BUREAUCRACY Max Weber, a German Scientist is known as Father Of Bureaucracy. He studied different...

BUREAUCRACY Max Weber, a German Scientist is known as Father Of Bureaucracy.

He studied different types of Business and government organisations and distinguished 3 basic types of administration in them.

1. Leader Oriented

2. Traditional Oriented

3. Bureaucratic Oriented

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Leader Oriented Administration• There is no delegation of management functions

• All Employees serve as loyal subjects of a leader.


Traditional Oriented Administration

• Managerial positions are handed down from generation to generation.

• Who you are is more important than what you can do becomes the primary criteria for work assignment.


Bureaucratic Administration• Delegation of management responsibilities is based on

a person’s demonstrated ability to hold the position.• No person can claim a particular position either

because of his loyalty to the leader or because position has been traditionally held by his members of family.

• People earn positions because they are presumed to be best capable of filling them.

• Weber considers the last type as ideal type of administration


Important Features Of Bureaucratic Administration1. There is insistence on following Standard Rules

Weber believed that the authority in an organisation should be governed by standard rules

OR

Institutional Cult should replace personal cult.

Weber told that this would provide equality in treatment of subordinates and continuity and predictability of action.

This would obviate / prevent the need for searching adhoc solutions to the problems


2. There is systematic Division Of Work

• Increases production by improving efficiency and saving time in changing from one job to another.


3. Principle of Hierarchy is followed

– Each lower officer is under the control and supervision of higher one


4. Its necessary for the individual to have knowledge and training in the Application of Rules because these form the basis on which legitimacy is granted to this authority.

5. Administrative acts , Decisions and Rules are recorded in writing This makes the organisation independent of people besides making people’s understanding more accurate.

6. There is Rational Personnel Administration People are selected based on their credentials and merits and are paid according to their position in the hierarchy. Promotions are made systematically. There is emphasis on winning people’s loyalty and commitment.


Contributions and Limitations of BureaucracyContributions -• Bureaucracy can be viewed as logical extensions of

management when it becomes impossible for 1 person to fulfill all the management functions(Planning, Organising, Directing ,Controlling)

• The concept has enabled most large scale organisations which require functionally specialised staff to train and control the people with heterogeneous backgrounds and to delegate specific responsibilities and functions to them.


Limitations - Important Dysfunctional / Undesirable / non-functional Consequences of Bureaucracy are as follows

1. Overconformity to rules – In a bureaucratic Organisations, employees observe ‘Stick to the rule’ policy because they fear being penalised for violation of these rules. They follow only letter of law without going into its spirit. Eg – a doctor in emergency ward spends precious time in filling various forms before helping the accident victim. Violation of rules beget more rules to take care of violations


2. Buck Passing – In bureaucratic organisations, the employee’s initiative is stifled.

In situations, where there are no rules, employees are afraid of taking decisions independently, lest / else they may be punished for wrong decisions.

Hence they shift decisions to others or postpone them. As a result, office work increases.

3. Categorisation of Queries – In a bureaucratic organisations, probable queries coming from outside are generally classified in advance into a few broad categories. Answers for each category are also prepared in advance. Differences, if any between queries within a category are ignored. On receiving a query, the employee’s job is simply to determine its category and tick the reply applicable to that category.


4. Displacement Of Goals – is a very common phenomenon in bureaucratic organisation and was discovered by German Sociologist Robert Michels.

Goal displacement / Displacement Of Goal takes place when an organisation substitutes for its legitimate goal some other goal for which it was not created, for which resources were not allocated to it and which it is not known to serve.


• A stranger enters an office seeking some information from employee sitting there.

But the employee instead of supplying him the information asks him to follow the rules and go to the enquiry counter.


Displacement of goals can occur in several ways

a. After sometime, leaders may devote much attention and resources to preserve and maintain the organisation itself rather than its initial purpose due to several interest groups in & outside organisation which begin to use organisational goals as means to serve their own individual goals.

b. Employees develop Professional Automation – employees may so intensively internalise the rules that goals which these rules framed to achieve are totally forgotten. The means become more important than ends.


• Eg – If a librarian is praised for the neat and orderly look of the library and not for increase in number of book borrowers.

• If a factory worker is praised for his regular attendance and not for the quality of his performance.

• If a teacher is praised for pass percentage of his students and not for the quality of his instruction.

• Its not surprising if they begin to feel after sometime that orderly look of library , regular factory attendance and high percentage are all what are demanded of them.

c. After sometime, secondary goals of an organisation may completely subordinate its primary goals, so that latter are no longer served effectively.


• Story is told of a transport spokesman who countered complaints that buses often whizzed past waiting commuters by arguing that picking up passengers upset timetables.

• Infact appraisals in many organisations are based on information that is easy to collect rather than that which is intrinsically important


• A university may initiate certain social or extra curricular activities to attract students to classes , but if social or extra curricular activities consume a lot of university’s time and resources, they undermine the achievement of teaching goal.

d. After sometime, sectional interests may develop

among subunits of an organisation and heads of these

units may become so much enamoured with their

section goals that they may forget organisational goals.


5. No real right of appeal – The clients of a bureaucratic organisation feel dissatisfied because they have no real right of appeal. Superiors are often side with a view point of their subordinates.

6. Neglect of Informal groups – Man is imbued / filled with sentiments. Being a social creature , he forms informal groups that play an important role in all organisations. Bureaucratic organisations often ignore existence of informal groups which usually carry out a big chunk of organisational work.


7. Rigid Structure – Precise description of roles and over conformity to rules make bureaucratic structures rigid. Rigid structures though they work well in stable environments, do not cope well with today’s changing environment. Organisation needs flexible structures to frequently interact with their environment for collecting , processing and monitoring information and changing the job description and roles of their employees.


8. Inability to satisfy the needs of mature individuals – Maturity – Immaturity theory laid down by Chris Argyris tells in great detail how bureaucratic organisations are unable to meet the needs of mature individuals who work in them.

• Accordingly, a mature individual wants independence, initiative, self control, opportunity to use his skills and information to plan his future.

• But hierararchy and control features of bureaucratic organisation work against these needs.


Neo-Classical Approaches – called so because they refine and improve classical concepts.

• The Human Relations Movement – Managers still faced difficulties because employees did not always follow predicted or rational patterns of behavior.

• Hence there was an increased interest in helping managers deal more effectively with people side of their organisations .

• Real inspiration for human relations movement came from Elton Mayo & his colleagues at Western Electric Company’s plant in Cicerno, Illinois.


•Plant employed 29,000 workers to manufacture telephone parts and equipment.

•These experiments are described in the following parts


1. Illumination Experiments 2. Relay Assembly Test

Room3. Interviewing Programme 4. Bank Wiring Test RoomExamination of theseexperiments with result isnot discussed


Modern Management Approaches :

I. Behavioral Approach : This approach is improved & more mature version. The findings of the same are given below : Some points are listed below :

a.) Behaviorists prefer more flexible Organization Structure & jobs built around Capabilities & Aptitudes of average employees against Classical Organizations. Classical Organizations are built around traditional concepts of Hierarchical authority, unity of command, line & staff relationships & narrow spans of control. This system is highly mechanistic & degrades human spirit.


b.) Recognizes practical & situational constraints / limitations on human rationality for making Optimal Decisions. In view of Complex nature of Business Problems, this approach attaches great importance to participative & group decision making instead of individuals responsible for solving them.

c.) This approach stresses on desirability of humanizing administration of control process. This encourages process of self direction & control instead of imposed control.


d.) They favor participation in establishment, measurement & evaluation of standards of performance, prompt information feedback, feedback to those who fell below the mark, need for Positive & Reformative measures instead of Punitive Action.

e.) They have made extensive studies on Leadership. Of Course, Democratic form of leadership is desirable, but certain situations may call for Autocratic, Task Oriented Style of Leadership.


f.) Realistic Model of Human Motivation is Complex. Because, different individuals react differently to the same situation or react the same way to different situations. No two individuals are exactly the same. Therefore Manager should evolve strategies to influence people according to their individual needs etc.


ii. Quantitative Approach :• Also called as Management Science Approach.

• The interdisciplinary group of scientists who were engaged for this purpose were OR (Operations Research) teams because their work consisted of analyzing operations.

• Here, we try to construct a Mathematical Model for simulating a given problem.


• By changing the values of variables in the Mathematical model (such as Increasing Cost of Raw Materials) & analyzing the different equations of the model generally with Computer, we try to determine what the effect of each change would be. Thus the OR team presents the Management a Rational Base for Decision making.

• This helps in decision making, it provides Quantitative Tools & Techniques aiding in decision making.

• This facilitates disciplined thinking while defining Management Problems & establishing relationships among variables involved.


• This Approach looks for precision & perfection.

• Widely used in Planning & Control Activities.

• But is uncommon in areas such as Organizing, Staffing & Leading the Organization where Problems are more Human than Technical in Nature.


iii. Systems Approach : This provides the Manager of an Organization an

Integrated Approach to Management Problems by treating MANAGEMENT AS A SYSTEM.

The Important Features are given below :


A System is a set of Interdependent Parts which together form a Unitary Whole to perform a given function.

An Organization is a System consisting of Four Interdependent Parts, namely, Task, Structure, People & Technology.

No part of the System can be accurately analyzed & understood apart from the whole system (because of the Multiplicity of Factors affecting a Man.) Each part bears a relation of Interdependence to every other part. Systems Approach gives a fair idea.


A system has flows of Information, Material & Energy. They enter the system from environment as Inputs & leave the System as Outputs. For Eg : Raw Materials, Human effort, Technology & Information are Inputs. Outputs are Goods, Services & Satisfaction.

One important mechanism which enables a System to adapt & adjust to the changing conditions of its environment & to exercise Control over its Operation is “Feedback”. This information is fedback to concerned people so that work can be assessed & corrected suitably.


iv Contingency Approach : This Approach tries to integrate the Various Schools

of Management Thought.

In this Approach, there are no Management Principles & Concepts of the Various Schools which have a General & Universal Applicability under all Conditions.


There is “No One Best Way Of Doing things Under All Conditions”.

Methods & Techniques which may have been highly effective in one situation may not work at all in another situation.

Thus, it is the Task of the Manager to try to identify, which technique will, in a particular situation best contribute to the attainment of Management Goals.


Therefore, Managers should develop a Sort Of a Situational Sensitivity & Practical Sensitivity.

Some Applications of Contingency Approach are as below :

1) Designing Organizational Structure.

2) Deciding degree of Decentralization.

3) Resolving Conflicts.

4) Managing Change.

5) Employees Development & Training Programmes.


PLANNING

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- Question Papers

PLANNING Most Basic Function of Management.

To design an Environment for effective performance of individuals working together in Groups. A Managers most essential function is to see that everyone understands the Groups purposes & objectives.

If group effort is to be effective, People must know what they are expected to accomplish which is PLANNING.


Nature of Planning :


This marks the beginning of the Process of Management.

Manager must Plan before he can possibly Organize, Staff, Direct or even Control.

This is an Intellectual Process, Think before you Act.

Important Points on Planning :


This basically deals with :

1.) What is to be done ?

2.) When it to be done ?

3.) How it is to be done ?

4.) Who is to do it ?

Decision Making is an Integral Part of Planning. This involves selecting Missions & Objectives & actions to achieve them. i.e., Choosing from among Alternative Courses of Action.


Planning strongly implies Managerial Innovation.

Here, we consciously determine Courses of action & base our decisions on Purpose, Knowledge & considered estimates.

Planning & Control are inseparable Siamese Twins of Management.


Any attempt to Control without Plans is Meaningless, since there is no way for people to tell whether they are going where they want to go (the Result of the Task of Planning).

Thus we can say that, Plans provide Standards of Control.

Here, Decision Making with take place at many points. In Fact, it is the Most Critical part of the Planning Process.


Managers must also decide which Assumptions about the future & about the environment they will use in their plans.

Planning is not a “One Time Activity”. It is a Continuous Process.

But, Plans must be Flexible. Flexible means ability to change direction to Adapt to Changing Conditions/Situations without Undue Cost.


A Plan must provide for Contingencies (In Fact, as Many Contingencies as Possible.)

There should be a Built In Flexibility in at least Five Major Areas, Technology, Market, Finance, Personnel & Organization.

Flexibility in Technology means, to Change the Product Mix according to Changing Needs of the Customer.


Flexibility in Market means, Shifting the Market itself to a New Region.

Flexibility in Finance means, to Mobilize Additional Financial Resources whenever the need arises.

Flexibility in Personnel means, ability to shift individuals from one Job to Another.

Flexibility in Organization means, Ability of Organization to Change the Organization Structure.


But, all of this is possible only within certain limits.

Planning is an All Pervasive Function. It is Important for all Levels of Management. One Major Difference concerns the Time Period Covered. Top Level Managers are generally involved in Planning Activities for a Period of Six Months to a Few Years. Middle Level, for a Week or a Month. First Line Supervisors, for may be a Day.

Top Level Management spend more time on Planning, Lower Level Management executes them.


Why does one Have to Plan ? Without Planning, the Business Organization

becomes directionless & its decisions would become Random or Adhoc Choices. Therefore, Planning becomes Key for Success of a Business Organization.

Four Vital Reasons describe the Importance of Planning as given below :


Reasons for Planning :

1) Minimizes Risk & Avoids Uncertainty.

2) Leads to Success.

3) Focuses Attention on Organization’s Goals.

4) Facilitates Control.


1.) Minimizes Risk & Avoids Uncertainty :

In today’s Business Environment, Organizations are becoming increasingly Complex to manage & Intuition alone can no longer be relied upon as a means of taking decisions. For this, Planning has a very Important & Crucial Role to Play.


By applying a More Rational, Data & Facts based procedure for making decisions, the Planning Process allows Managers & Business Organizations to Minimize the Risk & avoid uncertainty.

In a Rapidly Changing Society like ours, in which Social & Economic Conditions change frequently, Planning helps a Manager to Cope with & Prepare for Changing Environment.


Planning does not deal with the future decisions but deals with the future outcomes & consequences of the Present Decisions.

The Manager has a feeling of Well Being, he has a feeling of being in Control because he has anticipated some of the possible changes & has planned for them.


2.) Leads to Success : An Organization with proper Planning has a

Higher Degree of Success as compared to similar Organizations without Plans.

They have an Opportunity to Outperform their own Past Results.

Thus, one can say that Managerial Actions are well planned & not random arising as a mere reaction to changing environment.


Summary

• Planning leads to Success by going beyond mere Adaptation to Market Fluctuations. It Proacts. It involves an attempt to shape the environment on the belief that Business is not just a creation of Environment but its Creator as well.


3.) Focuses Attention on Organization Goals : Helps to focus on Organization Goals & Activities.

Makes it easier to Apply & Co-ordinate Resources of the Organization more efficiently.

The Whole Organization is Compelled to focus on identical Goals & Collaborate in realizing them.


It also enables a Manager to Chalk out in advance, an Orderly Sequence of Steps for Realization of Organization Goals, thus avoiding Unnecessary over lapping of Activities.


4.) Facilitates Control : Here, Manager sets the Goals & develops Plans to

Accomplish them. These Goals & Plans then become Standards or even

Reference Points against which Performance can be Measured.

The Basic Function of Control is to ensure that Activities Conform to Plans, thus we say that Plans Facilitate Control Measures as well.


Objectives : They are the Results to be achieved & are the end

points towards which all the Business Activities like Organizing, Staffing, Directing & Controlling are directed.

Only after defining these objectives, the Manager can determine the Kind Of Organization, Kind Of Personnel, & their Qualifications, the Kind Of Motivation, Supervision etc, which has to be employed to achieve the Objectives.


Characteristics of Objectives :

1) Objectives are Multiple in Number : There are at least Eight Key Areas in which Objectives of Performance & Results are to be Set. They are :

Market Standing. Innovation. Productivity. Physical & Financial Resources. Profitability. Manager Performance & Development. Worker Performance & Attitude & Public

Responsibility.


Take Example of a Cement Manufacturing & Marketing Company, it may have the following Objectives :

i.) Specified Capacity Utilization.

ii.) Specified Costs & Return on Investment.

iii.) Specified Quality of Product, say Portland 53 Grade.

iv.) Specified Marketing Services.

v.) Extension & Market Development.

vi.) Serving Remote Areas.

vii.) Maintaining Desired Network of Retail Outlets.

viii.) Extension of Warehouse Facilities.


2. Objectives are either Tangible or Intangible :

Objectives which are Quantifiable are called Tangible Objectives such as Plant Production Capacity, Marketing Target, Physical & Financial Resources, Employment Strength etc.

The Intangible Objectives are not Quantifiable such as Manager’s Performance, Worker’s Morale, Public Responsibility etc.


3. Objectives have a Priority :

At any given point in time, the achievement of one Objective is relatively more important than the other.

For eg : Goal of maintaining a Minimum Inventory Level of Raw Materials may be critically important to a firm having a difficulty in Procuring Raw Materials. So, we have to prioritize our certain Goals regardless of time. This becomes critical to the Organization. Establishment of Priorities is extremely important in that, the Resources of any Organization must be allocated by a Rational Means.


4. Objectives are generally arranged in a Hierarchy :

We have Organizational Objectives of the total enterprise at the Top, followed by Divisional or Departmental Objectives, still followed by Say, Section & may be Individual Objectives. Objectives at all levels, serve both as an End and as Means.


5. Objectives are sometimes conflicting with one another :

The Process of dividing the Organization into Depts, for Eg : Production, Marketing, Finance etc requires that the Objectives be defined for that Dept. Each Dept is given the responsibility of reaching the defined Objective.

The Process of allocating Objectives among among Various Depts creates problem of Goal conflict. For Eg : If the Objective of Finance Dept is to reduce the Interest Burden by reducing External Borrowings, the Objective of the Production Dept is to achieve the target by calling for Additional funds due to the Investment on Raw Materials & Consumables. The Resolution of the problem is a Careful Balance of the Goal for each Dept or Unit where we recognize the fact that Goal of neither Unit can be Maximized. Therefore the Management will be in a Dilemma of the relative importance of the Objectives. But, they have to strike a Balance & manage the situation.


6. Requirements of Sound Objectives :

While finalizing Objectives, there are certain requirements that the Manager should keep always keep in mind. They are :

i.) Objectives must be both clear & acceptable :

The ultimate test of Clarity is the People’s understanding of the Objectives. Crystal Clear Communication is helpful in ensuring clarity of understanding. The Objectives must also be acceptable to the People i.e ., these Goals should be Compatible with individual Goals. If activities are outside the Range of a Person, he will not pursue the Objective. For Eg : If the attainment of Production Dept is to get extra Production by two hours of extra work every day by every Worker & Foreman, it is impossible to achieve it.


ii.) Objectives must support one another :

Objectives could interfere with one another. For Eg : The Goal of the Production Dept may be at Cross Purposes with that of the Marketing Dept.

Therefore, there is a need for Balancing & Coordination of the activities of the entire Organization, otherwise, people will pursue different paths making it difficult for Manager to achieve Company’s Overall Objectives.

There should be a Close Knit Relationship between Short & Long Range Objectives. What is to be done for the First Year should provide as a Base for each Successive Year. This can be guaranteed only if Short Range Plans are part of Long Range Plans.


7. Objectives must be Precise & Measurable :

Objectives must be defined in Clear & Measurable terms. There are various reasons for the same :

i) When Goal is Precise & Measurable, it is easier to decide how to achieve it.

For Eg : Sales Target for Year 2012 – 2013 shall be at least 20% more than the present Financial Year than an Objective as “ There shall be substantial increase in Sales for Year 2012 – 2013.” That means, Quantification of Objectives are Important.


ii) Precise & Measurable Goals motivate the people more effectively than generally stated Goals.

iii) Precise & Measurable Goals make it easier for Lower Level Managers to develop their own Plans for actually achieving those Goals.

iv) Managers can assess their performance as well as their Success or Failure, if Goals are Precise & Measurable.


8. Objectives should always remain Valid :

Here Manager should be alert all the time & should Constantly Review, Reassess & adjust them according to Change in Conditions.

Contd ….


Advantages of Objectives :

Here are given the Benefits of having Objectives :

1) This Provides Basis for Planning, for evolving other types of Plans such as Policies, Budgets & Procedures.

2) They act as Motivators for Individuals & Depts of an Organization giving a Sense of Purpose.

3) Haphazard Actions are eliminated as so are the undesirable consequences associated with it.

4) This facilitates Coordinated Behavior of various groups which otherwise pulls in different directions.


5) They form a Basis for Managerial Control by serving as Standards with Reference to which Actual Performance can be measured.

6) They facilitate Better Management of the Organization by providing a Basis for Leading, Guiding, Directing & Controlling activities of people of Various Depts.

7) This lessens Misunderstanding & Conflict & Facilitate better Communication among people by Minimizing Disputes.


Types of Plans (Hierarchy of Plans) :


Plan can Encompass any course of Future Action which clearly depicts that Plans are varied.

Plans are arranged in a Hierarchy within the Organization. These are classified here as under :

1) Purposes or Missions.

2) Objectives.

3) Strategies.


Strategies in their turn are classified into 2 Major Groups of Plans as under :

1) Single Use Plans.

2) Standing Plans.

1) Single Use Plans : This is basically meant for Non Repetitive Activity to achieve a SPECIFIC task. When the End is Achieved, the Plan is dissolved.


i) The purpose of a University is to impart Quality Education & Encourage Research.

ii) The purpose of the Courts is the interpretation of Laws & resolving disputes.

2) Objectives :

They are the Ends toward which, the activity is aimed. These are the results to be achieved. They represent not only the end point of Planning but the end toward which the Organizing, Staffing, Directing & Controlling are aimed. While Organization Objectives are the Basic Plan of the firm, a Dept may also have its own Objectives. Finally, this contributes to attainment of Enterprise Objectives.


• Be Bold Stand out• Be Seen


3) Strategies :

This Word Strategy is most often to reflect Broad Areas of an Enterprise. There are 3 possible definitions of Strategy as given below :

1.) Definition 1 :

General Programme of action & deployment of resources to attain comprehensive objectives.


2) Definition 2 :

The Programme of Objectives of an Organization & their changes, resources used to attain these objectives & policies governing the acquisition, use & disposition of these resources.

3) Definition 3 :

Determination of Basic Long Term Objectives of an Enterprise & the adoption of Courses of action & allocation of Resources necessary to achieve these goals.


Thus, a Company has to decide what kind of Business, it is going to be in.

Is it an IT based Industry or Automotive Components manufacturing Industry ? Or is it, establishment of a Cast Iron Foundry. The Enterprise also has to decide on its Growth Goal & its Desired Profitability. This may also include Marketing Strategy.

It may also include Strategy for diversification


Purpose of Strategy : This is to determine & communicate thro a

System of Major Objectives & Policies, a Picture of the kind of enterprise that is envisioned. (That which, an Organization wishes it to be.)

Strategy does not wish to outline exactly how, the enterprise is to accomplish it (i.e., It does not indicate or give MICRO LEVEL Details) but gives only a GENERAL FRAMEWORK for Guiding, Thinking & Action.


Standing Plans• Policies – • General guidelines for decision making• Defines an area within which a decision will be

consistent with and contribute to the objectives• Sets a boundary for decisions including decisions that

can be made and prohibiting those that cannot.• Policy is verbal , written or implied , overall guide

setting up boundaries that supply the general limits and direction in which managerial action is to take place.


They deal with “How to Do Work”, but do not Dictate Terms to Subordinates.

This gives a GENERAL FRAMEWORK for work to take place.

Policies may exist on various “LEVELS OF ORGANIZATION”. There may be Major Company Policies through Major Dept Policies & Minor Policies applicable to small segments of the Organization.

Eg : Personnel Policy, Recruitment Policy, Marketing Policy, Pricing Policy etc.


Summary for Policies : Both, Policies & Objectives guide Thinking &

Action, but, with a Difference.

Objectives are the End Points of Planning while Policies Channelize (Guide) Decisions to these Ends.


2) Procedures :

They are Plans that establish a required method of Handling Future Activities.

These are guides to Action, rather than to thinking & these give the details of the exact manner in which certain activities must be accomplished.

These are the Chronological sequence of required actions.

Same steps are followed each time the activity is performed.


For Eg :

Take the Case of a Manufacturing Company. Procedure for Handling Orders will first involve Sales

Dept, for the Original Purchase Order from the Customer. Then, Finance Dept for Acknowledgement of Receipt of

Advance Payment & for Customer Credit Approval. Accounting Dept for recording the Financial Transaction. Production Dept for the order to produce the Ordered

Goods & finally Dispatch Dept for deciding the mode of Transport & Route.

Summary : Organizations generally lay down Procedures for all Departmental Activities for Smooth Running of the Organization.


Difference Between Policy & Procedure :

Policies are general guidelines for both Thinking & Action of people at Higher Level in Organization. But Procedure are General Guidelines only for persons at Lower Levels in Organization.

Policies help in fulfilling Objectives. Procedure shows the way to implement the Policies.

Policies are not generally based on Analysis or Study. Procedures are always established after thorough study & analysis of work.


Advantages of Procedures : This is a Standard Method of Performing a Task, thus

ensuring High Level of Performance in Organization.

This results in Work Simplification & avoidance of unnecessary steps & over lapping.

Facilitates Managerial Control over the Performance by indicating sequence & timing of each Task.

This enables employees to improve their efficiency by providing them with Knowledge about the entire range of Works.


Limitation of having Procedures :• They limit Scope of Innovation or Improvement of

Work Performance by Stipulating the Standard way of Performing the Task.

• But, this Limitation can be Overcome if Management Reviews & Appraises the Procedure periodically with an Intention to improve it.


Rules : Rules are detailed & Recorded Instructions that a

Specific Action must or must not be performed in a given situation, not allowing any discretion.

These are usually the Simplest type of Plan. Rules are different from Policies & Procedures. Rules are unlike Procedures in that these guide

action without specifying a Time Sequence.


Procedures may be looked upon as a Sequence of Rules.

Rule, may or may not be, part of a Procedure, “ Wear Helmet in this Zone” is a Rule & not a Procedure.

This Rule allows no Discretion in deviating from a stated course of Action & in no way may interferes with the rest of the Procedure for handling Orders.


Single Use Plans :

1) Programmes :

They are Precise Plans or definite Steps in Proper Sequence which needs to be taken to carry out a given Course of Action & are ordinarily supported by Budgets.

Programmes include all activities necessary for achieving a given Objective.

The Programmes may be Major or Minor.


Eg : Major Programme could mean establishing one more branch in Andhra Pradesh with an investment of Rs 100 Crore in next Two Years time.

A Major Programme may call for many supporting Programmes. Essential ingredients for each Programme are Time Phasing & Budgeting. That means, specific dates have to be laid down for completion of each successive stage of a Programme. In addition, a provision should be made in the Budget for financing the Programme.

In absence of these ingredients, it may be a Prospect or a Hope but not a Programme.

Contd ….


Programme for establishing One More Branch in Andhra Pradesh must Year Mark Funds & Specific Time Periods for :

Deciding a suitable location & Land Procurement.

Planning for Buildings & other Infrastructural Facilities.

Planning for Procurement of Plant & Machineries etc…


2) Budgets : A statement of Expected Results expressed in

Numerical Terms is called Budget.

This is defined as a “ Financial or Quantitative Statement prepared prior to a definite period of time, of the Policy to be pursued during that period, for the purpose of Obtaining a given Objective”.


BUREAUCRACY Max Weber, a German Scientist is known as Father Of Bureaucracy. He studied different...

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