PRINCIPLES OF MANAGEMENT

EDITORIAL BOARD

Dr. Pankaj Vaidya Dr. Pooja Verma

Head of School and Professor PhD & UGC-NET (Management)

Yogananda School of AI, Computer, Associate Professor

and Data Sciences
Faculty of Management Sciences

Dr. Purnima Bali Dr. Vipin Pubby

Associate Professor Director and Professor

Chitrakoot School of Liberal Arts Director of School of Journalism and

New Media

Shoolini University Centre for Distance and Online Education

Shoolini University
Solan (HP)
Copyright © 2022 Shoolini University Centre of Online and Distance Education (SCODE)

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 CONTENTS

UNIT 1: PRINCIPLES OF MANAGEMENT ______________________ 1

UNIT 2: EVOLUTION OF MANAGEMENT THOUGHT ____________ 15

UNIT 3: PLANNING ______________________________________ 29

UNIT 4: FORECASTING ___________________________________ 38

UNIT 5: DECISION-MAKING _______________________________ 45

UNIT 6: MANAGEMENT BY OBJECTIVES _____________________ 53

UNIT 7: STYLES OF MANAGEMENT _________________________ 60

UNIT 8: ORGANISING ____________________________________ 68

UNIT 9: DIFFERENTIATION AND INTEGRATION _______________ 79

UNIT 10: SPAN OF MANAGEMENT _________________________ 89

UNIT 11: STAFFING AND COORDINATION ___________________ 99

UNIT 12: COORDINATION _______________________________ 109

UNIT 13: DIRECTING____________________________________ 119

UNIT 14: CONTROLLING _________________________________ 127

1 PRINCIPLES OF MANAGEMENT

UNIT 1: PRINCIPLES OF MANAGEMENT:

SCOPE, OBJECTIVES AND FUNCTIONS

CONTENTS

• Objectives
1.1 Introduction to Principles of Management
1.2 Defining Principles of Management
1.3 Nature of Principles of Management
1.4 Nature of Management
1.5 Scope of Management
1.6 Characteristics of Management
1.7 Skills and roles of a Manager
1.8 Summary
1.9 Review Questions
1.10 Further readings

OBJECTIVES:
After studying this unit, you will be able to:

● Define management
● State the nature, purpose and scope of management
● Identify roles and skills of a manager
● Explain the functions of a manager
● Discuss Henry Fayol’s Principles of Management
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1.1 INTRODUCTION TO PRINCIPLES OF MANAGEMENT

Management is an essential component of the organised activity that is person economic life,
which is a cooperative endeavour. In order for a company concern to function properly, a
centralised directing and controlling agency is required. The talent at organising, the capacity
to administer, and the adventurous initiative of the management are entrusted with the
responsibility of managing the productive resources, which include material, labour, and
capital, among other things.

Therefore, the management of a corporate firm is responsible for providing leadership. In the
absence of capable managers and strong management leadership, the resources of production
stay in the state of being resources and are never converted into output. Any commercial
enterprise's chances of thriving in today's cutthroat market and always shifting environment are
directly tied to the calibre of its management team and the

performance of its employees. The function of management in today's world is of such critical
significance that the fate of nations and the well-being of their populations are directly country
are extremely significantly impacted as a result of it.

1.2 DEFINING PRINCIPLES OF MANAGEMENT

According to the words of George R Terry, “Management is a distinct process consisting of

planning, organising, actuating and controlling performed to determine and accomplish the
objectives by the use of people and resources”.

According to James L Lundy,

“Management is principally the task of planning, co-ordinating,

motivating and controlling the efforts of others towards a specific objective”.

In the words of Henry Fayol,

“To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control”

1.3 NATURE OF PRINCIPLES OF MANAGEMENT

A study of the numerous definitions of management suggests that management possesses

specific qualities. The following are the most important qualities of management.
3 PRINCIPLES OF MANAGEMENT

1) The objective of management is to achieve prosperous economic outcomes

The major responsibility of a manager is to ensure effective performance via planning,

direction, and control. It is assumed that management will provide the desired outcomes. The
economic purpose of a manager is to maximise profit via the rational application of available
resources.

The only way a professional manager may demonstrate his administrative skills is by
conserving resources and increasing profit. According to Kimball, "management is the art of
implementing the economic concepts behind the control of people and resources in the
company at hand"

2) Management also necessitates expertise and experience in achieving results

via

Management entails accomplishing tasks through people. The economic role of generating a
profit cannot be accomplished without the cooperation and favourable response of "people."
The most important component of management is recruiting the right individuals to carry out
the activities.

According to Koontz and O'Donnell ,

"Management is the art of getting things done through officially organised groups of
individuals."

3) Management is a process, a function, or an activity

This procedure will continue until the administration's goals are realised.

"Management is a social process including the coordination of people and material resources via
the activities of planning, organising, staffing, leading, and regulating in order to achieve
predetermined goals."

4) Management is a general activity

It is not limited to corporate enterprises alone. It applies to political, social, religious, and
academic organisations as well. When collaborative effort is important, management is
required.
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5) Management is both a science and an art

Management is an art since there are distinct management concepts. It is also a science since
present goals may be attained by using these concepts.

6) Management is a profession

Management is progressively becoming a profession since established management concepts

are used in practise, it requires specialised training, and it is guided by an ethical code derived
from its societal duties.

7) Management is an effort

To achieve predetermined goals Management is concerned with guiding and supervising the
many operations of an organisation in order to achieve the predetermined goals.

Every managerial action has certain goals. Management is primarily concerned with the actual
direction of human actions.

8) Management is a collective activity

Management is only possible when there is a collaborative effort toward a shared goal. The
focus of management is always on collective rather than individual efforts. To achieve an
organization's objectives, management planned, organises, coordinates, directs, and monitors
collective effort.

9) Management is a system of authority

Where authority is the capacity to compel others to perform as predetermined.

Management formalises a standard set of rules and procedures for subordinates to follow and
monitors their compliance. Inasmuch as management is the process of guiding persons to
complete a task, the authority to extract work from others is implicit in the idea of management.

10) Management necessitates decision-making

Management necessitates decision-making about the organisation and functioning of the firm
in its many aspects. The success or failure of an organisation can be determined by the calibre
of its managers' judgments. Therefore, decisions are the key to a manager's performance.
5 PRINCIPLES OF MANAGEMENT

11) Management requires effective leadership

A manager must be able to influence subordinates to take the required action. Management is
the duty of executive leadership everywhere, according to R. C. Davis. Management of the
highest calibre requires the ability to affect the behaviour of subordinates.

12) Management principles are dynamic and not static

Management is not a static concept. It must adapt to the changing social climate.

13) Management borrows ideas and concepts from a variety of disciplines

It is an interdisciplinary field of study. It incorporates concepts and ideas from several

disciplines, including economics, statistics, mathematics, psychology, sociology,
anthropology, etc.

Is Management a Science or an Art?

Students usually wonder whether management is an art or a science. In this section, we shall
examine the distinctions between management as an art and management as a science.

Management is a science

● Due to the fact that it employs scientific methods in all facets of a problem.

● It employs a sequential control approach.

● It determines the link between cause and effect for two or more variables.

● It has universal applicability.

● It imparts the skill of executing things.

Management is an art

● Since it requires individualised knowledge and expertise in all facets of a given

circumstance.

● It depends on the common sense and comprehension of humans.

● It cannot determine the link between variable factors and their effects.
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● It cannot be applied generally.

● It imparts the skill of executing things.

The foregoing examples demonstrate that management is both an art and a science. Management
is an art since it requires the application of personal knowledge and abilities to the day-to-day
operations of a business in order to achieve the intended outcome. Management is referred to as a
science since it employs an organised body of information to reach a conclusion.

1.4 NATURE OF MANAGEMENT

Different individuals approach management differently, as we've demonstrated. Consequently,

defining the nature and scope of management becomes extremely difficult. Let's examine each
of these phrases separately and see how they function within the framework of management.

As a methodical procedure, management facilitates the identification of a group of individuals

responsible for certain tasks, hence enhancing an organization's efficacy and productivity. The
following characteristics illustrate the nature of business management.

1) Universality

Management is a crucial activity for all businesses, as it is universal. There is management

wherever there is human activity. Management concepts are valid regardless of the size or
location of an organisation. The universal principle also implies that management talents may
be gained and transferred throughout time.

2) Social Process

The essence of management is arranging and managing people in groups. It demands varying
degrees of empathy, comprehension, and vitality. In addition to ensuring employees' social and
emotional health, the process entails their development, motivation, and retention.

3) Purposeful

The ultimate objective of management is to realise the organization's objectives, mission, and
vision. The effectiveness of management may be gauged by the degree to which a company meets
its goals. The basic objective is to increase efficiency and production. The goals should be
reasonable, achievable, and time bound.
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4) Intangible

There is no tangible evidence of the management procedure. Its success is determined by the
results of its efforts. Lower turnover rates, for instance, reflect excellent employee engagement
and work satisfaction. This further demonstrates that managers or those in managerial positions
have taken aggressive measures to improve employee retention.

5) Coordination

Management organises all of an organization's activities by bringing together various teams

and divisions. Without coordination, uncertainty and disorder would prevail. Getting everyone
on the same page facilitates communication and reduces duplication of efforts.

6) Creativity

Management is comprised of separate elements and is a composite process. Every individual

component contributes in distinct ways. For instance, collective activities foster creativity and
inventiveness. The combination of individual efforts produces synergy and the birth of
something new.

7) Dynamic Function

Due to the fact that organisations are frequently impacted by economic, social, political, and
technical issues, management should be fundamentally dynamic.Individuals can function
effectively in difficult conditions if they have the ability to be adaptable and flexible. The
procedure should include proper training and facilitation.

1.5 SCOPE OF MANAGEMENT

Clearly defined responsibilities, concepts, theories and principles related to managerial

functions define the scope of management. Let’s look at the various aspects of this.

1) Financial Management

Every enterprise prioritizes financial management because finances can get extremely tricky if not
managed properly. Effective financial management ensures there are fair returns to stakeholders,
proper estimation of capital requirements and laying down optimal capital. It includes preparation
8 SHOOLINI UNIVERSITY

and examination of financial statements, creating proper dividend policies and negotiations with
external stakeholders.

2) Marketing Management

The scope of management in marketing extends to planning, organizing, directing and

controlling activities in the marketing department.

Identifying customer requirements is crucial for providing business solutions. When a manager
is fully aware of the benefits of the products and/or services the organization provides, they
achieve better results. Marketing management ensures that available resources are properly
utilized, and the best possible outcomes are achieved.

3) Personnel Management

Personnel management—as the name suggests—deals with personnel or individuals in a business

environment.

It includes the recruitment, transfer, termination, welfare and social security of employees. This
aspect of management is extremely important as employees form teams and teams drive an
organization’s goals. Individual productivity also contributes to overall efficiency. Without
attending to employee needs and wants, an organization is likely to struggle.

4) Production Management

This type of management refers to the process of creating utilities. When you convert raw materials
to finished products and oversee the planning and regulation, you’re engaging in production
management.

Without production, there isn’t any finished good or service and without it, organizations can’t
generate interest or profits.

The final product must fulfill customer requirements. The process includes quality control, research
and development, plan layout and simplification.

5) Office Management

This includes controlling and coordinating all office activities to achieve an organization’s
goals and targets.
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For example, an administration’s efficiency impacts a business significantly. The more

organized the departments and responsibilities are, the more effective an organization is.

1.6 CHARACTERISTICS OF MANAGEMENT

Management is not a group of individuals, but rather a group of functions

Management is neither a collection of people who manage the job or a high-ranking individual,
but rather a group of functions performed by these individuals. It involves planning, staffing,
directing, managing, reporting, observing, and communicating.

Administration is universal

The administration is ubiquitous. It is applicable everywhere. Any organisation may be referred to

as management, management at work, organisation, company, club, army, charity, religious
institution, or government agency.

A successful manager at a soap factory would also be successful at Soft Drink Company, for
instance.

Coordination is the essence of management

There should be cooperation amongst all of the organization's personnel. The organization's
diverse departments must cooperate with one another. If personnel are in dispute, the
organization's objective can still be realised.

Management is Dynamic

Management cannot be stagnant. It varies according on the circumstances. Management is

constantly oriented toward the future and realistic.

It changes as the environment changes. The administration transforms environmental threats into
possibilities. It varies as the business's goals, objectives, and difficulties evolve.

Management is fundamentally a leadership endeavour

Management is achieving results via people.

Manpower is activated by management. A manager acts as the group's leader and cultivates an
environment conducive to achieving organisational objectives.
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1.7 SKILLS AND ROLES OF A MANAGER

Who are Managers?

A Manager is the one responsible for planning and supervising the work of a group of
employees, monitoring their work, and implementing required corrections. This is the initial
stage in a managerial career for many people. Managers may directly supervise workers or
supervise several supervisors who supervise workers. They are responsible for analysing the
process, coordinating efforts, achieving objectives, and giving leadership. Consequently, a
manager must be conversant with the work of each group he or she supervises, but need not be
the greatest in any of the areas. It is more vital for a manager to know how to manage employees
than it is for him or her to be a skilled worker.

Fig 1. Role of managers

Managers at all levels of the management hierarchy must demonstrate technical, human, and
conceptual abilities. All managers are required to learn these talents in variable amounts;
however the relative value of each skill group varies between management levels.
11 PRINCIPLES OF MANAGEMENT

1) Technical skills

● Technical skills relate to the ability and understanding to utilise the equipment,
techniques, and procedures necessary to do particular jobs.
● These talents need specialised knowledge and mastery of the mechanics of a specific.
● The relative value of technical talents declines as one ascends the management
hierarchy, yet the majority of top executives began their careers as technical specialists.

2) Human Skills

● Human skills refer to a manager's capacity to collaborate well with others, both as
individuals and as members of a group.
● Human skills involve an understanding of people.
● These are necessary for gaining the cooperation of others and forming productive
work teams.

3) Conceptual Skills

● Conceptual abilities are the capacity to see the organisation as a whole and its
interrelationships.
● These abilities pertain to the capacity to see the whole picture or to evaluate a

situation in its entirety.

● These abilities aid managers in analysing the environment and recognising
opportunities.
● Conceptual skills are particularly critical for top-level managers, who must make
long-term plans for the organization's future direction.

Managerial Roles

Managers take different roles to satisfy the numerous requirements of their duties. A role is a
structured collection of behaviours. Henry Mintzberg has identified eleven functions that all
managers share.

The 10 roles fall into three categories:

A. Interpersonal
B. Informational
C. Decisional
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Depending on the level and function of management, the same manager can play multiple
managerial roles and fulfil their criteria at different times and to varying degrees. The 10 jobs are
explained separately, although they comprise a unified totality.

1) Interpersonal Roles
The interpersonal roles connect all management tasks. The primary focus of the three
interpersonal roles is interpersonal connections

Figurehead Role

In all formal proceedings, the manager represents the organisation as its representative.
Legally and socially, the chief executive officer represents the corporation to individuals
outside the organisation. The supervisor is the liaison between the work group and upper
management.

Liaison Role

The manager engages with peers and those outside the organisation. The top-level manager
uses the liaison function to get favours and information, whereas the supervisor utilises it
to maintain the flow of ordinary work.

The leader Role

The headman Relationships between the manager and employees are outlined.

2) Informational Functions

The informative roles guarantee the provision of information. The primary focus of the three
informative positions is the informational components of management job.

Monitor Role

The manager receives and compiles information on the enterprise's activity.

Disseminator Role

The manager disseminates unique information throughout the organisation. The manager
at the highest level gets and sends more information from outside the company than the
supervisor.
13 PRINCIPLES OF MANAGEMENT

Spokesperson Role

The manager disseminates information about the organisation to the external world. Thus,
the top-level manager is seen as an industry expert, but the supervisor is regarded as an
expert inside the unit or department.

3) Decisional Functions

The information is utilised extensively by the decisional roles, of which there are four:

A. Entrepreneur Role

The manager initiates change and new projects; identifies and assigns responsibility for
new ideas to others.

B. Disturbance Handler Role

The manager is responsible for managing dangers to the organisation. The manager takes
corrective action during disagreements or crises, resolves problems amongst subordinates,
and adapts to environmental catastrophes.

C. Resource Allocator Role

The manager determines who receives resources; sets the organization's schedule, budget,
and priorities; and selects where the organisation will apply its efforts.

D. Negotiator Role

Managers act as negotiators on behalf of their organisations. The manager at the highest
level takes choices about the organisation as a whole, whereas the supervisor makes
decisions regarding his or her specific work unit.

1.8 SUMMARY
● It is of the utmost significance to have a solid understanding of the systemic framework
in which an organisation functions. It is a highly helpful idea for gaining a knowledge of
the operations of a corporation since it identifies the essential sub-systems, as well as
their inter-linkages and inter-dependence on one another, for the purpose of achieving
common goals.
14 SHOOLINI UNIVERSITY

● Management is the most important component of functioning in a system, and its

engagement as an art, a science, and a profession is what makes it such an effective
position.

● Management holds such a crucial position in today's society that it has a significant impact
on not only the well-being of the population but also the path that the nation will take in
the future.

● In the realm of business, managers are responsible for very important tasks. They are
responsible for coordinating, motivating, and controlling the operations of personnel
while meeting the day-to-day problems. Typically, they do not actually execute any of the
workflow activities themselves. They put in excruciatingly long hours at the office, sift
through mountains of data, sit through endless meetings, interact with people at all levels of
the organisation, plan ahead, tackle issues head-on, and stay one step ahead of others by
making effective use of their knowledge, skills, and experience. All of this is done in order to
deliver results.

1.9 REVIEW QUESTIONS

1. “Management is the force which leads, guides and directs an organisation in the
accomplishment of pre-determined objectives”. Discuss and give suitable definition of
management.
2. Explain the features that determine the nature of management.
3. There are many definitions of management which emphasise one or the other important
aspect of management. Discuss and give various characteristics of management.
4. Is management a profession? Give arguments for your answer.

1.10 FURTHER READINGS:

Books:
Bright .D (2019), Principles of Management, Houston, Texas : OpenStax, Rice University.
Kumar, A & Sharma, R. (2000), Principles of Management, Atlantic Publishers & Dist, 2000.

Online link:
https://books.google.co.in/books/about/Principles_of_Management.html?id=ZE7zxQEACAA
J&redir_esc=y
15 PRINCIPLES OF MANAGEMENT

UNIT 2: EVOLUTION OF MANAGEMENT

THOUGHT

CONTENTS
• Objectives
2.1. Introduction
2.1. Scientific Management Approach
2.2. Management Process or Administrative Management Approach
2.4. Neo-classical Theory
2.5. Behavioural Science Approach
2.6. Contingency Approach
2.7. Summary
2.8. Keywords
2.9. Review Questions
2.10. Further Readings

OBJECTIVES:

You will be able to:

● Discuss the classical theory of management after completing this subject.

● Understand the foundations of scientific management
● Describe the systemic method
● Describe the contingency plan
16 SHOOLINI UNIVERSITY

2.1. INTRODUCTION
As early as the beginnings of human society, man began to live in groups. Some claim that
management was a sort of leadership that was necessary to organise the group's activities in
order to meet their basic needs. People were divided into categories according to their
intelligence, physical and mental qualities by powerful men in the past. Management was being
conducted in various forms according to Egyptian literature from 1300 B.C. The literature
clearly shows that the importance of administration and organisation in the bureaucratic
structure is recognised. In ancient China, there are reports of such events. He claims that
Confucius' tales are full with practical advice on how to run a government, as well as advice
on how to select honest, selfless, and capable public servants.

The Athenian commonwealth, with its councils, courts, administrators, and board of generals,
exemplifies Greek administration style. Additionally, the existence of Roman magistrates, with
their specific domains of jurisdiction and relative importance, implies a scalar connection in
Roman society. It is widely held that the Roman Empire's prosperity can be attributed to the
Romans' organisational prowess.

To increase output in factories and other organisations, the classical management philosophy
was developed during the Industrial Revolution.

Some firms may still benefit from this form of management, despite it being less widespread
in today's society. Classical management philosophy and its advantages and disadvantages in
the current workplace are the topics of this article.

The classical management philosophy is a management style that stresses hierarchy,

specialised positions, and single leadership in order to maximise workplace efficiency.

Following are the tenets of classical management theory:

● In order to find the most efficient technique to complete a task, scientific management
should be applied.

● Tasks are assigned to employees depending on their qualifications and areas of

expertise.

● The process of running a business should be made as simple as feasible.

● One or a few high-ranking officials make the final call.

17 PRINCIPLES OF MANAGEMENT

● The primary purpose is to increase productivity.

● Priority is devoted to maximising profits.

2.1. SCIENTIFIC MANAGEMENT APPROACH

The scientific theory of management focuses on the efficiency and productivity of each
individual. Principles of Scientific Management, by Fredrick Winslow Taylor (1890-1940), is
the primary source of this idea (1911). His objective was to bring scientific concepts to the
practise of business management. As a result of his sway, management science is sometimes
referred to as "Taylorism."

In order to understand Taylorism and Scientific Management Theory, we must first understand
what they are. Increased production within an organisation can be achieved by boosting
individual productivity, according to scientific theory. The optimum technique to accomplish
an organisational objective was conceived by Taylor.

Rather than studying more complicated or problem-solving activities, Taylor's research centred
on mundane, ordinary tasks. There was a lot of attention paid to each assignment. It would be
more effective to standardise these tasks. For example, the development of technology could
greatly automate these kinds of tasks. When it came to routine chores, Taylor used time
measures to find areas of efficiency and cut down on unnecessary effort. The equipment and
resources that he used to perform these mundane activities were also part of his focus.
Individual effort was boosted by tailoring equipment (or technology). To further encourage
efficient practise, Taylor developed a reward and punishment system. As a result of increased
production, employees who adopted more efficient methods were rewarded. It was necessary
to discipline any employees who were unable or unwilling to change.

The philosophy of Taylorism can be summarised thusly:

● Replace any existing practises or rules of thumb with the scientific method when
planning tasks.

● Make a distinction between the planning stage and the execution stage of a project.

● Ensure that the method, time, equipment, and costs are consistent throughout all of
your operations.
18 SHOOLINI UNIVERSITY

● Employees must be carefully vetted before being placed in a position for which they
are not yet prepared

● The allocation of effort across workers should be based on time, motion, and
exhaustion metrics.

● Make it easier for employees to carry out their duties.

● Functional supervisors, who are familiar with the specifics of their fields of
responsibility, are an absolute necessity in the workplace.

● Responsibilities should be specifically allocated between workers and managers.

● Incentives for increased production should be offered to employees as a reward.

Obviously, this system is built on the theory of comparative advantage. As part of a
larger process, individuals are prepared to execute certain duties. Greater
effectiveness is made possible by specialising.

What are the drawbacks of Scientific Management?

Assembly lines and other manufacturing facilities benefited greatly from Taylor's methods. In
businesses where knowledge and decision-making are at the heart of the value delivery process,
these ideas did not work as well. In the case of service-based enterprises, this is especially true.

In addition, Taylor's beliefs have been widely criticised for their effect on workers. Many
people thought it dehumanised people by treating them like beasts of burden. Employers got
higher rewards while workers received only modest pay raises as a result of this practise. In
contrast to the scientific approach, which concentrated solely on efficiency, the manager's
development as a leader was neglected. Naturally, these flaws in management philosophy led
to later advances.

Are there any notable figures in the field of scientific management theory?

SMT is credited to Frederic Taylor, who was its founder. The following are some of the most
influential scientists and managers:

● Mechanical engineer Henry L. Gantt (1861-1919) was known for his emphasis on
project effectiveness. He created a series of diagrams that are now widely used in
management. He made the connection between a manager's capacity to successfully
19 PRINCIPLES OF MANAGEMENT

teach staff to be more productive and their performance and benefits as a result of this.
He also held that enterprises have a social responsibility to improve the well-being of
the society in which they operate.
● A mathematician and an engineer named Carl G. Barth, who lived from 1860 until his
death in 1939. He was a proponent of the scientific process and a teacher of it. He is
most well-known for his work on industrialising the slide rule.
● Among Taylor's followers, Horace K. Hathaway (1878–1944) had the most notable
degree of success. Writing extensively on the adoption of scientific methods in various
parts of the organisation, he made a significant contribution to the scientific method
itself. There are many subjects covered in his work: obligations for executives and
managers, financial reporting, budgetary controls, comptroller tasks and internal
auditing.
● In addition to Taylor, Morris L. Cooke (18721960) was a practitioner of scientific
management theory. While working for the government and business sector, he put
these ideals into practise in areas such as residential electricity, labor-management
relations, and protection of natural resources. Industrial Management (1907) was a
major impact on Taylor.
● An academic and practitioner, Sanford E. Thompson (1867-1949) was a close
collaborator of Taylor's. With the aid of time studies and tool development, he sought
to improve productivity in particular. Co-author with Taylor of Concrete Costs (1912),
which emphasised the comparability of time units for manual labour tasks.
● Gilbreth, Frank B. (18681924). Early motion study research was done by F. Gilbreth.
He included his work into scientific management studies in order to focus on the
efficiency and uniformity of task performance in organisations, especially factories.
● Micro-motion studies were pioneered by Dr. Lillian Moller Gilbreth (1878-1972). By using
cameras to record micro-movements, Taylor's time studies were bolstered. Within the
company, L. Gilbreth also dedicated herself to studying people's psychology.
● I'm talking about Harrington Emerson here. Emerson worked as a consultant and efficiency
engineer. He uses a management strategy he calls Efficiency Management, which is a
variation on the scientific method. Despite the fact that he had never worked with Taylor,
his efficiency standards were very similar to Taylor's. Using the concept of a line and staff
structure, he brought in functional management components. In this concept, a single line
manager received advice from a staff. After then, this manager would be in charge of
directing the activities of direct reports. In addition, he devised a remuneration plan that
20 SHOOLINI UNIVERSITY

rewarded employees based on their level of productivity. Employee productivity is

rewarded based on whether or not tasks are completed more quickly or more slowly
than expected.

2.2. MANAGEMENT PROCESS OR ADMINISTRATIVE MANAGEMENT APPROACH

Henry Fayol (1841-1925) is widely credited with popularising the Administrative Theory of
Management through the 14 Principles of Management and Administration Industrielle et
Generale he published in the 1880s (1916). As a mining engineer in France, Fayol documented
his processes. Finally, he developed into a management theorist, and his contributions to
management theory are unquestionably the best of all time. "Process Theory," "Structural
Theory," and "Administrative Management Theory" are all derived from Fayol's work. Fayol's
work was distinct from Taylor's because it was a member of the classical theory movement.

Instead, Fayol concentrated on streamlining and streamlining work processes. He focused on

how a company's management and employees are organised to facilitate the execution of a
certain task.

It was suggested that work groups and functional departments should be established to carry
out certain tasks.

By participating in these activities, employees may help the organisation achieve its goals. In
order to improve organisational efficiency,

Fayol used a top-down method. In his opinion, a company's operational staff would be more
productive if management was more efficiently organised. The scientific management method
believed that better worker efficiency would lead to better managerial efficiency, in contrast to
administrative management theory.

Fayol's 14 Principles of Management are referred to as what?

Using Fayol's 14 management principles, the Administrative Management Approach can be

demonstrated and clarified in terms of the necessary organisational aspects.

It can be summarised as follows:

● Specialization is made possible by organisational divisions of labour. Individuals can

improve their output by mastering a restricted number of tasks.
21 PRINCIPLES OF MANAGEMENT

● Managers must have the right to issue orders, but with that authority comes the
obligation to guarantee that the task is done..

● You need a clear line of authority for discipline. In order for subordinates to follow the
orders of their superiors, they must do so completely. It is essential that managers have
the capacity to enforce rules and regulations through the use of physical or verbal
punishment.

● No more than one manager should be in charge of a worker's daily tasks there should
be unity of command.

● Workgroups and departments are all aligned on a single goal and are working toward
it. A single manager should oversee all of the employees' work called unity of direction.

● Group or Department or Company Interests Over Individual Interests - The interests

of individuals are subordinate to those of the group.

● Compensation is a tool used to motivate and reward employees for their efforts.
Financial and non-financial remuneration can be part of the pay package.

● Decision making can either be centralised (management makes all decisions) or

decentralised (workers can also make decisions) depending on the characteristics of the
company and worker competency.

● An organization's reporting structure should have a clear line of authority (or'scalar

chain') that positions employees below supervisors. Each level of the organisational
hierarchy has a greater degree of authority. It is imperative that everyone in the
organisation has a firm grasp of the chain of command.

● There must be a clear set of rules and standards in place for the workplace and the
roles and duties of each employee. Coordination is enhanced in a secure and orderly
atmosphere.
22 SHOOLINI UNIVERSITY

● The organisation must be run in accordance with the principles of justice in order
to succeed. Kindness and fairness should go hand in hand when dealing with
employees.

● Organizations need a low turnover rate. This gives employees the opportunity to
learn their tasks, enhance their talents, and build loyalty.

● In order to cultivate a culture of initiative, managers must empower employees to

devise and implement their own initiatives.

● In order to generate a sense of belonging and morale, it is important to establish a

sense of belonging within the organisation.

● Recall that the goal of Fayol's principles was to help managers better organise and
communicate with their staff.

2.3. BUREAUCRACY

Max Weber, a German sociologist and author of the book The Protestant Ethic and the Spirit
of Capitalism (1905), was the first person to use the term bureaucracy and provide a description
of it. He did this during the end of the 19th century. This concept is also known as the
bureaucratic management theory, the Max Weber theory, and the bureaucratic theory of
management.

He was of the opinion that the most effective method for establishing an organisation,
administration, or organisations was to use bureaucracy.

Max Weber held the belief that bureaucracy was superior to conventional forms of
organisational structure.

The employees of a bureaucratic organisation are all given the same amount of responsibility,
and the division of labour is explained in detail for each worker.

A definition of bureaucracy: what exactly is bureaucracy?

The term "bureaucracy" refers to a structure of an organisation that is characterised by many

rules, standardised processes, procedures and requirements, a number of desks, meticulous
23 PRINCIPLES OF MANAGEMENT

division of labour and responsibility, clear hierarchies, and professional interactions that are
almost impersonal between employees.

2.4. NEO-CLASSICAL THEORY

Neoclassical can be broken down into its component pieces, which are referred to as neo and
classical, as the name of the style suggests. Neo refers to something that is new, while classical is
a term that describes the work that was completed by a group of economists in the 18th and 19th
centuries.

The classical theory of management placed an emphasis on the tasks themselves as well as the
material resources available.

Traditional management theorists tended to view humans as little more than an attachment to a
machine. On the other hand, some people have the opinion that this viewpoint does not show
enough sympathy for people. Emotional beings are being treated as if they belong in the same
category as machines by the organisations that are working on this idea.

In order to overcome the limitations of classical organisational theory, several theorists

proposed the application of behavioural sciences to management through the lens of
neoclassical organisational theory. The following are the essential characteristics of the
neoclassical management approach:

● The organisational structure of a company is a social system.The most important

component of this social structure is the people who make up the system.

● When it comes to deciding both productivity and employee satisfaction, social and
psychological aspects play an extremely important role.

● In addition to developing their technical expertise, management should also work on

cultivating their social and leadership qualities. They need to give more consideration
to the well-being of their employees.

● The morale of an organization's workforce has a direct bearing on that workforce's level
of productivity.
Some of the most well-known proponents of the neoclassical school of thought include Elton
Mayo, Chester Barnard, and Herbert Simon. They are to be credited with pioneering the
neoclassical methodology and conducting the initial experiments with it. So, can you explain
24 SHOOLINI UNIVERSITY

the neoclassical method to me? Their investigations demonstrate that individuals can be
motivated by a wide variety of different stimuli in order to fulfil particular goals.

Here’s how three theorists worked on the new classical theory of management:

A. THOMAS JOHNSON

In 1927, Western Electric invited a team of researchers led by Elton Mayo to work at their
Hawthorne plant in Chicago. The 'Hawthorne Experiment,' as it was known at the time, was
conducted by researchers at the factory.

The experiment's goal was to see if changing levels of lighting in the workplace would increase
productivity among the workers. Lighting settings improved production in the first three years
of this experiment, according to the findings. They asserted that the company's concern for its
employees' well-being boosted morale among the workforce.

It demonstrates the significance of employing a neoclassical management strategy. In addition,

the camaraderie among the workers boosted morale and productivity.

According to Mayo and his team's findings, managers should also pay attention to social
elements like interpersonal interactions among their employees.

They wouldn't be able to function at their best if they had to deal with opposition and decreased
productivity. To be sure, Elton Mayo's conclusions are not without their sceptics.

B. BARNARD CHRIS

In 1938, Chester Barnard published 'The Functions of the Executive,' which would go on to become
a classic. Various management theories were able to grow from the book's foundation.

Chester lays out a thorough theory of formal organisation behaviour centred on cooperation in
his book. Executives, he says, must promote a sense of mission, moral values, and ethical
aspirations, as well as formal and informal channels of communication.

Chester believes that people should work together. There is absolutely no room for any kind of
dispute between employees.

Organizational conflict is forbidden in both classical and neoclassical theories of business.

25 PRINCIPLES OF MANAGEMENT

C. THE HERBERT SIMON FUND

Classical organisational theories were proven to be inapplicable by Herbert Simon to a variety

of administrative circumstances faced by managers.

They didn't work out for Herbert when he applied classical theory to present events. Fayol's
work in management was likewise disproved by him, demonstrating them to be merely
administration proverbs rather than principles.

2.5. BEHAVIOURAL SCIENCE APPROACH

Behavioural science is a way of understanding and predicting human behaviour that
incorporates knowledge from psychology, sociology, and anthropology. Human behaviour in
organisations is the topic of this study, which aims to promote scientifically provable
statements about human behaviour in organisations. Motivation, leadership, group dynamics,
and participatory management are all examined in depth in this course.

The following are some of the most important aspects of a behavioural science approach:

● Data must be acquired and examined in an objective manner.

● It is imperative that the findings are presented in such a way that the distinction
between causation and causation is made evident.

● Facts must be linked to one another in a logical manner. The mere act of gathering
data does not make something a science.

● The results of a study should always be subject to re-examination and challenge.

Behavioural science is distinguished by the methods used to conduct research in the

management profession. An important part of the technique is the collecting of pertinent data and
its subsequent processing and analysis.

This technique is distinct from the human relations approach in this regard. In addition, the
psychologists came up with the following propositions:

● First, an organisation is a social-technical system.

● There is a wide range of differences between people's attitudes, perceptions, and

values systems. Consequently,
26 SHOOLINI UNIVERSITY

● Depending on the situation, they respond differently to various stimuli.

● It is possible that the aims of the organisation are not aligned with those of the
employees. Organizational goals and human needs should be fused in some way.

● People's inter-personal and group behaviour in organisations is influenced by a wide

range of circumstances.

Maslow's work has been greatly influenced by the behaviour school. He made a significant
contribution by creating a hierarchy of human needs to explain human behaviour and the dynamics
of the motivating process. To explain his theories X and Y, Douglas McGregor used Maslow's
work. The two-factor theory of motivation was created by Frederick Herzberg. When it comes to
preventing or preventing unhappiness in the workplace, he created a distinction between hygiene
issues and those that genuinely lead to a sense of drive (motivational factors).

Managerial Grid' was established by Robert Blak and Jane Mouton in the domain of leadership and
is widely used today. In his lengthy research, Rensis Likert has discovered four distinct
management systems, ranging from System 1 (exploitative-authoritative) to System 4 (group
participatory). Communication, motivation, leadership, and other factors are used by each system
to characterise an organization's environment. To sum up, the behavioural sciences

method places a high priority on motivating and leading people to achieve their goals. Among
the most important components of human behaviour are motivation, leadership,
communication, participation, and group dynamics. For managers, behavioural sciences have
provided a systematic knowledge of the most important factor in management: people. As a
result of this newfound knowledge, designers have been able to create workplaces where
employees are more likely to be productive. It has made it easier for companies to design
training programmes that are more effective for workers and managers, and it offers a wide
range of additional practical benefits.

2.6. CONTINGENCY APPROACH

The contingency approach is a management theory that suggests the most effective management
style is dependent on the context of the situation, and that adopting a single, rigid management
style is inefficient in the long term. The contingency approach was developed by Peter Senge and
is named after the contingency model. In general, those in charge of contingency planning pay
attention to both the circumstances at hand and their own management styles, and they work hard
to guarantee that the two can work together effectively.
27 PRINCIPLES OF MANAGEMENT

The trait-based management strategy, on the other hand, stands in contrast to the contingency
approach. In the trait-based management approach, a person's personality and individual make-
up are used to forecast patterns of management and responses to certain circumstances over
time. Another method of management is the style-based application.

The ability to draw lessons from particular instances and apply those learnings to the conduct
of management in subsequent instances of the same or related circumstances is one of the
primary reasons why organisations find value in the study of contingency theory. The capacity
to adjust one's behaviour in response to pressures and shifts imposed by the outside is another
valuable skill. The application of contingency theory may also result in more rounded and
capable leaders who are able to improve their abilities in a variety of domains.

2.7. SUMMARY
● For a thorough understanding of management, a degree in Organization and
Management is a need. Management's role in organisations has been the subject of
numerous theoretical formulations from a variety of schools of thought.

● It is one of the most important approaches to the study of management and organisation.

● In analysing organisational and management approaches, the classical, human

relations, and systems trinity is frequently utilised.

● It was the classical writers who placed emphasis on the organization's purpose and
structure, as well as its technical requirements and the principles of management.

● Writers in the field of human relations underlined the relevance of the informal
organisation and the psychological and social needs of employees. It is the goal of the
systems approach to bring together the work of classical and human relations writers.

2.8. KEYWORDS
● Administrative Management: Policy making.

● Behavioral science approach: uses social science tools and techniques to focus on
motivation, individual drives, group relations, leadership, group dynamics, etc.

● Bureaucracy: is a rational organisation characterised by division of labour,

specialisation, structure, impersonal relations, competent employees, etc.
28 SHOOLINI UNIVERSITY

● Classical theory: focuses on organisation structure and management principles to

attain organisational goals.

● The contingency theory: analyses how organisations interact with their external
environment and adopts a structure to match the situation's needs.

● The neo-classical: writers created a new view of man and the workplace.

2.9. REVIEW QUESTIONS

2.1. List Management Schools Occasional thought.
2.2. Write about management's progress. Recent management trends?
2.3. Describe the growth of management theory from pioneers to today.
2.4. Explain Henri Fayol's impact on current management.
2.5. Explain Scientific Management's research of management.
2.6. Fayol founded modern management theory." Discuss.
2.7. Compare Taylor and Fayol's management theories.

2.10. FURTHER READINGS

Books:

J. Stoner, Management, Prentice-Hall of India, New Delhi, 1990

Online link:

http://bizcovering.com/management/the-concepts-of-classical-management-theories/
29 PRINCIPLES OF MANAGEMENT

UNIT 3: PLANNING

CONTENTS
• Objectives
3.1. Introduction
3.2. Planning : an introduction
3.3. Types of Plans
3.4. Steps in the Planning Process
3.5. Characteristics of Planning
3.6. Strategic Management
3.7. Summary
3.8. Keywords
3.9. Review Questions
3.10. Further reading

OBJECTIVES
When you have finished this course, you should be able to:

● Recognize the many plans

● What is it like to plan a project?
● Describe some of the hallmarks of effective preparation
● Describe the conventional method of setting goals
● A discussion of strategic management is required
30 SHOOLINI UNIVERSITY

3.1. INTRODUCTION
Business organisations have to function, thrive and flourish in a highly dynamic economy in which
change is the norm, not the exception. Both rapid and gradual changes might take place at the same
time. Changes in technology, population and economic distribution, consumer tastes, market
dynamics, and government regulations are only a few examples of major drivers of change. These
modifications might lead to a plethora of issues and obstacles. As a result, managers are often left
with little choice but to adapt their operations in order to make the most of favourable
developments or to minimise the negative consequences of unfavourable ones. Managers who
succeed do their best to anticipate problems before they become crises. While effective
managers cope with pre-existing issues, unsuccessful ones are plagued by unexpected ones, as
Terry points out. Planning makes all the difference.

Managers that are responsible for attaining specific goals do not wait for the future. They're
the ones who shape the future. Remove current obstacles, anticipate future problems, adjust the
goals to suit internal and external changes, experiment with creative ideas, take the initiative
in an effort to mould the future and build a better environment.

3.2. PLANNING : AN INTRODUCTION

The ability to plan ahead gives managers more control over what happens in the future rather
than letting themselves get carried along by it. Because of the increased potential for danger
and unpredictability, having a strategy is even more essential in an environment that is
constantly shifting and evolving. In conditions like this, it is possible to make arrangements for
contingencies.

One way to define a plan is as a precise course of action devised today in order to carry out
some activity tomorrow. Therefore, planning is an intellectual attempt made by a management
to anticipate the future for the purpose of improving the performance of the organisation.
Planning is a primary management job that every organisation, regardless of its size, nature, or
origin, is required to carry out at some point in their existence.

As per Koontz and O’Donnell –

“Planning is deciding in advance what to do, when to do, how to do and who is to do it. It is
bridging the gap from where we are to where we want to go.”

According to Alford and Beatt –

31 PRINCIPLES OF MANAGEMENT

“Planning is the thinking process, the organised foresight, the vision based on fact and
experience that is required for intelligent action.”

As said by Louis A. Allen –

“Management planning involves the development of forecasts, objectives, policies,

programmes, procedures, schedules and budgets.”

3.3. TYPES OF PLANS

Plans can be divided into various categories based on their importance, length of planning,
level, formality, and method of execution.

1. Based on Importance

An important factor in determining the type of plan is its scope. Strategic plans serve as a
central axis for achieving the organization's vision. Most of the time, they affect the entire
company. In order to put strategic plans into action, tactical strategies are required. Many retail
chains have had to close or reorganise their store layouts due to poor sales.

Operational plans focus on day-to-day activities, such as production, distribution, or

purchasing. As an example of operational strategies, Precision Connectors has a plan to deliver
connectors to a two-wheeler manufacturer.

2. Based on Time

Plans might be short-term, medium-term, or long-term in nature. A year or less is considered

short term; a year or more is considered medium term; and a year or more is long term. It all
depends on the project's nature. There may be a short-term plan for 50 kilometres of Metro in
Mumbai or Bangalore in five years; a medium-range plan for 200 kilometres in 10-12 years;
and a long term plan for 300 or 400 kilometres of rail in 20 to 30 years for some projects.

3. Based on Level

A plan can be categorised as either a corporate, business, or functional level. To illustrate the
difference between a corporate-level and business-level strategy, let's look at how Tata entered
the airline market and how Precision Connectors became an OEM. Functional plans are
developed at the departmental level, such as a strategy for the marketing department to meet
its objectives.
32 SHOOLINI UNIVERSITY

4. Based on Formality

A plan can be formal or informal, depending on whether or not it is written down or not.
Documentation should be exceedingly strict in order to be considered formal; otherwise, it's
considered informal.

5. Based on Approach:

When a plan is designed to respond to an anticipated event, it is referred to be a "proactive" plan.

For example, a three-year pay negotiation compensation plan is a proactive plan to ensure industrial
harmony.

In the event of a flash strike, the same compensation scheme would be used as a reactionary
measure. The former leads to growth, while the latter aids in regaining equilibrium and
ensuring long-term survival.

3.4. STEPS IN THE PLANNING PROCESS

1. Determine your strategic position
This preparation phase establishes the framework for any activities moving forward. You need
to know where you are to determine where you need to go and how you will get there.

Involve the proper stakeholders from the start, considering both internal and external sources.
Identify significant strategic concerns by chatting with executives at your organisation, pulling
in customer insights, and collecting industry and market data. This will provide you a clear
view of your position in the market and customer insight. It can also be beneficial to review—
or write if you don’t have them already—your company’s goal and vision statements to offer
yourself and your team a clear idea of what success looks like for your firm. In addition,
analyse your firm’s basic principles to remind yourself about how your organisation expects to
attain these objectives.

To get started, examine industry and market data, including customer insights and
current/future expectations, to identify the issues that need to be solved. Document your firm's
internal strengths and weaknesses, together with external opportunities (ways your
organisation can grow in order to address requirements that the market does not currently fill)
and threats (your competition) (your competition). As a foundation for your initial analysis,
use a SWOT diagram. With input from executives, customers, and external market data, you
33 PRINCIPLES OF MANAGEMENT

may swiftly categorize your results as Strengths, Weaknesses, Opportunities, and Threats
(SWOT) to clarify your current position.

Fig 3. 1. SWOT Analysis

2. Organize your goals into a prioritised list

The next step is to identify the objectives that will help you achieve your goals after you know
where you currently stand in the market. In order to achieve your goals, they must be consistent
with your company's mission and vision.

3. Create a strategy

Now is the time to put together a strategy for achieving your goals. This step necessitates
identifying the strategies required to achieve your goals, as well as establishing a timeframe
and outlining who is responsible for what. Using strategy mapping is a great way to get a clear
picture of your goals. Strategy maps, which show business processes from the top down, make
it easy to see where gaps exist and where improvements may be made.

4. Execute and oversee the implementation of the strategy

It's time to put your strategy into action. Communication with the organisation should begin
by distributing essential documents. Then comes the hard part: doing the real work. By
mapping your processes, you can turn your strategy into an actual plan. Use KPI dashboards
34 SHOOLINI UNIVERSITY

to effectively define the roles and responsibilities of your team. To show the process of
completion and ownership of each step, this granular technique depicts everything in detail.

5. Re-examine and rework the strategy

Review and revision, the plan's final stage, allows you to reassess your priorities and make
course corrections based on previous successes and failures.

3.5. CHARACTERISTICS OF PLANNING

● Planning aids in accomplishing the goal. We can't even imagine attaining any goal
without a strategy in place.

● One of the most important aspects of management is the ability to effectively plan
ahead in order to meet established goals. When it comes to accomplishing anything,
the first step that every management or employee can take is to make a plan.

● Everywhere you go, you'll individual employee plans on midsized, or massive it

issee extensive forethought. Every manager and any their level in every organisation,
no matter how little,

● Planning is Future-Oriented - We think about the future when we make plans. As a

result, the procedure is referred to as futuristic. We're always thinking about the future
and living in the now. In the past, no planning was ever done.

● Any objective can be achieved if we plan for it. For a specified period of time,
planning is done. An entire year, three-fourths of a year, or just a month. New plans are
needed at the end of each time period. In this way, it's known as a perpetual process.
The business cycle influences the continuity of planning. After the first plan is put into
action, the next one is put into action, and so on.

● Decision-making is a part of planning. When it comes to planning, function

managers look at many options and choose the best one.

● Assumptions and forecasts about the future are made by scanning the environment
thoroughly in planning. Intelligence is required for this task.
35 PRINCIPLES OF MANAGEMENT

3.6. STRATEGIC MANAGEMENT

The word "strategy" comes from the Greek word "strategos," which literally translates to
"generalship." Generalship refers to the actual direction of military force, as opposed to the
doctrine that governs the deployment of that force. Stratos is the name of the Army, and ago is
the Greek word for to lead.

The profession of strategy and planning was first developed in the military, but its influence
has since spread to other realms, including business and management. The study of warfare is
where the concept of strategy originated. It refers to the expertise of a general in commanding
an army. It is considered an art of war to move and deploy an army in such a way as to impose
upon the enemy the terms and conditions regarding the time and place of fighting a war. This
requires the ability to move and deploy the army in such a way as to force the enemy to fight
on the opponent's chosen terms and conditions. It is a strategy for commanding the military
operation during the war. When it comes to corporate planning, strategy is the "Grand Design"
or an overarching plan that a company picks in order to move or react towards the stated
objectives using the available resources that they have at their disposal. The overall plan of
what to do is known as the strategy.

According to Anthony's definition, strategy is "the changes that result from the process of
deciding on the objectives of the organisation, on changes in objective, on the resources used
to attain these objectives, on policies that are to govern the acquisition, use, and disposition of
these resources."

1) Awareness of both the mission and the objectives is included in the strategy. It provides
the primary concept for planning, showing what our firm is about, who our customers
are, as well as what items and services we are to supply.
2) It also reflects economic, social, technological, and political factors, all of which are
components of the business environment and are indicated by the phrase.
3) The requirement to take into consideration the possibility that others, particularly
competitors, will be afraid of you. The deployment of emphasis and resources is
implied by a strategy, which also demonstrates a cohesive direction. It accomplishes
the useful aim of directing the ideas and actions of the enterprise. After that, the
strategies are incorporated into the primary and secondary supporting structures of the
organisation.
36 SHOOLINI UNIVERSITY

3.7. SUMMARY
● The ability to adapt and thrive in a rapidly changing environment requires careful
planning. Plan helps a company position itself in the market in a way that maximises
its internal resources.

● In order to be effective, planning must be done in a systematic manner, identifying

goals, developing premises, analysing possibilities, formulating derivative plans,
getting commitment from people, and ensuring an appropriate follow-up is ensured.

● A company's success can be attributed to good planning. It lowers the chances of

making a bad judgement and increases the accuracy of the decisions that are made as a
result. It has a positive effect on people as well.

● To be successful, plans must have the backing of all levels of the organisation. When
it comes to planning ahead, they should also realise that there are rewards to be had.

● In the real world, there are many different ways to plan. In order to achieve success, a
well-balanced mix of long- and short-term strategies is required. Effective monitoring
is also required to determine whether or not everything is on track.

● Setting goals for important aspects of a company's operation is a must in any industry
or business.

● If they are to be effective, activities should take place in an environment of mutual

trust and confidence.

● In order to effectively implement the strategy, strategic management strategies must

be used.

3.8. KEYWORDS
Marketing strategies: new product development strategies, human resource strategies,
financial strategies, legal strategies, supply chain strategies, and information technology
management strategies are all examples of functional strategies. The focus is on short- and
medium-term goals, and each department's functional responsibilities are strictly enforced.

Planning: Defining a course of action and putting together a plan of action

37 PRINCIPLES OF MANAGEMENT

Strategic business unit: Semi-autonomous business unit in charge of its own budgeting and
decision-making about new products, recruiting, and pricing. Corporate headquarters views an
SBU as an internal profit centre

Strategy: A strategy is a well-thought-out, step-by-step action plan.

3.9. REVIEW QUESTIONS

1) The future is ever-changing. Predicting and preparing for developments in the future
may be impossible. Discuss.
2) Describe the key elements of a successful project plan that you produced.
3) What kind of plan should an organisation prepare first, tactical or operational? Why?
4) 'Planning and forecasting are interwoven', says the author. Comment.
5) As a rule of thumb, organisations can't do what they set out to do. Why?

3.10. FURTHER READING

Books:

Harold Koontz and Cyril O’Donnel, Essentials of Management, Tata McGraw Hill, 2000

Online link:

https://www.economicsdiscussion.net/management/planning-management/planning-
introduction/32333
38 SHOOLINI UNIVERSITY

UNIT 4: FORECASTING

CONTENTS

• Objectives
4.1. Introduction
4.2. Forecasting
4.3. Essential Components in Business Forecasting
4.4. Factors That Influence Commercial Predictions
4.5. Benefits of Forecasting
4.6. Limitations of Forecasting
4.7. Techniques of Forecasting
4.8. Combining Forecasts
4.9. Difficulties in Forecasting Technology
4.10. Summary
4.11. Keywords
4.12. Review Questions
4.13. Further Readings

OBJECTIVES
● You will be able to: Identify the relevance and meaning of forecasting
● Dissect methods for predicting business outcomes.
● List the benefits and drawbacks of using business forecasting software
39 PRINCIPLES OF MANAGEMENT

4.1. INTRODUCTION
The process of making educated guesses in the face of ambiguity is known as forecasting.
Businesses use business forecasting to look into the future in order to find dangers and opportunities
and to successfully accomplish their goals through the creation and implementation of action plans
that have been carefully thought out. Economic, political, and market information can be analysed
to lessen the risks associated with corporate decisions and long-term plans through the use of
business forecasting. By focusing on the future, forecasts encourage foresight and give
direction to strategy. Business forecasting necessitates a forward-looking mindset.

4.2. FORECASTING

Forecasting is a multifaceted process that includes the use of simple electronic spreadsheets,
ERP and EDI networks, complicated supply chain management systems, and other Web-
enabled technology to make predictions.

4.3. ESSENTIAL COMPONENTS IN BUSINESS FORECASTING

Notes on Business Forecasting Essentials When it comes to making business forecasts,

Redfield identifies the following critical elements:

laying the foundation: The known and available information regarding the growth of the firm,
the industry in which the company is positioned, the growth of the product lines of the
company, etc., is subjected to investigation in the first stage. To begin with, the goal is to lay
the groundwork for future forecasts.

Predicting the future: Against the backdrop of the facts obtained, an estimate of future
prospects of business is formed by management. Management uses a step-by-step process to
forecast future trends based on a thorough examination of all relevant data. Rather than being
accepted as gospel truth, these possible tendencies might be viewed as educated predictions
for now.

This stage includes a periodic comparison of the actual outcomes with the expected
results in order to guard against the consequences of incorrect forecasting. The prediction
serves as a measuring device and helps to identify the root causes of unexpected gains and
losses.
40 SHOOLINI UNIVERSITY

Refining the forecast process: The preceding three-step method helps executives in obtaining
proficiency in creating accurate forecasts. As time goes on, the forecasting methods can be
improved, sharpened, and adapted to meet the ever-changing demands of business.

4.4. FACTORS THAT INFLUENCE COMMERCIAL PREDICTIONS

● Stability in politics

● Changes in the population;

● Average prices;

● Controls and spending patterns instituted by the government

● Employment, overall productivity, and gross domestic product

● The environment of technology - certain fields, such as computers, have undergone

significant change, and the impact of the rapid pace of technological advancement must
be taken into special consideration.

4.5. BENEFITS OF FORECASTING

The following can be considered to be some of the benefits of using a business forecasting
model:

Because forecasts are the premises or fundamental assumptions upon which the management
bases his or her planning and decision-making, business forecasting provides essential facts
and information that is crucial to successful planning.

It assists in bringing a singleness of purpose to the planning process, which is something that
cannot easily exist if it is not present.

It raises the bar for the standard of administrative planning.

Forecasting reduces the cost of planning mistakes.

Though imprecise, effective forecasting aids in identifying and responding to environmental

pressures. In the absence of business forecasting, both individuals and organisations are at the
mercy of future occurrences.
41 PRINCIPLES OF MANAGEMENT

Preparing for future crises and emergencies is also aided by forecasting.

The organisation can protect itself from many of these unanticipated developments by using
proper planning steps. To protect against economic cycles, shock absorbers may be impossible
to develop but at least their influence may be analysed and their unfavourable repercussions
can be reduced.

It provides critical information about the organization's weak places, paving the way for proper
oversight. Managers can easily construct checkpoints for effective management and excellent
planning after spotting such places.

4.6. LIMITATIONS OF FORECASTING

Forecasts are merely guesses as to what the future will bring, not indications of where we
currently are. Uncertainty hangs over the future. Because of this, even the best-laid plans can
end in losses, while the worst-laid plans can bring in riches. As long as there is a degree of
uncertainty, forecasting will be limited in its usefulness.

The following are some of the forecasting's drawbacks:

1) Existing data's trustworthiness. While past events are used as a reference for the
future, there is a question as to the accuracy of these recorded happenings.
2) For accurate forecasting, data interpretation, and method selection and application,
accurate judgement is required.
3) In order to accurately assess the possibility of an event occurring, a probability must
be assigned to each number in a forecast.
4) It's rare for a forecast to be accurate, and it's even rarer for it to be accurate for the
wrong reasons. It is dangerous to predict what will happen in the future, because
forecasting is meaningless in extremely dynamic and tumultuous corporate situations.
5) Predictions and assumptions are a major part of forecasting. It is impossible to
eliminate the potential of making a mistake even if you make a flawless guess.

4.7. TECHNIQUES OF FORECASTING

Forecasting approaches have been categorised in a variety of ways by various academics. The
following categorization is a revision of Gordon's original classification, which was produced
over two decades ago:
42 SHOOLINI UNIVERSITY

Forecasting genius: is built on a mix of instinctive knowledge and good fortune. Predictions
made by psychics and crystal ball readers are the most extreme. Their predictions are based
solely on hunches. Speculative fiction writers have a knack for accurately predicting the
emergence of new technologies.

Trend extrapolation: This strategy uses mathematical tools to extrapolate the future trends
and cycles in previous data. All of these methods are predicated on the premise that the factors
that shaped the past will continue to do so in the future. Short-term projections generally make
use of this assumption, whereas medium- and long-term forecasts do not. As we try to foresee
further in advance, our confidence in the outcome diminishes.

Consensus methods: Forecasting complicated systems sometimes necessitates the collection of

multiple experts' perspectives. They are all experts in their own fields, and it is only by combining
their knowledge that a conclusive prognosis can be reached.

Simulation methods: These analogues come in a variety of shapes and sizes. When it comes
to modelling aeroplane performance, a wind tunnel could be an analogy. a mathematical
analogy would be a formula for predicting some economic metric. Human population
expansion could be compared to the growth of a bacterial colony as a metaphor. The player's
activities in a game are utilised as a metaphor for their behaviour in real life.

Cross-impact matrix method: Univariate forecasting tools typically fail to uncover

relationships between events and developments.

By using a cross-impact matrix, we can see how the occurrence of one event affects the probability
that another will occur.

Scenario: The scenario is a narrative forecast that presents a possible course of action. As with
the cross-impact matrix method, it takes into account how various system components are
interconnected to one another The system as a whole and the other components are described
in the scenario. Rather, it is a "script" for laying out the details of an uncertain future.

4.8. COMBINING FORECASTS

It is evident that no forecasting method can be used in every case. Combining forecasts from
multiple sources improves forecasting accuracy, according to extensive research. Adding
quantitative forecasts to qualitative forecasts appears to impair accuracy, as evidenced by the
43 PRINCIPLES OF MANAGEMENT

evidence. The best conditions and procedures for combining forecasts have yet to be discovered
through research.

4.9. DIFFICULTIES IN FORECASTING TECHNOLOGY

● A lack of nerve is how Clarke explains our inability to accurately predict technological
developments in the future. It takes conviction and fortitude to accept the ramifications
of a great technological advance when it does occur. Although the truth is right in front
of us, it is difficult for us to embrace its implications.

● There may be more to this reluctance to adapt than Clark realises. Psychology's
cognitive dissonance theory has allowed us to better understand why people are so
resistant to change. When it comes to forecasting new technology, it is incredibly
difficult to go beyond our accepted boundaries.

● Imagination can get stymied by knowledge, according to Clarke. As stated in his own self-
proclaimed law, "I believe in the power of love." "When a well-respected but elderly
scientist says something is conceivable, it is usually always correct. If somebody says
something is impossible, he's almost certainly mistaken in his assertion."

● For the most part, futurists see the past as a collection of unalterable truths that cannot
be changed. In our minds, there can be only one past. When two people tell different
tales about the same event, we tend to assume that one of them is telling the truth and
the other is making something up.

4.10. SUMMARY

● The development of a business forecast offers management with strategic and

operational information, which ultimately leads to improvements in the performance of
the business.

● It serves as the foundation of budgeting and supplies managers with the knowledge
that enables them to manage.

4.11. KEYWORDS

Econometrics: The field of study known as econometrics is a combination of a number of

different academic subfields, including mathematical economics, statistics, economic theory,
44 SHOOLINI UNIVERSITY

and economic statistics. The purpose of econometrics is twofold: first, it is to provide economic
theory with actual data, and second, it is to empirically validate economic theory.

Forecasting: Forecasting is the practise of making estimates in situations when the exact
details are uncertain.

4.12. REVIEW QUESTIONS

1) After going through the previous course, what do you believe the primary distinction
between forecasting and budgeting is when it comes to expense accounts.
2) What are some potential advantages of adopting the Delphi technique to make
projections about new Notes products, as well as some potential disadvantages?
3) "A sales prediction is frequently considered to be both a plan and a premise at the
same time." Comment.

4.13. FURTHER READINGS

Books:

• Lapide, Larry. "New Developments in Business Forecasting: The Internet Does

• Not Eliminate the Need to Forecast." Journal of Business Forecasting Methods
&Systems, Fall 2000.

Online link:

www.ecommerce.hostip.info
45 PRINCIPLES OF MANAGEMENT

UNIT 5: DECISION-MAKING

CONTENTS

• Objectives
5.1. Introduction
5.2. Components of Decision-making
5.3. Decision-making Process
5.4. Simon’s Model of Decision-making
5.5. Group Decision-making
5.6. Summary
5.7. Keywords
5.8. Review Questions
5.9. Further Readings

OBJECTIVES
After completing the material in this section, you will be able to:

● Explain what decision-making means and why it's so important.

● Discuss the steps involved in making decisions.
● Describe the many decision-making models.
46 SHOOLINI UNIVERSITY

5.1. INTRODUCTION
Organizations are governed by the decisions of its members. In other words, they have to make
a decision from a variety of options. Almost typically, the term "decision-making" refers to the
process of making a choice among several options. Managers spend a lot of time making
decisions. Managers encounter a wide range of decisions, from the ordinary and easy to the
novel and complex, which necessitate fresh approaches and creative problem solving (non-
programmed decisions).

As the Latin term "de ciso" (to cut off or end) implies, "cutting away" or a conclusion,
"decision" is derived. The choice of a course of action is what we mean by a decision.

If we believe that "decisions represent judgements; final settlement of conflicts; commitment

to action undertaken in the face of uncertainty; complexity; even irrationality," then we can
say that we agree with Felex M. Lopez.

5.2. COMPONENTS OF DECISION-MAKING

Decision environment: Every decision is made in the context of a decision environment, which
is described as the collection of information, alternatives, values, and preferences that are
available at the moment of making the decision. To make the best decisions, a person should
have access to as much information as feasible, and that knowledge should be as accurate as
possible. Information and alternative options are constrained, however, due to the limited
resources available. If you've got a deadline, then you have to make your decision. There are
only so many people, resources, and priorities that can be put into a project. At the mall, you
don't want to spend three hours and half a tank of gas looking for the ideal parking spot. We
might argue that one of the key challenges of decision-making is uncertainty, and one of the
main goals of decision analysis is to reduce uncertainty. Since decisions must be made within
this restricted environment.

Effects of Quantity on Decision-making: When it comes to making decisions, many people

have a tendency to gather more information than is necessary. One or more issues can develop
when an excessive amount of information is requested and collected. In this case, the additional
knowledge necessitates a delay in the decision-making process. The decision or solution could
suffer as a result of this delay. (a) There will be an overload of information. An overwhelming
47 PRINCIPLES OF MANAGEMENT

amount of data makes it impossible to make informed decisions because so much of it is

available at any given time.

Streams of Thought: To some, decision-making appears to be a one-off process in which

you receive information, consider possibilities, and then choose. This is a widespread fallacy.
There is no denying that judgments are made in the context of previous decisions. A stream is
a common metaphor used to describe this. As a result of previous decisions, a given decision
is both conceivable and constrained by the stream of decisions that precede it. It will have a
cascading effect on a slew of additional choices.

5.3. DECISION-MAKING PROCESS

Good decision-making is a skill that must be mastered. It's not something we're born with, but
rather a gradual process that can be learned from life experience. Experiential learning can be
costly, ineffective teacher that imparts more bad habits than good; in fact, the experience
gained from making one significant decision is typically of little or no benefit when confronted
with a different decision-making challenge.

Step 1: One of the first steps is to figure out your goal

Keeping an eye on your end objective is one of the best ways to make smart decisions. When
you're making a decision, ask yourself, "What is the problem that has to be addressed?" Is there
a specific reason why this issue has to be addressed? Finding out what matters most to you will
help you make wise decisions. Being able to articulate the rationale behind a choice can help
you stick with it and stand up for it.

Step 2: Gather Data for Considering Your Choices

Gathering information that is relevant to the topic is essential when making sound decisions.
To better grasp what has to be done to solve the problem and produce ideas for a possible
solution, you should do this first. Making a list of every potential alternative is the greatest way
to obtain information, even if those options appear absurd or unachievable at first. In order to
come up with a variety of possibilities while deciding on a final decision, you should always
seek the advice of individuals you trust or consult experts and specialists. When making a
decision, you'll want to acquire as much information as possible.
48 SHOOLINI UNIVERSITY

Step 3: Consider the Consequences of Your Actions

As crucial as the first stage, this phase will assist you understand how your final decision will
affect you and/or those involved. ' In this phase, you'll ask yourself what the consequences of
your action will be. As a result of this, how will you feel in the future? What will happen to
your future? Taking the time to weigh the advantages and disadvantages of each of the
possibilities you outlined in step one is an absolute need.

It's also critical because you want to be confident in your decision-making process and
confident in the potential outcomes of all of your alternatives.

Step 4: Decision-Making

Before making a final decision, you must first identify your aim, obtain relevant information,
and assess the possible repercussions.

Being aware of the fact that this phase can cause some people a great deal of worry can be
crucial, since this is where you have to follow your gut. Despite the fact that you may still be
undecided, you must take into account how this affectsyou. Consider if it feels right to you. In
the short term, and in the long term, is this decision the best for you? You should be satisfied
with your answers to these questions.

Step 5: It's time to assess your choices

A thorough evaluation is important after making your final decision and implementing the plan
in order to ensure that it succeeds. As vital as the first step was, this final step will help you
improve your decision-making abilities for future challenges. Because this phase may
necessitate you to seek out fresh information and make adjustments along the road, it is
essential.

5.4. SIMON’S MODEL OF DECISION-MAKING

It is thanks to Herbert Simon that we have a better knowledge of how decisions are formed
today. The topic of decision support systems was in fact pioneered by him.

Decision-making, according to (Simon 1960) and his later work with (Newell 1972), is a
process with discrete stages.
49 PRINCIPLES OF MANAGEMENT

He came up with the idea of a human decision-making model for the first time. In his decision-
making paradigm, there are three stages of consideration:

● Intelligence relating to problem identification and data collection about a problem.

● In the field of design, various solutions to a problem are generated.
● Decision-making in which the "best" option is selected from the other options by
some criteria.

Fig 5.1 Simon's decision-making paradigm is depicted clearly in the diagram

This will cover the following topics:

A. Intelligence Phase
B. Design Phase
C. Choice Phase

A. Intelligence Phase

Making a decision begins with this initial step.

This is where the problem or opportunity is discovered by the decision-maker. Detecting

deviations from a plan, norm, or standard is a challenge in the managerial context. An example
of an issue is the discovery by a human resources manager of a significant spike in attrition
among employees. On the other hand, looking for opportunities entails looking for a favourable
situation that could lead to greater outcomes. Marketing managers who learn that two of their
competitors are going out of business in the next three months are going to have an opportunity
to sell more of their product in the market.
50 SHOOLINI UNIVERSITY

B. Phase of Design

Design is the process of sketching out possible solutions to a given issue. The same problem
can be addressed in a variety of ways. After acquiring information on the solution, each
possibility is evaluated. Each solution is assessed based on a set of fundamental criteria in order
to determine its strengths and weaknesses. In order to arrive at these conclusions, quantitative
methods and models are employed. Solutions are simply outlines at this point and are only
meant to be analysed to determine their applicability. It takes a great deal of imagination and
ingenuity to come up with solutions.

C. Phase of Choice

This is the point at which all of the potential solutions are compared to determine which is the
best. Decision tree analysis and the six thinking hats technique are examples of quantitative
tools that can be used to identify the "best" answer.

To make matters worse, the problem itself may have several goals, making it even more
difficult to narrow down the options. Additionally, it is difficult to settle on a single answer
because of the ambiguity around possible outcomes.

5.5. GROUP DECISION-MAKING

There is only one person who makes a decision. Mainly, they deal with ordinary issues that may
be addressed by broad policies. As a result, the decision-making process is quite straightforward.
However, in other circumstances, a single person may be responsible for making key decisions.
When a group of people come together to make a choice, it is called a "group decision." Group
decisions include those made by the Board of Directors or a committee.

These choices have a significant impact on the organisation as a whole. In general, group decision-
making leads to more realistic, well-balanced, and participative decisions. However, this
causes additional delay and makes it more difficult to determine who is responsible for making
certain judgments.

5.6. SUMMARY
● The process of choosing a plan of action from among a variety of options is known as
decision-making.
51 PRINCIPLES OF MANAGEMENT

● Making a decision entails weighing the pros and disadvantages of several options and
settling on the best one.

● The majority of decisions are made by alternating between the selection of criteria.

● Every decision has a five-step decision-making process behind it.

● Various models exist to aid managers in making timely and successful decisions.

● When a group of people come together to make a choice, it is called a "group decision."

● To encourage the development of individual and group creativity. Attribute listing and
brain storming are just a few examples of decision-making procedures that are
commonly employed.

5.7. KEYWORDS

Rationality: Having complete knowledge about all the details of a given situation.

Brainstorming: Group of people are given a problem and suggestions are sought.

Delphi Technique: Getting information from physically dispersed people.

Nominal Group Technique: Help generate ideas while letting group members think

independently.

Intuition: It is the apparent ability to acquire knowledge without inference or the use
of reason.

5.8. REVIEW QUESTIONS

1. Do you always make your own decisions, without consulting anyone else? When do
you turn to others for guidance in making decisions?

2. Is it possible to come up with a solution if the logical approach fails.

3. Do you follow up with the consumer to see if they've received the rest of their order?

4. What would you do if you and a coworker had a tense working relationship because
of a personality clash?
52 SHOOLINI UNIVERSITY

5. Which circumstances would it be appropriate to use a majority of one to make

decisions? Is it ever acceptable to take action based on a majority of one?

5.9. FURTHER READINGS

Books:

Max H Bazerman, Judgment in Managerial Decision-making, John Wiley and Sons

Publications

Online link:

http://www.thinkingmanagers.com/business-management/decision-making.php
53 PRINCIPLES OF MANAGEMENT

UNIT 6: MANAGEMENT BY
OBJECTIVES

CONTENTS
• Objectives
6.1. Introduction
6.2. Core Concepts of MBO
6.3. Characteristics of Management by Objectives
6.4. Process of MBO
6.5. Limitations of Management by Objectives
6.6. Management by Exception
6.7. Summary
6.8. Keyword
6.9. Review Questions
6.10. Further Readings

OBJECTIVES
After studying this unit, you will be able to:

● Discuss management by objectives

● Management by exception
● What is the process of management by objectives
54 SHOOLINI UNIVERSITY

6.1. INTRODUCTION
A competent manager is usually defined by achieving the goals he or she sets out to achieve.
MBO, or management by objectives, is a method that aids managers in achieving their goals
more quickly and effectively. Managing by Objectives (MBO) emphasises that a manager
clearly define his goals before beginning a new project. Whether a manager isn't sure where
he's going, he's not going to get there, and he may not even know if he's on the correct path or
if he's even there. Management by objectives (MBO) has been around for as long as
management has existed. Management, in reality, must always be guided by and focused on

the goals of the organisation. Unfortunately, the majority of supervisors are unsure of their
goals. They are often unsure of what their organisation, department, or division should do in a
given amount of time, and this is a common problem. Effective management necessitates the
energy, direction, and mutual trust that MBO can supply if it is executed correctly. It's like re-
inflating a tube that's gotten a little flat.

6.2. CORE CONCEPTS OF MBO

To improve an organization's performance, management by objectives (MBO) is a strategy.
Organizational goals are developed and communicated to employees in an effort to attain them,
and this process is known as "goal setting."

Monitoring and evaluating each employee's performance and progress against the defined
targets is a crucial element in the MBO approach. Employees are more likely to meet their
responsibilities if they are involved in formulating goals and selecting their course of action.

John Humble has defined –

“Management by objectives as a dynamic system which integrates the company’s need to

achieve its goals for profit and growth with the manager’s need to contribute and develop
himself.”

Management by Objectives, by Dale D. McConkey,

is a management-by-results and goal-setting strategy. When it comes to management planning

and evaluation, he says that it is a strategy in which specific goals for a year or any other
length of time are defined for each manager in order to meet business goals.
55 PRINCIPLES OF MANAGEMENT

6.3. CHARACTERISTICS OF MANAGEMENT BY OBJECTIVES

Participation of superiors by subordinates: In order to implement MBO, both the superior
and the subordinate must acknowledge that setting goals is a team endeavour. Together, they must
agree on and document their respective responsibilities in their separate positions.

Measurable Objectives

In MBO, the focus is on achieving results that can be seen, verified, and quantified. In
cooperation with his superior, the subordinate establishes his own short-term objectives—goals
that are both attainable and practical.

Keep your eye on the prize:

What must be completed (goals) is given special attention in MBO rather than how it is
accomplished (methods). The superior and subordinate work together to come up with a plan to
accomplish the mutually agreed-upon goals. They decide on the standards to be followed and the
norms to be used in evaluating performance in agreement with one another.

Achieved Successes

A single-minded concentration on attainable goals is the driving force behind MBO's ability to
facilitate the attainment of goals. Employees are encouraged to use their initiative, think
creatively, and achieve their goals. When everyone understands what has to be accomplished
and how their work will be evaluated and rewarded, better results are the inevitable result.

Support and Blessings from Superior: Consistent and ongoing

Superiors are always ready to lend a helping hand. They occasionally provide the direction and
counselling that is required. They maintain open communication channels. The main objective
is to achieve goals by working together, supporting one another, and sharing resources.

6.4. PROCESS OF MBO

Define organisation goals

Setting targets is not only crucial to the success of any firm, but it also serves a range of reasons.
It requires to incorporate numerous different types of managers in defining goals. The targets set
56 SHOOLINI UNIVERSITY

by the supervisors are provisional, based on an interpretation and judgement of what the
organisation can and should achieve within a certain time.

Define employee objectives

Once the employees are told about the broad objectives, strategy, and the techniques to follow,
the managers can start working with their subordinates on setting their personal targets. This
will be a one-on-one session where the subordinates will let the managers know about their
targets and which goals they can complete within a specified time and with what resources.
They can next provide some tentative suggestions about which goals the organisation or
department can find attainable.

Continuous monitoring performance and progress: Though the management by

objectives approach is vital for boosting the efficacy of managers, it is equally essential for
monitoring the performance and advancement of each individual in the firm.

Fig 6.1 Management By Objective process

57 PRINCIPLES OF MANAGEMENT

Performance evaluation

Within the MBO framework, the performance evaluation is achieved by the participation of
the managers concerned.

Providing feedback

In the management by objectives strategy, the most critical stage is the continual feedback on
the results and targets, as it enables the employees to track and make corrections to their
activities.

The constant feedback is reinforced by frequent formal evaluation meetings in which superiors
and subordinates may debate progress towards targets, leading to more feedback.

An evaluation of one's work

MBO firms use performance evaluations as a regular way to evaluate the success of its staff.

6.5. LIMITATIONS OF MANAGEMENT BY OBJECTIVES

● Managers who focus on goals may overlook the company's culture and working
circumstances.

● Goals and targets are given more weight. Managers constantly put pressure on their
employees to meet their objectives, and they neglect to leverage MBO to increase
employee engagement, contribution, and management growth.

● Managers often place too much emphasis on setting goals rather than focusing on the
day-to-day operations of the company

● When setting goals, the MBO approach doesn't place much emphasis on context. From
resource availability and efficiency to leadership and stakeholder support, context is
everything.

● Finally, many managers believe that, once implemented, management by objectives is

a complete system capable of handling all aspects of management. The MBO system
may not be able to deal with challenges caused by the overdependence, and this could
have a negative impact on the issues it is meant to address.
58 SHOOLINI UNIVERSITY

6.6. MANAGEMENT BY EXCEPTION

Management by Exception is a practise in which only the information that shows a considerable
departure of actual outcomes from the budgeted or planned results is brought to the knowledge
of management. This is done in order to minimise the amount of information that is brought to
management's attention. Its purpose is to make it easier for management to concentrate on the
truly vital strategic and tactical responsibilities at hand. When this occurs, the responsibility
for making a decision that cannot be resolved at one level of management is transferred to the
subsequent and more senior level.

Management by exception is an approach that can be utilised by any organisation. There is

little need for management involvement when routine work produces satisfactory outcomes. If
a manager has done a good job of training their employees and subordinates, they should have
little trouble delegating authority and allowing others to take responsibility for managing their
own work. When this occurs, managers are in a position to focus their skills and attention on
issues that are not routine. The inability of some managers to delegate decision-making
authority to their subordinates due to concerns about maintaining control is a psychological
barrier that will hold them back professionally.

6.7. SUMMARY
● MBO seeks to improve organisational performance by synchronising the overarching
goals of the organisation with the objectives of its subordinate units. It managers
concentrate on the end product rather than the activity itself.
● The purpose of Management by Exception is to make it easier for management to
concentrate on activities that are both strategically and tactically significant.

6.8. KEYWORD
● Management by Objectives is a management strategy that seeks to improve the
performance of an organisation by explicitly identifying and agreeing upon a set of
objectives to be pursued.
● Management by Exception is a practise in which only the information that shows a
considerable deviation of actual outcomes from the budgeted or planned results is
brought to the awareness of management. In other words, management is only informed
of information that indicates a large deviation.
59 PRINCIPLES OF MANAGEMENT

6.9. REVIEW QUESTIONS

1) The MBO concept has been around for as long as management itself. Comment
2) Can you please explain what you mean when you say that managers should "avoid
the activity trap"?
3) Explain the MBO idea and elaborate on its many practical applications.
4) Describe the steps involved in the MBO process.
5) Evaluate the benefits and drawbacks of using MBO.
6) Compose a brief paragraph on the topic of management by exception.

6.10. FURTHER READINGS

Books:

PF Drucker, The Practices of Management, Allied Publishers, New Delhi

Online link:

http://findarticles.com/p/articles/mi_hb3265/is_n1_v33/ai_n28626001/
60 SHOOLINI UNIVERSITY

UNIT 7: STYLES OF
MANAGEMENT

CONTENTS

• Objectives
7.1. Introduction
7.2. American Style of Management
7.3. Japanese Style of Management
7.4. Indian Style of Management
7.5. McKinsey’s 7-S Model
7.6. Self-management
7.7. Summary
7.8. Keywords
7.9. Review Questions
7.10. Further Readings

OBJECTIVES
After this chapter you will be able to understand

● Define different styles of management

● Clarify McKinsey’s 7-S approach
● State the concept of self-management
61 PRINCIPLES OF MANAGEMENT

7.1. INTRODUCTION
A manager's approach to achieving their responsibilities is referred to as their management
style. A manager's management style encompasses the manner in which they plan, organise,
decide, delegate, and manage the employees under their supervision. It can vary greatly based
on the individual, the firm they work for, their level of management, the sector they work in,
the nation they live in, and their culture.

An effective manager is someone who is able to adapt their management style in response to a
variety of conditions while maintaining their attention on effectively attaining their goals. Both
internal and external influences can have an impact on different management styles.

7.2. AMERICAN STYLE OF MANAGEMENT

In the United States of America, the management style that is used may be characterised as
having an individualistic approach. This is due to the fact that managers are held responsible
for the decisions that are made within their respective areas of responsibility.

Even while critical decisions might be addressed in open forum, the final responsibility for the
repercussions of the decision remains with the boss - support or what seems to be a consensus
will evaporate when things go wrong. The bright side of this accountability is, of course, the
American fantasy that extraordinary performance will inevitably bring outstanding rewards.
This is one of the benefits of having this accountability. As a result, American managers are
more prone to dismiss the ideas of their subordinates than managers in other cultures,
particularly those cultures that are more focused on reaching consensus or finding middle
ground. Frustration is a natural consequence of this, and it often appears to reach a tipping point
during scenarios involving meetings.

A bewildering variety of tremendously important-sounding job descriptors are available to choose

from, which can make titles within American organisations quite difficult to decipher (Executive
Vice-President etc.). In any event, titles rarely provide an accurate depiction of an individual's
position within a corporation in relation to the importance of their responsibilities.

There is a correlation between importance and power, which can be established by a variety of
criteria, such as the responsibility for a certain headcount, the profitability of the sector, or the
strategic importance to the organisation at that particular point in time.
62 SHOOLINI UNIVERSITY

It is common practise to draw a contrast between the styles of management (revolving around
organisation and process) and leadership (more strategic and inspirational.) However, it can be
difficult to define what exactly constitutes great leadership, and a description that is applicable
in the United States may not carry the same weight in other areas of the world. Great leadership
is required at the top of an organisation rather than competent management.

7.3. JAPANESE STYLE OF MANAGEMENT

The Japanese management style places a greater emphasis on the necessity of information flow
working its way up from the lower levels of the organisation. As a direct consequence of this,
senior management tends to take a more supervisory role rather than a hands-on one. As a
consequence of this, it has been observed that the conception of policy typically takes place at
the middle levels of an organisation, after which it is brought to higher levels for ratification.
The fact that individuals who are responsible for carrying out choices were also actively
participating in the process of formulating policy is undoubtedly one of the strengths of this
method. When a Japanese manager advances through the ranks of an organisation, it is
increasingly crucial that he maintains an air of modesty and refrains from appearing overly
ambitious. The most important responsibility of a Japanese manager is to cultivate an
atmosphere conducive to the expansion of the team. In order to accomplish this, he needs to
make himself available at all times and be eager to share his expertise with the other members
of the group. The instructions given by managers might frequently appear to western
counterparts to be excessively ambiguous, which frequently results in confusion and irritation.
Problems revolving around different modes of communication are mostly responsible for this
predicament in its entirety.

7.4. INDIAN STYLE OF MANAGEMENT

Is there a business model unique to India? To get a handle on this, we must first grasp the
terrain of India. Until the 1990s, India had an entirely closed economy. The widespread belief
was that once the economy opened up, it would be taken over by the global corporations.
Instead, the reverse occurred, with Indian businessmen welcoming the country's economic
liberalisation.

Their financing structures were upgraded as well as the managerial skills of the company as a
whole. They also became more professional and worldwide as a result of these changes. In
light of the growing importance of Indian firms in the global economy, is there a distinct
63 PRINCIPLES OF MANAGEMENT

"Indian way" of running a company or conducting business? Is there a special quality that
distinguishes Indian supervisors? Yes, Indian management and the India Way of doing
business have a lot to do with the differences between the U.S. and India.

But at the same time, Indian founders recognise the need of having a team of experienced
managers. As a result, in India, businesses are run by individuals who are both entrepreneurs

and professionals, and they do so in harmony. Family-owned Indian companies like Tata, Birla,
and Mittal, for example, are prime examples. Companies in India differ from those in other
nations due to a combination of their organisational capacities, managerial styles, and corporate
cultures. Greater staff involvement, an ability to adapt and provide customers with added value
through innovation are all hallmarks of Indian businesses, which also have broader mission
statements than simply maximising shareholder value. Secondly, and probably most
eloquently, alumni of the Indian Institutes of Managerial (IIMs) illustrate that we have
produced very high levels of management talent in India over the years (IIMs). Indian B-
schools are now graduating more students than ever, and these young managers are combining
with older, more experienced ones to form a new generation of managers who can function
successfully both domestically and abroad.

To begin, unlike in other nations, in India, the majority of enterprises are run by members of
the founders' families. Because of this, Indian entrepreneurs are more likely than American
entrepreneurs to stay in business to the end. The promoters' children typically take over the
company in India, but this is less usual in the United States and other western countries. More
than any other country, we're grappling with the weight of the nation's past.

A paucity of resources is no barrier for Indian managers who are adept at finding workarounds.
"Jugaad" is a Hindi term that alludes to a readiness to improvise inventive solutions over and
over again. However, there is a drawback to jugaad: it frequently leads to solutions that are
less long-term or of inferior quality, resulting in short-term gains. Developments in the Indian
management style are ongoing. As of yet, we haven't discovered a common management style
among Indian companies. As an example, Total Quality Management, or Just in Time
Management, were popular in Japan. As far as I know, there aren't any such similarities across
countries or businesses in India.

Rather than an Indian management style, it's the Indian managers themselves who are better-
qualified and better-equipped to run enterprises efficiently and profitably in a challenging
64 SHOOLINI UNIVERSITY

environment. Capacity to work under severe operating conditions; knowledge of English and
democratic values; ability to operate in mixed environments with promoters; etc. You need to
know these things in order to understand The Indian Way.

7.5. MCKINSEY’S 7-S MODEL

What is referred to as the McKinsey 7S Model is an analysis tool for "organisational design."
Organizational success can be accomplished through the interaction of seven important aspects

– Structure, Strategy, Skill, the System, Shared Values and Style – as shown in the model.

Fig 7.1 McKinsey’s 7-S Model

Changing one of the "Soft SS" or "Hard SS" aspects has a cascading effect on the other
elements, according to the McKinsey 7s Model, which emphasises the interconnection of the
model's components. Changes in the founders' values have a significant impact on all other
parts, which is why "Shared Values" is the "centre."

The 7S Model of McKinsey & Co. The "Hard Ss" elements include things like Structure,
Strategy, and Systems, while the "Soft Ss" elements are anything else.
65 PRINCIPLES OF MANAGEMENT

● Structure: Chain of command and accountability relationships that compose an

organisational chart are examples of structure.

● Strategy: A strategy is a well-thought-out business plan that enables a firm to establish

a plan of action to attain a long-term competitive advantage that is supported by the
organization's values and mission.

● Systems: For a business, a system is the business and technical architecture that
underpins daily operations and the decision-making process.

● Skills: In addition, it is important to have a wide It is via the skills of an organization's

personnel that it is able to accomplish its mission-critical goals.

● Style: The management style of a company's executives is shaped by the attitudes of its
most senior employees, who set the tone through their interactions and symbolic
decision-making.

● Staff: Talent management and all human resources connected to the company's
decisions, such as training, recruiting, and reward systems, are all part of staff
management.

● Shared Values: In order to keep an effective organisational structure going, it is

critical that the mission, objectives, and values of a company are in sync with one
another.

7.6. SELF-MANAGEMENT
The self-concept is the accumulation of knowledge about the self, including as beliefs
regarding a person's personality traits, physical attributes, abilities, values, objectives, and
roles. This knowledge is referred to as "self-knowledge."

Children begin to gather and organise information about themselves as early as infancy, which
enables them to develop an understanding of the relationship that exists between the self and
the social world in which they live. This developmental process is a direct result of children's
increasing cognitive skills as well as their social relationships with those around them. noting
both relatives and contemporaries
66 SHOOLINI UNIVERSITY

The development of self-awareness does not occur in an all-or-nothing fashion, which would
allow us to believe that the child does not possess it up to this time but that he does possess it
beyond this point. However, the development of self-awareness does not occur in an all-or-
nothing fashion. If a person is healthy, the process of self-discovery will continue for as long
as they are alive. The process of self-discovery will begin while a child is developing or
discovering new potentialities and will continue as long as the person is alive.

7.7. SUMMARY

● The management system of India is based on a hierarchical structure, whereas

the management style of the United States can be characterised as having an

individualistic approach to business. Japanese management places a strong emphasis on

the requirement for information to flow upwards through an organisation.

● According to the 7-S framework developed by McKinsey, there are a variety of

aspects that play a role in determining how an organisation should adapt to new
circumstances and how effectively it can do so.

● The self-concept is the collection of knowledge about the self, such as beliefs
regarding a person's personality traits, physical qualities, abilities, values,
objectives, and roles. This knowledge is what makes up the self-concept.

7.8. KEYWORDS

● The McKinsey 7-S Framework is a management model that outlines seven variables
that should be organised by a corporation in an effective and comprehensive manner.

● A person's self-concept can be defined as the accumulation of knowledge about

themselves, including beliefs about their personality features, physical qualities,
abilities, values, objectives, and roles.

7.9. REVIEW QUESTIONS

1) Discuss the similarities and differences between Japanese, American,

and Indian management styles.
2) "Different self-concepts mature in accordance with a recognisable trajectory."-
Discuss.
67 PRINCIPLES OF MANAGEMENT

3) Describe the idea of the self and the many ways it can manifest itself.
4) Discuss the significance of personal growth and effective management in
today's fast-paced business environment.

7.10. FURTHER READINGS

Books:

H A Simmons, The Science of Management Decisions, Harper and Row, New Delhi

Online link:

http://www.referenceforbusiness.com/management/Int-Loc/Japanese-Management.html
68 SHOOLINI UNIVERSITY

UNIT 8: ORGANISING

CONTENTS

• Objectives
8.1. Introduction
8.2. Organising – The Process
8.3. Organisational Design
8.4. The Implications of Organizational Structure
8.5. Organisation Structure
8.6. Summary
8.7. Keywords
8.8. Review Questions
8.9. Further Readings

OBJECTIVES
You'll be able to:

● Describe the meaning and process of organisational design and organisational

structure after studying this unit
● Indicate the significance of and different types of organisational structure.
● Discuss the fundamentals of management.
69 PRINCIPLES OF MANAGEMENT

8.1. INTRODUCTION
Organizing as a management function entails the division of labour among individuals whose
activities must be coordinated in order to achieve certain goals and implement predetermined
methods. The structure of management is based on the foundation of organisation. It is the pillar of
management's structure. As soon as an enterprise's goals are clear and a strategy is drafted, it's time
to organise its operations in order to carry out that strategy and achieve its goals. There are many
different ways to define the term "organisation." In any event, the phrase can be understood in one
of two ways. As a dynamic process and administrative activity, the first meaning of
organisation is to bring people together and bind them together so that they can work toward
common goals.

8.2. ORGANISING – THE PROCESS

A manager's primary responsibility is to keep track of the activities of all of his staff. One of
the most difficult and critical responsibilities of a manager is planning. Let's take a closer look
at organising and how it works.

Organizing Procedures

Let's get a handle on organising first. In order to get things organised, you need to figure out
how to divide up the work. Individuals and groups of individuals are assigned tasks by
supervisors. In order to maximise their effectiveness, they coordinate the efforts of such
individuals and groups. When it comes to organising, assigning responsibility and authority to
employees is an important part of the process. One of the most important aspects of organising
is distributing the right amount of authority and tasks.

In the first step, you need to identify the task at hand

The obvious first step in the organisation process is to determine the work that the organisation
has to undertake. From here, we'll begin our explorations. In order to accomplish the
organization's goals, a manager needs a plan of action. Misunderstandings and wasted time and
effort can be avoided by clearly delineating the task at hand.

Work Organization

Organizational efficiency and productivity will be enhanced if similar tasks and activities are
clustered together. As a result, we divide the company into departments, and each department
70 SHOOLINI UNIVERSITY

into sub-divisions. Such a structure improves the efficiency of the corporation. The number of
departments and divisions within a company can vary widely, depending on factors such as its
size and the complexity of its operations.

And each department has a manager at the top level of management to represent them. These
departments may be grouped together in smaller corporations and managed by a single
manager.

Establishing a hierarchical structure

As part of the process of establishing reporting connections, all workers of the organisation must
be identified. As a result, a manager sets up the company's vertical and horizontal relationships.
This allows for the rapid evaluation and control of all employees' performance.

As a result, corrections can be made instantly if necessary.

The Process of Handing Down Authority

In its simplest form, authority refers to a person's ability to compel others to do what he or she
wants. In other words, managers who are given certain tasks and responsibilities must also be
given the authority they need to carry them out. He won't be able to carry out the necessary
tasks and activities if we merely give him the responsibilities but not the authority to carry
them out. Because of this, we must assign authority and clearly define the scope of
responsibilities and authority given.

Cohesion

Finally, the manager must make sure that all employees and groups' actions are coordinated.
Otherwise, it could lead to disagreement among personnel, duplication of labour, and waste of
time and effort. Alternatively He is in charge of making certain that each department is doing
its job properly and in unison. The ultimate goal is to ensure that the organization's objectives
are met.

8.3. ORGANISATIONAL DESIGN

Organizational design refers to the process of bringing an organization's structure in line with
its goals and aims, with the end goal of achieving greater levels of efficacy and productivity as
a result.
71 PRINCIPLES OF MANAGEMENT

The need to improve the delivery of services or particular business processes can be a catalyst
for more work, as can the establishment of a new mandate. In addition to the design of a
building, it requires the following

● Having an understanding of the need for change and the surrounding environment

● A comprehension of the operational procedures, workflows, roles and responsibilities,

work volumes, activity analysis, and resource allocation is required.

● Creating new models or structures and putting them through their paces of testing

● The process of transitioning from the old structure to the new one requires careful
planning and management.

● Putting the modification into effect while keeping an eye on it

8.4. THE IMPLICATIONS OF ORGANIZATIONAL STRUCTURE

Implementing organisational structures and processes that are in harmony with an
organization's fundamental operations is an essential part of organisational design. When a
company is expanding or wants to reduce its workforce, it frequently undergoes organisational
reform. On the other hand, it could be due to a shift in the organization's leadership or strategy,
or it could be the result of changes in the larger environment in which the organisation
functions. When it comes to organisational design, efficiency can bring a variety of benefits,
including the following:

● A rise in productiveness

● Making decisions in a more timely and efficient manner.

● increased excellence in the products and services offered.

● Greater financial gain.

● Improved relations with the clientele

● Better and more secure working circumstances.

● A workforce that is not just happier but also healthier and more motivated.

● A higher level of readiness for upcoming difficulties.

72 SHOOLINI UNIVERSITY

Nonetheless, if there are errors in its design, an organisation is susceptible to a variety of

major issues, including the following:

● Unproductive attempts to solve the situation.

● Time that was wasted

● There is a lack of coordination between the many departments of the company.

● The quality of the job is inconsistent.

● legal compliance issues that need to be addressed.

● Reputational damage.

● Low morale, which leads to a high turnover rate among employees.

● Targets were not met, and performance was subpar.

Even though a certain configuration had good results in the past, this does not guarantee that it will
continue to do so in the future.

It is essential for companies to maintain a careful eye on their organisational structures as their
businesses grow and as the environment in which they operate undergoes change.

When it reaches the point where it can no longer fulfil its intended function, then it is time to
move on to the next step of the Organization Design process.

8.5. ORGANISATION STRUCTURE

When we talk about an organization's structure, we're talking about the way that individual and
group efforts are organised. Individual efforts must be coordinated and managed if the organisation
is to meet its goals and objectives.

To achieve coordination, structure is an essential tool. It outlines who reports to whom, how
information is shared, and how different people's actions are linked to one another in a specific
chain of command.

Organizations can work within a number of different structures, each holding distinct advantages
and disadvantages.
73 PRINCIPLES OF MANAGEMENT

Although any structure that is not effectively managed will be plagued with challenges, some
organisational structures are more fitted for particular surroundings and jobs.

The Components That Make Up a Structure

What does the term "organisational structure" actually mean? In what ways do the
organisational components of a corporation influence our behaviour and the way in which our
work is coordinated? We will discuss four characteristics of structure that have been commonly
studied in the literature: centralization, formalisation, hierarchical levels, and
departmentalization. These four elements serve as the foundation upon which a firm is built.
Then we will explore how these building components come together to generate two different
configurations of structures.

Functional Structure

In the actual world, four different types of organisational structures are commonly used. A
functional structure is the most prevalent type. This is sometimes referred to as a bureaucratic
organisational structure that divides up a corporation based on the specialty of its staff. In most
small-to-medium-sized firms, a functional organisation is put into practise. Organizational
bureaucracy refers to the division of a company into divisions for marketing, sales, and
operations.

Divisional or Multidivisional Structure

The second category is frequent among large corporations with several business units. This system,
also known as the divisional or multidivisional structure, is used by companies to organise their
executive teams according to the products, projects, or subsidiaries they oversee. A notable
example of this organisation is Johnson & Johnson. The corporation is structured so that each
business unit runs as a separate company with its own president, despite the fact that it has
hundreds of products and business lines.

Flatarchy Structure

Flatarchy, a newer structure, is the third form and is adopted among many businesses. As the
name indicates, it flattens the structure and chain of command and allows its employees a lot
of liberty. The rapidity with which companies can implement new ideas is a benefit of this
organisational structure.
74 SHOOLINI UNIVERSITY

Matrix Structure

The fourth and final organisational type is a matrix structure. It is also the most confusing and
the least used. This structure matrixes people across different superiors, divisions, or
departments. An employee working for a matrixed organisation, for example, may have
obligations in both sales and customer service.

FORMS OF ORGANISATION

There are 5 types of organisations such as Line Structure Organization, Line and Staff
Organization, Functional Structure Organization, Matrix Structure Organization and Project
Structure Organization.

Organization of the Line Structure

Definition of Line Structure: – Line structure organisation is the simplest and oldest form of
organisation structure. It is called as a scalar form of military or divisional or organisation. In
a hierarchical organisation, power is distributed horizontally from the top to the various levels
of managers and subordinates, and finally to the lowest-level workers. The scalar principle or
chain of command are other names for this concept.

Fig 8.1 Line organisation structure

75 PRINCIPLES OF MANAGEMENT

Organization of Lines and staff

Line and staff organisation in management is a technique taken by authorities (for example: –
managers) to define goals and instructions that are then met by employees and other workers.
A line and staff organisational structure seeks to display a vast and complicated firm in a more
flexible way without surrendering management power. Employee networks provide assistance
to individuals working on the company's most critical projects. They stand by their work. Staff
groups support the organisation in assessing, researching, counselling, monitoring, and in
reviewing activities.

Fig 8.2 Organization of Lines and staff

Functional Structure Organization

Structure with Purpose Organization is one of the most common structures of organisation.
They are classified depending on their distinct abilities and knowledge. This organisational
structure divides personnel into groups based on a certain task or set of related duties.

A high amount of bureaucracy makes it harder for firms to respond swiftly to market changes
when functional structures are well functioning under stable contexts.
76 SHOOLINI UNIVERSITY

Matrix Structure Organization

Some employees are reported to more than one supervisor or leader, which is known as "solid line"
or "dotted line" reporting in a matrix organisation.

Other work models that do not maintain

traditional corporate units or silos grouped by function or region can also be described in this
way, albeit it is a broader definition. For example, an individual may have a primary manager
they report to as well as one or more project managers they work under.

Organization of the Project Structure

The hierarchy and authority of those working in a project are established through the adoption
of an organisational structure for the project. Specifically for the development of a new product,
this organisational structure is temporarily developed for certain projects for a defined time
period and is ready to work with various functional departments such as manufacturing and
engineering as well as quality control and marketing research. These specialists return to their
duties as soon as the project is completed. Indeed, the purpose of establishing a project
organisation is to overcome the major weaknesses of a functional organisation, such as the
absence of a unified command, the delay in decision-making, and the lack of coordination of
efforts.

8.6. SUMMARY
● The entire structure of management is constructed on the foundation of organisation.

● Managers rely on it as their foundation.

● Relationship building inside a company is a key component of organising.

● Authority and responsibility play an important role in the development of these

connections.

● Supplementing the formal structure is an unofficial one that does not appear on the
organisational chart.

● The effectiveness and efficiency of an organization's aims can be improved through

the use of formal structures.
77 PRINCIPLES OF MANAGEMENT

● In order to achieve desired outcomes, an organisation must establish structural

relationships among its many divisions and the people who work there.

● The distribution of responsibilities and the delegation of authority are at the heart of
organisational structure.

● Organizations must establish formal relationships among their employees to establish

clear lines of authority and effectively coordinate the work being done by diverse
persons.

● The current era is marked by fierce competitiveness.

8.7. KEYWORDS

• The formal structure of a firm refers to the established hierarchies of power and
responsibility.
• Employees in a functional organisation are grouped according to their individual talents
and resources.
• People affiliated with each other build a network of personal and social relationships
known as "informal organisation," which is a type of informal organisation.
• A manual is a piece of written information that explains how to perform something.
• An organisation is a social arrangement that pursues common goals, manages its own
performance, and has a boundary that separates it from the rest of the world.

8.8. REVIEW QUESTIONS

1) According to the human relations method, "good committee administration is

achieved by adhering to its fundamental principles". Do you think this is correct?
Help committees be more effective by submitting ideas for improvement.
"The backbone of management is organisation." Comment.
2) Use real-world examples to draw comparisons between functional, line, and line-
staff organisations.
3) Is a huge manufacturing company better served by one of these options or the
other?
78 SHOOLINI UNIVERSITY

4) A committee is made up of people who don't want to perform the work they don't
have to do. Comment.
5) The importance of an organization's structure cannot be overstated. A mass-
produced item made in an unstable environment needs a different kind of
organisational structure than a custom-made item made in a stable setting.

8.9. FURTHER READINGS

Books:

Ferrell, M.Z., Dimensions of Organisations: Environment, Context, Structure, Process, and

Performance, Santa Monica: Goodyear Publishing Company, Inc., 1979.

Gibson, Ivancevich, Donnelly, & Konopaske, (2003), Org

Online link

https://ncert.nic.in/textbook/pdf/lebs105.pdf
79 PRINCIPLES OF MANAGEMENT

UNIT 9: DIFFERENTIATION AND

INTEGRATION

CONTENTS

• Objectives
9.1. Introduction
9.2. Differentiation
9.3. Types of Differentiation Strategy
9.4. Advantages of a Differentiation Strategy
9.5. Integration
9.6. Types of Integration
9.7. Barriers to and Advantages of Integration
9.8. Summary
9.9. Keywords
9.10. Review Questions
9.11. Further Readings

OBJECTIVES
After completing this course, you will be able to:

● Describe the different types of differentiation strategies and their meanings

● A Differentiation Strategy's Benefits
● Examples of Integration Barriers and Benefits
80 SHOOLINI UNIVERSITY

9.1. INTRODUCTION
Many companies decide to reorganise their businesses throughout the course of time and will
employ a wide range of tactics in order to advance and differentiate themselves in the market.
Consider developing a differentiation strategy in order to boost your revenues without exposing
yourself to unnecessary danger or slashing the pricing of your products.

In the following chapter, we will go over what a differentiation strategy is, how to construct
one, and the benefits that having a differentiation strategy may bring to your company.

9.2. DIFFERENTIATION
A differentiation strategy is a method that companies establish by offering customers with
something that is distinctive, different, and distinct from the things that their competitors may
offer in the market. This is done in order to stand out from the crowd and attract more
customers. Implementing a differentiation strategy with the purpose of gaining a competitive
advantage is the primary goal of doing so.

Typically, a company will achieve this goal by doing an assessment of both its strong points
and its weak points, as well as the requirements of its clientele and the overall value it can
deliver.

A company may pursue one of two primary types of differentiation strategies: a broad
differentiation strategy or a focused differentiation strategy.

Both of these strategies are aimed at setting the company apart from its competitors.

What exactly is meant by the phrase "wide differentiation strategy"?

Building a brand or company that is distinct from its rivals in some way is the cornerstone of
a broad differentiation strategy. It is applied to the industry, and it will attract customers from
a very wide variety of demographics.

What exactly does the term "targeted differentiation approach" refer to?

To implement a targeted differentiation strategy, a company needs to provide a product or

service that not only stands out from the competition but also satisfies the demands of a certain
segment of the market, also known as a niche.
81 PRINCIPLES OF MANAGEMENT

9.3. TYPES OF DIFFERENTIATION STRATEGY

Differentiation helps you to give higher value to clients at a reasonable price, producing a win-win
scenario that can enhance the overall profitability and viability of your organisation. Our research
reveals there are six key ways to differentiate, including product, service, routes of distribution,
relationships, reputation/image, and price. In order to distinguish oneself from the rest of the pack,
not all means of differentiation are created equal. Continue reading to find out more about these
various approaches, as well as the primary benefits and drawbacks of each

A. Product Differentiation

Product differentiation is arguably the most evident. Physical distinctions as well as variations in
how others see you are included in this. Features, performance, efficacy (or the product's capacity
to do what it is supposed to do), meeting standards, and other factors can all be used to differentiate
a product. B2B and consumer marketers alike devote a significant portion of their efforts and
resources to this sector.

The problem, though, is that product distinctiveness is short-lived. It is astonishingly easy to mimic
practically any product invention. Of course, the western world has a complex intellectual property
rights ethic and legal system that gives copyright and patent protection. However, from a practical
sense, none of this poses a problem. In fact, many organisations choose intentionally not to patent
as it shows competitors exactly how to copy the benefit. At best, a product innovation is protected
for the life of the patent. At worst, when a patent does not exist, anyone with enough capital to
acquire a machine may be a competitor in a matter of days or weeks.

B. Differentiation in Customer Experience

Differentiation of service encompasses not only delivery and customer service, but all other
supporting parts of a business such as training, installation, and convenience of ordering.

To many, they appear like the straightforward components of a business - the blocking and tackling
or the foundational parts that do not require expertise.

Consider, however, a company like McDonald's. Whether you like the Big Mac or not, they know
how to stand out when it comes to customer service. Only a handful of differences exist between a
McDonald's in Texas and a McDonald's in Georgia, Connecticut, or California in terms of the food
and service you receive. Fries are fried to the exact same temperature, salted to the exact same
concentration, and served hot straight from the fryer at every location.
82 SHOOLINI UNIVERSITY

C. Distribution Differentiation

Channels of distribution can also be an effective means of differentiation. Distribution can provide
coverage or availability, immediate access to experts, and better ease of ordering, and higher levels
of customer or technical assistance. For many producers facing a fragmented market, it is not
practicable to reach the end user without the distribution function.

Building materials, for example, have to somehow flow from manufacturer plant to contractor.
Master distributors, specialised dealers, and retailers all have a role in the distribution of these
products. With adequate support — that is training, cooperative sales calls, supporting literature,
lead sharing, etc. — a distributor can become a loyal ally and partner of the manufacturer. When
working with a non-exclusive partner, a dedicated distributor can get an advantage through
collaborative promotions, bundling, service assistance for warranties and guarantees, and
technical support. It is time-consuming and incredibly expensive for a competitor to pre-empt
or reproduce this level of differentiation.

D. Relationship Differentiation

Differentiation through corporate personnel is an often-overlooked method. Employees,

associates, or team members with customer interface can supply and display expertise, civility,
credibility, reliability, and responsiveness. Responsible for performing day-to-day client-
facing communication, they represent the connector between the product and customer. The
company would be doomed if that linkage failed.

E. Customer service representatives (CSRs) and technical service representatives

(SSRs)

They becoming increasingly important as trusted members of the customer's team, ensuring
that products are delivered on schedule and function as intended while also resolving any
difficulties that may arise. Performance like this establishes emotional relationships between
the provider and customer.

This is a way to stand out from the competition by emphasising the importance of the
individuals involved. Customers like doing business with real individuals rather than a faceless
corporation. Building this relationship takes time, but establishes a highly differentiated
position.
83 PRINCIPLES OF MANAGEMENT

F. Reputation Differentiation

Some businesses set themselves apart by their image either as part of another differentiation
channel or as a separate strategic strategy. Normally, image is produced by various forms of
difference such as high levels of service, excellent product quality, or performance. Image is
controlled and managed by symbols used in communications, advertising, and all sorts of media
— written, digital, and auditory, as well as the ambience of the physical place where clients
encounter the firm. This doesn't just apply to retail establishments. An image or reputation can be
a significant challenge for potential new entrants. DuPont, for example, generally has a strong
image as a technical powerhouse in practically all areas in which they operate.

The organisation employs a big number of engineers, scientists, and product development
experts. Their sales agents frequently have a good technical degree or experience, and their
products are positioned as being leading edge. Milliken and Company has a similar image. For
the potential new start-up trying to compete against such a juggernaut, often the only choice is a
form of guerilla warfare.

G. Differentiation in Costs

Competitive pricing needs an understanding that every consumer has a different price range
for which they are willing to spend. Segmentation and differentiation helps a corporation to
come close to maximising the possible revenue by delivering each segment a differentiated
product at a different price. To take into account that the value of a product is a subjective one,
price differentiation (or discrimination) acknowledges that customers, occasions of use, and
operating environments all affect the value they place on a product.

Prices in the business-to-business sector are frequently negotiated, and some clients are willing
to pay more than the going rate. In summary, price discrimination allows a corporation to
capture consumer surplus — the difference between the amount consumers are willing to pay
for a commodity or service and the amount that they actually pay.

9.4. ADVANTAGES OF A DIFFERENTIATION STRATEGY

Differentiation tactics have various advantages that may help you build a unique niche within
your company. The following are some of the potential advantages of developing a strategy
for differentiation:
84 SHOOLINI UNIVERSITY

1) Reduced price competition

A corporation can compete in the market with something other than reduced prices by using a
differentiation strategy. For example, a candy firm may differentiate their product by increasing
the taste or utilising healthier components. However, despite their lower prices, their competitors
can't match the quality or flavour that customers have come to expect from a certain candy maker.

2) Unique products

Using a differentiation strategy, you can capitalise on a product's individuality. An advantage

that your items have over those of your competitors can be listed by your company. Your
product will stand out from the competition if you use these features to your advantage in your
marketing and advertising.

3) Better profit margins

Profit margins can be increased when items are improved and made to stand out from the
competition. For example, if your target market is ready to pay a higher price for top quality
or better value, you may produce more income with fewer sales.

4) Consumer devotion to a certain brand or product

Effective difference may promote brand loyalty in customers if a business maintains the
perceived quality of your items. Customers will be more likely to stick with your brand if it is
promoted by a well-known athlete, for example.

5) No perceived replacements

A strategy that successfully differentiates may present the perception that there is no other
product available on the market to substitute it with. Even if equivalent products are accessible,
a business might acquire an advantage in the market since buyers are unwilling to replace your
offering with another. Unique items that are constantly revolutionised are a common strategy
for businesses looking to stand out from the competition.

9.5. INTEGRATION

Creating a connected company is the goal of integration. Integration is completely in line with
financial information goals and modern comptrollership procedures for organisations and
85 PRINCIPLES OF MANAGEMENT

government. Making shorter, less-structured attempts at strategy formulation is necessary for

developing an integration plan. This indicates that the old method of formulating strategy must
make way for iterative experimentation and rapid prototyping of alternative approaches.
"Connected organisation" is the end result. Integration of business processes is a long-term
endeavour that cannot be completed in a single project. It's all about interconnectedness and
integrated performance information management. Businesses need constant access and use of
knowledge and information for a successful integration plan. Improving the business's operational
processes is at the heart of this approach. Improve the quality and timeliness of information and
make it available when and where it's needed, regardless of the source system. Implementing
integration technologies on a project-by-project basis without an overall strategy for how it all
works together will not bring you to this degree of business agility. In order to rapidly implement
the business strategy, an integration strategy at the enterprise level is required. A key benefit of this
information and resource management method is a decrease in the amount of time and money it
takes to maintain it. In order to integrate processes and controls across the service delivery chain
from a "knowledge viewpoint," organisations acquire and leverage knowledge from interactions
with customers, suppliers, and other stakeholders. Through the deployment of processes, systems,
people, finances, location, and delivery mechanisms, you can optimise service delivery by
connecting horizontal processes and controls across your organisation. Another issue is the inherent
complexity of the process of integrating businesses. There will be a wide range of integration
technologies needed depending on the type of project. There isn't a single solution or technology
that can meet all of your integration demands. In addition, it is impossible to address all of the
current and future integration needs with a single endeavour. There will be an inevitable necessity
to integrate integration technology at some point if you only focus on a tactical approach The
goal of a corporation integration plan is to improve efficiency. While building the framework
for future business agility, it provides a uniform approach to integration that guides
implementation decisions and reduces costs on tactical projects. When a business integration
plan is implemented successfully, the total cost of ownership will be reduced over time.

9.6. TYPES OF INTEGRATION

There are two forms of integration that can be explained by the following discussion:

1) Horizontal

Businesses and corporations who are attempting to offer the same product in multiple markets
are known as "horizontal integrators." These mergers and acquisitions occur when two
86 SHOOLINI UNIVERSITY

companies that are in the same industry and production stage join into one company. As an
illustration, consider the merger of two automobile manufacturers. In this situation, both
companies are in the same industry and at the same stage of production. Scale, scope, and
inventory savings are all possible thanks to horizontal integration. A significant presence in the
reference market is also possible.

2) Vertical

There are two types of vertical integration: horizontal and vertical integration. All of the
products and (market-specific) services produced by the various levels of the hierarchy
work together to meet a specific need. Horizontal integration is the opposite of this.
Backward vertical integration, forward vertical integration, and balanced vertical
integration (horizontal) are the three types of vertical integration.

A. Companies that control subsidiaries that manufacture inputs utilised in the production of
their products display backward vertical integration

B. When a corporation owns the distribution hubs and stores where its products are sold, it
is more likely to engage in forward vertical integration

C. When all of these components are accounted for, a business has a balanced vertical
integration to ultimate delivery, starting with the basic materials.

9.7. BARRIERS TO AND ADVANTAGES OF INTEGRATION

Integration has to confront numerous challenges to be successful. Among these potential

stumbling blocks are:

● Issues coming from the fact that each member states' research legislation differs from
one another

● institutional, pertaining to various expectations in different government entities or

research institutions

● cultural, pertaining to diverse cultures in different member states, linguistic

87 PRINCIPLES OF MANAGEMENT

● professional, involving varied expectations, methods of working, compensation

schemes sand outcomes between different professional groups (for instance
researchers, and government officials)

● infrastructural, concerns incompatible platforms for knowledge exchange

● financial, pertaining to diverse techniques a levels of funding for research and

innovation.

All of these obstacles, however, must be surmounted in order to reap the integration's potential
benefits. These are some of the benefits of integrating:

● Networked Business Models, which link companies that trade value; •

● There should be a focus on core competencies and the acquisition of necessary skills
and assets

● Sustainable economies of scale should be applied to both discrete and integrated

operations.

● Stakeholders and customers must have confidence in one another.

9.8. SUMMARY

• In order for a company to thrive and survive in this competitive business environment,
it must outperform its rivals at every opportunity.
• Different companies use distinction and integration as means of doing this.
• A product or service that is differentiated caters to a certain market segment's wants
and needs.
• A single company can offer a wide range of services and products through integration.
• A loyal client base and a competitive advantage are gained as a result of using this
strategy.

9.9. KEYWORDS

Differentiation: A strategy by which a company seeks to create and promote distinct items for
various target markets.. Typically used when a company has an obvious edge in the market and
88 SHOOLINI UNIVERSITY

can afford a large advertising campaign. In general, any company can use one of three types of
generic marketing strategies:

Integration on the horizontal: Additional company activities at the same value chain level are
acquired through this kind of integration.

9.10. REVIEW QUESTIONS

1) Whenever you're in charge of organising and planning a project, what are the
processes you follow?
2) In today's competitive market, how important is it to have a differentiating strategy?
3) Describe the positives and negatives of the idea.
4) Profits are more likely to be generated by a differentiated strategy than a low-cost
one. Justify your claim.

9.11. FURTHER READINGS

Books:

Alfred D. Chandler, Strategy and Structure, MIT Press, Cambridge: Mass, 1962.

Online link:

https://www.indeed.com/career-advice/career-development/differentiation-
strategy#:~:text=A%20differentiation%20strategy%20is%20an,is%20to%20increase%20com
petitive%20advantage.
89 PRINCIPLES OF MANAGEMENT

UNIT 10: SPAN OF

MANAGEMENT

CONTENTS

• Objectives
10.1. Introduction
10.2. Graicunas’ Theory
10.3. Impact of Span of Managemen
10.4. Factors Determining Span of Management
10.5. Centralisation and Decentralisation
10.6. Summary
10.7. Keywords
10.8. Review Questions
10.9. Further Readings

OBJECTIVES
You will be able to:

● Explain the Graicunas Theory Understand the impact of managerial span

● Find out what influences the length of a manager's career.
● Define centralization and decentralisation and how they relate to each other.
90 SHOOLINI UNIVERSITY

10.1. INTRODUCTION
The terms ‘span of management, “span of control,' and 'span of authority' are all synonyms for
the concept. A ‘subordinates to be overseen and managed by a manager' numerical limit.
Principles such as these are critical to a well-functioning organisation. A French management
consultant, V.A. Graicunas, developed this approach based on his theory of relationships.
Mathematical formula devised by Graicunas based on the geometric growth in the complexity
of managing as number of subordinates increases.

10.2. GRAICUNAS’ THEORY

V.A. Graicunas, a French management consultant, conducted a research on the superior-

subordinate relationship, although it was not based on practical findings. To further understand
this relationship, he devised a mathematical formula. There are more possibilities for
connections with more subordinates, he said.

Graicemas has identified three distinct types of superior-subordinate interactions in any

organisation, which raises the question of how many subordinates a superior can effectively
manage.

They're as follows:

This refers to relationships that are quickly and clearly recognised by the folks who are his
immediate subordinates. In other words, they're the same as the amount of people who are
being overseen. Direct single relationships between A and his subordinates are an example.
This has been denoted as n, which stands for the number of direct connections.

Relationships between the superior and any number of subordinates are referred to as "direct
group relationships" in this context. With any subordinate, or with any number of them, or with
all of them in the room, the manager has several opportunities to meet with them. Every
possible combination of a superior and his subordinates results in this form of interaction.
Relationships between subordinates are called "cross relationships," and they are necessary if
they are to report to the same superior. In order to communicate with one another, the
subordinates of a single superior came to this conclusion. Graicunas devised the following
formula to calculate the total number of all three types of relationships, where n = the number
of subordinates, based on the preceding analysis.
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Graicuna's contribution is significant because he established the notion of limiting the scope
of delegated authority due to the maximum load that may be imposed merely by the inherent
limitations of human mental ability. He came to the conclusion that a'reasonable span' of five
or six subordinates was appropriate. As a result, he sparked interest in this facet of
organisational structure, which eventually sparked a flurry of scholarship.

When it comes to calculating the number of connections, Graicunas provided a

mathematical method. However, his approach has the following flaws:

The formula's mathematical precision is questionable. As the number of subordinates grows,

so does the number of relationships, but there is no exact formula for this.
Relationship stress and frequency have been totally overlooked by Graicunas.
It's probable he's omitted some potential connections mthere is no clear definition of how
long a manager should be in charge.

10.3. IMPACT OF SPAN OF MANAGEMENT

Different abilities and capacities of leadership and communication influence the management
of subordinates. effective and well-trained subordinates affect the degree of management's
range of control.

Different types of labour necessitate a variety of management strategies.

1) Degree of Centralization or Decentralization

The degree of centralization or decentralisation influences the span of management by

influencing the level of participation of superiors in decision-making. Plans that can give
rules and processes for carrying out the work are indicative of a greater degree of planning.
Pattern of communication, its means, and media influence the time required to manage
subordinates and, subsequently, the duration of management.

2) USE OF STAFF ASSISTANCE

Using staff assistance to reduce managers' workload enables them to supervise a greater
number of subordinates. If the subordinate receives supervision from other persons in
addition to his immediate supervisor. This reduces the direct superior's workload, allowing
him to supervise a greater number of people.
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There are two types of sphere of control

A. Narrow Span

The term "narrow span of control" refers to the relationship between a single manager
or supervisor and a small number of subordinates. This results in an expansive
organisational structure.

Fig 10.1 Tall organizational structure

Advantages

● Close supervision

● Tight supervision of subordinates

● Fast communication

Disadvantages

● Too much authority

● Many levels of administration

● High prices

● Excessive separation between the lowest and highest levels

93 PRINCIPLES OF MANAGEMENT

B. Wide Span

A high number of subordinates are supervised by a single manager or supervisor with a vast
span of control. This leads to the formation of a flat organisational structure.

Fig 10.2 Flat organization structure

Advantages

● More Managerial Authority

● Delegation and Training

● Clear policies

Disadvantages

● Strained supervisors

● Peril of superiors loss of command

● Need for highly qualified managerial people

● Obstacle to decision-making
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10.4. FACTORS DETERMINING SPAN OF MANAGEMENT

• When we talk about a supervisor's "capacity," we're referring to his or her ability to

grasp problems quickly and build rapport with the rest of the team, earning him the

respect of everyone. In addition, supervisory capability is influenced by communication

skills, decision-making ability, control power, and leadership skills. As a result, a

superior with these qualities may manage a greater number of subordinates than one

who lacks them.

• If the subordinate is well-trained and efficient in his duties, the organisation can have

a wide range of activities. To put it another way, a manager can effectively supervise a

large number of people by just providing broad guidelines and spending less time on

each individual.

• The Type of Job: As long as subordinates are doing the same thing over and over

again, the boss can enjoy a greater degree of freedom. Even yet, a smaller range of

motion is required if the activity is difficult and the manager is expected to provide

guidance. The length of management also changes as a result of the policy changes. It

is more difficult to manage a large number of employees if the policies change

frequently, but it is easier to manage a large number of employees if the policies remain

constant. As a result, policies and technology play a significant role in deciding the

length.

• Delegating authority to subordinates reduces the manager's obligation to devote time and

attention to them. As a result, the more decentralised an organisation is, the greater the

scope of its administration. Managers are frequently approached for clarifications if

subordinates lack authority, which results in a lot of time being spent by the superior.

• You don't have to constantly consult your subordinates if they are well-informed

about their job responsibilities. This is only feasible due to the fact that they make the
95 PRINCIPLES OF MANAGEMENT

same decisions over and over again. An effective strategy decreases the strain of a

manager twofold and allows them to take on a larger role in the organisation.

• Employing staff support can help managers save time and effort by taking on

administrative responsibilities including data collection, communication processing,

and order issuance on their behalf. Managers can save time and improve their range of

control by doing so.

• It's becoming more common for people to be supervised by more than one individual,

rather than having a single manager for everyone. Managers of all levels of a business

are now responsible for supervising subordinates, including staff members. As a result,

the manager has a high number of subordinates.

• Communication Methods: The mode of communication also influences the length of

management time. The manager's time will be consumed if he or she is expected to

meet face-to-face with each subordinate. As a result, the manager's responsibilities are

limited. However, if the communication is in writing and is gathered by a staff member,

the manager can save a lot of time and have a large number of subordinates under his

control.

10.5. CENTRALISATION AND DECENTRALISATION

When studying business management and accounting, students are likely to have come across
the terms centralization and decentralisation. These are terminologies that are used to denote
the structure of an organisation. Both of these systems work in opposition to one another. The
macro and microeconomic implications of their existence cannot be overstated.

A. Meaning of Centralization

Centralization is a sort of organisational structure where the decision making capability resides
with the top management. A couple of hand-picked individuals are permitted to design
strategies, determine the aims and objectives based on which an organisation will run. Lower-
96 SHOOLINI UNIVERSITY

level personnel in a centralised organisation are expected to follow rules and procedures
established by upper management without inquiry.

The advantage of such a structure is, it allows employees to have a well-defined framework
within which all work must to carried out.

The disadvantage of such a structure is that it increases the time taken to arrive at a choice.
Because the power to make decisions is concentrated in the hands of a few number of people
at the top of the organisation, decisions may be skewed.

B. Meaning of Decentralization

Decentralization is another sort of organisational structure that functions by delegating

decision-making powers to multiple teams across geographies.

At such an organisation, most of the planning, strategy and decision to implement them are
taken by the people in the middle and lower level of management. People are more satisfied
and more productive when they have more freedom to make their own decisions, which is one
benefit of decentralising an organization's decision-making process. Low-level employees can
learn leadership abilities through decentralisation, which will benefit the company in the long
run.

Table 10.1

10.6. SUMMARY

● When it comes to the two extremes of authority operations, decentralisation and

centralization, they are both relative.
97 PRINCIPLES OF MANAGEMENT

● We can no longer imagine a company that is either entirely centralised or completely

decentralised, because authority exists on both sides of the divide.

● Their use in a democratic context would depend on the goals of the organisation, its
lifespan, the nature of its service, and other factors.

● Power and discretion remain concentrated at the highest levels of centralization.

● In the early phases of an organization's growth, centralization works well because it

keeps all components of the organisation operating together in harmony toward a
common goal.

● It also aids in the efficient management of resources and information in times of crisis.

● In large organisations, centralization gets in the way of effective coordination,

communication, and control.

● Decentralisation entails giving up some control and allowing more decisions to be

made at the local level.

● As a result, the pressure on senior executives is reduced and they are able to focus on

the most important concerns.

10.7. KEYWORDS

● Centralisation is the process by which an organization's operations, particularly those

related to decision-making, are concentrated in one location and/or group.

● Conflicts are defined as actual or perceived conflicts between needs, values, and
interests.

● Delegation is the transfer of authority and responsibility to another person (usually a

subordinate) for the purpose of carrying out certain tasks.

● Ability to make prudent decisions with discretion.

● The number of employees who report to a superior is referred to as the span of

management.
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● Overseeing a person's or a group's performance or operation is referred to as

supervision.

10.8. REVIEW QUESTIONS

1) Supervision: mana Define the word "management tenure." How is the optimal span of
management for a specific circumstance determined?

2) Mention briefly Graicunas' recommendations regarding the duration of management.

3) When you become a manager, what factors would you prioritise when determining
your tenure?

4) Absolute centralization and decentralisation are equally imaginary. Discuss. Also

describe the elements that influence the optimal degree of decentralisation. Why?

5) Is a company's decentralisation of decision-making a product of individual

incompetence? Justify your position with reasons. management through monitoring
performance or operation

10.9. FURTHER READINGS

Books

E. Dale, Centralisation versus decentralisation, Advanced Management, June, 195

Online Link:

https://kailash392.files.wordpress.com/2018/04/span-of-management.pdf
99 PRINCIPLES OF MANAGEMENT

UNIT 11: STAFFING AND

COORDINATION

CONTENTS

• Objectives
11.1. Introduction
11.2. Human Resource Management
11.3. Recent Trends in HRM
11.4. Recruitment
11.5. Selection
11.6. Summary
11.7. Keywords
11.8. Review questions
11.9. Further readings

OBJECTIVES
After this you will be able to understand

● Explain the meaning of staffing.

● Discuss the meaning and importance of recruitment, selection, training
● Development is staffing
100 SHOOLINI UNIVERSITY

11.1. INTRODUCTION

Employee recruitment, selection, training, development, and remuneration are all aspects of
management's job in staffing.

The term "staffing" can be used to describe the process of recruiting and training new employees
to fill various jobs in a company. Estimating the number and type of workers needed is part of the
process. It includes determining how many and what kind of employees are needed, recruiting and
training them, and ensuring and increasing their competence and performance. Individuals are
identified, assessed and placed at work in the process of staffing.

Organizational structures are maintained by proper and effective staffing selection, evaluation,
and development, according to Koontz and O'Donnell.

What is staffing? "Filling and maintaining roles in the organisational structure. In order to
accomplish this, it is necessary to define the workforce requirements, inventory the employees
currently on hand, and then conduct recruitment, selection, placement, and promotion
processes as well as appraisals and career planning activities.”

11.2. HUMAN RESOURCE MANAGEMENT

Human Resource is the one of the most crucial resources of the organization. It is often said
that 90% of the business is people. Human resource (HR) helps to create a competitive
advantage in the market. Managing HR is also a very challenging task as it is the only resource
that has the capability to reason. No other resource can stand up and ask reasons for a particular
decision taken by the organization or question the allocation of tasks and resources. Every
individual has a different set of needs, personalities and ambitions.

When an employee becomes a part of the organization, he/she comes as a full packaged
package. That is why dealing with people becomes a very critical task for the management.

According to Dessler, “Human Resource Management is the process of acquiring, training,

appraising and compensating employees and attending to their labour relations, health, safety
and fairness concerns.”

Glueck defines HRM as, “Human Resource Management is concerned with the most effective
use of people to achieve organizational and individual goals.”
101 PRINCIPLES OF MANAGEMENT

11.3. RECENT TRENDS IN HRM

The workplace is undergoing fast transformation. Human resource management (HRM) must
be ready to deal with the effects of a changing work environment as part of the organisation.
For the HR people it involves comprehending the ramifications of globalisation, work-force
diversity, changing skill needs, corporate downsizing, continuous improvement efforts, re-
engineering, the contingent work force, decentralised work sites and employee involvement.
Let's take them one at a time. Globalization and its implications

1) Globalisation and its implications:

Today's business doesn't recognise national borders; it's global in scope. The expansion of
international firms places additional obligations on human resource managers. The HR department
needs to guarantee that the proper mix of people in terms of knowledge, skills and cultural
adaptability is available to manage worldwide assignments. In order to reach this goal, the
organisations must train personnel to handle the challenges of globalisation. The staff must have
working understanding of the language and culture ( in terms of values, morality, practises and
laws) of the host country.

Human Resource Management (HRM) must also establish methods that will help multicultural
individuals work together. As background, language, culture or age differences grow more
prominent, there are indications that employee conflict may increase. HR would have to teach
management how to be more adaptable in their methods. For managers, this means making
adjustments to their current practises in order to accommodate the increasingly diverse
workforce of the future. This would demand managers being trained to notice variances in
personnel and to embrace and even applaud these differences

2) Workforce Diversity

In the past HRM was substantially simpler because our work force was startlingly homogeneous.
Today’s work force comprises of people of different gender, age, social class sexual orientation,
values, personality characteristics, ethnicity, religion, education, language, physical appearance,
martial status, lifestyle, beliefs, ideologies and background characteristics such as geographic
origin, tenure with the organisation, and economic status and the list could go on. Diversity is
critically tied to the organization’s strategic orientation. It is possible to boost an organization's
competitiveness by fostering a culture of diversity that fosters better creativity, decision-making,
102 SHOOLINI UNIVERSITY

and innovation. To that end, a part of the company's compensation plan can be used to help
employees. This comprises HRM offerings that fall under the umbrella of the family friendly
organisation. Having a flexible work schedule and other family-friendly perks like on-site child
care make a company family friendly. Human resource management must take into account the
widening age gap in today's workforce, as well as the inequalities in gender and nationality. Human
resource management must teach people of all ages how to manage and deal with one another while
also respecting the different points of view that everyone has to contribute. In cases like these a
participative approach tends to work better.

3) A shift in the required skill set

A company's competitiveness, efficiency, quality, and ability to effectively manage a diverse

workforce all hinge on its ability to find and train highly talented workers. Skill inadequacies
translate into considerable losses for the firm in terms of poor-quality work and decreased
production, increase in employee accidents and customer complaints. Educators, community
leaders, and other HR professionals will need to know that an increasing number of professions

require more education and a better level of language proficiency than those that are currently
required. The skill gaps and shortages in the workforce must be carefully considered in the process
of developing a strategic human resource plan. To fill in the knowledge and experience gaps, the
HR department will need to develop training and short-term programmes.

4) Corporate downsizing

Whenever an organisation strives to delayer, it is striving to generate higher efficiency. Reducing

the number of people employed by a company is the basic assumption of downsizing. The HR
department plays a critical role in every reduction effort. HRM people must guarantee that good
communication must take place throughout this period. Rumors must be kept to a minimum, and
people must be kept up to date with accurate information. HRM must also deal with actual layoff.
HRM dept is crucial to the downsizing negotiations that needs to take place.

5) Continuous improvement programmes:

Continuous improvement programmes focus on the long term well being of the firm. It's a
method by which a business aims to provide better service to its clients by putting quality first.
This frequently entails a corporate wide initiative to increase quality and productivity. The
company's processes are being re-engineered to put the customer first and to involve its
employees in decisions that directly affect them. Companies try to enhance all that they do,
103 PRINCIPLES OF MANAGEMENT

from hiring excellent personnel, to administrative paper processing, to meeting client

expectations.

6) Re-engineering work procedures for greater productivity:

Although continuous improvement projects are excellent starts in many of our organisations,
they often focus on ongoing incremental improvements. Such action is naturally alluring - the
ongoing and permanent search to make things better. Yet many firms exist in an environment
that is dynamic- experiencing quick and frequent change. Because of this, it is possible that
continuous improvement programmes are not in the company's best interest. They have the
potential to instil a false sense of security in the user. The avoidance of dramatic or quantum
change is the primary goal of incremental transformation in organisations. Such severe
transformation occurs in the re-engineering of the organisation.

7) Workers who are on-call:

A very large element of the present day workforce are the contingent workers. Contingent
workers are persons who are often hired for shorter periods of time. In the event that a
company's workflow is significantly disrupted, they are called upon to execute specialised
duties that typically necessitate the use of specialised knowledge and abilities. Human
resources management (HRM) challenges arise when a business decides to draw a significant
amount of its employees from the contingency ranks. Virtual workers can be accessible when
needed, flexible scheduling can be provided to meet their demands, and decisions can be made
regarding whether or not benefits will be offered to the contingent workforce.

11.4. RECRUITMENT

Recruitment helps bridge the gap between the person who is looking for a job and the organisation
which is offering a job. It is a linkage function, a link between the people who are aspiring for a
job. The search for possible applicants for present or future vacancies is referred to as recruitment.
It is the initial step in the recruitment procedure. The purpose of a recruitment strategy, regardless
of how a firm recruits, is to produce viable applicants who suit the organization's goals and ideals.
As a result, it is advantageous to attract not just a huge number of applications, but a group of
people who possess the requisite abilities for the job.

Recruitment, according to Dale Yoder, is the process of "discovering the sources of personnel
to satisfy the requirements of the staffing schedule and implementing effective strategies for
104 SHOOLINI UNIVERSITY

attracting that manpower in sufficient numbers to permit effective selection of an efficient

working force."

"Recruitment is the first stage in the process, which continues with selection and ends with the
placement of individuals," explains Kempner.

Types of recruiting

There are several types of recruiting. Here’s an overview:

1) Internal Recruiting: Internal recruiting entails filling openings inside an

organisation with existing personnel.

2) Retained Recruiting: When a company hires a recruiting firm, they can do so in a

variety of methods; one of the most prevalent is retained recruiting.

3) When a company hires a recruiting firm to fill a vacancy, they pay a fee up front to
ensure the post is filled. Until the post is filled, the firm is responsible for finding
candidates. The organisation also agrees to work with the firm exclusively. In other
words, a company cannot use multiple recruiting firms to fill the same post.

4) Contingency Recruiting: Contingency recruiting, like retained recruiting, necessitates

the use of an outside business. Contingency recruiting, unlike retained recruiting, does
not require an advance payment. Rather, the recruitment firm is paid only after the
customers they represent are engaged.

5) Staffing Recruiting: Recruiters that work for staffing firms are known as staffing
recruiters. Staffing recruiting connects qualified job seekers with qualified positions.
Furthermore, most staffing firms specialise in short-term or temporary roles.

6) Outplacement Recruitment: Outplacement is a type of employer-sponsored perk that

assists former employees in finding new positions. Outplacement recruiting is intended to
provide resources to displaced employees in their search for new jobs or careers.

7) Reverse Recruiting: When an employee is urged to pursue employment with a

different organisation that is a better fit for their skill set, this is known as reverse
recruiting. To assist workers with this process, we provide Reverse Recruiting Days.
105 PRINCIPLES OF MANAGEMENT

We evaluate resumes, conduct mock interviews, and provide deep dives into specific
job roles at our Reverse Recruiting Days. For more information, go here.

Fig 11.1 Recruitment process

11.5. SELECTION

The selection of new employees from a pool of competent candidates is the next phase in the
hiring process. Managers must identify the applicants with the greatest potential for success in
the firm after collecting a big, qualified applicant pool through recruitment.

Selective recruiting is important because it lowers future employee turnover, lowers expenses,
and boosts morale and productivity. Managers construct a list of important criteria for each
role, which includes critical abilities, behaviours, and attitudes. In addition to technical abilities
106 SHOOLINI UNIVERSITY

and competencies, managers should choose applicants based on how they believe they will fit
into the organization's culture.

The goal of selection is to find the best candidate for the position, one who can meet the
requirements of the job and will be a successful application.

It is critical to analyse numerous qualities of each candidate, such as their qualifications,

abilities, experiences, overall attitude, and so on, in order to meet the organization's goals.
Following the removal of candidates who are unsuitable for the empty position, the most
suitable candidate is chosen.

The process of selecting or choosing the best candidate for a vacant employment position in a
company is known as selection. In other terms, selection can be defined as the process of
interviewing individuals and assessing their qualifications for a given position.

The selection of the best candidate for a vacant position will be a valuable asset to the business,
assisting it in achieving its goals.

The goal of selection is to find the best candidate for the position, one who can meet the
requirements of the job and will be a successful application. It is critical to analyse numerous
qualities of each candidate, such as their qualifications, abilities, experiences, overall attitude, and
so on, in order to meet the organization's goals. Following the removal of candidates who are
unsuitable for the empty position, the most suitable candidate is chosen.

Because a significant amount of money is spent on selecting the correct candidate for a position,
the business must follow a good selection process or method. If a hiring decision is made
incorrectly, the expense of inducting and training the incorrect candidate will be a significant
financial, time, and effort loss for the organisation. As a result, selection is critical, and the process
must be flawless for the organization's benefit.

Dale Yoder explained,

"Selection is the process by which job seekers are separated into two classes: those who will
be provided work and those who will not,"

David and Robbins explained,

"The selection process is a managerial decision-makng process to forecast which job

candidates will be successful if employed," David and Robbins explained.
107 PRINCIPLES OF MANAGEMENT

Table 11.1

11.6. SUMMARY

● Recruitment is the process of finding and enticing potential job candidates to apply
for current or anticipated job opportunities.

● Employee referrals, promotions, rehiring, and succession planning are examples of

internal sources of recruiting.

● This includes job portals, adverts and recruitment firms as well as college campuses
and the internet.

● Recruiting begins with a plan, followed by strategy formulation, searching, screening,

and evaluation, and finally control.
108 SHOOLINI UNIVERSITY

11.7. KEYWORDS

● Recruitment is a group of operations undertaken by a company in order to

attract the most qualified individuals for a given position.

● The number of applicants, the ratio of candidates to be selected, etc. are

examples of recruitment objectives.

● Methods of attracting new employees: There are both internal and external
methods.

11.8. REVIEW QUESTIONS

1) What is recruitment and what is its relevance in the organization?

2) Explain the recruitment process.

3) What is selection

4) What is the difference between recruitment and selection.

11.9. FURTHER READINGS

Books

Aswathapa, K.(2008), Human Resource Management, 5th edition, Tata McGraw Hill.

Pande, S & Basak, S. (2012), Human Resource Management, 3rd edition, Pearson.

Online link:

https://nicoletcollege.pressbooks.pub/humanresourcemanagement/open/download?typ e=pdf
109 PRINCIPLES OF MANAGEMENT

UNIT 12: COORDINATION

CONTENTS

• Objectives
12.1. Introduction
12.2. Concept of Coordination
12.3. Principles of Coordination
12.4. Coordination Process
12.5. Types of Coordination
12.6. Issues and Systems Approach to Coordination
12.7. Techniques of Coordination
12.8. Summary
12.9. Keywords
12.10. Review Questions
12.11. Further Readings

OBJECTIVES

After this you will be able to understand

● How would you describe the idea of coordination?

● The method and type of coordination should be discussed.

110 SHOOLINI UNIVERSITY

12.1. INTRODUCTION

The process of arranging, putting things in order, or ensuring that things work smoothly in
conjunction with one another is known as coordination. In reality, fencing requires a high level
of hand-eye-foot synchronisation as well as mental focus and concentration.

There are others who want to spice up their cohesion. In any case, coordination is all about
making things work together, whether you're planning a lavish party or just practising your
swing with your hands and eyes working together. Organizing your calendar, practising yoga,
or hiring a personal assistant can all help you feel more in control of your day.

12.2. CONCEPT OF COORDINATION

"Coordination is the ordered structuring of group efforts to produce unity of action in the
pursuit of a single aim," say Mooney and Reiley.

'To coordinate, means to combine and link all actions' says Henry Fayol.

It is the process by which an executive builds an ordered pattern of group efforts among his
subordinates and ensures unity of action in pursuit of a shared goal, according to McFarlane.

The following are critical components of coordination, as defined by the aforementioned

definitions:

1) Efforts to achieve a goal are coordinated when they are made with the intent of
achieving that goal in mind.

2) The term "coordination" refers to the synchronised ordering of the output of a group,
rather than an individual.

3) When a group is involved in a task, coordination is required. If an individual worked

alone, this wouldn't be necessary.

4) When a business is originally being established, a coordinated effort begins and

continues until the business is shut down.

5) All managerial functions require coordination. Managers must make sure that no task
is left unattended when planning their workday. Managers are responsible for ensuring
that qualified individuals are available to perform given tasks. Managers are responsible
111 PRINCIPLES OF MANAGEMENT

for coordinating the work of their employees and enticing them with the right
incentives. Managers are responsible for ensuring that all actions inside their
organisations are carried out according to plan, at the appropriate time, and in the proper
manner. As a result, coordination permeates every executive role.

12.3. PRINCIPLES OF COORDINATION

Mary Parker Follet has presented a number of coordination concepts in this manner:

• Principle of direct contact Mary Parker Follet states in the first principle that
coordination can be done via direct interaction between the relevant parties. With direct
interpersonal interactions and direct personal conversations, she thinks that
coordination may be easily achieved
• Early stage: Coordination should begin as early in the planning phase as possible. For
policy formation and goal setting, coordination can be sought from the organisation
participants. Clearly, the problem of coordination is 90% handled when members are
active in goal-setting and decision-making.
• Reciprocal relationship: Mary Follet's third concept is that all aspects in a situation
are connected in some way. As a result, all of the pieces influence and are affected by
each other.
• Principle of Constancy: According to Follet, the process of coordination is a continual
one that never comes to a conclusion. It's a process that needs to be ongoing at all times.
Managerial functions all require collaboration.
• Principle of self-coordination: Notes Brown has emphasised the idea of self-
coordination in addition to the four principles outlined by Follet above. According to
this theory, when one department or function has an impact on another, the other
department or function is also influenced. The other departments may not be under this
department's supervision. The process of arranging, putting things in order, or ensuring
that things work smoothly in conjunction with one another is known as coordination.
In reality, fencing requires a high level of hand-eye-foot synchronisation as well as
mental focus and concentration.

There are others who want to spice up their cohesion. In any case, coordination is all about
making things work together, whether you're planning a lavish party or just practising your
112 SHOOLINI UNIVERSITY

swing with your hands and eyes working together. Organizing your calendar, practising yoga,
or hiring a personal assistant can all help you feel more in control of your day.

12.4. COORDINATION PROCESS

Coordination cannot be obtained through coercion or imposition. Coordination by executive

orders is an exercise in futility. It is attainable through interpersonal, side-by-side partnerships.
The process of achieving effective coordination is sequential. It is only feasible if the following
requirements are met.

1) Clearly defined and understood objectives

Each individual and department must be aware of the organization's expectations. The
objectives for the firm as a whole must be articulated by the top management. According to
Terry, "there must be a shared objective in order to unify efforts." The enterprise's numerous
plans must be interconnected and developed to complement one another.

2) Proper division of work

The overall amount of work must be divided and assigned to persons in an appropriate manner.
The maxim "a place for everything and everything in its place" is applicable here.

3) Good organisation structure

The many departments within the organisation must be grouped in such a way that the work
flows smoothly from one phase to the next. Too much specialisation may make coordination
difficult.

4) Transparent authority delegation

authority must be delegated in a clear manner. The individual must be aware of his superior's
expectations (s). After accepting leadership, the subordinate must be held accountable for
results in his area of responsibility. There should be no opportunity for authority overlap or
wasted effort (s).

5) Regular and timely communication

Personal touch is often regarded as the most effective kind of communication for attaining
coordination. In order to provide timely and correct information to different groups within an
113 PRINCIPLES OF MANAGEMENT

organisation, other forms of communication, such as records and reports, may also be used.
Individuals may speak as much as feasible in the "same language" if they adopt common
nomenclature.

6) Sound leadership

According to McFarland, genuine coordination can only be done with the help of effective
leadership. In order to achieve this objective, upper management must be able to create I a
suitable work atmosphere, (ii) proper task allocation, (iii) rewards for good performance, etc.
It must convince subordinates to share common goals and adopt a unified perspective.

12.5. TYPES OF COORDINATION

The whole rundown on the many types of coordination and everything you need to know about
them. The term "coordination" refers to the process of bringing together all of the efforts,
activities, and forces that are at work within and outside of an enterprise.

The idea of coordination is a time-honored one that was conceived throughout the formative
years of the formation of management theory. Management is responsible for many key
responsibilities, one of the most crucial of which is coordination. Henri Fayol, James Moorey,
and a number of other management writers emphasised how important it is for large and small
economic companies to coordinate their efforts. They view an organisation as a system of
coordinated group efforts, which implies that there must be coordination across all of the
efforts.

1. Internal and External Co-Ordination:

Coordination occurs both internally and externally to the enterprise. Internal coordination takes
place within the enterprise among the various units. Coordination is required not only between
individuals within a group or department but also between departments within a business, as well
as between branch offices, manufacturing units, and other components of an organisation.

Every aspect of management needs to have its own component of coordination. For instance,
all of the business enterprise's departments' plans need to be coordinated with one another. In
a similar vein, the coordination of people's activities would need to be done well in order to
achieve the desired results. If there is sufficient coordination inside an organisation, then the
114 SHOOLINI UNIVERSITY

process of determining the amount of manpower that is needed as well as recruiting, selecting,
and placing that manpower will be successful.

Measurement of performance, correction of unfavourable deviations, and assurance of

successful completion of plans are all aspects of the control function, which is responsible for
regulating the overall course of the business. In addition to this, it highlights the areas in which
additional collaboration is needed to refine the plans and effect changes in the organisation that
are appropriate.

2. Vertical and Horizontal Coordination

Establishing an Efficient Business Organization Establishing an effective business organisation

is key to the performance of your corporation and for making important decisions regarding
the owner of a firm. Vertical and horizontal coordination: The two most typical formats for
organisational structures are known as vertical and horizontal alignments.

Understanding the distinctions between the two can assist you in making a decision that is
optimal for achieving your professional objectives. The Vertical approach employs a
management structure that works from the very top down, whereas the Horizontal orientation
employs a level design that places an emphasis on the superior employees' autonomy.

12.6. ISSUES AND SYSTEMS APPROACH TO COORDINATION

An organisation is broken down into its three primary components—its actors, its goals, and
its resources—by using the systems method. The actors, which include management,
employees, customers, and suppliers in addition to other stakeholders, are responsible for a
variety of interdependent operations with the end goal of accomplishing specific objectives.

Coordination of several actors and interactions, resources and goals is required in order to
achieve the outcomes that are sought by all parties involved. When viewed through the lens of
the necessity to keep things in perspective and find solutions to difficulties that may result from
the presence of several factors, the concept of systems thinking is inextricably linked to the
practise of coordinating. Coordination issues arise when there are multiple actors involved in
an organisation. Problems with coordination arise as a direct result of dependencies within the
organisation, which in turn limit how effectively tasks can be completed.
115 PRINCIPLES OF MANAGEMENT

Organizations can be thought of as systems in the sense that they are made up of components
that work together to generate a specific pattern of behaviour or result. A modification to a
component of a system may prevent other components of the same system from operating as
effectively as they should or may affect the required input or output parameters.

According to the coordination theory, the answer to problems with coordination resides in the
actors conducting additional tasks known as coordination mechanisms. According to this idea,
dependencies and the techniques that might be used to combat them are universal in the sense that
they manifest themselves in some shape or form in the vast majority of organisations.

The following is a simplified taxonomy of the types of dependencies that may require
coordination inside an organisation:

• Task-task: Tasks may have outputs that overlap, conflict, or have the same
characteristics; common inputs for tasks may be shareable, reusable, or not reusable;
the output of one task may be the input of other tasks or a prerequisite for performing
subsequent tasks. 2. Common inputs for tasks may be shareable, reusable, or not
reusable. 3. The output of one task may be a prerequisite for performing subsequent
tasks. 4. The output of one task may be There is a possibility of a disagreement on the
requirements, which will call for coordination.

• Task-resource, also known as the resources that are necessary for a task.

• A situation in which one resource depends on another resource is referred to as a

resource-resource relationship. In order to effectively handle any of these dependencies,
an adequate coordination mechanism is required.

In conclusion, the management of various dependencies among activities, resources, and goals
is required for the solution of organisational problems, the implementation of change, or the
establishment of a new organisation.

12.7. TECHNIQUES OF COORDINATION

1. Clearly Defined Goals

The organization's goals must be defined clearly. The aims of the company must be known by
the individuals. Organizational goals can be more easily achieved when everyone is informed
of their responsibilities.
116 SHOOLINI UNIVERSITY

2. Coordination
Is made simpler by voluntary cooperation among the organization's members. This is known
as cooperation.
Cooperation takes happen in the organisation through ensuring amicable ties among the
peoples. The informal interactions accelerate up the activity of the cooperation. As a result,
this needs to be promoted within the company.

3. Harmonized Policies and Practices

Policies, procedure and regulations provide as guidance for decision- making in a continuous
manner. Only the unified policies and procedure are beneficial to attain the goals of the
organisation.

4. Sound Organisational Structure

Sound organisational structure are also known as a technique of the coordination. This is the
result of well defined powers and responsibilities in the organisation. Such organisation does
not produce any trouble and nearly argument free.

5. Managerial Hierarchy

Is also in charge of coordination in the organisation. At each level superior coordinate the
actions and efforts of subordinates by methods of authority.

6. Communication System

A good communication system encourages cooperation and mutual understanding between

individuals and groups. As a result, efficient coordination is made possible since every
component of the organisation is made clear to every member of the workforce.

7. Liaison officer

Liaison officers are appointed in the organisation to promote the collaboration between
different sectors, units and groups. These officers iron out the impediments of smooth
coordination.
117 PRINCIPLES OF MANAGEMENT

12.8. SUMMARY

● Coordination is the method by which a manager ensures that all of an organization's

activities are coordinated.

● Unity of activity is achieved via an intentional and planned mixing of actions.

● Improved human connections and inter-departmental harmony can be achieved

through coordination.

● Direct communication and human ties are the most effective means of achieving
cohesion.

● Clear objectives, efficient job allocation, a sound organisational structure, distinct lines
of authority, clear lines of communication, and strong leadership are all part of the
coordination process

12.9. KEYWORDS

● People or objects working together to achieve a common purpose or result are

referred to as "coordinating."

● Cross-departmental coordination at similar levels is known as "horizontal

coordination."

● Coordination between the highest and lowest levels of an organisation in order to

achieve organisational goals is known as vertical coordination.

12.10. REVIEW QUESTIONS

1) All resources have to be coordinated and integrated to achieve specified goals in

management. Explain.

2) "The essence of management is coordination." Do you think so? Give reasons.

3) When information and collaboration are combined, "coordination is the result".

Discuss.

4) Tell us about your work in the field of facility and space management.

5) Using an example, demonstrate the concept of self-coordination.

118 SHOOLINI UNIVERSITY

12.11. FURTHER READINGS

Books:

W.L., Human Resource Management, 4th Ed., Houghton Miffin, Boston, 1990.

Online link:

https://www.toppr.com/guides/business-management-and-
entrepreneurship/direction-and-coordination/concept-and-features-of-
coordination/#:~:text=Coordination%20is%20the%20function%20of,achieve%
20the%20organization's%20objectives%20efficiently.
119 PRINCIPLES OF MANAGEMENT

UNIT 13: DIRECTING

CONTENTS

• Objectives
13.1. Introduction
13.2. Meaning
13.3. Importance of Directing
13.4. Principles of Directing
13.5. Process of Directing
13.6. Functions of Directing
13.7. Summary
13.8. Keywords
13.9. Review Questions
13.10. Further Reading

OBJECTIVES

After this you will be able to:

• Discuss the importance and functions of Directing

• Explain the process of Directing
• Discuss the principles of directing
120 SHOOLINI UNIVERSITY

13.1. INTRODUCTION

Directing is a particularly challenging work of management compared to all other

responsibilities since it is dealing with the human component of management. When all other
preparations have been accomplished, the management has to commence the working of the
concern.

Directing is the centre of management process. Planning, organising and staffing are only
preparations for completing the work and work actually starts when the directing is done. It is
the directing function which initiates ordered action. It guarantees that subordinates execute
their work as expected.

Directing is a managerial job which is largely concerned with influencing directing, overseeing and
inspiring employees in a planned manner. It is conducted by all managers of different levels of an
organisation. It comprises assignment of duties, issue of instructions and directives, supervising
the subordinates and repairing the faults in time.

13.2. MEANING

To put it another way, leadership involves laying out a plan for others to follow in order to
achieve a specific goal. It's the process of accomplishing tasks by following directions and
placing orders. The subordinates are led, motivated, communicated, supervised, loaded, and if
necessary, commanded in order to complete their tasks. To ensure that work proceeds in
accordance with established policies and programmes is the ultimate goal of leadership.

In Ernest Dale's words, "Direction is telling people what to do and ensuring that they do it to
the best of their ability”

"It encompasses a variety of responsibilities including as delegating tasks, explaining

procedures, ensuring that errors are remedied, and issuing directives," says the dictionary. A
director's job includes many tasks aimed at encouraging their subordinates' short-term and
long-term effectiveness and efficiency, as explained by Koontz and O'Donnell.

J.L. Massie – “Directing concerns the total manner in which a manager influences the actions
of subordinates. It is the final action of a manager in getting others to act after all preparations
have been completed.”
121 PRINCIPLES OF MANAGEMENT

Urwick and Brech – “Directing is the guidance, the inspiration, the leadership of those men
and women that constitute the real core of the responsibilities of management.”

It's thus a complicated and practice-based job. It is a skill that can only be honed through years
of practise.Management centres on directing. Planning, organising, and staffing are
preparations for completing the work, which begins after directing. Directing starts organised
activity. It guarantees subordinates' work.

Faculty direction can hinder planning, organisation, and personnel. It hinders goal-setting.

Directing helps coordinate business processes. Directing promotes teamwork among

employees. It helps plan, organise, and staff. Directing links these functions to controlling.

It's a crucial part of management. It starts actions, helps

individuals maximise their potential, combines individual efforts, supports organisational
transformation, and provides stability and balance.

13.3. IMPORTANCE OF DIRECTING

Starts an Action: Directing is the only means by which an organisation may take action. It is
up to the managers to tell their subordinates what they should be doing, how they should be
doing it, and when they should do it.

Rewarding Efforts

Through compelling leadership and effective communication, directing integrates the efforts
of all employees and departments toward the achievement of company goals.

Energises the workforce

Subordinates are encouraged to perform at their highest level by their manager. By offering
them both money and non-financial incentives, he is able to keep his employees motivated.

Offers a Base of Support

The importance of stability cannot be overstated. Co-operation and commitment among

employees are fostered through effective directing, which also helps to maintain a balance
between different departments and groups.
122 SHOOLINI UNIVERSITY

Adapting to the New

Employees are notoriously averse to any form of organisational change. However, in order for
an organisation to thrive, it must be able to adapt to changes in the environment. Using
motivation, good communication, and leadership, a manager can help his or her people grasp
the nature and content of change, as well as its positive effects. This will allow for a smooth
transition from the old to the new without causing any friction.

It's important to make the most of your resources

It entails precisely outlining the duties and responsibilities of each subordinate in order to
eliminate waste, duplication of efforts, etc., and to make the best use of human, mechanical,
material, and financial resources. Reduces costs and boosts profit margins

13.4. PRINCIPLES OF DIRECTING

• Individual Contribution to the Team as a Whole: Individual participation is a

fundamental guiding element in the practise of directing. Management should
implement rules that encourage people to work to the best of their abilities in order to
meet the organization's objectives.
• Consistency of Purposes: There are occasions when the goals of an organisation and
the goals of an individual are at odds. Employees, on the other hand, may believe that they
deserve a large portion of the company's profits as a bonus because they've worked so hard
for it. Directing plays a critical function in ensuring that the goals of the two parties are
in sync and coordinated.
• Consistency of Direction: A subordinate should only receive orders from one superior
at a time, according to this rule. Organizational chaos will ensue and his ability to prioritise
his task will be severely impaired by receiving instructions from multiple superiors at the
same time
• Directing Techniques in the Correct Way: This is one of the basic guiding
principles of management, which asserts that managers should utilise a variety of
approaches to manage, lead, interact with, and encourage their people according on the
specific requirements, abilities, attitudes, and circumstances of each individual.
123 PRINCIPLES OF MANAGEMENT

• Communication between managers: Employees should be instructions they have

been given have been understood correctly, guiding concept checked to see if the in
accordance with this
• The Use of Informal Organizations: Informal groups and organisations exist within
every formal institution. Those groups should be identified by the manager, and
information should be communicated to them. It is critical for a company's growth that
information is freely exchanged between senior management and lower-level
employees.
• In order to succeed, you must be a leader: them work as they wish, managers must
have tenet of the art of directing. In order to influence their employees and have strong
leadership qualities. It's a fundamental
• Stick to Your Plan: Managers are expected under this concept to keep an eye on how
closely their employees adhere to policies, procedures, and instructions. It's possible to
make modifications if there are any implementation issues.

13.5. PROCESS OF DIRECTING

Setting and Defining Objectives: is the first step in establishing direction. After defining the
goals, the manager translates and communicates them to the team.

It's also important for managers to organise their employees' efforts: Analyzing
activities, decisions, and relationships allows him to define and understand them, and then he
uses his own definitions and interpretations to help him find ways to provide better guidance,
better supervision, and more effective direction.

Director measures work: creates yardstick, and communicates results based on an evaluation
of employees' performance at their jobs.

The final and most crucial role of a manager is to grow their employees: especially
those who work with them, in the directing process. He instructs his subordinates to improve
their personal integrity, share knowledge about the profession, and provide training so that they
can do the tasks they have been given.

There is also guidance for the man at work to have self-confidence. His accomplishment is a
sign that he has handled the situation well. Having a well-organized, well-trained, and well-
124 SHOOLINI UNIVERSITY

respected workforce ready to take on a project with the expectation that it will be completed
on time and to the satisfaction of the client is the result of good management.

13.6. FUNCTIONS OF DIRECTING

In order to "direct," one must "point or aim;" "point out right direction"; "guide," "order," or
"order"
The human factor is a primary focus of direction and oversight. The company's human
resources are essential to successful management. Direction should make maximum use of
human ability and motivation while avoiding excessive reliance on coercion and external
control.

● Working with others to mobilise and synthesise their labour, initiative, and
resourcefulness and then providing them with a goal and an avenue to realise that
objective is the responsibility of the guiding function. Managers use their subordinates
as raw materials. An enterprise that is expanding and prospering must be built using
these people as the building blocks.
● The role of a manager, particularly in a more liberal management style, is to motivate
and direct. Every employee has a smouldering ember that has to be sparked, ignited, or
rekindled.
● Individual and group goals must be integrated with the organization's overarching
objectives in order for the directing function to be effective.
● The most important role of a manager is to lead people. Managing a huge company
might be time-consuming, but a manager can't avoid the responsibility of providing
informed direction to the employees that report to him. In fact, his success as a manager
is entirely based on his ability to successfully direct and lead the two management
talents that make up management.
● More broadly speaking, directing means giving individuals at work direction and
motivation so that they can fulfil the tasks for which they have been assigned. Manage-
ment in action begins with the directing phase, which is at the core of the entire process.
To direct someone is to give them instructions and then watch over them as they carry
them out to the best of their abilities.
● Directing ensures that the assigned work is completed by each employee. Making
assignments, outlining processes and providing instructions on the job are all part of
125 PRINCIPLES OF MANAGEMENT

this role. It also involves making sure that mistakes are corrected on the spot. Planned
and organised effort is merely a prelude to actual performance.
● For organised human activities, they prepare the groundwork. The manager is
responsible for directing, motivating, and leading his subordinates to carry out the
assigned tasks with enthusiasm and to strive for the specified goals.

13.7. SUMMARY

● Directing refers to a process or technique of instructing, guiding, inspiring, counselling,

overseeing and leading people towards the accomplishment of organizational goals.

● Employees have a tendency to resist any kind of change in the organization.

● But, adapting the environmental changes is necessary for the growth of the
organization.

● A manager through motivation, proper communication and leadership can make the
employees understand the nature and contents of change and also the positive
aftermaths of the change

● One of the main principles of directing is the contribution of individuals.

● Management should adopt such directing policies that motivate the employees to
contribute their maximum potential for the attainment of organizational goals.2.

● Sometimes there is a conflict between the organizational objectives and individual

objectives.

● Here, directing has an important role to play in establishing harmony and coordination
between the objectives of both the parties.
This principle states that a subordinate should receive instructions from only one
superior at a time.

● Technique Among the principles of directing, this one states that appropriate direction
techniques should be used to supervise, lead, communicate and motivate the employees
based on their needs, capabilities, attitudes and other situational variables.

● It is one of the important principles of directing.

● Follow Through as per this principle, managers are required to monitor the extent to
which the policies, procedures, and instructions are followed by the subordinates.
126 SHOOLINI UNIVERSITY

13.8. KEYWORDS

● Directing is the practise or skill of training, guiding, inspiring, counselling,

supervising, and leading individuals to achieve organisational objectives.
● Directing is to point or aim; to point out proper course to; to guide; to order; to plan
and to supervise, counsel, command.
● Directing is the heart of management process

13.9. REVIEW QUESTIONS

• Direction takes place at all levels of management.

• Directing is the heart of management process, explain?
• What is the difference between Directing and Staffing?

13.10. FURTHER READING

Books

Bright .D (2019), Principles of Management, Houston, Texas : OpenStax, Rice University.

Online link:

https://books.google.co.in/books/about/Principles_of_Management.html?id=ZE7zxQEACAA
J&redir_esc=y
127 PRINCIPLES OF MANAGEMENT

UNIT 14: CONTROLLING

CONTENTS
• Objectives
14.1. Introduction
14.2. Concept of Control
14.3. Relationship between Planning and Control
14.4. Types of Control
14.5. Control Techniques
14.6. Programme Evaluation and Review Technique
14.7. Summary
14.8. Keywords
14.9. Review Questions
14.10. Further Readings

OBJECTIVES

After completing this Chapter, you will be able to:

• Assess the relationship between planning and control

● Discuss the control procedure
● Describe many methods of control
● Discuss control techniques
128 SHOOLINI UNIVERSITY

14.1 INTRODUCTION

Keeping everything under control is an essential component of management. It is the procedure

that evaluates performance at the present time and directs it toward some goals that have been
established in advance. Control was only exercised when something went wrong under the
primitive management style, and the goals of control were to punish the individual responsible
for these events and take action against him. The modern idea of control envisions a system
that not only provides a historical record of what has happened to the business as a whole, but
also identifies the reasons why it has happened and provides data that enable the manager to
take corrective steps, if he finds that he is on the wrong track. In other words, the system not
only provides a historical record of what has happened, but also

the reasons why it has happened. As a result, the purpose of this investigation is not to punish
the person for their misbehaviour, but rather to determine the gaps that exist between their
actual performance and their expected performance, and then to devise strategies to close those
gaps in the future.

It is common for the idea of control to be misconstrued with the absence of freedom. It is not
freedom that is the opponent of control but rather disorder or anarchy. Control and freedom
are not mutually exclusive concepts. In point of fact, they are dependent upon one another.
Freedom cannot exist for an extended period of time apart from control. If there is no freedom,
then control cannot be effective. The idea of control incorporates not only liberty but also
responsibility within its framework.

14.2. CONCEPT OF CONTROL

Control is the process that managers go through to ensure that the actions that really take
place are consistent with the activities that were planned. According to Breach, "Control is
assessing current performance against predetermined standards contained in the plans, with
the aim of guaranteeing adequate progress and satisfying performance." (Control is
evaluating current performance against predetermined standards contained in the plans)

"Controlling involves determining what is being completed, that is, evaluating the
performance, and if required, taking corrective measures so that the performance takes place
according to plans," says George R. Terry.
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Management control, as described by Billy E. Goetz, is to "compel occurrences to comply

planned."

Management control is the process that managers employ to ensure that resources are
collected and used in an effective and efficient manner, as stated by Robert N. Anthony.

"Managerial control" is defined by Koontz and O'Donnell as "the measurement of

accomplishment against the standard and the correction of deviations to insure the attainment
of objectives according to plans."

14.3. RELATIONSHIP BETWEEN PLANNING AND CONTROL

The processes of planning and controlling are inextricably linked to one another. The
objectives of the organisation are determined through the planning process, and the
controlling process ensures that they are met. The planning phase determines the control

process, while the controlling phase lays a solid foundation for the planning phase. In practise,
planning and controlling are inextricably intertwined and mutually reliant on one another.
According to the words of M.C. Niles, "Control is a facet and projection of planning. Whereas
planning determines the course, control notices deviations from the course, and starts action to
return to the intended track or to a suitably altered one."

The connection between planning and control can be broken down into its component parts
as follows:

The Planning Stage Is Where Control Begins: During the planning phase, objectives and
targets are established. A control procedure is required in order to successfully meet these
objectives. Therefore, planning comes before controlling.

Controlling ensures that planning is successful: since controlling determines the path
that planning takes. The act of controlling draws attention to the parts of the process that
require planning.

The control process supplies information that can be used for planning: During the
controlling process, the actual performance is compared to the standards that were
established, and any variations that are found are recorded. The data gathered for the
purpose of exerting control are also utilised in the planning process.
130 SHOOLINI UNIVERSITY

Planning and controlling are interconnected in the following ways: The first task that
must be completed by managers is planning. For the purpose of putting plans into action, the
other functions, such as organising, staffing, and directing, are arranged. Control keeps a
record of the actual performance and evaluates it in relation to predetermined standards. In
the event that the performance is lower than the standards that were established, deviations
will be determined. In order to enhance the performance going forward, the appropriate
corrective actions have been performed. The first step in any process should be planning,
and the last step should be control. Both must have the other in order to function properly.

Planning and control involve looking towards the future: Both planning and control
are concerned with the actions that will take place in the future within the firm. Planning is
always done with an eye toward the future, and control likewise looks ahead. The only thing
that can be controlled is the future; the past cannot be changed in any way. The
accomplishment of a company's objectives is the primary focus of both planning and
controlling. Through their combined efforts, they hope to achieve the highest possible output
at the lowest possible cost. To accomplish the objectives of the organisation, methodical
planning and well-organized controls are both necessary components.

Steps in Control Process

The control process is the mechanism that allows any company operations to be set,
measured, matched, and adjusted. These activities include production, packaging, delivery,
and others.

4 Steps of Control Process are;

A. Establishing Performance Measurement Standards and Methods

By definition, standards are nothing more than performance criteria. Managers don't
have to monitor every stage of the execution of plans because they can receive
indications about how things are doing at the designated moments in a whole planning
programme when performance is measured.

Standard elements are critical in the creation of well-defined goals with clear
measurements. Sales and production goals, employee attendance, safety records, and
other metrics are all examples of standards in an industrial setting The number of times
131 PRINCIPLES OF MANAGEMENT

a customer has to wait in line at a bank or the amount of new consumers a revised
advertising campaign brings in are examples of standards in the service industry.

B. Keeping Track of the Results

In order to prevent deviations from standards from occurring in the future,
performance should be measured with an eye toward the future.

C. Making sure that performance is in line with what is expected

The control process begins with a simple but critical step: determining whether or not
the performance meets the standard.

It entails making a comparison between the measured data and previously established
norms. As long as the criterion is met, managers may believe "all is well". Managers
do not need to get involved in the day-to-day operations of the company in this
situation.

D. The Implementation of a Remediation Plan

Step 2 becomes critical if the analysis suggests that corrective action must be taken
because of poor performance..There could be a change in one or more of the
organization's operational activities as a result. Example, to satisfy the five-minute
client wait time guideline, a bank branch manager, for example, might realise that
more counter clerks are needed. In some cases, a modification in the original standards
may be necessary rather than a change in performance to fix the problem.

Without seeing the process through to its conclusion, management is simply

monitoring performance rather than taking a hands-on role in directing the
organisation.

14.4. TYPES OF CONTROL

The vast majority of control strategies can be placed into one of these two primary categories:

1) Controls that are based on the past.

2) Controls with an eye toward the future

132 SHOOLINI UNIVERSITY

1) Controls that are based on the Past

These controls measure the outcomes of the process and are sometimes referred to as post-
action controls. They investigate the events that took place within a specific time period in
the past. These controls can be utilised in order to plan future behaviour in light of either the
achievements or failures of the past.

2) Controls with an Eye to the Future

These controls, which can also be referred to as steering controls or feed-forward
controls, are intended to measure results as the process is being carried out in order to
allow for action to be taken prior to the completion of the task or the end of the period.
They act as warning-posts with the primary purpose of directing attention rather than
performing evaluations, for example, cash flow analysis, funds flow analysis, network
design, and so on.

14.5. CONTROL TECHNIQUES

Personal Observation

The most effective, direct, and oldest mode of management is

personal observation of subordinates' real performance at work. A dialogue with the people

whose work is being monitored, as well as observation of the actual activities, is required of
supervisors.

Costing as a Rule

The amount of money a business is able to keep as a profit is based on how much it has to
spend on production. The variance is the gap between the actuals and the standards in the
system.

• Establishing cost guidelines for various components of cost, such as raw materials,
labour, and so on
• Observation of real results.
• A comparison of the actual cost to the standard cost is done in (c)
• Calculating the difference between actual and standard costs.
133 PRINCIPLES OF MANAGEMENT

• Identifying the variables responsible for the observed variation.

• Taking action to prevent future variance.

Responsibility Accounting

A system of accounting under which each departmental head is held accountable for the
performance of his or her department might be described as responsibility accounting.

Reports

The preparation of reports is a significant aspect of the control process, providing information to
the management for control and planning purposes.

Standard observation

An further tool utilised by management is the adoption of standard operating procedures,

regulations, and constraints. Management issues them, and employees are expected to abide
by them.

14.6. PROGRAMME EVALUATION AND REVIEW TECHNIQUE

Organizations use the Program Evaluation and Review Technique (PERT) to assess and
portray project activity and to depict the sequence of events. PERT is a way for evaluating
and estimating the amount of time it will take to perform a given task.

Event analysis and planning are made easier with the help of PERT. In addition, PERT
depicts the project's operations and interdependencies. Projects can be completed for less
money and time by using PERT

It's explained in detail by Techopedia how to do a programme review (PERT). The U.S.

Navy created PERT in 1950 as a tool for huge projects during the Cold War.

● Complex

● Necessitate a series of actions performed in order

● With other projects running in the background

134 SHOOLINI UNIVERSITY

The following are typical steps in a PERT plan:

• When a project has a set of tasks and milestones, it's important to keep track of them.
In a table, these tasks are laid out so that more information about the chronology and
timing can be supplied later
• Analyzing and Prioritizing the Tasks: The tasks are examined and prioritised in order
to achieve the intended outcomes.
• The activity sequence data is used to create a network diagram that shows the
sequence of sequential and parallel activities.
• Time Estimating: This is the amount of time it will take to complete each task, broken
down into three sections: An activity that takes the least amount of time to complete.
• The most likely time of completion: the most likely time of completion. How long
does an activity typically take to complete? Project completion time is estimated
using a technique known as critical path estimation.
• Using PERT, it is possible to estimate the time it will take to perform a certain
software development task, as well as the cost.

14.7. SUMMARY

● Keeping everything under control is a key responsibility of management.

● It is the process that measures current performance and guides it towards

some predetermined objectives.

● Control and freedom are inseparable. They are, in reality, intertwined.

● Freedom can't last long if it's not reined in.

● There should be a control system that is suited to the task at hand.

● Managing a huge company requires a different set of controls than managing

a smaller company.

● Control methods include feed forward control, concurrent control, and the feed-back
process.

● An organization's control system can be established using various methods,

including CPM, Gantt Chart, and PERT.
135 PRINCIPLES OF MANAGEMENT

14.8. KEYWORDS
● Budgeting: is the practise of documenting all projected expenses and profits.

● Control: Restrain or regulate

● Feedback is the process by which a portion of a system's output is returned to its

input to regulate future output.

● Reverse of feedback feed forward is the'self-fulfilling prophecy' process that inverts

logical cause-effect relationships.

14.9. REVIEW QUESTIONS

1) It's important to have control in company because... For a successful control system,
what are the prerequisites?

2) "Action is the essence of control." Comment.

3) "Management's controlling function is analogous to that of a refrigerator's

thermostat." Comment.

4) Control is also frequently referred to as a system, as is planning, because they are all
interconnected. What does this mean? Is it possible that both statements are correct?

5) An effective control system can be established using the management intervention

approach known as PERT. Justify what you just said.

14.10. FURTHER READINGS

Books:

• Scanlon Burt K., Principles of Management and Organisation Behaviour, John

Wiley
and Sons, 1973.
• Tom K. Reeves and Joan Woodward, The Study of Management Control.

Online link:

www. extension.osu.edu.com