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2.10. Meaning of Decision

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42

PRINCIPLES

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MANAGEMENT

In the top-down approach, the total organization is directed through corporate objective provided by the top level of management. In the bottom-up approach, the top-level management needs to have information from lower level in the form of objectives.

DECISION-MAKING

2.10. MEANING OF DECISION

A decision is a choice between two or more alternatives. This implies three things:

When managers make decisions they are choosing right one from alternatives,

They are deciding what to do on the basis of some conscious, and

Deliberate logic or judgment.

A decision may be defined, in terms of commitment of resources—raw materials, machines, finance, time, efforts etc. in a particular channel of thinking and action.

For example, a decision to advertise the product, involves the time, effort, finance of the marketing department in preparation of advertisement programme, its implementation and reviewing its progress.

Whenever a manager takes a decision, his thinking and actions are involved in a particular direction. Whenever the decision is implemented, it implies commitment of precious organizational resources in that particular direction.

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1.6. Management Process

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BASICS

OF

M ANAGEMENT

5

Warren Haynes and Joseph Massie classifies management functions into decision-making, planning, organizing, staffing, directing, controlling, and communicating.

Luther Gulick, states seven such functions under the catch word “POSDCORB”

Which stand for

P

Planning

O

Organizing

S

Staffing

D

Directing

Co

Coordinating

R

Reporting

B

Budgeting

As per managers are concerned, the following five functions are essential. They are Planning,

Organizing, Staffing, Directing, and Controlling. In addition to above five functions, the two functions such as Innovations and representation are also necessary for managers.

1.6. MANAGEMENT PROCESS

There is enough disagreement among management writers on the classification of managerial functions. Some classify these functions into four types, some into six or seven. The terminology is also not always alike, different authors offering different names for the same functions of management. For managerial purpose, the following five functions are very essential for managers. They are planning, organizing, staffing, directing and controlling.

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1.3. Nature/Characteristics of Management

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PRINCIPLES

OF

MANAGEMENT

According to this definition, management is a process a systematic way of doing things.

The four management functions included in this process are planning, organizing, directing and controlling.

Planning refers manager’s think of their actions in advance. Their actions are usually based on some method, plan or logic, rather than on a hunch.

Organizing refers manager’s coordinate the human and material resources of the organization.

Actuating refers managers motivate and direct subordinates

Controlling refers attempts to ensure that there is no deviation from the plan or norms.

This definition also indicates that managers use people and other resources such as finance, equipment’s etc. in attaining their goals.

Finally, the definition states that the management involves the act of achieving the organization’s objectives. These objectives will, of course, vary with each organization.

The following chart clearly presents this definition of management.

Basic Resources (6M)

Fundamental Functions

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5.3. Nature/Characteristics of Control

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5.3. NATURE/CHARACTERISTICS OF CONTROL

1. Control process is universal. Control is essential function in any organization whether it is an industrial unit, university, government office, hospital etc.

2. Control is a continuous process. Control is a never-ending activity on the part of managers. It is a non-stop process. The manager watches the operation of the management and to see whether they are going towards the desired end and if not actions are not taken to correct them.

3. Control is action based. Action is essential element of the control. It is the action, which ensures performance according to the decided standards.

4. Control is forward looking. Control is linked with future not past. A proper control system prevents losses, minimizes wastages. It acts as a preventive measure.

5. Control is closely linked with planning. Plan gives the direction to various business activities while control verifies and measures the performance of these activities and suggests proper measures to remove the deviations.

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2.1. Meaning

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Chapter

2.1.

2

PLANNING

MEANING

Planning is the fundamental/primary function of management. Planning is the function that determines in advance what should be done. It is looking ahead and preparing for the future. It is a process of deciding the business objectives and charting out the methods of attaining those objectives. In other words, it is the determination of what is to be done, how and where it is to be done, who is to do it and how results are to be evaluated. Plans made by top management of the organizations whole may cover periods as long as five or ten years. Also, plans made by middle or first line managers, cover such shorter periods. Such plans may be for the next days or weeks, or months, etc… for example, for a two-hour meeting to take place in a week.

2.2. DEFINITION OF PLANNING

There are numerous definitions of planning. Different experts have defined different points of view.

“Planning is an intellectual process, the conscious determination of course of action, the basing of decision on purpose, acts and considered estimates”.

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