4. MANAGEMENT
• DEFINITION:
• As an Art:
• MARY PARKER FOLLET “ Management is the art of getting things
done through people.”
• HAROLD KNOOTZ “ Management is the art of getting things done
through and with people in formally organized groups.”
• As a Process:
•
• HENRY FAYOL “ To manage is to forecast and to plan, to organize,
to command, to co-ordinate and to control”
• GEORGE TERRY “ Management is a distinct process consisting of
planning, organizing, actuating and controlling ,performed to
determine and accomplish stated objectives with the use of human
beings and other resources.”
• Three way Definition by THEO HAIMANN:
• * As a Noun – the group of managers at different level.
• * As a Process- functions or elements of management.
• * As a Discipline- subject or a body of knowledge.
5. CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS:
• Continuous Process:
• All Pervasive :
• Team Activity :
• Result Oriented.
• Intangible.
• Non Replaced
• Art As Well As Science:
• Situational in Nature.
• Goal Oriented Activity :
• Universal
• Need not be Ownership.
(CATRINA S GUN)
6. 1. Corporate Image
2. Optimum use of Resources
3. Reduction in Absenteeism
4. Professional Approach
5. Organisational Soundness
6. Better Relations
7. Allows Quality Life.
8. Team Spirit.
9. Encourages Initiative
10. Improves Technology
11. Motivation
12. Adopts Specialisation.
13. Growth and Expansion
14. High Efficiency.
7. PRINCIPLES OF MANAGEMENT:
• 1. Division of Work. D-ivision of Work.
• 2. Authority and Responsibility. A-uthority and Responsibility.
• 3. Discipline D-iscipline
• 4. Unity of Command U-nity of Command
• 5. Unity of Direction. U-nity of Direction.
• 6. Subordination of Interest S-ubordination of Interest
• 7. Remuneration. C-entralisation
• 8. Centralisation O- rder.
• 9. Scalar Chain R-emuneration.
• 10. Order. E-sprit-De-Corps
• 11. Equity S-calar Chain
• 12. Stability. S-tability.
• 13. Initiative I-nitiative
• 14. Esprit-De-Corps E-quity
(DADUUSCORESSIE)
8. ARTS SCIENCE PROFESSION
Meaning:
Art means an in born talent
or a creative skill acquired
systematically through
learning and practice to
accomplish certain goals.
Art is a combination of
knowledge, talent and
skilled acquired skill
through experience.
Science is the systematic
knowledge based on facts as
well as universally accepted
laws, principles and rules
laid down through repeated
experiments.
Profession is an occupation
carried on by a person after
acquiring specialized
knowledge and skill spread
by the Institution of
professionals.To provide
expertise service to the
client against fees within
the code of conduct laid
down by Institution of
Professionals on acquiring
required qualification and
skill.
IS MANAGEMENT AN ART, SCIENCE, PROFESSION?
9. Characteristics of
Art:
Art requires:
1.Knowledge.Skill Talent
and Innovativeness
2.Initiative
3.Application of Ideas
4.Dedication.
5.Intelligence.
6.Goal Oriented
* Mary Parker Follet
* Harold Koontz
Characteristics of
Science:
Science is :
1. Systematized body of
knowledg
2. Based on Universally
accepted laws,
principles, rules.
3. Experiments
4. Facts –little scope for
imagination.
5. Systematic process of
Decision M.
* F.W.Taylor – Father of
Sc.Mg
Characteristics of
Profession:
Profession is :
1. Required Qualification
2. Specialised Knowledge.
3. Expertise-skill.
4. Existence of
Institution.
5. Services against fees.
6. Code of Conduct.
7. Registration for
Membership.
11. •LEVELS OF MANAGEMENT:
.
TLM
1. Framing of Plans and policies BOD
2..Long term Decisions (5 to 20 yrs.) CEO
3.More time for Planning and Organising. PSDT
4.Responsible towards Govt.,Shareholders and Publice. VPSDT.
5 Conceptual Skill.
MLM
1. Interpretation of Policies.
DIV.HEAD
2. Decisions for 1 to 5 yrs. MGRS.
3. More time to lead, to motivate & to build group efforts.
Responsible towards technical, skilled individuals and
Top Level Management.
Human Skill.
LLM
1. Implementation of policies. Decision for a ASST.Mgr
2. week or one year. More time to direct SUPRV.
and controlling.
3. Responsibility to get work done.
4. Technical skill.
12. MANAGERIAL SKILL
• CONCEPTUAL SKILL: to thinks in terms of relative tendencies, probabilities,
patterns, and connections.
• HUMAN SKILL- an individual’s ability to work with and understand others, to
lead, motivate, manage conflict and build group efforts.
• TECHNICAL SKILLS: required to understand tools, procedures and techniques
needed to perform a given task.
• TLM
• MLM
• LLM
17. PRINCIPLES OF HUMAN
RELATIONS MOVEMENT:
• HAWTHORNE STUDY IS AN OUTCOME OF
NEGATIVE REACTION TO THE
IMPERSONALITY SCIENTIFIC MGT.AND
BUREAUCRATIC THEORY,WHICH HELPED
TO IGNITE THE HR MOVEMENT:
• PHILOSOPHY OF HR APPROACH:
1. NOT ONLY MONETORY GAINS BUT ALSO
RECOGNITION & APPRECIATION.
2. FEELING AND EMOTIONS
3. ALSO WORK THROUGH INFORMAL RELATIONS.
4. NEED HIGH DEGREE OF JOB SATISFACTION AND
JOB SECURITY.
5. EXPECT GOOD COMMUNICATION.
6. NO CONFLICTS AND MISUNDERSTANDING.
7. FREEDOM FROM STRICT SUPERVISION.
8. LIKE TO PARTICIPATE IN DECISION MAKING.
18. • FREDRICK W.TAYLOR: (1856-1912)
• Henry Gnatt,Frank,Lillian Gilbreth and Harrington Emerson. Scientific
management refers to "that kind of management which conducts a
business or affairs by standards established by facts or truths gained
through systematic observation, experiment, or reasoning.
1. Develop the science of work
2. Adhere absolutely to work standards
3. Select, place, and train workers scientifically
4. Apply a financial incentive system
5. Use specialized functional supervision
6. Keep labour-management relations friendly
*TAYLOR’S SCIENTIFIC
MANAGEMENT:
19. * ELEMENTS:
1. Time, Motion and Fatigue Study
2. Differential Piece Rate System
3. cooperative alliance
4. Functional Foremanship
(At Planning Level-Disciplinarian,Instruction card clerk, Routine
Clerk, Time and Cost Clerk)
(At the Shop Level: Repair Boss, Inspector, Gang Boss, Speed
Boss)
5. Mental Revolution.
*CRITICAL EVALUATION:
1. Wrong Assumption
2. Indi. Approach
3. Narrow Applicability
4. Lack of Unity of Comm.
5. Mechanical Approach
6. Exploitation of workers 6.Seperation of Planning &
Execution
(WIN MELS)
20. CONTINGENCY APPROACH
(Situational Approach)
2. INDENTIFY APPROPRIATE STYLE AND FIT
IT TO SITUATION
1. DEVELOP DIAGNOSTIC SKILLS FOR
SITUATIONAL AWARENESS
MANAGEMENT CHALLENGES
3. DEVELOP CAPACITY FOR
FLEXIBLE BEHAVIOUR
21. BEHAVIOURAL SCIENCE
APPROACH (Human Resource
Approach.)
• BSA is an extension of Human Relations Approach
• ELTON MAYO,ABRAHAM MASLOW and
DOUGLA McGREGOR,CHESTAR BARNARD,
WALTER SCOTT,F. HERZBERG.
MASLOW’S - NEED HIERARCHY THEORY
D. McGregor - THEORY X AND THEORY Y
HERZBERG’S – TWO FACTOR THEORY.
CHESTER BARNARD - MANAGERS ARE TO MAINTAIN
SYSTEM OF COOPERATIVE EFFORTS.
22. WALTER DILL SCOTT -
EMPLOYEES ARE NOT ONLY MOTIVATED BY ECONOMIC
REWARDS, BUT ALSO BY A SET OF SOCIAL NEEDS.
BASIC ASSUMPTIONS:
1. ORG. ARE SOCIAL AND TECHNICAL SYSTEM
2. SEVERAL FACTORS INFLUENCE INTERPERSONAL
RELATIONS.
3. PHYSIOLOGICAL AND PSYCHOLOGICAL NEEDS.
4. INDIVIDUALS DIFFER IN PERCEPTION
5. CONFLICT IS INEVITABLE TO A CERTAIN EXTENT.
6. FUSION OF PERSONAL AND ORGANISATIONAL GOALS
23. HAWTHORNE EXPERIMENTS
• Between 1924 and 1933, a series of worker productivity studies
conducted at the Hawthorne Plant of the Western Electric Company,
Chicago. These studies, widely known as the Hawthorne studies
strongly influenced the course behavioral management theory,
IT WAS CONDUCTED IN TO FOUR PARTS:
• PART I – ILLUMINATION EXPERIMENT (1924-27)
• PART II- RELAY ASSEMBLY TEST (ROOM EXPERIMENT)
(1927-29)
• MASS INTERVIEWING PROGRAM (1928-31)
• BANK WIRING OBSERVATION (ROOM EXPERIMENT)(1932-33)
• OBSERVATIONS:
1. BETTER PHYSICAL WORKING CONDITIONS
2. INFORMAL AND INTER PERSONAL RELATIONS
3. FREEDOM TO PARTICIPATE IN DECISION MAKING
4. EMPLOYEES WELFARE
5. RESPECT AND DIGNITY
6. EFFECTIVE COMMUNICATION.
24. HENRY FAYOL TO DEVELOPMENT OF
MANAGEMENT THOUGHT (ADM. MGT.THEORY)
• HENRY FAYOL (1841-1925) –FATHER OF MODERN
MANAGEMENT
• MARY PARKAR F.,LUTHER GULLICK,LYNDALL URWICK,
ERNEST DALE,JAMES MOONEY ETC.
• HE CONTRIBUTED PODCC FUNCTIONS,
• FAYOL IDENTIFIED SIX MAJOR ACTIVITIES OF
ORGANIZATIONS:
1.TECHNICAL ACTI
2.COMMERCIAL
3. FINANCIL
4. ACCOUNTING
5.SECURITY
6.MANAGERIAL * 14 PRINCIPLES OF MANAGEMENT
CRITICAL EVALUATION:
1. MECHANICAL APPROACH
2. MANAGEMENT ASPECTS ARE COVERED
3. CONCEPT BORROWED FROM MILLITARY SCIENCE
4. NO EMPHASIS ON INFORMAL ORGANISATION
5. MANAGEMENT ORIENTED THEORY
25. GANDHIAN PRINCIPLE OF
TRUSTEESHIP:
• MAHATMA GANDHI: ARE CLOSELY
RELATED TO THE CONCEPT OF
SOCIAL RESPONSIBILITY OF
BUSINESS.
• PRINCIPALS OF TRUSTEESHIP:
1. ACCUMULATION OF WEALTH AS PER
NEED
2. VOLUNTARY SURRENDER OF EXCESS
WEALTH TO AVOID REVOLT
3. MODERATE RIGHT TO PRIVATE
PROPERTY
4. GOVERNMENT SHOULD REGULATE
TRUSTEESHIP.
26. PLANNING: The process of determining in advance
what should be accomplished and how it should be realised.
• NEED AND IMPORTANCE:
• Solution to Problems
• Uniform and Quick Decision making
• Provides Proper Direction
• Encourages Innovation
• Ensures Stability
• Removal of Wastages, Chaos & Confusion
• Minimizes Risks
• Aims at Goal (Goal Oriented)
• Nurture Co-ordination & Efficiency
(SUPERMAN)
27. CONSTRAINS/LIMITATIONS PLANNING:
1. Problem of Changing Environment
2. Expensive & Time Consuming
3. Difficulty to obtain information
4. Dangers of Over & Undertargetting
5. Obstruct individual freedom & initiative.
6. Generates Frustration
7. Generates Rigidity
8. Generates Conflict
(PETDDOGGG)
28. ESSENTIALS OF GOOD
PLAN:
• Simplicity
• Suitability
• Unity of Purpose and Direction
• Comprehensive
• Continuity
• Ensures Flexibility
• Specific Objectives (Clear Objectives)
• Realistic and Acceptable
(SSUCCESR)
29. STEPS IN MANAGERIAL
PLANNING:
Step-1
Developing
An
Awareness
of the
Present
state
1.Analyzing
Int. Evt.
2.Analysing
Ext.Evt.
Step-2
3. Establis
hing
Goals:
•Goal
Planning
• Domin
Planning
• Hybrid
•Planning
Step-3
4. Planning
Premises
• Forecasting
• Formulating
Assumptions.
Step-4
Determing
a course
Of Action
5. Framing
Alternative
Plans
6. Evaluating
Alt. Plans
7. Selection
of the best
plan
Step-5
Implem-
entation
&
Follow up
8. Formu
lating
Supportive
Plan
9. Implem
entation
10.Follow
up.
30. COMPONENTS OF PLAN:
PLAN
FOR REPETATIVE
ACTIVITIES
1. Mission
2. Objectives
3. Policies
4. Procedures
5. Rules
6. Strategies
7. Forecasting
FOR NON-REPET-
ATIVE
ACTIVITIES
1. Programmes
2. Projects
3. Schedules
4. Budgets
31. DECISION MAKING:
THE PROCESS OF IDENTIFYING A SET OF FEASIBLE
ALTERNATIVES,AND FROM THESE,CHOOSING A
COURSE OF ACTION.
• DM PROCESS
1. Identifying the Problem
2. Analysing the Problem
3. Developing Alternative Solutions
4. Selecting the Best Solution
5. Implementation
6. Follow up
(IADas SIF)
32. DECISION MAKING
TECHNIQUES:
(A) PROGRAMMED DM TECH.
1. Game theory
2. Decision Tree
3. Probability Decision Theory
4. Linear Programming
5. Network Techniques
6. Payoff Matrix
7. Queuing Theory
(GDPLiNePQ)
33. (B) NON-PROGRAMMED DM TECH.
Brainstorming Technique
Nominal Group Technique
Delphi Technique
Quality Circle
Heuristic Technique
(BCDNgH)
34. MBO:MBO Practitioners deal with HR model &
Theory Y
Stage 4
COLLECTIVELY MONITOR
PERFORMANCE (Design collective
Action Plan if needed)
Stage 3
IMPLEMENT THE PLAN
Stage 2
SCOLLECTIVELY FORMULATE
AN ACTION PLAN,EVALUATING
TECHNIQUE AND SCHEDULE
Stage 1
COLLECTIVELY FORMULATE JOB
OBJECTIVES COMPATIBLE
WITH OVERALL DEPARTMENTAL
OBJECTIVES
35. ORGANISING: The process of prescribing
formal relationships among people and resources .
• STEPS:
1. Defining Organisational Objectives
2. Identifying Work Involved
3. Grouping of Activities
4. Defining & Delegation Authority
5. Establishing Formal Relationship
36. PRINCIPLES:
• Unity of Objectives
• Specilisation
• Span of Control
• Proper Balance
• Separation of Line & Staff Function
• Authority & Responsibility
• Flexibility
• Exception Principle (Complex problems by TLM)
( USSPSAFE)
37. •FORMAL ORG. *INFORMAL
ORG.
• Deliberate * Natural &
Spontaneous
• Shown through Org.Chart * Can’t
• Relationship Clearly Defined * No Superior
Subordinate Relati
• Commu.through Formal Channel * Through
grapevine
• Suitable to LS Org. * Suitable to
SS Org.
• Operates as per rules & Norms * as per
informal understanding
and
conventions.
• Stability * Unstable
• Operates independently * Exists and
38. TYPES OF
ORGANISATION
• LINE ORGANISTION
• LINE & STAFF ORGANISATION
• FUNCTIONAL ORGANISATION
• MATRIX ORGANISATION
40. ADVANTAGES OF LINE & STAFF
ORGANISATION
• ADVANCED NATURE
• Advantages of expert services
• Maturity in decision
• Accurate evaluation of work
• Relisation of Responsibility
• Discipline
•
41. LIMITATIONS OF LINE &
STAFF ORGANISATION
• CONFLICTS
• DISHONOUR OF EXPERTS
• COSTLY METHOD
• DELAY IN DECISION MAKING
• CHAOS & AMBIGUITY
42. REASONS FOR CONFLICT
BETWEEN LINE AND STAFF
ORG:
• COMPLAINTS FROM LM AGAINST SM:
1. UNFAMILIAR WITH ACTUAL WORK
2. SUPERIRORITY COMPLEX
3. EXCESSIVE PAPER WORK
4. LACK OF PRACTICAL KKNOWLEDGE
5. ENJOYS EASY ACCESS WITH MANAGEMENT
6. LESS DEGREE OF FREEDOM
(USELLEESS)
• COMPLAINTS FROM SM AGAINST LM:
1. LAST MINUTE FOR ADVICE
2. IRRESPONSIBLE ACT OF LINE MANAGERS
3. AVOIDS NEW IDEAS (RELUCTANT TO ACCEPT
NEW IDEAS)
4. RESPONSIBILITY SHIFTING
5. LACK OF MUTUAL RESPECT
6. ENJOYS ALL AUTHORITY
7. DIFFICULTY IN EXERCISING SKILL
(LIARLED)
43. MEASURES TO SOLVE
THE CONFLICTS
• Line to have clear Authority
• Formal Meeting
• Training Facility
• Assistance of Higher Authority in the
matter of dispute
• Mutual respect
• Mutual Dependency
• Co-operation
• Clear Demarcation of Function
• No shifting of responsibility
• Job Rotation
• Team work
44. DEFINITION OF MATRIX
ORGANISATION:
• According to KNOOTZ, O’Donnell and
Weihrich
“The essence of matrix management, as
one normally finds it, is combining of
functional and project forms of
departmentation in the same organisation
structure”
45. MATRIX ORGANISATION: US 1960
to solve the problem of aerospace industry-Hybrid Structure
DEPT
PROJEC
T
Dept.A
Manager
Dept.B
Manager
Dept.C
Manager
Dept.D
Manager
Project A
Manager
Project B
Manager
Project C
Manager
Project D
Manager
Project E
Manager
46. FEATURES OF MATRIX
ORGANISATION:
1. Compromise Structure
2. Authority Flows both Down and Cross
3. Role of Functional Heads
4. Role of Project Manager
5. Need of Effective Communication
6. Importance of Training
7. Suitable to Large Projects
8. Subordinates Under Dual Control.
47. ADVANTAGES:
1. Excellence in Interdisciplinary Specialisation
2. Higher Motivation
3. Optimum Use of Resources
4. Authority flows both down and across
5. Distribution of Work
6. Better Co-ordination and control.
• DISADVANTAGES:
1. No Unit of Command
2. Communication Gap
3. Pressure of Work on Staff
4. Complex Operation
5. Costly
6. Speed Creates Stress.
48. HOW TO MAKE MATRIX
ORGANISATION EFFECTIVE?
1. Effective Internal Communication
2. Clear Definition of Role
3. Training for Team Spirit
4. Scientific Selection of Executives
5. Spirit of involvement among Employees.
49. SPAN OF CONTROL:
Sir Ian Hamilton –developed the first popular version
of the concept of limited span of control. (1920)
• DEFINITION:
According to LOUIS ALLEN “ Span of Supervision refers to
the number of people that a manager can supervise”.
• ADVANTAGES:
1. Improves Efficiency
2. Facilitates Concentration
3. Facilitates Continuous Communication
4. Maintains discipline
5. Avoids mistakes
6. Develops Team Spirit
7. Creates Good Image
8. Quick Decision Making
50. SPAN OF
MANAGEMENT/CONTROL:
No. of Subordinate who can be managed
supervised.
• FACTORS AFFECTING SPAN OF CONTROL:
• Capacity of Managers
• Use of Communication Technology
• Time devoted to Supervision
• Effective Delegation of authority
• Training & faith on Subordinates
• Incentives Offered
• Moral of the Subordinates
• Experience & Nature of Subordinates
(CUTETIME)
51. GRAICUNAS THEORY: 1933,V.A.Graicunas-paper
“Relationship in organisation”.
1. Direct Single Relationship
2. Direct Group relationship
3. Cross relationship
• R= n (2n
/2 +(n-1) )TABLE SHOWING POSSIBLE
e.g. No.of Subordinate 5 RELATIONSHIP WITH
EMPLOYEES
• R= 5 (25
/2 + (5-1))
• R= 5(2*2*2*2*2/2 +(5-1)
• R= 5(32/2+(4)
• R= 5(16+4)
• R= 100
No. of
Subordinat
e
Potentials
No. of
relationship
2 6
3 18
4 44
6 222
52. LIMITATIONS:
• 1. Ignores the Frequency of
relationship.
• 2 Ignores the importance of
relationship.
• 3. Several other factors are
responsible.
53. DEPARMENTATION:
• BASES FOR DEPARTMENTATION:
• DEPARMENTATION BY FUNCTION
• DEPARTMENTATION BY PROCESS
• DEPARTMENTATION BY PRODUCT
• DEPATMENTATION BY GEOGRAPHICAL LOCATION
• DEPARTMENTATION BY CONSUMER (FPPGC)
• IMPORRTANCE/BENEFITS OF
DEPARTMENTATION:
1. LEADS TO MANAGEMENT DEVELOPMENT
2. EFFECTIVE CONTROL
3. EFFICIENCY & COORDINATION
4. OPTIMUM USE OF RESOURCES
5. FACILITITATES PERFORMANCE APPRAISAL
6. ASSIGNING RESPONSIBILITY
7. QUICK SERVICE
8. TOTAL EFFECTIVE CONTROL (LEEO FAST)
54. Assign Duties
Transfer of Authority
Acceptance Condition
Creation of Responsibility
DELEGATION OF AUTHORITY
(legitimate right of a person to exercise influence)
55. DECENTRALISATION: Dispersal of
decision making power to the lower level of the
organisation.
• FACTORS AFFECTING
DECENTRALISATION:
• HISTORY OF ENTERPRISE
• AVAILABILITY OF MANAGERS
• MANAGEMENT PHILOSOPHY
• AVAILABLE CONTROL SYSTEM
• SIZE OF THE ORGANISATION
• COSTLINESS OF DECISION
• DECENTRALISED PERFORMANCE
59. HOW TO RESOLVE CONFLICT:
• CLARITY OF PROBLEM
• CLEAR DEMARCATION OF
FUNCTIONS
• ACTIVITIES EXCHANGE
• FORMAL MEETING
• ROTATION OF JOBS
• INITIATING TRAINING
• TEAM WORK
• AUTHORITY INTERVENTION .
(CCAFRITA)
61. SELECTION PROCESS:
1. JOB ANALYSIS
2. ADVERTISEMENT
3. APPLICATION BLANKS/COLLECTION
4. SCRUTINY OF APPLICATIONS
5. WRITTEN TEST
6. PSYCHOLOGICAL TEST
7. PERSONAL INTERVIEW
8. REFERENCE CHECK
9. MEDICAL EXAMINATION
10. FINAL SELECTION FOR APPOINTMENT.
62. SOURCES OF MANAGERISL
RECRUITMENT:
• INTERNAL SOURCES EXTERNAL
SOURCES
PROMOTIONS MANAGEMENT
CONSULTANCY
RETIREMENT
ADVERTISEMENT
INTERNAL NOTIFICATION CAMPUS
RECRUITMENT
TRANSFERS RECOMMENDATIONS
DEPUTATION OTHER
SOURCES:
RECALLS MANAGEMENT TRAINING
SCHEMES
FORMER EMPLOYEES WALK-INS,WRITE-
67. HEZBERG’S TWO FACTOR
THEORY:
HYGINE
/MAINTENANCE
FACTORS
MOTIVATORS
1.COMPANY POLICIES &
ADMINISTRATION
2 SUPERVISION
3. WORKING CONDITIONS
4. INTERPERSONAL
RELATIONS
5. SALARY
6. JOB SECURITY
7. STATUS
8. PERSONAL LIFE
1. ACHIEVEMENTS
2. RECOGNITION FOR
ACHIEVEMENT
3. INCREASED
RESPONSIBILITY
4. OPPORTUNITY FOR
GROWTH
5. CHALLENGING WORK.
68. McGREGOR’S THEORY X &
THEORY Y:
THEORY X
TRADITIONAL
ASSUMPTIONS ABOUT
PEOPLE
THEORY Y
EMERGING VIEWPOINT
ABOUT PEOPLE
1. AVERAGE HUMAN BEING
DISLIKE AND AVOID WORK
2. MOST PEOPLE SHOULD BE
FORCED,
CONTROLLED,DIRECTED
OR THREATENED WITH
PUNISHMENT TO ACHIEVE
ORGANISATIONAL
OBJECTIVES.
3. PEOPLE EXPECT JOB
SECURITY & HAVE LITTLE
AMBITION .
1. AVERAGE HUMAN BEING
LEARNS TO WORK AS
NATURAL AS CHILD
LEARN TO PLAY.
2. PEOPLE WANT RELATIVE
FREEDOM.(USE SELF
CONTROL & SELF
DIRECTION)
3. ACHIEVING OBJECTIVES
LIKE REWARD.
4. PEOPLE SEEK
RESPONSIBILITY
72. CO-ORDINATION:
ADJUSTMENT,INTEGRATION AND
INTERLINKING.
• PRINCIPLES:
1. PRINCIPLE OF EARLY START
2. PRINCIPLE OF DIRECT CONTACT
3. PRINCIPLE OF CONTINUITY
4. PRINCIPLE OF RECIPROCAL RELATIONSHIP (CO RED)
• TYPES:
1. HORIZONTAL COORDINATION
2. EXTERNAL COORDINATION
3. INTERNAL COORDINATION
4. SUBSTANTIVE CO-ORDINATION
5. VERTICLE CO-ORDINATION
6. PROCEDURAL CO-ORDINATION (HE IS VP)
73.
74.
75. SECTION-II
HRM (HUMAN RESOURCE
MANAGEMENT)
• HRM IS A PROCESS:
- A- ACQUISITION FUNCTION- HRP,Job Analysis, Recruitment,
Selection.
- D- DEVELOPMENT FUNCTION- Training & Development
- M- MOTIVATION FUNCTION- Recognition & Reward
- M- MAINTENANCE FUNCTION-Attraction,Retention,good working
condition etc.
• SCOPE/FUNCTIONS:
1. HRP
2. Acquisition function
3. Placement Function
4. Performance Appraisal
5. Incentive (Compensation) Function
6. Training & Development
7. Employees Welfare
8. Achieving Good relations with Labours.
9. Maintenance Function.
(HAPPITEAM)
76. HRP: Manpower Planning
STRATEGY: Forecasting,
Procurement,Development,Allocation and Utilisation
(Monitoring) of HR
• IMPORTANCE OF HRP:
1. Meeting Manpower needs
2. Replacement of Manpower
3. Meeting Technological Challenges
4. Maintaining High moral of the employees
5. Maintaining Desirable working condition
6. Increasing Investment in HR
7. Recruitment and Selection of Employees.
8. Employees Placement (MR.MMM
I RE)
• STEPS IN HRP:
1. Analysing of Organisational Objectives and Plans.
2. HR Demand Forecasting.
3. HR Supply Forecasting.
4. Make Comparison (Estimating Manpower Gaps)
5. Finalising Action Plan (to fill up surplus or shortage
problem)
6. Monitoring, Control and Motivation.
77. HRD:HRD and HRP are two supplementary
Concepts .
ASTD: HRD is the integrated use of: a. T & D,
b.Org.Dev.,and Career Dev. to improve individual, group
and organisational effectiveness.
• SCOPE OF HRD:
1. HRIS
2. ORGANISATIONAL DEVELOPMENT
3. PERFORMANCE APPRAISAL
4. POTENTIAL APPRAISAL
5. EMPLOYEE’S WELFARE
6. PERFORMANCE FEEDBACK AND COACHING
7. QUALITY OF WORK LIFE
8. REWARDS AND INCENTIVES
9. SPECIALISED TRAINING AND DEVELOPMENT (HOPPE PQRS)
78. PERFORMANCE
APPRAISAL:
SYSTEMATIC ASSESSMENT OF EMPLOYEE’S JOB
PERFORMANCE IN TERMS OF ITS REQUIREMENT.
• PURPOSE/USES:
1. PERFORMANCE FEEDBACK
2. TRAINING DEVELOPMENT
3. VALIDATION OF SELECTION PROCESS
4. PROMOTIONS
5. TRANSFERS
6. COMPENSATION DECISIONS
7. HRP
8. MAINTAINING GOOD MANAGEMENT
RELATIONSHIP.
79. LIMITATIONS:
1.HORN EFFECT
2.HALO EFFECT
3. CENTRAL TENDENCY
4. ABSENCE OF UNIFORM STANDARD
5. PERSONAL BIAS
6.RESISTENCE OF EMPLOYEES TO
APPRAISAL
7.INEFFECTIVE COMMUNICATION
8.TIME CONUMING AND EXCESSIVE
PAPER WORK
9.ABSENCE OF APPROPRIATE APPRAISAL
TECHNIQUES. (HHCAP RITA)
81. • MODERN METHODS:
1. Role Analysis
2. Assessment Centres
3. MBO
4. BARS
5. HRA
6. Psychological Appraisal (RAMBAP)
82. HUMAN RESOURCE
ACCOUNTING:
IS CONCERNED WITH MEASUREMENT OF COST & VALUE OF
PEOPLE IN THE ORGANISATION
• NEED OF HRA:
• NECESSITY TO VALUE THE PEOPLE BEHIND SUCCESS
• EXPENDITURE ON HR IS NOT REGARDED AS
INVESTMENT
• REVENUE EXPENDITURE MINIMISES PROFIT
• LOW PROFIT RESULTS IN MINIMISING COST
• REFLECTION OF HUMAN ASSETS.
• MOTIVATION AND MORAL OF EMPLOYEES
• CHANGE OF ATTITUDE OF MANAGERS.
• LIMITATIONS:
1. ASSUMPTION OF STABILITY OF EMPLOYEES
2. DEHUMANISATION
3. LACK OF WELL ACCEPTED STANDARRDS
4. OPPOSE FROM TU
5. UNCERTAIN LIFE OF HR
6. DRAWBACK IN EXISTING VALUATION SYSTEM(COST &
VALUE).
(ADLOUD)
83. TRAINING AND DEVELOPMENT:TEACHING
THE EMPLOYEES TO APPLY THEIR SKILLS & ABILITIES TO
THE REQUIREMENT OF THE SPECIFIC JOBS,THESE
INSTRUCTIONS ARE CALLED AS TRAINING.
• NEED/IMPORTANCE OF TRAINING:
• 1. HIGH EFFICIENCY AND PRODUCTIVITY
• 2. ADJUSTMENT WITH NEW TECHNOLOGY
• 3. REDUCES ACCIDENTS AND WASTAGES
• 4. INFORMATION ABOUT THE COMPANY’S
POLICIES AND
PROGRAMMES.
• 5. PREVENTION OF MANPOWER OBSOLESCENE
• 6. OPPORTUNITY TO NEW COMERS TO ADJUST
• 7. TRAINING RESULTS IN POSITIVE ATTITUDE
• 8. EMPLOYEES SAFETY
• 9. REDUCES ABSENTEEISM AND TURNOVER
• 10. REFRESHING (HARI
POTERR)
84. METHODS OF TRAINING
:
• A) ON THE JOB TRAINING:
• 1. JOB ROTATION
• 2. JUNIOR BOARDS
• 3. COACHING & COUNSELLING
• 4. PLANNED PROGRESSION
• 5. UNDERSTUDIES ( JJCPU)
• B) OFF-THE-JOB TRAINING:
• 1. CLASS ROOM METHOD
• 2. COMMITTEES
• 3. BUSINESS GAMES
• 4. SIMULATION
• 5. CONFERENCES (CCBSC)
85. PRINCIPLES OF GOOD
TRAINING PROGRAMME:
• SYSTEMATIC
• ACTIVE INVOLVEMENT
• MOTIVATING
• INSTRUCTIONS IN PARTS
• INDIVIDUAL DIFFERENCES
• RE-INFORCEMENT
• PROGRESS REPORT
• EXPERTISE OF TRAINERS
• SUITABLE EVALUATION TECHNIQUE
• TRAINING PERIOD
(SAMIIR
PEST)
86. PRODUCTION
MANAGEMENT:PRODUCTION FUNCTION
OF MANAGEMENT,FUNCTIONAL AREA OF
TOTAL MANAGEMENT.
• SCOPE OF PRODUCTION PLANNING:
1. PRODUCT SELECTION AND DESIGN
2. PROCESS SELECTION AND PLANNING
3. CAPACITY PLANNING
4. PRODUCTION PLANNING
a. ROUTING
b. SCHEDULING
5. PRODUCTION CONTROL
• QUALITY CONTROL
• INVENTORY CONTROL
• INDUSTRIAL REENGINEERING/WORK STUDY
• PLANT LOCATION AND LAYOUT (5PCRSQII)
(5PQRS CII)
87. PRODUCTION PLANNING AND
CONTROL:
PPC IS THE BRAIN OF PRODUCTION SYSTEM WHICH
COMPASSES FOUR MAIN FACTORS VIZ.
QUANTITY,QUALITY,TIME AND PRICE.
1.
ROUTING
4.
FOLLOW-UP
3.
DESPATCH-
ING
2.
SCHEDU-
LINGPRODUCTION
PLANNING &
CONTROL
PROCESS
88. *IMPORTANCE/ADVANTAGES/OBJ
ECTIVES OF PRODUCTION
PLANNING:
• ACHIVING BUSINESS OBJECTIVES
• COST REDUCTION
• RATIONALISATION OF PRODUCTION
ACTIVITIES
• INDUCTION OF NNEW PRODUCT
• INITIATES SUPPORT TO OTHER
FUNCTIONAL AREAS
• OPTIMUM USE OF RESOURCES
• EXPANSION AND DEVELOPMENT OF FIRM
• SPREAD EFFECT
(ICE ROSIA)
89. PRODUCT DESIGN:
FORM DESIGN:SHAPE AND APPREARANCE OF
PRODUCT
FUNCTION DESIGN:HOW A PRODUCT WORKS?
• CHARACTERISTICS OF PRODUCT DESIGN:
• FUNCTIONS IN RESPECT OF NEEDS
• REPAIRABLE
• RELIABILITY
• AESTHETICS (PHILOSOPHY OF BEAUTY)
• DURABILITY
• PRODUCIBILITY
• SIMPLICITY
• COPACT RRP DC
• FACTORS DETERMINING PRODUCT DESIGH:
• CUSTOMER SPECIFICATIONS
• COST OF THE PRODUCT
• QUALITY CONTROL
• COMPUTER AIDED DESIGN (CAD)
• PRODUCTION FACILITIES
• GOOD WILL OF THE COMPANY
• RESEARCH AND DEVELOPMENT
90. PRODUCT DEVELOPMENT:
• CHARACTERISTICS OF PRODUCT DEVELOPMENT:
1. UTILITY OF PRODUCT
2. FACILITY TO REPAIR
3. MINIATURISATION
4. CLEAR DRAWINGS AND SPECIFICATION
5. USE OF COLOUR
6. CONSIDER PRODUCTION COST
7. RELIABILITY OF PERFORMANCE
8. PRODUCT LIFE
9. REDESIGN OF THE PRODUCT
10. USE OF PRODUCT
• STAGES IN PRODUCT DEVELOPMENT:
1. IDEA GENERATION
2. IDEA SCREENING
3. PRODUCT CONCEPT TESTING
4. BUSINESS ANALYSIS
5. DETAILED ENGEERING DESIGN
6. PRODUCT DEVELOPMENT
7. TEST MARKETING
8. COOMERCIATION
9. PRODUCT USE AND SUPPORT
10. PRODUCT EVALUATION AND IMPROVEMENT
92. FMS (FLEXIBLE
MANUFACTURING SYSTEM)
• ADVANTAGES:
1. HIGHER PRODUCTIVITY
2. BETTER CAPITAL UTILISATION
3. IMPROVED QUALITY
4. REDUCE LABOUR COST
5. LIMITED INVENTORY
• LIMITATIONS:
1. TIME CONSUMING
2. HIGH INITIAL INVESTMENT
3. ADAPTIBILITY DIFFICULT
4. PROBLEM OF STANDADISATION
5. HIGH FIXTURE REQUIREMENT
• SUITABILITY OF FMS:
1. ALL PRODUCTS ARE VARIATION OF A STABLE BAIC
DESIGN
2. ALL PRODUCTS UTILISE THE SAME FAMILY
COMPONENTS
3. THE NUMBER OF COMPONENTS ARE ONLY MODERATE
(10-50)
4. THE VOLUMN OF EACH COMPENET IS MODERRATE
(1000-30000 UNITS ANNUALY) BUT IN LOT SIZES AS
SMALL AS ON UNIT.
95. TECHNIQUES TO IMPROVE
PRODUCTIVITY:
1. VALUE ENGINNERING
2. QUALITY CIRCLE
3. PERT & CPM
4. MONETORY AND NON MONETARY INCENTIVES
PLANS
5. OPERATIONS RESEARCH
6. TRAINING
7. JOB ENRICHMENT
8. MATERIALS MANAGEMENT
9. QUALITY CIRCLE
10. JOB EVALUATION
11. ERGONOMICS
12. PERFORMANCE APPRAISAL
13. TQM
96. HOW TO CALCULATE INDUSTRIAL
PRODUCTIVITY ( MEASUREMENT ): P=
O/I
• LABOUR PRODUCTIVITY=O/MH
• CAPITAL PRODUCTIVITY=O/CE
• RAW MATERIAL PROD =O/RMC
• MACHINES PRODUCTIVITY=
O/MHW
• PRODUCTIVITY OF LAND = O/AL
97. NATIONAL PRODUCTIVITY
COUNCIL:1957,DR.VIKRAM
SARABHAI COMMISSION
• OBJECTIVES:
1. TO PROMOTE PRODUCTIVITY CONSCIOUSNESS
2. DISSEMINATE & DEMONSTRATE CONCEPT
KNOWLEDGE FOR PRACTICAL APPLICATION.
MAIN ACTIVITIES:
1. TRAINING PPROGRAMMES
2. SEMINARS AND WORKSHOPS
3. PRODUCTIVITY SURVEYS
4. SPONORS PERSONNELS FOR TRAINING ABROAD
5. SPONSORS STUDY TEAM ABROAD
6. SUPPLY OF INFORMATION
7. MAINTAIN LIBRARIES
8. ASSIST LOCAL PRODUCTIVITY COUNCILS
9. FUEL EFFICIENCY SERVICE
10. ASSIT ASIAN PRODUCTIVITY ORGANISATION
98. PLANT LOCATION:
• IMPORTANCE/ADVANTAGES:
1. REDUCE COST OF PRODUCTION
2. INCREASE IN SALES
3. DECIDES INVESTMENT COST
4. EXPANSION AND GROWTH
5. CUSTOMER SATISFACTION
6. REPUTATION AND GOODWILL
7. COMPETITION
8. EMPLOYEES WELFARE
• FACTORS DETERMINING PLANT
LOCATION:
1. LAW AND ORDER SITUATION
2. INFRASTRUCTURE FACILITIES
3. LABOR RELATIONS
4. SKILLED WORKFORCE
5. SOCIAL INFRASTRUCTURE
6. INVESTOR FRIENDLY ATTITUDE
7. PROXIMITY TO MARKET
8. PROXIMITY TO SOURCE OF RM
9. SUPPORTING INDUSTRIES AND SERVICES
10. SAFETY REQUIREMENTS
99. QUALITY CONTROL:
• IMPORTANCE OF QUALITY CONTROL:
1. DETECTION OF QUALITY DEVIATION
2. ACCEPTANCE BY CUSTOMERS
3. GOODWILL
4. QUALITY CONSCIOUSNESS AMONG WORKERS
5. REDUCES INSPECTION COSTS
6. TIMELY DELIVERY
7. IMPROVES PRODUCTIVITY
8. MOTIVATION
• DIMENSIONS OF QUALITY CONTROL
• TECHNIQUES:
1. INSPECTION
2. STATISTICAL QUALITY CONTROL
3. JIT
4. QUALITY AT THE SOURCE
5. QUALITY CIRCLES
6. TQM
100. TQM:IS A STRATEGIC APPROACH TO PRODUCE
THE BEST POSSIBLE PRODUCT AND SERVICE
THROUGH
CONSTANT INNOVATION AND TIMELY ACTION
• FEATURES:
• CONTINUOUS PROCESS
• CUSTOMER ORIENTED
• INVOLVES EMPLOYEES
• RECOGNITION AND REWARDS
• SYNERGY
• TECHNIQUES
• SYSTEMATIC APPROACH
IMPORTANCE /ADVANTAGES OF TQM:
1. CUSTOMERS SATISFACTION
2. BUILDS COMPETITIVENESS
3. GOODWILL
4. HIGH MORAL & MOTIVATION
5. LOWER REJECTION RATE
6. ABSENCE OF CUSTOMER COMPLAINTS
7. OVERALL DEVELOPMENT
101. LIMITATIONS OF TQM:
1. CONSERVATIVE ATTITUDE OF MANAGEMENT
2. LACK OF TRAINING
3. LACK OF LOYALTY
4. DIVIDE AND RULE POLICY
5. PROBLEM OF TRADE UNIONS
6. ATTITUDE OF INDIAN SOCIETY
MEASURES TO FOR EFFECTIVE IMPLEMENTATION OF TQM
1. PROFESSIONAL STYLE OF MANAGEMENT
2. DISSEMINATION OF ACCURATE DATA
3. INDUCTION OF PARTICIPATIVE MANAGEMENT
4. EFFECTIVE TRAINING AND EDUCATION
5. PROVISION OF RECOGNITION AND REWARD
6. POSITIVE CHANGE IN WORKS & UNIONS
7. COLLECTIVE APPROACH
8. NO DIFFERENTIATION/DISCRIMINATION.
102. QC:
• FEATURES OF QC
1. VOLUNTARY CHARACTER
2. OBJECTIVES
3. EFFECTIVE PARTICIPATION
4. MEMBERSHIP HELPS OTHERS TO DEVELOP
5. STRESS ON GROUP EFFORTS
6. ROLE OF MANAGEMENT
7. ENCOURAGEMENT TO CREATIVITY
8. DIRECT RELATIONSHIP WITH WORK
9. COLLECTIVE APPROACH
10. ROLE OF GROUP LEADER
103. *ISO 9000-CERTIFICATION
PROCEDURES.
1. PRELIMINARY INVESTIGATIONS
2. SUBMISSION OF APPLICATIONS
3. AUDIT OF QUALITY MANUAL
4. SELECTION OF REGISTRAR
5. NEGOTIATE TERMS WITH
REGISTRAR
6. PRE-ASSESSMENT BY AUDITING
BODY
7. ASSESSMENT BY AUDITING
8. ISSUE OF CERTIFICATE
PAPASSNI
104. QA: PREVENTION OF QUALITY PROBLEMS THROUGH
PLANNED & SYSTEMATIC ACTIVITIES INCLUDING
DOCUMENTATION.
1. ESTABLISHMENT OF GOOD QUALITY
MANAGEMENT SYSTEM
2. QUALITY STANDARD FOR ASSESSMENT
3. QUALITY AUDIT- THE BRITISH STD. GUIDE
i. INITIATION ii. PREPARATION iii.EXECUTION
iv. REPORT
v. COMPLETION
4. QUALITY REVIEW
105. INVENTORY
MANAGEMENT:PROCESS OF PLANNING
AND CONTROLLING INVENTORIES.
• OBJECTIVES:
1. TO ACHIVE ECONOMY IN BUYING
2. TO OVERCOME SEASONAL
FLUCTUATION IN SUPPLY
3. TO ENABLE SMOOTH FLOW OF
PRODUCTION
4. TO ACHIVE OPERATIONAL EFFICIENCY
5. TO ENABLE PROMPT DELIVERY OF
GOODS
6. TO AVOID EMERGECY ORDER
7. TO GENERATE QUALITY OUTPUT
106. MATERIAL PLANNING:
• NEED AND IMPORTANCE:
1. FACILITATES ORDERING DECISION
2. REDUCTION IN COST
3. DOES NOT LEAD TO EMERGENCY
ORDERS
4. DELIVERY SCHEDULES
5. QUALITY OUTPUT
6. MOTIVATION OF EMPLOYEES
7. HIGHER PRODUCTIVITY
8. ACHIEVEMENT OF OBJECTIVES
107. FACTORS INFLUENCING
MATERIAL PLANNING:
• INTERNAL FACTORS EXTERNAL FACT
1. PRODUCTION CAPACITY 1. NATURE OF CUSTOMERS DEMAND
2. AVAILABILITY OF WORKING CAPITAL 2. COMPETITION IN THE MARKET
3. STORAGE FACILITIES 3. CREDIT POLICY OF SUPPLIERS
4. RELATION WITH SUPPLIERS 4. DISTANCE FROM THE SOURCES OF
SUPPLY.
5. NATURE OF THE PRODUCT 5. BUSINESS CYCLE.
STEPS IN MATERIAL REQUIREMENPLANNING:
1. DETERMINE THE GROSS & NET REQUIREMENT OF FINISHED ITEMS
2. DEVELOP A MASTER PRODUCTION SCHEDULE
3. DETERMINE GROSS & NET REQUIREMENTS OF MATERIALS
4. SCHEDULING THE ORDERS
5. PLACING OF ORDERS
6. FOLLOW UP
108. INVENTORY CONTROL:
• OBJECTIVES:
1. CORRECT PURCHASING
2. SUITABLE STORAGE
3. MAINTAINING APPROPRIATE LEVEL OF STOCK
4. ADEQUATE INVENTORY IDENTIFICATION SYSTEM
5. PROPER RECORD KEEPING
6. APPROPRIATE REQUISITION PROCEDURE.
• IMPORTANCE:
1. PROTECTION AGAINST FLUCTUATIONS IN DEMAND
2. BETTER SERVICE TO CUSTOMER
3. CONTINUITY OG PRODUCTION OPERATIONS
4. REDUCTION IN RISK OF LOSS
5. REDUCTION IN SDMINISTRATIVE WORK LOAD
6. PROTECTION AGAINST FLUCTUATION IN OUTPUT
7. EFFECTIVE UTILISATION OF WORKING CAPITAL
8. AVOID DUPLICATION IN ORDERING.
109. PERPETUAL INVENTORY
SYSTEM:
• ADVANTAGES:
1. EASY STOCK TAKING
2. FACILITATES PRODUCTION PLANNING AND
CONTROL
3. FACILITATES PREPARATION OF FINANCIAL
STATEMENTS
4. RELIABLE CHECK
5. EFFICIENT USE OF WORKING CAPITAL
6. PROPER FLOW OF PRODUCTION
110. INVENTORY CONTROL
TECHNIQUE:
1. THE ABC (ALWAYS BETTER CONTROL)
CLASSIFICATION
2. HML (HIGH MEDIUM AND LOW CLASSIFICATION)
3. VED (VITAL ESSENTIAL DESIRABLE
CLASSIFICATION)
4. FSN (FAST MOVING SLOW MOVING AND NON
MOVING)
5. EOQ (ECONOMIC ORDER QUANTITY)
6. MRP
7. JIT
8. MMS (MAXIMUM MINIMUM SYSTEM)
9. MAPICS (MANUFACTURING ACCOUNTING
PRODUCTION
INFORMATION CONTROL SYSTEM)