On this blog,you will see post related to management related topics which you may find useful in your studies.along with management,You will also find posts about other academic topics and subjects which you study in India.If you want post on your preferd topic or subject,just let me know,I'll try my best to provide the most useful content
Wednesday, March 28, 2012
Thursday, March 22, 2012
the limited liability partnership act,2008 of India
Here is the link Of general introduction of the Indian act
of the limited liability partnership w.e.f. year 2008. Download the article to
read it, I’ll post it on blog separately later. Thank you!
Saturday, March 17, 2012
Characteristics of Planning
·
Planning is goal-oriented.
àPlanning is made to achieve desired objective of business.
àThe goals established should general acceptance otherwise
individual efforts & energies will go misguided and misdirected.
àPlanning identifies the action that would lead to desired
goals quickly & economically.
àIt provides sense of direction to various activities. E.g.
Maruti Udhyog is trying to capture once again Indian Car Market by launching
diesel models.
·
Planning is looking ahead.
àPlanning is done for future.
àIt requires peeping in future, analyzing it and predicting
it.
àThus planning is based on forecasting.
àA plan is a synthesis of forecast.
àIt is a mental predisposition for things to happen in
future.
·
Planning is an intellectual process.
àPlanning is a mental exercise involving creative thinking,
sound judgement and imagination.
àIt is not a mere guesswork but a rotational thinking.
àA manager can prepare sound plans only if he has sound
judgement, foresight and imagination.
àPlanning is always based on goals, facts and considered
estimates.
·
Planning involves choice & decision making.
àPlanning essentially involves choice among various
alternatives.
àTherefore, if there is only one possible course of action,
there is no need planning because there is no choice.
àThus, decision making is an integral part of planning.
àA manager is surrounded by no. of alternatives. He has to
pick the best depending upon requirements & resources of the enterprises.
·
Planning is the primary function of management / Primacy of
Planning.
àPlanning lays foundation for other functions of management.
àIt serves as a guide for organizing, staffing, directing
and controlling.
àAll the functions of management are performed within the
framework of plans laid out.
àTherefore planning is the basic or fundamental function of
management.
·
Planning is a Continuous Process.
àPlanning is a never ending function due to the dynamic
business environment.
àPlans are also prepared for specific period f time and at
the end of that period, plans are subjected to revaluation and review in the
light of new requirements and changing conditions.
àPlanning never comes into end till the enterprise exists
issues, problems may keep cropping up and they have to be tackled by planning
effectively.
·
Planning is all Pervasive.
àIt is required at all levels of management and in all
departments of enterprise.
àOf course, the scope of planning may differ from one level
to another.
àThe top level may be more concerned about planning the
organization as a whole whereas the middle level may be more specific in
departmental plans and the lower level plans implementation of the same.
·
Planning is designed for efficiency.
àPlanning leads to accompishment of objectives at the
minimum possible cost.
àIt avoids wastage of resources and ensures adequate and
optimum utilization of resources.
àA plan is worthless or useless if it does not value the cost
incurred on it.
àTherefore planning must lead to saving of time, effort and
money.
àPlanning leads to proper utilization of men, money,
materials, methods and machines.
·
Planning is Flexible.
àPlanning is done for the future.
àSince future is unpredictable, planning must provide enough
room to cope with the changes in customer’s demand, competition, govt. policies
etc.
àUnder changed circumstances, the original plan of action
must be revised and updated to male it more practical.
What is Planning?
Planning is the thinking process, the
organized foresight, the vision based on facts and experience that is required
for intelligent action.
Alford
& Beatty
Planning is a mental predisposition to do
things in orderly way, to think before acting and to act in the light of facts
rather than guesses”. Planning is deciding best alternative among others to
perform different managerial functions in order to achieve predetermined goals.
Urwick
Planning is deciding in advance what to
do, how to do and who is to do it. Planning bridges the gap between where we
are to, where we want to go. It makes possible things to occur which would not
otherwise occur.
Koontz
& O’Donnell
Planning means looking ahead and chalking
out future courses of action to be followed. It is a preparatory step. It is a
systematic activity which determines when, how and who is going to perform a
specific job. Planning is a detailed programme regarding future courses of
action. It is rightly said “Well plan is half done”. Therefore planning takes
into consideration available & prospective human and physical resources of
the organization so as to get effective co-ordination, contribution &
perfect adjustment. It is the basic management function which includes
formulation of one or more detailed plans to achieve optimum balance of needs
or demands with the available resources.
Wednesday, March 14, 2012
Study of Fayol and Taylor
Both the persons have contributed to
development of science of management. The contribution of these two pioneers in
the field of science of management has been reviewed as “The work of Taylor
& Fayol was, of course, especially complementary. They both realized that
problem of personnel & its management at all levels is the key to
individual success. Both applied scientific method to this problem that Taylor
worked primarily from operative level, from bottom to upward, while Fayol
concentrated on managing director and work downwards, was merely a reflection
of their very different careers”. They both differ from each other in following
aspects: -
·
Taylor looked at
management from supervisory viewpoint & tried to improve efficiency at
operating level. He moved upwards while formulating theory. On the other hand,
Fayol analyzed management from level of top management downward. Thus, Fayol
could afford a broader vision than Taylor.
·
Taylor called his
philosophy “Scientific Management” while Fayol described his approach as “A
general theory of administration”.
·
Main aim of Taylor - to
improve labor productivity & to eliminate all type of waste through
standardization of work & tools. Fayol attempted to develop a universal
theory of management and stressed upon need for teaching the theory of
management.
·
Taylor focused his
attention on fact by management and his principles are applicable on shop
floor. But Fayol concentrated on function of managers and on general principles
of management wheel could be equally applied in all.
Similarity - Both emphasized mutual co-operation
between employment and employees.
èSpheres of Human Activity
Fayol’s theory is more widely applicable
than that of Taylor, although Taylor’s philosophy has undergone a big change
Under influence of modern development, but Fayol’s principles of management
have stood the test of time and are still being accepted as the core of
management theory.
èPsychologists View Point
According to Psychologists, Taylor's study
had following drawbacks: -
·
Ignores human factors -
Considers them as machines. Ignores human requirements, want and aspirations.
·
Separation of Planning
and Doing.
·
Dissatisfaction -
Comparing performance with others.
·
No best way -
Scientific management does not give one best way for solving problems.
Basis
|
Taylor
|
Fayol
|
Human aspect
|
Taylor disregards human elements and there is more stress on
improving men, materials and methods
|
Fayol pays due regards on human element. E.g. Principle of
initiative, Espirit De’ Corps and Equity recognizes a need for human
relations
|
Status
|
Father of scientific management
|
Father of management principles
|
Efficiency & administration
|
Stressed on efficiency
|
Stressed on general administration
|
Approach
|
It has micro-approach because it is restricted to factory only
|
It has macro-approach and discuses general principles of
management which are applicable in every field of management.
|
Scope of principles
|
These principles are restricted to production activities
|
These are applicable in all kinds of organization regarding
their management affairs
|
Achievement
|
Scientific management
|
Administrative management
|
Bureaucratic theory of management by Max Weber
Bureaucratic Theory was developed by a German Sociologist
and political economist Max Weber (1864-1920). According to him, bureaucracy is
the most efficient form of organization. The organization has a well-defined
line of authority. It has clear rules and regulations which are strictly
followed.
èFeatures of bureaucratic management
The characteristics or features of Bureaucratic
Organization are as follows:-
·
There is a high degree of Division of Labour and Specialization.
·
There is a well defined Hierarchy of Authority.
·
It follows the principle of Rationality, Objectively and
Consistency.
·
There are Formal and Impersonal relations among the member
of the organization.
·
Interpersonal relations are based on positions and not on
personalities.
·
There are well defined Rules and Regulations. There rules
cover all the duties and rights of the employees. These rules must be strictly
followed.
·
There are well defined Methods for all types of work.
·
Selection and Promotion is based on Technical
qualifications.
·
Only Bureaucratic or legal power is given importance.
Principles of scientific management
èDevelopment of Science for each part of men’s job
(replacement of rule of thumb)
·
This principle suggests that work assigned to any employee
should be observed, analyzed with respect to each and every element and part
and time involved in it.
·
This means replacement of odd rule of thumb by the use of
method of enquiry, investigation, data collection, analysis and framing of
rules.
·
Under scientific management, decisions are made on the
basis of facts and by the application of scientific decisions.
èScientific Selection, Training & Development of Workers
·
There should be scientifically designed procedure for the
selection of workers.
·
Physical, mental & other requirement should be
specified for each and every job.
·
Workers should be selected & trained to make them fit
for the job.
·
The management has to provide opportunities for development
of workers having better capabilities.
·
According to Taylor efforts should be made to develop each
employee to his greatest level and efficiency & prosperity.
èCo-operation between Management & workers or Harmony
not discord
·
Taylor believed in co-operation and not individualism.
·
It is only through co-operation that the goals of the
enterprise can be achieved efficiently.
·
There should be no conflict between managers & workers.
·
Taylor believed that interest of employer & employees
should be fully harmonized so as to secure mutually understanding relations
between them.
èDivision of Responsibility
·
This principle determines the concrete nature of roles to
be played by different level of managers & workers.
·
The management should assume the responsibility of planning
the work whereas workers should be concerned with execution of task.
·
Thus planning is to be separated from execution.
èMental Revolution
·
The workers and managers should have a complete change of
outlook towards their mutual relation and work effort.
·
It requires that management should create suitable working
condition and solve all problems scientifically.
·
Similarly workers should attend their jobs with utmost
attention, devotion and carefulness. They should not waste the resources of
enterprise.
·
Handsome remuneration should be provided to workers to
boost up their moral.
·
It will create a sense of belongingness among worker.
·
They will be disciplined, loyal and sincere in fulfilling
the task assigned to them.
·
There will be more production and economical growth at a
faster rate.
èMaximum Prosperity for Employer & Employees
·
The aim of scientific management is to see maximum
prosperity for employer and employees.
·
It is important only when there is opportunity for each
worker to attain his highest efficiency.
·
Maximum output & optimum utilization of resources will
bring higher profits for the employer & better wages for the workers.
·
There should be maximum output in place of restricted
output.
·
Both managers & workers should be paid handsomely.
Scientific management by Taylor
Fredrick Winslow Taylor (March 20, 1856 - March 21, 1915)
commonly known as ’Father of Scientific Management’ started his career as an
operator and rose to the position of chief engineer. He conducted various
experiments during this process which forms the basis of scientific management.
It implies application of scientific principles for studying & identifying
management problems.
According to Taylor, “Scientific Management is an art of
knowing exactly what you want your men to do and seeing that they do it in the
best and cheapest way”. In Taylors view, if a work is analyzed scientifically
it will be possible to find one best way to do it.
Hence scientific management is a thoughtful, organized,
dual approach towards the job of management against hit or miss or Rule of
Thumb.
Fayol’s principles of management
èDivision of Labor
·
Henry Fayol has stressed on the specialization of jobs.
·
He recommended that work of all kinds must be divided &
subdivided and allotted to various persons according to their expertise in a
particular area.
·
Subdivision of work makes it simpler and results in
efficiency.
·
It also helps the individual in acquiring speed, accuracy
in his performance.
·
Specialization leads to efficiency & economy in spheres
of business.
èParty of Authority & Responsibility
·
Authority & responsibility are co-existing.
·
If authority is given to a person, he should also be made
responsible.
·
In a same way, if anyone is made responsible for any job,
he should also have concerned authority.
·
Authority refers to the right of superiors to get exactness
from their sub-ordinates whereas responsibility means obligation for the
performance of the job assigned.
·
There should be a balance between the two i.e. they must go
hand in hand.
·
Authority without responsibility leads to irresponsible
behavior whereas responsibility without authority makes the person ineffective.
èPrinciple of One Boss
·
A sub-ordinate should receive orders and be accountable to
one and only one boss at a time.
·
In other words, a sub-ordinate should not receive
instructions from more than one person because -
à It undermines authority
à Weakens discipline
à Divides loyalty
à Creates confusion
à Delays and chaos
à Escaping responsibilities
à Duplication of work
à Overlapping of efforts
·
Therefore, dual sub-ordination should be avoided unless and
until it is absolutely essential.
·
Unity of command provides the enterprise a disciplined,
stable & orderly existence.
·
It creates harmonious relationship between superiors and
sub-ordinates.
èUnity of Direction
·
Fayol advocates one head one plan which means that there
should be one plan for a group of activities having similar objectives.
·
Related activities should be grouped together. There should
be one plan of action for them and they should be under the charge of a
particular manager.
·
According to this principle, efforts of all the members of
the organization should be directed towards common goal.
·
Without unity of direction, unity of action cannot be
achieved.
·
In fact, unity of command is not possible without unity of
direction.
èEquity
·
Equity means combination of fairness, kindness &
justice.
·
The employees should be treated with kindness & equity
if devotion is expected of them.
·
It implies that managers should be fair and impartial while
dealing with the subordinates.
·
They should give similar treatment to people of similar
position.
·
They should not discriminate with respect to age, caste,
sex, religion, relation etc.
·
Equity is essential to create and maintain cordial
relations between the managers and sub-ordinate.
·
But equity does not mean total absence of harshness.
·
Fayol was of opinion that, “at times force and harshness
might become necessary for the sake of equity”.
èOrder
·
This principle is concerned with proper & systematic
arrangement of things and people.
·
Arrangement of things is called material order and
placement of people is called social order.
·
Material order- There should be safe, appropriate and
specific place for every article and every place to be effectively used for
specific activity and commodity.
·
Social order- Selection and appointment of most suitable
person on the suitable job. There should be a specific place for everyone and
everyone should have a specific place so that they can easily be contacted
whenever need arises.
èDiscipline
·
According to Fayol, “Discipline means sincerity, obedience,
respect of authority & observance of rules and regulations of the
enterprise”.
·
This principle applies that subordinate should respect
their superiors and obey their order.
·
It is an important requisite for smooth running of the
enterprise.
·
Discipline is not only required on path of subordinates but
also on the part of management.
·
Discipline can be enforced if -
à There are good superiors at all levels.
à There are clear & fair agreements with
workers.
à Sanctions (punishments) are judiciously
applied.
èInitiative
·
Workers should be encouraged to take initiative in the work
assigned to them.
·
It means eagerness to initiate actions without being asked
to do so.
·
Fayol advised that management should provide opportunity to
its employees to suggest ideas, experiences& new method of work.
·
It helps in developing an atmosphere of trust and
understanding.
·
People then enjoy working in the organization because it
adds to their zeal and energy.
·
To suggest improvement in formulation & implementation
of place.
·
They can be encouraged with the help of monetary &
non-monetary incentives.
èFair Remuneration
·
The quantum and method of remuneration to be paid to the
workers should be fair, reasonable, satisfactory & rewarding of the
efforts.
·
As far as possible it should accord satisfaction to both
employer and the employees.
·
Wages should be determined on the basis of cost of living,
work assigned, financial position of the business, wage rate prevailing etc.
·
Logical & appropriate wage rates and methods of their
payment reduce tension & differences between workers & management
creates harmonious relationship and pleasing atmosphere of work.
·
Fayol also recommended provision of other benefits such as
free education, medical & residential facilities to workers.
èStability of Tenure
·
Fayol emphasized that employees should not be moved
frequently from one job position to another i.e. the period of service in a job
should be fixed.
·
Therefore employees should be appointed after keeping in
view principles of recruitment & selection but once they are appointed
their services should be served.
·
According to Fayol. “Time is required for an employee to
get used to a new work & succeed to doing it well but if he is removed
before that he will not be able to render worthwhile services”.
·
As a result, the time, effort and money spent on training
the worker will go waste.
·
Stability of job creates team spirit and a sense of
belongingness among workers which ultimately increase the quality as well as
quantity of work.
èScalar Chain
·
Fayol defines scalar chain as ’The chain of superiors
ranging from the ultimate authority to the lowest”.
·
Every orders, instructions, messages, requests, explanation
etc. has to pass through Scalar chain.
·
But, for the sake of convenience & urgency, this path can
be cut shirt and this short cut is known as Gang Plank.
·
A Gang Plank is a temporary arrangement between two
different points to facilitate quick & easy communication as explained
below:
In the figure given, if D has to communicate with G he will
first send the communication upwards with the help of C, B to A and then
downwards with the help of E and F to G which will take quite some time and by
that time, it may not be worth therefore a gang plank has been developed
between the two.
·
Gang Plank clarifies that management principles are not
rigid rather they are very flexible. They can be moulded and modified as per
the requirements of situations.
èSub-Ordination of Individual Interest to General Interest
·
An organization is much bigger than the individual it
constitutes therefore interest of the undertaking should prevail in all
circumstances.
·
As far as possible, reconciliation should be achieved
between individual and group interests.
·
But in case of conflict, individual must sacrifice for
bigger interests.
·
In order to achieve this attitude, it is essential that -
à Employees should be honest & sincere.
à Proper & regular supervision of work.
à Reconciliation of mutual differences and
clashes by mutual agreement. For example, for change of location of plant, for
change of profit sharing ratio, etc.
èEspirit De’ Corps (can be achieved through unity of
command)
·
It refers to team spirit i.e. harmony in the work groups
and mutual understanding among the members.
·
Espirit De’ Corps inspires workers to work harder.
·
Fayol cautioned the managers against dividing the employees
into competing groups because it might damage the moral of the workers and
interest of the undertaking in the long run.
·
To inculcate Espirit De’ Corps following steps should be
undertaken -
·
There should be proper co-ordination of work at all levels
·
Subordinates should be encouraged to develop informal
relations among themselves.
·
Efforts should be made to create enthusiasm and keenness
among subordinates so that they can work to the maximum ability.
·
Efficient employees should be rewarded and those who are
not up to the mark should be given a chance to improve their performance.
·
Subordinates should be made conscious of that whatever they
are doing is of great importance to the business & society.
·
He also cautioned against the more use of Britain
communication to the subordinates i.e. face to face communication should be
developed. The managers should infuse team spirit & belongingness. There
should be no place for misunderstanding. People then enjoy working in the
organization & offer their best towards the organization.
èCentralization & De-Centralization
·
Centralization means concentration of authority at the top
level. In other words, centralization is a situation in which top management
retains most of the decision making authority.
·
Decentralization means disposal of decision making
authority to all the levels of the organization. In other words, sharing
authority downwards is decentralization.
·
According to Fayol, “Degree of centralization or decentralization
depends on no. of factors like size of business, experience of superiors,
dependability & ability of subordinates etc.
·
Anything which increases the role of subordinate is
decentralization & anything which decreases it is centralization.
Fayol suggested that
absolute centralization or decentralization is not feasible. An organization
should strike to achieve a lot between the two.
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