Monday, 10 December 2012
Co-ordination: The Essence of Management
Co-ordination brings unity of action
and integrates different activities of organisation. Coordination is considered
as the essence of management because of following reasons:
1.
Coordination
is needed to perform all functions of management :
(i) In planning coordination
is required between main plan and supportive plans of different departments.
(ii) In organizing
coordination is required between different resources of an organisation and
also between authority responsibility and accountability.
(iii) In staffing
coordination required between skill of a person and job assigned to him,
between efficiency and compensation etc.
(iv) In directing
function coordination is required between superior and subordinates, between
orders, instructions, guidelines and suggestions etc.
In controlling function
coordination is required between standards and actual performance.
2.
Coordination
is required at all the levels :
(i)
Top level requires
coordination to integrate all the activities of organization and lead the
efforts of individuals in one common direction.
(ii)
Coordination is required at middle level to balance
the activities of different departments so that these can work as a part of one
organisation only.
(iii) Lower
level requires coordination to integrate the activities of workers towards
organisational objectives.
Coordination
is the most important function of an organisation. Any company which fails to
coordinate its activities cannot survive and run successfully for a long period
of time.
For example, Allwyn
Company, established in 1942, was the first company to produce a double-decker
bus. It was running successfully as a leading electronic industry, especially
in refrigeration industry. By the end if 1980 the company faced the problem of
co-ordination. There was lack of balance of integration of different
activities; as a result the company started facing huge looses and by 1993
company had an accumulated loss of Rs.168 crore. Company failed to balance its
departmental activities and product folios.
So in short we can say without coordination
no company can work efficiently and earn profit.
CO-ORDINATION
Apart from other functions, there is one more important
function which every manager has to perform. This is called co-ordination. It is not only a
function but it is essence of management.
Co-ordination can be defined as “Synchronization of efforts
from the stand-point of time and the sequence of execution”. In general
co-ordination means bringing together the activities and resource of
organization and bringing harmony in them.
Coordination is the base or primary function of
every manager because every manager because various departments of an organization
are working independently and there is need to relate and integrate their
activities.
Elements of Coordination
The key elements of co-ordination are:
i.
Integration.
It refers to the unification of all unrelated interests or
activities bringing together the efforts and directing them to a common
direction. Integration results is better performance of the organization
In
the organization employees come from different backgrounds, they have different
interests, different aspirations. The coordinate function is unify and bring
together the interests of all the employees towards the interests of the
organizations.
ii.
Balancing. It means integrating the activities and efforts of different
departments, working independently. It brings harmony in the working of whole
company. Although the departments of an organization work independently but
their activities must relate to each other, else there can be chaos and
confusion.
For example, the sales department has taken an
order of 1000 units, it cannot execute the order unless and until production
department produces 1000 units, production department cannot produce 1000 units
unless and until purchase department provides raw materials and so on. So we
can see that although departments seem to work independently but they depend on
each other so there is need to balance and match the activities of different
departments.
iii.
Timing. It means scheduling the operations in a suitable order so that
there is no interruption in the operating process due to delay in one activity.
Integrating the timing of different activities lead to smooth flow and smooth
working of an organisation.
Wednesday, 28 November 2012
Tuesday, 27 November 2012
Tuesday, 30 October 2012
LEVELS
OF MANAGEMENT
As we have already learnt that management does not refer to a single
individual but it refer to a group of persons. In companies large number of
persons are employed and placed at different places to perform different
managerial activities. To carry on these activities these employees are given
necessary authority and responsibility. This grant of authority results in
creation of chain of authority. This chain is divided into three levels which result
in creation of three levels of management.
The main levels of management are:
1 Top
level management.
2 Middle
level management.
3. Supervisory level, operational or lower level management.
Top Level Management
Top level management consists of Chairman, Board of Directors, Managing
Director, General Manager, President, Vice President, Chief Executive Officer
(C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer etc.
It includes group of crucial persons essential for leading and directing the
efforts of other people. The managers working at his level have maximum
authority.
Main functions of top level management are:
a)
Determining the objective of the enterprise.
The top level managers formulate the main
objectives of the organization. They form long term as well as short term
objectives.
b)
Framing of plans and policies. The top level managers also frame
the plans and policies to achieve the set objectives.
c) Organizing activities to be performed
by persons working at middle level. The top level management assign jobs to different
individuals working at middle level.
d)
Assembling all the resources such as
finance, fixed assets etc. The top level management all the finance required to carry on activities
in the organization.
e)
Controlling the performance of
employees. The top
level management keeps a check on employees and their performance. They make
sure that plans are implemented in the right direction.
f) Liaison with outside world, for
example, meeting Government officials etc. The top level management remain in contact with
government, competitors, suppliers, media etc.
Middle Level Management
This level of management
consists of departmental heads such as purchase
department head, sales department head, finance manager, marketing manager,
executive officers, plant superintendent etc. People of this group are
responsible for executing the plans and policies made by top level. They act as
a link between top and lower level management. They also exercise the functions
of top level for their department as they make plans and policies for their
department, organize and collect the resources etc.
Main functions of middle level management are:
a) Interpretation of policies framed by top management to lower level. Middle level management act as a
linking pin between top level and lower level management. They only explain the
main plans and policies framed by top level management to lower level
.
b) Organizing the activities of their department for executing the plans and
policies. Generally middle
level managers are head of some department. So they organise all the resources and activities of their
department.
c) Finding out or recruiting/selecting and
appointing the required employees for their department. The middle level
management select and appoint employees of their department.
d) Motivating the persons to perform to their best ability. The middle level managers offer
various incentives to employees so that they can get motivated and perform to
their best ability.
Supervisory
Level /Operational Level
This
level consists of supervisors,
superintendent, foreman, sub-department executives, clerk etc. Managers of
this group actually carry on the work to perform the activities according to
the plans of top and middle level management. Their authority is limited. The
quality and quantity of output depends upon the efficiency of this level of
managers. They pass on the instruction to workers and report to the middle
level management. They are also responsible for maintaining discipline among
the workers.
Functions of lower level management are:
a)
Representing the problems or grievances
of workers before the middle level management. The supervisory level managers are
directly linked with subordinates so they
are the right persons to understand the problems and grievances of
subordinates. They pass these problems to middle level management.
b)
Maintaining good working conditions
and developing healthy relations between superior and subordinate. The supervisory managers provide good
working conditions and crate supportive work environment which improve
relations between supervisors and subordinates.
c)
Looking to safety of workers. Supervisory
level managers provide safe and secure work environment for workers.
d)
Helping the middle level management
in recruiting, selecting and appointing the workers. The supervisory level managers guide
and help the middle level managers when they select and appoint employees.
e)
Communicating with workers and
welcoming of their suggestions. The supervisory level managers encourage the workers to take
initiative. They welcome their suggestions and reward them for good
suggestions.
f)
They try to maintain precise standard
quality and ensure steady flow of output. The supervisory level managers make sure that quality
standards are maintain by the workers.
g)
They are responsible for boosting the
morale of the workers and developing the team spirit in them. They motivate the employees and boost
their morale.
Sunday, 28 October 2012
Management: Both Science and Art
Management is both science as well as art. Like science it
has systematic and well-organised body of knowledge and like art it requires
personal skill, creativity and practice to apply such knowledge in the best
possible way. Science and art are not in contrast to each other; both exist together
in every function of management.
Management as a Profession
Profession can be defined as an occupation backed by specialized
knowledge and training, in which is restricted.
The main features of profession are:
1. Well defined Body of knowledge. In every profession there is practice of systematic body of knowledge
which helps the professionals to gain specialized knowledge of that profession.
In case of management also there is availability of systematic body of
knowledge. There are large numbers of books available on management studies.
Scholars are studying various business situations and are trying to develop new
principles to tackle these situations.
2. Restricted Entry. The
entry to a profession is restricted through an examiner or degree. For example
a person can practice as Doctor only when he is having M.B.B.S degree. Whereas there
is no legal restriction on appointment of a manager, anyone can become a manager
irrespective of the educational qualification. But now many companies prefer to
appoint managers only with MBA degree. So presently this feature of profession is not present in management but
soon it will be included
with statutory backing.
3. Service Motive. The basic motive of every profession is to serve the clients with
dedication. Whereas basic purpose of management is achievement of management
goal, for example for a business organization the goal can be profit maximization.
But nowadays only profit maximization
cannot be the sole goal of an enterprise. To survive in market for a long
period of time, a businessman must give due importance to social objectives
along with economic objectives.
So presently this feature of profession is not present but very soon it
will be included.
4. Existence Of Ethical Codes. For
every profession there are set of ethical codes fixed by professional organizations
and are binding on all the professionals of that profession. In case of
management there is growing emphasis on ethical behavior of managers. All India
Management Association (AIMA) has devised a code of conduct for Indian managers.
But legally it is not compulsory for all the managers to get registered with
AIMA and abide by the ethical codes.
So presently this feature of
profession is not present in management but very soon it will be included with
statutory backing.
5. Presence Of Professional Associations. For
all the professions, special associations are established and every professional
has to get himself registered with his association before practicing that
profession. For example, doctors have to get themselves registered with Medical
Council of India, lawyers with Bar Council of India etc.
In case of management various management associations are set up at
national and international levels which have some membership rules and set of
ethical codes, for example, AIMA in New Delhi, National Institute of Personal
Management at Calcutta etc., but legally it is not compulsory for managers to
become a part of these organizations by registration.
So presently this feature of profession is not present in management but
very soon it will be included and get statutory backing also.
Saturday, 27 October 2012
1.5.2
Management as an Art
Art can be defined as a systematic body of knowledge which requires
skill, creativity and practice to get perfection.
The main features of
art are:
1. Systematic body of knowledge/Existence of theoretical
knowledge. In every
art there is systematic and organized study material available to acquire theoretical
knowledge of the art. For example, various books on different ragas are available in music. In management
also there is systematic and organised body of knowledge available which can
help in acquiring managerial studies. So this feature of art is present in
management also.
2. Personalized application. In the field of art only theoretical
knowledge is not enough. Every artist must have personal skill and creativity
to apply that knowledge. For example, all musicians learn some ragas according to their personal skill and creativity which
makes them different. In management also all managers learn same management
theories and principles. But their efficiency depends how well they use these
principles under different situations by applying personal skills and creativity
so this feature of art is present in management.
1.5
NATURE OF MANAGEMENT
Some authors regard management as science because there are well
tested and experimented principles of management, some authors describe
management as an art because more practice
is required in management and
some authors consider that management is going towards the paths of profession.
To conclude whether management is science, art and profession and compare them
with management meaning and features.
Management as a Science
Science can be defined as a systematic and organised body of
knowledge based on logically observed findings, facts and events.
Science comprises of exact principles which can be verified
and it can establish cause and effect relations.
Main characteristics/features
of science are:
1.
Systematic body of knowledge. In science organised and systematic
study of material is available which is used to acquire the knowledge of science.
Like science in management also there is availability of systematic and organised
study material. So first feature of science is present in management.
2. Scientific principles are derived on
the bases of logical and scientific observations. The scientists perform logical
observation before deriving any principle or theory. They are very objective
while doing the observations. But when managers are observing they have to
observe human beings and observation of human being cannot be purely logical
and objective. Some kind of subjectively enters in the observations so this
feature of science is not present in management.
3. Principles are based on repeating
experiments. Before
developing scientific principles scientists test these principles under
different conditions and places. Similarly, managers also test and experiment
managerial principles under different conditions in different organizations. So
this feature of science is present in management.
4. Universal Validity. Scientific principles have universal application
and validity. Management principles are not exact like scientific principles so
their application and use is not universal. They have to modify according to
the given situation. So this feature of science is not present in management.
5. Replication is possible .In science replication is possible as
when two scientists are undertaking the same investigation working independently
and treating the same data under the same conditions may desire or obtain the
identical or exactly same result.
But in management managers have to
conduct research or experiments on human beings. So if two managers are
investigating same data, on different sets of human beings they will not get
identical or same result because human beings never respond in exactly identical
manner. So this feature of science is also not present in management.
Friday, 26 October 2012
Wednesday, 24 October 2012
1.4
Importance Of Management
The major importance of management are :
1. Management helps in achieving group goal: Management tries to integrate the objectives of individuals along with organisational goal. Management directs the efforts of all the individuals in the common direction of achieving organisational goal.
2. Management improves efficiency: Managers try to reduce the cost and improve the productivity with minimum wastage of resources. Management insists on efficiency and effectiveness in the work through planning, organizing, staffing, directing and controlling.
3. Management creates a dynamic organisation: Organisations have to survive in dynamic environment so managers keep making changes in the organisation to match the environmental changes. The employees in the organisation are generally resistant to change. Efficient management motivate employees to adopt changes willingly by convincing them that change is not only beneficial for organisation but it improve the employee's work also in the competitive world.
4. Management helps in achieving personal objectives: An efficient manager is the one who brings maximum prosperity for employer and employees as well. Manager lead the people in such a manner that along with organisational goal individual goal of employees is also achieved. As organisational goal and individual goal are in one direction only. Individual wants to earn more and organisation wants maximum production. Employees can earn more by producing more. This will fulfill the objectives of both the groups.
5. Management help in developing of society: Efficient management always has multiple objectives, they give due importance to social obligations, towards different groups of people such as employees, customers, suppliers etc. It insists on providing quality goods, competitive salary, create employment opportunities etc. By increasing production management also contributes to increase in GDP (gross domestic product) and leads to growth of nation .
6. Management brings harmony in work: In an organisation employees come from different backgrounds, they have different attitudes and different styles of working and if every one start following his own style, it can lead to chaos and confusion in the organisation. By giving directions managers bring uniformity and harmony in the action of employees.
Monday, 22 October 2012
Objectives Of Management
Objectives are the ends towards which the activities of an organisation are directed and the standards against which the performance is assessed.
The managerial objectives of an organisation can be classified into three major categories :
1. Organisational Objectives
2. Social Objectives
3. Personal Objectives
1.3.1
Organisational Objectives
These objectives aim at prosperity and growth of the organisation. Generally it is assumed that profit maximization is the main objective of every organisation but it is not true. The managers try to develop and attain variety of objectives in all management areas which reduces cost and brings maximum prosperity for organisation.
The three important organisational objectives of a manager are :
1. Survival: The basic purpose of every organisation is to survive and exist in the competition market for a long period of time and it is possible only when it is able to cover its cost and earn profits.
2. Profit: The most important objectives of every organisation is earning adequate amount of profit. Profit is essential for survival, growth and expansion of business. Profit is the reward given to businessman for bearing risk.
3. Growth: Business organisation must grow and expand their activities. The success of any organisation is measured by the growth rate and growth is measured in terms of sales, number of branches, number of products, number of employees etc.
1.3.2
Social Objectives
Social objectives of the organisation deal with the commitment of the organisation towards the society. Business organisations are the part of society. They earn by using the resources of society so they must do something for society also.
The major social objectives of organisation are :
(a) Supply of quality products at reasonable prices.
(b) Contribution towards desirable civic activities.
(c) Generation of economic wealth.
(d) Generation of employment opportunities.
(e) Financial support to community.
(f) Organizing educational, health and vocational train programmers.
(g) Participating actively in social service projects of Govt. and N.G.Os.
(h) Using environmental friendly methods of productions.
(i) Providing employment opportunities to weaker section of society.
For example, Asian Paints contributed large amounts funds to enable farmers to use local resources effectively
Steel Authority of India Ltd. contributed regularly for agriculture, industry, education, health, care and drinking water supply to the people living nearby their steel plants.
1.3.3
Personal Objectives
Individual objectives are related to the employees of the organisation. As employees are most important resources of every company and satisfied and motivated employees contribute maximum for the organisations.
The main individual objective of management are :
(a) Competitive salary
(b) Personal growth and development (promotion, training etc.)
(c) Peer recognition (self respect and respect for colleagues.)
(d) Good and Healthy working conditions.
(e) Social recognition.
Workers may lose interest in work if their objectives are neglected. Management must try to integrate the personal objectives with the organisational objectives.
Sunday, 21 October 2012
1.2 Characteristics Or Features Of management
1: Management is goal oriented process: Management always aims at achieving the organisational objectives. The functions and activities of manager lead to the achievements of organisational objectives; for example, if the objective of a company is to sell 1000 computers then manager will plan the course of action, motivate all the employees and organize all the resources keeping in mind the main target of selling 1000 computers.
2: Management is Pervasive: Management is a universal phenomenon. The use of management is not restricted to business firms only, it is applicable in profit-making, non-profit making, business or non-business organisations ; even a hospital, school, club and house has to be managed properly. Concept of management is used in the whole world whether it is in USA, UK, Australia or India etc.
3: Management is Multidimensional: Management does not mean one single activity but it includes three main activities:
- Management of work
- Management of people
- Management of operations
(ii) Management of people : People refers to human resources and human resources are the most important assets of an organisation. An organisation can win over competitor with efficient employees only because two organisations can have same physical, technological and financial resources but not human resources. Management has to get task accomplished through people only.
Managing people has two dimensions
(a) Taking care of employee's individual needs.
(b) Taking care of group of people
4: Management is a continuous process: Management is a continuous or never ending function. All the functions of management are performed continuously, for example planning, organizing, staffing, directing and controlling are performed by all the managers all the time. Sometimes, they are doing planning, then staffing or organizing etc. Managers performs ongoing series of functions continuously in the organizing.
5: Management is a group activity: Management always refers to a group of people involved in managerial activities. The management functions cannot be performed in isolation. Each individual performs his/her role at his/her status and department,then only management function can be executed. Even the result of management affects every individual and every department of the organisation so it always refers to a group effort and not the individual effort of one person.
6: Management is dynamic function : Management has to make changes in goal, objectives and other activities according to changes taking place in the environment. The external environmental such as social, economical, technical and political environment has great influence over the management. As changes take place in these environments, same are implemented in organisation to survive in the competitive world.
7: Intangible: Management functions cannot be physically seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and co-ordination in the working environment. It is more easy to feel the presence of mismanagement as it leads to chaos and confusion in the organisation.
8: Composite process: Management consists of series of functions which must be performed in a proper sequence. These functions are not independent of each other. They are inter -dependent on each other. As the main function of management are planning, organizing, directing, and controlling ; organizing cannot be done without doing planning. similarly directing function cannot be executed without staffing and planning and it is difficult to control the activities of employees without knowing the plan. All the functions inter-dependent on each other that is why management is considered as a composite process of all these functions.
9: Balancing effectiveness and efficiency: Effectiveness means achieving targets and objectives on time. Efficiency refers to optimum or best utilization of resources. Managements always try to balance both and get the work done successfully. Only effectiveness and only efficiency is not enough for an organisation : a balance must be created in both.
INTRODUCTION
Management is necessary for all the organisations irrespective of its size, nature and functions. The concept of management is not restricted to business organisation but not even non-business organisation needs to manage its functions. Management is a pervasive and universally accepted function.
No organisation can work smoothly and efficiently without management.
Few examples are:
- Infosys has become a leading IT Company due to managerial efficiency of Narain Murthy and his managerss
- HCL has grown into a big and famous company because of its management.
- Wipro is running successfully due to managerial efficiency of Assem Premjee and his group of managers.
- Pepsi, Coke, Reliance are running due to efforts of management.
Management is essential for all types of organisations i.e business as well as non-business and when we talk management it, includes series of activities performed by managers by working at different levels.
1.1
Concept Of Management (Meaning and Definition)
To understand the concept of management we must know the meaning of management.
Management is defined differentyly by different authors.
Traditionally Management was Defined as
1 "Management is the art of getting work done through others".
Mary Parker Follet
2 "Management consists of getting things done through others". A manager is one who accomplishes organisational objectives by directing the efforts of others.
C.S George
The Traditional Viewpoint of management is considered inappropriate in the present day environment where workers are educated and have higher level of aspirations. In present day environment it is not possible to direct the efforts of employees by force. It is necessary to create an environment so that employees perform in a desired manner ; on the other hand,traditional definition does not define functions of management.
Definition by different authors {Modern Concept}
1 "To manage is to forecast, to plan to organize, to command, to coordinate and to control".
2 "Management is the creation of an internal environment where individuals working in a group can perform effectively and efficiently for the achievement of organisational goal".
3 "Management is establishing an effective environment for people operating in a formal organisational group".
Koontz and O'Donnel
4 "Management is the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way".
James L. Ludney
5 "Management is the co-ordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated objectives".
F.W. Taylor
6 "Management is the process by which a co-operative group directs actions of others towards common goals".
Marrie and Douglas
Modern Concept of Management
According to modern concept "management is a process of getting things done with the aim of achieving goals effectively and efficiently".
Modern definition insist on :
1. Process: Process refers to the series of steps or basic functions necessary to get the things done. These steps are planning, organizing, staffing, directing and controlling.
2. Effective and efficient performance: Modern concept of management says that employees must be effective as well as efficient. Effectiveness refers to completion of work or achievement of target on time. Efficiency refers to optimum utilization of resources or no wastage of resources, both are must for every organization ; for example, if the annual target of a worker is to produce 1000 units of output, the employee achieves this target by wasting various resources and by mishandling the machinery then the organization will have no benefit so only effectiveness is not required. It must be accompanied by efficiency.
3: Achievement of group, common or organisational goal: The modern concept of management insist that all the functions and activities of managers must be directed towards the achievement of organisational goal and this goal should be the goal of every employee and must be considered as group or common goal.
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