Module 2
Management for Engineers
BIJESH R
ASSISTANT PROFESSOR
GEC Thrissur
Functions of management
Forecasting
Planning
Organizing
Staffing
Directing
Motivating
Coordinating
Controlling
(1)Forecasting
A technique of anticipation.
Systematic analysis of past and present circumstances.
Prediction of change.
Estimation of future work.
Sales forecast, Production Forecast, Cost forecast, Finance, purchase etc.
(2)Planning
Preparation for action.
Determining the objectives and formulating the methods to achieve them.
A job well planned is half done….!!!
Visualizing the future course of action.
Analysis of information.
Determination of goals.
Develop methods.(Decision making)
Planning…
• What am I trying to accomplish i.e. what is my objective?
• What resources do I have and do I need to accomplish the same?
• What are the methods and means to achieve the objectives?
• Is this the optimal path?
Steps for planning
Determination of objectives.
Forecasting to assist planning.
Decide planning period.
Collection, classification and processing of information.
Decide course plans.
Selection of best plan.
Subsidiary plan to master plan.
Types of Planning
1. Rolling Planning:- Very short term plan which changes from day to day
2. Short range planning: Given for a short period say one to three months. In
some large industries, half yearly plan also short range plan
3. Long range plan: Given for long period which ranges from half an year to five
years.
Eg: The five year plan given by the planning commission in India
4. Perspective plan: Made with long vision and long periods from five years to
twenty years(Even 50 years).
Eg: Vision 2020 of Abdul Kalam
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Types of planning
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Advantages of planning
Maximum utilisation of recourses.
Minimisation of unproductive work.
Reduces uncertainty.
Facilitates effective delegation of authority.
Basis of managerial and control actions.
Improves motivation.
(3) Organizing
•Assigning the planned tasks to various individuals or groups within
the organization and cresting a mechanism to put plans into action.
Process of deciding
where decisions will be made
who will perform what jobs and tasks.
and who will report to whom in the company.
Organizing –people-materials-work-time etc.
Process of Organising (Steps in organising)
1. Determination of objectives, strategies, plans, and policies.
2. Determination of activities
3. Separation and grouping of activities
4. Delegation of authority
5. Delegation of responsibility
6. To establish inter-relationships
7. Providing physical facilities and proper environment
8. Preparation of organisation chart
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Principles of Organization
Unity of Objectives
Principle of specialisation
Principle of co ordination
Principle of unity of command
Principle of Span of control
Principles of Organisation_Cont.
Principle of exception
Principle of flexibility
Principle of simplicity
Principle of responsibility
Principle of balance
Principle of scalar chain
Principle of Efficiency
Principle of Communication
Principle of Span of control
Span of control:-
◦ No. of Subordinates a supervisor has.
◦ No. of persons who are directly responsible to the executive.
“No single executive should have more people for controlling and
guidance than he can reasonable manage”.
Factors affecting span of control
◦Capability/skill of the executive.
◦Capability/skill & experience of subordinates.
◦Nature of work.
◦Similarity of works of subordinates
◦Volume of task.
◦Geographical dispersion.
Formal & Informal
Organisations
Organisation structure
The framework which divides the activities into related
groups
Indicate the authority and responsibility structure
It differ from industry to industry.
◦ Size of organisation
◦ Nature of product
◦ Complexity
Types of Organisation structure
(1) Line type organisation
(2) Functional organisation
(3) Line and staff organisation
(4) Project Type Organisation
(5) Matrix organisation
(1)Line/Scalar/Military Organisation
Simplest and the oldest type.
Has only direct, vertical relationships between different
levels in the firm.
Authority flows downwards, responsibility moves upwards
in a straight line.
The scalar principle and unity of command are strictly
obeyed in this type of organisation
Line Type Organisation
Advantages
Simplicity
Clear cut authority and responsibility
Strong discipline
Unity of command
Quick decisions
Better co-ordination
Disadvantages
Lack of specialisation
Scope for favouritism
Overloading
Chance of duplication
General interest may be overlooked
Suit for only small organisations
(2) Functional Type Organisation
Suggested by F W Taylor.
Specialization.
Divides managerial activities into specific functions.
Each specialist advices all other where it required.
Functional Type Orgn.
Advantages
Separation of work
Specialisation
Narrow range with high depth
Ease in selection and training
Disadvantages
Indiscipline
Shifting of responsibility
Lack of co-ordination
Overlapping of authority
Kills initiative of workers
Increase confusion
(3) Line & Staff Type Orgn.
Ensure a proper balance between the line organization and functional
orgn.
Line officers are usually assisted by staff officers.
Line
◦ Directly involved in the day-to-day operations of the organization.
◦ Make the majority of the decisions
Staffs
◦ P As
◦ Specialised staff
Applicable for large firms
Line and staff
Line and Staff Orgn.
Line and staff Orgn.
Advantages
Specialisation
Better decisions
Lesser burden for line officers
Disadvantages
Expensive
Conflict b/w line and staff authorities
Lack of responsibility for staff
Loss of initiative for line.
(4) Project Type Orgn.
Adopted for special activities
A separate division for one time activities
Once the project completed, the team members may go back
Situations for Project Orgn.
Work is defined by a specific goal and target date for
completion.
Work is unique and unfamiliar to the organisation
Work is complex having independent activities and
specialized skills are necessary for accomplishment
Work is critical in terms of possible gains or losses.
Work is not repetitive in nature.
Project Organisation
(5) Matrix Type Organisation
Combination of Functional and Project.
People with similar skills are pooled together
Assigned to different projects and report to different managers
Matrix Type Organisation
(4)Staffing
Manpower planning
Recruitment
Selection
Orientation and placement
Training and development
Performance evaluation
Promotion and transfer
Remuneration
(5) Directing
Guiding and supervising subordinates in their activities.
Managerial decisions are put into action through effective
direction.
A person who directs needs to be a dynamic leader.
Steps in directing
Issue of orders and instructions
Telling what to do & how to do( Guiding)
Training of subordinates
Supervising the activities
Inspiring to contribute
(6) Motivating
Inspire people to intensify desire to perform.
Mental preparation of an individual to do specific job
Act of stimulation to get a desired course of action.
Motivation Psychological
Internal/ External
Important action of a leader.
Factors of motivation
Wages
Incentives
Opportunity for growth/promotion
Human relationships
Working conditions
Job satisfaction
Job security
Importance of motivation
Arouse desire to work
Appropriate use of factors of production
Reduction in labor turn over
Increase production and productivity
Increase co operation
(7) Controlling
“Verifying whether everything occurs in conformity with plans and instructions”.
Continues monitoring of performance.
Setting standards, measuring performance and corrective actions with a view to
achieve best results.
Indicates where the deviation occurred
Physical:- Man, inventory, quality
Financial:- Money and budget
(8) Co-ordinating
Integrating the efforts in order to ensure the successful
attainment of an objective.
Achieving team spirit and unity in action.
Effective communication.
Vision
Vision is an expression of what the organization wants to become, what it
wants to be, to be known as or to be known for.
It is the long-term objective of the organization.
The vision comes from the leaders – it is how they express the future for
the organization or its strategic direction.
However, it must be practical and feasible while representing a challenge
for the organization.
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Vision (Cont.)
The vision must also be shared by the members of the organization so
that everyone clearly understands what the organization is striving to
become.
To create a vision for the organization top management should identify
key potential influences on the organization over the next ten years in
terms of the economic, political, social and technological influences.
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Mission
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Strategic Planning
Strategy is the larger vision in a company that guides the plans for employees
and managers.
Strategy has its foundation in strategic thinking.
It is the determination of the long-term goals and objectives of an organization
and the courses of action and resources necessary for implementing these goals.
Strategic thinking produces strategies
In modern organizations executives included every level of the organization in
developing and implementing the overall strategy.
Strategic planning must anticipate unexpected events, randomness, and chaos to
provide a good strategy.
Good strategic planning allows a company to develop a sustainable competitive
advantage.
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Leadership
Leadership is a process by which an executive can direct, guide and influence
the behavior and work of others towards accomplishment of specific goals in a
given situation.
Leadership is the ability of a manager to induce the subordinates to work with
confidence and zeal.
Leadership is the capacity to influence a group towards the realization of a
goal.
Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.
According to Keith Davis, “Leadership is the ability to persuade others to seek
defined objectives enthusiastically. It is the human factor which binds a group
together and motivates it towards goals.”
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Importance of Leadership
Initiates action
Motivates
Provide guidance
Create confidence
Build morale
Builds work environment
Provide Co-ordination
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Qualities of a Leader
Vision and foresight
Intelligence
Communicative skills
Knowledge of work
Sense of responsibility
Self-confidence and will-power
Humanist
Empathy
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Leadership styles
Autocratic leadership style
The Laissez Faire Leadership Style
Democrative/Participative leadership style
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[Link]
◦Leader makes decisions without reference to anyone
else
◦High degree of dependency on the leader
◦The leader has complete command and hold over their
employees/team
◦The team cannot put forward their views even if they
are best for the team’s or organizational interests
◦Leader cannot be questioned
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Autocratic Style (Cont.)
Can create de-motivation and alienation of staffs
Can lead to low job satisfaction and poor morale
Can be effective in crisis situations when quick decisions need to
be made
May be valuable in some types of business where decisions need
to be made quickly and decisively
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2. Laissez Faire Leadership Style:
The leader totally trusts their employees/team to perform the job
themselves.
He just concentrates on the intellectual/rational aspect of his
work and does not focus on the management aspect of his work.
The team/employees are welcomed to share their views and
provide suggestions which are best for organizational interests
This leadership style works only when the employees are skilled, loyal,
experienced and intellectual.
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Laissez Faire Leadership Style (Cont.)
◦ Let it be’ – the leadership responsibilities are shared by all
◦ Can be very useful in businesses where creative ideas are important
◦ Can be highly motivational, as people have control over their working
life
◦ Relies on good team work
◦ Relies on good interpersonal relations
◦ Can make coordination and decision making time-consuming and
lacking in overall direction
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3. Democratic Leadership Style
The leaders invite and encourage the team members to play an important role in decision-
making process, though the ultimate decision-making power rests with the leader.
The leader guides the employees on what to perform and how to perform, while the employees
communicate to the leader their experience and the suggestions if any.
The advantages of this leadership style are that it leads to satisfied, motivated and more skilled
employees.
It leads to an optimistic work environment and also encourages creativity.
This leadership style has the only drawback that it is time-consuming.
◦ Consultative: process of consultation before decisions are taken
◦ Persuasive: Leader takes decision and seeks to persuade others that the decision
is correct
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Leadership Theories
Great man Theory
Trait Theory
Behavioural Theory
Contingency Theory
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Contingency Theory
Sometimes the success of a leader does not depend upon the qualities, traits and
behaviour of a leader alone.
The context in which a leader exhibits her/his skills, traits and behaviour matters,
because same style of functioning may not be suitable for different situations.
Thus the effectiveness of leadership also depends upon situations.
This theory proposes that no one way or style of leadership may be applicable to all
situations.
In other words, it recognizes that there might be variables influencing any particular
situation, and a leader must choose the right course of action, taking into account
those variables.
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Managerial Grid
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THANK YOU
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