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HS300 Principles of Management

 Module II-Topics
1. Management Process
2. Planning types
3. Mission
4. Goals
5. Strategy
6. Programmes
7. Procedures
8. Organising
9. Principles of Organisation
10. Organization structures
11. Delegation
12. Span of Control
13. Organisation Structures
14. Directing
15. Leadership
16. Motivation
17. Controlling
 Management Process

1. Planning – Denotes the determination of short-to-long-range plans.

2. Organizing
3. Staffing – Staffing involves filling and keeping filled, the positions in the
organizational structure.
4. Leading – Means stimulating and motivating.
5. Controlling – Controlling is at regulating organizational activities so that actual
performance meets the expected objectives and standards.
6. Coordinating – Co-ordination means to integrate various activities for achieving the
objectives of the organization.
Steps in planning process
 Types of plans
1. Goals and objectives
2. Classification of business plan based on scope
a) Strategic plan
b) Tactical plan
c) Operational plan
3. Classification based on frequency of use
a) Single use plans
i. Programmes
ii. Budget
c) Standing plans
i. Policy
ii. Procedure
iii. Rule and regulations
4. Classification based on time horizon
a) Long term plans
b) Intermediate term plans
c) Short term plans
5. Classification based on specificity
a) Specific plans
b) Directional plans
6. Contingency plan
 Types of plans
The goals of an organization are derived from the mission of an organization.
Missions are the official goals that describe an organization's reason for existence.
Objectives are specific and short-term targets to be achieved before the goals can
be reached.
Goals are the broad and long-term targets of an organization.
 Classification of business plan based on scope
1. Strategic plan – Strategic plans outline the broad goals for the whole
organization and also state its mission (purpose of existence).
2. Tactical plans – Tactical plans are derived from strategic plans. Tactical plans
can be defined as an organized sequence of steps designed to execute strategic
plans.
3. Operational plan – These plans are formulated by department managers,
supervisors, team leaders and other low-level managers for carrying out the
strategic and tactical plans through day-to-day activities.
Classification of business plan based on scope
Strategic Tactical Operational
Nature
planning planning planning
Management Intermediate Supervisory
Top level.
level level. level.

Short to medium
Duration Long term. Short term.
term.
Functional areas
Departments,
Whole like marketing,
Coverage teams,
organization. manufacturing,
individuals.
etc.
Neither too
Scope of Broad and
general nor too Too specific.
guidelines general.
specific.
 Classification of business plan based on time horizon
1. Long-term plans – Long-term plans are prepared when organizations require
long periods of time to reach their goals. Strategic plans are usually the
long-term plans of the organization. These plans may cover a time period of
two to five years or more.
2. Intermediate-term plans – Intermediate plans define the organizational
activities that are essential for the execution of long-term plans and goals.
These plans normally cover a time horizon of 1 to 2 years.
3. Short-term plans – These plans are formulated when the organizations want
to accomplish their goals within a short span of time. The short-term plan
period may not usually exceed a year.
 Classification of business plan based on frequency of use
1. Single-use plans – Single-use plans apply to activities that do not recur or
repeat.
a) Programmes – Programmes are single-use plans that are prepared to handle
specific situations. Programmes are expected to remain in existence only
till the achievement of specific goals.
b) Budgets – A budget refers to the funds allocated to operate a unit for a fixed
period of time.
2. Continuing plan – Continuing plans or ongoing plans or standing plans are
usually made once and retain their value over a period of years while
undergoing periodic revisions.
a) Policy – A policy is a standing plan that furnishes broad guidelines for
taking action consistent with reaching organizational objectives. eg.
Drug-free workplace policies.
b) Procedure – A procedure is a standing plan that outlines a series of related
actions that must be taken to accomplish a particular task.
c) Rule and regulations – A rule is a standing plan that designates specific
required action. A rule indicates what an organization member should or
should not do.
 Classification of business plan based on time horizon
1. Long-term plans – These plans may cover a time period of two to five years or
more. Strategic plans are usually the long-term plans of the organization.
2. Intermediate-term plans –These plans normally cover a time horizon of 1 to 2
years. Tactical planning is one form of intermediate planning.
3. Short-term plans – These plans are formulated when the organizations want to
accomplish their goals within a short span of time. The short-term plan period may
not usually exceed a year.
 Classification of business plan based on specificity
1. Specific plans – Specific plans are well-defined plans. A plan that aims at
cutting the production cost by 3% in one year is an example of a specific plan.
2. Directional plans – They provide a general direction in which the
organization proposes to move forward but there are no specific plans or
deadlines. A plan that aims at increasing the corporate profit between 4 % and
6 % is an example of a directional plan.
 Contingency plans
Contingency planning involves identifying alternative courses of action that
can be implemented if and when the original plan proves inadequate because
of changing circumstances.
Contingency plans are taken by an organization in the case of crisis, setbacks
or unforeseen circumstances.
Organizations operating in vastly uncertain environments usually develop
contingency plans along with strategic, tactical and operational plans.
 Organising
Organizing is a process of grouping the various activities to be done and
assigning duties and responsibilities to people in groups or departments.
 Span of management
Span of management or span of control is the number of subordinates which are
directly under their superiors.
The number of subordinates, whom over which control is exercised, should be
reasonable as too small number will lead to non-utilization of time and energy of
the manager, while large number will lead to difficulty in exercising proper
control.
Factors affecting span of management
1. Nature of work
2. Clarity of plans and responsibility
3. Capacity of person involved
4. Time
 Types of span of management

Wide span of control – It is one in which a manager can supervise and control
effectively a large group of persons at one time.
 Types of span of management

Narrow span of control – The manager according to a narrow span supervises a

selected number of employees at one time.
 Line and staff concepts

1. Line function – Line authority is a relationship in which a superior exercises

direct supervision and control over subordinates.
2. Staff function –Staff managers are those individuals or groups in an organization
who provide services and advice to line mangers manager in the performing their
functions.
 Organizational structure
An organization structure means the systematic arrangement of people
working for the organization and their relationship between positions.
Organizational structure defines the functions to be performed, objectives to be
established, working relationship of the individual participants, etc.
 Features of a good organizational structure
1. Unity of objectives
2. Clear line of authority and responsibility
3. Division of work and specialization
4. Span of control
5. Unity of command
6. Simple and flexible
 Forms of organiztion
Important organizational structures are the following.
1. Line or Military or Scalar organization,
2. Line and staff organization,
3. Functional organization,
4. Matrix organization, and
5. Project organization.
 Line organization

In line organization, based on similarity of activities, different departments are

created.
Each department is placed under one department head. He/she has full authority to
control all activities of that department.
Authority flows from top to bottom along a vertical line.
Line managers are generalists. Line managers need not be specialists.
 Line and staff organization

The line executives will have the supervisory authority and control over the work of
their subordinates where as staff executives relieve line executives by giving advices
and expert opinion.
The staff provides expert information and helps to improve the overall efficiency.
 Functional organization

In functional structure, the whole task of the organization is divided into specialized
functions and each function is performed by a specialist in charge of a functional
department.
Production, marketing, finance, and human resources are the groupings in a
functional structure.
Functional managers are specialists in their respective areas.
 Project organization

Project team structure consists of an autonomous project team, existing

independently of the rest of the organization.
The project team is assembled for a specific project under the action of the project
manager.
The team is thus temporary and will be dispersed when its project is completed.
 Management Process

In matrix organization, staffs are grouped and located by specialty into functional
units headed by a functional manager.
Each member of staff may have two or more bosses.
The project manager in the matrix works with the functional manager for timely
completion of project.
 Directing
Directing can be defined as the process of guiding the subordinates towards
common goals of the organizations.
Directing involves motivating, guiding and supervising subordinates towards
company’s objectives.
Principles of effective directing
1. Principle of harmony of objectives
2. Principle of direct supervision
3. Principle of unity of command
4. Principle of appropriateness of direction technique
5. Principle of maximum individual contribution
6. Principle of flow of information
7. Principle of leadership
8. Principle of scalar chain
9. Principle of follow-up
10. Principle of strategic use of informal organization
 Leadership
Leadership is the process of influencing people so that they work willingly and
enthusiastically towards the achievement of organizational, departmental and
individual goals.

A person who is able to make others willingly follow him is a leader.

 Motivating
Motivating is the process of stimulating people to take the desired results or course of
action.
It involves inspiring subordinates to work hard towards the accomplishment of desired
objectives.
Motivation is the task of every manager and is required at all levels.
Kinds of motivation
1. Positive motivation
2. Negative motivation – In this type, labour is prompted to work by threatening or by
punishment.
 Motivational Theories
Prominent motivational theories are Herzberg’s motivation-hygiene theory, Theory X
and Y by Douglas McGregor and Maslow’s need hierarchy theory.
Herzberg’s motivation-hygiene theory (Two factor theory)
1. Hygiene factors
a) Company policy and administration
b) Interpersonal relations within the work environment.
c) Adequate salary
d) Safe working conditions
e) Optimum security
f) Optimum supervision
2. Motivational factors – Motivational factors give positive satisfaction. Motivational
factors consist of the following.
a) Achievement
b) Recognition
c) Possibilities of growth
d) Work itself (challenging work)
e) Responsibility
 Leadership behavior and styles
1. Autocratic leadership
2. Democratic leadership or participative leadership
3. Free-rein leadership
The managerial grid
 Discussions
1. Define span of control. List the factors affecting it.
2. Define organizational structure.
3. Explain different organizational structures used in industries. Describe the matrix organization in detail and comment on
its merits and demerits.
4. Explain a) Functional organization b) Matrix organization c) Committee organization. Discuss the merits and demerits of
each one.
5. Explain the meaning of line functions and staff functions.
6. Classify the factors affecting the span of control.
7. Distinguish between line and staff functions with the aid of examples.
8. What is an organization chart? What are its merits and demerits?
9. State Douglas Me Gregor's Theory X and Theory Y.
10. How does a leader differ from a manager?
11. Explain trait approach to leadership and contingency approach.
12. Distinguish between trait approach and contingency approach to leadership.
13. Illustrate how power and authority are utilized by an effective leader.
14. Give a brief account of (a) transactional leadership and (b) transformational leadership.
15. Critically evaluate the trait approach with an example.
16. Explain the process of controlling function with the aid of a sketch.
17. Distinguish between feedback and feed forward control mechanisms.
18. Write a short note on strategic planning.
19. What is the difference between vision and mission? Give an example.
20. Explain different steps in planning.
21. What do you mean by top-down policy and bottom-up planning and execution approach?
22. Distinguish between plan, goal and procedure.
23. Discuss in detail about narrow span of management.
24. Discuss in detail about wide span of management.
25. Define planning premises.
26. Explain the importance of delegation in management. (3)(April, 2022)
27. “Planning is looking ahead and control is looking back” Comment (3)(April, 2022)
28. Explain the mission, goals, strategy, programmes and procedures of an organisation with suitable examples.(8)
29. Differentiate between strategic and tactical decisions. (6)
30. Illustrate the different types of organisation structures. (8)
31. Explain the factors governing the selection of organisation structures. (6)