MANAGEMENT IS A UNIVERSAL PHENOMENON. IT IS A VERY POPULAR AND WIDELY USED TERM.

ALL ORGANIZATIONS - BUSINESS, POLITICAL,

CULTURAL OR SOCIAL ARE INVOLVED IN MANAGEMENT BECAUSE IT IS THE MANAGEMENT WHICH HELPS AND DIRECTS THE VARIOUS EFFORTS TOWARDS A DEFINITE PURPOSE.

ACCORDING TO HAROLD KOONTZ, MANAGEMENT IS AN ART OF GETTING THINGS DONE THROUGH AND WITH ACCORDING TO F.W. TAYLOR, MANAGEMENT IS AN ART OF KNOWING

THE PEOPLE IN FORMALLY ORGANIZED GROUPS. IT IS AN ART OF CREATING AN ENVIRONMENT IN WHICH PEOPLE CAN PERFORM AND INDIVIDUALS AND CAN CO-OPERATE TOWARDS ATTAINMENT OF GROUP GOALS. WHAT TO DO, WHEN TO DO AND SEE THAT IT IS DONE IN THE BEST AND CHEAPEST WAY.

MANAGEMENT IS A PURPOSIVE ACTIVITY. IT IS SOMETHING THAT DIRECTS GROUP EFFORTS TOWARDS THE ATTAINMENT OF CERTAIN PRE DETERMINED GOALS. IT IS THE PROCESS OF WORKING WITH AND THROUGH OTHERS TO EFFECTIVELY ACHIEVE THE GOALS OF THE ORGANIZATION, BY EFFICIENTLY USING LIMITED RESOURCES IN THE CHANGING WORLD. OF COURSE, THESE GOALS MAY VARY FROM ONE ENTERPRISE TO ANOTHER. E.G.: FOR ONE ENTERPRISE IT MAY BE LAUNCHING OF NEW PRODUCTS BY CONDUCTING MARKET SURVEYS AND FOR OTHER IT MAY BE PROFIT MAXIMIZATION BY MINIMIZING COST.

1. It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes
the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. 2. Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources. 3. Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. 4. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. 5. Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization. 6. Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society. 7. MGMT IS APPLICABLE TO ALL ORGANIZATION 8. MGMT IS APPLICABLE TO ALL LEVELS OF ORG. 9. IT INCLUDES PLANNING, ORGANIZING, STAFFING, DIRECTING, AND CONTROLLING 10. THE GOAL OF MANAGER IS TO CREATE SURPLUS. 11. AIM OF MANAGER IS TO IMPROVE PRODUCTIVITY, EFFICIENCY AND EFFECTIVENESS.

Functions of Management/Process
Different experts have classified functions of management. According toGeorge & Jerry, There are four fundamental functions of management i.e. planning, organizing, actuating and controlling. According to Henry Fayol, To manage is to forecast and plan, to organize, to command, & to control. Whereas Luther Gullick has given a keyword POSDCORB where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and ODONNEL i.e.Planning, Organizing, Staffing, Directing and Controlling.

1. Planning

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of predetermined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing
It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnels. To organize a business involves determining & providing human and nonhuman resources to the organizational structure. Organizing as a process involves:

Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & ODonell, Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure. Staffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.

4. Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

Supervision Motivation Leadership Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

5. Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation. According to Koontz & ODonell Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished. Therefore controlling has following steps:

. . . .

Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.

Levels of Management
The term Levels of Management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. 2. 3. Top level / Administrative level Middle level / Executory Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows -

a. b. c. d. e. f. g. h.

Top management lays down the objectives and broad policies of the enterprise. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. It prepares strategic plans & policies for the enterprise. It appoints the executive for middle level i.e. departmental managers. It controls & coordinates the activities of all the departments. It is also responsible for maintaining a contact with the outside world. It provides guidance and direction. The top management is also responsible towards the shareholders for the performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as a. b. c. d. e. f. g. h. They execute the plans of the organization in accordance with the policies and directives of the top management. They make plans for the sub-units of the organization. They participate in employment & training of lower level management. They interpret and explain policies from top level management to lower level. They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top level management. They evaluate performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees. In other words, they are concerned with direction and controlling function of management. Their activities include a. b. c. d. e. Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. f. They help to solve the grievances of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers. i. They arrange necessary materials, machines, tools etc for getting the things done. j. They prepare periodical reports about the performance of the workers. k. They ensure discipline in the enterprise. l. They motivate workers. m. They are the image builders of the enterprise because they are in direct contact with the workers.

Types of managers
Functional managers:- managers perform one type of activity, may it be finance, marketing, HRM. People working under finance manager would be engaged in financial related activities. General mangers:- Manger looks after an entire unit or an independent division of an organization. Such as subsidiary of a company. All functional activities like production, finance, marketing, personnel etc. of that unit are taken are by general manager.

Line and staff managers

Line: line functions are those which have direct bearing on the achievement of organization objective.
Staff: refers to those elements of organization that help the line to work effectively in accomplishing the primary objectives of enterprise.

Organization objectives determine the line and staff functions, so any change in objectives may result in change of line and staff functions. Therefore, what is considered staff functions may be line functions in another. Eg- personnel function in employment agency is line function but it will be staff function in manufacturing unit. Read the differentiation between Line & Staff from ppts ROLES OF MANAGER Interpersonal role Figure head Leadership Liaison role Informational role monitoring Disseminator Spokesperson Decision making role Entrepreneur Disturbance and conflict handler Resource allocator negotiator Managerial skills Conceptual skills Human skills Technical skills Design skills

Organizing
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According toChester Barnard, Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results. A manager performs organizing function with the help of following

steps/ Process:-

1. Identification of activities - All the activities which have to be performed in a concern have to be 2. 3.
identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units. Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concerns working. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they

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are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

Importance of Organizing
1. Specialization - Organizational structure is a network of relationships in which the work is divided into 2. 3.
units and departments. This division of work is helping in bringing specialization in various activities of concern. Well defined jobs - Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience. This is helping in defining the jobs properly which clarifies the role of every person. Clarifies authority - Organizational structure helps in clarifying the role positions to every manager (status quo). This can be done by clarifying the powers to every manager and the way he has to exercise those powers should be clarified so that misuse of powers do not take place. Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. This helps in increasing productivity. Co-ordination - Organization is a means of creating co- ordination among different departments of the enterprise. It creates clear cut relationships among positions and ensure mutual co- operation among individuals. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager. Authority responsibility relationships can be fruitful only when there is a formal relationship between the two. For smooth running of an organization, the co- ordination between authority- responsibility is very important. There should be co- ordination between different relationships. Clarity should be made for having an ultimate responsibility attached to every authority. There is a saying, Authority without responsibility leads to ineffective behaviour and responsibility without authority makes person ineffective. Therefore, co- ordination of authority- responsibility is very important.

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5. Effective administration - The organization structure is helpful in defining the jobs positions. The roles 6.
to be performed by different managers are clarified. Specialization is achieved through division of work. This all leads to efficient and effective administration. Growth and diversification - A companys growth is totally dependant on how efficiently and smoothly a concern works. Efficiency can be brought about by clarifying the role positions to the managers, coordination between authority and responsibility and concentrating on specialization. In addition to this, a company can diversify if its potential grow. This is possible only when the organization structure is welldefined. This is possible through a set of formal structure. Sense of security - Organizational structure clarifies the job positions. The roles assigned to every manager is clear. Co- ordination is possible. Therefore, clarity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. This is very important for job- satisfaction. Scope for new changes - Where the roles and activities to be performed are clear and every person gets independence in his working, this provides enough space to a manager to develop his talents and flourish his knowledge. A manager gets ready for taking independent decisions which can be a road or path to adoption of new techniques of production. This scope for bringing new changes into the running of an enterprise is possible only through a set of organizational structure.

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Principles of Organizing
The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager.

1. Principle of Specialization
According to the principle, the whole work of a concern should be divided amongst the subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which results in effective organization.

2. Principle of Functional Definition

According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority

and relationships of people towards each other. Clarifications in authority- responsibility relationships helps in achieving co- ordination and thereby organization can take place effectively. For example, the primary functions of production, marketing and finance and the authority responsibility relationships in these departments shouldbe clearly defined to every person attached to that department. Clarification in the authority-responsibility relationship helps in efficient organization.

3.Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either froma wide or narrow span. There are two types of span of control:-

a. Wide span of control- It is one in which a manager can supervise and control effectively a large group
of persons at one time. The features of this span are:a. Less overhead cost of supervision b. Prompt response from the employees c. Better communication d. Better supervision e. Better co-ordination f. Suitable for repetitive jobs According to this span, one manager can effectively and efficiently handle a large number of subordinates at one time.

b. Narrow span of control- According to this span, the work and authority is divided amongst many
subordinates and a manager doesn't supervises and control a very big group of people under him. The manager according to a narrow span supervises a selected number of employees at one time. The features are:a. Work which requires tight control and supervision, for example, handicrafts, ivory work, etc. which requires craftsmanship, there narrow span is more helpful. b. Co-ordination is difficult to be achieved. c. Communication gaps can come. d. Messages can be distorted. e. Specialization work can be achieved.

3. Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place. A scalar chain of command facilitates work flow in an organization which helps in achievement of effective results. As the authority flows from top to bottom, it clarifies the authority positions to managers at all level and that facilitates effective organization.

5. Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time. This helps in avoiding communication gaps and feedback and response is prompt. Unity of command also helps in effective combination of resources, that is, physical, financial resources which helps in easy co- ordination and, therefore, effective organization. Organization structure:- it provides a formal pattern of interactions and coordination designed by management to link the tasks of individual and groups in achieving the organizational objective. - Kathryn M. Bartol & Davis C. Martin. thus, the organization structure provides a formal relationship to its sub-units which are specialize, integrate, co-ordinate and gear towards the overall goals.

Types of Organization structures

Functional Organization structure Product Organization structure Territorial Organization structure

Functional Grouping jobs by functions performed

Product Grouping jobs by product line

Geographical Grouping jobs on the basis of territory or geography

Functional organization has been divided to put the specialists in the top position throughout the enterprise. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise. The concept of Functional organization was suggested by F.W. Taylor who recommended the appointment of specialists at important positions. For example, the functional head and Marketing Director directs the subordinates throughout the organization in his particular area. This means that subordinates receives orders from several specialists, managers working above them.

Evolution of Management
Classical Approaches a. Scientific Theory F.W.Taylor b. Bureaucratic Max Weber c. Administrative theory Henri Fayol Behavioural Approaches a. Hawthrone Studies- Elton Mayo b. Maslows Theory Abraham Maslow c. Theory X & Y Douglas Mcgregor Quantitative Approaches a. Management Science b. Operations Management c. MIS Modern Approaches a. Systems b. Contingency Emerging theories a. Theory Z William Ouchi b. Quality Mnagement

Scientific school of management Fredrick Winslow Taylor is the father of scientific management. Franklin and Lillian Gilbert Philosophy of scientific management Taylor Science , not role of thumb Harmony not discord Cooperation, not individualism Maximum , not reduced output Development of each employee Practices of scientific management Scientific study and planning of work

 Scientific selection , placement and training Standardization Wage incentive (differential wage rate system) Mental Revolution

Development of Science for each part of mens job (replacement of rule of thumb)
a. b. c. This principle suggests that work assigned to any employee should be observed, analyzed with respect to each and every element and part and time involved in it. This means replacement of odd rule of thumb by the use of method of enquiry, investigation, data collection, analysis and framing of rules. Under scientific management, decisions are made on the basis of facts and by the application of scientific decisions.

Scientific Selection, Training & Development of Workers

d. e. f. g. h. There should be scientifically designed procedure for the selection of workers. Physical, mental & other requirement should be specified for each and every job. Workers should be selected & trained to make them fit for the job. The management has to provide opportunities for development of workers having better capabilities. According to Taylor efforts should be made to develop each employee to his greatest level and efficiency & prosperity.

Co-operation between Management & workers or Harmony not discord

i. j. k. l. Taylor believed in co-operation and not individualism. It is only through co-operation that the goals of the enterprise can be achieved efficiently. There should be no conflict between managers & workers. Taylor believed that interest of employer & employees should be fully harmonized so as to secure mutually understanding relations between them.

Division of Responsibility
m. This principle determines the concrete nature of roles to be played by different level of managers & workers. n. The management should assume the responsibility of planning the work whereas workers should be concerned with execution of task. o. Thus planning is to be separated from execution.

Mental Revolution
p. q. r. s. t. u. v. The workers and managers should have a complete change of outlook towards their mutual relation and work effort. It requires that management should create suitable working condition and solve all problems scientifically. Similarly workers should attend their jobs with utmost attention, devotion and carefulness. They should not waste the resources of enterprise. Handsome remuneration should be provided to workers to boost up their moral. It will create a sense of belongingness among worker. They will be disciplined, loyal and sincere in fulfilling the task assigned to them. There will be more production and economical growth at a faster rate.

Maximum Prosperity for Employer & Employees

w. x. y. The aim of scientific management is to see maximum prosperity for employer and employees. It is important only when there is opportunity for each worker to attain his highest efficiency. Maximum output & optimum utilization of resources will bring higher profits for the employer & better wages for the workers. z. There should be maximum output in place of restricted output. aa. Both managers & workers should be paid handsomely.

Time Study
bb. It is a technique which enables the manager to ascertain standard time taken for performing a specified job. cc. Every job or every part of it is studied in detail. dd. This technique is based on the study of an average worker having reasonable skill and ability. ee. Average worker is selected and assigned the job and then with the help of a stop watch, time is ascertained for performing that particular job. ff. Taylor maintained that Fair days work should be determined through observations, experiment and analysis by keeping in view an average worker. Standard Time Working Hours = Fair Days Work

Motion Study
gg. In this study, movement of body and limbs required to perform a job are closely observed. hh. In other words, it refers to the study of movement of an operator on machine involved in a particular task. ii. The purpose of motion study is to eliminate useless motions and determine the bet way of doing the job. jj. By undertaking motion study an attempt is made to know whether some elements of a job can be eliminated combined or their sequence can be changed to achieve necessary rhythm. kk. Motion study increases the efficiency and productivity of workers by cutting down all wasteful motions.

Functional Foremanship

ll. Taylor advocated functional foremanship for achieving ultimate specification. mm.This technique was developed to improve the quality of work as single supervisor may not be an expert in all the aspects of the work. nn. Therefore workers are to be supervised by specialist foreman. oo. The scheme of functional foremanship is an extension of principle pf specialization at the supervisory level. pp. Taylor advocated appointment of 8 foramen, 4 at the planning level & other 4 at implementation level. qq. The names & function of these specialist foremen are: 1. Instruction card clerk concerned with tagging down of instructions according to which workers are required to perform their job 2. Time & cost clerk is concerned with setting a time table for doing a job & specifying the material and labor cost involved in it. 3. Route clerk determines the route through which raw materials has to be passed. 4. Shop Disciplinarians are concerned with making rules and regulations to ensure discipline in the organization. 5. 6. production process. 7. 8. Gang boss makes the arrangement of workers, machines, tools, workers etc. Speed boss concerned with maintaining the speed and to remove delays in the Repair boss concerned with maintenance of machine, tools and equipments. Inspector is concerned with maintaining the quality of product.

Standardization
rr. It implies the physical attitude of products should be such that it meets the requirements & needs of customers. ss. Taylor advocated that tools & equipments as well as working conditions should be standardized to achieve standard output from workers. tt. Standardization is a means of achieving economics of production. uu. It seems to ensure 1. quality. Etc 2. 3. 4. The line of product is restricted to predetermined type, form, design, size, weight, There is manufacture of identical parts and components. Quality & standards have been maintained. Standard of performance are established for workers at all levels.

Differential Piece Wage Plan

vv. This tech of wage payment is based on efficiency of worker. ww. The efficient workers are paid more wages than inefficient one. xx. On the other hand, those workers who produce less than standard no. of pieces are paid wages at lower rate than prevailing rate i.e. worker is penalized for his inefficiency. yy. This system is a source of incentive to workers who improving their efficiency in order to get more wages. zz. It also encourages inefficient workers to improve their performance and achieve their standards. aaa.It leads to mass production which minimizes cost and maximizes profits.

Other Techniques
bbb.Various other techniques have been developed to create ordeal relationship between management and workers and also to create better understanding on part of works. ccc. Those includes use of instruction cards, strict rules & regulations, graphs, slides, charts etc, so as to increase efficiency of workers. Although it is accepted that the scientific management enables the management to put resources to its best possible use and manner, yet it has not been spared of severe criticism.

Workers Viewpoint

1. Unemployment - Workers feel that management reduces employment opportunities from them through 2. 3. 4.
replacement of men by machines and by increasing human productivity less workers are needed to do work leading to chucking out from their jobs. Exploitation - Workers feel they are exploited as they are not given due share in increasing profits which is due to their increased productivity. Wages do not rise in proportion as rise in production. Wage payment creates uncertainty & insecurity (beyond a standard output, there is no increase in wage rate). Monotony - Due to excessive specialization the workers are not able to take initiative on their own. Their status is reduced to being mere cogs in wheel. Jobs become dull. Workers loose interest in jobs and derive little pleasure from work. Weakening of Trade Union - To everything is fixed & predetermined by management. So it leaves no room for trade unions to bargain as everything is standardized, standard output, standard working conditions, standard time etc. This further weakens trade unions, creates a rift between efficient & in efficient workers according to their wages. Over speeding - the scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers. The workers speed up to that standard output, so scientific management drives the workers to rush towards output and finish work in standard time.

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Employers Viewpoint

Expensive - Scientific management is a costly system and a huge investment is required in establishment of planning dept., standardization, work study, training of workers. It may be beyond reach of small firms. Heavy food investment leads to increase in overhead costs. Time Consuming - Scientific management requires mental revision and complete reorganizing of organization. A lot of time is required for work, study, standardization & specialization. During this overhauling of organization, the work suffers. Deterioration of Quality

Administrative Theory
Fayols Principles of Management The Fayols theory is divided under 4 categories Activities of business( TECH, COMMERCIAL, FINANCIAL, MANAGERIAL,) Functions of manager( Planning, organizing, staffing, directing, controlling) Abilities of manager ( physical, mental, moral, experience) Principle of management. Principles of scientific management Division of Labor: Allows for job specialization. Fayol noted jobs can have too much specialization leading to poor quality and worker dissatisfaction. Authority and Responsibility Fayol included both formal and informal authority resulting from special expertise. Unity of Command Employees should have only one boss. Line of Authority A clear chain of command from top to bottom of the firm. Centralization The degree to which authority rests at the top of the organization. Unity of Direction A single plan of action to guide the organization. Equity The provision of justice and the fair and impartial treatment of all employees. Order The arrangement of employees where they will be of the most value to the organization and to provide career opportunities. Initiative The fostering of creativity and innovation by encouraging employees to act on their own. Discipline Obedient, applied, respectful employees are necessary for the organization to function. Remuneration of Personnel An equitable uniform payment system that motivates contributes to organizational success. Stability of Tenure of Personnel

 Long-term employment is important for the development of skills that improve the organizations performance. Subordination of Individual Interest to the Common Interest The interest of the organization takes precedence over that of the individual employee.

Esprit de corps Comradeship, shared enthusiasm foster devotion to the common cause (organization).

Advantages of Fayols theory

He distinguished management functions from other functions First to introduce the universality of management principles. He contributed the base for development of management thought.

Disadvantages
Over emphasis s on formal structure No importance of environment impact on organization. No flexibility to change

Basis

Taylor

Fayol

Human aspect

Taylor disregards human elements and there is more stress on improving men, materials and methods

Fayol pays due regards on human element. E.g. Principle of initiative, Espirit De Corps and Equity recognizes a need for human relations

Status

Father of scientific management

Father of management principles

Efficiency & administration

Stressed on efficiency

Stressed on general administration

Approach

It has micro-approach because it is restricted to factory only

It has macro-approach and discuses general principles of management which are applicable in every field of management.

Scope of principles

These principles are restricted to production activities

These are applicable in all kinds of organization regarding their management affairs

Achievement

Scientific management

Administrative management

Behavioural Theories
a.Hawthorne Studies
A. Ten year study Four experimental 1. Illumination experiment 2. Relay assembly test room experiment 3. Massive interviewing program me 4. Bank wiring observation room experiment Interpretation, money not cause of increased output Factor that increased output, Human Relations b.

Illumination Studies 1924-1927.

Funded by General Electric
Conducted by The National Research Council (NRC) of the National Academy of Sciences with engineers from MIT Measured Light Intensity vs. Worker Output Result Each change (including decreases) resulted in higher output and reported greater employee satisfaction Conclusions: Light intensity has no conclusive effect on output Productivity has a psychological component Researchers interaction with the workers influenced higher performance

Relay Assembly Test Experiments 1927-1929

Western Electric wanted more information Harvard researchers brought in to analyze the results Elton Mayo & Fritz Roethlisberger Group of 6 Women (5) Assemblers and (1) Layout Operator One Observer Explained every incremental change and recorded results Manipulated factors of production to measure effect on output: Pay Incentives

Length of Work Day & Work Week Use of Rest Periods Company Sponsored Meals Result Most changes resulted in higher output and reported greater employee satisfaction Conclusions: Experiments yielded positive effects even with negative influences workers output will increase as a response to attention Strong social bonds were created within the test group. Workers are influenced by need for recognition, security and sense of belonging

Measured output changes with pay incentive changes Special observation room Relay Assemblers changed from Departmental Incentive to Small group 1st Session Adjusted back to Large Group Incentive 2nd Session Results Small Group Incentive resulted in new Highest sustained level of production 112% over standard output base Output dropped to 96.2% of base with return to large group incentive Conclusion: Pay incentives were a relevant factor in output increases but not the only factor.

Plant Interview Program 1925-1932

1925-1927 Objective Questions Work Conditions Work Relationships Yes/No Answers 1928-1932 Conversational / Non-directive Attentive Sympathetic Listening Concern for personal needs Result Remarkable positive employee perceptions: Working Condition Improved (no real changes)

Better Wages (no real changes)

Conclusions: New Supervisory Style improved worker morale Complaints reflected personal and/or social barriers that needed attention in order to raise productivity

Bank Wiring Observation Group 1931-1932

14 Male Workers Few Special Conditions Segregated work area No Management Visits Supervision would remain the same Observer would record data only no interaction with workers New incentive pay rate was established for the small group Any increases in output would be included in departmental pay incentives Result No appreciable changes in output Conclusions: Well established performance norms existed in the group Informal Social Organization dictated little deviation from established production standards Systemic Soldiering Informal Social Organizations protect workers from managers who Raise production standards

Cut pay rates Challenge workplace norms

Hawthorne effect workers attitudes toward their managers affect the level of workers performance

Maslows Theory Maslow believed that

We each have a hierarchy of needs that ranges from "lower" to "higher." As lower needs are fulfilled there is a tendency for other, higher needs to emerge.

Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with the largest and
most fundamental levels of needs at the bottom, and the need for self-actualization at the top
Maslows theory maintains that a person does not feel a higher need until the needs of the current level have been satisfied. Maslow's basic needs are as follows:

Physiological needs
FOR THE MOST PART, PHYSIOLOGICAL NEEDS ARE OBVIOUS THEY ARE THE LITERAL REQUIREMENTS FOR HUMAN SURVIVAL. IF
THESE REQUIREMENTS ARE NOT MET, THE HUMAN BODY SIMPLY CANNOT CONTINUE TO FUNCTION.

AIR, WATER, AND FOOD ARE METABOLIC REQUIREMENTS FOR SURVIVAL IN ALL ANIMALS, INCLUDING HUMANS. CLOTHING AND
SHELTER PROVIDE NECESSARY PROTECTION FROM THE ELEMENTS.

THE INTENSITY OF THE HUMAN SEXUAL INSTINCT IS SHAPED

MORE BY SEXUAL COMPETITION THAN MAINTAINING A BIRTH RATE ADEQUATE TO SURVIVAL OF THE SPECIES.

Safety needs
WITH THEIR PHYSICAL NEEDS RELATIVELY SATISFIED, THE INDIVIDUAL'S SAFETY NEEDS TAKE PRECEDENCE AND DOMINATE
BEHAVIOR. THE SE SAFETY NEEDS MANIFEST THEMSELVES IN SUCH THINGS AS A PREFERENCE FOR JOB SECURITY, GRIEVANCE PROCEDURES FOR PROTECTING THE INDIVIDUAL FROM UNILATERAL AUTHORITY, SAVINGS ACCOUNTS, INSURANCE POLICIES, REASONABLE DISABILITY ACCOMMODATIONS, AND THE LIKE.

SAFETY AND SECURITY NEEDS INCLUDE: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Social needs
AFTER PHYSIOLOGICAL AND SAFETY NEEDS ARE FULFILLED, THE THIRD LAYER OF HUMAN NEEDS ARE SOCIAL AND INVOLVE
FEELINGS OF BELONGINGNESS.

THE NEED IS ESPECIALLY STRONG IN CHILDHOOD AND CAN OVER-RIDE THE NEED FOR SAFETY.

THE NEEDS WHICH COME HERE ARE.

FRIENDSHIP

Intimacy Family

HUMANS NEED TO FEEL A SENSE OF BELONGING AND ACCEPTANCE, WHETHER IT COMES FROM A LARGE SOCIAL GROUP, SUCH
AS CLUBS, OFFICE CULTURE, RELIGIOUS GROUPS, PROFESSIONAL ORGANIZATIONS, SPORTS TEAMS, GANGS, OR SMALL SOCIAL CONNECTIONS (FAMILY MEMBERS, INTIMATE PARTNERS, MENTORS, CLOSE COLLEAGUES, CONFIDANTS).

Esteem
ALL HUMANS HAVE A NEED TO BE RESPECTED AND TO HAVE SELF-ESTEEM AND SELF-RESPECT. ESTEEM PRESENTS THE
NORMAL HUMAN DESIRE TO BE ACCEPTED AND VALUED BY OTHERS.

PEOPLE NEED TO ENGAGE THEMSELVES TO GAIN

RECOGNITION AND HAVE AN ACTIVITY OR ACTIVITIES THAT GIVE THE PERSON A SENSE OF CONTRIBUTION, TO FEEL SELF-VALUED, BE IT IN A PROFESSION OR HOBBY. IMBALANCES AT THIS LEVEL CAN RESULT IN LOW SELF-ESTEEM OR AN INFERIORITY COMPLEX.

PEOPLE WITH LOW SELF-ESTEEM NEED RESPECT FROM OTHERS. THEY MAY SEEK FAME OR GLORY, WHICH AGAIN DEPENDS ON
OTHERS.

NOTE, HOWEVER, THAT MANY PEOPLE WITH LOW SELF-ESTEEM WILL NOT BE ABLE TO IMPROVE THEIR VIEW OF

THEMSELVES SIMPLY BY RECEIVING FAME, RESPECT, AND GLORY EXTERNALLY, BUT MUST FIRST ACCEPT THEMSELVES INTERNALLY.

Self-actualization
WHAT A MAN CAN BE, HE MUST BE. THIS FORMS THE BASIS OF THE PERCEIVED NEED FOR SELF-ACTUALIZATION. THIS LEVEL
OF NEED PERTAINS TO WHAT A PERSON'S FULL POTENTIAL IS AND REALIZING THAT POTENTIAL.

MASLOW DESCRIBES THIS DESIRE

AS THE DESIRE TO BECOME MORE AND MORE WHAT ONE IS, TO BECOME EVERYTHING THAT ONE IS CAPABLE OF BECOMING

THEORY X AND THEORY Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behaviour at work, or in other words, two different views of individuals (employees): one of which is negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor, the perception of managers on the nature of individuals is based on various assumptions.

Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever possible. Since the employee does not want to work, he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style. Many employees rank job security on top, and they have little or no aspiration/ ambition. Employees generally dislike responsibilities. Employees resist change. An average employee needs formal direction.

Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts in an inherent manner in their jobs. Employees may not require only threat, external control and coercion to work, but they can use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives. If the job is rewarding and satisfying, then it will result in employees loyalty and commitment to organization. An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to obtain responsibility. The employees have skills and capabilities. Their logical capabilities should be fully utilized. In other words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems. Thus, we can say that Theory X presents a pessimistic view of employees nature and behaviour at work, while Theory Y presents an optimistic view of the employees nature and behaviour at work. If correlate it with Maslows theory, we can say that Theory X is based on the assumption that the employees emphasize on the physiological needs and the safety needs; while Theory X is based on the assumption that the social needs, esteem needs and the self-actualization needs dominate the employees. McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged cordial team relations, responsible and stimulating jobs, and participation of all in decision-making process.

Implications of Theory X and Theory Y

Quite a few organizations use Theory X today. Theory X encourages use of tight control and supervision. It implies that employees are reluctant to organizational changes. Thus, it does not encourage innovation.

Many organizations are using Theory Y techniques. Theory Y implies that the managers should create and encourage a work environment which provides opportunities to employees to take initiative and self-direction. Employees should be given opportunities to contribute to organizational well-being. Theory Y encourages decentralization of authority, teamwork and participative decision making in an organization. Theory Y searches and discovers the ways in which an employee can make significant contributions in an organization. It harmonizes and matches employees needs and aspirations with organizational needs and aspirations.

Quantitative Management
Quantitative Management Emerged during World War II to help the Allied forces manage logistical problems.

Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems

Management Science
Contemporary approach to management that focuses on the use of rigorous
quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

utilizes linear and nonlinear programming, modeling, simulation, queuing theory

and chaos theory.PERT, CPM, Game theory etc.

Queuing theory is the mathematical study of waiting lines, or queues. The theory enables mathematical analysis of several related processes, including arriving at the (back of the) queue, waiting in the queue (essentially a storage process), and being served at the front of the queue. The theory permits the derivation and calculation of several performance measures including the average waiting time in the queue or the system, the expected number waiting or receiving service, and the probability of encountering the system in certain states, such as empty, full, having an available server or having to wait a certain time to be served. Simulation is an attempt to model a real-life or hypothetical situation on a computer so that it can be studied to see how the system works. By changing variables, predictions may be made about the behaviour of the system. It is a tool to create a virtual environment of the real time system . The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is a statistical tool, used in project management, that is designed to analyze and represent the tasks involved in completing a given project. PERT is a method to analyze the involved tasks in completing a given project, especially the time needed to complete each task, and identifying the minimum time needed to complete the total project.

Operations management

techniques used to analyze any aspect of the organizations production system.

Operations management is an area of management concerned with overseeing, designing, and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as little resources as needed, and effective in terms of meeting customer requirements. It deals with the effective management of the production process and the timely delivery of an organizations products and services It is concerned with the following aspects of management Inventory management, work scheduling, production planning, facilities location and design and quality management etc.

MIS- Explain Management, Info. & System and define MIS

MIS is a system that gathers comprehensive data, organizes and summarizes it in a form that is of value to managers and provides them useful information in order support managerial decision making. In simple terms, MIS is a computer based information system which assists managers in decision making and control and in planning more effectively. Typical MIS is made up of four major components Data gathering, Data entry, Data transformation and information utilization.

Basic E Management In

Modern Approaches Systems Theory

A SYSTEM is a collection of objects such as people, resources, concepts, and procedures intended to perform an identifiable function or to serve a goal. Three Distinct Parts of Systems Inputs Processes Outputs Systems

Corp and Exte Data

Surrounded by an environment Frequently include feedback

Operations Information Systems

Man Infor Syste

SOURCE: Adapted from Ralph M. Stair and George W. Reynolds, Principles of Information Systems: A Managerial Approach, 4 th ed. (Cambridge, Mass.: Course Technology, 1999), 391.

 Inputs are elements that enter the system Processes convert or transform inputs into outputs Outputs describe finished products or consequences of being in the system Feedback is the flow of information from the output to the decision maker, who

may modify the inputs or the processes (closed loop) The Environment contains the elements that lie outside but impact the system's performance. Boundaries may be physical or nonphysical (by definition of scope or time frame)
A Closed System is totally independent of other systems and subsystems An Open System is very dependent on its environment

Contingency theory
According to this theory, there is no one best way to manage all situations or there is no best way to manage. The response depends on several management situations. It assumes that a manager adopts a particular style of management only after careful analysis of the situational factors.

Theory Z

Quality Management
Total Quality Management (TQM) focuses on analyzing input, conversion,

and output activities to increase product quality.

Decision Making
Decision = choice made from available alternatives Decision Making = process of identifying problems and opportunities and resolving them Definition
It is a process of choosing a course of actions from two or more alternatives.

- J.W.Duncan
The process through which managers identify organizational problems and

attempt to resolve them. - Bartol and Martin

The process by which a course of action is selected as the way to deal with a

specific porblem. - Stoner and Wankel

Importance of Decision-Making It is prerequisite for every managerial functions. It involves problem finding and problem solving. It a process of selecting the course of action to solve the problem It is pervasive. It is situational- certainty, uncertainty, risk. Nature of Decision-Making Problem solving The problem solving is done depending on the order of priority and nature of problem, the order of priority is the problems which are critical is nature The problems which are routine and can be solved by subordinates. The problems which are left to resolve by themselves. Problem finding The manger must engage in problem finding, must look for the areas of threats or opportunities can arise and deicide how to prevent them from occurring or exploit the opportunities. Types of Decisions Programmed Decisions A decision that is a fairly structured decision or recurs with some frequency or both. Nonprogrammed decisions A decision that is relatively unstructured and occurs much less often than a programmed decision. Check the ppts for more info. On types of Decision Making i.e. about the differentiation

Decision-Making Conditions

 Certainty Risk Uncertainty Certainty- It is a condition where in the decision maker knows about the
problem, have accurate, measurable and reliable information and know the alternatives along with outcome of each alternative based on which he takes the decision. Such conditions exist in case of routine and repetitive decisions concerning the day to day operations of the business.

Risk: Under this condition the manager lacks perfect information i.e. it is
incomplete and inaccurate about the problem and about the alternatives but has a probability of outcome for each alternative is known. The decision taken under such circumstances has a risk attached to it.

Uncertainty- In this decision maker is not aware of all the alternatives and
the risk attached with each alternative, this is because of the information is not available or it is not accurate and completely reliable. Under such circumstances manger consider certain assumption about the problem and takes the decision depending upon his experience. Rational Decision- making In this approach, it is assumed that manager is completely rational, they have all relevant information needed to take decisions and are well aware of possible alternatives, outcomes and ramifications and hence make rational decisions. Decision-maker have a clear understanding of alternative course of action to accomplish a goal under a particular set of circumstances and have a systematic approach for a high quality solutions. Rational decision making is based on the information available with the decision maker and their ability to evaluate alternatives. Rational decision-making aims at deciding the best solution by selecting the alternative that most effectively facilitates goal achievement.

Limitations of Rational Decision- making It is very difficult for manager to be completely rational in their decision-making since decision are taken keeping the future in mind and future is very uncertain. It is very difficult to determine all the alternatives courses of action that might be followed to accomplish a goal.

Rational decision making is impossible task if the manager is exploring areas which he never ventured into. It is not possible to thoroughly analyze all the alternatives generated with sophisticated analytical techniques and computers. Even though decision-maker tries to be rational but due to cognitive limitations or limitations of information, time and certainty of outcomes curbs the rationality approach.

Non- rational Model Non-rational models of managerial decision-making suggest that it is difficult for manager to make optimal decision due to the limitations of information gathering and processing. With non-rational model, three Decision-making models have been identified a. Satisficing model (Herbert simons Bounded rationality) b. Incremental(Not in syllabus) c. Garbage-can model (Not in syllabus) Herbert Simons (Bounded Rationality Model) In the 1950s, an economist, Herbert Simon studied the actual behaviour of managerial decisions maker based on which he propound the concept of bounded rationality. The concept suggests that the manager may not always be perfectly rational decision making. The decision-making ability may be limited by certain factor like cognitive capacity and time constraints. Decision-maker may have inadequate information about the nature of the issue to be decided. They may also not posses enough information about possible alternatives and their strengths and weaknesses. The amount of information that can be gathered in regard to particular decision is limited by time and cost factors. Decision-maker may overlook or ignore critical information because of their perception about the relative importance of various pieces of data. The degree to which decision-makers can determine optimal decisions is limited by the individuals capacity and intelligence.

The inability to remember large amount of information is another factor that limits the ability of managers to make rational decisions.

In such scenarios instead of searching for ideal solution manager may settle for one that will adequately serve their purpose, so he may accept the first satisfactory decision. Which he calls as Satisficing decision. Satisficing approach is appropriate decision-making when the cost of searching for a better alternative or delaying a decision exceeds the potential gain. Decision Making Process Identifying the problem a. Scanning b. Categorizing c. Diagnosis Identifying the resource & Constraints Generating Altenatives a. Brain storming Evaluating Alternatives Select the alternatives Implement the decision Monitor the decision

Identifying the problem The first step in the decision making is identifying the problem which involves three stages : Scanning, categorization and diagnosis. Scanning: - Involves monitoring the environment for checking the changes within the organization and outside i.e. the internal and external environment. It gives a faint idea about the problem. Problem exists because of the gap between, what the organization goal is and where it is(current performance). Categorization:- At this point, the manager attempts to categorize the situation as problematic or not. Diagnosis:- It involves gathering relevant facts and other additional information pertaining to the problem which tells the manager about the nature and cause of the problem.

Identification of Resources and Constraints After problem identification, the next step is to find the resources and constraints to solve the problem. Resources are anything that is being used to solve the problem which may be the people, money, material, equipment etc. And the constraints are the factors that limit manager efforts to solve the problem eg. Lack of required resources to solve the problem. Generating Alternative solutions The next step is to find the possible solutions for the problem and one of the technique to generate solutions or alternatives is Brainstorming technique of decision making. Brainstorming:- It was conceptualized by A.S.Osborn which encourages members of a group to generate ideas as many as possible on the given problem the principles to be followed for brainstorming sessions are as follows. a. Dont criticize ( none of the ideas offered is cirticized) b. Free wheel(Allow people to come with the craziest idea) c. Focus on quantity (One person can come up with as many as possible) d. Combination of ideas to come with best possible solution Evaluating Alternatives After the solutions are generated, each of them should be thoroughly analyzed for the pros and cons of each alternative. The criteria for evaluation is based on a. Feasibility:- Degree to which an organizations can accomplish a particular goal within the related constraints. b. Quality:- The extent to which an alternative finds an effective solution to the problem c. Acceptability:- Degree of support extended to the chosen alternative by the decision-makers.
d. Cost:- refers to the resources required to implement the alternative and its side

effects and also some intangible issues. e. Ethics:- Degree of ethical standard and social responsibilities of the organizations. Selecting the alternative The basic approaches for selecting the alternative are

a. Experience:- Manager tends to rely on past experience to greater extent to take decisions. As the saying goes mistakes are stepping stones for success i.e. the mistake done by managers helps him to take good decisions. b. Experimentation:- In this the decision taken is tested and then implemented on larger scale. Eg. Launching a new product company may test on small market base and then extend it to countrywide intrusion. c. Research & Analysis:- In this manager attempts to solve a problem and understand it and then implement it in realtime scenario. Eg. Simulation Implementing the Decision The selected alternative is implemented properly to achieve the objective for which it was selected. There is possibility of best decision to fail due to improper implementation. Successful implementation depends on planning and people related to the problem. Monitoring the Decision Manager are required to monitor the process of implementation of the decision so as to make sure that everything is progressing according to plan and the problem that cropped should be resolved. Decision Making Techniques Marginal Analysis :- technique used to figure out how much extra output will result if one more variable (Input) is added. Financial Analysis:-- it involves knowing the financial position of the organization by analysis of financial statements like balance sheet, profit and loss etc. Break- Even Analysis:- is a measure by which the level of sales necessary to cover all fixed costs can be determined i.e. to find the beak even point, where in the total revenue equals total cost and profit is nil. Ratio Analysis:- is tool to interpret accounting information. It is defined as the relationship between two variables. Brainstorming, Delphi and Nominal, Simulation , game theory, operations research, decision tree, etc.