Monthly Archive July 2015

Evaluation And Grading of Pokhara University

Evaluation And Grading

Your performance will be evaluated and graded as per the evaluation and grading system of Pokhara University. Your performance in a course is evaluated internally by the concerned faculty member and externally by the Office of the Controller of Examinations (COE). The pass mark in each course will be a minimum Grade of D or GPA of 1.00 . However, students must secure a minimum CGPA (Cumulative Grade Point Average) of C or 2.0 at the end of the program.

Grade Honor points(CPGA) Description
A 4.0 Outstanding
A- 3.7 Excellent
B+ 3.3 Very good
B- 3.0 good
B 2.7 fair
C+ 2.3 fair
C- 2.0 fair
C 1.7 poor
D+ 1.3 poor
D 1.0 poor
F 0.0 failure



Journal entries

Question: Prepare  Journal entries, T-Accounts and Trial balance

April 1: Article of  incorporation are filed with the state and 100000 shares of common stock  are issued for 100000 in cash. April 4: A six month promissory note is issued at the bank .Interest at an annual rate of 9% per annum will be repaid in six months along with the principal amount of loan of 50000. April 8: Land and a storage shed are acquired for a lump sum of 80000.On the basis of an appraisal ,25% of the value is assigned to the land and remainder to the building. April 10: Mowing equipment is purchased from a supplier at a total cost of 25000.A own payment of 10000 is made with a remainder due by the end of the month. April 18: Customers are billed for services provided during the first half of the month. The total amount billed of 5500 is due within ten days. April 27: The remaining balance due on the mowing equipment is paid to the supplier. April 28: The total amount of 5500 due from customers is received. April 30: Customers are billed for services provided during the month .The total amount billed is 9850. April 30: Salaries and wages of 4650 for the month of April are paid        

 Answer:                                              Garderner  Corporation                                                       Journal Entries  

Date Particulars Debit Credit
April 1 Capital Capital Stock (To record issuance of capital stock exchange for cash) 100000 100000
April 4 Cash 9 % Notes Payable (To record loan taken from bank) 50000 50000
April 8 Land Storage Shed Cash (To record purchase of land and storage shed for cash) 20000 60000     80000
April 10 Mowing Equipment Cash Accounts Payable (To record purchase of mowing equipment on cash and credit) 25000   10000 15000
April 18 Accounts Receivable Service Revenue (To record service provided on credit) 5500   5500
April 27 Accounts Payable Cash (To record payment of due amount on cash) 15000   15000
April 28 Cash Accounts receivable (To record cash collection from receivable) 5500   5500
April 30 Account Receivable Service Revenue (To record service provided on credit) 9850   9850
April 30 Wages and Salary Cash (To record payment of salary and wages on cash) 4650   4650
  Total 29550 29550

                                       Gardener Corporation                                     Trial Balance Particulars Debit Credit
1 Cash 45850  
2 Capital stock   100000
3 Notes payable   50000
4 Land 20000  
5 Storage shed 60000  
6 Equipment 25000  
7 Accounts payable 9850  
8 Service revenue   15350
9 Wages and salary 4650  
  Total 165350 165350


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Famous personalities

  Some of the famous Personalities

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Name Occupation Nationality IQ
Abraham Lincoln President USA IQ 128
Adolf Hitler Nazi leader Germany IQ 141
Al Gore Politician USA IQ 134
Albert Einstein Physics USA IQ 160
Albrecht von Haller Medical scientist Switzerland IQ 190
Alexander Pope poet, writer England IQ 180
Andrew J. Wiles Mathematics England IQ 170
Andrew Jackson President USA IQ 123
Andy Warhol Artist USA IQ 86
Anthonis van Dyck Painter Netherlands IQ 155
Antoine Arnauld theologian France IQ 190
Arne Beurling Mathematics Sweden IQ 180
Arnold Schwarzenegger Actor / policies Austria IQ 135
Baruch Spinoza philosopher Netherlands IQ 175
Benjamin Franklin writer, scientist, politician USA IQ 160
Benjamin Netanyahu Prime Minister Israel IQ 180
Bill Gates founder of Microsoft USA IQ 160
Bill (William) Jefferson Clinton President USA IQ 137
Blaise Pascal Mathematics, religious philosopher France IQ 195
Bobby Fischer chess player USA IQ 187
Michelangelo Buonarroti artist, poet, architect Italy IQ 180
Carl von Linn botanist Sweden IQ 165
Charles Darwin naturalist England IQ 165
Charles Dickens Writer England IQ 180
Christopher Michael Langan scientist, philosopher USA IQ 195
Clive Sinclair inventor England IQ 159
David Hume philosopher, politician Scotland IQ 180
Dr David Livingstone doctor Scotland IQ 170
Donald Byrne chess player Ireland IQ 170
Emanuel Swedenborg scientist, philosopher Sweden IQ 205
Francis Galton scientist, doctor England IQ 200
Friedrich Wilhelm Joseph von Schelling philosopher Germany IQ 190
Galileo Galilei physicist, astronomer, philosopher Italy IQ 185
Geena (Virginia) Elizabeth Davis Actress USA IQ 140
Georg Friedrich Händel Composer Germany IQ 170
Georg Wilhelm Friedrich Hegel philosopher Germany IQ 165
George Berkeley philosopher Ireland IQ 190
George H. Choueiri Chief ACE Lebanon IQ 195
George Eliot (Mary Ann Evans) Writer England IQ 160
George Sand (Aurore Lucile Dupin Amantinr) Writer France IQ 150
George Walker Bush President USA IQ 125
George Washington President USA IQ 118
Gottfried Wilhelm von Leibniz scientist, a lawyer Germany IQ 205
Hans Dolph Lundgren Actor Sweden IQ 160
Hans Christian Andersen writer, poet Denmark IQ 145
Hillary Diane Rodham Clinton American policy USA IQ 140
Hjalmar Horace Greeley Schacht Reichsbanks President Germany IQ 143
Honoré de Balzac (Honore Balzac) Writer France IQ 155
Hugo Grotius (De Groot Huig) Lawyer Netherlands IQ 200
Hypatia of Alexandria philosopher, mathematician Alexandria IQ 170
Immanuel Kant philosopher Germany IQ 175
Isaac Newton Scientist England IQ 190
Jakob Ludwig Felix Mendelssohn Bartholdy Composer Germany IQ 165
James Cook Explorer England IQ 160
James Watt physics, technology Scotland IQ 165
James Woods Actor USA IQ 180
Jayne Mansfield USA IQ 149
Jean M. Auel Writer Canada IQ 140
Jodie Foster Actor USA IQ 132
Johann Sebastian Bach Composer Germany IQ 165
Johann Strauss Composer Germany IQ 170
Johann Wolfgang von Goethe Germany IQ 210
Johannes Kepler mathematician, physicist, astronomer Germany IQ 175
John Adams President USA IQ 137
John F. Kennedy Ex-President USA IQ 117
John H. Sununu Chief of Staff USA IQ 180
John Quincy Adams President USA IQ 153
John Stuart Mill Genius England IQ 200
JohnLocke philosopher England IQ 165
Jola Sigmond Teacher Sweden IQ 161
Jonathan Swift writer, theologian England IQ 155
Joseph Haydn Composer Austria IQ 160
Joseph Louis Lagrange mathematician, astronomer Italy / France IQ 185
Judith Polgár chess player Hungary IQ 170
Kim Ung-Yong Korea IQ 200
Garry Kasparov Kimovitch chess player Russia IQ 190
Leonardo da Vinci Genius Italy IQ 220
Lord Byron poet, writer England IQ 180
Louis Napoleon Bonaparte Emperor France IQ 145
Ludwig van Beethoven Composer Germany IQ 165
Ludwig Wittgenstein philosopher Austria IQ 190
Madame de Stael philosopher France IQ 180
Madonna Singer USA IQ 140
Marilyn vos Savant Writer USA IQ 186
Martin Luther philosopher Germany IQ 170
Miguel de Cervantes Writer Spain IQ 155
Nicolaus Copernicus Astronomer Poland IQ 160
Nicole Kidman Actor USA IQ 132
Paul Allen Co-Microsoft USA IQ 160
Philip Emeagwali Mathematics Nigeria IQ 190
Phillippe Melanchthon theologian Germany IQ 190
PierreSimon de Laplace Astronomer, mathematician France IQ 190
Plato philosopher Greece IQ 170
Ralph Waldo Emerson Writer USA IQ 155
Raphael Artist Italy IQ 170
Rembrandt van Rijn Artist Netherlands IQ 155
Ren Descartes mathematician, philosopher France IQ 185
Richard Nixon Ex-President USA IQ 143
Richard Wagner Composer Germany IQ 170
Robert Byrne chess player Irland IQ 170
Rousseau Writer France IQ 150
SARPA theologian, historian Italy IQ 195
Shakira Singer Colombia IQ 140
Sharon Stone Actress USA IQ 154
Sofia Kovalevskaya mathematician, writer Sweden / Russia IQ 170
Stephen W. Hawking Physics England IQ 160
Thomas Chatterton poet, writer England IQ 180
Thomas Jefferson President USA IQ 138
Thomas Wolsey Politician England IQ 200
Truman Cloak IQ 165
Ulysses S. Grant President USA IQ 110
Voltaire Writer France IQ 190
William James cheat USA IQ 200
William Pitt (the Younger) Politician England IQ 190
Wolfgang Amadeus Mozart Composer Austria IQ 165


Computer fundamentals Questions

Computer fundamentals Questions

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a. Universal Automatic Computer

b. Universal Array Computer

c. Unique Automatic Computer

d. Unvalued Automatic Computer

2. CD-ROM stands for

a. Compactable Read Only Memory

b. Compact Data Read Only Memory

c. Compactable Disk Read Only Memory

d. Compact Disk Read Only Memory

3. ALU is

a. Arithmetic Logic Unit
b. Array Logic Unit
c. Application Logic Unit
d. None of above

4. VGA is

a. Video Graphics Array
b. Visual Graphics Array
c. Volatile Graphics Array
d. Video Graphics Adapter

5. IBM 1401 is

a. First Generation Computer
b. Second Generation Computer
c. Third Generation Computer
d. Fourth Generation Computer

6. MSI stands for

a. Medium Scale Integrated Circuits
b. Medium System Integrated Circuits
c. Medium Scale Intelligent Circuit
d. Medium System Intelligent Circuit

7. The capacity of 3.5 inch floppy disk is

a. 1.40 MB
b. 1.44 GB
c. 1.40 GB
d. 1.44 MB

8. The first computer introduced in Nepal was

a. IBM 1400
b. IBM 1401
c. IBM 1402
d. IBM1402

9. WAN stands for

a. Wap Area Network
b. Wide Area Network
c. Wide Array Net
d. Wireless Area Network

10. MICR stands for

a. Magnetic Ink Character Reader
b. Magnetic Ink Code Reader
c. Magnetic Ink Cases Reader
d. None

11)EBCDIC stands for

a. Extended Binary Coded Decimal Interchange Code

b. Extended Bit Code Decimal Interchange Code

c. Extended Bit Case Decimal Interchange Code

d. Extended Binary Case Decimal Interchange Code

12. BCD is

a. Binary Coded Decimal

b. Bit Coded Decimal

c. Binary Coded Digit

d. Bit Coded Digit

13. ASCII stands for

a. American Stable Code for International Interchange

b. American Standard Case for Institutional Interchange

c. American Standard Code for Information Interchange

d. American Standard Code for Interchange Information

14. Which of the following is first generation of computer


b. IBM-1401

c. CDC-1604

d. ICL-2900

15. Chief component of first generation computer was

a. Transistors

b. Vacuum Tubes and Valves

c. Integrated Circuits

d. None of above

16. FORTRAN is

a. File Translation

b. Format Translation

c. Formula Translation

d. Floppy Translation

17. EEPROM stand for a. Electrically Erasable Programmable Read Only Memory b. Easily Erasable Programmable Read Only Memory c. Electronic Erasable Programmable Read Only Memory d. None of the above

18. Second Generation computers were developed during a. 1949 to 1955 b. 1956 to 1965 c. 1965 to 1970 d. 1970 to 1990

19. The computer size was very large in a. First Generation b. Second Generation c. Third Generation d. Fourth Generation

20. Microprocessors as switching devices are for which generation computers a. First Generation b. Second Generation c. Third Generation d. Fourth Generation

21. Which of the following devices can be sued to directly image printed text?

a. OCR

b. OMR


d. All of above

22. The output quality of a printer is measured by

a. Dot per inch

b. Dot per sq. inch

c. Dots printed per unit time

d. All of above

23. In analog computer

a. Input is first converted to digital form

b. Input is never converted to digital form

c. Output is displayed in digital form

d. All of above

24. In latest generation computers, the instructions are executed

a. Parallel only

b. Sequentially only

c. Both sequentially and parallel

d. All of above

25. Who designed the first electronics computer – ENIAC?

a. Van-Neumann

b. Joseph M. Jacquard

c. J. Presper Eckert and John W Mauchly

d. All of above

26. Who invented the high level language c?

a. Dennis M. Ritchie

b. Niklaus Writh

c. Seymour Papert

d. Donald Kunth

27. Personnel who design, program, operate and maintain computer equipment refers to

a. Console-operator

b. Programmer

c. Peopleware

d. System Analyst

28. When did arch rivals IBM and Apple Computers Inc. decide to join hands?

a. 1978

b. 1984

c. 1990

d. 1991

29. Human beings are referred to as Homosapinens, which device is called Sillico Sapiens?

a. Monitor

b. Hardware

c. Robot

d. Computer

30. An error in software or hardware is called a bug. What is the alternative computer jargon for it?

a. Leech

b. Squid

c. Slug

d. Glitch

31. Modern Computer are very reliable but they are not

a. Fast

b. Powerful

c. Infallible

d. Cheap

32. What is the name of the display feature that highlights are of the screen which requires operator attention?

a. Pixel

b. Reverse video

c. Touch screen

d. Cursor

33. IMB launched its first personal computer called IBM-PC in 1981. It had chips from Intel, disk drives from Tandon, operating system from Microsoft, the printer from Epson and the application software from everywhere. Can you name the country which contributed the video display?

a. India

b. China

c. Germany

d. Taiwan

34. Personal computers use a number of chips mounted on a main circuit board. What is the common name for such boards?

a. Daughter board

b. Motherboard

c. Father board

d. Breadboard

35. In most IBM PCs, the CPU, the device drives, memory expansion slots and active components are mounted on a single board. What is the name of this board?

a. Motherboard

b. Breadboard

c. Daughter board

d. Grandmother board

36. What is meant by a dedicated computer?

a. Which is used by one person only

b. Which is assigned one and only one task

c. Which uses one kind of software

d. Which is meant for application software

37. The system unit of a personal computer typically contains all of the following except:

a. Microprocessor

b. Disk controller

c. Serial interface

d. Modem

38. A computer program that converts an entire program into machine language is called a/an

a. Interpreter

b. Simulator

c. Compiler

d. Commander

39. A computer program that translates one program instructions at a time into machine language is called a/an

a. Interpreter

b. CPU

c. Compiler

d. Simulator

40. A small or intelligent device is so called because it contains within it a

a. Computer

b. Microcomputer

c. Programmable

d. Sensor



41)The ALU of a computer responds to the commands coming from

a. Primary memory

b. Control section

c. External memory

d. Cache memory

42. The act of retrieving existing data from memory is called

a. Read-out

b. Read from

c. Read

d. All of above

43. All modern computer operate on

a. Information

b. Floppies

c. Data

d. Word

44. Instructions and memory address are represented by

a. Character code

b. Binary codes

c. Binary word

d. Parity bit

45. Which of the following code used in present day computing was developed by IBM Corporation?


b. Hollerith Code

c. Baudot Code

d. EBCDIC Code

46. What is the latest write-once optical storage media?

a. Digital paper

b. Magneto-optical disk

c. WORM disk

d. CD-ROM disk

47. The most important advantage of a video disk is

a. Compactness

b. Potential capacity

c. Durability

d. Cost effectiveness

48. What is the number of read-write heads in the drive for a 9-trac magnetic tape?

a. 9

b. 16

c. 18

d. 27

49. Before a disk drive can access any sector record, a computer program has to provide the record’s disk address. What information does this address specify?

a. Track number

b. Sector number

c. Surface number

d. All of above

50. As compared to diskettes, the hard disks are

a. More expensive

b. More portable

c. Less rigid

d. Slowly accessed

51. Floppy disks which are made from flexible plastic material are also called?

a. Hard disks

b. High-density disks

c. Diskettes

d. Templates

52. Regarding a VDU, Which statement is more correct?

a. It is an output device

b. It is an input device

c. It is a peripheral device

d. It is hardware item

53. What is the name of the computer terminal which gives paper printout?

a. Display screen

b. Soft copy terminal

c. Hard copy terminal

d. Plotter

54. Dot-matrix is a type of

a. Tape

e. Printer

f. Disk

g. Bus

55. The two kinds of main memory are:

a. Primary and secondary

b. Random and sequential

c. ROM and RAM

d. All of above

56. A kind of serial dot-matrix printer that forms characters with magnetically-charged ink sprayed dots is called

a. Laser printer

b. Ink-jet printer

c. Drum printer

d. Chan printer

57. Which printer is very commonly used for desktop publishing?

a. Laser printer

b. Inkjet printer

c. Daisywheel printer

d. Dot matrix printer

58. An output device that uses words or messages recorded on a magnetic medium to produce audio response is

b. Magnetic tape

c. Voice response unit

d. Voice recognition unit

e. Voice band

59. Which of the following will happen when data is entered into a memory location?

a. It will add to the content of the location

b. It will change the address of the memory location

c. It will erase the previous content

d. It will not be fruitful if there is already some data at the location

60. A storage area used to store data to a compensate for the difference in speed at which the different units can handle data is

a. Memory

b. Buffer

c. Accumulator

d. Address

.61.To locate a data item for storage is

a. Field

b. Feed

c. Database

d. Fetch

62. programs designed to perform specific tasks is known as

a. system software

b. application software

c. utility programs

d. operating system

63. perforated paper used as input of output media is known as

a. paper tapes

b. magnetic tape

c. punched papers tape

d. card punch

64. Time during which a job is processed by the computer is

a. Delay times

b. Real time

c. Execution time

d. Down time

65. a computer which CPU speed around 100 million instruction per second and with the word length of around 64 bits is known as

a. Super computer

b. Mini computer

c. Micro computer

d. Macro computer

66. An approach that permits the computer to work on several programs instead of one is

a. On-line thesaurus

b. Multiprogramming

c. Over lapped processing

d. Outline processor

67. A directly accessible appointment calendar is feature of a … resident package

a. CPU

b. Memory

c. Buffer

d. ALU

68. The term gigabyte refers to

a. 1024 bytes

b. 1024 kilobytes

c. 1024 megabytes

d. 1024 gigabyte

69. Which of the following processors use RISC technology?

a. 486dx

b. Power PC

c. 486sx

d. 6340

70. A/n …. Device is any device that provides information, which is sent to the CPU

a. Input

b. Output

c. CPU

d. Memory

71. Current SIMMs have either … or … connectors (pins)

a. 9 or 32

b. 30 or 70

c. 28 or 72

d. 30 or 72

72. The storage subsystem in a microcomputer consists mainly of … or … media with varying capacities

a. Memory or video

b. Magnetic or optical

c. Optical or memory

d. Video or magnetic

73. Which of the following is not an input device?

a. OCR

b. Optical scanners

c. Voice recognition device

d. COM (Computer Output to Microfilm)

74. The central processing unit (CPU) consists of

a. Input, output and processing

b. Control unit, primary storage, and secondary storage

c. Control unit, arithmetic-logic unit and primary storage

d. Control unit, processing, and primary storage

75. EBCDIC can code up to how many different characters?

a. 256

b. 16

c. 32

d. 64

76. Which is considered a direct entry input device?

a. Optical scanner

b. Mouse and digitizer

c. Light pen

d. All of the above

77. Which is used for manufacturing chips?

a. Bus

b. Control unit

c. Semiconductors

d. A and b only

78. The computer code for the interchange of information between terminals is


b. BCD


d. All of above

79. A byte consists of

a. One bit

b. Four bits

c. Eight bits

d. Sixteen bits

80. A hybrid computer

a. Resembles digital computer

b. Resembles analog computer

c. Resembles both a digital and analog computer

d. None of the above

81. The silicon chips used for data processing are called

a. RAM chips

b. ROM chips

c. Micro processors

d. PROM chips

82. The metal disks, which are permanently housed in, sealed and contamination free containers are called

a. Hard disks

b. Floppy disk

c. Winchester disk

d. Flexible disk

83. A computer consists of

a. A central processing unit

b. A memory

c. Input and output unit

d. All of the above

84. An application program that helps the user to change any number and immediately see the result of that change is

a. Desktop publishing program

b. Database

c. Spreadsheet

d. All of above

85. The instructions for starting the computer are house on

a. Random access memory

b. CD-Rom

c. Read only memory chip

d. All of above

86. The ALU of a computer normally contains a number of high speed storage element called

a. Semiconductor memory

b. Registers

c. Hard disks

d. Magnetic disk

87. a factor which would strongly influence a business person to adopt a computer is its

a. Accuracy

b. Reliability

c. Speed

d. All of above

88. The magnetic storage chip used to provide non-volatile direct access storage of data and that have no moving parts are known as

a. Magnetic core memory

b. Magnetic tape memory

c. Magnetic disk memory

d. Magnetic bubble memory

89. CAD stands for

a. Computer aided design

b. Computer algorithm for design

c. Computer application in design

d. All of the above

80. RATS stand for

a. Regression Analysis Time Series

b. Regression Analysis Time Sharing

c. Real Analysis Series

d. All of above

91. In which year was chip used inside the computer for the first time?

a. 1964

b. 1975

c. 1999

d. 1944

92. What was the name of the first commercially available microprocessor chip?

a. Intel 308

b. Intel 33

c. Intel 4004

d. Motorola 639

93. When were the first minicomputer built?

a. 1965

b. 1962

c. 1971

d. 1966

94. The first digital computer built with IC chips was known as

e. IBM 7090

f. Apple – 1

g. IBM System / 360

h. VAX-10

95. In which language is source program written?

a. English

b. Symbolic

c. High level

d. Temporary

96. Which of the following terms is the most closely related to main memory?

a. Non volatile

b. Permanent

c. Control unit

d. Temporary

97. Which of the following is used for manufacturing chips?

a. Control bus

b. Control unit

c. Parity unit

d. Semiconductor

98. Which of the following is required when more than one person uses a central computer at the same time?

a. Terminal

b. Light pen

c. Digitizer

d. Mouse

99. Which of the following is used only for data entry and storage, and never for processing?

a. Mouse

b. Dumb terminal

c. Micro computer

d. Dedicated data entry system

100. To produce high quality graphics (hardcopy) in color, you would want to use a/n

a. RGB monitor

b. Plotter

c. Ink-jet printer

d. Laser printer

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Organizing | Principles Of Management

download (8)Organizing:

Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.

Importance of Organizing:

  1. Specialization – Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work is helping in bringing specialization in various activities of concern.
  2. Well defined jobs – Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience. This is helping in defining the jobs properly which clarifies the role of every person.
  3. Clarifies authority – Organizational structure helps in clarifying the role positions to every manager (status quo). This can be done by clarifying the powers to every manager and the way he has to exercise those powers should be clarified so that misuse of powers do not take place. Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. This helps in increasing productivity.
  4. Co-ordination – Organization is a means of creating co-ordination among different departments of the enterprise. It creates clear cut relationships among positions and ensure mutual co-operation among individuals. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager.Authority responsibility relationships can be fruitful only when there is a formal relationship between the two. For smooth running of an organization, the co-ordination between authority- responsibility is very important. There should be co-ordination between different relationships. Clarity should be made for having an ultimate responsibility attached to every authority. There is a saying, “Authority without responsibility leads to ineffective behaviour and responsibility without authority makes person ineffective.” Therefore, co-ordination of authority- responsibility is very important.
  5. Effective administration – The organization structure is helpful in defining the jobs positions. The roles to be performed by different managers are clarified. Specialization is achieved through division of work. This all leads to efficient and effective administration.
  6. Growth and diversification – A company’s growth is totally dependant on how efficiently and smoothly a concern works. Efficiency can be brought about by clarifying the role positions to the managers, co-ordination between authority and responsibility and concentrating on specialization. In addition to this, a company can diversify if its potential grow. This is possible only when the organization structure is well- defined. This is possible through a set of formal structure.
  7. Sense of security – Organizational structure clarifies the job positions. The roles assigned to every manager is clear. Co-ordination is possible. Therefore, clarity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. This is very important for job- satisfaction.
  8. Scope for new changes – Where the roles and activities to be performed are clear and every person gets independence in his working, this provides enough space to a manager to develop his talents and flourish his knowledge. A manager gets ready for taking independent decisions which can be a road or path to adoption of new techniques of production. This scope for bringing new changes into the running of an enterprise is possible only through a set of organizational structure.

  Principles of Organizing:

  1. Principle of Specialization

    According to the principle, the whole work of a concern should be divided amongst the subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which results in effective organization.

  2. Principle of Functional Definition

    According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority and relationships of people towards each other. Clarifications in authority-responsibility relationships helps in achieving co-ordination and thereby organization can take place effectively. For example, the primary functions of production, marketing and finance and the authority responsibility relationships in these departments shouldbe clearly defined to every person attached to that department. Clarification in the authority-responsibility relationship helps in efficient organization.

  3. Principles of Span of Control/Supervision

    According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either froma wide or narrow span. There are two types of span of control:-

    1. Wide span of control- It is one in which a manager can supervise and control effectively a large group of persons at one time. The features of this span are:-
      1. Less overhead cost of supervision
      2. Prompt response from the employees
      3. Better communication
      4. Better supervision
      5. Better co-ordination
      6. Suitable for repetitive jobs

      According to this span, one manager can effectively and efficiently handle a large number of subordinates at one time.

    2. Narrow span of control- According to this span, the work and authority is divided amongst many subordinates and a manager doesn’t supervises and control a very big group of people under him. The manager according to a narrow span supervises a selected number of employees at one time. The features are:-
      1. Work which requires tight control and supervision, for example, handicrafts, ivory work, etc. which requires craftsmanship, there narrow span is more helpful.
      2. Co-ordination is difficult to be achieved.
      3. Communication gaps can come.
      4. Messages can be distorted.
      5. Specialization work can be achieved.

    Factors influencing Span of Control

    1. Managerial abilities- In the concerns where managers are capable, qualified and experienced, wide span of control is always helpful.
    2. Competence of subordinates- Where the subordinates are capable and competent and their understanding levels are proper, the subordinates tend to very frequently visit the superiors for solving their problems. In such cases, the manager can handle large number of employees. Hence wide span is suitable.
    3. Nature of work- If the work is of repetitive nature, wide span of supervision is more helpful. On the other hand, if work requires mental skill or craftsmanship, tight control and supervision is required in which narrow span is more helpful.
    4. Delegation of authority- When the work is delegated to lower levels in an efficient and proper way, confusions are less and congeniality of the environment can be maintained. In such cases, wide span of control is suitable and the supervisors can manage and control large number of sub- ordinates at one time.
    5. Degree of decentralization- Decentralization is done in order to achieve specialization in which authority is shared by many people and managers at different levels. In such cases, a tall structure is helpful. There are certain concerns where decentralization is done in very effective way which results in direct and personal communication between superiors and sub- ordinates and there the superiors can manage large number of subordinates very easily. In such cases, wide span again helps.
  4. Principle of Scalar Chain

    Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place. A scalar chain of command facilitates work flow in an organization which helps in achievement of effective results. As the authority flows from top to bottom, it clarifies the authority positions to managers at all level and that facilitates effective organization.

  5. Principle of Unity of Command

    It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time. This helps in avoiding communication gaps and feedback and response is prompt. Unity of command also helps in effective combination of resources, that is, physical, financial resources which helps in easy co-ordination and, therefore, effective organization.

    Authority Flows from Top to Bottom
    Managing Director
    Marketing Manager
    Sales/ Media Manager

    According to the above diagram, the Managing Director has got the highest level of authority. This authority is shared by the Marketing Manager who shares his authority with the Sales Manager. From this chain of hierarchy, the official chain of communication becomes clear which is helpful in achievement of results and which provides stability to a concern. This scalar chain of command always flow from top to bottom and it defines the authority positions of different managers at different levels.

Types of Organizational design

1)Line organization:

It is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom. This is the reason for calling this organization as scalar organization which means scalar chain of command is a part and parcel of this type of administrative organization. In this type of organization, the line of command flows on an even basis without any gaps in communication and co-ordination taking place.

Features of Line Organization

  • It is the most simplest form of organization.
  • Line of authority flows from top to bottom.
  • Specialized and supportive services do not take place in these organization.
  • Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres.
  • This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

Merits of Line Organization

  • Simplest- It is the most simple and oldest method of administration.
  • Unity of Command- In these organizations, superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom.
  • Better discipline- The control is unified and concentrates on one person and therefore, he can independently make decisions of his own. Unified control ensures better discipline.
  • Fixed responsibility- In this type of organization, every line executive has got fixed authority, power and fixed responsibility attached to every authority.
  • Flexibility- There is a co-ordination between the top most authority and bottom line authority. Since the authority relationships are clear, line officials are independent and can flexibly take the decision. This flexibility gives satisfaction of line executives.
  • Prompt decision- Due to the factors of fixed responsibility and unity of command, the officials can take prompt decision.

Demerits of Line Organization

  • Over reliance- The line executive’s decisions are implemented to the bottom. This results in over-relying on the line officials.
  • Lack of specialization- A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions. For example, expert advices whatever decisions are taken by line managers are implemented in the same way.
  • Inadequate communication- The policies and strategies which are framed by the top authority are carried out in the same way. This leaves no scope for communication from the other end. The complaints and suggestions of lower authority are not communicated back to the top authority. So there is one way communication.
  • Lack of Co-ordination- Whatever decisions are taken by the line officials, in certain situations wrong decisions, are carried down and implemented in the same way. Therefore, the degree of effective co-ordination is less.
  • Authority leadership- The line officials have tendency to misuse their authority positions. This leads to autocratic leadership and monopoly in the concern.

  2)Functional organization

It has been divided to put the specialists in the top position throughout the enterprise. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise. The concept of Functional organization was suggested by F.W. Taylor who recommended the appointment of specialists at important positions. For example, the functional head and Marketing Director directs the subordinates throughout the organization in his particular area. This means that subordinates receives orders from several specialists, managers working above them.

Features of Functional Organization

  • The entire organizational activities are divided into specific functions such as operations, finance, marketing and personal relations.
  • Complex form of administrative organization compared to the other two.
  • Three authorities exist- Line, staff and function.
  • Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise.
  • Principle of unity of command does not apply to such organization as it is present in line organization.

Merits of Functional Organization

  • Specialization- Better division of labour takes place which results in specialization of function and it’s consequent benefit.
  • Effective Control- Management control is simplified as the mental functions are separated from manual functions. Checks and balances keep the authority within certain limits. Specialists may be asked to judge the performance of various sections.
  • Efficiency- Greater efficiency is achieved because of every function performing a limited number of functions.
  • Economy- Specialization compiled with standardization facilitates maximum production and economical costs.
  • Expansion- Expert knowledge of functional manager facilitates better control and supervision.

Demerits of Functional Organization

  • Confusion- The functional system is quite complicated to put into operation, especially when it is carried out at low levels. Therefore, co-ordination becomes difficult.
  • Lack of Co-ordination- Disciplinary control becomes weak as a worker is commanded not by one person but a large number of people. Thus, there is no unity of command.
  • Difficulty in fixing responsibility- Because of multiple authority, it is difficult to fix responsibility.
  • Conflicts- There may be conflicts among the supervisory staff of equal ranks. They may not agree on certain issues.
  • Costly- Maintainance of specialist’s staff of the highest order is expensive for a concern.

3)Line and staff organization

It is a modification of line organization and it is more complex than line organization. According to this administrative organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and council the line executives. Personal Secretary to the Managing Director is a staff official.

                                               MANAGING DIRECTOR                                                                   
Production Manager Marketing Manager Finance Manager
Plant Supervisor Market Supervisor Chief Assisstant
Foreman Salesman Accountant

Features of Line and Staff Organization

  1. There are two types of staff :
    1. Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager.
    2. Staff Supervisor- Operation Control Manager, Quality Controller, PRO
  2. Line and Staff Organization is a compromise of line organization. It is more complex than line concern.
  3. Division of work and specialization takes place in line and staff organization.
  4. The whole organization is divided into different functional areas to which staff specialists are attached.
  5. Efficiency can be achieved through the features of specialization.
  6. There are two lines of authority which flow at one time in a concern :
    1. Line Authority
    2. Staff Authority
  7. Power of command remains with the line executive and staff serves only as counselors.

Merits of Line and Staff Organization

  • Relief to line of executives- In a line and staff organization, the advice and counseling which is provided to the line executives divides the work between the two. The line executive can concentrate on the execution of plans and they get relieved of dividing their attention to many areas.
  • Expert advice- The line and staff organization facilitates expert advice to the line executive at the time of need. The planning and investigation which is related to different matters can be done by the staff specialist and line officers can concentrate on execution of plans.
  • Benefit of Specialization- Line and staff through division of whole concern into two types of authority divides the enterprise into parts and functional areas. This way every officer or official can concentrate in its own area.
  • Better co-ordination- Line and staff organization through specialization is able to provide better decision making and concentration remains in few hands. This feature helps in bringing co-ordination in work as every official is concentrating in their own area.
  • Benefits of Research and Development- Through the advice of specialized staff, the line executives, the line executives get time to execute plans by taking productive decisions which are helpful for a concern. This gives a wide scope to the line executive to bring innovations and go for research work in those areas. This is possible due to the presence of staff specialists.
  • Training- Due to the presence of staff specialists and their expert advice serves as ground for training to line officials. Line executives can give due concentration to their decision making. This in itself is a training ground for them.
  • Balanced decisions- The factor of specialization which is achieved by line staff helps in bringing co-ordination. This relationship automatically ends up the line official to take better and balanced decision.
  • Unity of action- Unity of action is a result of unified control. Control and its effectivity take place when co-ordination is present in the concern. In the line and staff authority all the officials have got independence to make decisions. This serves as effective control in the whole enterprise.

Demerits of Line and Staff Organization

  • Lack of understanding- In a line and staff organization, there are two authority flowing at one time. This results in the confusion between the two. As a result, the workers are not able to understand as to who is their commanding authority. Hence the problem of understanding can be a hurdle in effective running.
  • Lack of sound advice- The line official get used to the expertise advice of the staff. At times the staff specialist also provide wrong decisions which the line executive have to consider. This can affect the efficient running of the enterprise.
  • Line and staff conflicts- Line and staff are two authorities which are flowing at the same time. The factors of designations, status influence sentiments which are related to their relation, can pose a distress on the minds of the employees. This leads to minimizing of co-ordination which hampers a concern’s working.
  • Costly- In line and staff concern, the concerns have to maintain the high remuneration of staff specialist. This proves to be costly for a concern with limited finance.
  • Assumption of authority- The power of concern is with the line official but the staff dislikes it as they are the one more in mental work.
  • Staff steals the show- In a line and staff concern, the higher returns are considered to be a product of staff advice and counseling. The line officials feel dissatisfied and a feeling of distress enters a concern. The satisfaction of line officials is very important for effective results.

4)Matrix organizational structure

It is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships – generally to both a functional manager and a product manager.


In the 1970s, Philips, a Dutch multinational electronics company, set up matrix management with its managers reporting to both a geographical manager and a product division manager. Many other large corporations, including Caterpillar Tractor, Hughes Aircraft, and Texas Instruments, also set up reporting along both functional and project lines around that time.


In a matrix organization, instead of choosing between lining up staff along functional, geographic or product lines, management has both. Staffers report to a functional manager who can help with skills and help prioritize and review work, and to a product line manager who sets direction on product offerings by the company. This structure has some advantages:

  • Resources can be used efficiently, since experts and equipment can be shared across projects.
  • Products and projects are formally coordinated across functional departments.
  • Information flows both across and up through the organization.
  • Employees are in contact with many people, which helps with sharing of information and can speed the decision process.
  • Staffers have to work autonomously and do some self-management between their competing bosses; this can enhance motivation and decision making in employees who enjoy.





Staffing is the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness. According to this model: Acquisition comprises the recruitment processes leading to the employment of staff.      

Process of Staffing:

  1. Manpower requirements- The very first step in staffing is to plan the manpower inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern.
  2. Recruitment- Once the requirements are notified, the concern invites and solicits applications according to the invitations made to the desirable candidates.
  3. Selection- This is the screening step of staffing in which the solicited applications are screened out and suitable candidates are appointed as per the requirements.
  4. Orientation and Placement- Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmes. placement takes place by putting right man on the right job.
  5. Training and Development- Training is a part of incentives given to the workers in order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed by providing them extra benefits of indepth knowledge of their functional areas. Development also includes giving them key and important jobsas a test or examination in order to analyse their performances.
  6. Remuneration- It is a kind of compensation provided monetarily to the employees for their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees.
  7. Performance Evaluation- In order to keep a track or record of the behaviour, attitudes as well as opinions of the workers towards their jobs. For this regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employeesin a concern.
  8. Promotion and transfer- Promotion is said to be a non- monetary incentive in which the worker is shifted from a higher job demanding bigger responsibilities as well as shifting the workers and transferring them to different work units and branches of the same organization.

Nature of Staffing Function

  1. Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.
  2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out.
  3. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place.
  4. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc.
  5. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements.
  6. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers,etc. In small companies, the top management generally performs this function. In medium and small scale enterprise, it is performed especially by the personnel department of that concern.

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Decision Making

Decision Making

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Decision-making has great importance for success of organization in contemporary management system. Managers have to take critical decisions at every stage. Decision-making pervades through all managerial functions such as planning, organizing, staffing, directing and control. In planning for example manager decides what to produce, where and when and in organizing manager decides about distribution of work, delegating authority and fixing responsibility. Decision making is commitment to something and a principle or course of action. It is selecting the best among alternative courses of action. The decision-making consists of various factors. Decision-making means that there are various alternatives and the most suitable alternative is chosen to solve the problem. Another factor is existence of alternatives in which the decision-maker has liberty to choose an alternative of his fondness. Decision-making is goal oriented. It implies that the decision maker attempts to accomplish some results through taking vital decisions. In theoretical studies, it is established that decision making is an essential part of management. Decision-making is a process of deciding. Collins (1999) defines decision as the act of making up one’s mind by collecting, sharing and gathering significant ideas from different sources. Furthermore, Longman (2000) describes that “decision as a choice or judgment that you make after a period of discussion or thought”. Longman’s definition is very clear but it gives rise to a question on the definition of deciding or decision-making. Fullan avows that decision-making is the process of identifying and choosing alternative courses of action in a manner appropriate to the demand of the situation (1982). According to Baker et al. (2001), decision making should start with the identification of the decision maker(s) and stakeholder(s) in the decision, reducing the possible disagreement about problem definition, requirements, goals and criteria. Fremount, et, al, defined decision-making as the “conscious and human process, involving both individual and social phenomenon based upon factual and value premises, which concludes with a choice of one behavioural activity from among one or more alternatives with the intention of moving toward some desired state of affairs (1970). A decision maker, as an individual, or as a member of formal organization with his own viewpoint and perception of the organization, selects for optimising values within the constraints imposed by the organization (Varshney, 1997)


Types of Decisions:

Decisions are grouped in a numerous ways:
a)Programmed and non-programmed decisions:
Programmed decisions are those that are made in harmony to policy, procedure and rules. These decisions are regular and cyclical and programmed decision is comparatively easy to make. Non-programmed decisions are new and non-repetitive. If a problem has not arisen before or if there is no precise method for handling it, it must be tackled by non-programmed decision. For programmed decision, there are definite rules exists and therefore it is not possible for two persons to find different solutions to the some problem. In case of non-programmed decision, there are no set rules to deal with the problem. Each manager may bring his own personal beliefs, attitudes and judgments to bear on the decision. In this case, it is possible for two managers to find different solutions to the same problem. Top level manager must have this ability to make non programmed decisions.
b)Major and minor decisions:
Major decisions are taken cautiously and intentionally by the application of human judgment and experience where as minor decisions are made almost subconsciously using rules. The decisions that impact for long term on departments are categorized as major decision. Alternatively, corporate decisions that do not have long term effect are known as minor decisions. Some of major decision example in organization includes diversification of existing product lines, adopting new technology are the major decisions. The decision to obtain raw materials is a minor decision, Major decisions are made at top level and minor decisions are taken at lower level in the organizational ladder.
c)Simple and complex decisions:
Another category of decision making is to take simple and complex decision. Simple decision is taken in situation where there few variables considered for solving a problem. If the variables are many, then it is an intricate decision.
d)DStrategic and tactical or operational decisions:
Strategic decision is making good choice of actions concerning allocation of resources and contribution to accomplish targeted goals of organization. Strategic decisions are major and non-programmed decisions and have long term impact. A strategic decision may involve major removal from earlier system. For example, modification in the product mix. Strategic decisions are taken by senior management. Tactical or operational decision is stemmed from strategic decision. It is associated with daily working of the organization and is made in the context of established policies and procedures such as taking decisions for provisions of air conditioning, parking facilities. Such types of decision are taken by the lower level managerial staff.
e.Individual and group decisions:
 Decision may be taken either by an individual or group. Decisions which are routine in nature, with few variables and exact procedures exists to deal with them are taken by individuals. Decisions which have their impact on other departments, which may result into some transformation in the organization, are taken by groups.

Decision Making Process:

A decision is reasonable if it is suitable for organization that means choose best alternative to accomplish goals. There are various steps in rational decision making:

  1. Recognizing the problem.
  2. Deciding priorities among the problems.
  3. Diagnosing the problem.
  4. Developing alternative solutions or courses of activities.
  5. Evaluating alternatives.
  6. Converting the decision into effective action and follow up of action.

Important steps in decision making process:

.Decision Making
(1) Recognizing the problem:
Decision has great impact on organization’s operations. When a manager takes any decision, it is in effect the organization’s response to a problem. Therefore, it is essential to search the environment for the existence of a problem. A problem exists when there is divergence from past experience or deviation from plan. Problem emerges when competitors do well or when people bring problems to the manager. It is the responsibility of manager to thoroughly explore the root causes of problems.
(2) Deciding priorities among problems:
After identifying problems, manager must assess which problem has more harmful impact on organization. He may find that some of the problems are such that they can be solved by their assistants because they are closest to them. All such problems should be transferred to subordinates. Some problems may need information available only at higher level or affecting other departments. Such problems are referred to higher level managers. And those problems which can be best solved by him are to be focused.
(3) Diagnosing the problems:
It is necessary to understand the intensity of problem. Symptoms of the problem that are observed by the manager may some times misinform him. The symptom may lead manager to think one part when the defect may lie hidden in another part. For example if there is decline in sales, the management may think that the problem is one of poor selling procedure or the saturation of the old market. But the real problem may be incapability to move quickly to meet varying needs of the clients. To diagnose the problem, a manager should follow the systems approach. He should study all the sub-parts of his organization which are connected with the sub-part in which the problem seems to be located.
(4) Developing alternative solutions:
A problem in organization has many solutions. However, all the ways cannot be uniformly satisfying. Decision maker must recognize various alternatives available in order to get best result of a decision. It can be said that all alternatives are not possible to consider either because information about all alternatives may not be available or some of the alternatives cannot be considered because of limitations. Therefore while choosing alternatives, it is necessary to consider the concept of limiting factor. Limiting factor is one which stands in the way of accomplishing a desired objective. A decision maker can categorize alternatives using his own experience, practices followed by others and using creative practice. From past experience, decision maker takes into account the action. The successful action of the past may become an alternative for the future. But main restriction of such thought is that success in past experience may not necessary in the present context because of changing business situation. Other method of developing alternatives is through creative process where various exercises are taken to create completely new ideas. Creative ideas of individuals or groups help in developing alternatives. One popular group technique is brain storming. The brain storming group consists of 5 to 10 people. The best idea behind brain storming is to think of as many alternatives as possible without pausing to evaluate them.
(5) Measuring and comparing consequences of the alternative solution:
After developing various alternatives, it is essential to measure and compare their outcomes of alternatives using quality and acceptability. The quality of a decision must be determined considering both tangible and intangible consequences. Tangible consequences are those which can be quantitatively measured or mathematically demonstrated. Intangible consequences cannot be measured quantitatively. A decision though good in quality may be poor in acceptability or decision though acceptable may not be good in quality. In such cases managers must find the relative importance of these two.
(6) Converting the decision into effective action and follow up of action:
 In this step, decision must be communicated to the employees in clear and unmistakable terms. All necessary efforts should be made to secure employees involvement in some stages of decision making. Association of employees in decision making not only improve the acceptability, but also improves the quality of decision.

Environment of decision-making:

In organization, decision making process has immense importance and sometimes managerial team may not be competent to select best alterative. This problem may be highly complex and vague. These conditions of knowledge are referred to as the ‘environment of decision making’. The environment of decision making is categorized into three types that are certainty risks and uncertainty. The environment of decision-making is a range, at one end there is complete certainty and at the other end there is complete ambiguity.
Decision-making under certainty: The term certainty denotes to precise knowledge of the outcome of each alternative. All pertinent data are available for making decision.
Decision-making under risk: In decision making under risk, the outcome of a particular decision cannot be specific with certainty but can be specified with known probability values. The value of probability is a measure of probability of the happening of that event. In such cases, alternatives are evaluated by computing the expected value of the payoff associated with each alternative.
Decision making under uncertainty: Uncertainty exists when the decision maker does not have good knowledge of the probabilities related with the possible outcomes, though he has been able to recognize the possible outcomes and their related pay-offs. Since the probabilities are not identified, the decision maker cannot use the principle of maximizing the pay off. To summarize, decision making is a selection of the best among alternative courses of action. Effective and successful decisions can be beneficial for company and prevent losses. Therefore, corporate decision making process is the most critical process in any organization. In the decision making process, managers choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques and perceptions. Decisions may be grouped as programmed and non-programmed decisions, major and minor decisions, simple and complex decisions, strategic and operational decisions. The environment of decision is classified into three types that include certainty, risk and uncertainty.


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Management | Principles Of Management

Management Theories ,Evolution of management thoughts,Contemporary perspective of management

Evolution of Management Thoughts:

Management is studied in business academics since earlier times and it is considered as an integral part to understand business operations. People have been changing and redesigning organizations for centuries. Though the 20th century is noticeable in history as an ‘Era of scientific management’, still it does not indicate that management tactics were not used in yester years. Many studies indicated that Management theory evolved with “scientific” and “bureaucratic” management that used measurement, procedures and routines as the basis for operations. Firms developed hierarchies to apply standardized rules to the place of work and penalized labour for violating rules. With the “human relations” movement, companies emphasized individual workers. Modern management theories, including system theory, contingency theory and chaos theory, focus on the whole organization, with employees as a key part of the system.

The evolution of management can be categorized in to different parts:

  • Pre-Scientific Management Era (before 1880),
  • Classical management Era (1880-1930),
  • Neo-classical Management Era (1930-1950),
  • Modern Management era (1950-on word).

Classical Management includes Scientific Management School, Administration Management School, and Bureaucracy Management. Neo- classical Management includes Human relation school and Behavioural Management School. Modern Management includes Social system school, Decision theory school, Quantitative Management School, System Management School, and Contingency Management School.

Evolution of management

Early Management Thought:

The period of 1700 to 1800 emphasizes the industrial revolution and the factory system highlights the industrial revolution and the importance of direction as a managerial purpose. Thus, the development of management theory can be recognized as the way people have struggled with relationships at particular times in olden periods. Many economic theorists during this period described the notion of management. Adam Smith and James Watt have been recognized as two theorists who launched the world toward industrialization. Adam Smith brought about the revolution in financial thought and James Watt’s steam engine provided cheaper power that revolutionized English commerce and industry. Both provided the base for modern concepts of business management theory and practice. Adam Smith explicated the concept of division of labour and Jacques Turgot described the importance of direction and control. Smith stated that market and competition should be the controllers of economic activity and that tax policies were destructive. The specialization of labour was the basis of Smith’s market system. According to Smith, division of labour provided managers with the maximum opportunity for improved output. In the period of 1771–1858, Robert Owens studied for concern for the workers. He was repulsed by the working conditions and poor treatment of the workers in the factories across Scotland. Owen became a reformer. He reduced the use of child labour and used ethical influence rather than physical punishment in his factories. He reproached his fellow factory owners for treating their equipment better than they treated their workers.

In quantitative approach of early management thought, Charles Babbage (1792–1871) is recognized as the supporter of operations research and management science. Babbage’s scientific innovations are mechanical calculator, a versatile computer, and a punch-card machine. His projects never became a commercial reality. However, Babbage is considered the creator of the concepts behind the present day computer. The most popular book of Babbage, On the Economy of Machinery and Manufacturers, described the tools and machinery used in English factories. It discussed the economic principles of manufacturing, and analysed the operations and the skills used and suggested improved practices. Babbage considered in the benefits of division of labour and was a supporter of profit sharing. He developed a method of observing manufacturing that is the same approach utilized today by operations analysts and consultants analysing manufacturing operations. Other theorists who contributed in quantitative approach of early management thought were Robert Owen, Andrew Ure and Charles Dupin, Henry Robinson Towne.

Another theorist Baptiste, explained the significance of planning. But management is appeared as a different discipline in the second half of 19th century with the beginning of Joint Stock Company. This type of enterprises separated management of business from their ownership and gave emphasis to labour incompetence and improper systems of wage payments. To resolve such problem, people began to identify management as a separate field of study. During 20th century, Management has become more scientific discipline with standard principles and practices.

The Classical Approach:

The classical approach is the earliest thought of management .The classical approach was associated with the ways to manage work and organizations more efficiently. The classical approach are categorized into three groups namely, scientific management, administrative management, and bureaucratic management.

  1. Scientific Management: Scientific management which is also referred to Taylorism or the Taylor system is a theory of management that evaluates and synthesizes workflows, with the aim of improving labour productivity. In other words, conventional rules of thumb are substituted by accurate procedures developed after careful study of an individual at work. Universal approaches of Scientific management are developed for Efficiency of workers, Standardization of job roles/activities and Discipline – the role of managers and the business hierarchy. The scientific management theory had an enormous impact on the business industry at the beginning of the 20th century. Many big and victorious organizations, such as McDonalds hamburger chain or call centres, utilised a modern version of scientific management. Among famous theorist, Taylor’s contribution in the area of scientific management is invaluable. The components of scientific management are determination of the task, planning, proper selection and training of workers improvement in methods, modification of organization and mental revolution such as ‘job specialization’. As a result, it became more concerned with physical things than towards the people even though increased the output. Scientific Management focuses on worker and machine relationships. Organizational productivity can be increased by enhancing the competence of production processes. The competence viewpoint is concerned with creating job that economizes on time, human energy, and other productive resources. Jobs are planned so that each worker has a specified, well controlled task that can be performed as instructed. Principle of scientific management are replacement of old rule of thumb method, scientific selecting and training, labour management co-operation, maximizes output, equal division of responsibility. There are four scientific management systems such as develop a science for each element of the job to replace old rule of thumb method, Scientifically select employees and then train them to do the job as described in step, supervise employees to make sure they follow the prescribed method for performing their job and continue to plan the work but use worker to actually get the work done.

Taylor’s Scientific Management: 

Academic records indicated that F.W. Taylor and his colleagues developed the first systematic study in management. He initiated an innovative movement in 1910 which is identified as scientific management. Frederick Taylor is known as the father of Scientific Management and he published Principals of Scientific Management in which he proposed work methods designed to boost worker productivity. Taylor asserted that to succeed in these principles, it is necessary to transform completely the part of management and labour. His philosophy was based on some basic principles. The first principle is separation of planning and doing. In the pre-Taylor era, an employee himself used to choose or plan how he had to do his work and what machines and equipment would be necessary to perform the work. But Taylor divided the two functions of planning and doing, he stressed that planning should be delegated to specialists. Second principle of Taylor’s management approach is functional foremanship. Taylor launched functional foremanship for administration and direction. Under eight-boss-scheme of functional foremanship, four persons like route clerk, instruction card clerk, time and cost clerk and disciplinarian are associated with planning function, and the remaining four speed boss, inspector, maintenance foreman, and gang boss are concerned with operating function. Third principle is elements of scientific management. The main constituents of scientific management are work study involving work important and work measurement using method and time study, standardization of tools and equipment for workmen and improving working conditions, scientific Selection, placement and training of workers by a centralized personal department. Fourth principle is bilateral mental revolution. Scientific management involves a complete mental change of employees towards their work, toward their fellow-men and toward their employers. Mental revolution is also necessary on the part of management’s side, the foreman, the superintendent, the owners and board of directions. Fifth principle is financial incentives. In order to encourage workers to give better performance, Taylor introduced differential piece-rate system. According to Taylor, the wage should be based on individual performance and on the position which a worker occupies. Economy is other principle of management devised by Taylor. According to him, maximum output is achieved through division of labour and specialization. Scientific Management concentrates on technical aspects as well as on profit and economy. For this purpose, techniques of cost estimates and control should be adopted. Taylor concluded that science, not rule of thumb, Harmony, not discord, Cooperation and not individualism, Maximum output, in place of restricted output.

(ii) Administrative Management: Administrative Management emphasizes the manager and the functions of management. The main objective of Administrative management is to describe the management process and philosophy of management. In contradiction of scientific management, which deals mainly with jobs and work at individual level of scrutiny, administrative management gives a more universal theory of management.

Henry Fayol’s Administrative Management (1841–1925):

 Henri fayol is known as the father of modern Management. He was popular industrialist and victorious manager. Fayol considered that good management practice falls into certain patterns that can be recognized and analysed. From this basic perspective, he devised a blueprint for a consistent policy of managers one that retains much of its force to this day. Fayol provided a broad analytical framework of the process of management. He used the word Administration for Management. Foyal categorized activities of business enterprise into six groups such as Technical, Financial, Accounting, Security, and Administrative or Managerial. He stressed constantly that these managerial functions are the same at every level of an organization and is common to all firms. He wrote General and Industrial Management. His five function of managers were plan, organize, command, co-ordinate, and control. Principal of administrative management: 1.Division of labour, 2.Authority & responsibility, 3.Discipline, 4.Unity of command, 5.Unity of direction, 6.Subordination of individual interests to general interest, 7.Remuneration of personnel, 8.Centralization, 9.Scalar chain, 10.Order, 11.Equity, 12.Stability of tenure, 13.Initiative and14 .Esprit de corps (union of strength). These 14 principles of management serve as general guidelines to the management process and management practice.

His principles of management are described below.

Division of work: This is the principle of specialization which is detailed by economists as an important to efficiency in the utilization of labour. Fayol goes beyond shop labour to apply the principle to all kinds of work, managerial as well as technical.

Authority and responsibility: In this principle, Fayol discovers authority and responsibility to be linked with the letter, the consequence of the former and arising from the latter.

Discipline: This discipline denotes “respect for agreements which are directed at achieving obedience, application, energy and the outward marks of respect”. Fayol declares that discipline requires good superiors at all levels, clear and fair agreement, and judicious application of penalties.

Unity of command: This is the principle that an employee should receive orders from one superior only.

Unity of direction: Fayol asserted that unity of direction is the principle that each group of activities having the same objective must have one head and one plan. As distinguished from the principle of unity of command, Fayol observes unity of direction as related to the functioning of personnel.

Subordination of individual interest to general interest: In any group the interest of the group should supersede that of the individual. When these are found to differ, it is the function of management to reconcile them.

Remuneration of personnel: Fayol recognizes that salary and methods of payment should be fair and give the utmost satisfaction to worker and boss.

Centralization: Fayol principle of centralization refers to the extent to which authority is concentrated or dispersed in an enterprise. Individual circumstances will determine the degree of centralization that will give the best overall yield.

Scalar chain: Fayol believe of the scalar chair as a line of authority, a ‘Chain of Superiors” from the highest to the lowest ranks and held that, while it is an error of subordinate to depart ‘needlessly’ from lines of authority, the chain should be short-circuited when scrupulous following of it would be detrimental.

Order: Breaking this principle into ‘Material order’ and ‘Social Order’, Fayol thinks of it as the simple edge of “a place for everything (everyone), and everything (everyone) in its (his) place”. This is basically a principle of organization in the arrangement of things and persons.

Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from personnel by a combination of kindliness and justice in managers dealing with subordinates.

Stability of tenure of personnel: Finding that such instability is both the cause and effect of bad management, Fayol indicated the dangers and costs of unnecessary turnover.

Initiative: Initiative is envisaged as the thinking out and execution of a plan. Since it is one of the “Keenest satisfactions for an intelligent man to experience”, Fayol exhorts managers to “Sacrifice Personal Vanity” in order to permit subordinates to exercise it.

Esprit de corps: This is the principle that ‘union is strength’ an extension of the principle of unity of command. Fayol here emphasizes the need for teamwork and the importance of communication in obtaining it.

 Bureaucratic Management:

Bureaucratic management denotes to the perfect type of organization. Principal of Bureaucracy include clearly defined and specialized functions, use of legal authority, hierarchical form, written rules and procedures, technically trained bureaucrats, appointment to positions based on technical expertise, promotions based on competence and clearly defined career paths. The German sociologist, Max Weber recognized as father of modern Sociology who appraised bureaucracy as the most logical and structure for big organization. With his observation in business world, Weber summarized that earlier business firms were unproductively managed, with decisions based on personal relationships and faithfulness. He proposed that a form of organization, called a bureaucracy, characterized by division of labour, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more well-organized management. Weber also argued that authoritative position of managers in an organization should be based not on tradition or personality but on the position held by managers in the organizational hierarchy.

Max Weber (1864-1920) devised a theory of bureaucratic management that emphasized the need for a firmly defined hierarchy governed by clearly defined regulations and lines of authority. He considered the perfect organization to be a bureaucracy whose activities and objectives were reasonably thought out and whose divisions of labour were clearly defined. Weber also believed that technical capability should be emphasized and that performance evaluations should be made completely on the basis of merit. Presently, it is considered that bureaucracies are huge, impersonal organizations that put impersonal competence ahead of human needs. Like the scientific management theorists, Weber sought to advance the performance of socially important organizations by making their operations predictable and productive. Although we now value innovation and flexibility as much as efficiency and predictability, Weber’s model of bureaucratic management evidently advanced the development of vast corporations such as Ford. Bureaucracy was a particular pattern of relationships for which Weber saw great promise. Although bureaucracy has been successful for many companies, in the competitive global market of the 1990s organizations such as General Electric and Xerox have adopted bureaucracy, throwing away the organization chart and replacing it with ever-changing constellations of teams, projects, and alliances with the goal of unleashing employee creativeness.

Chester I. Barnard: Chester Barnard (1886-1961) also devised components to classical theory such as Follett that would be further developed in later schools. Barnard, who became president of New Jersey Bell in 1927, used his work experience and his wide reading in sociology and philosophy to devise theories about organizations. Barnard stated that people join in formal organizations to accomplish such goals that cannot be fulfilled by working alone. But as they follow the organization’s goals, they must also gratify their individual needs. Barnard came to conclusion that an enterprise can operate efficiently and survive only when the organization’s goals are kept in balance with the aims and needs of the individuals working for it. Barnard denotes a principle by which people can work in stable and mutually constructive relationships over time. Barnard believed that individual and organizations purposes must be in balance if managers understood an employee’s zone of indifference that is, what the employee would do without questioning the manager’s authority. Apparently, the more activities that fell within an employee’s zone of indifference the smoother and more cooperative an organization would be. Barnard also believed that managers had a duty to inspire a sense of moral purpose in their employees. To do this, they would have to learn to think beyond their narrow self-interest and make an ethical promise to society. Although Barnard emphasized the work of administrative managers, he also focused substantial attention on the role of the individual employee as the basic strategic factor in organization.

Modern Management Approaches

Behavioural Approach: Numerous theorists developed the behavioural approach of management thought as they observed weaknesses in the assumptions of the classical approach. The classical approach emphasized efficiency, process, and principles. Some management scholars considered that this thought ignored important aspects of organizational life, particularly as it related to human behaviour. Therefore the behavioural approach concentrated on the understanding of the factors that affect human behaviour at work. This is an improved and more matured description of human relations approach. The various theorists who have great contribution in developing principles of management in this are Douglas Mc Gregor, Abraham Maslow, Curt Levin, Mary Porker Follelt, Rensis Likert. Behavioural Scientists hold the classical approach as highly mechanistic, which finds to degrade the human spirit. They choose more flexible organization structures and jobs built around the capabilities and talent of average employees. The behavioural approach has based the numerous principles.

Decision-making is done in a sub-optimal manner, because of practical and situational constraints on human rationality of decision-making. The behaviourists attach great weight age on participative and group decision-making.

Behavioural Scientists promote self-direction and control instead of imposed control.

Behavioural Scientists believe the organization as a group of individuals with certain goals.

Behavioural scientists perceive that the democratic-participative styles of leadership are enviable, the autocratic, task oriented styles may also be appropriate in certain situation.

Behavioural scientists propose that different people react differently to the same situation. No two people are exactly similar and manager should tailor his attempts to influence his people according to their needs.

Behavioural scientists identify that organizational variance and change are predictable.

Approach of Mary parker follett: Mary Parker Follett (1868-1933) developed classic structure of the classical school. However, she initiated many new elements particularly in the area of human relations and organizational structure. In this, she introduced trends that would be further developed by the talented behavioural and management science schools. Follett was persuaded that no one could become a whole person except as a member of a group. Human beings grew through their relationships with others in organizations. In fact, she explained management as “the art of getting things done through people.” She took for granted Taylor’s statement that labour and management shared a common purpose as members of the same organization, but she considered that the artificial difference between managers and subordinates is vague in this natural partnership. She believed in the power of the group, where individuals could combine their diverse talents into something bigger. Moreover, Follett’s “holistic” model of control took into account not just individuals and groups, but the effects of such environmental factors as politics, economics, and biology. Follett’s model was significant precursor of the idea that management meant more than just what was happening inside a particular organization.

Maslow’s theory of self-actualisation: His theory is recognized as Hierarchy of Needs. It is illustrated in a pyramid and elucidates the different levels and importance of human’s psychological and physical needs. It can be used in business by managers to better understand employee motivation. The general needs in Maslow’s hierarchy include physiological needs (food and clothing), safety needs (job security), social needs (friendship), self-esteem, and self-fulfilment or actualisation. Maslow’s Hierarchy of Needs relates to organizational theory and behaviour because it explores a worker’s motivation. Some people are prepared to work just for money, because of friends, or the fact that they are respected by others and recognized for their good work. The final level of psychological development that can be achieved when all basic and mental needs are fulfilled and the “actualization” of the full personal potential takes place. In the organizational situation, if an employee’s lower need on the hierarchy is not met, then the higher ones are ignored. For example, if employees are worried that they will be fired, and have no job security, they will be concerned about friendship and respect.

Douglas McGregor theory of management suggested that there is need to motivate employees through authoritative direction and employee self-control and he introduced the concept of Theory X and Y. Theory X is a management theory focused more on classical management theory and assumes that workforce need a high amount of supervision because they are inherently lazy. It presupposes that managers need to motivate through coercion and punishment. Theory Y is a management theory that assumes employees are determined, self-motivated, exercise self-control, and generally enjoy mental and physical work duties. Theory Y is in line with behavioural management theories. Theory X and Theory Y relates to Maslow’s hierarchy of needs in how human behaviour and motivation is the main priority in the workplace in order to maximize output. Theory X: The theory that employees are inherently lazy and irresponsible and will tend to avoid works unless closely supervised and given incentives, contrasted with Theory Y. Theory Y: The theory that employees are capable of being ambitious and self-motivated under suitable conditions, contrasted with Theory X.

An influential theorist in behaviour approach of management thought was Likert. His principles based on four System such as supportive relationships between organizational members, multiple overlapping structures, with groups consisting of superiors and their subordinates, group problem solving by consensus within groups and overlapping memberships between groups by members who serve as linking pins.

Human Relations Approach: The human rationalists which is also denotes to neo-classicists, focused as human aspect of business. These theorists emphasize that organization is a social system and the human factor is the most vital element within it.

There are numerous basic principles of the human relations approach that are mentioned below:

Decentralization: The concept of hierarchy employed by classical management theorists is replaced with the idea that individual workers and functional areas (i.e., departments) should be given greater autonomy and decision-making power. This needs greater emphasis on lateral communication so that coordination of efforts and resources can occur. This communication occurs via informal communication channels rather than the formal, hierarchical ones.

Participatory Decision-Making: Decision-making is participatory in the sense that those making decisions on a day-to-day basis include line workers not normally considered to be “management.” The greater sovereignty afforded individual employees and the subsequent reduction in “height” and increase in span of control of the organizational structure requires that they have the knowledge and ability to make their own decisions and the communication skill to coordinate their efforts with others without a nearby supervisor.

Concern for Developing Self-Motivated Employees: The importance on a system of decentralized and autonomous decision-making by members of the organization necessitates that those members be extremely “self-motivated”. Goal of managers in such an organization is to design and implement organizational structures that reward such self-motivation and autonomy. Another is to negotiate working relationships with subordinates that foster effective communication in both directions.

Therefore, the human relations approach implies modifications in the structure of the organization itself, in the nature of work, and in the association between manager and assistant. Each of these changes depends upon assumptions about the individual, the organization, and communication, just like any other theory of organizations. Elton Mayo and others conducted experiments that was known as Hawthorne experiments and explored informal groupings, informal relationships, patterns of communication, and patterns of internal leadership. Elton Mayo is usually popular as father of Human Relations School. The human relationists, advocates the several factors after conducting Hawthorne experiments which are mentioned below.

Social system: The organization in general is a social system consists of numerous interacting parts. The social system established individual roles and establishes norms that may differ from those of formal organization.

Social environment: The social climate of the job affects the workers and is also affected.

Informal organization: The informal organization does also exist within the frame work of formal organization and it affects and is affected by the formal organization.

Group dynamics: At the place of work, the workers often do not act or react as individuals but as members of group. The group plays an important role in determining the attitudes and performance of individual workers.

Informal leader: There is an appearance of informal leadership as against formal leadership and the informal leader sets and enforces group norms.

Non-economic reward: Money is an encouraging element but not the only motivator of human behaviour. Man is diversely motivated and socio psychological factors act as important motivators.

Behavioural Science: Behavioural science and the study of organizational behaviour emanated during 1950s and1960s. The behavioural science approach was a natural development of the human relations movement. It concentrated on applying conceptual and analytical tools to the problem of understanding and foresees behaviour in the place of work. The behavioural science approach has contributed to the study of management through its elements of personality, attitudes, values, motivation, group behaviour, leadership, communication, and conflict, among other issues.

Contingency Approach: This approach of management thought focuses on management principles and concepts that have no general and universal application under all conditions. Joan Woodward in the 1950s has contributed to develop this approach in management. Contingency school states that management is situational and the study of management recognize the important variables in the situation. It distinguishes that all the subsystem of the environment are interconnected and interrelated. By studying their interrelationship, the management can find resolution to specific situation. Theorists stated that there is not effective way of doing things under all business conditions. Methods and techniques which are extremely effective in one situation may not give the same results in another situation. This approach proposes that the role of managers is to recognize best technique in particular situation to accomplish business goals. Managers have to develop situational understanding and practical selectivity. Contingency visions are applicable in developing organizational structure, in deciding degree of decentralization, in motivation and leadership approach, in establishing communication and control systems, in managing conflicts and in employee development and training. The contingency approach is associated with applying management principles and processes as dictated by the sole characteristics of each situation. It depends on various situational factors, such as the external environment, technology, organizational characteristics, characteristics of the manager, and characteristics of the subordinates. Contingency theorists often implicitly or explicitly disapprove the classical approach as it focuses on the universality of management principles.

The Quantitative Approach Of Management Thought

The quantitative approach aimed at enhancing the process of decision making through the use of quantitative techniques. It is evolved from the principles of scientific management.

Management Science (Operations Research): Management science which is also known as operations research utilized mathematical and statistical approaches to resolve management issues. It was developed during World War II as strategists attempted to apply scientific knowledge and methods to the intricate troubles of war. Industry started to apply management science after the war. The introduction of the computer technology made many management science tools and concepts more practical for industry

Production and Operations Management: This approach emphasizes the operation and control of the production process that changes resources into manufactures goods and services. This approach is emerged from scientific management but became a specific area of management study after World War II. It uses many of the devices of management science. Operations management underlines productivity and quality of both manufacturing and service organizations. W. Edwards Deming exercised a great influence in developing contemporary ideas to improve productivity and quality. Major areas of study within operations management include capacity planning, facilities location, facilities layout, materials requirement planning, scheduling, purchasing and inventory control, quality control, computer integrated manufacturing, just-in-time inventory systems, and flexible manufacturing systems.

Systems Approach Of Management Thought

The systems approach deals with the thoroughly understanding the organization as an open system that converts inputs into outputs. The systems approach has great impact on management thought in the 1960s. During this period, thinking about managing practices allowed managers to relate different specialties and parts of the company to one another, as well as to external environmental factors. The system approach focuses on the organization as a whole, its communication with the environment, and its need to achieve equilibrium.

System approach

To summarize, there are important theories of Management and each theory has distinct role to knowledge of what managers do. Management is an interdisciplinary and global field that has been developed in parts over the years. Numerous approaches to management theory developed that include the universal process approach, the operational approach, the behavioural approach, the systems approach, the contingency approach and others. F W Taylor, Adam Smith, Henry Fayol, Elton Mayo and others have contributed to the development of Management concept. The classical management approach had three major categories that include scientific management, administrative theory and bureaucratic management. Scientific management highlighted the scientific study of work methods to improve worker efficiency. Bureaucratic management dealt with the characteristics of an perfect organization which operates on a rational basis. Administrative theory explored principles that could be used by managers to synchronise the internal activities of organizations. The behavioral approach emerged mainly as an outcome of the Hawthorne studies. Mary Parker Follet, Elton Mayo and his associates, Abraham Maslow, Douglas McGregor and Chris Argyris were main players of this school.

Contemporary perspectiive on Management:

a)Workforce diversity: It refers to a workforce that is heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences. Accommodating diverse groups of people by addressing different lifestyles, family needs, and work styles is a major challenge for today’s managers.

b)Knowledge Management and Learning Organizations: Change is occurring at an unprecedented rate. To be successful, today’s organization must become a learning organization—one that has developed the capacity to continuously learn, adapt, and change. Knowledge management involves cultivating a learning culture where organizational members systematically gather knowledge and share it with others in the organization so as to achieve better performance.

c)Outsourcing:In business, outsourcing involves the contracting out of a business process to another party (compare business process outsourcing). The concept “outsourcing” came from American Glossary ‘outside resourcing’ and it dates back to at least 1981. Outsourcing sometimes involves transferring employees and assets from one firm to another, but not always.Outsourcing is also the practice of handing over control of public services to for-profit corporations.

d)Time management: It is the act or process of planning and exercising conscious control over the amount of time spent on specific activities, especially to increase effectiveness,efficiency or productivity.It is a meta-activity with the goal to maximize the overall benefit of a set of other activities within the boundary condition of a limited amount of time.Time management may be aided by a range of skills, tools, and techniques used to manage time when accomplishing specific tasks, projects, and goals complying with a due date. Initially, time management referred to just business or work activities, but eventually the term broadened to include personal activities as well. A time management system is a designed combination of processes, tools, techniques, and methods. Time management is usually a necessity in any project development as it determines the project completion time and scope.

e)Stress management: It refers to the wide spectrum of techniques and psychotherapies aimed at controlling a person’s levels of stress, especially chronic stress, usually for the purpose of improving everyday functioning.In this context, the term ‘stress’ refers only to a stress with significant negative consequences, or distress in the terminology advocated by Hans Selye, rather than what he callseustress, a stress whose consequences are helpful or otherwise positive.Stress produces numerous physical and mental symptoms which vary according to each individual’s situational factors. These can include physical health decline as well asdepression. The process of stress management is named as one of the keys to a happy and successful life in modern society.Although life provides numerous demands that can prove difficult to handle, stress management provides a number of ways to manage anxiety and maintain overall well-being.

f)Conflict management: It is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in organizational setting.

g)Green Management: It is a comprehensive term which focuses on environmental conservation for suatainable development of business activities. Many disasters such as global warming,deforestation,ozone layer depletion,increasing pressure from ethical consumers,population growth ,etc brought a new perception among individuals, groups and organizations to save natural environment.

h)Participative management: It is the process of involving subordinates in decision m aking process with their immediate superiors.It empowers the subordinates who know the actual problems and can contribute in making better decisions.



Planning,Nature of planning,Types of planning,Process of planning,Barriers of planning


Planning is the primary function of management. It is the important process of deciding business objectives and charting out the method to accomplish these goals. This includes decision of what type of activity is to be done, where to be done and how the results to be analyzed.

Theoretical review:

Many theorists thoroughly describe the planning process of management function. Koontz and O’Donnel stated that “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It bridges the gap from where we are and to where we want to go. It is an essence of the exercise of foresight. Another management theorist, M.S. Hardly explained “Planning is deciding in advance what is to be done”. It involves the selection of objectives, policies, procedures and programs from among alternatives. Heying and Massie defined “It can be said that planning is first function of the manager in which he has to decide in advance action that is to be done.” It is an intellectual process in which managers must have to use their imaginative mind. Planning is an attempt to foresee the future in order to get high performance. Plans have numerous benefits. Planning enables managers to think ahead. It leads to development of performance standards. Plan forces management to articulate clear objectives. Planning makes organization to get ready for unexpected developments. Planning includes various features such as Planning is mainly concerned with looking into future. In planning process, management team has to select suitable course of action under particular business environment. It means there are several ways to achieve objectives. Planning is done at all levels of the organization because managers at all levels are concerned with determination of future course of action. Planning is persistent and constant managerial function.

Nature of planning:

Planning is a rational approach, open system, flexibility and pervasiveness. It clarifies where one stands, where one wants to go in future and how accomplishes goal. Rationalist denotes a manager chooses suitable way to achieve the stated objectives and rational approach fills the gap between the current status and future status. Planning is an open System approach in which firm is an open system because it accepts inputs from the environment and exports output to environment. Planning accepts an open system approach. Open system approach designates that the gap between current and desired status and the action required overpassing this gap which is influenced by array of environmental economic, legal, political, technological, socio-cultural and competitive factors. These factors are vibrant and change with time. Therefore managers have to take into account the dynamic features of environment while using open system approach. Another aspect of planning is the flexibility of Planning: it means plan has ability to change direction to take on to changing situations without excessive cost. Many scholars said that the plans must be stretchy to become accustomed to changes in technology, market, finance, personal and organizational factors. However flexibility is possible only within limits, because it involves extra cost. Another feature is pervasiveness of Planning. Planning is persistent and it broadens throughout the organization. Planning is the primary management function and every manager at different level has to do planning within his particular area of activities. Top management is responsible for general objectives and action of the organization. Therefore it must plan what these objectives should be and how to achieve them. Similarly a departmental head has to develop the objectives of his department within the organizational objectives and also the methods to accomplish them. Planning

Significance of Planning Process:

Planning has core value in all organization whether business or non-business, private or public, small or large. The organization which has mindset for future is likely to succeed as compared to one which fails to do so. Planning establishes the objectives and all other functions are performed to achieve the objectives set by the planning process. The company constantly interacts with the external dynamic environment where there is high risk and ambiguity. In this changing dynamic environment where social and economic conditions change quickly, planning assists the manager to adjust with and prepare for altering environment. Through rational and fact based process for making decisions, manager can lessen market risk and uncertainty. Planning focuses on organizational objectives and course of action to accomplish targeted goal. It facilitates managers to apply and organize all resources of the organization successfully in achieving the objectives. The whole organization is required to embrace identical goals and work together in achieving them. Planning establishes the goal and develops plan to attain them. These goals and plans become the standards against which the actual performance can be measured. Control involves the dimension of actual performance, comparing it with the standards and taking remedial action if there is divergence. Control makes certain that the activity confirms to plans. Hence control can be exercised if there are plans. Planning also enhances organizational effectiveness.

Types of Planning

Planning can be categorized as coverage of activities, importance of contents in planning, approach adopted in planning process, time dimension and degree of formalization in planning process. Types of Planning The planning activities at the corporate level which include activities of whole organizational are termed as corporate planning. Corporate planning is done to chase long term objectives as a whole and to create plans to accomplish these objectives bearing in mind the possible changes in dynamic environment. Strategic planning sets future directions of the organization in which it wants to proceed in future such as diversification of business into new lines, planned growth rate in sales. It has three major characteristics such as it embraces all activities of organization, has long time horizon and successful implementation. Operational planning involves to decide effectual use of resources already allocated to achieve the organizational objectives such as adjustment of production within available capacity, increasing the efficiency of the operating activity by analyzing past performance. The long term planning is strategic in nature and involves more than one year period and can extend to 15 to 20 years. Proactive planning develops appropriate courses of action in expectation of likely changes of environment. Managers who adopt proactive changes do not wait for environment to change, but take action in advance of environmental changes. To get success, it is necessary to continuously review the environment conditions. In reactive planning, response comes after environmental changes occur. Informal planning is done by small organizations. This planning process is based on manager’s experience, intuitions instead of methodical evaluation of environmental changes. This planning process is part of manager’s normal activity. Mainly two types of plans are formulated in management that includes standing plans and single use plans. Standing plans give guidelines for advance course of action and are used over a period of time. Standing plans are designed for situations that persist often enough to justify a standardize approach. Single use plans are intended for specific end when that end is reached, the plan is dissolved or devised again for next end.

Major Steps in Planning Process

The planning process is different from one plan to another and varies from company to company. Common steps in planning are mentioned below:

  1. Establishing goals or objectives: The initial phase of planning process is to establish the business objectives. These organizational goals are made by senior level managers after reviewing numerous objectives. These objectives are based on the number of factors like mission of the organization, abilities of the organization. Once management team establishes the organizational goals, the section wise or department wise objectives are planned at the lower level. Defining the objectives of every department is important and accordingly precise direction is given to the departments.
  2. Establishing planning premises: The next step in planning which involves establishing planning premises is the conditions under which planning activities will be done. Planning premises are planning statements that are the expected environmental factors, pertinent facts and information relating to the future such as general economic conditions, population trends, and competitive behavior. The planning premises can be Internal and External premises, Tangible and Intangible premises, Controllable and non-controllable premises.
  3. Deciding the planning period: After determining the long term objectives and planning premises, another phase is to choose the period of the plan. Some plans are made for a year and other plans are devised for longer period. There are many factors which influence the choice of a period. Lead time in development and commercialization of a new product. Big companies like an aircraft building company plans for a period of five to ten years where as a small manufacturer can commercialize his idea in a year. Another factor is time needed for recovery of capital investment or the payback period. The payback period also influence the planning period. Length of commitment already made also impact the choice of time span in planning. Researchers emphasized that the plan period should be made in such a way that it can fulfil the commitments already made. Identification of alternatives is important factor in determining time frame in planning. A particular objective can be achieved through various actions. Evaluation and selection of alternative is the next step which assess the alternatives with the support of the premises and goals and to choose the best course or courses of action.
  4. Developing derivative/supportive plans: After selection process of plan done, various plans are derived so as to support the main plan. These derivative plans are devised from the main plan.
  5. Measuring and controlling the process: It is advised that plans once established should not be executed unless its progress is monitored. Managers must have continually monitor progress of their plans so that remedial action can be taken to make fruitful plan.

Obstacles in planning Process

It is observed that many executives involve in implementing plans instead of spending time to develop effectively. It is founds that there are many barriers that inhibit planning process. In order for plans to be effective and to get the desired results, managers must recognize any potential barriers and make efforts to reduce them. Common barriers that hinder successful planning are as under: The first barrier is incapability to plan or it can be said as inadequate planning. Managers do not have inherent quality to devise effective plan. Some managers are not successful planners because they do not have ability, education to develop planning for particular situation. Such incapability creates hindrance in planning process. Another barrier is lack of commitment to the planning process. Planning process require hard work. Another cause for lack of commitment can be fear of failure. As a result, managers may choose to do little or nothing to help in the planning process. Inferior information also creates hindrance in planning process. It is observed that poor information or of inadequate quantity can be major barriers to planning. Even though managers are proficient in planning but if they do not have latest information their plans will possibly fail. Another barrier to planning process is failure to consider the long‐term effects of a plan because more emphasis is given to short term issues. This may result in preparing for the future. If managers excessively depend on the organization’s planning department, their plans may not be successful. Many companies have a planning department or a planning and development team. These departments conduct studies, do research, build models, and project probable results, but they do not implement plans. In order to make effective plan, keep the planning process simple. It is advised to discuss the objectives of organization with top level team before preparing for plans and use participative approach in developing plan. It can be concluded that management planning is the process to evaluate an organization’s goals and create a realistic, detailed plan of action for meeting those goals. Planning is the continuous process of systematically making plans with the knowledge of the future, organizing the activities needed to carry out the plans and monitoring the results of the plans through comments. Planers must communicate plan to other staff members as why specific action is taken.

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Scientific Management | Principles of Management

download (14)Scientific Management:

Scientific Management, also called Taylorism, is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management.

Frederick Winslow Taylor (1856-1915)

Frederick was an American inventor and engineer that applied his engineering and scientific knowledge to management and developed a theory called scientific management theory. His two most important books on his theory are Shop Management (1903) and The Principles of Scientific Management(1911). Frederick Taylor’s scientific management theory can be seen in nearly all modern manufacturing firms and many other types of businesses. His imprint can be found in production planning, production control, process design, quality control, cost accounting, and even ergonomics. If you understand the principles of scientific management, you will be able to understand how manufacturers produce their goods and manage their employees. You will also understand the importance of quantitative analysis, or the analysis of data and numbers to improve production effectiveness and efficiency.

Principles of Scientific Management Theory

In broad terms, scientific management theory is the application of industrial engineering principles to create a system where waste is avoided, the process and method of production is improved, and goods are fairly distributed. These improvements serve the interests of employers, employees, and society in general. Taylor’s theory can be broken down into four general principles for management:

  1. Actively gathering, analyzing, and converting information to laws, rules, or even mathematical formulas for completing tasks.
  2. Utilizing a scientific approach in the selection and training of workers.
  3. Bringing together the science and the worker so that the workers apply the scientifically developed techniques for the task.
  4. Applying the work equally between workers and managers where management applies scientific techniques to planning and the workers perform the tasks pursuant to the plans.

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