KMBN101: Management Concepts and Organisational Behaviour

Unit 1

Fundamentals of Management: Management practices from past to present,

Different levels of management, Managerial skills and Managerial Functions ,
Case Studies Planning- Objective of planning, Planning process, Types of
planning, Types of plans, Management by Objective, Decision- making- types,
process & techniques,. Case Studies

INTRODUCTION TO MANAGEMENT
Management is a universal phenomenon. It is a very popular and widely
used term. All organizations - business, political, cultural or social are
involved in management because it is the management which helps and
directs the various efforts towards a definite purpose.

Definition: “Management is known exactly what you want men to do

and then seeing that they do it the best and cheapest ways”.
-
F.W.Taylor “Management is an art of getting things done through and
with the people in formally organizedgroups. It is an art of creating an
environment in which people can perform and individuals and can co-
operate towards attainment of group goals”.
Koontz nd O‟Donell

Nature of Management:

The study and application of management techniques in managingthe

affairs of the organization have changed its nature over the period of
time.

Multidisciplinary: Management is basically multidisciplinary. This implies that,

although management has been developed as a separate discipline, it draws
knowledge and concepts from various disciplines. It draws freely ideas and
 concepts from such disciplines as psychology, sociology, anthropology, economics,
ecology, statistics, operations research, etc. Management integrates the ideas and
concepts taken from these disciplines and present newer concepts which can be put
into practice for managing the organization.

Dynamic nature of principle: Based on integration and supported by

practical evidences, management h a s f o r m e d c e r t a i n p r i n c i p
l e s . However, these principles are flexiblein nature and change with
the changes in the environment in which an organization exists.
Relative, not absolute principles: Management principles are relative,
not absolute, and they should be applied according to the need of the
organization. Each organization may be different from others. The
difference may exist because of time, place, socio-cultural factors, etc.
Management - Science or Art: There is a controversy whether
management is science or art. However, management is both a science
and art.
Management as profession: Management has been regarded as
profession by many while many have suggested that it has not
achieved the status of a profession.

Principles of Management

1. Principles of Management are Universal

 Management principles are applicable to all kinds of
organizations - business &non business.
 They are applicable to all levels of management.

 Every organization must make best possible use

by the use ofmanagementprinciples.
 Therefore, they are universal or all pervasive.
 2. Principles of Management are Flexible
 Management principles are dynamic guidelines and not static rules.
 There is sufficient room for managerial discretion i.e. they can be
modified as perthe requirements of the situation.
 Modification & improvement is a continuous phenomenon in case of
principles ofmanagement.
3. Principles of Management have a Cause & Effect Relationship
 Principles of management indicate cause and effect relationship
between relatedvariables.
 They indicate what will be the consequence or result of certain
actions. Therefore,if one is known, the other can be traced.
4. Principles of Management - Aims at Influencing Human Behavior
 Human behavior is complex and unpredictable.
 Management principles are directed towards regulating human
behavior so thatpeople can give their best to the organization.
 Management is concerned with integrating efforts and harmonizing
them towardsa goal.
 But in certain situations even these principles fail to understand human
behavior.
5. Principles of Management are of Equal Importance
 All management principles are equally important.
 No particular principle has greater importance than the other.
 They are all required together for the achievement of organizational goals.

Characteristics of Management:

Management is an activity concerned with guiding human and physical

resources such thatorganizational goals can be achieved. Nature of
management can be highlighted as: -

1. Management is Goal-Oriented: The success of any management activity is

assessed by its achievement of the predetermined goals or objective.
Management is a purposeful activity. It is a tool which helps use of human &
physical resources to fulfill the pre- determined goals. For example, the goal of
an enterprise is maximum consumer satisfaction by producing quality goods
and at reasonable prices. This can be achieved by employing efficient persons
and making better use of scarce resources.
2. Management integrates Human, Physical and Financial Resources: In an
organization, human beings work with non-human resources like machines.
Materials, financial assets, buildings etc. Management integrates human efforts
to those resources. It brings harmony among the human, physical and financial
resources.

3. Management is Continuous: Management is an ongoing process. It involves

continuous handling of problems and issues. It is concerned with identifying the
problem and taking appropriate steps to solve it. E.g. the target of a company is
maximum production. For achieving this target various policies have to be
framed but this is not the end. Marketing and Advertising is also to be done. For
this policies have to be again framed. Hence this is an ongoing process.
4. Management is all Pervasive: Management is required in all types of
organizations whether it is political, social, cultural or business because it
helps and directs various efforts towards a definite purpose. Thus clubs,
hospitals, political parties, colleges, hospitals, business firms all require
management. When ever more than one person is engaged in working for a
common goal, management is necessary. Whether it is a small business firm
which may be engaged in trading or a large firm like Tata Iron & Steel,
management is required everywhere irrespective of size or type of activity.
 5. Management is a Group Activity: Management is very much less concerned
with individual‟s efforts. It is more concerned with groups. It involves the use
of group effort to achieve predetermined goal of management of ABC & Co. is
good refers to a group of persons managing the enterprise.

FUNCTIONS OF MANAGEMENT

According to Henry Fayol, “To manage is to forecast and plan, to organize, to

command, & to control”. Whereas Luther Gullick has given a keyword
‟POSDCORB‟ where P stands for Planning, O for Organizing, S for Staffing, D for
Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most
widely accepted are functions of management given by KOONTZ and O‟DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

1. Planning

It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals. According to KOONTZ, “Planning is deciding in advance -
what to do, when to do & howto do. It bridges the gap from where we are & where
we want to be”. A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses of action to achieve
desired goals. Thus, planning is a systematic thinking about ways & means for
accomplishment of pre-determined goals. Planning is necessary to ensure proper
utilization of human & non-human resources. It is all pervasive, it is an intellectual
activity and italso helps in avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals. According to Henry Fayol, “To organize a business is to provide it with
everything useful or its functioning
i.e. raw material, tools, capital and personnel‟s”. To organize a business involves
determining & providing human and non-human resources to the organizational
structure. Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement of
technology, increase in size of business, complexity of human behavior etc. The main
purpose o staffing is to put right man on right job i.e. square pegs in square holes and
round pegs in round holes. According to Kootz & O‟Donell, “Managerial function of
staffing involves manning the organization structure through proper and effective
selection, appraisal & development of personnel to fill the roles designed un the
structure”. Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose

the person andgiving the right place).
 Recruitment, Selection & Placement.
 Training & Development.

 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes. It is considered life-
spark of the enterprise which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the work. Direction is that
inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:

 Supervision
 Motivation
 Leadership
 Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the
act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal

to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

Leadership- may be defined as a process by which manager guides and influences

the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

5. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.
According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”. According to Koontz & O‟Donell “Controlling
is the measurement & correction of performance activities of subordinates in order to
make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

 Establishment of standard performance.

 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out deviation if
any.
  Corrective action.

Levels of Management

The term “Levels of Management‟ refers to a line of demarcation between various

managerial positions in an organization. The number of levels in management
increases when the size of the business and work force increases and vice versa. The
level of management determines a chain of command, the amount of authority &
status enjoyed by any managerial position. The levels of management can be
classified in three broad categories:

1. Top level / Administrative level

2. Middle level / Executory

3. Low level / Supervisory / Operative / First-linemanagers

Managers at all these levels perform different functions. The role of managers at all
the three levels is discussed below:
 LEVELS OF MANAGEMENT

Top Level of Management

It consists of board of directors, chief executive or managing director. The top

management is the ultimate source of authority and it manages goals and policies for
an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

 Top management lays down the objectives and broad policies of the enterprise.
 It issues necessary instructions for preparation of department
budgets, procedures,schedules etc.
 It prepares strategic plans & policies for the enterprise.
 It appoints the executive for middle level i.e. departmental managers.
 It controls & coordinates the activities of all the departments.
 It is also responsible for maintaining a contact with the outside world.
 It provides guidance and direction.
 The top management is also responsible towards the shareholders for the
performance ofthe enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They
devote more time to organizational and directional functions. In small organization,
there is only one layer of middle level of management but in big enterprises, there
may be senior and junior middle level management. Their role can be emphasized as
–
  They execute the plans of the organization in accordance with the policies
and directivesof the top management.
 They make plans for the sub-units of the organization.
 They participate in employment & training of lower level management.
 They interpret and explain policies from top level management to lower level.
 They are responsible for coordinating the activities within the division or
department.
 It also sends important reports and other important data to top level management.
 They evaluate performance of junior managers.
 They are also responsible for inspiring lower level managers towards better
performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists

of supervisors, foreman, section officers, superintendent etc. According to R.C.
Davis, “Supervisory management refers to those executives whose work has to be
largely with personal oversight and direction of operative employees”. In other
words, they are concerned with direction and controlling function of management.
Their activities include -

 Assigning of jobs and tasks to various workers.

 They guide and instruct workers for day to day activities.
 They are responsible for the quality as well as quantity of production.

 They are also entrusted with the responsibility of maintaining good

relation in theorganization.
 They communicate workers problems, suggestions, and recommendatory
 appeals etc tothe higher level and higher level goals and objectives to the
workers.
 They help to solve the grievances of the workers.
 They supervise & guide the sub-ordinates.
 They are responsible for providing training to the workers.
 They arrange necessary materials, machines, tools etc for getting the things done.
 They prepare periodical reports about the performance of the workers.
 They ensure discipline in the enterprise.
 They motivate workers.
 They are the image builders of the enterprise because they are in direct
contact with theworkers.

Classical theory of Management

1. Scientific Management
1. Development of Science for each part of men’s job
(replacement of rule ofthumb)
a. This principle suggests that work assigned to any employee should
be observed, analyzed with respect to each and every element and
part and time involved in it.
b. This means replacement of odd rule of thumb by the use of
method of enquiry, investigation, data collection, analysis and
framing of rules.
c. Under scientific management, decisions are made on the basis of
facts and by the application of scientific decisions.
2. Scientific Selection, Training & Development ofWorkers
a. There should be scientifically designed procedure for the selection of
workers.
b. Physical, mental & other requirement should be specified for each and
every job.
c. Workers should be selected & trained to make them fit for the job.
d. The management has to provide opportunities for development of
workers havingbetter capabilities.
e. According to Taylor efforts should be made to develop each employee
to hisgreatest level and efficiency & prosperity.
3. Co-operation between Management & workersor Harmony not discord
a. Taylor believed in co-operation and not individualism.
b. It is only through co-operation that the goals of the enterprise can
be achievedefficiently.
c. There should be no conflict between managers & workers.
d. Taylor believed that interest of employer & employees should
be fully harmonized so as to secure mutually understanding
relations between them.
4. Division of Responsibility

a. This principle determines the concrete nature of roles to be played

by differentlevel of managers & workers.
b. The management should assume the responsibility of planning the
work whereasworkers should be concerned with execution of task.
c. Thus planning is to be separated from execution.
5. Mental Revolution

a. The workers and managers should have a complete change of outlook

towards their mutual relation and work effort.
b. It requires that management should create suitable working condition
and solve all problems scientifically.
c. Similarly workers should attend their jobs with utmost attention,
devotion and carefulness. They should not waste the resources of
enterprise.
d. Handsome remuneration should be provided to workers to boost up their
moral.
e. It will create a sense of belongingness among worker.
f. They will be disciplined, loyal and sincere in fulfilling the task assigned to
them.
g. There will be more production and economical growth at a faster rate.
6. Maximum Prosperity for Employer & Employees

a. The aim of scientific management is to see maximum prosperity for

employer and employees.
b. It is important only when there is opportunity for each worker to
attain his highest efficiency.
c. Maximum output & optimum utilization of resources will bring
higher profits for the employer & better wages for the workers.
d. There should be maximum output in place of restricted output.
e. Both managers & workers should be paid handsomely.
Administrative Theory

In the last century, organizations already had to deal with management in practice. In
the early 1900s, large organizations, such as production factories, had to be
managed too. At the time there were only few (external) tools, models and methods
available. Thanks to scientists like Henri Fayol (1841-1925) the first foundations
were laid for modern management.

These first concepts, also called principles are the underlying factors for successful
management. Henri Fayol explored this comprehensively and, as a result, he
synthesized the 14 principles of management. Henri Fayol „s principles of
management and research were published in the book „General and Industrial
Management‟ (1916).

14 Principles of management

14 principles of management are statements that are based on a fundamental truth.

These principles serve as a guideline for decision-making and management actions.
They are drawn up by means of observations and analyses of events that managers
encounter in practice. Henri Fayol was able to synthesize 14 principles of
management after years of study, namely:

1. Division of Work In practice, employees are specialized in different areas and

they have different skills. Different levels of expertise can be distinguished within
the knowledge areas (from generalist to specialist). Personal and professional
developments support this. According to Henri Fayol specialization promotes
efficiency of the workforce and increases productivity. Inaddition, the specialization
of the workforce increases their accuracy and speed. This management principle of
the 14 principles of management is applicable to both technical and managerial
activities.
2. Authority and Responsibility In order to get things done in an organization,
management hasthe authority to give orders to the employees. Of course with this
authority comes responsibility. According to Henri Fayol, the accompanying power
or authority gives the management the right to give orders to the subordinates. The
responsibility can be traced back from performance and it is therefore necessary to
make agreements about this. In other words, authority and responsibility go together
and they are two sides of the same coin.

3. Discipline This third principle of the 14 principles of management is about

obedience. It is often a part of the core values of a mission and vision in the form of
good conduct and respectful interactions. This management principle is essential and
is seen as the oil to make the engine of an organization run smoothly.

4. Unity of Command The management principle „Unity of command‟ means that

an individual employee should receive orders from one manager and that the
employee is answerable to that manager. If tasks and related responsibilities are given
to the employee by more than one manager, this may lead to confusion which may
lead to possible conflicts for employees. By using this principle, the responsibility for
mistakes can be established more easily.

5. Unity of Direction This management principle of the 14 principles of management

is all about focus and unity. All employees deliver the same activities that can be
linked to the same objectives. All activities must be carried out by one group that
forms a team. These activities must be described in a plan of action. The manager is
ultimately responsible for this plan and he monitors the progress of the defined and
planned activities. Focus areas are the efforts made by the employees and
coordination.
6. Subordination of Individual Interest There are always all kinds of interests in
an organization. In order to have an organization function well, Henri Fayol indicated
that personal interests are subordinate to the interests of the organization (ethics). The
primary focus is on the organizational objectives and not on those of the individual.
This applies to all levels of the entire organization, including the managers.

7. Remuneration Motivation and productivity are close to one another as far as the
smooth running of an organization is concerned. This management principle of the 14
principles of management argues that the remuneration should be sufficient to keep
employees motivated and productive. There are two types of remuneration namely
non-monetary (a compliment, more responsibilities, credits) and monetary
(compensation, bonus or other financial compensation). Ultimately, it is about
rewarding the efforts that have been made.

8. The Degree of Centralization Management and authority for decision-making

process must be properly balanced in an organization. This depends on the volume
and size of an organization including its hierarchy. Centralization implies the
concentration of decision making authority at the top management (executive board).
Sharing of authorities for the decision-making process with lower levels (middle and
lower management), is referred to as decentralization by Fayol. Henri Fayol indicated
that an organization should strive for a good balance in this.

9. Scalar Chain Hierarchy presents itself in any given organization. This varies from
senior management (executive board) to the lowest levels in the organization. Henri
Fayol ‟s “hierarchy” management principle states that there should be a clear line in
the area of authority (from top to bottom and all managers at all levels). This can be
seen as a type of management structure. Each employee can contact a manager or a
superior in an emergency situation without challenging the hierarchy. Especially,
when it concerns reports about calamities to the immediatemanagers/superiors.

10. Order According to this principle of the 14 principles of management,

employees in an organization must have the right resources at their disposal so that
they can function properly in an organization. In addition to social order
(responsibility of the managers) the work environment must be safe, clean and tidy.

11. Equity The management principle of equity often occurs in the core values of an
organization. According to Henri Fayol, employees must be treated kindly and
equally. Employees must be in the right place in the organization to do things right.
Managers should supervise and monitor this process and they should treat employees
fairly and impartially.

12. Stability of Tenure of Personnel This management principle of the 14 principles

of management represents deployment and managing of personnel and this should be
in balance with the service that is provided from the organization. Management
strives to minimize employee turnover and to have the right staff in the right place.
Focus areas such as frequentchange of position and sufficient development must be
managed well.

13. Initiative Henri Fayol argued that with this management principle employees
should be allowed to express new ideas. This encourages interest and involvement
and creates added value for the company. Employee initiatives are a source of
strength for the organization according to Henri Fayol. This encourages the
employees to be involved and interested.

14. Esprit de Corps The management principle „esprit de corps‟ of the 14 principles
of management stands for striving for the involvement and unity of the employees.
 Managers are responsible for the development of morale in the workplace;
individually and in the area of communication. Esprit de corps contributes to the
development of the culture and creates an atmosphere of mutual trust and
understanding.

Max Weber bureaucratic theory

Principles of bureaucratic theory

1) Job specialization: – Jobs are divided into simple, routine and fixed category
based on competence and functional specialization.

2) Authority hierarchy: – Officers are organized in a n hierarchy in which higher

officer controls lower position holders i.e. superior controls subordinates and their
performance of subordinates and lower staff could be controlled.

3) Formal selection: – All organizational members are to be selected on the basis

of technical qualifications and competence demonstrated by training, education or
formal examination.

4) Formal rules and regulations: – To ensure uniformity and to regulate actions

of employees, managers must depend heavily upon formal organizational rules and
regulations. Thus, rules of law lead to impersonality in interpersonal relations.

5) Impersonality: – Rules and controls are applied uniformly, avoiding

involvement with personalities and preferences of employees. Nepotism and
favoritism are not preferred.
Limitations of bureaucratic theory

1) Informal relationship is not considered: – It does not consider the

informalrelationships between individuals working in the organizations.

2) Outdated system: – Its system of control and authority are outdated which
can‟t work in such a changed environment.

3) Inadequate means: – Bureaucratic theory does not possess adequate means

resolving differences and conflicts arising between functional groups.

Hawthorne Experiment/Elton Mayo contribution to

management:

In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the
Harvard Business School were invited to join in the studies at the Hawthorne Works
of Western Electric Company, Chicago. The experiment lasted up to 1932. The
Hawthorne Experiments brought out that the productivity of the employees is not the
function of only physical conditions of work and money wages paid to them.
Productivity of employees depends heavily upon the satisfaction of the employees in
their work situation. Mayo‟s idea was that logical factors were far less important
than emotional factors in determining productivity efficiency. Furthermore, of all the
human factors influencing employee behaviour, the most powerful were those
emanating from the worker‟s participation in social groups. Thus, Mayo concluded
that work arrangements in addition to meeting the objective requirements of
production must at the same time satisfy the employee‟s subjective requirement of
social satisfaction at his work place. The Hawthorne experiment consists of four
parts. These parts are briefly described below:-

1. Illumination Experiment.
 2. Relay Assembly Test Room Experiment.
3. Interviewing Programme.
4. Bank Wiring Test Room Experiment.

1. Illumination Experiment:

This experiment was conducted to establish relationship between output and

illumination. When the intensity of light was increased, the output also increased.
The output showed an upward trend even when the illumination was gradually
brought down to the normal level. Therefore, it was concluded that there is no
consistent relationship between output of workers and illumination in the factory.
There must be some other factor which affected productivity.

2. Relay Assembly Test Room Experiment:

This phase aimed at knowing not only the impact of illumination on production but
also other factors like length of the working day, rest hours, and other physical
conditions. In this experiment, a small homogeneous work-group of six girls was
constituted. These girls were friendly to each other and were asked to work in a very
informal atmosphere under the supervision of a researcher. Productivity and morale
increased considerably during the period of the experiment. Productivity went on
increasing and stabilized at a high level even when all the improvements were taken
away and the pre-test conditions were reintroduced. The researchers concluded that
socio-psychological factors such as feeling of being important, recognition, attention,
participation, cohesive work-group, and non-directive supervision held the key for
higher productivity.

3.Mass Interview Programme:

The objective of this programme was to make a systematic study of the employees‟
attitudes which would reveal the meaning which their “working situation” has for
them. The researchers interviewed a large number of workers with regard to their
opinions on work, working conditions and supervision. Initially, a direct approach
was used whereby interviews asked questions considered important by managers and
researchers. The researchers observed that the replies of the workmen were guarded.
Therefore, this approach was replaced by an indirect technique, where the interviewer
simply listened to what the workmen had to say. The findings confirmed the
importance of social factors at work in the total work environment.

4.Bank Wiring Test Room Experiment:

This experiment was conducted by Roethlisberger and Dickson with a view to

develop a new method of observation and obtaining more exact information about
social groups within a company and also finding out the causes which restrict output.
The experiment was conducted to study a group of workers under conditions which
were as close as possible to normal. This group comprised of 14 workers. After the
experiment, the production records of this group were compared with their earlier
production records. It was observed that the group evolved its own production norms
for each individual worker, which was made lower than those set by the management.
Because of this, workers would produce only that much, thereby defeating the
incentive system. Those workers who tried to produce more than the group norms
were isolated, harassed or punished by the group.

MODERN APPROACH

1. System Approach to Management: Features of Systems Approach:

(i) A system consists of interacting elements. It is set of inter-related and inter-

dependent parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter-relationships rather,
than in isolationfrom each other.
(iii) An organisational system has a boundary that determines which parts are
internal and which are external.
(iv) A system does not exist in a vacuum. It receives information, material and
energy from othersystems as inputs. These inputs undergo a transformation process
within a system and leave the system as output to other systems.

(v) An organisation is a dynamic system as it is responsive to its environment. It is

vulnerable to change in its environment.
Contingency Approach of Management A contingency approach to management is
based on the theory that management effectiveness is contingent, or dependent, upon
the interplay between the application of management behaviors and specific
situations. In other words, the way you manage should change depending on the
circumstances. One size does not fit all.

Features of Contingency Theory:

Management is situational in nature. The technique of management depends

on complexity of the situation.

Management principles are not universal in nature as there is no best

style of management. Management is situational and managerial actions
depend upon the environmental circumstances.
It helps in understanding the complex organisations as it focuses on
multivariate nature of organisations. It helps an organisation to operate under
different environmental conditions. Rather than having a specific solution to
solve problems, it provides a framework where every solution depends upon
the environmental conditions. Same problem can have different solutions at
different points of time and different problems can have same solution at the
same point of time.
It provides insight into organisation‟s adaptability to both internal and
external environment. It is a matter of fitting the internal environment to its
externalenvironment.