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Dr H R Kulkarni, Purandar College of Engg & Mgt Research, Pune [email protected]

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Unit-ICurrent Industrial Management PracticesBasics and need of management theory:

Managing is one of the most important human activities. Social organizations try to accomplish aims andobjectives as group, thus managing ensures the coordination of individual efforts . As many organized groups have become large, the task of managers has been increasing in importance and complexity. Henceforth, managerial theory

has become crucial in the way managers manage complex organizations.Defi niti on of M anagement:

Management is the art, or science, of achieving goals through people MANAGERS also supervise i.e. make sure people do what they are supposed to do. Managers are, therefore, expected to ensure greater productivity. More broadly, management i s the process of designi ng and maintaini ng an envir onment in which individuals, work ing

together in groups, eff iciently accomplish selected aims.

1.1: F unctions of M anagement – Planning, Organizing, Staffi ng, Dir ection, Co-ordination,

Co-operation, Control, L eadership. Principles of M anagement- Henry Fayol& F .W.Taylor,

Levels of M anagement, M anagement are Ar t or Science?

Management Objectives, Functions, Goals, and Essenti ali ty: Management Objectives

There are basically three management objectives.1. Ensuring organizational goals and targets – with least cost and minimum waste.2. Looking after health and welfare, and safety of staff.

3. Protecting the machinery and resources of the organization, including the human resources.

Manage functions Planning:Planni ng i nvolves selecting missions and objectives and the actions to achieve them. It requiresdecision-making – i.e., choosing future courses of action from among alternatives. Before a decision ismade, all that exists is planning study, analysis, or a proposal; there is no real plan.

INDUSTRIAL MANAGEMENT (T.E. E&TC/Electronics)Organizing:

People working together in groups to achieve some goal must have roles to play. Generally, these roleshave to be defined and structured by someone who wants to make sure that people contribute in a specific way togroup effort. Organizing, therefore, is that part of management that involves establishing an intentional structure ofroles for people to fi ll in an organization. Goals are assigned and assigned to people who can do those best. Indeed,

the purpose of an organizational structure is to help in creating an environment for human performance.Staffing:

Staff ing involves fi ll ing, and keeping f il led, the positi ons in the organization structure . This is done byidentifyingwork-force requirements; inventorying the people available; and recruiting, selecting, placing, promoting, appraising, planning the careers of, compensating, and training or otherwise developing bothcandidates and current jobholders to accomplish their tasks effectively and efficiently.

Leading:

Leading is the in fl uencing of people so that they wil l contri bute to organization and group goals; it has to do

predominantly with the interpersonal aspect of managing. Most important problems to managers arise from people – their desires and attitudes, their behavior as individuals and in groups. Hence,effective managers need to be effectiveleaders. Leading involves motivation, l eadership styles andapproaches and communication .

Controlling:

Contr oll ing, for example, budget for expense, is the measur ing and correcting of activiti es of

subordinates to ensure that events conform to plans. It measures performance against goals and plans,shows where

negative deviations exist, and by putting in motion actions to correct deviations, helpsensure accomplishment of plans.

Coordination:

Finally, coordination is the essence of manager-ship for achieving harmony among individual effortstoward the accomplishment of group goals. A manager who achieves such an aim is said to be a strategic

manager. The second goal or aim of all managers is that they must be productive. Productivityimprovement is about effectively performing the basic managerial and non-managerial activities. Simplydefined, Productivity is about the output-input ratio withi n a time per iod with due consideration for

equal i ty.Ef fectiveness is the achievement of objectives. Ef fi ciency is the achievement of the ends with the

leastamount of resources.

Managers cannot know whether they are productive unless they first know their goals and those of theorganization. Main areas for management :

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Problem solving:

Management is about solving problems that keep emerging all the time in the course of an organizationstruggling to achieve its goals and objectives. Problem solving should be accompanied by problem

identi f ication, analysis and the implementati on of remedies to managerial problems.

1) Administration:

Administration involves following laid down procedures for the execution, control , communication,

delegation and cr isis management .

2) Human resource management:

Human resource management should be based on strategic i ntegration of human resource, assessmentof workers,

and exchange of ideas between shareholders and workers .

3) Organizational leadership:Organizational leadership shoul d be developed along l ines of interpersonal

relationship, teamwork,self -motivation to perf orm, emotional strength and matur ity to handle situations, personal

integri ty,and general management ski l ls.

Different Functions of Management: Planning Function

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory

step. It is a systematic activity which determines when, how and who is going to perform a specific job.

Planning is a detailed programme regarding future courses of action. It is rightly said “Well plan is half

done”. Therefore planning takes into consideration available & prospective human and physical resources of

the organization so as to get effective coordination, contribution & perfect adjustment. It is the basic

management function which includes formulation of one or more detailed plans to achieve optimum balance

of needs or demands with the available resources. According to Urwick, “Planning is a mental predisposition

to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”.Planning is deciding best alternative among others to perform different managerial functions in order to

achieve predetermined goals. According to Koontz &O’Donell, “Planning is deciding in advance what to do,

how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It

makes possible things to occur which would not otherwise occur”.

Steps in Planning Function Planning function of management involves following steps:-

1. Establishment of objectives

a. Planning requires a systematic approach.

b. Planning starts with the setting of goals and objectives to be achieved.

c. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts.

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d. Moreover objectives focus the attention of managers on the end results to be achieved.

e. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be

stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be

ineffective.

f. As far as possible, objectives should be stated in quantitative terms. For example, Number of men

working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like

performance of quality control manager, effectiveness of personnel manager.

g. Such goals should be specified in qualitative terms.

h. Hence objectives should be practical, acceptable, workable and achievable.

2. Establishment of Planning Premisesa. Planning premises are the assumptions about the lively shape of events in future.

b. They serve as a basis of planning.

c. Establishment of planning premises is concerned with determining where one tends to deviate from the

actual plans and causes of such deviations.

d. It is to find out what obstacles are there in the way of business during the course of operations.

e. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great

extent.

f. Planning premises may be internal or external. Internal includes capital investment policy, management

labour relations, philosophy of management, etc. Whereas external includes socioeconomic, political and

economical changes.

g. Internal premises are controllable whereas external are non- controllable.

3. Choice of alternative course of actiona. When forecast are available and premises are established, a number of alternative course of actions have

to be considered.

b. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of

resources available and requirements of the organization.

c. The merits, demerits as well as the consequences of each alternative must be examined before the choice

is being made.

d. After objective and scientific evaluation, the best alternative is chosen.

e. The planners should take help of various quantitative techniques to judge the stability of an alternative.

4. Formulation of derivative plansa. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.

b. Secondary plans will flow from the basic plan. These are meant to support and expediate theachievement

of basic plans.

c. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. Forexample, if

profit maximization is the main aim of the enterprise, derivative plans will include salesmaximization,

production maximization, and cost minimization.

d. Derivative plans indicate time schedule and sequence of accomplishing various tasks.

5. Securing Co-operationa. After the plans have been determined, it is necessary rather advisable to take subordinates orthose who

have to implement these plans into confidence.

b. The purposes behind taking them into confidence are :-a. Subordinates may feel motivated since they are involved in decision making process.

b. The organization may be able to get valuable suggestions and improvement in formulation

as well as implementation of plans.

c. Also the employees will be more interested in the execution of these plans.

6. Follow up/Appraisal of plansa. After choosing a particular course of action, it is put into action.

b. After the selected plan is implemented, it is important to appraise its effectiveness.

c. This is done on the basis of feedback or information received from departments or personsconcerned.

d. This enables the management to correct deviations or modify the plan.

e. This step establishes a link between planning and controlling function.

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f. The follow up must go side by side the implementation of plans so that in the light of observationsmade,

future plans can be made more realistic.

Organizing function

Organizing is the function of management which follows planning. It is a function in which the

synchronization andcombination of human, physical and financial resources takes place. All the three

resources are important to getresults. Therefore, organizational function helps in achievement of results

which in fact is important for the functioningof a concern. According to Chester Barnard , “Organizing is a

function by which the concern is able to define the rolepositions, the jobs related and the coordination

between authority and responsibility. Hence, a manager always hasto organize in order to get results.A

manager performs organizing function with the help of following steps:-1. Identification of activities - All the activities which have to be performed in a concern have to be

identifiedfirst. For example, preparation of accounts, making sales, record keeping, quality control,

inventory control,etc. All these activities have to be grouped and classified into units.

2. Departmentally organizing the activities - In this step, the manager tries to combine and group

similarand related activities into units or departments. This organization of dividing the whole concern

intoindependent units and departments is called departmentation.

3. Classifying the authority - Once the departments are made, the manager likes to classify the powers

andits extent to the managers. This activity of giving a rank in order to the managerial positions is

calledhierarchy. The top management is into formulation of policies, the middle level management

intodepartmental supervision and lower level management into supervision of foremen. The clarification

ofauthority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the

running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication

oroverlapping of efforts and this helps in bringing smoothness in a concern’s working.

4. Co-ordination between authority and responsibility - Relationships are established among

variousgroups to enable smooth interaction toward the achievment of the organizational goal. Each

individual ismade aware of his authority and he/she knows whom they have to take orders from and to

whom they areaccountable and to whom they have to report. A clear organizational structure is drawn and

all theemployees are made aware of it.

Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and

effectiveselection, appraisal and development of the personnels to fill the roles assigned to theemployers/workforce.According to Theo Haimann, “Staffing pertains to recruitment, selection, development

and compensation ofsubordinates.”

Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the most important mangerial act

alongwith planning, organizing, directing and controlling. The operations of these four functions depend

upon themanpower which is available through staffing function.

2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types

ofconcerns where business activities are carried out.

3. Staffing is a continuous activity- This is because staffing function continues throughout the life of

anorganization due to the transfers and promotions that take place.

4. The basis of staffing function is efficient management of personnels- Human resources can beefficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training

anddevelopment, providing remuneration, etc.

5. Staffing helps in placing right men at the right job. It can be done effectively through proper

recruitmentprocedures and then finally selecting the most suitable candidate as per the job requirements.

6. Staffing is performed by all managers depending upon the nature of business, size of the

company,qualifications and skills of managers,etc. In small companies, the top management generally

performs thisfunction.In medium and small scale enterprise, it is performed especially by the personnel

department of thatconcern.

DIRECTING Function of Management

DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of

theworkers to achieve predetermined goals. Directing is said to be the heart of management process.

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Planning,organizing, staffing have got no importance if direction function does not take place.Directing

initiates action and it is from here actual work starts. Direction is said to be consisting of human factors.

Insimple words, it can be described as providing guidance to workers is doing work. In field of management,

directionis said to be all those activities which are designed to encourage the subordinates to work

effectively and efficiently.According to Human, “Directing consists of process or technique by which

instruction can be issued and operations

can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring,

overseeing andinstructing people towards accomplishment of organizational goals.

Direction has got following characteristics:

1. Pervasive Function - Directing is required at all levels of organization. Every manager providesguidanceand inspiration to his subordinates.

2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of

organization.

3. Human Factor - Directing function is related to subordinates and therefore it is related to human

factor.Since human factor is complex and behaviour is unpredictable, direction function becomes important.

4. Creative Activity - Direction function helps in converting plans into performance. Without this

function,people become inactive and physical resources are meaningless.

5. Executive Function - Direction function is carried out by all managers and executives at all

levelsthroughout the working of an enterprise, a subordinate receives instructions from his superior only.

6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behaviour

isunpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is

whatthe executive does in this function. Therefore, it is termed as having delicacy in it to tackle human

behaviour.

Controlling Function of Management

What is Controlling?

Controlling consists of verifying whether everything occurs in confirmities with the plans adopted,

instructions issuedand principles established. Controlling ensures that there is effective and efficient

utilization of organizationalresources so as to achieve the planned goals. Controlling measures the deviation

of actual performance from thestandard performance, discovers the causes of such deviations and helps in

taking corrective actionsAccording to Brech, “Controlling is a systematic exercise which is called as a

process of checking actual performanceagainst the standards or plans with a view to ensure adequate progress and also recording such experience as isgained as a contribution to possible future

needs.”According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative

to a plannedaction, so should a business manager continually take reading to assure himself that his

enterprise is on rightcourse.”

Controlling has got two basic purposes

1. It facilitates co-ordination

2. It helps in planning

Features of Controlling FunctionFollowing are the characteristics of controlling function of management-

1. Controlling is an end function- A function which comes once the performances are made in conformities

with plans.2. Controlling is a pervasive function- which means it is performed by managers at all levels and in all

typeof concerns.

3. Controlling is forward looking- because effective control is not possible without past being

controlled.Controlling always look to future so that follow-up can be made whenever required.

4. Controlling is a dynamic process- since controlling requires taking reveal methods, changes have to

bemade wherever possible.

5. Controlling is related with planning- Planning and Controlling are two inseparable functions

ofmanagement. Without planning, controlling is a meaningless exercise and without controlling, planning

isuseless. Planning presupposes controlling and controlling succeeds planning .

Leadership

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Leadership is a process by which an executive can direct, guide and influence the behavior and work of

otherstowards accomplishment of specific goals in a given situation. Leadership is the ability of a manager

to induce thesubordinates to work with confidence and zeal.Leadership is the potential to influence

behaviour of others. It is also defined as the capacity to influence a grouptowards the realization of a goal.

Leaders are required to develop future visions, and to motivate the organizational

members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives

enthusiastically. It is

the human factor which binds a group together and motivates it towards goals.”

Characteristics of Leadership1. It is a inter-personal process in which a manager is into influencing and guiding workers towards

attainmentof goals.

2. It denotes a few qualities to be present in a person which includes intelligence, maturity and personality.

3. It is a group process. It involves two or more people interacting with each other.

4. A leader is involved in shaping and moulding the behaviour of the group towards accomplishment

oforganizational goals.

5. Leadership is situation bound. There is no best style of leadership. It all depends upon tackling with

thesituations.

Leadership and management are the terms that are often considered synonymous. It is essential to

understand thatleadership is an essential part of effective management. As a crucial component of

management, remarkableleadership behaviour stresses upon building an environment in which each and

every employee develops and excels.Leadership is defined as the potential to influence and drive the group

efforts towards the accomplishment of goals.This influence may originate from formal sources, such as that

provided by acquisition of managerial position in anorganization.A manager must have traits of a leader, i.e.,

he must possess leadership qualities. Leaders develop and beginstrategies that build and sustain competitive

advantage. Organizations require robust leadership and robustmanagement for optimal organizational

efficiency.

Differences between Leadership and ManagementLeadership differs from management in a sense that:

1. While managers lay down the structure and delegates authority and responsibility, leaders provides

directionby developing the organizational vision and communicating it to the employees and inspiring themtoachieve it.

2. While management includes focus on planning, organizing, staffing, directing and controlling; leadership

ismainly a part of directing function of management. Leaders focus on listening, building

relationships,teamwork, inspiring, motivating and persuading the followers.

3. While a leader gets his authority from his followers, a manager gets his authority by virtue of his position

inthe organization.

4. While managers follow the organization’s policies and procedure, the leaders follow their own instinct.

5. Management is more of science as the managers are exact, planned, standard, logical and more of

mind.Leadership, on the other hand, is an art. In an organization, if the managers are required, then leaders

are amust/essential.

6. While management deals with the technical dimension in an organization or the job content;leadershipdeals with the people aspect in an organization.

7. While management measures/evaluates people by their name, past records, present

performance;leadership sees and evaluates individuals as having potential for things that can’t be measured,

i.e., it dealswith future and the performance of people if their potential is fully extracted.

8. If management is reactive, leadership is proactive.

9. Management is based more on written communication, while leadership is based more on

verbalcommunicationA leader has got multidimensional traits in him which makes him appealing and

effective in behavior. The followingare the requisites to be present in a good leader:

1. Physical appearance- A leader must have a pleasing appearance. Physique and health are very

importantfor a good leader.

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2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is forward looking.

Hehas to visualize situations and thereby has to frame logical programmes.

3. Intelligence- A leader should be intelligent enough to examine problems and difficult situations. He

shouldbe analytical who weighs pros and cons and then summarizes the situation. Therefore, a positive bent

ofmind and mature outlook is very important.

4. Communicative skills- A leader must be able to communicate the policies and procedures clearly,

precisely and effectively. This can be helpful in persuasion and stimulation.

5. Objective- A leader has to be having a fair outlook which is free from bias and which does not reflects

hiswillingness towards a particular individual. He should develop his own opinion and should base

hisjudgement on facts and logic.6. Knowledge of work- A leader should be very precisely knowing the nature of work of his

subordinatesbecause it is then he can win the trust and confidence of his subordinates.

7. Sense of responsibility- Responsibility and accounta bility towards an individual’s work is very important

tobring a sense of influence. A leader must have a sense of responsibility towards organizational

goalsbecause only then he can get maximum of capabilities exploited in a real sense. For this, he has to

motivatehimself and arouse and urge to give best of his abilities. Only then he can motivate the subordinates

to thebest.

8. Self-confidence and will-power- Confidence in himself is important to earn the confidence of

thesubordinates. He should be trustworthy and should handle the situations with full will power. (You can

readmore about Self-Confidence at : Self Confidence - Tips to be Confident and Eliminate Your

Apprehensions).

9. Humanist-This trait to be present in a leader is essential because he deals with human beings and is

inpersonal contact with them. He has to handle the personal problems of his subordinates with great care

andattention. Therefore, treating the human beings on humanitarian grounds is essential for building a

congenialenvironment.

10. Empathy- It is an old adage “Stepping into the shoes of others”. This is very important because

fairjudgement and objectivity comes only then. A leader should understand the problems and complaints

ofemployees and should also have a complete view of the needs and aspirations of the employees. This

helpsin improving human relations and personal contacts with the employees.

From the above qualities present in a leader, one can understand the scope of leadership and it’s importance

forscope of business. A leader cannot have all traits at one time. But a few of them helps in achievingeffective results.

Coordination function

There are three basic coordinating mechanisms: mutual adjustment, direct supervision, and standardization

(of which

there are three types: of work processes, of work outputs, and of worker skills).

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Mutual Adjustment

This mechanism is based on the simple process of informal communication. It is used in very small

companies, suchas a 5-person software shop, or for very, very complicated tasks, such as putting the first

person on the moon. Mutualadjustment is the same mechanism used by furniture movers to manoeuvre

through a house, or paddlers to take acanoe downriver, or jazz musicians playing a live engagement. It's

especially useful when nobody really knows aheadof time how to do what they're doing.

Direct Supervision

Achieves coordination by having one person take responsibility for the work of others, issuing instructions

andmonitoring their actions. An example is the offensive unit of a football team. Here, there is marked

division of laborand specialization, and the efforts of the players are coordinating by a quarterback calling

specific plays.If the organization is large enough, one person cannot handle all the members, so multiple

leaders or managers mustbe used, then the efforts of these people (the managers) are coordinated by a

manager of managers, and so on. Standardization

A third mechanism of coordination is standardization. Here, the coordination is achieved "on the drawing

board", so tospeak, or "at compile-time" if you like, not during the action or "run-time". The coordination is

pre-programmed in oneof three ways:

Work Processes. An example is the set of assembly instructions that come with a child's toy. Here, the

manufacturerstandardizes the work process of the parent. Often, the machinery in a factory effectively

standardizes work byautomatically providing only, say, blue paint when blue paint is needed, and only red

paint when red paint is needed.

Outputs.Standardized outputs means that there are specifications that the product or work output must meet,

butaside from that the worker is free to do as they wish. Stereo equipment manufacturers have a lot of

freedom indesigning their products, but the interface portions of the product (the connections to other stereodevices like CD's,speakers, tape-recorders, etc.) must be the same as everyone else's, or else it would be hard

to put together acomplete system.

Worker Skills. Professional schools, like medical schools, law school, business school, produce workers

that do stuffexactly the same way. How do you treat a staphylococcus infection? You use one of the

following antibiotics. It's aseries of recipes that are memorized. Employers (e.g., hospitals) can rely on these

employees (physicians) to dothings the standard way, which allows other employees (e.g., nurses) to

coordinate smoothly with them. When asurgeon and an anaesthesiologist meet for the first time in the

operating room, they have no problem workingtogether because by virtue of their training they know exactly

what to expect from each other.

Cooperation function

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Cooperation or co-operation is the process of working or acting together, which can be accomplished by

bothintentional and non-intentional agents. In its simplest form it involves things working in harmony, side

by side, while inits more complicated forms, it can involve something as complex as the inner workings of a

human being or even thesocial patterns of a nation. It is the alternative to working separately in competition.

Cooperation can also beaccomplished by computers, which can handle shared resources simultaneously,

while sharing processor time.

Frederick W. Taylor: Management TheoryFrederick Winslow Taylor is a controversial figure in management history. His innovations in industrial

engineering,particularly in time and motion studies, paid off in dramatic improvements in productivity. Atthe same time, he hasbeen credited with destroying the soul of work, of dehumanizing factories, making men

into automatons.

Under Taylor's management system, factories are managed through scientific methods rather than by use of

theempirical "rule of thumb" so widely prevalent in the days of the late nineteenth century when F. W.

Taylor devised hissystem and published "Scientific Management" in 1911.

The main elements of the Scientific Management are : "Time studies Functional or specialized

supervisionStandardization of tools and implements Standardization of work methods Separate Planning

function Managementby exception principle The use of "slide-rules and similar time-saving devices"

Instruction cards for workmen Taskallocation and large bonus for successful performance The use of the

'differential rate' Mnemonic systems forclassifying products and implements A routing system A modern

costing system etc. etc. " Taylor called theseelements "merely the elements or details of the mechanisms ofmanagement" He saw them as extensions of the fourprinciples of management.

1. The development of a true science

2. The scientific selection of the workman

3. The scientific education and development of the workman

4. Intimate and friendly cooperation between the management and the men.

Taylor warned of the risks managers make in attempting to make change in what would presently be called,

theculture, of the organization. He stated the importance of management commitment and the need for

gradualimplementation and education. He described "the really great problem" involved in the change

"consists of thecomplete revolution in the mental attitude and the habits of all those engaged in the

management, as well of theworkmen." Taylor taught that there was one and only one method of work that

maximized efficiency. "And this onebest method and best implementation can only be discovered ordeveloped through scientific study and analysis...

This involves the gradual substitution of science for 'rule of thumb' throughout the mechanical arts."

"Scientificmanagement requires first, a careful investigation of each of the many modifications of the same

implement,developed under rule of thumb; and second, after time and motion study has been made of the

speed attainable witheach of these implements, that the good points of several of them shall be unified in a

single standardimplementation, which will enable the workman to work faster and with greater easy than he

could before. This oneimplement, then is the adopted as standard in place of the many different kinds before

in use and it remains standardfor all workmen to use until superseded by an implement which has been

shown, through motion and time study, tobe still better." An important barrier to use of scientific

management was the limited education of the lower level of

supervision and of the work force. A large part of the factory population was composed of recent immigrantswholacked literacy in English. In Taylor's view, supervisors and workers with such low levels of education

were notqualified to plan how work should be done. Taylor's solution was to separate planning from

execution. "In almost allthe mechanic arts the science which underlies each act of each workman is so great

and amounts to so much thatthe workman who is best suited to actually doing the work is incapable of fully

understanding this science.." To applyhis solution, Taylor created planning departments, staffed them with

engineers, and gave them the responsibility to:

1. Develop scientific methods for doing work.

2. Establish goals for productivity.

3. Establish systems of rewards for meeting the goals.

4. Train the personnel in how to use the methods and thereby meet the goals.

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Perhaps the key idea of Scientific management and the one which has drawn the most criticism was the

concept oftask allocation. Task allocation is the concept that breaking task into smaller and smaller tasks

allows thedetermination of the optimum solution to the task. "The man in the planning room, whose

specialty is planning ahead,invariably finds that the work can be done more economically by subdivision of

the labour; each act of eachmechanic, for example, should be preceded by various preparatory acts done by

other men."The main argument against Taylor is this reductionist approach to work dehumanizes the worker.

Theallocation ofwork "specifying not only what is to be done but how it is to done and the exact time

allowed for doing it" is seen as

leaving no scope for the individual worker to excel or think. This argument is mainly due to later writing

rather thanTaylor's work as Taylor stated "The task is always so regulated that the man who is well suited tohis job will thrivewhile working at this rate during a long term of years and grow happier and more

prosperous, instead of beingoverworked." Taylor's concept of motivation left something to be desired when

compared to later ideas. His methodsof motivation started and finished at monetary incentives. While critical

of the then prevailing distinction of "us "and"them" between the workforce and employers he tried to find a

common ground between the working and managingclasses."Scientific Management has for its foundation

the firm conviction that the true interests of the two are one and thesame; that prosperity for the employer

cannot exist a long term of years unless it is accompanied by prosperity for theemployee [sic], and vice versa

.." However, this emphasis on monetary rewards was only part of the story. Rivalrybetween the Bethlehem

and Pittsburgh Steel plants led to the offer from Pittsburgh of 4.9 cents per ton against

Bethlehem's rate of 3.2 cents per day to the ore loaders. The ore loaders were spoken to individually and

their valueto the company reinforced and offers to re-hire them at any time were made. The majority of the

ore loaders took upthe Pittsburgh offers. Most had returned after less than six weeks. The rates at Pittsburgh

were determined by gangrates. Peer pressure from the Pittsburgh employees to not work hard meant that the

Bethlehem workers actuallyreceived less pay than at Bethlehem. Two of the Bethlehem workers requested to

be placed in a separate gang, thiswas rejected by management for the extra work required by management to

keep separate record for each worker.Taylor places the blame squarely on management and their inability "to

do their share of the work in cooperating withthe workmen."

Taylor's attitudes towards workers were laden with negative bias "in the majority of cases this man

deliberately plansto do as little as he safely can." The methods that Taylor adopted were directed solely

towards the uneducated."When he tells you to pick up a pig and walk, you pick it up and walk, and when he

tells you to sit down and rest, yousit down. You do that right through the day. And what's more, no backtalk". This type of behaviour towards workersappears barbaric in the extreme to the modern reader, however,

Taylor used the example of Schmidt at theBethlehem Steel Company to test his theories. Taylor admits

"This seems rather rough talk. And indeed it would be ifapplied to an educated mechanic, or even an

intelligent labourer." The fact that Taylor took the effort to firstly knowthe workers name and to cite it is

some indication that he empathized with the workforce. This study improved theworkrate of Schmidt from

12.5 tons to 47.5 tons per day showing the worth of Scientific Management.The greatest abuse of Scientific

Management has come from applying the techniques without the philosophy behind

them. It is obvious from Taylor's own observations that the above discussion would be misplaced in other

workers.Taylor acknowledged the potential for abuse in his methods. "The knowledge obtained from

accurate time study, forexample, is a powerful implement, and can be used, in one case to promote harmony

between workmen and themanagement, by gradually educating, training, and leading the workmen into newand better methods of doing thework, or in the other case, it may be used more or less as a club to drive the

workmen into doing a larger day's workfor approximately the same pay that they received in the past."

Scientific Study and standardization were importantparts of the Scientific Management. One example, was

the study undertaken to determine the optimum shovel loadfor workers. The figure of 21 pounds was arrived

at by the study. To ensure that this shovel load was adhered to, aseries of different shovels were purchased

for different types of material. Each shovel was designed to ensure thatonly 21 pounds could be lifted. This

stopped the situation where "each shoveller owned his own shovel, that he wouldfrequently go from

shoveling ore, with a load of about 30 pounds per shovel, to handling rice coal, with a load on thesame

shovel of less than 4 pounds. In the one case, he was so overloaded that it was impossible for him to do a

fullday's work, and in the other case he was so ridiculously under-loaded that it was manifestly impossible to

evenapproximate a day's work."Taylor spent a considerable amount of his books in describing "soldiering"

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the act of 'loafing' both at an individuallevel and "systematic soldiering". He described the main reasons that

workers were not performing their work at theoptimum. Though worded in a patronizing way the essence of

the descriptions are still valid:

1. The belief that increased output would lead to less workers.

2. Inefficiencies within the management control system such as poorly designed incentive schemes and

hourly pay

rates not linked to productivity.

3. Poor design of the performance of the work by rule-of-thumbThe fear of redundancies within the

workforce was a valid argument during the previous style of management. Taylornot only countered this

argument by using economic arguments of increased demand due to decreased pricing butput forward theidea of sharing the gains with the workforce. Taylor saw the weaknesses of piece work in the

workersreactions to gradual decreases in the piece rate as the worker produced more pieces by working

harder and/orsmarter. The worker then is determined to have no more reduction in rate by "soldiering". This

deception leads to anantagonistic view of management and a general deterioration of the

worker/management relationship. Taylor alsowas a strong advocate of worker development. It follows that

the most important object of both the workman and theestablishment should be the training and development

of each individual in the establishment, so that he can do ( athis fastest pace and with the maximum of

efficiency) the highest class of work for which his natural abilities for him."Taylor's ideas on management

and workers speaks of justice for both parties. "It (the public) will no longer toleratethe type of employer

who has his eyes only on dividends alone, who refuses to do his share of the work and whomerely cracks the

whip over the heads of his workmen and attempts to drive them harder work for low pay. No morewill it

tolerate tyranny on the part of labour which demands one increase after another in pay and shorter hours

whileat the same time it becomes less instead of more efficient." Taylor's system was widely adopted in the

United Statesand the world. Although the Taylor system originated in the factory production departments,

the concept of separating

planning from execution was universal in nature and, hence, had potential application to other areas:

productionsupport services offices operations service industries.

Management's new responsibilities were extended to include: Replacing the old rule-of-thumb with

scientificmanagement Scientifically select and train, teach and develop the workman "Heartily cooperate

with the men so as toinsure[sic] all the work being done in accordance with the principles of the science

which has been developed" Takeover the work for which they are "better fitted" than the workmen.Relationship between Taylorism and TQM Taylor'smore general summary of the principles of Scientific

Management are better suited for inclusion into the TQMmethodology, than the narrow definitions. "It is no

single element , but rather the this whole combination, thatconstitutes Scientific Management, which may be

summarized as: Science, not rule of thumb Harmony, not discordCooperation, not individualism Maximum

output in place of restricted output The development of each man to hisgreatest efficiency and prosperity"

Much has happened, since Taylor developed his method of ScientificManagement, to make obsolete the

premises on which he based his concepts: Lack of education is no longer reasonenough to separate the

planning function The balance of power between managers and the work force has changed.Whereas in

Taylor's time it was heavily weighted against the workers. Unionism (or the threat of it) has

profoundlychanged that balance. Changes in the climate of social thinking.Revolts against the

"dehumanizing" of work.A basic tenet of Scientific management was that employees were not highlyeducated and thus were unable toperform any but the simplest tasks. Modern thought is that all employees

have intimate knowledge of job conditionsand are therefore able to make useful contributions. Rather than

dehumanizing the work and breaking the work downinto smaller and smaller units to maximize efficiency

without giving thought to the job satisfaction of the working.

Encouragement of work based teams in which all workers may contribute. Such contributions increase

workermorale, provide a sense of ownership, and improve management-worker relations generally.

Fayol (1841-1925) Functions and Principles of ManagementFayol's career began as a mining engineer. He then moved into research geology and in 1888 joined,

Comambaultas Director. Comambault was in difficulty but Fayol turned the operation round. On retirement

he published his work -a comprehensive theory of administration - described and classified administrative

management roles and processesthen became recognised and referenced by others in the growing discourse

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about management. He is frequentlyseen as a key, early contributor to a classical or administrative

management school of thought (even though hehimself would never have recognised such a "school").His

theorising about administration was built on personal observation and experience of what worked well in

terms oforganisation. His aspiration for an "administrative science" sought a consistent set of principles that

all organizationsmust apply in order to run properly.

F. W. Taylor published "The Principles of Scientific Management" in the USA in 1911, and Fayol in 1916

examinedthe nature of management and administration on the basis of his French mining organisation

experiences..Fayol synthesised various tenets or principles of organisation and management and Taylor on

work methods,measurement and simplification to secure efficiencies. Both referenced functional

specialisation.Both Fayol and Taylor were arguing that principles existed which all organisations - in orderto operate and beadministered efficiently - could implement. This type of assertion typifies a "one best way"

approach to managementthinking. Fayol's five functions are still relevant to discussion today about

management roles and action.

1. to forecast and plan – prevoyanceexamine the future and draw up plans of action

2. to organisebuild up the structure, material and human of the undertaking

3. to commandmaintain activity among the personnel

4. to co-ordinatebind together, unify and harmonise activity and effort

5. to controlsee that everything occurs in conformity with policy and practise

Fayol also synthesised 14 principles for organisational design and effective administration. It isworthwhile

reflecting on these are comparing the conclusions to contemporary utterances by Peters,Kanter and Handy to

name but three management gurus. Fayol's 14 principles are: specialisation/division of labourA principle of

work allocation and specialisation in order to concentrate activities to enablespecialisation of skills and

understandings, more work focus and efficiency. authority with corresponding responsibility

If responsibilities are allocated then the post holder needs the requisite authority to carry theseout including

the right to require others in the area of responsibility to undertake duties.Authority stems from:

• that ascribed from the delegation process (the job holder is assigned to act as the agentof the high authority

to whom they report - hierarchy)

• allocation and permission to use the necessary resources needed (budgets, assets, staff)to carry out the

responsibilities.

• selection - the person has the expertise to carry out the responsibilities and the personal

qualities to win the support and confidence of others.The R = A correspondence is important to understand.R = A enables accountability in thedelegation process. Who do we cope with situations where R > A? Are

there work situationswhere our R< A?"judgement demands high moral character, therefore, a good leader

should possess and infuseinto those around him courage to accept responsibility. The best safeguard against

abuse ofauthority and weakness on the part of a higher manager is personal integrity and particularlyhigh

moral character of such a manager .....this integrity, is conferred neither by election norownership. " 1916A

manager should never be given authority without responsibility--and also should never begiven

responsibility without the associated authority to get the work done.

• disciplineThe generalisation about discipline is that discipline is essential for the smooth running of

abusiness and without it - standards, consistency of action, adherence to rules and values – noenterprise

could prosper."in an essence - obedience, application, energy, behaviour and outward marks of

respectobserved in accordance with standing agreements between firms and its employees " 1916• unity of command

The idea is that an employee should receive instructions from one superior only. Thisgeneralisation still

holds - even where we are involved with team and matrix structures whichinvolve reporting to more than

one boss - or being accountable to several clients. The basicconcern is that tensions and dilemmas arise

where we report to two or more bosses. One bossmay want X, the other Y and the subordinate is caught

between the devil and the deep blue sea.

• unity of direction

The unity of command idea of having one head (chief executive, cabinet consensus) with agreepurposes and

objectives and one plan for a group of activities) is clear.

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• subordination of individual interest to the general interestFayol's line was that one employee's interests or

those of one group should not prevail over theorganisation as a whole. This would spark a lively debate

about who decides that the interests of

the organisation as a whole are. Ethical dilemmas and matters of corporate risk and thebehaviour of

individual "chancers" are involved here. Fayol's work - assumes a shared set ofvalues by people in the

organisation - a unitarism where the reasons for organisational activitiesand decisions are in some way

neutral and reasonable.

• remuneration of staff" the price of services rendered. " 1916The general principle is that levels of

compensation should be "fair" and as far as possibleafford satisfaction both to the staff and the firm (in terms

of its cost structures and desirefor profitability/surplus).• Centralisation

Centralisation for HF is essential to the organisation and a natural consequence of organising.This issue does

not go away even where flatter, devolved organisations occur. Decentralisation -is frequently centralisaed-

decentralisation !!! The modes of control over the actions and resultsof devolved organisations are still

matters requiring considerable attention.

• scalar chain/line of authority The scalar chain of command of reporting relationships from top executive to the ordinary shopoperative or

driver needs to be sensible, clear and understood.

• order

The level of generalisation becomes difficult with this principle. Basically an organisation"should" provide

an orderly place for each individual member - who needs to see how their rolefits into the organisation and

be confident, able to predict the organisations behaviour towardsthem. Thus policies, rules, instructions and

actions should be understandable and understood.

Orderliness implies steady evolutionary movement rather than wild, anxiety provoking,unpredictable

movement.

• equity

Equity, fairness and a sense of justice "should"pervade the organisation - in principle andpractice.

• stability of tenure Time is needed for the employee to adapt to his/her work and perform it effectively. Stability oftenure

promotes loyalty to the organisation, its purposes and values.

• initiative At all levels of the organisational structure, zeal, enthusiasm and energy are enabled by peoplehaving the

scope for personal initiative. (Note: Tom Peters recommendations in respect ofemployee empowerment)

• espri t de corps

Here Fayol emphasises the need for building and maintaining of harmony among the work force, team work

and sound interpersonal relationships.In the same way that Alfred P Sloan, the executive head of General

Motors reorganised the company

into semi-autonomous divisions in the 1920s, corporations undergoing reorganisation still apply"classical

organisation" principles - very much in line with Fayol's recommendations.

Mayo’s Theory Elton Mayo (1880 – 1949) believed that workers are not just concerned with money but could be better

motivated by having their social needs met whilst at work (something that Taylor ignored). He introduced

the Human Relation School of thought, which focused on managers taking more of an interest in the

workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting

together.

Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in

Chicago

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He isolated two groups of women workers and studied the effect on their productivity levels of changing

factors such as lighting and working conditions.

He expected to see productivity levels decline as lighting or other conditions became progressively worse

What he actually discovered surprised him: whatever the change in lighting or working conditions, the

productivity levels of the workers improved or remained the same.

From this Mayo concluded that workers are best motivated by:

Better communication between managers and workers ( Hawthorne workers were consulted over the

experiments and also had the opportunity to give feedback)

Greater manager involvement in employees working lives ( Hawthorne workers responded to the

increased level of attention they were receiving)

Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams)

In practice therefore businesses should re-organise production to encourage greater use of team working and

introduce personnel departments to encour age greater manager involvement in looking after employees’interests. His theory most closely fits in with a paternalistic style of management.

Administration and Management

According to Theo Haimann, “Administration means overall determination of policies, setting of major objectives, theidentification of general purposes and laying down of broad programmes and projects”. It refers to the activities ofhigher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance,leadership & control of the efforts of the groups towards some common goals”. Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating,actuating, integrating the diverse organizational components while sustaining the viability of the organization towards

some pre-determined goals. In other words, it is an art of getting things done through & with the people in formallyorganized groups.

The difference between Management and Administration can be summarized under 2 categories: -FunctionsUsage / ApplicabilityOn the Basis of Functions: -

Basis Management Administration

Meaning Management is an art of getting thingsdone through others by directing theirefforts towards achievement of pre-

determined goals.

It is concerned with formulation of broadobjectives, plans & policies.

Nature Management is an executing function. Administration is a decision-makingfunction.

Process Management decides who should as it &how should he dot it.

Administration decides what is to be done& when it is to be done.

Function Management is a doing function becausemanagers get work done under theirsupervision.

Administration is a thinking functionbecause plans & policies are determinedunder it.

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Skills Technical and Human skills Conceptual and Human skills

Level Middle & lower level function Top level function

On the Basis of Usage: -

Basis Management Administration

Applicability It is applicable to business concerns i.e. profit-making organization. It is applicable to non-business concerns i.e.clubs, schools, hospitals etc.

Influence The management decisions are influenced bythe values, opinions, beliefs & decisions of themanagers.

The administration is influenced by public opinion,govt. policies, religious organizations, customsetc.

Status Management constitutes the employees of theorganization who are paid remuneration (in theform of salaries & wages).

Administration represents owners of theenterprise who earn return on their capitalinvested & profits in the form of dividend.

Practically, there is no difference between management & administration. Every manager is concerned with both -administrative management function and operative management function as shown in the figure. However, themanagers who are higher up in the hierarchy denote more time on administrative function & the lower level denotemore time on directing and controlling worker’s performance i.e. management.

The Figure above clearly shows the degree of administration and management performed by the different levels ofmanagementManagement and Administration oversees ICE's budget, expenditures, accounting and finance, procurement, humanresources and personnel, workforce recruitment, equal employment opportunity, information technology systems,facilities, property and equipment needs. In addition, Management and Administration identifies and tracks theagency's performance measurements.

Among Management and Administration's vital contributions to the ICE mission are the following:Provides a solid integrated information technology infrastructure.Leads a dynamic human capital program that includes aggressive recruitment endeavors.Executes sound and cost-effective financial management policies, standards and systems.Establishes acquisition strategies and oversight of procurement activities and contracts.In addition, Management and Administration ensures collaboration with internal stakeholders to increase diversity,guarantees timely responses to Freedom of Information Act requests and supports the agency's training needs.Working as an Allied Health Professional you will likely have some sort of managing role. This may include managingyour caseload, program area, other Allied Health Professionals, support staff such as Allied Health Assistants, orstudents. Developing administrative and management skills will enable you to better fulfil these aspects of your role.

Top Level of Management

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The Top Level Management consists of the Board of Directors (BOD) and the Chief Executive Officer

(CEO). The Chief Executive Officer is also called General Manager (GM) or Managing Director (MD) or

President. The Board of Directors are the representatives of the Shareholders, i.e. they are selected by the

Shareholders of the company. Similarly, the Chief Executive Officer is selected by the Board of Directors of

an organisation.

The main role of the top level management is summarized as follows :-

1. The top level management determines the objectives, policies and plans of the organisation.2. They mobilises (assemble and bring together) available resources.3. The top level management does mostly the work of thinking, planning and deciding. Therefore, they

are also called as the Administrators and the Brain of the organisation.

4. They spend more time in planning and organising.5. They prepare long-term plans of the organisation which are generally made for 5 to 20 years.6. The top level management has maximum authority and responsibility. They are the top or final

authority in the organisation. They are directly responsible to the Shareholders, Government and the

General Public. The success or failure of the organisation largely depends on their efficiency and

decision making.

7. They require more conceptual skills and less technical Skills.

Middle Level of Management

The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers, and theJunior Executives. The Departmental heads are Finance Managers, Purchase Managers, etc. The Branch

Managers are the head of a branch or local unit. The Junior Executives are Assistant Finance Managers,

Assistant Purchase Managers, etc. The Middle level Management is selected by the Top Level Management.

The middle level management emphasize more on following tasks :-

1. Middle level management gives recommendations (advice) to the top level management.2. It executes (implements) the policies and plans which are made by the top level management.3. It co-ordinate the activities of all the departments.4. They also have to communicate with the top level Management and the lower level management.5. They spend more time in co-ordinating and communicating.6. They prepare short-term plans of their departments which are generally made for 1 to 5 years.7. he middle Level Management has limited authority and responsibility. They are intermediary

between top and lower management. They are directly responsible to the chief executive officer and

board of directors.

8. Require more managerial and technical skills and less conceptual skills.

Lower Level of Management

The lower level management consists of the Foremen and the Supervisors. They are selected by the middle

level management. It is also called Operative / Supervisory level or First Line of Management.

The lower level management performs following activities :-

1. Lower level management directs the workers / employees.2. They develops morale in the workers.

3. It maintains a link between workers and the middle level management.

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4. The lower level management informs the workers about the decisions which are taken by themanagement. They also inform the management about the performance, difficulties, feelings,

demands, etc., of the workers.

5. They spend more time in directing and controlling.6. The lower level managers make daily, weekly and monthly plans.7. They have limited authority but important responsibility of getting the work done from the workers.

They regularly report and are directly responsible to the middle level management.

8. Along with the experience and basic management skills they also require more technical andcommunication skills.

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the

ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time

on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise.

b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

c. It prepares strategic plans & policies for the enterprise.

d. It appoints the executive for middle level i.e. departmental managers.

e. It controls & coordinates the activities of all the departments.

f. It is also responsible for maintaining a contact with the outside world.

g. It provides guidance and direction.

h. The top management is also responsible towards the shareholders for the performance of the

enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the

top management for the functioning of their department. They devote more time to organizational

and directional functions. In small organization, there is only one layer of middle level of

management but in big enterprises, there may be senior and junior middle level management. Their

role can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and directives of the top

management.

b. They make plans for the sub-units of the organization.

c. They participate in employment & training of lower level management.

d. They interpret and explain policies from top level management to lower level.

e. They are responsible for coordinating the activities within the division or department.

f. It also sends important reports and other important data to top level management.

g. They evaluate performance of junior managers.

h. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors,

foreman, section officers, superintendent etc. According to R.C. Davis, “Su pervisory management

refers to those executives whose work has to be largely with personal oversight and direction of

operative employees”. In other words, they are concerned with direction and controlling function of

management. Their activities include -

a. Assigning of jobs and tasks to various workers.b. They guide and instruct workers for day to day activities.

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c. They are responsible for the quality as well as quantity of production.

d. They are also entrusted with the responsibility of maintaining good relation in the organization.

e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher

level and higher level goals and objectives to the workers.

f. They help to solve the grievances of the workers.

g. They supervise & guide the sub-ordinates.

h. They are responsible for providing training to the workers.

i. They arrange necessary materials, machines, tools etc for getting the things done.

j. They prepare periodical reports about the performance of the workers.

k. They ensure discipline in the enterprise.l. They motivate workers.

m. They are the image builders of the enterprise because they are in direct contact with the workers.

Managerial Roles

To meet the many demands of performing their functions, managers assume multiple roles. A role is an

organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of all managers.

The ten roles are divided into three groups: interpersonal, informational, and decisional.

The informational roles link all managerial work together. The interpersonal roles ensure that information

is provided. The decisional roles make significant use of the information.

The performance of managerial roles and the requirements of these roles can be played at different times

by the same manager and to different degrees depending on the level and function of management. The ten

roles are described individually, but they form an integrated whole.

The three interpersonal roles are primarily concerned with interpersonal relationships.

In the figurehead role, the manager represents the organization in all matters of formality. The top level

manager represents the company legally and socially to those outside of the organization. The supervisor

represents the work group to higher management and higher management to the work group.

In the liaison role, the manger interacts with peers and people outside the organization. The top level

manager uses the liaison role to gain favors and information, while the supervisor uses it to maintain the

routine flow of work.

The leader role defines the relationships between the manger and employees.The direct relationships with people in the interpersonal roles place the manager in a unique position to get

information.

Thus, the three informational roles are primarily concerned with the information aspects of managerial

work. In the monitor role, the manager receives and collects information. In the role of disseminator, the

manager transmits special information into the organization. The top level manager receives and transmits

more information from people outside the organization than the supervisor.

In the role of spokesperson, the manager disseminates the organization's information into its environment.

Thus, the top level manager is seen as an industry expert, while the supervisor is seen as a unit or

departmental expert.

The unique access to information places the manager at the center of organizational decision making.

There are four decisional roles. In the entrepreneur role, the manager initiates change. In the disturbance

handler role, the manger deals with threats to the organization. In the resource allocator role, the manager

chooses where the organization will expend its efforts. In the negotiator role, the manager negotiates on

behalf of the organization. The top level manager makes the decisions about the organization as a whole,

while the supervisor makes decisions about his or her particular work unit.

The supervisor performs these managerial roles but with different emphasis than higher managers.

Supervisory management is more focused and short-term in outlook.

Thus, the figurehead role becomes less significant and the disturbance handler and negotiator roles

increase in importance for the supervisor.Since leadership permeates all activities, the leader role is among the most important of all roles at all

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levels of management.

Managerial Skill

Make Your Managers Effective

An "effective" manager takes responsibility for ensuring that each individual within his department succeeds

and that the team or business unit achieves results. Successful managers require both talent and skill.

Managerial skills can be developed through training, mentoring, and experience. But if a manager is void of

natural talent, then the odds that he will be successful diminish significantly.

Develop Managers

The most productive companies are typically more proactive than their peers when it comes to identifying

and developing effective managers. The six most common managerial success traits include communication,

leadership, adaptability, relationships, development of others, and personal development.

Teach Communication Skills

A manager with good communication skills is able to instruct as well as he listens. Managers who can

communicate effectively can process information, and then relate it back to their teams clearly. Effectivemanagers should be able to understand, decipher, and relate the organization's vision back to their employees

in order to maintain productivity.

Expand Leadership Skills

Leadership is a crucial attribute that many managers lack despite their job title. It is common practice for

companies to promote employees with the best results, but sometimes the best salesman doesn't make the

best manager. True leaders are able to instill trust, provide direction, and delegate responsibility amongst

team members.

Encourage Adaptability

Adaptability also contributes to a manager's effectiveness. When a manager is able to adjust quickly to

unexpected circumstances, he is able to lead his team to adjust as well. Adaptability also means that a

manager can think creatively and find new solutions to old problems.

Foster Interpersonal Skills

Effective managers should strive to build personal relationships with their teams. Employees are more likely

to exceed expectations when they trust their manager. When managers establish a relationship with

employees, it builds trust and employees feel valued. Valued employees are more willing to get the job done

right.

The best managers know when their employees need more development, and how to ensure those

developments are successful. Developing others involves cultivating each individual's talents, and

motivating those individuals to channel those talents toward productivity.

Promote Personal Growth

Finally, an effective manager is aware of their own personal development. In order to successfully develop

and lead others, managers must seek improvement in themselves. A manager who is willing to learn more

and use their natural talents to the best of their ability will be able to encourage the same behavior in

employees.

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Effective management is comprised of several key components, and is not easily achieved. Organizations

need to recognize the traits associated with successful management, and then promote employees based on

those traits. The highest achieving employees do not always make the best managers, but employees that

naturally exude the attributes desired by managers are sure to be effective and successful in management

roles.

Forms of business organization

1. Introduction

2. Definition of Various Forms

3. Sole proprietorship

4. Joint Hindu Family

5. Parntnership Firm

Introduction : Business concerns are established with the objective of making profits. They can be

established either by one person or by a group of persons in the private sector by the government or other

public bodies in the public sector. A business started by only one person is called sole proprietorship. The

business started by a group of persons can be either a Joint Hindu Family or Partnership or Joint Stock

Company or a Co-operative form of organization. Thus there are various forms of business organization

1. Sole Proprietorship 2. Joint Hindu Family Firm 3.Partnership Firm 4. Joint Stock Company

5.Co-operative Society

Forms of business organization are legal forms in which a business enterprise may be organized and

operated.

These forms of organization refer to such aspects as ownership, risk bearing, control and distribution of

profit. Any one of the above mentioned forms may be adopted for establishing a business, but usually one

form is more suitable than other for a particular enterprise. The choice will depend on various factors like

the nature of business, the objective, the capital required, the scale of operations, state control, legal

requirements and so on.

Out of the forms of private ownership listed above the first three forms (1, 2, and 3) may be described as noncorporate and the remaining ( 4 and 5 ) as corporate forms of ownership. The basic difference between these twocategories is that a non-corporate form of business can be started without registration while a corporate form ofbusiness cannot be set up without registration under the laws governing their functioning.

Characteristics of an ideal form of organization

Before we discuss the features, merits and demerits of different forms of organization, let us know the characteristicsof an ideal form of organization. The characteristics of an ideal form of organization are found in varying degrees indifferent forms of organization. The entrepreneur, while selecting a form of organization for his business, shouldconsider the following factors.

Ease of formation: It should be easy to form the organization. The formation should not involve many legalformalities and it should not be time consuming.

Adequacy of Capital: The form of organization should facilitate the raising of the required amount of capitalat a reasonable cost. If the enterprise requires a large amount of capital, the preconditions for attractingcapital from the public are a) safety of investment b) fair return on investment and c) transferability of theholding.

Limit of Liability: A business enterprise may be organized on the basis of either limited or unlimited liability.From the point of view of risk, limited liability is preferable. It means that the liability of the owner as regardsthe debts of the business is limited only to the amount of capital agreed to be contributed by him. Unlimitedliability means that even the owners’ personal assets will be liable to be attached for the payment of thebusiness debts.

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Direct relationship between Ownership, Control and Management: The responsibility for management mustbe in the hands of the owners of the firm. If the owners have no control on the management, the firm maynot be managed efficiently.

Continuity and Stability: Stability is essential for any business concern. Uninterrupted existence enables theentrepreneur to formulate long-term plans for the development of the business concern.

Flexibility of Operations: another ideal characteristic of a good form of organization is flexibility of operations.Changes may take place either in market conditions or the states’ policy toward industry or in the conditionsof supply of various factors of production. The nature of organization should be such as to be able to adjust

itself to the changes without much difficulty.

Sole Proprietorship

Meaning: A sole proprietorship or one man’s business is a form of business organization owned and managed by asingle person. He is entitled to receive all the profits and bears all risk of ownership.

Features: The important features of sole proprietorship are:

1. The business is owned and controlled by only one person. 2. The risk is borne by a single person and hence he derives the total benefit.

3. The liability of the owner of the business is unlimited. It means that his personal assets are also liable to beattached for the payment of the liabilities of the business.

4. The business firm has no separate legal entity apart from that of the proprietor, and so the business lacksperpetuity.

5. To set up sole proprietorship, no legal formalities are necessary, but there may be legal restrictions on thesetting up of particular type of business.

6. The proprietor has complete freedom of action and he himself takes decisions relating to his firm. 7. The proprietor may take the help of members of his Family in running the business.

Advantages

1. Ease of formation: As no legal formalities are required to be observed. 2. Motivation: As all profits belong to the owner, he will take personal interest in the business. 3. Freedom of Action: There is none to interfere with his authority. This freedom promotes initiative and self-

reliance.

4. Quick Decision: No need for consultation or discussion with anybody. 5. Flexibility: Can adapt to changing needs with comparative ease.6. Personal Touch: comes into close contact with customers as he himself manages the business. This helps

him to earn goodwill.

7. Business Secrecy: Maintaining business secrets is very important in today’s competitive world. 8. Social Utility: Encourages independent living and prevents concentration of economic power.

Disadvantages

1. Limited resources: one man’s ability to gather capital will always be limited.2. Limited Managerial Ability 3. Unlimited Liability: Will be discouraged to expand his business even when there are good prospects for

earning more than what he has been doing for fear of losing his personal property. 4. Lack of Continuity: uncertain future is another handicap of this type of business. If the sole proprietor dies,

his business may come to an end.

5. No Economies of Large Scale: As the scale of operations are small, the owner cannot secure the economiesand large scale buying and selling. This may raise the cost of production.

Suitability of Sole Proprietorship Form

From the discussion of the advantages and disadvantages of sole proprietorship above, it is clear that this form of

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business organization is most suited where:

1. The amount of capital is small 2. The nature of business is simple in character requiring quick decisions to be taken 3. Direct contact with the customer is essential and4. The size of demand is not very large.

These types of conditions are satisfied by various types of small business such as retail shops, legal or medical oraccounting profession, tailoring, service like dry cleaning or vehicle repair etc. hence sole proprietor form oforganization is mostly suitable for these lines of businesses. This form of organization also suits those individualswho have a strong drive for independent thinking and highly venturous some in their attitude.

Joint Hindu Family

Meaning

The Joint Hindu Family, also known as Hindu Undivided Family (HUF) is a non-corporate form of businessorganization. It is a firm belonging to a Joint Hindu Family. It comes into existence by the operations of law and notout of contract.

In Hindu Law, there are two schools of thought viz Dayabhaga which is applicable in Bengal and Assam,

and Mitakshara which is applicable in the rest of India. According to Mitakshara school, the property of the

Joint Hindu Family is inherited by a Hindu Family from his father, grandfather and great grandfather, thus

three successive generations in male line (son, grandson and great grandson ) can simultaneously inherit

the ancestral propriety. They are called coparceners in interest and the senior most member of the Family is

called karta. The Hindu succession act 1956, has extended to the line of co-parceners interest to female

relatives of the deceased co-parcener or male relative climbing through such female relatives. Under the

Dayabagha law the male heirs become members only on the death of the father.

Features

Some of the important features of the Joint Hindu Family are as follows

1. The business is generally managed by the father or some other senior member of the Family he iscalled the Karta or the manager.

2. Except the Karta, no other member of the family has any right of participation in the managementof a Joint Hindu Family firm

3. The other members of the family cannot question the authority of the Karta and their only remedy isto get the family dissolved by mutual agreement.

4. If the Karta has misappropriated the funds of the business, he has to compensate the other co- parceners to the extent of their share in the Joint property of the family

5. For managing the business, the Karta has the power to borrow funds, but the other co-parceners are

liable only to the extent of their share

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