10/9/2024

• Who is Manager
• Roles of manager
• Skills of manager THINK ABOUT AN
• What is Management
• Evolution of management thought
ORGANISATION …
• Importance to study management
Principles of Management CONTENT • Features of management
• Levels of management
• Nature of management
• Management is science or art ?
WHAT ALL COMES TO
Prof .Ritu Singh • Factors Reshaping the Management YOUR MIND?
ASSISTANT PROFESSOR • Trend & challenges in the management & related
MAHE Dubai coping strategies

WHAT IS YOUR INTERPRETATION OF THIS PICTURE IN RELATION TO MANAGEMENT

What generally an organisation comprise of

Employees / Infrastructure Organisational

Structure / Organisational Culture / Working What comes in your
Environment / Managerial Functions / mind when we say
Coordination / Cooperation / Group Dynamics Management ?
/ Communication Pattern/ Internal & External
Environment / Roles & Responsibilities /
Liasioning / Vision / Mission / Goals / Objectives
/ Organisation Behaviour . Etc.

Management in General Some Definitions of Management

• ‘ Management is an art of knowing what to do when to do and see that it is done in the best and cheapest
What Is Management ?
way -----F.W. Taylor,
• ‘Management is an art of getting things done through and with the people in formally organized groups. It is an
art of creating an environment in which people can perform and individuals and can co-operate towards
• The concept of management is as old as humans itself. attainment of group goals. It is the art of getting things done through and with people in formally organized
groups -----Harold Koontz, Management is the process of achieving goals and objectives effectively and
• Management is essential for an organized life and necessary to run all types of efficiently through and with the people”
management. • “Management is the art of getting things done through others”----- Mary Parker Follett
• Management consists of getting things done through others…A manager is one who accomplishes
• Good management is the backbone of successful organizations. organizational objectives by directing the efforts of others.”---- C.S. George
• Managing life means getting things done to achieve life’s objectives • According to Peter F. Drucker. “ A Multipurpose organ that manages a business and manages managers and
manages workers and works “. Management is a process of designing and maintaining an environment in which
• Managing an organization means getting things done with and through other people to • According to [Link] “ Management is what management does. It is the task of planning executing and
individuals work together in groups to effectively and efficiently accomplish
achieve its objective controlling “. selected aims".
• Management in some form or another is an integral part of living and is essential • According to Lawrence Appley “ Management is the development of people and not the direction of things “.
wherever human efforts are to be undertaken to achieve desired objectives. The basic • The fundamental notion of principles of management was developed by French management theorist Henri
ingredients of management are always at play, whether we manage our lives or our Fayol (1841–1925). He is credited with the original planning-organizing-leading-controlling framework (P-O- it is concerned with optimally using 5M’s, i.e. men, machine, material, money and
business L-C), which, while undergoing very important changes in content, remains the dominant management methods and, this is possible only when there proper direction, coordination and
framework in the world. For this reason, principles of management are often discussed or learned using a integration of the processes and activities, to achieve the desired results.
framework called P-O-L-C, which stands for planning, organizing, leading, and controlling.

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ELEMENTS OF MANAGEMENT DEFINITION

Formulation of objectives , plans and policies Components of Management
of the collective enterprise.
So, by these Process - represents ongoing functions or primary activities engaged in
definitions we can Assembling men, money ,materials, machines Organizational Activity by managers
say that and methods for their accomplishment.
Management Directing and motivating the men at work. Goal Formation
refers to all those “doing things right”
Efficiency - getting the most output
activities which from the least amount of inputs
concerned with means
Goal Accomplishment & Evaluation
are concerned Coordinating the physical and human Achieving the objectives in time

with resources.
Organizational Survival
Supervising and controlling performance. Effectiveness - completing activities “doing the right things”
so that organizational goals are concerned with ends
Implementation
attained Achieving the objectives on time

FEATURES OF MANAGEMENT Management is Associated with Group Efforts

• It is usual to associate management with a group.
Goal-oriented
• Although people as individuals manage many personal affairs, the group emphasis on management is
universal.
Integrative function
• Every enterprise entails the existence of a group to achieve goals. It is now established that goals are
Continuous achieved more readily by a group than by any one person alone.
Management is Purposeful
Management is all pervasive • Wherever there is management, there is a purpose. Management deals with the achievement of
something definite expressed as a goal or objective.
Multi-disciplinary subject
Nature of Decision-making
• Management success is commonly measured by the extent to which objectives are achieved.
Management exists because it is an effective means of getting the necessary work accomplished.
Management People-centric
Management is Accomplished Through the Efforts of Others
• Management is sometimes defined as “getting things done through others’ efforts.”
• Besides the manager of a firm, there may be accountants, engineers, system analysts, salesmen and a
Dynamic host of other employees working but it is the manager’s job to integrate all their activities.
Accountability • Thus it can well be said that participation in management necessitates relinquishing the normal tendency
to perform all things oneself and getting tasks accomplished through group efforts.
Adaptation to change Management is Goal-oriented
• Managers focus their attention and efforts on bringing about successful action. Successful managers
Ethical considerations have an urge for accomplishment. They know when and where to start, what to do with keeping
things moving, and how to follow a goal-oriented approach.

Management is Indispensable
• Management can neither be replaced nor substituted by anything else.
• Nature of management is complex and multifaceted. MANAGEMENT IS ART OR SCIENCE ????
• Even the computer which is the wonderful invention of the twentieth century can only aid but not replace management.
• We know that the computer is an extremely powerful tool for [Link] can widen a manager’s vision and sharpen
his insight by supplying more and faster information for making key [Link] computer has enabled the manager to
conduct analysis far beyond the normal analytical capacities of man. • It involves a wide range of activities, responsibilities, and skills
• But what happens, in reality, is that the computer can neither work by itself nor can it pass any judgment.
• The manager plays his/her role by providing judgment and imagination as well as interpreting and evaluating what
to achieve organizational goals and adapt to the ever-changing Management is science because of several reasons—it
the information/data mean in each case. business environment. has universally accepted principles, it has cause and
Management is Intangible effect relationship, etc, and at the same time
• Management is often called the unseen force; its presence is evidenced by the results of its efforts – motivation among • Effective management is critical for the success and
employees, discipline in the group, high productivity, adequate surplus, etc.
• Conversely, the identity of management may also be felt by its absence or by the presence of its direct opposite sustainability of any organization. It is art as it requires perfection through practice,
mismanagement. The consequence of mismanagement is anybody’s guess. practical knowledge, creativity, personal skills, etc.
Management can Ensure Better Life
• A manager can do much to improve the work environment, stimulate people to perform better, achieve progress,
bring hope and accomplish better things in life.
• The study of management has evolved into more than just the use of means to achieve ends; today it includes moral and Management is both art and science
ethical questions concerning the selection of the right ends towards which managers should strive.
• Management is the science and art of getting people together to accomplish desired goals and objectives by coordinating
and integrating all available resources efficiently and effectively.

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Levels of Management
MANAGEMEMNT V/S ADMINISTRATION LEVELS OF MANAGEMENT

Top level Middle level LOWER LEVEL

• Top management sets the • Middle level management • Lower level management takes
Top charge of day-to-day
• [Link] mission and goals develops departmental goals operations,
Management
President, CEO, • develops policies • executes the policies, plans • is involved in preparing
Executive • evaluates the overall and strategies determined by detailed short-range plans,
Vice Presidents performance of various top management • is responsible for smaller
departments • develops medium- term plans segments of the business,
Middle Management and
Plant Managers, Division Managers, • responsible for the • executes plans of middle
business as a whole and • supervises and coordinate management ,
Department Managers
• is concerned mainly with lower-level managers’ • guides staff in their own
activities subsections and keep close
First-Line Management long-term planning control over their activities
Foreman, Supervisors, Office Managers

Non- Managerial Employees

Importance of Management 1. It helps in Achieving Group Goals -

• It arranges the factors of production, assembles and organizes the resources, integrates the resources in
IMPORTANCE OF MANAGEMENT IN MODERN WORLD effective manner to achieve goals.
• It directs group efforts towards achievement of pre-determined goals. By defining objective of
organization clearly there would be no wastage of time, money and effort
Effective Decision-Making:
Achievement of • Management converts disorganized resources of men, machines, money etc. into useful enterprise. These
Efficient Resource Utilization
group goals resources are coordinated, directed and controlled in such a manner that enterprise work towards
Goal Achievement attainment of goals.
Adaptability to Change: Optimum 2. Optimum Utilization of Resources -
Establishes
Effective Leadership: utilization of • Management utilizes all the physical & human resources productively.
Equilibrium
Improved Communication: resources • This leads to efficacy in management. Management provides maximum utilization of scarce resources by
Conflict Resolution: selecting its best possible alternate use in industry from out of various uses. It makes use of experts,
Employee Engagement professional and these
Establishes
Customer Satisfaction • services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees
Sound Reducing cost and machines are producing its maximum there is no under employment of any resources.
Innovation and Creativity
Organization
Risk Management 3. Reduces Costs -
Legal and Ethical Compliance • It gets maximum results through minimum input by proper planning and by using minimum input &
getting maximum output.
Strategic Planning Efficient and
Change and • Management uses physical, human and financial resources in such a manner which results in best
Financial Performance smooth running
growth combination. This helps in cost reduction.
Problem solving of business
Coordination and collaboration
Long Term Sustainability

4. Establishes Sound Organization -

• No overlapping of efforts (smooth and coordinated functions).
• To establish sound organizational structure is one of the objective of management which is in tune with
IMPORTANCE OF MANAGEMENT IN BCOM /BBA
objective of organization and for fulfillment of this, it establishes effective authority & responsibility

Who is Manager?
relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who
are subordinates.
1. Foundation for Business Understanding: Principles of management provide a foundational understanding of how organizations are structured and operate.
• Management fills up various positions with right persons, having right skills, training and qualification. This knowledge is essential for anyone pursuing a career in business, as it forms the basis for understanding the various functions and processes within an
All jobs should be cleared to everyone. organization.

5. Establishes Equilibrium - 2. Management Skills: Learning about management principles helps students develop essential management skills such as leadership, decision-making,
problem-solving, and communication. These skills are valuable in almost any professional setting, not just in business.
• It enables the organization to survive in changing environment. 3. Practical Application: Management principles are not limited to the business world; they can be applied in various contexts, including nonprofit
• It keeps in touch with the changing environment. With the change is external environment, the initial co- organizations, government agencies, and even in personal life. Understanding these principles equips individuals to better organize and manage resources
effectively.  A manager is someone whose primary responsibility is to carry
ordination of organization must be changed. out the management process within an organization to achieve
4. Career Opportunities: Many graduates go on to work in management or leadership roles in various industries. Understanding management principles can
• So it adapts organization to changing demand of market / changing needs of societies. It is responsible for give them a competitive edge in the job market and prepare them for managerial positions. the organizational goals.
growth and survival of organization.
5. Entrepreneurship: For aspiring entrepreneurs, a solid understanding of management principles is crucial. Starting and running a successful business requires
6. Essentials for Prosperity of Society – effective management of resources, employees, and operations.  Changing nature of organizations and work has blurred the
• Efficient management leads to better economical production which helps in turn to increase the welfare of 6. Problem Solving: Managers are often tasked with solving complex problems within their organizations. Studying management principles helps individuals clear lines of distinction between managers and non-managerial
people. Good management makes a difficult task easier by avoiding wastage of scarce resource. develop critical thinking and analytical skills, which are essential for addressing these challenges. employees
• It improves standard of living. 7. Ethical Considerations: Management courses often include discussions on ethical decision-making and responsible leadership. Understanding the ethical
dimensions of management is important in today's business environment, where social responsibility and sustainability are increasingly important.
• It increases the profit which is beneficial to business and society will get maximum output at minimum cost 8. Teamwork and Collaboration: Effective management involves working with and leading teams. BCom students learn about team dynamics, motivation, and
by creating employment opportunities which generate income in hands. Organization comes with new how to foster collaboration among team members.
products and researches beneficial for society.
9. Historical Perspective: Studying management principles also provides students with a historical perspective on how management practices have evolved over
time. This historical context can help individuals understand the reasons behind current management theories and practices.

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Successful Managers’ Attributes Managerial Skills

Leadership
Team-Building Skills Management skills can be defined as certain attributes or abilities that an executive should Managerial Skills
possess in order to fulfill specific tasks in an organization.
Self-objectivity
Analytic Thinking
They include the capacity to perform executive duties in an organization while avoiding crisis
Creative Thinking situations and promptly solving problems when they occur.
Behavioral Flexibility Primary Skills Secondary Skills
Oral Communication Management skills can be developed through learning and practical experience as a Conceptual Skill Design Skill
Written Communication manager.
Technical Skill Communication Skill
Personal Impact
Human Skill Leadership Skill
Resistance to Stress The skills help the manager to relate with their fellow co-workers and know how to deal well
with their subordinates, which allows for the easy flow of activities in the organization.
Tolerance of Uncertainty

Skills distribution at various management levels

Technical skills:
Conceptual skills: These skills include the knowledge, abilities of and proficiency in
activities involving methods, processes and procedures in the
This refers to the ability to think and conceptualize abstract situations. These abilities are relevant fields as accounting, engineering, manufacturing etc.
required for making complex decisions.. The manager is able to see an entire concept, analyze and
diagnose a problem, and find creative solutions. This helps the manager to effectively predict
hurdles their department or the business as a whole may face Technical skills are most important for first-level managers. When it
comes to the top managers, these skills are not something with a high
Conceptual skills are vital for top managers, less critical for mid-level managers and not required
for first-level managers. As we go from the bottom of the managerial hierarchy to the top, the significance level. Therefore, as we go through a hierarchy from the
importance of these skills will rise. bottom to higher levels, technical skills lose their importance.
In short it is: The mental capacity to develop plans, strategies and vision
Or in short: The ability to use the knowledge or techniques of a
particular discipline to attain ends
Human or interpersonal skills:
This includes the ability to understand other people and interact effectively with them. The human Design skills:
skills are also important in creation of an environment in which people feel secure and free to
express their opinions. These skills enable a manager to handle and solve any kind of
One of the most critical management tasks is working with people. Without people, the existence of unforeseen or actual problems, that may crop up in the organization.
management and managers becomes redundant. Such problems could arise due to internal factors or external factors
In short it is: The ability to work with other people in teams and/or both.
In short it is: The problem solving skill

ROLES OF MANAGER
ROLE OF MANAGER
Communication skills: Role: a set of expectation for one’s behavior
The abilities of exchanging ideas and information In 1960, Henry Mintzberg conducted a study to understand about the managerial roles. He
identified 10 managerial roles that are common to all managers. These 10 managerial roles
effectively. To understand others and let others are grouped under: Interpersonal, decisional, and informational roles.
understand comprehensively.

ROLES OF MANAGER

Leadership skills
The abilities to influence other people to achieve
the common goal. INTERPERSONAL
DECISIONAL INFORMATIONAL
• Entrepreneur
• Figurehead • Monitor
• Disturbance handler
• Leader • Disseminator
• Resource allocator
• Liaison • Spokesperson
• Negotiator

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a) Inter-personal Role B) Decisional Role c) Informational role

Figurehead Leader Liaison

[Link] often perform 1. the manager motivates, 1. Consists of relating to others [Link]: Monitor Disseminator: Spokesperson:
ceremonial duties encourages, and builds outside the group or Act as an initiator and designer and encourage changes and innovation, identify new ideas, Emerges as nerve Transmits information Transmits information to
[Link] symbolic leaders, enthusiasm among the organization. delegate idea and responsibility to others. center of internal received from other the people who are external
such as signing official employees. 2. Serves as a link between [Link] handler: and external employees to to the organization, i.e.,
documents or attending people, groups or members of the government, media etc
important functions,
2. Training subordinates to Take corrective action during disputes or crises; resolves conflicts among subordinates; adapt to information about
Represents the company work under pressure, organization. environmental crisis. Information. organization. . For instance, a manager
on social occasions. 3. The negotiation of prices [Link] allocator: addresses a press
3. Attending the flag with the suppliers regarding Decides distribution of resources among various individuals and groups in the organization. conference announcing a
hosting ceremony, raw materials is an example [Link]: new product launch or
receiving visitors or taking for the role of liaison. Negotiates with subordinates, groups or organizations- both internal and external. Represents other major deal.
visitors for dinner etc. department during negotiation of union contracts, sales, purchases, budgets; represent
departmental interests

TRADITIONAL MANAGER V/S MODERN

The landscape of the modern workplace is changing.
Challenges within the economic environment have
promoted a need for innovation; change and
dynamism from managers to ensure organizations
remain globally fluent and flexible.

Traditional organizations v/s Modern Organisation Functions of Management

• : Traditional organizations usually are stable in business activities and progress,
• while modern organizations are more dynamic with multiple business strategy, which need multiple process to deal with constant changes.
Stability:

• In traditional organization, its structure is usually fixed, the strategy is planned, and the management is inflexible.
• While the modern organization, they need always improve the workflow, update its competitive edges, and the employees are required to
Flexibility. promote the skills and knowledge to connect with the market and changings.

• The flow of traditional business is ‘tall hierarchy’, which focus on individual responsibility and obey to his superior,
• while modern one is ‘flat hierarchy’, which more focus on teamwork and cooperation, its collaborative working mode would more conducive to
Teamwork:. brainstorming and help the companies improve work efficiency and make marketing strategy

• : Modern organization management enable employees give more freedom and flexibility to fulfill their works, which are beneficial to mobilize
Stimulate enthusiasm of the staffs.
morale:

• In traditional business, the management policies are conservative, which usually follow traditional rules and regulation, make static workflow
model to maintain business strategy and employee management system.
Management
policy • While modern management model would do modification such as rescheduling, flexible entity management, dynamic business strategy

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Some examples of management functions Emerging Challenges and Issues In management

Planning: Scenario: An E-commerce Business Expansion :A successful e-commerce company plans to
Management challenges • Making the right hiring decisions
expand its operations to a new market, say, a neighboring country. To do this, they engage in strategic • Globalization of Business
planning, which involves setting objectives, such as market share goals, defining the target audience, deciding
• Ethics and Social Responsibility • Managing conflicts within your
on the product range to offer, and outlining the marketing strategy. They also consider potential challenges team
like regulatory requirements and competition. Through thorough planning, the company charts its path for
successful market entry. • Workforce diversity
• Retaining star employees in a
Organizing: Scenario: Launching a Music Festival: An event management company is organizing a music
festival with multiple stages and various artists. To ensure smooth execution, they organize the festival into
• Empowerment competitive environment
different departments: stage management, ticketing, security, marketing, and hospitality. Each department has • Technology
a specific role and responsibilities, such as stage managers coordinating performances, ticketing managing • Creating calm and reassurance in
ticket sales, and security ensuring safety. This organizational structure ensures that everyone knows their role • Building a Competitive Advantage periods of turbulence
in making the event a success.
Leading (Directing): Scenario: Team Leadership in a Tech Startup: The CEO of a tech startup leads a team • Development of the environment • The fight against burnout
of developers and designers working on a new app. As the project progresses, the CEO provides clear
guidance on the app's vision and functionality. They also motivate the team by recognizing achievements, • Quality and productivity • Being a constant source of
addressing challenges promptly, and fostering a collaborative work environment. This leadership style keeps motivation
the team engaged and focused on delivering a successful product. • Innovation and change
Controlling: Scenario: Retail Store Inventory Control: A retail store chain wants to manage its inventory • The need to bridge the skills gap
efficiently. They implement inventory control measures by using a computerized system that tracks product • Knowledge management
sales in real-time. If a product's stock falls below a predetermined threshold, the system automatically
generates a reorder request. This control mechanism prevents overstocking or understocking of products, • Multicultural effects
leading to optimized inventory management.

Why it is important to study this course for

engineering LINK – MANAGEMENT CHALLENGES
1. Project Management Skills: ability to plan, organize, lead, and control projects efficiently, ensure to meet
deadlines, stay within budget, and achieve quality standards.
2. Leadership and Teamwork: Enhance collaboration, conflict resolution, and team leadership. • [Link]
3. Understanding Organizational Structure: Align technical work with broader business goals and department • [Link]
functions.
how-to-overcome-them
4. Decision-Making and Problem-Solving :Make strategic decisions considering cost, resources, and impact.
5. Adaptation to Trends and Challenges :Stay agile and drive innovation in a changing business environment.
6. Budgeting and Resource Allocation: Manage costs, optimize resources, and ensure financial efficiency.
7. Innovation and Entrepreneurship: Translate technical innovations into viable products or startups.
8. Ethical and Social Responsibility: Consider CSR and sustainability in engineering solutions.
9. Enhances Career Opportunities: Open pathways to leadership, operations, and consulting roles.
[Link] Technology and Business : Communicate technical solutions effectively to business leaders.

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Classical Management Theory Scientific Management

• Classical management theory refers to a set of management theories that emerged during the late 19th and
early 20th centuries. • [Link]
• These theories laid the foundation for modern management practices and played a crucial role in • [Link]
improving efficiency
• [Link]
• These theories were developed in response to the need for more systematic and efficient management
practices as industrialization and large-scale organizations became more prevalent.
• There are three primary branches of classical management theory:

Evolution of Management  Scientific Management (Fredrick W. Taylor)

 Administrative Management (Henri Fayol)
RITU SINGH  Bureaucratic Management (Max Weber)

Scientific Management APPLICATION OF TAYLOR THEORY IN MODERN TIME Cont..

RS3
RS2
RS1
RS0
• F.W. Taylor or Fredrick Winslow Taylor, also Time And Motion Studies Lean Manufacturing: Many manufacturing companies today apply principles of scientific Process Optimization: Scientific management principles continue to be applied in various
known as the ‘Father of scientific management to optimize their production processes. Lean manufacturing techniques, such industries to streamline processes, reduce costs, and improve quality. For example, in healthcare,
management’ as continuous improvement (Kaizen) and just-in-time inventory management, are hospitals use process optimization to improve patient flow and reduce waiting times.
Standardization Of Tasks, Tools And rooted in the pursuit of efficiency.
• The systematic study of the relationships Equipment
between people and tasks to redesign the
work for higher efficiency Functional Foremanship. Time and Motion Studies: Modern industrial engineers and process improvement
• focuses on optimizing worker productivity specialists still use time and motion studies to identify bottlenecks, reduce waste, and Project Management: Project managers often use scientific management techniques to plan,
improve workflow efficiency in manufacturing and service industries. schedule, and allocate resources efficiently in complex projects.
through the scientific study of work processes. Incentive System( Differential Wage
• Brought One best way to do each job system)

• Taylor gave much concentration on the Scientific Selection, Placement And Performance-Based Pay: While not without controversy, performance-based pay systems, Retail Operations: Retailers use scientific management principles to optimize store layouts,
supervisory level of management and Training including individual and team incentives, are still used in many organizations to motivate inventory management, and checkout processes to enhance customer satisfaction and reduce
performance of managers and workers at an employees and reward high performance. costs.
operational level. The Division Of Labor To increase
efficiency and productivity

REAL-LIFE EXAMPLE RELEVANCE

• Automotive industry -Henry Ford's introduction of the assembly line in automobile
manufacturing is a classic example of scientific management. By breaking down the production
process into smaller, repetitive tasks and optimizing each worker's role, Ford revolutionized the
• Taylor's “time and motion study” is still widely used by managers today,which,is evident in McDonald‟s
who, use one standardised process e;g to make a burger, which workers have to follow. This standardized Criticism of Scientific management theory
process &the other principles of scientific management put together have evidently proved to be the best way
industry. This approach led to a significant increase in productivity and a reduction in production to reach their ultimate productivity (world's leading fast food chain). Though managers will have their own
costs
unique style of management, however, every manager has to use strategies which are compatible with the
• Hospital Operations - Hospitals use scientific management to improve patient care and organization's nature and culture of Work. Level of
operational efficiency. For example, hospitals employ time and motion studies to streamline Mechanistic and Jobs become Advocated function Differential wage
micromanagement
patient admission and discharge processes, reduce waiting times, and allocate resources • Many organizations like “Google” and many charitable organizations are not using Taylor's model dehumanizing: monotonous foremanship rate system
is excessive
effectively. This approach helps hospitals provide better care while controlling costs. because it might not suit the nature of work of these organizations. However, during a time of emergency,
• Pharmaceutical Manufacturing: In pharmaceutical manufacturing, scientific management such organizations may apply best method devised by Taylor.
principles are applied to ensure product quality and regulatory compliance. Standardized • It is apt to mention that scientific management is very much a part of every organisation in 21st century. Incompatibility Lack of
procedures, strict quality control measures, and efficient supply chain management are essential to Overemphasis on
Isolation
Resistance to
with knowledge consideration for
meet regulatory requirements and produce safe and effective medications. Its strengths in creating a divide between management functions and work functions have been efficiency change
work worker input
employed widely at all levels in industries. Additionally, its attempt in making organizations efficient by
• Fast Food Chains: Fast food restaurants are known for their efficient operations. They use replacing “rule of thumb” with scientific method has ensured its widespread application.
standardized procedures for food preparation, layout design to minimize steps for employees, and
time-based performance metrics to maintain high-speed service. The principles of scientific • Development of offshore markets is one of the most significant developments that scientific management
management are evident in their streamlined processes. has produced in the 21stcentury. As a result of its rigorous analysis of labour techniques, many functions that
Cultural and
Ethical concerns. Short-term focus contextual
• Construction Project Management: In construction, project managers use scientific were accompanied in the USA, are now performed overseas because of low labour costs and much lower taxes variations
management techniques to plan, schedule, and allocate resources efficiently. They employ critical in countries like , India, China, Korea and other countries.
path analysis, which is a method for optimizing project timelines by identifying the most critical
tasks. This approach helps ensure that construction projects are completed on time and within
budget.

1
Slide 4

RS0 Functional Foremanship: Taylor proposed the idea of functional

foremanship, where specialized supervisors oversaw various
aspects of work, such as production, quality control, and training.
Ritu Singh [MAHE Dxb], 2023-10-09T[Link].292

RS1 scientifically analyze and break down tasks into their smallest
components. This involved observing workers to identify the most
efficient way to perform each task.
Ritu Singh [MAHE Dxb], 2023-10-09T[Link].409

RS2 stablish standardized methods and procedures for performing

work. Standardization reduces variations in processes and ensures
consistency.
Ritu Singh [MAHE Dxb], 2023-10-09T[Link].551

RS3 scientific selection of workers based on their physical and mental

abilities, matching the right person to the right job.
Ritu Singh [MAHE Dxb], 2023-10-09T[Link].913
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Criticism
• Mechanistic and dehumanizing: treated
human as a “factor of production” only
workers may feel like they have little
• Isolation :The division of labor and monotony of tasks can
lead to a sense of detachment and disconnection from the
work itself.
Bureaucratic Theory
autonomy or control over their jobs. • Taylorism and resistance to change: workers may resist
• Level of micromanagement is excessive and these changes due to fear of job loss or concerns about
can create stress and resentment among increased workloads.
workers. • Incompatibility with knowledge work: scientific
• Jobs become monotonous – increase management is better suited for manual and repetitive tasks A d v a n t a g e s
absenteeism , labor resentment etc rather than knowledge-based work. In today's knowledge- &
• Advocated function foremanship – driven economy, where creativity and problem-solving are d i s a d v a n t a g e s
valued, the principles of scientific management may not be o f s c i e n t i f i c
Practically not feasible to follow instruction as applicable. m a n a g e m e n t • The bureaucratic theory of management, ,
of 8 foreman
• Differential wage rate system differentiate
• Lack of consideration for worker input: this can result in
missed opportunities for process improvement and
developed by max weber
efficient &inefficient worker on the basis of innovation.
standard output leads to increase in labor • Emphasizes the importance of hierarchy, rules
absenteeism , labor resentment . • Ethical concerns: the strict emphasis on efficiency and
cost-cutting can lead to ethical concerns, such as and regulations, specialization, and impersonal
• Overemphasis on efficiency: can lead to inadequate safety measures, employee exploitation, and
worker burnout and high turnover rates. environmental negligence. relationships in organizations.
• Cultural and contextual variations: may not • Short-term focus: may not adequately address long-term
be universally effective, as organizational sustainability and employee development.
culture, industry, and regional factors can
significantly influence its success

ITS CORE PRINCIPLES INCLUDE:

Hierarchy: Bureaucratic organizations have a clear hierarchical structure, with a well-defined Criticism Applicability
chain of command. Each level of management has specific roles and responsibilities.

1. Rigidity and Inflexibility: Bureaucracies are often criticized for being overly rigid and inflexible. The strict adherence to rules and procedures
Rules and Regulations: Bureaucracies rely on formal rules and regulations to govern behavior can hinder adaptability and responsiveness to changing circumstances and customer needs. Bureaucracies may struggle to innovate or make • Nonetheless, it remains a relevant and widely used approach, especially in government
timely decisions.
and decision-making. These rules provide clarity and consistency in organizational processes. agencies and large organizations where formal rules and procedures are essential for
2. Red Tape and Bureaucratic Hurdles: Bureaucracies can be associated with excessive red tape and bureaucratic hurdles. This bureaucracy can
lead to delays, frustration, and inefficiency, particularly in government agencies and large organizations. maintaining order and accountability.
3. Impersonal and Dehumanizing: The emphasis on impersonal relationships and formal rules can lead to a dehumanizing work environment.
Specialization: Employees in a bureaucratic organization are specialized in their roles. They Employees may feel like cogs in a machine rather than valued individuals, potentially leading to reduced job satisfaction and motivation. • Almost any large organization (that either requires or believes it needs an
have specific job descriptions and responsibilities that match their expertise and skills. 4. Resistance to Change: Bureaucracies often resist change, even when change is necessary. The established rules and procedures can create organization chart) is an example of Weber’s model for bureaucracy.
resistance to new ideas, technologies, or ways of doing things. This resistance can stifle innovation and hinder competitiveness.
5. Bureaucratic Inefficiency: Despite the goal of efficiency, bureaucracies can become inefficient due to the sheer complexity of their rules and
processes. Over time, layers of bureaucracy may accumulate, making decision-making slow and cumbersome.
• State departments of motor vehicles, health maintenance organizations (HMOs),
Impersonal Relationships: Bureaucracies maintain impersonal relationships among employees.
6. Hierarchical Communication: The hierarchical structure of bureaucracies can lead to communication challenges. Information may not flow
financial lending organizations like savings and loans, and insurance companies
Decisions are made based on objective criteria rather than personal preferences or favoritism. freely across levels, resulting in a lack of transparency and coordination. are all bureaucracies that many people deal with regularly.
7. Overemphasis on Formal Qualifications: Bureaucracies often prioritize formal qualifications and adherence to rules over practical skills and
Merit-Based Promotion: Advancement and promotion within a bureaucracy are typically based
creativity. This can limit opportunities for individuals who may excel in non-traditional ways. • The almost perfect example is the United Nations. If you wish to see a model
8. Risk Aversion: Bureaucratic organizations tend to be risk-averse. Employees may be hesitant to take risks or make decisions outside of
on merit and qualifications. Performance and competence are key factors in career progression. established procedures, which can hinder innovation and entrepreneurship. example at work apply for a drivers’ license, or register to vote, or apply for a new
9. Excessive Focus on Compliance: In some cases, bureaucracies can become overly focused on compliance and meeting regulatory job.
requirements at the expense of their primary mission or objectives.
Record-Keeping: Bureaucracies maintain detailed records of organizational activities, [Link] Bloat: Over time, bureaucracies may experience "bureaucratic bloat" with a proliferation of administrative staff and layers of
transactions, and decisions. This helps ensure accountability and transparency. management, potentially leading to inefficiencies and increased costs.

ADMINISTRATIVE THEORY 14 Principle

• Most prominent administrative theorist was given by HENRI FAYOL 1. Division of Labor :staff perform better at work when they are assigned jobs according to
their specialties.
• He is called as Father Of Modern Management & Father Of Administrative
Management
• He defined management in terms of certain functions & then laid 14 principles of
Fayol 2. Authority and Responsibility:Fayol included both formal and informal authority
resulting from special expertise.
3. Unity of Command: Employees should have only one boss.

Principles
4. Line of Authority /Unity of direction :a clear chain from top to bottom of the firm.
management which according to him have universalities of applicability
5. Centralization: the degree to which authority rests at the very top.
• This theory is also called functional approach 6. Discipline : respect rule regulation & agreements
• He concerned with general management & overall control of organization rather 7. Scalar chain: Hierarchy of authority
lower level . 8. Order : Human being are kept at right place
9. Equity : Fair to subordinate , Improve harmonious relations
• He Differentiate managerial functions from other functions of a business 10. Subordination of individual interest : Organizational goal first then individual
• His contribution is foundation to the development of management thoughts 11. Stability to tenure : to Avoid turnover that affect efficiency
12. Remuneration : Fair pay system that satisfy both employee & employer
13. Initiative : Work should not be routinized
14. Esprit d corps : Union is strength

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Example : Application of Administrative Theory

Limitations of Admin. Theory Relevance in Healthcare
• Overemphasis on formal structure ignored informal aspect • Clear Organizational Structure: In a hospital, the administrative theory principle of a clear organizational
structure is evident. There is a hierarchy of healthcare professionals, from nurses and doctors to department heads
• Not considered external environment of business • While administrative theory has evolved over the years, its fundamental principles and administrators. This hierarchy ensures that each employee knows their role, reporting relationships, and areas
of responsibility.
• Considered principle to be universal in nature but many of the principle have failed to offer valuable insights for designing and managing organizations effectively. Modern
deliver the desires result in certain situations , organizations often adapt and combine these principles with • Division of Labor: In a healthcare facility, the division of labor is crucial for providing efficient and specialized
care. Nurses focus on patient care, while doctors diagnose and treat medical conditions. Radiology technicians
• There is no single classification of function is acceptable to the functional theorist . contemporarymanagement approaches to create a balanced and efficient handle imaging, and administrative staff manage paperwork and scheduling.
management structure that suits their specific needs and goals.
• Authority and Responsibility: Medical professionals, such as surgeons or physicians, have the authority and
• administrative theory of management remains relevant in various industries, responsibility to make critical decisions about patient treatment. They consult with other specialists, nurses, and
including healthcare, where clear organizational structures, division of labor, support staff as needed but ultimately make informed decisions within their scope of practice.
authority and responsibility, rules and procedures, and equity and fairness • Rules and Procedures: Healthcare institutions have extensive rules and procedures in place to ensure patient
principles are essential for effective operations and quality service delivery. safety, regulatory compliance, and quality care. These include protocols for patient admission, medication
administration, infection control, and emergency response.
• Equity and Fairness: In healthcare, equity and fairness are fundamental principles. Patients should receive the
same level of care regardless of their background or financial status. Healthcare organizations strive to eliminate
disparities in access to healthcare services.

HUMAN RELATION THEORY Elements of Human relation Theory

• Human Relations Theory focuses specifically on the individuals needs and resultant • A focus on people, rather than upon machines or economics
behaviors of individuals and groups. • The organizational environment is not an organized social context

Difference
• It takes an interpersonal approach to managing human beings. It presents the • Human relations are important in motivating people
organization is made up of formal and informal elements
• Motivation depends upon teamwork, requiring co-ordination and cooperation of
• Notably, much emphasis is placed on how individuals interact within groups and the individuals involved.
result group behavior and performance.
• Human relations within teams must fulfill both individual and organizational
• The drawback of this theory is that it requires the acceptance of numerous assumptions objectives simultaneously
about human behavior.
• Individuals and organizations desire efficiency by achieving maximum results with
minimum inpu

Cont…
The experiments were conducted in four phase:
HAWTHORNE EXPERIMENT
1. Illumination Experiments:
•The initial phase of the Hawthorne experiments focused on lighting conditions in the workplace. Researchers tested
different levels of lighting to determine its effect on worker productivity. Surprisingly, they found that regardless
of whether the lighting was increased or decreased, worker productivity improved. It was concluded that factors
other than light were also important.

• Professor Elton Mayo is known as the Father of the Human Relations Approach to Illumination experiments 2. Relay Assembly Test Room Studies:
Management Theory. •A small group of worker asked to work in test room . Each group was kept in separate [Link] included the
Assumptions introduction of a series of HR policy measures for the test group to study their impact on overall productivity. From
• In these experiments, Mayo evaluated the attitudes and psychological reactions of workers time to time, changes were made in working hours, rest periods, lunch breaks, etc. They were allowed to choose their
• Workers are motivated by social
in on-the-job situations. Relay assembly test room experiments own rest periods and to give suggestions. Output They observed that regardless of the changes, productivity increased.
needs This suggested that the social aspects of work, including group dynamics and peer pressure, played a significant role
• Satisfied workers are productive
• It began by examining the impact of illumination levels on worker productivity. Eventually, the in influencing productivity and job [Link] was concluded that something other then these factors was also
workers important .Contributed social & psychological need of worker
study was extended through the early 1930s and addressed a broader range of workplace
conditions. Interview phase 3. Part III - Mass Interviewing Programme (1928-1930)
• hawthorne experiments emphasized the importance of understanding and addressing the human Researchers conducted interviews of 21000 workers to understand their feelings and attitudes towards their work
environment. They discovered that employees' social interactions and the sense of being valued by their superiors were
and social aspects of work, leading to the development of human relations theories and essential factors in job satisfaction and performance. Importance of social factors once again validated through this interview
influencing contemporary management practices
Bank wiring observation room experiments 4. Bank Wiring Observation Room Experiment (1932) A group of 14 male workers in the bank wiring room were placed
under observation for six months. A worker's pay depended on the performance of the group as a whole. The researchers
thought that the efficient workers would put pressure on the less efficient workers to complete the work. However, it was
found that the group established its own standards of output, and social pressure was used to achieve the standards of output

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Theory X and Theory Y

Relevance of Hawthorne experiment at present
• Douglas McGregor's Theory X
• Hawthorne experiments are significant in the field of organizational behavior and (authoritarian management) and
management because they shifted the focus from a purely mechanistic view of Theory Y (participative
organizations to one that recognizes the importance of human factors, social management) offer insights into
dynamics, and psychological factors in the workplace. different management approaches.
• The findings from these experiments continue to influence modern management • Theory Y, which promotes
practices by emphasizing the importance of employee empowerment and
participation, aligns well with
employee engagement, contemporary management
 communication, philosophies.
participation,
Continuous improvement
creating a positive work environment.

Contingency Theory: Contingency Theory SYSTEM THEORY

Systems Theory: • No one-size-fits-all approach to management, and the Key Idea: Organizations are complex systems with
effectiveness of a management style or organizational interconnected parts, and changes in one part can affect
structure depends on the unique circumstances or the entire system.
Modern theory Quantitative theory of Management
contingencies faced by an organization.
Real-Life Application: When implementing a new
• In other words, what works in one situation may not work in
of management another, and management practices must be adapted to fit the
software system in an organization, it's important to
consider how it will impact various departments,
specific context.
TQM Total quality Management workflows, and communication within the organization.
• Therefore, effective management requires a flexible and
context-specific approach.
• Real-Life Application: In a technology company, the
Theory Z
leadership style used for a team of software developers may
differ from that used for a team of marketing professionals, as
each context has unique requirements.

Quantitative approach to management Total Quality Management theory

• The quantitative approach to management, often referred to as

management science or operations research, is a management
• TQM principles, which emphasize continuous improvement, customer focus, and
employee involvement, remain important in modern. Theory Z by William Ouchi
perspective that relies heavily on mathematical and statistical • Its principles align with contemporary business objectives, including innovation, agility,
techniques and quantitative data to solve complex organizational sustainability, and a strong focus on customer experience.
problems and make data-driven decisions.
• TQM continues to be a valuable framework for organizations committed to delivering • Ouchi first wrote about Theory Z in his 1981 book, "Theory Z: How
• It involves the following key elements: high-quality products and service American Management Can Meet the Japanese Challenge." He created the
Quantitative data collection and analysis. theory after conducting research designed to help American companies
compete with Japanese businesses. It takes the best of the Japanese
The use of mathematical models and simulations to represent real- Lean Management management philosophy, and the best of traditional US management
world situations. philosophy, and combines the two.
• Lean management principles, inspired by the Toyota Production System, focus on
Identifying optimal solutions based on mathematical optimization minimizing waste, improving efficiency, and enhancing value for customers. • .It was developed as a response to the cultural and organizational differences
techniques. between American and Japanese companies
Decision support systems and computer-based tools to aid in problem- • They are widely adopted in manufacturing and increasingly in service industries. Lean • He created the theory after conducting research designed to help American
solving. management is applicable to various industries, including manufacturing, healthcare, companies compete with Japanese businesses. It takes the best of the
service, and software development. Japanese management philosophy, and the best of traditional US
• It is not a one-size-fits-all approach but a flexible framework that organizations can management philosophy, and combines the two.
EXAMPLE :In retail chain , implementing computer-based inventory tailor to their specific needs and objectives. By focusing on value, waste reduction, and • Theory Z emphasizes employee involvement, long-term employment, and a
control systems, which are often based on quantitative models, helps in continuous improvement, Lean management helps organizations enhance customer sati holistic approach to management.
monitoring inventory levels in real-time and automatically placing
orders when inventory reaches a certain threshold.

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Key Features of Theory Z: Relevance of Theory Z in Modern Organizations:

Activity :Concept /Application in Management

• TQM approach as a management concept

1. Long-term Employment: Employees are encouraged to stay with
an organization for a long time, which fosters loyalty, stability, 1. Employee Retention and Loyalty: Theory Z's emphasis on long-term employment is relevant today, as
companies seek to reduce turnover and cultivate loyalty in a highly competitive labor market. • Lean Management
and a sense of belonging.
2. Collective Decision-Making: Decisions are made through group 2. Workplace Collaboration: Collective decision-making aligns with modern trends that value teamwork and • Agile management
consensus, incorporating diverse perspectives and promoting cross-functional collaboration, especially in organizations with flat or networked structures. • Kaizen
collaboration.
3. Employee Engagement: By promoting holistic concern for employees, Theory Z aligns with contemporary • SIX SIGMA
3. Individual Responsibility: While decisions are made collectively,
individual accountability for outcomes is emphasized. emphasis on work-life balance, well-being, and employee engagement strategies.
• Diversity , equity , inclusion
4. Holistic Concern for Employees: Employers show concern for the 4. Cultural Adaptability: The theory's integration of Eastern and Western management approaches is particularly
well-being of their employees beyond just their productivity, useful in today’s globalized business environment, where diverse, multicultural teams are common. • Sustainable Management
considering their personal and professional growth.
5. Sustainability and Growth: Companies increasingly focus on sustainable, long-term growth rather than short- • Business Process Reengineering
5. Slow Evaluation and Promotion: Promotions are based on long-
term performance and trust, rather than quick assessments.
term profits, making the patient, deliberate approach to evaluation and promotion in Theory Z relevant. • Theory z
6. Moderate Specialization:Employees may perform a variety of • Strategic management
tasks, allowing for broader skill development and flexibility.

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Sample answer
scenario based question • 1. Management Principles in Engineering Projects:Management involves coordinating various aspects of the project, including
people, technology, and processes. In an engineering project, the primary focus is on ensuring that all engineering disciplines
(electrical, mechanical, and software) work together cohesively. My role as a project manager would be to act as a facilitator
1. Scenario: You have been appointed as the project manager for the development of a new smart device in an between these teams, ensuring that they communicate effectively and their work aligns with the project’s goals.
engineering firm. The project team consists of engineers from various disciplines (electrical, mechanical, software), • 2. Roles of the Manager (Using Mintzberg’s Managerial Roles):
and you must coordinate their efforts to meet tight deadlines. The project has faced challenges such as • Interpersonal Role: In the interpersonal role, I would act as a leader and liaison. This involves motivating my team, ensuring a
miscommunication between teams, budget constraints, and changing customer requirements due to rapid positive work environment, and resolving conflicts between different engineering disciplines. For example, I would hold regular
technological advancements in the market. meetings to ensure alignment between the mechanical, electrical, and software teams, encouraging collaboration and open
communication.

Activity : Class Discussion

Questions • Informational Role: As the project manager, I am responsible for gathering, analyzing, and sharing information. This role is critical
in ensuring that all teams are aware of project updates, customer requirements, and technological advancements. I would
1. Based on your role as the project manager, describe how you would apply management principles to ensure the establish clear communication channels to disseminate information about changes in customer requirements or new engineering
successful completion of the project. Explain the concept of management in the context of engineering projects, constraints effectively to all teams.

( Application based ) focusing on the specific roles you would play (using Mintzberg’s managerial roles: interpersonal, informational,
decisional) to improve coordination and project execution.
• Decisional Role: In the decisional role, I will be responsible for making key decisions related to resource allocation, budgeting, and
timelines. For example, if one discipline encounters a delay due to a technical issue, I must decide whether to reallocate resources
or adjust deadlines to keep the project on track. I would also need to handle crises that may arise, such as budget overruns or team
conflicts, ensuring that decisions align with the project’s overall objectives.
2. Identify the key challenges that arise in multi-disciplinary engineering projects, such as managing technical
complexities, budget constraints, and evolving customer demands. Compare how traditional project • 3. Key Challenges in Multi-Disciplinary Engineering Projects:
management approaches differ from modern trends like agile methodologies or lean engineering, which • Technical Complexities:In a project that involves multiple engineering disciplines, each team works with distinct technical
emphasize flexibility and customer-centricity. challenges. Ensuring that these teams work together smoothly requires a deep understanding of the project’s technical
requirements and the ability to communicate these requirements across disciplines.
3. Lastly, discuss the managerial skills—technical, human, and conceptual—you believe are critical in leading • Budget Constraints:Engineering projects often face budgetary limitations. As the project manager, I would need to continuously
engineering teams effectively, and how you would leverage or develop these skills to manage the project's scope, monitor the budget to ensure that resources are used efficiently. This could involve making trade-offs, such as prioritizing certain
features or sourcing more cost-effective materials.
schedule, and team dynamics.
• Changing Customer Requirements:In the rapidly evolving tech industry, customer demands can change frequently. Adapting to
these changes while staying within the project’s scope and timeline is a significant challenge. I would implement an agile project
management approach that allows the project to adapt to these changes without causing major disruptions.

Cont.
4. Traditional Project Management vs. Modern Trends:
• Traditional Approach:Traditional project management focuses on a linear process with clearly defined stages (initiation, planning, execution, closure). While
this approach provides structure, it may not be flexible enough for projects with rapidly changing requirements.
• Modern Trends (Agile and Lean Engineering):Modern trends like agile methodologies or lean engineering emphasize flexibility, collaboration, and
customer-centric development. These methodologies allow for iterative development, meaning that the project can be adapted to customer feedback at multiple
stages. For this project, I would adopt an agile approach, allowing the team to work in short sprints, reviewing progress frequently, and making adjustments
based on customer input or technological advancements.
5. Critical Managerial Skills:
• Technical Skills:
As a project manager in an engineering firm, a deep understanding of technical concepts is crucial. While I do not need to be an expert in all disciplines, I must
understand enough to make informed decisions and communicate effectively with the team. I would stay updated on industry trends and technical knowledge to
guide the project successfully.
• Human Skills:
Managing a team requires strong interpersonal skills. I would need to ensure that engineers from different backgrounds work collaboratively, resolving any
interpersonal conflicts that may arise. This involves active listening, empathy, and conflict resolution skills.
• Conceptual Skills:
Conceptual skills involve seeing the project as a whole and understanding how the different parts (engineering disciplines, budget, customer requirements) fit
together. I would use these skills to develop strategies that align with the company’s long-term objectives and to solve complex problems that involve multiple
variables.
6. Measures to Ensure Success:
• Cross-Disciplinary Collaboration:
To ensure success, I would foster a culture of collaboration where engineers from different disciplines work closely together, sharing ideas and providing
feedback. This can be achieved by organizing cross-functional team meetings and encouraging open communication.
• Monitoring and Flexibility:
Regular monitoring of project progress, combined with the flexibility to make adjustments as needed, will be key. I would use project management software to
track milestones, deadlines, and budgets, ensuring that any deviations from the plan are addressed promptly.
• Agile and Lean Methods:
By adopting agile or lean methods, I would ensure that the project remains flexible and adaptable to changes in customer needs or market conditions, allowing
the team to deliver a high-quality product on time.

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MEANING OF PLANNING

What is Planning? Planning is deciding in advance what to do, how to do it, when to do it and who to do
it. It involves anticipating the future and consciously Choosing the future course of action.

What to do ?? According to Haimann, Planning is the function that determines in advance what should
be done.”
Planning is the primary function of management.
When to do ??
PLANNING Where to do ??
A primary managerial activity that specifies the objectives to be achieved in future and
selects the alternative course of action to reach defined objectives.

How to do?? Planning is not just setting goals but creating a systematic, actionable path
Ritu Singh to achieve them in an agile environment.
(Assistant Professor ) who to do ??

Definitions
Thus, it involves:
Generally speaking, planning is deciding in advance what is to be done” -W H Newman

• “Imagine you are tasked with designing an

autonomous vehicle. -Without proper planning,
Example
• Defining the organization’s goals
you wouldn’t know where to start, what materials • Establishing an overall strategy for achieving those “Planning is deciding in advance what to do, how to do, when to do and who is to do it. Planning
to use, how much it will cost, or how long it will goals bridges a gap between from where we are to where we want to go” -Harold, Koontz and O'Donnell
take. Planning brings structure and foresight.” • Developing plans for organizational work activities.

“Planning is that function of manner in which he decides in advance what he will do. It is a
decision-making process of a special kind, its essence is futurity.”-Hayness and Massie

“Planning is chalking out plan of action, i.e., the result envisaged in the line of action to be
followed, the stages to go through the methods to use.” - Fayol

Focuses on achieving objective

TYPES OF PLAN
Primary function of management Purpose Of Planning
Pervasive
Continuous
Nature / 1. Provides direction
2. Achievement of organizational objectives
Features / Futuristic 3. Reduces uncertainty/ risk
Characteristic Decision making 4. Minimizes waste and redundancy/ optimum utilization of
resources
of Planning Secures efficiency, economy and accuracy 5. Sets the standards for controlling
6. Overall view of the organization
Intellectual process: 7. Fulfillment of organizational commitment
8. Facilitate decision making
Realistic 9. Promote innovation /creativity
10. Morale boost up
Planning and linking factors 11. Development of manager

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Examples Cont… Why Plan Fails ??

• When Google developed its search engine, it had a strategic goal to index the world’s information.
Operationally, the software engineers were tasked with building different algorithms to improve Strategic Planning: Long-term planning, such as developing a smart
search accuracy. Contingency plans were needed to prevent system overloads or downtime." city infrastructure.
• "When Microsoft shifted its focus from primarily selling software (like Windows) to a cloud-based
service model (Azure), this shift was a part of its corporate plan to transition toward cloud
computing and subscription-based services. This overarching strategy guided the company’s
decisions at every level, from R&D to marketing and operations, helping them compete with other Too much Focus on
Operational Planning: Task-by-task planning, like assigning the Standardized
tech giants like Amazon and Google.“ Multiple goals emphasis on short term
development of different software modules in a project. plans
• in a tech company, a tactical plan may involve setting up new regional offices or launching a future plan
targeted marketing campaign to support a strategic goal of global expansion.
• In a manufacturing company, an operational plan would detail the daily production schedule,
quality control measures, and inventory management to meet the tactical goal of increasing Contingency Planning: Preparing for unexpected challenges, such as
production output. cyberattacks or equipment failure in electrical grids.

Planning Process STEPS OF PLANING PROCESS Cont…

How does a manager Plan?
[Link] Objectives : clear goals are defined for the organization. Objectives must be SMART - 5Selecting One Best Alternative:
Establish objectives specific, measurable, Attainable , realistiv , time bound so that you can achieve end results. Each The most profitable plan with minimal negative effects is chosen and implemented.
department sets its objectives within the overall framework of the organization’s goals. Managerial experience and judgment play a vital role in this decision-making process. For
Developing Planning Premises • For instance, a mobile phone company might set a target to double its sales to 200,000 units next instance, a mobile phone company might opt for increased TV advertisements, online
year. marketing, and excellent after-sales service.
• OBJECTIVE SHOULD BE SMART In electrical and computer science projects, specificity and [Link] the Plan:
Reviewing the planning measurability are crucial. For instance, when designing a new communication protocol, the goal
process might be to reduce data transmission delays by 15%. This step involves putting the chosen plan into action. Managers communicate the plan
Determination of alternatives clearly to employees, allocate resources, organize labor, and procure necessary machinery.
[Link] Planning Premises: Planning is future-oriented and requires understanding external For example, a mobile phone company might hire more salespeople, create TV
events that could impact decisions. These events, known as planning premises, are assumptions advertisements, initiate online marketing activities, and establish service workshops.
based on which plans are made. For example, a mobile phone company might base its sales
objective on favorable government policies promoting digital transactions. [Link]-Up Action:
Implementation of plans Evaluation of alternatives [Link] Alternative Courses of Action: After setting objectives and making assumptions, Continuous monitoring and feedback are crucial to ensure plans are on track. Regular
various ways to achieve the goals are explored. Multiple alternatives, such as price reduction, checks and comparisons against set standards are performed. Feedback mechanisms, such
increased advertising, or improved after-sales services, are identified. as customer responses and revenue collection, are utilized to evaluate the actual outcomes
4. Evaluating Alternative Courses of Action: Each alternative is carefully evaluated, considering against the planned objectives.
both positive and negative aspects. Factors like cost, risks, and returns are assessed within the For instance, the mobile phone company establishes a feedback system across its branches
Formulation of derivative Selecting a course of action planning premises and available resources. The evaluation helps in weighing the pros and cons of
plans each option. to assess customer responses, revenue, and employee feedback.

Importance of Planning Failure of plan: Reasons

Focuses attention on objectives and result Lack of accurate information
Strategies to overcome failure of planning
Reduces uncertainty and risk Time and cost
• Conduct a Root Cause Analysis
Provides sense of direction Delay in actions
• Better risk management prepares the team to handle unexpected issues.
Encourages innovation and creativity Planning in advance not always right course of action
• Enhance Communication and Stakeholder Involvement (Status updates, stakeholder reviews,
Helps in co-ordination Resistance to change and feedback loops
Lack of ability to plans • Set Realistic and Achievable Objectives (SMART Goals)
Guides decision-making
• conduct a thorough resource assessment before planning. Allocate resources based on priorities
Provide efficiency in operation False sense of security
• implement regular performance reviews and milestone evaluations
Environmental constraints
Facilitates to Control • Focus on Team Collaboration and Accountability
Multiple goals
Ensures Commitment • Incorporate Contingency Buffers
Too much focus on future • Learn from Past Failures and Continuous Improvement
Aid to Business Success
Coordination problem with other managerial function.
Brings Systematization

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FOR OPERATIONAL PLANNING :TOOLS & TECHNIQUES 2. Tactical Planning Tools and Techniques
Planning Tools and Techniques [Link] Analysis: Identifies internal Strengths and Weaknesses, and external Opportunities and Threats. 1. Gantt Chart:A visual tool for project planning that shows the timeline for tasks and project milestones.
Used to understand the current position of the organization and plan for leveraging strengths while mitigating •Useful in managing timelines and assigning responsibilities within departments to achieve specific goals.
weaknesses. Example: An IT department uses Gantt charts to plan software development projects, showing tasks like coding,
•Example: A company analyzing market trends to identify potential growth opportunities. testing, and deployment.
2. PERT Chart (Program Evaluation and Review Technique):
2. PESTLE Analysis: Examines Political, Economic, Social, Technological, Legal, and Environmental •A method for scheduling, organizing, and coordinating tasks within a project, showing the relationships and
factors affecting the business. Used for external environmental scanning and strategic planning, especially in dependencies between [Link] project managers anticipate the time required for each task and identify the
industries influenced by government regulations or environmental policies. critical path (the sequence of tasks that cannot be delayed).
•Example: A tech company planning to enter a new market might analyze the legal and technological Example: Used in large construction projects or software development projects where task dependencies are
landscapes. crucial.
3. Scenario Planning:
3. Porter’s Five Forces: Analyzes the competitive environment based on five forces: Threat of New Entrants, •Purpose: Involves identifying potential future scenarios and developing plans to deal with each one.
Bargaining Power of 4. Buyers, Bargaining Power of Suppliers, Threat of Substitute Products, and •Usage: Helps in anticipating risks and preparing strategies to deal with different outcomes.
Industry Rivalry. Helps in strategic planning by understanding the competitive dynamics and industry •Example: In energy companies, scenario planning is used to deal with price fluctuations, supply shortages, and
profitability. regulatory changes.
•Example: A company planning a market entry may use this tool to assess competition and market threats. 4. Management by Objectives (MBO):
•Aligns organizational objectives with individual performance [Link] and employees work together to
5. Balanced Scorecard: Measures organizational performance from four perspectives: Financial, Customer, set objectives, track progress, and evaluate performance.
Internal Processes, and Learning and Growth. Ensures that strategic plans are implemented by balancing •Example: A manufacturing team may use MBO to set productivity targets, focusing on reducing defects or
financial and non-financial performance indicators. improving delivery times
•Example: Used by top management to align performance metrics with long-term goals, like improving customer
satisfaction while increasing profitability.

3. Operational Planning Tools and Techniques

1. Budgeting: A financial plan that estimates income and expenses over a specific period. Ensures
that resources are allocated efficiently to meet immediate operational needs.
Risk
Management:
Purpose: Involves identifying, assessing, and controlling risks that could
potentially hinder the success of a project or plan. GANTT CHART
Usage: Used at all levels of planning to ensure risks are mitigated or
•Example: A department uses budgeting to ensure it can cover operational costs such as salaries, prepared for. •A Gantt chart, or harmonogram, is a bar chart that graphically
materials, and equipment for the upcoming quarter. illustrates a schedule for planning, coordinating, and tracking
Example: A tech company developing a new product may perform risk
2. Forecasting:Uses historical data to predict future outcomes such as sales, customer demand, or management to plan for cybersecurity threats or market downturns. specific tasks related to a single project.
market [Link] operational managers plan for resource allocation, inventory management, and •Visualize the stages of a project.
staffing. Other Useful Tools and OKRs Purpose: A goal-setting framework that helps companies align goals with •one of the most widely used management tools for project
(Objectives measurable outcomes. scheduling and control.
•Example: A retail company uses sales forecasting to prepare inventory for peak shopping seasons. Techniques Across All and Key •The anatomy is straightforward: Tasks appear on the vertical
3. Critical Path Method (CPM): Results): Usage: Helps operational and tactical teams focus on what needs to be
Planning Levels achieved and how success will be measured. axis, and time intervals, or activity duration, appear along
•Identifies the longest sequence of dependent tasks that must be completed for a project to be the horizontal axis.
[Link] efficient scheduling by focusing on the most time-sensitive tasks to prevent project Example: A startup may use OKRs to track product development •These charts are commonly used by teams in construction,
milestones, such as “Increase app downloads by 50% in 6 months.” consulting, marketing, manufacturing, HR, software
delays. development, and event planning.
EX. Used in industries like construction, where delays in one task can affect the entire project timeline. Kanban Board: Purpose: A visual tool to manage workflow and optimize task completion
in processes.
4. Six Sigma:A set of techniques used to improve processes by identifying and removing causes of •For example, developing a machine learning algorithm can be
defects and minimizing [Link] used in operational planning to ensure quality control in Usage: Useful for managing work in progress and ensuring tasks move broken into data collection, model training, and testing phases.
efficiently through different stages.
manufacturing and service processes. Advantages
Disadvantages
•Example: A manufacturing company using Six Sigma to reduce production defects and improve Example: A software development team uses Kanban boards to track • illustrating a “big picture” view for projects of any size.
tasks in the development process, from coding to testing. • It also enables project stakeholders to identify milestones and monitor progress • The need for constant updating.
customer satisfaction by showing which tasks need to be completed by a specific date. •Bar size doesn’t indicate the amount of work
• u can easily identify any functions that fall behind schedule and take the •Difficulty in seeing the entire chart on a single
appropriate action. page

• Thank you

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History and Concept What is MBO ?

Management by Objectives Management By Objectives (MBO) can be defined as
• a process whereby the employees and the manager/ superiors /subordinates come
together
RITU SINGH • to identify common goals,
• the employees set their individual goals and major area in term of result expected to
(ASSISTANT PROFESSOR) be achieved,
• Developed by Peter Drucker in the 1950s.
• the standards to be taken as the criteria for measurement of their performance and
• Emphasizes results over processes. contribution and
• Application of goal-setting theory: • deciding the course of action to be followed.
individual and organizational goals are
aligned.

EFFECTIVE MANAGEMENT IS GOAL ORIENTED OVERALL OBJECTIVE HAS 4 ASPECTS Main Concept
Specific goals
Goals • The principle behind Management by Objectives (MBO) is to make sure that everybody
within the organization has a clear understanding of the aims, or objectives, of that
organization, as well as awareness of their own roles and responsibilities in achieving
Purpose /mission those aims.
Definiteness (specific & precise ) • The complete MBO system is to get managers and empowered employees acting to
Overall organizational goals implement and achieve their plans, which automatically achieve those of the
organization.

Divisional goals Scope( area of operation boundary )

Departmental goals
Direction (directed towards stated goals
Individual goals

Approach of MBO
Management by Objectives Principles Features of MBO • Top down approach
• Objective framed by top & communicate to lower
• Participation / involvement
• Bottom up approach
• Integration
• Individual frame their objective & send to superiors for
• Link objective to performance the approval modification or acceptance . This process
• Continuity continues till manager approves & then communicated to
 Commitment the department manager who set goals for their respective
 Top management support deptt.
• Cascading of organizational vision, goals and objectives
• Specific objectives for each member  Individual goals alignment with organizational goal
 Participation
• Participative decision making
 Autonomy
• Explicit time period  Review
• Performance evaluation and feedback  Focus on result
 Measurable and time bound
•

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The MBO Process MBO Process

MBO Strategy: Three Basic Parts Define
Organization
1. Setting Organizational Goals: The organization first defines its broad objectives
and strategic goals. These could relate to revenue growth, market expansion, cost
reduction, innovation, or other critical areas.
al Goals
2. Cascading Objectives to Departments and Individuals: Once the organizational
All individuals within an organization are assigned a special set of objectives goals are defined, they are cascaded down to different departments, teams, and
that they try to reach during a normal operating period. These objectives are Define individuals. Each department or employee develops objectives that align with the
Performance organization’s overall goals. For example, if the company's objective is to increase
mutually set and agreed upon by individuals and their managers. Employee
Appraisals market share, the sales department might set specific sales targets, while the
Objectives
marketing team focuses on brand awareness initiatives.
3. Creating Action Plans: After defining specific objectives, action plans are
developed. These action plans outline the steps or tasks necessary to achieve the
Performance reviews are conducted periodically to determine how close objectives. For engineering teams, these might include project timelines, resource
allocation, and task prioritization.
individuals are to attaining their objectives.
Continuous 4. Monitoring and Measuring Progress: Regular monitoring and performance
Monitoring evaluation are critical to the MBO process. Managers and employees meet
Providing Of Employee periodically to review progress against the objectives and make necessary
Feedback Performance adjustments. For example, in engineering projects, regular design reviews, testing
phases, and progress meetings ensure that objectives are on track
Rewards are given to individuals on the basis of how close they come to And
Progress 5. .Evaluating and Rewarding Performance: At the end of the evaluation period,
reaching their goals. managers assess the success of individuals and teams based on the achievement of
Performance
their objectives. Rewards, promotions, and further opportunities for development
Evaluation/R
may be based on these assessment
eviews

Why is MBO relevant for engineers? Features and Advantages of MBO WHERE WE CAN APPLY MBO
Motivation 1. Corporate Management:
• Engineers work in structured environments where goal-oriented planning is crucial
for project success. Better communication and Coordination • Strategic Goal Setting: MBO helps corporate leaders set clear and measurable objectives
• MBO provides a systematic approach to goal setting, planning, and achieving aligned with the company’s long-term strategy.
The Smart Method
outcomes in technical environments. • Performance Evaluation: It provides a basis for evaluating employee and departmental
Realist goals performance based on specific, pre-set goals.
Make planning effective • Decision Making: MBO promotes data-driven decision-making by focusing on objectives
and measurable outcomes.
Employee involvement [Link] Management:
Facilitate employee – employer relationship • Project Goals and Milestones: MBO helps in setting clear project objectives, timelines, and
deliverables, ensuring everyone is working toward a shared goal.
Facilitate control
• Team Coordination: Project teams can use MBO to align their efforts and ensure that
Personality development individual tasks contribute to the overall project goals.
promote system of self appraisal

Cont.. Where to Use MBO The Smart Method

[Link] Service: • The MBO style is appropriate for knowledge-based enterprises when your staff is
• Service Quality: Customer service departments can use MBO to set and measure goals related to competent.
response times, resolution rates, and customer satisfaction. • The goals thus set are clear, motivating and there is
• It is appropriate in situations where you wish to build employees' management
a linkage between organizational goals and
• Client Retention: It helps in focusing on improving customer loyalty and retention by achieving and self-leadership skills and tap their creativity and initiative.
performance targets of the employees.
specific service targets. • Management by Objectives (MBO) is also used by chief executives of
• The focus is on future rather than on past. Goals and
[Link] Resource Management: multinational corporations (MNCs) for their country managers abroad.
standards are set for the performance for the future
• Employee Performance: MBO can be used for performance appraisals by evaluating how well with periodic reviews and feedback.
employees achieve their individual objectives.
• Career Development: It can guide employees in setting personal development goals aligned with
organizational needs.
• Recruitment: MBO can help align new hires’ goals with the organization's expectations and
culture.

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WHERE ENGINNERS CAN APPLY THIS METHOD

Managerial Focus Effective MBO
• MBO managers focus on the result, not the • Top management support MBO in an Engineering Project – Building a Smart City Infrastructure
activity. • Educating manager
• They delegate tasks by "negotiating a contract of • Clarity in formulation of objective Development of an Energy-Efficient Data Center
goals" with their subordinates without dictating a
detailed roadmap for implementation. • Feedback
• Management by Objectives (MBO) is about setting • Interdepartmental coordination Smart Grid Implementation
yourself objectives and then breaking these down • Increased participation
into more specific goals or key results.
IoT-Based Home Automation System

Autonomous Vehicle Project

CORPORATE EXAMPLES :
Challenges in applying MBO in engineering 1. General Electric (GE) :GE has historically used MBO to align its engineering teams’ goals with broader organizational objectives.
For example, in their Energy Division, MBO was used to focus on developing more energy-efficient turbines.
• Engineering Objective: Reduce the cost per megawatt produced by 10% through innovative engineering in turbine design.
1. Dynamic and Unpredictable Nature of Engineering Projects: Engineering projects often deal with new technologies, unforeseen technical
challenges, or design complexities. The rigidity of MBO in setting fixed goals may not always align with the need for flexibility when these • Organizational Goal: Increase overall profitability in the renewable energy sector by improving energy efficiency. THANK YOU 
challenges arise.
2. Time-Consuming Objective Setting: MBO requires a considerable amount of time for detailed goal setting and planning, which can delay the • GE implemented MBO to ensure each team worked toward measurable, specific outcomes, enhancing productivity and innovation.
start of technical work. In fast-paced engineering environments, this can lead to inefficiencies.
2. Siemens AG : Siemens, a global leader in electrical engineering and electronics, applies MBO in various projects, especially in smart
3. Overemphasis on Measurable Outcomes: MBO focuses heavily on setting and achieving specific, measurable goals. However, not all infrastructure and energy systems.
engineering outcomes can be quantified easily, especially in creative or innovative fields like R&D or design engineering.
4. Difficulty in Monitoring Complex Projects: Engineering projects are often multifaceted and require cross-disciplinary collaboration. • Engineering Objective: Develop a smart grid system to reduce energy losses by 15%.
Monitoring individual objectives within such complex systems can be difficult, making it hard to maintain the level of oversight that MBO • Organizational Goal: Lead the market in smart infrastructure solutions by reducing global energy waste through engineering
demands.
innovation.
5. Resistance to Frequent Feedback and Monitoring: Engineers, especially those working on technical, deep-focused tasks, may find frequent
check-ins and feedback sessions distracting or intrusive, which could lead to disengagement or reduced productivity. • By setting clear objectives for its engineering departments, Siemens aligns technological advancements with long-term business
6. Inflexibility in Rapidly Changing Environments: Engineering projects, especially those involving software development or emerging goals.
technologies, often require iterative approaches like Agile or Scrum. MBO’s structured process may not suit environments that require quick
pivots and changes in direction. 3. Intel Corporation has used MBO to streamline its R&D efforts in semiconductor design and computer engineering.
7. Focus on Short-Term Objectives:MBO can sometimes push teams to focus on short-term goals to the detriment of long-term innovation. • Engineering Objective: Increase processing power by 25% in the next generation of chips.
Engineers need room to experiment, fail, and iterate, which may be limited by the strict adherence to preset objectives.
• Organizational Goal: Maintain market leadership in microprocessor production and ensure each engineering milestone
8. Coordination and Collaboration Challenges: Engineering projects often involve large teams working on different components of a system.
Ensuring that all teams’ objectives align perfectly through MBO can be complex and lead to coordination issues. directly contributes to this goal.
9. Lack of Flexibility for Problem-Solving: Engineering requires creative problem-solving, which can sometimes be hindered by rigid MBO • MBO helped Intel ensure that engineering teams were consistently innovating in line with market demands, focusing on measurable
structures. Engineers may feel constrained by predefined objectives and lose the freedom to explore alternative solutions.
10. Pressure to Meet Targets:The emphasis on meeting specific targets may create pressure to achieve goals at the expense of quality or
objectives like improved chip performance and power efficiency.
innovation. Engineers may rush through crucial development stages to meet deadlines, leading to suboptimal solutions.

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WHAT IS ORGANIZING?
Organise means
To put things into an order
HIGHLIGHTING POINT
To put things in a structured way

ORGANISING To make system for easy access to them

"Organization is the process of identifying and grouping of the works to be performed,

defining and delegating responsibility and authority and establishing relationships for
the purpose of enabling people to work most efficiently“………… -

As a As a
Louis A. Allen
Ritu Singh
(Assistant Professor) “Organising is a process of defining the essential relationship among people task &
activities in such a way that all the organisational resources are integrated &

Structure Process
coordinated to accomplish its objective efficiently & effectively”…….
- Pearce & Robinson

Key Concepts
1. Organizational Structure:
• Organizational structure defines the hierarchy, roles, and relationships within an organization.
• Types of organizational structures include functional, divisional, matrix, and flat structures.
What is organization Types
2. Span of Control: structure
• Span of control refers to the number of subordinates a manager can effectively supervise.
• Factors influencing span of control include the complexity of tasks, employee skills, and manager's abilities. • Line Organization: A simple structure where authority flows in a direct line from top
3. Delegation: • Organizational structure is a system used to define a hierarchy management to employees.
• Delegation is the process of assigning authority and responsibility to subordinates. within an organization.
• Effective delegation empowers employees and frees up managers to focus on strategic tasks. • Functional Organization: Divides the organization into departments based on function
4. Coordination: • It identifies each job, its function and where it reports to within (e.g., marketing, finance, HR).
• Coordination ensures that different departments and functions work together harmoniously. the organization.
• It minimizes conflicts, overlaps, and inefficiencies.
• Matrix Organization: A hybrid structure where employees report to both functional and
• This structure is developed to establish how an organization
5. Departmentalization: operates and assists an organization in obtaining its goals to
project managers.
• Departmentalization involves grouping activities and people into specific departments based on functions, products, geography, or allow for future growth. • Divisional Structure: Organization is divided into semi-autonomous units or divisions,
customers.
6. Job Design: • The structure is illustrated using an organizational chart. usually by product, service, or geography.
• Job design is about creating well-defined job roles, including responsibilities, tasks, and qualifications.
• It affects employee motivation, satisfaction, and performance.
• Refer link :
7. Authority and Responsibility: • [Link]
 Authority is the power to make decisions and take actions, while responsibility is the obligation to perform tasks. • [Link]
 Both authority and responsibility should be balanced to avoid issues of over-centralization or diffusion.
8. Chain of Command:
• The chain of command is the formal path through which communication and authority flow in an organization.
• It helps maintain order and accountability.

Cont..
Example : Application Google – Matrix Structure
• Application of Organizing: Google uses a matrix structure, which allows employees to report to
Advantages of organization structure
multiple managers, typically one for their functional role and another for a project they are working on.
This structure supports flexibility and innovation, key components of Google’s business model.
Amazon – Functional and Divisional Structure
• Application of Organizing: Amazon uses both functional and divisional structures in its operations. At the top • Example of Organizing: Google’s organizing principle allows cross-functional collaboration between Clarity of organsition structure
level, the company has a functional structure where divisions are based on different business functions like finance, teams, enabling engineers, designers, and marketing teams to work together on a product. This
human resources, and IT. However, due to its vast global presence, Amazon also utilizes a divisional structure collaborative approach has led to the success of products like Google Search, Gmail, and Android.
based on geographic regions (e.g., North America, Europe, Asia-Pacific).
Airbnb – Decentralized and Cross-functional Teams
Authority responsibility structure
• Example of Organizing: In its warehouse operations, Amazon has optimized organizing by creating teams
responsible for specific functions like packaging, sorting, and logistics. By organizing tasks into specialized teams, • Application of Organizing: Airbnb uses a decentralized structure, allowing cross-functional teams to work
Amazon achieves high efficiency and productivity in its supply chain operations. independently. This type of organizing promotes innovation and agility, important for a technology-based Location of experts
McDonald's – Franchising and Standardization company.
• Application of Organizing: McDonald's uses a franchise system combined with a highly organized, standardized • Example of Organizing: Airbnb organizes its product development teams across cities and countries,
structure. It organizes its operations to maintain consistency in its products and services across all franchises. allowing these teams to adapt to local market needs and consumer behaviors. Each team is empowered to Location of potential areas of conflict
• Example of Organizing: The company organizes its kitchen operations using the "Speedee Service System," where make
tasks are divided into specific stations (grill, fryer, cashier). This clear division of tasks allows McDonald's to deliver
consistent service and products worldwide. Scope for organizational improvement

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Nature of Organisation
Fundamental Concept of organising NATURE OF ORGANIZATION

Structure Of Relationship
1) Group of Persons: An organization is a group of people working together for the achievement of
DIFFERENTIATION: Managerial Functions
common objectives. The group may be large or small. An organization is a system of cooperative
relationships of two or more persons.
It means that an organization is composed of units that 2) Common Objectives: Every organization has a common objectives distinct from personal objectives
Ongoing Process
work on specialized tasks using different work methods of the members. The common goal is the basis of cooperation among the members. The objectives of the
organization are usually are made explicit
and requiring employees with unique competencies. Encourage Teamwork
3) Division of Work: An organization comes into existence when the total task is divided into the
members of the group. Division of work is necessary not only because one individual cannot do all the
Foundation Of Management work but specialization results in efficiency and effectiveness
INTEGRATION: 4) Efforts: The members of an organization are willing to help each other for the achievement of desired
Goal Oriented goals. Cooperative relationships are stabilized both vertically and horizontally among different units of the
It means that the various units must be put back together organization:
so that work is coordinated Adaptive To Change 5) Communication: People who form an organization communicates with each other in order to integrate or
coordinate there efforts. The structure must be such that people can perform together efficiently.
Situational

Cont…
6) Central Authority: In an organization, there is a central directing authority which
Importance IMPORTANCE OF ORGANIZING:
controls the concerted efforts of the group. The chain of authority- responsibility
relationships is known as the chain of command 1)Facilitates Administration 1)Facilitates Administration: Achievement of the objectives of an enterprise by providing a framework of
coordination and control. It provides a system of authority and network for effective communication. Individual goals
7) Rules and Regulations: For the orderly and systematic working of the members, rules 2)Encourages Growth & Diversification can be coordinated towards group goals. A properly balanced organization facilitated both management and operation
and regulations are laid down and enforced by the central authority. of the enterprise
3)Optimum Use of New Technology
2) Encourages Growth & Diversification: It has enabled organizations to grow and expand to giant sizes. Systematic
8) The Dynamic Element: An organization is not a mere mechanical structure but a living
4) Stimulates Innovation & Creativity division of work and consistent delegation of authority facilitate taking up of new activities and meeting new demands.
organism arising out of the sentiments, attitudes, and behavior of people. The people are the It provides flexibility for growth without losing control over various activities.
material of construction that holds the structure together and gives it vitality. 5)Encourages Good Human Relations
3) Optimum Use of New Technology: It is made through a sound structure manned with competent employees. In
6) Facilitate control addition, Optimum use of technology permits optimum utilisation of human resources. Sound organization ensures that
every individual is placed on the job for which one is best suited.
7) Ensures Continuity of Enterprise 4)Stimulates Innovation & Creativity: It stimulates creative thinking and initiative on the part of employees. It
8) Coordination provides for effective management of change and responds favourably to changes in environment. It provides
recognition for the professional and the specialist in terms of their achievement.
9) Create Synergies 5) Encourages Good Human Relations: The assignment of right jobs to right person improves job satisfaction and
inter-personal relations. Well-defined jobs and clear lines of authority and responsibility ensure good human relations
10) Facilitate communication

Principles Of Organising
CONT.. Principles of unity of objectives
1) Determination of objectives
Principle of organisational efficiency
Principle of division of labour
6) Facilitate control
Principle of authority & responsibility 2) Division of activities
7) Ensures Continuity of Enterprise: It provides scope for the training and development
of future management. It provides avenues for development and promotions through Principle of delegation

Process of
delegation and decentralisation. Principle of scalar chain
3) Grouping of activities
8) Coordination: It facilitates order and cohesiveness in the enterprise. Division of labor, Principle of span of control
better utility of technology and human talent helps to improve the efficiency and quality of

organising
Principle of unity of command
work. Clear channels of communication among the members of the organization leads to
Principle of balance 4) Defining authorities & responsibilities
coordination.
Principle of continuity
9) Create Synergies
Principle of simplicity
10) Facilitate communication 5) Coordination
Principle of departmentalization
Principle of co- operation
6) Reviewing process & Reorganising

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PROCESS: Formal Organization

Process of organizing:
IDENTIFICATION GROUPING OF
A formal organization is the official, structured
OF ACTIVITIES ACTIVITIES 1. Identification of Activities: First step is to determine the tasks that must be performed to achieve the established arrangement of roles, responsibilities, and
objectives. Activities and jobs are building blocks of any organization. The activities to be performed depends relationships within an organization. It is deliberately • Deliberately created
upon the objectives, nature and size of the enterprise. structure
created by management to achieve specific objectives
2. 2. Grouping of Activities: The various activities are the grouped into departments or divisions according to
and is documented through organizational charts, • Job orientation
similarity and common purpose. Such grouping is necessary for the purpose of specialization, coordination and
control. It may be grouped on various basis i.e. functions products, territories, customers etc depending on policies, and procedures. • Division of work
Features of • Departmentalisation
1. 3. requirements.
Example: formal
3. Assignment of Duties: Groups of activities or departments are then allotted to different positions. Every position organisation • Formal authority
is occupied by an individual best suited for it. The assignments of activities creates responsibility and ensures In a manufacturing company, the formal organization includes • Delegation
4. certainty of work performance. The process should be carried down to the lowest levels. It is basically done to the hierarchy where managers, engineers, and factory workers
avoid duplication of work and over-lapping efforts. have well-defined roles. Workers report to supervisors, • Coordination
ASSIGNMENT OF DELEGATION OF 4. Delegation of Authority: Every individual is given the authority required to carry out the responsibility assigned supervisors report to department heads, and so on. Tasks are • Based on principle
DUTIES AUTHORITY to him. A chain of command is created through successive delegation of authority. Different positions are linked delegated based on this structure to ensure smooth production. of organising
vertically and horizontally by establishing formal authority. Every individual must know to whom he is
accountable and who are his subordinates.

Informal Organization
• An informal organization refers to the
network of personal and social relationships
that naturally form between employees. It is Features of informal Organistaion
not formally planned or documented but arises
organically based on mutual interests, Unplanned Structure:
friendships, or shared experiences.
• Example: Social and Emotional Bonds
Advantages
• In the same manufacturing company, workers of formal
may form informal groups based on shared Communication: and informal
interests or friendship. These groups could organisation
discuss work challenges and collaborate on Influence and Leadership
solutions, even though these relationships are
not officially recognized in the company Support and Collaboration
structure. A worker who is not a manager but
has experience and influence might guide
others informally.

Integration of Formal and Informal Organizations in Organizing

SPAN OF MANAGEMNT
• The span of management defines how many direct reports a manager can handle efficiently while
maintaining effective control and communication.
Both complement each other in the organizing process: • This concept plays a pivotal role in designing organizational structures by determining:
• Formal organizations provide structure, control, and clear goals, ensuring that tasks are 1. The number of management levels: A narrow span of control results in more hierarchical levels, while a
completed efficiently and in line with the organization’s objectives. wider span results in fewer levels.
Disadvantages:
formal and • Informal organizations create a support network that improves morale, communication, 2. Communication flow: It affects the communication process within the organization, with wider spans
Informal and collaboration, fostering a positive work environment. encouraging more direct communication and narrow spans increasing the need for middle management.
organsiation Managers must understand and leverage both types of organization to ensure effective 3. Managerial workload: It influences the amount of time and attention a manager can provide to each
subordinate, affecting the quality of supervision and guidance.
organizing. While the formal structure ensures clarity and accountability, the informal
organization can boost employee engagement and innovation. • Depending upon the numbers of employees that can be supervised or control by manager , there can be two
kind of structure in the organization :
a) Tall Structure b) Flat Structure

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Graicuna’s Theory of Span of Management Alternatives to Graicunas' Formula

Graicunas identified three types of relationships: DELEGATION
1) Direct Single Relationships: Between the manager and each subordinate.
1. Agile and Scrum Methodologies: Delegation is the process by which a manager or leader assigns
2) Direct Group Relationships: Between the manager and different groups of In Agile environments, the focus is on team autonomy and frequent, short communication loops (e.g., daily stand-ups). These responsibility and authority to another person, typically a
subordinates. frameworks minimize the traditional top-down relationships, reducing the complexity of direct management and allowing subordinate, to carry out specific tasks or make decisions.
managers to supervise larger teams effectively. However, the manager retains ultimate accountability for the
3) Cross Relationships: Between the subordinates themselves. results. Delegation involves giving employees the power to act
2. Matrix Organizational Structure: on behalf of the manager within defined limits while still
In matrix structures, employees report to more than one manager (e.g., a project manager and a functional manager). This maintaining oversight.
shared responsibility for managing subordinates reduces the relationship burden on any single manager.
Graicunas' formula remains a valuable concept in highlighting the
complexity of managing multiple subordinates, especially in 3. Decentralized Decision-Making: Key Elements of Delegation:
understanding the exponential growth of relationships as teams expand. Decentralization empowers teams to make decisions independently, reducing the need for constant management oversight [Link]: The manager transfers the right to make
and lowering the relationship management complexity. The role of the manager shifts from controlling day-to-day tasks to decisions and carry out tasks to the subordinate.
facilitating team collaboration.
[Link]: The subordinate becomes responsible for
4. Flat Organizational Structures: completing the assigned task.
However, modern organizational tools and structures, such as digital Flat structures reduce hierarchical layers, allowing managers to handle wider spans of control. This approach is particularly
communication platforms, team-based leadership models, and decentralized common in tech startups and modern companies where autonomy and direct communication across levels are encouraged.
[Link]: While authority is delegated, the
decision-making, offer ways to mitigate this complexity and allow managers manager remains accountable for the success or failure of
5. Self-Managed Teams: the task.
to handle larger spans of control effectively. In some organizations, self-managed teams operate without constant oversight. Teams are responsible for coordinating their
own work, reducing the manager’s direct involvement in subordinate relationships.

Relevance of Delegation in Modern Organizations DELEGATION V/S DECENTRALISATION

1. Globalization and Distributed Teams • Delegation is the process of assigning specific tasks to subordinates while retaining overall control, whereas
decentralization involves distributing significant decision-making authority across various parts of the
2. Increased Complexity of Tasks organization. Both processes are essential for managing large and complex organizations, but decentralization
3. Flat Organizational Structures focuses more on distributing authority throughout the organization, whereas delegation is a more temporary
4. Technological Advancements and task-specific distribution of responsibility.
5. Leadership Development • Delegation is most effective when:
6. Employee Retention and Motivation • The manager needs to offload certain tasks to focus on more strategic activities.
• A specific task or project requires attention, but overall control must remain with the higher authority.
• Challenges of Delegation • The goal is to develop employees’ skills through assigning specific responsibilities.
1. Fear of Losing Control: Some managers may hesitate to delegate because they fear losing control over tasks and Decentralization is most effective when:
outcomes.
• The organization is too large and complex for top management to make all decisions.
2. Lack of Trust: Managers may feel that their subordinates are not capable of handling certain tasks, leading to
reluctance in delegating important responsibilities. • Local or regional divisions need the autonomy to make quick decisions based on market conditions or operational
needs.
3. Inadequate Training: If employees are not adequately trained or prepared, they may struggle to handle the tasks
delegated to them, resulting in poor performance. • The organization wants to empower lower levels of management and promote faster decision-making across the
business.

EXAMPLE
• Delegation
• In a marketing department, the marketing manager delegates the task of preparing a social
media campaign to a team member. The team member is given authority to design and
execute the campaign, but the final approval and overall responsibility remain with the
manager.
• Decentralization
• A multinational corporation decentralizes its operations by giving its regional offices full
authority to make decisions about local marketing strategies, budgeting, and human
resources. Each region operates independently, with limited interference from
headquarters.

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Key practical implications of teaching organizing in

CONT..
Example management
 Improved Decision-Making: Understanding how to organize resources, tasks, and people helps students make informed decisions • Change Management: Organizing principles can help students manage organizational change by understanding
Responsibility: Responsibility refers to the duties or tasks that an individual or a group of people are expected to perform. It is often when they enter management roles. They can identify the most effective ways to allocate resources and delegate responsibilities.
associated with a specific role or job function. When someone is responsible for something, they are expected to complete it or how to adapt structures, processes, and roles to new requirements.
oversee it.  Enhanced Leadership Skills: Learning about organizing equips students with leadership skills, including delegation, coordination,
and communication, which are essential for effective management. • Career Advancement: Proficiency in organizing is often associated with strong management skills, which can
• Example: In a software development team, a programmer may be responsible for writing code for a specific feature of a software
application. It's their job to ensure that the code is written and functions correctly.  Increased Efficiency and Productivity: Organizing principles can help students optimize processes and workflows, leading to enhance students' career prospects and their ability to climb the corporate ladder.
improved efficiency and productivity in their future work environments.
Accountability: Accountability, on the other hand, goes a step further. It means that someone is answerable for the results or • Innovation and Creativity: Students can apply organizing principles to create an environment that fosters
outcomes of a particular task or responsibility. It involves taking ownership and explaining or justifying the results, whether they are  Better Problem Solving: The ability to structure and organize complex problems and tasks is a valuable skill in management. innovation and creativity, helping organizations stay competitive.
positive or negative. Teaching organizing can help students develop this problem-solving capability.
• Example: In the same software development team, the project manager is accountable for the successful completion of the entire  Effective Teamwork: Organizing involves creating clear roles and responsibilities, which is critical for teamwork. Students learn how • Global Business: In today's globalized world, organizing concepts are essential for managing cross-cultural teams
project. They are answerable for the project's schedule, budget, and quality. If the project is delayed or exceeds the budget, the to establish and manage teams efficiently. and coordinating operations across multiple locations.
project manager is held accountable and must explain the reasons.
 Adaptability and Flexibility: Organizing principles can help students create adaptable organizational structures and systems, • Compliance and Regulation: Teaching organizing can introduce students to regulatory and compliance
Authority: Though not mentioned in your question, it's also worth noting that "authority" is another related concept. Authority is enabling them to respond to changing business environments and market conditions.
the power or right to make decisions, give orders, or enforce actions. It often goes hand-in-hand with responsibility and requirements, helping them ensure that their organizations operate within legal boundaries.
accountability.  Conflict Resolution: Organizing includes dealing with interdepartmental conflicts and overlaps. Students learn to address and
resolve such conflicts, which is a valuable skill for a manager. • Sustainability: Organizing can also include considerations for sustainability, such as organizing resources and
• Example: In a company, the CEO has the authority to make strategic decisions and set the direction for the organization. They are
 Resource Allocation: Students learn how to allocate resources effectively, which is vital for budgeting, financial management, and processes to minimize environmental impact. This is an increasingly important aspect of modern management.
responsible for these decisions, and they are held accountable for the company's overall performance.
resource optimization.
• In summary, responsibility refers to tasks or duties, accountability involves being answerable for the outcomes, and authority • Entrepreneurship: Understanding organizing is valuable for budding entrepreneurs as they start and grow their
relates to the power to make decisions. All three are important in a well-organized and functioning organization.  Communication Skills: Teaching organizing emphasizes the importance of clear and effective communication within an businesses, helping them create efficient and scalable operations.
organization, fostering strong communication skills among students.

Thank You 