1. Management in business and organizations is the function that coordinates the efforts of people
to accomplish goals and objectives using available resources efficiently and effectively.
Management comprises planning, organizing, staffing, leading or directing, and controlling an
organization or initiative to accomplish a goal. Resourcing encompasses the deployment and
manipulation of human resources, financial resources, technological resources, and natural
resources. Management is also an academic discipline, a social science whose object of study is
the social organization.
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There are five basic function of management.
As follows:
i)Planning
ii)Organizing
iii)Staffing
iv)Coordinating
v)Controlling
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3. ** Planning
The planning function of management controls all the planning that allows the organization to run smoothly.
Planning involves defining a goal and determining the most effective course of action needed to reach that
goal. Typically, planning involves flexibility, as the planner must coordinate with all levels of management and
leadership in the organization. Planning also involves knowledge of the company’s resources and the future
objectives of the business.
* Organizing
The organizing function of leadership controls the overall structure of the company. The organizational
structure is the foundation of a company; without this structure, the day-to-day operation of the business
becomes difficult and unsuccessful. Organizing involves designating tasks and responsibilities to employees
with the specific skill sets needed to complete the tasks. Organizing also involves developing the
organizational structure and chain of command within the company.
* Staffing
The staffing function of management controls all recruitment and personnel needs of the organization. The
main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the
organization. Staffing involves more than just recruitment; staffing also encompasses training and
development, performance appraisals, promotions and transfers. Without the staffing function, the business
would fail because the business would not be properly staffed to meet its goals.
* Coordinating
The coordinating function of leadership controls all the organizing, planning and staffing activities of the
company and ensures all activities function together for the good of the organization. Coordinating typically
takes place in meetings and other planning sessions with the department heads of the company to ensure all
departments are on the same page in terms of objectives and goals. Coordinating involves communication,
supervision and direction by management.
* Controlling
The controlling function of management is useful for ensuring all other functions of the organization are in
place and are operating successfully. Controlling involves establishing performance standards and monitoring
the output of employees to ensure each employee’s performance meets those standards. The controlling
process often leads to the identification of situations and problems that need to be addressed by creating new
performance standards. The level of performance affects the success of all aspects of the organization.
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Basis Taylor Fayol
Human aspect Taylor disregards human elements and
there is more stress on improving
men, materials and methods
Fayol pays due regards on human element.
E.g. Principle of initiative, Espirit De’
Corps and Equity recognizes a need for
human relations
Status Father of scientific management Father of management principles
Efficiency &
administration
Stressed on efficiency Stressed on general administration
Approach It has micro-approach because it is
restricted to factory only
It has macro-approach and discuses general
principles of management which are
applicable in every field of management.
Scope of principles These principles are restricted to
production activities
These are applicable in all kinds of
organization regarding their management
affairs
Achievement Scientific management Administrative management

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i)LINE AND STAFF ORGANIZATION
ii)FUNCTIONAL
iii)COMMITTEE ORGANIZATION
iv)PROJECT & MATRIX
v)DEPERTMENTALIZATION
vi) CENTRALIZATION & DECENTRALIZATION

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*LINE AND STAFF ORGANIZATION
When staff specialists are added to a line organization to "advise; "serve;” or
“support" the line in some manner, we have a line and staff organization.
These specialists contribute to the effectiveness and efficiency of the
organization. Their authority is generally limited to making recommendation
to the line organization. Sometimes this creates conflict. However, such
conflict can be reduced by having staff specialists obtain some line
experience, which will tend to make them better understand the problems
facing the line managers they support. Such functions as human resources
management and research and development are typical staff functions.
*FUNCTIONAL
Perhaps the oldest and most common method of grouping related functions is
by specialized function,such as marketing, finance, and production (or
operations). Sometimes this form of departmentalization may create
problems if individuals with specialized functions become more concerned
with their own specialized area than with the overall business.

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*COMMITTEE ORGANIZATION
When a group of people is formally appointed to consider or decide certain
matters, this type of structure is a committee. Committees can be permanent
(standing) or temporary and usually supplement line and staff functions.
Sometimes ad hoc or temporary committees are set up to deal with a specific
problem. Once this committee makes its recommendations, it is dissolved. On the
other hand, permanent committees usually act in an advisory capacity to certain
organizational units or managers. For example, committees are used to a large
extent in universities. They may report to a dean or department chair. Certain
committees, called plural committees, have the authority to order, not only to
recommend. These committees are usually reserved for a very high level, such as
the board of directors. An example is an executive committee of the board for
compensation or for succession planning.
*MATRIX & PROJECT ORGANIZATION
Departmentalization by matrix, or project, has received considerable use in
recent years, particularly in such industries as aerospace (e.g., NASA). In this
method, personnel with different backgrounds and experiences that bear on the
project are assembled and given the specific project to be accomplished within a
certain time period. When the project is completed, these specialized personnel
return to their regular work assignments.

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*DEPARTMENTALIZATION
Grouping related functions into manageable units to achieve the objectives of
the enterprise in the most efficient and effective manner is
departmentalization. A variety of means can be utilized for this purpose. The
primary forms of departmentalization are by function, process, product,
market, customer, geographic area, and even matrix (also called project
organization). In many organizations, a combination of these forms is used.
*CENTRALIZATION & DECENTRALIZATION
The issues of centralization and decentralization involve the principle of
delegation of authority. When a limited amount of authority is delegated in
an organization, it is usually characterized as centralized. When a significant
amount of authority is delegated to lower levels in the organization, the
business is characterized as decentralized. Centralization and
decentralization are opposites, and there are different degrees of each. In a
highly centralized organization, employees at lower levels have a limited
range of decision-making authority.

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*What is Span of Control?
Span of control is simply the number of staff that report to a manager. Some companies also
have an ideal span of control, which is the number of reports they feel a manager can
effectively manage. In this case, if a manager has fewer reports than the ideal, they may feel he
or she is not being effectively used, while handling more they may feel that the manager is over-
stretched and the reports will not receive enough direction.

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*What are the Implications of Span of Control?
Span of control of the average manager in an organization determines the width of the organization, as seen when viewing the
organizational chart. Fewer reports to the average manager will result in a taller organizational chart, with more management
positions relative to the number of individual contributors. A higher number of reports to the average manager will result in a
flatter or wider chart, with fewer management positions relative to the number of individual contributors.
* The average span of control will also impact the company's time to make decisions and cost structure.
* Higher average span of control means fewer layers of management within the organization, and a relatively flatter
organizational structure. This can lead to:
i) Faster decision-making due to fewer levels of approvals required for a specific decision, which allows the company to respond
more quickly to business issues.
ii) Better and more frequent communication between higher-level managers and staffers, so the staff is more knowledgeable
about company goals and the higher-level managers are more knowledgeable about daily operational issues faced by staff.
iii) Reduced costs relative to taller organization, since there are fewer management layers needing compensation.
* Lower average span of control means relatively more layers of management within the organization, and a relatively taller
organizational structure. This can lead to:
i) Fewer opportunities for promotions, since there are fewer management positions in the company.
ii) The concern that manager input will be relatively harder for staffers to obtain, and managers will have less time to focus on
specific decisions. Employees will need to be relatively more self-motivated and independent in their work style due to having
less manager input.
iii) Important strategic decisions by the company will have relatively less time spent on them, due to the reduced time available
to focus on individual decisions. This can lead to less-than-optimal responses to business opportunities and threats.

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Management by objectives (MBO) is a systematic and organized approach that allows
management to focus on achievable goals and to attain the best possible results from
available resources. It aims to increase organizational performance by aligning goals and
subordinate objectives throughout the organization. Ideally, employees get strong input to
identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and
feedback in the process to reach objectives.
Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book
'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance
of this organization management method, when he said: "It's just another tool. It is not the
great cure for management inefficiency... Management by Objectives works if you know
the objectives, 90% of the time you don't."

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Management by Exception (MBE) is a practice where only significant deviations from a budget or plan
are brought to the attention of management. The idea behind it is that management's attention will be
focused only on those areas in need of action. When they are notified of a variance, they can hone in
on that specific issue and let staff handle everything else. If nothing is brought up, then management
can assume everything is going according to plan.
This model is similar to the vital signs monitoring systems in hospital critical care units. When one of
the patient's vital signs goes outside the range programmed into the machine, an alarm sounds and
staff runs to the rescue. If the machine is quiet, it's assumed that the patient is stable, and they will
receive only regular staff attention.