We have seen earlier
that management is a process of getting things done with and through people in
organizations. However, management experts are not anonymous about what
managers do in completing the management process. As a result, there are two
approaches for specifying what managers do: management functions and management
roles though both may be reconciled.
MANAGEMENT FUNCTIONS
The classical analysis,
which is the basis for management analysis, takes various functions which managers
at all levels of the organization perform in order to achieve organizational
objectives. A function is a group of similar activities. However, what
functions are undertaken by managers in organizations, there is divergence of
views. As a result, the list of management functions is very long. However, all
these may broadly be grouped into planning, organizing staffing directing and
controlling. Some authors add coordinating in this list but this is not a
separate function of management and it can be treated as essence of management
since the basic objective of all managerial functions is to achieve
coordination in organized efforts. A detailed discussion of each of these
functions will take place in separate parts, here a brief discussion is given
about what each function includes.
1.
Planning. Planning is the conscious determination of future course of
action. This involves why in action, what action, how to take action, and when
to take action. Thus, planning includes determination of specific objectives,
determining projects and programmes, setting policies and strategies, setting
rules and procedures, and preparing budgets.
2.
Organizing. Organizing is the process of dividing work into convenient tasks
or duties, grouping of such duties in the form of positions, grouping of
various positions into departments and sections, assigning duties to individual
positions, and delegating authority to each position so that the work is
carried out as planned. Organizing function can be viewed as a bridge
connecting the conceptual idea developed in planning to the specific means for
accomplishing these ideas. Organizing function contributes to the efficiency of
the organization by ensuring that all necessary activities are performed and
objectives are achieved.
3.
Staffing. Staffing involves
manning the various positions created by the organizing process. It includes
preparing inventory of personnel available and identifying the gap between
manpower required and available, identifying the sources from where people will
be selected, selecting people, training and developing them, fixing financial
compensation, appraising them periodically, etc. There is a controversy whether
staffing function is to be performed by all managers in the organization or it
is to be handled by human resource (HR) department which looks after the
matters enumerated above. The controversy can be settled because staffing
function is too complicated and time-consuming. To make it convenient, some
processes of staffing are completed by HR department. In doing so, it
facilitates the performance of staffing function by managers in the
organization. For example, managers are required to appraise the performance of
subordinates. HR department can facilitate this function by prescribing and
supplying the proforma for this appraisal so that there is uniformity in
appraisal system throughout the organization. Similar support can be provided
by HR department in other aspects of staffing.
4.
Directing. When people are available in the organization, they must know
what they are expected to do in the organization. Superior managers fulfil this
requirement by communicating to subordinates about their expected behaviour.
Once subordinates are oriented, the superiors have continuous responsibility of
guiding and leading them for better work performance and motivating them to
work with zeal and enthusiasm. Thus, directing includes communicating,
motivating, and leading.
5.
Controlling. Controlling involves identification of actual results,
comparison of actual results with expected results as set by planning process,
identification of deviation between the two, if any, and taking of corrective
action so that actual results match with expected results. It brings to light
all bottlenecks in work performance and operates as straight pointer to the
needs of the situation.
Nature of Management
Functions
Nature of management
functions can be identified in terms of their being universal, their iterative
characteristics, sequential arrangement, and relative importance.
1 • Management functions
are universal in the sense that a manager has to perform all these functions in
the organization irrespective of his level or type of organization. Acting in
their managerial capacity, chief executives, departmental heads, foremen,
supervisors, etc., all do the same thing. Similarly, whether it is business
organization or non-business organization, the management functions are
involved.
2.
Management functions
have iterative quality, that is, they are contained within each other. For
example, planning, organizing, directing, and controlling may occur within
staffing function. Similarly, organizing may involve planning, directing, and
controlling. We hear planning and controlling of organizational design (a part
of organizing process). Thus, all management functions can be thought of as sub
functions of each other.
3.
Although management
process suggests a sequential arrangement of functions, it is not always
possible in the performance of managerial functions strictly in a sequence.
Sequential concept may be true for initiating management functions in a new
organization to begin with. For an on-going organization, it is not necessary
to insist on a special time sequence for the various functions of management
process. In this case, management process can be seen as a circular continuous
movement as shown in Figure 1.3.
This process may start
from any point, not necessarily from planning, and end at any point. Moreover,
several functions may be performed at the same time. For example, while giving direction
through communication to subordinate, a superior manager also appraises
(staffing function) his subordinate as how carefully he is grasping the ideas.
4.
Since there are many
managerial functions, often a question arises: which management function is
more important so that managers devote more time to that.
This question is quite
vital but it cannot be pointed out categorically that a particular management
function is more important than other. In fact, no function is more important
but the mix of the functions varies from task to task and from level to level
of management. Therefore, the relative importance of management functions can
be identified in the context of management levels. This analysis will bring the
clue for training and developing the managers at variour levels for the
performance of specific management functions.
Before we trace out the
relative importance of different functions of various levels of management, it
may be worthwhile to identify the roles that managers perform in the organizations.
MANAGEMENT ROLES
As
against the management functions, Mintzberg have defined the roles of managers
to identify what managers do in the organizations. Role is defined as the
pattern of behavior which is defined for different positions. It refers to the
expected behavior of the occupant of a position—not all their behavior, but to
what he does as occupant of that position. Mintzberg has pointed out
that there are three broad categories of roles that a manager performs in an
organization. These are interpersonal roles, informational roles, and
decisional roles. Within each category of roles, there are different roles as
shown in Figure 1.4.
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Management roles depend
on the formal authority which is delegated to the manager in an organization.
The degree of authority determines his status and different roles. In
performing a particular role, the manager uses his skills and other
characteristics. The three major roles of a manager are interpersonal,
informational, and decisional.
Interpersonal Roles
Interpersonal roles of a
manager are concerned with his interacting with other persons, both the
organizational members and outsiders. There are three types of interpersonal
roles: figurehead role, leader role, and liaison role.
1. Figurehead
Role. In figurehead role,
the manager performs activities which are of ceremonial and symbolic nature.
These include greeting the visitors, attending social functions involving
employees, and handing out merit certificates and other awards to outstanding
employees.
2. Leader
Role. Manager’s leader role
involves leading his subordinates and motivating them for willing
contributions. Willing contributions come from subordinates when they see in a
manager certain exemplifying behaviour.
3.
- Liaison Role. In liaison role, the manager serves as a connecting link between his organization and outsiders or between his unit and other organizational units. The major objective of this role is maintaining a link between the organization and its external environment.
Informational roles of a
manager include communication—giving and receiving information— both within and
outside the organization. Information is required to make decisions effective.
There are three types of informational roles of a manager: monitor,
disseminator, and spokesperson.
1. Monitor Role. In his monitor role, the manager constantly collects information
about those factors which affect his activities. Such factors may be within the
organization as well as outside it.
- Disseminator Role. In the disseminator role, the manager distributes the information to his subordinates who may otherwise not be in a position to collect it.
- Spokesperson. As a spokesperson, the manager represents his organization or unit while Interacting with outsiders. These may be customers, financiers, government, suppliers, or other agencies of the society.
Decisional roles of a
manager involve choosing the most appropriate alternative out of the available
ones so that the organization achieves its objectives when the chosen
alternative is put into action. In his decisional roles, the manager performs
four roles: entrepreneur, disturbance handler, resource allocator, and
negotiator.
1.
Entrepreneur. As an entrepreneur,
the manager assumes certain risk which is Involved in terms of the outcomes of
an action because these are affected by a variety of external factors. Since
these factors are dynamic and change constantly, the manager is required to
bring suitable changes in the organizational processes to align these with the
requirement of the environment.
TAYLOR AND SCIENTIFIC MANAGEMENT
The concept of
scientific management was introduced by Frederick Winslow Taylor (1856- 1915)
in USA in the beginning of 20th century. This concept was further carried on by
Frank and Lillian Gilbreth, Henry Gantt, George Berth, Edward Felen, etc
Scientific management was concerned essentially with improving the operational
efficiency at the shop-floor level. Taylor has defined scientific management as
follows: scientific management is with knowing exactly what you want men to do
and then see In that they do it in the best and cheapest way.
Since Taylor has put the
emphasis on solving managerial problems in a scientific way, often, he is
called as ‘father of scientific management’ and his contributions as the
principles of scientific management. Though his contributions have become
traditional in present-day context, still the label scientific management is
used for his contributions. It does not mean that present-day management
thoughts and practices are not scientific. In fact, management as a science has
been taken much later than the contributions of Taylor.
Taylor worked at Midvale
Steel Company and Bethlehem Steel Company of USA. At both these places, he
carried experiments about how to increase the efficiency of people. Even after
his retirement, he continued to develop scientific management. Taylor’s
contributions can be described in two parts: elements and tools of scientific
management and principles of scientific management.
Elements and Tools of Scientific Management
Taylor conducted various
experiments at his workplaces to find out how human beings could be made more
efficient by standardizing the work and better method of doing the work. These
experiments have provided the following features of scientific management:
1.
Separation of Planning and Doing.
Taylor emphasized separation of planning aspect from actual doing of the work.
Before Taylor’s scientific management, a worker used to plan about how he had
to work and what instruments were necessary for that. The worker was put under
the supervision of a supervisor commonly known
as gang boss. Thus, supervisor's job was merely to see how the workers
were performing. This was creating lot of problems, and Taylor emphasized that
planning should be left to the supervisor and the worker should emphasize only
operational work.
2. Functional Foremanship. Separation of planning from doing resulted in
development of supervision system which could take planning work adequately
besides keeping supervision on workers. For this purpose, Taylor evolved the
concept of functional foremanship based on specialization of functions. In this
system, eight persons are involved direct the activities of workers. Out of
these, four persons are concerned with planning: (i) route clerk, (ii)
instruction card clerk, (iii) time and cost clerk and (iv) disciplinarian. The
remaining four persons are concerned with doing aspect of the work. These are:
(i) speed boss, (ii) inspector, (iii) maintenance foreman, and (iv) gang boss.
All of them give directions to workers on different aspects of work. This is
against unity of command principle as shown in Figure 2.1.
- Job Analysis. Job analysis Is undertaken to find out the one best way of doing the, things The best way of doing a Job is one which requires the least movements, consequently.less time and cost. The best way of doing the things can be determined by taking up motion- time-fatigue studies. (i) Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements. Elimination of unnecessary movements in doing work reduces time taken in performing a work and also the fatigue of workers, (ii) Time study involves the determination of time a movement takes to complete. The movement which takes minimum time is the best one. This helps in fixing the fair work for a period, (iii) Fatigue study shows the amount and frequency of rest required in completing the work. After a certain period of time, workers feel fatigue and cannot work with full capacity. Therefore, they require rest in between. When the rest is allowed, they start working with full capacity. Thus, job analysis, as given by Taylor, suggests the fair amount of a day’s work requiring certain movements and rest periods to complete it.
4. Standardization. As far as possible,
standardization should be maintained in respect of Instruments and tools,
period of work, amount of work, working conditions, cost of production, etc.
These things should be fixed in advance on the basis of job analysis and
various elements of costs that go in performing a work.
5. Scientific Selection and Training of Workers. Taylor has suggested that workers should be
selected on scientific basis taking into account their education, work
experience, aptitude, physical strength, etc. A worker should be given work for
which he is physically and technically most suitable. Apart from selection,
proper emphasis should be given on the training of workers which makes them
more efficient and effective.
- Financial Incentives. Financial Incentives can motivate workers to put In their maximum efforts. If provisions exist to earn higher wages by putting in extra effort, workers will be motivated to earn more. Taylor himself applied the concept of differential piece rate system which was highly motivating. According to this scheme, a worker who completes the normal work gets wages at higher rate per piece and one who does not complete gets at lower rate. Thus, there is considerable difference In wages between those who complete the work and those who do not complete. To make the differential piece rate system work, Taylor has suggested that wages should be based on Individual performance and not on the position which he occupies. Further, the wage rate should be fixed on accurate knowledge and not on estimates.
- Economy. While applying scientific management, not only scientific and technical aspects should be considered but adequate consideration should be given to economy and profit. For this purpose, techniques of cost estimates and control should be adopted. The economy and profit can be achieved by making the resources more productive as well as by eliminating the wastages. Taylor has clarified by giving examples of how resources are wasted by not following scientific management.
- Mental Revolution. Scientific management depends on the mutual cooperation between management and workers. Fbr this cooperation, there should be mental change in both parties from conflict to cooperation. Taylor feels that this is the most important feature of scientific management because in its absence, no principle of scientific management can be applied.
Principles of Scientific Management
Taylor has given certain
basic principles of scientific management. The fundamental principles that
Taylor saw underlying the scientific management have been given below:
Replacing Rule of Thumb
with Science. Taylor has emphasized that
in scientific management, organized knowledge should be applied which will
replace rule of thumb. While his use of scientific method denotes precision in
determining any aspect of work, rule of tumb emphasizes estimation. Since
exactness of various aspects of work like day’s fair 5rk, standardization in
work, differential piece rate for payment, etc. is the basic core of identify
management, it is essential that all these are measured precisely and should
not based on mere estimates. This
approach can be adopted in all aspects of managing.
Harmony in Group Action. Taylor has emphasized that attempts should be
made to tain harmony in group action rather than discord. Group harmony
suggests that there could be mutual give and take situation and proper understanding
so that group as a role contributes to the maximum.
Cooperation. Scientific management Involves achieving
cooperation rather than chaotic individualism. Scientific management is based
on mutual confidence, cooperation, and goodwill. Cooperation between management
and workers can be developed through mutual understanding and change in
thinking. Taylor has suggested substitution of war for peace, hearty and
brotherly cooperation for contentment and strife, replacement of suspicious
watchfulness with mutual confidence, of becoming friends Instead of enemies.
- Maximum Output. Scientific management involves continuous increase in production and productivity instead of restricted production either by management or by workers. Taylor hated inefficiency and deliberate curtailment of production. His concern was with the large size of the cake. In his opinion, there is hardly any worse crime to my mind Then that of deliberately restricting output. He decried quarrel over production but welcomed quarrel over distribution, provided the product to be distributed had outgrown the size. Therefore, he advised the management and workers to turn their attention towards Increasing the size of the surplus until the size of the surplus becomes so large that it is necessary to quarrel over how It shall be divided.
- Development of Workers. In scientific management, all workers should be developed to the fullest extent possible for their own and for the company’s highest prosperity.
Development of workers
requires their scientific selection and providing them training at the
workplace. Training should be provided to workers to keep them fully fit
according to the requirement of new methods of working which may be different
from the non-scientific methods.
Followers of Scientific management
Other persons who worked
to develop scientific management were Carl George Berth. Henry Gantt, Frank and
Lillian Gilbreth, Edward Felene, etc. however, contribution of Gantt and frank
and Lillian are more important.
Contributions of Henry Gantt
Henry L. Gantt
(1861-1919) of USA was holder of post-graduate mechanical engineering degree.
After spending few years in teaching, he joined Midvale Steel Company as a
mechanical engineer where Taylor was working. Gantt wrote a book titled Work,
Wages and Profits. This book was meant mostly for employers advocating how to
utilize labour efficiently. His contributions are as follows:
1.
Development
of Gantt Chart. Gantt developed a bar
chart for managing work and project execution. This is the most important contribution
of Gantt. This chart is accepted as an Important management tool even today. It
provides a graphic schedule for the planning and controlling of work and
recording progress towards stages of a project. This chart has modern
variations in the forms of Critical Path Method (CPM) and Program
Evaluation and Review Technique (PERT). Gantt chart was translated in
several languages and used In a number of countries.
2.
Industrial
Efficiency. According to Gantt,
Industrial efficiency can only be produced by the application of scientific
analysis to all aspects of the work in progress. The industrial management role
Is to improve the system by eliminating chances and accidents.
- Task and Bonus System. Gantt did not agree with differential piece rate system of Taylor and Introduced the concept of flat bonus on achieving production targets. He introduced the concept of bonus to be paid to supervisors too based on target achievement of workers working under them and how well they taught their workers to improve performance.
FAYOL’S ADMINISTRATIVE MANAGEMENT
Perhaps the real father
of modem operational management theory is the French industrialist Henry Fayol.
His contributions are generally termed as operational management or
administrative management. Fayol’s contributions were first published In book
form titled ‘Administration Industrlelle at Generale’ In French
language, In 1916. However, the book was not made available outside France and
was not translated until 1929. Its English version was published In 1949 in the
USA. Therefore, In the early period, Fayol’s contributions could not make much
impact on the development of management thought. However, after the publication
of his book In English, he got prominence in the field of management very
quickly.
Fayol looked at the
problems of managing an organization from top management point of view. He has used
the term ‘administration instead of management emphasizing that there is unify
of science of administration. For him, administration was a common activity and
administrative doctrine was universally applicable. From administrative point
of view, he placed commerce, industry, religion, philanthropy, and the State on
equal footing. His administrative
science can be applied equally well to public and private affairs. Therefore,
management Is a universal phenomenon.
Fayol
has divided his approach of studying management into three parts: (i)
managerial qualities and training, (ii)
general principles of management, and (iii) elements of management.
Foyol has given fourteen
principles of management. He has made distinction between management principles and management
elements. While management principle is a fundamental truth and establishes
cause-effect relationship, management element denotes the function performed by
a manager. While giving the management principles, Fayol has emphasized two
things: (i) The list of management principles is not exhaustive but suggestive
and has discussed only those principles which he followed on most occasions.
(iii)Principles of management are not rigid but flexible. According to him,
there is nothing rigid or absolute in management affairs; it is all a question
of proportion. Therefore, principles are flexible and capable of being adopted
to every need. It is a matter of knowing how to make use of them which is a
difficult art requiring intelligence, experience, and proportion. Various
principles of management are as follows:
Managerial Qualities and
Training
Fayol was the first
person to identify the qualities required in a manager. According to him, there
are six types of qualities that a manager requires. These are as follows:
1. Physical (health, vigour, and address);
2. Mental (ability to understand and learn, Judgement,
mental vigour, and capability);
- Moral (energy, firmness, Initiative, loyalty, tact, and dignity);
- Educational (general acquaintance with matters not belonging exclusively to the function performed);
- Technical (peculiar to the function being performed); and
- Experience (arising from the work).
Fayol has observed that
the most important ability for a worker is technical; the relative importance
of managerial ability increases as one goes up the scalar chain, with insight
becoming the most important ability for top level executives. On the basis of
this conclusion, Fayol recognized a widespread need for principles of
management and for management teaching. He held that managerial ability should
be acquired first in school and later in the workshop. In order to acquire
managerial knowledge, he developed principles of management to be taught in
academic institutions.
1.
Division
of Work. Fayol has advocated
division of work to take the advantage of
specialization.
According to him, specialization belongs to natural order. The workers always
work on the same part, the managers concerned always with the same matters,
acquire an ability, sureness, and accuracy which increase their output. Each
change of work brings need for training and adaptation which reduces output.
However, division of work has its limits and may not be exceeded. This division
of work can be applied at all levels of the organization.
2.
Authority and Responsibility. Authority and responsibility are related, with
the latter the corollary of the former and arising from It. Fayol finds
authority as a continuation of official and personal factors. official
authority is derived from the manager’s position and personal authority is
derived from personal qualities such as intelligence, experience, moral worth,
past services, etc. Responsibility arises out of assignment of activity, in
order to discharge the responsibility properly, there should be parity of
authority and responsibility.
3.
Discipline. All the personnel serving in an organization should be
disciplined. Discipline is obedience, application, energy, behaviour, and
outward mark of respect shown by employees. Discipline mav be of two types:
self-imposed discipline and command discipline. Self-imposed discipline springs
from within the individual and is in the nature of spontaneous response to a
skilful leader. Command discipline stems from a recognized authority-and
utillzes deterrents to secure compliance with a desired action, which is
expressed by established customs, rules, and regulations. The ultimate strength
of command discipline lies in its certainty of application. Such a discipline
can be obtained by sanctions in the forms of remuneration, warnings,
suspension, demotion, dismissal, etc. However, while applying such sanctions,
people and attendant circumstances must be taken into account. This can be
learned by experience and tact of the managers.
4. Unity of Command. Unity of command means that a person should get
orders and instructions from only one superior. The more completely an
individual has a reporting relationship to
a single superior, the less Is the problem of conflict In instructions and the
greaterIs the feeling of personal responsibility for results. This is contrary
to Taylor’s functional foremanship.
Fayol has considered unity of command as an Important aspect in managing an organization. He views
that If it is violated,
authority is undermined, discipline is in jeopardy, order disturbed, and stability
threatened.
5. Unity of Direction. According to this principle, each group of
activities with the same objective must have one head and one plan. Unity of
direction is different from unity of command in the sense that the former is
concerned with functioning of the organization in respect of its grouping of
activities or planning while the latter is concerned with personnel at all
levels in the organization in terms of reporting relationship. Unity of direction
provides better coordination among various activities to be undertaken by an
organization.
6. Subordination
of Individual Interest to General Interest. Common interest is above the individual Interest. Individual
interest must be subordinate to general interest when there is conflict between
the two. However, factors like ambition, laziness, weakness, etc. tend to
reduce the importance of general interest. Therefore, superiors should set an
example in fairness and goodness. The agreement between the employers and the
employees should be fair and there should be constant vigilance and
supervision.
7.
Remuneration of Personnel. Remuneration of employees should be fair and
provide maximum possible satisfaction to employees and employers. Fayol did not
favour profit- sharing plan for workers but advocated it for managers. He was
also in favour of non- financial benefits though these were possible only in
the case of large-scale organizations.
8.
Centralization. Everything which goes to increase the importance of
subordinate’s role is decentralization; everything which goes to reduce it is
centralization. Without using the term centralization of authority’, Fayol
refers the extent to which authority is centralized or decentralized.
Centralization and decentralization are the question of proportion. In small
firms, centralization is the natural order, but in large firms, a series of
intermediaries is required. Share of authority and initiative left to
intermediaries depends on the personal Character of the manager, his moral
worth, the reliability of his subordinates, and also on the conditions or the
business.
9.
Scalar Chain. There should be a
scalar chain of authority and of communication ranging from the highest to the
lowest. It suggests that each communication going up or coming down must flow
through each position in the line of authority.inc* be short-circuited only in
special circumstances when its rigid following would be detrimental to the
organization. For this purpose, Fayol has suggested ‘gang plank' which is used
to prevent the scalar chain from bogging down action. His scalar chain and gang
plank can be presented as follows
In
Figure 2.2, A is the top man
having immediate subordinates B
and L. In turn B and L are having immediate subordinates C
and M. This continues to the level of G and Q. Ordinarily, the communication must flow from A to B to C to D, and so on while
coming from the top to down. Similarly, it must flow from G to F to E, and so on while going up. It means
if any communication is going from F
to P, it will flow from FtoA
via E, D, C and B and coming down to P via L. M, N
and O. Fayol suggests that this scalar
chain system takes time and,
therefore, can be substituted by gang plank (dotted line) without weakening the
chain of command. In order to maintain authority, It Is desirable that
superiors of F and P authorize them to deal directly provided each
informs his superiors of any action taken. Fayol suggested that this system allows F and P to deal In
a few hours with some questions or
other which via the scalar chain would pass through twenty transmissions,
inconvenience people. Involve masses of paper, lose weeks or months to get to a
conclusion, less satisfactory than the one which could have been obtained via
direct contact.
10. Order. This is a principle relating to the
arrangement of things and people. In material order, there
should Be a place tor everything
and everything should be In its
place. Similarly, in social
order, there should be the right man in the right place. This kind of order demands
precise knowledge of the human
requirements and resources of the organization and a constant balance between these requirements
and resources. Normally, bigger the size of the organization, more difficult this balance is.
11. Equity. Equity Is the combination of Justice
and kindness. Equity in treatment and behaviour is liked by everyone and It
brings loyalty In the organization. The application of equity requires good
sense, experience, and good nature for soliciting loyalty and devotion from
subordinates.
12. Stability of Tenure. No employee should
be removed within short time. There should be reasonable security of
lobs. Stability of tenure Is essential to get an employee accustomed to new
work and succeeding In doing It well. Unnecessary turnover is both cause and effect
of bad management.
13. Initiative. Within the limits of authority and
discipline, managers should encourage their employees for tak* initiative.
Initiative is concerned with thinking out and execution of a plan. Initiative
Increases zeal and energy on the part of human beings.
Esprit de Corps. This is the principle of ‘union is strength’ and extension of unity of command for establishing team work. The manager
should encourage esprit de corps among
his employees. The erring employees should be set right by oral
directions and not by demanding written
explanations. Written explanations complicate the matters.
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