Principle Of Management - Higher Technological Institute

Principle Of Management Prepared By : Dr. Hosny Abbas Abouzeid

Contents Chapter 1 : Introduction

1.1 Basic definitions 1.2 Nature ,Principle, Role And Importance Of Management 1.3 Management Techniques . 1.4 Management Modern approaches( Models): MBO& MBE 1.5 Types & Levels of (hierarchical ) Management Levels

1.6 Difference Between Management and Administration

Chapter 2 : Functions of Management 2.1 Planning : Nature ,Principle , types ,components, steps and rules for planning .

2.2 Organizing Building Blocks(elements) of organizational Structure :

centralization & decentralization , formalization, hierarchical levels, and departmentalization

2.3 Staffing Objectives , Functions , Selection Criteria

2.4 Directing ( Leading) Importance and Elements of Directing (Supervision, communication ,motivation, leadership) .

2.5 Controlling Purpose ,Types , Steps of controlling , Deviations (or Nonconformity) Classification & Management , Corrective & Preventive actions and Corrective actions

2.6 Other Management Functions Forecasting – Decision Making

Chapter 3 : Functions, Roles, and Skills of Managers

Chapter 1 : Introduction - In the modern times one of the most important human activities is managing group of

people. Managing has been essential to ensure the coordination of individual efforts. - The knowledge of management theory and practice enables managers to take more

realistic view about organizational and social problems and to find out their effective solution.

- Management applies to any kind of organization and applies to managers at all organizational levels.

1.1. Basic Definitions 1.1.1 Traditional Definitions Of Management

- Management is the art of securing maximum results with minimum of efforts so as to get maximum success and happiness for both employer and employee and give public the best services . - Management is definite process consisting of planning ,organizing ,staffing ,leading, and controlling utilizing both in each science and art and followed to accomplish

predetermined objectives of organization . - “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.” ( Taylor Def.) - “Management is the accomplishment of results through the efforts of other people utilizing the physical and human resources for achieving organizational goals .” (Lawrence Def.)

1.1.2 Modern Definitions Of Management - “ Prime mover of organization making it functional and productive” - “Process of creating conductive and proper internal environment in the organization” . - “ Process of dealing well with changing external environment by relating strengths and weakness of organization with it “.

1.2 Nature ,Principle, Role And Importance Of Management 1.2.1 Nature Of Management

1. Management is a universal activity or an integrating process which includes planning, organizing, directing and controlling to achieve the organization objectives . 2. Management is concerned with the efforts of a group 3. Management applies economic principles. 4. Management is goal-oriented and involves decision making. 6. Management co-ordinates all activities and resources.

7. Management takes into consideration the existing situations and advice best way of doing things . 8. Management is the combination of art, science and profession.

8.1 Art means use of :creativity ,skills ,technical know how and directed to getting results . 8.2 Management is a profession because it involves knowledge and application of it , besides social responsibility as its aim should not be only profit maximization, but they have to follow certain rules for social responsibilities as shown in the following figure . 8.3 Management is a Science as it based on certain principles and which are universally approved. Science is divided into two parts : Physical science & Social science because it deals with human being. 9. Management is a dynamic continuous process.

1.2.2 Principles Of Management The Principles of Management laydown guidelines for improving Management practices. A list of fourteen principles of Management given by Henry Fayol as follow : 1. Division of work : Total work of an organization is divided into small manageable units and assigned to particular individuals. It can be applied at all levels in the organization. 2. Authority and responsibility : The Manager gives his order directly to the subordinate after that he should take the responsibility for the work done by them. It is important to delegate authority, at the same time keep the responsibility with him. 3. Work Discipline : Should be followed by all the employees to let organization running smoothly . For example ,Obedience behavior, flexibility and human consideration are together called discipline. 4. Unity of Command : Every subordinate should receive orders and be accountable to only one superior , to avoid conflicting orders and ensures organization stability . 5. Unity of Direction : Means that each group of activities having the same objective must have one head and one plan. 6. Individual Interest must be coincides with general organization . When there is conflict between the two, interest of the organization should prevail over individual interest. 7. Motivation methods should be fair and provide maximum possible satisfaction to both

employees and employers. 8. Centralization and Decentralization : Should be based upon optimum utilization of all the personnel in each case. 9. Flow Scalar Chain authority : There should be a clear line of authority ranging from top

to bottom of the organization . 10. Order : This principle is concerned with the arrangement of things and the placement of people in its proper place . 11. Equity : Equity implies that employees should be treated with justice and kindness. 12. Stability & Security Of Personnel : Employees cannot work efficiently unless job security is assured to them. 13. Initiative : Initiative refers to the freedom to think for oneself and use direction in doing work . Employees at all levels should be given the opportunity to take initiative in the formulation and execution of plans. 14. ESPIRIT DE CORPS((team work spirit) : This refers to harmony and mutual understanding among the members of an organization.

1.2.3 Role and Importance of Management (i) Achievement of group goals (ii) Optimum utilization of the available resources . (iii) Minimization of cost . (iv) Survival and growth: Modern business operates in a rapidly changing environment. (v) Generation of employment: By setting up and expanding business enterprises, managers create jobs for the people. (vi) Development of the nation: Efficient management is equally important at the national level.

1.3 Modern Management Techniques Defined as the systematic and analytical methods used to assist in decision making , the improvement of efficiency & effectiveness and the conduct of planning and control .

A. Statistical techniques: As Regression analysis- Forecasting and time trends –

Decision theory and tree .

B. Activity analysis : As Time motion study – Work sampling & activity analysis –

Gantt chart & work schedule .

C. Mathematical techniques : As Simulation and modelling – System analysis –

Linear proramming – Net work analysis – PERT –CPM

D. Financial techniques : As Monitoring expenditure – Cost accounting and analysis -

Cost Benefit Analysis – Performance analysis .

E. Miscellaneous : As Management By Objectives & Evaluation by results –

Management By Exception – Situation analysis – Current state assessment .

1.4 Management Modern approaches ( or Models)

Different management authors have proposed different models of management which suit different leadership styles and motivation ideologies. Management by objectives and management by exception are significant models out of such models.

1.4.1 Management by Objectives (MBO) Management by objective can be defined as “a management model that attempts to devise a common objective or goals that is acceptable for both the management and employees, which will improve the overall performance of the organization from available resources“. OR “MBO is a process whereby the superior, managers and subordinate of an organization jointly identify the common goals, define each individual’s major areas of responsibility in terms of the results expected of him, and use these resources as guides for operating the unit and assessing the contribution of each of its members”.

1.4.1.1 Nature of Objectives Objectives are defined as the specific targets to be achieved by an organization. They are the end-points towards which all management activities like organizing, staffing, directing and controlling are directed.

1. Objectives may be in quantitative or qualitative terms.

For example, in the areas of market standing, productivity and physical and financial resources quantification is possible. On the other hand, worker’s morale, social responsibility, etc. cannot exactly quantified.

2. Objectives have hierarchy in that objectives .

These objectives are for the whole organization and split into unit level or departmental objectives forming interrelated network.

3. Short-term and Long-term Objectives Short-term objectives are those which are sought to be achieved by the organization in the immediate future, while long-term objectives are those which are aimed to be achieved over a longer period, say five to ten years or even more.

4. Objectives sometimes may be in conflict with each other

Each department considers that its goals are more important than other departments . For example, the production goal of low unit cost achievable through mass production may be in conflict with the sales goal of offering high quality goods.

1.4.1.2 Steps of MBO Process The M.B.O approach includes following steps:-

1) Identifying the Key Results Areas (KRAs) This is done by top management using discussion and SWOT Analysis( Strengths,

Weakness ,Opportunities and Threats). This finalized in the joint meeting of superior & sub-ordinates.

2) Setting Objectives In this stage the objectives for the whole organization to be achieved are decided by all concern parties &key results areas are also finalized.

3) Developing Action Plan Such action plan for the whole organization is prepared jointly based on objectives & useful or suitable follow up for achieving objectives.

4) Conducting Periodical Review Periodical review is useful for execution of action plan. If there is any deviation remedial

action can be taken.

5) Performance Appraisal( evaluation ):- MBO provides a tool for performance appraisal to superiors. It helps to improve the

performance of staff in future .

6) Achieving the Objectives:-

The important aspect of MBO is to achieve the objectives within the definite limits using communication & co-operation between all parties using corrective actions if required .

1.4.1.3 MBO Advantages 1) Result Oriented Approach . 2) Goals are never imposed forcefully to anyone. They are decided by all parties. 3) High Morale of Employee due to participation of superiors & clarity of goals . 4) Effective Planning which is standardized for the action plan. 5) It Facilitates Control for the performance as compared with standard one. 6) It gives reasonable freedom to lower level management and increase mutual understanding between superior &sub-ordinates while achieving objectives. 7) Contributes for the installation of a democratic and participative setup essential for the success of an organization in a complex business environment of today.

1.4.1.4 MBO disadvantages

1) It is time consuming process as it includes setting of objectives & responsibility with careful consideration for every action. 2) It increases paper work for example written policy, manual, instruction cards, reports. 3) It creates organizational problem in setting objectives between superior & subordinate. 4) Problem of goal setting , if objects are not set properly with particular responsibility and are not agreed by all. 5) Conflicting objectives between individuals or departments which may result in lack of co-ordination among different parties. 6) Secret can’t be maintained as MBO involves participation of superior & sub-ordinate . Some important matters should be kept with top level management, because some times it is dangerous for the organization when there is leakage of information. 7) It is reward punishment approach which creates excess pressure on all executives.

1.4.2 Management by Exception (MBE) It is a management technique or style by which managers concentrate , identify and isolate the exceptional or significant deviations or problems that call for decision and action instead of trying to correct each and every deviation to avoid dealing with those that can be well handled by the subordinates themselves.

1.4.2.1 Advantages Of MBE

(1) Save time as it allows the manager to devote more time for important issues by letting the subordinates deal with the issues of a routine nature.

(2) It enables the manager to decide when and where he should pay his attention only for crisis and critical problems.

(3) Lesser number of decisions is required to be taken, which enables the manager to go into detail to be able to make better decisions.

(4) The subordinates are given authority to make decisions on certain matters without any interference by the executives.

(5) The management is also able to utilize the available talent at the lower levels

1.4.2.2 Limitations Of MBE 1. It requires a comprehensive observing and reporting system.

2. It increases paper work. 3. The system is silent till the problem becomes critical. 4. There is no parameter available by which one can differentiate important deviations from the unimportant ones. 5. Some important factors, like human behavior, are difficult to measure. 6. Only an organization that has a perfect system of control will be able to employ the technique of MBE 7. Mistakes in calculations the budgets can lead to higher variances and finding the root

causes can be a time-consuming task. 8. Dependency on accounting department is too high, and the probability of accurate

forecasting is questionable. 9. Important decisions will be with senior management and participation of employees is

less. This can be a demotivating factor.

1.4.2.3 Phases Of Management by Exception: The system of Management by Exception can be evolved in following phases:

I Phase: Measurement Phase: In this phase, information and facts of operational situation are collected and assessed using quantitative measurements like using time standards, balance sheet data, inspection results of finished products, inventory accumulation for sales, current assets, equipment utilization data etc..

II Phase: Projection Phase: In this phase, analysis of those measurements which are meaningful to the objectives of the organization for future outlook or expectations is carried out. Past and present data are projected by using the statistical concept like probability, standard deviation, confidence, correlation, sample size, significance etc .Then the projections are modified by the forecasts to decide the ‘goals’.

III Phase: Selection Phase: In this phase, those vital and economical available measures are selected, which will best indicate the progress towards its objectives. Thus the criteria are selected, which the management would like to use to follow the progress or performance towards predicted objectives.

IV Phase: Observation Phase: In this phase, current status of performance is periodically observed and measured.

V Phase: Comparison Phase: In this phase, comparison is made between the actual and expected performance and progress in order to identify the exception, analyze causes and report the need for action to the appropriate authority about the exceptions that required priority of attention.

VI Phase: Action Phase:

This is the phase, where decisions are taken and implemented with a view to bring the performance to the desired level or adjust in anticipations to reflect changing conditions or take full advantage of better performance or opportunity.

1.4.3 Difference Between MBO &MBE Characteristics MBO MBE Employee Participation

is essential for an MBO model as it needs a common objective acceptable for management and employees

in objective setting and decision making is minimal in an MBE model as that responsibility is rested with senior management.

Role Ambiguity the clarity of personal responsibility towards organizational goals is better communicated and understood by the employee

The clarity will be lacking, and employees will perform a generic responsibility without understanding his role in the overall objective achievement.

Dependency the dependency on one department or group is less as operations are handled with organizational wide participations.

the dependency on one department especially of financial analysis / account is high as they are responsible for forecasting, budgeting and monitoring.

Efficiency the active involvement of whole organization in decision making can lead to delays and complex procedures which can reduce efficiency.

as only a certain group makes important decisions and investigations are performed only in instances of significant deviation the time devoted to daily work is more which can result in better efficiency.

1.5 Types of (hierarchical ) Management Levels There are several types of management levels. However it is useful to divide them on the basis of the numbers of levels : Two or Three Levels of management . If there is large number of levels it will difficult to communicate and co-ordinate and control. So the levels must be restricted.

1.5.1 Two Levels Of Management 1.5.1.1 Tall structures Tall structure is one which develops narrow span of management, a large number of management levels, and more centralized decision making. The basic advantages of this structure are close supervision, close control of followers activities, and fast communication between superior and his subordinates .

1.5.1.2 Flat structures

Flat structure is that which reduces the level of management, widens span of control of managers at various levels of the organization, and is often more decentralized with regard to decision-making autonomy. Its main advantages are more delegation of authority, more clear policy, provide greater need satisfaction for employees and greater levels of self-actualization .

In such a structure, managers will be relatively unable to provide close supervision, leading to greater levels of freedom of action for each employee

1.5.2 Three Levels Of Management These levels existed for large organizations , in particular , and fall into the following categories : Top , Middle and low level Management .

Managers at all these levels perform different functions. The level of management is

Diagram of Level Of Management

depends upon the size of the organization . The role of managers at all the three levels is discussed below:

1.5.2.1 Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It deals with Long Term strategies . devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets,

procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for middle level i.e. departmental managers. e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction. h. The top management is also responsible towards the shareholders for the

performance of the enterprise.

1.5.2.2 Middle Level of Management The branch managers and departmental managers constitute middle level. They are

responsible to the top management for the functioning of their department. It deals with medium term administrative. 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. Their role can be emphasized as -

i. They execute the plans of the organization in accordance with the policies and directives of the top management. j. They make plans for the sub-units of the organization. k. They participate in employment & training of lower level management. l. They interpret and explain policies from top level management to lower level. m. They are responsible for coordinating the activities within the division or department. n. It also sends important reports and other important data to top level management.

o. Implement general guidelines established by top management p. They are also responsible for inspiring lower level managers towards better performance.

q. Responsible for tactical planning

1.5.2.3 Lower Level of Management Lower level is also known as supervisory / operative level of management. It deals with short term operative and consists of supervisors, foreman, 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”. In other words, they are concerned with direction and controlling function of management. Their activities include -

a. Assigning of jobs and tasks to various workers. b. They guide and instruct workers for day to day activities. c. They are responsible for the quality as well as quantity of production. d. They are also entrusted with the responsibility of maintaining good relation

in the organization. e. They communicate workers problems, suggestions, and recommendatory

appeals etc to the higher level and higher level goals and objectives to the workers. f. They help to solve the complains of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers. i. Oversee daily operations j. Directing and controlling primary functions k. They arrange necessary materials, machines, tools etc for getting the things done. l. They prepare periodical reports about the performance of the workers. m. They ensure discipline in the enterprise. n. They motivate workers. o. They are the image builders of the enterprise because they are in direct

contact with the workers.

Difference Between Management and Administration

Oliver Sheldon in his “The Philosophy of Management” defines : ‘Administration as a function is concerned with the determination of the corporate policy, the coordination of finance, production and distribution, the settlement of the of the organization structure, under the ultimate control of the executive.’ On the other hand, ‘Management is concerned with the execution of the policy, within the limits setup by administration and the employment of the organization for the particular objects before it‘ . Thus Sheldon declares administration as a thinking process and management as doing process.

Practically, there is no difference

Between management & administration. Every manager is concerned with both – administrative management function and operative management function as shown in the figure. However, the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i.e. management .The Figure clearly shows the degree of administration and management performed by the different levels of management.

Chapter 2 : Functions of Management Management functions include main functions ( as planning, organizing, staffing and directing) and other additional functions (as co-ordination , decision making and so on ) .

I. Main Functions Of Management

2.1 Planning :

Planning is the basic function of management that determines in advance what should be done, why should be done, when, where, how should be done for achievement of pre-determined goals. This is done not only for organization as a whole but also for every division, section and department.

2.1.1 Nature of planning - It includes forecasting, formation of objectives, policies, programs, producer and

budget. - It is a function of determining the methods or path of obtaining there objectives Planning

is thinking before doing. - Planning is necessary to ensure proper utilization of human and non-human resources. - It also helps in avoiding confusion , uncertainties, risks ..etc.

2.1.2 Principles of Planning • Take Time to Plan • Planning can be top down and bottom up • Involve and communicate with all those concerned • Plans must be flexible and dynamic . • Evaluate and revise

2.1.3 Type of Plans Strategic Plans – Tactical Plans - Operational Plans – Contingency Plan

2.1.3.1 Strategic Plans A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. It is further classified as follow :

i) Mission: The mission is a statement that reflects the basic purpose and focus of the organization which normally remain unchanged. The mission of the company is the answer of the question : why does the organization exists?

ii) Objectives or goals: Both goal and objective can be defined as statements that reflect the end towards which the organization is aiming to achieve. However, there are significant differences between the two. A goal is an abstract and general umbrella statement, under which specific objectives can be clustered. Objectives are statements that describe—in precise, measurable, and obtainable terms which reflect the desired organization’s outcomes.

iii) Strategies: Strategy is the determination of the basic long term objectives of an organization and the adoption of action and collection of action and allocation of resources necessary to achieve these goals.

Characteristics of strategic plans: - Strategic planning has a long time frame, often three years or more. - Strategic planning generally includes the entire organization and includes formulation of objectives and threats, as well as the strengths and weaknesses of the organization . - An organization’s top management most often conducts strategic planning.

2.1.3.2 Tactical Plans A tactical plan is concerned with units: What must do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a strategy and make it work.

Characteristics of strategic plans: - Is concerned with shorter time frames and narrower scopes than are strategic plans

- Is intermediate-range (one to three years) planning - Is designed to develop relatively concrete and specific means to implement the strategic plan. - Middle-level managers often engage in tactical planning.

2.1.3.3 Operational Plans An operational plan is a short-range (less than a year) plan that a manager uses to accomplish his or her job responsibilities to attain precise and measurable operational goals that support the strategic and tactical plans.

Types of Operational plans - Single-use plans apply to activities that do not recur or repeat. A one-time

occurrence, such as a special sales program ,and a is a single-use plan because it deals with the who, what, where, how, and how much of an activity .

• Program : It includes use of different resources in the organization in particular time. It also shows line of action to be taken by whom, when & where to attain in particular sequence.

• Budget : It is define as financial or quantitative statement or projected plan of action prepared for definite period of time

- Continuing or ongoing plans are usually made once and retain their value over a period of years while undergoing periodic revisions and updates such as policy, procedure and rule .

1. A policy provides a broad guideline for managers to follow when dealing with important areas of decision making.

2. A procedure is a set of step-by-step directions that explains how activities or tasks are to be carried out.

3. A rule is an explicit statement that tells an employee what he or she can and cannot do to promote the safety of employees and the uniform treatment and behavior of employees .

2.1.3.4 Contingency (probable alternative)plans Contingency planning is an Intelligent and successful management which depends upon a constant pursuit of adaptation, flexibility, and dealing with the changing conditions. Contingency planning involves identifying alternative courses of action that can be implemented if and when the original plan proves inadequate because of changing circumstances such as unexpected problems and events frequently occur .

2.1.5 Steps in Planning 1. Identification of problems & Awareness of opportunities and Setting of goals 2.Outlining Planning assumptions about the internal and external elements of organization environment . 3. Decide the planning period 4. Develop alternatives and then select the best course of action 5. Derivative plans or derive departmental plans the main plans To make it operational 6. Review periodically the plan results .

2.1.6 Rules For Planning - Set realistic and achievable goals; - Communicate the assumptions on which plans are formulated to all the people and departments concerned;

- Encourage and make people participate in the planning program so as to ensure - The right commitment; - Ensure proper coordination between the short-term and long term plans. - Encourage creativity in planning to help in identifying the best alternatives; and - Pay attention to the resources position of the organization so as to ensure the availability as and when required.

2.2 Organizing Is the process of developing an organizational structure or the framework within which effort is coordinated to ensure the useful or best functioning . The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization.

Example of Organization Chart

2.2.1 Steps of Organizing:

The main steps involved in the process of organising are as follows: 1. Determining the activities to be performed to attain organisational objectives. For example, in a manufacturing concern, the activities may be divided into purchase, production, sales, storage, advertising, accounting etc. 2. Grouping of activities by grouping them into departments and division on the basis of making identical or closely related activities are grouped in one department. Each department is placed under the charge of a manager. 3. Assignment of duties. Right man should be selected for each job and proper physical environment should be provided for efficient performance of jobs. 4. Delegation of Authority. Appropriate amount of authority is delegated to each individual for enabling him to perform the duties assigned. 5. Defining authority relationships between different members of the organization Each and every individual should know who is his boss, or his subordinates to whom he can issue orders.

2.2.2 Building Blocks(elements) of organizational Structure There are four elements of structure that have been frequently studied in the literature: centralization & decentralization , formalization, hierarchical levels, and departmentalization.

2.2.2.1 Centralization & Decentralization And Delegation Of Authority

Centralization: Centralization is the systematic and consistent reservation of authority at central points within an organization. In centralized companies, many important decisions are made at higher or top management levels . Centralized organization can be explained by the following chart.

Advantages of Centralization: 1.Effective utilization of talents of the top Leader. 2.All parts move together. A unifying force that integrates all operations. 3.A strong co-ordinated top management team is developed. 4. Uniformity of policy and plans. 5.Best-arrangement to tackle emergencies. Resources and information can be mobilized quickly and effectively. 6. Duplication of functions and facilities are minimized.

Disadvantages of Centralization: 1. Delays in decision-making and Communication. 2. Centralized power and authority may be abused. 3. Inhibits development of lower level people. 4. Low motivation and morale of lower level people. 5. Fortunes of the enterprise depend on the health and vitality of top executives.

Delegation Of Authority Delegation is the process by which authority is granted to a subordinate by his superior. Delegation is the only solution to cope with the increasing work load of managers as the organization grows. A superior can delegate only authority and not responsibility

Authority is the right to command. It is the discretion power vested with a manager to

use the organizational resources. It flows from the top to down in the organization structure. Authority is transferred on one-to-one basis from the superior to his followers

Responsibility, on the other hand is the obligation to perform the tasks and accounts

for their satisfactory completion. In contrast to authority, responsibility of an

individual in the organization is always upwards, that is, the subordinate is responsible to his or her superior.

Steps/Process of Delegation: 1. Determination of results expected to obtain from his subordinates 2. Assignment of Duties &Responsibilities by answering the following questions : what to delegate? When to delegate? Whom to delegate? And how to delegate . 3. Granting of Authority from superior to make subordinates able to perform and execute the tasks e.g to use resources, to take decisions . 4. Creating accountability for performance . In other words, the subordinate is accountable to his superior for the tasks delegated. Thus, while authority flows downwards, responsibility flows upwards.

Advantages of delegation : 1. Vital for every organization because no individual, in any organization, can perform all the tasks by himself. 2. Relief to Managers because they able to concentrate on more important duties. 3. Specialization as any organization may contain different activities such as production, marketing, finance, quality control human resources , etc 4. Quick Decisions . It is, therefore, not necessary to refer every matter to the superior and to await his decisions. 5. Improvement of Job Satisfaction 6. Scope for business expansion to include more activities.

Barriers to Effective ( or disadvantages of) Delegation - Lack of Confidence in Subordinates abilities and skills.

- The “I can do it better myself fallacy”: Some managers always suffer from a feeling that they only can do the job better . - Lack of ability to direct: Some managers become so involved in day-to-day operations that they ignore to see the broader picture. - Fear from Risk: sometimes , the may fear that delegating the job will cause problems.

- Absence of Selective Controls necessary to ensure proper controls in the form of feedback about performance. - Inadequate Information and Resources .

Degrees OF Delegation Harvey Sherman categorized the following six degrees of delegation: i. Take action – no further contact with me is needed. ii. Take action – let me know that you did iii. Look into this problem – Let me know what you intend to do; do it unless tell you not to. iv. Look into this problem – Let me know what you intend to do; delay action until I give approval. v. Look into this problem – Let me know alternative actions available with pros and cons and recommend one for my approval

vi. Look into this problem – give me all facts; I will decide what to do.

Decentralization Of Authority: Decentralization refers to the systematic effort to delegate to the lowest levels of authority except that which can only be exercised at central points. Decentralization of authority is broader in scope than delegation of authority and involves the transfer of authority in the organization context from top to the lower ranks of management in the hierarchy as shown in the following figure .

Example of Decentralization Organization Advantages of Decentralization

1. Motivation of subordinates due to improving the job satisfaction and morale of lower level manager by satisfying their needs for independence participation and status .

2. Effective communication by developing the relationships between superior and

Subordinates . 3. Executive development because subordinates learn how to decide and develop their

managerial skills . 4. Decisions can be made more quickly .

2.2.2.2 Formalization Formalization is the extent to which an organization’s policies, procedures, job descriptions, rules and regulations are written to control & direct employee behavior and reduces ambiguity (misunderstanding) .

Disadvantage of High degree of Formalization : - Reduces motivation and job satisfaction which results in a slower steps of Decision making. - May actually lead to reduced innovativeness because employees are used to behaving in a certain manner . For example , Sometimes employees who are listening to a customer’s problems may need to take action, but the answer may not be specified in any procedural

guidelines or rulebook .

2.2.2.3 Departmentalization There are many different ways to departmentalize organizational structures, including organizing by function, product, customer and geography or process .

A. Functional Structures In which organizations group jobs based on similarity in functions. Such structures may have departments such as marketing, manufacturing, finance, accounting, human resources, and information technology.

B. Divisional structures

B.1 Product (Service) Departmentation In which each departments represent the unique products, services, customers, or geographic locations the company is serving. Within each department, functions such as marketing, manufacturing, and other roles are existed . In reality, many organizations are structured according to a mixture of functional and divisional forms. For example, if the company has multiple product lines, departmentalizing by product may increase innovativeness and reduce response times .

Example of Functional Departmentation

B.2 Customer Is the process of grouping activities on the basis of common customers or Types of customers. Jobs may be grouped according to the type of customer served by the organization as shown in the following example :

The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists.

B.3 Geographic Departmentation Geographic departmentation is the process of grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography

B.4 Process Departmentation

is the process of grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentation allows homogenous activities to be categorized .

2.2.2.4 Span of Management There is a limit to the number of persons or activities that a manager can effectively manage. Span of management indicates the number of people who can be effectively managed by one executive. Manager’s span of control is a statement or expression or the limitation of the number of subordinates or activities that he can manage properly.

Factors influencing the span of management: 1. time devoted to supervision 2. variety and importance of activities 3. repetitiveness of activities 4. capacity and experience of manager 5. ability of subordinates 6. centralization

2.3 Staffing Staffing as an managerial function , comes after determining strategies, policies, programmes , activities , procedures and rules formulated for their achievement, and understanding all work areas .

According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed in the structure”.

2.3.1 Objectives Of Staffing - To ensure that organizational positions is filled by qualified personnel . - To define job description , persons acceptance tests , and required training . - Matching the right persons in the right places .

2.3.2 Functions of Staffing (a) Manpower planning involving determination of the number and the kind of personnel required. (b) Recruitment for attracting adequate number of potential employees to seek jobs in the enterprise. (c) Selection of the most suitable persons for the jobs under consideration. (d) Placement, induction and orientation to fill the roles designed on the structure . (e) Transfers, promotions(move to higher rank), termination and layoff. (f) Training and development of employees. (g) Remuneration(give bonus) Is key in terms of attracting the right talent without damaging the organization’s finances.

2.3.3 Staffing Selection Steps 1. Receiving Application Form . 2. Screening of Applications , to get to the applicants who are found to be qualified for the

consideration of employment. 3. Selection Tests , to accept or to know more or to reject the candidates such as

Achievement, Intelligence, Personality, and Interest tests 4. Interview, to find out overall suitability of candidates for the jobs based on Education,

knowledge ,skills and experience . 5. Checking of Candidates References to check information provided by candidates. 6. Physical fitness Examination, to ascertain the physical standards and fitness of

prospective employees.

7. Approval by Appropriate Authority. 8. 8. Placement selected candidates on their jobs initially under training period which may

range from six months to two years .

2.4 Directing (Leading):- Directing is the function of leading the employees to perform efficiently, and contribute their optimum to the achievement of organizational objectives.

This function is called by various names: directing, leading, motivating, actuating and so on. Leading involves the social and informal sources of influence that you use to inspire action taken by others

To become effective at leading, managers must first understand their subordinates’ personalities, values, attitudes, and emotions. Studies of leadership and leadership style provide information regarding questions, such as, “What makes a manager a good leader?” and “In what situations are certain

leadership styles most appropriate and effective?”

2.4.1 Importance of Directing - It helps strengthen the operational capability of the organization.

- It ensures that the different parts of the organization are working better together . - Directing is a bridge between the operational needs and the human requirements of its

employees. - It creates a link between the necessity of turning in a profit, with the need of keeping

employees motivated and interested.

- Ensures productivity is going up instead of decreasing . 2.4.2 Elements of Directing

You can direct and lead your team by utilizing four key methods based on the findings of human behavioral studies. These are: Supervision, communication ,motivation, leadership .

2.4.2.1 Supervision Implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers .The method requires watching and monitoring the performance, but also supporting and guiding the employees when things are not going as planned. You could use evaluation reports, examine the quality of work, and be present during certain parts, such as team meetings or when the person is talking to clients. In terms of support, you want to discuss the work and how it’s moving along. You also want to provide materials that can help the employee to perform better.

2.4.2.2 Communication It is defined as “a process by which facts, ideas, experience, opinion and information are exchanged between individuals and different management levels through a common system of symbols, signs, or behavior.” Using different communication methods It is a bridge of understanding and helps in building up high moral.

Communication fulfills three main functions within an organization: (1) transmitting information, (2)coordinating effort, and (3) sharing emotions and feelings in times of celebration and crisis.

Communication channels

Types of Communication: Communication may be classified into the following types: 1. Based on Relationships - (i) Formal It is the outcome of formal organization. It follows the hierarchy (ii) Informal is the result of casual or personal contact between the individuals in an organization 2. Based on its Flow of Direction – (i) Upward : subordinate conveys some information to his superior (ii) Downward : superior conveys certain information to his subordinate (iii) Sideward : It takes place when the executives or subordinates operating at the same level exchange information. 3. Based on the Method used – (i) Oral communication involves exchange of messages through spoken words (ii) Written communication is transmitted through written words in the form of letters, memos, bulletins, instruction cards, manuals, handbooks, reports, ..etc (iii) Gestural(e.g arms& head movements). Gestural communication is very useful in Conveying feelings, emotions and attitudes. For example, handshake with a subordinate or a pat on his back helps to motivate the subordinate.

Communication Barriers : Filtering Filtering occurs when a sender manipulates information so that the receiver will view it More favorably .

Selective Perception Receivers in the communication process selectively see and hear based on their personal

characteristics such as : needs, motivations, experience, interests and expectations background .

Defensiveness When people feel that they are being threatened, they tend to react in ways that reduce their ability to achieve mutual understanding

information overload The state of having more information than one can process. Individuals have a finite capacity for processing data after which they tend to select out, ignore, pass over, or forget information .

Language Words mean different things to different people. Age, education, and cultural background are three of the more obvious variables that influence the language a person uses to define words.

2.4.2.3 Motivation The act of stimulating(encouraging) the people so that they give their best to achieve the organization or desired goals.

Studies of motivation and motivation theory provide important information about the ways in which workers can be energized to put forth productive effort .

Types of Motivation:

1. Positive Motivation

Positive motivation implies creation of an environment in which people can satisfy their needs through rewards and prizes .

2. Negative Motivation It involves creating a sense of fear e.g using package of punishment . 3. Financial Motivation Financial motivation implies use of monetary benefits to inspire employees .

4. Non-financial Motivation Non-financial motivators are not associated with monetary rewards .

5. Extrinsic Motivation Extrinsic(comes from outside) reward may be direct which are linked with performance such as pay allowances, bonus ,or indirect compensation like free housing, medical

facilities, etc ..

6. Intrinsic Motivation Intrinsic motivation occurs on the job and provides satisfaction while the job is being Performed such as status, authority, participation, challenging task , greater responsibility opportunity for advancement etc.

Ways of motivating people in workplace : 1.know employees different needs: Because employees have different needs (money ,praising..) 2. Properly assign tasks: By assigning the right person to the right place . 3.Employee appraisal : Appraisal should be done according to the employee's needs and not according to the company policy. 4.Meet employees expectations: By satisfying their needs from the rewards . 5.Provide a way for relief: during the hard work hours . 6.Let them set goals: Because moving towards achieving goals and plans are one of the very strong motivating factors. 7.Remove other irritating factors : Provide good lighting, fast computers and good air conditioners as their absence will reduce the motivation levels of employees. 8. Involve and Communicate them. Many employees want to be involved in the development and progress of the business and their personal performance in their company. 9. Give them the tools to succeed . This includes; equipment, internal support,

inventory, marketing materials, training, etc.

2.4.2.4 Leadership

Defined as a process by which manager guides and influences the work of subordinates in desired direction.

Leadership Styles

1.Directive(Dictator/ Authoritarian/autocratic) Leader Directive Leaders characteristics :

- Having firm views about how and when things should be done. - Uses fear and threats to get the jobs done . - Tend do not accept any suggestions or initiative from subordinates. - He does not consult his subordinates (followers). - Do not trust anybody . - Tend to closely monitor the behavior and performance of others. - Staff expected to obey orders without receiving any explanations - Structured set of rewards and punishments

Appropriate conditions for use :

- you have all the information to solve the problem . - you are short on time . - Cases of a new employee who is just learning a job . - Existence of crisis or serious urgent problems with his employees .

2.Participative (democratic) Leader

Participative Leaders characteristics :

-Encourage contributions from followers in the decision making process to get

best solutions .

- Decisions responsibility is shared between by the leader &group as whole . - Keeps staff informed about everything that affects their work .

- Produce high quality and high quantity work for long periods of time .

- Encourages staff to grow on the job and create harmony in the job .


-Working with a team of workers who know their job.

-The leader knows the problem, but does not have all the information.

3.Delegative Leader

Delegative Leaders characteristics : - Delegating work to subordinates but delegation process may not involve consultation -Allows the employees to work and make the decisions with the minimum of supervision -The leader is still responsible for the outcome of the delegated work .

Appropriate conditions for use : - With a worker who knows more about the job than you . - Existence of trust and confidence between the leader & his followers . - When employees are able to analyze the situation and problems to give decisions . - Allows leader to be at other places, doing other things.

4.Consultative Leader Consultative Leaders characteristics :

-Combines elements of both democratic and directive leadership

-Tend to encourage contributions from the separate members of the team.

-They typically make the final decision .

This style is used specially to make use of experts experiences .

5.Negotiative Leader

Negotiative Leaders characteristics :

-Tend to negotiate subordinates to work towards their stated goals in a given way

- Uses carrots and sticks approach to further often his personal or party agenda.


- In Most modern-day political parties and politicians - In case of existence difficult or stubborn subordinates .

6.Bureaucratic Leadership Style

• Manages “by the book¨ . •He does not believe in new ideas •If not covered by the book, referred to the next level above •Follows all the rules and formalities of the organization •He wants his subordinates to follow all his orders.

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2.5 Controlling It is a process of checking actual performance against standard performance and correction of deviations , if any , to ensure achievement of organizational goals.

2.5.1 Purpose of controlling - To ensure that everything occurs in conformities with the standards. - It ensures attainment of enterprise objective - It ensures successful implementation of plans - Helps to predict deviations before they actually occur. - Minimize the effects of and risk of failure immediately or at the suitable time . - Detects deviations and takes the necessary correction steps . - control ensures - control ensures that the resources of the enterprise put to optimum use. This leads to

higher efficiency

2.5.2 Types of Control Systems The control systems can be classified into three types namely feed forward, concurrent and feedback control systems.

a) Feed forward (or input)controls: They are preventive controls that try to

anticipate problems and take corrective action before they occur. Example – a team leader checks the quality, completeness and reliability of their tools prior to going to the site. Changing Organizational culture( called behavior management) , Market demand or economic forecasts(called outcome control)

b) Concurrent (process) controls: The process of monitoring and adjusting ongoing

activities and processes . Such controls can prevent problems from becoming worse. For this reason, we often describe concurrent control as real-time control because it deals with the present. An examples of concurrent control might be adjusting the water temperature of the water while taking a shower. Also Changing management supervision during a project(called behavior management) and The real-time speed of a production line (called outcome control)

c) Feedback( or output) controls: Feedback controls involve gathering

information about a completed activity, evaluating that information, and taking steps to improve the similar activities in the future in line with planned objectives. Feedback mechanism

helps leaders and managers make adjustments in the strategy, as perhaps is reflected by changes in the planning, organizing, and leading components. This feedback loop is characterized in the P-O-L-C process shown figure.

2.5.3 Steps of Controlling 1. The Establishment of Standards:

Means the establishment of the criterion or the standards to serve as a model against which we compare or evaluate the actual performance in order to figure out the deviations in quantity ,quality , time and cost .

2. Measurement of actual Performance: This is done to detect any present or future deviations . Part of the process can be performance reviews, actual quantifiable data and so on.

3. Comparing Measured Performance to Stated Standards: This is done to evaluate the performance or to identify deviations or problems either for the organization as a whole or for some individuals working within the organization.

4. Taking Corrective Actions: Corrective action is aimed to bring organizational performance up to the level of performance standards or correcting organizational mistakes that hinder organizational performance or find ways to boost the performance or revise your objectives if it is difficult to do any action .

2.5.4 Deviations (or Nonconformity) Nonconformity is the “non-fulfillment of a requirement” or failure to comply with requirements or is a deviation from a specification, a standard, and an expectation of interested parties . Occurrence of non-conformity decreases quality of product, service or process

2.5.4.1 Categories of Deviations (non-conformity) • Systematic - a failure occurred at least once and can occur more times due to error in

system or process structure, for example: dimensions of the product are not being checked during the production process which can lead to manufacturing a number of products with wrong dimensions.

• Random - a failure occurred at least once, but it's related to some random and rare causes,

e.g. dimensions of only one product were not checked because of some accident that happened on production line.

2.5.4.2 Deviations (non-conformity) Classification : Nonconformities are classified as either critical, major, or minor.

▪ Minor nonconformity – Any nonconformity which does not adversely affect the

performance, durability, interchangeability, reliability, maintainability, effective use or operation, weight or appearance (where a factor), health or safety of a product. Multiple minor nonconformities when considered collectively may raise the category to a major or critical nonconformity.

▪ Major nonconformity – Any nonconformity other than critical, which may result in

failure or materially reduce the usability of the product for the intended purpose (i.e. effective use or operation, weight or appearance (where a factor), health or safety) and

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which can not be completely eliminated by rework or reduced to a minor nonconformity by an approved repair.

▪ Critical nonconformity – Any nonconformity which may result in hazardous or unsafe

conditions for individuals using, maintaining or depending upon the product or prevent performance of a vital products.

2.5.4.3 Deviations (Non- Conformity) Management The main objective of non-conformity management is to deal with detected problem and also deal with its causes to prevent further occurrence. 1. Detection. Anyone who detects non-conformity should report it to responsible person

as soon as possible. 2. Evaluation. The severity of the non-conformity should be evaluated. 3. Treatment. All non-conform products should be treated to either remove the non-

conformity, decrease its impact or remove the product. 4. Documentation. The documentation should include description of the non-conformity,

its cause and treatment. It should be a base of further analysis. 5. Causes treatment. In case of systematic non-conformities, the causes should be

analyzed and treated accordingly. The treatment should remove the cause, reduce its impact, reduce its probability or at least implement tools that allow early cause detection.

6. Actions evaluation. After completing the activities, their performance should be checked. There should be an objective evidence of full implementation of corrective action and its effectiveness.

2.5.5 Corrective actions Corrective actions are steps that are taken to eliminate the causes of existing nonconformities in order to prevent recurrence or continuation these nonconformities . Corrective actions are implemented in response to customer complaints, unacceptable levels of product non-conformance, issues identified during an internal audit, or product monitoring process. When applied to products, Corrections can include: rework , regrade , rework ,repair , concession and scrap

2.5.5.1 Rework The reprocessing of nonconforming material to make it conform completely to the drawings, specifications or contract requirements .

2.5.5.2 Regrade Regrading refers to re-purposing the item for a different use than its original, as long as it meets the quality standards for the new use category. This takes for items that can’t be repaired. Proper documentation is required if using this behavior.

2.5.5.3 Repair The reprocessing of nonconforming material in accordance with approved written procedures and operations to reduce, but not completely eliminate, the nonconformance. The purpose of repair is to bring nonconforming material into a usable condition. Repair is distinguished from rework in that the item after repair still does not completely conform to all of the applicable drawings, specifications or contract requirements.

2.5.5.4 Scrap Nonconforming items that can neither be reworked nor regraded are essentially unusable for manufacturing purposes. These items should be scrapped to prevent introducing them to the supply chain. Scrapping an item does not necessarily require it be thrown in the trash; some items, such as some metals and paper, can be recycled.

2.5.5.5 Concession “Permission to use or release a product that does not conform to specified requirements” . Such an item must have no negative impact on the form or function of the finished product. This disposition should also be documented according to ISO rules.

2.5.6 Preventive action Preventive actions are steps that are taken to prevent the occurrence of nonconformities or situations that do not yet exist by removing or eliminating the causes of potential nonconformities or potential situations that are undesirable. This can be initiated with the help of active participation of staff members/workers through improvement teams, improvement meetings, management review, customer feedback etc…

2.5.7 REQUIREMENTS FOR EFFECTIVE CONTROL The requirements for effective control are a) Control should be tailored to plans and positions This is because every plan and every kind and phase of an operation has its unique characteristics. b) Control systems and information used must help individual managers carry out their function of control. If they are not of a type that a manager can or will understand, they will not be useful. c) Control should be objective . This is because when controls are subjective, a manager’s personality may influence Judgments of performance inaccuracy. Objective standards can be quantitative or qualitative. Quanitative such as costs or man hours per unit or date of job completion. Qualitative in the case of training programs that have specific characteristics or are designed to accomplish a specific kind of upgrading of the quality of personnel. d) Control should be flexible This means that controls should remain workable in the case of changed plans, Unforeseen circumstances, or outsight failures. Much flexibility in control can be provided by having alternative plans for various probable situations. e) Control should be economical This means that control must worth their cost. Although this requirement is simple, its practice is often complex. f) Control should lead to corrective actions This is because a control system will be of little benefit if it does not lead to corrective action for the indicated or experienced deviations from plans.

II. Other Functions for Management 2.6 Forecasting

Forecasting is one of the important functions of management. It is a part and parcel of planning function .

Forecasting defined as means analysis of future about the operations of an enterprise (e.g production, sales, profit ) with providing the details supported by budget on the

basis of research, study & survey. Or

“Forecasting is a systematic attempt to visualize the future by known facts to provide management with information on which planning decisions are based.”

2.6.1 Techniques Of Forecasting The various techniques of forecasting are classified into quantitative techniques (involves use of various statistical data for future) & Qualitative techniques (involves prediction about future) as shown if the following figure .

2.6.1.1 Quantitative techniques 1) Time Series Analysis:-

Under this method historical series of data(if available) divided into various, seasonal variation, random variation, cyclic variation, trend analysis etc.

2) Regression:- This analysis helps to find out relative moment of two or more series. It is used to estimate the change in variation & effect of that change on other variation.

3) Extrapolation:-

This method is based on time series. It is assumed that, there is constant moment in data.

4) Economical Model:- Under this method mathematical models are used to express in quantitative terms. The inter relationship between many variables. The large numbers of equations are formed to arrive at a decision with the help of this model.

2.6.1.2 Qualitative techniques 1) Business Barometer:-

These are the index number which used while predicting. The direction in which economy is moving, accordingly GNP (Gross National Product), Consumer Price, Stock Exchange, are commonly used as index. Increase in GNP indicates progress in the economy.

2) Morphological Analysis:- This analysis is related to technical changes. It involve finding out the objectives & various ways for achieving objectives. E.g.: - To find out multiple uses of transistor micro – circuit.

3) Historical Analysis:- Under this method forecasting is based on some analogue conditions which are based on past.

4) Delphi Technique:- Under this method minds of experts are judge systematically. There is no face to face contact between two experts. They are kept separate from one another & their identity is kept secret. Their opinions are judged with the help of written answers. This method is based on scientific analysis. If there is difference of opinions then discussion is held.

2.7 DECISION MAKING 2.7.1 Introduction

Management is essentially a decision making process to make a choice among alternative courses of action. However, it may be noted that decision making is the means for carrying out managerial tasks and responsibilities. The efficiency of the organization depends upon the efficiency of decision making of its management. “Decision making defined as is a selection process based on some criteria from two or more possible alternative.”

2.7.2 Nature or characteristics of decision making i) Decision making is a process of making a rational choice or selecting one of the various alternative courses of action. ii) Decision making is necessary only when different alternative solutions are available. iii) Decision making is a purposeful activity.

iv) Decision making involves the commitment of resources and reputation of the organization. v) Decision making is always related to the situation or environment.

2.7.3 FEATURES OF DECISION MAKING 1) Decision making is a process. It includes choosing of one best alternative among various alternatives. 2) It may change according to change in the situation. 3) Decision making has a purpose. 4) It is intelligent activity & depends upon the ability of the person. 5) Decision making is a commitment for achieving the object. 6) Decision making leads to increase the profitability of business.

2.7.4 TYPES OF DECISIONS 1) Major Decision & Minor Decision: -

Decision may be major (e.g Location of plant, schedule of production)or minor (Purchase of stationary).

2) Strategic decisions set the course of organization. 3)Tactical decisions are decisions about how things will get done. 4) Operational decisions are decisions that employees make each day to run the

organization. , operating decisions are taken by middle or lower management . 5) Programmed & un-programmed Decision :- Programmed decisions for repeated routine problems. It does not involve any risk Factor. Un-programmed decisions deal with unique problems which involve risk factor & high expenditure. 6) Group Decisions & Personal Decisions :-

Group decisions are known as ‘Organizational Decisions’ which are related with formulating of policies. Personal Decisions are taken by Manager as an individual & not as a member.

7) Policy Decisions & Operating Decisions :- Policy Decisions are taken by Top Level Management such as to give bonus to employee, expansion of plan, change of product Line etc. 8) Long Term & Departmental Decisions :-

In long term decisions, the period of decisions are more than 1 year and are taken by top level management. It involves risk. E.g. Plant expansion, diversification, replacement of machinery, change in technology etc.

2.7.5 Steps of Decision Making 1) Defining the Problem:- By collection of Data or information from internal & external resources based on facts , speculation& assumption. 2) Analysis of the Problems: - By deeply studying and sorting properly the collected information to understand and find the causes of the problem. 3) Identification the available Resources and opportunities for solving the problem . 4) Development of Criteria for choosing the best alternative to attain the successful Solution

5) Development of Alternatives for solving the problem 6) Selection of Best Alternatives based on criteria of step 4: - 7) Implementation of Decisions and monitoring progress considering the following points : Effective communication - Time for Decision Making - Acceptance by employee.

2.7.5 STYLES OF DECISION MAKING 1) Autocratic Decision Making –

Autocratic executives tends to take decision on their own. He does not feel that it is necessary to discuss the problem with subordinates and in order to avoid wastage of time .they take decision and makes others to implement it. If anything goes wrong he tends to criticize the process of implementation rather than rationality of the decisions.

2) Participative Decision Making – A participative executive tend to take advantage of the expertise and talents of the subordinates in the process of decision making, to obtain a more realistic, practicable and acceptable to the subordinates such that they implement such decisions effectively and efficiently. In this case ,the leader is responsible for the decision results .

3) Consultative Decision Making – When executives face complex and highly technical problems they prefer to discuss the issues with experts in related fields and after consultation they prefer to take decision. In this case , the decision responsibility is between leader and his subordinates .

Chapter 3 Functions, Roles, and Skills of Managers

Manager is a person who is responsible for the performance of a group of individuals and administrate & coordinate resources effectively and efficiently to achieve organization goals . Manager is a person who make the job done through other people .

3.1 Manager,s Functions Carrying out the five functions of management : Planning ,Organizing ,Staffing , Leading , and Controlling .

Planning • Setting objectives • Determining how they’ll be met

Organizing • Delegating and coordinating tasks • Allocating resources

Leading • Influencing employees to achieve objectives

Controlling • Establishing mechanisms to make sure objectives are met • Implementing mechanisms to make sure objectives are met

3.2 Manager,s Roles 1. Interpersonal Role

• Figurehead : In this role, every manager has to perform some duties of a ceremonial nature, such as attending the wedding of an employee, taking an important customer to lunch and so on.

• Leader : As a leader, every manager must motivate and encourage his employees. He must also try to reconcile their individual needs with the goals of the organization.

• Liaison(communication) : In this role of liaison, every manager must cultivate contacts outside his vertical chain of command to collect information useful for his organization.

2. Informational Role

• Monitor : As monitor, the manager has to scan his environment for information , and receive information, much of it as result of the network of personal contacts he has developed.

• Disseminator(spread information): the manager passes some of his special information directly to his subordinates who would otherwise have no access to it.

• Spokesman : In this role, the manager informs and satisfies various groups and people who influence his organization about financial performance, assures consumer groups that the organization is fulfilling its social responsibilities .

3. Decisional Role

• Entrepreneur : In this role, the manager constantly looks out for new ideas and seeks to improve his unit by adapting it to changing conditions in the environment.

• Disturbance Handler : In this role, the manager has to work like a fire fighter. He must seek solutions of various unanticipated problems

• Resource Allocator : In this role, the manager must divide work and delegate authority among his subordinates.

• Negotiator : The manager has to spend considerable time in negotiations to solve problems

3.3 Manager’s Skills Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories:

1.Technical Skills Technical skills refer to the ability to use the tools, equipment ,procedures, techniques

and knowledge of a specialized field. These skills are essential for first line managers

2.Human Skills This skill demonstrates the ability to work well in cooperation with others . Human relation skills represent the ability to understand the behavior of people, their problems, their needs, working conditions and motivation to people . They're critical for all managers because of the highly interpersonal nature of managerial work.

3.Conceptual Skills This skill calls for the ability to think analytically. Analytical skills enable managers to

break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others . Conceptual skills also called design and problem-solving skills involve the ability to:

- see the organization and the various components of it as a whole; - understand how its various parts and functions are related in a network fashion - to foresee how changes in any one of these may affect the others.

- Take advantage of opportunities ,resolving conflict , and managing time .

Manager Levels and Skills For the purpose of analysis, skills required different manager levels are shown below:

4. Personal skills Business and management educators are increasingly interested in developing specialized Skills , that contribute to high performance in a management job Business such as :

4.1 Computer Skills:- Computer knowledge is essential for today’s manager i.e. knowledge of hardware & software .

4.2 Communication Skills:- This skill requires the ability of listening and speaking in an effective manner. Also ability to express ideas clearly in words or in writing . The manager is responsible for getting the things done by others. Success is depends upon proper communication .

4.3 Administrative Skills:- It involves the implementation of plan and use of available resources to get the desired output that is profit and to regularize a performance in orderly manner .

4.4 Leadership — ability to influence others to perform tasks

4.5 Self‐objectivity — ability to evaluate yourself realistically

4.6 Analytic thinking — ability to interpret and explain patterns in information

4.7 Behavioral flexibility — ability to modify personal behavior to achieve organizational

goals

4.8 Resistance to stress — ability to perform under stressful conditions

HIGHER TECHANOLOGICAL INSTITUTE 10th of Ramadan City

Subject: Principle of Management Review Questions Lecture : Dr. Hosny Abouzeid Sheet 1_____

I. ANSWER THE FOLLOWING QUESTIOS : 1.1 Define Management . Mention six items from the nature of Management. 1.2 Explain why management is art, science and profession . 1.3 Explain briefly six from the principles of management . 1.4 Explain briefly the modern management techniques . 1.5 Define Management by objectives(MBO).Explain briefly the steps in MBO process . 1.6 Mention four advantages & and four disadvantages of MBO? 1.7 Define Management by Exception (MBE). Mention the phases of MBE . 1.8 Mention four advantages & and four disadvantages of MBE? 1.9 explain the main difference between MBO & MBE . 1.9 Explain briefly the different levels of Management . 1.10 Mention 6 roles for the top level of management . 1.11 Mention 6 roles for the middle level management . 1.12 Mention 6 roles for the lower level management . 1.13 Explain briefly the difference between administration and Management .

II. Select The Correct Answer For The following Questions : 2.1 All activities of management are : (a) Nature Oriented (b) Work Oriented (C) Goal Oriented (d) Business Oriented. 2.2 …..... concerned with laying down suitable policies for the whole concern . (a) Administration (B) Management (c) Manager (d) Auditor 2.3 Top Management consists of ..... (a) Foreman (b) Finance Manager (C) Board of Directors (d) Supervisor. 2.4 Management has come to be recognized as a profession like….. (a) Medical (b) Law (c) Engineering (D) All the above. 2.5 …... aims to co-ordinate the individual goals with the top organizational goals (A) MBO (B)MBE (c) Staffing (d) Controlling 2.6 In large organization , Department heads are considered as : a) Top management B) Middle Management c) lower management d) none of the above 2.7 In large organization , supervisors are considered as : a) Top management b) Middle Management C) lower management d) none of the above 2.8 Optimum utilization of the available resources is considered one of the management : a) Principle B) Role c) Nature d) ) techniques 2.9 The level of management which increase span of management and more decentralized in decision making is called : a) Top level b) Middle level c) Lower level D) Flat structure .

III. Answer The Following Questions Using Either (√ ) OR ( χ ) Only: 3.1 Production Manager comes under middle management level . r 3.2 Management By Exception is a process where superior and managers of an organization jointly defined its common goals f 3.3 MBO provides a s a tool for Performance Evaluation to superiors r 3.4 Tall structure is one of management levels which develops narrow management span and more centralized decision making . r 3.5 Middle management level deals with long term strategies and devote more time in administrative activities …f 3.6 Top management devote more time in organizational and direction functions f 3.7 Management is science because it involves knowledge and application of it besides its social responsibility . f 3.8 MBE increases the paper work . r 3.9 In MBO , goals are never imposed forcefully to anyone . r 3.10 Using MBO as management approach , can leads to complex procedures and time delays r 3.11 Management require conceptual and human skills while Administration requires Technical &human skills. f 3.12 The higher level management denote more time on directing and controlling worker’s performance . f



I. ANSWER THE FOLLOWING QUESTIOS : 1.1 Define each of the main functions of Management . 1.2 What are the principle of planning ? 1.3 Mention ,using a suitable diagram , the different types of plans in any organization . 1.4 Mention the steps of planning . 1.5 What is meant by organizing in any organization . Give a suitable example for an organizational chart 1.6 Define each of the following terms : centralization , decentralization , and formalization Of authority? 1.7 What are the steps of delegation process. 1.8 Mention the main barriers for effective delegation . 1.9 Mention two advantages for each of the following process : centralization , decentralization and delegation 1.10 Mention the different ways to departmentalize organizational structure giving an example of each way using a suitable diagram . 1.11 What is meant by staffing? Mention five functions of staffing ? 1.12 Mention the steps for staffing selection for any organization . 1.13What are the importance of directing in any organization? 1.14 Define each of the key methods of directing in any organization 1.15 Mention the main functions and the different types of communication channels . 1. 16 Mention the different types of communication. 1.17 Explain briefly the different types of barriers faced by the person while communicating information? 1.18 Define motivation . Mention the different types of motivation giving one example for each one . 1.19 Mention six ways for motivating people in workplaces . 1.20 Mention the types of leadership styles and two suitable conditions for using each . 1.21 What are the purposes of controlling in any organization ? 1.22 Mention the main types and steps of controlling in any organization ? 1.23 Define each of the different categories and classification of deviations in any process . 1.24 Explain briefly the steps of deviation management for any process . 1.25 What meaning of corrective action . Mention the different correction actions types as applied to a production process . 1.26 Mention the different requirements for effective control . 1.27 Define forecasting as a function for management . Mention the different techniques of Forecasting. 1.28 What are the differences between Planning and Forecasting. 1.29 What are the types of managerial decisions ? 1.30 Explain briefly the decision making process steps.

II. Select The Correct Answer For The following Questions : 2.1 The management functions are ______.

a. organizing, selling, accounting, leading, and controlling b. planning, organizing, staffing, leading, and controlling c. planning, accounting, controlling, leading, and organizing d. planning, organizing, selling, leading, and controlling

2.2 ----------- is not the function of Management (a) Planning (b) Organizing (c) Directing (D) Recording 2.3 Planning is .....oriented. (a) Past (B) Future (c)Present (d) none of the above 2.4 Planning is .... activity . (a) intellectual(thinking mind) (b) mental (c) intelligence (D) all the above 2.5 The various components of planning are ....... (a) Programme (b) strategy (c) Budget (D) All the Above. 2.6 Plans that usually span one year or less, are developed by middle managers,and are concerned with what the major subsystems within each organization must do are ______. a. strategic plans B. tactical plans c. operational plans d. contingency plans 2.7 The statement that explains the primary purpose of the organization and why the organization exists is the ______. a. budget b. strategic plan C. mission statement d. operational plan 2.8 Delegation will be ..... (A) Downward (b) Upward (c) Sideward (d) All the Above. 2.9 Delegation is an art because it is ..... (a) Creative (b) Practice Based c) Result Oriented (D) All the Above 2.10 The formal and lawful right of a manager to make decisions, give orders, and allocate resources is known as ______. a. accountability b. power C. authority d. responsibility 2.11 The philosophy of management that focuses upon systematically retaining authority at the top of the organization is called ______. A. centralization b. decentralization c. departmentalization d. specialization 2.12 ......... helps the enterprise to know whether the plan has been successfully implemented….a (A) Controlling (b) Motivation (c) Directing (d) None of the Above. 2.13 Control function is performed at .... (a) Top Level (b) Middle Level (c) Lower Level (D) All the Above 2.14 Control gives scope for (A) Delegation of Authority (b) Delegation of Responsibility (c) Accountability (d) None of the Above. 2.15 The primary purposes of staffing include all of the following except A. disciplining employees b. finding employees. c. hiring employees. d. rewarding employees. 2.16 Sense of judgment should be possessed by ------- (a) Subordinate (b) Group member (C) Leader (d) all the above persons 2.17 ------ translates plans into results.

(a) Controlling (b) Motivating (c) Decision making (D) Directing 2.18 A/an ------ leader wants his subordinates to work in the manner he wants. (a) democratic (D) autocratic (c) participative (d) Bureaucratic 2.19 Communication is the exchange of facts, ideas, opinions or emotions by ---------- (a) One Person (b) Two Persons (c) Three Persons (D) Two or More 2.20 Side word communication is necessary to secure better co-ordination between --------

(a) Superior & Sub-Ordinate (B) Individuals & the Departments (c) Among group members (d) None of the Above.

2.21 Example for gesture used to convey ideas, -------- (a) Nodding of Head (b) Rolling of Eyes (c) Movement of Lips (D) All the Above 2.22 Written communication is transmitted thro’ ------- (a) Letters (b) Memos (c) Bulletins (D) All the Above……. 2.23 A long channel of communication may lead to ------ (A) Delays (b) Errors (c) Misunderstanding (d) All the Above 2.24 Motivation are not associated with monetary rewards (a) Positive (b) Extrinsic (c) Negative (D) Non-Financial 2.25 Method of motivation may be ———— (a) Positive (b) Negative (C) Positive or Negative (d) None of the Above 2.26 Awareness of unsatisfied needs creates ———— (A) Tension (b) Tired (c) Pleasure (d) None of the Above 2.27 Indirect compensations are ———— (a) Free Housing (b) free voyage (c) Medical Facilities (D) All the Above 2.28 ....... is a process of selection from a set of alternative courses of action (a) Communication (B) Decision-Making (c) Planning (d) Staffing 2.29 Decision-making ensures optimum use of the enterprise resources of (a) Men (b) Material (c) Machinery (D) All the Above. 2.30 In ……..suggestions are given by middle and lower management . a. planning b. Organizing C. Forecasting d. All the Above

III. Answer The Following Questions Using Either (√ ) OR ( χ ) Only: 3.1 Management applies to large organization only. f 3.2 Management is not a combination of an art, a science and a profession. 3.3 Flat structure of management is one which develops, a large number of management levels, and more centralized decision making. r 3.4 Top level management devote more time to organizational and directional functions. f 3.5 Lower level management they are concerned with direction and controlling function of management. r 3.6 Management decisions are influenced by objectives and policies of the organizations r 3.7 Administration main functions are directing and organizing . f 3.8 Middle level management concerned more with administration functions than management functions . f 3.9 Planning is done by every one at every level of Management r 3.10 Planning is the primary functions of management r 3.11Administration is a top-level function . r 3.12 Dispersal of authority is known as Decentralization r

3.13 A superior can delegate both authority and responsibility f

3.14 Authority is the individual power given to a manager in order to use the organizational resources. r 3.15 Responsibility is the obligation to perform the tasks and accounts for their completion…r 3.16 Responsibility of an individual in the organization is always downward , that is, the subordinate is responsible to his or her superior. f 3.17 Non-financial motivation creates a sense of fear f 3.18 Planning determines in advance what should be done, why, where and how it should be done. r 3.19 Staffing includes man power planning, recruitment, selection, placement ..etc. r 3.20 Interview is used to accept or to know more or to reject the candidates such as achievement, Intelligence, Personality, and Interest tests. f 3.22 Selection tests are used to find out overall suitability of candidates for the jobs based on Education, knowledge ,skills and experience . f 3.23 Autocratic leadership style is suitable when sub-ordinates are lazy and avoiding duties r 3.24 Communication means exchange of ideas, facts and information. r 3.25 Directing is a process of checking actual performance against standard performance f 3.26 Planning means prediction about future. f 7. Decision making involves selection of the best alternative. r 3.27 quantitative forecasting techniques involved use of various statistical data for future. r 3.28 Qualitative forecasting technique involved prediction about future. r 3.29Transfer , promotion ,termination and layoff are considered one of Staffing functions r 3.30 Directing is used to ensure productivity is gowning up instead of decreasing r



I. ANSWER THE FOLLOWING QUESTIOS : 1.1 What meant by manager ?Explain briefly the functions of manager 1.2 Mention the main categories of manager roles and the different types of manager, s role

in each category . 1.3 Explain briefly the categories of skills required for the manager. 1.4 Explain briefly the types of personal skills required for the manager 1.5 Analyze different types of skills required by Managers at different management levels

using suitable diagram .

II. Select The Correct Answer For The following Questions : 2.1 The function of management that determines the objectives of business and how best to

achieve them is called: a. Planning… b. organizing c. leading d. controlling

2.2 The function of management that involves monitoring performance, comparing results with planned objectives, and providing feedback and, if necessary, correction is called: a. Planning b. organizing c. leading d. controlling…. 2.3 The function of management concerned with demonstrating by example and by teaching,

directing, and motivating employees to perform effectively to achieve the objectives of the organization is called: a. Planning b. organizing c. leading…. d. controlling

2.4 The function of management that arranges appropriate staffing and assigns responsibilities and tasks to individuals and groups, in order to best achieve the objectives established by planning is called:

a. Planning b. organizing…. c. leading d. controlling 2.5 The titles Chairman, CEO and COO are examples of:

a. Top management… b. middle management c. first line management d. entrepreneur

2.6 The ability to think in abstract terms, to analyze and diagnose problems, and to make use of lateral thinking is called:

a. analytical skills. b. conceptual skills… c. decision-making skills d. communication skills.

2.7 Which of the following is not an example of a decisional role? a. resource allocator b. disturbance handler c. negotiator d. figurehead…..

2.8 According to Mintzberg, managerial roles can be broken down into interpersonal, informational, and

a. liaison b. decisional…. c. technical d. conceptual 2.9 Conceptual skills are most important to what level of management?

a. first line managers b. middle managers. c. functional manager d. top managers….

2.10 In what order do managers typically perform the managerial functions?

a) organizing , planning, controlling, leading b) organizing , leading, planning, controlling

c) planning, organizing , leading, controlling… d) planning, organizing , controlling, leading

2.11 Which one of the following is not one of Drucker's five guiding principles of management?

a) Making people's strengths effective and their weaknesses irrelevant

b) Enhancing the ability of people to contribute.

c) To operate the organization’s status system….

d) Integrating people in a common venture by thinking through, setting and

exemplifying the organizational objectives, values and goals. 2.11 What are the three interpersonal roles of managers?

a) Figurehead, leader and liaison….. b) Spokesperson, leader, coordinator c) Director, coordinator, disseminator d) Communicator, organizer, spokesperson

2.12 At what level of an organization does a corporate manager operate? a) Functional b) Operational c) Middle level d) Top level ….

2.13 What is the guiding principle behind New Public Management? a) Profit maximization b) Introducing private sector business principles into the public sector …. c) Replacing public management with private sector management d) Restructuring public organisations

2.15 Which one is not a recognized key skill of management? a) Conceptual skills b) Human skills c) Technical skills d) Writing skills…

Principle Of Management MNG 111

Week Topic 1 Introduction: management ,principle, role and Technique )

2 Management Modern approaches( Models): MBO& MBE

3 Management Modern approaches( Models): MBO& MBE

4 Types & Levels of Management 5 Management Functions : Planning (Principle , types , steps and rules ) 6 Management Functions: Organizing ( organizational Structure ,

centralization & decentralization ) 7 Management Functions: Organizing( delegation , formalization, and

departmentalization) 8 Mid Term Exam.

9 Management Functions: Staffing(Aims , Functions , Selection Criteria)

10 Management Functions: Directing ( Leading)( Elements ,Supervision, communication ,motivation, leadership)

11 Management Functions: Controlling (Types , Steps , Deviations Classification & Management , Corrective & Preventive actions )

12 Management Functions: Forecasting – Decision Making 13 Functions, Roles, and Skills of Managers 14 Final Exam.

References 1. Principles of Management By Ellen A. Benowitz, M Ed , 2001, Hungry Minds, Inc.

ISBN: 0-7645-6384-X , New York 2. Management Principles (v. 1.0). Dec .2012 , (http://lardbucket.org)

3. PRINCIPLES MANAGEMENT ,Publisher: TAMILNADU TEXTBOOK CORPORATION , Government of Tamilnadu , First Edition – 2010, By: Tmt D. VAIJAYANTHI ,Tmt M. A. ZEHRAJA BEEN , Tmt NIRMALA RAVINDRAN , Tmt V.S. JAMES SAHAYAM 4. Management Fundamentals Concepts, Application, Skill Development – Robert Lusier –, Thompson, 2007.

5. Management – Stephen Robbins:, 17th Edition, Pearson Education / PHI, 2003.

http://lardbucket.org/

http://lardbucket.org/

إسم الطالب: رقم الطالب :HIGHER TECHANOLOGICAL INSTITUTE

10th of Ramadan City Sep Subject: Principle of Management,G1 Quiz1: Jan/May, 2019

Examiner: Dr. Hosny Abouzeid Time: 20 min.

I. Answer Two Of The Following Questions 1.1 Explain briefly six from the principles of management . 1.2 Mention four advantages & and four disadvantages of MBO? 1.3 Define MBE . Mention the phases of MBE .

II. Select The Correct Answer For The following Questions : 2.1 Top Management consists of ..... (a) Foreman (b) Finance Manager (c) Board of Directors (d) Supervisor. 2.2 …... aims to co-ordinate the individual goals with the top organizational goals (a) MBO (b)MBE (c) Staffing (d) Controlling 2.3 Optimum utilization of the available resources is considered one of the management : a) Principle b) Role c) Nature d) ) techniques

III. Answer The Following Questions Using Either (√ ) OR ( χ ) Only: 3.1 MBO provides a tool for Performance Evaluation to superiors 3.2 Tall structure is one of management levels which develops narrow management span and more centralized decision making 3.3Top management devote more time in organizational and direction functions

Model Answers Answer Q1 : The six Principles of Management are : 1. Division of work : Total work of an organization is divided into small manageable units . 2. Authority and responsibility : The Manager gives his order directly to the subordinate after that he should take the responsibility for the work done by them. 3. Work Discipline : Should be followed by all the employees to let organization running smoothly . 4. Unity of Command : Every subordinate should receive orders and be accountable to only one superior , to avoid conflicting orders and ensures organization stability . 5. Unity of Direction : Means that each group of activities having the same objective must have one head and one plan. 6. Individual Interest must be coincides with general organization . When there is conflict between the two, interest of the organization should prevail over individual interest. 7. Motivation methods should be fair and provide maximum possible satisfaction to both

employees and employers. 8. Centralization and Decentralization : Should be based upon optimum utilization of all

the personnel in each case. 9. Flow Scalar Chain authority : There should be a clear line of authority ranging from top to bottom of the organization . 10. Order : This principle is concerned with the arrangement of things and the placement of people in its proper place . 11. Equity : Equity implies that employees should be treated with justice and kindness. 12. Stability & Security Of Personnel : Employees cannot work efficiently unless job security is assured to them. 13. Initiative : Initiative refers to the freedom to think for oneself in doing work and formulation & execution of plans. 14. Team work spirit : This refers to harmony and mutual understanding among the members of an organization. Answer Q2 :

Four MBO Advantages 1) Result Oriented Approach . 2) Goals are never imposed forcefully to anyone. They are decided by all parties. 3) High Morale of Employee due to participation of superiors & clarity of goals . 4) Effective Planning which is standardized for the action plan. 5) It Facilitates Control for the performance as compared with standard one. 6) It gives reasonable freedom to lower level management and increase mutual understanding between superior &sub-ordinates while achieving objectives. 7) Contributes for the installation of a democratic and participative setup essential for the success of an organization in a complex business environment of today.

Four MBO disadvantages 1) It is time consuming process as it includes setting of objectives & responsibility with careful consideration for every action. 2) It increases paper work for example written policy, manual, instruction cards, reports. 3) It creates organizational problem in setting objectives between superior & subordinate. 4) Problem of goal setting , if objects are not set properly with particular responsibility and are not agreed by all. 5) Conflicting objectives between individuals or departments which may result in lack of co-ordination among different parties. 6) Secret can’t be maintained as MBO involves participation of superior & sub-ordinate . Some important matters should be kept with top level management, because some times it is dangerous for the organization when there is leakage of information. 7) It is reward punishment approach which creates excess pressure on all executives.

Answer Q3 : MBE defined as a management technique or style by which managers concentrate , identify and isolate the exceptional or significant deviations or problems that call for decision and action .

Phases of MBE : 1. Measurement Phase 2. Projection Phase

3. Selection Phase 4. Observation Phase 5. Action Phase

إسم الطالب: رقم الطالب :HIGHER TECHANOLOGICAL INSTITUTE

10th of Ramadan City Sep Subject: Principle of Management,G7 Quiz2: Jan/May, 2019

Examiner: Dr. Hosny Abouzeid Time: 20 min.

I. Answer Two Of The Following Questions 1.1 Define each of the following terms : centralization , decentralization , and formalization Of authority? 1.2 What is meant by staffing? Mention five functions of staffing ? 1.3 What are the importance of directing in any organization?

II. Select The Correct Answer For The following Questions : 2.1 Planning is .....oriented. (a) Past (b) Future (c)Present (d) none of the above 2.2 The formal and lawful right of a manager to make decisions, give orders, and allocate resources is known as ______. a. accountability b. power c. authority d. responsibility 2.3 ......... helps the enterprise to know whether the plan has been successfully implemented (a) Controlling (b) Motivation (c) Directing (d) None of the Above.

III. Answer The Following Questions Using Either (√ ) OR ( χ ) Only: 3.1 Planning determines in advance what should be done, why, where and how it should be done. 3.2 A superior can delegate both authority and responsibility 3.3 Staffing includes man power planning, recruitment, selection, placement ..etc.

Model Answers A1.1 : - Centralization is the systematic and consistent reservation of authority at central Points within an organization where many important decisions are made .

- Decentralization refers to the systematic effort to delegate and transfer of authority in the organization to the top to lowest levels of authority .

- Formalization is the extent to which an organization’s policies, procedures, job descriptions, rules and regulations are written to control & direct employee behavior and reduces ambiguity (misunderstanding) .

A1.2 : “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed in the structure”.

Five Functions of Staffing (a) Manpower planning involving determination of the number and the kind of personnel

required. (b) Recruitment for attracting adequate number of potential employees to seek jobs in the enterprise. (c) Selection of the most suitable persons for the jobs under consideration.

(d) Placement, induction and orientation to fill the roles designed on the structure . (e) Transfers, promotions(move to higher rank), termination and layoff.

(f) Training and development of employees. (g) Remuneration(give bonus) Is key in terms of attracting the right talent without damaging the organization’s finances.

Importance of Directing

- It helps strengthen the operational capability of the organization.

- It ensures that the different parts of the organization are working better together . - Directing is a bridge between the operational needs and the human requirements of its

employees. - It creates a link between the necessity of turning in a profit, with the need of keeping

employees motivated and interested.

- Ensures productivity is going up instead of decreasing .

I. Answer The Following Questions 1.1 Define Management . Mention six items from the nature of Management. 1.2 Explain why management is art, science and profession . 1.3 Explain briefly the modern management techniques . 1.4 Define Management by objectives(MBO).Explain briefly the steps in MBO process . 1.5 Mention four advantages & and four disadvantages of MBE? 1.6 Explain the main difference between MBO & MBE . 1.7 Explain briefly the different levels of Management . 1.8 Mention 6 roles for the top level of management . 1.9 Explain briefly the difference between administration and Management .

II. Select The Correct Answer For The following Questions : 2.1 All activities of management are : (a) Nature Oriented (b) Work Oriented (C) Goal Oriented (d) Business Oriented. 2.2 …..... concerned with laying down suitable policies for the whole concern . (a) Administration (B) Management (c) Manager (d) Auditor 2.3 In large organization , Department heads are considered as : a) Top management B) Middle Management c) lower management d) none of the above 2.4 In large organization , supervisors are considered as : a) Top management b) Middle Management C) lower management d) none of the above 2.5 The level of management which increase span of management and more decentralized in decision making is called : a) Top level b) Middle level c) Lower level D) Flat structure .

III. Answer The Following Questions Using Either (√ ) OR ( χ ) Only: 3.1 Management By Exception is a process where superior and managers of an organization jointly defined its common goals . 3.2 Middle management level deals with long term strategies and devote more time in administrative activities . 3.3 In MBO , goals are never imposed forcefully to anyone . 3.4 Using MBO as management approach , can leads to complex procedures and time delays .

The Higher Technological Institute (HTI)

Department of Mechanical Engineering

Subject: Principles Of Management Code: MNG11101

Examiner: Dr. Hosny Abouzeid Time: 80 min

Exam Type: Mid Term Exam. Term: Jan/May 2019

3.5 The higher level management denote more time on directing and controlling worker’s performance .

Model Answers For Principles Of Management Mid Term Exam.,G1 , Jan/May 2019 Answer Q1.1 :

- Management is the "art of getting things done through people."( Mary Parker) - "Management is the art of getting things done through others and with formally organized groups."( Harold Koontz). - Management is definite process consisting of planning ,organizing ,staffing ,leading, and controlling, utilizing both in each science and art, and followed to accomplish

. predetermined objectives of organization ( George R. Terry) )إنجاز( - “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.” ( Taylor Def.) - “Management is the accomplishment of results through the efforts of other people utilizing the physical and human resources for achieving organizational goals .” (Lawrence Def.)

Modern Definitions Of Management - “ Prime mover of organization making it functional and productive” - “Process of creating conductive and proper internal environment in the organization” . - “ Process of dealing well with changing external environment by relating strengths and weakness of organization with it “.

Nature Of Management 1. Management is an integrating process which includes planning, organizing, directing and controlling to achieve the organization objectives . 2. Management is concerned with the efforts of a group 3. Management applies economic principles. 4. Management is goal-oriented and involves decision making. 6. Management co-ordinates all activities and resources. 7. Management takes into consideration the existing situations and advice best way of doing things . 8. Management is the combination of art, science and profession.

Answer Q1.2 : 8.1 Management is an art means use of :creativity ,skills ,technical know how and directed

to getting results . 8.2 Management is a profession because it involves knowledge and application of

it , besides social responsibility as its aim should not be only profit maximization, but they have to follow certain rules for social responsibilities as shown in the following figure .

8.2 Management is a Science as it based on certain principles is it divided into :

Physical science & Social science because it deals with human being.

Answer Q1.3 : Modern Management Techniques

A. Statistical techniques: As Regression analysis- Forecasting and time trends –

Decision theory and tree .

B. Activity analysis : As Time motion study – Work sampling & activity analysis –

Gantt chart & work schedule .

C. Mathematical techniques : As Simulation and modelling – System analysis –

Linear proramming – Net work analysis – PERT –CPM

D. Financial techniques : As Monitoring expenditure – Cost accounting and analysis -

Cost Benefit Analysis – Performance analysis .

E. Miscellaneous : As Management By Objectives & Evaluation by results – Management

By Exception – Situation analysis – Current state assessment .

Answer Q1.4 : Management by objective can be defined as “a management model that attempts to devise a common objective or goals that is acceptable for both the management and employees, which will improve the overall performance of the organization from available resources“. OR “MBO is a process whereby the superior, managers and subordinate of an organization jointly identify the common goals, define each individual’s major areas of responsibility in terms of the results expected of him, and use these resources as guides for operating the unit and assessing the contribution of each of its members”.

The M.B.O approach includes following steps:-

1) Identifying the Key Results Areas (KRAs) This is done by top management using discussion and SWOT Analysis( Strengths, Weakness

,Opportunities and Threats). This finalized in the joint meeting of superior & sub-ordinates.

2) Setting Objectives In this stage the objectives for the whole organization to be achieved are decided by all concern parties &key results areas are also finalized.

3) Developing Action Plan Such action plan for the whole organization is prepared jointly based on objectives & useful or suitable follow up for achieving objectives.

4) Conducting Periodical Review Periodical review is useful for execution of action plan. If there is any deviation remedial

action can be taken.

5) Performance Appraisal( evaluation ):- MBO provides a tool for performance appraisal to superiors. It helps to improve the

performance of staff in future .

Answer Q1.5 : Four Advantages Of MBE

(5) Save time as it allows the manager to devote more time for important issues . (6) It enables the manager to decide when and where he should pay his attention only for

crisis and critical problems. (7) Lesser number of decisions is required to be taken, which enables the manager to go

into detail to be able to make better decisions. (8) The subordinates are given authority to make decisions on certain matters without any

interference by the executives. (5) The management is also able to utilize the available talent at the lower levels

Four Limitations Of MBE

1. It requires a comprehensive observing and reporting system.

2. It increases paper work. 3. The system is silent till the problem becomes critical. 4. There is no parameter available by which one can differentiate important deviations from the unimportant ones. 5. Some important factors, like human behavior, are difficult to measure. 6. Only an organization that has a perfect system of control will be able to employ the technique of MBE 10. Mistakes in calculations the budgets can lead to higher variances and finding the root

causes can be a time-consuming task. 11. Dependency on accounting department is too high, and the probability of accurate

forecasting is questionable. 12. Important decisions will be with senior management and participation of employees is

less. This can be a demotivating factor.

Answer Q1.6 : The main difference between MBO & MBE

Characteristics MBO MBE Employee Participation

it needs a common objective acceptable for management and employees

in objective setting and decision making is rested with senior management.

Role Ambiguity the clarity of personal responsibility towards organizational goals is better

The clarity will be lacking..

Dependency the dependency on one department or group is less .

the dependency on one department is high .

Efficiency delays in decision making can lead to reduce efficiency.

the time devoted to daily work is more which can result in better efficiency.

Answer Q1.7 :

Two Levels Of Management 1.Tall structures : Tall structure is one which develops narrow span of management, a

Large number of management levels, and more centralized decision making. 2. Flat structures : Flat structure is that which reduces the level of management,

widens span of control of managers at various levels of the organization, and is often more decentralized with regard to decision-making autonomy.

Three Levels Of Management : Includes Top , Middle and low level Management

Answer Q1.8 :

6 roles for the top level of management . a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets,

procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for middle level i.e. departmental managers. e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction. h. It responsible towards the shareholders for the performance of the enterprise.

Diagram of Level Of Management

Answer Q1.9 :

The difference between administration and Management

II. Select The Correct Answer For The following Questions :

III. Answer The Following Questions Using Either (√ ) OR ( χ ) Only:

Principle Of Management - Higher Technological Institute

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