
Reduction of Uncertainty
Future is always full of uncertainties. A business organisation has to function in these uncertainties. It can
operate successfully if it is able to predict the uncertainties. Some of the uncertainties can be predicted by
undertaking systematic. Some of the uncertainties can be predicted by undertaking systematic
forecasting. Thus, planning helps in foreseeing uncertainties which may be caused by changes in
technology, fashion and taste of people, government rules and regulations, etc.

Better Utilization of Resources

An important advantage of planning is that it makes effective and proper utilization of enterprise
resources. It identifies all such available resources and makes optimum use of these resources.

Ans 3 DECISION MAKING

Decision making is the process of making choices by identifying a decision, gathering information, and
assessing alternative resolutions. Using a step-by-step decision-making process can help you make
more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.

PROCESS
1. Define the Problem: Get clarity on the actual business problem by examining the symptoms and
gathering input from all stakeholders. State the problem clearly in business terms. Avoid technical
jargon.

2. Know the Strategic Agenda: Find out what is on the strategic agenda of the organization.
Ensure that the business problem outlined aligns with the direction of the organization.

3. Identify the Desired Outcome: Know exactly what you want to see happen. Know your goals
and objectives before you consider the route to get there.

4. Establish the Solution Domain: Consider ideas that might work within the Solution Domain,
that is, within the goals, objectives, rules and constraints of the organization. The Solution
Domain establishes the context and approach for which alternative solutions can be considered.

5. Identify Alternative Solutions: Brainstorm ideas. Have an open session where all ideas are
tossed into the ring with no judgment. Refrain from implementation thinking. Focus on solution
alternatives. Choose a minimum of three possible solutions per business problem.

6. Establish the Evaluation Criteria: Become clear on what is important by creating a list of
criteria. Define each of these criteria. Establish the decision-making approach and ensure that the
approach fits within the context of the organization.

7. Go for It: Choose one solution. Enact it. Allow time for it to work.

8. Evaluate: Investigate to decide if the solution has been successful. If a satisfactory result has
not been achieved, revisit and rethink the solution. Make adjustments as necessary. For some
things this is an ongoing process.
Importance of decision making
1 Implementation of managerial function: Without decision making different managerial
function such as planning, organizing, directing, controlling, staffing cant be conducted

2. Pervasiveness of decision making: the decision is made in all managerial activities

and in all functions of the organization. It must be taken by all staff. Without decision making
any kinds of function is not possible. So it is pervasive.

3. Evaluation of managerial performance: Decisions can evaluate managerial

performance. When decision is correct it is understood that the manager is qualified, able
and efficient. When the decision is wrong, it is understood that the manager is disqualified.
So decision making evaluate the managerial performance.

4. Helpful in planning and policies: Any policy or plan is established through decision
making. Without decision making, no plans and policies are performed. In the process of
making plans, appropriate decisions must be made from so many alternatives.

Ans4 Controlling
Control management means setting standards, measuring actual performance and taking corrective
action.
Two Levels of Control: Strategic and Operational
strategic control is concerned with tracking the strategy as it is being implemented, detecting any
problem areas or potential problem areas suggesting that the strategy is incorrect, and making any
necessary adjustments. [2] Strategic controls allow you to step back and look at the big picture and make
sure all the pieces of the picture are correctly aligned.

Operational control, in contrast to strategic control, is concerned with executing the strategy. Where
operational controls are imposed, they function within the framework established by the strategy.
Normally these goals, objectives, and standards are established for major subsystems within the
organization, such as business units, projects, products, functions, and responsibility centers.

Controlling Process consists of following systematic steps:

1. Setting Performance Standards:

The first step in the process of controlling is concerned with setting performance standards. These
standards are the basis for measuring the actual performance.
Thus, standards act as a lighthouse that warns & guides the ships at sea. Standards are the benchmarks
towards which efforts of entire organisation are directed. These standards can be expressed both in
quantitative and qualitative terms.

2. Measurement of Actual Performance:

Once the standards have been determined, the next step is to measure the actual performance. The
various techniques for measuring are sample checking, performance reports, personal observation etc.
However, in order to facilitate easy comparison, the performance should be measured on same basis that
the standards have.

3. Comparing Actual Performance with Standards:

This step involves comparing the actual performance with standards laid down in order to find the
deviations. For example, performance of a salesman in terms of unit sold in a week can be easily
measured against the standard output for the week.

4. Analysing Deviations:

Some deviations are possible in all the activities. However, the deviation in the important areas of
business needs to be corrected more urgently as compared to deviation in insignificant areas.
Management should use critical point control and management by exception in such areas.

5. Taking Corrective Action:

The last step in the process of controlling involves taking corrective action. If the deviations are within
acceptable limits, no corrective measure is required. However, if the deviations exceed acceptable limits,
they should be immediately brought to the notice of the management for taking corrective measures,
especially in the important areas.

Ans 5 MOTIVATION
Motivation is the driving force behind all people's actions. Behavioral psychologists have conducted
research investigating why people behave the way they do. Entrepreneurs who understand the theories
that were developed from this research about what makes people tick learn how to motivate purchasers
to buy their products and use their services. Employers also want to find the key that motivates workers to
work diligently and productively The act or process of giving someone a reason for doing
something : the act or process of motivating someone

the condition of being eager to act or work : the condition of being motivated

a force or influence that causes someone to do something

Theories of motivation

1. Hertzbergs Two-Factor Theory

1. Motivator factors Simply put, these are factors that lead to satisfaction and motivate employees
to work harder. Examples might include enjoying your work, feeling recognised and career progression.
2. Hygiene factors These factors can lead to dissatisfaction and a lack of motivation if they are
absent. Examples include salary, company policies, benefits, relationships with managers and co-
workers.

2. Maslows Hierarchy of Needs

The Hierarchy of Needs theory was coined by psychologist Abraham Maslow in his 1943 paper A
Theory of Human Motivation.

The crux of the theory is that individuals most basic needs must be met before they become motivated to
achieve higher level needs.

The hierarchy is made up of 5 levels:

1. Physiological these needs must be met in order for a person to survive, such as food, water
and shelter.
2. Safety including personal and financial security and health and wellbeing.
3. Love/belonging the need for friendships, relationships and family.
4. Esteem the need to feel confident and be respected by others.
5. Self-actualisation the desire to achieve everything you possibly can and become the
most that you can be.

3 Expectancy Theory
Expectancy Theory proposes that people will choose how to behave depending on the outcomes they
expect as a result of their behaviour. In other words, we decide what to do based on what we expect the
outcome to be. At work, it might be that we work longer hours because we expect a pay rise.

Expectancy Theory is based on three elements:

1. Expectancy the belief that your effort will result in your desired goal. This is based on your past
experience, your self confidence and how difficult you think the goal is to achieve.
2. Instrumentality the belief that you will receive a reward if you meet performance expectations.
3. Valence the value you place on the reward.

Ans 6 LEADERSHIP

Leadership is a process by which an executive can direct, guide and influence the behavior and work of
others towards accomplishment of specific goals in a given situation. Leadership is the ability of a
manager to induce the subordinates to work with confidence and zeal.

According to Keith Davis, Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.

Characteristics of Leadership

1. It is a inter-personal process in which a manager is into influencing and guiding workers towards
attainment of goals.
 2. It denotes a few qualities to be present in a person which includes intelligence, maturity and
personality.

3. It is a group process. It involves two or more people interacting with each other.

4. A leader is involved in shaping and moulding the behaviour of the group towards accomplishment
of organizational goals.

5. Leadership is situation bound. There is no best style of leadership. It all depends upon tackling
with the situations.

Importance of Leadership

Leadership is an important function of management which helps to maximize efficiency and to achieve
organizational goals. The following points justify the importance of leadership in a concern.

1. Initiates action- Leader is a person who starts the work by communicating the policies and plans
to the subordinates from where the work actually starts.

2. Motivation- A leader proves to be playing an incentive role in the concerns working. He

motivates the employees with economic and non-economic rewards and thereby gets the work
from the subordinates.

3. Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to perform
their work effectively and efficiently.

4. Creating confidence- Confidence is an important factor which can be achieved through

expressing the work efforts to the subordinates, explaining them clearly their role and giving them
guidelines to achieve the goals effectively. It is also important to hear the employees with regards
to their complaints and problems.

5. Building morale- Morale denotes willing co-operation of the employees towards their work and
getting them into confidence and winning their trust. A leader can be a morale booster by
achieving full co-operation so that they perform with best of their abilities as they work to achieve
goals.

THEORIESOF LEADERSHIP

The Trait Theory of Leadership

The search for the characteristics or traits of effective leaders has been central to the study of
leadership. Underlying this research is the assumption that leadership capabilities are rooted in
characteristics possessed by individuals. Research in the field of trait theory has shown significant
positive relationships between effective leadership and personality traits such as intelligence,
extroversion, conscientiousness, self-efficacy, and openness to experience. These findings also
show that individuals emerge as leaders across a variety of situations and tasks.

The Contingency Theory of Leadership

Stogdill and Mann found that while some traits were common across a number of studies, the overall
evidence suggested that persons who are leaders in one situation may not necessarily be leaders in other
situations. According to this approach, called contingency theory, no single psychological profile or set of
enduring traits links directly to effective leadership. Instead, the interaction between those individual
traits and the prevailing conditions is what creates effective leadershipThe Behavioral Theory of
Leadership
In response to the early criticisms of the trait approach, theorists began to research leadership as a set
of behaviors. They evaluated what successful leaders did, developed a taxonomy of actions, and
identified broad patterns that indicated different leadership styles. Behavioral theory also incorporates B

Ans 7 COMMUNICATION

Communication is sending and receiving information between two or more people. The person sending
the message is referred to as the sender, while the person receiving the information is called the receiver.
The information conveyed can include facts, ideas, concepts, opinions, beliefs, attitudes, instructions and
even emotions.

Types of Communication

Methods of communication vary, and you are almost certainly familiar with all of them. Let's take a look at
some of the primary methods.

Verbal communication is simply sending a message through a spoken language that is

understood by both the sender and receiver of the message. Examples of verbal communications
include face-to-face talking, listening to a lecture or seminar, and listening to a television program.
In fact, if you are listening to this lesson, you are engaged in a verbal form of communication.

Written communication is sending a message by the use of symbols that are understood by both
the sender and receiver of the message. If you are reading the transcript of this lesson, you are
engaged in written communication.

PROCESS OF COMMUNICATION

Communication may be defined as a process concerning exchange of facts or ideas between persons
holding different positions in an organisation to achieve mutual harmony. The communication process is
dynamic in nature rather than a static phenomenon.

Communication process as such must be considered a continuous and dynamic inter-action, both
affecting and being affected by many variables

(1) Sender:
The person who intends to convey the message with the intention of passing information and ideas to
others is known as sender or communicator.

(2) Ideas:

This is the subject matter of the communication. This may be an opinion, attitude, feelings, views, orders,
or suggestions.

(3) Encoding:

Since the subject matter of communication is theoretical and intangible, its further passing requires use of
certain symbols such as words, actions or pictures etc. Conversion of subject matter into these symbols is
the process of encoding.

(4) Communication Channel:

The person who is interested in communicating has to choose the channel for sending the required
information, ideas etc. This information is transmitted to the receiver through certain channels which may
be either formal or informal.

(5) Receiver:

Receiver is the person who receives the message or for whom the message is meant for. It is the receiver
who tries to understand the message in the best possible manner in achieving the desired objectives.

(6) Decoding:

The person who receives the message or symbol from the communicator tries to convert the same in
such a way so that he may extract its meaning to his complete understanding.

(7) Feedback:

Feedback is the process of ensuring that the receiver has received the message and understood in the
same sense as sender meant it.