UNIT 2

1.Explain the development of management thoughts.

--The development of management thoughts can be traced through various eras,
each marked by distinct theories and perspectives.

1. Classical School (Late 19th to early 20th century):

- *Scientific Management (Frederick Taylor):* Emphasized efficiency through
systematic study and optimization of work processes.
- *Administrative Management (Henri Fayol):* Focused on principles of
management, including planning, organizing, commanding, coordinating, and
controlling.

2. Behavioral School (1920s to 1950s):

- *Hawthorne Studies:* Highlighted the impact of social and psychological
factors on productivity, challenging the purely mechanistic view of classical
management.

3. Quantitative School (1940s to 1950s):

- *Operations Research and Management Science:* Applied mathematical and
statistical methods to decision-making and problem-solving in organizations.

4. Systems Theory (1950s onwards):

- *General Systems Theory:* Viewed organizations as complex systems with
interrelated parts, emphasizing the need for holistic approaches to management.

5. Contingency Theory (1960s onwards):

- *Contingency Approach:* Stressed that there is no one-size-fits-all solution in
management, and the effectiveness of managerial actions depends on the context.
6. Quality Management (1980s onwards):
- *Total Quality Management (TQM):* Emphasized continuous improvement,
customer satisfaction, and employee involvement to enhance product and service
quality.

7. Knowledge Management (1990s onwards):

- *Knowledge-Based View:* Recognized the importance of knowledge as a
critical organizational resource, leading to the development of strategies for
knowledge creation, sharing, and utilization.

8. Contemporary and Integrative Approaches (21st century):

- *Strategic Management:* Focused on aligning organizational strategies with
external environments.
- *Sustainability and Corporate Social Responsibility (CSR):* Emphasized ethical
and socially responsible practices.
- *Agile and Lean Management:* Adapted principles from software development
for flexible and efficient organizational practices..
2. Explain process of concept of planning .
--The process of planning involves several interconnected steps to guide an
organization towards achieving its goals. Here's a breakdown of the key elements in
the planning process:

1. Define Objectives:
- Identify and articulate specific, measurable, achievable, relevant, and time-
bound (SMART) objectives. These objectives serve as the foundation for the entire
planning process.

2. Environmental Scan:
 - Conduct a thorough analysis of the internal and external environment. Internal
factors include strengths and weaknesses, while external factors encompass
opportunities and threats. This helps in understanding the context in which the
organization operates.

3. SWOT Analysis:
- Evaluate Strengths, Weaknesses, Opportunities, and Threats (SWOT). This
analysis helps in leveraging internal strengths, addressing weaknesses, exploiting
opportunities, and mitigating threats.

4. Formulate Strategies:
- Develop strategies to achieve the defined objectives. This involves determining
the best course of action to capitalize on strengths, address weaknesses, take
advantage of opportunities, and mitigate threats.

5. Action Planning:
- Break down strategies into actionable and practical steps. Define tasks, allocate
resources, set timelines, and assign responsibilities to ensure effective
implementation.

6. Budgeting:
- Allocate financial resources based on the planned activities. Develop a budget
that aligns with the overall plan, considering costs associated with personnel,
materials, technology, and other relevant factors.

7. Implementation:
- Execute the planned activities according to the established timelines and action
steps. Communication and coordination are crucial during this phase to ensure
everyone is aligned with the plan.
8. Monitoring and Control:
- Regularly track progress against the plan. Use key performance indicators
(KPIs) to measure success and identify any deviations from the planned course.
Implement corrective actions as needed to keep the organization on track.

9. Feedback and Adaptation:

- Gather feedback from the monitoring process and make necessary adjustments
to the plan. Adapt to changes in the internal and external environment, ensuring the
plan remains relevant and effective.

10. Evaluation:
- Assess the overall success of the plan in achieving objectives. Identify lessons
learned and areas for improvement to inform future planning cycles.
3. Explain principal of concept of organising.
--The principle of organizing in management involves structuring and arranging
resources to achieve organizational goals efficiently and effectively. Here are the
key principles of organizing:

1. Principle of Specialization:
- Assign tasks and responsibilities to individuals based on their specialization and
expertise. This principle acknowledges that people are more productive when they
focus on specific tasks that align with their skills.

2. Principle of Unity of Command:

- Each employee should have a single supervisor or reporting authority to avoid
confusion and conflicting directives. This helps maintain clear lines of authority and
accountability.
3. Principle of Span of Control:
- Limit the number of subordinates a manager can effectively supervise. A
manageable span of control promotes better communication, control, and
coordination within the organization.

4. Principle of Hierarchy:
- Establish a clear chain of command with levels of authority. This principle
emphasizes the scalar chain, where each position reports to a higher or lower
position in a structured hierarchy.

5. Principle of Authority and Responsibility:

- Authority and responsibility should go hand in hand. Managers must have the
necessary authority to carry out their assigned responsibilities. This principle
ensures accountability for outcomes.

6. Principle of Equity:
- Treat employees fairly and impartially. This principle emphasizes the
importance of fairness in decision-making, resource allocation, and other
organizational processes.

7. Principle of Flexibility:
- Design organizational structures that can adapt to changing circumstances.
Flexibility allows organizations to respond to evolving environments, market
conditions, and opportunities.

8. Principle of Balance:
- Achieve a balance between centralization and decentralization of authority.
While some decisions may be centralized for consistency, others can be
decentralized to empower lower-level employees.
9. Principle of Coordination:
- Ensure that activities and efforts across different departments are harmonized to
achieve common goals. Coordination prevents duplication of efforts and fosters
synergy within the organization.

10. Principle of Continuity:

- Design organizational structures with an eye on long-term sustainability. This
principle emphasizes the need for continuity in organizing processes, even as
personnel and external factors change.
4. Explain the decision making process.
--The decision-making process involves a series of steps to identify, evaluate, and
choose among alternative courses of action. Here's a breakdown of the typical
decision-making process:

1. Identification of the Decision:

- Clearly define the decision that needs to be made. This initial step involves
recognizing a problem, opportunity, or the need for improvement.

2. Define Objectives:
- Clearly articulate the goals and objectives that the decision aims to achieve. This
step sets the criteria for evaluating potential alternatives.

3. Gather Information:
- Collect relevant data and information to understand the situation and identify
possible solutions. This may involve research, analysis, and consultation with
stakeholders.

4. Identify Alternatives:
 - Generate a range of possible options or solutions to address the decision at hand.
Encourage creativity and consider various perspectives during this stage.

5. Evaluate Alternatives:
- Assess the pros and cons of each alternative against the defined objectives.
Consider factors such as feasibility, cost, potential risks, and alignment with
organizational values.

6. Make a Decision:
- Choose the best alternative based on the evaluation. The decision-maker should
take into account the information gathered, analysis conducted, and the potential
impact of the decision.

7. Implementation:
- Put the decision into action. Develop a plan for executing the chosen alternative,
allocate resources, and communicate the decision to relevant stakeholders.

8. Follow-Up and Evaluation:

- Monitor the implementation of the decision and evaluate its outcomes. This step
involves assessing whether the decision has achieved the intended objectives and
identifying any adjustments that may be needed.

9. Learn from the Decision:

- Reflect on the decision-making process. Understand what worked well and what
could be improved. This learning contributes to better decision-making in future
situations.
5. Types of organisation.
--Organizations can take various forms based on their structure, purpose, and
ownership. Here are common types of organizations:
1. Sole Proprietorship:
- Owned and operated by a single individual. The owner has full control and is
personally responsible for the business's debts and obligations.

2. Partnership:
- Formed by two or more individuals who share ownership, responsibilities, and
profits. Partnerships can be general (equal sharing) or limited (one partner has
limited involvement).

3. Corporation:
- A legal entity separate from its owners (shareholders). Corporations offer
limited liability for shareholders and have a formal structure with a board of
directors managing overall strategy.

4. Limited Liability Company (LLC):

- Blends characteristics of partnerships and corporations. Members have limited
liability, and it provides flexibility in management and taxation.

5. Nonprofit Organization:
- Operates for a charitable, educational, or community purpose rather than to
generate profit. Nonprofits can take various legal forms, including charitable trusts,
foundations, or associations.

6. Cooperative:
- Owned and operated by its members, who share the benefits. Cooperatives can
be in the form of consumer cooperatives (owned by customers), worker
cooperatives (owned by employees), or producer cooperatives (owned by
producers/suppliers).
7. Government Agency:
- Established and funded by the government to provide specific services or
regulate certain activities. Government agencies operate at various levels, from
local to national.

8. Franchise:
- Allows individuals (franchisees) to operate a business using the brand, products,
and services of a larger company (franchisor). Franchisees follow established
business models.

9. Multinational Corporation (MNC):

- Operates in multiple countries, with a centralized management structure. MNCs
conduct business globally, taking advantage of different markets, resources, and
labor.

10. Matrix Organization:

- Combines elements of functional and project-based organizational structures.
Employees report to both functional managers and project managers, facilitating
flexibility and specialization.

11. Virtual Organization:

- Operates without a central physical location. Employees work remotely, and
communication is facilitated through technology. Virtual organizations often rely
on networks and collaborations.

12. Joint Venture:

- Formed by two or more entities for a specific project or business activity. Joint
ventures allow organizations to pool resources and expertise temporarily.
6. Centralization.
--Centralization refers to the concentration of decision-making authority at the top
levels of an organizational hierarchy. In a centralized structure, key decisions are
made by a few individuals at the upper levels of management, typically by top
executives or a single leader. Here are some key characteristics and
advantages/disadvantages of centralization:

Characteristics of Centralization:

1. Decision Authority: Decision-making authority is retained by top management.

2. Communication Flow: Information and directives flow from top to bottom in a

clear and formalized manner.

3. Control: Centralization provides a higher degree of control and uniformity in

decision implementation.

4. Efficiency: Centralized decision-making can be more efficient for routine or

standardized tasks.

5. Specialization: Specialized functions are often concentrated at the top of the

organization.

Advantages of Centralization:

1. Consistency: Centralization ensures consistency in decision-making and

organizational policies.
2. Speed: Decisions can be made more quickly since there are fewer decision-
makers involved.

3. Clear Hierarchy: The organizational structure is typically clear, with a well-

defined hierarchy.

4. Resource Allocation: Centralization allows for efficient allocation of resources as

decisions are made at a central point.

5. Unified Vision: It facilitates the implementation of a unified vision and strategy.

Disadvantages of Centralization:

1. Limited Flexibility: Centralized structures may lack the flexibility needed to

adapt quickly to changing circumstances.

2. Bureaucracy: The emphasis on hierarchy and formal procedures can lead to

bureaucratic tendencies.

3. Employee Morale: Lower-level employees may feel disengaged or demotivated if

they perceive a lack of empowerment or involvement in decision-making.

4. Innovation Challenges: Centralization can hinder innovation as ideas may be

slow to reach decision-makers.

5. Information Overload: Top management may become overloaded with

information, potentially leading to delays in decision-making.
7. Decentralization.
--Decentralisation refers to the delegation of decision-making authority across
various levels of an organizational hierarchy. In a decentralized structure, decision-
making is distributed among multiple individuals or units throughout the
organization. Here are some key characteristics and advantages/disadvantages of
decentralization:

Characteristics of Decentralization:

1. Decision Authority: Decision-making authority is delegated to lower levels of the

organization.

2. Communication Flow: Information and decision-making authority may flow in

multiple directions, fostering more open communication.

3. Autonomy: Lower-level units or departments have a greater degree of autonomy

and independence.

4. Flexibility: Decentralization allows for greater adaptability to local conditions

and faster response to changes.

5. Employee Empowerment: Decentralization often involves empowering

employees at lower levels to make decisions related to their specific
responsibilities.

Advantages of Decentralization:

1. Quick Response: Lower-level managers can respond quickly to local issues

without waiting for approval from higher-ups.
2. Employee Morale: Empowering employees with decision-making authority can
boost morale and motivation.

3. Local Knowledge: Those closer to the operational level often have a better
understanding of local conditions and customer needs.

4. Innovation: Decentralized structures can foster innovation as ideas can be

generated and implemented more freely.

5. Reduced Workload at the Top: Top management is not burdened with every
decision, allowing them to focus on strategic issues.

Disadvantages of Decentralization:

1. Inconsistent Decision-Making: Decentralization may lead to inconsistency in

decision-making across different units.

2. Communication Challenges: Coordinating activities and ensuring information

flow can be challenging in decentralized organizations.

3. Potential for Duplication: Duplication of efforts or resources might occur if

coordination is not well-managed.

4. Loss of Control: Central management may feel a loss of control over certain
aspects of the organization.
5. Risk of Sub-Optimization: Units may prioritize local goals over the
organization's overall objectives.
7. Span of control
--The span of control is a management concept that refers to the number of
subordinates or employees that a manager can effectively supervise or control. It
directly impacts the organizational structure and how authority is distributed within
an organization.

There are two types of spans of control:

1. Narrow Span of Control:

- In a narrow span of control, a manager has a limited number of subordinates
reporting directly to them. This typically results in a tall organizational structure
with multiple hierarchical levels.

2. Wide Span of Control:

- In a wide span of control, a manager has a larger number of subordinates
reporting directly to them. This often leads to a flatter organizational structure with
fewer hierarchical levels.

Factors influencing the appropriate span of control include:

- Nature of Tasks: The complexity and nature of tasks influence the manager's
ability to supervise. Routine tasks may allow for a wider span, while complex tasks
may require a narrower span.

- Employee Competence: Experienced and skilled employees may require less

direct supervision, allowing for a wider span. In contrast, less experienced
employees might need closer guidance, suggesting a narrower span.
- Technology and Communication: Advances in technology and effective
communication tools may enable managers to handle a wider span by facilitating
communication and coordination.

- Organizational Culture: Some organizations prefer a more hierarchical structure

with a narrow span, while others embrace a flatter structure with a wider span to
encourage autonomy and flexibility.

The optimal span of control varies based on organizational context, industry, and
management philosophy. Striking the right balance is essential to ensure effective
communication, coordination, and supervision within the organization.
8. Formal and informal organising
--Formal and informal organizing are two distinct aspects of organizational
structure and communication within an organization.

Formal Organizing:

1. Definition:
- Formal organizing refers to the planned and officially recognized structure of
roles, responsibilities, and relationships within an organization. It is the deliberate
arrangement of positions to achieve organizational objectives.

2. Hierarchy:
- Formal organizing involves the establishment of a clear hierarchical structure
with defined levels of authority and responsibility. This structure is typically
documented in organizational charts.

3. Communication Channels:
 - Communication within formal organizing follows official channels prescribed
by the organizational hierarchy. Information flows in a structured manner from top
to bottom and vice versa.

4. Roles and Responsibilities:

- Roles and responsibilities are clearly defined and documented for each position
in the organizational structure. This helps avoid confusion and ensures that
everyone understands their duties.

5. Decision-Making:
- Decision-making processes in formal organizing are often systematic and follow
established procedures. Decisions may be made by higher-level management and
communicated down the hierarchy.

Informal Organizing:

1. Definition:
- Informal organizing refers to the unstructured and spontaneous networks,
relationships, and communication that develop among individuals within an
organization. It is based on personal connections and social interactions.

2. Networks and Relationships:

- Informal organizing involves the formation of informal networks and
relationships that exist outside the official organizational hierarchy. These networks
can cut across formal lines of authority.

3. Communication Channels:
 - Communication in informal organizing is more fluid and can occur through
various informal channels such as personal conversations, social gatherings, or
electronic communication.

4. Roles and Responsibilities:

- Informal organizing can lead to the emergence of roles and responsibilities that
are not explicitly defined in the formal structure. Individuals may take on unofficial
leadership roles based on personal influence.

5. Decision-Making:
- Decisions in informal organizing may be made collaboratively or by individuals
who hold informal positions of influence. This can lead to a more flexible and
adaptive approach to decision-making.