Management

Management is the process of reaching organizational

goals by working with and through people and other organizational resources.

Management as a discipline
Management as a discipline refers to that branch of

knowledge which is connected to study of principles & practices of basic administration. It specifies certain code of conduct to be followed by the manager & also various methods for managing resources efficiently.

Management as a group of people

People responsible to carry out the task
Intrapersonal Interpersonal

Management as a process
Production Oriented
People oriented Function oriented

Decision oriented

Importance of management
Helps in achieving the goals
Effective utilization of resources Development of resources

Incorporate innovation
Integrating various interest groups Stability in the society

Functions Of Management
Planning
Organizing Staffing

Directing
Controlling

Planning
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 Plan is a predetermined course of action to be followed in future.

Importance Of Planning
To focus attention on objective & results.

To reduce uncertainty and change.

To provide sense of direction.

To encourage innovation and creativity.

To help in coordination.

Importance Of Planning
To guide decision making.
To provide a basis for decentralization. To provide economy in operation. To facilitate control.

Organizing
It is the process of bringing together physical, financial

and human resources and developing productive relationship amongst them for achievement of organizational goals

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.

Staffing
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
Recruitment, Selection & Placement Training & Development

Remuneration
Performance Appraisal Promotions & Transfer

Directing
Direction is that inter-personnel aspect of

management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals

Controlling
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.

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.

Organizational structure
Organization structure refers to the formal system of

task and reporting relationships that controls, coordinates and motivates employees so that they work together to achieve organizational goals.

Terms
Span of control
Delegation Job role

Job responsibility

Line organizational structure

According to this type of organization, the authority

flows from top to bottom in a concern. The line of command is carried out from top to bottom.

Features of Line Organization

It is the most simplest form of organization.
Line of authority flows from top to bottom. Specialized and supportive services do not take place

in these organization. Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres. This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

Merits of Line Organization

Simplest
Unity of Command Better discipline

Fixed responsibility
Flexibility Prompt decision

Demerits of Line Organization

Over reliance
Lack of specialization Inadequate communication

Lack of Co-ordination
Authority leadership

Functional Organizational Structure

Functional organization has been divided to put the

specialists in the top position throughout the enterprise.

Features of Functional Organization

The entire organizational activities are divided into specific

functions such as operations, finance, marketing and personal relations. Complex form of administrative organization compared to the other two. Three authorities exist- Line, staff and function. Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise. Principle of unity of command does not apply to such organization as it is present in line organization.

Merits of Functional Organization

Specialization
Effective Control Efficiency

Economy
Expansion

Demerits of Functional Organization

Confusion
Lack of Co- ordination Difficulty in fixing responsibility

Conflicts
Costly

Line and Staff Organization

According to this administrative organization,

specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and council the line executives.

Merits of Line and Staff Organization

Relief to line of executives
Expert advice Benefit of Specialization

Better co-ordination
Benefits of Research and Development Training Balanced decisions Unity of action

Demerits of Line and Staff Organization

Lack of understanding
Lack of sound advice Line and staff conflicts

Costly
Assumption of authority Staff steals the show

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

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.

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

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.

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 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. They help to solve the grievances of the workers. They supervise & guide the sub-ordinates.

 They are responsible for providing training to the

workers. They arrange necessary materials, machines, tools etc for getting the things done. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise. They motivate workers. They are the image builders of the enterprise because they are in direct contact with the workers.