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MANAGEMENTMANAGEMENT
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What is Management?What is Management?What is Management?What is Management?
A set of activitiesA set of activitiesplanning and decision making, organizing, leading, and planning and decision making, organizing, leading, and controllingcontrolling
directed at an organization’s resources directed at an organization’s resources human, financial, physical, and informationhuman, financial, physical, and information
with the aim of achieving organizational goalswith the aim of achieving organizational goalsin an efficient and effectivein an efficient and effectivemanner.manner.
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What is a Manager?What is a Manager?
Someone whose primary responsibility is to Someone whose primary responsibility is to carry out the management process.carry out the management process.
Someone who plans and makes decisions, Someone who plans and makes decisions, organizes, leads, and controls organizes, leads, and controls human, financial, physical, human, financial, physical, and information resources.and information resources.
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Kinds of Managers by LevelKinds of Managers by Level Top ManagersTop Managers
The relatively small group of executives who The relatively small group of executives who manage the organization’s overall goals, strategy, manage the organization’s overall goals, strategy, and operating policies.and operating policies.
Middle ManagersMiddle ManagersLargest group of managers in organizationsLargest group of managers in organizations
Implement top management’s policies and plans.Implement top management’s policies and plans. Supervise and coordinate lower-level managers’ activities.Supervise and coordinate lower-level managers’ activities.
First-Line ManagersFirst-Line ManagersManagers who supervise and coordinate the Managers who supervise and coordinate the
activities of operating employees.activities of operating employees.
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Management in OrganizationsManagement in Organizations
Inputs from the environment• Human resources• Financial resources• Physical resources• Information resources
Planningand decision
making
Leading
Organizing
Controlling
Goals attained• Efficiently• Effectively
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Figure 1.2Figure 1.2The Management ProcessThe Management Process
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The Management Process The Management Process (cont’d)(cont’d)
Planning and Decision MakingPlanning and Decision MakingSetting an organization’s goals and selecting a course Setting an organization’s goals and selecting a course
of action from a set of alternatives to achieve them.of action from a set of alternatives to achieve them. OrganizingOrganizing
Determining how activities and resources are Determining how activities and resources are grouped.grouped.
Leading Leading Getting organizational members to work together to Getting organizational members to work together to
advance the interests of the organization.advance the interests of the organization. Controlling Controlling
Monitoring organizational progress towards goals.Monitoring organizational progress towards goals.
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Skills and Skills and the the
ManagerManager
Fundamental Fundamental Management Management
SkillsSkills
Fundamental Fundamental Management Management
SkillsSkills
Technical SkillsTechnical Skills
Interpersonal SkillsInterpersonal Skills
Conceptual SkillsConceptual Skills
Diagnostic SkillsDiagnostic Skills
Communication SkillsCommunication Skills
Decision-Making SkillsDecision-Making Skills
Time-Management SkillsTime-Management Skills
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Fundamental Management Fundamental Management SkillsSkills
TechnicalTechnicalSkills necessary to accomplish or understand the Skills necessary to accomplish or understand the
specific kind of work being done in an specific kind of work being done in an organization.organization.
InterpersonalInterpersonalThe ability to communicate with, understand, and The ability to communicate with, understand, and
motivate both individuals and groups.motivate both individuals and groups. ConceptualConceptual
The manager’s ability to think in the abstract.The manager’s ability to think in the abstract. DiagnosticDiagnostic
The manager’s ability to visualize the most The manager’s ability to visualize the most appropriate response to a situation.appropriate response to a situation.
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Fundamental Management Skills Fundamental Management Skills (cont’d)(cont’d)
CommunicationCommunicationThe manager’s abilities both to convey ideas and The manager’s abilities both to convey ideas and
information effectively to others and to receive ideas information effectively to others and to receive ideas and information effectively from others.and information effectively from others.
Decision-MakingDecision-MakingThe manager’s ability to recognize and define The manager’s ability to recognize and define
problems and opportunities correctly and then to select problems and opportunities correctly and then to select an appropriate course of action to solve the problems an appropriate course of action to solve the problems and capitalize on opportunities.and capitalize on opportunities.
Time-ManagementTime-ManagementThe manager’s ability to prioritize work, to work The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.efficiently, and to delegate appropriately.
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Management: Science or Art?Management: Science or Art? The Science of ManagementThe Science of Management
Assumes that problems can be approached using Assumes that problems can be approached using rational, logical, objective, and systematic ways.rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making Requires technical, diagnostic, and decision-making skills and techniques to solve problems.skills and techniques to solve problems.
The Art of Management The Art of Management Decisions are made and problems solved using a Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal blend of intuition, experience, instinct, and personal insights.insights.
Requires conceptual, communication, interpersonal, Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks and time-management skills to accomplish the tasks associated with managerial activities.associated with managerial activities.
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CONCEPTS OF MANAGEMENTCONCEPTS OF MANAGEMENT
DEFINITION: DEFINITION:
It is difficult to define ‘Management’ It is difficult to define ‘Management’ because it is looked in to by different scholars because it is looked in to by different scholars from different way from different way
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The Economist consider Management as a The Economist consider Management as a resource like Land, Labour, Capital and resource like Land, Labour, Capital and Organisation.Organisation.
The Bureaucrats consider it as an authority The Bureaucrats consider it as an authority
The Sociologists consider managers as a part The Sociologists consider managers as a part of the class elite classof the class elite class
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Henry L.SiskHenry L.Sisk
Defines Management is the coordination of all Defines Management is the coordination of all resources through the process of Planning, resources through the process of Planning, Organizing, Directing and Controlling in order Organizing, Directing and Controlling in order to attain stated objectivesto attain stated objectives
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Ralph C.DavisRalph C.Davis
Defines Management as a function of Defines Management as a function of Executive LeadershipExecutive Leadership
Peter DruckerPeter DruckerDefines Management as a Multi purpose organ Defines Management as a Multi purpose organ that manager a business, Manager Mangers that manager a business, Manager Mangers and Managers workers and work.and Managers workers and work.
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Concepts of ManagementConcepts of Management
The terms management has been interrupted The terms management has been interrupted in several ways as below.in several ways as below.
i.i. Management as an Activity:Management as an Activity:
It is an activity like playing, studying, It is an activity like playing, studying, teaching etc. It is an art of getting things teaching etc. It is an art of getting things done through the effort of othersdone through the effort of others
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ii. Management as a Process:ii. Management as a Process:
It is include the process of Planning, It is include the process of Planning, Organizing, Staffing, Directing and Organizing, Staffing, Directing and Controlling functions. As a process the Controlling functions. As a process the management includes social process, management includes social process, integrated process, continuous process and integrated process, continuous process and interactive processinteractive process
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iii. Management as an Economic Sources:iii. Management as an Economic Sources:
Management occupies the central Management occupies the central place among other 4 m’s Men, Machine, place among other 4 m’s Men, Machine, Material and MoneyMaterial and Money
Man Power
Money
Machine
Management Material
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Management as a TeamManagement as a Team
Managers operate at different levels of Managers operate at different levels of authority like top, Middle, Operating etc. authority like top, Middle, Operating etc. Management is managing all these activities in Management is managing all these activities in a team sprit. Managers have become elite class a team sprit. Managers have become elite class in society occupying position with enormous in society occupying position with enormous power and prestige.power and prestige.
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Management as an Academic Management as an Academic Discipline Discipline
Management has became a very popular field Management has became a very popular field of study since offers a very rewarding and of study since offers a very rewarding and challenging career.challenging career.
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Management as a groupManagement as a group
Management means the group of persons Management means the group of persons occupying managerial position like executives, occupying managerial position like executives, departmental head, supervisor etc.departmental head, supervisor etc.
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NATURE AND NATURE AND CHARACTERISTICS OF CHARACTERISTICS OF
MANAGEMENTMANAGEMENT
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(i) Management as a goal oriented(i) Management as a goal oriented
The main goal of Management is to ensure The main goal of Management is to ensure efficiency and economy is the utilisation of efficiency and economy is the utilisation of human, physical and financial resourceshuman, physical and financial resources
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(ii) Management is Universal(ii) Management is Universal
All type of organization like family, club, All type of organization like family, club, university, government, army, cricket team (a) university, government, army, cricket team (a) business, require managementbusiness, require management
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(iii) Management is an interactive (iii) Management is an interactive forceforce
Management reconciles the individual goals Management reconciles the individual goals with organizational goals. It integrates human with organizational goals. It integrates human and other resourcesand other resources
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(iv) Management is a social process(iv) Management is a social process
Management is done by the people, through Management is done by the people, through the people and for the people concerned with the people and for the people concerned with interpersonal relationship. A good manager is interpersonal relationship. A good manager is a leader and not a bossa leader and not a boss
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(v) Management is Multidisciplinary(v) Management is Multidisciplinary
Management depends up on wide knowledge Management depends up on wide knowledge derived from several discipline like derived from several discipline like engineering, sociology, psychology, engineering, sociology, psychology, economics etc.economics etc.
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(vi) Management is a Continuous (vi) Management is a Continuous processprocess
Management is a continuous process which Management is a continuous process which continues until the goal is achievedcontinues until the goal is achieved
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(vii) Management is intangible(vii) Management is intangible
It is invisible force. It cannot be seen but its It is invisible force. It cannot be seen but its presence can be feltpresence can be felt
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(viii) Management Art as well as (viii) Management Art as well as SciencesSciences
Management consists of theoretical knowledge Management consists of theoretical knowledge as well as practical application of such as well as practical application of such knowledgeknowledge
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Objectives of ManagementObjectives of Management
(i)(i) Organisational objectives :- It includesOrganisational objectives :- It includes
(a) Reasonable Profit(a) Reasonable Profit
(b) Survival and solvency of business(b) Survival and solvency of business
(c) Growth and expansion of the enterprise(c) Growth and expansion of the enterprise
(d) Improve the Good will and reputation(d) Improve the Good will and reputation
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(ii) Personal Objectives(ii) Personal Objectives
(a) Fair remuneration(a) Fair remuneration
(b) Reasonable working conditions(b) Reasonable working conditions
(c) Training and Development(c) Training and Development
(d) Participation is Management(d) Participation is Management
(e) Security of Service(e) Security of Service
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(iii) Social Objectives(iii) Social Objectives
(i) Prompt payment of Taxes(i) Prompt payment of Taxes
(ii) Conservation of energy(ii) Conservation of energy
(iii) Preservation of ethical value(iii) Preservation of ethical value
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LEVELS OF MANAGEMENTLEVELS OF MANAGEMENTBoard of DirectorBoard of Director
Managing Director Top LevelManaging Director Top Level
General ManagerGeneral Manager
Departmental ManagerDepartmental Manager
Middle Level Middle Level Deputy Manager Deputy Manager
Asst. ManagerAsst. Manager
SupervisorsSupervisors Lower Lower
LevelLevelWorkersWorkers
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Figure 1.1 Figure 1.1 Kinds of Managers by Level and Kinds of Managers by Level and
AreaArea
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Distinction Between Management Distinction Between Management and Administrationand Administration
Oliver Sheldon defines administration as a Oliver Sheldon defines administration as a function concerned with the determination of function concerned with the determination of corporate policies, the coordination of finance, corporate policies, the coordination of finance, production, distribution, structure under the production, distribution, structure under the ultimate control of the executiveultimate control of the executive
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Distinction Between Management Distinction Between Management and Administration (Contd.)and Administration (Contd.)
On the other hand Management is concerned On the other hand Management is concerned with the executives of policy within the limit with the executives of policy within the limit set by the administration. Thus administration set by the administration. Thus administration is a thinking process and management as doing is a thinking process and management as doing process process
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Three points of viewThree points of view
(i)(i) Administration is different from ManagementAdministration is different from Management
This view is largely held by American experts. This view is largely held by American experts. They held that administration is a higher level They held that administration is a higher level activity while management is a lower level activity while management is a lower level function. The administration involves decision function. The administration involves decision making while the management is concerned with making while the management is concerned with the execution of policies and supervision of work. the execution of policies and supervision of work. According to American school of thought According to American school of thought Administration is superior to management.Administration is superior to management.
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(ii) Administration is a part of (ii) Administration is a part of ManagementManagement
According to European school of thought of According to European school of thought of management is inclusive of Administration and management is inclusive of Administration and Organisation.Organisation.
Management is the policy making including planning Management is the policy making including planning and guidance, where as Administration is executive and guidance, where as Administration is executive of above planning. Thus management is planning of above planning. Thus management is planning agency while administration is an implementation agency while administration is an implementation agency. Thus European just appropriate view of agency. Thus European just appropriate view of AmericansAmericans
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(iii) Administration and Management (iii) Administration and Management are oneare one
Many writers like Henri Fayol, New man Many writers like Henri Fayol, New man viewed that the management and viewed that the management and administration are one and same used administration are one and same used interchangedly. The term Administration is interchangedly. The term Administration is more popular in Government and other Public more popular in Government and other Public sector organisation and the term Management sector organisation and the term Management is more commonly used in other business is more commonly used in other business world. world.
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iii) Administration and Management iii) Administration and Management are one (Cont.d)are one (Cont.d)
To solve this conflict of Opinions between To solve this conflict of Opinions between administration and management. Management administration and management. Management classified into – classified into –
(i) Administrative Management(i) Administrative Management
(ii) Operative Management(ii) Operative Management
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Distinguish Between Distinguish Between Administration and ManagementAdministration and Management
Points of Points of distinctiondistinction
AdministrationAdministration ManagementManagement
1.1. NatureNature It is a It is a determinative or determinative or thinking functionthinking function
It is an executive It is an executive or doing functionor doing function
2. Type of Work2. Type of Work It is concerned It is concerned with the with the determination of determination of majormajor
It is concerned It is concerned with the with the implementation of implementation of policiespolicies
3. Levels of 3. Levels of authorityauthority
It is mainly a top It is mainly a top level functionlevel function
It is largely a It is largely a middle and lower middle and lower level functionlevel function
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Distinguish Between Distinguish Between Administration and ManagementAdministration and Management
4. Influence 4. Influence Decision are Decision are influenced by influenced by Public opinion Public opinion and outside forcesand outside forces
Decision influenced Decision influenced by Objectives and by Objectives and Policies of the Policies of the CompanyCompany
5. Direction of 5. Direction of Human EffortsHuman Efforts
Not directly Not directly concernedconcerned
Actively concernedActively concerned
6. Main 6. Main FunctionsFunctions
Planning and Planning and Control are main Control are main functionsfunctions
Directing and Directing and Organizing are main Organizing are main functionsfunctions
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Distinguish Between Administration Distinguish Between Administration and Managementand Management
7. Skills required7. Skills required Conceptual and Conceptual and Human SkillsHuman Skills
Technical and Technical and Human SkillsHuman Skills
8. Usage 8. Usage Government and Government and Public sectorPublic sector
Business Business OrganizationsOrganizations
9. Illustrations9. Illustrations Commissioner, Commissioner, Registrar, Vice-Registrar, Vice-Chancellor, Chancellor, Governor etcGovernor etc
Managing Managing Director , General Director , General Manager, Sales Manager, Sales Manager, Branch Manager, Branch Manager etc.Manager etc.
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Meaning of PlanningMeaning of Planning
Planning is the process of deciding in Planning is the process of deciding in advance what is to be done, how it is to be advance what is to be done, how it is to be done, where, when and whom.done, where, when and whom.
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According to L.F.Ur WickAccording to L.F.Ur Wick
Planning is fundamentally a mental Planning is fundamentally a mental predisposition to do things is an orderly way, predisposition to do things is an orderly way, to think before and to act in the light of the to think before and to act in the light of the fact rather than of guesses.fact rather than of guesses.
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Features of PlanningFeatures of Planning
a)a) Planning is good – orientedPlanning is good – oriented
b)b) Planning is future orientedPlanning is future oriented
c)c) Planning is an mental exercise involves creative Planning is an mental exercise involves creative thinking thinking
d)d) Planning is a primary functionPlanning is a primary function
e)e) Different planning is required for different levels of Different planning is required for different levels of organisation (Pervasiveness)organisation (Pervasiveness)
f)f) Planning is Continuous Planning is Continuous
g)g) Planning aims at efficiencyPlanning aims at efficiency
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Importance of PlanningImportance of Planning
i)i) Make objectives clearMake objectives clear
ii)ii) Helps the organisastion a right pathHelps the organisastion a right path
iii)iii) It reduces risks and uncertaintyIt reduces risks and uncertainty
iv)iv) It improves efficiency of operationIt improves efficiency of operation
v)v) It provides the basis of controlIt provides the basis of control
vi)vi) It facilitate decision makingIt facilitate decision making
vii)vii) Effective co-ordinationEffective co-ordination
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Limitation of PlanningLimitation of Planning
i.i. Assumptions not fully reliableAssumptions not fully reliableii.ii. The condition under which plans are The condition under which plans are
implemented may differ from assumed implemented may differ from assumed conditions.conditions.
iii.iii. Availability of time is a limiting factor for Availability of time is a limiting factor for planningplanning
iv.iv. Cost involved in planningCost involved in planningv.v. Mental attitudeMental attitude
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Steps in PlanningSteps in Planning
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Principles of PlanningPrinciples of Planning
a.a. Principles of contribution to objectivesPrinciples of contribution to objectives
b.b. Principles of PervasivenessPrinciples of Pervasiveness
c.c. Principles of Limiting factorPrinciples of Limiting factor
d.d. Principles of FlexibilityPrinciples of Flexibility
e.e. Principles of Navigational changePrinciples of Navigational change
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Kinds of PlanningKinds of Planning
a.a. Long range PlanLong range Plan
b.b. Short range PlanShort range Plan
c.c. Strategic PlanningStrategic Planning
d.d. Operational PlanningOperational Planning
e.e. Functional PlanningFunctional Planning
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Decision MakingDecision Making
Definition:Definition:
According to Lereitner :According to Lereitner :
Decision Making is a process of identifying Decision Making is a process of identifying and choosing alternative courses of action in a and choosing alternative courses of action in a manner appropriate to the demand of the manner appropriate to the demand of the situation situation
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According to Peter Drucker:According to Peter Drucker:
Whatever Manager does, he does through Whatever Manager does, he does through Decision MakingDecision Making
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Six Steps in Decision MakingSix Steps in Decision Making
Figure 7.4
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Theories of Decision MakingTheories of Decision Making
1.1. Marginal Theory : This theory stresses an Marginal Theory : This theory stresses an profit maximizationprofit maximization
2.2. Psychological Theory : This theory stresses Psychological Theory : This theory stresses on customer satisfaction on customer satisfaction
3.3. Mathematical Theory: This theory arrives Mathematical Theory: This theory arrives decision making using models like Linear decision making using models like Linear Programming, Probability etc.Programming, Probability etc.
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Problems in Decision MakingProblems in Decision Making
1.1. Correctness of DecisionCorrectness of Decision
2.2. Timing of DecisionTiming of Decision
3.3. Effective Communication of DecisionsEffective Communication of Decisions
4.4. Participation in Decision MakingParticipation in Decision Making
5.5. Decision EnvironmentDecision Environment
6.6. Implementation DecisionImplementation Decision
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Modern Quantitative Techniques of Modern Quantitative Techniques of Decision MakingDecision Making
1.1. Linear programming : It is based on the Linear programming : It is based on the assumption that there exist a linear assumption that there exist a linear relationship between the variables.relationship between the variables.For Example:For Example:With the help of linear equation, optimum With the help of linear equation, optimum combination of cost, time and utilization of combination of cost, time and utilization of time can be compared. The main object of time can be compared. The main object of this techniques is to either maximize benefit this techniques is to either maximize benefit or to minimizes costor to minimizes cost
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2. Probability Theory2. Probability Theory
This statistical device is based on the assumption This statistical device is based on the assumption that certain things are likely to happen in that certain things are likely to happen in future depending on assumed probabilities. Ex. future depending on assumed probabilities. Ex. Pay-off matrices, Decision trees.Pay-off matrices, Decision trees.
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3.Queueing Theory3.Queueing Theory
It is based on the assumption that although It is based on the assumption that although delays are costly, eliminating them may be delays are costly, eliminating them may be even more costly. This techniques may be even more costly. This techniques may be used in service organisations hospitals and used in service organisations hospitals and banksbanks
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4.Simulation4.Simulation
For example : Instead of studying and For example : Instead of studying and analyzing transportation system of Chennai in analyzing transportation system of Chennai in a real life, its models can be prepared and real a real life, its models can be prepared and real solution can be simulated to it solution can be simulated to it
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5. Net Work Techniques5. Net Work Techniques
The project evaluation and review techniques The project evaluation and review techniques (PERT) and critical path method (CPM) are (PERT) and critical path method (CPM) are used for planning, monitoring and used for planning, monitoring and implementing a project implementing a project
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6. Decision Trees6. Decision Trees
It is a graphic method used for identifying the It is a graphic method used for identifying the alternatives and risk and outcome associated alternatives and risk and outcome associated with each alternativeswith each alternatives
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DelegationDelegation
Definition :Definition :
According to Haimann “Delegation” of According to Haimann “Delegation” of authority merely means granting authority to authority merely means granting authority to subordinate to operate within prescribed limitssubordinate to operate within prescribed limits
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The Process of DelegationThe Process of Delegation
1.1. Assignment of DutiesAssignment of Duties
2.2. Granting of AuthorityGranting of Authority
3.3. Creating of Responsibility Creating of Responsibility
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Difference between Authority and Difference between Authority and Responsibility Responsibility
Sales Manager
Sales Manager
Sales Officer
Branch Manager
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AccountabilityAccountability
It is the obligation of a subordinate to report It is the obligation of a subordinate to report back to his superior that the job entrusted to back to his superior that the job entrusted to him has been successfully completedhim has been successfully completed
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Centralisation and DecentralisationCentralisation and Decentralisation
According to Henri Fayol “Every thing which According to Henri Fayol “Every thing which goes to increase the subordinates” roles is goes to increase the subordinates” roles is decentralisation, every thing which goes to decentralisation, every thing which goes to decrease it is centralisation”decrease it is centralisation”
In centralised administration, the staff In centralised administration, the staff depend on the top management for guidance on all depend on the top management for guidance on all matters. An organisation is said to be decentralised matters. An organisation is said to be decentralised where managers at middle and lower levels are where managers at middle and lower levels are given the authority to take decision on matters given the authority to take decision on matters relating to their functions.relating to their functions.
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Centralisation and Decentralisation Centralisation and Decentralisation (Contd.)(Contd.)
For Example : For Example :
An organisation having An organisation having branches in different cities may be centralised. branches in different cities may be centralised. Similarly, a company may be decentralised Similarly, a company may be decentralised even things all its officer are located in one even things all its officer are located in one building.building.
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Merits of Decentralisation Merits of Decentralisation
1.1. Reduces Burden of Top ExecutivesReduces Burden of Top Executives
2.2. Quick DecisionQuick Decision
3.3. Motivation to SubordinatesMotivation to Subordinates
4.4. Growth and DiversificationGrowth and Diversification
5.5. Management DevelopmentManagement Development
6.6. Diversion of RiskDiversion of Risk
7.7. Effective Supervision and Control Effective Supervision and Control
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Demerits of Decentralisation Demerits of Decentralisation
1.1. Cadre of Coordination Cadre of Coordination
2.2. Difficult to ControlDifficult to Control
3.3. High cost of operationHigh cost of operation
4.4. Non Availability Talented ManagersNon Availability Talented Managers
5.5. External Constraints.External Constraints.
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CONTROLLINGCONTROLLING
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The Control ProcessThe Control Process
Establish objectives and standards.Establish objectives and standards. Measure actual performance.Measure actual performance. Compare results with objectives and standards.Compare results with objectives and standards. Take necessary action.Take necessary action.
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Establish Objectives and Establish Objectives and StandardsStandards
There are two types of standards:There are two types of standards: Output StandardsOutput Standards - measures performance results - measures performance results
in terms of quantity, quality, cost, or time.in terms of quantity, quality, cost, or time. Input StandardsInput Standards - measures work efforts that go - measures work efforts that go
into a performance task.into a performance task.
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Measuring Actual PerformanceMeasuring Actual Performance
Measurements must be accurate enough to Measurements must be accurate enough to spot deviations or variances between what spot deviations or variances between what really occurs and what is most desired.really occurs and what is most desired.
Without measurement, effective control is not Without measurement, effective control is not possible.possible.
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Comparing Results with Comparing Results with Objectives and StandardsObjectives and Standards
The comparison of actual performance with desired The comparison of actual performance with desired performance establishes the need for action. performance establishes the need for action.
Ways of making such comparisons include:Ways of making such comparisons include: Historical / Relative / EngineeringHistorical / Relative / Engineering BenchmarkingBenchmarking
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Taking Corrective ActionTaking Corrective Action
Taking any action necessary to correct or improve Taking any action necessary to correct or improve things.things.
Management-by-ExceptionManagement-by-Exception focuses managerial focuses managerial attention on substantial differences between actual attention on substantial differences between actual and desired performance.and desired performance.
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Taking Corrective ActionTaking Corrective Action
Management-by ExceptionManagement-by Exception can save the can save the managers time, energy, and other resources, and managers time, energy, and other resources, and concentrates efforts on areas showing the concentrates efforts on areas showing the greatest need.greatest need.
There are two types of exceptions:There are two types of exceptions: ProblemsProblems - below standard - below standard Opportunities Opportunities - above standard- above standard
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Effective ControlsEffective Controls
The Best Controls in OrganizationsThe Best Controls in Organizations
areare
Strategic and results orientedStrategic and results oriented UnderstandableUnderstandable Encourage self-controlEncourage self-control
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Effective ControlsEffective Controls
The Best Controls in Organizations areThe Best Controls in Organizations are
Timely and exception orientedTimely and exception oriented Positive in naturePositive in nature Fair and objectiveFair and objective FlexibleFlexible
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Types of ControlTypes of Control
PreliminaryPreliminary Sometimes called the Sometimes called the feedforwardfeedforward controls, controls,
they are accomplished before a work they are accomplished before a work activity begins.activity begins.
They make sure that proper directions are They make sure that proper directions are set and that the right resources are available set and that the right resources are available to accomplish them.to accomplish them.
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Types of ControlTypes of Control
Concurrent Concurrent Focus on what happens during the work Focus on what happens during the work
process. Sometimes called process. Sometimes called steeringsteering controls, controls, they monitor ongoing operations and activities they monitor ongoing operations and activities to make sure that things are being done to make sure that things are being done correctly.correctly.
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Types of ControlTypes of Control
PostactionPostaction Sometimes called Sometimes called feedback feedback controls, they controls, they
take place after an action is completed. They take place after an action is completed. They focus on end results, as opposed to inputs focus on end results, as opposed to inputs and activities.and activities.
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Types of ControlsTypes of Controls
Managers have two broad options with respect Managers have two broad options with respect to control.to control.
They can rely on people to exercise self-They can rely on people to exercise self-control (control (internalinternal) over their own behavior.) over their own behavior.
Alternatively, managers can take direct action Alternatively, managers can take direct action ((externalexternal) to control the behavior of others.) to control the behavior of others.
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Types of ControlsTypes of Controls
Managers have two broad options with respect Managers have two broad options with respect to control.to control.
They can rely on people to exercise self-They can rely on people to exercise self-control (control (internalinternal) over their own behavior.) over their own behavior.
Alternatively, managers can take direct action Alternatively, managers can take direct action ((externalexternal) to control the behavior of others.) to control the behavior of others.
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Types of ControlTypes of Control
Internal ControlsInternal ControlsAllows motivated individuals to Allows motivated individuals to exercise self-control in fulfilling job exercise self-control in fulfilling job expectations.expectations.
The potential for self-control is enhanced The potential for self-control is enhanced when capable people have clear performance when capable people have clear performance objectives and proper resource support.objectives and proper resource support.
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Types of ControlTypes of Control
External ControlsExternal ControlsIt occurs through personal supervision and the use of It occurs through personal supervision and the use of formal administrative systems.formal administrative systems. Performance appraisal systems, compensation and Performance appraisal systems, compensation and
benefit systems, employee discipline systems, and benefit systems, employee discipline systems, and management-by-objectivesmanagement-by-objectives..
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