Class 12:(27.02.2009) Principles of Organizing

Principles of Organizing

Principles of organizing proposed by E F L Brench provides a set of guidelines or points to be considered during the process of organizing. They are

• Objectives
• Specialization
• Span of control
• Exception
• Scalar Principle
• Unity of Command
• Delegation
• Responsibility
• Authority
• Responsibility
• Flexibility

Departmentalization

Departmentalization is the process of horizontally segmenting a group of activities into a unit or division within an organization. The following are some of the factors that can be used for departmentalization

• Functions - in this an organization is divided into different departments based on the function carried out. Example are production deprtment, Finance department etc
• Product- based on products - For example Hindustan Lever has different departments based on different products - detergents, Soaps, Chemical, Toileters , Johnson & Johnson has divisions- Children products, Surgicals, Microsoft has different products such as Operating Systems, Office products, databases
• Customers - in this category customer base is used as the basis for departmentalization such as Militarty customer, Civilian customers, Commerical customers A bank may divide it customers as business customers and individual customers
• Territory or region or Time - such as Railways, Indian Airline or Air India

Class 11( 26.02.09) Organizing

Organizing is the second function of management. The end of planning is the production of "agenda" for the enterprise to carry out. The process of establishing a mechanism to implementing plans is called Organizing.

• Organizing has been defined a rational co-ordination of activities to meet objectives.
• It is also a process of determining activities, grouping them into jobs and establishing hierarchy,authority, responsibility and relationships ( who should lead) among positions within an enterprise

The basis of organizing process is objectives set by the planning process. These objectives are converted into activities, these activities are grouped into jobs and these jobs are assigned to employees and hierarchy established among these employees. The hierarchy includes establishing positions.
For example: The objective of SDM CET college is offering Technical education. In order to realize we identify two fundamental activities

• Teaching- grouped into departments such as CIVIL and hierarchy such as HOD
• Administrating- support services - admission, exam etc

An enterprise can be organized for the benefit of targets. Here are different types

• owners
• members-such as unions
• clients- colleges, hospitals
• General Public- government departments- eg. Hubli Dharwad One
  In a hierarchy- number of people reporting to a particular authority is called Span of Control
  For instance, with 4 deans and 7 HOD’s reporting to him, Our principal has a span of control 0f 11.
  

Class 10: (25.02.09) Decision Making

The entire planning process is nothing but a decision-making activity. A decision-making is an activity for choosing. A decision-making process - involves (1) purpose for decision-making, )2) generating of choices or alternatives that are likely to meet that purpose, and (3) establishing a criteria for making the choice. In an organization decision-making occasion arises- generally either when it encounters (a) problem-solving situation, or/ and (2) exploit a new opportunity.

Depending on the nature of decision making situations- it may involve one or more decision-makers ( a group, team, management etc)

There are two types of decisions in an organization

• Programmed Decisions: Programmed decisions are taken with the application of a policy- For instance - admitting a student to a course. This kind of decision is also called Pragmatic decision
• Non-Programmed Decision: are those decisions that involve novel situations or those decision that have no precedence

The outcome of a decision may be certain, uncertain or risky

In case a decision-maker is using a subset of all possible choices open to him- he is said to be making bounded rationality decision

Some of the challenges faced by decision-maker include

• Insufficient information
• non-cooperative environment
• incompetence

Class 9: (24.2.2009) Types of Plans

Every activity or initiative in an organizzations begins with planning. Durability of a plan depends on its utility. Based on the utility plans are classified as

• Single use Plans : plans made for an occasion such as a programme or event are called Single use plans. Budgets belongs to this category
• Standing Plans-Plans that are made once and used for a longer period are called standing plans- These consists of - Policies, Procedures, Methods and Rules

Policy: provide a broad direction or a top level approach - for example- Licensing policy, advertising policy

Procedure : provide a way to apply policy in some situations

Methods: provide one or more ways in which you can avail a service allowed in policy. For instance - one can obtain degree certificate either in person or in absence

Rules: Restrictions that are applied within a policy

Class No:8 (20.02.09) Planning

The Unit 2 : Planning.

Planning is primary function in the management process. It is the first and foremost functions because it planning that leads to other functions of management. In simple term planning is about deciding

• what to do (determining action(s))
• when to do ( determines timing for those actions)
• how to to ( determining a method or approach)
• who has to do ( assigning the job)

The Nature of planning

Given that all above activities are part of planning process - we determine the nature of planning process. It is evident that planning is

• an intellectual process i.e the planner uses his/her experience, intellect, education in planning
• a decision-making process- generating choices, evaluating them, choosing one and committing
• a continuous process- planning has to be carried out in real-world- any change in real-world causes changes in planing process
• adopts principle of navigational changes- planning process accommodates changes in various forms such as modification, complete changes

Why planning is necessary?

Planning has the following benefits

• It avoids risks and uncertainty- thinking carried out during planning anticipates risks and and finds round about measures to minimize them
• it leads to success- a planned venture is always better than one that is based on intuition
• it helps to focus on organizational goals- planning is all about determining business goals
• it facilitates controlling- provides basis for control measures

The following steps are generally involved in planning process

• Establishing set of goals to be achieved
• Establishing Planning premise
• Deciding the planning period or horizon
• Finding alternative course of actions
• Evaluating and selecting a course of action
• Measuring and controlling the implementation

Forms of plans

Plans can be of different forms depending on the time-frame of their scope.

• Strategic plan: A long term planning considering a 5-10 years ahead. A plan that only provides direction
• Tactical plan : plans that provide more specific details such as actions, groups and timings
• Operational Plans: short term plans for daily or weekly or even monthly duration

Class 7: Neo-Classical and Modern Approaches to Management

Classical theories focused on "work " and "organizations". They treated business enterprise as "technical " and "commercial" entities. The neo-classical approaches- Human Relation movements stressed that business is a "social system" and as such much attention should be accorded to "humans" working in the enterprise. The Hawthorne experiments conducted by Dr. Elton Mayo tested worker productivity in relation to physical conditions such as illumination, working hours, rest pauses, and social settings. The experiments conducted were

• Illumination experiments
• Relay assembly test room
• Interview Programme
• Bank wire room test

These studies concluded that factors such as informal groups, peer attitude have impact on individual productivity.

Behavioural Models proposed by Maslow, McGregor tried to study workers in terms of their behaviour. Maslow proposed a theory of hierarchy of needs which stated that human needs can be represented in hierarchy and people needs change to next level of hierarchy as soon as current level of needs are met. At the lowest level of needs are (1) Physiological Needs- comprising of food, shelter . The next level (2) Security needs - which consists of job , social and other securities, the next in the line is (3) Esteem needs- refer to those needs perceived to be desirable by the individual or group and the last stage is (4) Self actualization needs that have inner motive from the individual.

Modern approaches.

These approaches take a comprehensive view at management process. They include

1. Quantitative approach- data based analysis and decision approach
2. System approach- focusses on inter-related issues among various elements invovled
3. Contigency approach- a ad-hoc approaches

Class No:6 (17.2.09) Administrative Management by Henri Fayol

Henri Fayol, a French industrialist took more holistic approach towards management. Unlike Taylor who focused only on "shop floor" production activities, Fayol took a comprehensive approach and identified the following dimensions of business.

• Technical
• Commercial
• Financial
• Accounting
• Security
• Administrative

He proposed that in order to cover all above aspects- administrative process must include the following functions

• Planning
• Organizing
• Controlling
• Commanding
• Co-ordinating

Then based on above he propose 14 administrative principles.

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of Direction
5. Unity of Command
6. Centralization
7. Order
8. Remuneration
9. Subordinating individual interest to group interest
10. Scalar chain
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps (team spirit)

Class 5:(16.2.09) Development of Management Thought

Management is a tool for organized efforts. There are well known historical examples such as pyramid,Taj Mahal, Great Wall of China to name few, the construction of which might not be possible without some kind of organized efforts. In other words can we origin of management thought and management principles in action in those constructions. Outwardly it looks so, however a deeper look at them shows that constructions of these took inordinately more time and consumed resource in great quantities. In other words these constructions were not subject to time and resource constraints and hence they can be said to use management principles in true spirit.

The real need for management practice came during industrial age. Until then human society was simple, mostly centred around villages, work was simple and carried out by individuals or families such as carpenters. With the invention of steam engines, a host of applications were found. Ships fitted with steam engines were no more at the mercy of winds- but can travel much faster than winds. Locomotives allowed people to travel across country. The steam engine created a new object: factory. The factory moved production away from home and family members. In order to organize work in this new production setting- Division of work was proposed. In addition a new approach - management was needed to control and direct production efforts at these factories.
Development of management thought can be broadly traced under following categories

1. Classical approaches consisting contributions from Taylor, Fayol and Weber
2. Human Relations Models
3. Modern approaches consisting of system approaches, quantitative approaches and contingency approaches

Taylor's Scientific Management

Taylor was a mechanist and as such knew details about working conditions of employees and their attitude towards work. He was the first person to insist "systematic approach" towards organizing production work. He came out with following principles which is famously known as "Scientific Management"

1. Time and Motion study
2. Differential Payment
3. Drastic reorganization of supervision
4. Scientific recruitment of employees
5. Intimate relation between employees and owners

Class 4: Management as a process.............. Revision

Management is also seen from "process" perspective. In the real world situations management functions do not necessarily follow a strict sequence - Planning through controlling. These functions could play on each other and many of them- planning, organizing in a dynamic manner. Changes in planning may demand alternatives in organizing and feedback from control function may lead to changes in planning stage. Hence management can be regarded as a process in which different functions interplay among themselves creating a circular cause and effect phenomenon.

The terms Administration and management are some times used interchangeably. However some experts do differentiate between them. According to them administration involves "thinking" and is concerned with things such as policy making etc. Management is about "doing", "executing" or "carrying out" actions implied by administration. As such they identify two different processes- administrative management and operative management. Peter Drucker is of opinion that management is used when process is sensitive to "economic consequences" while administration is used when economic matters are not of prime concerns such as military and government processes.

Management is a behavioural science and as such is not exact in its predictions. It is more like political science or psychology than physics. Management is also not a profession in the true sense of the word since entry into professional management does not require any formal qualification in management. This is in contrast to medical or law profession where basic qualification is a must.

A successful business needs to be transferred to next generation sooner or later. This is called "succession". If a business is transferred to a family member then it is called "family management" and on the other hand, if an outside professional assumes the reins of the business it is called "professional management"

Class No 3: Levels of Management, Managerial skills

Management function pervades across the enterprise and works at all levels. However the position of an individual within the organization's hierarchy determines the nature and content of his or her managerial position. The lowest level of management is called first-line of management which consists of people such as foreman, sales executives etc. The next level of management is called middle-level management which consists of people such as production managers, process engineers etc. Middle management consists of a great bulk of any organization. The next level of management is called Top-Management which the highest powered group in a given organization. In case of a business top management consists of Board of directors, CEO, President etc.

Examples:

SDM Educational Society:

Top Management: Board of Governors

Middle Management: Heads of institutions such as principals/directors

First-Line management : Heads of departments, faculty etc

Managerial skills

Management work demands skills in people. Skill is an ability to translate knowledge into action. The nature of skills needed depends on the work on hand and this itself depends on the level of management. In general three are three categories of skills expected.

Conceptual skills are expected from TOP management. Conceptual skills are those that understand business environments, opportunities that are emerging and conceptualise "business realities" into a business plan

Example: In the 1990's Infosys formulated a new paradigm of business that combines low cost capital, cheap labour, and high profitable market into one profitable model of business called Global Delivery Model

Google came out with a AdSense, Adwords and built a profitable business around that

Human Resources skills are those skills that help managers to get best out of their work force. These include among other things ability to understand people's motives, desires, expectations, tendencies, working styles and to get best performance from them. These skills are required by middle management.

Technical skills are those that help business produce products or services. These skills gained through professional education such as engineering or medicine.

Class 2: Management Introduction

Management is a tool for achieving results. It is a disciplene concerned for enhancing human performance. Management implies skilful marshalling of the resources available to achieve goals set, within the constraints of all the resources available.
Definitions of Management
Management is the art of getting work done through people- Mary Follet
Management is a process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources- Terry

Functions of management - General List

• Planning - deciding what to do, when to do, how to do, and who has to do it
• Organizing- giving Structure and staffing
• Directing- motvating and leading
• Controlling - setting goals and deadlines and monitoring progress

Functions of Management - an extended list by Luther Gulick

• Planning, Organizing, Staffing, Directing, Co-ordinating, Reporting and Budgeting - POSDCORB

In addition above function, Ernest Dale has added the following functions

• Innovation- converting an invention into economic value or business model
• Representation - representing in various outside agencies

Roles of a Manager:

Role is an activity conducted by a manager or in which he or she takes participation. It is a set of behavioral expectations of related individuals or groups from a manager

Interpersonal

• Figurehead
• Leader
• Liaison

Informational

• Monitor
• Disseminator
• Spokesman

Decisional

• Entrepreneur
• Disturbance Handler
• Resource allocator
• Negotiator