DR.

Khyati Shah
K. P. B. Hinduja College of Commerce
 Syllabus
Sr. No. Content
 30 Hours

I Unit I : Introduction to Management and Planning 15 Hours

1.1 Management: Concept, Significance, Role & Skills, Levels of Management, Functions of Management -
POSDCORB
Evolution of Management Thoughts:
F. W. Taylor‟s - Scientific Management
Henri Fayol‟s - Principles of Management
Elton Mayo‟s Hawthorne experiments - Human Relations Approach
Peter Drucker‟s - Dimensions of Management

1.2 Planning: Meaning, Importance, Elements, Process, Limitations and MBO

Decision Making: Meaning, Importance, Process, Techniques of Decision Making
II Unit II: Organising, Directing and Controlling 15 Hours
2.1 Organising : Meaning, Advantages and Limitations,
Organisation Structure – (Formal & Informal, Line & Staff and Matrix)
Departmentation: Meaning, Basis and Significance
Span of Control : Meaning, Factors affecting span of Control, Centralization vs Decentralization

2.2 Directing: Meaning and Process

Leadership: Meaning, Styles and Qualities of Good Leader
Co-ordination: Meaning and Importance
Controlling: Meaning, Process, Essentials and Techniques
 Question Paper Pattern
Sr. Questions
 30 Marks
No.
1 Answer the following questions: (Unit I) 15
A a.– 7.5 Marks (1.1)
b. – 7.5 Marks (1.2)
or
B a.– 7.5 Marks (1.1)
b. – 7.5 Marks (1.2)

2 Answer the following questions: (Unit II) 15

A a.– 7.5 Marks (2.1)
b. – 7.5 Marks (2.2)
or
B a.– 7.5 Marks (2.1)
b. – 7.5 Marks (2.2)
 1.1. Introduction to Management

1. Meaning and Definition of Management

2. Features of Management

3. Significance of Management

4. Managerial Role

5. Management Skills

6. Levels of Management

7. Functions of Management –POSDCORB

8. Evolution of Management Thoughts

9. Contribution by FW Taylor, Henry Fayol, Elton Mayo and Peter Drucker

 Concept of Management

 What is management ?

 Why we need to manage ?

 What do we manage ?

 Which fields needs management ?

 Concept of Management

Why we have to Fields for
What we Manage ???
Manage ??? Management

Resources Achieve Goals All Pervasive

Resources are Business

Financial
Scare Oranisation

Nature of Non-Business
Natural
Resources Organisation

Get desired Events, place,

Human
results scale
 Definition of Management

 “Management is the art of getting things done
through people.”
- Mary Parker Follet
 “To manage is to forecast and to plan, to organize, to
command, coordinate and to control”
- Henri Foyal
 “Management is defined as the process of planning,
organising, actuating, and controlling of an
organisation‟s operations in order to achieve
coordination of the human and material resources
essential in the effective and efficient attainment of
objectives.”
– Trewelly and Newport
 Management

 Managing people, resources, situation, time, place

etc. for the desired outcome.

 Management is art and science of getting things done

to achieve desired results or goals.

 It is the process of achieving goals in systematic and

scientific way.
 Features of Management

1. Management is a Process

2. Management is a Continuous Process

3. Management aims to Achieve Goals

4. Management is Arts, Science and Profession

5. Management is all Pervasive

 Features of Management

6. Management is Multidimensional and

Multidisciplinary

7. Management involves Decision Making

8. Management is a Group Activity

9. Management is operated at Different Levels

10. Management is Dynamic in Nature

 Significance of Management

1. It helps in achieving goals

2. Increases Efficiency

3. Increases Productivity

4. Supports optimum utilization of resources

5. Supports business growth

 Significance of Management

6. Creates employment

7. Helps to reduce cost

8. It creates professional environment in the company

9. Supports Economic Development

10. Improved working environment

 Functions of Management

1. Planning

2. Organising

3. Staffing

4. Directing

5. Coordinating

6. Reporting Budgeting
Managerial Roles

Levels of Management

Managerial Skills

Management Level

 Evolution of Management thoughts

 Management evolved since evolution of human
kind.
 Remarkable day or year is difficult to identify for the
evolution of management.
 Management is considered as the significant feature
of economic life of mankind throughout ages.
Management thought is regarded as an evolutionary
concept.
 It has developed along with it and in line with social,
cultural, economic and scientific institutions.
 Management thought has its origin in ancient times.
 Evolution of Management thoughts

 What Does Management Thought Means?
 Management thought refers to the theory that guides
management of people in the organization.
 Initially management theories were developed out of
the practical experience of the managers in the
industrial organization.
 Later on, managers borrowed ideas from several
other fields of study like science, sociology,
anthropology, etc.
 Phases of Evolution of Management

 Early Perspective

 Classical Management Theory

 Neo Classical Theory

 Behavioural Science Approach

 Management Science

 Modern Management
 Evolution of Management Thought

 F. W. Taylor‟s - Scientific Management

 Henri Fayol‟s - Principles of Management

 Elton Mayo‟s Hawthorne experiments - Human

Relations Approach

 Peter Drucker‟s - Dimensions of Management

 F W Taylor Scientific
Management 
 Frederick Winslow Taylor was born on
March 20, 1856, in German town,
Philadelphia, Pennsylvania, USA.
He was a mechanical engineer.

 He is a Father of Scientific Management. According to

Frederick W. Taylor “Scientific Management is an art of
knowing exactly what you want your men to do and seeing
that they do it in the best and cheapest way.”

 The major objectives of Scientific Management Theory by

Taylor are a maximum improvement of workers. This
improvement shows on efficiency and effectiveness
performance.

 According to Taylor, „Scientific management is an art of

knowing exactly what you want your men to do and seeing
that they do it in the best and cheapest way.”
 F. W. Taylor’s - Scientific Management

 Features
1. Approach
2. Economy
3. A Specific Plan
4. Dispose of Old Method
5. Importance
6. Techniques
7. Efforts
8. Method
9. A Specific Goal
10. Changes in Outlook
 Principles of Management
1.

Science, not rule of thumb
2. Harmony, not discord
3. Co-operation not Individualism
4. The development of each man to his greatest
efficiency and prosperity
 Techniques of Scientific Management

1. Functional Foremanship
2. Standardization of Work
3. Simplification of Work
4. Scientific Study of Work
 Methods Study
 Motion Study
 Time Study
 Fatigue Study
 Differential Piece Wage System
 Mental Revolution
 Henry Fayol

 Henry Fayol (1841-1925) is rightly treated as the father of
modern theory of general and industrial management.
 The credit of suggesting the basic principles of
management in an orderly manner goes to Henry Fayol.
 After obtaining an engineering degree, Henry Fayol,
joined as chief executive in a coal mining company.
 He developed his management principles and general
management theory and published them in the form of a
book (in French) "General and Industrial Administration"
in 1916.
 He developed fourteen principles of management out of
his practical experience.
 These principles are universal in character and are
applicable to all types of organisations.
 Each principle suggested by him has specific meaning
and significance
 14 Principles of Management

 Division of Work
 Authority and Responsibility
 Discipline
 Unity of Command
 Unit of Direction
 Subordination of Individual interest with organisation interest
 Remuneration
 Centralisation
 Scalar Chain
 Order
 Equity
 Stability of Tenure
 Initiative
 Esprit de Corps
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 Elton Mayo

 George Elton Mayo is considered as one of the pioneers of the
human relations approach to organisation.
 His main hypothesis is that relations between employers and
employees should be humanistic, not mechanistic.
 Employees and workers deserve to be treated as individuals
with dignity and self-respect rather than as factors of
production or inter- changeable elements of the production
system.
 He looked upon industrial organisations as psychosocial
systems with primary emphasis on human resources, their
behaviour and welfare, needs and satisfactions, interactions
and co-operation.
 He focussed his attention on the behaviour of the workers and
their production capacity keeping in view physical, economic
and psychological aspects.
 He called this approach a clinical method. He has published
books and contributed a number of research articles.
 Elton Mayo

 Mayo‟s studies at the Western Electricity Company, Chicago is
popularly known as Hawthorne Studies.
 It was a research programme of National Research Council of
the National Academy of Science at the Hawthorne Plant of
Western Electricity Company.
 In the early 20th century, it was realized that –
 There was a clear-cut cause and effect relationship between the
physical work, environment, the well-being and productivity of
the worker.
 Also, there was relationship between production and given
condition of ventilation, temperature, lighting and other
physical working conditions and wage incentives.
 It had been believed that – improper job design, fatigue and
other conditions of work mainly block efficiency.
 So to establish the relationship between man and the structure
of formal organization, Hawthorne Studies conducted.
 Hawthrone Experiment

A. Illumination Experiment (1924-27)

B. Relay Assembly Test Room Experiment (1927)

C. Mass Interviewing Programme (1928-31)

D. Bank Wiring Experiment (1931-32)

 A. Illumination Experiment (1924-27)

 This experiment was conducted to establish
relationship between output and illumination.
 When the intensity of light was increased, the output
also increased.
 The output showed an upward trend even when the
illumination was gradually brought down to the
normal level.
 Therefore, it was concluded that there is no
consistent relationship between output of workers
and illumination in the factory.
 There must be some other factor which affected
productivity.
 B. Relay Assembly Test Room

Experiment (1927)
 This phase aimed at knowing not only the impact of
illumination on production but also other factors like length of
the working day, rest hours, and other physical conditions.
 In this experiment, a small homogeneous work-group of six
girls was constituted.
 These girls were friendly to each other and were asked to
work in a very informal atmosphere under the supervision of
a researcher.
 Productivity and morale increased considerably during the
period of the experiment.
 Productivity went on increasing and stabilized at a high level
even when all the improvements were taken away and the
pre-test conditions were reintroduced.
 The researchers concluded that socio-psychological factors
such as feeling of being important, recognition, attention,
participation, cohesive work-group, and non-directive
supervision held the key for higher productivity.
C. Mass Interviewing Programme (1928-31)

 The objective of this programme was to make a systematic
study of the employees attitudes which would reveal the
meaning which their “working situation” has for them.
 The researchers interviewed a large number of workers with
regard to their opinions on work, working conditions and
supervision.
 Initially, a direct approach was used whereby interviews asked
questions considered important by managers and researchers.
The researchers observed that the replies of the workmen were
guarded.
 Therefore, this approach was replaced by an indirect technique,
where the interviewer simply listened to what the workmen
had to say.
 It was also observed that just by allowing workers to freely talk
about their work and experience motivated them and improved
their productivity.
 The findings confirmed the importance of social factors at work
in the total work environment.
 D. Bank Wiring Experiment (1931-32)

 This experiment was conducted by Roethlisberger and Dickson
with a view to develop a new method of observation and
obtaining more exact information about social groups within a
company and also finding out the causes which restrict output.
 The experiment was conducted to study a group of workers
under conditions which were as close as possible to normal.
This group comprised of 14 workers.
 After the experiment, the production records of this group were
compared with their earlier production records.
 It was observed that the group evolved its own production
norms for each individual worker, which was made lower than
those set by the management. Because of this, workers would
produce only that much, thereby defeating the incentive
system.
 Those workers who tried to produce more than the group
norms were isolated, harassed or punished by the group. The
findings of the study are:-
 D. Bank Wiring Experiment (1931-32)

 Findings of Bank Wiring Experiment
1. Each individual was restricting output.
2. The group had its own “unofficial” standards of
performance.
3. Individual output remained fairly constant over a
period of time.
4. Informal groups play an important role in the
working of an organization
 Peter Drucker

 Peter Drucker(1909 – 2005) was a renowned American
author and consultant in the field of organizational
development and management. Peter Drucker also
invented the concept of Management by Objectives
(MB0).
 e was one of the most widely-known and influential
thinkers on management, whose work continues to be
used by managers worldwide.
 He was a prolific author, and among the first (after Taylor
and Fayol) to depict management as a distinct function
and being a manager as a distinct responsibility.
 His writing showed real understanding of and sympathy
for the difficulties and demands faced by managers.
 “Management is the multi propose organ that manages
business, manages managers and manages worker and work.”
 Peter Drucker

 Drucker taught that management is a liberal art and is
about much more than productivity.
 To be an effective manager you must understand things
like psychology, science, religion, and the other things
that go into that subject.
 Drucker observed that often managers would try to take
charge of everything.
 This was usually out of a desire for control or the belief
that they were the only person who could accomplish a
task correctly.
 Because of this, he advocated strongly for the
decentralization of management. He taught that
managers needed to delegate tasks to empower their
employees.
 Throughout his career, Peter Drucker wrote 39 books
where he coined several terms which are still used today.
 Contribution

1. Nature of Management

2. Management Function

3. Organisation structure

4. Federalism

5. Management by Objectives

6. Organsational Changes

7. Knowledge Worker
 Nature of Management

 Drucker opposed bureaucratic management and was
in favour of creative management.
 According to him, the aim of management should be
to innovate.
 This could be done in the form of combining old and
new ideas, developing new ideas, or encouraging
others to innovate.
 Management Function

 According to Drucker, management is the key organ of
any organisation. In his opinion, management is
performed through a series of tasks.
 A manager has to perform several functions such as
setting of objectives, increasing productivity, organising
and managing social impacts and responsibilities, and
motivating employees.
 Drucker gave importance to the objective function and
specified the divisions where clear objective is necessary.
 These are innovation, productivity, market standing,
financial resources, profitability, managerial performance
and development, employee performance, and social
responsibility
 Organisation structure

 According to Drucker, there are three characteristics of an
effective organisation structure as explained below:
1. The institution must be structured to achieve maximum
performance;
2. It should contain least possible number of managerial
levels;
3. It must be responsible for the testing and training of
future managers.
There are three aspects in organising that are
undermentioned:
1. Activity analysis explains the work that has to be done,
what kind of work needs to be done, and what
importance needs to be given to the work.
2. Decision analysis determines or decides at which level a
decision can be made.
3. Relation analysis assists in defining the organisational
structure
 Federalism

 A common theme across much of Drucker‟s enormous
body of work was his firmly held belief that managers
should delegate tasks in order to empower employees, the
decentralisation of management.
 As he saw it, many business leaders would attempt to
take on all responsibilities as a display of power or to
maintain a level of control, with the suggestion that they
were the only ones capable to undertake those
responsibilities.
 In his ground-breaking 1946 book, „Concept of the
Corporation‟, Drucker stated decentralization was a good
thing as it created smaller teams where people would feel
that they could make an important contribution.
 His suggestion to achieve this was to move businesses
away from having one central office toward having
several more independent, smaller ones.
 Management by Objectives

 This is considered to be one of the most important
contributions made by Drucker to the field of management.
 Management by objectives (MBO) is a management approach
where equilibrium is required to be achieved between the
objectives of employees and the objectives of an organisation.
 There are certain conditions that must be met to make MBO
management a success.
 Steps in MBO
1. Define organizational objectives: Setting organisational
objectives is the first step in initiating management by
objectives. These objectives should be in line with the
organisation‟s vision and mission statement.
2. Inform the employees about the organizational objectives:
According to MBO, the objectives must be informed to the
employees at all levels. This enables the employees to
understand their roles and responsibilities.
 Management by Objectives

3. Involve the employees in determining the objectives:
Involving the employees in the decision-making process helps
them in understanding why certain things are expected of them.
This increases the commitment and the motivation of employees.
4. Monitoring the objectives: The objectives need to be measured
on a regular basis to ensure that the work is being done keeping
the objectives in mind. The detection of problems must be done in
advance so that the problem could be prevented or easily sorted.
In MBO management, each objectives has sub-objectives and so
on. The managers must motivate and encourage the employees to
complete the sub-objectives.
5. Evaluation and Feedback: This is an important aspect of
management by objectives. A comprehensive evaluation system
must be in place. Employees must be given honest feedback, and
high performance needs to be rewarded. Communication is
another important aspect in this step. High performing employees
should be given positive feedback, which is reinforced in the form
of rewards.
 Organsational Changes

 According to Peter F. Drucker, swift technological
development will result in speedy changes in the
society. He expresses concern about the effect of
these rapid changes on human life. He says that
these changes can be counteracted by developing
dynamic organisations that are adept at absorbing
change. The aforementioned contributions are also
considered to be the principles of management as
described by Drucker. Peter Drucker‟s management
principles are extremely important in today‟s time.
Hence, his teachings are a part of the curriculum at
Toronto School of Management (TSoM).
 Five Dimensions of Management by

Peter Drucker

1. Purpose and Mission

2. Productive Work and Worker Achievements

3. Social Impacts and Social Responsibilities

4. Time Dimensions

5. Administration and Entrepreneurship

 1.2. Planning and Decision Making

 Meaning of Planning
1 Lecture
 Elements of Planning
 Importance of Planning
1 Lecture
 Limitations of Planning
 Process of Planning 1 Lecture
 MBO
 Meaning of Decision Making
1 Lecture
 Importance of Decision Making
 Process of Decision Making
1 Lecture
 Techniques of Decision Making
 Features of Planning

 1. Primary Function
 Pervasive Function
 Intellectual
 Objective – Oriented
 Continuous Function
 Flexibility
 Raises Accuracy, Efficiency and Economy
 Link between past, present and future
 Brings unity of purpose and action
 Future Oriented
Elements of Planning

Standing Single Use
Plan Plan

Mission Programmes

Objectives Projects

Policies Schedules

Procedures Budget

Rules Standards

Strategies

Forecasting
 Importance of Planning

1. Achieve Goals
2. Improves Efficiency
3. Helps in directing
4. Efficient use of Resources
5. Helps in decision making
6. Helps in managing uncertain situations
7. Performance Standards
8. Survival and growth of business
9. Reduces wastages and accidents
10. Unity of Purpose
 Limitations of Planning

1. Costly
2. Time Consuming
3. Paper work
4. Rigidity
5. Limited scope of employees‟ initiative
6. Change in situation makes plans ineffective
 Process of Planning
1. Classifying the Problem

2. Determining the Objectives

3. Collecting Information

4. Analysing Information

5. Planning Premises

6. Determining Alternative Plans

7. Selecting best alternative

8. Scheduling

9. Securing Employees Participation

10. Follow Up
 MBO

 It refers to Management by objectives.
 It was developed by Peter Drucker
 According to George Odiorne:
MBO is „a process whereby, superior and the subordinate
managers of an orgnisation jointly define its common goals,
define each individual’s major areas of responsibility in terms
of results expected of him and use these measures as guides
for operating the unit and assessing the contribution of each
of its members.’
 MBO Process

1. Defining the Job

2. Setting Objectives

3. Developing Action Plan

4. Conducting periodic Review

5. Performance Appraisal

6. Achievement of Objectives
 Importance of MBO

1. Result-Oriented

2. Clearer goals

3. Impartial appraisal

4. Higher Morale

5. Personal Leadership

6. Motivation

7. Key Results Area

 Meaning of Decision Making

 Decision Making involves the selection of a course of
action from among two or more possible alternatives in
order to arrive at a solution for a given problem.
-Trewatha & Newport
Decision making is the important function of manager.
Management is decision making process.

It is an intellectual process involving selection of a

course of action out of many alternatives available
 Features of Decision Making

1. Implies Choice
2. Continuous Activity
3. Mental Activity
4. Systematic Process
5. Based on reliable information
6. Goal oriented process
7. Time – consuming
8. Needs effective communication
9. Responsible Job
10. Situation based activity
 Importance of Decision Making

1. Beneficial to the Organisation
2. Achievement of Business Objectives
3. Raises morale of decision-makers
4. Acceptable to employees and others
5. Facilitates business expansion and growth
6. Facilitates optimum utilization of resources
7. Raises efficiency and employee motivation
8. Miscellaneous
 Process of Decision Making

1. Identifying the problem

2. Analysing the Problem

3. Developing Alternatives Solutions

4. Selecting the Best Solutions

5. Converting Decision into Action

6. Ensuring Feedback
 Techniques of Decision Making

1. Creative Listing Technique
a. Attribute Listing Technique
b. Brainstorming Technique
c. Delphi Technique
d. Nominal Group Techniques
e. Gordon Technique
2. Participative Techniques
3. Heuristic Techniques
4. Quality Circles
 Attribute Listing Technique

 Attribute listing is a creative technique that can assist
you to expand and diversify your product
and service range.
 While using the technique of attribute listing we
break a problem down into smaller and smaller parts
or attributes and look at alternative solutions to these
parts.
 Attribute listing is a technique from the early 1930's
which. takes an existing product or system, breaks it
into parts, identifies various ways of achieving each
part, and then. recombines these to identify new
forms of the product or system.
 Brainstorming Technique

 Brainstorming is a group problem-solving method that
involves the spontaneous contribution of creative ideas
and solutions.
 This technique requires intensive, freewheeling
discussion in which every member of the group is
encouraged to think aloud and suggest as many ideas as
possible based on their diverse knowledge.
 Brainstorming combines an informal approach to
problem-solving with lateral thinking, which is a method
for developing new concepts to solve problems by
looking at them in innovative ways. Some of these ideas
can be built into original, creative solutions to a problem,
while others can generate additional ideas.

 Delphi Technique

 The Delphi Method is a structured communication
approach employed for forecasting and decision-making,
involving a panel of experts.
 The process consists of multiple rounds of questionnaires
where experts provide anonymous responses.
 These responses are aggregated and shared with the group,
allowing for adjustments based on the collective input to
achieve a consensus opinion.
 Starting with selecting experts, the method progresses
through rounds of comments until a consensus is reached.
 While offering advantages such as aggregating diverse
opinions without physical meetings and ensuring
anonymity, it may lack the depth of live discussions and
face challenges like potential dropouts and the risk of
aligning views with the majority.

 Nominal Group Techniques

 Nominal group technique (NGT) is defined as a
structured method for group brainstorming that
encourages contributions from everyone and facilitates
quick agreement on the relative importance of issues,
problems, or solutions.
 Team members begin by writing down their ideas, then
selecting which idea they feel is best.
 Once team members are ready, everyone presents their
favorite idea, and the suggestions are then discussed and
prioritized by the entire group using a point system.
 NGT combines the importance ratings of individual
group members into the final weighted priorities of the
group.

 
Gordon Techniques

 Gordon Technique (Synectics): Gordon Technique,

or Synectics, is a creative method by William J.
Gordon. It‟s a variant of brainstorming, breaking
limitations and encouraging a broader outlook.
 Participants are kept in the dark about the problem,
promoting diverse ideas. Group has varied
backgrounds, leader facilitates, allowing unrestricted
thinking for unique solutions.
 Success depends on a leader‟s understanding.
 Draws inspiration from literary works for
unconventional problem-solving with imagination.
Empowers creative minds for novel solutions.
 Participative Techniques

 Participative decision making techniques involve
individuals or groups in process. As organizations move
from centralized decision making to a non-centralized one,
it has become important for all concerned people to be
involved in the decision making process so that the
decision is the best possible alternative.
 Participated decision making techniques range from no
participation to participation of all concerned individuals.
Participation techniques are being applied formally and
informally on an individual or a team basis or formally on
a program basis.
 These techniques may be categorized as follows:�
Consultative: In consultative decision making, the right of
decision making resides with the manager and he may
consult or have the opinion of other concerned.�
Democratic: In democratic decision making, decision is
made by the group as a whole rather than an individual.
 Heuristic Techniques

 Heuristics is defined as a problem-solving or
decision-making technique that uses minimum
relevant information, past results, and experiences to
produce a workable and practical solution for a
problem in a reasonable period.

 Quality Circles

 A quality circle is a participatory management
technique that enlists the help of employees in
solving problems related to their own jobs.
 Circles are formed of employees working together in
an operation who meet at intervals to discuss
problems of quality and to devise solutions for
improvements.

 2.1. Organising

 Meaning of Organising
 Advantages of Organising 2 Lecture
 Limitations of Organising
 Types of Organisation Structure 1 Lecture
 Meaning of Departmentation
 Basis of Departmentation 2 Lecture
 Significance of Departmentation
 Meaning of Span of Control
 Factors affecting span of Control 2 Lecture

 Centralization vs Decentralization
 Meaning of Organising

 Organising means arranging the ways and means for
the execution of a business plan.
 Organisation is the process of identification and grouping
the work to be performed , defining and delegating
responsibility and authority and establishing relationships
for the purpose of enabling people to work most effectively
to together in accomplishing objectives.
 Lousi Allen
 Features of Organising

1. Division of Labour
2. Authority Structure
3. Common Goals
4. Communication
5. Composition of Staff
6. Environment
7. Rules and Regulations
8. Coordination
 Importance of Organising

1. Ensures Optimum Utilization of Human Resources
2. Facilitates Coordination
3. Facilitates Division of Work
4. Facilitates Growth, Expansion and Diversification
5. Stimulates Creativity
6. Facilitates Administration
7. Optimum Use of Technology
8. Determines Individual Responsibility
 Process of Organising

1. Determining Objectives

2. Identifying Work Involved

3. Enumerates Activities Involved

4. Classifying Activities

5. Allocating Duties

6. Establishing Formal Reporting System

7. Measuring Performance

8. Delegating Authority
 Organisation Structure

 Structure is the established pattern of relationships
among the component parts of the organisation.
 Organisation structure helps to design departments,
delegate work, assign duties and design line of
communication and authority in the organisation.
 Formal Organisation Structure: A well defined jobs,
each bearing a definite measure of authority,
responsibility and accountability.
 Informal Organisation Structure: is a network of
personal and social relations established among the
people without conscious common purpose.
 Types of Organisation Structure

1. Line and Staff Organisation Structure

2. Matrix Organisation Structure

 Line and Staff Organization Structure

 Line refers to those positions and elements of the
organisation, which have the responsibility and
authority and are accountable for accomplishment of
primary objectives.
 Staff elements are those which have responsibility
and authority for providing advice and service to the
line in attainment of objectives.
 Line Executive are doers whereas staff refers to
experts and act as thinkers.

 Matrix Organisation

 Here, two complementary organisations, i.e. the
project organisation and functional organisation are
linked together in order to create a matrix
organisation.
 In matrix strructure, the employees have to work
under dual authority. One authority is the functional
and the other is project manager who is an expert in
the specific area.

 Departmentation

 Departmentation is a process of dividing an
orgnisation into convenient smaller units called
departments.
 The process of departmentalizing an enterprise for
gaining efficiency and coordination : the grouping of
tasks into departments and subdepartments and
delegating of authority for accomplishment of the
tasks.
 Basis of Departmentation

I. Departmentation by Functions

II. Departmentation by Process

III. Departmentation by Products

IV. Departmentation by Geographical Location

V. Departmentation by Customers
 On the Basis of Function 

 On the Basis of Process

 On the Basis of Product


 On the Basis of Geographic Location

 On the Basis of Customer

 Significance of Departmentation

1. Division of Work
2. Efficiency and Coordination
3. Fixing Responsibility
4. Leads to Management Development
5. Optimum Use of Resources
6. Quick Service
7. Facilitates Performance Appraisal
8. Effective Control
9. Facilitates Expansion
 Span of Control

 Span of control, also called span of management, is a
term used in business management, particularly
human resource management.
 The term refers to the number of direct reports a
supervisor is responsible for (the number of people
the supervisor supports).
 Factors Affecting Span of Control

1. Capacity of the manager and services of personal
assistant
2. Nature of Work
3. Time Devoted to Supervision
4. Clarity of Plans and definiteness of responsibility
5. Degree of Decentralization and Delegation
6. Use of Communication Technology
7. Training and Faith on Subordinates
8. Incentives Offered
9. Effective delegation of authority
10. High Morale
 Centralization

 Centralization
Centralization refers to the degree to which decision-
making process is concentrated at a single point in the
organization. If top management makes all the
important decisions in the organization with little or no
input from the lower level employees, then the
organization is said to be a highly centralized
organization. In contrast, if the organization encourages
lower level personnel to participate in the decision
making process and allows a greater amount of
discretion, the organization is called a decentralized
organization.
 Decentralization

 Decentralization refers to a specific form of organizational
structure where the top management delegates decision-
making responsibilities and daily operations to middle
and lower subordinates.
 In this type of organisation structure, the duty of daily
operations and minor decision-making capabilities are
transferred to the middle and lower levels which allow
top-level management to focus more on major decisions
like business expansion, diversification etc.
 Delegation refers to the assigning a portion of work and
the associated responsibility by a superior to a
subordinate. In simple words, when delegation is
expanded on an organisational level, it is called
decentralisation.
Centralization Decentralization


1. Meaning

2. Quality of decision making

3. Suitability

4. Availability of Goods Results

5. Communication Gap

6. Scope of Management

7. Motivation and Morale

8. Burden on Executives
 Directing and Controlling

 Meaning of Directing
 Process of Directing
 Meaning of Leadership 2 Lecture
 Styles of Leadership
 Qualities of Good Leader
 Meaning of Co-ordination
1 Lecture
 Importance of Co-ordination
 Meaning of Controlling
 Process of Controlling
 Essentials of Controlling
1 Lecture
 Techniques of Controlling
 Directing

 Directing in management refers to the process of
leading, guiding, instructing, supervising, and
motivating employees in order to achieve the goals
of an organization.
 Directing refers to a process or technique of
instructing, guiding, inspiring, counselling,
overseeing and leading people towards the
accomplishment of organizational goals. It is a
continuous managerial process that goes on
throughout the life of the organization.
 Process of Directing

1. To define objectives
2. To harmonise individual and Organizational Goals
3. To make available necessary direction
4. To communicate direction
5. To keep employees motivated
6. To possess effective leaders
7. To maintain close watch
8. To review direction
 Leadership

 Leadership is the ability of a manager to induce
subordinates to work with confidence and zeal.
- Koontz and O‟Donnell
 Leadership is the activity of influencing people to
strive for mutual objectives.
- George Terry
 Styles of Leadership

1. Autocratic Style of Leadership
2. Democratic Style of Leaderhsip
3. Laissez –faire or Free – rein Style of Leadership
4. Functional Leadership / Intellectual Leadership
5. Bureaucratic Style of Leadership
6. Neurocratic Style of Leadership
7. Paternalistic Style of Leadership
8. Dictatorial Style of Leadership
9. Situational Leadership
 Quality of Good Leader

Personal Traits Managerial Traits

•Self Confidence •Knowledge of

•Initiative and Human Skills
Innovative •Administrative
•Charisma Ability
•Emotional Maturity •Technical
•Intelligence Knowledge
•Decisiveness •Ability to deal with
People
•Effective
Communication •Ability to judge and
decide quickly
 Co-ordination

 Coordination is the function of management which
ensures that different departments and. groups work
in sync. Therefore, there is unity of action among the
employees, groups, and departments.
 It also brings harmony in carrying out the different
tasks and activities to achieve. the organization's
objectives efficiently.
 Coordination is the process whereby an executive
develops an orderly pattern of group efforts among
his subordinates and secures unity of action in the
pursuit of a common purpose.
 Importance of Coordination

1. Develops Team Spirit
2. Brings Unity of Direction
3. Raises Morale and Motivation
4. Optimum Utilization of Resources
5. Acts as driving Force
6. Facilitates Prompt Achievement of Objective
7. Promotes Cordial Relations
8. Creates Favorable Corporate Image
 Controlling

 According to Brech, Controlling is a systematic
exercise which is called as a process of checking
actual performance against the standards or plans
with a view to ensure adequate progress and also
recording such experience as is gained as a
contribution to possible future needs.
 The managerial function of control is the
measurement and correction of the performance of
subordinates in order to make sure that enterprise
objectives and the plans devised to attain them are
accomplished.
 Process of Controlling

Setting Standards

Measuring Actual Performance

Comparing Actual Performance with

standards

Identifying the deviation

Introducing Corrective Measures

 Essentials of Controlling

1. Focus on Strategic Control Points
2. Well-defined Standards
3. Direct Control
4. Flexible
5. Stress on Facts
6. Motivating Effect
7. Forward Lookig
8. Suitable
9. Prompt
10. Economical
 Techniques of Controlling

Traditional
Modern Techniques
Techniques
•Budgetary Control •CPM- PERT
•Cost Control •Return on
•Break Even Analysis Investment
•Statistical Control •Management Audit
•Financial Statements •Management
•Direct Supervision Information System
•MBO
•Self-Control