SPRINGBOARD ACADEMY 1

Management Notes

Management
Concepts

Modern Traditional

Management is a process of getting Management is the art of getting things

things done with the aim of achieving done through other people.
goals effectively and efficiently. Mary Parker Follett

❖ Characteristics of Management –
1. It’s a human activity.
2. It’s related to human organization.
3. It’s a creative activity.
4. It’s a universal activity.
5. It is based on established universal principles.
❖ Scope of Management -
➢ Production Management - Production should be according to demand of market.
➢ Marketing Management - Identify the needs of customer.
➢ Human Resources Management - Recruitment and Selection, Training and Development of
Personnel.
➢ Financial Management - To decides sources of finance, receipt of finance and investment.
➢ Management of Purchase - To decide quality and characteristics of raw material, time delivery,
sources of supply of raw material.
➢ Office Management - To collect the info, filing, public relation, categorical of info.
❖ According to Activity –
1. Management of Work - Planning, Organizing, Controlling

2. Management of People – Staffing, Directing

3. Management of Operation – Production, Sales, Purchases

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Management Notes

Importance of Management

1. Management helps in achieving organizational goals through individual efforts.

2. Management improves the efficiency.
3. Management creates a dynamic organization to survive in a dynamic environment.
4. Management helps in achieving personal objective.
5. Management helps in development in society.
6. Management brings harmony/co-ordination in work.
❖ Levels of Management –
Top Level Management Middle Level Management Lower Level Management
Board of Directors, Chairman, Sales Manager, Purchase Supervisor, Forman, Section
GM, President, CEO Manager, Marketing Manager, Officer, Clerk
Department Head, Plant
Superintendent
➢ Top Level Management Function –
1. Determining objectives of organization.
2. Framing plans and policies.
3. Organizational Activities.
4. Assembling Resources.
5. Performance Appraisal.
6. Relationship with outside world.
7. Survival of Organization.
➢ Middle Level Management Function -
1. Interpretation of Policies.
2. Recruitment and Selection of Employs.
3. To motivate employs for their best performance.
4. Controlling and Directing employs.
➢ Lower Level Management Function
1. To find out grievances of employs.
2. To provide good working conditions.

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Management Notes

3. To ensure safety of workers.

4. Welcoming suggestions of the workers.
5. To maintain quality of production.

Function of Management
There are 6 Functions of Management -
1. Planning, 2. Organization, 3. Staffing, 4. Directing, 5. Coordination, 6. Control
1. Planning :-

➢ Planning is deciding in advance What to do, how to do and who is to do it.

➢ Planning bridges the gap from where we are to where we want to go.

➢ Theo Haimann’s - Setting objectives for a given time period, formulating various courses of
action to achieve them and then selecting the best possible alternative from the different courses of
action is planning.
❖ Characteristics / Features of Planning -
1. Planning is a process.
2. Planning is a continuous process.
3. Planning is a spread on all levels of organization.
4. Planning is a dynamic process.
5. Planning is a fundamental function of Management.
6. Planning is a futuristic activity.
7. Planning is a mental exercise.

❖ Importance of Planning -

1. Planning provides direction to organization.

2. Planning reduces risk of uncertainty.
3. Planning reduces overlapping and extravagant activities.
4. Planning facilitates decision making.
5. Planning establishes standard for controlling.
6. Planning establishes co-ordination in organization.
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Management Notes

❖ Steps of Planning Process –

Set the goal / Setting up of the objectives.

Developing premises / assumptions for casting.

Listing the various alternative for achieving the objective.

Evaluation of different alternatives.

Selecting an alternative.

Implementation of Plan.

Follow up Plan.

❖ Type of Planning –
1. Standing Plans – These plans focus on situation which occur repeatedly standing plans are used
over and over again.
➢ Policies - Policy is a general direction to a particular problem and policy acts as a guide to take
decision.
➢ Procedures - Procedure can be defined as the exact manner in which an activity has to be
accomplished.
➢ Rules - Rules spell out special actions or known action of the employs. Rules create the
environment of discipline in the organization.
2. Single Use Plan – Single use plans are one time use plan. These are designed to achieve particular
goal that one’s achieved will not re-occur in future.
➢ Program –
i. The programs are made to get a systematic working in the organization.
ii. The programs create relations among policies, procedures and goals.
➢ Projects – It is related to action which accomplish the plan whole part.
➢ Budget - Budget is the statement of expected result expressed in numerical terms.
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Management Notes

❖ Strategy -
1. It is a comprehensive plan to achieve the organizational objective.
(i) Determining long – term objectives.
(ii) Adopting particular course of action.
(iii) Allocation of resources for achieving the objectives.
❖ Method - Methods can be defined as a formulized or systematic way of doing routine or repetitive jobs.

Organisation
❖ Meaning of Organization -

➢ Mooney Railey – Organisation is the form of every human association for the attainment
of a common purpose.
➢ Chester Barnard - A system of consciously coordinated activities of more than two person
is called organization.
➢ Henry - To organize a business is to provide it with everything useful for its functioning.
➢ For Example - Raw Material, Machine and Tools, Capital and Personal

❖ Organization Includes -
1. Work Division
2. Definite Objective
3. Inclusion of more than 1 people.
4. Component of Management.

❖ Importance of Organization
1. Benefits in Specialization
2. Clarity in working relationship.
3. Ensures optimum utilization of resources.
4. Facilities adoption to change.
5. Tool for effective management.

❖ 4 Steps of Organization Process –

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Management Notes

1. Identification and division of work.

2. Departmentalization.
3. Assignment of Duties.
4. Establish reporting relationships.

❖ Organizational Structure - "A network of job positions, responsibilities and authority at

different levels of organisation.
Organisational Structure

Functional Structure Divisional Structure

1. Functional Structure - When activities are grouped keeping in mind the functions then it is
called functional structure.

Company

Production Marketing

Processing Advertising
Quality Control Sales
Repair Maintenance Customer Service
Research

❖ Advantages of Functional Structure –

1. Specialization
2. Easy Supervision
3. Easy Co-ordination
4. Helps in increasing managerial efficiency.
5. It helps in effective training.

❖ Disadvantages of Functional Structure

1. Difficulty in achieving organizational goal.

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Management Notes

2. Departmental head’s attitude.

3. Difficult to fix accountability.
4. Inflexibility.
5. Its Suitability – In large organization where only one line of products are produced.
2. Divisional Structure - When in a large organization, one or more type of products are
produced, activities related to one product are grouped under one department.

Company

Textiles Department Cosmetics Department

Production Production
Purchase Purchase
Marketing Marketing
Finance Finance

❖ Advantages of Divisional Structure –

1. Advantages
2. Product Specialization
3. Fast decision making.
4. Accountability
5. Flexibility

❖ Disadvantages of Divisional Structure –

1. More resources required
2. Product focus department.
3. Conflict.
4. Suitability –
i. Multi Products, different lines of product.
ii. Large Scale production organization.

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Management Notes

❖ Types of Organization
➢ Formal Organization –
1. Chester Bernard
2. When the activities of two or more persons are deliberately linked together to achieve
the same purpose.
3. The structure is created intentionally by the managers for achievement of organization
goal.
❖ Characteristics of Formal Organization
1. Based on work division.
2. It is established intentionally.
3. It has well defined relationships
4. Based on rules and procedures.
5. It is impersonalized.
❖ Advantages of Formal Organization
1. Stability in Organization
2. Goals can be achieved easily.
3. No repetition in work.
4. Unity of command is possible
5. Easy to decide responsibility.
❖ Limitations
1. Development of rigidity in organization
2. While following chain of command actions get delayed.
3. It reduces employee’s initiative capacity.
4. Mechanization of Relations.
5. Ignores social needs of employees.
❖ Informal Organization - The informal organizational structure gets created automatically and
the main purpose of such a structure is getting psychological satisfaction.
❖ Characteristics of Informal Organization
1. It gets create automatically.
2. It is formed by the employees to get psychological needs.
3. It does not have written set rules and regulations.
4. It consist of series of independent communication
5. It exists in formal organization.
❖ Advantage of Informal Organization
1. Effective and Fast Communication.

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Management Notes

2. Provide emotional and social satisfaction.

3. Fulfill social needs.
4. Helps to fulfill organizational objectives.
5. It supplements formal organization.

❖ Disadvantages of Informal Organization

1. It spreads rumors.
2. It is temporary.
3. Objection of change.
4. It is may bring negative effect on productivity.
5. It promotes bargaining and negotiations
Basis Formal Organization Informal Organization
Formation It is formed deliberately. It gets created automatically.
Behavior of Employees behavior is decided There is no control of managers
Members by the Manager. over the behavior of
employees.
Purpose Achieving organizational goal. To get psychological
satisfaction.
Structure There is well defined No defined structure.
organizational structure.
Communication All the information passes No fix path of passing of
through scalar chain. information.
Leadership Direct relation between the No relationship between
authority and leadership. authority and leadership.
Stability More Stable Not Stable
Rules and Strictly have to follow the rules No rules and regulations.
Regulations and regulations.
Interdependence It is an Independent Depends on formal
organization.

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Management Notes

Staffing
➢ Staffing consists of manpower, planning, recruitment, selection, training, compensation,
promotion and maintenance of managerial personnel.

❖ Three Components of Staffing - 1. Recruitment, 2. Selection, 3. Training

❖ Steps of Staffing –
1. Estimation of requirement of manpower
2. Recruitment
3. Selection
4. Placement and Orientation
5. Training and development skills.
6. Performance Appraisal
7. Promotion

❖ Characteristics of Steps
1. It is a continues process.
2. It is pervasive at every stage.
3. It is related to humans.
4. It is influenced by internal and external environment.
5. It is a managerial function.

❖ Importance of Steps
1. It is helpful in searching and selecting eligible personnel.
2. It is helpful in high work execution.
3. Useful for long duration run for the organization.
4. It is helpful in optimum utilization of personnel.
5. It is helpful for job satisfaction and morale.

Direction
➢ Direction as a function of management is concerned with instructing, guiding, inspiring, sub-
ordinate in organization to achieve its objective effectively and efficiently.

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Management Notes

❖ Features of Direction –
1. It is a continues process.
2. It is a pervasive at all levels.
3. Flow of direction is from top to bottom.
4. It has remedial activities
5. It includes communication, supervision, motivation and leadership.

❖ Importance of Direction
1. It provides governance and mobility to organization
2. To integrate employee's efforts
3. It is a medium of motivation.
4. It facilitates implementation of change.
5. It ensures balance in organization.

❖ Elements of Direction
1. Supervision :- It means instructing, guiding, monitoring and observing the employees
performance.
2. Communication :- Exchange of ideas, views, message, information or instruction between
two or more person by difference means.
3. Motivation :- Can be defined as Stimulating inspiring and inducing employees to perform
to the best of their capabilities.
4. Leadership :- Is a process of influencing the behavior of employees to achieve the goal.

Controlling
➢ Controlling function can be defined as a comparison of actual performance with the planned
performance.

➢ Controlling is a process which determining that performance take place according to plan.
➢ Aspect of Control –
➢ On the basis of aspect of control – 1. Strategical Control, 2. Operational Control
❖ Features of Controlling
1. It is a continues process.

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Management Notes

2. It is pervasive at all levels.

3. It is the fundamental function of management
4. Controlling is a goal oriented function.
5. It is related to achievement of objectives
6. It is related to past performance.

❖ Importance of Control
1. It is helpful in achieving organizational goal.
2. It judges accuracy of standards.
3. It ensures efficient use of resources.
4. It establishes order and discipline.
5. It facilitates co-ordination in action.

❖ Controlling Process
1. Determining standards of work to be performed.
2. Measuring Performance.
3. Comparing performance with standards.
4. Analysis of deviation.
5. Corrective Actions.

❖ Relationship between Planning and Controlling – Planning and Controlling are

inter dependent and inter linked so that planning and controlling cannot be separated. These
two aspects are supplementary function which support each other for successful
implementation of their functions. So planning is forward looking and control is backward
looking.

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Management Notes

Co-Ordination
❖ Co – Ordination:- Co-ordination means bringing together the activities resources of
organization and bringing harmony in them.
❖ Elements of Co-ordination – 1. Integration, 2. Balancing, 3. Timing
❖ Seckler Hudson - Co-ordination is the vital activity of establishing synergy between the
various parts of the work.
❖ Aspects of Co-ordination - 1. Negative Aspect, 2. Positive Aspect

❖ Characteristics of Co-Ordination –
1. It is continuing process.
2. It is a pervasive function of management.
3. It is a fundamental function of management.
4. Co-ordination integrate group efforts not single.
5. Co-ordination emphasizes on unifying the efforts of different individuals.
6. It is necessary both in the internal and external environment of the organization.

❖ Types of Co-ordination –
➢ According to Environment
1. Internal Co-ordination - It deals with coordinating the individual activities of persons
working in organization.
2. External Co-ordination - It deals with coordinating the activities of various
organizational units.
❖ According to Paul H. Appleby –
1. Vertical / Perpendicular - It deals with co-ordination between an official and his employee
(superior to subordinate).
2. Horizontal Co-ordination - It deals with the co-ordination between one section and
another, one branch and another.

❖ Major Techniques of Co-ordination –

1. Planning
2. Hierarchy
3. Conference and Symposium

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Management Notes

4. Counselling Interdepartmental Meeting

5. Supervision
6. Standardization of Procedures
7. Direction and Control

❖ Mac-Farland outlines four coordination Techniques

1. Clarifying authority and responsibility
2. Supervision and observation
3. Effective Communication
4. Coordination through leadership

❖ Hindrances / Hurdles
1. Uncertainty of the future behavior of individuals and groups
2. Lack of Managerial skills and techniques
3. Lack of knowledge.
4. Ambiguity of ideas and objectives.
5. Increasing size and complexity of organization.

❖ Importance of Coordination –
1. Coordination establishes integration into various activities of the organization.
2. Congenial environment established through coordination.
3. To avoid conflicts and duplication of work.
4. It eliminates ambiguity and conflict in organization
5. It prevents the tendency of empire building.
6. Coordination ensures maximum benefit of various effort
7. In ranger organization and increasing working complexity does not run organization
without coordination?

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Management Notes

Recruitment

❖ Recruitment - Recruitment means attracting more and more candidates to apply for vacant
job in organization

❖ It means recruitment –
1. It is important process of organization, about H.R.M and staffing.
2. To attract qualified and suitable candidates.
3. It emphasis on advertise and qualification.
4. Determination of Qualification through competitive exam.

❖ Aspects of Recruitment –
1. Negative Recruitment - It aims at eliminating those who are neither qualified nor suitable
for the job.
2. Positive Recruitment - It aims at filling the vacant posts with the best qualified and most
competent person.

❖ Methods of Recruitment
1. Direct Recruitment - It means filling up vacant posts in the organization by suitable and
qualified candidates from open market (outside the organization).
2. Indirect Recruitment - It means filling up vacant – post in the organization by suitable
candidates from inside the organization.

❖ Advantage of Direct Recruitment –

1. It has wider scope of choice.
2. It’s a democratic methods of recruitment.
3. It supports to the principle of equal opportunity.
4. It supports merit principle.
5. It’s provide new talented personnel
6. It brings in new blood with new ideas, freshness of out look.

❖ Disadvantage of Direct Recruitument –

1. Selection and appointment of inexperienced personnel.
2. It costs more on training

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Management Notes

3. It is more expensive (Time, Money).

4. It is complicated recruitment methods.
5. It increases the burden on recruitment agencies.
6. It demoralizes old employees.

❖ Advantage of Indirect Recruitment

1. It is Economical, time and money saving process
2. Less amount is spent on training.
3. It motivates the existing employees
4. We gets experience employees.
5. It is easier than direct recruitment procedure.
6. It gives the chance for carrier development.

❖ Disadvantages of Indirect Recruitment

1. There are limited choice area
2. It is non-democratic methods.
3. It is against the principle of equal opportunity
4. It is against merit principle
5. Many time gets unskilled employee through promotion.
6. It does not bring new blood with new ideas.

❖ Selection - Selection can be defined as discovering most promising and most suitable
candidate to fill up the vacant job position in the organization.

❖ Selection Process –
1. Preliminary Screening
2. Selection Test
i. Intelligence Test
ii. Aptitude Test
iii. Personality Test
iv. Trade Test
v. Interest Test

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Management Notes

3. Employment Interview
4. Checking the reference and background
5. Selection Decision
6. Medical Examine
7. Job Offering
8. Contract

❖ Elements of Good Selection Policy

1. It should be according to organizational policy.
2. It should be simple, clarity and justify.
3. It should not be rigid but change over time
4. It should be free from bias.
5. Selection should be done by selection board and not by one person.
6. Qualification should be clearly mentioned in the selection policy.
❖ Difference in Recruitment and Selection
Recruitment Selection
It is process of contract between employer It is process of find out the suitable
and employee. candidates.
It is simple process. It is complicated process.
It is positive process. It is negative and positive process.
It is pre process of selection. It is a post process of recruitment

❖ Induction
➢ Induction is a process of receiving and welcoming an employee when he first joins the
company and giving him the basic information about company. He needs to settle down.

➢ The purpose of this program is to make the new employee feel at home and develop to
feeling of belongingness.

➢ Induction is a process of receiving and welcoming an employee when he first joins the
company and giving him the basic information about company. He needs to settle down.
➢ The purpose of this program is to make the new employee feel at home and develop to
feeling of belongingness.

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Management Notes

Training
❖ Training – The process of developing skills, habits, knowledge and attitudes in employee for
the purpose of increasing the effectiveness of employees.
❖ Features of Training –
1. It is process of getting knowledge.
2. It develops special qualities.
3. It develops an aptitude for doing a particular task.
4. It develops working ability and skills.
5. It is a means of development.

❖ Types of Training –
➢ Formal Training - Formal training is imported in an orderly manner through prearranged
and well defined courses under expert guidance and supervision.
➢ Informal Training - "Informal training means learning by actually working under the
guidance of senior officers.” Example - Learn from the surrounding environment, There is
no syllabus or rules procedure.

Methods of Training

On the Job Training Off the Job Training

1. On the Job Training - Under this method employees are trained while they are performing
the job. Under this methods the employees learn by doing.
➢ Apprenticeship - A trainer is appointed who guides the worker regarding the skill of job.
➢ Job Rotation - The employee is shifted from one job position to other short interval of time.
➢ Internship - The students /employees get chance to practice under the real work situation.
2. Off the Job Training - Off the job training means training the employees by taking them
away from their work position (employees are given a break from this job).
➢ Methods –
1. Conference - It is a highly structured way to convey a message.
2. Vestibule - Employees are trained dummy (duplicate model of organization).

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Management Notes

3. Films –
4. Computer Modelling – A problem is solved through a computer.
5. Case Study – Case study helps trainees to decision under real work situation
➢ Others –
1. Pre-entry training
➢ Training which is necessary before any job / service.
➢ MBBS (Doctor)
➢ B.Ed. (Teacher)
2. Post Entry Training
➢ After the selection, trainings are give to candidates Like RAS /IAS / RPS.
➢ Importance / Necessity / Usefulness of training

1. Modifying attitudes of employees.

2. Introduce problems.
3. Provide information about the organization.
4. To increase the morale and productivity of the personnel.
5. Adaptability for change.
❖ Difference between Training and Development
Training Development
It is concerned with technical skill. It is concerned with concept of
development and skill.
It is short term process. Long term process.
It’s scope narrow. It’s scope wider.
It is concerned with skill and capacity. It is concerned with personality
development.
Training focuses on present requirement Development focuses on present as well
of the organization. as future requirements.
❖ Performance Appraisal System –
➢ The performance appraisal system, comparative analysis of the performance goals
expected by the organization, the performance capabilities of the employee and the actual
performance of the employee.
➢ Based on the performance appraisal system, important – decisions like increase in salary,
promotion, change in service conditions, training and other policy changes are taken.
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Management Notes

❖ Three Main Purpose

1. Reward Review Component
2. Performance Review Component.
3. Potential Review Component.
✓ Training will be given if you do not perform to the best of your ability.
✓ The purpose of this review is to look for aptitude for future work.

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Management Notes

Communication

❖ Communication :- Communication is a process of exchange of views, ideas, messages,

instructions etc. between two or more person by different means.

❖ Importance of Communication
1. Establishes effective leadership
2. Helps in proceeds of motivation and morale development.
3. Helps in smooth working.
4. Increases managerial efficiency.
5. Acts as basis for decision making.

❖ Kinds of Communication
A. Formal Communication - When communication is done on the basis of procedures and
rules laid down in the organization.
➢ Kinds of Formal Organization
1. Chain Network (Pattern) - Each person gets the information from one person that
is their immediate boss and passes the information to one person who is their
immediate sub-ordinate.

2. Star Network / Wheel Pattern - Most centralized way of communication,

information flows from on leader and member and no link each other.

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Management Notes

3. Circle Network - In this pattern, each person communicate with two more person.

4. All Channel Network / pattern - In this pattern there is no fixed pattern of

communication all the members in the organization are linked to each other and
anywhere in the organization. It is most decentralized organization.

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Management Notes

B. Informal Communication - Communication between the individuals or groups which is

not officially recognized is known as informal communication.
➢ Kinds of Informal Organization (Patterns)
1. Single Strained Network – In this pattern each individual communicates to the
other in sequence.

2. Gossip Network - It means information is with one member of organization and

he shares the information with many other people.

3. Probability Network - In this network the individual communicates randomly with

other individuals.

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Management Notes

4. Cluster Network - Under this pattern the information is shared between two person
from that group passes the information to members to other group and one person.

➢ Grape Vine -
• It is informal communication.
• There is not direction and sequetion.
• The origin and direction of flow of
information can not be known.

❖ Barriers to Effective Communication

1. Semantic Barriers –
➢ Badly expressed message
➢ Symbols with different meanings.

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Management Notes

➢ Faulty Translations
➢ Unclarified Assumptions
➢ Technical Jargon
❖ Psychological Barriers
1. Premature Evaluation - Conclusion before completion of message.
2. Lack of Attention.
3. Loss by Transmission and Poor Retention
4. Distrust
❖ Organizational Barriers :-

• Organizational Policy
• Rules and Regulation
• Status Difference
• Complex of Organization
• Organizational Facilities
❖ Improving Communication Effectiveness

• Clarify the idea before communication.

• Communication according to need of the receiver.
• Consult others before communicating.
• Use of Proper language, tone and contents of message.
• Communication for the present as well as for future.
• Follow up Communication.

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Management Notes

Motivation
❖ Motivation - Motivation means inducing people to perform to their best ability for
achievement of organizational goal it is a driving force that propels people to action and
continues them in action.

❖ Process of Motivation –

Unsatisfied / Need →
Tension Drive

Search / Behavior / Goal →

Satisfied Reduction Tension

❖ Importance of Motivation
1. Motivation helps change negative attitude to positive attitude.
2. Motivation improves performance level of employee
3. Helps in achieving the organizational goal.
4. Motivation creates supportive work Environment.
5. Motivation helps the managers to introduce changes

❖ Types of Motivation –
1. Base of Incentives - Positive Motivation , Negative Motivation
2. Based on Currency - Monetary / Financial , Non Monetary

❖ Theories of Motivation –
(i) Traditional Theories –
1. Fear and Punishment Theory
2. Reward Theory
3. Carrot and Stick Theory
(ii) Modern Theories –
1. X-Y Theory
2. Needs Hierarchy Theory
3. Two Factor Theory
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Management Notes

(i) Traditional Theories –

1. Fear and Punishment Theory – This theory says that employees work only because of
fear of Punishment.
2. Reward Theory – This theory is based on the belief that the personnel will continue to
work as long as he gets an equal amount of benefits in return for his work
3. Carrot and Stick Theory - This theory is based on the reward and punishment are
given according to personal's productivity
(ii) Modern Theories –
1. X – Y Theory – (Dugles Macger)
✓ It is related to classical theory of management.
✓ Instructional Management
✓ Work Oriented
(a) X- (Assumption)
1. On an average person have no interest in work.
2. He tried to avoid work.
3. He does indifference behavior.
4. He is much less ambitious.
5. He is anti change and self centered.
6. He likes to be directed and guided by others.
(b) Y – Theory –
1. It is related to behavioral and participative management theory
2. This is a work and human centered theory
3. Physical and mental effort in work is an natural as playing and resting.

4. He wants to do work and he has initiative capacity.

5. Self Directed
6. Committed with work.
7. He likes to take responsibility.

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Management Notes

2. Needs Hierarchy Theory (Maslow's) –

➢ Essay 1943 – "A theory of Human Motivation."
➢ Maslow’s assumption that man builds the organization to full fill his needs.
➢ According to Maslow man have five basic needs

3. Two Factor Theory (Herzberg) - Based on the findings of his research, Herzberg two
factors that affect a person’s ability to work.
Hygiene Factors Motive Factors
It is related to external environment of It is related to contents of work.
work.
Their presence reduces dissatisfaction Their presences provide satisfaction.
Policies and Administration Management Achievement
Supervision Recognition
Working Conditions Advancement
Inter personal relation Responsibility
Status Growth and Development
Wages Work Itself
Security Challenging Work

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Management Notes

Leadership

❖ Leadership – "Leadership is the process of influencing the behavior of people at work towards
the achievement of specified goal."

❖ Characteristics of leadership –
1. Ability of an individual to influence.
2. Leadership tries to bring change in behavior.
3. Inter personal relationship between leader and followers.
4. Leadership is to achieve common goal.
5. Leadership is a continuous process.
❖ Difference between Managership and Leadership
Manager Leader
A manager is always a leader because, he Leader may not be a manager because the
has to influence the behavior of people who are leading informal groups
subordinates. are not always manager.
Manager have a formal authority. Leader have informal authority. The only
authority of trust and faith.
Manager have impersonal view about goal. Leader have personal view about goal.
A manager performs all the functions – Leader performs only one function –
planning direction. directing, motivation, communication,
induction.
A manager exists only in formal A leader may exist in formal as well as
organization. informal organization.

❖ Styles of Leadership - Leadership style refer to a leader’s behavioral pattern.

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Management Notes

1. Autocratic or Authoritative Leadership –

➢ He does not delegate authority.
➢ No any consulting.

❖ Advantages –
1. Quick decision making.
2. Provides strong motivation and satisfaction to the
subordinates.
3. May bring positive result.
❖ Disadvantages -
1. Frustration and low morale.
2. Initiative level of subordinates goes down.
2. Democrative or Participative Leadership
➢ Leader takes decisions in consultation and participation with employees.
➢ He delegates and decentralizes the authority.
❖ Advantages -
➢ Improves the job satisfaction and moral of the employees.
➢ Improves decision making ability of subordinates.
❖ Disadvantages -
1. Time – Consuming process.
2. Leader may pass the work to subordinates and abdicate responsibility.
❖ Suitability – Job Satisfaction.
3. Free – rein or Laissez Faire Leadership - Complete delegation of authority so that
subordinates themselves take decision. In this style leader avoids power.
❖ Advantages –
1. Positive effect on the job satisfaction and morale of subordinates.
2. Maximum scope for development of subordinates.
❖ Disadvantages –
1. It ignores the contribution of leader.
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Management Notes

2. Subordinates may work in different direction and result in chaos.

❖ Suitability - Subordinates are well trained and highly knowledgeable.
❖ Qualities of Good Leader –
1. Physical Qualities
2. Knowledge, Intelligence
3. Integrity and Honesty
4. Self Confidence and sense of Responsibility
5. Initiative
6. Motivation Skill
7. Decisiveness
❖ Theories of Leadership –
A. Traditional Theory –
1. The Great Man Theory – This theory believes that leaders are born not mode and
leader is a leader. Because he is great man, followers are interested only in leader’s not
interested in his performance/work.
2. The Trait Theory - This theory says that a person becomes a leader because of the traits
possessed by him. It is concerned with identifying the personality traits of leaders.
B. Behavioral Theory –
Ohio State University Studies

Initiative Structure Consideration

➢ Initiative Structure - In this theory, leader interest to make structure and to achieve
goal through work division and leader expects to achieve goal according to standard.
In this theory, leader interest to make structure and to achieve goal through work
division and leader expects to achieve goal according to standard.
➢ Consideration - Leader emphasis on consideration to subordinate. He exchange
information to subordinate. Leader takes care of subordinate like status, wellbeing,
satisfaction and comfort and he helps in personal problem of subordinate.

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Management Notes

Michigan University Studies

Employee Oriented Production Oriented

Leadership Leadership

➢ Employee Oriented Leadership - The leader consider the subordinates human beings not
machine tools and aware of their joys and sorrows. He motivate to achieve the goal
emphasis on interpersonal relation.
➢ Production Oriented Leadership - Leader considers worker as a tool of production and
uses hard supervision policy and focuses on maintaining level of production.
❖ Other
➢ Contingency Theory - This theory believes that the leadership in influenced by situational
variables and thus differs from situation to situation.
➢ Leadership effectiveness depends upon three elements.
1. Leader – Member relationship
2. The work structure
3. The leader’s position.
4. When these element are favorable, leadership will be effective and when these are
adverse that leadership ineffectiveness.

DECISION – MAKING
❖ Decision – Making :- “The selection of one feasible alternative from two or more possible
alternatives.”
❖ Decision – Making Process –
Determine the Problem

Information gathering about background of problems.

Principles for judging the alternatives.

Brainstorm and analyze the different choice.

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Management Notes

Evolution of Alternative.

Select the Best Alternatives.

Execute the decision.

Evaluates the results.

❖ Type of Decisions –
1. Programmed And Non-Programmed Decisions –
➢ Programmed decisions related to day–to–day tasks and have a definite process.
➢ Non – Programmed decisions
➢ These are the decisions that have to be made due to the origin of a particular situation,
they do not have a definite process.
2. Personal and Organizational Decisions –
➢ Personal decision are those which an officer takes in his personal position, there is
neither interference nor delegation in these decisions.
➢ Organizational decisions are those which and officer takes in his official capacity.
3. Planned and Non-planned Decision –
➢ Planned :- These decisions are based on facts and a scientific method of decision
making.
➢ Non Planned :- This decision find out the complication and lack of coordination.
Decision are taken on occasion.
4. Policy, Administrative and Executive –

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Management Notes

5. Individual and Collective Decision –

➢ Individual decisions are those which made by individual.
➢ Group decision are those which made by group.
6. Generic And Unique Decision
➢ Generic decision are repetive and routine and broader nature.
➢ Unique decision are instantaneous.
❖ Stages of decision according to Simon –
1. Intelligence Activity :-
i. Find out the problem

ii. To collect facts and Informations

2. Design Activity :-
i. Consists of inventing developing and analysing possible course of action.
3. Choice Activity :-
i. In involves selecting a particular course of action from the given alternatives.
❖ Models of Decision Making –
1. Social Man Model –
➢ Three Type of Models According Human Behavior
➢ There is decision base on individual interest attached with emotion and values.
➢ In this, the person is not influenced by rationality, only the willful decisions.
2. Economic Man Model –
➢ It emphasizes the complete rationality of the human being and tries to achieve
maximum benefit or utility in a human / human orderly manner.
3. Administrative Men Model -
➢ It is a medium decision process in which a person is neither completely rational nor
completely emotional, but he chooses a just decision based on a bounded rationality.

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Management Notes

❖ Incremental Model –
➢ The decision makers always continue the existing programmes and policies with some
additions and modification they focuses only on incremental decision rather than a
detailed evaluation of all options.
➢ Mix Scanning Model – Amiti Etzioni
➢ It is intermediate model that combines the elements of both rational comprehensive model
and incremental model. It hat rationality, pragmatism, values and fact and circumstances.
❖ Decision making Techniques –
1. Delphi Techniques –
➢ It consists of a panel of experts related to problem solving.
➢ On the other side there is a coordinator who sends a series of questions related to the
problem to the experts.
➢ Experts send their answers.
➢ The coordinators collect those answers and send them back to the experts, so that the
experts have a wider choice.
➢ Then the experts send their answers.
➢ The coordinator then collects and resend the options.
➢ This process continues until a common option is reached.
2. Brain Storming -
➢ Consists of a panel of experts related to problem solving.
➢ It is a process of cooperation.
➢ In this, the decision maker generates a storm in his brain and presents a group of
options related to the solution of the problem.
➢ Thus all the members' choices are collected and evaluated and a feasible / problem
solving option is selected.

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Management Notes

Marketing

➢ Marketing is a social process by which individuals and group obtain what they need and want
through creating, offering and freely exchange products and service of value with others.
➢ Marketing is a process by which the marketer attempt to match products or services with
customer needs with the purpose of satisfying them at a profit.
❖ Various Concept of Marketing -
1. Production Concept
➢ Main Focus – Quantity of Product
➢ Means – Availability and Affordability of Product
➢ Ends – Profit through large volume of production.
2. Product Concept
➢ Quality of product, improvement of quality and profit through quality of product.
3. Selling Concept
➢ Selling and promoting, profit through sales volume.
4. The Marketing Concept
➢ Customer Satisfaction
➢ Profit through customer satisfaction
5. Societal Marketing Concept
➢ Customer satisfaction within ethical and traditional boundaries of our society profit
through customer satisfaction and welfare.
❖ Marketing Mix - Marketing mix is the term used to describe the combination of the four
inputs which constitute the core of a company’s marketing system, the product, the price
structure, the promotional activities and the distribution system.
❖ Product Mix –
➢ The product mix refers to important decisions related to the product such as quality of
product, design of product, packing of product. The variants of product mix are product
line, width, depth, length and consistency.
➢ Two types of Product –
1. Bread, Ice Cream (Convention Product)
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Management Notes

2. Car, Furniture (Shopping Production)

i. Branding
ii. Trade Mark
iii. Packaging
iv. Labeling
❖ Price Mix - Price mix refers to important decisions related to fixing of price of a commodity.
❖ Price Determination –
1. Pricing Objectives – A firm with profit maximization objective prefers high price and firm
with sales maximization prefers to fix the low price of the product.
2. Product Cost –
➢ The price of the product must cover the fixed as well as the variable cost of the product.
➢ Extent of Competition in the Market - When firms have to face high competition then
generally low price is fixed in case of less competition price can be high.
➢ Customer’s demand and utility - The products with elastic demand are priced low and
products with inelastic demands are priced high.
➢ Government and Legal Regulation
➢ Marketing Methods Used.
❖ Place Mix –
➢ It refers to important decisions related to physical distribution of good and services, these
decisions are deciding the channel of distribution.
➢ Place mix include (i) Channels of distribution (ii) Physical Movement of Goods.
❖ Physical Distribution –
1. Order Processing
2. Transportation
3. Warehousing
4. Inventory - It refers to maintenance of stock of goods.

❖ Promotion Mix - Promotion refers to all the activities which are undertaken to communicate
with the customer and enhance the sale of product or service.
❖ Communication tools are –

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Management Notes

1. Advertising
2. Sales Promotion –
i. Rebate
ii. Discounts
iii. Refunds
iv. Gifts
v. Lucky Draw
3. Personal Selling –
➢ Face to face interaction –
➢ Features –
1. Personal Interaction
2. Two way Communication
3. Better Response
4. Public Relation –
4. Methods of Public Relations –
i. News
ii. Speeches
iii. Events
iv. Written Materials

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