Management

It includes: Management of business and profit making private and government run organizations.

Management of non-profit making organizations.

Management of trusts, societies, associations, charitable organizations.

Management of governmental organizations.

Management of NGOs.

Management of educational organizations e.g. universities, colleges, schools.

Management of day care units.

Management of hospitals and other health care organizations.

Management of sports related organizations and clubs.

Management of religious organizations.

Management for any organization is a function of organizing and channeling the people together to accomplish desired goals.

In common understanding, management is also referred to the body or group of persons who perform the various functions of management.

Management Principles developed by Henri Fayol:

1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.

2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.

3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from only one manager.

5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay.

8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.

11. EQUITY: All employees should be treated as equally as possible.

12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.

14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

Functions of Management or Management Functions

Management consists of the functions given below. It is based on Henri Fayol's thinking on the functions of management.

1. Planning: generating plans of action for immediate, short term, medium term and long term periods.

2. Organizing: organizing the resources, particularly human resources, in the best possible manner.

3. Staffing: positioning right people right jobs at right time.

4. Directing (includes leading, motivating, communicating and coordinating): Communicate and coordinate with people to lead and enthuse them to work effectively together to achieve the plans of the organization.

5. Controlling (includes review and monitoring): evaluating the progress against the plans and making corrections either in plans or in execution.

Every manager at every level of hierarchy of an organization has to carry out these management functions irrespective of the nature and size of the organization. The functions are interrelated and these may be done by a manager quite concurrently. This means that the functions are not necessarily carried out sequentially and it is not necessary to complete one function fully before the next function is undertaken.

Each of these functions is explained in some detail below.

1. Planning Planning is decision making process. It is making decisions on future course of actions.

Planning involves taking decisions on vision, mission, values, objectives, strategies and policies of an organization.

Planning is done for immediate, short term, medium term and long term periods.

It is a guideline for execution/implementation.

It is a measure to check the effectiveness and efficiency of an organization.

2. Organizing Organizing involves determination and grouping of the activities. Designing organization structures and departmentation based on this grouping.

Defining the roles and responsibilities of the departments and of the job positions within these departments.

Defining relationships between departments and job positions.

Defining authorities for departments and job positions.

3. Staffing It includes manpower or human resource planning. Staffing involves recruitment, selection, induction and positioning the people in the organization.

Decisions on remuneration packages are part of staffing.

Training, retraining, development, mentoring and counseling are important aspects of staffing.

It also includes performance appraisals and designing and administering the motivational packages.

4. Directing It is one of the most important functions of management to translate company's plans into execution. It includes providing leadership to people so that they work willingly and enthusiastically.

Directing people involves motivating them all the time to enthuse them to give their best.

Communicating companies plans throughout the organization is an important directing activity.

It also means coordinating various people and their activities.

Directing aims at achieving the best not just out of an individual but achieving the best through the groups or teams of people through team building efforts.

5. Controlling It includes verifying the actual execution against the plans to ensure that execution is being done in accordance with the plans. It measures actual performance against the plans.

It sets standards or norms of performance.

It measures the effective and efficiency of execution against these standards and the plans.

It periodically reviews, evaluates and monitors the performance.

If the gaps are found between execution levels and the plans, controlling function involves suitable corrective actions to expedite the execution to match up with the plans or in certain circumstances deciding to make modifications in the plans.

Introduction to Decision Making Process:

Decision making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision making is a habit and a process as well.

Effective and successful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization.

In the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques and perceptions.

In addition, we may make our own private decisions or may prefer a collective decision.

Usually, decision making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party.

Let's have a look at the decision making process in detail.

Steps of Decision Making Process:

Following are the important steps of the decision making process. Each step may be supported by different tools and techniques.

Step 1: Identification of the purpose of the decision:

In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision.

What exactly is the problem?

Why the problem should be solved?

Who are the affected parties of the problem?

Does the problem have a deadline or a specific time-line?

Step 2: Information gathering:

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem.

In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used.

Step 3: Principles for judging the alternatives:

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken into consideration.

As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand.

Step 4: Brainstorm and analyse the different choices:

For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes.

For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with highest effect.

Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of alternatives:

Use your judgement principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness of the judgement principles come into play. You need to compare each alternative for their positives and negatives.

Step 6: Select the best alternative:

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative.

Step 7: Execute the decision:

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates.

Step 8: Evaluate the results:

Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will improve your decision-making skills.

Conclusion

When it comes to making decisions, one should always weigh the positive and negative business consequences and should favour the positive outcomes.

This avoids the possible losses to the organization and keeps the company running with a sustained growth. Sometimes, avoiding decision making seems easier; especially, when you get into a lot of confrontation after making the tough decision.

But, making the decisions and accepting its consequences is the only way to stay in control of your corporate life and time.

Principles of organization1. Principle of unity of objectives: organizational goals, departmental goals, and individual goals must be clearly defined. All goals and objectives must have uniformity. When there is contradiction among different level of goals desired goals cant be achieved. Therefore, unity of objectives is necessary

2.Principle of specialization: sound and effective organization believes on organization. The term specialization is related to work and employees. When an employee takes special type of knowledge and skill in any area, it is known as specialization. Modern business organization needs the specialization, skill and knowledge by this desired sector of economy and thus, efficiency would be established.

3.Principle of coordination: In an organization many equipment, tools are used. Coordination can be obtained by group effort that emphasize on unity of action. Therefore, coordination facilitates in several management concepts

4. Principle of authority: Authority is the kind of right and power through which it guides and directs the actions of others so that the organizational goals can be achieved. It is also related with decision making. It is vested in particular position, not to the person because authority is given by an institution and therefore it is legal. It generally flows from higher level to lowest level of management. There should be unbroken line of authority.

5.Principle of responsibility: Authentic body of an organization is top level management, top level management direct the subordinates. Departmental managers and other personnel take the direction from top level management to perform the task. Authority is necessary to perform the work .only authority is not provided to the people but obligation is also provided. So the obligation to perform the duties and task is known as responsibility. Responsibility cant be delegated. It cant be avoided.

6. Principle of delegation: Process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. Authority is only delegated, not responsibilities in all levels of management. The authority delegated should be equal to responsibility

7.Principle of efficiency: In enterprise different resources are used. Therese resources must be used in effective manner. When the organization fulfill the objectives with minimum cost, it is effective. Organization must always concentrate on efficiency.

8. Principle of unity of command: subordinates should receive orders from single superior at a time and all subordinates should be accountable to that superior. More superior leads to confusion, delay and so on.

9.Principle of span of control: unlimited subordinates cant be supervised by manager, this principle thus helps to determine numerical limit if subordinates to be supervised by a manager. This improves efficiency.

10.Principle of balance: the functional activities their establishment and other performances should be balanced properly. Authority, centralization, decentralization must be balance equally. This is very challenging job but efficient management must keep it.

11.Principle of communication: Communication is the process of transformation of information from one person to another of different levels. It involves the systematic and continuous process of telling, listening and understanding opinions ideas, feelings, information, views etc, in flow of information. Effective communication is important

12.Principle of personal ability: for sound organization, human resources is important. Employees must be capable. Able employees can perform higher. Mainly training and development programs must be encouraged to develop the skill in the employees

13.Principle of flexibility: organizational structure must be flexible considering the environmental dynamism. Sometimes, dramatically change may occur in the organization and in that condition, organization should be ready to accept the change

14.Principle of simplicity: this principles emphasizes the simplicity of organizational structure, the structure if organization should be simple with minimum number of levels do that its member an understand duties and authorities.

7 important functions of an Organisation:1. To define the role of the individual:An individual employed in an enterprise must know his role, position and relationship with other personnel in his department and with others. Organisation becomes necessary so that the persons involved in the enterprise can identify themselves in the enterprise. It is through the organisation that one can know his position and role in the unit. He can relate his position with other members of the enterprise.

2. Determination of authority:The assignment of a certain role proposes the granting of certain authority so that performance can be possible. Organisation is necessary to define the authority i.e., the rights and powers of men in different positions which would help them to discharge their assigned roles.

3. Fixation of responsibility:Each individual is assigned a certain duty organisational structure defines what performance is expected of a member of the unit of the department of the enterprise. Absence or faulty determination of responsibility will lead to irresponsible functions, behaviour and attitudes.

4. Specialisation:Modern production and management techniques are based on the idea of specialization which means the performance of different parts of a job by persons specifically suited for them.

Organisation is basically required to promote specialization. Efficient and smooth functioning is possible when different elements of a job are performed by experts and their efforts are pooled to attain the desired and product.

5. Coordination:Since the pattern of managerial operations is to be based on die division' of labour, there arises the need of coordinating the activities of various individuals or that of different departments. They perform diverse, activities and these have to be woven into the main fabric.

6. Proper utilisation of human resources:The most important thing for enterprises is to make the best possible use of its human resources. There must not be wastage or misapplication of human efforts. This is of great importance for economy as well as for the achievement of objectives.

It can be possible only by suitable organisation, which avoid all bottlenecks-chances of work being held up and allow smooth flow of performances.

7. Efficient functioning:Efficiency is to be the watchword of an enterprise, all the factors mentioned above will have a great impact on the efficient functioning of the enterprise, and Organisation avoids all duplication in jobs, overlapping and wastage. It promotes speedy, smooth and efficient functioning of the enterprise.

Types of organization:

There are five common forms of organisation structureLine, Functional, Line and Staff, Committee andmatrixorganisation.

(1) Line organisation In this, there is a chain of authority which flows from upward to down word.

Advantages. Main advantages of this form of organisation are: (i) Simple, (ii) Fixed responsibility, (iii)Flexibility, (iv) Prompt decision, (v) Unified control, (vi) Well-defined authority, (vii) Fixed channel ofpromotions.

Disadvantages The system claims the following disadvantages: (i) Unitary administration, (ii)Overloading with work, (iii) Lack of specialisation (iv) Lack of communication (v) Successionproblem, (vi) Absence of conceptual thinking, (vii) Favourities, (viii) No co-ordination.

(2) Functional organisationIn this form of organisation all activities in the organisation aregrouped according to the basic functions, i.e., production, finance, marketing, headed by a specialist.

Advantages- Main advantages of this form are: (i) Specialisation, (ii) Large-scale production, (iii)Improved efficiency, (iv) Flexibility, (v) Better industrial relations, (vi) Separation of mental and physicalfunctions.

DisadvantagesFollowing are the disadvantages of this form of organisation: (i) Multiplicity ofauthority, (ii) Indiscipline, (iii) Shifting of responsibility, (iv) Lack of co-ordination, (v) impracticable, (vi)delay in decision making.

(3) Line and Staff OrganisationIn this form of organisation the structure is basically that of lineorganisation but functional experts are appointed to advise the line authority in their respective field.

Advantages: (i) Advantages of the line and the functional organisations, (ii) Specialisation, (iii) Sounddecisions.

Disadvantages: (i) Conflicts between the line and the staff executives, (ii) Advice of the staff executives isignored, (iii) No demarcation of authority, (iv) Lack of responsibility, (v) uneconomical.

(4) Committee OrganisationCommittee is a group of individuals formed permanently ortemporarily for a particular purpose through free interchange of ideas.

Advantages(I) Pooling of ideas, (2) Co-ordination, (3) Motivation through participation, (4)Representation of interest groups, (5) Easy communication, (6) No concentration of power, (7) A tool ofmanagement for development.

Disadvantages(I) Slow decisions, (2) Divided responsibility, (3) Minority tyranny, (4) other abuses.

(5) Project or Matrix OrganisationIn it authority flows vertically within functional departments.

Advantages-It emphasises multiple inter-dependence among various functions, horizontal relationshipsand operational flexibility.

DisadvantagesIt is of a temporary nature.

Leadership:Leadership is the knack of getting other people to follow and to do willingly the things one wants them to do.

Leadership may be also defined as the process of influencing a group in a particular situation at a given point of times and in a specific set of circumstances that stimulate people to strive willingly to attain company objectives.

Qualities of good leadership:

1. A sense of mission

2. Accomplishment

3. Education: board as well as technical.

4. Acceptability

5. Self-denail

6. Acuteness

7. High intelligence

8. High character

9. Administration

10. Maturity

11. Job competence

12. Analysis and judgment

13. Initiative and drive

14. Energy

15. Attitude

16. Personal compliance

17. Constructive, creative and independent thinking

18. Dependability

19. Group sprit

20. Flexibility

21. Knowledge of industrial psychology and human relations

22. Approachability

23. Open mindedness

24. Self-confidence 25. Cheerfulness and socialness 26. Good poise and hearing

27. Verbal ability and communication

28. Vision

Motivation:

Types of Motivation:

There are two types of motivation, Intrinsic and Extrinsic motivation. It's important to understand that we are not all the same; thus effectively motivating your employees requires that you gain an understanding of the different types of motivation. Such an understanding will enable you to better categorize your team members and apply the appropriate type of motivation. You will find each member different and each member's motivational needs will be varied as well. Some people respond best to intrinsic which means "from within" and will meet any obligation of an area of their passion. Quite the reverse, others will respond better to extrinsic motivation which, in their world, provides that difficult tasks can be dealt with provided there is a reward upon completion of that task. Become an expert in determining which type will work best with which team members.

Intrinsic Motivation

Intrinsic motivation means that the individual's motivational stimuli are coming from within. The individual has the desire to perform a specific task, because its results are in accordance with his belief system or fulfills a desire and therefore importance is attached to it.

Our deep-rooted desires have the highest motivational power. Below are some examples:

Acceptance: We all need to feel that we, as well as our decisions, are accepted by our co-workers.

Curiosity: We all have the desire to be in the know.

Honor: We all need to respect the rules and to be ethical.

Independence: We all need to feel we are unique.

Order: We all need to be organized.

Power: We all have the desire to be able to have influence.

Social contact: We all need to have some social interactions.

Social Status: We all have the desire to feel important.

Extrinsic Motivation

Extrinsic motivation means that the individual's motivational stimuli are coming from outside. In other words, our desires to perform a task are controlled by an outside source. Note that even though the stimuli are coming from outside, the result of performing the task will still be rewarding for the individual performing the task.

Extrinsic motivation is external in nature. The most well-known and the most debated motivation is money. Below are some other examples:

Employee of the month award

Benefit package

Bonuses

Organized activities

Communication:Communication is the process of conveying messages. Communication is the process of transmitting ideas or thoughts from one person to another, for the purpose of creating understanding in the thinking of the person receiving the ideas or information.

Types of communication:

1. Formal communication

2. Informal communication.

Formal communication:

1. Vertical communication- downward from top management to workers to do a job, a praise or a raprimand; or upward from workers to higher management level, giving work accomplishment report or other feed-back information.2. Horizontal communication-ie., the transmission of information from and to , to position of the same level, e.g., Manager production informing Manager maintenance regarding a machine breakdown.Informal communication: is one that is outside the formal, recognized communication system, such as conversation between and among workers and the grapewine.Conflicts management in organization:

Conflict is inevitable in small businesses. Conflict can arise from a variety of sources, and between supervisors and subordinates, between co-workers, and between employees and customers. Managers and organizations can choose to see conflict as inherently negative, acting to suppress it at every opportunity, or as inherently positive, leveraging conflict to affect positive change.Positive Perspective

Accept conflict as a natural growth process and influence your company culture to view constructive conflict positively. Conflict can be an asset to your small business if it is handled properly. It can help your organization to learn from its mistakes and identify areas of needed improvement. Innovation can be inspired from creative solutions to internal or external conflicts, and new ways of thinking can emerge.

Grievance Procedure

Create a formal grievance procedure for all employees. Let employees at all levels of your organization know that their voices will always be heard, and respond promptly and reasonably to employees' issues. This can prevent bad feelings from festering and growing into resentment and bitterness. Conflict is best handled quickly and openly. If your company culture is sufficiently friendly toward constructive conflict, your staff should see the value of letting their complaints, ideas and issues be heard.

Get to the Cause

Focus on deep-rooted causes rather than superficial effects when assessing conflicts. Parties to a conflict often claim to have issues with the behavior of co-workers or the outcome of company policies and work procedures, but these issues are likely being caused by something deeper. Attempting to resolve the conflict by addressing surface issues will rarely create meaningful change or lasting solutions. Look deeper to address the reasons that incidents occur.

As an example, if a supervisor finds himself constantly in conflict with a loyal employee due to falling productivity levels, the supervisor may naturally want to address the employee's behavior head-on. Upon closer analysis, however, the supervisor may realize that the employee has been increasingly dissatisfied with his job ever since last year's disappointing performance review. Revisiting the review with the employee may be much more effective than creating incremental performance goals for him.

Equal Voices

Give all parties to a conflict an equal voice, regardless of their position, length of service or political influence. Conflict participants can become defensive if they feel they are being marginalized or are going through a process leading to a predetermined outcome. It can be tempting to take the word of managers over front-line employees, or to take the word of a loyal employee over a new employee, but remember that your most trusted associates are not necessarily infallible. Go beyond simply giving everyone an equal chance to speak; give their arguments an equal weight in your mind when mediating a conflict.

Resolution Participation

Involve all parties, if possible, when drafting conflict resolutions. The theory of Management By Objectives (MBO) states that employees are generally more committed to goals that they have helped to create. The same holds true for conflict resolutions. There is more than one side to every conflict, and all sides should benefit from conflict resolution. Seek resolutions that will prevent the conflict from occurring again, rather than simply delaying a repeat occurrence.

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