Chapter-1 Nature and Significance of Management

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DEFINE MANAGEMENT

Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Effective means producing a result that is wanted and efficient means capable of producing desire result without wasting material, time and energy.

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CHARACTERISTICS OF MANAGEMENT:-

MANAGEMENT IS A GOAL-ORIENTED PROCESS:- An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organisation have different goals. For example, the goal of a retail store may be to increase sales, but the goal of the spastics society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organisation towards achieving these goals.
MANAGEMENT IS ALL PERVASIVE:- The activities involved in managing an enterprise are common to all organisation whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What manager do in India, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.
MANAGEMENT IS MULTIDIMENSIONAL:- Management is a complex activity that has three main dimensions. These are:-
MANAGEMENT OF WORK:- All organisations exist for the performance of some work. In a factory, a product is manufactured, in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it.
MANAGEMENT OF PEOPLE:- Human resources or people are an organisation’s greatest asset. Despite all developments in technology “getting work done through people” is still a major task for the manager.
MANAGEMENT OF OPERATIONS:- No matter what the organisation, it has some basic product or service to provide in order to survive. This requires a production process which entails the flow of input material and the technology for transforming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.
MANAGEMENT IS A CONTINUOUS PROCESS:– The process of management is a series of continuous composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all managers all the time.
MANAGEMENT IS A GROUP ACTIVITY:- An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as member of the organisation they work towards fulfilling the common organisational goal. This requires team work and coordination of individual effort in a common direction.
MANAGEMENT IS A DYNAMIC FUNCTION:- Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.
MANAGEMENT IS AN INTANGIBLE FORCE:- Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos.

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OBJECTIVES OF MANAGEMENT:-

ORGANISATIONAL OBJECTIVES:- Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage.
SURVIVAL:- The basic objectives of any business is survival. Management must strive to ensure the survival of the organisation. In order to survive, an organisation must earn enough revenues to cover costs.
PROFIT:- Mere survival is not enough for business. Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business.
GROWTH:- A business needs to add to its prospects in the long run, for this it is important for the business to grow. To remain in the industry, management must exploit fully the growth potential of the organisation. Growth of a business can be measured in terms of sales volume increase in the number of employees the number of products or the increase in capital investment, etc. There can be other indicators of growth.
SOCIAL OBJECTIVES:- It involves the certain of benefit for society. As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill. This refers to consistently creating economic value for various constituents of society. This includes using environmental friendly methods of production, giving employment opportunities to the underpreviledged sections of society and providing basic amenities like schools and healthcare, etc, for community. The box given below illustrates how a company can fulfill its social responsibility.
PERSONNEL OBJECTIVES:- Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level need such as personal growth and development. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.

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IMPORTANCE OF MANAGEMENT:-

MANAGEMENT HELPS IN ACHIEVING GROUP GOALS:- Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation.
MANAGEMENT INCREASES EFFICIENCY:- The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.
MANAGEMENT CREATES A DYNAMIC ORGANISATION:- All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change as it often means moving from a familiar, secure environment into a newer and more challenging one. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.
MANAGEMENT HELPS IN ACHIEVING PERSONAL OBJECTIVES:- A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership the management helps individuals to develop team spirit, cooperation and commitment to group success.
MANAGEMENT HELPS IN THE DEVELOPMENT OF SOCIETY:- An organisation has multiple objectives to serve the purpose of the different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of society. It helps to provide good quality products and services, creates employment opportunities, adopts new techno-logy for the greater good of the people and leads the path towards growth and development.

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MANAGEMENT AS AN ART:-

What is art? Art is the skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. Since art is concerned with personal application of knowledge some kind of ingenuity and creativity is required to practice the basic principle learnt. The basic features of an art are as follows:-

EXISTENCE OF THEORETICAL KNOWLEDGE:- Art presupposes the existence of certain theoretical knowledge. Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art. For example, literature on dancing, public speaking, acting or music is widely recognised.
PERSONALISED APPLICATION:- The use of this basic knowledge varies from individual to individual. Art, therefore, is a very personalised concept. For example, two dancers, two speakers, two actors, or two writers will always differ in demonstrating their art.
BASED ON PRACTICE ND CREATIVITY:- All art is practical. Art involves the creative practice of existing theoretical knowledge. We know that all music is based on seven basic notes. However, what makes the composition of a musician unique or different is his use of these notes in a creative manner that is entirely his own interpretation.

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MANAGEMENT AS A SCIENCE:-

Science is a systematised body of knowledge that explains certain general truths or the operation of general laws. The basic features of science are as follows:-

SYSTEMATISED BODY OF KNOWLEDGE:- Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship. For example, the phenomenon of an apple falling from a tree towards the ground is explained by the law of gravity.
PRINCIPLES BASED ON EXPERIMENTATION:- Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions.
UNIVERSAL VALIDITY:- Scientific principles have universal validity and application.

MANAGEMENT AS A PROFESSION:-

Profession It has also been means an occupation that requires specialized knowledge and the practice of formal education, which acquired by the respective professional body. It has also been observed that there has been an increase in the corporate form of business on the one hand and increasing emphasis on managed business concerns. Does this imply that management is a profession? To answer this question let us examine the salient features of a profession and see whether management satisfies them.

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A profession has the following characteristics:-

WELL-DEFINED BODY OF KNOW-LEDGE:- All professions are based on a well-defined body of knowledge that can be acquired through instruction.
RESTRICTED ENTRY:- The entry to a profession is restricted through an examination or through acquiring an educational degree. For example, to become a chartered accountant in India a candidate has to clear a specified examination conducted by the institute of Chartered Accountants of India.
PROFESSIONAL ASSOCIATION:- All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. To be able to practice in India lawyers have to become members of the Bar council which regulates and controls their activities.
ETHICAL CODE OF CONDUCT:- All professions are bound by a code of conduct which guides the behaviour of its members. All doctors, for example, take the oath of ethical practice at the time they enter the profession.
SERVICE MOTIVE:- The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed service. The task of a lawyer is to ensure that his client gets justice.

LEVELS OF MANAGEMENT:-

TOP MANAGEMENT:- They consist of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Top management is a team consisting of manager from different functional levels, heading finance, marketing etc. For example chief finance officer, vice president (marketing). their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
MIDDLE MANAGEMENT:- Is the link between top lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time they are responsible for all the activities of first line managers.
SUPERVISORY OR OPERATIONAL MANAGEMENT:- Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility is limited according to the plans drawn by the top management. Supervisory management plays a very important role in the organisation since they interact with the actual work force and pass on instructions of the middle management to the workers. Through their efforts quality of output is maintained, wastage of material is minimised and safety standards are maintained. The quality of workmanship and the quality of output depends on the hard work, discipline and loyalty of the workers.

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FUNCTIONS OF MANAGEMENT:-

Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively.
Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. Once a specific plan has been established for the accomplishment of an organisational goal, the organising function examines the activities and resources required to implement the plan.
Staffing simply stated, is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation.
Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Motivation and leadership are two key components of direction. Directing also involves communicating effectively as well as supervising employees at work.
Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves establishing standards of performance, measuring current performance, comparing this with established standards and taking corrective action where any deviation is found. Here management must determine what activities and outputs are critical to success, how and where they can be measured and who should have the authority to take corrective action.

COORDINATION-THE ESSENCE OF MANAGEMENT:-

Coordination is the function of management which ensures that different departments and groups work in synchronize way. Therefore, there is unity of action among the employees, groups, and departments. It also brings harmony in carrying out the different tasks and activities to achieve the organization’s objectives efficiently. Coordination is an important aspect of any group effort. When an individual is working, there is no need for coordination.

CHARCTERSTICS OF COORDINATION:-

COORDINATION INTEGRATES GROUP EFFORTS:- Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a common focus to group effort to ensure that performance is as it was planned and scheduled.
COORDINATION ENSURES UNITY OF ACTION:- The purpose of coordination is to secure unity of action in the realisation of a common purpose. It acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organisation.the production and sales department have to coordinate their work, so that production takes place according to the demand in the market.
COORDINATION IS A CONTINUOUS PROCESS:- Coordination is not a one-time function but a continuous process. It begins at the planning stage and continues till controlling. Smita plans her dewali collection in the month of June itself. She has to then ensure that there is adequate workforce and continuously monitor whether production is proceeding according to plans. Her marketing department also has to be briefed in time to prepare their promotional and advertising campaigns.
COORDINATION IS AN ALL PERVASIVE FUNCTION:- Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels. The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving organisational objectives harmoniously.
COORDINATION IS THE RESPONSIBILITY OF ALL MANAGERS:- Coordination is the function of every manager in the organisation. Top level managers need to coordinate with their subordinates to ensure that the overall policies for the organisation are duly carried out. Middle level management coordinates with both the top level and first line managers. Operational level management coordinates the activities of its workers to ensure that work proceeds according to plans.
COORDINATION IS A DELIBERATE FUNCTION:- A manger has to coordinate the efforts of different people in a conscious and deliberate manner, even where members of a department willingly cooperate and work, coordination gives a direction to that willing spirit. Cooperation in the absence of coordination may lead to wasted efforts and coordination without cooperation may lead to dissatisfaction among employees.

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IMPORTANCE OF COORDINATION:

GROWTH IN SIZE:- As organisations grow in size, the number of people employed by the organisation also increases. At times, it may become difficult to integrate their efforts and activities. All individuals differ in their habits of work, background, approaches to situations and relationships with others. It becomes necessary to ensure that all individuals work towards the common goals of the organisation. But employees may have their own individual goals also.
FUNCTIONAL DIFFERENTIATION:- Function of an organisation are divided into departments, divisions and sections. In an organisation there may be separate departments of finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working.
SPECIALISATION:- Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of the complexities of modern technology and the diversity of tasks to be performed. Organisations, therefore, need to employ a number of specialists, specialists usually think that they only are qualified to evaluate, judge and decide according to their professional criteria.

Very Short Answer Type:

1 What is meant by management?

Ans-Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Effective means producing a result that is wanted and efficient means capable of producing desire result without wasting material, time and energy.

2.Name any two important characteristics of management.

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Ans-

MANAGEMENT IS A GOAL-ORIENTED PROCESS:- An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organisation have different goals. For example, the goal of a retail store may be to increase sales, but the goal of the spastics’ society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organisation towards achieving these goals.
MANAGEMENT IS ALL PERVASIVE:- The activities involved in managing an enterprise are common to all organisation whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What manager do in India, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.

3.Identify and state the force that binds all the any two indicators of growth of an organization.

Ans-

Increase sales volume- sales volume is the number of products you’re selling over a given period. A high sales value can indicate that a company’s marketing and sales tactics are effective. Sales volume is a common metric that many sales professionals measure along with revenue, but they’re not the same.

Increase in the capital investment- Capital investment is the amount invested in a company to enhance its business objectives. Also, the individual/entity can earn an income or recover the invested capital from earnings generated by the company over the years.it help to growth of organization.

5.Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (diesel electric multiple unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12,00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.

Ans-

The Management objective achieved by the Indian Railways is the Social objective. Creating benefits for humanity is one of the social objectives. This entails consistently producing economic worth for society as a whole.

Short Answer Type:

1.Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organization? What are her basic functions?

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Ans-

Ritu is the manager of the northern division of a large corporate house working at the middle-level division. Middle level is a link between the top management and lower management. The basic functions are…

• Interpret the policies formulated by the top management.

• Ensure that their department has the necessary personnel

assign necessary duties and responsibilities to them
motivate them to achieve desired objectives

• To coordinate among the division heads of various departments

2.State the basic features of management as a profession.

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Ans-

WELL-DEFINED BODY OF KNOW-LEDGE:- All professions are based on a well-defined body of knowledge that can be acquired through instruction.
RESTRICTED ENTRY:- The entry to a profession is restricted through an examination or through acquiring an educational degree. For example, to become a chartered accountant in India a candidate has to clear a specified examination conducted by the institute of Chartered Accountants of India.
PROFESSIONAL ASSOCIATION:- All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. To be able to practice in India lawyers have to become members of the Bar council which regulates and controls their activities.
ETHICAL CODE OF CONDUCT:- All professions are bound by a code of conduct which guides the behaviour of its members. All doctors, for example, take the oath of ethical practice at the time they enter the profession.

3.Why is management considered to be a multi-dimensional concept?

Ans . management is multidimensional concept because it involve various dimension

MANAGEMENT OF WORK:- All organisations exist for the performance of some work. In a factory, a product is manufactured, in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it.
MANAGEMENT OF PEOPLE:- Human resources or people are an organisation’s greatest asset. Despite all developments in technology “getting work done through people” is still a major task for the manager.
MANAGEMENT OF OPERATIONS:- No matter what the organisation, it has some basic product or service to provide in order to survive. This requires a production process which entails the flow of input material and the technology for transforming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.

4.Company X is facing a lot of problems these days. It manufactures white goods like washing machines, Microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. State the quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?

Ans- coordination is missing in Company X. All the departments are not coordinating with each other and that is why they end up in blaming each other for the poor performance.

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To bring coordination, management should take the following steps:

(i) After the goals are established, it should be communicated to all departments well in advance to understand its importance and their specific roles.

(ii) Managers ensure that all departments coordinate with each other.

(iii) Whenever there is a difference of interest, the managers should try and strike a balance so that they all work in the same direction.

(iv) Meetings between the departmental heads of production, marketing, finance, etc, should be organised on a regular basis

(iiv)coordination is the responsibility of all managers

5.Coordination is the essence of management. Do you agree? Give reasons.

Ans

Coordination is considered as the essence of management because of the following reasons:

1. Coordination is needed for all the functions of management:

(i) planning, coordination is required between the objectives and available resources.

(ii) Organising is ineffective if there is a lack of coordination between different departments and divisions.

(iii) staffing, coordination is required between the required skills and abilities of an individual who is selected to perform a job.

(iv) Directing is impossible and of no worth, if there is a lack of coordination between superiors and subordinates.

(v) controlling, coordination helps in ensuring that actual results are fruitful

2.Coordination is needed at all levels of management:

(i) Top level: The top level coordinates the activities of the whole organisation keeping in view the desired goals.

(ii) Middle level: The middle-level managers coordinate the activities of different departments.

(iii) Lower level: The lower level coordinates the activities of the workers for achieving goals.

6.Ashita and lakshita are employees working in Dazzling enterprises dealing in costume jewellery. The firm secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of Rs 100 per bracelet. Ashita was able to produce the required number within the stipulated time at the cost of Rs 55,000 whereas, Lakshita was able to produce only 450 units at a cost of Rs 90 per unit. State whether Ashits and Lakshita are efficient and effective. Give reasons to justify your answer.

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Ans-

Ashita produces the required number of bracelets within the fixed time at total cost of Rs. 55,000. Here Ashita works effectively as she completes the task in a given period of time. But she is not efficient as she expend Rs 5,000 more whereas she should spend Rs. 50,000 on production. In other words she spent Rs. 110 on production of one bracelet instead of Rs. 100. So, Ashita is effective but not efficient.

And Lakshita produces 450 bracelets at the cost of Rs. 90 per bracelets. Here Lakshita is efficient because she saves Rs. 10 on each unit of bracelets. She reduces the cost of production which leads to making more profit. But she is not effective as she is not able to produce the required number of bracelets in a given period of time which leads to delay in delivery of the bracelet. So, Lakshita is efficient but not effective.

Long Answer Type:

1.Management is considered to be both an art and science. Explain.

Ans-

Management as a art –Art is the skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. Since art is concerned with personal application of knowledge some kind of ingenuity and creativity is required to practice the basic principle learnt. The basic features of an art are as follows:-

EXISTENCE OF THEORETICAL KNOWLEDGE:- Art presupposes the existence of certain theoretical knowledge. Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art. For example, literature on dancing, public speaking, acting or music is widely recognised.
PERSONALISED APPLICATION:- The use of this basic knowledge varies from individual to individual. Art, therefore, is a very personalised concept. For example, two dancers, two speakers, two actors, or two writers will always differ in demonstrating their art.
BASED ON PRACTICE ND CREATIVITY:- All art is practical. Art involves the creative practice of existing theoretical knowledge. We know that all music is based on seven basic notes. However, what makes the composition of a musician unique or different is his use of these notes in a creative manner that is entirely his own interpretation.

Management as a science

Science is a systematised body of knowledge that explains certain general truths or the operation of general laws. The basic features of science are as follows:-

SYSTEMATISED BODY OF KNOWLEDGE:- Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship. For example, the phenomenon of an apple falling from a tree towards the ground is explained by the law of gravity.
PRINCIPLES BASED ON EXPERIMENTATION:- Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions.
UNIVERSAL VALIDITY:- Scientific principles have universal validity and application.

2.Do you think management has the characteristic of a full-fledged profession?

Ans-

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A profession has the following characteristics:-

WELL-DEFINED BODY OF KNOW-LEDGE:- All professions are based on a well-defined body of knowledge that can be acquired through instruction.
RESTRICTED ENTRY:- The entry to a profession is restricted through an examination or through acquiring an educational degree. For example, to become a chartered accountant in India a candidate has to clear a specified examination conducted by the institute of Chartered Accountants of India.
PROFESSIONAL ASSOCIATION:- All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. To be able to practice in India lawyers have to become members of the Bar council which regulates and controls their activities.
ETHICAL CODE OF CONDUCT:- All professions are bound by a code of conduct which guides the behaviour of its members. All doctors, for example, take the oath of ethical practice at the time they enter the profession.
SERVICE MOTIVE:- The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed service. The task of a lawyer is to ensure that his client gets justice.

On the basis of the above study it can be seen that management has some of the characteristics of profession thus ,it should be considered that it is not a full fledged profession but only a developing profession.

3.“A successful enterprise has to achieve its goals effectively and efficiently.” Explain.

Ans- Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Here the two keyword efficient and effective play an important.

Effectiveness means completing the given work in the required time. it means doing the right things with focus on the end result. It is a very important aspect of management as it helps in reaching the set goals.

Efficiency on the other hand, means completing the task with minimum possible costs and resources. Efficiency is said to increase if greater benefits are achieved using lesser resources or even if same benefits can be derived by cutting down on resources.

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For an organisation, both effectiveness and efficiency both play important role in achieving the goals. While on one hand, being effective implies actually achieving the goals, on the other hand, being efficient would reduce the cost and thereby, increase profits. However, often an organisation has to compromise on one while achieving the other. That is, if the company focuses on effectiveness, it may have to compromise on efficiency and vice-versa.

For example, suppose to complete a given task of production, the manager decides to hire more number of workers. This would mean that he will have to give more remuneration which in turn increases the total cost of production. In this case, the manager may complete the allotted task in time but the task would lack efficiency.

On the other hand, if the manger continues to work with the available workers so as not to increase the cost, then this would result in the delay of the project. That is, in this case the manager compromise on effectiveness while achieving efficiency.

Hence, it is necessary to maintain a balance between effectiveness and efficiency

4.Management is a series of continuous interrelated functions. Comment.

Ans-

Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively.
Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. Once a specific plan has been established for the accomplishment of an organisational goal, the organising function examines the activities and resources required to implement the plan.
Staffing simply stated, is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation.
Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Motivation and leadership are two key components of direction. Directing also involves communicating effectively as well as supervising employees at work.
Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves establishing standards of performance, measuring current performance, comparing this with established standards and taking corrective action where any deviation is found. Here management must determine what activities and outputs are critical to success, how and where they can be measured and who should have the authority to take corrective action.

Thus we can say that the function of management are interdependent on each other and the manager perform these function at the same time.

5.A company wants to modify is existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What decisions/steps should each level of management take go give effect to this decision?

Ans-

TOP MANAGEMENT:- They consist of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Top management is a team consisting of manager from different functional levels, heading finance, marketing etc. For example chief finance officer, vice president (marketing). their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
MIDDLE MANAGEMENT:- Is the link between top lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time they are responsible for all the activities of first line managers.
SUPERVISORY OR OPERATIONAL MANAGEMENT:- Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility is limited according to the plans drawn by the top management. Supervisory management plays a very important role in the organisation since they interact with the actual work force and pass on instructions of the middle management to the workers.

6 A firm plans in advance and has a sound organization structure with efficient supervisory staff and control system but on several occasion it finds that plans are not being adhered to. It leads to confusion and duplication of work. Advise remedy.

Ans-

As per the case, the problem is in coordination and in communicating the work schedule. Because the duplication of work implies that there is a lack of coordination between the levels of management as well as there is a problem in communication because confusion comes only when things are not communicated properly.

Following Remedies are to be taken:

A proper communication pattern and clear cut instruction to be followed.
There should be transparency in the working pattern.
А ргорег co-ordination is to be made between the workers.
Proper motivation techniques should be used.
Feedback to be taken by the manager from the lower level.

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