Contents Different Managerial Functions, Definition & Meaning of Management, Planning process, functions of organization, factors affecting on staffing, Managers & Managerial Skills, Role & Responsibilities of Manager, Skills needed at various levels of Management

1. Principles and Practices of
Management and
Organizational Behavior (BM11)
Objective: The basic management concepts and use
of management principles in the organization will
be introduced to student through this elaborative
subject.
By. Dr. B. J. Mohite (9850098225)

2. Chapter 1: Management
Meaning:
The process of achieving the objectives of the
business organization by bringing together
human, physical, and financial resources in
an optimum combination & making the best
decision for the organization while taking into
consideration its operating environment.

3. • American Management Association: The art of getting things done
through other people.
• Donald J. Clough: Ma age e t is the Art & Science of decision
making & leadership.
• J.N Schulze: Ma age e t is the force which leads, guides & directs
an organization in the accomplishment of pre-determined object.
• Louis allan: Ma age e t is what a manager does.
• Stanly Vance: management is simply the process of decision
making & control over the action of human beings for the express
purpose of attaining pre-determined goals.
• John F. Mee: Ma age e t is the art of securing maximum result
with minimum of efforts so as to secure maximum prosperity for
the employer & employee, and give the best possible service to
public.
• Henri Fayol: Ma age e t is to forecast, to plan, to organize, to
lead, to coordinate and control activities of othe s
Definition:

4. Four orientations of Management definition
1. Production of efficiency oriented definition:-
Ma age e t is the art of knowing what you want to do & then
seeing that it is done in the best & cheapest way
2. Decision oriented definition:-
Ma age e t is the process of decision making & controlling the
action of human beings for the purpose of attaining pre-
determined goals
3. People oriented definition:-
Ma age e t is the art of getting things done through & with
people in formally organized g oups
4. Function – oriented definition:-
Ma age e t is process involving planning, organizing, staffing,
directing & controlling human efforts to achieve stated objective in
an o ga izatio

5. Need/Importance Of Management
Why management ?
– Emergence of large organization -- Organization is complex
– Changing the nature of society
1. Effective utilisation of resources
– The resources are scattered in nature
– Management will help to take decision, to takes action, to utilise in particular
alternative in the best way
2. Development resources
– Management improves the quality of lives of people in the society
3. To incorporate innovation
– Today changes are occurring at very fast rate in both technology & social process
4. Integrating various interest groups
– Pressure of Groups like shareholder, employee, government & society on
organization
– Management has to balance these pressure from various interest group
5. Stability in the society
– Management provide integration between tradition & new invention, and
safeguards from the unfavorable impact of these invention
6. Achievement of goal
7. Meeting the challenge of change

6. INPUT
MEN
MATERIALS
MACHINERY
METHODS
MONEY
OUTPUT
PRODUCTION
SERVICES
PROFITS
SATISFACTION
SOCIAL JUSTICE
PROCESS OF MANAGEMENT
Planning
Organizing
Directing
Controlling
Process of Management

7. Process of Management
Work
agenda
Work method
& Managerial
roles
Management
Functions
•Planning
•Organizing
•Staffing
•Directing
•controlling
Knowledgebase
And
Managerial
skills
performance
Management Process is categorized in-
• Continuous Process
• Integrated Process &
• Social Process
Thus, the management as a process is
considered to be Composite, never-ending
and dynamic process.

8. Managerial levels/ hierarchy
CEO, President,
Board of Director,
GM, Chairman etc
Branch manager,
VP, Plant Manager,
Divisional Mngr,
Sectional Mngr etc
Supervisors,
operating mngr,
Front-line
Supervisor etc.
Upper
Lower

9. Top Level Managers
Top level managers considered executives , responsible for
the performance of an organization as a whole.
Functions
1. Develop & review the long range plans and strategies.
2. Evaluate the overall performance of various
departments and ensuring cooperation from them.
3. Involved in selection of key personnel
4. Consult subordinates, managers on subjects or
problem of general scope and directing them.
5. Public & Government relation

10. Middle Level Managers
• He has to get things done through others.
• Develop & implement action plans consistent with company objective
• Review of managerial performance to determine capability & readiness for
promotions.
• Review of daily and weekly reports on productions or sales.
1. Upper middle level managers
– The basic division of organization are determined & overall programs of division
are established. E.g. Vice president, Divisional managers
2. Lower middle level managers:-
– It is primarily concerned with carrying out function for achieving specific goals
E.g. Sectional Managers, Departmental managers, Superintendent.
Functions:-
1. Coordination & Cooperation among top , middle management & supervisors
to avoid consequences.
2. Training & development of employee for better functioning
3. Select and recruit personnel to fulfill future vacancies.
4. Distribution of Finance for Production & Wages. Obtaining funds & controlling cost

11. Low level Managers/ Supervisors
These members are more concerned with execution, Actual work is carried out by
low level managers.
Further classified in three categories
1. Senior supervisor
2. Intermediate supervisor
3. Front-line supervisor
Role of supervisors
– Scientific management
– Human relations
– Functional roles
Functions
• Maintain discipline
• Organizing & maintaining production
• Make detail and short range plans.
• Review performance of subordinate.
• Supervise day to day operations.
• Complete assigned task.
• Maintain close relationship with employees.

12. Functions Of Management
1.Planning: Is the primary function of management
2.Organizing: Organizing is the distribution of work in Group
wise or section wise for effective performance.
3.Staffing: It comprises the activities of selection & placement of
competent personnel. it refers to placement of right person at
right jobs.
4.Directing: Direction deals with making the workers learn
techniques to perform the job assigned to them. it include
guidance, supervision & motivation of employees.
5.Co-ordination : Grouped activities are co-ordinate towards the
accomplishment of objectives of an organization.
6.Controlling : Is the process of checking to determine whether
or not, proper progress is being made towards the achieve
o je ti e / goal & a ti g if e essa , to o e t a de iatio

13. 1. Planning
Pla i g is the p o ess of esta lishi g goals & suita le
ou se of a tio fo a hie i g those goals
-James Stoner
A plan is a trap laid to capture the futu e
-Allen
Pla i g is deciding in advance what is to be done. it
involves the selection of objectives, policies, procedures
& programmes from available alte ati es
-M.S.Hurley
Pla i g is a a ilit to isualize a futu e p o ess & its
esults
-J.P Barger

14. Objectives of planning
1. Reduce uncertainty: Future is uncertainty, planning will convert it to certainty.
2. Bridge co-operation & co-ordination
3. Economy in operation
4. Anticipates unpredictable contingencies
– Some events could not be predicted called as contingencies
– The planning provides provision to meet such contingencies
5. Achieving the predetermined goal
6. Reduce competition

15. Nature & Characteristics of Planning
1. Planning starts with objectives & helps to achieve same
2. Planning involve selection of suitable course of action
3. Planning is the basic function of management
4. Planning is an intellectual activity & requires a lot of
thinking , imagining & visualizing to increase the
efficiency of the enterprise.
5. Planning is continuous process
6. Planning is common to all
7. Planning helps decision making
8. Planning is flexible & dynamic

16. Planning Process
1. Analysis of external & internal environment
– External env. consist socio-economic (classification of society
on the basis of income, age, class), political condition in
country.
– Internal audit (strength & weakness of the company called as
resource audit. eg-plant capacity, available manpower)
2. Determination of objective
– Objective of organization is preplanned then department wise
objective should be determined
3. Planning premises & constraint
– Prediction of certain event like tax policy, technology change,
mfg cost
4. Identification of alternatives
– Based on objective & planning premises ,various alternative
can be identified

17. 5. Evaluation of alternatives
6. Selection of best alternative course of action
– Choose more than one alternatives
– Planr should be ready with alternatives , normally
known as contingency plan which can be implemented
in changed situation
7. Formulation of supporting plan
– Formulated supporting plan from main plan called
derivative plans. Which support main plan
8. follow-up & evaluation
– The continuous evaluation of planning is necessary
– Actual performance is compared with the planning &
corrective action is taken

18. Above steps are summed up as Terry and
F a kli s fi e s and how of planning:
» why must it be done?
» What action is necessary?
» Where will it take place?
» When will it take place?
» Who will do it?
» How will it be done?

19. Types of Planning
A) Coverage activities
1. Corporate Planning:
– Corporate planning deals with top management.
– Which cover whole organizational activities.
– To determine long term objectives of organization.
2. Functional planning:
– is planning that covers some functional areas like production, finance, marketing
etc.
B) Time period involved
1. Long Range planning :
– long range planning deals with the futurity of present decision, long range
planning sets long-term goals for the enterprise & then proceed to formulate
short Range Planning specific plan for attaining those goal.
– Time period is more than one year extending to twenty years
2. Short Range Planning
– short range mainly concerned with the determination of short-term activities
to accomplish long-term objectives.
– It is also known as operational or tactical planning

20. C)Importance of contents
1) Strategic planning :
– strategic planning is done by the middle level management which provide the
foundation for operative plans. it helps for pointing out how an enterprise can optimize
the use of its resources in men, money, materials & facilities within the strategic
objectives.
2) operational planning:
– Operational planning is done by the lower level manager to put the administrative plan
into action. operational plan define the detailed manner and programmes as to how
current operation to be carried out.
D) Degree of formalization :
1) Formal planning :
– formal planning are systematically carried on by the management & those which have
been written down in the form of document.
– Well structured process involving different steps
2) Informal planning:
– simple thinking by planners or plans ,usually remains in the mind of the planner, are
useful for short range issues.
– It undertaking by smaller organization

21. E)Approach adopted:
1)Proactive planning:
– Proactive planning involves designing suitable course of action in
anticipation of likely changes in the relevant environment
– organization do not wait for environment to change but take actions in
advance of environmental change.
2) Reactive planning
– In this planning organization responses come after the environmental
change have taken place

22. Importance of planning
1. Convert future uncertainty in to certainty
2. Planning involves selecting profitable course of action
– Unnecessary production, ineffective utilization of resources &
unnecessary activities are eliminated through planning
3. Delegation authority facilitated
4. Planning provides the basis for control in organization
5. Planning leads to more effective and faster achievements in any
organization
6. Planning promotes internal co-ordination
7. Planning result in greater productivity by making better
utilization of available resource
8. To increase organizational effectiveness
9. Effective utilization of resources
10. Avoiding business failures
11. Improve ability to cope with change

23. Limitations /Barriers to effective Planning
• Lack of reliable or dependable information
– if reliable & accurate information is not available planning may get failure.
• Time consuming & expensive
• Problems of rapid change
– Rapid change in environment make complexity in planning
• Internal inflexibilities
– Psychological inflexibility - Manager & employee in organization may develop
pattern of thought & behaviour that hard to change.
– Policy & procedural inflexibility
– Capital investment
• External inflexibilities
– Political climate - taxation policy , attitude of govt towards business.
– Trade unions -trade unions can interfere in the management activities on
work rule, fixation of wages ,productivity & associated benefits.
– Technological changes
• Failure of people in planning
– People involved in planning process fail to formulate correct plans

24. Feature of good plan or making effective plan
1. Linked to long-term objectives
2. Direction for action
– A good plan is one which provide direction for future course of
action clearly & specifically
3. Consistent
– It must be consistent in terms of external & internal factors which
are considered at the time of plan formulation
4. Feasible
– Plan should be based on reality of the situation
– Must be feasible to implement
5. Simplicity
– A good plan must be simple to understand
6. Flexible
– A plan should be flexible enough to incorporate unforeseen future
events
7. Participation in planning process
– Require participation from subordinate managers

25. Organizing
• The process of identifying & grouping the work is to be
performed, defining & delegating responsibility & authority &
establishing relationship for the purpose of enabling people to
work most effectively together in accomplishing o je ti es
-Allen
• Organization is the form of every human association for the
attainment of common pu pose -Mooney & Reily
• The te o ga izatio is used i t o diffe e t se se:
- in first it is denote the process of organization &
- second sense it is used to organization structure
• It is a process of dividing work into convenient tasks or duties,
grouping of such duties in form of position, grouping of various
positions in departments and sections, delegating authorities to
each position of department so that to complete work as per
planning

26. Features of organization
1. Deliberate & conscious creation
– organization is a deliberately & consciously created human group.
– organization can also recombine its personnel through promotion,
demotion & transfer
2. Purposive creation
– All the organization have some objectives
– The objectives are mutually agreed upon the members of the groups.
3. Coordination of activities
– Coordination is necessary because all the members contribute to commonly
agreed goal
4. Structure
– Structure provides power centers which co-ordinate & control concerted
effort of the organization & direct towards its goals.
5. Rationality
– Every organization has some specified norms & standards of behaviour
– Every individuals & every member should behave according to these norms

27. Functions of Organization
1. Determination of activities- it includes the deciding &
division of various activities required to achieve the objectives of
the organization.
2. Grouping of activities- identical activities are grouped under
one individual or a department. i.e.-sales department
3. Allotment of duties to specified person:-i.e. purchasing
activity to purchase manager.
4. Delegation of authority-
5. Defining relationship-
6. Co-ordination of various activities-

28. Importance of organization
1.Personal identity: Organization structure defines the role of
each member of an enterprise. thus every member knows
where he and his department stands.
2.Facilitate administration
3.Increase the efficiency of management
4. Ensures optimum utilization of material resources & human efforts
5.Encourage creativity & initiative- A sound organizational
structure will give an opportunity for employee show their
hidden talent
6.Facilitates co-ordination
7.Facilitates training & development of managerial personnel
8.Prevents the growth of secret, influence & corruption- sound
organization develops the morale, honesty , devotion to duty &
loyalty of business organization.

29. Process of organizing
• Identification of activities-
– the manager must identify the series of activities to be carried
out in order to achieve the desired organizational objectives.
• Division of activities-
• Grouping of activities-
– the activities of a manufacturing concern may be grouped in
to such departments as production, marketing, finance , H.R
• Assigning activities-
– after grouping, the competent personnel manpower who
could carry out these activities are to identified.
• Delegation of authority-
– Injecting the position with managerial authority to carry out
any activity, one must have enough authority.

30. Principle of organization
1. Principle of definition: define & fix the duties ,responsibilities &
authority of each worker.
2. Principle of objective: oraganisation structure should be geared to
achieve the main objective of the organization.
3. Principle of co-ordination: the objectives of the organization may be
achieved quickly whenever co- ordination exist among the worker.
4. Principle of authority: The authority is the tool by which a manager is
able to accomplish the desired objectives
5. Principle of efficiency: The organization structures should enable the
enterprise to function efficiently (i.e. work should be completed with
minimum resources & within right time)
6. Principle of responsibility: Each person is responsible for complete
the work
7. principle of leadership facilitation: organization will appoint the
person with leadership quality in key position
8. Principle of flexibility: The organization set up should be flexible to
adjust to the changing environment

31. 9. Principle of unity of direction: All the groups or department
are requested to co-operate to attain the main objectives
10. Principle of join decision: In complicated problem decision
should taken by various manager
11. Principle of balance: Their should be balance in responsibility
12. Principle of leadership facilitation: Person with leadership
quality are appointed in key position.
13. Principle of uniformity: The work distribution in such manner
that there should be an equal status & equal authority &
powers among the same line managers
14. Principle of correspondence: Need Proper communication
between various dept/manager
15. Principle of simplicity & homogeneity: organization structure
should be simple so staff members can discharge his duties
effectively

32. Process of designing the organizational structure
1. Determine the objectives
2. Enumerate activities: an industrial concern may be divided
into the following major function i )production ii)finance
iii)sales etc
3. Classify activities: according to similarities, common purpose
and function
4. Fix individual into functions: fix suitable & well qualified
person into these activities .
5. Assign authority for action
6. Prepare an organizational manual
7. Prepare standard practice of instructions
8. Revise the system on the basis of assessment of personnel &
funds: assess the capacities & abilities of the people .

33. Staffing
• According to koontz the a age ial fu tio of staffi g i ol es the
managing the organization structure through proper & effective
selection, appraisal & development of personnel to fill roles designed
i to st u tu e
• S. Benjamin the p o ess i ol ed i ide tif i g, assessi g, pla i g,
e aluati g & di e ti g i di iduals at o k
• According to Theo Heinemann staffi g fu tio is o e ed ith the
placement, growth & development of all those members of the
organization whose function is to get things done through the efforts of
othe i di iduals
• Staffi g is the fu tio hi h a age s uild a o ga izatio
through the recruitment, selection & development of individuals as
apa le e plo ees
• The a age ial fu tio of staffi g is defi ed as filli g positio i the
organization structure through identifying workforce requirement,
inventorying the people available, recruitment, selection, placement,
p o otio , app aisal, o pe satio & t ai i g of eeded people

34. Importance of staffing
1. Filling organizational position
– Shortage of good quality managerial & technical personnel is
directly proportion to the growth of any organization
2. Developing competencies
– Changing nature of job profile there is requirement of multi
skills
– For making employee competent newer training & development
techniques are been evolved
3. Retaining personnel
– Employee turnover is inversely proportion to growth of
organization
– organization should retain their employees by adopting many
employee retention policies.

35. Factors affecting staffing
External factors
1. Nature of competition for human resources
– Competition for skilled workforce
2. Legal factors
– Govt act
– Provision regarding mandatory employment of certain categories of
personnel such as scheduled cast/tribes OBC
3. Socio-cultural factors
– organization can employ certain categories of personnel for certain job
– Ex. employment of women in mfg operations
4. External influences
– Pressure for employing in the organization
– Political pressure
– E . so s of the soil

36. Factors affecting staffing
Internal factors
1. organizational business plan
– Business plan determine the type of personnel that may be required in
feature
2. Size of organization
– Size of organization determines degree of attractiveness to the prospective
candidate
– Small organization cannot have same staffing as large organization
3. organizational image
– Image depends upon training & development, promotional avenues,
compensation, work culture

37. Function of Staffing
1. Human resource planning
2. Development- development of staff members through adequate
& appropriate training program.
3. Fixing the employment standards:- it involves job specification &
job description.
job description is systematic & organized written statement of the
duties & responsibilities in a specific job.
job specification is a statement of personal qualities that an
individual must posses.
4. Sources - 1)internal 2)external
5. Selection & placement
6. Training
7. Other functions like promotion, transfer, record maintenance,
motivation

38. Staffing Process
1. Human Resource planning
2. Job Analysis
3. Recruitment
4. Selection
5. Placement & orientation
6. Training & development
7. Performance appraisal
8. Promotion & transfer of the employees

39. 1. Human Resource planning
• Is the process by which a firm ensure that it has the right
number of people & right kind of people ,at the right time ,doing
thing for which they are economically most useful
• HRP includes the estimation of how many qualified people are
necessary to carry out the assigned activities ,how many people
will be available ,& what , if anything must be done to ensure that
personnel supply equals personal demand at the appropriate
point in the future
• Hr manager should find out the requirement of manpower to
undertake the various activities. it is determined in terms of
quality & quantity.
• To formulate action programme & procedure as to acquire &
develop required manpower. human resource plan consist finding
out the sources of labour supply & necessary preparation are
made for conducting various development programme.

40. Importance of HRP
1. Defining future personnel need :-
2. Coping with change
3. Providing base for developing talents
4. Increasing investment in human resources
– The cost of acquiring ,developing & retaining personnel is
increasing much faster than average rate of inflation
– Increase in salary package
5. Forcing top management to involve in staffing

41. HRP Process
1. Forecasting future manpower requirement:-
– Forecasting based on specific future plan of the economy
2. Inventorying present manpower
– To know how the resources employed optimally
– Skills inventory:-employee personal data , education ,job exp ,
training, special achievement
– Management inventory:-personal data , work history, strength
promotion potential
3. Anticipating manpower problem
– To determine adequacy both quantitatively & qualitatively
4. Planning the necessary program
– Such as recruitment ,selection , training & development ,
promotion , motivation so future requirement will met.

42. 2. Job Analysis
Jo analysis is the process of studding & collecting information
relating to the operations & responsibility of specific job. it
consist two sub-process-
1. Job description: is an orgenised factual statement &
summary of the job contents in terms of title , location ,
duties , working condition , equipment to be used , amount
of supervision needed, personal requirement of the job.
2. Job specification: it gives details relating to the candidate
who is supposed to do the job, such as qualification,
experience
– Personal characteristics such as age, sex, education, job experience
– Physical characteristics such as height, weight, hearing
– mental characteristics such as intelligence, memory
– Social & psychological characteristics such as emotional stability,
creativity

43. Uses of job analysis
1. Acquisition of personnel
– HRP, recruitment & selection, orientation & placement
– Job analysis give information for forecasting human resource need in terms of
knowledge, skill & experience
2. Human resource development
– Career planning
– Training & development
3. Job evaluation & compensation
– Is the process of determining the relative worth of different job in an organization
with view to link compensation
4. Performance appraisal
– Job analysis helps in determine performance standard against which the actual job
performance measured
5. Safety & health
– Job analysis helps in taking preventive measure for maintaining safety & health of
employee at workplace by providing information
6. Employee counseling
– It helps in counseling to employee those working under stress

44. 3. Recruitment
• Re uit e t is the p o ess of fi di g & att a ti g apa le
applicants for employment .the process begins when new recruits
a e sought & e ds he thei appli atio a e su itted .
• The te e uit e t applies to the p o ess of att a ti g
pote tial e plo ee of the o pa .
-Dalton E.McFarland
Sources of Recruitment

45. Internal Sources
Advantages:
1. It increase the morale among the staff member
2. Giving promotion keep the employee happy.
3. Training expenses may be reduced some extent.
4. It ensures the continuity of job to the staff member & stability of
the organization.
5. It induces the staff members to work hard to get promotion.
6. Expenses as on advertisement ,recruitment ,
Test & interview are avoided.
Disadvantages:
1. The outsider do not have a scope to show their ability.
2. An under qualified person may be appointed in the higher post.
3. If the higher post is filled by internally ,the company will not able
to get fresh & original ideas .

46. External Sources
Advantage:-
1. Choice:-a company can recruit a person out of a large number of
applicant .
2. New outlook:-new person uses new approaches to solve the
problem which will give maximum benefit to the company.
3. Wide experience:-recruited candidate has the experience in
various fields.
Disadvantage-
1. Reluctant of old employees
2. Lack of co-operation
3. Expensive
4. Danger of non-adjustment : if a newly person fails to adjust
himself to the working condition of the company, it leads to more
expenditure in looking for his replacement.

47. 4. Selection
Sele tio is the p o ess adopted a o ga izatio to sele t
ade uate u e of pe so s ho a e fit the jo
Selection Procedure-
1. Job analysis-
a) job description: it gives details about duties ,responsibilities
b)job specification: it specify the type of person required in terms of educational
qualification, experience, aptitude etc.
2. Receiving & Screening application
3. Employment tests
a)intelligence test b) aptitude test c) performance test d)personality test
4. Employment interviews:-
Types of interview:-
1) informal interview 2)Formal interview 3) planned interview 4) structured
interview 5) stress interview 6) group interview 7) panel or board interview
5) Checking Reference
6) Conducting medical or physical examination
7) Final selection & placement

48. 5. Placement & induction
1) He should placed on the job for which he was selected
2) An employee should introduced to the organization culture &
environment. Information about company history, objectives,
rules & regulation, opportunities, promotion, transfer etc.
6. Training & development:-
t ai i g is the a t of i easi g the k o ledge & skill of a
e plo ee fo doi g a pa ti ula jo .
Advantage of T&D
1) Increased efficiency & productivity:-
2) Reduced supervision & direction:-
3) Employee moral will improve
4) Confidence in employee
5) Positive attitude
6) Enhance existing knowledge of employee

49. Methods of training
1) On the job training
– Demonstration: operatives can be trained through demonstration
by trainer
– Vestibule training: two parts first there is lecture method focus on
theoretical method & second aspect is practical exercise based on
theoretical aspect
– Apprenticeship
– Coaching
– Job rotation: movement of employee from on job to another job
2) Off the job training
– lectures
– conference
– case studies
– role play

50. 7. Performance Appraisal
• Is the s ste ati des iptio of a e plo ee s jo ele a t st e gths
& eak esses
• Is the s ste ati e aluatio of the pe fo a e of a e plo ee a
e pe t o his i ediate supe io
• Is the s ste ati e aluatio of the i di iduals ith ega d to his o he
pe fo a e o the jo & his pote tial fo de elop e t
Objectives
1. Salary increase 2. Promotion 3. T & D
4. Feedback 5. Pressure on employees
Importance:-
– helps mgmt to take decision about salary increase
– Continuous evaluation of an employee helps in improving quality of
employee
– Minimize communication gap between employee & employer
– Training needs can be identified
– Promotion & demotion is given on the basis of performance appraisal
– Helps to improve the employee & employer relation

51. 8.Promotion & Transfer
Need for Promotion
1. organizational need
– No organization can rely on outside recruitment to fill all its
requirement
2. Providing motivation
– Promotion possibilities influence the behaviour of individuals
in the organization
3. Providing satisfaction
– Opportunities & clear policies for promotion provide
satisfaction to employee
– Promotion provide economic & morale development

52. Directing
• Di e ti g consists of the process and techniques utilized in
issuing instructions and making certain that operations are
carried on as originally planned.
• Di e tio is the interpersonal aspect of managing by which
subordinates are led to understand and contribute effectively to
the attainment of enterprise objective.
-Koontz & O'Donnell
• Di e tio is telling people what to do & seeing that they do it
to the best of their ability. it includes making assignment,
corresponding procedure, seeing that mistake are corrected,
provide on-the-job instruction & of course, issuing orders
-Earnent Dole

53. Importance of direction.
o Direction initiates actions.
– Without direction other activities like planning, staffing become ineffective
o Direction integrates employee efforts.
– In organization activities are inter-related in such way that each individuals
performance affect the other performance
– So individuals efforts should integrates in such manner so organization achieve
objective
o Direction attempts to get maximum out of individual.
– Direction will provide the way to utilize these capabilities
o Direction facilitates changes in the organization.
– organization will change according to change in the society
– To incorporate & implement these change
o Direction provides stability.
– Effective leadership communication & motivation provide stability in the
organization & maintain balance

54. Principles of direction.
1. Harmony of objectives
– Individuals have their own objectives ,organization has its own objectives
– Direction in such way that the individuals objectives can integrate with
organizational objectives
2. Maximum individual contribution.
– Direction technique which enables subordinates to contribute maximum
3. Unity of direction or command.
– Employee should receive orders & instruction from one superior
4. Efficiency of direction
– To provide satisfaction to employee
5. Managerial communication
– Communication from both the way downward & upward
6. Appropriateness of direction technique.
– Three techniques of direction use the best technique on the situation
7. Use of informal organization
– Use of informal group to communicate fast & making direction effective
8. Comprehensive.
– Brief explanation of duties should be given to subordinate
9. Leadership
– Manager should be good leader to influence the activities of their subordinates
10. Follow through
– Directing is continuous process
– What difficulties subordinate facing ,if need the order can be modified & replaced

55. Techniques of direction
1. Consultative.
– The supervisor has consultation with his subordinates
before issuing direction
– The co-operation of subordinate is necessary for successful
implementation
2. Free rein.
– Superior will assign the task generally, subordinate take
initiative to solve the problem
3. Autocratic
– Opposite free rein
– Superior commands hi subordinates & has close
supervision.

56. Co-Ordination
• Co-ordination involves the development of unity of
purpose & the harmonious implementation of plans for
the a hie e e t of desi ed e ds
• Co-ordination is balancing & keeping the team together
by ensuring a suitable allocation of working activities to
the various members & seeing that these are performed
ith due ha o a o g the e e the sel es
E.F.L.Brech
• Co-ordination is the orderly arrangement of group
effort ,to provide unity of action in the pursuit of
o o pu pose
James D. Mooney

57. Importance
1. Unity in diversity:-
– organization having large number of employees & each has different
ideas, views or opinions, activities & background
– By co-ordination we use their in proper way
2. To achieve Team work:-
– Co-ordination will eliminate the duplication of work which leads to
economic & efficient management
3. Large number employees
– They have different behaviour , habits , approaches in particular situation
4. Interdependence of units
5. Functional differentiation:-
– the organization are divided in department-wise, or section –wise
– Each department tries to perform its own function
– Co-ordination is required to integrate the function
Problems of Co-Ordination
1) Natural Calamities 2) lack of administrative talent
3) lack of techniques of Co-Ordination 4) Misunderstanding among the emp

58. Types of co-ordination
1. Internal co-ordination
– It is relationship with view to co-ordinate the activities of all the
managers, executives, division, sub-division, branches & workers
A. Vertical co-ordination
• Co-ordination in which superior authority co-ordinates his work with
that subordinate
B. Horizontal co-ordination
• Establishment of a relationship between the person of same status.
2. External co-ordination
– Define as establishment of relationship between employees of the
organization & outsider of the organization
– Market agencies
– Competitors
– Customers
– General public
– Technological agencies

59. Steps for effective Co-Ordination
1. There should be proper delegation of authority &
responsibility
2. Establishment of an effective communication system
3. There should be proper system for reporting
4. Skilled worker are to be rewarded adequately
5. Management should encourage the employees to have
friendly relationship with others
6. Management should induce the employees to take
active part in meetings , committees, conferences ,
seminars

60. 6. Controlling
Che ki g u e t pe fo a e agai st p e-determined
standards contained in the plan, with a view to ensure
ade uate p og ess & satisfa to pe fo a e
Co t ol o sist i e if i g hethe e e thi g o u s i
conformity with the plan adopted, the instruction issued
& the p i iple esta lished
Need of control
1. Judging the accuracy with standards
2. Minimize dishonest behavior
3. Better performance

61. Steps in control process
1. Establishing standards-
– Setting standards, it may be quantitative or qualitative
2. Measuring performance-
– The performance should be compared with the established stds
3. Comparison of actual with standards-
– Whenever comparison is made the deviation are known to the mgt
– If results are intangible or qualitative, personal observation will be
used to find out the extent of deviation
4. Taking corrective action-
– After finding deviation
– Finding the cause of the deviation it may be inadequate commun
defective system of wage payment, lack of proper training
– Management should take necessary action on the basis of nature of
cause of deviation.

62. Techniques of Control
• Statistical control reports
– Reports are in quantitative form
– Periodical report sales
• Personal observation
– Manager personally observe the operations in work place
• Management audit
– It will help in pointing out the inefficiency in the performance of management fun
• Return on investment
– Net profit / total investment or capital employed
• Internal audit
– Internal audit reports can be produced normally by month
• External audit control
– External auditors certify that all the books of account are kept as per the req.
– Balance sheet show the a true & fair view
• Zero-base budgeting
– Zero-base budget is prepared without considering the previous years figures.
• Managerial statistics
– Manager compares the past result with current result in order to know the cause
of change

63. Advantage of control
1) Adjustments in operation
– Control provide clue to find the whether plans are properly implemented to achieve the objectives
2) Variation of policy
– The management frames the policy & plans to help the organization function smoothly
– The organization performance reviewed on this policies.
– So management can review the policy through the control process
3) Psychologically pressure
– The employee performance is evaluated & linked with rewards so employee work hard to achieve the
standard set to them
4) Co-ordination
5) Efficiency
Limitation of control
1. Absence of perfect standards
– Standards cannot be fixed in all the cases
2. Uncontrollable factors
– Uncontrollable factor such as Govt policy , strategy of competitors
3. Difficulty in fixing responsibility
– Control reduce the freedom of employees ,so they resist the exercise of control.
4. Expensive process
– Control process is time consuming, much paper work

64. Manager & Managerial Skills
Any person who perform the function of planning,
organizing, staffing, directing & controlling for the
accomplishment of pre-determined organization goal is
called as manager.
Characteristics of effective Manager
1. Decisive 8. Productive
2. Creative 9. Intelligent
3. Responsible 10. Innovative
4. Clear thinking 11. Agreeable
5. Kindly 12. Energetic
6. Ability to learn 13. Adaptability
7. Positive attitude 14. Motivator

65. Behavior of effective manager
Campbell have listed some behaviours of good managers
1. To manage people instead of work
2. To plan & organise effectively
3. To set goal realistically
4. To rely on others for help in solving problems
5. They communicate effectively
6. They coordinate effectively
7. They co-operate effectively
8. They show consistent & dependable behaviour
9. They win gracefully

66. Functions of Manager
1. Planning the work
2. Taking decisions
3. Delegating authority
4. Solving the problems
5. Co-ordination
6. Motivating workers
7. Setting target
8. Guiding sub-ordinates
9. Arranging the facilities
10.Control the deviation

67. Role of Manager
1. Interpersonal Roles
• The figurehead role: Every manager must perform some
duties of a traditional nature (e.g., the president greets
the touring dignitaries, the sales manager takes an
important customer to lunch). These activities are
important to the smooth functioning of an organization.
• The leader role: This role involves leadership directly . The
leader role encompasses relationships with subordinates ,
including motivation, communication, and influence.
• The liaison role: in which the manager makes contacts
inside and outside the organization with a wide range of
people: subordinates, clients, business associates,
government, trade organization officials, and so on.

68. 2. Informational Roles
• The monitor role: This role involves seeking current
information from many sources.
• The disseminator role: In their disseminator role,
managers pass information to other, both inside and
outside the organization.
• The spokesperson role: In their spokesman role,
managers send some of their information to people
outside the organization about company policies, needs,
actions, or plans.

69. 3. Decisional Roles
• The entrepreneur role. In his entrepreneur role , managers search
for improvement his unit to adopt it to changing conditions in the
environment.
• The disturbance handler role. This role involves responding to high-
pressure disturbances. For example, manager must resolve conflicts
among subordinates or between manager's department and other
departments.
• The resource allocator role. In their resource allocator role,
managers make decisions about how to allocate people, budget,
equipment, time and other resources to attain desired outcomes.
• The negotiator role. The negotiations are duties of the manager's
job. These activities involve formal negotiations and bargaining to
attain outcomes for the manager's unit responsibility

70. Responsibility of Manager
1. Planning of work
2. Proper & effective communication
3. Co-ordination of efforts
4. Getting co-operation of employees
5. Encourage a team sprit
6. Better utilization of resources
7. Maintaining good human relations
8. Solve the problem
9. Arranging the training & development facilities

72. Managerial Skills
1. Technical Skill: it involves specialized knowledge, analytical
ability within that specialty, and facility in the use of the tools
and techniques of the specific discipline.
2. Human Skill : This refers to the ability to work with,
understand and motivate other people. He is sufficiently
sensitive to the needs and motivations of others in his
organization so that he can judge the possible reactions to,
and outcomes of, the various courses of action he may
undertake.
3. Conceptual Skill : This skill involves the ability to see the
enterprise as a whole; it includes recognizing how the
various functions of the organization depend on one another,
and how changes in any one part affect all the others

73. Types Manager
Functional Manager
• is a person who has management authority over an
organizational unit - such as a department.
• They are responsible for a given functional area.
• Some major areas of any business organizations are-
Marketing, Finance, HR, Administration etc
Different Functional Managers are-
• Marketing Manager
• Financial Manager
• Operations Manager
• Administrative Manager
• System Manager

74. Specialize Managers
They are often found in organization based on the
nature and type of the organization.
Different Specialize Managers are-
• R & D Manager
• QC Manager
• Manager of International Operations etc.

75. Generalize manager
• A functional manager is responsible for one functional
area, but the general manager is responsible for all
areas. Sometimes, most commonly, the term general
manager refers to any executive who has overall
responsibility for managing both the revenue and cost
elements of a company's income statement.
• This means that a general manager usually oversees
most or all of the firm's marketing and sales functions as
well as the day-to-day operations of the business.
• Frequently, the general manager is responsible for
effective planning, delegating, coordinating, staffing,
organizing, and decision making to attain desirable
profit making results for an organization

76. Line & Staff Manager
• According to functional approach line function are those that are
related directly with the attainment of organizational objective & staff
function are those that help line function in attaining the objectives.
• li e function are those which have direct responsibility for
accomplishing the objectives of the enterprise & staff refers to those
elements of the organization that help the line to work most effectively
in accomplishing the primary objective of the enterprise

77. Line & Staff Manager
• Ex- in mfg organization whose basic objective is to
produce & sell goods. production & marketing are line
function & finance, personnel, legal are staff function
• Ex – marketing & selling function may be line function
but market research is staff function
• Line authority carry outs orders & instruction, the
exercise of this authority always downward i.e. superior
to subordinate
• A person performing staff function is called staff
managers
• The nature of staff relationship is advisory.
• Staff authority involves in giving advice to line manager.

78. Line manager authority
The direct relationship between a superior & his subordinate is
created through the enforcement of line relationship
1. As a chain of command
– Line authority is the heart of this relationship because it entitles a
superior to direct the work of his subordinate.
– In this superior is uncontrollable authority except those control
prescribed by organization & regulated by environment factor, of giving
order & subordinate has no alternative except obey those orders
2. As a channel of communication
– Line authority treated as communication between members of the
organization
3. As a carrier of responsibility
– The line relationship carries ultimate responsibility for the work assigned
– Each individual is accountable for the proper performance of the activity
assigned to him

79. Staff Manager authority
The exercise of this authority depends on the degree of authority delegated to staff
man or department. staff authority in following form
1. Advisory staff authority
– He study the problem, offer suggestion, prepare plan for the use & help of line
manager
– Provide advice, assistance & information, He make recommendation to line
managers
– Accepting advice from staff manager is not compulsory for line manager.
2. Concurring staff authority
– Under certain circumstances control over some operation is very important a staff
may be granted authority so that no action can be taken until the concern staff man
agree
– Eg –agreement with the employees over the matter of wages should be entered
only after the personal manager has agree
3. Control staff authority
– certain unit manager with staff authority who directly or indirectly exercise control
over other unit in an organization
– Ex –quality inspection unit has authority over deciding the product which meet the
quality standards through the unit may not involve itself in manufacturing process

80. 4. Functional staff authority
– Means that staff managers can give certain orders directly to line in his
own name instead of making recommendation to his superior or other
line managers.
– Functional authority arises because
– Generally a superior delegates authority to staff man to transform
information proposal
– He will not give recommendation but he will show how to take action
• A staff manager may work with other managers or business
owners in order to create business and company policies, such as
vacation time or dress codes, for instance. In addition, a staff
manager will generally need to know the labor laws regarding
things such as safe business practices and time spent working.
• Primarily, a staff manager is there to serve as a liaison between the
staff of a business and the heads of the business. Employees can
come to this manager with questions or requests for assistance at
work

81. Line manager Staff manager
Line manager is generalist Staff manager is specialist whose
knowledge is limited
Line manager directs others Staff manager assists others
Line manager delegates authority staff manager serves authority
Line manger exerts control over
his or her subordinates
Staff manager makes plan
Line manger has veto power Staff manager supports line effort
Line manger makes operating
decisions
Staff manager provides ideas to
line manger
Line manger bears final
responsibility
Staff manager has expertise in
special field.

82. Merits
• Better coordination
• Better execution
• Benefits of R & D
• Training
• Unity in action
Demerits
• Lack of understanding
• Lack of sound advice
• Line & Staff Conflicts
• Costly
• Assumption of authority