BUSINESS ORGANIZATION AND MANAGEMENT - B.Com I SEM- UNIT-3

INTRODUCTION TO FUNCTIONS OF MANAGEMENT:
Management - Meaning - Characteristics - Functions of Management - Levels of Management – Skills of Management- Scientific Management - Meaning - Definition - Objectives - Criticism – Fayol‘s 14 Principles of Management .

1. BUSINESS ORGANIZATION AND MANAGEMENT PRESENTED BY K.BALASRI PRASAD B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)

2. UNIT-3 INTRODUCTION TO FUNCTIONS OF MANAGEMENT: Management - Meaning - Characteristics - Functions of Management - Levels of Management – Skills of Management- Scientific Management - Meaning - Definition - Objectives - Criticism – Fayol‘s 14 Principles of Management .

3. Management Management is co-ordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated objectives.

4. Characteristics of Management Universal phenomenon It is an organized activity It is a Group activity Management is a systematic process It is a social process It is about “Getting things done through people”

5. 7. Management is an Integrated process 8. Management is Intangible 9. Goal- Oriented 10. Inter-Disciplinary Approach 11. Dynamic 12. Management is about system Authority 13. Good Leadership 14. Management is an Economic activity 15. One of the factors of production 16. Management is a profession

6. Functions of Management There are five types of functions in management. They are, Planning -Defines the goal & establishing strategy. Organizing -includes determining what task has to be done, who is to do them. Staffing -Includes recruitment of people and training them towards the project. Directing -Includes the motivating the employees and leading the activities. Controlling -It is the process of monitoring the performance.

7. Managerial Skills There are three types of skills required by a manager. They are: Conceptual Skills -These skills are required by the employee who are in top level management. Human Relations Skills - These skills are required by the employee who are in middle level Management. Technical skills -These skills are required by the employee in the supervisory level.

8. Different Managerial Levels Top Management Middle Management Supervisory Level Human Relations Skills Conceptual Skills Technical Skills

9. Order of Management Operatives (or) Executive First-Line Managers Middle Managers Top Management

10. Principles of Management- Henry Fayol Division of work Authority & responsibility Discipline Unity of command Unity of direction Subordination of individual to general interest Centralization Scalar chain

11. Remuneration Order Equity Stability of tenure Initiative Esprit de corps

12. FAYOL’s PRINCIPLE OF MANAGEMENT

13. Scientific Management The scientific management theory focused on improving the efficiency of each individual in the organization. The major emphasis is on increasing the production through the use of intensive technology, and the human beings are just considered as adjuncts to machines in the performance of routine tasks .

14. Objectives of Scientific Management 1. To achieve higher production by the use of standardized tools, equipments and methods. 2. Betterment in the quality of the products by research, quality control. 3. Decrease in the cost of production by systematic planning, regulation and cost control techniques. 4. Avoidance of wastage in the use of resources, time and method of production.

15. 5. Placement of the right person on the right job through scientific selection and training. 6. Setting-up a sound system of wage payment so as to attain maximum efficiency. 7. Ensuring a regular supply of goods to the consumers at reasonable prices.

16. Criticism of Scientific Management Workers Viewpoint Unemployment  Exploitation Monotony  Weakening of Trade Union Employer’s Viewpoint Expensive Time Consuming

17. LEVELS OF MANAGEMENT

18. The term “ Levels of Management ’ refers to a line of separation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position.

19. The levels of management can be classified in three broad categories: - Top level / Administrative level. Middle level management. Low level / Supervisory.

20. Consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and manages goals and policies for an enterprise. They devotes more time on planning and coordinating functions. Top Level of Management

21. Top management lays down the strategic objectives and broad policies of the enterprise. Issues necessary instructions for preparation of department budgets, procedures, schedules etc. Controls & coordinates the activities of all the departments. Provides guidance and direction. The top management is also responsible towards the shareholders and for the performance of the enterprise. Role of Top Mgmt

22. The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Middle Level of Management

23. They execute the plans of the organization in accordance with the policies and directives of the top management. They make plans for the sub-units of the organization. They participate in employment & training of lower level management. They interpret and explain policies from top level management to lower level and sends important reports and other important data to top level management. They evaluate performance of junior managers. Role of Middle level Mgmt

24. Lower level is also known as supervisory / operative level of management. It consists of supervisors, section officers, superintendent etc. According to R.C. Davis , “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. Lower Level of Management

25. Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They communicate worker’s problems, suggestions, and recommendatory appeals etc to the higher level. They help to solve the grievances of the workers. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise and motivate workers. Role of Lower level Mgmt

26. FUNCTIONS OF MANAGEMENT

27. FUNCTIONS OF MANAGEMENT

28. PLANNING According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. Planning is necessary to ensure proper utilization of available resources.

29. ORGANIZING According to Henry Fayol , “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel”. Organizing as a process involves : Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority & responsibility relationships.

30. STAFFING According to Koontz & O'Donnell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves : Manpower Planning Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.

31. DIRECTING It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. Direction has following elements : Supervision Motivation Leadership Communication

32. CONTROLLING The purpose of controlling is to ensure that everything occurs in conformities with the standards . Therefore controlling has following steps : Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.