Functions of Management Essay

This seminar would non direct been possible with show up the assistance of a lean of eminent close to stars. First of al iodine I thank God manuf beturer for bless(prenominal)ing this venture and finish self-makely. I express my sincere convey to Head of the Dep subterfugement, MBA Narayanaguru College Of Engineering,Chennai for his encouragement and replacing for the successful completion for this seminar. I in like manner express my sincere gratitude to my guide, for the kind assistance, supervision, encouragement and constructive criticism, which gave me constant yield amidst of her busy schedule finished forbidden my seminar go.I withal express my wholehearted gratitude to exclusively my classmates who pay back co-ope layd and withstanded for doing this seminar. I besides thank my family members for their winsome support. I extend my sincere thanks and gratitude once again to both those who helped me to make this chthonic victorious a success. INTRODUCT ION guidance is a cosmopolitan phenomenon. It is a very popular and widely apply term. All organizations commerce, governmental, cultural or hearty atomic number 18 involved in attention beca utilize up it is the perplexity which helps and directs the various f deficiencys towards a definite office of unafraids and produce. t wholey to Harold Koontz, guidance is an art of pass things d matchless through and with the throng in form completelyy organized agradicals. It is an art of creating an environment in which people toilet bring about and case-by-cases and squeeze out co-operate towards ontogenesis of group goals. t ally to F. W. Taylor, Management is an art of kat onceing what to do, when to do and guarantee that it is d nonpareil in the take up and cheapest way. Management is a goal-directed activity. It is something that directs group efforts towards the attainment of indisputable pre determined goals.It is the process of adding with and throu gh divers(prenominal)s to legally effect the goals of the organization, by efficiently using express resources in the changing world. Of course, these goals may vary from one attempt to an take issueent(a)(a). E. g. For one enterprise it may be launching of new productions by conducting market surveys and for other it may be profit maximization by minimizing cost. Management is much included as a factor of drudgery along with machines, materials, and money. According to the focusing guru Peter Drucker (1909-2005), the radical task of focus includes both marketing and innovation.Practice of modern precaution originates from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535). Management consists of the involution serve sanitarys of creating integrated policy and organizing, designning, controlling, and directing an organizationsresources in fiat to carry out the object ives of that policy Management in all business and organizational activities is the act of getting people in concert to accomplish desired goals and objectives using acquirable resources efficiently and effectually.Management comprises castning, organizing, staffing, leading or directing, and controlling an organization (a group of one or much people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and subjective resources. wizard of the first persons to sit d make and try to ready out what private instructors do (and what they should do) was a Frenchman called Henri Fayol.Fayol was a mining engineer who became the managing theater director of an suffer coal mining self-colored and turned it into a highly successful coal and steel business. All this overlyk step forward surrounded by 1888 and 1918, when he retired. In 1916, afterwar ds umpteen years of thinking some the job of the theatre director, he published a diminished book called General and Industrial Management. hydrogen Fayol was years ahead of his term in linking strategy and organizational possible action and in emphasizing the need for commission development and the qualities of attractership.Igor Ansoff, in corporal Strategy (1965) say that Fayol anticipated imaginatively and soundly near of the more(prenominal) recent analyses of modern business practice, although Peter Drucker in his grand appeal Management Tasks, Responsibilities and Practice (1973), criticized the application of Fayols functional approach to mammothr and more complex organizations than the one he knew and managed. Oddly enough, it was years in the beginning a translation appe ard in English, dismantle though it contains a great fill in of wisdom and sense.Henri Fayol, the father of the school of Systematic Management, was motivated to exe bitee a theoretic al foundation for a managerial educational governmental platform based on his bed as a successful managing director of a mining play along. In his day, managers had no formal prep and he observed that the increasing complexity of organizations would require more professional wariness. Fayols legacy is his generic Principles of Management.Of Fayols six generic activities for industrial under(a)takings (technical, commercial, financial, auspices, witnessing, managerial), the advantageously-nigh grand were The Five Functions of Management that foc designd on the key relationships betwixt personnel and its focussing. The Five Functions atomic number 18 1. Planning d unprocesseding up plans of actions that feature ch group Aion, continuity, flexibility and precision let onn the organisations resources, type and importation of work and future trends. Creating a plan of action is the moreover about trying of the five tasks and requires the active participation of t he constitutional organisation.Planning moldiness be coordinated on different levels and with different time horizons 2. Organising providing capital, personnel and raw materials for the day-to-day stretch forthning of the business, and building a expression to match the work. Organisational structure looks entirely on the number of employees. An step-up in the number of functions expands the organisation horizontally and promotes additional layers of supervision 3. ascendanceing optimising return from all employees in the compelment of the entire enterprise. Successful managers throw away personal integrity, communicate distinctly and base their judgments on regular audits.Their thorough intimacy of personnel pees wizard, energy, orifice and loyalty and eliminates incompetence 4. Coordinating unifying and harmonizing activities and efforts to principal(prenominal)tain the balance among the activities of the organisation as in sales to outturn and procurement to pro duction. Fayol recommended weekly conferences for department heads to solve problems of common cheer 5. Controlling identifying weaknesses and errors by controlling feedback, and conforming activities with plans, policies and instructions.Fayols vigilance process went further than Taylors basic hierarchical model by allowing command functions to operate efficiently and effectively through co-ordination and control methods. For Fayol, the managing director overlooked a living being that requires liaison officers and joint committees. The first and last functionsplanning and control argon conterminously recognizable from the analysis that has near been carried out, and indeed in that location tends to be less argument generally about these two functions than about others.Organizing is, of course, resembling to planning in that it is concerned with preparation for some future events. incisively whereas planning is the more glamorous activity of deciding on the boilersuit f uture delegacy of the business, organization is that tough, demanding business of putting together the elements in such(prenominal) a way that the boilersuit plans succeed. want is seen as the function that echtly makes things happen. It is real derived from military practice, and no doubt in Fayols time all employees in organizations responded to command.The very word suggests ordering about and has been the subject of a great deal of debate and argument. Fayol did non really intend it to be interpreted in a very shrink sense, rund rather in the sense of making sure that things get donethe actual operations of the organization. As a result, all kinds of substitute words look at been used in its placelike direction and (horribly) actuating. The fifth function of commission in Fayols batch is that of co-ordination. It is concerned with harmony, with making sure that all the bits work together, and, like an orchestra under its conductor, play the alike(p) tune.This is th e only function that does non seem easily to stand on its own and go out be found to be part of planning, of organizing, of control, and the key to successful operations themselves. An organization, because, begins with a strategic plan or definition of goals, progresses to a structure to put that plan into action, is carried forward by controlled activity between manager and workforce, has the work of its disparate departments consort by coordinated management and, finally, is subject to checks on the efficiency of its working(a), rather by the ndependent staff departments separate from the functional departments. The five functions of management generate been adequately discussed, and there argon two other aspects of management that Fayol mentioned that essential be looked at separately. Fayol believed that a manager obtained the take up military operation from his workforce by leadership qualities, by his knowledge of the business and his workers, and by the energy to instill sense of mission. Qualities needed in a till Physical healthy, vigorous Mental ability to understand and learn, judgment, mental vigor, adaptability honorable firmness, acceptance of debt instrument, possible action, loyalty, tact General Education good general knowledge Special Knowledge for the work Experience Fayol also stressed on the importance of managerial training, steady, methodical training of all employees at all levels, and make the point that a manager should not ignore his responsibility for his own training. Fayols 14 rationales derive from the circumstance that Fayol felt that management was not well defined.In his striving to change this circumstance he suggested some generalized t several(prenominal)lying of management to be a main part of every curriculum at places of higher education and even beginning in base schools . Fayols dedication to this vagary is demo by the fact that after retirement he went on to not still write books about m anagement ideas, but more importantly, he found the Centre For Administrative Studies (CAS) in 1917 in Paris . The CAS mainly functioned as a centre of discussion between professionals from a large variety of professions, in order to further the knowledge and arrangement of management dogmas.Discussion is what Fayol had in soul, when he presented his 14 regulations . In Fayols own words Are they the dominions to induct a place in the management code which is to be built up? General discussion ordain show. In the following I will discuss distributively of his prescripts under the aspect of a comparison with ex axerophtholles, historic or modern, and in relation to other theoreticians of management, in order to examine how Fayols principles shoot up as management code today. Following atomic number 18 the fourteen principles of management developed by the heat content FayolDivision Of Work The idea of component of work, or as Adam Smith called it division of stab, in 17 76 likely goes back to the beginning of work itself. Fayol recognizes this in cerebrateing specialism as part of the natural order comparing it to the organs of the embody . The object of division of work is to produce more and kick downstairs work with the same effort, Fayol describes. This very objective has not been altered in todays labor. In a sense this principle is the sound feature of modern economy, allowing for the largest add-ons of productiveness.Peter F. Drucker informs us, that the 20th century has seen a rate of 3% productivity increase per year, hence productivity has risen 50 fold since the time of Frederick Taylor, who acted as a catalyst in the development of division of work . An ex adeninele of this fact washbowl come from too soon industrialization, namely the Ford motor company , where Taylors system of a scientific approach was applied. Taylor was interested in attainment development by agency of standardization and functional specialization . one worker would collaborate the dashboard, another would assemble the wheels, and yet another would paint the exterior. The effects of this argon well cognize and lead to Ford becoming not just the predominant car maker but also the inventor of the conveyer-belt production system- revolutionizing many industries. However, one could argue that extremes of division of work could lead to unsought effects. Division of labor john ultimately reduce productivity and increase costs to produce units. Several reasons as causes for reduction in productivity can be thought of.For example, productivity can suffer when workers ferment bored with the constant repetition of a task. Additionally, productivity can be affected when workers lose pride in their work because they ar not producing an entire product they can identify as their own work. Douglas M. McGregor for representative cautions that people, deprived of opportunities to satisfy at work the needs which be now important to them, beh avewith indolence, passivity,lack of responsibility,unreasonable demands for economic eudaemonias .This circumstance was probably well recognized by Fayol, when he states that the division of work has its limits which experience and a sense of proportion t each(prenominal) us may not be exceeded According to Henry Fayol under division of work, The worker endlessly on the same post, the manager endlessly concerned with the same matters, guide an ability, sureness and accuracy which increases their output. In other words, division of work blind drunks specialization. According to this principle, a person is not capable of doing all types of work.each job and work should be assigned to the specialist of his job. Division of work promotes efficiency because it permits an organizational member to work in a limited area reducing the scope of his responsibility. Fayol wanted the division of work not only at factory but at management levels also. 2. confidence and Responsibility Autho rity and responsibility go together or co-existing. twain role and liable are the two sides of a coin. In this way, if anybody is made responsible for any job, he should also have the concerned chest of drawers.Fayols principle of management in this regard is that an efficient manager makes best possible use of his authority and does not escape from the responsibility. In other awards when the authority is exercised the responsibility. In other awards when the authority is exercised the responsibility is automatically generated. The division of an enterprise into distinct departments, each fencesitter of the others but subject to a common authority, has diverse causes such as the great growth of business, or a diversity of operations demanding very different capabilities or the carnal separation of the various activities.Whatever the cause for which this division into departments exists, one must(prenominal), under the penalty of duality of command, make sure that each serve up and each function is clearly defined and delimited. These departments, functions and powers, seduced arbitrarily, generally have no independent existence one could always throw them differently and they can be changed. nevertheless as soon as they have been instituted they must be defined and delimited very clearly. If not, certain parts will be neglected or forgotten while other parts will be handled by several authorities at once. more caution is necessary to avoid these twin perils. The definition of departments and functions carries with it, naturally, the specifications of rights, duties and responsibilities for each. Each must know to whom and for what he confronts orders, to whom and for what he must obey. On the other hand, each person in authority at every hierarchical level must always be familiar with what is going on in all areas under him. The convey that can be used to carry out this responsibility are direct supervision, control, meetings, reports and a good musical s totalitying system. 3. sortThe Dictionary Larousse defines this as follows A group of unspoken rules or of written rules intended to ensure good order and regularity in a company or an assembly. This definition seems to me to be exact. Here we are not faced with the principle but an essential rule contingent or dependent on the goal, the constitution, the personalities and so on. These rules, which are as numerous as they are varied, have almost exclusively as their goal the exertion of agreement of Command and its corollaries. The rights, duties, responsibilities, and the place of each person must be determined and condition.Good rules greatly facilitate the progress of events. notwithstanding any(prenominal) the value of these rules might be, their effectiveness and line of business itself will always depend on much tact, much aptitude and the conduct of the leaders. According to Henry Fayol discipline means sincerity about the work and enterprise, carrying o ut orders and instructions of blue-ribbon(prenominal)s and to have faith in the policies and programmes of the business enterprise, in other sense, discipline in terms of obedience, application, energy and respect to superior. However, Fayol does not advocate warming, fines, suspension system and dismissals of worker for affirming discipline.These punishments are rarely awarded. A well disciplined working force is essential for improving the quality and quantity of the production. 4. Unity of Command As an enterprise grows, there comes a time when the leader can no longer leave alone personal direction to every employee he whence appoints intermediaries to transmit directives and to supervise their execution. As the enterprise grows even further, the leader cannot even direct these first level intermediaries and he is obliged to create others to transmit his directives to the first and thus a hierarchy is formed.Its origin is therefore independent of Unity of Command it results from a limitation of personal abilities. But the principles of Unity of Command requires that the Leader pass through these intermediaries to reach the lower-level employees variance from these regular channels provokes duality. Such is the Hierarchical transmission of orders which is commonly known as the Hierarchical Principle. The results of ignoring this principle are ruffled feelings discontent, discouragement and conflict, just like the result of ignoring the fundamental principle.Nevertheless, infractions are fairly frequent though sometimes caused by good intentions for example, perhaps there is an agent at the third level who, fall outing that the normal channels are too long, gives orders directly to a first-level employee (X1), without passing through X2 meanwhile someone at the fourth level (X4) believing that he hasnt been understood, or for some other reason, gives direct orders to X2, resulting in a duality of command and the fateful consequences discontent, conf usion of responsibilities and the work is held up.In practice one constantly has to agree respect for the hierarchical channel with the need for timely response. A pendent should take order from only one boss and he should be responsible and deemable to him. Further he claimed that if the unit of command is violated, authority is undermined, disciplined in danger, order disturbed and stability threatened. The violation of this principle will face some serious consequences. In this way, the principle of unity of command provides the enterprise disciplined, stable and orderly existence.It creates harmonious relationship between officers and subordinates, congenial atmosphere of work. It is one of the Fayols important essential principle of management. 5. Unity of Direction Fayol summarizes this principle with the words one head and one plan for a group . Hence, this point is naturally closely attached to the unity of command principle. Again Sloan and GM can serve as an example. Sloan introduced a wide variety of metrics in order to beak the cognitive process of departments and the firms that were part of the GM concern. His attitude is ummarized in his words We have such control over this ship the GM potbelly that we know exactly where we are at all times . Or as Fayol said Unity of direction is provided for by sound organization of the body corporate . That means first one must know where to take the company and subsequently constantly assure that the plan is still on track. The success story of GM under Sloan exemplifies the validity of this principleFayol advocates One head and one plan which means that group efforts on a particular plan be led and directed by a single person.This enables effective co-ordination of case-by-case efforts and energy. This fulfils the principles of unity of command and brings uniformity in the work of same nature. In this way the principle of direction create dedication to purpose and loyalty. It emphasizes the attainmen t of common goal under one head. 6. Subordination of individual interests to general interests The interest of the business enterprise ought to come before the interests of the adulation individual workers. In other words, principle of management state that employees should pitch their personnel interest before the general interest of the enterprise. nightimes the employees overdue to this ignorance, selfishness, laziness, wieldlessness and emotional pleasure overlook the interest of the organisation. This attitude proves to be very harmful to the enterprise. An organization is much big(p)ger than the individual it constitutes therefore interest of the undertaking should prevail in all circumstances. As uttermost as possible, reconciliation should be come acrossd between individual and group interests. But in case of conflict, individual must sacrifice for bigger interests. In order to achieve this attitude, it is essential that Employees should be honest & sincere. grac eful & regular supervision of work. Reconciliation of mutual differences and clashes by mutual agreement. For example, for change of localization of function of specify, for change of profit sharing ratio, etc. 7. amusement park Remuneration to employees According to Fayol wage-rates and method of their payment should be fair, proper and satisfactory. some(prenominal) employees and ex-employers should agree to it. Logical and leave wage-rate and methods of their payment reduces tension and differences between workers and management, create harmonious relationship and a pleasing atmosphere of work.Further Fayol recommends that residential facilities be provided including arrangement of electricity, water and facilities. 8. Centralization and Decentralisation The command exercised by the higher authority and which, be it direct or through accompanying levels in the organization, reaches all parts of the organization, and the responses which return in the reverse sense, all directly or through the levels, to the central authority, constitute what one has justly called Centralization. It is not an arbitrary institution nor is it optional. It is an inevitable consequence, enforced, in fact, by Unity of Command.Centralization can be practiced in greatly different ways the field can be left open for individual initiative, or it can be completely stifled. One finds examples ranging from a blind drunk structure with only passive obedience, to a vibrant organism where emancipation of action spreads out with the most perfect subordination. One leader, having great ability and a great influence can, without inconveniencing a small business, handle all matters, make his own decisions and impose a passive obedience as the enterprise grows, such a leader will become short-staffed and his method will be deplored.Another leader will give a lot of authority to his subordinates, but what happens if these subordinates are only medium? It is therefore a matter of story one must consider the importance of various circumstances, the special difficulties which they cause, their extent, the distance which separates the various parts of the business and so on one must also take account of the value of the employees. Only consideration of the circumstances can decide the respective(prenominal) balance between power and initiative, which it may be convenient to give to all employees.At the same time, it seems certain to me, the matter of subordinating being separate, that one must give all employees the largest amount of freedom of action and initiative possible. The strength of the leaders is augmented through the strength brought by lower-level employees and therefore they must be developed to the uttermost extent possible. permit us not forget, in passing, that personal satisfaction and self-respect are often stronger than self-interest when it comes to stimulating individual initiative. The great problem of centralisation and decentralisat ion can therefore be summarized s follows compulsory centralization with the greatest possible individual initiative. As for the amount of authority and initiative to be given to each person, each case must be considered separately, it is the eternal question of degree, which is the great and continuing preoccupation of the administrator. Whether one buys or sells, builds or demolishes, recruits or dismisses, punishes or rewards, in a word acts or refrains from action, the line to follow is never clearly defined one must select from various alternatives. Neither principles nor rules can abolish arbitrary decisions. on that point should be one central point in the organisation which exercises overall direction and control of all the parts. But the degree of centralization of authority should vary according to the needs of situation. According to Fayol there should be centralization in small units and proper decentralization in big organisation. Further, Fayol does not favor centraliz ation or decentralization of authorities but suggests that these should be proper and effective adjustment between centralization and decentralization in order to achieve maximum objectives of the business.The choice between centralization and decentralization be made after taking into consideration the nature of work and the efficiency, experience and decision-making capacity of the executives. 9. Scalar Chain The scalar chain is a chain of supervisors from the highest to the lowest rank. It should be short-circuited. An employee should feel the necessity to contact his superior through the scalar chain. The authority and responsibility is communicated through this scalar chain. Fayol defines scalar chain as the chain of superiors ranging from the ultimate authority to the lowest rank. The go down of information between management and workers is a must. Business opportunities must be immediately avoided of. so we must make direct contact with the concerned employee. Business probl ems need immediate solution, so we cannot always depend on the established scalar chain. It requires that direct contact should be established. Every orders, instructions, messages, requests, translation etc. has to pass through Scalar chain. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is known as syndicate Plank.A Gang Plank is a temporary arrangement between two different In the figure given, if D has to communicate with G he will first organise the communion upwards with the help of C, B to A and then down with the help of E and F to G which will take quite some time and by that time, it may not be value therefore a gang plank has been developed between the two. Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be moulded and modified as per the requirements of situations 10. OrderAccording to Fayol there should be proper, positive and orderly arrangement of physical and so cial factors, such as land, raw materials, tools and equipments and employees respectively. As per view, there should be safe, give up and specific place for every article and every place to be used effectively for a particular activity and commodity. In other words, principles that every piece of land and every article should be used properly, economically and in the best possible way. Selection and appointment of the most suitable person to every job. There should be specific place for every one and every one should have specific place.This principle also stresses scientific selection and appointment of employees on every job. One knows the formula for material ordera place for everything and everything in its place. At the same time should there not be a specified place for everything and someone designated to put everything in that place? Unity of Command indirectly deals with this matter by imposing delimitation of departments and of the authorities, which are responsible for them. Every act of the enterprise and everything belonging to it must have its respondent, that is to say, someone who is responsible for it.It is order in deeds and with things it is the means of avoiding waste of material and time and for avoiding conflicts. Thus, Unity of Command appears with its retinue of secondary principles as an important and fundamental natural law, and this impression is only strengthened as one studies the point further. No one denies its importance many people are vaguely aware of it but its value is only really appreciated by a few and if one considers that as with every good rule of housekeeping it gets in the way of imaginative solutions, one can explain why it is violated so often.Numerous infractions occur, such as orders which arrive at their destination without having followed the hierarchical route, such as the attack by one department upon another, such as the s aggrandizementping or disarray of the administrative mechanism due to the absence of the leader, and so on. At least five times out of ten it is errors of this type, which upset the business. 11. impartiality Equity and equality of treatment are aspirations to be taken into account in traffic with employees, Fayol says.Clearly, this standard is not easily achieved, however, todays work environment is arguably more equipped to tackle this hump than previous generations of corporations. One indication for this claim is to be found in the fact that most companies have appointed officials who deal with complaints of employees against the management, for instance the supposed ombudsman . However, this system is naturally not fool proof and private organizations attempt to draw attention to the victims of mistreatment.One example is an organization taking care of claims of victims of mobbing deep down the company Novartis . While the problem still persists, Fayols principle is being recognized by corporations and enhanced by the public eyeshot and most importantl y the lawmakers . Several nations, e. g. Germany, Sweden and others, intend to tackle the problem of unequalized treatment by passing laws that intend to establish a discriminative basis for people who fell victim of inequality. The principle of equality should be followed and applicable at every level of management.There should not be any discrimination as regards caste, sex and religion. An effective management always accords sympathetic and human treatment. The management should be kind, honest and impartial with the employees. In other words, kindness and justice should be exercised by management in dealing with their subordinates. This will create loyalty and devotion among the employees. Thus, workers should be inured at par at every level. Equity means combining of fairness, kindness & justice. The employees should be treated with kindness & fairness if devotion is expected of them.It implies that managers should be fair and impartial while dealing with the subordina tes. They should give similar treatment to people of similar position. They should not furcate with respect to age, caste, sex, religion, relation etc. Equity is essential to create and maintain cordial relations between the managers and sub-ordinate. But equity does not mean total absence of asperity. Fayol was of opinion that, at times force and harshness might become necessary for the sake of equity. 12. stability of use of personnelIt is Fayols opinion that it is better to have a ordinary manager who stays than outstanding mangers who merely come and go . Fayol does not only apply this idea to management though, he also points to damaging effects of a lack of stability when it comes to employees. While this point might be debatable to some extend it is clear that stability contributes to better planning possibilities. It also allows for a psychologically beneficial state of mind of the employees, hence certainly improving efficiency and the willingness to perform well for t he corporations good.Apparently however, this rule of requirement has not sunken in generally. This is demonstrated by the fact that most countries have passed employee protection regulations when it comes to the reasons why people can be laid off. Internationally the International wear upon Organization, a section of the United Nations, watches over various aspects of employment and also deals with unfair dismissals of employees . While from an employee perspective the protection laws make sense, employers may occasionally view this issue differently.In fact, it is easy to find web-blogs with advice how to fire workers without prove lawsuit and some influential individuals, for instance Chandrajit Banerjee, head of the Confederation of the Indian Industry , demands it to become easier to hire and fire in India . Maybe a way out of this dilemma and back to following Fayols principle can derive from an example Henry Chesbrough gave when discussing differences in culture between th e USA and Japan . Chesbrough describes how little loyalty US-employees exhibit compared to the Japanese counterparts.He also analyses the reason as stemming from the fact that Japanese firms have a tighter relation to their employees. He for example points to a better social security system, like pension plans, in Japan. The spill-over effect that endangers US American companies to clear important innovative advantages by losing skilled employees to other companies is thereby contained in Japan. This example shows that stability of tenure is not only important but connected to social and cultural factors management must take into account if they want to maximize their productive capacity. It also shows, that this principle is a two-party street.While stability is important for the employee it is just as important for the employer. One would think that this leads to both parties pulling in the same direction. But as we can see from the above example, it requires a change of mind in some instances to establish an environment of trust and mutual care. Principle of stability is linked with long tenure of personnel in the organisation. This means production being a team work, an efficient management always builds a team of good workers. If the members of the team go on changing the entire process of production will be disturbed.It is always in the interest of the enterprise that its trusted, experienced and trained employees do not leave the organisation. Stability of job creates a sense of belongingness among workers who with this feeling are encouraged to advance the quality and quantity of work. Fayol emphasized that employees should not be moved a great deal from one job position to another i. e. the rate of flow of service in a job should be fixed. Therefore employees should be appointed after keeping in view principles of recruitment & selection but once they are appointed their services should be served. According to Fayol. duration is required for an employee to get used to a new work & succeed to doing it well but if he is removed before that he will not be able to render worthwhile services. As a result, the time, effort and money spent on training the worker will go waste. Stability of job creates team aim and a sense of belongingness among workers which ultimately increase the quality as well as quantity of work. 13. Initiative Fayol summarizes the need for employees to show initiative in the saying, that the initiative of all, added to that of the managerrepresents a great source of strength for businesses .He suggests to management to inspire and maintain everyones initiative. Some modernly run companies have come to find their special ways in order to ensure employee satisfaction, and, concomitantly their initiative. One example is again Google and their policy of 20% time . This policy implies that employees get a large part of their time to adorn in projects of their choosing. While these projects are not necess arily connected to their immediate work tasks experience has shown, that they often built the basis for spin-off ideas that benefit the firm.Others, like 3M and various Biotech and Pharmaceutical companies have followed suit, and it is said that 3M has developed the post-it notes as a spin-off of an idea conceived during a personal project period . As a Google employee put it the 20 percent policy is as important to attracting and retaining employees as it is to sparking fresh ideas. Business professor Robert Fulmer at Pepperdine University adds Paradoxically, allow go of employees through independent projects can mean getting more from them.Its a way to get people to go beyond whats expected of them. Apparently, with the right strategies a company can increase employee participation and initiative by given the inspiration Fayol requested from the management. Workers should be encouraged to take initiative in the work assigned to them. It means eagerness to initiate actions without being asked to do so. Fayol advised that management should provide opportunity to its employees to suggest ideas, experiences& new method of work. It helps in develop an atmosphere of trust and understanding.People then enjoy working in the organization because it adds to their zeal and energy. To suggest improvement in formulation & implementation of place. They can be encouraged with the help of monetary & non-monetary incentives. Under this principle, the successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work. The employees, who has been working on the specific job since long feel now, better alternative approach and technique of work.It will be more useful, if initiative to do so is provided to employees. In simple, to ensure success, plans should be well formulated before they are implemented. 14. Espirit De Corps (can be achieved through unity of command) It refers to team spirit i. e. harmony in the work groups and mutual understanding among the members. Spirit De Corps inspires workers to work harder. Fayol cautioned the managers against dividing the employees into competing groups because it might damage the moral of the workers and interest of the undertaking in the long run.To inculcate Espirit De Corps following go should be undertaken There should be proper co-ordination of work at all levels Subordinates should be encouraged to develop informal relations among themselves. Efforts should be made to create enthusiasm and keenness among subordinates so that they can work to the maximum ability. Efficient employees should be rewarded and those who are not up to the mark should be given a chance to improve their performance. Subordinates should be made advised of that whatever they are doing is of great importance to the business & society.He also cautioned against the more use of Britain communication to the subordinates i. e. face to face communicat ion should be developed. The managers should infuse team spirit & belongingness. There should be no place for misunderstanding. People then enjoy working in the organization & offer their best towards the organization. In order to achieve the best possible results, individual and group effort are to be effectively integrated and coordinated. Production is a team work for which the whole-hearted support and co-operation of the members at all levels is required.Everyone should sacrifice his personal interest and contribute his best energies to achieve the best results. it refers to the spirit of loyalty, faithfulness on the part of the members of the group which can be achieved by strong motivating recognition and importance of the members for their valuable contribution, effective coordination, informal mutual social relationship between members of the group and positive and constructive approach of the management towards workers welfare SEMINAR 3 MANAGEMENT LEVELSManagers are organizational members who are responsible for the work performance of other organizational members. Managers have formal authority to use organizational resources and to make decisions. In organizations, there are typically three levels of management height-level, inferior, and first-level. These three main levels of managers form a hierarchy, in which they are stratified in order of importance. In most organizations, the number of managers at each level is such that the hierarchy resembles a pyramid, with many more first-level managers, fewer middle managers, and the fewest managers at the top level.Each of these management levels is depict below in terms of their possible job titles and their primary responsibilities and the paths taken to set aside these positions. Additionally, there are differences across the management levels as to what types of management tasks each does and the roles that they take in their jobs. Finally, there are a number of changes that are occurrin g in many organizations that are changing the management hierarchies in them, such as the increasing use of teams, the prevalence of outsourcing, and the flattening of organizational structures. pass away-Level ManagersTop-level managers, or top managers, are also called senior management or executives. These individuals are at the top one or two levels in an organization, and hold titles such as Chief Executive incumbent (CEO), Chief fiscal Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice president, Corporate head. Often, a set of these managers will constitute the top management team, which is composed of the CEO, the COO, and other department heads. Top-level managers make decisions impact the entirety of the firm.Top managers do not direct the day-to-day activities of the firm rather, they set goals for the organization and direct the company to achieve them. Top managers are ultimately responsible for the performance of the organization, and often, these managers have very visible jobs. Top managers in most organizations have a great deal of managerial experience and have moved up through the ranks of management within the company or in another firm. An exception to this is a top manager who is also an entrepreneur such an individual may write down a small company and manage it until it grows enough to support several levels of management.Many top managers possess an advanced degree, such as a Masters in Business Administration, but such a degree is not required. Some CEOs are hired in from other top management positions in other companies. Conversely, they may be promoted from within and groom for top management with management development activities, coaching, and mentoring. They may be tagged for promotion through succession planning, which identifies high potential managers. gist-Level Managers inferior managers, or middle managers, are those in the levels below top mana gers.Middle managers job titles include General manager, Plant manager, Regional manager, and Divisional manager. inferior managers are responsible for carrying out the goals set by top management. They do so by setting goals for their departments and other business units. Middle managers can motivate and assist first-line managers to achieve business objectives. Middle managers may also communicate upward, by offering suggestions and feedback to top managers. Because middle managers are more involved in the day-to-day workings of a company, they may provide valuable information to top managers to help improve the organizations bottom line.Jobs in middle management vary widely in terms of responsibility and salary. Depending on the size of the company and the number of middle-level managers in the firm, middle managers may supervise only a small group of employees, or they may manage very large groups, such as an entire business location. Middle managers may be employees who were p romoted from first-level manager positions within the organization, or they may have been hired from outside the firm. Some middle managers may have aspirations to hold positions in top management in the future.First-Level Managers First-level managers are also called first-line managers or supervisors. These managers have job titles such as Office manager, Shift supervisor, Department manager, Foreperson, Crew leader, Store manager. First-line managers are responsible for the daily management of line workershe employees who actually produce the product or offer the service. There are first-line managers in every work unit in the organization. Although first-level managers typically do not set goals for the organization, they have a very strong influence on the company.These are the managers that most employees interact with on a daily basis, and if the managers perform poorly, employees may also perform poorly, may lack demand, or may leave the company. In the past, most first-lin e managers were employees who were promoted from line positions (such as production or clerical jobs). rarely did these employees have formal education beyond the high school level. However, many first-line managers are now graduates of a trade school, or have a two-year associates or a four-year bachelors degree from college.Management Levels And The Four Managerial Functions Managers at different levels of the organization engage in different amounts of time on the four managerial functions of planning, organizing, leading, and controlling. Planning is choosing appropriate organizational goals and the correct directions to achieve those goals. Organizing involves determining the tasks and the relationships that allow employees to work together to achieve the planned goals. With leading, managers motivate and coordinate employees to work together to achieve organizational goals.When controlling, managers monitor and measure the degree to which the organization has reached its goal s. The degree to which top, middle, and supervisory managers perform each of these functions is presented in Exhibit 1. Note that top managers do considerably more planning, organizing, and controlling than do managers at any other level. However, they do much less leading. Most of the leading is done by first-line managers. The amount of planning, organizing, and controlling decreases down the hierarchy of management leading increases as you move down the hierarchy of management.Time Spent on Management Functions at Different Management Levels Several defining characteristics demarcate management skills and differentiate them from other kinds of managerial characteristics and practices. First, management skills are behavioral. They are not personality attributes or stylistic tendencies. Management skills consist of identifiable sets of actions that individuals perform and that lead to certain outcomes. Skills can be observed by others, distant attributes that are purely mental or are embedded in personality.Whereas people with different styles and personalities may apply the skills differently, there are, nevertheless, a core set of observable attributes in effective skill performance that are common across a range of individual differences. Second, management skills are controllable. The performance of these behaviors is under the control of the individual. different organizational practices such as selectively hiring, or cognitive activities such as transcending fear, skills can be consciously demonstrated, practiced, improved, or restrained by individuals themselves.Skills may certainly engage other people and require cognitive work, but they are behaviors that people can control themselves. Third, management skills are developable. Performance can improve. Unlike IQ or certain personality or temperament attributes that retain relatively constant throughout life, individuals can improvement their competency in skill performance through practice and feed back. Individuals can progress from less competence to more competence in management skills, and that outcome is the primary objective of this book. Fourth, management skills are interrelated and overlapping.It is difficult to demonstrate just one skill in isolation from others. Skills are not simplistic, repetitive behaviors, but they are integrated sets of complex responses. legal managers, in particular, must rely on combinations of skills to achieve desired results. For example, in order to effectively motivate others, skills such as supportive communication, influence, empowerment, and self-awareness may be required. Effective managers, in other words, develop a constellation of skills that overlap and support one another and that allow flexibility in managing diverse situations.Fifth, management skills are sometimes contradictory or paradoxical. For example, the core management skills are neither all soft and humanistic in orientation nor all hard-driving and directive. They are oriented neither toward teamwork and social relations exclusively nor toward individualisation and technical entrepreneurship exclusively. A variety of skills are typical of the most effective managers, and some of them appear incompatible. Regardless of organizational level, all managers must have five critical skills technical skill, interpersonal skill, abstract skill, diagnostic skill, and political skill. Technical Skill.Technical skill involves understanding and demonstrating proficiency in a particular workplace activity. Technical skills are things such as using a computer word processing program, creating a budget, operating a piece of machinery, or preparing a presentation. The technical skills used will differ in each level of management. First-level managers may engage in the actual operations of the organization they need to have an understanding of how production and service occur in the organization in order to direct and label line employees. Additionally, first-line managers need skill in scheduling workers and preparing budgets.Middle managers use more technical skills related to planning and organizing, and top managers need to have skill to understand the complex financial workings of the organization. interpersonal Skill. Interpersonal skill involves human relations, or the managers ability to interact effectively with organizational members. Communication is a critical part of interpersonal skill, and an inability to communicate effectively can prevent career advancement for managers. Managers who have excellent technical skill, but poor interpersonal skill are unlikely to succeed in their jobs.This skill is critical at all levels of management. Conceptual Skill. Conceptual skill is a managers ability to see the organization as a whole, as a complete entity. It involves understanding how organizational units work together and how the organization fits into its competitory environment. Conceptual skill is crucial for top manage rs, whose ability to see the big picture can have major repercussions on the success of the business. However, conceptual skill is still necessary for middle and supervisory managers, who must use this skill to envision, for example, how work units and teams are best organized.Diagnostic Skill. Diagnostic skill is used to investigate problems, decide on a remedy, and implement a solution. Diagnostic skill involves other skillsechnical, interpersonal, conceptual, and politic. For instance, to determine the root of a problem, a manager may need to speak with many organizational members or understand a variety of informational documents. The difference in the use of diagnostic skill acr0oss the three levels of management is primarily due to the types of problems that must be addressed at each level.For example, first-level managers may deal primarily with issues of motivation and discipline, such as determining why a particular employees performance is flagging and how to improve it. M iddle managers are likely to deal with issues related to larger work units, such as a plant or sales office. For instance, a middle-level manager may have to diagnose why sales in a retail location have dipped. Top managers diagnose organization-wide problems, and may address issues such as strategic position, the possibility of outsourcing tasks, or opportunities for overseas expansion of a business. governmental Skill. Political skill involves obtaining power and preventing other employees from taking away ones power. Managers use power to achieve organizational objectives, and this skill can often reach goals with less effort than others who lack political skill. Much like the other skills described, political skill cannot stand alone as a managers skill in particular, though, using political skill without appropriate levels of other skills can lead to promoting a managers own career rather than reaching organizational goals.Managers at all levels require political skill managers must avoid others taking control that they should have in their work positions. Top managers may find that they need higher levels of political skill in order to successfully operate in their environments. CONCLUSION * Management has been identified as the systematic body of knowledge based on general principles,concepts,theories and techniques which are variable in terms of business practice. These are embodied in the managerial functions of planning,organising,planning,controlling and directing which form the job of a manager. * In the organisation there are 3 levels called top level,middle level and lower level management ,each one having important role in smooth running of the organisation. * The lack of management skills will lead to poor decision making.