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1. Functions of management Planning Organizing Staffing Directing Controlling Decision making

2. STAFFING Process of selecting, training, promoting and retire the work force. Right people, right place and at right time. Functions of staffing Manpower planning Recruitment, selection and training. Placement of manpower Promotion, transfer and appraisal Determination of employee remuneration.

3. Directing Process by which the plans a re guided and performed into operations. Motivating, guiding, and supervising

4. Controlling Match actual performance with the plans. Controlling process set standards to measure the performance and take corrective action. Quality control Cost control Inventory control Production control Personnel control

5. Decision making Process by which a course of action is chosen for achieving desired results. Good decision making ability is the key to successful management.

6. TAYLOR’S SCIENTIFIC MANAGEMENT Application of scientific methods to management practice. Use scientific methods in decision making rather than thumb rules. Considered him as father of scientific management. Instead of having each worker to do the jobs in his own way , taylor sort out the best way to the work. Scientific study and analysis of work. Scientific selection and training of employees. Standardization of raw materials ,tools and working conditions. Reasonable remuneration to employees.

7. Principles of scientific management science, not rule of thumb Harmony, not discord. Co-operation, not individualism Development of every person to his great efficiency.

8. Science, not rule of thumb Each job performed in the organization should be based on scientific enquiry. Rule of thumb decisions are taken on basis of practical knowledge. Method study Time study Motion study Fatigue study

9. 2. harmony, Not discord There should be a complete harmony between management and workers. Both should realize that each one is important. Management should share the gains of the company with workers and at the same time workers must contribute their level best for the organization.

10. 3. Co –operation , not individualism There should be a complete co operation between employees and managements instead of individualism.

11. 4. Development of every person to his great efficiency . Workers efficiency depends upon proper selection, training and assigning duties according to their skills. Greatest efficiency improves both company and workerfs .

12. Contributions of F W taylor

13. Henry fayol’s principles of management Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to general interest. Remuneration of personnel Centralization Scalar chain Order Equity Stability of workers Initiative Espirite de corps

14. Division of work All work must be sub divided and allocated to a number of persons. Leads to specialization and increase efficiency of individuals. Subdivision makes each task simpler and results greater efficiency.

15. 2. Authority and responsibility These are two key aspects of management. Authority refers to the right of a superior to give orders to subordinates. Responsibility includes obligation with respect to the performance of functions and achieving goals. Authority and responsibility are correlated.

16. 3. Discipline With out discipline nothing can be accomplished.it is the core value of any management. Obeying rules and regulations of the organization Discipline may self imposed or by command.

17. 4. Unity of command Employees should have one boss and follow his commands. Dual command leads to confusions.

18. 5. Unity of direction Whoever is engaged in the same activity should have a unified goal. Efforts of all members should be directed towards common goals. There should be one head and one plan for each group having same objective.

19. 6. Subordination of individual interest. General interest must supersede the individual interest. Company should work unitedly towards the interest of a company rather than personnel interest.

20. 7. Remuneration of personnel Remuneration and method of payment should afford maximum satisfaction to both employees and employers. It should be according to their individual effort. Important role in motivating employee of a company.

21. 8. Centralisation In any company, authority should be in hands of one or few persons. Top management retains most of the decision making authority. In small companies centralisation is possible but in big organization degree of centralisation should be less.

22. 9. Scalar chain It is the chain of superiors and subordinates from the highest level to the lowest level for the purpose of communication. Each communication going up or coming down should be along the line of authority. Every employee knows their immediate senior.

23. 10. Order A company should maintain a well defined work order to have a favourable work culture. Order relates to arrangement of things and people. Every man in the organization should be properly placed.

24. 11. Equity Manager should be just and kind. All employees should be treated equally and respectfully.

25. 12. Stability of workers. An employee delivers the best if they feel secure in their job. It is the duty of management to offer the security. No employees should be removed unnecessarily with in short period.

26. 13. Initiative Managers should encourage their employees to take initiative within the limits of their authority and discipline. It will help them to increase their interest.

27. 14. Espirite de corps Unity is strength Manager should develop team spirit in his employees. Developing the trust and mutual understanding will lead to positive outcome.

28. Taylor Fayol Focused his attention on the problems of shop floor Concentrated on the functions of manager at top level. Worked from the bottom of the industrial hierarchy Concentrated on chief executive and worked downwards. Main aim was to improve productivity of labor Attempted to develop a universal theory of management. Taylor called his work as scientific management Fayol described as general theory of administration.

29. Types of ownerships Individual or sole proprietorship Partnership organization Joint stock company Private Ltd company Public limited company Cooperative society

30. Individual ownership or sole proprietorship This type of business owned by a single man. The owner invest capital, employee labour and machines, hence he enjoy all the benefits. The owner is fully liable for all debts associated with the business. Eg ; Printing press, Auto repair shop

31. Advantages Disadvantages Easy for formation as it does not require any legal formalities. The owner can not be master of all techniques like management, sales, etc. hence work suffers. Owner is free to make any decisions. If the business fails creditors can take personnel property as well as business property. Simplicity in the organization The capital is limited The secrecy can be maintained. The firm may stop with the death of proprietor. More flexible and product variety can be changed. Minimum legal restrictions

32. 2. Partnership organization Partnership is the relationship between the persons who have agreed to share profit of a business. It is an association of two or more persons to carry on as co-owners of a business for profit. Upto 20 persons in non banking business and 10 perssons in banking business. Every partner is liable for the act of partners. The constitution of the company may be written in ab agreement form. ie , called partnership deed

33. Kind of partners Active partner Sleeping partner Nominal partners. Secret partners. Minor partners. General parners

34. Advantages Disadvantages Large capital can be collected Mistake of one partner cause a big loss to all. The firm posses much better talent/ skills from different partners. Chances of misunderstanding among the partners which effect adversely on the efficiency of the business. Partnership associates tax advantages with it. Partnership comes to an end if a partners dies. For all losses there are more than one person to share.

35. 3. Joint stock companies A joint stock company is an association of several persons called share holders who joined together for profit and agree to supply capital. It comes into existence only after registration under Indian companies act. The company has a continuous existence. The members of the company are not held liable for its debts. The share holders are the owners of the company. In a democratic way share holders elect few directors who manage the affair of a company.

36. There are two types of joint stock companies Private limited company Public limited company

37. Private limited company Public limited company Capital is collected from private partners Capital is collected from public by issuing shares having small face value. No. of members 2-50 Minimum -7 Maximum – Unlimited The shares are not freely transferable The shares are freely transferable A private company can commence its business soon after getting the certificate of incorporation. It can start only after receiving certificate of commencement of business from registrar of joint stock companies. Needs its account audited Public company must gets its account audited by a registered auditor.

38. Advantages Disadvantages Huge amount of capital can be collected. A good deal of legal formalities is needed for the formation. The liability being limited Company is managed by share holders only Shares are transferable. It is difficult to preserve secret in these companies. Continuity in existence Excessive government control Social benefits Delay in decision management.

39. 4. Cooperative societies To achieve common economic objectives, a set of people may associate together and form a co operative society. They may be agriculturalists, consumers,laboures etc. . All these societies are registered and regulated by the co operative society act. It does not aim at the maximization of profit. The main aim is self-help and mutual help. Principles of cooperative societies. Voluntary association Democratic management No profit motive Self help and mutual help Open door policy

40. ORGANISATIONAL STRUCTURE Organization combines the various factors of production into most effective coordination . Organizational structure is the network of relationship between the various positions in an organization. Systematic arrangement of organization Framework for authority and responsibility Common structures are Line or Military or Scalar organization Functional organization Line and staff organization

41. a) Line or Military or Scalar organization It is the simplest form of organization structure. Authority flows directly from top to bottom in vertical line. It is direct and people at different levels know to whom they are account table. Each department head is sole control over his section.

42. Advantages Disadvantages It is simple and very easy to understand It is limited to small organization It gives clear division of authority and responsibility It encourages dictorial way of working It permits quick decision and speedy actions It neglects specialist advice. Strong discipline. Top man is overloaded with too many duties. Shifting of responsibility is not possible. As the orders flow from top to bottom chance of loss of information possible.

43. b) Functional organization F W Taylor suggests functional organization. Responsibility of enterprise divided according to the function to be performed. Each expert will supervise only a particular process in several department .

44. Advantages Disadvantages It makes use of specialist to give expert advice. There will not be much coordination among various specialists. It increase quality of work. Fixing of responsibility is difficult It provides relief to top executives. It is expensive due to appointment of number of executives. Increase overall efficiency of the organization. It is difficult to maintain discipline. It makes possible for development. Overlapping of responsibility is possible.

45. c) Line and staff organization Vertical : line executive Horizontal : staff executive Line executive could not perform properly all other functions Employing special executives to assist line executives and they were known as staffs. The line executives retain supervisory authority and control control over the work. the line executives are called “ Doers” and staff executives are called as “ thinkers”.

46. Advantages Disadvantages Expert advice from specialist staff can be made use off Product cost will be increased Line executives are relieved of some of their loads It may arise conflict between line and staff. Less wastage of material, man and machine hours. Line executives may loss their efficiency as they have to depend on staff members. Quality of product is improved There may be lack of coordination between line and staff. It possesses advantages of both line and functional organization.