Introduction to Management PDF

Module - 1 Introduction to Management  Contents of the Module 1 Introduction to Management Management – Definition, Nature, Management as a Science or Art- Evolution of Management Thought- Scientific Management, Contributions of Henry Fayol, H...

Module - 1 Introduction to Management  Contents of the Module 1 Introduction to Management Management – Definition, Nature, Management as a Science or Art- Evolution of Management Thought- Scientific Management, Contributions of Henry Fayol, Hawthorne Experiments and Human Relations, Contributions of Behavioral Scientists- Schools of Management Thought, Functions of Management- Principles of Management. CO 1: Explain the principles of Management (Comprehension)  Definition of Management by Koontz & Weihrich “Management is the process of designing and maintaining an environment in which individuals, working together in groups efficiently accomplish selected aims” A manager carries out the managerial functions of planning, organizing, staffing, leading and controlling Management applies to any kind of organization It applies to managers at all organizational levels The aim of all managers is the same: to create surplus Managing is concerned with productivity, which implies effectiveness and efficiency  Definition of Management by Parker Follett “Art of getting things done through others” Weaknesses of the definition are: It uses the word “art” in defining management. To say that management is merely an art is half-truth. Art deals with application of knowledge. Science deals with acquisition of knowledge. Management is both art and science. This definition does not throw light on the various functions of a manger.  Definition of Management by George R Terry Management is a process that consists of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources” Management is a process- a systematic way of doing things It involves 4 activities Planning: thinking of actions in advance Organizing: coordinate the resources of the organization Actuating: Compare with standards, motivate and direct subordinates Controlling: attempts to ensure there are no deviations from the plan  Other Definitions of Management “Management is what manager does” – Louis Allen “Management is a multipurpose organ that manages business, manages managers, manages workers and work” – Peter F Drucker Management is a process of planning, organizing, staffing, directing and controlling human efforts to achieve utilization of resources and coordinated human efforts.  Nature of Management Management is a process: A process consists of a series of interrelated activities or steps to be followed in a sequence and it always restarts with the first step. Management as a process includes five major functions: POSDC. Abstract phenomenon: It is an invisible and intangible knowledge. The knowledge consists of concepts, functions, theories, approaches, principles etc. And used to obtain the desired results. Goal oriented: The primary task of management is to achieve the goals. The goals can be defined as the end expected results. That can be actualized in future. Decision- making: Management is synonymous with decision making because every function consists of a set of decisions. Success of an organization depends upon the quality of decisions. Working with and through people: A manager is responsible for leading, motivating, directing and controlling  Nature of Management contd… Management is a Universal Activity: Many experts believe management is universal. Any subject which can be applied everywhere in all times without any discrimination can be said to be universal. There are two opposite views of universality of management. Management is universal with reference to its fundamentals- concepts, processes, principles and functions. But it is not considered universal in practice. Multi-disciplinary Concept: Management has enriched its knowledge by borrowing concepts and theories from other disciplines like economics, marketing, sociology, psychology, anthropology etc. Economists see management as a factor of production; Sociologists see it as a class or group of persons; Practitioners of management treat it as a process. Management is a science and an art: Management has developed certain principles and laws which have wide applications. So it is treated as a science. It is also an art, because it is concerned with the application of knowledge for the solution of organizational problems  Management: an art or science? Science has been defined as a body of systematized knowledge, which establishes a relationship between cause and effect. Such systematized knowledge contains concepts, hypotheses, theories, experimentation and principles. A subject to be recognized as a science should have the following features: Its principles should have universal applicability. It should have a scientific method for observation. Its principles should establish cause and effect relationship.  Management: an art or science? Art may be defined as “the technique of applying the principles to actual practice so as to achieve the desired results with efficiency.” Art is concerned with application of knowledge and skills. Art is practiced. Art has the features via Applying practical knowledge, demonstration of personal skills, creative in nature Perfection through Practice Therefore, Principles and techniques of management when applied in the organization to achieve its objects become Art.  Management: an Art or Science? Now management has been given the shape of an organized body of knowledge. Its study helps in gaining a rational approach to the development of means for accomplishing certain goals. That is why, management is called a Science. Although management has been recognized as a science, it is not exact like the biological and physical sciences. It falls in the area of ‘Social Science’ as it is a social process and deals with complex human beings. The theories and principles of management are situation bound. It may produce different results in different situations. That is why Ernest Dale has called management a ‘Soft Science’.  Management is both Art and Science A manager must have sufficient knowledge of management fundamentals. However, only management knowledge is of no value if it is not used judiciously. To use scientific knowledge, one requires skills and practical know-how to decide where, to what extent and in what way should knowledge be applied to get optimum results. An art without scientific base is incomplete and a science without an art is knowledge wasted.  Management Process Planning Directing Money Manpower Machines Process Goal Material Method Organizing Controlling Inputs  Significance of Management 1. Optimal Use of Resources 2. Effective Leadership and Motivation 3. Sound Industrial Relations Significance of Management 4. Achievement of Goals 5. Improvement in Living Standards 6. Establishing a Sound Organization 7. Reduces Cost  Principles of Management Also called as Administrative Management Theory. Henri Fayol is considered as the Father of Administrative Management Theory. The study focuses on development of board administrative principles applicable to general and higher managerial levels. Fayol synthesized the 14 principles of management which serve as a guidelines for decision-making and management actions. They are drawn up by means of observations and analyses of events that managers encounter in practice.  Early Classical Approach- Administrative Management Production by Specialization Chain of Superiors Personnel  Early Classical Approach- Administrative Management Division of Work (Specialization): According to Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. Authority and Responsibility: As the management consists of getting the work done through others, it implies that the manager should have the right to give orders and power to extract obedience. According to Henri Fayol, the accompanying power or authority gives the management the right to give orders to the subordinates. Discipline: is the obedience to authority, observance of the rules, respect for the agreements, sincere efforts to complete the work etc., It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions.  Early Classical Approach- Administrative Management Unity of Command: This principle requires that each employee should receive instructions about a particular work from one superior only. If an employee has to report to more than one superior, he would be confused due to conflict in instructions. Unity of Direction: This principle means that there should be complete identity between individual and organizational goals on the one hand and between department goals and organizational goals. Subordination of Individual Interest to General Interest: This principle states that general interest is superior to the individual interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. An individual is interested in maximizing his own satisfaction through more money, recognition and status etc., this individual interest is against the general interest which lies in maximizing production. Hence the need to subordination of individual interests to general interests.  Early Classical Approach- Administrative Management Remuneration: the remuneration paid to the personnel should be fair. It should be based on business conditions, cost of living, productivity of concerned employees and capacity of the firm to pay. Fair remuneration increases worker’s efficiency and morale and fosters good relations between them and the management. Centralization and Decentralization: This refers to the degree to which subordinates are involved in decision making. If employees are given more role and importance in decision making, it is Decentralization. If employees involvement in decision making is very little, it is Centralization. The management decides the degree of centralization on the basis of types of activities, size and nature of organization. The objective is to optimum utilization of all faculties of the personnel.  Early Classical Approach- Administrative Management Scalar Chain: The line of authority from top management to the lowest ranks represents the scalar chain. It is the “Chain of Superiors” Communications should follow in this chain. Gang Plank avoids delays and allows direct communication between two subordinates at the same level.  Early Classical Approach- Administrative Management Order: This principle is concerned with systematic arrangement of men, machine, material etc. There should be a specific place for every employee in an organization. That is 'a place for everything (people) and everything has a place'. To observe this principle, there is need for scientific selection of competent personnel. Correct assignment of duties to personnel and good organization. Equity: All the employees must be treated with equity and respect. Equity results from combination of kindness and justice. It ensures healthy industrial relations between management and labour which is essential for the successful working of the organization. Stability of tenure of Personnel: To motivate the employees, the management has to assure job security. If employee has fear of insecurity of job, their morale will be low which results in lower performance.  Early Classical Approach- Administrative Management Initiative: Innovation is possible only when the employees are encouraged to take initiatives. It is the freedom to think and execute a plan. The zeal and energy of employees are augmented by initiative. Esprit de Corps: This principle means “Unity is Strength” which results in team spirit. Organization should create team spirit among the employees. Harmony and unity among the staff are a great source of strength of the organization. Fayol suggests to avoid the motto of “divide and rule” and promotion of verbal communication to overcome misunderstandings.  Managerial Roles According to Mintzberg, a Manager should be regarded as playing the following ten different roles: Category Roles Figurehead Interpersonal Leader Liaison Monitor Informational Disseminator Spokesperson Entrepreneur Disturbance Handler Decisional Resource Allocator Negotiator  Managerial Roles contd….. Interpersonal Category: The managerial roles in this category involve providing information and ideas. Figurehead – In this role, every manager has to perform some duties of a social, ceremonial and legal nature. Figurehead is expected to be a source of inspiration. People look up to this role as a person with authority, and as a figurehead. (greeting touring dignitaries, managing important customers etc) Leader – This is where a manager leads the teams or department. As a leader, every manager must motivate and encourage his employees. Liaison – Managers must communicate with internal and external contacts. Manager must be able to network effectively on behalf of the organization. He should cultivate network outside his vertical chain of command to collect information useful for the organization.  Managerial Roles contd….. Informational Category: The managerial roles in this category involve processing information. Monitor – In this role, the manager should scan the environment and look for relevant changes in the environment. Manager also should monitor the team, in terms of their productivity, and their well-being. Disseminator – This is where the manager communicates potentially useful information to the colleagues and team. Spokesperson – Managers represents and speaks for their organization. In this role, the manager is responsible for transmitting information about the organization and its goals to the people outside it.  Managerial Roles contd….. Decisional Category: The managerial roles in this category involve using information. Entrepreneur – in this role, the manager proactively looks out for innovation to improve the organization. This means solving problems, generating new ideas, and implementing them. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's the manager who must take charge. Manager must seek solutions of various unanticipated problems. Resource Allocator – the manager also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources. Negotiator – Manager is needed to take part in, and direct, important negotiations within the team, department, or organization. CEO with union leaders about any strike, foreman with workers on grievance redressal.  Evolution of Management Thought The evolution of Management thought during the last hundred years can be studied in three parts: Approaches Studies in each approach Early Classical Approach Scientific Management/ Taylorism Administrative Management Bureaucracy Neo-classical Approach Human Relations Movement Behavioral Approach Modern Approach Quantitative Approach, Systems Approach Contingency Approach  Early Classical Approach- Scientific Management Fredrick Winslow Taylor is considered to be the Father of Scientific Management. He developed the Scientific Management theory/ Taylorism Scientific Management is applying science to work which means systematically studying the tasks at micro level to speed up the work and increase the efficiency. The main objective is improving economic efficiency and labor productivity. The following are the contributions of F W Taylor: Time and Motion Study Differential Payment Drastic Reorganization of Supervision Scientific Recruitment and Training Cooperation between the Management and Workers  Early Classical Approach- Scientific Management Time and Motion Study Time Study is the least amount of time on an average to perform each task or part of a task Motion Study is the fewest number of motions required for each task- Frank and Lillian Gilbreth Shoveling experiment– 26 pounds to 21.5 pounds- Time Study- Taylor Surgical nurse assistance, Assembling and disassembling of weapons in the army- Motion Study Under time and motion study, each motion of a job was to be timed with the help of a stop watch and shorter and fewer motions were to be developed. Thus the best way of doing a job was found. This replaced the old rule-of-thumb knowledge of the workman.  Early Classical Approach- Scientific Management Differential Payment: Taylor introduced a new payment plan called the Differential piece work, in which incentives are linked with production. Under this plan, a worker receives low piece rate if he produces standard number of pieces and high rate if he surpasses the standard. Taylor suggested the high piece rate would motivate workers to increase production. Drastic Reorganization of Supervision: Taylor suggested Separation of planning and doing work and functional foremanship. The work should be planned by a foreman and not by the worker. And there should be as many foreman as there are special functions involved in doing a job. Functional foremanship is a factory management technique that advocates for having multiple foremen in different, specialized roles. Planning Foreman: Instruction Card Clerk, Route clerk, Time and Cost clerk, Disciplinarian. Production Foreman: Speed Boss, Gang Boss, Repair Boss and Inspector.  Early Classical Approach- Scientific Management Scientific Recruitment and Training: Taylor emphasized the need for scientific selection and development of workers. Management should develop and train every worker to bring out his best skills and to enable to do better work. Cooperation between the Management and Workers: leads to increase in the production, which increases the profits and results in better understanding and better earnings.  Early Classical Approach- Scientific Management Henry Laurence Gantt was an American mechanical engineer and management consultant who is best known for his work in the development of scientific management. Gantt insisted that willingness to use correct methods and skills in performing a task was important as knowing the methods and having the skills in the first place. Thus, he highlighted the importance of human element in productivity and propounded the concept of motivation. He redesigned the incentive system developed by Taylor. Gantt’s incentive system: Every worker who finishes the day’s assignment is given 50% bonus for that day. The foreman too earns bonus for each worker who finishes the daily standard + extra bonus if all the workers reaches the standard. He developed Gantt Charts. These charts records the worker’s progress on individual bar charts and inked black on the days if standard is achieved and red on the days the progress is below the standard. Gantt Chart Gantt Chart in the Modern Era  Early Classical Approach- Administrative Management Henri Fayol is considered as the Father of Administrative Management Theory. The study focuses on development of board administrative principles applicable to general and higher managerial levels. Fayol synthesized the 14 principles of management which serve as a guidelines for decision-making and management actions. They are drawn up by means of observations and analyses of events that managers encounter in practice.  Early Classical Approach- Administrative Management Production by Specialization Chain of Superiors  Early Classical Approach- Administrative Management Division of Work (Specialization): According to Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. Authority and Responsibility: As the management consists of getting the work done through others, it implies that the manager should have the right to give orders and power to extract obedience. According to Henri Fayol, the accompanying power or authority gives the management the right to give orders to the subordinates. Discipline: is the obedience to authority, observance of the rules, respect for the agreements, sincere efforts to complete the work etc., It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions.  Early Classical Approach- Administrative Management Unity of Command: This principle requires that each employee should receive instructions about a particular work from one superior only. If an employee has to report to more than one superior, he would be confused due to conflict in instructions. Unity of Direction: This principle means that there should be complete identity between individual and organizational goals on the one hand and between department goals and organizational goals. Subordination of Individual Interest to General Interest: This principle states that general interest is superior to the individual interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. An individual is interested in maximizing his own satisfaction through more money, recognition and status etc., this individual interest is against the general interest which lies in maximizing production. Hence the need to subordination of individual interests to general interests.  Early Classical Approach- Administrative Management Remuneration: the remuneration paid to the personnel should be fair. It should be based on business conditions, cost of living, productivity of concerned employees and capacity of the firm to pay. Fair remuneration increases worker’s efficiency and morale and fosters good relations between them and the management. Centralization and Decentralization: This refers to the degree to which subordinates are involved in decision making. If employees are given more role and importance in decision making, it is Decentralization. If employees involvement in decision making is very little, it is Centralization. The management decides the degree of centralization on the basis of types of activities, size and nature of organization. The objective is to optimum utilization of all faculties of the personnel.  Early Classical Approach- Administrative Management Scalar Chain: The line of authority from top management to the lowest ranks represents the scalar chain. It is the “Chain of Superiors” Communications should follow in this chain. Gang Plank avoids delays and allows direct communication between two subordinates at the same level.  Early Classical Approach- Administrative Management Order: This principle is concerned with systematic arrangement of men, machine, material etc. There should be a specific place for every employee in an organization. That is 'a place for everything (people) and everything has a place'.. To observe this principle, there is need for scientific selection of competent personnel. Correct assignment of duties to personnel and good organization. Equity: All the employees must be treated with equity and respect. Equity results from combination of kindness and justice. It ensures healthy industrial relations between management and labour which is essential for the successful working of the organization. Stability of tenure of Personnel: To motivate the employees, the management has to assure job security. If employee has fear of insecurity of job, their morale will be low which results in lower performance.  Early Classical Approach- Administrative Management Initiative: Innovation is possible only when the employees are encouraged to take initiatives. It is the freedom to think and execute a plan. The zeal and energy of employees are augmented by initiative. Esprit de Corps: This principle means “Unity is Strength” which results in team spirit. Organization should create team spirit among the employees. Harmony and unity among the staff are a great source of strength of the organization. Fayol suggests to avoid the motto of “divide and rule” and promotion of verbal communication to overcome misunderstandings.  Early Classical Approach- Bureaucratic Theory Around 1910, Max Weber made a study on various organizations. He is considered as the Father of Bureaucracy. Bureaucracy states that employees performing a large variety of tasks in any organization must follow established rules and regulations in order to ensure uniformity and rationality of output. Bureaucracy is a system of administration in which most of the important decisions are taken by Top management rather than by managers.  Neoclassical Approach- Human Relations Movement Human relations movement refers to the study of behaviour of people in groups, particularly in workplace groups in relation to Organizational Development. The first intensive and systematic analysis of Human behaviour was made in the form of Hawthorne experiments. Hawthorne studies were conduced by Elton Mayo and Fritz Roethlisberger with the workers at the Hawthorne plant of Western Electric Company, Chicago. The reason to conduct the studies is to identify the factors that fluctuates productivity of a worker. WEC was manufacturing Telephone system bells. 30,000 employees participated in the study. Company provides pension, sickness benefits and other recreational benefits but employees were dissatisfied which resulted in inefficient productivity. The experiments were conducted in 4 phases from 1924-32. Neoclassical Approach- Human Relations Movement  Phases of Hawthorne experiments: Explanation Illumination Experiment: Experimental Group and Control Group. Relay Assembly Test Room Experiment: 6 women Change in Incentive System Absenteeism decreased, 2 Rest pauses, 5/10 minutes each Morale increased and 3 Rest pauses 5 minutes each The 2 rest pauses 10 minutes each with refreshments Less supervision was 5 working days and lesser working hours required Reverting to the original position Mass Interviewing Programme: 20,000 workers Close ended Directive questions – replies were guarded Influence of group Non-directive questions behaviour inside and Interviewers would listen only without arguments outside the workplace. Bank Wiring Observation Room Experiments: 14 male workers Informal relations Group incentive  A  15 B  10 47 50 C8 D  14  Neoclassical Approach- Human Relations Movement Relay Assembly Test Room Experiment: Researchers set up a Relay assembly test room with a group of 6 women. The experiment started with introducing various changes in 4-6 weeks duration. Change in Incentive System: Extra pay for woman if the productivity increased. This change resulted in increased productivity. 2 Rest pauses, 5/10 minutes each; Morning and evening. The rest pause time increased to10 minutes later. This resulted in increased productivity. 3 Rest pauses 5 minutes each. This resulted in slightly decreased productivity because this effected rhythm in the work. The 2 rest pauses 10 minutes each with coffee/soup & Sandwich. Productivity increased. 5 working days and lesser working hours: Productivity increased.  Neoclassical Approach- Human Relations Movement Relay Assembly Test Room Experiment: As changes were introduced, the absenteeism decreased, morale increased and less supervision was required. The final change is reverting back to the original position with no breaks and no benefits. The productivity still increased. It was concluded that the productivity is effected only by the attitude of the worker and not the benefits provided by the organization.  Neoclassical Approach- Human Relations Movement Mass Interviewing Programme: 20,000 workers were interviewed. Directive questions were asked which were close- ended. The replies were guarded so non-directive questions were asked. The interviewers were allowed only to listen and not to argue or guide. This method gave valuable insights like: Worker’s behaviour is influenced by group behaviour. The worker behaviour is influenced by social experience in groups both inside and outside the work place.  Neoclassical Approach- Human Relations Movement Bank Wiring Observation Room Experiments: The work involved attaching wire with switches for certain equipment used in telephone exchanges. Group of 14 male workers Hourly wage for each worker was fixed on the basis of average output of each worker. Bonus as also payable on the basis of group effort. It was expected that highly efficient workers would bring pressure on less efficient workers to increase output and take advantage of group incentive plan. However, the strategy did not work and workers established their own standard of output. The productivity was not increased. This study suggested that informal relationships are more important factor in determining the human behaviour. The reasons of less productivity are fear of unemployment and fear of increasing the standard and protection of slower workers.  Neoclassical Approach- Behavioral Approach Behavioral approach is an improved and a more mature version of the human relations approach. Douglas McGregor’s Theory X and Theory Y, Abraham Maslow’s Hierarchy of needs, Kurt Lewin’s Change Theory and Chester Barnard’s Acceptance theory of Authority contributed majorly to this approach. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.  The subordinate is able to fully interpret the communication. The subordinate believes that the communication is consistent with the objectives of the organization. The subordinate believes that the communication is consistent his/her personal objectives. The subordinate is physically and mentally capable of accepting the communication.  Modern Approach- Quantitative Approach The quantitative school of management is a result of the research conducted during World War II (1939 - 1945) The Quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making. This approach encourages managers to use mathematics, statistics, and other quantitative techniques to make management decisions.  Modern Approach- Systems Approach Major contributors to Systems approach are Chester Barnard, George Homans and Herbert Simon. Systems approach views a company as an interconnected purposive system that consists of several business sections. Key concepts of this approach are: A system is interdependent parts: Each part represents a department or a sub- system. Each department has its sub-system. Continuous and effective interaction of sub-systems helps to attain goals of the larger system. Concept of Holism: Holism means no part of the system can be accurately analyzed and understood apart from the whole system. Conversely, the whole system cannot be accurately perceived without understanding all its parts. William Foote Whyte- Restaurants study- overwhelming order during rush hours which leads to chaos. Use of “spindle” solves the problem.  Systems Approach Explanation A system is interdependent parts Concept of Holism: William Foote Whyte research on restaurants A system is either open or closed: Every System has a boundary: Modern Approach- Systems Approach  Modern Approach- Systems Approach A system is either open or closed: An open system is one which interacts with its environment. The closed system is one which is independent of the environment. Every systems needs to interact with the external environment for better adaptation. Every System has a boundary: Organizations being social systems do not have clearly observable boundaries. The activities necessary for their transformation process define their boundaries. A boundary defines the scope of a system.  Modern Approach- Contingency Approach Explanation An extension of Systems Approach. “Action Oriented” or “It Depends” approach. Based on Contingency Theory of Leadership Effectiveness developed by Fred Fielder. Task Motivation and Relation Motivation  Least Preferred Co-worked scale. 1970s - none of the approaches had all the solutions to all the problems. Suggests that managers must do what the situation warrants. Employee motivation in a Tech Startup and a manufacturing company. (autonomy, flexible work hours, incentives) Crisis management in Financial institution and a hospital. (risk assessment, cost cutting, freeze hiring, investment in additional PPE, expand services) Technique  particular situation  particular time  attainment of goal. Assumptions: Every organization is unique  external environment Sub-systems are interrelated No one-size-fits-all solution Decide as per the situation  Modern Approach- Contingency Approach Contingency Approach is an extension of Systems Approach. It is “Action Oriented” or “It Depends” approach. This approach is based on Contingency Theory of Leadership Effectiveness developed by Fred Fielder. In the 1970s, it was felt that none of the approaches to management had all the solutions to all the problems in an organization. It suggests that managers must do what the situation warrants or managers actions must be contingent upon the organizational situation or environment. The task of a manager is to identify which technique will, in a particular situation, under particular circumstances and at a particular time, best contribute to the attainment of goals. The best way to organize depends on the nature of the environment to which the organization must relate.  Modern Approach- Contingency Approach Assumptions of Contingency Approach: Each organization is unique. External environment of each organization is different and unique. Sub-systems of organization are interrelated. There cannot be one best way of doing a thing. Best approach to management is situational. Key to a manager’s success lies in his ability to perceive and analyze every situation.  Modern Approach- Contingency Approach Contingency Theory of Leadership Effectiveness states that leadership effectiveness, as it relates to group effectiveness, is a component of two factors: Task motivation, or Relation motivation An employee’s task motivation or relations motivation is measured by Least Preferred Co-worker (LPC) Scale. The LPC scale asks the manager to think of the person they least like working with and then rate that person on a set of questions, each involving an 8-point scale. For example, a score of one would be uncooperative, and a score of eight would be cooperative. Fielder believed that people with a higher LPC score try to maintain harmony in their work relationships, while people with a lower LPC score are motivated to focus on task accomplishment.  Functions of Management Management experts have given different classifications for management functions: Names of Contributors Functions Henry Fayol Planning, Organizing, Commanding, Coordinating Controlling Luther Gulick POSDCORB R C Davis Planning, Organizing and Controlling E F L Brech Planning, Organizing, Motivating, Coordination, Controlling Koontz & O’Donnell Planning, Organizing, Staffing, Leading, Controlling George Terry Planning, Organizing, Actuating, Controlling Lyndall Urwick Planning, Organizing, Commanding, Coordinating, Communicating, Forecasting and investigating Peter F Drucker Objective setting, Decision-making, Organizing and Motivating Modern Views Planning, Organizing, Staffing, Directing and Controlling.  Functions of Management Planning: future course of action in advance to achieve the desired results. What to do, Analyzing the environment (precedes planning) – market trends, Why to do, competitors, consumer preferences etc., When to do, Establishing the objectives – 20% increase in the revenue How to do, Setting planning premises (forecasts, policies and plans) Identifying the alternatives – Collaborate with influencers, In-store pop-up Where to do, shops, limited period offers, eco-friendly packaging, product bundles etc Who are going to do Evaluating alternatives: Selecting best alternative Formulating secondary plans: back up of suppliers, product recall campaign, Social media crisis etc., Cosmetics Recalls & Alerts | FDA Implementing the plan and reviewing the results. Organizing: identifying and grouping the work Identifying the activities involved in achieving the objectives Grouping the activities into a logical pattern Assigning the activities to employees Delegating authority and fixing responsibility Coordinating the authority-responsibility relationships of various activities.  Functions of Management Staffing: Acquiring, maintaining and developing necessary human resources It involves: Manpower planning, determining the need for people Recruitment, selection and induction of employees Training and development of employees Wage and salary administration Promotion and transfer Performance appraisal Grievance handling and maintaining good relations Security and welfare activities. Directing involves instructing, guiding, inspiring and supervising employees Controlling: measuring and correcting individual and organizational performance Setting standards (expected results) Measuring actual results Comparing actual results with expected results Identifying deviation between actual results and expected results Taking corrective actions so that actual results match with expected results. Instore Pop up stores  Functions of Management Planning: It is a primary function of Management. It is a thinking process. It determines future course of action by deciding what to do(type of work), why to do (objectives), when to do (time), where to do (places or location), how to do(method) and who are going to do(people). It helps in selecting the best course of action, among other alternatives that can contribute the most to the objectives of the organizations. Planning is a continuous process. It is required to ensure effective utilization of human and non-human resources to accomplish the desired goals. The process of planning thus involves the following activities: Analyzing the business environment (precedes planning) Establishing the objectives Setting planning premises (forecasts, policies and plans) Identifying the alternatives Evaluating alternatives Selecting best alternative Formulating secondary plans Implementing the plan and reviewing the results.  Functions of Management Organizing: Once planning is implemented, the people in the organization have to be organized. Organizing brings together the manpower and material resources for the accomplishment of pre-determined goals. Organizing is the process of establishing relationships among the members of the organization. This relationship is created in the form of authority and responsibility. Each member in the organization is assigned a specific duty to perform and is granted the corresponding authority to do it. In the words of Louis A. Allen, “Organization is the process of identifying and grouping the work to be performed and dividing it among the individuals and creating authority and responsibility relationship among them for the accomplishment of objectives.”  Functions of Management The process of organizing thus involves the following activities: Identifying the activities involved in achieving the objectives Grouping the activities into a logical pattern Assigning the activities to employees Delegating authority and fixing responsibility Coordinating the authority-responsibility relationships of various activities.  Functions of Management Staffing is also known as Personnel Management or Human Resource Management. “Staffing involves acquiring, maintaining and developing necessary human resources for a smooth functioning of various operations in the organization” It performs all the necessary activities required from recruitment of employees to their retirement. It ensures that a right person is appointed for the right post in the right way. It involves: Manpower planning, determining the need for people Recruitment, selection and induction of employees Training and development of employees Wage and salary administration Promotion and transfer Performance appraisal Grievance handling and maintaining good relations Security and welfare activities.  Functions of Management Directing involves instructing, guiding, inspiring and supervising employees to make them work according to the plan. It is also known as Commanding or Executing function. The efforts of employees can be directed by using some techniques/tools. It includes Leadership: concerned with guiding and instructing employees at work. Motivation: concerned with inspiring and encouraging people at work Communication is concerned with providing and receiving necessary information within the organization. Supervision: concerned with observing and correcting employee’s performance. It involves overseeing people at work.  Functions of Management Controlling is measuring and correcting individual and organizational performance to ensure that events conform to plans. It is useful in finding out what is wrong and how it can be rectified. The process of controlling involves the following steps: Setting standards (expected results) Measuring actual results Comparing actual results with expected results Identifying deviation between actual results and expected results Taking corrective actions so that actual results match with expected results. It should be noted that both planning and controlling are interrelated and interdependent. Controlling ensures effective implementation of the plan.  Activity Suppose you are working in a software development company as a project leader, how can you use the functions of management in your environment? End of Module 1