Importance of Management

(i) Management Helps Achieving Group Goals It integrates the objective of individual along with organisational goal.
(ii) Management Increases Efficiency It increases productivity through better planning, organising, directing the activities of the organisation.

PROCESS OF STAFFING
1. Estimating Manpower Requirement: It involves the following:
(a) Making inventory of current human resources in terms of qualification, training & skills.
(b) Assessing future human resource needs of all departments.
(c) Developing a programme to provide the human resources. Job Analysis is an intensive way of finding details related to all jobs.

2.Recruitment: It refers to identification of the sources of manpower availability and making efforts to secure applicants for the various job positions in an organization.

3. Selection: It is the process of choosing and appointing the right candidates for various jobs in an organization through various exams, tests &interviews.

4. Placement and Orientation: When a new employee reports for duty, he is to be placed on the job for which he is best suited. Placement is very important process as it can ensure “Right person for right job”. Orientation/Induction is concerned with the process of introducing a new employee to the organization. The new employees are familiarized with their units, supervisors and fellow employees. They are also to be informed about working hours, procedure for availing leave, medical facilities, history and geography of organization and rules/regulations relating to their wages etc.

5. Training and Development: Systematic training helps in increasing the skills and knowledge of employees in doing their jobs through various methods.
Development involves growth of an employee in all respects. It is the process by which the employees acquire skills and competence to do their present jobs and increase their capabilities for higher jobs in future.

6. Performance Appraisal: It is concerned with rating or evaluating the performance of employees. Transfers and promotions of the staff are based on performance appraisal.

Economic Environment: It has immediate and direct economic impact on a business. Rate of interest, inflation rate, change in the income of people, monetary policy, price level etc. are some economic factors which could affect business firms. Economic environment may offer opportunities to a firm or it may put constraints.

IT is purely based on the scenario, applications or the environment where you want to apply.

But decentralisation has many advantages than centralisation.

Centralisation is a form of organisational structure where solely one unit is authorised to make autonomous decisions, set strategy, determine goals and objectives whereas Decentralisation relates to a transfer of power from a high level of government to a lower one. It is a form of organisational structure where several units are authorised to make autonomous decisions.

Decentralisation is better than centralisation because decentralisation focuses on the individual needs of people. A system can’t work properly by individuality. It needs monitoring from different sources. If a single entity works for a society there are major chances of irregular functioning. Power should not be in a single hand but it should be dispersed so that people are not dependent on one party. Also decentralisation makes the execution faster as it reduces the burden on a single entity.

Principle of untiy of command not hold good in the case of functional foremanship  because according to the principle of Unity of Command, any person should be answerable to just one boss. If an individual receives command from two or more people then, this principle is violated. However, under functional foremanship, the workers at the lower level management are assigned to take orders from eight foremen. That is, each worker has to follow the commands given by any of the eight foremen which is in violation to the principle of unity of command.

The concept referred here is 'Delegation'. Delegation implies transfer of authority, from a superior to his subordinate. It is an essential concept for effective organisation as it lowers the burden on the manager and thereby, facilitates the manager to focus on activities that command high priority. Also, the managers can extend his area of operations once he delegates the work to subordinates. In addition to this, it provides the subordinates with more opportunities for growth. It helps in efficient completion of tasks as the subordinates can now show their skills and exercise initiative.

Elements of delegation are:

(a) Authority: Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. It flows from top to bottom.

(b) Responsibility: Responsibility refers to the obligation of a subordinate to properly perform the assigned duty. It flows upwards.

(c) Accountability: Accountability refers to answerability to the outcome of the assigned task.

Main social objectives of management are included in the following list:
(i) To make available employment opportunities.

(ii) To save environment from getting polluted.
(iii) To contribute in improving living standard.

1. The ability to produce maximum output with limited resources is known as Efficiency. The level of the nearness of the actual result with planned result is Effectiveness.
2. Efficiency is ‘to do the things perfect’ while Effectiveness is ‘to do perfect things’.
3. Efficiency has a short run perspective. Conversely, the long run is the point of view of Effectiveness.
4. Efficiency is yield-oriented. Unlike Effectiveness, which is result oriented.
5. Efficiency is to be maintained at the time of strategy implementation, whereas strategy formulation requires Effectiveness.
6. Efficiency is measured in operations of the organisation, but Effectiveness of strategies is measured which are made by the organisation.
7. Efficiency is the outcome of actual output upon given the number of inputs. On the other hand, Effectiveness has a relationship with means and ends.

Techniques of Taylor’s scientific management :

1. Functional Foremanship : It is an extension of principle of division of labour, resulting in specialisation. According to Taylor, a single worker or supervisor cannot be expected to be an expert in all aspects. Thus, he advocated the appointment of eight foremen to guide workers, under planning and production departments.
   Under the planning incharge, there are four personnel:
   (i) Route clerk He is responsible to specify the route of production.
   {ii) Instruction card clerk He is responsible to give instructions to the workers.
   {iii) Time and cost clerk He is responsible to prepare time and cost sheets.
   (iv) Disciplinarian He is responsible to maintain discipline among workers.
   Under the production incharge, there are four personnel:
   (i) Speed boss He is responsible for timely completion of job.
   {ii) Gang-boss He is responsible for keeping machines and tools ready for work.
   {iii) Repair boss He is responsible to keep machines and tools in proper working condition.
   {iv) Inspector He is responsible to maintain quality of work.
   
2. Standardisation and Simplification of Work: Standardisation is the process of setting standards for every business activity, process, raw materials, rime, machinery and methods, to achieve efficiency.
   Standardisation of product implies that the size, design, quality, shape, etc of the product should meet the requirements and tastes of consumers.
   The objectives of standardisation are:
   {i) To maintain quality standards.
   (ii) To set up performance standards of men and machines.
   {iii) To provide interchangeability of manufactured parts and products.
   {iv) To achieve target production in pre-determined time. Simplification means eliminating superfluous sizes, varieties and dimensions. Its aim is to:
   {i) Eliminate unnecessary diversity of products and thereby reduce costs. .
   {ii) Help in achieving economy in the use of required machines and tools.
3. Work Study Techniques
   Scientific management requires deep analysis of all the activities performed in an organisation with the aim of producing the maximum possible output with the minimum possible efforts. In his effort to do so, FW Taylor conducted a number of experiments in various areas of production, viz method study, motion study, time study and fatigue study.
   (a) Method Study
   This technique of scientific management is conducted to find out the ‘one best method or way’ of performing a particular task. The objective of this study is to minimise the cost of production and maximise the quality and satisfaction of the customer.
   For this, techniques such as process charts and operations research are used.
   (b) Motion Study
   Motion study refers to an in-depth study of movements of a worker while doing a task. Taylor recognised three types of movements:
   (a) Productive (b) Unproductive © Incidental The objective of motion study is to eliminate unproductive movements in doing a task to achieve efficiency and reduce the time required to do the task. For this, Taylor used stopwatches and various colours and symbols to identify productive and unproductive movements of the employees.
   © Time Study
   It determines the standard time taken to perform a well-defined job. Time measuring devices were used to conduct this study. This type of study is helpful in deciding the time required to perform a job. It also helps in determining a fair day’s work for the workman and determining incentive schemes and labour costs.
   (d) Fatigue Study
   Fatigue study seeks to find out the amount and’ frequency of rest intervals to be given to workers in completing a task. This would help the worker to regain his stamina and work with the same efficiency again. It also aims to reduce various causes of fatigue such as long working hours, doing unsuitable work, bad working conditions, etc. The objective of this study is to find out how long a person can perform the standard task without any adverse effects on his health and productivity.
4. Differential Piece Wage System
   Taylor strongly advocated piece wage system. He wanted to differentiate between efficient and inefficient workers. Under this system of wage payment, wages are paid on the basis of work done.
   According to him, higher rates were given to the workers who are producing standard products or more and lower rates were given to those who are producing less.
5. Mental Revolution
   It involves change in the attitude of workers and management. Both should realise the importance of the other and should cooperate with each other. Both should aim to increase the size of surplus. Managers should share their gains with workers, while workers should contribute to increase profits. This attitude will bring prosperity to both, the company as well as the workers.

Fixed Capital Account is a partnership term. When the capitals of partners are fluctuating, all adjustments with regards to the interest in capitals, interest on drawings, partners salaries etc. are passed through the capital accounts of the partners. Under this system, the capital which is introduced by partners will remain fixed throughout the life of the partnership. Fluctuating capital account method is usually preferred by partners; however, they can also use fixed capital account according to their business and preference.

Henry Fayol also is known as ‘father of modern management theory’ gave a new perception of the concept of management. He introduced a general theory that can be applied to all levels of management and every department. The Fayol theory is practiced by the managers to organize and regulate the internal activities of an organization. He concentrated on accomplishing managerial efficiency.

The fourteen principles of management created by Henri Fayol.

14 Principles

Henry Fayol’s 14 Principles of Management

1. Division of Work: The work should be divided among the individuals on the basis of their specializations, so as to ensure their full focus on the effective completion of the task assigned to them.
2. Authority and Responsibility: The authority and responsibility are related to each other. Authority means the right to give orders while the responsibility means being accountable. Thus, to whomsoever the authority is given to exact obedience must be held accountable for anything that goes wrong.
3. Discipline: The individuals working in the organization must be well-disciplined. The discipline refers to the obedience, behavior, respect shown by the employees towards others.
4. Unity of Command: According to this principle, an individual in the organization must receive orders from only one supervisor. In case an individual has the reporting relationship with more than one supervisor then there may be more conflicts with respect to whose instructions to be followed.
5. Unity of Direction: Unity of direction means, all the individual or groups performing different kinds of a task must be directed towards the common objective of the organization.
6. Subordination of Individual to General Interest: According to this principle, the individual and organizational interest must coincide to get the task accomplished. The individual must not place his personal interest over the common interest, in case there a conflict.
7. Remuneration of Personnel: The payment methods should be fair enough such that both the employees and the employers are satisfied.
8. Centralization: Fayol defines centralization as the means of reducing the importance of subordinate’s role in the organization, and the extent to which the authority is centralized or decentralized depends on the organization type in which the manager is working.
9. Scalar Chain: This means there should be a proper hierarchy in the organization that facilitates the proper flow of authority and communication. It suggests that each individual must know from whom he shall get instructions and to whom he is accountable to. Also, the communication either going up or down must pass through each level of authority.In certain circumstances where the quick flow of communication is required, the rigidity of a scalar chain can pose problems. Thus, Henry Fayol has suggested “gang plank” which means anybody in the hierarchy can interact with each other irrespective of their authority levels.
10. Order: This principle is related to the systematic arrangement of things and people in the organization. This means every material should be in its place, and there should be a place for every material. Likewise, in the case of people, a right man should be in the right job.
11. Equity: All the employees in the organization must be treated equally with respect to the justice and kindliness.
12. Stability of Tenure: The employees should be retained in the organization, as new appointments may incur huge selection and training cost.
13. Initiative: The manager must motivate his subordinates to think and take actions to execute the plan. They must be encouraged to take initiatives as this increases the zeal and energy among the individuals.
14. Esprit de Corps: This means “unity is strength”. Thus, every individual must work together to gain synergy and establish cordial relations with each other.

Semantic barriers The barriers, which are concerned with problems and obstructions in the process of encoding and decoding of message into words or impressions are called semantic barriers. Such barriers result in faulty translations, different interpretations, etc. Types of semantic barriers are:
(i) Badly expressed message Use of wrong words, omission of necessary words and inadequate vocabulary result in badly expressed messages. The intended meaning is not conveyed.
(ii) Symbols with different meanings The same word or symbol may carry different meanings to different people. The wrong meaning perceived by the receiver leads to communication problem.
(iii) Faulty translations When the translator is not proficient in both the languages involved in translation, the meaning of the. message may get distorted.

Deviation refers to difference between actual performance and plan performance.

For example if plan is producing 100 units and actually only 80 units are produced, then deviation =100−80=20.

No corrective action is required when the deviations are within acceptable limits.

Explanation:

Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.