Section A

Ans. 1 :- Art and Science both.

Ans. 2 :- A.M.A (American Management Association)
Ans. 3 :- 14
Ans.4 :- F.W Taylor
Ans. 5 :- 6
 Section B

Que.1 What is Management?

Author Definition:

Management is the accomplishment of results through and with people in formal

organised groups

- Harold Koontz

Management is a multi purpose organ that manages business, managers, workers and
work

- Peter Drucker

To manage is to forecast and to plan, to organise, command, coordinate and control

- Philip Kotler

Art of getting things done through people.

- Mary Parker Follet

Consisting of Planning, Organising, Actuating and controlling, performed to determine

and accomplish the objectives by use of people and resources.

-George R. Terry

Explanation of Author definition (in your own words)

Importance Of Mangement

• Effective utilisation of resources

• Development of resources
• Incorporates innovation
• Motivates employees
• Expansion of business
• Reduces turnover/absenteeism
• Integrating various interest groups
• Brings stability in the society

It helps in Achieving Group Goals – It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It
directs group efforts towards achievement of pre-determined goals. By defining objective
of organization clearly there would be no wastage of time, money and effort. Management
converts disorganized resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.
Optimum Utilization of Resources – Management utilizes all the physical & human
resources productively. This leads to efficacy in management. Management provides
maximum utilization of scarce resources by selecting its best possible alternate use in
industry from out of various uses. It makes use of experts, professional and these services
leads to use of their skills, knowledge, and proper utilization and avoids wastage. If
employees and machines are producing its maximum there is no under employment of any
resources.
Reduces Costs – It gets maximum results through minimum input by proper planning and
by using minimum input & getting maximum output. Management uses physical, human
and financial resources in such a manner which results in best combination. This helps in
cost reduction.
Establishes Sound Organization – No overlapping of efforts (smooth and coordinated
functions). To establish sound organizational structure is one of the objective of
management which is in tune with objective of organization and for fulfillment of this, it
establishes effective authority & responsibility relationship i.e. who is accountable to
whom, who can give instructions to whom, who are superiors & who are subordinates.
Management fills up various positions with right persons, having right skills, training and
qualification. All jobs should be cleared to everyone.
Establishes Equilibrium – It enables the organization to survive in changing environment.
It keeps in touch with the changing environment. With the change is external environment,
the initial co-ordination of organization must be changed. So it adapts organization to
changing demand of market / changing needs of societies. It is responsible for growth and
survival of organization.
Essentials for Prosperity of Society – Efficient management leads to better economical
production which helps in turn to increase the welfare of people. Good management makes
a difficult task easier by avoiding wastage of scarce resource. It improves standard of
living. It increases the profit which is beneficial to business and society will get maximum
output at minimum cost by creating employment opportunities which generate income in
hands. Organization comes with new products and researches beneficial for society.

Explanation of Functions of Management (Planning, Organizing, Directing,

Control, and Staffing)

Que.1 Management is Both art and Science . Explain.

Ans.
One of the enduring questions in the field of management is whether it is an art or a
science. Definition of an art as "skill in conducting any human activity" and science as
"any skill or technique that reflects a precise application of facts or a principle." Reflected
in the differences in these definitions is the use of precision in science, in that there is a
particular, prescribed way in which a manager should act. Thus, management as a science
would indicate that in practice, managers use a specific body of information and facts to
guide their behaviors, but that management as an art requires no specific body of
knowledge, only skill. Conversely, those who believe management is an art are likely to
believe that there is no specific way to teach or understand management, and that it is a
skill borne of personality and ability. Those who believe in management as an art are likely
to believe that certain people are more predisposed to be effective managers than are
others, and that some people cannot be taught to be effective managers. That is, even with
an understanding of management research and an education in management, some people
will not be capable of being effective practicing managers.

Similarly A field of science is characterized by:

- Use of objective data collected through observation and experimentation.

- Systematic analysis and synthesis of such data to develop theories and models to
understand reality and predict impact of various actions taken to influence the reality.

- Decisions and actions based on objective data and insights gained from scientific theories
and models.

- Effectiveness of decisions and actions dependent on soundness of theories used and their
appropriate application.

- Scientific knowledge being objective can be easily documented for passing on to others

In contrast, an art is characterized by:

- Lack of explicit and commonly accepted models and theories to guide decisions and
actions.

- Effectiveness of decisions and actions dependent heavily on individual ability and skill. -
-- Decisions may be taken based on personal beliefs, feelings and preferences.

- Effectiveness of decisions and actions dependent heavily on individual ability and skill.

- Many areas of knowledge pertaining to an art cannot be documented for training others.

Comparing the nature of management against above characteristics of science and art, it
becomes clear that management combines characteristics of both art and science.

Though in earlier times, management effectiveness depended heavily on personal insights

and skills of managers, a body of management concepts, models and theories, based on
detailed systematic observation and measurement of real life and experimental data to
guide managers, has developed gradually starting from dawn of 20th century. Scientific
rigor of data analysis and synthesis has been applied to develop many useful management
theories and model. These models range from simple economic order quantity formula,
through statistical quality control techniques, to the highly sophisticated non linear
programming models.

Thus we can see that a practitioner of professional management today relies heavily on
objective data and sound management theories to qualify as a science.

However there are many areas of management that cannot be handled using scientific
method alone. A manager needs to work with many complex problems involving people in
various roles of employee, customer, competitor, business partner, shareholder, and other
stake holders. Behavior of all these groups is still not understood completely by behavior
sciences, and managers are forced to rely on their subjective judgments and skills in many
activities involving them. Also all the data that a manager may like to have may not be
available. Further, managers must rely on personal skills and understanding in dealing with
people. For example, winning over the co-operation of ones juniors, subordinates and peers
will usually require, among other things, skills such as persuasion, negotiation, and
empathy. Such skills are still more of an art rather than a science.

Thus in conclusion we can say that management is an art as well as a science. A person
aspiring to be an effective manager must strive to learn the theoretical aspects of
management. He or she must also develop the many skills of management which are not
completely covered by the scientific approach and continues to remain in the realm of art.
 Que.2 Explain the Planning Concept.

"Planning and forecasting arc inextricably, intertwined."

Planning involves defining the organization’s goals, establishing an overall strategy for
achieving these goals, and developing a comprehensive set of plans to integrate and
coordinate organizational work. Planning is in fact the advance decision making by
managers. Keeping in mind that decision making and decision taking, may it be for present
or for future is always required and is very much a managerial job. Let us first study the
nature process of decision making and its various models and types.
Decision making is part of all four managerial functions. In performing these functions,
managers are often called decision makers.
THE DECISION-MAKING PROCESS:
A decision is a choice made from two or more alternatives. The decision-making process is
defined as a set of different steps that begins with identifying a problem and decision
criteria and allocating weights to those criteria; moves to developing, analyzing, and
selecting an alternative that can resolve the problem; implements the alternative; and
concludes with evaluating the decision’s effectiveness.
Models of decision making can be either descriptive or normative.
1. Descriptive decision-making models attempt to prescribe how managers
actually do make decisions.
2. Normative decision-making models attempt to prescribe how managers should
process.
Planning is the process of determining the organization’s goals and objectives and selecting
a course of action to accomplish them within the environment inside and outside the
organization.
OR
Planning involves selecting missions and objectives and the actions to achieve them.
Reasons for Planning
• Helps enterprise succeed
• Provides direction and sense of purpose
• Helps manager cope with change
• Contributes to the performance of other managerial functions
• Precedes any other managerial function
• Optimum utilizing the resources.
Planning is a process for accomplishing purpose. It is blue print of business growth and a
road map of development. It helps in deciding objectives both in quantitative and
qualitative terms. It is setting of goals on the basis of objectives and keeping in view the
resources.
Essentials of planning
1. Clearly define the target / goal in writing.
2. Identify all the main issues which need to be addressed.
3. Review past performance.
4. Decide budgetary requirement.
5. Focus on matters of strategic importance.
6. What are requirements and how will they be met?
7. What will be the likely length of the plan and its structure?
8. Identify shortcomings in the concept and gaps.
9. Strategies for implementation.
10.Review periodically.

Importance of the Planning Process

1. Makes the objectives clear and specific.
2. Uncertainty and change.
3. Plans facilitate decision-making.
4. Provides basis of control
5. Leads to economy and efficiency
6. Facilitates integration
7. Encourages innovation and creativity.
8. Facilitates control
9. Improves motivation
10. Improves competitive strength
11. Innovation and creativity
12. Better coordination
 Que.2 What is Strategic Planning?
Ans.
Simply put, strategic planning determines where an organization is going over the next year
or more and how it's going to get there. Typically, the process is organization-wide, or
focused on a major function such as a division, department or other major function. (The
descriptions on this page assume that strategic planning is focused on the organization.)

Strategic planning is intended to accomplish three important tasks:

1. To clarify the outcomes that an organization wishes to achieve;

2. To select the broad strategies that will enable the organization to achieve those
outcomes;
3. To identify ways to measure progress

In addition, many organizations use the process to affirm their links to important
stakeholders by involving them in the creation of the plan.A strategic plan should not be
confused with a business plan. The former is likely to be a (very) short document whereas a
business plan is usually a much more substantial and detailed document. A strategic plan
can provide the foundation and frame work for a business plan. A strategic plan is not the
same thing as an operational plan. The former should be visionary, conceptual and
directional in contrast to an operational plan which is likely to be shorter term, tactical,
focused, implementable and measurable. As an example, compare the process of planning a
vacation (where, when, duration, budget, who goes, how travel are all strategic issues) with
the final preparations (tasks, deadlines, funding, weather, packing, transport and so on are
all operational matters).A satisfactory strategic plan must be realistic and attainable so as to
allow managers and entrepreneurs to think strategically and act operationally. A critical
review of past performance by the owners and management of a business and the
reparation of a plan beyond normal budgetary horizons require a certain attitude of mind
and predisposition. Some essential points which should to be observed during the review
and planning process include the following:

1. Relate to the medium term i.e. 2/4 years

2. Be undertaken by owners/directors
3. Focus on matters of strategic importance
4. Be separated from day-to-day work
5. Be realistic, detached and critical
6. Distinguish between cause and effect
7. Be reviewed periodically
8. Be written down.
 Que. 3 what do you mean by Organization?

Ans.

Organizing: Process of determining the activities to be performed, arranging these

activities to administrative units, as well as assigning managerial authority and
responsibilities to people employed in the organization. Organizations are experimenting
with different approaches to organizational structure and design. Organizational structure
can play an important role in an organization’s success.
The process of ORGANIZING—the second management functions—is how an
organization’s structure is created.
The nature of organization structure Managers are seeking structural designs that will
best support and allow employees to effectively and efficiently do their work. Organizing is
the process of creating an organization’s structure. Organization structure is the formal
pattern of interactions and coordination designed by management to link the tasks of
individuals and groups in achieving organizational goals. An organizational structure is
the formal framework by which job tasks are divided, grouped, and coordinated.
1. This formal pattern designed by management is to be distinguished from the
informal pattern of interactions that simply emerges within an organization.
2. Organization structure consists primarily of four elements:
a. Job design
b. Departmentalization
c. Vertical coordination
d. Horizontal coordination
3. Organization design is the process of developing an organization structure.
Organizational design is the process of developing or changing an organization’s structure.
It involves decisions about six key elements: work specialization, departmentalization,
chain of command, span of control, centralization/decentralization, and formalization. We
need to take a closer look at each of these structural elements.
The organization chart is a line diagram that depicts the broad outlines of an organization’s
structure. While varying in detail from one organization to another, typically organization
charts show the major positions or departments in the organization, the way positions are
grouped together, reporting relationships for lower to higher levels, official channels for
communications, and possibly the titles associated with major positions in the organization.
1. The organization chart provides a visual map of the chain of command, the
unbroken line of authority that ultimately links each individual with the top
organizational position thorough a managerial position at each successive layer in
between.
2. Nearly all organizations having just a few members have an organization chart.
Responsibility is the obligation or expectation to perform and carry out duties and achieve
goals related to a position.

Authority is the right inherent in a managerial position to tell people what to do and to
expect them to do it, right to make decisions and carry out actions to achieve organizational
goals. While part of a manager’s work may be delegated, the manager remains accountable
for results.
a. Accountability is the requirement of being able to answer for significant
deviations from duties or expected results.
b. The fact that managers remain accountable for delegated work may cause
them to resist delegation.

Delegation is assignment of part of manager’s work to others along with responsibility and
authority.
1. In addition to issues of accountability, managers may resist delegation for a
number of reasons.
a. Managers may fear if subordinates fail. b. Managers may think they lack time to train
subordinates.
c. Managers may want to hold on to their power.
d. Managers may enjoy doing the tasks subordinates could do.
e. Managers may feel threatened by subordinates.
f. Managers may not know how to delegate.
2. Subordinates may resist delegation because of fear of failure or of risk taking.
3. Failure to delegate may have serious negative consequences for a manger’s career.

Importance of Organizing
• Focus on, and facilitate the attaining of, objectives.
• Arrangement of positions and jobs within thehierarchy.
• Define responsibilities and line of authority ofall levels.
• Creating relationships that will minimize friction.
Basic elements of formal organizations
• Centralization and decentralization.
• Delegation of authority.
• Span of control (supervision).
• Division of service.
• Departmentation.
 Que. 3 What is Informal Organization?

Ans.

The informal organization is the interlocking social structure that governs how people work
together in practice. It is the aggregate of behaviors, interactions, norms, personal and
professional connections through which work gets done and relationships are built among
people who share a common organizational affiliation or cluster of affiliations. It consists
of a dynamic set of personal relationships, social networks, communities of common
interest, and emotional sources of motivation. The informal organization evolves
organically and spontaneously in response to changes in the work environment. Tended
effectively, the informal organization complements the more explicit structures, plans, and
processes of the formal organization: it can accelerate and enhance responses to
unanticipated events, foster innovation, enable people to solve problems that require
collaboration across boundaries, and create footpaths showing where the formal
organization may someday need to pave a way.

Key characteristics of the informal organization:

1. Evolving constantly
2. Dynamic and responsive
3. Requires insider knowledge to be seen
4. Treats people as individuals
5. Cohered by trust and reciprocity
6. Difficult to pin down
7. Essential for situations that change quickly or are not yet fully understood.

Functions of informal organizations:-

1. Perpetuate the cultural and social values

2. Provide social status and satisfaction.
3. Promote communication among members
4. Provide social control

Disadvantages of informal groups:- Informal organizations also possess the following

potential disadvantages and problems that require astute and careful management attention.

1. Resistance to change.
2. Role conflict.
3. Rumor
4. Conformity
Benefits of the informal organization:-Informal organizations create unique challenges and
potential problems for management, they also provide a number of benefits for the formal
organization.

1. Blend with formal system

2. Lighten management workload
3. Fill gaps in management abilities
4. Encourage improved management practice
5. Understanding and Dealing with the Environmental Crisis
 Que. 4 Explain in brief the Importance of Direction.

Ans.

Directing is:-

• Building an effective work climate

• Creating opportunity for motivation, supervising, scheduling, and disciplining.
• Directing is said to be the heart of management process.
• Planning, organizing, staffing have got no importance if direction function does not
take place.
• Directing initiates action.
• Providing guidance to workers
He that cannot obey cannot command.
~Benjamin Franklin

“Directing consists of process or technique by which instruction can be issued and

operations can be carried out as originally planned”

Therefore, Directing is the function of guiding, inspiring, overseeing and instructing

people towards accomplishment of organizational goals.

Principles
1. Communication.
2. Objective.
3. Motivation.
4. Follow up.
5. Leadership.
6. Contribution.
7. Relation.
8. Command.

IMPORTANCE
1. It Initiates Action.
2. Means of Motivation.
3. It Provides Stability.
4. Coping up with the changes.
5. Efficient Utilization of Resources.
6. Facilitates Change. (Explanation required)
 Que. 4 Explain the nature of Directing.

Ans.

Directing is
• Building an effective work climate
• Creating opportunity for motivation, supervising, scheduling, and disciplining.
• Directing is said to be the heart of management process.
• Planning, organizing, staffing have got no importance if direction function does not
take place.
• Directing initiates action.
• Providing guidance to workers
He that cannot obey cannot command.
~Benjamin Franklin

“Directing consists of process or technique by which instruction can be issued and

operations can be carried out as originally planned”

Therefore, Directing is the function of guiding, inspiring, overseeing and instructing

people towards accomplishment of organizational goals.

CHARACTERISTICS:
1. Pervasive Function - Directing is required at all levels of organization. Every
manager provides guidance and inspiration to his subordinates.
2. Continuous Activity - Direction is a continuous activity as it continuous
throughout the life of organization.
3. Human Factor - Directing function is related to subordinates and therefore it is
related to human factor. Since human factor is complex and behavior is
unpredictable, direction function becomes important.
4. Creative Activity - Direction function helps in converting plans into performance.
Without this function, people become inactive and physical resources are
meaningless.
5. Executive Function - Direction function is carried out by all managers and
executives at all levels throughout the working of an enterprise, a subordinate
receives instructions from his superior only.
6. Delegate Function - Direction is supposed to be a function dealing with human
beings. Human behavior is unpredictable by nature and conditioning the people’s
behavior towards the goals of the enterprise is what the executive does in this
function. Therefore, it is termed as having delicacy in it to tackle human behavior.
 Que. 5 What is Managerial Control Process?

Ans.

“Control is a process that measures current performance and guides it towards some
predetermined goals.” ~Massie
“It is taking steps to bring actual results and desired results closer together.”
~Philip Kotler
“It is Monitoring activities to ensure that they are being accomplished as planned
and of correcting any significant deviations.” ~ Robbins and Coulter
Regardless of the thoroughness of the planning done, a program or decision still may be
poorly or improperly implemented without a satisfactory control system in place.
Controlling is that process of regulating organizational activities so that actual performance
conforms to expected organizational goals and standards. While interrelated with all of the
other management functions, a special relationship exists between the planning function of
management and controlling. Planning, essentially, is the deciding of goals and objectives
and the means of reaching them. Controlling lets manager tell if the organization is on track
for goal achievement, and if not, why not. A well-developed plan should provide
benchmarks that can be used in the control process. Controls serve other important roles
including helping managers cope with uncertainty, detecting
irregularities, identifying opportunities, handling complex situations, and decentralizing
authority. Like planning, controlling responsibilities differ by managerial level with control
responsibilities paralleling planning responsibilities at the strategic, tactical, and
operational level. There are several major steps usually identified in the basic control
process. These are, in order, determining the areas to be controlled, establishing the
appropriate standards, measuring performance, comparing the performance against
standards, recognizing performance if standards are met or exceeded or take corrective
actions as necessary if not, and adjusting either/or standards and measures as necessary. Of
course it would be impossible to control all activity in an organization. Consequently, it is
important for the manager to decide which activities should have the control process
applied. Argues that managers need to consider controls mainly in areas in which they
depend on others for resources necessary to reach organizational goals. Four conditions
help delineate when controls should be used. These are having a high dependence on the
resource, having a high expectation that the resource flows would be unacceptable without
proper controls, that the instituting of a control process would be feasible, and that the total
control process costs would be within the acceptable range. Timing is one of the bases for
differentiating control systems. Some major control types are based on
timing. These include feed forward controls, concurrent controls, and feedback controls.
These are terms which are unfamiliar to many students and special note needs to be made
in reviewing this material. To be effective, control systems should be future-oriented,
multidimensional, cost-effective, accurate, realistic, timely monitor able, acceptable to
organization members, and flexible.
Control as a management process
A. Controlling, one of the four major functions of POLCA management, is the process of
regulating organizational activities so that actual performance conforms to expected
organizational standards and goals.
 1. Controlling is largely geared to ensuring that the behavior of individuals
in the organization contributes to reaching organizational goals.
2. Controls encourage wanted behaviors and discourage unwanted
behaviors.
B. A control system is a set of mechanisms that are designed to increase the probability
of meeting organizational standards and goals.
C. Controls can play five important roles in organizations.
1. Control systems enable managers to cope with uncertainty by monitoring
the specific activities and reacting quickly to significant changes in the
environment.
2. Controls help managers detect undesirable irregularities, such as product
defects, cost overruns, or rising personnel turnover.
3. Controls alert managers to possible opportunities by highlighting
situations in which things are going better than expected.
4. Controls enable managers to handle complex situations by enhancing
coordination within large organizations.
5. Controls can decentralize authority by enabling managers to encourage
decision making at lower levels in the organization while still remaining in
control.
D. Control responsibilities differ according to managerial level.
1. Strategic control involves monitoring critical environmental factors that
could affect the viability of strategic plans, assessing the effects of
organizational strategic actions, and ensuring that strategic plans are
implemented as intended.
a. Strategic control is typically the domain of top-level managers
who must insure core competencies are developed and maintained.
b. Long time frames are involved, although shorter time frames may
be appropriate in turbulent environments.
2. Tactical control focuses on assessing the implementation of tactical plans
at departmental levels, monitoring associated periodic results, and taking
corrective action as necessary.
a. Tactical control is primarily under the direction of middle
managers, but top-level managers may at times get involved.
b. Time frames are periodic, involving weekly or monthly reporting
cycles.
c. Tactical control involves department-level objectives programs,
and budgets.
3. Operational control involves overseeing the implementation of operating
plans,monitoring day-to-day results, and taking corrective action when
required.
a. Operational control is the responsibility of lower-level managers.
b. Control is a day-to-day process.
c. The concern is with schedules, budgets, rules, and specific outputs
of individuals.
 Que. 4 Mention the Limitation of Control.
Ans.

Limitations of Control process are as under:-

1. Difficulty in setting standards.

2. Difficulty in qualification.
3. Influence of external factors.
4. Expenses.
5. Opposition from subordinates.
6. Difficulty in pinpointing responsibility.
7. Time consuming.
8. Limits of corrective actions. (Explanation of these points in four lines each)
 Section C
Que. 1 Define Management and describe the essential Characteristics.
Ans.

Author Definition:

“Management is the accomplishment of results through and with people in formal

organised groups.” - Harold Koontz
“Management is a multi purpose organ that manages business, managers, workers and
work.” - Peter Drucker
“To manage is to forecast and to plan, to organise, command, coordinate and control.”
- Philip Kotler
“Art of getting things done through people.” - Mary Parker Follet
“Consisting of Planning, Organising, Actuating and controlling, performed to
determine and accomplish the objectives by use of people and resources.”
-George R. Terry

Explanation of Author definition (in your own words)

• Management is nothing but getting work done, by organized use of resources,

to achieve desired goals
• It is a process involving planning, organising, staffing, directing and
controlling human efforts to achieve stated objectives in an organisation

Features of Management.

• Organised activities
• Existence of objectives
• Relationship among resources
• Working with and through people
• Decision making

Importance Of Mangement

• Effective utilisation of resources

• Development of resources
• Incorporates innovation
• Motivates employees
• Expansion of business
• Reduces turnover/absenteeism
• Integrating various interest groups
• Brings stability in the society
It helps in Achieving Group Goals – It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It
directs group efforts towards achievement of pre-determined goals. By defining objective
of organization clearly there would be no wastage of time, money and effort. Management
converts disorganized resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.
Optimum Utilization of Resources – Management utilizes all the physical & human
resources productively. This leads to efficacy in management. Management provides
maximum utilization of scarce resources by selecting its best possible alternate use in
industry from out of various uses. It makes use of experts, professional and these services
leads to use of their skills, knowledge, and proper utilization and avoids wastage. If
employees and machines are producing its maximum there is no under employment of any
resources.
Reduces Costs – It gets maximum results through minimum input by proper planning and
by using minimum input & getting maximum output. Management uses physical, human
and financial resources in such a manner which results in best combination. This helps in
cost reduction.
Establishes Sound Organization – No overlapping of efforts (smooth and coordinated
functions). To establish sound organizational structure is one of the objective of
management which is in tune with objective of organization and for fulfillment of this, it
establishes effective authority & responsibility relationship i.e. who is accountable to
whom, who can give instructions to whom, who are superiors & who are subordinates.
Management fills up various positions with right persons, having right skills, training and
qualification. All jobs should be cleared to everyone.
Establishes Equilibrium – It enables the organization to survive in changing environment.
It keeps in touch with the changing environment. With the change is external environment,
the initial co-ordination of organization must be changed. So it adapts organization to
changing demand of market / changing needs of societies. It is responsible for growth and
survival of organization.
Essentials for Prosperity of Society – Efficient management leads to better economical
production which helps in turn to increase the welfare of people. Good management makes
a difficult task easier by avoiding wastage of scarce resource. It improves standard of
living. It increases the profit which is beneficial to business and society will get maximum
output at minimum cost by creating employment opportunities which generate income in
hands. Organization comes with new products and researches beneficial for society.

Describing management is no simple task, and most of the times you’ll find statements
like: “Management is what managers do”.

While that’s true, it doesn’t tell us much unfortunately. So in order to understand the
concept of management, you have to understand what managers do.

Nature or Characteristics of management:

1. Goal oriented.
2. Universal.
3. Integrated process
4. Social process
5. Activity based
6. Group activity
7. Art as well as science
8. Multi disciplinary
9. Intangible
10.Optimum co-ordination between human and material resources.
11.The combination of multiple functions
12.Management is a distinct entity.
13.Management is a profession
14.Management based on authorities
15.It is needed at all level
16.It is a social responsibilities
17.Purposeful
18.It is an executive function
19.It is a coordinating force
20.Dynamic in nature
21.Management principles are relative not absolute ---- it means that management
results are according to the situation.
22.Management is creative and innovative formulate creativity; creativity is the
process of developing new ideas.
 Que.1 Describe in brief the development of Management Thoughts.
Ans.
Earlier definition by Mary Parker Follet – Management scholar as:
“The art of getting things done through people”
Stoner
“The process of planning, organizing, leading and controlling the efforts of an organization
member and of using all other organizational resources to achieve stated organizational
goal”.
Holt
“The process of planning, organizing, leading and controlling resources in an organization.

Management is the art of getting things done through people. In a broader sense, it is the
process of Planning, Organizing, Staffing, Directing, Coordinating, Reporting & Budgeting
and the efforts of organisation members and of using all other organizational resources to
achieve stated organizational goals.

The definition of management can be broadly classified into four groups:

1. Process School: The process School defines management in terms of functions

undertaken by the manager in an integrated way to achieve organizational purposes.

According to Henri Foyol: - To manage is to forecast and plan, to organize, to

command, to coordinate and to control.

All other definitions of management related to this school are either marginal additions,
deletions, or elaborations of the functions listed out in the above definition.

2. Human Relations School: This school emphasizes the human aspect of organisation
and conceives it as a social system. It is a social system because managerial actions are
principally concerned with relations between people. In fact, management is concerned
with development of people and not the direction of things.

The essence of this school is well reflected in the definition of Lawrence Appley to whom
management is the accomplishment of results through the efforts of other people.

3. Decision School: The Decision School defines management as rule-making and rule-
enforcing body. In fact the life of a manager is a perpetual choice making activity and
whatever a manager does, he does through his decisions. Moreover, decision making power
provides a dynamic force for managers to transform the resource of business organisation
into a productive and cooperative concern.

4. System and Contingency School: According to this school, organisations like any
living organism must adapt themselves to their environments for survival and growth.
Thus, management involves designing organisations adaptable to changing markets,
technology and other critical environmental factors. The systems theory of organisations
are organic and open systems consisting of interacting and interdependent parts and having
a variety of goals. Managers are supposed to maintain balance among the conflicting
objectives, goals and activities of members of the organisation. He must achieve results
efficiently and effectively. According Contingency School there is no best way to design
organisations and manage them. Managers should design organisations, define goals and
formulate policies and strategies in accordance with the prevailing environmental
conditions.

Different schools of thought defined management differently due to three reasons:

1. Difference in perspectives of management and organisation theories,

2. Shifts in emphasis in the study of the organisation from economic and technical aspects
to conceptual and human aspects, and

3. Focus on internal and external environments of the organisation.

Scientific Management
• Frederick Winslow Taylor
- Father of Scientific Management.
- 1856 - 1915.
• 1874 he becomes an apprentice patternmaker and machinist at Enterprise
Hydraulics Works.
• 1878 he takes up an unskilled job at Midvale Steel Works where he did his first
experiments.
• In 1881 he gains a master degree in mechanical engineering. In 1890 he is
appointed to general manager of Manufacturing Investment Company (MIC).
Why Scientific Management
• It is important to understand that the circumstances during the life of Taylor were
quite different from those today.
• There had been a series of depressions.
• Production methods at the time were very inefficient.
• Also there was a need to employ many immigrants into the US, to raise the living
standards and to meet rising demands for goods of every sort.
• All of this influences Taylor when he publishes The Principles of Scientific
Management in 1911.
Usage of Scientific Management
• As a contrast to modern business or management methods.
• Basis or inspiration for many later management philosophies, including
Management by Objectives, Operations Research, CSFs and KPIs and Balanced
Scorecard, Just-in-time and Lean Manufacturing, Total Quality Management, Six
Sigma and Business Process Reengineering.

Steps in Scientific Management

1. Replace rule of thumb work methods with methods based on a scientific study of
the tasks.
 2. Select, train, teach and develop the most suitable person for each job, again
scientifically, rather than passively leaving them to train themselves.
3. Achieving cooperation rather than individualism.
4. Divide work between managers and workers. The managers apply scientific
management principles to planning and supervising the work, and the workers carry
out the tasks.
Taylor’s 4 Principles of Management
Strengths of Scientific Management
• One of the first formal divisions between workers and managers.
• Contribution to efficient production methods, leading to a major global increase of
living standards.
• Focus on the individual task and worker level. Compare: Business Process
Reengineering (process level).
• Direct reward mechanisms for workers rather than pointless end-of-year profit
sharing schemes.
• Systematic. Early proponent of quality standards.
• Emphasis on measuring. Measurement enables improvement.
Limitations of Scientific Management
• Taylorism can easily be abused to exploit human beings. Conflicts with labor
unions.
• Not useful to deal with groups or teams.
• Leaves no room for individual preferences or initiative.
• Overemphasis on measuring. No attention for soft factors.
• Mechanistic. Treating people as machines.
• Loss of skill level and autonomy at worker level. Not very useful in current
knowledge worker environments.
Administrative Management: Fayol
• Henri Fayol (1841–1925)
– First recognized that successful managers had to understand the basic
managerial functions.
– Developed a set of 14 general principles of management.
– Fayol’s managerial functions of planning, leading, organizing and
controlling are routinely used in modern organizations.
Fayol’s General Principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to the common good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
 13. Initiative
14. Esprit de corps

{Explanation of each 14 principles in your own word}

Bureaucratic Management
• Focuses on the overall organizational system.
• Bureaucratic management is based upon:
– Firm rules
– Policies and procedures
– A fixed hierarchy
– A clear division of labor
Bureaucratic Management: Weber
• Max Weber (1864–1920)
– A German sociologist and historian who envisioned a system of
management that would be based upon impersonal and rational behavior—
the approach to management now referred to as “bureaucracy.”
• Division of labor
• Hierarchy of authority
• Rules and procedures
• Impersonality
• Employee selection and promotion
Weber’s Three Types of Authority
Type Description
Traditional Subordinate obedience based upon custom or tradition (e.g., kings, queens,
chiefs).
Charismatic Subordinate obedience based upon special personal qualities associated
with certain social reformers, political leaders, religious leaders, or
organizational leaders (e.g., Martin Luther King, Gandhi).
Rational–legal Subordinate obedience based upon the position held by superiors within the
organization (e.g., police officers, executives, supervisors).
 Que.2 What is Planning? Explain steps involved in Planning.
Ans.
Planning involves defining the organization’s goals, establishing an overall strategy for
achieving these goals, and developing a comprehensive set of plans to integrate and
coordinate organizational work. Planning is in fact the advance decision making by
managers. Keeping in mind that decision making and decision taking, may it be for present
or for future is always required and is very much a managerial job. Let us first study the
nature process of decision making and its various models and types.
Decision making is part of all four managerial functions. In performing these functions,
managers are often called decision makers.
THE DECISION-MAKING PROCESS:
A decision is a choice made from two or more alternatives. The decision-making process is
defined as a set of different steps that begins with identifying a problem and decision
criteria and allocating weights to those criteria; moves to developing, analyzing, and
selecting an alternative that can resolve the problem; implements the alternative; and
concludes with evaluating the decision’s effectiveness.
Models of decision making can be either descriptive or normative.
1. Descriptive decision-making models attempt to prescribe how managers
actually do make decisions.
2. Normative decision-making models attempt to prescribe how managers should
process.
Planning is the process of determining the organization’s goals and objectives and selecting
a course of action to accomplish them within the environment inside and outside the
organization.
OR
Planning involves selecting missions and objectives and the actions to achieve them.
Reasons for Planning
• Helps enterprise succeed
• Provides direction and sense of purpose
• Helps manager cope with change
• Contributes to the performance of other managerial functions
• Precedes any other managerial function
• Optimum utilizing the resources.
Planning is a process for accomplishing purpose. It is blue print of business growth and a
road map of development. It helps in deciding objectives both in quantitative and
qualitative terms. It is setting of goals on the basis of objectives and keeping in view the
resources.
Essentials of planning
1. Clearly define the target / goal in writing.
2. Identify all the main issues which need to be addressed.
3. Review past performance.
4. Decide budgetary requirement.
5. Focus on matters of strategic importance.
6. What are requirements and how will they be met?
7. What will be the likely length of the plan and its structure?
8. Identify shortcomings in the concept and gaps.
9. Strategies for implementation.
10.Review periodically.
Importance of the Planning Process
13. Makes the objectives clear and specific.
14. Uncertainty and change.
15. Plans facilitate decision-making.
16. Provides basis of control
17. Leads to economy and efficiency
18. Facilitates integration
19. Encourages innovation and creativity.
20. Facilitates control
21. Improves motivation
22. Improves competitive strength
23. Innovation and creativity
24. Better coordination
Levels and of planning (students need to elaborate it)
ON THE BASIS OF SCOPE THERE ARE TWO LEVELS:
1. CORPORATE PLANNING COVERING THE ENTIRE ORGANIZATION
2. SUB-CORPORATE OR FUNCTIONAL PLANNING

ON THE BASIS OF SIGNIFICANCE WE MAY DIVIDE PLANNING INTO:

1. STRATEGIC PLANNING
2. TACTICAL OR OPERATIONAL PLANNING.

ON THE BASIS OF TIME WE CAN DIVIDE PLANNING INTO:

1. LONG TERM PLANNING COVERING PERIODS OF MORE THAN ONE
YEAR.
2. SHORT TERM PLANNING COVERING A PERIOD OF ONE YEAR OR LESS.
TYPES OF PLANS:
PLANS ARE CATEGORIZED INTO TWO GROUPS:
1. SINGLE USE PLANS
2. STANDING PLANS
3. TACTICAL PLANS
4. STRATEGIC PLANS
5. CONTIGENCY PLANS
Organizational Mission
• The Mission states the organization’s values, aspirations, and reason for existence.
• The Mission Statement is the basis for all following goals and plans.
• Without a clear mission, goals and plans may be developed haphazardly causing the
organization to fail.
Goals: specify future ends. Desired future state.
• Single-use plans are developed to achieve objectives that are not likely to be
repeated in the future. Single-use plans include programs, budgets and projects.
 • Standing plans are used to provide guidance for tasks performed repeatedly within
the organization. The primary standing plans are organizational policies, rules, and
procedures
• Standing Plans
• POLICIES
• PROCEDURES
• REGULATIONS
• PROGRAMS
• PROJECTS
Other Types Of Plans
• Long term & Short term
• Formal & Informal Plans
• Proactive & Reactive Plans
• Strategic & Operational Plans
• Planning may be seen as the identification and formulation of the objectives of a
business (Goal Setting)
• Determining Planning Premises
• Analyzing the data (Identifying Alternatives)
• Evaluation & Selection
• Implementation & Review

The Planning Process

GOAL SETTING
Identification and formulation of
objectives

Reactive DEVELOPING PLANS

Planning Choices between alternative plans
Revision
of goals
and
plans
IMPLEMENTATION
Execution of the plan

Management By: SHADAB AHMED www.altius.ac.in

Explanation of the process.

 Que.2 Describe types of Planning.
Ans.
The various types of plans
ON THE BASIS OF SCOPE THERE ARE TWO LEVELS:
3. CORPORATE PLANNING COVERING THE ENTIRE ORGANIZATION
4. SUB-CORPORATE OR FUNCTIONAL PLANNING

ON THE BASIS OF SIGNIFICANCE WE MAY DIVIDE PLANNING INTO:

3. STRATEGIC PLANNING
4. TACTICAL OR OPERATIONAL PLANNING.

ON THE BASIS OF TIME WE CAN DIVIDE PLANNING INTO:

3. LONG TERM PLANNING COVERING PERIODS OF MORE THAN ONE
YEAR.
4. SHORT TERM PLANNING COVERING A PERIOD OF ONE YEAR OR LESS.
TYPES OF PLANS:
PLANS ARE CATEGORIZED INTO TWO GROUPS:
6. SINGLE USE PLANS
7. STANDING PLANS
8. TACTICAL PLANS
9. STRATEGIC PLANS
10. CONTIGENCY PLANS
Organizational Mission
• The Mission states the organization’s values, aspirations, and reason for existence.
• The Mission Statement is the basis for all following goals and plans.
• Without a clear mission, goals and plans may be developed haphazardly causing the
organization to fail.
Goals: specify future ends. Desired future state.
• Single-use plans are developed to achieve objectives that are not likely to be
repeated in the future. Single-use plans include programs, budgets and projects.

• Standing plans are used to provide guidance for tasks performed repeatedly within
the organization. The primary standing plans are organizational policies, rules, and
procedures
• Standing Plans
• POLICIES
• PROCEDURES
• REGULATIONS
• PROGRAMS
• PROJECTS
Other Types Of Plans
• Long term & Short term
• Formal & Informal Plans
• Proactive & Reactive Plans
• Strategic & Operational Plans
• Planning may be seen as the identification and formulation of the objectives of a
business (Goal Setting)
• Determining Planning Premises
• Analyzing the data (Identifying Alternatives)
• Evaluation & Selection
• Implementation & Review
 Que.3 Explain the Importance and Nature of Organization.
Ans.
Organizing: Process of determining the activities to be performed, arranging these
activities to administrative units, as well as assigning managerial authority and
responsibilities to people employed in the organization. Organizations are experimenting
with different approaches to organizational structure and design. Organizational structure
can play an important role in an organization’s success.
The process of ORGANIZING—the second management functions—is how an
organization’s structure is created.
The nature of organization structure Managers are seeking structural designs that will
best support and allow employees to effectively and efficiently do their work. Organizing is
the process of creating an organization’s structure. Organization structure is the formal
pattern of interactions and coordination designed by management to link the tasks of
individuals and groups in achieving organizational goals. An organizational structure is
the formal framework by which job tasks are divided, grouped, and coordinated.
1. This formal pattern designed by management is to be distinguished from the
informal pattern of interactions that simply emerges within an organization.
2. Organization structure consists primarily of four elements:
a. Job design
b. Departmentalization
c. Vertical coordination
d. Horizontal coordination
3. Organization design is the process of developing an organization structure.
Organizational design is the process of developing or changing an organization’s structure.
It involves decisions about six key elements: work specialization, departmentalization,
chain of command, span of control,centralization/decentralization, and formalization. We
need to take a closer look at each of these structural elements.
The organization chart is a line diagram that depicts the broad outlines of an organization’s
structure. While varying in detail from one organization to another, typically organization
charts show the major positions or departments in the organization, the way positions are
grouped together, reporting relationships for lower to higher levels, official channels for
communications, and possibly the titles associated with major positions in the organization.
1. The organization chart provides a visual map of the chain of command, the
unbroken line of authority that ultimately links each individual with the top
organizational position thorough a managerial position at each successive layer in
between.
2. Nearly all organizations having just a few members have an organization chart.
Responsibility is the obligation or expectation to perform and carry out duties and achieve
goals related to a position.

Authority is the right inherent in a managerial position to tell people what to do and to
expect them to do it, right to make decisions and carry out actions to achieve organizational
goals. While part of a manager’s work may be delegated, the manager remains accountable
for results.
a. Accountability is the requirement of being able to answer for significant
deviations from duties or expected results.
b. The fact that managers remain accountable for delegated work may cause
them to resist delegation.

Delegation is assignment of part of manager’s work to others along with responsibility and
authority.
1. In addition to issues of accountability, managers may resist delegation for a
number of reasons.
a. Managers may fear if subordinates fail. b. Managers may think they lack time to train
subordinates.
c. Managers may want to hold on to their power.
d. Managers may enjoy doing the tasks subordinates could do.
e. Managers may feel threatened by subordinates.
f. Managers may not know how to delegate.
2. Subordinates may resist delegation because of fear of failure or of risk taking.
3. Failure to delegate may have serious negative consequences for a manger’s career.

Importance of Organizing
• Focus on, and facilitate the attaining of, objectives.
• Arrangement of positions and jobs within thehierarchy.
• Define responsibilities and line of authority ofall levels.
• Creating relationships that will minimize friction.
 Que.3 Explain the steps involve in the Process of Organization.
Ans.
Organizing: Process of determining the activities to be performed, arranging these
activities to administrative units, as well as assigning managerial authority and
responsibilities to people employed in the organization. Organizations are experimenting
with different approaches to organizational structure and design. Organizational structure
can play an important role in an organization’s success.
The process of ORGANIZING—the second management functions—is how an
organization’s structure is created.
Organization design is the process of developing an organization structure. Organizational
design is the process of developing or changing an organization’s structure. It involves
decisions about six key elements: work specialization, departmentalization, chain of
command, span of control, centralization/decentralization, and formalization. We need to
take a closer look at each of these structural elements.
The organization chart is a line diagram that depicts the broad outlines of an organization’s
structure. While varying in detail from one organization to another, typically organization
charts show the major positions or departments in the organization, the way positions are
grouped together, reporting relationships for lower to higher levels, official channels for
communications, and possibly the titles associated with major positions in the organization.
1. The organization chart provides a visual map of the chain of command, the
unbroken line of authority that ultimately links each individual with the top
organizational position thorough a managerial position at each successive layer in
between.
2. Nearly all organizations having just a few members have an organization chart.
Responsibility is the obligation or expectation to perform and carry out duties and achieve
goals related to a position.

Authority is the right inherent in a managerial position to tell people what to do and to
expect them to do it, right to make decisions and carry out actions to achieve organizational
goals. While part of a manager’s work may be delegated, the manager remains accountable
for results.
a. Accountability is the requirement of being able to answer for significant
deviations from duties or expected results.
b. The fact that managers remain accountable for delegated work may cause
them to resist delegation.

Delegation is assignment of part of manager’s work to others along with responsibility and
authority.
1. In addition to issues of accountability, managers may resist delegation for a
number of reasons.
a. Managers may fear if subordinates fail. b. Managers may think they lack time to train
subordinates.
c. Managers may want to hold on to their power.
d. Managers may enjoy doing the tasks subordinates could do.
e. Managers may feel threatened by subordinates.
f. Managers may not know how to delegate.
2. Subordinates may resist delegation because of fear of failure or of risk taking.
3. Failure to delegate may have serious negative consequences for a manger’s career.

The most important aim of organization is to establish a working relationship between

various factors with clarity. It breaks down the overall task into individual jobs and assigns
them to departments and sections. This involves the following steps.

1 Division of work
The first step of organization is to divide the work into specific activities. Dividing the
work is essential to because one individual cannot perform the entire work. It also
facilitates specialization.

2. Grouping of jobs and departmentation

The second function of organisation is to group identical jobs under formal departments.
This grouping process will enable coordination and unity of efforts. The deportments are
linked together on the basis of their interdependence. There are different ways of grouping
the departments. Departments can be organized on the basis of function such as finance,
production, marketing etc. There can be departmentation on the basis of products such as
textiles division, cosmetics department etc.

3. Establishing authority relationships

The third function of organization is the establishment of authority relationship among job
holders or job positions. The authority relationship specifies who is accountable to whom
in the organization. The authority structure creates superior-subordinate relationships as
well as channels of communication. The decision making authority varies from position to
position. The owner of a business has the ultimate authority to make decisions which is
delegated to subordinates. Thus the scope of authority reduces at lower levels of
management.

The levels of authority are called organizational hierarchy. The chain of authority runs
through these levels. Organizational hierarchy implies a definite ranking order.
 Que. 4 Briefly discuss the different techniques of Directing?
Ans.
Directing is
• Building an effective work climate
• Creating opportunity for motivation, supervising, scheduling, and disciplining.
• Directing is said to be the heart of management process.
• Planning, organizing, staffing have got no importance if direction function does not
take place.
• Directing initiates action.
• Providing guidance to workers
“He that cannot obey cannot command.” ~Benjamin Franklin

“Directing consists of process or technique by which instruction can be issued and

operations can be carried out as originally planned”

Therefore, Directing is the function of guiding, inspiring, overseeing and instructing

people towards accomplishment of organizational goals.

TECHNIQUES OF DIRECTING
1. Delegation
2. Supervision
3. Orders and instructions
4. Motivation
5. Leadership
6. Communication
1. Delegation:- It is assignment of part of manager’s work to others along with
responsibility and authority.
1. In addition to issues of accountability, managers may resist delegation for a
number of reasons.
a. Managers may fear if subordinates fail. b. Managers may think they lack time to train
subordinates.
c. Managers may want to hold on to their power.
d. Managers may enjoy doing the tasks subordinates could do.
e. Managers may feel threatened by subordinates.
f. Managers may not know how to delegate.
2. Subordinates may resist delegation because of fear of failure or of risk taking.
3. Failure to delegate may have serious negative consequences for a manger’s career.

2. SUPERVISION:- Supervision is Overseeing, Invigilation, Superintend,

Purpose of Supervision:
- Enhance professional functioning
- Foster professional development
- Developing profession's values and ethics
- Impart necessary skill

RESPONSIBILITIES OF A SUPERVISOR
1. To schedule work so as to ensure an even and steady flow.
2. To assign work to different individuals
3. To provide proper working conditions
4. To issue orders and instructions
5. To prescribe work methods and procedures
6. To guide, train and inspire workers in the efficient performance of work.

QUALITIES OF A GOOD SUPERVISOR

1. Knowledge of Work
2. Knowledge of the Organization
3. Communication Skill
4. Human Relation of Skill
5. Decisiveness

FUNDAMENTALS OF EFFECTIVE SUPERVISION

1. Planning the work
2. Time management and delegation
3. Organising the resources
4. Staffing the Units
5. Trianing and development of Employees
6. Disciplining the Workers
7. Appraising the performance of Employees
8. Controlling the results
9. Labour relations and Grievance procedures

3. Orders and instructions:- Many people believe that to be a good manager you have to
give orders to the people below them, they are wrong. They should not have to give orders.
When we give an order, we do not allow the other person any latitude to think about what
to do or how to do it. All they (the subordinates) can do to satisfy our order is exactly what
you ordered. There are two reasons why this is bad.
A. It does not allow the person to figure out the best way to do the task.
B. It does not let them learn.

Sometimes it is appropriate to give orders. In the military, there are times when a leader has
to give orders. When you tell a squad to "charge that hill" you don't want them to think
about it. You just want it done. However, even in the military, leaders don't give orders
unless they have to. Instead of giving orders and telling someone what to do, good
managers give instructions. Instead of telling them what to do, you tell them what you want
done.
Give instructions instead: - When we tell an employee what we want to be done, instead
of giving an order, we give them the freedom to come up with their best way of getting that
task done. It may not always be the best way, and we may have to do some monitoring and
guiding, but there is also the chance that the subordinates will come up with something
better than what we planned.When an employee is given an instruction instead of an order,
they have to think. They can't just do what they were told and say they were following
orders. They have to think of ways to get the job done. They have to decide which the best
way is. They have to invest a little of themselves in the solution. Also, when a manager
give an employee an instruction, instead of an order, and let them decide for themselves the
best way to accomplish the task, he is more likely to get their buy-in and support. If they
have made the decision about the best way to accomplish the task they are more likely to
believe it is correct and valuable. They will defend it against others who question it.

4. Motivation:- It comprises of motivational programmes, i.e., incentive plans to be framed

for further participation and employment of employees in a concern. Therefore, all types of
incentive plans becomes an integral part of staffing function.

5. Leadership:- The recognition of the important role that leadership plays in

organizational performance is widely acknowledged by managers everywhere. Leadership
is what makes things happen in organizations. There are distinctions between managers and
leaders. Managers are appointed and have legitimate power within the organization.
Leaders are those persons who are able to influence others and who possess managerial
authority. Leadership, then, is the ability to influence a group toward the achievement of
goals. How leaders influence others. Leadership, the foundation of the management
function of leading, is the process of influencing others toward the achievement of
organizational goals. Power is the capacity to affect the behavior of others.

6. Communication:- (short note explaining importance of communication)

 Que. 4 Explain the meaning of directing and describe its function.

Directing is
• Building an effective work climate
• Creating opportunity for motivation, supervising, scheduling, and disciplining.
• Directing is said to be the heart of management process.
• Planning, organizing, staffing have got no importance if direction function does not
take place.
• Directing initiates action.
• Providing guidance to workers
He that cannot obey cannot command.
~Benjamin Franklin

“Directing consists of process or technique by which instruction can be issued and

operations can be carried out as originally planned”

Therefore, Directing is the function of guiding, inspiring, overseeing and instructing

people towards accomplishment of organizational goals.

CHARACTERISTICS:
1. Pervasive Function - Directing is required at all levels of organization. Every
manager provides guidance and inspiration to his subordinates.
2. Continuous Activity - Direction is a continuous activity as it continuous
throughout the life of organization.
3. Human Factor - Directing function is related to subordinates and therefore it is
related to human factor. Since human factor is complex and behavior is
unpredictable, direction function becomes important.
4. Creative Activity - Direction function helps in converting plans into performance.
Without this function, people become inactive and physical resources are
meaningless.
5. Executive Function - Direction function is carried out by all managers and
executives at all levels throughout the working of an enterprise, a subordinate
receives instructions from his superior only.
6. Delegate Function - Direction is supposed to be a function dealing with human
beings. Human behavior is unpredictable by nature and conditioning the people’s
behavior towards the goals of the enterprise is what the executive does in this
function. Therefore, it is termed as having delicacy in it to tackle human behavior.

IMPORTANCE
1. It Initiates Action.
2. Means of Motivation.
3. It Provides Stability.
4. Coping up with the changes.
5. Efficient Utilization of Resources.
6. Facilitates Change.
Principles
1. Communication.
2. Objective.
3. Motivation.
4. Follow up.
5. Leadership.
6. Contribution.
7. Relation.
8. Command.

Directing or Direction function is said to be the heart of management of process and

therefore, is the central point around which accomplishment of goals take place. A few
philosophers call Direction as “Life spark of an enterprise”. It is also called as on actuating
function of management because it is through direction that the operation of an enterprise
actually starts. Being the central character of enterprise, it provides many benefits to a
concern which are as follows:-

1. It Initiates Actions - Directions is the function which is the starting point of the
work performance of subordinates. It is from this function the action takes place,
subordinates understand their jobs and do according to the instructions laid.
Whatever are plans laid, can be implemented only once the actual work starts. It is
there that direction becomes beneficial.
2. It Ingrates Efforts - Through direction, the superiors are able to guide, inspire and
instruct the subordinates to work. For this, efforts of every individual towards
accomplishment of goals are required. It is through direction the efforts of every
department can be related and integrated with others. This can be done through
persuasive leadership and effective communication. Integration of efforts bring
effectiveness and stability in a concern.
3. Means of Motivation - Direction function helps in achievement of goals. A manager
makes use of the element of motivation here to improve the performances of
subordinates. This can be done by providing incentives or compensation, whether
monetary or non - monetary, which serves as a “Morale booster” to the subordinates
Motivation is also helpful for the subordinates to give the best of their abilities
which ultimately helps in growth.

It Provides Stability - Stability and balance in concern becomes very important for long
term sun survival in the market. This can be brought upon by the managers with the help of
four tools or elements of direction function - judicious blend of persuasive leadership,
effective communication, strict supervision and efficient motivation. Stability is very
important since that is an index of growth of an enterprise. Therefore a manager can use of
all the four traits in him so that performance standards can be maintained.
Coping up with the changes - It is a human behaviour that human beings show resistance to
change. Adaptability with changing environment helps in sustaining planned growth and
becoming a market leader. It is directing function which is of use to meet with changes in
environment, both internal as external. Effective communication helps in coping up with
the changes. It is the role of manager here to communicate the nature and contents of
changes very clearly to the subordinates. This helps in clarifications, easy adaptions and
smooth running of an enterprise. For example, if a concern shifts from handlooms to
powerlooms, an important change in technique of production takes place. The resulting
factors are less of manpower and more of machinery. This can be resisted by the
subordinates. The manager here can explain that the change was in the benefit of the
subordinates. Through more mechanization, production increases and thereby the profits.
Indirectly, the subordinates are benefited out of that in form of higher remuneration.
Efficient Utilization of Resources - Direction finance helps in clarifying the role of every
subordinate towards his work. The resources can be utilized properly only when less of
wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place.
Through direction, the role of subordinates become clear as manager makes use of his
supervisory, the guidance, the instructions and motivation skill to inspire the subordinates.
This helps in maximum possible utilization of resources of men, machine, materials and
money which helps in reducing costs and increasing profits.

From the above discussion, one can justify that direction, surely, is the heart of
management process. Heart plays an important role in a human body as it serves the
function pumping blood to all parts of body which makes the parts function. In the similar
manner, direction helps the subordinates to perform in best of their abilities and that too in
a healthy environment. The manager makes use of the four elements of direction here so
that work can be accomplished in a proper and right manner. According to Earnest Dale,
“Directing is what has to be done and in what manner through dictating the procedures and
policies for accomplishing performance standards”. Therefore, it is rightly said that
direction is essence of management process.
 Que. 5 Explain the techniques of Control.
Ans.
Controlling consists of verifying whether everything occurs in confirmities with the plans
adopted, instructions issued and principles established. Controlling ensures that there is
effective and efficient utilization of organizational resources so as to achieve the planned
goals. Controlling measures the deviation of actual performance from the standard
performance, discovers the causes of such deviations and helps in taking corrective actions
According to Brech, “Controlling is a systematic exercise which is called as a process of
checking actual performance against the standards or plans with a view to ensure adequate
progress and also recording such experience as is gained as a contribution to possible future
needs.”
According to Donnell, “Just as a navigator continually takes reading to ensure whether he
is relative to a planned action, so should a business manager continually take reading to
assure himself that his enterprise is on right course.
Controlling has got two basic purposes
It facilitates co-ordination.
It helps in planning.
Techniques of Control:-
Traditional.
Personal observation.
Setting Examples.
Plans and Policies.
Charts and Manuals.
Disciplinary system.
Written Instructions.
Statistical data.
Specific report and record.
Financial Statements.
Operational Audits.
Break even analysis.
Budget.
Modern.
ROI.
Management Audit.
MIS.
Zero-base budgeting
Or
To ensure complete and consistent information, organizations often use standardized
documents such as financial, status, and project reports. Each area within an organization,
however, uses its own specific control techniques, described in the following sections.
Financial controls
After the organization has strategies in place to reach its goals, funds are set aside for the
necessary resources and labor. As money is spent, statements are updated to reflect how
much was spent, how it was spent, and what it obtained. Managers use these financial
statements, such as an income statement or balance sheet, to monitor the progress of
programs and plans. Financial statements provide management with information to
monitor financial resources and activities. The income statement shows the results of the
organization's operations over a period of time, such as revenues, expenses, and profit or
loss. The balance sheet shows what the organization is worth (assets) at a single point in
time, and the extent to which those assets were financed through debt (liabilities) or
owner's investment (equity).
Financial audits, or formal investigations, are regularly conducted to ensure that financial
management practices follow generally accepted procedures, policies, laws, and ethical
guidelines. Audits may be conducted internally or externally. Financial ratio
analysis examines the relationship between specific figures on the financial statements and
helps explain the significance of those figures:
Liquidity ratios measure an organization's ability to generate cash.
Profitability ratios measure an organization's ability to generate profits.
Debt ratios measure an organization's ability to pay its debts.
Activity ratios measure an organization's efficiency in operations and use of assets.
In addition, financial responsibility centers require managers to account for a unit's
progress toward financial goals within the scope of their influences. A manager's goals and
responsibilities may focus on unit profits, costs, revenues, or investments.
Budget controls
A budget depicts how much an organization expects to spend (expenses) and earn
(revenues) over a time period. Amounts are categorized according to the type of business
activity or account, such as telephone costs or sales of catalogs. Budgets not only help
managers plan their finances, but also help them keep track of their overall spending.
A budget, in reality, is both a planning tool and a control mechanism. Budget development
processes vary among organizations according to who does the budgeting and how the
financial resources are allocated. Some budget development methods are as follows:
Top-down budgeting. Managers prepare the budget and send it to subordinates.
Bottom-up budgeting. Figures come from the lower levels and are adjusted and
coordinated as they move up the hierarchy.
Zero-based budgeting. Managers develop each new budget by justifying the projected
allocation against its contribution to departmental or organizational goals.
Flexible budgeting. Any budget exercise can incorporate flexible budgets, which set “meet
or beat” standards that can be compared to expenditures.
Marketing controls
Marketing controls help monitor progress toward goals for customer satisfaction with
products and services, prices, and delivery. The following are examples of controls used to
evaluate an organization's marketing functions:
Market research gathers data to assess customer needs—information critical to an
organization's success. Ongoing market research reflects how well an organization is
meeting customers' expectations and helps anticipate customer needs. It also helps identify
competitors.
Test marketing is small-scale product marketing to assess customer acceptance. Using
surveys and focus groups, test marketing goes beyond identifying general requirements and
looks at what (or who) actually influences buying decisions.
Marketing statistics measure performance by compiling data and analyzing results. In
most cases, competency with a computer spreadsheet program is all a manager needs.
Managers look at marketing ratios, which measure profitability, activity, and market
shares, as well as sales quotas, which measure progress toward sales goals and assist with
inventory controls.
Unfortunately, scheduling a regular evaluation of an organization's marketing program is
easier to recommend than to execute. Usually, only a crisis, such as increased competition
or a sales drop, forces a company to take a closer look at its marketing program. However,
more regular evaluations help minimize the number of marketing problems.
Human resource controls
Human resource controls help managers regulate the quality of newly hired personnel, as
well as monitor current employees' developments and daily performances.
On a daily basis, managers can go a long way in helping to control workers' behaviors in
organizations. They can help direct workers' performances toward goals by making sure
that goals are clearly set and understood. Managers can also institute policies and
procedures to help guide workers' actions. Finally, they can consider past experiences when
developing future strategies, objectives, policies, and procedures.
Common control types include performance appraisals, disciplinary programs,
observations, and training and development assessments. Because the quality of a firm's
personnel, to a large degree, determines the firm's overall effectiveness, controlling this
area is very crucial.
Computers and information controls
Almost all organizations have confidential and sensitive information that they don't want to
become general knowledge. Controlling access to computer databases is the key to this
area.
Increasingly, computers are being used to collect and store information for control
purposes. Many organizations privately monitor each employee's computer usage to
measure employee performance, among other things. Some people question the
appropriateness of computer monitoring. Managers must carefully weigh the benefits
against the costs—both human and financial—before investing in and implementing
computerized control techniques.
Although computers and information systems provide enormous benefits, such as improved
productivity and information management, organizations should remember the following
limitations of the use of information technology:
Performance limitations. Although management information systems have the potential
to increase overall performance, replacing long-time organizational employees with
information systems technology may result in the loss of expert knowledge that these
individuals hold. Additionally, computerized information systems are expensive and
difficult to develop. After the system has been purchased, coordinating it—possibly with
existing equipment—may be more difficult than expected. Consequently, a company may
cut corners or install the system carelessly to the detriment of the system's performance and
utility. And like other sophisticated electronic equipment, information systems do not work
all the time, resulting in costly downtime.
Behavioral limitations. Information technology allows managers to access more
information than ever before. But too much information can overwhelm employees, cause
stress, and even slow decision making. Thus, managing the quality and amount of
information available to avoid information overload is important.
Health risks. Potentially serious health-related issues associated with the use of computers
and other information technology have been raised in recent years. An example is carpal
tunnel syndrome, a painful disorder in the hands and wrists caused by repetitive
movements (such as those made on a keyboard).
Regardless of the control processes used, an effective system determines whether
employees and various parts of an organization are on target in achieving organizational
objectives.
 Que. 5 Describe the essential elements of establishing an adequate and effective
control system.
Ans.
According to Henri Fayol,
Control of an undertaking consists of seeing that everything is being carried out in
accordance with the plan which has been adopted, the orders which have been given, and
the principles which have been laid down. Its object is to point out mistakes in order that
they may be rectified and prevented from recurring.
According to EFL Breach,
Control is checking current performance against pre-determined standards contained in
the plans, with a view to ensure adequate progress and satisfactory performance.
According to Harold Koontz,
Controlling is the measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are accomplished.
According to Stafford Beer,
Management is the profession of control.

In 1916, Henri Fayol formulated one of the first definitions of control as it pertains to
management:

Control consists of verifying whether everything occurs in conformity with the plan
adopted, the instructions issued, and principles established. It] object to point out
weaknesses and errors in order to rectify [them] and prevent recurrence.
Robert J. Mockler presented a more comprehensive definition of managerial control:
Management control can be defined as a systematic effort by business management to
compare performance to predetermined standards, plans, or objectives in order to
determine whether performance is in line with these standards and presumably in order to
take any remedial action required to see that human and other corporate resources are
being used in the most effective and efficient way possible in achieving corporate
objectives.
Also control can be defined as "that function of the system that adjusts operations as
needed to achieve the plan, or to maintain variations from system objectives within
allowable limits". The control subsystem functions in close harmony with the operating
system. The degree to which they interact depends on the nature of the operating system
and its objectives. Stability concerns a system's ability to maintain a pattern of output
without wide fluctuations. Rapidity of response pertains to the speed with which a system
can correct variations and return to expected output. A political election can illustrate the
concept of control and the importance of feedback. Each party organizes a campaign to get
its candidate selected and outlines a plan to inform the public about both the candidate's
credentials and the party's platform. As the election nears, opinion polls furnish feedback
about the effectiveness of the campaign and about each candidate's chances to win.
Depending on the nature of this feedback, certain adjustments in strategy and/or tactics can
be made in an attempt to achieve the desired result.From these definitions it can be stated
that there is close link between planning and controlling. Planning is a process by which an
organisation's objectives and the methods to achieve the objectives are established, and
controlling is a process which measures and directs the actual performance against the
planned objectives of the organisation. Thus, planning and control are often referred to
as siamese twinsof management. controlling is the managerial function of management and
correction of performance in order to make sure that enterpriseobjectives and the plans
devised to attain them being accomplished.

The essential elements of any control process are

• Establishment of Standards
• Measurement
• Comparing performance with the standards
• Taking corrective actions
1. Establish standards to measure performance. Within an organization's overall
strategic plan, managers define goals for organizational departments in specific,
operational terms that include standards of performance to compare with
organizational activities.
2. Measure actual performance. Most organizations prepare formal reports of
performance measurements that managers review regularly. These measurements
should be related to the standards set in the first step of the control process. For
example, if sales growth is a target, the organization should have a means of
gathering and reporting sales data.
3. Compare performance with the standards. This step compares actual activities to
performance standards. When managers read computer reports or walk through
their plants, they identify whether actual performance meets, exceeds, or falls short
of standards. Typically, performance reports simplify such comparison by placing
the performance standards for the reporting period alongside the actual performance
for the same period and by computing the variance—that is, the difference between
each actual amount and the associated standard.
4. Take corrective actions. When performance deviates from standards, managers
must determine what changes, if any, are necessary and how to apply them. In the
productivity and quality-centered environment, workers and managers are often
empowered to evaluate their own work. After the evaluator determines the cause or
causes of deviation, he or she can take the fourth step—corrective action. The most
effective course may be prescribed by policies or may be best left up to employees'
judgment and initiative.