Management

by:
Yashika Vaishnav
Principle of Management
Division of work: tasks should be divided up with employees
specializing in a limited set of tasks so that expertise is developed
and productivity increased.

Authority and responsibility: authority is the right to give orders
and entails enforcing themwith rewards and penalties; authority
should be matched with corresponding responsibility.

Discipline: this is essential for the smooth running of business
and is dependent on good leadership, clear and fair arguments,
and the judicious application of penalties.

Unity of command: for any action whatsoever, an employee
should receive orders from one superior only; otherwise authority,
discipline, order, and stability are threatened.

5 Unity of direction: a group of activities concerned with a single
objective should be co-ordinated by a single plan under one
head.

6 Subordination of individual interest to general interest: individual
or group goals must not be allowed to override those of
the business.
Remuneration of personnel: this may be achieved by various
methods but it should be fair, encourage effort, and not lead to
overpayment.

Centralization: the extent to which orders should be issued only
from the top of the organization is a problem which should take
into account its characteristics, such as size and the capabilities
of the personnel.

Scalar chain (line of authority): communications should normally
flow up and down the line of authority running from the top
to the bottom of the organization, but sideways communication
between those of equivalent rank in different departments can
be desirable so long as superiors are kept informed.
Order: both materials and personnel must always be in their
proper place; people must be suited to their posts so there must
be careful organization of work and selection of personnel.

Equity: personnel must be treated with kindness and justice.

Stability of tenure of personnel: rapid turnover of personnel
should be avoided because of the time required for the development
of expertise.

Initiative: all employees should be encouraged to exercise initiative
within limits imposed by the requirements of authority and
discipline.
Planning
A plan is a predetermined course of action which provides purpose and
direction of an organization.

Planning is foreseeing future circumstances and requirements,
then, setting objectives, making long and short term plans and
determining the policies to be followed with standards to be set
It involves making a systematic process for achieving the organization
goals.In planning, managers receive and store information, monitor and
disseminate
the information.A manager makes decisions on strategy and allocation
of resources and initiate planned changes
Steps in planning
1 Define the organizations mission and vision.
A mission is the purpose of the organization. It
explains why the organization exists .
Vision is the future goal or achievement of an
organization.

2. SWOT ANALYSIS
Analyze the strength, weaknesses and identify
opportunities and threats of the organization.
SWOT analysis is used as the basis for future
improvements.

3 Setting goals and objectives.
Goals and objectives are developed to bridge the gap
between current capability and the mission
Objectives are statements describing results and
the way in which they will be achieved. They are
more specific and narrower than goals.

4 Develop a strategy
Information collected from the environmental scan is
used to : Match strengths with opportunities and
address weaknesses while trying to minimize
threats to its existence. Make superior profits by
getting a competitive advantage over competitors

5 Implementation of strategy
Strategy is implemented by developing programs,
budgets and procedures. It involves organizing the
firms resources and motivating staff to achieve the
firms objectives.

6 Evaluating /monitoring and control
Evaluation and control consists of
Defining parameters to be measured.Defining the t
arget values of those parameters.Performing measu
rement.Comparing measured results to pre defined
standards.Making necessary changes.


Types of plan
Major types of management plans
Strategic plan- These are prepared to meet the broad
objectives and designed at institutional level. It include
mission, purpose, objectives etc.
Standing plans-These are used over and over again. It save
the time used for decision making. Example of it are
policies, rules, methods, regulations.
Single-use plans-These plans are designed to achieve
specific objective or goal. It are used but once and discared.
Projects, programes are examples of single use plans.

Organization
G E Milward, "Organisation is a process of dividing
work into convenient tasks or duties, of grouping
such duties in the form of posts of delegating
authority to each post and of appointing qualified
staff to be responsible that the work is carried out
as planned."
Organization
Organization is a process which integrates different
type of activities to achieve organizational goals
and objectives, to achieve these goals there must be
competent management.
Organization is nothing but is a process of
integrating and coordinating the efforts of men and
material for the accomplishment of set objectives.
Process of organization
Subdivision of main work into small groups
Based on principles of equality division of
different activities
Selection of suitable personnels and allocation
of jobs according to suitability
Allotments of rights and authority to those who
have been assigned the job so that may be
able to accomplish their job satisfactorily
Determination of positions at different levels

Types
Formal Organisation
Chester I Bernard defines formal organisation as -"a system of
consciously coordinated activities or forces of two or more
persons. It refers to the structure of well-defined jobs , each
bearing a definite measure of authority, responsibility and
accountability.
Informal organisation
It is an organisation which is not established by any formal
authority, but arises from the personal and social relations of
the people.
Importance of organization
Any effective organization
Makes the management simple and efficient
Encourages specialization
Improves techniques
Encourages constructive thinking
Increase productivity and
Accelerates the progress

Controlling
According to George R Terry
"Controlling is determining what is being
accomplished i.e., evaluating the performance and
if necessary, applying corrective measures so that
the performance takes place according to plans."
Steps in controlling
There are three basic steps in a control process:
Establishing standards.
Measuring and comparing actual results against
standards.
Taking corrective action.
Establishing Standards
The first step in the control process is to establish standards
against which results can be measured. The standards the
managers desire to obtain in each key area should be
defined as far as possible in quantitative terms. Standards
expressed in general terms should be avoided. Standards
need to be flexible in order to adapt to changing conditions.
The standard should emphasis the achievement of results more
than the conformity to rules and methods.
Measuring and Comparing actual Results against Standards
The second step in the control process is to measure the performance and
compare it with the predetermined standards. Measurement of
performance can be done by personal observation, by reports, charts and
statements. After the measurement of the actual performance, the actual
performance should be compared with the standards fixed. While
comparing the actual performance with the standards fixed, the manager
has to find out not only the extent of variations but also the causes of
variations. This is necessary, because some of the variations may be
unimportant, while others may be important and need immediate
corrective action by the manager.
Taking Corrective Action
The next step that should be taken by the manager is to correct
these deviations. Corrective action should be taken without
wasting of time so that the normal position can be restored
quickly. The manager should also determine the correct cause for
deviation.
Types of control
Past-oriented Controls The Process of Controlling
These are also known as post-action controls and measure results after the
process. They examine what has happened in a particular period in the
past. These controls can be used to plan future behaviour in the light of
past errors or successes.

8.5.2 Future-oriented Controls
These are also known as steering controls or feed-forward controls and are
designed to measure results during the process so that action can be
taken before the job is done or the period is over. They serve as
warning-posts principally to direct attention rather than to evaluate e.g.:
Cash flow analysis, funds flow analysis, network planning etc.
Directing
According to Dale, "Direction is telling people what to do and
seeing that they do it to the best of their ability. It is through
directing that managers get the work done through people.
It consists of:
Issuing orders and instructions by a superior to his
subordinates.
Guiding, advising and helping subordinates in the proper
methods of work.
Motivating them to achieve goals by providing incentives,
good working environment etc.
Supervising subordinates to ensure compliance with plans".
Functions
1 Employee Orientation: An employee must be properly oriented to the
enterprise in which they are working. This orientation is necessary for
them to accomplish the objectives of the enterprise.
2. I nstructions: An instruction is an order or command by a senior
directing a Directing subordinate to act or refrain from acting under a
given situation. The right to issue orders should be with the superior by
virtue of his position.
3. Supervision: In order to see that the work is done according to the
instructions the superior must observe the activities of the subordinates.
Supervision is done at all levels of management. However, supervision
is more important at lower levels.
4. Motivation: One of the most challenging problems for management is to
motivate people. Management has to induce the employee to utilise his
talent and skill to contribute to the organisational goal.
Importance of Direction
1 Direction integrates employees' efforts: The individual efforts needs to be
integrated so that the organisation achieves its objectives. No organisational
objective can be achieved without the function of direction.

2. Direction initiates action: It is through direction that the management makes
individuals function in a particular way to get organisational objectives.

3. Direction gets output from individuals: Every individual in the organisation has
some potentials and capabilities which can be properly utilised through the function
of direction.

4. Direction facilitates changes: To manage change management must motivate
individuals to accept these changes which can be accomplished through motivation.
Techniques of Direction
Consultative direction: In this method executive consults with his
subordinates concerning the feasibility, the workability and the extent
and content of a problem before the superior makes a decision and
issues a directive.
Free rein direction: The free rein technique encourages and enables the
subordinate to contribute his own initiative, independent thought, drive,
perspicacity and ingenuity to the solution of the problem. The free rein
technique of direction will probably show the best and quickest results,
if the subordinate is highly educated, brilliant young man a sole
performer, who has a sincere desire to become a top level manager.
Automatic direction: In this method manager gives direct, clear and
precise orders to his subordinates, with detailed instructions as how and
what is to be done allowing no room for the initiative of the subordinate.



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