Management Defined

What do you understand by Management? Define its Features

Management Defined

Management pervades every aspect of organized lift. It is a vital function concerned with all aspects of the working of an enterprise. Management has been defined in a number of ways. Prof. Haimann has interpreted the term management in three distinct aspects:

(a)Management as a field of study or a subject.

(b)Management as a team or class of people or a noun.

(c)Management as a process.

Management as a field of study or a subject refers to the principles and practices of management. It entails all the principles and practices as a knowledge and its application in its entirety. This approach, however, fails to give the correct nature of management.

Management as a team or class of people refers to the group of managerial personnel of an enterprise functioning in their supervisory capacity. However, who are the managers and what are the activities that should be treated as managerial are hard to identify, unless some yardsticks are prescribed. This becomes more difficult specially when those performing managerial activities have different titles in one organisation as well as in different organizations.

Management as a process refers to different processes or steps of managementright from planning to organizing, staffing, supervising and controlling. Management in this context has been defined as the process of getting things done by and in cooperation with others.Definitions: There are many definitions of management. They emphasize one or the other important aspect of management activity. According to Dalton E. McFarland, Management is the fundamental integrating and operating mechanism underlying organized effort.

According to George R. Terry, Management is a distinct process ... performed to determine and accomplish stated objectives by the use of human beings and other resources.

Features of Management

Following are certain features that illustrate the wide breadth of scope of management.

1.Universal process: Management is a universal process that is applied in all types of institutionssocial, religious, commercial, political, etc. Every organisation and institution, whose object is to achieve its objectives and goals through group efforts, needs planning, co-ordination, direction and control, i.e., management.

2.An integrative process: The essence of management is the integration of human and physical resources in a manner that it leads to effective performance. Managers apply knowledge, experience and principles for getting the results. Management seeks to harmonise the individual goals with organizational goals.

3.Dynamic function: Management is a dynamic function of business organisations. Its functions change from time to time depending upon the circumstances of the business, i.e., changes in economic, social, political, technological and human conditions. Management adjusts itself to the changing atmospheremaking suitable forecasts and changes in the policies.

4.Social process: Management is a social process as it primarily deals with emotional/dynamic and sensitive human beings. The major achievement is to win their confidence and cooperation. Thus, making it difficult to precisely define the principles of management. Management principles are constantly influenced by social traditions, customs and regulations.

5.Management makes things happen: Managerial ability is distinctly different from technical ability. Management is the art of getting things done through people. It implies that under given set of constraints or problem boundaries how positive results can emerge, by taking well- defined actions.

6.Management is a multi-faceted discipline: Management has to deal with heterogeneous resources. Their performance depends upon the proper knowledge and skill of various disciplines. Management has grown as a body of discipline taking the help of so many social sciences likeAnthropology, Sociology, Psychology etc. Due to this, management is also known as a Behavioral Science.

7.Management is a science and an art: Management is a science because it has an organised body of knowledge that is based on facts and certain universal truths. It is an art because certain skills, essential for good management, are unique to individuals. So many times managers act on instinct. It is also about interactions that cannot be laid down in black and white.

8. Intangible force: Managerial ability is an intangible force; it is a social skill that cannot be seen with the eyes but it is evidenced by the quality and level of an organisation.

What are the objectives of management? Describe them in detail with the role of mangers in achieving organizational goal.

AnsTodays management is playing a vital role in the progress and the prosperity of the business enterprises. The main purpose of the management is to run the enterprise smoothly. The broad objectives of the management are as follows:

1. Optimum utilization of resources

the most important purpose of the management is to use resource of the enterprise in the most economic way. proper use of men, materials, machines and money will help a business to earn sufficient profits to satisfy various interests ,i.e. prop writer s customers ,employees etc.

2. Growth and development of business

By proper planning, organization and direction etc. Management leads a business to growth and development .it lead to a profitable expansion of the business. It provide a sense of security among the employers and employees.

3. Better quality goods:-

The purpose of sound management has always been to produce the better products at minimum cost. Thus it tries to remove all types of wastages in business.

4. Mobilizing Best talents: -

The employment of experts in various fields will help in enhancing the efficiency of various factors and production. There should be a proper environment, which should encourage good persons to join the enterprises. The better pay scale proper amenities, future growth, potentialities will affect more people in joining a concern.

5. Improving performance:-

Managements objective is to improve the performance of each and every factor of the production has the environment is made congenial so that workers are able to their maximum to their enterprises . The fixing of objective of various factors of production helps in improving their performance.

6. Planning for future:-

Another imp. Objective of management is to prepare a perspective plan. No management can fell satisfied with present if it has not thought of tomorrow future performance will depend upon present planning .

The manager has to fulfill various responsibilities in order to achieve organizational goals:-

(a) Provide direction to the firm: - managers has to, first of all, set objectives which the firm must achieve. Objectives provided the direction the firm must move.

(b) Managing survival and growth:-Ensuring survival of the firm is the critical task of the manager along with survival manager has also to actively seek growth. no Matter how big or powerful a firm may be today, it is sure to be lift behind in the race by newer, healthier and more efficient firm if it does not pursue growth.

(c) Maintaining firm efficiency in terms of profit generation: - Efficiency is ratio of output a manager has not only to produce results, but to do so in the most efficient manner possible. The more output that the manger can produce with the same input, the grater will be the profit generated. Profit is the surplus or difference the manager can generate between the value of input and output.

(d) Meeting the challenge of increasing competition: - in todays fast changing world one of the critical tasks of every manager is to anticipate and prepare fro the increasing competition. Competition is increasing in term of more competitor, products, wider verity of products, better quality of products and a customer who is, today, better informed and more aware than ever before.

(e) Managing for innovation: - In the context of business, innovation has to be defined in term of the additional value. it impart to the existing or services. Value is not express in term of increased cost or price but in term of the difference it make to the customers. Successful firms innovate in response to market needs. Involved potential user in the development of innovation, and understand users need.

(f) Building human organization: - A good worker is the valuable asset to any company. And, every manager must constantly be on the look out for the people with potential and attract them to join his company. A manager with a competent team has already won half the battle. However, competent or brilliant individuals may be, if they cannot work together with each other they are of not much use to accompany. it is up to the manager to match individuals in to a well-knit team. The manager who cannot build his team can not succeed. Teams should be built on the principles of the divisions of labor, specialization of work and mutual give and take.

What is planning? Define its different stages in decision-making process.

Ans:-Planning is decided in advance, what is to be done. Planning involves selecting missions and objectives and the actions to achieve them, if requires decision making that is choosing from among alternative future course of action plans thus provide a rational approach to prospected objectives. Planning bridges the gap from where we are, and where we want to go.

Various stages involved in planning process include: -

a.Establishing objectives: - The first step in planning is to establish objectives for the entire enterprise and then for each subordinate work unit. Objectives specify the expected results and indicate the end point of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies, procedures, programmer and budgets.

b.Developing Premises: -Second logical step in planning is to establish and obtain agreement on forecasts upon which the planning shall be based . Forecasts are assumptions about the environment in which the plan is to be carried out. It is imp. For all the managers involved in planning to agree on the premises. The major principle of planning premises is The more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be.

(c) Determining alternate courses :-

The next step in planning is to search for and examine alternative couse of action and reduce these alternatives so that most promising may be analyzed. The planner must usually make a preliminary examination to discover the most fruitful possibilities.

(d)Evaluating alternative courses:-

The next step is evaluating the alternatives by weighing them in the fight of premises and goals. Planners typically encounter many uncertainties, Problems of capital shortage, and various intangible factors, which makes evaluation difficult.

(a) Selecting a course :-

This is the point at which the plan is adopted the real point of decision making . Occasionally. An analysis and evaluation of alternative courses will disclose that two or more are advisable, and the manager may decide to follow several courses rather than the one best course.

(b) Formulating derivative plans:-

When a decision is made, derivative plans are almost invariably required to support the basic plan.

(c) Number zing plans by budgeting :-

After decisions are made and plans are set, the final step is to numberize them by convering them to budgets. The overall budgets of an enterprise represent the sum total of income and expenses, with resultant profit or surplus. Each department or programmer of a business or other enterprise can have its own budget, usually of expenses and capital expenditures, which tie into the overallbudget.budgets, become a means of adding together the various plans and also set impt. Standard against which planning progress can be measured.

Que- What is the nature and scope of delegation and decentralization? Ans Organization authority is the discretion conferred on people to use their judgement to make decision and issue instruction. Decentralization is the tendency to dispersed decision making authority in an organized structure.

The factors to the promote decentralization:-

1) size and complexity of the organization :- large organization with diverse product line and conglomerates and companies involved in different field would find decentralization to be more effective due to limitation in managerial expertise as well as increased executive work load.

2) Location of target market: - if the customer of an organization are located geographically for apart, decentralization would be more appropriate management resources would be placed close to the customers allowing quicker decisions and faster customer service.

3) Desirability of creativity in the organization: - Decentralization is suggested if creativity within the organization is desirable and necessary. It gives the subordinates freedom to be innovative and find better ways of doing things this freedom is a highly motivational factor which encourages creativity.

4) The time frame of decision: - where quick on-the-spot decisions must be made, the authority to make them must be delegated encouraging decentralization.

Authority is delegated when a superior gives a subordinate desecration to make decisions. Delegation is necessary for an organization to exist. Just as no one person in an enterprise can do all the tasks necessary for accomplishing a group purpose, so it impossible, as an enterprise to grow, for one person to exercise all the authority for making decisions. The process of delegation involves:-

(a) Determining the results expected from a position.

(b) Assigning tasks to a person.(c) Delegating authority for accomplishing these tasks

(d) Holding the person in that position responsible for the accomplishment of the tasks.

Delegation of authority should be affective and result oriented. Some of the operation that serve as guidelines for effective delegation are:-

1) Functional clarity:- The function to be performed, the methods of operation and the results expected must be clearly defined. the authority delegated must be adequate to ensure that these function are well performed.

2) Matching authority with responsibility:- Responsibility and authority are highly interconnected. Authority should be adequate and should not only match the duties to be performed but also the personal capabilities of the subordinate.

3) Unity of command: - A subordinate should be responsible to only one superior who is delegating the authority in the first place. In this manner the responsibility for mistakes or accomplishments is traceable and chances of conflict or confusion is minimal.

5) Principle of communication :- A misunderstood responsibility can be very dangerous . A general authority can be easily misused. Accordingly,both the responsibility and authority must be clearly specified openly communication must be continuously kept open for issuing directions as well as receiving feedback.

Even though delegation of authority has some definite advantages and is necessary for optimal organizational operations ,some managers are very reluctant to delegate authority and many subordinate avoid taking on the responsibility and authority. The causes for such reluctance are based upon certain beliefs and attitudes which are personal and behavioral in nature

Reluctance of manager:-

(a) A manager may believe that he can do his work better than his subordinate. He might think that his subordinate is not capable enough.

(b) Since the manager is responsible for the action of his subordinates, he many not be willing to take chances with the subordinate s.

(c) Some manager lacks the ability to direct their subordinate. They may not be good in organizing their thoughts as well as activities and thus may not know what to do after delegation in order to help the subordinate complete the task.

(d) Some manager feel very insecure in delegating authority ,specially when the subordinate is capable of doing the job better.

Reluctance of subordinate - while delegation of authority can be highly motivating factor for some subordinate, other may be reluctant to take it for the following reasons:-

(a) Many subordinate are reluctant to accept authority and make decision for fear that they would be criticized or dismissed for making wrong decision. This is specially true in situations where a subordinate has make a mistake earlier.

(b) Some subordinate hesitate to accept new and added assignments where there is a lack of necessary information and when the available resource are not adequate or proper.

(c) The subordinate may lack self. Confidence in doing te job and may fear that the supervisor will not be available for guidance once the delegation is made and this makes them feel uncomfortable with additional responsibility.

(d) The subordinate may not be given sufficient incentives for assuming extra responsibility which could mean working harder under pressure. According in the absence of adequate compensation in the form of higher salary or promotion opportunities a subordinate may avoid promotional opportunities subordinates may avoid additional authority.

Que-What is the role of leadership in recognition of human factor? Discuss.

AnsLeadership is the capacity to frame plans which will succeed and the faculty to persuade others to carry them out in face of all difficulties.

Leaders create mentoring relationships. A mentor is a employee who sponsors and supports a pess-experienced employee. Leaders coach, counsel and sponsor their sub-ordinates. As a coach, leaders help to develop their subordinate skills. As counselors, leaders provide support and help bolster subordinates self-confidence. And as sponsors, Leaders actively intervene on behalf of their subordinates, Lobby to get their subordinates rewards such as promotions and salary increases.

Successful leaders are good teachers. They can present ideas clearly, listen well and emphasize with the problems of their subordinates. They also share their experiences with the juniors, act as rde models, share contacts and provide guidance through the political maze of the organization. They provide advice and guidance on how to survive and get ahead in the organization and act as a sounding board for ideas that a junior may be mentor vouches for a employees answers for him or her in the highest circles with in the organization, and make appropriate introductions.

The most effective mentoring relationships exists outside the immediate boss-relationship interface. The boss-subordinate context has an inherent conflict of interest and tension, mostly attributable to managers directly evaluating the performance of subordinates that limits openness and meaningful communication.

The mentor-protg relationship is beneficial both for the leader as well as organization. The mentor-protg relationship gives the mentor (leader) unfiltered access to the attitudes and feelings to lower-ranking employees. Protg (employees) can be an excellent source of potential problems by providing early warning signals. They provide timely information to upper management those short circuits the formal channels. So the mentor-protg relationship is a valuable communication channel that allows mentors to have news of problem before they become common knowledge to others in upper management, from the organizations standpoint, mentoring provides a support system for high-potential employees where mentors exists, proteges are often more motivated, better politically grounded and less likely to quit.

Que - What do you mean by control? How to make it effective with the help of various control techniques?

AnsControl is checking current performance against predetermined standards constrained in the plans with a view to ensuring adequate progress and satisfactory performance.

Control is a fundamental management function that ensures work accomplishment according to plans. It is concerned with measuring and evaluating performance so as to ensure the best results of managerial efforts.

The basic control process involves three steps: -

1. Establishing standards: - Standards are defined as criteria of performance. They are the selected points in an entire planning process at which measures of performance are made so that managers can receive signals about how things are going and thus do not have to watch every step in the execution of plans.

2. Measurement of performance: - The measurement of performance against standards should ideally be done on a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. The alert, forward-looking manager can sometimes predict probable departure from standards. In the absence of such ability, however, deviations should be disclosed as early as possible.

3. Correction of deviations: - Standards should reflect the various positions in an organization structure. If the performance is measured accordingly, it is easier to correct deviations. Managers know exactly where, in the assignment of individuals or group duties, the corrective measures must be applied.

Managers may correct deviations by redrawing their plans or by modifying their goals. Or they may correct deviations by exercising their organizing function through reassignment or clarification of duties. They may correct, also, by additional staffing, by better selection and training of subordinates, or by that ultimate restating measure firing.

Modern business enterprises use a large number of techniques of managerial control. These may be grouped in to two categories as follows: -

1. Traditional or conventional techniques such as budgetary control, statistical data and reports, managerial costing, break even analysis, standard costing etc

2. Modern or contemporary techniques such as management Audit, PERT, CPM and Management Information System.

Written reports:

Each manager prepares reports on the performance of his subordinates and submits them to his higher authority. For control purposes, these special reports and analyses help in particular problem areas. Their non-routine nature can highlight the usual and in doing so, reveal places for significant improvement in efficiency.

Budgets

The budget, which is a component of planning, is also used as a tool of control. Formulation of budget forces an enterprise to make in advance a numerical estimation of cash flows, expenses and revenues, capital outlays and machine hour utilization. It represents the planned expenditure on certain items and expected revenues from various sources. Preparation of budget requires the same process as is required to make any other type of plan. It is made well in advance and is based on scientific forecasts. Without sufficient budgeting, it may be possible to control the expenditures, as a plan, it shows clearly the targets to be achieved in financial and/or physical terms.

A budget is a tool of control. Since it is a statement of expected results, it serves as an effective instrument of control. It is the standards against which the performance of different departments will be judged. Comparison of actual results with the budgeted figures will help in detecting the sources of deviations and taking corrective steps which is the essence in the control process. This will be achieved because of minimization of wastage off various kinds. Budgets also help in fixing the responsibilities of persons for unauthorized and uncalled for expenditures.

Marginal costing

Marginal costing is an important tool in the hands of management for exercising cost control. Marginal costing is the ascertainment of marginal cost and of the effect on profit of changes in volume or type of output by differentiating between fixed and variable cost. Fixed costs remain unchanged up to a certain level of production but variable cost change with the changes in the volume of production. Marginal cost is the amount of money at a given volume of output by which aggregate cost is changed , if the volume of output is increased or decreased by one unit. Since marginal costing is based on variable cost, the responsibility for controlling variable costs can be assigned to various departments. The reports by various cost centers include only those costs, which can be controlled by them. The control of fixed cost is the responsibilities of higher level managers.Marginal costing facilitates Management by exception by focusing attention of the management on results that are moving out of control significantly. It also helps the management in evaluating the performance of individuals responsible for variable costs. The impact of fixed costs is conveyed to management in amore meaningful way under marginal costing. This helps management in ensure better utilization of items which involves fixed expenditure such as plant and machinery, furniture, installations etc. finally, marginal costing helps the management in understanding the relationship between profit and major factors affecting profits so that it may exercise control over these factors to achieve higher profits.

Cost-volume-profit Analysis:

Cost-volume-profit analysis is an attempt to determine the effect of a change in volume, cost, price or product mix on profits.

It assists management in ascertaining which product is most profitable, what effect a reduction in sales price will have on final profit, what effect a change in volume or product mix will have on production costs and profits, what effect will be on costs, profits and sales volume if there is a change in the plant capacity and so forth. The important feature of this analysis is that it calls for separation of variable costs from fixed costs with a view to understand the anatomy and structure of profit of an enterprise.

Break-Even Analysis

In break-even analysis , the organization analyses the point at which it will break even that is by selling what volume of a particular item , it will be able to recover the cost involved in producing a particular quantity of that particular item.

Break-Even analysis helps the management in knowing the relationship between cost, volume of the production and profits or losses. By dividing a total cost in to fixed and variable, the management can determined the pointer to which it must carry on the production to cover fixed cost. It cans exercises cost control at various levels of sales. This will also enable the management to accept orders during depression or off-season at lower prices that are more than the variable costs. The access of price over the variable costs will lead to reduction of losses that will result if no production is carried out. Fixed costs remain unchanged whether there is production or not.

Management Audit:

By audit we mean a review or examination of completed transactions to see whether they represent a true and fair state of affairs of the business or not. While conducting an audit, the auditor examines the degree of conformance of business transactions with the accepted business practices and legal provisions. The main objective of financial audit Is to know the correct profit or loss of the business during a particular year and to determine the accuracy of the balance sheet at the end of that year.

Network techniques

Net work analysis is widely recognized as a management tool in both commerce and industry. Under network analysis, a project is broken down to small activities or operations, which are arranged in a logical sequence. After this the order in which various operations should be performed is decided. A network diagram may be drawn to present the relationship between all the operation involved.

The diagram will reveal the gaps in the flow plan. The net work, thus drawn shows the inter dependence of various activities of a project and also points out the activities of a project and also points out the activities that have to be completed before the others are initiated.

The object of network analysis is to help in planning, organizing and controlling the operation to enable the management in completion the project economically and efficiently.

A number of network technique have been developed, most popular among them being PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method). Both PERT and CPM recognized the inter related nature of element with in large work projects. Any project is a complex network of interrelated activities. In network techniques, and activity is defined as any operation required to accomplish a particular goal. Any activity requires a specific span of time when an activity is begun or completed. in a project , some activities are sequential while others are concurrent to each other. The former are those which are to be arranged in a particular order. In other words, they are interrelated.

Que- Explain the important barriers in business communication. How to make it effective in a competitive environment?

Ans. The communication must be interpreted and understood in the same manner as it was meant to be sent by the sender, otherwise it will not achieve the desired results and a communication break-down will occur. There are certain external roadblocks to effective communication like noise, poor timing, incomplete, inadequate or unclear information , poor choice of channel of transmission of information etc. which can affect the proper reception of the communication. In addition there are personal factors which may interest the communication not in the same manner as it was intended by the sender but in a way that the receiver wants to receive depending upon the stimuli present emotions or prejudices for or against a concept or ideology or personal conflict so that instead of interpreting the content of the communication, the intent of the sender my be interpreted.

Some of the organizational barriers and some of the interpersonal barriers to effective communication are:-

(1) noise barriers

(a) poor timing (b) inappropral channel (c) improper or inadequate information (d) information overload (e) network breakdown(2) semantic barriers

(3) feedback barriers

(4) cultural barriers

(5) perception

(6) sender credibility

Communication can be made effective by using following guidelines:-

(1) the ideas and message

(2) Communication should be comprehensive and executing communication.

Write short notes on the following:-

(a)Report writing

(b) Process of Communication

Ans

(a) process of communication Communication is the process of passing information, messages and ideas from one person to nother and understanding of the same

Que-What are the functions of management? Explain Briefly.

Ans. Management is the process of designing and maintaining an environment in which individuals working together in-groups efficiently accomplishes selected aims.

Functions of the management include planning, organizing, staffing, heading, motivating, communication and controlling.

Planning: - Involves selecting missions and objectives and the actions to achieve them; it requires decision making, that is, choosing future courses of action from other alternatives. Planning bridges to gap from where we are to where we want to go. Morel plan exists until a decision a commitment of human or material resources has been made. Before a decision is made, all that exists is a planning study, an analysis, or a proposal; there is no real plan.

Organizing: - Is a part of managing that involves establishing an intentional structure of roles and positions for people to fill in an organization.

For an organizational role to exist and be meaningful to people, it must incorporate (i) clear idea of the major duties or activities involved and (ii) an understood area of discretion or authority so that the person filling the role knows what be or she can do to accomplish goals. It is in this sense that we think of organizing as (1) the identification and classification of required activities (2) the grouping of activities necessary to attain objectives (3) the assignment of each grouping to a manager with the authority (delegation) necessary to supervise it, and (4) the provision for coordination horizontally and vertically on the organizational structure.

Staffing Involves filling and keeping filled the positions in the organization structure. This is done by identifying work force requirements; inventorying the people available; and recruiting, selecting, placing, promoting appraising, planning the careers of compensating and training or otherwise developing both candidates and current jobholders to accomplish theirs tasks effectively and efficiently.

Leadership is defined as the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals. Ideally, people should be encouraged to develop not only willingness to work but also willingness to work with zeal and confidence. Zeal is ardor, earnestness, and intensity in the in the execution of work; confidence reflects experience and technical ability. Leaders act to help a group attain objectives through the maximum application of its capabilities. They do not stand behind the group to push and prod; they place themselves before the group as they facilitate progress and inspire the group to accomplish organizational goals.

The most important problems arise from people-their desires and attitudes, their behaviour as individuals and in-groups and that effective managers also need to be effective leaders. Since leadership implies followership and people tend to follow those who offer a make of satisfying their own needs wishes and desires, it is understandable that leading involves motivation, leadership styles and communication.

Motivation is the process that accounts for an individuals intensity, direction and persistence of effort towards attaining a goal.

Intensity is concerned with how hard a person tries. This is the element most of as focus on when we talk about motivation. However high intensity is unlikely to lead to favorable Job performance outcome unless the effort is channeled in a direction that benefits the organization. There fore, we have to consider the quality of effort as well as its intensity. Finally motivation has a persistence dimension. This is a measure of how long a person can maintain their effort. Motivated individuals stag with a task long enough to achieve their goal.

Communication It is the process of passing information and understanding from one person to another. A successful manager should develop an effective system of communication so that he may issue instructions and receive the reactions of the subordinates and motivate them.

A communication is useless until it is transmitted and understood by others. Perfect communication would exist when a thought or idea was transmitted so that the mental picture perceived by the receiver was exactly the same as that envisioned by the sender.

Controlling is the measuring and correcting of activities of subordinates to ensure that events conform to plans. It measures performance against goals and plans show where negative deviation exists, and, by putting in motion actions to correct deviations, help ensure accomplishment of plans. Although planning must precede controlling, plans are not self achieving plans guide managers in the use of resources to accomplish specific goals; then activities are checked to determine whether they conform to the plans.

Que-Write a short note on Social Responsibility of Management in Business.

Ans.As business operates in society; it cant exist and grows unless it cares for society. It

Exists vis--vis with society. It is required to meet different needs of the society. For meeting

These needs, business has certain social responsibilities to discharge. Cooperate social

Responsibilities is defined as considering the impact of the companys action on society. A

Newer concept, social responsibilities , is defined as the ability of a cooperation to relate its

Operation and policies to social environment in ways that are mutually beneficial to both the

Company and society. Social responsibilities of business are different for different sections of

Society, which include responsibilities towards

(d) employees

(e) consumers

(f) Government

(g) Society as a whole

Responsibilities towards employee

1. Fair wages and regular payment

2. Good working conditions and safety

3. Reasonable working standards and norms

4. Labor welfare services,- Health, education , recreation and accommodation

5. Training and promotion

6. Recognition and respect for hard work , honesty, sincerity and loyalty

7. Efficiency of redressing employees grievances.

Responsibilities towards customers

1. Providing goods and services at a reasonable price

2. Supply goods and services of promised quality, durability and services.

3. Supply social harmless product.

4. Offering an efficient consumer redressed mechanism

5. Resisting profiteering and black marketing.

6. Improving product quality towards R & D.

Responsibilities towards government

1. Regular payment of taxes.

2. Resisting bribing, bureaucrat and administers.

3. Cooperating with go of in up gradation of environment.

4. Cooperating with go of in social values.

Responsibilities towards society as a whole

1. Prevention of environmental pollution

2. Preservation of ethical and moral values.

3. Making provision of health education and cultural services.

4. Minimizing ecological imbalance.

Que- Describe various stages in decision-making process.Ans. Decision making is defined as selection of a course of action from among alternatives; it is core of planning. The process leading to making a decision might be thought of as (1) Premising (2) Identifying alternatives (3) evaluating alternatives in terms of the goal sought and (4) choosing an alternative, that is making a decision.

The optimizing decision-making is rational i.e. the decision-maker makes consistent value maximizing choices within specific constrains. These choices are made following a six-step rational decision-making model.

The model begins by defining the problem. Problem exists when there is a discrepancy between an existing and desired state of affairs many poor decisions can be traced to the decision-maker overlooking a problem or defining the wrong problem.

Once a decision-maker has defined the problem, he or she needs to identify the decision criteria that will be important in solving the problem. In this step, the decision-maker determines what is relevant in making a decision. This step brings the decision-makers interest, values and similar personal preferences into the process. Identifying criteria is important because what one person thinks is relevant, other person may not. Any factors not identified in this stage are considered irrelevant to the decision-maker.

The criteria identified are rarely all equal in importance. So the third step requires the decision-maker to weight the previously identified criteria in order to give them the correct priority in the decision.

The fourth step requires the decision-maker to generate possible alternatives that could succeed in resolving the problem. Once the alternatives have been generated the decision-maker must critically analyze and evaluate each one. Rating each alternative on each criterion does this. The strengths and weaknesses of each alternative become evident as they are compared with the criteria and weights established in the second and third steps.

The final step in this model requires computing the optimal decision. This is done be evaluating each alternative against the weighted criteria and selecting the alternative with the highest total score.

Write short note on

(i) Span of Control and (ii) Delegation

Ans. (i) Span of Control: - is defined as the number of subordinates a manager can efficiently and effectively direct. A wide span of management is associated with few organizational levels; a narrow span with many levels. Factors that determine the span of control include.

a) Subordinate Training: - The better the training of subordinates the fewer the number of necessary superior-subordinate relationships. Well-trained subordinates require not only less of their managers time but also less contact with their managers.

b) Clarity of Delegation of Authority: - The Principle cause of the heavy time burdens of superior-subordinate relationships is to be found in poorly conceived and confused organization. The most serious symptom of poor organization affecting the span of management is inadequate or unclear authority delegation. If a manager clearly delegates authority to undertake a well defined task a well trained subordinate can get it done with a minimum of managers time and affection.

Clarity of Plans Much of the character of a subordinates job is defined by the plans to be put into effect. If these plans are well defined, if they are workable, if the authority to undertake them has been delegated, and if the subordinate understands what is expected, a little of supervisors time will be required.

Rate of Charge certain enterprise charge much more rapidly than others. The rate if charge is an important determinant of the degree to which policies can be formulated and the stability of polices maintained.

Communication Techniques An ability to communicate plans and instructions clearly and concisely also tends to increase managers span. The subordinates Job is greatly facilitated by superiors who can express themselves well.

b) Delegation : Organization authority is the discretion conferred on people to use their judgement to make decision and issue instruction. Decentralization is the tendency to dispersed decision making authority in an organized structure.

The factors to the promote decentralization:-

6) size and complexity of the organization :- large organization with diverse product line and conglomerates and companies involved in different field would find decentralization to be more effective due to limitation in managerial expertise as well as increased executive work load.

7) Location of target market: - if the customer of an organization are located geographically for apart, decentralization would be more appropriate management resources would be placed close to the customers allowing quicker decisions and faster customer service.

8) Desirability of creativity in the organization: - Decentralization is suggested if creativity within the organization is desirable and necessary. It gives the subordinates freedom to be innovative and find better ways of doing things this freedom is a highly motivational factor which encourages creativity.

9) The time frame of decision: - where quick on-the-spot decisions must be made, the authority to make them must be delegated encouraging decentralization.

Authority is delegated when a superior gives a subordinate desecration to make decisions. Delegation is necessary for an organization to exist. Just as no one person in an enterprise can do all the tasks necessary for accomplishing a group purpose, so it impossible, as an enterprise to grow, for one person to exercise all the authority for making decisions. The process of delegation involves:-

(e) Determining the results expected from a position.

(f) Assigning tasks to a person .

(g) Delegating authority for accomplishing these tasks

(h) Holding the person in that position responsible for the accomplishment of the tasks.

Delegation of authority should be affective and result oriented. Some of the operation that serves as guidelines for effective delegation are:-

1) Functional clarity:- The function to be performed, the methods of operation and the results expected must be clearly defined. the authority delegated must be adequate to ensure that these function are well performed.

2) Matching authority with responsibility:- Responsibility and authority are highly interconnected. Authority should be adequate and should not only match the duties to be performed but also the personal capabilities of the subordinate.

3) Unity of command: - A subordinate should be responsible to only one superior who is delegating the authority in the first place. In this manner the responsibility for mistakes or accomplishments is traceable and chances of conflict or confusion is minimal.

10) Principle of communication: - A misunderstood responsibility can be very dangerous. A general authority can be easily misused. Accordingly,both the responsibility and authority must be clearly specified openly communication must be continuously kept open for issuing directions as well as receiving feedback.

Even though delegation of authority has some definite advantages and is necessary for optimal organizational operations ,some managers are very reluctant to delegate authority and many subordinate avoid taking on the responsibility and authority. The causes for such reluctance are based upon certain beliefs and attitudes which are personal and behavioral in nature

Reluctance of manager:-

(e) A manager may believe that he can do his work better than his subordinate. He might think that his subordinates are not capable enough.

(f) Since the manager is responsible for the action of his subordinates, he many not be willing to take chances with the subordinate s.

(g) Some managers lack the ability to direct their subordinate. They may not be good in organizing their thoughts as well as activities and thus may not know what to do after delegation in order to help the subordinate complete the task.

(h) Some manager feel very insecure in delegating authority ,specially when the subordinate is capable of doing the job better.

Reluctance of subordinate - while delegation of authority can be highly motivating factor for some subordinate, other may be reluctant to take it for the following reasons:-

(e) Many subordinates are reluctant to accept authority and make decision for fear that they would be criticized or dismissed for making wrong decision. This is specially true in situations where a subordinate has make a mistake earlier.

(f) Some subordinate hesitate to accept new and added assignments where there is a lack of necessary information and when the available resource are not adequate or proper.

(g) The subordinate may lack self. Confidence in doing te job and may fear that the supervisor will not be available for guidance once the delegation is made and this makes them feel uncomfortable with additional responsibility.

(h) The subordinate may not be given sufficient incentives for assuming extra responsibility which could mean working harder under pressure. According in the absence of adequate compensation in the form of higher salary or promotion opportunities a subordinate may avoid promotional opportunities a subordinate may avoid additional authority.

Que-Explain main leadership styles.

Ans. A leader is one who guides and directs other people he gives the efforts of his followers a direction and purpose by influencing their behavior.

Leadership is psychological process of influencing followers or subordinates and providing guidance to them. It is always related to situation, which means a leader may be effective in one situation while ineffective in another. To be effective, a leader should change his leadership style dependency upon the requirements of the situations. Leadership is a compound of at least four major ingredients.

a) The ability to use power effectively and in responsible manner.

b) The ability to comprehend that human beings have different motivation forces at different times and different situations.

c) The ability to inspire and

d) The ability to act in a manner that will develop a climate conductive to responding to and arousing motivation.

Style of leadership

Leadership style refers to a leaders behavior. Behavioral pattern, which the leader reflects in his role as a leader, is often described as the style of leadership. Different leadership patterns exits among leaders in different times and in different situations. Leadership style is the result of leaders philosophy, personality, experience and value system. It also depends upon the type of followers and organizational atmosphere prevailing in the enterprise. Different types of leadership styles are:

1. Autocratic leadership

2. Participative leadership.

3. Free rein leadership.

1. Autocratic or Dictatorial Leadership

Autocratic leaders keep the decision-making authority and control in their own hands and full responsibility for all actions. Also, they structure the entire work situation in their own way and expect the workers to follow their orders and tolerate no deviation from their orders. The autocrat ranges from tough to paternalistic, depending upon whether his motivational approach is threat and punishment or rewards. The autocratic leader believes that his leadership based upon the authority conferred upon him by some source, such as his position, knowledge, strength or the power to punish and reward.

Advantages

a) Autocratic leadership is useful when the subordinates are new on the job and have no experience either in the managerial decision making process or performing without active supervision.

b) It can increase efficiency, when appropriate, and get quicker results, specially in a crisis or emergency situation, when the decision must be taken immediately.

c) The paternalistic autocrat is useful when the subordinates are not interested in seeking responsibility or when they feel insecure at the job or when they work better under clear and detailed directives.

d) It is useful when the chain of command and the division of work is clear and understood by all.

Disadvantages

a) One-way communication without feedback leads to misunderstanding and communications breakdown.

b) An autocratic leader makes his own decisions which can be very dangerous in this age of technological and sociological complexity.

c) Since it inhibits the workers freedom, it fails to develop his commitment to the objectives of the organization.

d) Since it provides for worker resentment, it creates problems with their morale resulting in poor productivity in the long run.

e) It is unsuitable when the work force is knowledgeable about their jobs and the job calls for teamwork and cooperative spirit.

2. Participative or Democratic Leadership

In this type of leadership, the subordinates are consulted and their feedback is taken into the decision making process. The leaders job is primarily of a moderator, even though he makes the final decision and he alone is responsible for the results. The group members are encouraged to demonstrate initiative and creativity and take intelligent interest in setting plans and policies and have maximum participation in decision-making. This ensures better management labour relations, higher moral and greater job satisfaction. This type of leadership is especially effective when the work force is experience and dedicated and is able to work independently with least directive.

Advantages

a) Active participation in the management by labour assures rising productivity satisfaction.

b) Workers develop a greater sense of self esteem, due to importance given to their ideas and their contribution.

c) They become more committed to changes that may be brought about by policies changes, since they themselves participated in bringing about these changes.

d) The leadership induces confidence, cooperation and loyalty among workers.

e) It results in higher employee morale.

Disadvantages

a) The democratic leadership requires some favorable conditions in that the labour must be literate, informed and organized. This is not always possible.

b) This approaches assumes that all workers are genuinely interested in the organization and that their individual goals are successfully fused with the organization goals. This assumption may not always be valid.

c) There must be total trust on the part of management as well as employees. Some employees may consider this approach simply an attempt to manipulate them. Accordingly, the employees must be fully receptive to this approach to make it meaningful.

d) Some group members may feel alienated if their ideas are not accepted for action. This may create a feeling of frustration and ill will.

e) This approach is very time consuming and too many viewpoints and ideas may make the solid decision more difficult and may be source of frustration of impatient management.

f) Some managers may be uncomfortable with this approach because they may fear an erosion of their power base and their control over labour.

g) This approach relies heavily on incentives and motivation of recognitions. Appreciation, status and prestige. The labour may be more interested in financial incentives instead of prestige.

3. Laissez faire or Free reign Leadership

In this type of leadership, the leader is just a figurehead does not give any direction. He acts principally as liaison between the group and the outside elements and supplies necessary materials and provides information to group members. He lets the subordinates plan and organize and develop their own techniques for accomplishing goals within the generalized organizational policies and objectives. The leader participates very little and instead of leading and directing, he becomes just one of the members. He does not attempt to intervene or regulate or control and there is complete group or individual freedom in decision-making. This type of leadership is highly effective when the group members are highly intelligent and are fully aware of their roles and responsibilities and have the knowledge and skills to accomplish these tasks without direct supervision.

This type of leadership is evident in research laboratories where the scientists are fairly free to conduct their research and make their decisions. Similarly, in a university or a college, the chairperson does not interfere in the professors teaching methods, but only assigns the courses to be taught. From then onwards, the professors are very much their own leaders.

Advantages

a) It creates an environment of freedom, individuality as well as the team sprit.

b) It is highly creative, with a free and informal work environment.

c) This approach is very useful where people are highly motivated and achievement oriented.

Disadvantages

a) It may result in disorganized activities, which may lead to inefficiency an chaos.

b) Insecurity an frustration may develop due to lack of specific decision - making authority and guidance.

c) The team sprit may suffer due to possible presence of some uncooperative members.

d) Some members may put their own interests above the group and team interests.

In practice, a leader may use all styles over a period of time, but one style tends to predominate as his normal way of using power. For example, factory supervisor who is normally autocratic may be participative in determining vacation schedules and free rein in selecting the departmental representative for safety committee. It should be noted that the classification is not scientific.

Que-Define Control Process. Why is control so essential in business?

Ans. The managerial function of controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

The essential elements of any control process are (1) Establishment of Standards (2) Measurement (3) Comparing performance with the standards and (4) Taking corrective actions.

1) Establishment of Standards is the first step in control process. Standards represent criteria for performance. A standard acts as reference line or a basis of appraisal of actual performance. Standards should be set precisely and preferable in quantitative terms. Setting standard is closely linked and is and integral part of the planning process. Standards are used or bench marks by which performance is measured in the control operations at the planning stage, planning is the basis of control.

2) Measurement of Performance After establishing the standards, the second step is to measure actual performance of various individuals, groups or units. Management should not depend upon the guess that standards are being met measurement of performance against standards should ideally be done on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions.

3) Comparing Performance with Standards Appraisal of performance or comparing of actual performance with pre-determined standards is an important step in control process.

Comparison is easy where standards have been set in quantitative terms as in production and marketing. In other cases, where results are intangible and cannot be measured quantitatively direct personal observations, inspection and reports are few methods which can be used for evaluation. The evaluation will reveal some deviations from the set standards. The evaluator should point out defect or deficiencies in performance and investigate the causes responsible for these.

4) Taking Corrective Actions Managers should know exactly where in the assignment of individual or group duties, the corrective action must be applied. Managers may correct deviations by redrawing their plans or by modifying their goals. Or they may correct deviations by exercising their organizing functions through reassignment or clarification of duties. They may correct, also, by additional stapling or better selection and training of subordinates.Que-What are methods of communication in management?

What are essential qualities of a good business report?Ans. There are various methods of communication in management. These include (i) Oral Communication (ii) Written Communication and (iii) Non Verbal Communication.

1) Oral Communication The chief means of conveying messages is oral communication. Oral communication may take place (a) face to face conversation and (b) through mechanical devices.

Face to face conversation is the most natural way of transmitting message. It is the best means of securing cooperation and resolving problems. Various studies have shown that face to face communication carries the message better than any other media. It avoids misunderstanding between persons talking face to face. It is because by having face to face conversation one can convey the message both by words as well as expressions and receive the response in minimum amount of time. If the receiver is unsure of the message rapid feedback allows for early detection by the sender and hence allows for early correction.

Mechanical devices, which are used, for oral communication include telephones, intercom system and dictating machines.

The major disadvantage of oral communication in management is where decisions and other communication are verbally passed up and down to authority hierarchy; there is considerable opportunity for message to become distorted.

2) Written Communication Written Communication include memos, letters, electronic mail, fax transmissions, organizational periodicals notice place on bulletin boards or any other device that is transmitted via written words or symbols. Organizations use written communication because it is tangible and verifiable. Typically both the sender and receiver have a record of the communication. The communication can be stored for an indefinite period. The marketing plan for a new product for instance is likely to contain a number of tasks spread out over several months. By putting it in writing those who have to initiate the plan readily refer to it over the life of plan.The final benefit of written communication comes from the process itself. A person is usually more careful with the written word than the oral word. One is forced to think more thoroughly about what one has to convey in a written message than in the spoken one.

Written messages have their drawbacks. They are time consuming so although writing may be more precise, it also consumes great deal of time. The other major disadvantage is pack of feedback oral communication allows the receiver to respond rapidly to what he thinks he hears. Written communication however, does not have a feedback mechanism.

3) Non Verbal Communication: Communication through gestures or postures is often used as a means to supplement verbal communication. If there is a face to face conversation between two persons, they can better understand the feelings, attitudes and emotions of each other. Gestural communication is very much helpful to motivate the subordinates, as for instance a pat on the back of the subordinate. Similarly gestures taken by the listeners can help the communicator to know their reactions. Essential Qualities of Good Business Report

A well written business report can help avoid semantic and perception barriers. A well written business report eliminates the possibility of misunderstanding and misinterpretation. In writing messages, it is necessary to be precise, making the meaning as clear as possible so that it accomplishes the desired purpose. The language used should be simple, as it will be easier for the receiver to understand the message. The message will be lost if the words used are complex and do not lend to clear single meaning. Vagueness destroys accuracy which leads to misunderstanding of the meaning or intent of the message. Accordingly be specific and to the point.

There is great importance of timing in Business communication. The communication should not only be timely so that the decisions and actions can be taken in time and when necessary but also the timing of the message and the environment setting in which the message is delivered and received is equally important. An important message delivered at he wrong time or in a non-conducive environment may lose its effectiveness.

Business communication must pass through the proper channels to reach the intended receiver. The communication flow ant its spread must avoid by passing levels or people. When these concerned levels are omitted or by passed, it creates bickering distrust confusion and conflict. Accordingly the established channels must be used as required.

Unless it is one-way communication that is simply meant to inform all business, communication needs a follow up to ensure that is was properly understood and carried out. A verbal communication may need to be followed up by written confirmation. The response and feedback to the communication would determine. Whether the action to the communication has been appropriate and accurate.

Business communication should be complete so as not only to meet the demands of today but should also be based on future need of the organization as well as individuals. A reasonable projection and assessment of future needs and environment both work and social should be incorporated when planning and executing communication.

Que-What are the barriers in communication? How can you overcome them?

Ans. The communication must be interpreted and understood in the same manner as it was meant to be sent by the sender, otherwise it will not achieve the desired results and a communication break-down will occur. There are certain external roadblocks to effective communication like noise, poor timing, incomplete, inadequate or unclear information, poor choice of channel of transmission of information etc. which can affect the proper reception of the communication. In addition there are personal factors which may interest the communication not in the same manner as it was intended by the sender but in a way that the receiver wants to receive depending upon the stimuli present emotions or prejudices for or against a concept or ideology or personal conflict so that instead of interpreting the content of the communication, the intent of the sender my be interpreted.

Some of the organizational barriers and some of the interpersonal barriers to effective communication are:-

(7) noise barriers

(f) poor timing

(g) inappropriate channel

(h) improper or inadequate information

(i) information overload

(j) network breakdown

(8) semantic barriers

(9) feedback barriers

(10) cultural barriers

(11) perception

(12) sender credibilityCommunication can be made effective by using following guidelines:-

(3) the ideas and message

(4) Communication should be comprehensive and executing communication.

Short Notes on Maslow Law

Maslows Hierarchy of NeedsSelf-Actualization

Need for Self EsteemNeed for Social Relations

Need for Security

Physical Needs

What are the level of ManagementStrategic Managers

Tactical Managers

Operational Managers

Strategic ManagersThe firms senior executives with overall responsibility for the firm.Developing the companys goals

Focus on long-term issues

Emphasize the growth and overall effectiveness of the organization

Concerned primarily with the interaction between the organization and its external environment.

Tactical Managers

Responsible for translating the general goals and plans developed by strategic managers into specific objectives and activities.Shorter time horizon

Coordination of resources

These are middle managers

Operational Managers

Lower-level managers who supervise the operations of the organization.Directly involved with non-management employees

Implementing the specific plans developed with tactical managers.

This is a critical role to the organization.

Operational managers are the link between management and non-management staff

MManagement is acting as set of skills

Four major categories of skills will help you become a good manager:Strategizing Skills

Task-Related Skills

People-Related Skills

Self-Awareness SkillsStrategizing involves the ability to see the big picture to:Focus on key objectives without getting mired in details

Sense what is happening inside and outside the company

Respond in an appropriate and timely fashion

Task-Related Skills

Involve the ability to define the best approach to accomplish personal and organizational objectives.They include consideration of all resources, including:

Time

Organizational structure

Financial resources

People

They also involve the ability to:Prioritize

Remain flexible to make changes if necessary

Ensure that value is being created

In contemporary organizations, task-related skills are demanded of most employees from factory workers to top executivesPeople-Related Skills

Involve getting work done through others and with others.People skills include the ability to:

Delegate tasks

Share information

Resolve conflicts

Be a team player

Work with people from very different backgroundsSelf-Awareness Skills

Being aware of your personal characteristics can help you adapt to others.To also help you understand why you react to them the way you do.

Avoid rushed judgments

Appreciate the nuances of particular situations

Size up opportunities

Capitalize on your personal strengths

Avoid situations in which you are likely to faila

Organization with wide span

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Organizations with narrow span

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