Nature of Management

1.3 NATURE OF MANAGEMENT

1. Management is an activity
2. Management is a purposeful activity.
3. Management is concerned with the efforts of a group
4. Management applies economic principles.
5. Management involves decision making.
6. Management is getting things done through others.
7. Management is an integrating process.
8. Management co-ordinates all activities and resources.
8.1. Management is a universal activity.
8.2. Management is dynamic not rigid.

1.4 IMPORTANCE OF MANAGEMENT

1] Management is goal oriented:-
Management is concern with achievement of specific goals. It is always directed towards achievement of
objectives. The success of management is measured by the extent to which objectives are achieved.
2] Management is associated with group efforts:-
The business comes into existence with certain objectives which are to be achieved by a group and not
by one person alone. Management gets things done by, with and through the efforts of group members.
It co-ordinates the activities and actions of its members towards a common goal.
3] Management is intangible:-
It is an unseen force, its presence can be evidence by the result of its efforts up to date order but they
generally remain unnoticed, Where as mismanagement is quickly noticed.
4] Management is an activity and not a person or group of person:-
Management is not people or not a certain class but it is the activity, it is the process of planning,
organizing, directing and controlling to achieve the objectives of the organization.
5] Management is situational:-
Management does not advice best way of doing things. Effective management is always situational. A
manager has to apply principles, approaches and techniques of management after taking into
consideration the existing situations.
6] Management is universal:-
Most of the principles and techniques of management are universal in nature. They can be applied to
government organization, military, educational institutes, religious institutes etc. They provide working
guidelines which can be adopted according to situations.
7] Management is concern with people:-
Since management involves getting things done through others only human being performed this
activity with the help of planning and control. The element man can not be separated from the
management.
8] Management is the combination of art, science and profession:-
Management makes use of science as well as art. It is science because it collects knowledge with the
methods and data, analyzes and measures it and decision is taken with the help of experiment. It is a
systematic body of knowledge. Art means application of knowledge for solving various problems. In
modern times there is separation of ownership and management, so professional experts are
appointed.
Limitations of Planning

 Rigidity. Planning has tendency to make administration inflexible. ...

 Misdirected Planning. Planning may be used to serve individual interests rather than the interest
of the enterprise. ...
 Time consuming. ...
 Probability in planning. ...
 False sense of security. ...
 Expensive.
Following are the limitations of planning:
 (1) Planning Creates Rigidity: ...
 They are the following:
 (i) Internal Inflexibility: ...
 (ii) External Inflexibility: ...
 (2) Planning Does Not Work in a Dynamic Environment: ...
 (3) Planning Reduces Creativity: ...
 (4) Planning Involves Huge Costs: ...
 (5) Planning is a Time-consuming Process

Decision Making Process

The decision‐making process involves the following steps:
1.Define the problem.
2.Identify limiting factors.
3.Develop potential alternatives.
4.Analyze the alternatives.
5.Select the best alternative.
6.Implement the decision.
7.Establish a control and evaluation system.

Authority Relationships: • Authority, according to Fayol, is the principle that managers have the right to
give orders with the expectation of obedience. • Authority is something that is granted to people.
Authority can be demanded, taken or usurped, but in order for it to really work for the betterment , it is
usually granted.
4. Authority Relationships: The organisation structure of a business enterprise consists of three types of
authority relationships: • Line authority • Staff authority • Functional authority
5. Line authority: Line refers to those positions & elements of the organisation , which have the
responsibility & authority & are accountable for accomplishment of primary objectives • Line authority
gives a supervisor a line of authority over a subordinate • Scalar principle in organization • Example :
Production manager Marketing manager
6. Staff authority: • Staff refer to those elements which have responsibilty & authority for providing
advice & service to line in attainment of objectives. • The nature of staff relationship is advisory • Staff
elements facilitate the decision process by bringing in expert & specialised knowledge • Example :
Industrial engineer Market research manager Internal auditor
7. Types of staff: Staff may be divided into the following three categories: • Personal staff • Specialised
staff • General staff
8. Functional Authority: • It is the right delegated to an individual or a department to control specified
processes, practices, policies or other matters relating to activities undertaken by persons in other
departments
9. Types Of Authority: There are different types of authority: • Positional authority • Coercive authority
(also referred as penalty authority) • Expert authority • Referent authority • Reward authority

Principles of delegation of authority

1. Principle of parity of authority and responsibility– parity of authority and responsibility is one of the
important principles of delegation of authority. There is equality in assigned task and power to do the
work. Authority to the subordinates is given by the superior on the basis of assigned task. So Authority
to the subordinates is given nether more or less than the task otherwise their can be improper
utilization of authority and mismanagement of task.

2. Principle of absoluteness of responsibility– according to it, responsibility can’t be delegated. Only

authority can be delegated. The person who delegates authority is himself responsible for his seniors.

3. Principle of unity of command– according to it, subordinates must be commanded by one superior,
they should take their task from one superior and should be accountable fro their responsibility toward
the superior level of operation

4. Principle of functional definition of authority and responsibility– as per this principle. Duties and task
assigned by the superior and the authority given to fulfill the task should be clearly explained and
decided. Bt this subordinates can know about the limit of one’s right, duties and responsibility.

5. The scalar chain– according to it, authority flows from top to bottom. So that scalar chain is the basis
of relationship between the superior and subordinates. It emphasizes the relation between superior and
subordinates by which delegation will be easier.

Functions of a Supervisor
 Helping the team understand performance targets and goals.
 Training or ensuring that workers are properly trained for their specific roles.
 Scheduling work hours and shifts.
 Coordinating job rotation and cross-training.
 Providing real-time feedback on worker performance.

Techniques of Coordination
Managers use a variety of techniques for achieving coordination. The main techniques for
effective coordination are as follows:
1. Sound Planning
Coordination facilitates sound planning in the organization. The plan, policies, and
comprehensive programs prefer coordination of activities and individuals. Standard
procedures and rules create uniformity in repetitive operations. Thus, coordination is
regarded as an essential element for sound planning
2. Sound Organizational Structure
A sound organizational structure contributes to effective coordination. It clearly defines the
authority relationship which provides an effective means of integrating the activities of
different departments. It clearly defines the authority relationships which provide an effective
means of integrating the activities of different units. A sound organizational structure has the
clear meaning of authority.
3. Clearly defined Objectives
The goal of the organization must be clearly defined. The individual in the organization
should understand the overall objectives. The contribution of their jobs helps to attain the
overall objectives. For achieving proper coordination, there must be unity of purpose.
4. Maintaining Co-operation
Co-operation is the result of maintaining good relationship among the people in the
organization. It depends on sound policies and procedures. Informal contacts should be
encouraged to supplement formal communication.The coordination is more effective and
long lasting when the organization achieves the voluntary co-operation of employees.
5. Formation of Committees
A committee is a group of a person entrusted with functions collectively as a group. The
decisions of committee are easy to be implemented as all who are represented are bound to
follow committee decisions. It promotes coordination through better and free interchange of
ideas, feelings, and opinions. All who are represented on the committee are bound to follow
the committee decisions.
6. Comprehensive Policies and Programs
Coordination becomes very easy if there are well-defined and comprehensive policies and
programs. This brings uniformity in action because everyone understands the policies and
programs in the same sense. These are also good tools for coordination as they provide the
timetable, schedules etc.
7. Voluntary Cooperation
Coordination is more effective and long lasting when it is achieved through the voluntary
cooperation of employees. Cooperation is the result of harmonious relations among the
people of the organizations. Informal contacts should be encouraged to supplement formal
communication. Voluntary co-operation can be developed among the employees by
encouraging them through contacts and communications.
8. Effective Communication
A good communication system contributes to effective coordination by promoting mutual
understanding and cooperation among various individuals. The communication should be
direct as far as possible to avoid any misunderstanding through misinterpretations. When the
different functional groups are represented in the decision-making process the coordination
becomes easier. Coordination is impossible without effective communication.
9. Simplified Organization
A simple and sound organization is an important means of coordination. The organization
structure of a line of authority and responsibility from top to the bottom should be clearly
defined. The definition of authority and responsibility of each department and individual
helps to avoid conflicts.
10. Effective Leadership and Supervision
Effective leadership facilitates coordination efforts in the planning and the execution stage.
The activities of the subordinates can be continuously guided by a good leader in the right
direction. It can inspire to pull them together for the accomplishment of the common
objectives. Sound leadership can persuade subordinates to have an identity of interests. It
also helps to adopt a common outlook. The effective leadership reduces the dependence on
such formal means of coordination.
11. Staff Meetings or Conferences
The Meeting and conference provided to the staffs is a platform for discussion and solution
of various problems faced by the departments. Staff meetings and conferences may be highly
effective in the promotion of coordination. It helps to learn new things. It provides the
subordinates an opportunity to bring up the problems.
12.Chain of Command
The Chain of command is one of the most important methods of coordination. The supreme
coordinating power in an organization is the authority. The exercise of authority through the
chain of command or hierarchy is the traditional means of coordination. The different parts
of an organization are brought together through the chain of command. It also relates them to
a central authority.
13. Indoctrination
Indoctrination refers to the religious idea. Indoctrinating the organizational members with the
goals and mission is also the essential techniques of the organization. It can transform a
neutral body into a committed body.
14. Incentives
Incentives refer to something that encourages someone to do something. In the coordination,
incentives may be used to rebate the interest and to reduce conflicts. For instance, profit
helps in promoting team spirit and cooperation between employers and workers.
15. Liaison Departments
It is necessary to contact between different organizational units, for this the liaison officers
may be employed. A liaison department ensures the meeting of production depart¬ment,
delivery of dates, and specifications by the sales department. Special coordinators may be
appointed in the certain asset.

Process of Controlling

Controlling as a management function involves following steps:

Establishment of standards- Standards are the plans or the targets which have to be
achieved in the course of business function. They can also be called as the criterions for
judging the performance. Standards generally are classified into two-

Measurable or tangible - Those standards which can be measured and expressed are called as
measurable standards. They can be in form of cost, output, expenditure, time, profit, etc.

Non-measurable or intangible- There are standards which cannot be measured monetarily.

For example- performance of a manager, deviation of workers, their attitudes towards a
concern. These are called as intangible standards.

Controlling becomes easy through establishment of these standards because controlling is

exercised on the basis of these standards.
Measurement of performance- The second major step in controlling is to measure the
performance. Finding out deviations becomes easy through measuring the actual
performance. Performance levels are sometimes easy to measure and sometimes difficult.
Measurement of tangible standards is easy as it can be expressed in units, cost, money terms,
etc. Quantitative measurement becomes difficult when performance of manager has to be
measured. Performance of a manager cannot be measured in quantities. It can be measured
only by-

Attitude of the workers,

Their morale to work,
The development in the attitudes regarding the physical environment, and
Their communication with the superiors.
It is also sometimes done through various reports like weekly, monthly, quarterly, yearly
reports.

Comparison of actual and standard performance- Comparison of actual performance with

the planned targets is very important. Deviation can be defined as the gap between actual
performance and the planned targets. The manager has to find out two things here- extent of
deviation and cause of deviation. Extent of deviation means that the manager has to find out
whether the deviation is positive or negative or whether the actual performance is in
conformity with the planned performance. The managers have to exercise control by
exception. He has to find out those deviations which are critical and important for business.
Minor deviations have to be ignored. Major deviations like replacement of machinery,
appointment of workers, quality of raw material, rate of profits, etc. should be looked upon
consciously. Therefore it is said, “ If a manager controls everything, he ends up controlling
nothing.” For example, if stationery charges increase by a minor 5 to 10%, it can be called as
a minor deviation. On the other hand, if monthly production decreases continuously, it is
called as major deviation.
Once the deviation is identified, a manager has to think about various cause which has led to
deviation. The causes can be-

Erroneous planning,
Co-ordination loosens,
Implementation of plans is defective, and
Supervision and communication is ineffective, etc.

Taking remedial actions- Once the causes and extent of deviations are known, the manager
has to detect those errors and take remedial measures for it. There are two alternatives here-
Taking corrective measures for deviations which have occurred; and
After taking the corrective measures, if the actual performance is not in conformity with
plans, the manager can revise the targets. It is here the controlling process comes to an end.
Follow up is an important step because it is only through taking corrective measures, a
manager can exercise controlling.
How to manage innovation in current scenario
Effectively Managing Innovation
Be Exemplary. Words alone are insufficient. ...
Expose And Respect The Innovation Process. A hidden process opens the door to anything and
everything – and closes the door for innovators. ...
Facilitate The Process. ...
Recognize Step-By-Step Success. ...
Start Talking. ...
Build Bridges – Bust Barriers. ...
Focus On The Customer. ...
Open-Up

Different approaches to management

Various approaches to management

Pre Classical Theorist developed specific techniques to solve some identified problems and integrated
management with their respective areas of specialization CONTRIBUTORS : Robert Owen – Pioneer of
human research management Advocated the welfare of workers Charles Babbage – Inventor and
management scientist Built the practical mechanical calculator Showed the necessity of profit sharing
Andrew Ure – Emphasized the necessity of management education Henry Robinson Towne –
Emphasized the significance of business skills
3. BUREAUCRATIC ADMINISTRATIVE SCIENTIFIC APPROACH APPROACH APPROACH
4. Lays emphasis on authority structures & description of organization.Treats the organization as a
closed system.Based on practicing and experience of managers, principles aredeveloped.Formal
education and training is emphasized for developingmanagements skillsEmphasis on economic
efficiency and formal structure.
5. MERITS Offers convenient framework for education & training. Helpful for drawing common
principles out of past experiences. Focuses attention on what managers actually do. Provides
scientific basis for management practice. Highlights the universal nature of management.
SHORTCOMINGS Strict adherence to rules & regulations of the organization . it undermines the role of
human factor. It is viewed as a closed system having no interaction with the environment. Relying too
much on past experiences is bad. The total reality, in case studies, is absent.
6. Henry Fayol “ Father of Administrative Management Theory” explained management in terms of 5
functions namely, Planning, Organizing, Commanding, Co-ordinating and controlling. Fayol’s general
principles of management Division of Work Authority & Responsibility Discipline Unity of Command
Unity of Direction Subordination of individual to general interests. Remuneration Centralization Scalar
Chain Order Equity Stability of Tenure Initiative Esprit de Corps (“Team Strength”) CRITICISMS: Theory
said to be too formal. Did Not pay adequate attention to
7. Concerned with knowing exactly what we want men to do and seethat they do it in the best and te
cheapest way possible.Frederick Winslow Taylor “ Father of Scientific Mangement” came upwith this
during the Industrial Revolution.Elements and Tools of Scientific ManagementTime and Motion Study
Separation of Planning and doingJob Analysis StandardizationScientific Recruitment & Financial
IncentivesTraining
8. MERITS:Tools and physical activities in a job can be better balanced andorganizedComprehends how
important scientific selection of workers is andcomprehended that a person cannot do a job properly
withoutcapability and training.It encourages mangers to seek the “one best way” of doing a job.
9. BEHAVIOURAL THEORYSOCIO-TECHNICAL SYSTEMS APPROACHCO-OPERATIVE APPROACHGROUP
BEHAVIOR APPROACHINTER-PERSONAL BEHAVIOR APPROACHHUMAN RELATION APPPROACHSOCIAL
SYSTEM APPROACH
10. The behavioral school of management emphasized what the classical theorists ignored – the
human element. Behavioral theorists viewed organization from individual’s point of view. It
emphasizes individual attitudes and behaviors and group processes, and recognized the significance of
behavioral processes in the workplace. DE-MERITS Often not integrated with management concepts,
principles, theory and techniques. Need for closer integration with organisation structure design,
staffing, planning and controlling
11. Positive effect on social system, personal attitudes & group behaviour. Focus on production,
office operations, and other areas with close relationships between technical system and people. DE-
MERITS Emphasis only on blue-collar and lower-level office work. Ignores much of other managerial
knowledge
12. Concerned with both interpersonal and group behavioural aspects leading to a system of co-
operation. Concept includes any cooperative group with a clear objective. DE-MERITS Overlooks many
managerial concepts, principles, and techniques being a broad field in the study of management.
13. The behavioral school of management emphasized what the classical theorists ignored – the
human element. Behavioral theorists viewed organization from individual’s point of view. It
emphasizes individual attitudes and behaviors and group processes, and recognized the significance of
behavioral processes in the workplace. DE-MERITS Often not integrated with management concepts,
principles, theory and techniques. Need for closer integration with organisation structure design,
staffing, planning and controlling
14. Focus on interpersonal behaviour, human relations, leadership, and motivation. Based on
individual psychology. DE-MERITS Ignores planning, organizing, and controlling. Psychological training
is not enough to become an effective manager.
15. Helps managers deal more effectively with the “people side” or “human side” of the organization.
Employees not only have economic needs but also psychological and social needs. Employees prefer
self-control and self-direction. Employee oriented democratic participative style of management is
more effective than mechanic task-oriented style DE-MERITS Productivity is ignored. Incomplete
Package.
16. This approach says management is a social system composed of people who work in cooperation.
Relationships exist between the external and internal environment of organisation. There should be
harmony between the goals of organisation and goals of the group. Co-operation amongst the group is
necessary.
17. MERITS This approach reflects the interest of all parties and is just not based on desires of one
group alone. DE-MERITS Broader than management and its practices. Overlooks many management
concepts, techniques and principles.
18. QUANTITATIVE/MATHEMATICAL APPROACHSYSTEMS APPROACHCONTINGENCY
APPROACHDECISION THEORY APPROACHRE-ENGINEERING APPROACH
19. Aims at higher degree of precision and perfection by using mathematical and statistical tools.
Offers a systematic and scientific analysis and solution to problems. Consistent use of logical reasoning
to solve problems helps in reducing personal bias and intuition of managers. Involves knowledge and
skill of statistics , engineering, electronics, accounting etc.
20. Dividing a problem into small simple components. Gathering required information on each
component. Analysis of data so collected. Finding out the solutions to the problem in hand.
21. Merits It provides exactness of management principle. It helps the decision maker make better
decisions through informed and reasoned judgments.
22. A system is a set of interdependent subsystems which together perform some function.
Organization is a dynamic system, responsive, sensitive and vulnerable to environmental changes.
Systems approach gives a singular expansive and detail framework to diagnose the problem and decide
which tool or combination of tools will accomplish the task best.
23. Merits It can be used to get a quick perception. It is useful for better planning. Demerits It is
very complicated. It is expensive.

Management as art and Sciences

Management as an art or science or a combination of both, let’s see the words ‘SCIENCE’ and ‘ART’. A
science can be referred to as knowledge about the structure and behavior of the natural and physical
world, based on facts that you can prove. This can be done through experiments. Hence, predictions can
be made from such experiments. ART on the other hand can be seen as a skillful way of doing things.

Management as an Art:

Art refers to the way of doing specific things; it indicates how an object can be achieved. In the words of
George R. Terry, “Art is bringing about of a desired result through the application of skill.” Art is, thus,
skilful application of knowledge which entirely depends on the inherent capacity of a person which
comes from within a person and is learned from practice and experience. In this sense, management is
certainly an art as a manager uses his skill, knowledge and experience in solving various problems, both
complicated and non-complicated that arise in the working of his enterprise successful. In the words of
Ernest Dale, “Management is considered as an art rather than science mainly because managerial skill is
a personnel possession and is intuitive.”

Management as a Science:

Science may be described as a systematized body of knowledge based on proper findings and exact
principles and is capable of verification. It is a reservoir of fundamental truths and its findings apply
safely in all the situations. In this sense, management is a science as it has also developed some
systematized knowledge. Like other sciences, management has also developed certain principles, laws,
generalization, which are universal in nature and are applicable wherever the efforts of the people are
to be coordinated. But management is not as exact science as other physical sciences like physic,
chemistry, biology, astronomy etc. The main reason for the inexactness of science of management is
that it deals with the people and it is very difficult to predict their behavior accurately. In this way,
management falls in the area of ‘social sciences’. Thus, it is a social science.

Conclusion- Management is an Art and Science Both

From the above study, we conclude that management is an art and science both. According to American
Society of Mechanical Engineers. “Management is the art and science of preparing, organizing and
directing human efforts to control the forces and utilize the material of nature for the benefit of men.
STEPS IN PLANNING PROCESS
Important Steps in Planning Process
Planning involves a number of steps ranging from determining the objectives to follow-up action as
detailed below.

The main steps that are taken in planning process are as follows:

1. Establishing Objectives:
Establishing the objectives is the first step in planning. Plans are prepared with a view to achieve certain
goals. Hence, establishing the objectives is an important step in the process of planning. Plans should
reflect the enterprise’s objectives. Objectives should clearly define as to what is to be achieved by
policies, procedures, rules, strategies, budgets and programmes. Plan must make sure that every activity
undertaken contributes to the achievement of objectives.

The objectives fixed must clearly indicate what is to be achieved, where action should take place, who is
to perform it, how it is to be undertaken and when it is to be accomplished. That is, managers should be
able to restate the objectives of the firm in definite and clear terms that will motivate examination and
evaluation of performance against targeted performance in the plan. Objectives should be measurable.

2. Determining Planning Premises

This is the second step in planning. Premises include actual forecast data, policies and plans of the
enterprise. Planning involves looking into the future which necessitates the enterprise to know, how
future conditions will affect its activities. Thus, forecasting is an important step in planning. There are
two types of forecasting namely,

Prediction of general economic conditions.

Prediction of market conditions for a specific product or service dealt with by the enterprise.
Keeping the general economic conditions in mind, a study of the industry is made. Then the manager
proceeds to make a study of his company’s share of the market. Forecasting will reveal those areas
where control is lacking. Planning will be reliable when the forecast methods are accurate. Hence, the
success of the planning depends very much upon the forecasts.

3. Determining Alternative Courses

Determining alternative courses is the third step in the planning process. The planner should study all
the alternatives, consider the strong and weak points of them and finally select the most promising
ones.

4. Evaluating Alternative Courses

Alternative courses so selected should be evaluated in the light of premises and goals. Evaluation
involves the study of performance of various actions. Various factors such as profitability, investment
requirements, etc., of such alternatives should be weighed against each other. Each alternative should
be closely studied to determine its suitability.

Many other factors such are uncertain future trend, problems faced financially, future uncertainties
renders the evaluation process, complex and difficult. Usually, alternative plans are evaluated against
factors such as cost, risks, benefits, organizational facilities, etc. Computer based mathematical plans
and techniques can also be utilized to identify best course of action.
5. Selecting the Best Course
After having evaluated the various alternatives, the most suitable alternative is selected. With this, the
plan can be considered to have been adopted. It is exactly the point at which decisions are made.
Sometimes, in the best interests of the enterprise, several alternative courses can be adopted.

6. Formulating Derivative Flans

Planning is not complete as soon as the best course is selected. The main plan should be supported by a
number of derivative plans. Within the framework of a basic plan, derivative plans are formulated in
each functional area. Segregation of master plan into departmental, sectional and individual plans, helps
to understand the real nature of future uncertainties. To make the planning process more effective, it
should also provide for a feedback mechanism. These plans are meant for the implementation of the
main plan.

7. Implementation of Plans
Implementation of plans is the final step in the process of planning. This involves putting the plans into
action so as to achieve the business objectives Implementation of plans requires establishment of
policies, procedures, standards, budgets, etc.

Guidelines in effective decision making

guidelines to help decision makers and strategists turn even the most complex issues into opportunities:

1. Identify the causes and effects of the problem across social, economic and environmental dimensions.
The system is characterized by feedbacks, which may create synergies or cause the emergence of side
effects.
2. Use a multi-stakeholder approach to take a variety of points of view into consideration and to
incorporate as much varied knowledge as possible in the analysis.
3. Evaluate the impacts across sectors and find a balanced strategy aimed at improving the entire
system’s performance rather than a strategy aimed at maximizing some areas at the expense of others.
4. Evaluate the impacts across actors and find an inclusive strategy that will allocate the costs
consistently and distribute the benefits fairly across the key actors in the system.
5. Think long term and prioritize resilience because success often depends on resilience in the light of
unforeseen events, which means focusing on increasing a system’s capacity to absorb change and adapt
to it with clear, long-term goals.
6. Monitor the performance of the system to learn how—there will be many ways—systems respond to
strategy and policy implementation, which provides an opportunity to—step by step—improve decision
making by learning about the causes of success and failure to implement these.

Advantages of Centralization:
 Standardization of Procedures and Systems: ADVERTISEMENTS: ...
 Facilitates Evaluation: ...
 Economies: ...
 Co-ordination of Activities: ...
 Destroys Individual Initiative: ...
 Over Burden of Few: ...
 Slows Down the Operations: ...
 Distance from Customers:
Advantages of Decentralization
Decentralization comes with many advantages…
First it helps managers make better, more timely decisions. Lower level managers have first-hand
information and experience with how their departments operate, and are more acquainted with the
common problems and concerns of their departments. This makes them better able to respond to local
circumstances compared to their senior counterparts. Lower level managers also work more closely with
employees and customers; this more proximate position, along with the absence of bureaucratic
hierarchy, allows them to make timely decisions and respond promptly to issues at hand.
Second, it eases the burden on top management. Decentralization frees senior management from the
burden of running the day to day operations of the business. They're relieved of what others
call management firefighting - that is, the day to day fixing of problems. Hence, senior management can
focus their time and attention on more important management functions like long-term planning,
dealing with major customers and suppliers, evaluating and making investment and financing decisions,
etc.
Third, it empowers and motivates lower level management and employees. Giving lower level managers
decision-making authority empowers them and motivates them to contribute more towards the
attainment of the organization's goals. Further, decentralization and the granting of local autonomy
actually promote closer, more integrated sub-units. This boosts employee morale as employees get
more involved in the decision-making processes of their sub-units.
Fourth, it facilitates the development of junior management. The delegation of authority provides a
good opportunity and training ground for junior managers. They get the opportunity to develop their
talents and managerial skills, preparing them for senior management positions when the time comes.
Lastly, it facilitates diversification. A more centralized organization, where authority is concentrated in
top management, would really find it difficult to diversify activities, products, and markets. A
decentralized structure supports a diversified company. A company that is divided into sub-units can
easily work around different markets, product lines, and segments.
Corporate Strategy
Corporate strategy is hierarchically the highest strategic plan of the organization, which defines the
corporate goals and ways of their achieving within strategic management. A vision and mission are parts
of the strategy.
A curated view of global trends
For trends to impact business decisions they must have demonstrable financial impact and direct
influence on the behavior of consumers, governments and businesses. The breadth of this impact must
span geographies and industries. Finally, it must be clear how a trend’s impact will manifest itself in an
actionable business planning horizon. With these criteria in mind, our Global Forces team developed a
curated list of 75 global trends that we believe will critically shape your business decisions over the next
5 to 10 years.
Form your perspective: On the global forces inspiring a new narrative of progress
Invite a member of our team to present an overview of the global forces shaping your strategic context
to your senior management team or board of directors.
The Collisions Approach
The Collisions Approach is a systematic way for you to capture trends in your strategy. It is a creative
process that enables your leadership team to rapidly combine multiple trends, facts, and perspectives to
identify the “market-shaping force” that have the power to significantly shift spending and profit pools.
These forces form the basis for you to pinpoint new investment opportunities, mitigate risks, stress-test
an existing strategy, or craft a new strategic direction.
Strategy Analytics Center
Our Strategy Analytics Center (STAC) helps leaders make sense of internal and external data on
corporate performance, macroeconomic changes, and global and local trends so that executives can
develop more robust strategies for creating value, identifying business opportunities, and pursuing
growth.
There are strategies you can use to avoid common pitfalls and hone your decision-making skills. Making
better, faster decisions will help you take advantage of business opportunities and avoid pitfalls.
Good decision-makers:
1. Evaluate circumstances, consider alternatives and weigh pros and cons.
2. Use critical-thinking skills to reach objective conclusions.
3. Are able to make decisions under pressure.
4. Opt for a “problem-solving” attitude, as opposed to a “that's not my job” approach.
5. Help teams overcome obstacles.

Difference Between Direction And Supervision

Major differences between direction and supervision are as follows:
1. Meaning

Direction: It refers to issuing orders and instructions and motivating subordinates to achieve the
objectives and goals.

Supervision: It refers to observing the progress of assigned tasks of employees or subordinates.

2. Scope

Direction: It is a wider management term. Direction includes supervision, leadership, motivation,

coordination and communication.

Supervision: It is one of the elements of direction. So its scope is narrower.

3. Contact

Direction: It may take place with face-to-face contact or without face-to-face contact with
subordinates.

Supervision: It is possible only with direct face-to-face contact with subordinates.

Essential Requirements of a Good Control System

The control system should always focus on objectives. It should aim to achieve the objectives of
the organisation.

Essential Requirements of a Good Control System

2. Suitability

The control system should be suitable to the needs of the organisation.

3. Promptness

The control system should be prompt. That is, it should find out the deviations quickly. This will
help the management to correct the deviations quickly.

4. Flexibility

The control system should be flexible. It should change according to the changes in plans,
situations, environments, etc. A rigid control system will always fail. Hence flexibility is
necessary for a control system.

5. Forward Looking

The control system should be forward-looking. It should forecast the future deviations. That is, it
should find out the deviations before it happens. It should also take steps to prevent these future
deviations.

6. Economical

The control system should be economical. This means the cost of the control system should not
be more than its benefits.

7. Simplicity

The control system should not be complicated. It should be easy to understand and simple to
use. Those who are going to use the control system should understand it clearly and
completely.

8. Motivating

The control system should be motivating. That is, it should give more importance to preventing
the mistakes and less importance to punishing the employees. So, it should encourage, not
discourage the employees.

9. Suggestive

The control system should be suggestive and it should give complete answers for the following
questions :-

What is the Problem?

Where is the Problem?
How to solve the Problem?
10. Proper Standards

The control system should have proper standards. The standards should be very clear. They
should be definite, verifiable, specific and measurable. They should not be too high or too low

BENCHMARKING

Benchmarking is comparing ones business processes and performance metrics to industry bests and
best practices from other companies. In project management benchmarking can also support the
selection, planning and delivery of projects.[1] Dimensions typically measured are quality, time and cost.
In the process of best practice benchmarking, management identifies the best firms in their industry, or
in another industry where similar processes exist, and compares the results and processes of those
studied (the "targets") to one's own results and processes.