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Note for Introduction to Management and Functions - IMF by Agrapujya Dash

  • Introduction to Management and Functions - IMF
  • Note
  • Dhaneswar Rath Institute of Engineering and Management Studies (DRIEMS) -
  • Mechanical Engineering
  • B.Tech
  • 6 Topics
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Agrapujya Dash
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Module 1 Introduction to management According to F.W Taylor, ―Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.‖ According to Harold Koontz and Cyrill O‟ Donnell, ―Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals.‖ Management is a universal phenomenon. It is a very popular and widely used term. All organizations business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre - determined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. We can say that good management includes both being effective and efficient. Being effective means doing the appropriate task i.e, fitting the square pegs in square holes and round pegs in round holes. Being efficient means doing the task correctly, at least possible cost with minimum wastage of resources. Management can be defined in detail in following categories : 1. Management as a Process 2. Management as an Activity 3. Management as a Discipline 4. Management as a Group 5. Management as a Science 6. Management as an Art 7. Management as a Profession During industrial revolution, management was based on two main propositions, which are: Firstly, labour was perceived as a bunch of lethargic people who work only when controlled and supervised. Secondly, labour was the only factor that could bring reduction in costs. Therefore, all the efforts were made to reduce labour costs and increase production. Functions of Management Different experts have classified functions of management. According to George & Jerry, ―There are four fundamental functions of management i.e. planning, organizing, actuating and controlling‖. P.R.Dhal1

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According to Henry Fayol, ―To manage is to forecast and plan, to organize, to command, & to control‖. Whereas Luther Gullick has given a keyword ‘POSDCORB‘ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and O‟DONNEL Planning, Organizing, Staffing, Directing and Controlling. 1. Planning It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, ―Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be‖. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of predetermined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. 2. Organizing It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, ―To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel‘s‖. To organize a business involves determining & providing human and nonhuman resources to the organizational structure. Organizing as a process involves:  Identification of activities.  Classification of grouping of activities.  Assignment of duties.  Delegation of authority and creation of responsibility.  Coordinating authority and responsibility relationships. 3. Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. P.R.Dhal2

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square pegs in square holes and round pegs in round holes. According to Kootz & O‘Donell, ―Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure‖. Staffing involves:  Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).  Recruitment, Selection & Placement.  Training & Development.  Remuneration.  Performance Appraisal.  Promotions & Transfer. 4. Directing It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:  Supervision  Motivation  Leadership  Communication Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. 5. Controlling It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, ―Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation‖. According to Koontz & O‘Donell ―Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished‖. Therefore controlling has following steps: a. Establishment of standard performance. b. Measurement of actual performance. c. Comparison of actual performance with the standards and finding out deviation if any. d. Corrective action. P.R.Dhal3

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Levels of Management The term ―Levels of Management‘ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executory 3. Low level / Supervisory / Operative / First-line managers Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below: LEVELS OF MANAGEMENT 1. Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for middle level i.e. departmental managers. e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction. h. The top management is also responsible towards the shareholders for the performance of the enterprise. P.R.Dhal4

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