Definition of Management, Personal Management, Division of Labour.

2. Management
 The term ‘Management’ stems from the word
Manage
 Manage word is derived from French word
‘menaze’
 Meanaze= House keeping
Meaning in broader sense:
 Proper utilization of people and other resources in an
organization to accomplish desired objectives

3. Definition of management
Koontz and Weihrich (1988):
 The process of designing and maintaining an
environment in which individuals, working
together in groups, accomplish efficiently selected
aims to carrying out the managerial functions of
Planning, Organizing, Staffing, Leading and
Controlling

4. Definition of management
 Scanlan (1973): Management involves the
coordination and integration of all resources (both
human and technical) to accomplish specific
results.
 The five basic functions which have historically
formed the core of studying management are
 Planning
 Decision making
 Organizing
 Directing
 Controlling

5. Features of management
 Management is a universal process which is applied in all types
of organizations: Social, Commercial and Educational
 The essence of management is the integration of resources:
human and physical etc.
 It is a social process as it deals with sensitive human beings
 It is a dynamic activity as it deals with sensitive human beings
 Management is multidisciplinary approach: it has been
developed by the disciplines of social science like Sociology,
Psychology, etc
 It is a science as well as an art

6. Management and
Administration
Point of distinction Administration Management
Nature Thinking function (what is to be
done and when)
Doing function (who
should do it and how)
Scope Determines broad objective and
policies
Implements plans and
achieve goal through
people
Level Top level function Middle and lower level
function
Skill needed Conceptual and human skills Technical human skills
Usage Mostly in government, military,
educational, social organization
Mostly in business
organization

7. Levels of management
 In most of the organizations, there are generally
three levels of management
 Top level management
 Middle level management
 Lower level management

8. Top level management
 It consists of Board of Directors, Managing Directors, General
Managers, Secretaries.
 Top level management establishes goals and policies for an
enterprise and devotes more time on the planning and
functions, develop basic financial structure of an organization,
provides guidance and directions
 It also approves the decisions of middle level management

9. Middle level management
 It generally consists of heads of functional development viz.,
branch manager, production manager, sales manager, chief
cashier etc.
 Receive order and instruction from top management and
execute the plans in accordance with the policies and
directives of the top management.
 Middle level management officers participate in employment
and training of lower level management.
 Devote more time on the organization and inspire lower level
managers towards better performance

10. Lower level management
 Also known as supervisor or operative level of management
 Consists of Supervisors, Foreman, Section officers
 Lower level manager guide and direct the workers under the
instructions from middle level managers
 Activities include:
 Arranging of the job and tasks to various workers
 Guide and instruct workers for day to day activities
 Arrange necessary materials, machine, tools etc for getting the
things done
 Prepare periodical reports about the performance of the
staff/workers
 Maintain interpersonal relations and motivation of staff
 Communicate workers problems, suggestions to the higher level etc

11. Functions of management
 Henry Fayol was the first management thinker to outline the
five basic functions carried out by the managers.
Five basic functions:
Planning
Organizing
Staffing
Directing
Controlling

12. Planning
 Selecting missions and objectives and the actions to achieve
them. It requires decision making i.e. Choosing future course
of action from among alternatives.
 Planning may be short term, medium term and long term
period
 Panning includes
 Determination of objectives
 Forecasting
 Search for alternatives course of action and their
evaluation
 Budgeting

13. Organizing
 It is assembling and arranging the resources, particularly the
human resources in the best possible manner. It is designed to
clarify who is to do what and who is responsible for what
results and to remove obstacles to performance.
It involves
 Determination of objectives
 Division of activities
 Fitting individuals to specific jobs
 Developing relationship in terms of authorities and
responsibilities
 Coordination of tasks

14. Staffing
 Positioning right people to right jobs at right time. It also
includes recruiting, selecting, promoting, planning the career,
compensating and training of personnel to accomplish their
tasks efficiently.
It involves:
 Proper manpower planning, recruitment and selection of
people
 Fixing remuneration
 Arranging training
 Appraisal and recognition of personnel

15. Directing
 It activates and motivates the organization members to work
effectively and efficiently for the attainment of organizational
goal.
 Planning, organizing and staffing are merely preparation of
the work, but directing actually starts the work. The sub-
functions of directing are Communication, leadership,
Motivating and supervision
 Communication : It is the pr0cess of passing information and
understanding from one person to another
 Leadership: It is the process by which a manger guides and
influences the work of his sub-ordinates

16. Directing
 Motivating: Inspiring the subordinates to work
enthusiastically towards accomplishment of organizational
goals.
 Supervision: Managers have to personally watch direct and
control the performance of subordinates

17. Controlling
 Measurement and appraisal of the activities performed by the
subordinates to ensure that the objectives and plans devised
are being accomplished. It is concerned with monitoring. It
may identify the negative deviations, if any, and correct it in
accordance with the plan
Controlling includes:
 Fixing appropriate standards
 Measurement of actual performance
 Comparing actual and planned performance
 Taking corrective actions

18. According to Koontz and Weihrich
 The basic management functions are
 Planning
 Organizing
 Staffing
 Leading and
 Controlling
 In business organizations these basic ,anage,emt functions can
be followed rigidly

19. Principles of Management
 Principle is a fundamental truth that provides understanding
and guidance to thinking and practice
 By means of principles of management, a manager can avoid
fundamental mistakes in his/her job
 Henry Fayol stated important principles of management which
can be applied in all functions, sizes of organizations

20. Fayol’s Principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Remuneration
7. Centralization
8. Scalar chain
9. Equity
10. Initiative
11. Esprit de corps
12. Order
13. Subordination of individual interest to the general interest
14. Stability of tenure of personnel

21. Fayol’s Principles of Management
 Division of work: This is the specialization which economists
consider necessary for managerial and technical functions
 Authority and responsibility: Authority is the discretionary
power to carryout assignment and responsibility is the
obligation to accomplish the activities
 Discipline: It is the obedience to authority, respect for
superiors, adherence to rules and dedication to one’s job
 Unity of command: Each employee should recive orders
from one superior only

22. Fayol’s Principles of Management
 Division of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Remuneration
 Centralization
 Scalar chain
 Equity
 Initiative
 Esprit de corps
 Order
 Subordination of individual interest to the general interest
 Stability of tenure of personnel

28. PERSONNEL
MANAGEMENT

29. PERSONNEL MANAGEMENT
 A manager gets things done through other people
 Human resources use material resources such as land, money,
machinery, equipments, materials
4M: Man, Money, Machine and Materials
 Responsibility of managers: To ensure that the employees utilize
these resources in optimum manner
 Minimum wastages of resources and maximum returns on
investment made in resources.

30. PERSONNEL MANAGEMENT
 Enterprise spends considerable amount of money on
Recruitment, Training, Remuneration, Motivation etc., of its
employee.
 Unless the employee work with devotion, their performance will
be poor. They will not make effective utilization of material
resources.
 The effective utilization of human resources is even more
important.

31. PERSONNEL MANAGEMENT
 Management is said to be effective, when enterprise is utilizing
its Human and Natural resources effectively to achieve its
objectives.
 But at the same time it does not mean that Human Resources
should be utilized only as a resources.
 Employees are human being with emotions and aspirations of
their own.
 It is also the duty of management to treat employees with dignity
and sense of belongings

32. Relation b/w Personal and General
Management
 Personnel management is the sub-area of the general
management.
 It concentrates on the human activity element of the general
management.
 It is concerned primarily with manpower resource
 "Personnel management is the planning, organizing, directing
and controlling of procurement, development, compensation,
integration and maintenance of people for the purpose of
contributing to organization, individual and social goals."

33. Functions of Personnel
Management
 Personnel manager has to perform the managerial
functions such as
Planning
Organizing
Directing
Motivating and
Controlling personnel working in his department.

34. Functions of Personnel
Management
 Additional operative functions.
 Procurement - recruitment, selection, placement and induction
of the new employees
 Development - performance appraisal, promotion, transfer of
employees
 Compensation - remuneration in the form of wages, salaries,
bonus
 Integration - integrating the organizational, social and
individual goals
 Maintenance - health and safety, favorable work environment,
employee benefits and services, labour welfare work, worker
participation in management.

35. Functions of Personnel
Management
 Every work whichever type it may be, to whichever category it
may belong is characterized by certain inherent criteria known
as work specifications.
 Procedure for securing, organising and combining the important
facts related to work enable the personnel department to assess
the quality and characteristics of the operator in performing the
same, is regarded as an essential basis of work analysis.
 The man entrusted with this work is popularly known as work
analyst.

36.  Identification of work
 Types of work study
 Labour input

37. Identification of work
 Organization structure is developed to achieve objectives
 Works necessary for the accomplishment of objectives
 Total work is classified or divided systematically because no one
can handle total work alone.
 Identification and classification of work enables managers to
concentrate attention on important works
 While identifying and classifying works, management must ensure
 All necessary works are performed
 There is no unnecessary duplication in performing activities and
 Different workers are performed in a co-ordinated manner.

38. Work Study
 This is the tool in the hands of the management for achieving
higher productive efficiency in the organization.
 Work-study can be broadly classified into
 Methods study and
 Work measurement

39. Methods Study
 Definition: The systematic procedure for analyzing the
existing methods of doing work including the various human
movements involved in it with the main objective of evolving
the best or the most economical methods of doing the work.
 Procedure adopted can be categorized as:
 Selection of the work to be studied
 Collection of data and recording of the relevant facts about the existing
methods
 Critical examination of the data collected
 Development of most practical, economic and effective method, having
due regard to all contingents circumstances.
 Installation of the new methods and maintaining it by regular routine
check.

40. Techniques followed in Methods
Study
 Operation Process Chart - graphical representation by linear
diagrams
 Flow Process Chart - shows in addition to above the
transportation required, distance travelled storage and delays
 Flow Diagram - same as above but here symbols are used
 String Diagram - using string and pins on the template models
 Multiple Activity Charts - also known as simo chart
(simultaneous motion chart)

41. Work Measurement
 This is the technique of assessing the time content
of the work performed by an operator
 The technique involves the determination of the
proper time required for the work and so popularly
known as time study.

42. Optimization of labour input
 Obtain the most efficient or optimum use of labour.
 Labour must be confined with the other factors of production
and cannot be discussed in isolation.
 Proper labour management policy will depend on particular
farming situation.
 Alfred Marshall " labour is any exertion of mind or body
undergone partly or wholly with a view to earning some good
or other than pleasure derived directly from work.

43. Characteristics of labour
 Labour is not a commodity
 Labour is inseparable from the labourer
 Labour is more perishable than any other commodity
 Labour is less mobile
 Supply of labour is independent of its demand
 It is difficult to calculate the cost of production of labour
 Labourer sells his service and not himself
 Labourer does not have same bargaining power as their employers
 Labourer is not a machine - have ones own liking , feelings , wishes,
thoughts etc.,
 Labourers differ in efficiency

44. Types of Labour
 Hired/Casual - Seasonal
 For special jobs
 Temporary - Skilled
 Unskilled
 Permanent –
 Skilled (e.g. Technician, Clerks,)
 Unskilled (eg. Assistants, Attendants)

45. Supervision of labour and supervisors
Supervision
 Supervision is referred to as “the key stone in the
organizational arch", supporting the structural member
which ties together the management and workers
 Supervision is a part of a manager's job at all levels. The
vertical relationship among the different kind of mangers is
called the management level

46. The top and middle management is considered to be the upper level management
and first level managers are referred as supervisors (lower level management)

47. Supervising the supervisors
 The first line management play an important role in the
organization their supervision is also important.
 This is carried out by the middle level management - called
the "supervisor of the supervisors".
 Middle management is the link between the Top
management and First line management

48. Functions of Management by
levels

49. Division of labour
 Dividing large tasks into smaller packages of work to be
distributed among several people
 This work specialization allows an employee to master a task in
the shortest time with a minimum skill
 Making of an article is split up into several processes and each
process is entrusted to a separate set of workers. This is known
as division of labour
 It is simply a form of specialisation of labour
 The division of labour is associated with efficiency of labour.

50. Types in division of labour
 Simple division of labour
 Complex division of labour
 Territorial division of labour

51. Types in division of labour
Simple division of labour
 A work is done by the combined efforts of a group of workers. It is difficult
to say how much Work each one did.
Ex. carrying a heavy object, led by a number of people.
Complex division of labour
 Work is split up into different processes and each worker is assigned a
definite part of the work.
 This is the division of labour proper.
Ex. Manufacturing of pins, making of bread etc.,
Territorial division of labour
 This term refers to certain localities or cities or towns specialised in the
production of some commodities.
 Eg. Cricket bat manufacturing at Srinagar, Mysore Sandal Soap: Karnataka.

52. Advantages of division of
labour

Advantages to the producer
 Increase in mechanization
 Increase in production
 Increase in inventions
 Reduction in production cost
 Economic use of machinery
 Savings of time
 Advantages of specialization

53. Advantages of division of
labour

Advantages to the worker
 Reduction in training period
 Allocation of work according to ability
 Increase in workers efficiency
 Increase in mobility of labour
 Organization of workers

54. Disadvantages of division of
labour

Disadvantages to the worker
 Monotony of work
 Narrow outlook of workers
 Decline in mobility of labour
 Sense of irresponsibility

55. Disadvantages of division of
labour

Disadvantages to the society
 Exploitation of women and children
 Physical and moral deterioration of workers
 Struggle between workers and employers
 Sense of irresponsibility