353-1 managment skills

7/27/2019 353-1 Managment Skills

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INDEX

Unit I ................................................................... 3

Lesson 1: Management ........................................ 4

Lesson 2: Planning............................................. 12

Lesson 3: Coordination ...................................... 25

Unit - II ............................................................. 32

Lesson 4: Motivation .......................................... 33

Lesson 5: Delegation of Authority ...................... 39

Unit - III ............................................................ 47

Lesson 6: Departmentation ................................ 48

Lesson 7: Communication .................................. 52

Unit IV ............................................................... 62

Lesson 8: Leadership ......................................... 63

Lesson 9: Controlling ......................................... 68

Lesson 10: Directing .......................................... 75

Unit V ................................................................ 80

Lesson 11: Advertising ...................................... 81


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Unit I

Lesson 1:- Management

Lesson 2:-PlanningLesson 3:-Co-ordination


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Lesson 1: Management

Objective:

In this lesson the students will explore themeaning and scope of management.

Structure:

1.0 Introduction

1.1 Concept of Management1.2 Nature and Characteristics of Management1.3 Principles of Management

1.0 Introduction

The basic unit of society is individual but no

individuals can satisfy all his desires himself so heunites with his fellow beings in an organised groupfor achieving what he cannot do individually. Humanbeings are surrounded by organised groups of manykinds, viz., a family, a play group, a work group, aschool, a business firm, a government, etc.

An organisation is a set of people working togetherto achieve common goals. Wherever there is anorganised group of people working towards acommon goal, some type of management becomesessential. . No organisation can run successfullyunless there is someone to manage its activities.

"Organisation" specifies a set of people to achieve

common goals where group activities are co-ordinated and some type of management isrequired. If an organisation has no management atall, enemy individual will perform his own duties andthe result will be utter confusion where people willbe managing their own affairs and will beresponsible for nothing else other than their own

jobs.


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Management is an essential part of any groupactivity. It is a primary force within the group ororganisation which tends to lead it towards thegroup goal. Management is required to plan,organise, co-ordinate and control the affairs of theorganisation. It brings the human and materialresources together and motivates the people for theachievement of the objectives of the organisation.Without management, resources of productionremain resources merely and never becomeproduction.

Management is a primary part of group activity andteach to achieve the common goal. Management isrequired to

Plan

OrganiseCo-ordinate &

Control the Affairs


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(Management is the body of knowledge and its practice)

Art of getting things done

Concept of Scientific Principles of Management

Art and Science ofDecision Making and Leadership

Management as a Discipline

Manager as a Noun :(Management refers to all those persons who manage)

Board of Director

Managing Director

Chief Executive

General Manager

Functional Managers

Supervisors Labourers

Management Flow ChartSkills

As a process(Management is what a manager does)

Planning

Organising

Staffing

Directing

Co-ordinating

Controlling


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The concept of management was developed tocoordinate the functions of an organisation, gettingthings done through others Developing theleadership quality and confidence of decision makingfor better PROFITABILITY AND PRODUCTIVITY ofthe Organisation.

1.1 Concept of ManagementThe concept of management was developed tocoordinate the functions of an organisation, gettingthings done through others Developing theleadership quality and confidence of decision makingfor better PROFITABILITY AND PRODUCTIVITY ofthe Organisation.


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"MANAGEMENT CONCEPT"FLOW CHART

1.2 Nature and Characteristics of

Management:

Each definition of Management shows oneemphasised area of work, but if taken the nutshellof all definition into the characteristic ofManagement, the following would emerge as themain features to be taken care of.

1. Management is a group activity:No individual can satisfy or perform the jobsindividually to reach the management targets,hence it becomes mandatory to perform in a groupactivity.

Eg : In an export house from senior merchandiser tocutters it has to be a group activity else shipments


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wont be completed on time and they will reflectupon losses for the management.

2. Management is goal oriented:Effective management is always "Management byObjectives". Rightly said as without an aim, orobjective no work process will have initiative andtargets to achieve.

3. Management is a factor of production:That is not an end to itself but a mean to achievethe group objective. Just as land, labour and capitalare factors of production.

4. Management is universal in character:Management is applicable in all types oforganisations whether social, business, cultural,

sports, religious, educational, military or political,the basis principals are universal in character.

5. Management is needed at all levels oforganisation:

Management is needed at all levels of theorganisation whether top level; middle level, the

difference at the levels i.e. only with nature of taskand scope of authority.

6. Management is a distinct process:Management is a distinct process to determine theprocesses through human beings and otherresources. The process of management consists offunctions like planning, organising, directing,controlling, staffing, motivating and co-ordinating.

7. Management is a social process:Management consist of getting things done throughothers. The efforts of human beings have to bedirected and co-ordinated in order to achieve thebest results.


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8. Management is a system of Authority:Management reflects rule making and rule enforcing

body. Authority is an essential part of Managementwhich has the power of getting the work done fromothers or compel them to work in a particularmanner.

9. Management is a dynamic function:Management is a never ending functions, it has to

perform continuously keeping in track with thecharges and upgradation with flexibility to achievethe best results in every sphere.

10. Management is an art as well asscience:

Management is a science as it has developed certain

principles which are of universal application. Theresult of Management depends upon the personalskills of Managers and this is an art.

11. Management is a profession:In present scenario management is recognised as aprofession. It has a systematic and specialised body

of knowledge consisting of principles, a techniquecan be taught as a separate discipline.

12. Management is intangible:Management is intangible _ It can be felt in theform of results and not seen.

1.3 Principles of Management

Business to manage with different aspects ofManagement has become very complex these days,as Managers are expected to deal with number ofproblems in day-to-day working. To increase theefficiency and have a coordinated effort to achieveManagement targets Management Principles were

developed so that Managers could follow guidelinesand prove to be better managers for a better


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tomorrow. These principles are the real exerciseswhere problems were faced and the better achieveresults were developed into the principles.


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Lesson 2: Planning

Objective

In this lesson the students will understand thetypes and role of planning in management.

Structure

2.0 Introduction2.1 Definitions2.2 Nature or Characteristics of Planning2.3 Six Ps of Planning2.4 Needs for Planning2.5 Principle of Planning2.6 Characteristic of a Good Plan

2.7 Types of Planning2.8 Advantages of Planning2.9 Limitation of Planning

2.0 Introduction

Planning helps in determining the course of action to

be followed for achieving various organisationalobjectives. It's a decision in advance; what to do,how to do and who will do a particular task.Planning is a process, which in one line could bedefined as `Think before act'.

2.1 Definitions

To some planning means everything a person does,to others it's specific activity. To clear the meaningof planning, some definitions have been dismissed.

Hart: "The determination in advance of a line ofaction by which certain results are to be achieved isplanning". According to Hort, Planning is the

deciding of a course of action required for reachingorganisational goals. The line of action is decided in


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advance so that actual execution become easy lateron.

Alfred and Beauty: `Planning is the thinkingprocess, the organised forecast, the vision based onfact and experiences that is required for intelligentaction. Planning is a process in which decision aretaken in advance. The pros and cons of thedecisions and their implication in future arediscussed before head. A wrong decision may create

difficulties for the management and may result infinancial loss too.

2.2 Nature or Characteristics of

Planning

a)Planning, an Intellectual Process: Planning is essentially an Intellectual process; itsmental is nature. A planner has to think aboutfollowing expects.

A decision on these aspects will depend uponcapabilities of the decision maker. A proper planningcan make the organisation. Whereas Improper maron organisation

How is it tobe done ?

When is it to

be done ?

By whom is itto be done ?

What is it tobe done ?


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Planning is an integral part of management.Especially in fashion world it is very essential. Tocomplete a certain order in a time period of saythree months lot of planning needs to be done interms of proper infrastructure, staffing budget,delegated, responsibility etc. The followingdiscussion will explain the nature of planning.

b)Primary of PlanningWithout proper planning no management functionscan be performed systematically. How can a directorof an export house commit to dispatch a shipmentin three months without proper planning. It can besaid that planning is the function that needs to bedone first of all.

The function like organising, staffing, Directing,controlling will overlap. Its not that the other canstart only when first is completed. There may be aneed for replanning or adjustment of planning.Controlling is one function which goes side by sidewith planning. One is incomplete without the others

c) Planning: A Rational ApproachPlanning process is a rational approach to theachieving of organisational goals. An action isrational it is objectively and intelligently decided.For eg. before accepting the order from the clients,the organisation has to plan the feasibility of the

Planning

Controlling

Directing Staffing

Organising


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order in terms infrastructure, labour, raw material,time period etc

d)Focus on ObjectivesAn organisation employs a number of persons. Eachone of them has different personality and attitude.Planning focuses on setting up organisationalobjectives and suggest ways to achieve them. Foreg. If 3 lakh pieces of a garment have to beprepared in six months, planning will show the pathof how to do so.

e) Leads to Efficiency and EconomyPlanning includes the efficient utilisation of variousresources like capital, labour, machines, materialsetc. An effort is made to achieve organisationalgoals with minimum resources. Planning helps incontrolling duplication of efforts which also ensureseconomy.

f) Limiting FactorsWhile planning limiting factors like money,manpower, materials, market etc. should beconsidered. If these factors are ignored thenplanning is bound to fail. The planning should startearly after considering the availability of limitingfactors.

g)CoordinationCoordination is essential for harmonious working ofthe organisation. Planning coordinates the what,who, how, why and where of planning. In absenceof planning, different segments of the organisationmay pursue different objectives.

h)FlexibilityPlanning process should be adaptable to thechanging business environment. Planning is a


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dynamic process and it adjusts with the needs andrequirements of the situations.

i) RealisticPlanning is based on future forecasts. Thought thefuture is always uncertain but the prediction shouldbe as realistic as possible. The objectives should notbe based on wishful thinking because then it will notbe possible to achieve the goals.

j) Planning in ContinuousPlanning is always uncertain and subject to revisionand amendment as new facts become known. Evenin execution of planning there may be a charge insettings and conditions which will leads to alterationof plans.

2.3 Six Ps of Planning

Planning

These six Ps state the fundamental requirement ofPlanning. These Ps are discussed as under :

1. PurposeAn effective planning requires a clear understanding

of the purpose of planning. The purpose of anorganisation may be to increase profit or introducemore products etc.

2. PhilosophyIt starts the beliefs as to how the organisationspurpose is to be achieved. The philosophy of an

organisation may be based on profitability thoughquality or increasing turnover through consumer

Purpose Philosophy Promise Policies Plas Priorities


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satisfaction etc. For long term survival and growththe philosophy must adopt ethical conduct.

3. PromiseIts an assessment of strengths and weakness of theorganisation based on the knowledge andassumption of environment. By knowing strengthand weakness of the organisation management candeal with changing environment in a more effectiveway.

4. PoliciesPolicies are the general statements for the guidanceof the personnel. They are guidelines and limitationwhich helps in management action and thinking. Anorganisation can have marketing policies, productionpolicies, financial policies etc.

5. PlansThese are the objectives and action statements.Objectives are the goal of an organisation andaction statement are means to achieve them. Plansguides us for reaching goals and helping in knowingthe progress at different stages.

6. PrioritiesAn organisationmust fix goal priorities, because theresources of finance, materials, personnel etc. arelimited and these are to be allocated as per thepriorities set. The high priority goal will havepreference for allocation of resources.

2.4 Needs for Planning

Planning is first step in management. The increasedcompetition, changing consumer preferences havenecessitated the need for planning. Followingreasons emphasises need for planning.

1. Essential for modern business


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The growing complexities of modern business, rapidtechnological changes necessitate planning not onlyin current outlook but also in the futureenvironment.

2. Related to performancePlanning help in setting goals for each function andfor each employee. The organisation having formalplanning have performed better as compared tothose where planning is not taken up as a regularactivity.

3. Focus on objectiveObjectives provide a direction and all planningdecisions are directed towards achieving them. Itensure maximum utilisation of managerial time andefforts.

4. Proper Allocation of resourcesThe allocation of resources has to be properlyplanned thus, minimising wastage and ensuringoptional utility of these resources.

5. Facilitates ControlPlanning can be used to devise a Mechanism ofcontrol. There can be targets and their comparisonwith actual performance on being the notice anydeviation.

6. Helpful in decision makingSome planning helps in specifying the actions to betaken for achieving organisational objection. Itserves as a basis for decision-making for the future.

7. Avoiding business failuresThrough proper planning business failure chancesare considerably reduced. A bad planning may resultinto wastage of human oral physical resources.

2.5 Principle of Planning


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A no. of fundamental principles have been devisedover years for undertaking planning.

1. Principle of contribution to objectivesAll types of plans are prepared to achieve theobjectives of the organisation. Planning is used as ameans to reach the goals.

2. Principle of Primary of PlanningPlanning is first function to be undertaken in any

organisation. Organisation has to plan first and thenproceed to carry out other functions.

3. Principle of AlternativesPlanning process involves developing of manyalternatives and then selecting one which will helpin achieving desired business goals. In absence of

alternatives planning gets difficult.

4. Principle of TimingPlanning is useless without proper timemanagement. Time allocation should be done beforestarting the projects.

5. Principle of commitmentThere should be a time frame for meeting thecommitments made. This will ensure the achievingof targets in time.

2.6 Characteristic of a Good Plan

A good plan will be that which helps in achieving

objective of an enterprise. A good plan should havethe following characteristics: _

1. Clear objectiveIf goals are clear then there will be no confusion orchaos. The objective should be clear, definite andaccurate.

2. Proper understanding


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A good plan is that which is well understood bythose who are to execute them.

3. ComprehensiveA good plan should cover each and every aspect ofthe business for proper fulfilment of objectives.

4. FlexibleA plan should be flexible to accommodate futureuncertainties. A flexible plan will be one which will

smoothly adjust requirement of changing condition.

5. EconomicalThe cost evolved in planning should be aseconomical as possible, depending upon theresources available with the organisation.

2.7 Types of Planning

Plans may be classified into several types: _

A. Administrative Planning & OperativePlanning

Administrative planning is concerned withdetermining the bases of action for a period of time

for the whole business as well as for varioussegments of it. These plans provide guidelines tooperational plans.

Operational planning determines the bases of actionfor undertaking work. These plans are related to theactual execution of work. Operative plan aregenerally for a short period of time and are

prepared at lower level management.

B. Long term, medium term and short termplanning

A long term planning set long term goals for thefirm and proceeds to formulate specific plans forattaining these goals. This planning may be for a

period of five, ten or twenty years. It generally


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deals with Manpower planning, financial resources,Product planning etc.

Medium term planning is for two to five years.The areas covered in medium term planning aresame and for long term planning. The details ofvarious plans are worked out for their properimplementation.

Short term planning is concerned withdetermining short term activities to accomplish longrange results. These plans are generally for oneyear period. The department like production andmarketing may develop quarterly or monthlyoperating results.

C. Strategic and Tactical PlanningThe main objective of strategic planning is set,strategies are advised, policies are laid down.Planning sets the direction in which the business willgrow. It keeps in view the moves of competition,market factors, consumer preferences, life cycle ofthe product etc.

Tactical plans are to support strategic plans wherein

some difficulty is faced in its implementation. Anychanges in internal organisation and externalenvironment have to be met through tactical plans.For e.g. there is a sudden change in prices ofproducts difficulty in procuring raw materials etc.are taken care through strategic planning.

D. Standing and ad-hoc planningStanding plans are meant to be used over and overagain. They are permanent in nature. These plansprovide ready made answers to a situation.Examples of standing planning are

1. Policies2. Procedures3. Methods


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4. Rules.Ad-hoc plans are generally for specific matters.

These plans are prepared only when some needarises. Different situations require different methodsof tackling them. So, ad-hoc plan for one situationcannot be used in another situation.

2.8 Advantages of Planning

Planning is one of the crucial functions of

management. It's basic to all other functions ofmanagement. There will not be proper organisationand direction without proper planning. Planning isimportant for the following reasons: _

1. Attention on objectivesPlanning helps in clearly laying down adjectives of

the organisation. The whole attention ofmanagement is given towards the achievement ofthese objectives.

2. Minimising UncertaintiesPlanning certainly minimises future uncertainties byleasing its decision on past experiences and present

situation.3. Better Utilisation of ResourcesAnother advantage of planning is the betterutilisation of resources of the business. All resourcesare put to best possible uses.

4. Economy in OperationsThe operations selected being letter among possiblealternatives, there is an economy in operation. Themethod of trial and error is avoided and resourcesare not wasted in making choices.

5. Better CoordinationThe objective of the organisation being common.Planning will lead to better coordination in the


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organisation which will ultimately lead to betterresults.

6. Encourage Innovation and creativityPlanning helps innovative and creative thinkingamong planners because they will think many newthings while planning.

7. Management by Exception PossibleManagement by exception means that management

should not be involved in each and every activity.By the introduction of Management by exception,Managers are given more time for planning theactivities rather than washing their time in directingday-to-day work.

8. Facilitate DelegationUnder planning process, delegation of powers ofauthority is facilitated through planning process.

2.9 Limitation of Planning

Every coin has two faces. Similarly despite of manyadvantages there are certain disadvantages ofplanning which are mentioned as under:

1. Lack of Reliable DataPlanning is leased on various facts and figuressupplied to the planners. If the data on whichdecision are based are not reliable then decisionbased on such information will also be unreliable.

2. Time Consuming ProcessPractical utility of planning is sometime reduced bythe time factor. Under certain circumstances anurgent action is needed then one can't wait for theplanning process to complete.

3. ExpensivePlanning process is very expensive. The gathering ofinformation and testing of various courses of action


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involve greater amount of money. The utilityderived from planning in no case should be less thanexpenditure incurred on it.

4. External Factors may reduce utilityBeside internal factors there are external factors toowhich adversely affect planning. They may beeconomic, social, political, technological or legal.

5. Sudden EmergenciesIn case certain emergencies arise then the needs ofthe hour is quick action and not advance planning.These situations may not be anticipated in planning.

6. Resistance to ChangeMost of the persons, generally don't like anychange. Their passive outlook to new Ideasbecomes a limitation to planning.


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Lesson 3: Coordination

Objective

The objective of this lesson is to introducestudents to the principles and process ofcoordination.

Structure

3.0 Introduction3.1 Definitions3.2 Principle of Co-ordination3.3 Process of Coordination

3.0 Introduction:

Coordination refers to the process of clubbing all theactivities or synchronising activities of variouspersons in an organisation in order to achieve theset target.

It is a source of creating mental awareness amongstall the employees and their efforts are directed inunison.

3.1 Definitions:

1. Henry Fayol: "To coordinate is to harmonise allthe activities of a person in order to facilitate itsworking and its success."

According to this definition it is concluded thatCo-ordination is a very important aspect ofmanagement that enables a person to improvehis functioning. It creates harmony in theworking environment

2.Ordway Tead: "Co-ordination is the effort toassure a smooth interplay of the functions andforces of all the different component parts of an


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organisation to the end that its purpose will berealised with minimum of friction and maximumof collaboration effectiveness."

According to the above mentioned definition, themain purpose of co-ordination is to balance allthe functions of various departments in order toachieve the Organisation goals to the fullest.

3. Koontz and O' donnell: "It seems moreaccurate to regard co-ordiation as the essence ofmanagership for the achievement of harmony ofindividual efforts towards the accomplishment ofgroup goals is the purpose of management. Eachof the managerial function is an exercise incoordination."

3.2 Principle of Co-ordination

There are four main principles of Co-ordination asstated by Marry Parker Follett;

a) Principle of Direct Contract: _ Miss Follet is of theopinion that Co-ordination can be achieved moreeasily if there is direct horizontal relationshipsand direct personal communication. There

always exist a possibility of conflicts andmisunderstandings. To avoid this direct contactand proper communication is essential.

b) Principle of Early Beginning: Co-ordination iseasily achieved if its struggled for in the earlystages of planning and policy making. For

example, in an export house, if the seniormerchandiser or the head of the productiondepartment while forming the policies, meetsand discusses with the other heads, the questioninvolved, a successful co-ordination is far morelikely to be achieved.

c) Principle of Reciprocal Relationship All thefactors in a situation that exists at a work placeare interrelated reciprocally. Work of one person


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is dependent on that of the other, who in turnmay be dependent on some other. In theabsence of co-ordination among any one makesthe entire work suffer

For instance, in branded companies like Nike,Reebok, Duke, materials, finance, sales,production will be dependent upon0 one another,and when member of such companies realisethat all factors are reciprocally related then

coordination becomes a task which is easy toperform.

At every level of management co-ordination isessential for achieving harmony in the individualefforts. According to Chester Bernard, the quality ofco-ordination is the crucial factor in the survival oforganisation.

Co-ordination is important because of the followingreasons :

a) Good Personal Relations: With the help co-ordination, good personal relations can be builtup between management and staff. Mutualdiscussion may sort out various conflicts in anorganisation.

b) Unity of Direction: Co-ordination creates unity ofdirection. Its absence might result in conflictinggoals.

c) Essence of Management: Every organisationmaintains a degree of specialisation, division oflabour and large number of individual. Every one

Good personal

relations

Unit of

Direction

Essence of

Management

Efficiency &

Economy

Retains

Personnel

IMPORTANCE OF CO-ORDINATION


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has a different way of working, therefore itbecomes essential to synchronise the work of allpersons in the organisation.

d) Efficiency and Economy: Efficiency and economyresults in from coordination. Efficiency resultsonly when any sort of delays and duplication isavoided. On the whole, it saves time and energy,bringing economy to the business.

e) Helpful in Developing and Retaining of Personnel:Co-ordination not only promotes the spirit ofteam work instead it also promotes jobsatisfaction among employees by developingconfidence and by giving them personalcontentment.

3.3 Process of Coordination

Coordination may be achieved through followingprocess: _

a) Proper Planning: Planning is deciding in advancewhat is to be done in futures. Its the elementarystage of achieving coordination. According toMary Follett, planning stage is the ideal time to

bring about co-ordination and they must see to itthat various plans are properly interrelated.

b) Through Organisation: Co-ordination is anessential part of every organisation. In anorganisation related activities are placedtogether to avoid delays and confusions. In an

Organisation authority and responsibility go handin hand. The superior assign variousresponsibilities to the subordinates well plannedactivities in an organisation may lead to ultimateco-ordination.

c) Through Directing: A manager gives direction,guidelines and instructions for doing a job that

he is support to do. His direction is the way toachievement of overall set targets.


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d) Through Controlling: Its the manager who needsto have control over the overall workperformances of the subordinates. These mightbe chances wherein, the subordinates do notperform as per the directions in such cases;manager will take corrective action so as bringthe performance upto the mark. Controlling itselffacilitates co-ordination since it requires theevaluation of performance of subordinates andenables the manager to make necessary changesif there are deviations between standards setand results achieved.

e) Through staffing: Right job is performed or canbe performed by the right / suitable person only.So while selection, its the responsibility of themanager to appoint right at the right job so that

staffing as a function of management helps inco-ordination.


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Summary

Management is a process through which the working

of an organisation can be streamlined by planning,organising, coordinating, and controlling of theaffairs of the organisation. It involves planning andcoordination on the part of the manager so that theorganisation can function smoothly and efficiently.

Revision Points

Concept of management

Nature and characteristics of Management

Principles of Management

Six Ps of Planning

Characteristic of a Good Plan

Principle of Co-ordination

Process of Coordination

Key Words:

1. Management: the process by which thefunctions of an organisation are coordinated.

2. Planning: It's a decision in advance; what to do,how to do and who will do a particular task.

3. Coordination: Coordination refers to theprocess of clubbing all the activities orsynchronising activities of various persons in anorganisation in order to achieve the set target.

Intext Questions

1. "Explain Management"2. Define in brief the four parts of Management

Skills.

3. What is the need for "Planning?4. Briefly define "Concept of Management".


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Terminal Exercises:

1. Give different characteristics of Management.2. What do you understand by the term "planning?3. Explain the characteristics of planning?4. What are the 6 "P" of planning? Explain.5. Why is Management required in any

organisation?

Assignments

1. List the advantages of planning?2. What is coordination? How can Co-ordination be

achieved successfully?

3. Why do you think Co-ordination is important inmanagement? Explain with the help of anexample.

4. Explain the process of Co-ordination.


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Unit - II

Lesson-4: MotivationLesson-5: Delegation of authority


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Lesson 4: Motivation

Objective

The objective of this lesson is to introducestudents to the types, importance andtechniques of motivation.

Structure

4.0 Introduction4.1 Definitions4.2 Types of Motivation4.3 Importance of Motivation4.4 Techniques to Increase Motivation

4.4.1 Financial Motivators

4.4.2 Non-Financial Motivators

4.0 Introduction:

Motivation is an important factor which encourageshuman being to give there best performance andhelps them in attaining their goals. Motivation is an

inner feeling which energies a person to work more.It helps to activate the unused energizes a personby channelising them into positive actions

4.1 Definitions

Motivation has been defined by various scholars asfollows

Dubin: Motivation is the complex of forces startedand keeping a person at work in an organization

Vanu : Motivation implies any emotion or desirewhich so conditions ones will that the individual isproperly bad into action

Lillis:It is the stimulation of any emotion or desireoperating upon ones will and promoting or driving itto action


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Every organisation aims to increase its profits andexcel in the market. To achieve these objectivesfrom its employees, the Organisation needs toinspire and encourage workers to perform betterand use their capabilities and capacities to thefullest. Lets take an example of an export house; aManager who wants to achieve his targets in alimited time period. To do so, he needs full co-operation from his team. He needs instil enthusiasm

among team members to accomplish the assignedtask. He can do so by using positive or negativemethods to motivate them as discussed under:

4.2

1. Positive Motivation: Positive motivation isbased on rewards. The workers are offered

benefits for achieving the desired goals. Thebenefits may be in the form of more pay,promotion, better reports etc. The want of allthese additional benefits makes the workershappy and they want to improve theirperformance. Thus the targets are achieved withfull support of workers and administration in a

peaceful manner.2. Negative Motivation: Negative motivation is

based on force or fear. Employees are giventhreats and forced to work more. In case, theydo not act accordingly they may be punishedwith demotions, extra time or even losing the

jobs. This prevails fear and employees do not co-operate willingly. Though they work upto a levelwhere punishment is avoided but this type of

Positive Motivation(Promotion, Salary raise, better reports

insurance, bonus etc.)

TYPES OF MOTIVATION

Negative Motivation(Fear, threat, punishment)


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motivation causes anger and frustration. Itbecomes a cause for social evils. Inspite of thedrawbacks of negative motivation, this method iscommonly used to achieve desired results.

4.3 Importance of Motivation

Every organisation wants to maximise its output.This is possible only when all the employees co-operates and give in this best effort. The following isthe importance of motivation.

1. High performance: - Positively MotivatedEmployees will put Maximum efforts forachieving organisation goals. The unusedphysical and mental abilities are used to themaximum. Better performance will also result inHigher productivity.

2. Low Employee Turnover And Absenteeism: -When the employees are not satisfied with their

job then they will leave it whenever they get analternative of for the dissatisfaction amongemployees costs high to the organisation whenthe employees are satisfied with their jobs and

they are will motivated from time to time byoffering them financial and non financialincentives then the loyalty towards organisationincreases. The rate of absenteeism will also belaw because they will try to increase their output.

3. Better Organisation Image:- The organisationwhich offer better Monetary facilities to their

employees have a letter image in the market.Such concerns are successful in attracting letterqualified and experienced professionals the highquality manpower the will help to furtherimprove the performance of the organisation.

4. Better Industrial Relations: - A goodmotivating system will create job satisfactionamong employees and employers The conflicts


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would be discouraged and cordial relationsamong both sides will create a positiveatmosphere. It will lead to healthy competitionand better industrial relations.

4.4 Techniques to Increase Motivation

Every management tries to specify certainmotivational techniques specify certain motivationaltechniques which can be employed for improvingperformance of its employees

4.4.1 Financial Motivators

Financial motivators may be in the form of morewages and salaries, bonuses, profit sharing, leavewith pay, medical insurance, life insurance etc. Theeconomists and most of the managements considerfinancial incentives as important motivators.Motivation in terms of salary / wages increase is

must to retain people in the organisation.

4.4.2 Non-Financial Motivators

Financial Motivators

MOTIVATIONAL TECHNIQUES

Non-financial Motivators

Bonus Recognition

Project Sharing Participation

Insurance Competition

Higher Salary Job Enrichment

Leave with pay Status


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The motivators are in the nature of better status,recognition, job security etc. some of these arediscussed below:

1. Recognition:- Error! Bookmark notdefined.Recognition may be in terms of world ofpraise, a better of appreciation, entry into annualconfidential meeting etc. There can also beawards certificates, trophies etc. The recognitionmay be for better output, saving the time,

improving quality of products, effective solutionsetc. All these types of recognitions will act asmotivators. If the performance of the workers isnot recognised and everyone is treated on thesame footing then potential minds will not try toput their best efforts

2. Participation:Participation means physical andmental involvement of people in decision makingprocess. It uplifts ego and confidence of workers.The feel important when asked to makesuggestions in these fields of activity.Participation gives a sense of responsibility andaccomplishment. Managers should encourage

subordinates to participate in open discussionsprior to decision making

3. Competition: In some organisationscompetition is used as a motivator variousemployees are given certain objectives andeverybody tries to achieve them ahead of others.There may be praises, appreciation letters,

financial incentives etc. to these who reach thegoals effectively and efficiently. The competitionencourages to improve performances

4. Job Enrichment: Job enrichment has beenrecognised as an important motivator by variousresearchers. The job is made more challenging

for the workers by giving the freedom in decidingabout their work methods. The employees are


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also asked to perform the functions of planningand control. The employee is given the dealingsand quality standards he must meet. Within thisframework he is given a free hand to decide andperform the work. It brings more job satisfactionand innovations in working styles

5. Status: A management may create somestatus symbols in the organisation. This can bedone by way of giving various facilities to the

employees. There may be superior furniture,carpets, on the floor, having peons or personalassistants etc. To get these facilities a person willhave to show a certain level of performance.When a person achieves certain facilities then hetries to get better status by working more. Inthis way, status acts as a motivator.


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Lesson 5: Delegation of

AuthorityObjective

The objective of this lesson is to introducestudents to the theories, characteristics andtypes of delegation of authority.

Structure

5.0 Introduction5.1 Theories of Authority5.2 Delegation

5.2.1 Definition5.2.2 Characteristics of Delegation

5.3 Elements of Delegation5.4 Types of Delegation5.5 Difficulties involved in Delegation of

Authority

5.0 Introduction:

Authority refers to the right that is given by asuperior to the subordinate

Need for delegation of authority increases as andwhen an organisation grows. The main purpose ofdelegation is to make organisation possible

It has following elements:

a) There exists right in authority. This right is givenby superior to subordinate

b) The right of giving of orderc) The right of decision-making goes at par with

authority


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d) Authority influences the behaviour of thesubordinates so that right things are done atright time

5.1 Theories of Authority

a) Formal Authority Theory: This theory states thatauthority originates at top level and then goesdownward through the process of delegation.

b)For example: In an Export House seniorMerchandiser has the maximum authority to lookafter the exports of the company after theDirector. Later the authority is delegated to themerchandised fashion co-ordinator samplingcoordinator and finally to the fashion colourist

c) Acceptance Theory: According to this theory,acceptance of an order depends upon relativeconsequences, both positive as well as negative.Either order is fully accepted, or duly unacceptedor partially accepted. A manager may not besure whether his orders will be accepted or not.It is his persuasion which will ensure theacceptance of his orders

d) Competence Theory: Personal competence of aperson is something that greatest authority.Orders may get accepted not due to formalauthority but because of personal qualities

Formal AuthorityTheory

Theories of Authority

AcceptanceTheory

CompetenceTheory


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5.2 Delegation:

Refer to the administrative process of getting things

done by others by giving them responsibility5.2.1 Definition

Allen: The entrustment of a part of the work, orresponsibility and authority to another, and thecreation of accountability for performance

O.S. Hines: Delegation takes place when personguide another the right to perform work on hisbehalf and in his name, and the second personaccepts a corresponding duty or obligation to dowhat is required of him

5.2.2 Characteristics of Delegation

1.A manager is a one who exercises full controlover the activities of the subordinates even afterdelegation

2. It is only the authority which is delegated andnot the responsibility

3. Only a part of authority is delegated and tosubordinates

4. When manager grants some of his powers tosubordinates, delegation takes place.

5. For Delegation to exist, the person delegatingthe authority himself should have that authorityi.e. a manager must possess what he wants to

delegate5.3 Elements of Delegation

There are three basic elements of delegation

i.Assignment of Responsibilityii.Grant of Authorityiii.Creation of Accountability


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1. Assignment of Responsibility: The first basicstep of delegation is assigning of responsibility tothe subordinates i.e. Delegation of Authority.Herein a superior asks his subordinate toperform a task in a given point of time

2. Grant of Authority: The delegation grantsauthority to the subordinate so that the assignedtask is performed. Giving responsibility withoutauthority is meaningless. Authority is derived

from responsibility3. Creation of Accountability: Accountability is the

obligation of a subordinate to perform the dutiesassigned to him. Delegation creates anObligation. After the work is assigned andauthority is delegated there results accountabilitywhich is a by-product of this process.


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5.4 Types of Delegation

There are four basic types of delegation

a) General or Specific Delegation: Delegation is saidto be general when authority is given to performgeneral managerial functions like planning,Organising directing, etc.

b) On the other hand, specific delegation refers toparticular functions or an assigned task

c) Formal or Informal Delegation: Every person isautomatically given authority as per his duties.When production manager gets powers toincrease production then it is a formal delegationof authority

d) Informal delegation does not arise due toposition but depending upon the circumstances.its not because a person is assigned a task toperform that he does it, instead, its a necessarypart of his normal work

e) Written or Unwritten Delegation: Delegationwhich is done in written form i.e. through letters,instructions, circulars, etc., whereas unwrittendelegation is through connections customs etc

f) Downward or Upward Delegation: Delegationwhich is from a superior to subordinate isreferred to as downward delegation. Upwarddelegation takes place. When a subordinateassigns some of his tasks to his superior. This is

not very common in nature


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5.5 Difficulties involved in Delegation

of Authority

Some of the difficulties that may arise due toattitude of either superior or subordinate or both inthe process of delegation of authority may be:

1. Over Confidence of superior that he is the onlyone who can do a particular work effectively thanother is the main difficulty in delegation

2. Lack of Confidence in subordinates by superiorsthat subordinates are not competent to carry outcertain things of their own, his lack of confidencein the subordinates, leads to the circumstanceswhere superior will hesitate to delegate authorityto his subordinate

3.Lack of ability in superior: A superior may lackthe ability to delegate authority to subordinates.

4. Lack of proper Controls: There may not beproper controls in the organisation which helpthe manager to keep in touch with performanceof subordinates

5.Inability of subordinates: some subordinatefeel shy in taking responsibility. The shyness orfear of committing mistakes or lack of confidenceon the part of subordinates may also act as abarrier in delegation of authority.


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Summary

For an organisation to work effectively it is very

important that the people working for thatorganisation are highly motivated. This unit explainsthe importance of motivation and how a managercan motivate his/her staff members using differenttechniques.

Along with motivation delegation of authority is alsoan important tool that a manager employs to ensurethat the work is distributed evenly to all the staffmembers and everybody has some measure ofauthority subordinates so that right things are doneat right time.

Revision Points

Importance of MotivationTypes of Motivation

Techniques to Increase Motivation

Theories of Authority

Delegation: its elements and types

Difficulties involved in Delegation of Authority

Key Words:

Motivation: Motivation is an inner feeling whichenergies a person to work more.

Financial Motivation: Financial motivators maybe in the form of more wages and salaries,bonuses, profit sharing, leave with pay, medicalinsurance, life insurance etc.

Authority: Authority refers to the right that isgiven by a superior to the subordinate.

Delegation: Refers to the administrativeprocess of getting things done by others bygiving them responsibility


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Intext Questions

1. What is motivation? What are its 2 types?2. Define delegation of authority.3. Explain Non-Financial Motivators.Terminal Exercises:

1. Define Motivation. What is the importance ofmotivation?

2. Which techniques are useful to increasemotivation?

3. Differentiate between various types ofdelegation.

4. What is positive Motivation?5. What is negative motivation?Assignments

1. What are the kind of difficulties that a managerfaces while delegation.

2. Write short notes on :(i) Formal Theory(ii) Acceptance Theory(iii)Competence Theory.


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Unit - III

Lesson 6: Departmentation


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Lesson 6: Departmentation

Objective

Students will understand the need andsignificance of departmentation in this lesson.

Structure

6.0 Introduction

6.1 Need and Significance of Departments6.2 Advantages of Departmentation6.3 Limitations of Departmentation6.4 Factors Influencing Assigning Of Activities

6.0 Introduction:

Organisation involves the division of work intogroups which are to be done for the achievement oforganisational goals.

Departmentation is the process of grouping variousfunctional activities into functional subsystemscalled departments. A department is a distinct

section of the organisation concerned with theunique business activities of like nature. In words ofAllen "Department is a means of dividing a largeand monolithic functional organisation into smaller,flexible, administrative units.

6.1 Need and Significance of

DepartmentsA department provides a frame work for anorganisation and allows business expansionindefinitely. Departmentation basically aims at:

i. Specialisation of activities to increaseperformance.

ii. To simplify management tasks.iii. Co-ordination and control of various activities.


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6.2 Advantages of Departmentation

i. It increases the performance and efficiency ofenterprise since the activities are integratedinto workable units.

ii. It provides the criteria for standards forperformance and activities and thus ensuringeffective control.

iii. It senders the task of fixation ofaccountability for results very easy sinceresponsibilities are clearly laid.

iv. It also allows easy management of activitiesand increases managerial control oforganisation.

v. Processes Involved In Departmentationvi. To identify the task or duties.vii. To analyse the task, identifying the output,

activities and input in the production ofproduct or service.

viii. Identify the tasks performed and skillrequired in a given job and group similaractivities

ix. To entrust the grouped activities to thedepartmental heads

x. To clearly define the responsibility andauthority of departmental head.


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6.3 Limitations of Departmentation

Although departmentation is important for the

efficient running and control of a business, but theseare also have some limitations

i. Decomposing the business into severaldepartments makes the co-ordination ofvarious activities very difficult

ii. Departmentation creates difficulties ofcommunication among various departmentsof organisation and makes planning andcontrol more difficult

iii. Departmentation makes the level ofmanagement which and increases the gapbetween top management and the workerand at an higher cost

6.4 Factors Influencing Assigning Of

Activities

Control Co-ordination Major Activities Specialization Local Conditions Economy


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i. Control The main aim of departmentationis control. Departments must be clear in theirresponsibilities and authorities to provideeffective control

ii. Co-ordination Another factor is the co-ordination between different departments andco-ordination within the departments. Thegoals of an organisation is common andeverybody should try to achieve them in their

respective fieldsiii. Major Activities There are certain

activities which are very important and allthese activities should be placed in separatedivisions.

iv. Specialization While assigning proper careshould be taken concerning the localconditions in the department viz. individualpersonality, responsibilities, and the nature ofinformal relationship among people.

v. Economy Another important factor whilecreating separate departments is the expenseinvolved and economy in its operation


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Lesson 7: Communication

Objective

Students will understand the meaning,characteristics and importance of communicationin this lesson.

Structure

7.0 Introduction7.1 Meaning and Definition7.2 Characteristics: Nature of Communication7.3 Elements of Communication7.4 Need or purpose of Communication7.5 Importance of Communication

7.0 Introduction

This is one of the most important factors ofmanagement, nothing will happen untilcommunication takes place. Without communicationwe cannot survive or make coordinated efforts. It isa medium by which we express ourselves,understand others and make ourselves understood.In every management activity 75 to 90 percent ofworking time of managers goes by communicatingwith others. We can say that poor managers arepoor communicators.

7.1 Meaning and Definition:

The word communication has been derived fromLatin word Communes which means common whenwe communicate we are trying to share information;an idea or the attitude. The essence ofcommunication is getting the RECEIVER and

SENDER termed together for a particular signifies

imparting, conveying or exchange of ideas,knowledge whether by speech, writing or signs.


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COMMUNICATION

Imparting, conveying or

exchange of Ideas/know

Speech Writing Signs

Definition:In words of Keith Davis, Communication is the

process of passing information and understandingfrom one person to another.

The American Management Association definescommunication as Any behaviours that results in an

exchange of meaning.7.2 Characteristics: Nature of

Communication:

1. This involves at least two people: Asmentioned communication requires minimumtwo persons _ A sender and a receiver, the

sender is called communication and the receiverof the message is known as the communicatee.One who writes, speaks or issues someinstructions is the sender and the person forwhom the communication is meant or whoreceives the message is the communitee.

2.Message is a must: Whenever communicationtakes part a message is a must, the contents ofthe letter or speech, order, instructions or thesuggestions. If there is no message there is nocommunication.

3. Communication may be written oral orgestural: Communication is generally

understood as spoken or written words. Itincludes everything meaning from one person to


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another e.g. - movement of lips, two man ofhands, body language, expression of eyes maysay more than written or spoken words.

4. Communication is a two way process: Itinvolves both information and understanding. Ifthe receivers does not understand the messageconveyed and will not comply with it, will betermed as an incomplete communication.

5. The primary purpose is to motivate aresponse: For any job which needs good resultsand high targets, drafted words with effectivecommunication can motivate the receiver.

6. Communication may be Formal or Informal:Formal communication is one where theinformation flows from Top level to bottom level

for eg : from senior merchandises of an exporthouse to fashion coordinator, to fabric analyst tocolourist, to sampling co-ordinator. In aninformal communication it flows between themembers and not through the proper channel

just by working together.

7. Communication flows up and down and alsofrom side to side: Communication has aprocess like information flow from superior tosubordinate and from subordinate to the superioror from the colleague to another of the samelevel.

8. It is an integral part of the process ofexchange: It refers to the exchange of ideas,feelings, emotions and knowledge andinformation between two or more persons.

7.3 Elements of Communication

The basic elements of communication are: _

1.Communicator: _ The sender, speaker whointends to convey some message.


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2. Communicate: _ The one who receives themessage.

3. Message: _ The content/subject matter of thespeech.4. Communication Channel: The media by which

communication is transcripted from sender toreceiver, it is a link between the two or many ormasses.

5. Response or Feedback: To evaluate about thefeedback from the receiver, back to the sender.


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7.4 Need or purpose of Communication:


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The main purpose of communication is to effectchange in someone i.e., to influence action or tosecure inaction in the overall interest of anenterprise. It enables us to understand others tomake ourselves understood. Without communicationwe cannot live or work together in an organisedway. It is a flux that binds people together in anorganisation. The basic purpose of communication isto facilitate and lubricate the organisation. It helpsmanagement in planning effectively and controllingefficiently. John G. Clover has outlined the followingimportant purposes of communication.

1. To keep employees informed.2. To provide employees with orders and

instructions in connection with their duties.

3. To solicit information from employees which mayaid management.

4. To make each employee interested in hisrespective job and in the work of the company asa whole.

5. To express management's interest in itspersonnel.

6. To reduce or prevent labour turnover.7. To install each employee with personal pride in

being a member of the company.

7.5 Importance of Communication

Communication is one of the most importantfunctions of management. The success ofenterprises depends upon the effectiveness ofcommunication. It is said to be the nervous systemof an enterprise. Nothing happens in managementuntil communication takes place. Every managermust communicate in order to get things done

through others. It has been established thatmanagers spend about 75 per cent to 95 per cent of


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their working time in communicating with others.Communication is indispensable for all managerialactivities such as organising, planning, directing,motivating and controlling. Its importance has beenhighlighted by Alvin Dodd, the then President of theAmerican Management Association, when heremarked. "The No. 1 management problem todayis communication."

In the opinion of Chester Bernard, the first

executive function is to develop and maintain asystem of communication, "Further he has calledcommunication as the foundation of co-operativegroup activity. Nobert Wiener has rightly said that,"Communication is the cement that makesorganisations."

"Whether we are considering a church, a family, ascout troop or a business enterprise, the transfer ofinformation from one individual to another isabsolutely essential. It means by which behaviour ismodified, change is effected information is madeproductive and goals are achieved" _ Koontz andO'Donnell.

According to O'Donnell, "the achievement ofenterprise goals is of paramount importance and thecommunication is one of the important toolsavailable to the manager in seeking to attain them."

In the words of George R. Terry, It serves as thelubricant, fostering for the smooth operations of

management process."The importance of communication can be judgedfrom the following:

1. Basis of Decision Making and Planning.Communication is essential for decision-makingand planning. It enables the management to

secure information without which it may not bepossible to take any decision. The quality of


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managerial decision depends upon the quality ofcommunication. Further, the decisions and plansof the management need to be communicated tothe subordinates. Without effectivecommunication, it may not be possible to issueinstructions and orders. Effective communicationhelps in proper implementation of plans andpolicies of the management.

2. Smooth and Efficient Working of anOrganisation. In the words of George R. Terry,"It serves as the lubricant, fostering for thesmooth operations of management process."Communication makes possible the smooth andefficient working of an enterprise. It is onlythrough communication that the managementchanges and regulates the actions of the

subordinates in the desired direction.

3. Facilities Co-ordination. Management is theart of getting things done through others andthis objective of management cannot beachieved unless there is unity of purpose andharmony of effort. Communication through

exchange of ideas and information helps to bringabout unity of action in the pursuit of commonpurpose. It binds the people and facilities co-ordination.

4. Increase Managerial Efficiency. Effectivecommunication increases managerial efficiency.It is rightly said that nothing happens in

management until communication takes place.The efficiency of a manager depends upon hisability to communicate effectively with membersof his organisation. It is only throughcommunication that management conveys itsgoals and desires, issues instructions and orders,allocates jobs and responsibility and evaluates

performance of subordinates.


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Summary

When the size of an organisation grows beyond a

certain number then it becomes necessary to createdepartments in that organisation, so that the workcan be divided into smaller, flexible, administrativeunits.

The creation of departments leads to the necessityof facilitating communication between thedepartments as well as individuals within thedepartment so that ideas and solutions can beeffectively exchanged.

Revision Points

Need and Significance of Departments

Advantages of Departmentation

Limitations of Departmentation

Factors Influencing Assigning Of Activities

Nature of Communication

Elements of Communication

Need or purpose of Communication

Key Words:

Departmentation: it is the process of groupingvarious functional activities into functionalsubsystems called departments.

Communication: It is a medium by which we

express ourselves, understand others and makeourselves understood.


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Intext Questions

1. What do you understand by the termDepartmentation?

2. What is the need and significance ofDepartmentation?

3. What do you understand by word"Communication?

4. Describe formal and informal communication.Terminal Exercises:

1. What are the different processes involved inDepartmentation ?

2. Why do we need to communicate?

Assignments

1. What are the factors influencing assigning ofactivities in Departmentation.

2. How are the terms "Receiver and Senders"important while communicating?

3. Briefly describe elements of goodcommunication.


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Unit IV

Lesson 8: Leadership

Lesson 9: Control

Lesson 10: Directing


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Lesson 8: Leadership

Objective

Students will understand the characteristics andtechniques of leadership in this lesson.

Structure

8.0 Introduction

8.1 Definition8.2 Characteristics of Leadership8.3 Leadership Functions8.4 Importance of Leadership in Management8.5 Techniques of Effective Leadership

8.0 IntroductionLeadership is an important element of directingfunctions of an organisation. Whenever there is anorganised group of people working towards acommon goal, some type of leadership becomesessential. Every time needs to have a leader toguide them, unite them and to encourage them, sothat the team can accomplish its goals. To be asuccessful leader a manager must possess thequalities of foresight, drive, initiative, selfconfidence and personal integrity. Differentsituations may demand different types ofleaderships.

8.1 Definitions:

"Leadership" has been defined in various ways. Thedefinition given by some famous authors andmanagement experts are given below: _

Koontz and ODonnell: "Leadership is the abilityof a manager to induce subordinates to work with

confidence and zeal."


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Dubin, R: "Leadership is the exercise of authorityand making of decisions".

George R Terry: "Leadership is the activity ofinfluencing people to strive willingly for groupobjectives."

In the above definitions of leadership the emphasisis on the capacity of an individual to influences anddirect the team towards the achievement oforganisational goals. Thus, we can say thatleadership is the practice of influence thatstimulates subordinates or followers to do their besttowards the achievement of desired goals.

8.2 Characteristics of Leadership:

1. Leadership is a personal quality.2. It exists only with followers. If there are nofollowers, there is no leadership.3. It is the willingness of people to follow that

makes person a leader.

4. Leadership is a process of influence. A leadermust be able to influence the behaviour attitude

and beliefs of his followers.5. It exists for the realization of common goals.6. It involves willingness to accept complete

responsibility in all good and bad situations.

7. Leadership styles do change under differentsituations.

8. Leadership is guiding, encouraging and unitingfollowers towards common goals.

8.3 Leadership Functions: _

Following are the important functions of a leader:

1. Setting Goals: A leader is expected to performcreative functions of laying out goals and policies


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to persuade the subordinates to work with zealand confidence.

2. Organising: The second function of a leader isto create and shape the organisation on scientificlines. By assigning roles appropriate to individualabilities, with the view to make its variouscomponents to operate sensibly, the leader playimportant role towards the achievement ofenterprise goals.

3. Initiating Action: The next function of a leaderis take the initiative in all matters of interest tothe group. He should not depend upon others fordecisions and judgement. He should come upwith new ideas and his decisions should reflectoriginal thinking.

4. Co-ordination: A leader has to reconcile theinterests of the individual members of the groupwith that of the organisation. He has to makesure that the whole team participates actively inrealising the common goals.

5. Direction and Motivation: It is the primaryfunction of a leader to guide and direct his groupand motivate people to do their best in theachievement of desired goals. He should build upconfidence and zeal in the work group.

6. Link between Management and Workers: Aleader works as a necessary link between themanagement and the workers. He interprets the

policies and programmes of the Management tohis team members and represents the teammembers interests and problems before themanagement He can prove effective only whenhe can act as the true guardian of the interestsof his co-workers.

8.4 Importance of Leadership inManagement: _


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The importance of leadership can be highlightedfrom the following:

1. It improves motivation and Morale: Throughdynamic leadership managers can improvemotivation and morale of their team. A goodleader influences the behaviour of the team insuch a manner that they work willingly towardsthe achievement of organisations goals.

2. It acts as a motive power to group efforts:Leadership serves as a motive power to groupefforts. It leads the group to a higher level ofperformance through its efforts and enthusiasm.

3. It acts as a help to authority: The efforts ofauthority alone cannot always bring the desiredresults. Leadership acts as an aid to the

authority by influencing, inspiring and initiatingaction.

4. It is needed at all the levels ofmanagement: Leadership plays an importantrole at all the levels of management because inthe absence of effective leadership nomanagement can achieve the desired results.

5. It provides the basis for co-operation:Effective leadership increases the understandingbetween the workers and the management andpromoters co-operation among them.

8.5 Techniques of Effective

Leadership:The following are the techniques of effectiveleadership.

1. The leader should consult the team in framingthe policies and lines of action and making anychanges or improvements in it further.


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2. He should attempt to develop voluntary co-operation from his team in realising commonobjectives.

3. He should exercise authority whenever necessaryto implement the policies and maintain discipline.He should give clear and complete instructions tohis team members.

4. It should build up confidence and zeal in hisfollowers.

5. He should listen to his team's view, ideas andproblems and try to help them accordingly.

6. He should communicate effectively.7. He should follow the principle of motivation.8. He should be a supportive team member.9. He should possess the qualities of foresight,

drive, self confidence and personal integrity.


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Lesson 9: Controlling

Objective

Students will understand the characteristics andrequirements of controlling in this lesson.

Structure

9.0 Introduction9.1 Definition9.2 Characteristics of Control9.3 Requirements of a control system9.4 Importance of Control9.5 Limitation of Control

9.0 Introduction

Control is one of the most important managerialfunctions. Control is the process of checkingwhether the plans are being adhered or not, keepinga record of progress and then taking correctivemeasures if there is any deviation.

9.1 Definitions:

According to Robert N. Anthony: "Managementcontrol is the process by which manager assure thatresource are obtained and used effectively andefficiently in the accomplishment of anorganisation's objectives."

According to George R. Terry: "Controlling isdetermining what is being accomplished that isevaluating the performance and if necessary,applying correct measures so that the performancetake place accordingly to plans."

9.2 Characteristics of Control

The main characteristics of control are given below:


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1. Managerial Function: Control is an importantmanagerial function. On this a person isresponsible for the work assigned to him. It ismainly function of line organisation but managercan ask data from staff personnel also.

2. Forward Looking: Control is forward looking.Past is already gone, so it helps to takecorrective measures to control future activities. Acorrective action is taken to ensure that work in

future is done in proper manner.3. Continuous Activity: Control is regularly

exercised control cannot be done in isolation.The managers see that the subordinates shouldperform according to terms and conditions whichis mentioned the term in all times. So hencecontrolling is a continuous activity.

4. Control is related to Planning: Planning is thefirst managerial function and controlling is thelast managerial function. None can be exercisedwithout each other. Hence both are equallyimportant. For example if certain things are nothappening in a proper manner then corrective

measures are taken immediately, so thusplanning provides base for controlling.

5. Essence of control is Action: Immediateaction is the essence of controlling. For exampleif the sales in a particular year are less than theset up target so immediate steps should be

taken to increase the sales. If no such steps aretaken then there will be lack of control.


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9.3 Requirements of a control system:

The control system is such that it should help the

organisation to achieve the desired results. Everycontrol system should have certain essentialfeatures which were given below: _

1. Should be easily understandable: The controlsystem should be easily understood by themanager as well as subordinates. The managersand subordinates should be clear about thecontrols so that it should be easily exercised.Hence all the levels of management should beclear about the areas in which they have tocontrol.

2. Reflect Organisation Needs: There arenumber of control techniques such as budgets,

PERT, CPM, etc. All these techniques won't tosuitable for every organisation. Those bestcontrol techniques should be used which will givebest results and reflect organisation needs.

3. Report Deviation Quickly: The control shouldbe such that deviations in performance are

reported quickly, so that whenever there is needof corrective measures, it should not be delayed.Quick reporting is essential for good controlsystem.

4. Must be Appropriate and Adequate: Thecontrol system should be such that it should helpthe organisation to achieve the desired

objectives. In every level of management thecontrol will vary. The control for productiondepartment will vary from that of marketingdepartment. Thus control should be appropriateand adequate.

5. Forward Looking: Control system should beforward looking so that corrective measures canbe taken to control future activities. Control


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system should help in planning, so thatappropriate data can be provided for planningwhenever needed.

6. Must the Flexible: A good control system isthat which can change according to the needs ofthe future, as feature is always uncertain. Acontrol system should not be rigid, it should beflexible.

7. Economical: The control system should beaccording to the size of the firm. In a smallconcern, the control technique should beeconomical and in bring concern the controltechnique should be costly.

8. Must Report Deviation Quickly: In a controlsystem the deviation must be reported quickly.

The managers cannot control the past buteffective control will help them to improve thework in future. The control system should be insuch a way that the discrepancies inperformance are reported quickly and there areno late reporting of deviations.

9. Motivating: The control system should motivateboth the controller. The performance of theemployees and the controlled. The performanceof the employees should be regularly monitoredso that they should feel motivated and there isincrease in their performance.


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9.4 Importance of Control:

Control helps and guides the management to

achieve its pre-determined goals. The following arethe importance of control system.

1. Basis for Future Action: Control provide basisfor future actions. The continuous flow ofinformation relating to the projects helpsplanning to remain in right track for long ruin. Itenables the management to avoid repetition ofpast mistakes.

2. Facilities Decision making: Whenever there isdeviation between standard and actualperformance the control help in deciding thefuture course of action. Follow up actions werealso facilitated in controlling.

3. Facilities Decentralisation: Decentralisation ofauthority is very important in big enterprises.The authority cannot be delegated by themanagement without ensuring proper control. Ifthe work is going on satisfactory then topmanagement should not worry. Various control

techniques like budgeting, cost control etc. allowdecentralisation without losing control coverhelps in co-ordination of activities.

4. Facilitates Co-ordination: Control helps in co-ordination of activities through unity of action.Every manager try to co-ordinate activities of hissubordinates to achieve the departmental goals.

5. Helps in Improving Efficiency: Controllinghelps in improving organisation efficiency. Theperformance of each and every person isregularly monitored and any deficiency iscorrected at the earlier stage so that no problemarises in future.

6. Psychological Pressure: Controls putpsychological pressure on persons in the


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organisation. While controlling the performanceof an individual is regularly evaluated and theperson tries to improve his previous work. Therewards and punishments are also linked withperformance.

9.5 Limitation of Control: _

Though control is very essential for betterperformance, but it has written limitation also.These limitations are given below: _

1. Influence of External Factors: There may beeffective control system but sometimes externalfactors adversely effect the working. Thesefactors may be government policy, technologicalchange, change in fashion, etc.

2. Expensive: The control system involves hugeexpenditure on its exercise. The performance ofevery person is measured and reported to higherauthorities. This requires number of person to beemployed for this. Thus the exercise of controlrequire both time and effort.

3. Lack of Satisfactory Standards: In controlthere is lack of satisfactory standards.Sometimes it is difficult to fix standards foractivities like public relation, research, etc. anddue to which evaluation of work of personbecomes difficult.

4. Opposition from subordinates: In control,there is increase in the pressure of work onsubordinates as their performance is regularlymonitored and evaluated. These factors lead toopposition of controls by subordinates.


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Lesson 10:Directing

Objective

Students will understand the nature, elementsand significance of direction in this lesson.

Structure

10.0 Introduction10.1 Definition10.2 Nature or Characteristics of Direction10.3 Elements of Direction10.4 Importance of Directing

10.0 Introduction:

Management is the art of getting things donethrough others. Directing is related to carry outthings in the desired manner. Direction is calledmanagement in action.

10.1 Definition1. According to Massie: "Directing concern the total

manner in which a manager influences the actionof subordinates. It is the final action of managerin getting others to act after all preparation hasbeen completed."

2. According to Koont and O'Donnel: Directing isthe inter personal aspect of managing by whichsubordinates or led to understand and contributeeffectively and efficiently to the attainment ofenterprise's objectives.


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10.2 Nature or Characteristics of

Direction:

a) It is a dynamic functions and continuous process.b) Directing initiates organised and planned action

and ensures effective performance bysubordinates.

c) It provides necessary linkage between variousmanagerial functions like planning organising,

staffing & controlling.

d) It is a universal function i.e. it is performed in allorganisations and at all levels of management.

e) It creates co-operation and harmony among themembers of the group.

10.3 Elements of Direction

a) Issuing Orders & Instructions: Its the managerwho is issued orders and instructions to hissubordinates. Instructions are important as theyreflect the decisions of managers.

b) Leadership: Leader is a one who influences thework of others. A leader is one step a head ofothers. It is the ability to build up confidence andzeal among people and to create an urge in themto be led.

c) Communication: It is the only means by whichideas can be shared in common. The wordcommunication has been derived from the latinword Communis which means Common.


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10.4 Importance of Directing

The importance of directing can be discussed under

the following heads:1. It initiates action Direction: Initiates Action.

Managerial functions like planning organisingstaffing etc. Can all be brought into actionthrough directing.

2. Increase Efficiency: By using various skills ofdirection i.e. motivation, communication andleadership, the efficiency of employees can berevised through writing co-operation.

3. Gives a Dynamic Environment to the business:Direction makes the organisation dynamic andresponsive to new drastic and suddendevelopments.

4. Provides stability: Directing helps theorganisation to attain stability and also helps theorganisation to exist for longer period.

5. Assist Co-ordination : Individual efforts are co-ordinated with the help of direction.


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Summary

An organisation with many departments and units

can only function well if it is guided by an ableleader. A leader will employ control and direction tohelp an organisation to achieve its goals bymanaging its people and resources effectively.

Revision Points

Characteristics of Leadership

Importance of Leadership in Management

Characteristics of Control

Requirements of a control system

Nature or Characteristics of Direction

Elements of Direction

Key Words:

Leadership: it is the ability of a manager toinduce subordinates to work with confidence andzeal.

Control: Management control is the process by

which manager assure that resource areobtained and used effectively and efficiently inthe accomplishment of an organisation'sobjectives

Direction: Direction is called management inaction.

Intext Questions

1. Explain the meaning of the term leadership?2. What are the various techniques of effective

leadership?

3. Define controlling. What are the characteristicsof control?


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4. How is directing on important aspect ofmanagement?

Terminal Exercises:1. What are the various functions of a leader?2. Write a note on the qualities of a leader?3. What do you understand by Directing? Explain its

nature and scope.

4. What are the limitations of control?5. What are the requirements for an effective

control system?

Assignments

1. What do you understand by the leadership?Discuss its important characteristics?

2. Explain the significance of leadership inmanagement.

3. Write the importance of an efficient controlsystem?


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Unit V

Lesson-11: Advertising


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Lesson 11: Advertising

Objective

Students will understand the nature, elementsand significance of direction in this lesson.

Structure

11.0 Introduction

11.1 Advertising Research11.2 Types of Advertisements11.3 Code of Ethics for Advertising11.4 Technique of Creating an Advertisement

11.0 Introduction:

Advertisement is a powerful tool in the hands of anyorganisation these days. There is a tremendousneed of advertisement in present market situationbecause of high competitions. Advertisementbecomes more necessary in the fashion Industry,because fashion is never static. Moreover, what isfashionable in a particular place may not be relevant

in another. Due to this reason proper advertisementstrategy according to region and aesthetic sensethere prevailing is very essential.

Through the above discussion make it very clearthat proper research is very essential beforeadvertisement.

11.1 Advertising Research:

Following tests are used among Indian AdvertisingAgencies to examine advertising effectiveness:

1. Consumer j

353-1 managment skills

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