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Unit 1 Introduction of Management

              Concept of management:

4.      Explain functions of management.

   A. MANAGEMENT FUNCTIONS

    All these five functions or management are closely inter-related. However, these functions are highly indistinguishable and virtually unrecognizable on the job. It is necessary, though, to put each function separately into focus and deal with accordingly.
                                                                                                                  
                                                                                                                                                       

5.   Explain planning and organizing in detail.

A. Refer question no. 4

 6. Which points should be discussed while discussing management as Science?

A. •Empirically Derived

       •Critically tested

       •General principles

       •Cause and effect relationship

       •Universal applicability

 For more detail

 Refer question no. 3

7.Provide some outline of evolution of management.

A.

8. Explain various levels in management and their functions.

 A.  There are basically three levels of management with relative standing in an organization’s hierarchy of authority. These levels are:

1. Top management:

     The top level management includes top executive such as chief executive officer, chief operating officer, president, executive vice president and various vice president. These managers are primarily involved in board organizational matters such as policy formulation, long range planning, goal setting and development of organizational strategies.  In general, the top management effectively deals with all elements and forces that affect the survival, stability, and growth of an organization. 

     It is the function of top management to watch, interpret, exploit or, where necessary, counter external influences with appropriate decisions and plans and to initiate the appropriate adjustment in the functional authority and status structure of the organization,  it is the top management’s duty to protect the integrity of the organization, so that it can survive for its own employee’s, the shareholder’s, supplier’s, and the customer’s interests and for the general good of the social and economic system within which it operates.

2. Middle management:

    The middle management level generally consist of divisional and departmental heads such as plant manager, production manager, marketing manager, personal directors etc.  their job is to interpret policies and directions set by the top level management into specific planes and guidelines to action.  Their responsibility is to coordinate the working of their departments so that the set objective can be achieved.  They are concerned with short-term goals and specific results.  They spend more time on operation planning, informational processing and day to day monitoring of their divisional activities.

3. First level supervisory management:

    This level of management consists of supervisors, unit heads, foremen, chief clerks etc.  their primary concerned with the machines of the job and they are responsible for coordinating the work of their employees. They must posses technical skills so that they can assist their subordinates when necessary.  They day to day operations, assign personnel to specific jobs, oversee their activities, evaluated their performances, and become a link between the workers and the middle level management.   

9. State importance of management.

A. The importance of management may be traced in the following contexts:

•         Effective Utilization of Resources

•         Development of Resources

•         To incorporate Innovations

•         Integrating Various Interest Groups

•         Stability in the Society   

 10. Discuss various roles of a manager in brief.

 A. A  role is a set of specific tasks a person performs because of the position they hold.

•  Roles are directed inside as well as outside  the organization.
•  There are 3 broad role categories:

1. Interpersonal

2. Informational

3. Decisional

 

Interpersonal Roles:

Roles managers assume to coordinate and interact with employees   and provide direction to the organization.

´  Figurehead- represents organization and it’s authority

´  Leader- give direct commands and orders to subordinates and make decisions

´  Liaison- makes contacts with peers and other managers

Informational Roles:

´  Associated with the tasks needed to obtain and transmit information for management of the organization.

´  Monitor- Gathers information , evaluate the performance of managers in different functions

´  Disseminator- communicate to employees the organization’s vision and purpose

´  Spokesperson- give a speech to inform the local community about the organization’s future intentions

Decisional Roles:

Associated with the methods managers use to plan strategy and utilize resources to achieve goals.

• Entrepreneur - commit organization resources to develop innovative goods and services
• Disturbance handler- to take corrective action to deal with unexpected problems facing the organization from the external as well as internal environment
• Resource allocator- allocate existing resources among different functions and departments
• Negotiator- work with suppliers, distributors and labor unions, customer, etc.

 

1.      Define planning. A.      Planning has been defined previously one of the five major functions of management. However, since planning is a bridge between the present and the future, it has been called the primary management function. Planning is  particularly important because of scarce resources and uncertain environment with a fierce competition for these resources. Planning is a decision making activity requiring the process of ascertaining objectives and deciding on activities to attain these objectives. It means, “ the determination of what is to be done, how and where it is to be done how is to do it and how the results are to be evaluated.” ´  defining goals and objectives. ´  deciding what type of activities the company will engage in ´  determining the resources needed to achieve the organization’s goals & objectives. 2.      Discuss in brief Product based Departmentation. Departmentation  by Product:  In this case, the units are formed according to the type of Product and is more useful in multi-line corporations Where product expansion and diversification and manufacturing and marketing characteristics of the products are of primary concern. For example, General Motors has six divisions which are decentralized and independent. These are: Chevrolet, Buick, Pontiac, Oldsmobile, Cadillac, and GMC trucks. The departmentation by product would be as follows: Each division is autonomous and each division strives to improve and expand its own product line and each divisional General Manager is responsible for its cost, profits, failures, and successes. In this type of division, the responsibility as well as accountability is traceable, thus making the division heads sensitive to product needs and changing consumer tastes. It thus facilitates the measurement of managerial as Well as operative results and the contribution of each product line to the organization’s total profits can be evaluated. The major disadvantage of this type of departmentalization is that it promotes fierce internal competition which may or may not, be healthy and there is a lack of coordination among different divisions unless the central management retains the policy making and financial management authority. A.        3.      Give meaning of centralization system. A.      Centralization is a system of company where authority and powers are divided into few hands. They take the major decisions for the company and others follow it. The degree to which decision making is concentrated at a single point in the organizations. Organization in which top managers make all decisions and lower level employees simply carry out those orders. Centralization suitable for SSI where employeement is less. 4.      Briefly explain matrix structure. Matrix Organization Matrix organization is the concept of project structure but much more complex and comparatively more permanent. It is used Primarily for unique custom tasks to achieve new and sophisticated products or services. It requires that diverse technical expertise be co-ordinated  quickly and closely. These organizations cope With dynamic and rapidly changing conditions much more efficiently and are used highly successfully in advanced weaponry systems development and space projects. Greiner sees Matrix organization in which cross-functional teams are used, as a response to growing complexity associated with the organizational growth. These complexities both internal (size, technology), as well external (markets, competitors, collaboration with other organizations etc.), create problems of information processing and communications that are best dealt with by Matrix type of organization. A.        5.      Mention factors affecting span of control/span of management. 1.       Similarity of functions. If the subordinates are involved in the same or similar activities, then it is possible for the manager to supervise more subordinates. Since the problems that may arise would be similar in nature, these would be easier to handle. Conversely, if these subordinates are doing diversified operations, the situation would be more complex and hence the span of control should be narrow. 2.       Complexity of functions.  If the operations that the employees are performing are sophisticated and complex and require constant supervision, then it would be more difficult for the manager to manage too  many employees. 3.       Geographical closeness of employees. The closer the subordinates are in a Physical location, the easier it will be for the supervisor to manage more employees. 4.       Direction and co-ordination.  The Span of control would also be determined by the degree of coordination required, both within the unit and with other units of other divisions. If the unit needs continuous directions and extra time of the manager in coordinating the activities then fewer subordinates will be better supervised. 5.       Capacity of subordinates. Subordinates who are trained, developed and experienced, need little supervision in discharging their duties. In such situations, more subordinates can be effectively supervised. These subordinates can further be assisted by providing them with “standing plans” which are applicable in repetitive actions and recurring problems, requiring less direct supervisory assistance. 6.       The working staff of the manager. If  the manager has supporting staff that is equally skilled in handling situation. Then it would be possible to manage a wider span of control because the responsibilities of supervision would be shared. 7.       planning:  The effectiveness of supervision would also depend upon how much time managers spend upon planning activities. If the managers spend too much time in systems planning then they will not have time to supervise the activities of too many  subordinated. A.        6.      States the steps of planning. A.      Steps of planning: Determining the goals or objectives for the entire organization. Making assumptions on various elements of the environment. To decide the planning period. Examine alternative courses of actions. Evaluating the alternatives. Real point of decision making To make derivative plans. 7.      Enlist the types of organizational structure. A.      1. Product structure 2. Functional structure 3. Processed structure 4. Geographical structure 5. Line structure 6. Line and staff structure 7. Tall and flat structure 8. Wide and narrow structure 9. Matrix structure  8.      Mention any two differences between centralization and decentralization. Centralization Decentralization Environment is stable Lower level managers are not as capable or experienced at decision making as upper level managers Lower level managers do not want to have an opinion in decisions Decisions are relatively minor Organization is facing a critics or the risk of company failure Company is large     Environment is complex and uncertain Lower level manager are capable and experience at decision making Lower level managers want a voice (opinion) decisions Decisions are significant Corporate culture is open to allowing managers to have an opinion in what happens. Company is geographically dispersed   A.        9.      Give meaning of span of management. A.      Span of management also know as span of control it means how many employees can be  handle by effectively and efficiently. The number of employees handle by a single manager is know as his span (area) Ex, in Pepsi company the span are is 1:56 10.  Briefly explain line organization structure. Line Organization This is the simplest type 0f organization where the authority is embedded in the hierarchical structure, and it flows  in a direct line from the top of the managerial hierarchy down to different levels of managers and subordinates and down to the operative level of workers. It clearly identifies authority, responsibility, and accountability at each level. These relationships in the hierarchy connect the position and tasks of each level with those above and below it. There is clear unity of command so that a person at each level is independent of any other man at the same level but only is responsible to the person, above him. The line personnel are directly involved in achieving the objectives of the company. This type of organizational structure is specially useful when the company .is small in size and the employees have a sense of belonging and they become involved. Also, the decision making process is easier and quicker. A simple line structure is given below. A.        11.  Give meaning of corporate planning and functional planning. A.      Corporate planning Corporate planning is prepared by top level management and it cover the entire organization. Functional planning This planning formulated for major functions of the department. Functional planning likes production, planning, sales & marketing planning, human resources planning & financial planning.   12.  Provide meaning of decentralization system. A.      Decentralization is a system of company where authority and powers are divided into more hands. They jointly take major decisions for the company and also enjoy the freedom of power. Organizations in which decision making is pushed down to the managers who are closest to the action. Decentralization suitable for large scale industry where employeement is more. 13.  Briefly explain flat organizational structure. A.      Flat organizational structure have fewer management level at which controlling a board area or group. It focus on empowering employees rather than adhering to the chain of command By encouraging autonomy and self direction flat structure attempt to tap into create challenges to solve problems by collaboration.    14.  Write advantages and disadvantages of centralization system. A.      Advantages Used in small scale industry Quick decision making is possible Suitable in emergency Disadvantages Few people can enjoy authorities and power as well as less chance of advancement and growth. 15.  Enlist the types of Departmentation. A.      There are following: Departmentation by function Departmentation by product Departmentation by customers Departmentation by area Departmentation by time 16.  Provide importance of planning. A.      Importance of planning 1.      Primary of planning 2.      To focus attention on objectives 3.      To offset uncertainty and change 4.      To help in coordination 5.      To help in control 6.      To increase organizational effectiveness 17.  Briefly explain process Departmentation. A.      Departmention involves grouping of people or activities with similar characteristics into a single department or unit. This facilitates communication, coordination and control, thus contributing to organizational success. It creates  semi-autonomous units with independent responsibilities, providing satisfaction to the managers which in turn improves efficiency and effectiveness. Additional, it facilities control and supervision thus making the expansion of the organization easier to handle. 18.  States the advantages and disadvantages to decentralization system. A.      Advantages Used in large scale industry More people can enjoy the power and authority More chance for development People can enjoy involvement in top management Poorer decision can be mutually possible               Disadvantage Quick decision making is not possible Time consuming system   19.  Explain in brief tall organizational structure. A.      Tall structure: Large complex organization often require a taller hierarchy. It similest from a tall structure reasons is a long chain age. Compound and similar to the military. As an organization groove taller In a tall structure managers from many rank and each has a small are of control although fall structure. There is no structure draw line between two employees. 20.  Give meaning of long term planning and short term planning. A.      Long term Planning Long term planning also cover the whole organization. Time period of this planning is 1 year to 10-20 years.               Short term Planning               Time period 1 year duration or less. 21.  Define the term ‘Organizing’. It refers to the symmetric arrangement of different aspects of the business operation to which the plane objective. Organization is the process of so combining the work which individual or groups have to perform with the facilities necessary for its execution, that the duties so performed provide the best channels for the efficient, symmetric, positive and coordinated application of the available efforts. 22.  Briefly explain Departmentation by territories/Geographic. Departmentation by  area:  If an organization serves different graphical areas, the division may be based on geographical bash It is specially useful for large scale enterprises which are geographically spread out such as banking, insurance, chain stores or a product which is nationally distributed. For example, a Vice-President of Marketing may be responsible for promotion of the product in Eastern Region, North Western Region, Southern Region etc. In case of multi-national organizations, the divisions may be European, Division, Middle East Division, Far East Division etc., with head office in “the United States, as shown below: In these cases, the local population is served by the divisional personnel while the policies are formulated at the headquarters. T3local management is in close contact with the people, taking advantage of the local factors such as customs, culture, styles, and preferences. The one problem is the difficulty in communications which can delay important decisions and create problems with coordination of inter-related activities. 23.  Provide meaning of wide and narrow span of management.