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Principles of Business Management
B.Com II
Ms. Reba Das
UNIT - 1
Definition of Management
• “Management is the process of designing and
maintaining an environment in which
individuals working together in groups,
efficiently accomplish selected item”
• “Management is the process of getting things
done, through & with people in organization”
Nature of Management
Management is Goal-oriented.
Management is Universal.
Management is an Integrative Force.
Management is a Social Process.
Management is Multidisciplinary.
Management is Continuous Process.
 Management is Intangible.
Management is an Art as well as Science.
Need of Management
Principles of Management
• The Principles of Management are the essential,
underlying factors that form the foundations of
successful management.
MANAGEMENT FUNCTIONS (OR)
PROCESS OFMANAGEMENT
There are five types of functions in management:
 Planning-Defines the goal & establishing strategy.
 Organizing- Includes determining what task has to be
done, who is to do them.
 Staffing-Includes recruitment of people and training
them towards the project.
 Leading-Includes the motivating the employees and
directing the activities.
 Controlling-It is the process of monitoring the
performance.
Who is the person responsible for
supervising the use of an organization’s
resources to meet its goals?
A. Team leader
B. Manager
C. President
D. Resource allocator
A Manager
A person who plans, organizes,
directs and controls the allocation
of human, material, financial, and
information resources in pursuit of
the organization’s goals.
Managerial Skills
There are three types of skills required by a
manager,
Conceptual Skills-These skills are required by the
employee who are in top level management.
Human Relations Skills-These skills are required
by the employee in the supervisory level.
Technical skills- These skills are required by the
employee who are in middle level Management.
Different Managerial Levels
Supervisory
Level Technical Skills
Middle Management
Human Relations Skills
Top Management
Conceptual Skills
Top Level Management
The top level management is generally
occupied by the ownership group. It is
the highest level in the managerial
hierarchy and the ultimate source of
authority in the organisation.
Middle Level Management
In order to fill up the gap which exists
between functional and operative level,
some managerial positions are created
at the middle level of management.
Middle level management consists of
departmental managers, deputy
managers, foreman and administrative
officers etc.
Lower Level or Supervisory Level
Management
It consists of factory supervisors,
superintendents, foremen, sales
supervisors, accounts officers etc. They
directly guide and control the
performance of rank and file workers.
They issue orders and instructions and
guide day to-day activities.
Scope of Management
Production Management:
a) Designing the product
b) Location and layout of plant and building
c) Planning and Control of factory operations
d) Operation of purchase and storage of
materials
e) Inventory cost and Quality Control
f) Research and Development etc.
Marketing Management:
a) marketing research to determine the needs
and expectation of consumers
b) planning and developing suitable products
c) setting appropriate prices
d) selecting the right channel of distribution,
and
e) promotional activities like advertising and
salesmanship to communicate with the
customers
Financial Management:
a) Selecting the appropriate source of funds
b) Raising the required funds at the right time
c) Administration of earnings
d) Estimating the volume of fund.
Personnel Management:
a) manpower planning
b) recruitments,
c) selection,
d) training
e) appraisal,
f) promotions and transfers,
g) compensation,
h) employee welfare services, and
i) personnel records and research, etc.
System Approach
• Definition of System:
“A set of detailed methods, procedures, and
routines established or formulated to carry
out a specific activity, perform a duty, or
solve a problem.”
Nature of System
A system is a combination of parts and sub
systems.
Parts and sub parts of a system are mutually
related to each other.
Arrangement in a system is more important.
System transforms inputs into outputs.
Prevalence of boundary.
Closed and open system.
Process of System Approach
Classification of Systems
Open System
Closed System
Open system: An open system actively interacts
with its environment. By interacting with
other systems, it tries to establish exchange
relationships.
Ex: Open systems have feedback Mechanism.
Closed systems : Closed System have no
interaction with environment, closed system
are self contained and self maintaining Closed
systems are mechanical.
Ex: Closed systems are like closed loops.
UNIT - 2
Meaning of Planning
• Planning is deciding in advance what to do,
how to do it, when to do it and who to do it.
Choosing the future course of action.
• “According to Haimann, Planning is the
function that determines in advance what
should be done.
Nature of Planning
Planning is goal-oriented
Planning is a primary function
Planning is all-pervasive
Planning is a continuous process
Planning is forward-looking
Planning involves choice
Planning is directed toward efficiency
Process of Planning
Step 1- DEFINE THE TASK
Step 2- IDENTIFY RESOURCES
Step 3- CONSIDER ALTERNATIVE
Step 4- CREATE THE PLANNING
Step 5- WORK THE PLAN
Step 6- EVALUATE
Importance of Planning
Focuses attention on objectives and result
Reduces uncertainty and risk
Provides sense of direction
Encourages innovation and creativity
Helps in co-ordination
Guides decision-making
Provide efficiency in operation
Types of Planning
• Operational Planning: This type of planning
typically describes the day-to-day running of the
company. Operational plans are often described
as single use plans or ongoing plans. Single use
plans are created for events and activities with a
single occurrence.
• Strategic Planning: Strategic planning includes a
high-level overview of the entire business. It’s
the foundational basis of the organization and
will dictate long-term decisions. Important
components of a strategic plan are vision,
mission and values.
• Tactical Planning: Tactical planning
supports strategic planning. It includes
tactics that the organization plans to use
to achieve what’s outlined in the
strategic plan.
• Contingency Planning: Contingency
plans are made when something
unexpected happens or when something
needs to be changed. Business experts
sometimes refer to these plans as a
special type of planning.
Meaning of Decision Making
• A decision is a choice made between
two or more available alternatives.
Decision making is the process of
choosing the best alternative for
reaching objectives.
Characteristic of Decision Making
Process
• It is always related to situation in which a
manager may take one decision in a
particular set of circumstances and another
in a different set of circumstances.
• This involves certain specific purpose in
which these may just be decisions not to
decide.
Six C's of Decision Making
1. Construct.
2. Compile.
3. Collect.
4. Compare.
5. Consider.
6. Commit.
Construct a clear picture of precisely what
must be decided.
Compile a list of requirements that must be
met.
Collect information on alternatives that meet
the requirements.
Compare alternatives that meet the
requirements.
Consider the "what might go wrong" factor
with each alternative.
Commit to a decision and follow through with
it.
Types of Decision Making
o Basic Decision or Strategic Decisions
o Administrative Decisions
o Organisational or Personal Decisions
o Policy of Decisions
o Individual & Group Decisions
o Routine Decisions
o Adaptive Decisions
PHASES OF DESION MAKING
Management by objectives (MBO)
• Management by objectives (MBO) is
a strategic management model that aims to
improve the performance of an organization
by clearly defining objectives that are agreed
to by both management and employees.
According to the theory, having a say in goal
setting and action plans encourages
participation and commitment among
employees, as well as aligning objectives
across the organization.
Need for Management by Objectives
• The Management by Objectives process helps
the employees to understand their duties at the
workplace.
• The employees are clear as to what is expected
out of them.
• Management by Objectives ensures effective
communication amongst the employees. It leads
to a positive ambience at the workplace.
• Employees in their own way contribute to the
achievement of the goals and objectives of the
organization.
• Management by Objectives process leads to
satisfied employees. It avoids job mismatch and
unnecessary confusions later on.
Process of Management by Objectives
Environmental Analysis
• Environmental analysis is a strategic tool. It is a
process to identify all the external and internal
elements, which can affect the organization’s
performance. These evaluations are later translated
into the decision-making process. The analysis helps
align strategies with the firm’s environment.
Environmental Analysis
External Environmental
Analysis
Internal Environmental
Analysis
Factors of
Environmental
Analysis
UNIT - 3
Meaning of Organizing
The term ‘organising” refers to the process of
identifying and grouping of activities to be
performed and dividing them among the
individuals and creating authority and
responsibility relationship among them for the
accomplishment of organisational objectives.
“Organising in a general sense means
systematic arrangement of activities”
Characteristics of Organising
Organising is a basic function and a sub-process
of management
Organising is a continuous process
Organising is a function of all managers
Organising involves coordination
Goal-oriented
Group effort
Establishes authority-responsibility relationship
Process of Organising
Organising as a Structure
Elements of Organisation Structure
Work specialisation
 Departmentation
Establishing Reporting Relationships
Distributing Authority
Coordinating Mechanisms
Differentiating between positions
Authority
Authority, in simple words, is the right way of
commanding subordinates, issuing orders
and instructions, and exacting obedience
from the team. It is also the right of the
manager to make decisions. Also, to act or
not to act depends on how he perceives the
objectives of the organization.
Responsibility
Responsibility means state of being
accountable or answerable for any obligation,
trust, debt or something or in other words it
means obligation to complete a job assigned
on time and in best way.
CENTRALIZATION AND
DECENTRALIZATION OF AUTHORITY
• ‘Centralization’ means concentration of power of
decision-making. Concentration is the systematic
and consistent reservation of authority in the
central hands in the organization.
• ‘Decentralization’ on the other hand, means
delegation of business decisions by the owners to
their subordinates, and then the others further
down in the management hierarchy.
Advantage of Centralization &
Disadvantage of Centralization
Advantages
• Reduced cost
• Uniformity in action
Of
• Personal leadership
• Flexibility
Centralization
• Improved quality of
work
• Better co-ordination
Disadvantages
• Delay in work
• Remote control
Of
• No loyalty
• No Secrecy
Centralization
• No special
attention
Departmentation
‘Departmentation’ is the process of grouping
the activities of an enterprise into several
units for the purpose of administration at all
levels.
The administrative units so created may be
designated as departments, divisions, units,
branches, sections, etc.
Need for and Importance of Departmentation
• Advantages of Specialisation
• Feeling of Autonomy
• Expansion
• Fixation of Responsibility
• Upliftment of Managerial Skill
• Facility in Appraisal
• Administrative Control
Types of Departmentation
• Departmentation by Functions
Departmentation by Products
Departmentation by Territory
Departmentation by Customers
Departmentation by Process or Equipment
UNIT - 4
Meaning of Motivation
Motivation is derived from the Latin word
‘movere’ which means ‘to move’ or ‘to
energize’ or ‘to activate’ .
Motivation is the process of arousing the
action, sustaining the activity in process and
regulating the pattern of activity.
Motivation refers to the states within a
person or animal that drives behaviour
toward some goals.
MOTIVATIONAL CONCEPTS
Intrinsic motivation & Extrinsic motivation
Theories of Motivation
Herzberg
McGregor
Ouchi
Herzberg Two Factor Theory of
Motivation
McGregor Theory X & Y of Motivation
Ouchi Theory Z of Motivation
Financial and Non-Financial Incentives
Meaning of Leadership
• Leadership is a process by which an executive
can direct, guide and influence the behavior
and work of others towards accomplishment
of specific goals in a given situation.
Leadership is the ability of a manager to
induce the subordinates to work with
confidence and zeal.
Theories of Leadership
• Charismatic Leadership Theory
• Trait theory
• Behavioural Theory
• Situational Theory
Charismatic Leadership Theory:
Etymology helps to understand and define
"charismatic." The word “charisma” is rooted
in the ancient Greek word “kharisma,”
meaning “favor or divine gift.” It has come to
refer to a specific set of personal traits that
have profound effects on other individuals.
Trait theory
The trait model of leadership is based on the
characteristics of many leaders - both successful and
unsuccessful - and is used to predict leadership
effectiveness.
Successful leaders definitely have interests, abilities,
and personality traits that are different from those of
the less effective leaders. Among the core traits
identified are:
• Achievement drive
• Leadership motivation
• Honesty and integrity
• Self-confidence
• Cognitive ability
• Knowledge of business
• Emotional Maturity
Behavioural Theory
Behavioural theory of leadership emphasises that
strong leadership is the result of effective role
behaviour. Leadership is shown by a person’s acts
more than his traits.
Situational Theory
According to this theory, the most effective leaders
are those that are able to adapt their style to the
situation and look at cues such as the type of task,
the nature of the group, and other factors that
might contribute to getting the job done.
Meaning of Communication
Communications is fundamental to the
existence and survival of humans as well as
to an organization. It is a process of creating
and sharing ideas, information, views, facts,
feelings, etc. among the people to reach a
common understanding. Communication is
the key to the Directing function of
management.
Process of Communication
Network of Communication
Barriers to Communication
1. Semantic Barriers
2. Psychological Barriers
3. Organizational Barriers
4. Personal Barriers
5. Physical Barriers
6. Technological Barriers
UNIT - 5
Meaning of Control
Control is a management process to aim at
achieving defined goals within an established
timetable, and comprises of three
components:
(1) setting standards,
(2) measuring actual performance, and
(3) taking corrective action.
Characteristics of Control
• Control is a Managerial Process
• Control is forward looking
• Control exists at each level of Organization
• Control is a Continuous Process
• Control is closely linked with Planning
• Purpose of Controlling is Goal Oriented and
hence Positive
Process of Control
Techniques of Control
Meaning of Change
Change is basically a variation in pre-existing
methods, customs, and conventions. Since all
organizations function in dynamic
environments, they constantly have to
change themselves to succeed.
Causes of Change
(A) External Pressures:
i. Change in Technology and Equipment
ii. Market Situation
iii. Social and Political Changes
(B) Internal Pressures
i. Changes in the Managerial Personnel
ii. Deficiencies in the Existing Organization
Process of Planned Change
Resistance to Change
Organizational culture and structure change
is inevitable due to the constant change in
technology, customer and markets, social and
political pressures, as well as demographic
characteristics. Resistance to change is an
emotional and behavioural response by the
affected employees to actual or imagined
threats to an established work routine.
Organizations must manage change and
subsequent resistance to survive.
Reason for Resistance to Change
Method of Overcoming Resistance to Change
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Principles of business management

  • 1. Principles of Business Management B.Com II Ms. Reba Das
  • 3. Definition of Management • “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected item” • “Management is the process of getting things done, through & with people in organization”
  • 4. Nature of Management Management is Goal-oriented. Management is Universal. Management is an Integrative Force. Management is a Social Process. Management is Multidisciplinary. Management is Continuous Process.  Management is Intangible. Management is an Art as well as Science.
  • 6. Principles of Management • The Principles of Management are the essential, underlying factors that form the foundations of successful management.
  • 7. MANAGEMENT FUNCTIONS (OR) PROCESS OFMANAGEMENT There are five types of functions in management:  Planning-Defines the goal & establishing strategy.  Organizing- Includes determining what task has to be done, who is to do them.  Staffing-Includes recruitment of people and training them towards the project.  Leading-Includes the motivating the employees and directing the activities.  Controlling-It is the process of monitoring the performance.
  • 8. Who is the person responsible for supervising the use of an organization’s resources to meet its goals? A. Team leader B. Manager C. President D. Resource allocator
  • 9. A Manager A person who plans, organizes, directs and controls the allocation of human, material, financial, and information resources in pursuit of the organization’s goals.
  • 10. Managerial Skills There are three types of skills required by a manager, Conceptual Skills-These skills are required by the employee who are in top level management. Human Relations Skills-These skills are required by the employee in the supervisory level. Technical skills- These skills are required by the employee who are in middle level Management.
  • 11. Different Managerial Levels Supervisory Level Technical Skills Middle Management Human Relations Skills Top Management Conceptual Skills
  • 12. Top Level Management The top level management is generally occupied by the ownership group. It is the highest level in the managerial hierarchy and the ultimate source of authority in the organisation.
  • 13. Middle Level Management In order to fill up the gap which exists between functional and operative level, some managerial positions are created at the middle level of management. Middle level management consists of departmental managers, deputy managers, foreman and administrative officers etc.
  • 14. Lower Level or Supervisory Level Management It consists of factory supervisors, superintendents, foremen, sales supervisors, accounts officers etc. They directly guide and control the performance of rank and file workers. They issue orders and instructions and guide day to-day activities.
  • 15. Scope of Management Production Management: a) Designing the product b) Location and layout of plant and building c) Planning and Control of factory operations d) Operation of purchase and storage of materials e) Inventory cost and Quality Control f) Research and Development etc.
  • 16. Marketing Management: a) marketing research to determine the needs and expectation of consumers b) planning and developing suitable products c) setting appropriate prices d) selecting the right channel of distribution, and e) promotional activities like advertising and salesmanship to communicate with the customers
  • 17. Financial Management: a) Selecting the appropriate source of funds b) Raising the required funds at the right time c) Administration of earnings d) Estimating the volume of fund.
  • 18. Personnel Management: a) manpower planning b) recruitments, c) selection, d) training e) appraisal, f) promotions and transfers, g) compensation, h) employee welfare services, and i) personnel records and research, etc.
  • 19. System Approach • Definition of System: “A set of detailed methods, procedures, and routines established or formulated to carry out a specific activity, perform a duty, or solve a problem.”
  • 20. Nature of System A system is a combination of parts and sub systems. Parts and sub parts of a system are mutually related to each other. Arrangement in a system is more important. System transforms inputs into outputs. Prevalence of boundary. Closed and open system.
  • 21. Process of System Approach
  • 22. Classification of Systems Open System Closed System
  • 23. Open system: An open system actively interacts with its environment. By interacting with other systems, it tries to establish exchange relationships. Ex: Open systems have feedback Mechanism. Closed systems : Closed System have no interaction with environment, closed system are self contained and self maintaining Closed systems are mechanical. Ex: Closed systems are like closed loops.
  • 25. Meaning of Planning • Planning is deciding in advance what to do, how to do it, when to do it and who to do it. Choosing the future course of action. • “According to Haimann, Planning is the function that determines in advance what should be done.
  • 26. Nature of Planning Planning is goal-oriented Planning is a primary function Planning is all-pervasive Planning is a continuous process Planning is forward-looking Planning involves choice Planning is directed toward efficiency
  • 27. Process of Planning Step 1- DEFINE THE TASK Step 2- IDENTIFY RESOURCES Step 3- CONSIDER ALTERNATIVE Step 4- CREATE THE PLANNING Step 5- WORK THE PLAN Step 6- EVALUATE
  • 28. Importance of Planning Focuses attention on objectives and result Reduces uncertainty and risk Provides sense of direction Encourages innovation and creativity Helps in co-ordination Guides decision-making Provide efficiency in operation
  • 29. Types of Planning • Operational Planning: This type of planning typically describes the day-to-day running of the company. Operational plans are often described as single use plans or ongoing plans. Single use plans are created for events and activities with a single occurrence. • Strategic Planning: Strategic planning includes a high-level overview of the entire business. It’s the foundational basis of the organization and will dictate long-term decisions. Important components of a strategic plan are vision, mission and values.
  • 30. • Tactical Planning: Tactical planning supports strategic planning. It includes tactics that the organization plans to use to achieve what’s outlined in the strategic plan. • Contingency Planning: Contingency plans are made when something unexpected happens or when something needs to be changed. Business experts sometimes refer to these plans as a special type of planning.
  • 31. Meaning of Decision Making • A decision is a choice made between two or more available alternatives. Decision making is the process of choosing the best alternative for reaching objectives.
  • 32. Characteristic of Decision Making Process • It is always related to situation in which a manager may take one decision in a particular set of circumstances and another in a different set of circumstances. • This involves certain specific purpose in which these may just be decisions not to decide.
  • 33. Six C's of Decision Making 1. Construct. 2. Compile. 3. Collect. 4. Compare. 5. Consider. 6. Commit.
  • 34. Construct a clear picture of precisely what must be decided. Compile a list of requirements that must be met. Collect information on alternatives that meet the requirements. Compare alternatives that meet the requirements. Consider the "what might go wrong" factor with each alternative. Commit to a decision and follow through with it.
  • 35. Types of Decision Making o Basic Decision or Strategic Decisions o Administrative Decisions o Organisational or Personal Decisions o Policy of Decisions o Individual & Group Decisions o Routine Decisions o Adaptive Decisions
  • 37. Management by objectives (MBO) • Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.
  • 38. Need for Management by Objectives • The Management by Objectives process helps the employees to understand their duties at the workplace. • The employees are clear as to what is expected out of them. • Management by Objectives ensures effective communication amongst the employees. It leads to a positive ambience at the workplace. • Employees in their own way contribute to the achievement of the goals and objectives of the organization. • Management by Objectives process leads to satisfied employees. It avoids job mismatch and unnecessary confusions later on.
  • 39. Process of Management by Objectives
  • 40. Environmental Analysis • Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment. Environmental Analysis External Environmental Analysis Internal Environmental Analysis
  • 43. Meaning of Organizing The term ‘organising” refers to the process of identifying and grouping of activities to be performed and dividing them among the individuals and creating authority and responsibility relationship among them for the accomplishment of organisational objectives. “Organising in a general sense means systematic arrangement of activities”
  • 44. Characteristics of Organising Organising is a basic function and a sub-process of management Organising is a continuous process Organising is a function of all managers Organising involves coordination Goal-oriented Group effort Establishes authority-responsibility relationship
  • 46. Organising as a Structure
  • 47. Elements of Organisation Structure Work specialisation  Departmentation Establishing Reporting Relationships Distributing Authority Coordinating Mechanisms Differentiating between positions
  • 48. Authority Authority, in simple words, is the right way of commanding subordinates, issuing orders and instructions, and exacting obedience from the team. It is also the right of the manager to make decisions. Also, to act or not to act depends on how he perceives the objectives of the organization.
  • 49. Responsibility Responsibility means state of being accountable or answerable for any obligation, trust, debt or something or in other words it means obligation to complete a job assigned on time and in best way.
  • 50.
  • 51. CENTRALIZATION AND DECENTRALIZATION OF AUTHORITY • ‘Centralization’ means concentration of power of decision-making. Concentration is the systematic and consistent reservation of authority in the central hands in the organization. • ‘Decentralization’ on the other hand, means delegation of business decisions by the owners to their subordinates, and then the others further down in the management hierarchy.
  • 52. Advantage of Centralization & Disadvantage of Centralization Advantages • Reduced cost • Uniformity in action Of • Personal leadership • Flexibility Centralization • Improved quality of work • Better co-ordination Disadvantages • Delay in work • Remote control Of • No loyalty • No Secrecy Centralization • No special attention
  • 53. Departmentation ‘Departmentation’ is the process of grouping the activities of an enterprise into several units for the purpose of administration at all levels. The administrative units so created may be designated as departments, divisions, units, branches, sections, etc.
  • 54. Need for and Importance of Departmentation • Advantages of Specialisation • Feeling of Autonomy • Expansion • Fixation of Responsibility • Upliftment of Managerial Skill • Facility in Appraisal • Administrative Control
  • 55. Types of Departmentation • Departmentation by Functions
  • 61. Meaning of Motivation Motivation is derived from the Latin word ‘movere’ which means ‘to move’ or ‘to energize’ or ‘to activate’ . Motivation is the process of arousing the action, sustaining the activity in process and regulating the pattern of activity. Motivation refers to the states within a person or animal that drives behaviour toward some goals.
  • 64. Herzberg Two Factor Theory of Motivation
  • 65. McGregor Theory X & Y of Motivation
  • 66. Ouchi Theory Z of Motivation
  • 67.
  • 69. Meaning of Leadership • Leadership is a process by which an executive can direct, guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation. Leadership is the ability of a manager to induce the subordinates to work with confidence and zeal.
  • 70. Theories of Leadership • Charismatic Leadership Theory • Trait theory • Behavioural Theory • Situational Theory
  • 71. Charismatic Leadership Theory: Etymology helps to understand and define "charismatic." The word “charisma” is rooted in the ancient Greek word “kharisma,” meaning “favor or divine gift.” It has come to refer to a specific set of personal traits that have profound effects on other individuals.
  • 72. Trait theory The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict leadership effectiveness. Successful leaders definitely have interests, abilities, and personality traits that are different from those of the less effective leaders. Among the core traits identified are: • Achievement drive • Leadership motivation • Honesty and integrity • Self-confidence • Cognitive ability • Knowledge of business • Emotional Maturity
  • 73. Behavioural Theory Behavioural theory of leadership emphasises that strong leadership is the result of effective role behaviour. Leadership is shown by a person’s acts more than his traits. Situational Theory According to this theory, the most effective leaders are those that are able to adapt their style to the situation and look at cues such as the type of task, the nature of the group, and other factors that might contribute to getting the job done.
  • 74. Meaning of Communication Communications is fundamental to the existence and survival of humans as well as to an organization. It is a process of creating and sharing ideas, information, views, facts, feelings, etc. among the people to reach a common understanding. Communication is the key to the Directing function of management.
  • 77. Barriers to Communication 1. Semantic Barriers 2. Psychological Barriers 3. Organizational Barriers 4. Personal Barriers 5. Physical Barriers 6. Technological Barriers
  • 79. Meaning of Control Control is a management process to aim at achieving defined goals within an established timetable, and comprises of three components: (1) setting standards, (2) measuring actual performance, and (3) taking corrective action.
  • 80. Characteristics of Control • Control is a Managerial Process • Control is forward looking • Control exists at each level of Organization • Control is a Continuous Process • Control is closely linked with Planning • Purpose of Controlling is Goal Oriented and hence Positive
  • 83. Meaning of Change Change is basically a variation in pre-existing methods, customs, and conventions. Since all organizations function in dynamic environments, they constantly have to change themselves to succeed.
  • 84. Causes of Change (A) External Pressures: i. Change in Technology and Equipment ii. Market Situation iii. Social and Political Changes (B) Internal Pressures i. Changes in the Managerial Personnel ii. Deficiencies in the Existing Organization
  • 86. Resistance to Change Organizational culture and structure change is inevitable due to the constant change in technology, customer and markets, social and political pressures, as well as demographic characteristics. Resistance to change is an emotional and behavioural response by the affected employees to actual or imagined threats to an established work routine. Organizations must manage change and subsequent resistance to survive.
  • 88. Method of Overcoming Resistance to Change