Management

Meaning : Management is the art of getting things done by a group of people with the effective utilisation of
available resources. An individual cannot be treated as a managing body running any organisation. A minimum of
two persons are essential to form a management. These persons perform the functions in order to achieve the
objectives of an organization.

Definition: Management is the process of planning, organizing, directing, and controlling the resources of an
organization to achieve its goals. It is a broad term that encompasses many different activities, such as setting goals,
delegating tasks, motivating employees, and resolving conflicts.

• Management is defined as the process by which the elements of a group are integrated, co-ordinated or
utilized so as to effectively and efficiently achieve organizational objectivs – Howard M. Caslisle

• Management is the art and science of decision making and leadership –Donald J. Clough

FEATURES OR CHARACTERISTICS OF MANAGEMENT

1. Art as well as science: Management is both an art and a science. It is an art in the sense of possessing of
managing skill by a person. In another sense, management is the science because of developing certain
principles or laws which are applicable in a place where a group of activities are coordinated.
2. Management is an activity: Management is the process of activity relating to the effective utilisation of
available resources for production. The term ‘resources’ includes men, money, materials and machine in the
organisation.
3. Management is a continuous process: The process of management mainly consists of planning, organising,
directing and controlling the resources. The resources (men and money) of an organisation should be used
to the best advantages of the organisation and the objectives to be achieved.
4. Management achieving pre-determined objectives: The objectives of an organisation are clearly laid down.
Every managerial activity results in the achievement of objectives fixed well in advance.
5. Management is a discipline: The boundaries of management are not exact as those of any other physical
sciences. It may be increased by the continuous discovery of many more aspects of business enterprise. So,
the management status as a discipline is also increased in the same manner.
6. Decision-making: There are a number of decisions taken by the management everyday. Decision making
arises only when there is availability of alternative courses of action. If there is only one course of action,
need for decision-making does not arise.
7. Management aims at maximising profit: The available resources are properly utilised to get desired results.
The results should be the maximising profit or increasing profit by the economic function of a manager.
8. Universal application: The principles and practices of management are applicable not to any particular
industry alone but applicable to every type of industry. The practice of management is different from one
organisation to another according to their nature.
9. Management is getting thing done: A manager does not actually perform the work but he gets things done
by others. According to Knootz and O’Donnel, “management is the art of getting things done through and
with people in formally organised groups.”
10. Management as a class or a team: A class may be defined as a group of people having homogenous
characteristics to achieve common objectives. Engineers and doctors are grouped as a class in a society. Each
and every doctor has the same objectives in life

Evolution of Management Thoughts

The field of management has evolved over time as different thinkers have proposed different theories and concepts.
Some of the most important contributions to the evolution of management thought include:

 Scientific management: This approach, developed by Frederick Taylor in the early 1900s, focused on
improving efficiency and productivity through scientific methods.
  Classical management: This approach, by Henry Fayol in the early 1900s, focused on the functions of
management, such as planning, organizing, and controlling.
 Human relations: This approach, developed in the mid-20th century, focused on the importance of
employee satisfaction and motivation.
 Systems approach: This approach, developed in the late 20th century, views organizations as systems that
interact with their environment.
 Contingency approach: This approach, developed in the late 20th century, emphasizes the importance of
adapting management practices to the specific situation.

FUNCTIONS OF MANAGEMENT
 Planning: Planning is the process of setting goals and developing strategies for achieving them. It involves
identifying the organization's strengths and weaknesses, as well as the opportunities and threats in its
environment. Once the organization's goals have been defined, managers need to develop strategies for
achieving them. These strategies should be specific, measurable, achievable, relevant, and time-bound.

For example, a marketing manager might plan a campaign to promote a new product. This would involve identifying
the target market, developing a message, and selecting the right channels to reach the target market.

 Organizing: Organizing is the process of allocating resources and assigning tasks to employees. It involves
creating a structure for the organization that will allow it to achieve its goals. This structure should be clear,
concise, and easy to understand. Managers need to make sure that the right people are assigned to the right
tasks and that they have the resources they need to be successful.

For example, a production manager might organize the workforce to produce a product. This would involve breaking
down the production process into smaller tasks, assigning each task to a team of employees, and providing the
teams with the necessary resources.

 Directing: Directing is the process of communicating with employees, motivating them, and providing them
with feedback. It involves creating a positive work environment where employees feel valued and motivated.
Managers need to communicate their expectations clearly and provide regular feedback to employees. They
also need to motivate employees to achieve their goals and to overcome challenges.

For example, a sales manager might direct the sales team to meet sales goals. This would involve setting clear goals,
providing regular feedback, and motivating the team to achieve those goals.

 Controlling: Controlling is the process of monitoring the performance of the organization and taking
corrective action when necessary. It involves setting standards, measuring performance against those
standards, and taking corrective action when necessary. Managers need to identify areas where the
organization is not meeting its goals and take steps to improve performance.

For example, a quality control manager might control the quality of products. This would involve setting standards
for quality, measuring the quality of products, and taking corrective action when necessary.

 Staffing: Staffing is the process of recruiting, selecting, and developing employees. It involves finding the
right people for the right jobs and providing them with the training they need to be successful. Managers
need to develop a staffing plan that will help the organization achieve its goals. They also need to select and
develop employees who are capable of meeting the organization's needs.

For example, a human resources manager might staff the organization with qualified employees. This would involve
identifying the skills and experience that are needed for each job, recruiting qualified candidates, and selecting the
best candidates for the jobs.

 Leading: Leading is the process of inspiring and motivating employees to achieve the goals of the
organization. It involves creating a shared vision for the organization and helping employees to see how their
work contributes to that vision. Managers need to be able to motivate employees, build trust, and create a
positive work environment.
For example, a CEO might lead the organization to achieve its goals. This would involve setting a clear vision for the
organization, communicating that vision to employees, and motivating employees to achieve that vision.

 Problem-solving: Problem-solving is the process of identifying and resolving problems that affect the
organization. It involves identifying the root cause of the problem, developing solutions, and implementing
those solutions. Managers need to be able to identify and solve problems quickly and efficiently.

For example, a manager might solve a problem by identifying the root cause and developing a solution. This might
involve talking to employees, reviewing data, or conducting experiments.

 Decision-making: Decision-making is the process of choosing the best course of action for the organization.
It involves weighing the pros and cons of different options and making a decision that is in the best interests
of the organization. Managers need to be able to make decisions quickly and effectively, even when there is
no clear right or wrong answer.

For example, a manager might make a decision by weighing the pros and cons of different options. This might
involve considering the costs and benefits of each option, as well as the risks and rewards.

 Communicating: Communicating is the process of exchanging information with employees, customers, and
other stakeholders. It involves listening, speaking, writing, and using technology to communicate effectively.
Managers need to be able to communicate clearly and concisely, both verbally and in writing. They also need
to be able to listen effectively and to build relationships with others.

For example, a manager might communicate with employees by giving presentations, writing emails, or holding
meetings.

Levels of Management
The chain of superior-subordinate relationships is known as the Levels of Management. The three levels of
management are Top Level Management, Middle-Level Management, and Operational Level Management.

1. Top Level Management

The senior most executives of the organization are found at the top level of an organization’s management
consists of the Board of Directors, Managing Director, Chairman, Chief Executive Officer, Chief Operating
Officer, Vice-President, President, General Manager, and other Senior Executives. The managers at the top
level of management of an organization are responsible for its survival and welfare. These managers
perform stressful and complex work that demands long hours and commitment towards the company.
Some of the common tasks of top management include:
 Setting the organization's goals and objectives
 Developing strategies to achieve the goals and objectives
 Allocating resources to the different departments or divisions of the organization
2. Middle Level Management
The next level of management is the Middle Level, which serves as a link between the Top Level
Management and the Lower Level Management. The middle level management is superior to the lower or
operational level management and subordinate to the top level management. The middle level of an
organization’s management consists of different functional department heads, such as Departmental
Managers including Production, Purchase, Finance, Personnel, Marketing Managers, and other executive
officers for different departments such as plant superintendent, etc. The employees or members of the
middle level management are responsible to the top level management for their performance.
Some of the common tasks of middle management include:
 Setting goals for their departments or divisions
 Developing plans to achieve the goals
 Monitoring the performance of their departments or divisions
 Motivating and leading their employees

3. Lower Level Management

The last level of management is the lower level management and is also known as the Supervisory or
Operational Level Management. The managers at the lower level of management play a crucial role
in the proper management of an organization, as they directly interact with the actual work force and
interpret the instructions of the middle level managers to them. The responsibility and authority of the
lower level managers depend upon the plans and policies formed by the top level management. The lower
level management consists of foremen, supervisors, section officers, superintendents, and other managers
who have direct control over the operative employees of the organization.
 Directing the work of employees
 Providing feedback to employees
 Resolving problems that may arise
 Ensuring that employees are working effectively and efficiently

Contributions of F.W. Taylor

Frederick Winslow Taylor (1856-1915) was an American engineer who is considered the father of scientific
management. He is best known for his time-and-motion studies, which he used to identify the most efficient way to
perform tasks. Taylor also developed a number of other management principles, such as the use of incentives and
the separation of planning from execution.

Taylor's work had a profound impact on the field of management. His time-and-motion studies helped to improve
efficiency and productivity in many industries. His principles of scientific management are still used today by
managers in a variety of settings.

Scientific Management:

Time and Motion Studies: Taylor conducted time and motion studies to analyze work processes and find
ways to improve efficiency. For example, he studied bricklayers to determine the most efficient way to lay bricks.

Efficiency and Productivity: Taylor's focus was on increasing efficiency and productivity. He introduced
piece-rate payment systems to incentivize workers to produce more.

Standardization: Taylor advocated for standardizing work methods to eliminate inefficiencies. He emphasized
the "one best way" to perform a task.
Contributions of Henry Fayol
Henry Fayol (1841-1925) was a French industrialist who is considered one of the founders of classical management.
He developed a list of 14 principles of management, which are still widely used today. These principles include the
division of work, unity of command, and scalar chain of command.

Fayol's work helped to systematize the field of management. His principles provide a framework for understanding
the different functions of management and how they can be used

Principles of Management:
Fayol's 14 Principles: Henry Fayol's principles, such as unity of command, division of labor, and scalar chain,
provided a framework for effective management. For example, the principle of unity of command suggests that each
employee should receive orders from only one superior, avoiding conflicts.

Scientific Management
1. Science, not the Rule of Thumb-

This rule focuses on increasing the efficiency of an organisation through scientific analysis of work and not with the
‘Rule of Thumb’ method. Taylor believed that even a small activity like loading paper sheets into boxcars can be
planned scientifically. This will save time and also human energy. This decision should be based on scientific analysis
and cause and effect relationships rather than ‘Rule of Thumb’ where the decision is taken according to the
manager’s personal judgement.

2. Harmony, Not Discord-

Taylor indicated and believed that the relationship between the workers and management should be cordial and
completely harmonious. Difference between the two will never be beneficial to either side. Management and
workers should acknowledge and understand each other’s importance. Taylor also suggested the mental revolution
for both management and workers to achieve total harmony.

3. Mental Revolution-

This technique involves a shift of attitude of management and workers towards each other. Both should understand
the value of each other and work with full participation and cooperation. The aim of both should be to improve and
boost the profits of the organisation. Mental Revolution demands a complete change in the outlook of both the
workers and management; both should have a sense of togetherness.

4. Cooperation, not Individualism-

It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and the management.
Managers and workers should have mutual cooperation and confidence and a sense of goodwill. The main purpose is
to substitute internal competition with cooperation.

5. Development of Every Person to his Greatest Efficiency-

The effectiveness of a company also relies on the abilities and skills of its employees. Thus, implementing training,
learning best practices and technology, is the scientific approach to brush up the employee skill. To assure that the
training is given to the right employee, the right steps should be taken at the time of selection and recruiting
candidates based on a scientific selection.

14 Principles of Management
.
Who Was Henry Fayol?

A French mining engineer, Henry Fayol is well-renowned as the 'Father of Modern Management
Theory'. Fayol worked at the French mining company Commentry-Fourchambault and Decazeville,
where he started as an engineer but worked his way up to become the general manager and then
the organization's director from 1888 to 1918. When Foyal took on the managerial role at the
mining company, he chose to rely not on his technical skills but on his ability as an organizer and
his skills at handling people.

Widely influential in the early 20th century, Henri Foyal wrote the book on management theories
and work organization, "Administration Industrielle et Générale." Henri Foyal introduced theories
that could be applied to all levels of management and for any department. Organizations and
managers still practice Foyal's principles of management to ensure an efficient and successful
business.

Henri Foyal developed the 14 principles of management towards the tail end of the industrial
revolution. It was the perfect timing too, the world had been subjected to massive changes, and
new and improved working styles were the need of the moment. Therefore, Fayol's Principles of
Management influence the present management theory quite significantly.

Henry Fayol’s 14 principles of management look at an organization from a top-down approach to help managers get
the best from employees and run the business with ease. Let’s take a look at them and understand them in detail.

1. Division of Work

The first Henry Fayol principle of management is based on the theory that if an employee is given a specific task to
do, they will become more efficient and skilled in it. This is opposed to a multi-tasking culture where an employee is
given so many tasks to do at once. In order to implement this principle effectively, look at the current skill sets of
each employee and assign them a task that they can become proficient at. This will help them to become more
productive, skilled, and efficient in the long run.

Example: At a school, every department has a different responsibility, like academics, sports, administration,
sanitation, food, beverages, etc. These responsibilities are taken care of by employees specializing in that particular
department, increasing efficiency and productivity and making them specialists in their field.

2. Authority

This henry fayol principle of management states that a manager needs to have the necessary authority in order to
ensure that his instructions are carried out by the employees. If managers did not have any authority, then they
would lack the ability to get any work done. However, this authority should come along with responsibility.
According to Henri Fayol, there should be a balance between authority and responsibility

Example: If an employee has been responsible for managing the decor department while planning an event but has
no authority to make design decisions or contact the vendors to get the work done, no efficiency or productivity will
be achieved.

3. Discipline

This principle states that discipline is required for any organization to run effectively. In order to have disciplined
employees, managers need to build a culture of mutual respect. There should be a set of organizational rules,
philosophies, and structures in place that should be met by everyone. Bending rules or slacking should not be
allowed in any organization. In order to achieve this, there is a need for good supervision and impartial judgment.

Example: Every employee must follow certain rules and regulations and keep a disciplined attitude in the workplace
for smooth working and efficient results.
4. Unity of Command

This principle states that that should be a clear chain of command in the organization. The employees should be
clear on whose instructions to follow. According to Fayol, an employee should receive orders from only one
manager. If an employee works under two or more managers, then authority, discipline, and stability are
threatened. Moreover, this will cause a breakdown in management structure and cause employees to burn out.

Example: If in a company, an employee has been given a task to finish within 3 to 4 hours as ordered by their
immediate superior. But the head of the department asks them to deliver the task within 1 hour. In this case, no
unity of command can create confusion and pressure in the workplace.

5. Unity of Direction

This henry fayol principle of management states that the work to be done should be organized in such a way that
employees work in harmony towards the same objective, using one plan, under the direction of one manager. The
different activities can be broken down for different sub-managers, but they should all work towards a common goal
under the direction of one main person in charge of the whole thing.

Example: Different sets of activities within a department should be managed by different managers to avoid
confusion and lesser efficiency within the workflow.

6. Collective Interest Over Individual Interest

This principle states that the overall interest of the team should take precedence over personal ones. The interest of
the organization should not be sabotaged by the interest of an individual. If anyone goes rogue, the organization will
collapse.

Example: While planning a team outing, the employee making the travel and stay decisions must make
arrangements according to comfort and affordability, not just as per their liking.

7. Remuneration

This henry fayol principle of management states that employees should be paid fair wages for the work that they
carry out. Any organization that underpays its workers will struggle to motivate and keep quality workers. This
remuneration should include both financial and non-financial incentives.

Example: Any organization must be fair regarding their remuneration policies where all the employees must receive
a salary worth their efforts irrespective of their gender, tenure, and other factors.

8. Centralization

Centralization refers to the concentration of power in the hands of the authority and following a top-bottom
approach to management. In decentralization, this authority is distributed to all levels of management. In a modern
context, no organization can be completely centralized or decentralized. Complete centralization means that people
at the bottom have no authority over their responsibilities. Similarly, complete decentralization means that there will
be no superior authority to control the organization.

Example: Centralization is mostly common in small and medium-sized firms where the delegation of work is minimal,
and the owners make most of the decisions.

9. Scalar Chain

A scalar chain refers to a clear chain of communication between employees and their superiors. Employees should
know where they stand in the hierarchy of the organization and who to go to in a chain of command. To implement
this in the workplace, Fayol suggests that there should be an organizational chart drawn out for employees to see
this structure clearly.

Example: Every organization has a specific chain of authority from the highest level of superiors, like the founder or
CEO, to the lowest level of subordinates following a hierarchy for maximum productivity.
10. Order

This principle states that there should be an orderly placement of resources (manpower, money, materials, etc.) in
the right place at the right time. This ensures the proper use of resources in a structured fashion. Misplacement of
any of these resources will lead to misuse and disorder in the organization.

Example: Employees should be given a designated space and the right tools or equipment to complete their work
efficiently.

11. Equity

Equity is a combination of kindness and justice. This principle states that managers should use kindliness and justice
towards everyone they manage. This creates loyalty and devotion among the employees towards the organization
they work for.

Example: All employees, irrespective of gender, religion, race, and sexuality, must feel safe, seen, and heard and be
given equal opportunities to grow and flourish in their careers within the organization.

12. Stability of Tenure of Personnel

This principle states that an organization should work to minimize staff turnover and maximize efficiency. Any new
employee cannot be expected to get used to the culture of an organization right away. They need to be given
enough time to settle into their jobs to become efficient. Both old and new employees should also be ensured job
security because instability can lead to inefficiency. There should also be a clear and effective method to handle
vacancies when they arise because it takes time and expense to train new ones.

Example: Every new employee must be given a proper induction of both the technical aspect of the company as well
as the work culture and office environment for them to mingle well. Old employees should be given alum awards for
completing certain tenures to boost morale.

13. Initiative

This principle states that all employees should be encouraged to show initiative. When employees have a say as to
how best they can do their job, they feel motivated and respected. Organizations should listen to the concerns of
their employees and encourage them to develop and carry out plans for improvement.

Example: Taking suggestions from employees regarding their specific department can make them feel seen in an
authoritative position and can give them a sense of achieving something for the team.

14. Esprit de Corps

Esprit de Corps means “Team Spirit”. This henry fayol principle of management states that the management should
strive to create unity, morale, and co-operation among the employees. Team spirit is a great source of strength in
the organization. Happy and motivated employees are more likely to be productive and efficient.

Example: While discussing the new plan of action for achieving the next month's targets, using the word 'We' instead
of 'I' brings a teamwork spirit to the group.

Human Relation Approch/Theory

The Human Relations Approach is a management theory that focuses on the role of human factors in the workplace
and their impact on employee motivation, satisfaction, and productivity. This approach recognizes that employees
are not just cogs in a machine but are individuals with social and emotional needs. It emerged as a reaction to the
mechanistic and rigid principles of the classical management theories.

Here are some of the key principles of the human relations approach:

 Employees are motivated by a variety of factors, including social needs, ego needs, and self-actualization
needs.
  Employees are more productive when they are satisfied with their work and feel like they are part of a team.
 The informal organization is just as important as the formal organization.
 Communication and leadership are essential for employee satisfaction and productivity.

Here is an example of how the human relations approach can be applied in a workplace. A manager might create a
more positive work environment by providing employees with opportunities for social interaction, such as team-
building exercises or social gatherings. The manager might also try to motivate employees by giving them more
responsibility and autonomy, or by providing them with opportunities for advancement.

The human relations approach has been criticized for being too idealistic and for not taking into account the realities
of the workplace. However, it has also been praised for its focus on the human element of the workplace and for its
emphasis on employee satisfaction and motivation.

System Approch to Management

The systems approach to management is a way of thinking about organizations that views them as systems made up
of interrelated and interdependent parts. The system approach emphasizes the importance of understanding the
relationships between these parts and how they work together to achieve the organization's goals.

The systems approach to management is based on the following key concepts:

 A system is a set of interrelated parts that work together to achieve a common goal. An organization can be
viewed as a system, with the different departments and functions as the parts.
 The parts of a system are interdependent. This means that the output of one part affects the input of
another part. For example, the production department's output of products affects the marketing
department's ability to sell those products.
 Systems are open. This means that they interact with their environment. The organization's environment
includes its customers, suppliers, competitors, and the regulatory environment.
 Systems are goal-oriented. They exist to achieve certain goals. The organization's goals are determined by its
owners, managers, and employees.

Here are some of the benefits of using the systems approach to management:

 It can help to improve communication and coordination between different parts of the organization.
 It can help to identify and understand the interrelationships between different parts of the organization.
 It can help to set and achieve goals.
 It can help to manage the organization's environment.
 It can help to improve the organization's efficiency and effectiveness.

THE MANAGER
Management is a creative process which integrates and uses various available resources effectively to accomplish
certain goals. For which, an individual is responsible to develop ideas and get things done through others. The
concerned individual is designated as manager. any person who perform the functions of planning, organisation,
staffing, directing and controlling for the accomplishment of pre-determined organisation goals is called as manager.
FUNCTIONS OF A MANAGER

The smooth functioning of a business unit depends on the performance of the manager. If a manager has adequate
skill, he can discharge his duties effectively. Generally, the following functions are performed by a manager.

1. Planning the work: Planning involves deciding the course of action well in advance. The manager can decide the
procedure to be followed in order achieve the objectives of an organisation. Planning the work is a rational activity.

2. Taking decisions: Manager has to take lot of decisions with regard to the assignment of work to every worker and
delegation of authority to do a job. A wise decision can be taken by an efficient manager. Quality of decision is based
on the intelligence of the manager.

3. Delegating authority: Manager should delegate authority whenever a project or work is assigned to others.
Nobody can do anything without authority. So, the manager has to delegate authority on need basis.

4. Solving the problems: Subordinates bring problems before the manager. The manager has to solve the problems
instead of solving the problems quickly. Finding solution to a problem will prevent cropping up such problems in
future.

5. Co-ordination: The tasks or activities of the subordinates are co-ordinated for quick execution of a work.
Increased productivity is to be achieved through effective co-ordination. overall organisational objectives could be
achieved only by the process of co-ordination of various individual efforts.

6. Setting target: Target is to be fixed by the manager section wise. Setting of target indicates in the overall
performance. Target is fixed on the basis of the main objectives of the organisation.

7. Guiding sub-ordinates: Eventhough the manager is a boss to his subordinates, he can guide the subordinates in
the performance of their work. The manager is acting as a friend at this stage. The guidance of the manager is an
indispensible tonic to subordinates.

Skills of a Manager
There are many different skills and functions that are important for managers. Some of the most important skills
include:

 Decision-making: Managers need to be able to make decisions that are in the best interests of the
organization.
 Communication: Managers need to be able to communicate effectively with their employees, customers,
and other stakeholders.
 Leadership: Managers need to be able to motivate and inspire their employees to achieve the goals of the
organization.
 Problem-solving: Managers need to be able to identify and solve problems that affect the organization.
 Planning: Managers need to be able to plan for the future of the organization.
 Organizing: Managers need to be able to organize the resources of the organization to achieve its goals.
 Controlling: Managers need to be able to monitor the performance of the organization and make sure that it
is on track to achieve its goals.

Managerial Roles
1. Interpersonal Roles

The interpersonal roles link all managerial work together. The three interpersonal roles are primarily concerned with
interpersonal relationships.

 Figurehead Role: The manager represents the organization in all matters of formality. The top level manager
represents the company legally and socially to those outside of the organization.
 Liaison Role: The manger interacts with peers and people outside the organization.
 The leader Role: It defines the relationships between the manger and employees.

2. Informational Roles

The informational roles ensure that information is provided. The three informational roles are primarily concerned
with the information aspects of managerial work.

 Monitor Role: The manager receives and collects information about the operation of an enterprise.
 Disseminator Role: The manager transmits special information into the organization. The top level manager
receives and transmits more information from people outside the organization than the supervisor.
 Spokesperson Role: The manager disseminates the organization’s information into its environment.

3. Decisional Roles

The decisional roles make significant use of the information and there are four decisional roles.

 Entrepreneur Role: The manager initiates change, new projects; identify new ideas, delegate idea
responsibility to others.
 Disturbance Handler Role: The manager takes corrective action during disputes or crises; resolve conflicts
among subordinates; adapt to environmental crisis.
 Resource Allocator Role: The manager decides who gets resources; schedule, budget set priorities and
chooses where the organization will apply its efforts.
 Negotiator Role: The manager negotiates on behalf of the organization.

Sure, here is a table that explains the difference between administration and management in a
table format, with more points and details:
 Criterion Administration Management

The process of coordinating and

The process of getting things done through
Definition overseeing the activities of an
people
organization

On the overall goals and objectives On the day-to-day operations of the

Focus
of the organization organization

Planning, organizing, staffing, Planning, organizing, leading, and

Tasks
directing, and controlling controlling

Level of authority Higher Lower

Relationship with
More distant More direct
employees

Strategic thinking, decision-making, Interpersonal skills, problem-solving, and

Skills required
and communication delegation

Set the overall direction of the Implement the plans and policies set by
Roles organization and ensure that it is administrators and ensure that employees
running smoothly are motivated and productive

Develop strategies, allocate

Create a positive work environment,
Responsibilities resources, and monitor the
motivate employees, and resolve problems
performance of the organization

Examples CEO, CFO, COO Manager, supervisor, team leader

Limitation Of Management
 The principles of management are used according to country, time and circumstances: This
is because the business environment and the needs of organizations vary from country to country,
time to time, and circumstance to circumstance. For example, the principles of management that
work well in a developed country may not work well in a developing country
 Management theory is changeable: This is because management is a constantly evolving field.
As we learn more about the way organizations work, we develop new theories and concepts. This
can make it difficult for managers to keep up with the latest trends, and it can also lead to confusion
and conflict.
 The freedom of Human behavior creates the problem in development of management
science: This is because people are unpredictable and often act in ways that are not rational. This
can make it difficult for managers to control and direct their behavior.
 Increase of selfishness: This is because people are increasingly motivated by their own self-
interest. This can lead to conflicts and problems within organizations. However, managers can still
align the interests of individuals with the interests of the organization by creating a sense of shared
 purpose, providing opportunities for personal growth and development, and rewarding employees
for their contributions to the organization.
 Encourage bureaucracy: This is because organizations can become too bureaucratic and
inefficient. This can make it difficult to make decisions and take action. However, managers can
streamline their organizations by eliminating unnecessary rules and procedures, delegating
authority, and empowering employees to make decisions.

PLANNING
Definition of Planning
Planning in management is the deliberate and systematic process of defining specific organizational goals
and objectives, developing comprehensive strategies and action plans, allocating necessary resources, and
establishing timelines and performance benchmarks. It is the foundation upon which an organization's
actions and decisions are based, facilitating the efficient and effective attainment of its desired outcomes.

Meaning:
“Planning is deciding in advance what to do, how to do it, where to do it and who is to do it. Planning
bridges the gap from where we want to go. It makes possible for things to occur while would not otherwise
happen.” – Koontz and o’ Donnell.

Aspects of Planning:-
1. Managerial Function:
Planning is a key managerial function, which means that it's an essential responsibility
of managers at all levels of an organization. From top executives to front-line
supervisors, managers engage in planning activities to ensure that the organization
moves in the right direction.
Example: A top-level manager might engage in strategic planning to set long-term
goals for the company, while a middle manager could be involved in tactical planning
to implement specific strategies, and a front-line manager may engage in operational
planning to allocate daily tasks.
2. Required at All Levels:
Planning is required at all levels of management, from top management to first-line
supervisors. Top managers are responsible for developing long-term plans for the
organization, while middle managers develop medium-term plans, and first-line
supervisors develop short-term plans.
Example: In a retail chain, the CEO might be focused on strategic planning, a regional
manager on tactical planning for their region, and a store manager on operational
planning for their store's daily operations.
3. Involves Forecasting:
A critical element of planning is forecasting, which entails predicting future trends,
events, and conditions that may affect the organization. Accurate forecasting helps
organizations anticipate challenges and opportunities.
Example: In financial planning, a company may use historical data and market
analysis to forecast sales for the upcoming year. This allows them to allocate
resources effectively and make informed decisions.

4. Involves Decision-Making:
Planning also involves decision making. Managers need to make decisions about what
goals to set, what objectives to pursue, and what course of action to take. These
decisions are not always easy, and they often involve trade-offs.
Example: When a project manager is planning a product launch, they must make
decisions about the marketing strategy, budget allocation, and the target market.
These decisions guide the execution of the plan.

Features of Planning:
1. Planning is goal-oriented.
 Planning is made to achieve desired objective of business.
 The goals established should general acceptance otherwise individual efforts & energies will go misguided and
misdirected.
 Planning identifies the action that would lead to desired goals quickly & economically.

2. Planning is looking ahead.

 Planning is done for future.
 It requires peeping in future, analyzing it and predicting it.
 Thus planning is based on forecasting.
 A plan is a synthesis of forecast.

3. Planning is an intellectual process.

 Planning is a mental exercise involving creative thinking, sound judgement and imagination.
 It is not a mere guesswork but a rotational thinking.
 A manager can prepare sound plans only if he has sound judgement, foresight and imagination.
 Planning is always based on goals, facts and considered estimates.

4. Planning involves choice & decision making.

 Planning essentially involves choice among various alternatives.
 Therefore, if there is only one possible course of action, there is no need planning because there is no choice.
 Thus, decision making is an integral part of planning.
 A manager is surrounded by no. of alternatives. He has to pick the best depending upon requirements & resources of
the enterprises.

5. Planning is the primary function of management/Primacy of Planning.

 Planning lays foundation for other functions of management.
 It serves as a guide for organizing, staffing, directing and controlling.
 All the functions of management are performed within the framework of plans laid out.
 Therefore planning is the basic or fundamental function of management.

6. Planning is a Continuous Process.

 Planning is a never ending function due to the dynamic business environment.
 Plans are also prepared for specific period of time and at the end of that period, plans are subjected to revaluation and
review in the light of new requirements and changing conditions.
 Planning never comes into end till the enterprise exists issues, problems may keep cropping up and they have to be
tackled by planning effectively.
7. Planning is all Pervasive.
 It is required at all levels of management and in all departments of enterprise.
 Of course, the scope of planning may differ from one level to another.
 The top level may be more concerned about planning the organization as a whole whereas the middle level may be
more specific in departmental plans and the lower level plans implementation of the same.

8. Planning is designed for efficiency.

 Planning leads to accompishment of objectives at the minimum possible cost.
 It avoids wastage of resources and ensures adequate and optimum utilization of resources.
 A plan is worthless or useless if it does not value the cost incurred on it.
 Therefore planning must lead to saving of time, effort and money.
 Planning leads to proper utilization of men, money, materials, methods and machines.

9. Planning is Flexible.
  Planning is done for the future.
 Since future is unpredictable, planning must provide enough room to cope with the changes in customer’s demand,
competition, govt. policies etc.
 Under changed circumstances, the original plan of action must be revised and updated to make it more practical.

 Importance of Planning:
Provides Direction and Focus:
Planning sets clear goals and objectives for the organization, giving it a sense of direction. It helps managers and
employees understand what needs to be accomplished and where the organization is headed.

Optimizes Resource Allocation:

Effective planning helps allocate resources (human, financial, and physical) efficiently. It ensures that resources are
utilized in the most cost-effective manner, avoiding waste.

Minimizes Uncertainty:
Through forecasting and scenario analysis, planning helps organizations anticipate potential challenges and
uncertainties. It enables proactive decision-making to mitigate risks.

Enhances Decision-Making:
Planning involves evaluating various alternatives and selecting the best courses of action. This structured approach
to decision-making reduces the likelihood of hasty or ill-informed decisions.

Promotes Coordination:
Planning encourages collaboration and coordination among different departments and teams within an organization.
It helps align efforts and resources to work cohesively toward common objectives.

Facilitates Measurement and Control:

By establishing performance benchmarks and metrics, planning allows organizations to monitor progress and assess
whether goals are being met. This facilitates control and corrective action when necessary.

 Objectives of Planning:
Establishing Goals and Objectives:
One of the primary objectives of planning is to define clear and specific goals that the organization intends to
achieve. Objectives provide a sense of purpose and direction.

Selecting Strategies and Courses of Action:

Planning involves identifying various strategies and alternatives for achieving goals. The objective is to choose the
most suitable and effective approach.

Resource Allocation:
Planning determines the allocation of resources, including budgeting, manpower, equipment, and time, to support
the chosen strategies.

Risk Assessment and Mitigation:

Planning objectives include assessing potential risks and uncertainties that may impact the organization's plans.
Strategies are developed to mitigate or manage these risks.

Setting Priorities:
Planning helps in setting priorities by determining which objectives and actions should take precedence. This ensures
that limited resources are directed toward the most critical areas.

Establishing Timelines:
Another objective of planning is to create timelines and schedules for the implementation of strategies and the
achievement of goals. Timelines provide a sense of urgency and accountability.

Creating a Framework for Evaluation:

Planning defines criteria and performance indicators that will be used to evaluate progress and success. This allows
for regular assessment and adjustments as needed.

Adaptation to Change:
In a dynamic business environment, planning objectives may also include the ability to adapt and modify strategies
and plans as circumstances change.

TYPES OF PLANS
I. Classification on the basis of levels in organization
1. Strategic plans :
a) Strategic plans are made to achieve the overall goals in organization
b) Strategic goals are achieved through allocation of resources over different areas of
enterprise
c) Prepared for Long term plans
d) Plans are made by top level management
e) Internal strengths and weaknesses are matched with the external environmental
opportunities and threat.
2. Tactical Plans :
a) Aimed to achieve tactical goals of an organization
b) They are related to departmental goals of an organization
c) They are part of strategic plans.
d) Mainly framed by middle level management
e) Prepared for intermediate period of 1 to 5 years
f) These plans are more specific and concrete
3. Operational Plans
a) Plans meant to support tactical plans
b) Resources are allocated by strategic plans and their efficient use is done by operational plan
c) Plans made by lower level managers in consultation with middle level management
d) Prepared for short periods of time of less than one year

II. Classification on the basis of use

1. Single –Use Plans:
a. These plans carry out activities that are not intended to be repeated
b. They are made to achieve a specific objective
c. Basically short lived plans
d. For eg., purchase of new machinery
a. Different types of single use plans are:
i. Programmes : a programme is a sequence of activities carried to implement a policy or achieve a
goal.
For eg., making a training programme for its employees

 Steps in making a programme:

1. Dividing the total work into parts
2. Developing the sequence of various parts
3. Determining the responsibility for each part
4. Determining how each part will be completed and arrangement of resources
5. Determine the time required for completion of each part
6. Develop a schedule for implementing each step

 Types of programmes:
a. Major programme- designing of a main programme to achieve goals
b. Minor programme- mainly designed to achieve the major programme

⦿
ii. Budget-

⦿
is a statement of inflow and outflow of financial resources over a period of time

⦿
Features- provides standard of performance, controlling device, future oriented
For eg., monthly budget, six months, yearly budget
 ⦿
iii. Strategies

⦿
Provides guide to action

⦿
Selection of a course of action out of various courses

⦿
It is prepared depending upon environmental threats and opportunities
ONE EXAMPLE OF STRATEGY: company adopts a new technology to reduce their cost of
production and sell the products at lower price. Immediately other business will also adopt this
strategy.

⦿
iv. Projects
is a part of plan with an objective to achieve within a time frame. For eg., project plans are

⦿
made for preparing an advertisement campaign, building a bridge, flyover etc.
For instance, company decided to increase its sales by 5% then accordingly they will make a
project plan.

⦿
2. Standing Plans :

⦿
Plans made to deal with activities or situations which occur repeatedly in the organisation

⦿
They are made to achieve overall organizational goals
For eg., everytime a employee goes on leave, he follows leave rules framed in the standing

⦿ Commonly used standing plans are:

plans. This helps the top level management from botheration.

⦿ Are general guidelines

Policies:

⦿ It is related to company’s overall activities

⦿ It is formulated by top managers
⦿ They are flexible
⦿ Should be easily understandable
⦿ Policies should be related to facts

 Types of policies
a) Departmental policies : made for each departments
b) Environmental policies : also known as external policies, Made by externImplied policies: not
formed consciously by managers but is involved on their own when managers repeatedly make
some decisions in similar situations.
c) Express policies : are written policies which clearly express the intentions of managers.
d) Specific policies : are not general guidelines to action, used to make decisions in specific
situations
e) Appealed policies : policies are made on the appeal of subordinates, subordinates appeal their
superiors to make policies when they face problems in carrying out their tasks.

⦿ Provides sequential order to a policy

b) PROCEDURES :

⦿ Policy provides a general guideline to action, procedures defines steps to implement policy
⦿ It relates to overall activities through policies
⦿ It is less flexible
⦿ It is a guide for people at lower levels and generally framed by middle and lower level

⦿ For eg., a policy that states that all appointments shall be made through selection procedure
managers.

like application form, preliminary interview, conducting tests, cross checking, formal interview

⦿ is a way of doing task to increase efficiency of that task, decrease cost and achieve
c) METHODS:

⦿ It is a way of doing an event out of the sequence of events defined in procedure

organizational goals with minimum disturbance.

⦿ For eg., one of the selection procedure can be cross checking of the candidate by contacting
the previous employer

⦿ Are statements that a specific action must or must not taken in a given situation
d) RULES :
 ⦿
⦿
Must be in writing

⦿
Are rigid , inflexible
No discretion can be used following rules. They have to be followed by everyone.

3. CLASSIFICATION ON THE BASIS OF TIME

⦿ Minimum period of 5 years

1. LONG TERM PLANS:

⦿ Relate to company’s goals

⦿ For example., investment in fixed assets

⦿ 1- 5 YEARS
2. MEDIUM/ Intermediate TERM PLAN:

⦿ Eg., impact of ad campaign on expansion of business in new market

⦿ Prepared for less than a year

3. Short term plan-

⦿ For eg., plans made to retain or promote sales, to train workers

4. Classification on the basis of functional areas

Features :
a) Prepared for short term
b) Short term objectives
c) Consider the immediate future
d) Specific plans to be taken in immediate future by people

⦿ Consists of planning the process of converting inputs into output.

1. Production plans :

⦿ Plans are made to set targets of production.

⦿ Plans are designed according to production policy.
⦿ Eg., use during peak season and also during seasonal fluctuation.

⦿ Designed by marketing managers

2. marketing plans:

⦿ Tells sales and marketing personnel who will sell what, where, when, to whom, in what

⦿ The production department produces according to the expected sale in the market
quantity

⦿ Plans made for raising and utilising/ allocating financial resources effectively
3. Financial plans:

⦿ All the departments need funds for their effective functioning

PROCESS OF PLANNING
 Need for Planning:

Planning is essential because it provides a sense of direction and purpose to an organization. It helps in setting
priorities, allocating resources efficiently, and guiding decision-making. Without planning, organizations may struggle
to achieve their goals cohesively and effectively.

 Goal Identification:

Goal identification is the initial step in the planning process. It involves defining clear and specific objectives that the
organization aims to achieve. Goals provide a sense of purpose and serve as a reference point for all planning efforts.

 Analyzing the Present Situation:

Before planning for the future, organizations need to assess their current state. This includes evaluating strengths,
weaknesses, opportunities, and threats (SWOT analysis). Understanding the present situation helps in determining
the starting point for planning.

 Identification of Barriers in Planning:

Identifying barriers or constraints that may hinder the achievement of objectives is crucial. Barriers can be internal
(e.g., resource limitations) or external (e.g., market competition). Recognizing these barriers allows organizations to
develop strategies to overcome them.

 Development of Planning Premises:

Planning premises are assumptions or factors that planners consider when creating plans. These may include market
conditions, economic trends, technological advancements, and regulatory changes. Developing planning premises
helps in making informed decisions.

 Development of Alternative Courses of Action:

Organizations need to generate multiple alternative courses of action to achieve their objectives. These alternatives
represent different approaches or strategies for reaching the same goal. Having alternatives provides flexibility and
allows for contingency planning.

 Evaluation of Courses of Action:

Each alternative course of action is evaluated against predefined criteria. Factors such as feasibility, cost-
effectiveness, alignment with objectives, and potential risks are considered. Evaluation helps in identifying the
strengths and weaknesses of each option.

 Selection of Course of Action:

Based on the evaluation, organizations select the most suitable course of action or strategy. The selected course of
action should align with the organization's goals and provide the best chance of success.

 Feedback:

Feedback is a crucial element of the planning process. It involves continuously monitoring progress during plan
implementation, collecting data, and assessing whether the objectives are being met. Feedback helps in identifying
deviations from the plan and making necessary adjustments.

Decision Making
Decision making in management is the process of making a choice between two or more options. This involves
evaluating the pros and cons of various choices and choosing the best option to achieve a desired outcome. In
management, decision making is about acting in a way that meets organizational goals and objectives.

For example, a business manager may decide to invest in marketing to attract new customers. This decision
could involve analyzing the costs, benefits, and risks involved with each possible course of action and choosing the
best course of action for the organization.

 How decision making is related to planning

Decision making and planning are closely related concepts in management. Planning is the process of setting
goals and objectives, and developing a course of action to achieve those goals. Decision making is the
process of choosing one course of action from among several alternatives.
 Decision making is an essential part of planning. When managers are planning, they need to make decisions
about what goals to set, what objectives to pursue, and what course of action to take. These decisions are
not always easy, and they often involve trade-offs.
 Planning can also help to improve decision making. By carefully planning, managers can identify the factors
that need to be considered when making decisions. They can also develop a framework for evaluating
alternatives and making choices

What is MBO
 The process of setting objectives in the organization to give a sense of direction to the employees is called as
Management by Objectives.
  It refers to the process of setting goals for the employees so that they know what they are supposed to do at
the workplace.
 Management by Objectives defines roles and responsibilities for the employees and help them chalk out
their future course of action in the organization.
 Management by objectives guides the employees to deliver their level best and achieve the targets within
the stipulated time frame.
Need for Management by Objectives (MBO)
 The Management by Objectives process helps the employees to understand their duties at the workplace.
 KRAs are designed for each employee as per their interest, specialization and educational qualification.
 The employees are clear as to what is expected out of them.
 Management by Objectives process leads to satisfied employees. It avoids job mismatch and unnecessary
confusions later on.
 Employees in their own way contribute to the achievement of the goals and objectives of the organization.
Every employee has his own role at the workplace. Each one feels indispensable for the organization and
eventually develops a feeling of loyalty towards the organization. They tend to stick to the organization for a
longer span of time and contribute effectively. They enjoy at the workplace and do not treat work as a
burden.

Limitations
 It sometimes ignores the prevailing culture and working conditions of the organization.
 More emphasis is being laid on targets and objectives. It just expects the employees to achieve their targets
and meet the objectives of the organization without bothering much about the existing circumstances at the
workplace. Employees are just expected to perform and meet the deadlines. The MBO Process sometimes
do treat individuals as mere machines.
 The MBO process increases comparisons between individuals at the workplace. Employees tend to depend
on nasty politics and other unproductive tasks to outshine their fellow workers. Employees do only what
their superiors ask them to do. Their work lacks innovation, creativity and sometimes also becomes
monotonous.

Concept Of Software Project Planning

Software is said to be an intangible product. Software development is a kind of all new stream in
world business and there’s very little experience in building software products. Most software
products are tailor made to fit client’s requirements. The most important is that the underlying
technology changes and advances so frequently and rapidly that experience of one product may
not be applied to the other one.

Here are key concepts related to software project planning:

Project Definition:

Clearly defining the project involves understanding its objectives, purpose, and the problem it intends to solve.
It's crucial to have a clear project vision from the start.

Requirements Gathering:
Requirements gathering involves identifying and documenting what the software should do. This includes
functional requirements (features and capabilities) and non-functional requirements (performance, security,
usability, etc.).

Scope Management:

Scope management ensures that the project's boundaries are well-defined. A project scope statement outlines
what is included and what is excluded. Scope changes should be documented and approved to prevent scope
creep.

Project Goals and Objectives:

Setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) provides a clear and
measurable direction for the project.

Project Team:

Assembling a skilled project team is critical. Team members should have the right skills and expertise to
perform their assigned tasks. Roles and responsibilities should be clearly defined.

Work Breakdown Structure (WBS):

A WBS breaks the project down into smaller, manageable tasks and subtasks. It helps in organizing work,
estimating effort, and assigning responsibilities.

Estimation:

Estimation techniques like expert judgment, historical data analysis, and parametric modeling help in predicting
the time, effort, and resources required for tasks accurately.

Task Sequencing and Dependencies:

Identifying task dependencies ensures that tasks are performed in the correct order. Understanding critical
paths helps in scheduling and managing project timelines.

Resource Allocation:

Resource allocation involves assigning the right people, equipment, software tools, and facilities to tasks based
on their requirements and availability.

Risk Assessment and Mitigation:

Identifying risks and developing risk mitigation strategies is essential. Contingency plans should be in place to
address unexpected events that may impact the project.

Schedule Development:

Creating a project schedule involves determining the start and end dates for tasks, setting milestones, and
allocating time for each activity. It provides a timeline for project execution.

Budgeting:

Project budgeting involves estimating and allocating financial resources to cover labor costs, materials,
equipment, software licenses, and other expenses.

Communication Plan:

A communication plan outlines how project information will be shared among team members, stakeholders,
and sponsors. It defines communication channels, frequency, and reporting mechanisms.

Quality Assurance:
Quality assurance processes ensure that the software meets the specified quality standards. This includes
defining quality criteria, performing testing, and conducting reviews and inspections.

Change Management:

Change management processes help in handling change requests effectively. Changes are evaluated,
documented, and approved before they are implemented to avoid disruptions.

Monitoring and Control:

Continuous monitoring of project progress against the plan allows for timely identification of issues, deviations,
and variances. Control measures are implemented to keep the project on track.

Documentation:

Comprehensive documentation is essential for tracking project details, requirements, design specifications, test
cases, and user documentation. It ensures transparency and knowledge retention.

Closure and Evaluation:

Project closure involves ensuring that all project objectives are met and that deliverables are accepted by
stakeholders. A formal closure phase includes evaluating project performance and documenting lessons
learned.

Post-Implementation Review (PIR):

A PIR is conducted after project completion to assess the project's overall performance, gather feedback, and
identify areas for improvement in future projects.

Organization
Organizing is the second key management function, after planning, which coordinates human efforts,
arranges resources and incorporates the two in such a way which helps in the achievement of objectives. It
involves deciding the ways and means with which the plans can be implemented.
It entails defining jobs and working relationships, assigning different tasks associated with the plans,
arranging and allocating resources, design a structure which distinguishes duties, responsibilities and
authorities, scheduling activities, in order to maintain smoothness and effectiveness in operations.
Organizing at the level of the organization involves deciding how best to departmentalize, or cluster, jobs
into departments to coordinate effort effectively. There are many different ways to departmentalize,
including organizing by function, product, geography, or customer. Many larger organizations use multiple
methods of departmentalization.

Characteristics of Organizing

Division of Labor:
This principle involves breaking down complex tasks into smaller, specialized tasks and assigning them to
individuals with the required expertise. It enhances efficiency and productivity.
Example: In a manufacturing company, assembly line workers have specific tasks, such as attaching
components, inspecting quality, or packaging products. Each worker specializes in their assigned task,
leading to increased production rates.

Coordination:
Coordination is the harmonious integration of various activities and efforts to achieve organizational goals.
It ensures that individual tasks and functions align cohesively.
Example: In a software development project, coordination is crucial. Programmers, testers, and designers
need to work together to produce a functioning software product. Regular meetings, status reports, and
project management tools help ensure effective coordination.

Objectives:

Clearly defined objectives provide a shared direction for the organization. They guide decision-making and
help in evaluating performance.
Example: A retail store may have the objective of increasing customer satisfaction. This objective can guide
decisions, such as offering better customer service, improving store layout, or expanding product offerings.

Authority-Responsibility Structure:

This principle involves specifying the authority and responsibility of each position within the organization.
It clarifies who has the power to make decisions and who is accountable for outcomes.
Example: In a hospital, a head nurse may have the authority to make decisions about patient care within
established protocols. The head nurse is responsible for the outcomes of the care provided by their team.

Communication:

Effective communication is essential for conveying information, instructions, and feedback within the
organization. It ensures that everyone is informed and aligned with organizational goals.
Example: In a multinational corporation, clear communication is critical. Teams in different time zones
need to collaborate on projects. Email, video conferencing, and project management tools facilitate
communication and keep everyone on the same page.

Specialization and Expertise:

This principle emphasizes that employees should be assigned tasks that match their skills and expertise,
leading to higher quality work and greater job satisfaction.
Example: In a law firm, different lawyers may specialize in various areas of law, such as corporate law,
family law, or criminal law. Assigning cases to lawyers with expertise in the relevant area ensures better
legal representation.

Efficiency:

Organizational efficiency is achieved through streamlined processes, resource optimization, and

eliminating wasteful practices. It results in cost savings and improved performance.
Example: A manufacturing company may implement lean manufacturing principles to minimize waste in
production processes. This can lead to reduced production costs and faster delivery times.

Hierarchy:

Hierarchy defines the levels of authority and reporting relationships within the organization. It establishes
a clear chain of command.
Example: In a military organization, the hierarchy is well-defined, with officers holding higher ranks having
authority over lower-ranking personnel. This ensures discipline and efficient decision-making.

Goal Alignment:

All organizational activities should align with the overall goals and mission of the organization. This ensures
that efforts are focused on strategic objectives.
Example: A nonprofit organization dedicated to environmental conservation ensures that all its programs, from tree
planting to advocacy campaigns, align with its mission to protect the environment.

Adaptability:

Organizations must be adaptable to respond to changing market conditions, technologies, and customer needs. This
requires the ability to adjust strategies and structures as needed.
Example: A technology company regularly updates its product offerings to stay competitive in the fast-paced tech
industry. This adaptability allows it to meet evolving customer demands.

Process of Organizing
• Organizing is the core function which binds all the activities and resources together in a systematic
and logical sequence.
• Identification and division of work: Organizing process begins with identifying the work and
dividing them as per the plans. Basically, the work is classified into different manageable activities,
to avoid redundancy, and sharing of work is encouraged.
• Departmentalization: After classifying the work into different activities, the activities having a
similar nature are grouped together. This process is called as departmentalization which facilitates
specialization and forms the basis for creating departments.
• Assignment of the task: After the formation of departments, employees are placed in different
departments under a manager, called as a departmental manager. Thereafter, employees are
assigned the jobs as per their skills, qualifications and competencies. For the effectiveness of the
performance, the manager must ensure that there is a proper match between the job and the
incumbent, i.e. the right person has to be placed at the right job.
• Establishment of organizational hierarchy: Deployment of work is not all, the employees must be
aware of whom they have to report and who can give them orders. Hence, work relationships need
to be established clearly, which helps in the creation of a hierarchical structure of the organization.
• Provision of resources to the members: Arrangement and deployment of resources such as money,
materials, supplies, and machine, etc. which are important to carry out day to day operations of the
organization.
• Coordination of efforts and scheduling of activities: The final step to this process is the
coordination of efforts and scheduling the activities in a logical and systematic manner so that the
common objectives can be achieved effectively.

3 Levels of Management in Organizational Hierarchy

Levels of management in organizational hierarchy; (1) Top-level, (2) middle-level, and (3) lower
level. Top-level managers are responsible for setting organizational goals. Middle-level managers
are engaged in carrying out their goals. Finally, lower-level managers are responsible for running
every organizational work unit.

Top-Level Management
Top-level managers, or top managers, are also called senior management or executives. Leaders of
the organization are setting in top-level management.
These individuals are at the top one or two levels in an organization and hold titles such as Chief Executive
Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO),
Chairperson of the Board, President, Vice president, Corporate head.
Top-level managers make decisions affecting the entirety of the firm.

Top managers do not direct the firm’s day-to-day activities; instead, they set goals for the
organization and direct the company to achieve them.
Top managers are ultimately responsible for the organization’s performance, and often, these managers
have obvious jobs.
Top-level managers require having excellent conceptual and decision-making skills.

Middle-Level Management
Middle-level managers, or middle managers, are those in the levels below top managers.
Middle managers’ job titles include General Manager, Plant Manager, Regional Manager, and Divisional
manager.
Middle-level managers are responsible for carrying out the goals set by top management. They do so by
setting goals for their departments and other business units.
Middle managers control, motivate and assist first-line managers in achieving business objectives.
Middle managers also communicate upward by offering suggestions and feedback to top managers. In
addition, because middle managers are more involved in the day-to-day workings of a company, they may
provide valuable information to top managers to help improve the organization’s bottom line.
Middle-level managers’ job perfection depends very much on these communication and interpersonal
skills.

Lower-Level Management
First-level managers are also called first-line managers, shop-level managers, or supervisors.
These managers have job titles such as office manager, Shift Supervisor, Department Manager, Foreperson,
Crew leader, and Store manager.
First-line managers are responsible for the daily management of line workers—the employees who
produce the product or offer the service.
There are first-line managers in every work unit in the organization. These are the managers that most
employees interact with daily, and if the managers perform poorly, employees may also perform poorly,
may lack motivation, or may leave the company. Although first-level managers typically do not set goals for
the organization, they have a powerful influence on the company.
A First-level manager requires technical skills and knowledge for the particular work he supervises.

Importance of Organising
Following are the importance of organising:
1. Benefits of Specialization:
In an organisation, work is divided into units and departments. This division of work leads to
specialization in various activities of the concern. The entire philosophy of the organisation is
based on the concept of division of work into compact jobs. This leads to systematic allocation of
jobs amongst staff, which enhances productivity and reduces the workload. Division of work refers
to assigning responsibility for each organisational component to a specific individual or group. This,
in turn leads to specialization, efficiency and speed in job performance.
2. Clarity in a Working Relationship:
After identification of a job, organising also clarifies the authority and responsibility of individuals
of different departments. It is a means of creating coordination among different departments of
enterprises. It aims at creating clear-cut responsibility, and authority relationships amongst
different levels and ensuring cooperation amongst individuals and groups. Harmony of work is
brought by the high level of management. Every employee knows his superior from whom he has
to take the order, and to whom he has to report. This working relationship helps in fixing
responsibility and helps to avoid confusion.
3. Optimum Utilization of Resources:
Organising ensures the optimum utilization of human and material resources. In organising, work
is assigned as per skill and knowledge. The clarity in the job in advance of what the employees are
supposed to do avoids confusion and motivates employees to put in their best.
4. Adaption to Change:
The process of organising allows an organisation to accommodate changes in a business
environment. So the organisation structure is suitably modified and the revision of the job position
and relationships plan the way for smooth transactions. Thus organising provide flexibility and
stability to an organisation. It helps an organisation to survive and grow, despite people leaving
and joining. It also helps to adapt to changes in technology, new methods of work, etc.
5. Effective Administration:
Organising provides a clear description of the jobs and working relationships. It helps in effective
administration by avoiding confusion and duplication of work. Organising also reduces the
workload of the top management by delegating authority. As a result, top management is relieved
from routine work and can concentrate on the administration of the company.
6. Development of Personnel:
In the process of organising, a managerial person is trained to acquire a wide experience in diverse
activities through delegation of authority. Delegation allows manager to reduce their work by
assigning future jobs to subordinates. It also gives time to concentrate on important work. The
delegation also develops a sense of responsibility in the subordinates and motivates them to do
more challenging work.
7. Expansion and Growth:
An organisation’s growth is totally dependent on how efficiently and smoothly it works. The
organising process creates a favorable condition for expansion and diversification of enterprise by
enabling it to deviate from existing norms and take up a new challenge. Organising allows a
business enterprise to access more job positions and departments, and even diversifies its product
lines. It helps in the expansion and growth of the business.

Organizational Charts
Organizational charts graphically display an employee's hierarchical status relative to other
individuals within the company. For example, an assistant director will invariably fall directly below
a director on the chart, indicating that the former reports to the latter. Organizational charts use
simple symbols such as lines, squares, and circles to connect different job titles that relate to each
other.
Organisational Charts Benefits
 Provide clear lines of authority and business reporting . Employees know who to
report to, and who to contact if a work-related issue arises. This saves time as employees are able
to quickly access information instead of asking questions and sending emails.
 Enable a clearer
understanding of employee roles and responsibilities .
 Improve employee relations . By adding photographs and personal information you can help
break the ice between employees. It can also help employees connect faces with names.
 Help new employees to learn the names and roles within the company . This is
especially useful as new starters can often feel overwhelmed with information when they first join
the company. A chart can help them understand how they fit into the company, and who they will
be working with.
 Illustrate clear
lines of growth opportunities and give employees something to aspire to.
 Make it easier to plan and allocate resources as you have a clear visual of the
structure of the company.

IT organizational structure
An IT organizational structure involves the process of how a company assigns and coordinates tasks within
its IT department. Organizational structure helps to keep operations efficient by outlining specific roles and
duties and optimizing the use of IT policies, systems and procedures. Management might consider the
following topics when choosing a structure:
Resources: Understanding what resources the IT team has access to and how they use them could inform
decisions about structure.
Skills: Different IT professionals have unique skills, and organizing a clear chain of command may aid in skill
transfer and career development.
Goals : Knowing what problems the IT team solves within the business may reveal the appropriate
structure to use.
Business objectives : Effective IT organizational structures typically align with overall business goals and
promote efficiency and profit.

New Organizational Structure

New organizational designs refer to innovative and often non-traditional approaches to structuring and
managing organizations. These designs are driven by changing business environments, technology
advancements, evolving employee expectations, and a need for greater agility and efficiency. New
organizational designs aim to improve collaboration, adaptability, and overall performance.

Forms of Organizations
1. Line organization
In the line organization, the line of authority moves directly from the top level to the lowest level in a step-
by-step manner. It is straight and vertical. The top-level management takes all major decisions and issues
directions for actual execution.
Merits of Line Organization:
 It is simple to understand and easy to establish.
 Each individual knows clearly to whom he is responsible.
 It provides unit of command.
 It helps in taking quick and effective decisions.
 It ensures personal contact between workers and manager.
 It ensures discipline between the employees and employer.

Demerits of Line Organization:

 There is concentration of authority at the top level. It leads to autocratic control.
 Communication flows from top to bottom. There is no participation of workers.
 It lacks specialization as a line manager is responsible for both planning and execution of work.
 Overburdens the top executives and they cannot perform their work properly.

Suitability:
 In spite of these limitations, it is suitable for small concerns where there are fewer levels of authority.
2. Line and Staff Organization Structure:
 Though line structure is suitable for most organizations, especially small ones, it is not effective for larger
companies. This is where the line and staff organizational structure comes into play.
 The main difference is that specialists are attached to line managers to advise them on important matters.
Line managers are more involved in the core activities of the business. Staffs are specialists, who help line
authority in discharging their duties. Staff authority is used to support the line authority.
 In most organizations, the staff is used for help in handling details, gathering data for decision-making, and
offering advice on specific managerial problems.

Advantages of line and staff organization:

• Better Decision: Staff specialists help the line executives in taking better decisions by providing
them with expert advice adequate information of the right type at the right moment.
• Flexibility: Line and staff organization is more flexible as compared to line organization as general
staff can be employed to help line managers at various levels.
• Proper Weightage: Many problems that are ignored or poorly handled in line organization can be
properly covered in line and staff organization by the use of staff specialists.
• Reduction of Burden: Staff specialists relive the line managers of the burden of concentrating on
specialized functions like accounting selecting and training, public relations etc.
• Specialized Knowledge: Line managers get the benefit of specialized knowledge of staff specialists
at various levels.
• Unity of Command: Under this system, experts provide special guidance without giving orders.
Since it is the line manager who only has the right to orders, the enterprises take advantage of
functional organization while maintaining the unity of command i.e. one subordinate receiving
orders from one boss only.
Disadvantages of line and staff organization are:
• Delay in Decision-making: The process of decision-making is delayed, as line executives have to
consult staff experts before finalizing the decisions. The decisions of line managers are likely to be
delayed due to this lengthy procedure.
• Buck Passing Among Executives: The line bosses are concerned with actual execution of work.
However, they depend on staff experts for guidance. If something goes wrong, the attempt is made
to pass on the blame by one party to the other. Thus, there is shifting of responsibility or buck-
passing.
• Conflicts between Line and Staff Executives: In this organization, quarrels and conflicts between
line managers and staff specialists are quite common. The line managers are generally not
interested in the advice offered by experts. Secondly, specialists feel that the line bosses lack
knowledge of new ideas. Such conflicts lead to bitterness.
• Costly Organization: Line and staff organization is a costly organization as the line executives are
supported by highly paid staff executives who are experts. All this adds to the overhead expenses
and the cost of production increases.
 • Complicated Operation: Line and staff organization is too complicated in actual operation because
of dual authority, division of functions and too much dependence on staff. The unity of command
principle is violated.
• Internal Discipline is Affected Adversely: The internal discipline is likely to be affected adversely
due to decentralization and division of loyalty of subordinates.

3. Functional Organization

This concept was devised by F.W. Taylor. It is based on the functional foremanship. Under this method, the
structure of the enterprise is classified into different functional areas. Each functional area is headed by a
specialist who has full control of that function over the organization and gives instructions direct to the
personnel, rather than through the chain of command.
Merits of Functional Authority:
 It helps to reap the benefits of specialization
 Subordinates can make use of the expertise of functional experts
 The burden of top executive is reduced as each expert looks after only one function.
 It leads to joint supervision by different experts
 There is expert and better control can be exercised by functional experts
 It provides better scope for expansion and diversification

Demerits of functional organization:

 It is against the principle of unity of command as the subordinate is responsible to a number of superiors
 Lower level people are not given an opportunity for all round experience and hence they do not fit into top
level positions.
 The complex nature of functional organization with its cross relationship creates a confusion among workers
 The decision making is very slow as involvement of many experts is required
 There is a scope of lack of coordination as each specialist thinks of only his function and ignores other
functions.

Suitability:
 It is suitable to all kinds of organization provided applied at higher levels. At lower levels too many cross
relationship creates confusion throughout the organization.

4. Committee Organization:

A committee is a group of persons who consciously and deliberately formed to discuss a problem and provide
solutions to overcome it. They meet on an organized basis to discuss and deal with the matter placed before it.

• The following are the characteristics of a committee:

a. A committee is a group of people. There must be a minimum of two people and there is no limit for
maximum.
 b. The scope of committee is limited to the extent of task assigned to it.
c. Democratic principle of ‘One man one vote’ is followed
d. It may be executive committee or non-executive committee. Executive committee takes decisions and
implements them. Non-executive committee only provides suggestions and recommendations.

Merits of Committee Organization:

 Pooling of knowledge and experience- Knowledge and experience are pooled together to take joint decisions
on the principle of two heads are better than one.
 Motivation through participation- Members are allowed to participate in the decision making process. It
makes them more committed to the decision.
 Effective and proper coordination- Through coordination of experts bringing together diverse viewpoints
many problems could be solved effectively.
 Tool for management development- Every member has an opportunity for learning from the experience and
mistakes of others. Thus it helps for management development.
 Representation of diverse interest groups- When different interest groups are represented in a committee,
conflicting views can be easily settled through motivation and participation.
 Effective communication- By convening a committee any information can be easily passed on the all
members of the organization.

Demerits of Committee Organization:

 The committee is one made of the unfit, selected by the unwilling to do the unnecessary.

 The excessive or lack of use of committees creates problems to the management as follows:

 It is costly and time consuming activity. The cost incurred is far below its benefits.
 Committees do not help in taking quick decisions.
 To arrive at unanimous decisions agreements are arrived at on the basis of a compromise which may not be
really a right decision, Compromise is not the solution.
 When unanimous decisions are taken by dominant members, a few persons may accept them under
pressure.
 Committees fix group responsibility where no individual can be made accountable. This leads to inefficiency.
 Committee is a tool to misuse to delay or avoid or to take unpleasant decision.

5. Project Organization:

• The use of the project organization has increased in the last few years. It is currently being employed in
numerous undertakings engaged in the execution of construction activities, turnkey projects and research
and development projects. The project organization can take various forms, but the important characteristic
that distinguishes it from other forms is once the project is completed the organization is disbanded or
phased out.

• By definition, project management involves, “the gathering of the best available talent to accomplish a
specific and complex undertaking within time, cost and quality parameters, following by the disbanding of
the team upon completion of the undertaking”.
 • The group members then go on to another project, return to their permanent home department in the
organization, are given jobs elsewhere in the organization, or, in some cases, are phased entirely out of the
firm.

Merits of Project Organization:

 It allows maximum utilization of specialization

 It is tailor-made to meet specific needs of a particular project
 It provides more flexibility in handling resources by allocating them when they are needed

Demerits of Project Organization:

 It has a limited time and creates a feeling of uncertainty and insecurity among people in the organization.
 Lack of proper vertical authority makes the job of a project manager difficult. He is responsible for the
completion of the project but without authority over people in the project.
 Undue influence of specialists from diverse field makes the decision making very difficult.

6. Matrix Organization:

 It is a combination of project organization and functional organization.

 “Any organization that employs a multiple command system that includes not only multiple command
structure but also related support mechanism and an associated organization culture and behavior pattern.”
— Paul R. Lawrence and Stanley M. Davis
 It is clear from the above that matrix organization leads in overlapping of command, control and behavior
pattern.

Merits of Matrix Organization:

 It focuses attention on a single project and facilitates better control.

  It is more flexible than traditional organization
 It provides motivation for the people engaged in a project
 It leads to better utilization of services of professionals.

Demerits of Matrix Organization:

 People receive instructions and order both from functional and project managers. Thus, it violates unity of
command.
 The complex relationship leads to confusion and makes coordination difficult. Subordinates are not in a
position to identify their superiors.
 In the absence of mutual trust and confidence, in sharing the resources and in taking joint decisions, conflicts
arise.
 As people are drawn from various departments, there is a lack of commitment and morale is low.

Organic Structure
An organic structure is a type of organizational structure that is flexible, adaptable, and decentralized. It is often
characterized by a low degree of formalization, a high degree of specialization, and a strong focus on communication
and collaboration.

Organic structures are well-suited for businesses that operate in dynamic and rapidly changing environments. They
allow businesses to respond quickly to change and to take advantage of new opportunities.

Some of the key characteristics of an organic structure include:

 Flat hierarchy: Organic structures have a flat hierarchy, with few levels of management and a high degree of
autonomy for employees at lower levels.
 Decentralized decision-making: Decision-making is decentralized in organic structures, with employees at all
levels having a say in decisions that affect their work.
 Flexible and adaptable: Organic structures are flexible and adaptable, allowing businesses to respond
quickly to change.
 Strong focus on communication and collaboration: Organic structures emphasize communication and
collaboration between employees at all levels.

Mechanistic Structure
A mechanistic structure is a type of organizational structure that is rigid, bureaucratic, and centralized. It is often
characterized by a high degree of formalization, a high degree of specialization, and a strong focus on efficiency and
control.

Mechanistic structures are well-suited for businesses that operate in stable and predictable environments. They
allow businesses to achieve high levels of efficiency and control.

Some of the key characteristics of a mechanistic structure include:

 Tall hierarchy: Mechanistic structures have a tall hierarchy, with many levels of management and a clear
division of power between different levels.
 Centralized decision-making: Decision-making is centralized in mechanistic structures, with top
management making most of the decisions.
 Rigid and inflexible: Mechanistic structures are rigid and inflexible, making it difficult for businesses to adapt
to change.
 Strong focus on efficiency and control: Mechanistic structures emphasize efficiency and control, with a focus
on following rules and procedures.
Virtual Organization
A virtual organization is an operation where all members of the company work in different geographic
locations while appearing as a single unit. It uses computers, software, phones and other technology to
work together and converse in real-time, despite any physical distance. It's important for virtual
organizations to establish detailed procedures that ensure consistency in employee performance and
provide employees with the ample resources and support they need to conduct their responsibilities in a
remote work environment.

Benefits of a virtual organization

 Lower overhead costs
Virtual organizations often have lower overhead costs because they don't need to pay monthly fees for
renting office spaces. Companies also save money by not having to pay supplemental fees involved with
renting a space, like utilities and maintenance costs.
 Improved employee satisfaction
Many virtual organizations have higher levels of employee satisfaction, presumably from the increased
freedom employees have to work in their own space. Some employees feel less stressed, and the flexibility
of working remotely often reduces absences.
 Improved efficiency
Virtual organizations don't have the same distractions as traditional office settings, such as the urge to chat
with people surrounding you. With fewer distractions, efficiency may improve, resulting in higher levels of
productivity and better-quality work.
 Larger hiring market
Virtual organizations can hire employees from anywhere in the world. This removes geographic
restrictions, expanding the talent pool for hiring and allowing companies to hire individuals with varying
backgrounds and perspectives.

 Flexible hours
Virtual organizations often have flexible hours, with many employers allow employees to determine their
own schedules within certain parameters. For example, some companies establish core hours, such as 10
a.m. to 2 p.m. within a specific time zone each day, and allow employees to work whenever they want
outside of those hours.
 Improved employee retention
Many virtual organizations have happy employees. Satisfied employees are often more engaged at work
and less likely to leave the company.
 Access to new markets
Virtual organizations often have access to a wide range of markets. These organizations do not have
geographic restrictions, allowing them to work with customers who may have been inaccessible.

Challenges of a virtual organization

 Lack of camaraderie
Virtual organizations may experience a lack of camaraderie among teams. Employees work isolated from
each other, and they rarely meet face-to-face. There are few opportunities for casual conversations to help
build relationships.
 Difficulty developing company culture
Virtual organizations may struggle to develop and implement a company culture. There may be a lack of
cohesiveness among the team, as flexible schedules can lead to employees feeling disconnected from each
other.
 Increased importance of communication
Working in a virtual organization enhances the importance of good communication. Employees cannot
share information in passing like they would in a normal office setting. It may be difficult for employees to
meet from varied schedules.
 Potential compliance and security issues
Virtual organizations may present some compliance or security issues. These organizations require
employees to transport a lot of data across multiple networks, some of which may involve connections that
are not secure.