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JAMNALAL BAJAJ INSTITUTE OF MANAGEMENT STUDIES PRINCIPLE OF MANAGEMENT ASSIGNMENT PROFESSOR - MANDKE PREPARED BY S G Nadar MMM – I ROLL NO - 59 Q Explain Principle of Management Ans The Principles of Management are the essential, underlying factors that form the foundations of successful management According to Henri Fayol (1841-1925) in his book General and Industrial Management (1916), there are fourteen 'principles of management' Management principles are statements of fundamental truth These principles serve as guidelines for decisions and actions of managers They are derived through observation and analysis of events which managers have to face in practice Division of Work The specialization of the workforce, creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour By separating a small part of work, the workers speed and accuracy in its performance increases This principle is applicable to both technical as well as managerial work Authority and ResponsibilityThe issue of commands followed by responsibility for their consequences Authority means the right of a superior to give order to his subordinates; responsibility means obligation for performance This principle suggests that there must be parity between authority and responsibility They are co-existent and go together, and are two sides of the same coin DisciplineDiscipline refers to obedience, proper conduct in relation to others, respect of authority, etc It is essential for the smooth functioning of all organizations Unity of Command This principle states that every subordinate should receive orders and be accountable to one and only one superior If an employee receives orders from more than one superior, it is likely to create confusion and conflict Unity of Command also makes it easier to fix responsibility for mistakes Unity of Direction All those working in the same line of activity must understand and pursue the same objectives All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager It seeks to ensure unity of action, focusing of efforts and coordination of strength Subordination of Individual Interest The management must put aside personal considerations and put company objectives first Therefore the interests of goals of the organization must prevail over the personal interests of individuals Remuneration Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort The Degree of Centralization The amount of power wielded with the central management depends on company size Centralization implies the concentration of decision making authority at the top management Sharing of authority with lower levels is called decentralization The organization should strive to achieve a proper balance Scalar Chain Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels It is considered a chain of command It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency,defying the hierarchy of control.However the immediate superiors must be informed about the matter 10 Order - Social order ensures the fluid operation of a company through authoritative procedure Material order ensures safety and efficiency in the workplace 11 Equity Employees must be treated kindly, and justice must be enacted to ensure a just workplace Managers should be fair and impartial when dealing with employees 12 Stability of Tenure of Personnel The period of service should not be too short and employees should not be moved from positions frequently An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him 13 Initiative Using the initiative of employees can add strength and new ideas to an organization Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas Employees are likely to take greater interest in the functioning of the organization 14 Esprit de Corps This refers to the need of managers to ensure and develop morale in the workplace; individually and communally Team spirit helps develop an atmosphere of mutual trust and understanding These can be used to initiate and aid the processes of change, organization, decision making, skill management and the overall view of the management function Fayol also divided the management function into five key roles: • To organise • To plan and forecast (Prevoyance) • To command • To control • To coordinate Q Explain management and its functions Ans Management is creative problem solving This creative problem solving is accomplished through four functions of management: planning, organizing, leading and controlling The intended result is the use of an organization's resources in a way that accomplishes its mission and objectives Planning is the ongoing process of developing the business' mission and objectives and determining how they will be accomplished Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal Organizing is establishing the internal organizational structure of the organization The focus is on division, coordination, and control of tasks and the flow of information within the organization It is in this function that managers distribute authority to job holders Staffing is filling and keeping filled with qualified people all positions in the business Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function In the family business, staffing includes all paid and unpaid positions held by family members including the owner/operators Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives Controlling is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary Each of these functions involves creative problem solving Creative problem solving is broader than problem finding, choice making or decision making It extends from analysis of the environment within which the business is functioning to evaluation of the outcomes from the alternative implemented Q Explain controlling Ans: Controlling involves ensuring that performance does not deviate from standards Controlling consists of three steps, which include establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary Performance standards are often stated in monetary terms such as revenue, costs, or profits, but may also be stated in other terms, such as units produced, number of defective products, or levels of customer service The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals Managers at all levels engage in the managerial function of controlling to some degree The managerial function of controlling should not be confused with control in the behavioral or manipulative sense This function does not imply that managers should attempt to control or manipulate the personalities, values, attitudes, or emotions of their subordinates Instead, this function of management concerns the manager's role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives Controlling also requires a clear understanding of where responsibility for deviations from standards lies Two traditional control techniques are the budget and the performance audit Although controlling is often thought of in terms of financial criteria, managers must also control production/operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager's job as well as the best way to classify accumulated knowledge about the study of management Although there have been tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions Q.4 Explain Lillian gilberth Ans: Lillian Gilbreth was the mother of modern management Together with her husband Frank, she pioneered industrial management techniques still in use today She was one of the first "superwomen" to combine a career with her home life She was a prolific author, the recipient of many honorary degrees, and the mother of 12 She is perhaps best remembered for motherhood Her children wrote the popular books Cheaper by the Dozen and Belles on Their Toes about their experiences growing up with such a large and famous family But Lillian Moller Gilbreth was not only a mother; she was an engineer and an industrial psychologist Lillian excelled in high school and decided that she wanted to study literature and music Her father did not believe in higher education for women He felt they needed only enough knowledge to manage a home gracefully But Lillian persuaded him to let her attend the University of California at Berkeley while living at home and maintaining her family duties When she obtained her B.A in literature in 1900, she was the first woman to speak at a University of California commencement She went to Columbia, but illness forced a return to California after her first year Undaunted, she went back to Berkeley and received a master's degree in literature in 1902 She celebrated by planning a vacation She spent some time in Boston before embarking, and there she met her future husband Frank Gilbreth, who never went to college, was interested in efficiency in the workplace His enthusiasm for the subject was contagious He proposed to Lillian Moller three weeks after her return from Europe, and together they began their study of scientific management principles Frank started a consulting business and Lillian worked at his side They began their family and in 1910 moved to Rhode Island, where Gilbreth took her doctorate in psychology at Brown University in 1915 with four young children in tow at the ceremony But where Frank was concerned with the technical aspects of worker efficiency, Lillian was concerned with the human aspects of time management Her ideas were not widely adopted during her lifetime, but they indicated the direction that modern management would take She recognized that workers are motivated by indirect incentives (among which she included money) and direct incentives, such as job satisfaction Her work with Frank helped create job standardization, incentive wage-plans, and job simplification Finally, she was among the first to recognize the effects of fatigue and stress on time management Lillian Gilbreth continued her work alone after Frank's death in 1924 In 1926, she became the first woman member of the American Society of Mechanical Engineers She went to Purdue in 1935 as a professor of management and the first female professor in the engineering school In her consulting business, she worked with GE and other firms to improve the design of kitchens and household appliances She even created new techniques to help disabled women accomplish common household tasks She did not retire from professional work until she was in her 80s She traveled widely, speaking and writing about management issues In 1966, she won the Hoover Medal of the American Society of Civil Engineers She died at the age of 92, the recipient of more than a dozen honorary degrees Her ability to combine a career and family led to her being called, by the California Monthly in 1944, "a genius in the art of living." Q What are the contribution of Frederick Taylor Ans:Frederick Taylor - Scientific Management Description Frederick Taylor, with his theories of Scientific Management, started the era of modern management In the late nineteenth and early twentieth centuries, Frederick Taylor was decrying the " awkward, inefficient, or ill-directed movements of men" as a national loss He advocated a change from the old system of personal management to a new system of scientific management Under personal management, a captain of industry was expected to be personally brilliant Taylor claimed that a group of ordinary men, following a scientific method would out perform the older "personally brilliant" captains of industry Taylor consistently sought to overthrow management "by rule of thumb" and replace it with actual timed observations leading to "the one best" practice Following this philosophy he also advocated the systematic training of workers in "the one best practice" rather than allowing them personal discretion in their tasks He believed that " a spirit of hearty cooperation" would develop between workers and management and that cooperation would ensure that the workers would follow the "one best practice." Under these philosophies Taylor further believed that the workload would be evenly shared between the workers and management with management performing the science and instruction and the workers performing the labor, each group doing "the work for which it was best suited." Taylor's strongest positive legacy was the concept of breaking a complex task down in to a number of small subtasks, and optimizing the performance of the subtasks This positive legacy leads to the stop-watch measured time trials which in turn lead to Taylor's strongest negative legacy Many critics, both historical and contemporary have pointed out that Taylor's theories tend to "dehumanize" the workers To modern readers, he stands convicted by his own words: " … in almost all of the mechanic arts, the science which underlies each act of each workman is so great and amounts to so much that the workman who is best suited to actually doing the work is incapable of fully understanding this science, without the guidance and help of those who are working with him or over him, either through lack of education or through insufficient mental capacity." And: "to work according to scientific laws, the management must takeover and perform much of the work which is now left to the men; almost every act of the workman should be preceded by one or more preparatory acts of the management which enable him to his work better and quicker than he otherwise could." The Principles of Scientific Management Environment Taylor's work was strongly influenced by his social/historical period His lifetime (18561915) was during the Industrial Revolution The overall industrial environment of this period is well documented by the Dicken's classic Hard Times or Sinclar's The Jungle Autocratic management was the norm The manufacturing community had the idea of interchangeable parts for almost a century The sciences of physics and chemistry were bringing forth new miracles on a monthly basis One can see Taylor turning to "science" as a solution to the inefficiencies and injustices of the period His idea of breaking a complex task into a sequence of simple subtasks closely mirrors the interchangeable parts ideas pioneered by Eli Whitney earlier in the century Furthermore, the concepts of training the workers and developing "a hearty cooperation" represented a significant improvement over the feudal human relations of the time Successes Scientific management met with significant success Taylor's personal work included papers on the science of cutting metal, coal shovel design, worker incentive schemes and a piece rate system for shop management Scientific management's organizational influences can be seen in the development of the fields of industrial engineering, personnel, and quality control From an economic standpoint, Taylorism was an extreme success Application of his methods yielded significant improvements in productivity Improvements such as Taylor's shovel work at Bethlehem Steel Works (reducing the workers needed to shovel from 500 to 140) were typical Q Contribution of George Elton Mayo's Hawthorne Experiments Ans:- Henri Fayol - Administration The Studies The Hawthorne Studies (or experiments) were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School professor Elton Mayo examined productivity and work conditions Studies grew out of preliminary experiments at the plant from 1924 to 1927 on the effect of light on productivity Those experiments showed no clear connection between productivity and the amount of illumination but researchers began to wonder what kind of changes would influence output Variables Affecting Productivity Specifically, Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperature and humidity In the process, he stumbled upon a principle of human motivation that would help to revolutionize the theory and practice of management Mayo took six women from the assembly line, segregated them from the rest of the factory and put them under the eye of a supervisor who was more a friendly observer than 10 • Reflecting Organisation Pattern The control should reflect organisation pattern by focussing attention on positions in the organisation structure where deviations are corrected Organisation structure can act as a vehicle not only for coordinating the activities in the organisation but also as a tool to maintain effective control Q 19 What are steps in control Ans Establishment of the control standard Every function in the organisation begins with plans which are goals, objectives and targets to be achieved In light of this, standards are established which are the criteria against which performance will be measured For setting standards it is important to precisely and concisely identify the results, which are desired Precision in the standards is important In some areas standards may be more precise while in some other areas decision on precise standards may be difficult Standards can be precisely defined or quantified in terms of volume of products, costs, revenue investments etc The can also be expressed in qualitative terms if there is difficulty in quantifying the same After setting the standards it is important to decide the level of achievement or performance which is to be regarded as good or satisfactory There are important characteristics of a particular work which can be called as good performance Important characteristics should be considered while determining level of performance, output, resources, expenditure, etc The desirable level of performance should be reasonable and flexible Measurement of Performance The second major step is measurement of performance This step involves measuring performance in respect of work in terms of control standards The measurement of performance against standards should be on future basis so that deviations can be detected in advance of the actual occurrence and avoided by appropriate means Appraisal of actual or expected performance becomes an easy task if standards are properly determined and method of measuring performance can be expressed in physical and monitory terms such as production units, sales volume, profits, etc as these are easily and precisely measurable The performance which is qualitative and intangible cannot be measured precisely For this purpose some other techniques have to be used It is not necessary that all measurements are rigidly quantitative Accordingly to Peter Drucker, it is very much desirable to have a clear and common measurement in all key areas of business In his opinion, ofr measuring tangible and intangibles performance, measurement must be 29 a Clear b Simple and rational c Relevant d Reliable, self announcing and understandable Comparing actual and standard performance The third major step of control process is comparing actual and standard performance It involves two steps a Finding out extent of deviation b Identifying the causes of such deviation c When adequate standards are developed and actual performance is measured precisely and accurately, any variations will be clearly revealed Management may have information regarding what performance data charts graphs and written reports besides observing to keep itself informed about the performance in different segments of ergonomics Such performance is compared with the standards one to find out whether various segments and individuals are progressing in the right direction.When the standards are achieved no further managerial action is required and control process is complete However, standards may not achieved in all cases and the extent of deviations may vary from case to case Hence management has to naturally determine whether strict compliance with standards is required or whether variations are permissible and to what limit When the deviation between the standards and actual performance is beyond the prescribed limit an analysis is made of the causes of such deviation For control and planning purposes ascertain the causes of such deviation is important along with computations of variations because such analysis helps to take proper control action The analysis will pin point the person responsible and he can take necessary corrective action Measurement of performance analysis of standard deviation and their causes may be of no use unless they are communicated to person concerned so that corrective action can be take This can take form of reports 30 Correction of Deviations This is the last step in control process which r3equires that action should be taken to maintain the desired degree of control in the system or operation An organisation is not a self regulating is not self regulating system like a thermometer which operates in a state of equilibrium put there by virtue of engineering design In business organisation the type of automatic control can not be established because of so many factors involved in the total environment In fact correction of standard deviation in management control process which may involve effect of various management functions Q 20 Explain contribution of Chester Barnard Ans He propounded Theories – (I) I Organisations are in nature of co-operative systems II Formal Organisations III Informal Organisations IV Theory of Authority V Function of the Executive Organisations are in nature of co-operative systems Goals: Survival of the organisation Adjustment to External Environment Analyse function of Executives at all levels (a) Each individual is discrete individual (b) Individual interact with others in social relationship but that is voluntary involvement Negative side is motives Positive side is efficiency and effectiveness Effectiveness- If organisational goal is achieved, it is Effectiveness Efficiency – Efficiency is achievement of individual goals (III) Informal Organisations Communication 31 (IV) Maintenance of cohesiveness Maintenance of feelings of integrity and self respect Theory of Authority Authority should be accepted by people down the line There are two aspect to the authority – (i) Subjective/Personal – Respecting the Chair (ii) Objective – Assess the person objectively and accept the authority If the two aspects gel, it is good for the organisation (V) Function of the Executive Provide a system of communication Promote the securing of personal efforts To formulate and define purpose Q 21 Explain Departmentation Ans Four Patterns The four types of activity patterns of departmentation are listed below Category Activity Organizing Pattern Functional Process Time (Shift) Knowledge/discipline Examples In a personnel office: • Classification • Staffing • Employee Development In a social services office: • Claims process • Customer complaint process • Internal administration process At a maintenance facility: • Day shift • Swing shift • Tuesday-Saturday shift In a training organization, work assignments according to subject matter: • Acquisition/Contracting • Management • Statistics/Quantitative Methods 32 Q 22 Explain Functional departmentation Ans The characteristics of the functional pattern are described below Characteristic Description Division of labor Separate functions are assigned to separate organizational elements, such as: • finance • personnel • supply, or • manufacturing Hierarchy Levels of structure are subdivided For example: • directorate • division • branch • section, and • unit Unity of command Clear command, control, and reporting relationships, which follow the hierarchy and division of labor Specialization Each functional element specializes and achieves excellence in its own work Career ladders Hierarchy provides potential progression from worker to supervisor to manager to executive Communication Vertical communication is emphasized and lateral communication is discouraged Official communication processes are formal Assignment of Responsibility is fragmented by function, responsibility necessitating extensive coordination (processing delays) before actions or decisions are completed Illustration The diagram below illustrates the functional pattern Civilian Personnel Office Personnel Officer Training Classification Employee Relations Staffing Q 23 Explain process departmentation Ans Characteristics The characteristics of the process pattern are described below 33 Characteristic Cross-functional Hierarchy Specialization Boundaries Description Core processes cross-functional boundaries so that a complete product or service can be delivered Process patterns emphasize lateral or horizontal communication and work flow They reduce vertical hierarchy Process patterns can utilize both specialized and multi-functional employees, depending upon how process steps are grouped into jobs (see job design principles in Chapter 6) Process patterns have clear boundaries at the beginning and end of each process Sub-processes are nested within major processes Disadvantages The process pattern is so different from the functional pattern that it requires major investment of time, money, and manpower resources to restructure and transform the organization Advantages Illustration The process pattern enables dramatic increases in cycle time, product quality, customer service, and cost efficiency This is because the process pattern eliminates unnecessary steps and encourages horizontal communication It is most effective when performance measures are clear The diagram below illustrates the process pattern Personnel Office Personnel Officer Hiring Process Management Services Process Training Process Employee Services Process Q 24 Explain time departmentation Ans Characteristics of a time or shift pattern are listed in the table below Characteristic Division of labor Description Work shifts can be used in combination with other patterns of departmentation, such as the functional, knowledge, product, process, or customer patterns Note: The division of labor and other characteristics will depend upon which secondary pattern of organizing is used 34 Hierarchy Levels of authority may be established For example: • employee • work leader • shift supervisor • department supervisor Unity of command Specialization Clear command, control, and reporting relationships, which follow the hierarchy and division of labor Each employee may specialize and achieve excellence in its own work for the assigned shift Hierarchy provides potential progression from employee to leader or supervisor Vertical communication is emphasized and lateral communication may be discouraged Official communication processes are formal Responsibility is fragmented by shift, necessitating coordination (possible delays) if the product or service being delivered involves more than one shift Career ladders Communication Assignment of responsibility Disadvantag The time or shift pattern has the disadvantage of weak lateral communication across shifts For example, if a customer has a requirement that extends from one shift into the next, how is inter-shift coordination accomplished? Other disadvantages depend upon the secondary patterns of organizing which may be used (e.g., functional, knowledge, customer, product) However, premium pay is usually required for night or weekend shifts, thereby increasing personnel costs Advantages The time or shift pattern has the advantage of utilizing facilities more efficiently—two or more shifts can perform work with the same building, tools, or equipment This can create certain economies of scale The time or shift pattern is most effective when products or services must be developed or delivered immediately and direct customer communication is necessary Illustration The diagram below illustrates the time/shift pattern Shipping Division Division Chief Mon-Fri Day Shift Mon-Fri Swing Shift Tues-Sat Day Shift Tues-Sat Swing Shift Q 25 Explain knowledge departmentation Ans The knowledge pattern groups work assignments to employees or 35 operating units according to the subject matter or skills involved This pattern has characteristics similar to the functional pattern, as shown in the table below Characteristic Description Division of labor Separate functions are assigned to separate employees or organizational elements, such as: • contract law • labor law • torts in a legal firm Hierarchy Unity of command Specialization Career ladders Communication Assignment of responsibility Disadvantag Levels of structure are subdivided For example: • college • department • course in a university Clear command, control, and reporting relationships, which follow the hierarchy and division of labor Each functional element specializes and achieves excellence in its own work Hierarchy provides potential progression from professional to department chair/supervisor and possibly managing partner or executive Vertical communication is emphasized and lateral communication is discouraged Official communication processes are formal Responsibility is fragmented by subject matter, necessitating extensive coordination (processing delays) before actions or decisions are completed The knowledge pattern has the disadvantage of weak lateral communication among departments or professional employees For example, if a customer has a multi-disciplinary requirement, which department or employee should respond? How can multiple disciplines coordinate for effective delivery of a product or service? A second disadvantage is potentially long cycle time because of the need for lateral communication mentioned above Advantages The knowledge pattern has the advantage of helping the broader organization develop new products, services, skills, or other discoveries It aids in the development of enhanced core competencies The knowledge pattern is most effective when the products or services required by customers are not multidisciplinary—when a single subject matter expert can offer the appropriate solution 36 Illustration The diagram below illustrates the knowledge pattern Post Legal Office Legal Officer Contracts Labor Ethics/Integrity FOIA Q 26 Explain Delegation and Decentralization Ans Basis Delegation Decentralization Meaning Managers delegate some of their function and authority to their subordinates Right to take decisions is shared by top management and other level of management Scope Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases Scope is wide as the decision making is shared by the subordinates also Responsibility Responsibility remains of the managers and cannot be delegated Responsibility is also delegated to subordinates Freedom of Work Freedom is not given to the subordinates as they have to work as per the instructions of their superiors Freedom to work can be maintained by subordinates as they are free to take decision and to implement it Nature It is a routine function It is an important decision of an enterprise Need on purpose Delegation is important in all concerns whether big or small No enterprises can work without delegation Decentralization becomes more important in large concerns and it depends upon the decision made by the enterprise, it is not compulsory Grant of The authority is granted by one It is a systematic act which takes place at all 37 Authority individual to another levels and at all functions in a concern Grant of Responsibility Responsibility cannot be delegated Authority with responsibility is delegated to subordinates Degree Degree of delegation varies from concern to concern and department to department Decentralization is total by nature It spreads throughout the organization i.e at all levels and all functions Process Delegation is a process which explains superior subordinates relationship It is an outcome which explains relationship between top management and all other departments Essentiality Delegation is essential of all kinds of concerns Decentralization is a decisions function by nature Significance Delegation is essential for creating the organization Decentralization is an optional policy at the discretion of top management Withdrawal Delegated authority can be taken back It is considered as a general policy of top management and is applicable to all departments Freedom of Action Very little freedom to the subordinates Considerable freedom Q 27 What is leadership and give good qualities of leadership Ans Definitions Leadership is the ability of a person to influence a group of people to work with zeal and confidence towards the achievement of goals Leadership is the quality of behaviour of individual where by they guide people or their activities in an organised effort An act or process of influencing people to strive willingly and enthusiastically towards achievement of common goals 38 Qualities of a Good Leader Good personality Intelligent Initiative Innovative Self confidence Good Communication Skills Coach and guide Proper judgement Knowledge of Human Skills 10 Administrative Skills 11 Discipline 12 Patience 13 Visionary 14 Willingness to lead from front 15 Strategist 16 Decision Making ability 17 Integrity 18 Conviction Q 28 Explain styles of leadership Ans Styles of Leadership Every manager develops a style in managing the activity Such styles vary from leader to leader, situation to situation and organisation to organisation Following are the popular styles of management: Authoritarian/Autocratic Style This style demands absolute obedience and subservience from the subordinates Important characteristics of this style of leadership are: (a) (b) (c) Superior makes all the decisions Superior does not consult subordinates Superior is responsible for the decisions taken Utility and Application This style is useful only in short run and is counterproductive in the long run However, it is the most suitable style for crisis and disaster management/emergency situations 39 Bureaucratic Style In this style of leadership decisions are taken as per laid down set of rules without any deviation (a) Decisions are taken within the set of laid down rules in the letter (followed as written) (b) Subordinates are not consulted (c) Avoids responsibility (d) All situations are dealt in a mechanical manner with little or no regard to emergency/priority/spirit or even the organisational goals (i) Delay in work and unnecessary increase in paper work Utility and Application The decision making is very methodical and little bias Has high accountability and therefore good for larger organisations However, it delays decision making and looses sight of organisational goals in favour of application of the written rules Laissez Fair Subordinates have full freedom of action and decision-making (a) Superior allows his subordinates full freedom to act and decide with little or minimal interference (b) Superior acts more as a guide in arriving at decisions (c) Superior and subordinates share the responsibility/ Utility and Application intellectual/creativity This particular style of leadership is ideal for intensive software development etc organisations like Advertising/Media/research/ However, it is often disastrous for production and marketing organisations Paternalistic Style In this style, as the name suggests, the leader acts as the father figure for the subordinates (a) Creates family atmosphere (b) Leader is treated as father figure by subordinates Utility and Application This style has very high success rate However, owing to its highly time and effort intensive demands on the leader due to his personal 40 involvement at the micro level in the personal affairs of the subordinates, this style is suitable for only small organisations Democratic Style This style has two sub branches: (a) (b) Consultative Style (i) Superior consults every subordinates before taking any decision (ii) Superiors are open-minded and encourage constructive suggestions from subordinates (iii) Superior takes the decision after consultations none of which are binding on him Participative Style (i) Superior consults his subordinates and allows them to take part in the decision making process It is mostly by majority decision Both leader and the group shares the responsibility (iii) Groups decision is generally final and overrides the personal preferences/choices of the leader Missionary Style (a) Social Club (b) Believe in good fellowship/friendship (c) Believe in warm and pleasant social atmosphere Neurocratic Style (Hitler) (a) (b) (ii) Highly task oriented style Highly sensitive leadership Situational Style Style varies depending upon situation This is the most suitable style for the military leaders, who may have to don different styles for peace time, war time, training and emergencies Q29 Explain the Importance of communication for manager Ans 41 Communication may be one of the essential life skills, since it's clearly related to success with family, friends and success in the workplace If you look at successful people, you'll almost always find they have the ability to communicate with others, either one-to-one or in groups, far more effectively than less successful people What would an organization be like without communication? An educated guess would be that it would be a very lonely place Not only could teams not coordinate their efforts and individuals seek feedback from and communicate their successes to their managers, but also customers would have a pretty tough time placing orders, products would have a pretty tough time being produced, and services would have a pretty tough time being delivered If you couldn’t communicate with coworkers, team members, customers, suppliers, and others with whom you routinely business, you really wouldn’t have an organization at all In short, organizations are built on a foundation of communication; communication is the physical and mental network that ties everyone— both within and without the organization— together It’s the oil that keeps the organization running smoothly One of the important ingredients for effective and efficient controlling or directing is communication But, while communication is simple when an organization has only one or two people in it, the complexity of communication grows in direct proportion to the size of the organization In larger organizations, communication occurs less in face-to-face encounters than in increasingly impersonal was such as voice mail and e-mail messages And, as organizations grow and its members are dispersed across town— or around the globe—communication becomes that much more difficult as distance and other obstacles impede clear and effective communication Communication in management is always a pressing problem Is it any surprise that communication in many organizations is a problem? The truth is that, although communication is critically important to the success of organizations—perhaps more so than ever before—it is often, at best, dysfunctional, and, at worst, terribly broken As organized enterprises grow and move at a constantly increasing pace, it becomes more and more difficult simply to keep everybody in management informed of current developments It is a matter of some importance to understand that every person in organized enterprise shares the responsibility for good communication It is not only a top manager who may initiate while all others receive, nor is it only the subordinate who originates while superiors listen It is a fact that everyone is both the originator and receiver of information, 42 depending upon the authority relationships, functional relationships and cooperative relationships which exist in an enterprise Q.30 Ilustrate Span of Control Ans Span of Control • Number of employees that a manager can efficiently and effectively manage • Determines the number of levels and managers in an organization • The wider the span, the more efficient the organization • Appropriate span influenced by: • The skills and abilities of employees • The complexity of tasks performed • Availability of standardized procedures • Sophistication of organization’s information system 43 ... Industrial Management (1916), there are fourteen 'principles of management' Management principles are statements of fundamental truth These principles serve as guidelines for decisions and actions of. ..Q Explain Principle of Management Ans The Principles of Management are the essential, underlying factors that form the foundations of successful management According to Henri... broad set of activities, and often considered one of the major functions of management Therefore, there are a wide variety of topics in organizing The following are some of the major types of organizing

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