PRINCIPLES OF MANAGEMENT BY DR. BHAVYA KHAMESRA

DR. BHAVYA KHAMESRA PRINCIPLES OF MANAGEMENT [Type text]
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UNIT 1 INTRODUCTION TO MANAGEMENT
INTRODUCTION:
Management is a dynamic, life giving element in every organisation. It
coordinates current organisation activities and plan future ones. It shapes the
environment of the organisation. The quality and performance of the management
determines the success of organisation & survival. A company/hotel can run
successfully only if the management is good at its work.
Management is crucial to the economic growth of our country. Big organization
can survive with only perfect management, like TATA, Sons, Reliance Industries,
NTPC, ONGC, Coal India Ltd are giant companies. Both govt./Private sector
factories/industries/hotels/service industries need management to stay in business and
grow. Charitable organization likes Narayan Seva Sans than have powerful
management.
4 m Theory:
Men, Machine, Money, Material are necessary for running
organization/factories men is most crucial factor of organization manage mean getting
work done management means "
The Art of Getting Things Done Through People" - Mary Parker.
A good manager is one who contributes to the organization goals indirectly by
directly staff, others to perform and not directly by performing the task himself eg. A
good hotel manager cannot do all things by himself. He has to coordinate all
departments, motivate people to serve guests. He cannot attend all guests himself but
has to get it done by staff. If the staff performs well, the management is able to active
goals. Thus management is a systematic way to do things.
Management is needed in Army, Navy, Hospitals, Educational, and Institutes,
family, self, and everywhere.
Definition:
George R. Terry gave the definition - management is a process consisting of
planning, organising, directing and controlling performed to determine and accomplish
the objectives by the use of people and resources.
FUNCTIONS
POSDCORB - 7 Functions by Luther Gulick planning, organising staffing,
Directing, Coordinating, Reporting and Budgeting.
HENRY FAYOL - 5 Functions of management are planning, organizing,
commanding, coordinating and controlling.
Some authors have added more function: - communication, Innovation,
Representation, Motivation etc.
Planning: Means thinking of actions in advance. It determines what should be done. It
is process of deciding business objectives, charting methods of attaining the goals.

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What, when, where, how, who will do it, Top management make long term plans 5 to
10 years, supervision make short term/ daily plans to do work.
Organizing: It means design develop human organization, procure raw materials
capital/money, and set everything in place to start production/ business organising
mean arrange everything and get together.
Organising means grouping identify people defining responsibility and delegating
responsibility, authority and establishing relationships.
Staffing: Means to recruit manpower to carry out difference functions. Selecting,
Training staff and give them suitable compensation (pay, benefits). Manufacturing
industry has different staff requirement then a service industry/ Pharmacy company.
Directing:Terms leading directing, motivating, actuating are same in meaning.
It means manager tells people what they have to do how to do, result achieved etc.
3 sub functions of directing are
Communication - passing informing
Leadership - Guide then, influence them
Motivation - Arouse desire to work best.
Coordinating
Controlling:
Establish standards of performance, measures performance, take action, if do
not meet our standard control on staff, resources, plans, finances are necessary for the
management.
Reporting:
It means taking feedback from juniors/ workers. Giving report/ information to
public/financial institutes workers report what they did an duty, rather completed the
work, problems faced by them.
Budgeting:
Each department makes a budget, then overall budget of organisation is made
Budget helps to make plans procurement of funds controlling resources etc. eg. A
hotel can stay profitable only if all H.K. Production, marketing budgets are advised to.
Innovation
Innovation means to develop new products or idea, to add new features to our
present product eg. Maruti 800 - Alto - Ritz - Desire a management has to innovate to
stay in business otherwise product becomes obsolete/ stale and go out of market &
competition takes over.
Representation
A management has to represent the organisation before various outside groups
i.e. government labour union, banks, financial Institutions, suppliers, customers etc. It
helps the management to win favour/ supportand tell its policies.

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Let’s learn management by an example
Suppose we want to open a hotel. We have to decide/ plan - where to open the
hotel, how much area we need, how much money required make financial budgets,
reports, how to hire staff. Who will be customers/ target market what marketing efforts
to be made, how to purchase raw material, etc.
We have to plan department / management
- Housekeeping - Take care of interiors, cleaning.
- F.B. Service/Kitchen - Production& Service of food
- Front office - Manage guests
- Human Resource- hire, recruit, and motivate staff.
- Sales & marketing - How to attract guest to hotel.
- Finance/Account - Get money from bank, make budgets allocate resources
make sure hotel runs it profit.
- Computer - Make programmes for I.T., reservations, sales, etc.
- Purchase - will select suppliers, negotiate prices, and ensure fresh / good quality
items.
All departments have to coordinate with each other for smooth functioning of
hotel.
Time management is also crucial in service industry guest satisfaction is the key
to success in business.
eg. A supervisor has to give direction to room boy to clean rooms to supervisor.
Supervisor checks (control) the job done by room boy supervisor prepares budget for
the cleaning agents used in housekeeping.
Roles of a manager
Role is the patterns of actions expected of a person in his activities involving
others. It arises from the position he occupies in a group in a given situation. People
play different roles in diff. situation.
Interpersonal Informational Decisionalroles
Figurehead monitor Entrepreneur
Leader Disseminator Disturbance handle
Liaison Spokesman Resourceallocator
Negotiator
1. Figure head: He has to perform some duties of ceremonial nature such as
greeting dignitaries/ guest, attending wedding of employees, lunch with
customer.
2. As a leader every manager must leader motivates & encourage his staff.
3. Liaison: He must make good contact / relations outside his vertical chain of
command/ group. eg. A manager has to deal with govt. department, excise
department to take license for bar/hotel.
4. Monitor: He has to gather/ scan information from the environment, asking
subordinates, team, outside, sources, competitor etc. eg. What new product the

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competitions are making / cancellation of groups from America due to earth
quake.
5. Disseminator: A manager passes some of his privileged important information
directly to his key subordinate. He shares his information eg. A company
manager shares his targets / achievement / secret new product development with
his group members/ team.
6. Spokesman: He has to represent his organisation to outside groups - govt.
officials, bank, financial institutes, labour union, suppliers, customers etc. He
has to win their support eg. for expansion plan he has to share information with
bank, who will give the company loan for expansion.
7. Entrepreneur: A manager proactively books out for innovation to improve his
organization. Innovation means creating new ideas/ products / services. He
should feel that this is his own company and work for it. eg. Manager in hotel
should book for new ideas service for greater customer satisfaction eg. Maruti
manager 800 - Alto - Ritz.
8. Disturbance Handler: He has to work reactively like a fire fighter eg. solution to
problems like a strike, major customer go bankrupt, supplier deny to send
supplies etc.
9. Resource allocator: He must divide work and delegate authority among his
subordinates. Allocate give resource to all staff to perform duties & give result.
10. Negotiator: The manager at all levels has to spend considerable time in
negotiation eg. A manager should negotiate with union leader on time with
strike or any grievance.
Levels of Management
There are various levels of manager board of director/ chairman/ owner /
corporatedirector.
eg. G.M of hotel
eg. Assit. Housekeeper
eg. floor supervisor
eg. Roomboy
TOP
MGMT
MIDDLE
MGMT
SUPERVISORS
WORKERS

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Workers are the base of company. If the base/ foundation is strong then the top
management will also becomestrong.
There are first line manager middle & top managers.
1. First line managers / lower level management are supervisors above the
workers. Their job is to handle day to day affairs and motivate the workers and
leading them.
2. Middle level managers: A vast, diverse group consisting sales, purchase,
personal, marketing, finance managers and head of department (H.O.D.) eg.
Exec. Housekeeper, executive chef, F&B manager etc.
3. Top level Managers: It consists of Board of Directors, Chairman of company,
vice - Presidents, General Manager etc.
eg. Taj group - Ratan Tata, Corporate chef, Corporate
F & B Manager etc.
Their main function / time spent in planning and organising whether sales have
been achieved ?
Managerial Skills
A skill is an individual’s ability to translate knowledge into action. It is
manifested in an individual performance. It can be developed through practice and
learning from experience & background. There are 3 types of skills a manager should
possess.
1) Conceptual 2) Human Relations 3) Technical skills
ConceptualSkills
It refers to farsighted view, broad thinking, creative & innovative ability, and
ability to access the environment. To plan, to organize, to set goal for organisation.
The top level managers should possess greater conceptual skills for
development of organisation then supervisions.
Human Relations skills
It is the ability to interact with the people all level effectively. The managers
should recognize the feelings & sentiments of others judge the possible reactions,
examine his own concepts and values regarding staff.
This is equally important for all levels of management.
Technicalskills
The understanding of nature of job, knowledge of the process/technique eg. A
production manager needs the technical knowledge of operating, machines, process of
making (fans) dimension, weight, electric consumption etc.
The low level managers / supervisors should pocesstechnical skills.

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Management V/s Administration
Management Administration
1) Peter Ducker : The
governance of business
enterprises is management
The government of non - business
institution eg. Government, army,
temple, is administration.
2) Economic consequences or
profit is the main priority
eg. Reliance company motto
is to make profit
Economic consequences are
secondary,
eg. Army work for protection of
country and not for money
3) Management means 'doing
thing/ action
It is a lower level function
and has to carry out
execution / direction &
operations
It involves thinking.
It is top level function involving
planning,
Another view is that the function by management can be divided in 2 categories.
1. Administrative management.
It involves planning and control.
It is done by top level management.
2. Operational Management
It involves the lower level management / supervisors and they have to carry day
to day operations / work and involved with workers.

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UNIT 2 MANAGEMENT THEORIES
Introduction: The concept of management came into use about 200 years ago.
But, it was taken seriously only 100 years back. Since then it is changing with the
development style of business in the world. These changes were influenced by various
events that took place in the last century like Industrial Revolution, World War-1,
World War-2, Formation of UNO, WTO, even terrorism.
The evolution of management in last 30 years can be studied in 3 parts:
 Early Classical Approaches - Scientific management, administrative
management & Bureaucracy.
 Neo-Classical Approaches- human relations movement & Behavioral
Approaches.
 Modern Approaches- Quantitative approach, system approach & contingency
approach.
Early ClassicalApproaches:
1. Scientific Management: In this management, certain rules were formulated by
Frederick Winslow Taylor (1856-1915), also known as the Father of Scientific
Management. His rules are as follows:
a) Time & Motion Study: According to it, an employee should be paid more if he
gives more output in less time.,
b) Differential Payment : Employee should be paid according to standard output
An employee giving lower output than standard, must be paid lower, whereas,
an employee performing above the standard must be paid more.
c) Drastic Reorganization of Supervision: Earlier, the workers decided the plan
of work, tools to be used, etc. Taylor suggested that a Supervisor should advise
what tool shall be used, what the advantage of using it is & what shall be the
plan of work. This brought a sudden change in the working environment.
d) Scientific Recruitment & Training: Taylor suggested a standard process of
selecting/recruiting healthy people of different age groups. These selected
employees should be given training for a particular work procedure.
e) Intimate Friendly Cooperation between the Management & Workers:
Taylor suggested that there should be a good friendly relation between the
management & worker. This will give a comfortable working environment &
also a freedom to the workers to discuss with the management about the
problems they are facing.
2 Administrative Management:
This theory was given by Henri Fayol (1841-1925). This theory was focused on the
development of general & higher managerial level 14 principles which are as
follows

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1. Division of Work: According to him, a single proprietor or group of director
cannot perform management functions properly. Therefore, the functions
(Planning, Organizing, Directing, etc.) should be delegated to various
employees, who can perform these actions.
2. Authority & Responsibility: Authority must be decentralized throughout
various levels of management, so that each level has a part of control over
his sub — ordinates. With the quantity of authority, the quantity of
responsibility also changes. More the authority, more the responsibility.
3. Discipline: Discipline means obedience to authority. It includes following
the rules & norms for any given task. Lack of discipline will lead to non-
performance or a fall in standard in any organization.
4. Unity of command: At one time one supervisor should issue job command
& no other supervisor should interfere during the tenure of that command, so
that the subordinates have one clear view regarding what & when to
perform.
5. Unity of Direction: An organization must have a clear cut objective which
every employee should work to achieve.
6. Subordination of Individual Interest to General Interest: The employee
should be motivated to keep the general interest of the Organization
objectives above their own objectives. They should be clear that their
personal growth is only possiblewith the growth of organization.
7. Remuneration: Remuneration (Salary & Payment) policy of the
organization should be fair. It should be based on the general business
condition, cost of living, productivity of the concerned employee & not
based on the relation between the management & Worker.
8. Centralization: While centralizing, the central management must set
authority according to the level of management. The top management must
reserve maximum authority; authority must decrease with decrease in
management levels.
9. ScalarChain: A
a. B --------- --------- M
b. C --------- --------- N
2. D --------- --------- O
Scalar chain means Hierarchy of authority from the highest level to the lowest for
the purpose of communication. This means that a person working at a lower
management level can communicate with the person of other department at the
same level. This theory is time consuming & cannot work in every situation.
10. Order: Management should follow this principle “write place for everything &
for every one”. Management should know whom & when to be ordered work in
which situation so that the operation does not suffer.

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11. Equity: Equity means fair treatment for everyone. Every employee should be
treated equally by the management irrespective of their cast, creed, financial
condition or their post in the organization so that it leaves an atmosphere of peace
& harmony.
12. Stability of Tenure of Personnel: Every person will like to have a job
security, because job security results into stability. However, some job may be
short term, but if the employee is informed well in advance, he/she will not feel
at the end of duration & will carry on hard work.
13. Initiative: Initiative means freedom to think out and execute a plan. According
to Fayol, initiative is one of the keenest satisfactions for an intelligent man to
experience, & hence he advices managers to give their employees sufficient
scopeto show their initiative.
14. Esprit de Corps: It is a French Terminology for “Spirit of Cooperation”. Fayol
suggests that all employees should work with harmony & unity. They should be
harmonically united to work in the direction of achieving the organization
goals.
3. Bureaucracy:
This theory was given by Max Weber, a German Sociologist around 1910. He gave
the following principles:
A. Systematic division of Work: It increases efficiency & the result is time saving
& more productivity.
B. Insistence on following the standard Rules: This principle advocates that
personal preferences should not be allowed & rules should be strictly followed
in any organization.
C. Principle of Hierarchy should be followed: Each Lower level officer should
be under the control of the higher one.
D. Every individual to have training application of Rules: it is required so that
authority will be designated to the trained staff only.
E. Rational Personnel Administration: this means that there are standard rules
for selecting, recruiting & promoting employees & there will be no
discrimination in any manner. :
Contribution: It has enabled most large scale organize which require functionally
specialized staff train. Control the people & to delegate specific responsibilities and
function to them.
Limitations of bureaucracy
1. Over confirming to rules - stick to the role policy.
2. Passing the bulk to others - Afraid to take decision in independent.
3. No right to appeal.
4. Neglect of informal group which carry out big chamber of work.
5. Rigid structure - They work in stable environment but do not well in
changing environment.
6. Inability to satisfy the needs of mature individuals

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Neo-ClassicalApproaches:
This theory does not reject early classical approach, but they try to refine them.
1. The Human RelationMovement:
Various managers practice Taylor’s theory, but they found that his theory lacked
in Human Relation aspect. Hawthorne experiments were conducted by Prof. Elton
Mayo on the employees to bring out the “people side of the management”. During
his experiments, he found the following:
 The employees, who were treated with Humanity, produced better results
than other employees.
 A group, which was closely related & friendly, got better results when the
good working conditions were given & also when the conditions were not
so good.
 The social & living culture of the employees influences the productivity.
 In this experiment, the weaker workers were separated from the efficient
ones; both groups were given some job to perform. The weaker once
produced less than the standard number required & the efficient once
produced much more than the standard numbers. So the weakest once
were terminated.
2. BehavioralApproach:
It was an improvised version of the Human Relation Movement & was carried out
by many scientists: Douglas McGregor, Abraham Maslow, Kurt Lewin, Chester
Bernard, Mary Parker Follett, George Homans, Rensis Likert, Chris Argyris &
Warren Bennis.
Their findings have helped us in understanding organizational behavior. Their
contributions & beliefs are as follows:
 They criticized the domination of the managers which caused
subordinates to become passive & dependent on them.
 They suggested flexible organization structures & distribution of work
among the employees themselves according to their capabilities.
 They suggested that the Decision-Making should be done by the whole
group, not by a single manager or group of board. Decision made by the
authority, without discussing with the workgroup is never acceptable
totally.
 They suggested humanizing the administration of the control process &
encouraging the process ofself direction & control.
 They suggested that different people act differently in same situation &
therefore to motivate different people, we need different approaches.
 The conflicts among employee-employer, employee- employee &
management-employees should be handled with care in order to avoid big
conflicts.

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Modern Approaches:
1. Quantitative Approach:
This approach revolves round the facts & fears that build a quantitative model of a
manager. It involves cost effective values in infrastructure. This approach facilitates
disciplined thinking, while defining management problems & establishing relationship
among the variables involved. This approach is widely used in planning & control
activities where problems can be precisely identified & defined in terms of
quantitative terms.
The focus of quantitative approach is on decision making, to provide
quantitative tools, techniques for making objectively rational decisions. It implies
ability, willingness to follow a reasoned, unemotional, orderly, scientific approach in
relating means with ends. A mixed team of specialists from relevant disciplines are
called to analyze the problem & to propose a course of action to management. The
team constructs mathematical model to simulate the problem. By changing values
(quantity) of the variable in model (such as increasing the cost of raw material)
analyzing different equations, the team can determine whether effect of each change
would be. This approach is widely used in planning& Control activities, but
uncommon in areas such as organising, staffing, and leading where the problems are
more of human nature, not technical. Budgets, forecasts, are part of this approach.
2. Systems Approach :
One broad, detailed, conceptual framework is needed to help managers diagnose
a problem. It provides the integrated approach to might problem. Some important
advocate of thus approach is Chester Bernard, Philip Selznick, Herbert Simon. They
key concepts ofthis approachare:-
1. A system is a set of interdependent parts which together perform some function
e.g. use of task system; people sub system, technology sub system.
2. No part of system can be accurately analyzed, Understood apart from the
system. Conversely, the whole system cannot be understood without
undertaking its parts e.g. A study of restaurant employees were facing common
problem of sudden load of orders during rush hours. Waitress broke in tears due
to mixed orders, cooks grew sentimental because they could not match their
output rate, Managers lost them temper & shouted at employees & faced
customer complaints. There was a lack of system.
3. A system can be either open or close : An open system in one which interact
with environment closed system is one which in independent of environment.
The management systems are open in nature.
Input Output
Raw Material
Power process Goods
Equipment Services
Human Efforts Satisfaction
Technology

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4 Every system has a boundary - More defined for physical, biological system
rather than social system. Plot / land is physical system, human body- biological
system, difficult for organization.
3. ContingencyApproach :
According to this approach, management principles & concepts of various writers
have no general & universal applicability under all conditions. This means that no
particular approach is fully applicable in one & every organization. They have to be
chosen & modified to make them applicable in a particular situation in an
organization.
It tries to integrate the various schools of management thought according to this
approach management principles have no general and universal applicability under all
conditions i.e. There is no one best way of doing things. What is good in one situation
may not work for other situation. Managers have to develop situational sensitivity and
practical selecting. They have to act according to the situation. Results differ because
situations differ.
UNIT 3 FUNCTIONSOF MANAGEMENT
Planning, Organizing, staffing, Directing, Controlling
Coordinating, Decision making, budgeting
PLANNING
 Planning is deciding in advance what to do, how to do
 It is one of basic managerial functions
 It is connected with creativity & innovation
 Definition: setting objectives for a given time period, formulating various
courses of action to achieve them
 Planning is thinking in advance.
Importance of planning
1. Planning provides direction. It acts as a guide to take action
2. Planning reduces risk of uncertainty.
3. Planning reduces overlapping & wasteful activities. It ensures clarity of
thought& action.
4. It promotes innovative ideas
5. It facilitates decision making by making a choice among various alternatives
6. It establishes standards for controlling. Goals are compared with actual
performance
Features ofplanning

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 It focus on achieving objectives by setting specific goals
 It is primary function of management. It lays down base for all other functions
 It is pervasive. It is required at all levels of management
 It is continuous. A plan is framed; implemented, new plan is made.
 It is futuristic. The main purposeis to meet future events effectively.
 It involves decision making., through examination & evaluation of each
alternative & chooseappropriate
 It is a mental exercise
Limitations of planning (disadvantages)
 It leads to rigidity.
 It may not work in a dynamic environment. The environment changes so plans
change. Eg. Competition upset financial planning
 It reduces creativity. Middle managers are not allowed to deviate from plans
 It involves huge costs eg. Meetings, professional consultants, investigation costs
 It is time consuming process.
 Planning does not guarantee success.
 It should be used with caution.
Planning process
1. Setting objectives- goals specify what organisations want to achieve.
Departmental objectives are made.
2. Developing premises- make certain assumptions about future, eg. Forecasting of
interest rates, policy change
3. Identifying alternative course of action-
4. Evaluating alternative courseof action- positive & negative aspects of plans
5. Selecting an alternative- depending on managers experience,
6. Implementing the plan – putting the plan into action
7. Follow up-whether activities are performed according to schedule
Types of plans
 Objectives- they are the desired future position the management would like to
reach .they should be specific.eg. We want turnover of 1000 crore rupees.
 Strategy- a broad, detailed, comprehensive plan. It includes long term
objectives, courseof action, resources allocated,eg. Marketing strategy answers
to product, customers, prices
 Policy- general statements that guide thinking towards particular direction. Eg.
A company has recruitment policy., purchase policy, Policy define the broad
parameters within which a manager has to function
 Procedures-they are routine steps/action on how to carry out activities.eg.
Before placing order, take rates from at least 4 suppliers.

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 Method- methods provide the prescribed way or manner in which a task has to
be performed. Selection of propermethod saves time, money, efforts.
 Rule- specific statements that inform what is to be done. They do not allow any
flexibility / change.
 Programme- detailed statement about a project which outlines objectives,
policies, procedures, rules, tasks, even the minutest details.
 Budget- it is a statement of expected results expressed in numerical terms. It is
easier to compare actual figures with expected figures and take corrective
action.eg. Sales budget, marketing budget, cash budget
ORGANISING
 THEO HAIMMAN – organizing is the process of defining and grouping the
activities of the enterprise & establishing the authority relationship among them
 LOUIS ALLEN - it is the process ofidentifying & grouping the work to be
performed, defining & delegating responsibility & authority, & establishing
relationship for the purposeof enabling people to work most effectively
together in accomplishing objectives.
 Eg. Organizing a fete / food festival at college
 How it actually takes place? Whole activity is divided in task groups, each
group is given a specific work/ activity, food committee, decoration committee,
invitation committee, cultural committee etc. then all activities are coordinated
for smooth event.
Steps in process oforganising
 Identification & division of work- work is divided into manageable activities to
share burden
 Departmentalization- similar activities are grouped together. It facilitates
specialization. Eg. F&B dept. , housekeeping dept, sales, marketing , etc.
 Assignment of duties- define work, job positions , allocate work to bestfitted
persons
 Establishing reporting relationships- from whom to take orders, and whom to
report, establish hierarchy helps in coordination
Basis ofdepartmentalization

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1. Functions- Each major function is grouped into a department.eg. Production,
finance, marketing, .it leads to improved planning & control.
2. Products- eg. HLL ( Hindustan liver limited) making different types of
products like detergents, toiletries, food products,
3. Customers- eg. An electronic firm manufacturing fan may separate
departments for consumer customers, military & industrial customers.
4. Regions/ territory- according to geographical basis. Eg. Indian railways has
made different zones like northern railways, western railways, central
railways, southern railways, eastern railways to make it easy
5. Divisional structures-multi productcompany segment them selves into
several independent profit centers.
6. Time-
7. process-accordingto process ortechnology used in manufacturing in the
product
Importance of organising
 Benefits of specialization-by repetitive performance
 Clarity in working relations- who reports to whom
 Optimum utilization of recourses-avoids duplication; prevent confusion &
wastage of time, money.
 Adaption to change- to modify & revise, to provide stability to the enterprise.
 Effective administration- properexecution of work , managing becomes easy
 Development of managers- by delegation of workload manager gets time for
innovation.
 Expansion & growth- by diversification, take new challenges

Principles of organising
1. Objectives - Should be clearly defined
2. Specialization -Activities divided according to function
3. span of control- Limit on no. of persons under a supervisor
4. exception - Higher level should devote time to crucial issues & routine matters
be dealt by subordinates at lower level
5. scalar principle –chain of command , line of authority should be clearly defined
6. unity of command – each subordinate should have only one superior whose
command he has to obey
7. delegation – proper authority should be given, equal responsibility
8. responsibility –no superior can avoid responsibility
9. authority – it is a tool by which manager is able to accomplish the desired goals.
10. Efficiency- structure should be able to work efficiently.
11. Simplicity – organisational structure should be as simple as possible.
12. Flexibility- organisation should be able to adapt to the changes
13. Balance – reasonable balance between the various departments, centralization
& decentralization, etc.

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14. Unity of direction –only one objective & one plan for a group of a activities.
15.Personal ability- proper selection , placement & training of people/ staff
16. Acceptability-
Organisationstructure
 Organisation charts- horizontal reads from left to right, vertical chart reads from
top to bottom, circular has CEO at center and all others on different radius.
 Organisation manuals- description of different jobs, listed by title/ chart
 Classical organisation structure-Tall organisation/ pyramid shaped structure
Delegation
 A manager cannot do all tasks himself. He must delegate authority. Delegation
means downward transfer of authority from superior to subordinates. The
manager is still accountable for the work.
 3 elements of delegation are authority, responsibility & accountability.
 Importance of delegation are – effective management, employee development,
motivation of employees, facilitation of growth, better coordination,.
Authority- right of an individual to command / give orders to his subordinates & take
action. it is by virtue of one’s position. It determines the relationship between the
superior & subordinates. it is restricted by the laws& rules of the organisation.
Responsibility – it is the obligation of the subordinate to properly perform the
assigned duty. Responsibility flows upward from subordinates to superiors.
Accountability - It is the answerability for outcome of the assigned task. It cannot be
delegated at all. It arises from responsibility. It flows upward from subordinates to
superior.
STAFFING
 The foundation of any organisation is the talented & hardworking people. The
organisation should have right persons in the right position.
 It means putting people to job.
 It is the managerial function of filling & keeping filled the positions in the
organisation structure.
 This is achieved by identifying requirement of workforce, followed by
recruitment, selection, placement, promotion, appraisal, & development of
personnel to fill roles designed in organisation structure.
Benefits of staffing
1. Helps in obtaining right person for job
2. Makes for higher performance
3. Ensures the continuous survival & growth of the enterprises through the
successionplan for managers.

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4. Helps to ensure the optimum utilization of the human recourses by avoiding
overstaffing,/ over manning. It prevents under utilization of personnel & high
labour cost. It avoids disrupt of work
5. Improves job satisfaction and morale of employees through objective assessment
& fair reward for their contribution.
Staffing process
1. Estimating the manpower requirement-
Performance of each job necessitates the appointment of personwith specific
educational qualification, skills, prior experience/ fresher.
2. Recruitment
It may be defined as the process ofsearching prospectiveemployees and
stimulating them to apply for the job in the organisation, by advertisements,
internal/ external sources
3. Selection
it is the process ofchoosing from among the poolof the candidates who have
applied for the postin organisation. Tests & interviews are taken . Candidate is
selected. We offer a written document of employment.
4. Placement & orientation
Orientation is introducing the selected candidate to other employees &
familiarizing him with the rules & policies of the company.
Placement refers to the employees occupying the position or postfor which
he/she is selected.
5. Training & development
Everyone should have the opportunity to rise to the top and develop career.
This is done by learning & giving training to employees. It attracts & retains
talented people.
6. Performance appraisal
After some time there is need to evaluate his performance as against the
predetermined standards. Superiors should also give feed backto the
employees.
7. Promotion & career planning
The managers should encourage employees to grow. Promotions are integral
part of career. It means more pay, responsibility &job satisfaction.
8. Compensation
It refers to all forms of payments or rewards going to the employees. Like
wages, salary, incentive, commission, bonus, also indirect payment like paid
vacation, employee insurance etc.
Sources ofrecruitment
INTERNAL
 Transfers

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 Promotions
EXTERNAL
 Direct recruitment
 Casual callers
 Advertisement
 Employment exchange
 Placement agencies
 Campus / colleges
 Friends& relatives of employees
 Labour contractors
 Web
Selectionprocess
1 Preliminary screening
Eliminate unqualified job seekers
2 Selection tests
Written/ oral
Intelligence test
Aptitude test
Personality test
Trade test
Interest test
3 Employment interview
Formal in-depth conversation to seek information
4 Reference & background check
To verify information
5. Selection decision
6 Medical examinations
7 Job offer
8 Contract of employment
TRAINING AND DEVELOPMENT
 Training – process ofincreasing knowledge & skills. It enables employee to do
the job better. It is job oriented process. It is a one-shot-process.It is preparation
of present needs of an individual.
 Development - it is process oflearning & growth. It enables the overall growth
of employee. It is a career oriented process. It is a continuous process.It helps
to attain future needs.
Training methods

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 On the job method
It means training the workers in our organisation.
it takes place at the work location. This method does not require any special
arrangements, it is inexpensive method, it takes less time to train the staff. New
workers are given training by their supervisor. The supervisor must be well
trained & experienced. Few types are
Apprenticeship programmes-eg. In kitchen new workers are given knowledge
& the skills of their craft for 3- 5 years.
Coaching-
Internship training-this type of training is provided to skilled & technical
personnel. It bring balance between theoretical & practice knowledge.
Job rotation- in this method the employee from one department is trained in
another department. Eg. In housekeeping, a public area supervisor is sent to
laundry department to learn the laundry operations.
 Off the job method-
Classroomlectures/Conferences- the use of audio visual or demonstrations
make the training interesting.
Films-provide information & demonstrate the skills, very effective in certain
cases.
Case study-these are taken from actual experiences of the organisation, real
problems faced are discussed, analyzed & alternate solutions are suggested.
Computer modeling-training by computers by simulating the work
environment, without the risk or high cost.
Vestibule training – employees learn their job o the equipment they will be
using, but training is conducted away from the work place.
Programmed instructions- information is broken in meaningful units, arranged
from simple to complex, trainee answer the questions / fill the blanks.
Advantages of training:
1. It helps to improve quality& quantity of workers output.
2. Gives a sense of satisfaction to the worker
3. Reduces the rate of labour turnover
4. It facilitates promotion of workers to higher jobs & increases their market value
& earning power
5. It makes the worker loyal towards the organisation.
6. It helps to create a poolof trained personnel, if there are any replacements in the
company it can be easily filled.

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DIRECTING
 Directing means giving instructions & guiding people to do work. It is the
process ofinstructing, guiding, counseling, motivating & leading people in
organisation to achieve its objectives.
 Directing guides towards achievement of common objectives by telling people
what to do, how to do,
Main characteristicsofdirecting
 Directing initiates action
 It takes place at every level of management
 It is a continuous process
 Directions flows from top to bottom
Importance of directing
 It helps to attain desired objectives, targets
 It integrates individual efforts to organisational goals & team work
 It helps employees to realize their potential by motivation, communication &
leadership of managers
 The employees accept change & cooperate with managers. Eg. A new
accounting system
 It brings stability & balance in the organisation as it fosters cooperation&
commitment among people& various departments
Principles of directing
A manager has to deal with people of different background & expectations.
Some principals are:
 Maximum individual contribution – to bring out bestof employees for
efficiency of organisation.
 Harmony of objectives – eg. Employee expect attractive salary, company expect
better productivity, so both objectives should be complimentary and not conflict
 Unity of command – a personshould receive commands from one superior only.
It avoids confusion, conflict, disorder in organisation.
 Directional techniques- motivational & leadership techniques should be used to
direct people.
 Managerial communication – at all levels makes direction effective.
Subordinates should understand direction clearly.
 Use of informal organisation – groups within organisation for effective direction
 Leadership – managers should exercise good leadership as it can influence
people
Follow through – managers should follow it up by constant reviewing work , or
any problems . Need necessary changes in direction if necessary.

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Elements of direction
1) Supervision
2) Motivation
3) Leadership
4) Communication
SUPERVISION
 It means overseeing what is being done by subordinates to ensure optimum
utilization of resources
 Function of supervisor immediately above workers
Importance of supervision
 Day to day contactwith workers , friendly relation
 Link between workers & management. Helps in avoid conflict
 Maintain harmony & unity among workers
 Ensures performance & motivates workers
 Give on job training to workers
 Good leadership provided to workers
 Analyze & give feed back to workers
MOTIVATION
 It means process ofstimulating people to action to accomplish desired goals –
William G. Scout
 Motivation refers to the way in which urges, desires, aspirations, strivings or
needs direct , control, & explain the behavior of human beings- Mc Farland
 Motivation depends on satisfying needs of people
 Motive- inner state that energises, activates, and directs behaviour towards
goals.
 Motivators- technique used to motivate people in organisation
 Motivation can be positive or negative. Positive motivation produces positive
rewards like increase in salary. Negative motivation uses negative means like
punishment stopping increments.

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 It improves the level of job satisfaction of the employees. It refers the general
attitude towards the job.
Importance of motivation
 It helps to improve performance levels of employees & organisation.
A satisfied employee always gives expected performance.
 It helps to change negative / indifferent attitude of employee to positive attitude.
 It helps to reduce employee turnover & saves costof new recruitment, training.
 It helps to reduce absenteeism in organisation. Work becomes a sourceof
pleasure and ensures regularity.
 It helps managers to introduce changes smoothly without much resistance from
people.
Maslow's needhierarchy theory of motivation
 Abraham Maslow was a well known psychologist.
In Basic physiological needs –primary needs like hunger, thirst, shelter,
sleep, sex etc. E.g.. Basic salary
 Safety/ security needs – these provide protection from physical emotional
harm. E.g.. Job, security, stability of income, pension plan,
 Affiliation needs – refer to affection , sense of belongingness , acceptance &
friendship.
 Esteem needs – these include factors such as self respect, autonomy status,
recognisation, & attention
 Self actualization needs – it is the highest level of need in the hierarchy. It
includes growth, self fulfillment & achievement of goals.
1943 he outlined the elements of motivation
self
actualization
self esteem
affiliation needs
safety /security needs
basic physiologicalneeds

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Maslow's theoryis basedon following assumptions
 People ‘s behaviour is based on their needs. Satisfaction of such needs influence
their behaviour
 People’s needs are in hierarchical order, starting from basic needs to other
higher level needs.
 A satisfied need can no longer motivate a person; only next higher level need
can motivate him.
 A person moves to next higher level of hierarchy only when the lower needs are
satisfied.
Financialincentives
 Pay & allowance
 Productivity linked incentive
 Bonus
 Profit sharing
 Co-partnership/ stockoption
 Retirement benefits
 Prerequisite
Non financial incentive
 Status
 Organisational climate
 Career advancement opportunity
 Job enrichment
 Employee recognisation programme
 Job security
 Employee participation
 Employee empowerment

Other theories of motivation
1. Herzberg’s two factor theory
Hygiene / maintenance factors help avoid dissatisfaction& related problems
such as absenteeism, these factors are-
o Fair company policy & procedures
o A supervisor who knows his work
o Good relationship with supervisor, peers & subordinates
o Fair salary, job security, good working conditions
o Personal life, status
Motivators/satisfiers build high level of motivation. If these are absent they do
not lead to strong dissatisfaction. These factors are-
 Opportunity to do something significant, recognisation,
 chance for advancement, opportunity to grow& develop,
 increased responsibility, the job itself.

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2. McClelland’s need for achievement theory
According to him 3 important needs are
Need for affiliation, need for achievement, need for power.
3. Victor vroom’s Expectancy theory
Under conditions of free choice, an individual is motivated towards that activity
which he is most capable of. A manager must attract the employees towards the
rewards, convince hem to put efforts, have the ability to put the efforts
LEADERSHIP
Leadership is the art or process ofinfluencing people so that they will strive willingly
& enthusiastically towards the achievement of group goals.-
The leaders play an important role for the success & excellence of the organisation.
Microsoft- bill gates, tata – ratan tata, reliance – dhirubhai ambani
Wipro – azim premzi,
Features ofleadership
 It indicates ability of an individual to influence others
 It tries to bring change in the behavioure of others
 It indicates interpersonal relationship between leaders & followers
 It is exercised to achieve common goals of the organisation.
 It is a continuous process
Importance / functions of leadership
 Leaders always producegood results through followers
 Leader provides needed confidence, support, encouragement & creates good
working atmosphere
 Leader plays key role in introducing changes in the organisation with minimum
discontentment
 a leader handles conflict effectively
 Leader provides training to their subordinates, builds his successors .
 A leader serves as an example to others
Qualities of a good leader
1. Physical features-like height, weight,, health , appearance, .good physical
features attract people.
2. Knowledge- can instruct subordinates correctly & influence them
3. Integrity – he should be a role model to others regarding the ethics & values
4. Initiative – should have courage & grab opportunity

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5. Communication skills – clearly explain his ideas to people, he should be a good
speaker, listener, teacher, counselor, persuader.
6. Motivation skills – an effective motivator, understand needs of people,
motivate them through satisfying their needs
7. Self confidence – should not loose confidence in difficult times. Also provide
confidence to his followers
8. Decisiveness – once a leader is convinced he should be firm & not change his
opinion frequently.
9. Social skills – he should be social & friendly with his colleagues and maintain
good human relations with all
Styles of leadership
It is the manner & approachto provide direction, making plans & motivating people.
the three major leadership styles are
1. Authoritarian – autocratic style. In this style the leaders tell their employees
what to do, how to do, without getting the advice of their followers. Leader is
powerful followers simply follow orders.
2. Participative-democratic style. In this style the leader seeks advice of the
employees in the decision making process.But the final decision is made by the
leader only. It has the benefit of making the team where everybody participates.
3. Delegative-free reign. In this style the leader allows the employees to make the
decisions. It shows trust & confidence in the followers. However the leader is
still responsible for the decisions & results.
Leadership theories
1. Great man theory-
Leaders are born not made. This theory portrays leader as heroic, mythic &
destined to be leaders when needed
2. Trait theory-
This theory states that some personal qualities like physical, mental
characteristics, friendliness, knowledge, managerial abilities are inherited by
leaders. It states that leaders are made not born. Nobodyis leader from birth,
leadership qualities can be fed in personality.
3. Behavioral approach-
The leader’s behavior makes them leaders. How they behave with their team is
important. They motivate, give authority and provide supervision.
4. Contingency approach-

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This states that no one leadership is suited to all situations. Leaders act
according to the situation. Situations depend on leader – member relation. There
is life cycle model, where the relationship moves through 4 phases.
COMMUNICATION
 Communication is the process bywhich people create & share information with
one another in order to reach common understanding - Rogers
 Communication is the transfer of information from the sender to the receiver
with the information being understood by the receiver – Koontz & Weihrich
 A manager spends generally 90% of his time in communicating, reading,
writing, listening, guiding, instructing, approving, reprimanding,
Elements of communication process
1. Sender – sourceof communication, personwho conveys thoughts, ideas
2. Message – it is the content of ideas, suggestions, order to be communicated
3. Encoding – it is the process ofconverting message into communication symbols
as words, pictures, gestures
4. Media – path through which message is transmitted to receiver, may be written,
face to face, phone call , internet
5. decoding – process ofconverting encoded symbols of the sender
6. Receiver – the personwho receives the information
7. Feedback– action of receiver indicating that he has received & understood
message of sender
8. Noise – it means obstruction/ hindrance to communication.eg. Ambiguous
symbol, poortelephone connection, inattentive receiver, prejudices, wrong
gestures & postures.
Importance of communication
 Acts as basis of coordination between departments, persons,
 Helps in smooth working of an enterprise when communication stops ,
organized activity ceases to exist
 Acts as basis of decision making by transferring relevant information
 Increase managerial efficiency- manager conveys goals, targets, instructions,
responsibilities
 Promotes cooperation & industrial peace- mutual understanding
 Establishes effective leadership
 Boosts morale & provides motivation of employees &manager
Types of communication
Formal communication
 Generally filed in office

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 Written/ oral
2 types – vertical & horizontal
Vertical - upward / downward
 Upward comm. – flow of information from subordinate to superior eg.
Application for leave, report
 Downward comm. – communication from superior to subordinates, eg. Notice
to attend meeting, guidelines,
Horizontal – lateral between one division and other on same level
 Informal communication
 It spreads without the formal lines of organisation, without he formal channels
 Known as grapevine – spreads rapidly , gets distorted
 Sometimes difficult to detect the source of informal communication
 Generates rumors , may hamper work environment
 An intelligent manager uses positive aspects & minimizes negative aspects eg.
To know reaction of his subordinates
Barriers to communication
 Semantic barriers-problems & obstructions in process ofencoding, decoding,
faulty translations, unclarified assumptions
 Psychological barriers- emotional , state of mind, lack of attention, loss by
transmission, poorretention Distrust
 Organisational barriers- related to organisational policy, rules & regulations,
status, complexity in organisation, facilities in organisation.
 Personal barriers – fear of challenge to authority, lack of confidence in others,
unwillingness to communicate, lack of properincentives

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CONTROLLING
 Controlling means that the activities in organisation are performed according to
plan. It not only helps in keeping track on the progress of activities but also
ensures that the activities conform to the standards set in advance so that
organisational goals are achieved.
 Controlling is a goal oriented function. It helps in formulation of future plan in
the light of problems that were identified and thus helps in better planning in
future
 Without controlplans can go awry/ cannot be achieved
Importance of controlling
 Accomplish organisational goals- keeps it on right track
 Judging accuracy of standards –weather standards set are accurate & objective.
 Making efficient use of resources –manager can reduce wastage & spoilage of
resources
 Improving employee motivation –a good controlsystem tells employees what
they are expected to do & their standards of performance
 Ensuring order & discipline –it helps to minimize dishonest behavioure of
employees
 Facilitate coordination in action – for each department & employee
Limitations of controlling
 Difficulty in setting quantitative standards -employee morale , job satisfaction
cannot be measured in numbers.
 Little control on external factors- enterprise cannot control external factors such
as govt., technological, competition
 Resistance from employees –they see it as restriction to their freedom, eg.
CCTV
 Costly affair –it involves lot of expenditure, time, and effort.
Steps in controlling process
1. Setting performance standards
Standards can be set in qualitative & quantitative terms. Eg. Costto be incurred,
quality, rooms to be sold,
2. Measurement of actual performance
Techniques such as personalobservation, sample checking, reports are used. It
should be done during the performance.
3. Comparing actual performance with standards

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such comparisonwill reveal the deviation between actual & desired results
4. Analyzing deviations
Deviations in key areas of business should be attended urgently. 2 methods
followed are:
Critical Point Control- controlshould focus on key result areas (KRS) which
are critical to the success
Management by Exception- it is based on belief that an attempt to control
everything results in controlling nothing
5. taking corrective action
eg. It might involve training employees if production targets are not met.
Techniques of managerial control
 Traditional techniques
1. Personal observation- it enables manager to collect first hand information. It is a
time consuming process.
2. Statistical reports- statics in the form of averages, percentages, ratios,
correlations are calculated. Graphs, tables, charts are made and compared with
the benchmarks.Reports such as
3. Breakeven analysis- manager study the relationship between cost, volumes,
profits. Breakeven point is calculated. It means the sales when there will be no
profit, no loss. Breakeven point is the point where costand revenue are equal.
4. Budgetary control – various budgets like sales budget, production,
housekeeping material budget, cash budget, capital budget, research &
development budget are made .A budget is a quantitative statement for a
definite future period of time. It focuses on specific targets, coordination
between departments, and optimum utilization of resources.
 Modern techniques
1. Return on investment- it is used to calculate the overall performance based on
the net income compared to the capital invested.
ROI= net income/ total investment
Net income can be increased by increasing the sales volume
2. Ratio analysis
Liquidity ratios- current ratio, quick ratio
Solvency ratio- debtequity ratio, interest coverage ratio,
Profitability ratio- gross profit ratio, net profit ratio, returns on capital employed
Turnover ratios- inventory ratio, stockturnover ratio, debtor’s turnover ratio
3. Responsibility accounting-there are responsibility centers such as
costcenter eg. Production department of a company,
revenue center eg. Marketing department,

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profit center eg. Food & beverage department,
investment center eg. Maintenance department
4. Management audit
It refers to a systematic appraisal/ check of the overall performance of the
management of the organisation. It is the evaluation of the functioning,
performance and effectiveness of management of an organisation. It identifies
deficiencies, monitors performance and improves coordination among
departments& update managerial policies & strategies according to the changes
in the environment.eg. CA is responsible for the financial audit.
5. PERT-( Programme Evaluation & Review Technique)
& CPM-(Critical Path Method)
These techniques deal with time scheduling & resource allocation for the
planning, scheduling & time bound project implementation.
*The project is divide din number of activities, arranged in logical sequence.
*A network diagram is prepared.
*Time estimates are prepared for each activity. In PERT 3 time estimates are
prepared shortest/ longest/ most likely time. In CPM only 1 time estimate is
made and costestimates are also made for the completion of the project.
*the longest path is identified as the critical path, no delays are allowed.
*If required the plan is modified to complete on time & within the costs.
6. MIS- Management Information System
It is a computer based information system which provides information &
supportfor effective managerial decision making. It acts as an important control
technique.MIS provides the managers systematic information processing a
massive data generated in an organisation.
7. Reports
Top management- profit & loss statements, balance sheet and position of stock
Sales management- actual sales & budgeted sales, status report on new
customers
Housekeeping department- renovation report, cleaning task report, duty rotas,
inventory report, lost & foud report, housekeeping room occupancyreport,
housekeeping budgets, new productpurchasereport, new trends in rooms,
COORDINATION
Coordination is the management of interdependence in work situations.

31
It is fitting together of interdependent efforts of individuals to attain common
goals.eg. In hospital activities of doctors, nurse, lab technicians, ward boys must be
well coordinated.
In a well coordinated enterprise
1. Each department works in harmony with other.
2. Each department , sub department ,is informed its share in the common task
3. Work schedule is attuned according to circumstances.
Distinctionbetween coordination& cooperation
Cooperation is voluntary willingness to work together to attain common goals.
Cooperation is voluntary. Departments can cooperateonly if they share information.
This is coordination.
Needfor coordination
1. Division of labour
It ensures propersynchronization between activities of different units. Eg. If
there are 8 departments I a hotel, 100 employees are working, it needs great
coordination.
2. Interdependence of units
All departments are dependent o one other.eg. Service department of a hotel
depends on kitchen department for the food. Housekeeping – maintenance,
housekeeping-front office.
3. Individual interest & organisational interest
Without coordination individuals, departments would begin to achieve their
special interests. coordination integrates the activities & objectives of separate
units of an organisation to achieve organisational goals.
Requisites for excellentcoordination
1. Direct contact
2. Early start
3. Continuity
4. Dynamism
5. Clear cut objectives
6. Simplified organisation
7. Clear definition of authority & responsibility
8. Effective communication
9. Effective leadership & supervision
Techniques of coordination
1. Rules , procedures & policies
2. Planning
3. Hierarchy
4. Direct contact
5. Task force

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6. Committees
7. Induction
8. Indoctrination
9. Incentives
10.Liaison departments
11.Workflow
Difficulty of coordination
1. Differences in orientation towards particular goals
2. Differences in time orientation
3. Differences in interpersonalorientation
4. Differences in formality of organisation
DECISION MAKING
A decision is a choice between 2 or more alternatives. It is important part of
manager’s activities.
1. It means they are choosing on basis of logic & judgment
2. It requires wisdom & experience to evaluate several alternatives & select the
best alternative.
3. Managers have a purposein mind while making decision.
Types of decisions
1. Programmed & non programmed decision
Programmed means they are taken according to policy, eg. Salary payment of
employee, who is ill,
Non programmed means managers are free according to their beliefs, attitude&
value judgment, eg. Whether to give promotion to the employees
2. Major & minor decisions
Eg. In housekeeping department renovation is a major decision as it involves
huge costs. But exchanging duties in laundry is a minor decision
3. Routine & strategic decisions
Routine decisions require little deliberation & can be taken by supervisors. But
strategic decisions are important decisions
4. Individual & group decisions
Individual decisions are taken when problem is routine in nature. Important &
strategic decisions are taken by group.
5. Simple & complex decisions
Eg. Hiring a new employee for Taj Management Trainee programme is a
complex decision as it involves many managers, steps. But hiring a houseman
for cleaning areas is a simple decision.

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Steps inrational decisionmaking
1. Reorganizing the problem
2. Deciding priorities among problems
3. Diagnosing the problem
4. Developing alternative solutions / course of action
5. Measuring & comparing the consequences ofalternative solutions
6. Converting the decision in effective action & folloe up of action
Rationality indecisionmaking
1. Economic man model
It implies that manager always selects the alternative which gives him greatest
advantage. He makes decision in planned, orderly & logical manner. But his
personal motives may come in way of making decisions.
2. Administrative man model
Hebert Simon developed this model. A manager looks for the one which is good
enough. It is guided by his experience & past. This is descriptive model of
decision making.
3. Social man model
Man is a bundle of feelings, emotions and instincts guided by unconscious
desires. So a manager is subjected to social pressures & influences while
making decisions.
Environment of decisionmaking
1. Certainty
It predicts future condition while making decisions. Eg. While making a cost
estimate foe an event , we are certain of the venue charges, transportation, food
cost, entertainment charges etc.
2. Risk
Under conditions of risk the consequences of a particular decision cannot be
specified with certainty but with probability values.eg. risk in event that the
food costwill increase.
3. Decision tree
This approachinvolves linking a number of event branches, resembling a tree.
At least 2 alternatives are evaluated.
4. Uncertainty
Eg. If Maggi has introduced new productlike new softdrink , the customers
may acceptit after 5 years of launching/ customers may reject it.
Common difficulties indecisionmaking
1. Incomplete information
2. Unsupporting environment
3. Non acceptanceby subordinates
4. Ineffective communication
5. Incorrect timing

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QUESTION BANK
Unit 1- Introduction to management
1. Define management. What are the functions of management?
2. Explain the management process ofa 5 star hotel
3. What are the different roles of a manager?
4. Explain the various levels of management.
5. What are the skills required by a successfulmanager?
6. Give the differences between management and administration.
Unit 2 - Managementtheories
1. Explain the various approaches of management.
2. Differentiate between the scientific management and bureaucracy.
3. Explain the various principles of administrative management.
4. Describe the neo classical approaches of management-
the human relations approach, the behavioral approach.
5. Discuss the modern approaches of management
OR discuss the differences between the quantitative approachand the systems
approachof modern management.
Unit 3, 4, 5 – Functions of management
Planning
1. What do you understand by planning? Give few advantages and
disadvantages of planning.
2. Explain the planning process bytaking an example.
3. Discuss the various types of plans.
Organising
4. Define organising. What is the importance of organising?
5. How will you make different departments?
6. Throw some light on the various principles of organising.
7. Draw the organisation chart of a 5 star hotel.
8. Why a manager delegates work to others? What are the 3 elements of
delegation?
Staffing
9. You are the H.R manager of a 5 * hotel. Explain the process youhave to
follow for hiring staff.
10. Define staffing. Discuss its importance
11.Differentiate between the internal and external sources ofrecruitment
12.Discuss the selection process to find a suitable candidate for any post.

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Training & development
13.A) What are the advantages of training? Discuss the various methods of
training.
B) Discuss the differences between on the job and off the job training
methods
Directing
14.What do you understanding by directing? Discuss the principles of
directing
15. Enlist the importance and characteristics of directing.
16.Discuss the various elements of direction.
17.Explain why supervision of staff is important
18.Define motivation. List the various theories of motivation.
19.Draw and explain the Maslow’s need hierarchy of motivation.
20.Enlist the financial & non financial incentives needed to motivate
employees
Leadership
21.What is leadership? What are the functions of leadership?
22.Enlist the qualities to become a good leader.
23.Discuss the various styles of leadership-
Authoritarian, participative, Delegative
24.Explain the differences between
a) Great man theory and trait theory
b) Behavioral approachand contingency approachof leadership
Communication
25.Draw the communication process /flowchart
26.What is the importance of communication in today’s business world?
27.List the differences between formal and informal communication
28.What are the barriers to effective communication?
Controlling
29.Discuss the role of controlling for the success ofon organisation.
30.Controlling has some limitations. List some limitations of controlling
31.Discuss the controlling process followed by managers.
32.Discuss any 3 traditional techniques of managerial control
33.Write short notes on a) Return on investment b) ratio analysis
c) Managerial audit d) MIS
e) PERT & CPM techniques of control
Coordination
34.What do you understand by coordination? What is the need of coordination?
35.What is the difference between coordination and cooperation?
36.Enlist the requisites of excellent coordination.
37.Discuss the techniques and difficulties in coordination.
Decisionmaking

36
38.Define decision making. What are the steps in decision making?
39.Briefly explain the types of decisions.
40.What are the factors which effect the environment of decision making?
41.Describe the various models of decision making:
economic man model, administrative man model, social man model.
42.What are the common difficulties in taking decisions?

PRINCIPLES OF MANAGEMENT BY DR. BHAVYA KHAMESRA

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