Mangement Notes

ORGANIZATION AND ENVIRONMENTAL FACTORS An organization is a group of people intentionally organized to accomplish a common or set of goals. Types of Business Organizations When organizing a new business, one of the most important decisions to be made is choosing the structure of a business. a) Sole Proprietorship The vast majority of small business starts out as sole proprietorship which is very dangerous. These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. Sole proprietors own all the assets of the business and the profits generated by it. They also assume "complete personal" responsibility for all of its liabilities or debts. In the eyes of the law, you are one in the same with the business. Merits: • Easiest and least expensive form of ownership to organize. • Sole proprietors are in complete control, within the law, to make all decisions. • Sole proprietors receive all income generat...

Henry Fayol's 14 Principles of Management: The principles of management are given below: 1. Division of work: Division of work or specialization alone can give maximum productivity and efficiency. Both technical and managerial activities can be performed in the best manner only through division of labor and specialization. 2. Authority and Responsibility: The right to give order is called authority. The obligation to accomplish is called responsibility. Authority and Responsibility are the two sides of the management coin. They exist together. They are complementary and mutually interdependent. 3. Discipline: The objectives, rules and regulations, the policies and procedures must be honored by each member of an organization. There must be clear and fair agreement on the rules and objectives, on the policies and procedures. There must be penalties (punishment) for non-obedience or indiscipline. No organization can work smoothly without discipline - preferably volunt...

CONTRIBUTION OF FAYOL AND TAYLOR F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific management and administrative management and both provided the bases for science and art of management. Taylor's Scientific Management Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste and inefficiency is due to the lack of order and system in the methods of management. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirked work. He therefore, suggested that those responsible for management should adopt a scientific appro...

EVOLUTION OF MANAGEMENT THOUGHT The practice of management is as old as human civilization. The ancient civilizations of Egypt (the great pyramids), Greece (leadership and war tactics of Alexander the great) and Rome displayed the marvelous results of good management practices. The origin of management as a discipline was developed in the late 19th century. Over time, management thinkers have sought ways to organize and classify the voluminous information about management that has been collected and disseminated. These attempts at classification have resulted in the identification of management approaches.  The approaches of management are theoretical frameworks for the study of management. Each of the approaches of management are based on somewhat different assumptions about human beings and the organizations for which they work. The different approaches of management are: a) Classical approach, b) Behavioral approach, c) Quantitative approach, d) Systems appro...

ROLES OF MANAGER Henry Mintzberg identified ten different roles, separated into three categories. The categories he defined are as follows a) Interpersonal Roles The ones that, like the name suggests, involve people and other ceremonial duties. It can be further classified as follows • Leader – Responsible for staffing, training, and associated duties . • Figurehead – The symbolic head of the organization. • Liaison – Maintains the communication between all contacts and informers that compose the organizational network. b) Informational Roles Related to collecting, receiving, and disseminating information. • Monitor – Personally seek and receive information, to be able to understand the organization. • Disseminator – Transmits all import information received from outsiders to the members of the organization. • Spokesperson – On the contrary to the above role, here the manager transmits the organization’s plans, policies and actions to outsiders. c) Decisiona...

FUNCTIONS OF MANAGEMENT Management has been described as a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, finance, purchase etc. Rather these activities are common to each and every manger irrespective of his level or status. Different experts have classified functions of management. According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”. According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Whereas Luther Gullick has given a keyword ‘POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. B...

OVERVIEW OF MANAGEMENT DEFINITION According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”. LEVELS OF MANAGEMENT The three levels of management are as follows 1. The Top Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows – a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for m...