MG2351/PRINCIPLES OF MANAGEMENT

DEPT: MECHYEAR: III YR/ VI SEM

BYP.RAJALAKSHMIA.P-MBA DEPT

MANAGEMENT “ Management is the process of designing and maintaining of an

environment in which individuals working together in groups, efficiently accomplish selected aims”. - KOONTZ and WEIHRICH.

“ Management is the art of getting things through and with people in formally organized groups”. – KOONTZ. 

Is management – an art or science Management is a science because it is a systematic body of knowledge

with array of principles. Management is also an art as it involves application of managerial skills to

get the desired result.

Give some features of management. The features of Management include:

Management is a continuous process Management aims to achieve the organization goals by ensuring effective use of

resources Management is multidisciplinary in nature Management functions are planning, organizing, staffing, directing and controlling.

The essential skills of a manager The essential skills of a manager are: (i) Technical skill (ii) Human skill (iii) Conceptual skill (iv) Design skill

Scientific management. Scientific Management was concerned essentially with improving the operational

efficiency at the shop floor level. Frederick Winslow Taylor, Father of scientific management, has defined as follows: “Scientific management is concerned with knowing exactly what you want men to do and then see that they do it in the best and cheapest way.”

List the principles of scientific management. The principles of Scientific Management are:

Replacing Rule of Thumb with science Harmony in group action Co-operation Maximum output Development of workers 

‘Rule of the thumb’ Prior to scientific management, skilled craftsmen who had learned their jobs in lengthy apprenticeships performed work. They made their own decisions about how their

job was to be performed. This is known as the ‘Rule of the thumb’.

Scientific management. Scientific Management was concerned essentially with improving the operational

efficiency at the shop floor level. Frederick Winslow Taylor, Father of scientific management, has defined as follows: “Scientific management is concerned with knowing exactly what you want men to do and then see that they do it in the best and cheapest way.”

List the principles of scientific management. The principles of Scientific Management are:

Replacing Rule of Thumb with science Harmony in group action Co-operation Maximum output Development of workers 

‘Rule of the thumb’ Prior to scientific management, skilled craftsmen who had learned their jobs in lengthy apprenticeships performed work. They made their own decisions about how their

job was to be performed. This is known as the ‘Rule of the thumb’.

State the contributions of Fayol towards management. Henri Fayol propounded:

Activities of an industrial undertaking are divided into six groups – technical, commercial, financial, security, accounting and managerial;

14 principles of management that are flexible, not absolute, and must be usable regardless of changing and special conditions.

‘Scalar chain’ Scalar Chain is the number of different levels of authority through which decisions are passed in the organization. The scalar chain of command of reporting relationships from top executive to the ordinary shop operative or driver needs to be sensible, clear and understood.  ‘Esprit de corps’ Henri Fayol emphasised the need for building and maintaining of harmony among the work force, team work and sound interpersonal relationships which is ‘Esprit de corps’.

Roles played by a manager The roles played by a manager are: * Interpersonal roles - Figurehead role - Leader - Liaison * Informational roles - Monitor - Disseminator - Spokesperson * Decisional roles - Entrepreneur - Disturbance handler - Resource allocator - Negotiator

Functions of management

Functions of management The functions of Management are: * Planning * Organising * Staffing * Directing * Controlling

Across World Quality International

classifications of business organization

classifications of business organization The classification of Business Organization is: * Sole proprietorship concern * Partnership concern * Joint Stock Companies - Private Limited Company - Public Limited Company * Co-operative societies

FACTORS AFFCETING GLOBAL SCENARIO

Biological factors Social factors Economic factors Environmental factors Cultural factors Technological factors

2.PLANNING Planning’. Planning as a process involves the determination of future course of action, i.e., why an action, what action, how to take action, and when to take action. “Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result”.   Types of planning Planning is an activity. The different types of planning are: * Corporate and Functional planning * Strategic and Tactical/Operational planning * Long-term and Short-term planning * Proactive and Reactive planning * Formal and Informal planning.

Define the ‘mission’ and ‘vision’ of an organization Mission: A Mission statement helps the organization to link its activities to the needs of the society and legitimize its existence. It indicates exactly what activities the organization intends to engage in now and in future. Mission sets forth principles and conceptual foundation upon which the organization reacts and the nature of the business in which it plans to operate.

Vision: Vision, in a common man’s language, is a mental picture or contemplative imagination. However, for a management professional, it is the strategic intent, which stands for the future state of an organisation.

MBO MBO (Management By Objectives) is a comprehensive managerial system that integrates many key management activites in a systematic manner, consciously directed towards the effective and efficient achievement of organizational objectives. MBO is an approach and philosophy to management and not merely a technique.  Policies “Policies are general statements or understandings which guide or channel thinking in decision-making”. Policies define how the company will deal with stakeholders, employees, customers, suppliers, distributors, and other important groups. Policies narrow the range of individual discretion so that employees act consistently on importan issues.

Tpes of plans Plans may be classified in two ways: (i) Standing and single-use plans: Standing plans provide guidelines for further course of action and are used over a period of time. Ex: Policies, strategies. Single-use plans are relevant for a specified time and after the lapse of that time, these plans are again formulated again for the next period. Ex: Projects, Budgets. (ii) Strategic and Operational plans: Strategic plans define the long- term course of action for an organization in the light of its environment. These plans are implemented through various operational plans. Ex: Strategies are implemented through projects, budgets, etc.  

‘Strategy’. Strategy is the determination of the basic long-term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary for carrying out these goals. A strategy is a course of action through which an organization relates itself with environment as a as to achieve its objectives

Different types of policies The different types of policies are: * Formulated policy * Implied policy * Imposed policy * Appealed policy

SWOT analysis A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organization or individual.

State the levels of strategy. The levels of strategy are: * Corporate-level strategy – occupies the highest level of decision- making which tends to be value-oriented and conceptual. * Business-level strategy – identifies the discrete independent product / market segments served by an organization. * Functional-level strategy – relates to a single functional operation and the activities involved therein. Decision making: IT is the process of estimating the relevant events of future, based on the analysis of their past and present behavior. Business forecasting refers to the statistical analysis of the past and current movement in the given time series so as to obtain clues about the future pattern of those movements.

Rules Rules are prescribed guides for conduct or action. They are plans as they are a course of action which is chosen among alternatives. A rule is a specific guide for action, established authoritatively, and utilized in order to inform employees of conditions under which designated activities are to be performed.   Project A project is a complex of policies, procedures, rules, etc., to carry a given course of action. A project is prepared in context of the objectives incorporating policies, procedures, rules, and other elements which are necessary for project formulation.

objectives of a project The main objectives of a Project are: * Project activity is definable in terms of specific objectives. * Project activity is unique and infrequent to the organization. * Project activity is complex in respect to independence of various task accomplishments. * Project activity is critical to the organization in terms of realization of its objectives.

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3. organising Organization. ORGANISATION may be defined as the process of i) Identifying and grouping the work to be performed ii) Defining and delegating responsibility and authority iii) Establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives. Purpose of organization The purposes of organization are given below: i) Creates organization structure ii) Assigning duties iii) Grouping tasks iv) Formal reporting relationships v) Ensures effective coordination within the organization.  

organizing Organizing is defined as the management function of assigning duties, grouping tasks, formal reporting relationships and ensuring effective

coordination within the organization.   specialization Specialization means the process of dividing the work. Specialization permits individuals to develop expertise in their assigned tasks and their own and groups effectiveness. Specialization refers to the degree to which the overall organizations activity is broken down into smaller components. job design Job Design is the determination of a particular individuals work related responsibilities. Job Design involves in determining the level of specialization to be incorporated in the work process.  

Recruitment and Selection Recruitment: Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Selection: Selection is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job.

on-the-job training On-the-job describes training that is given in a normal working situation, using the actual tools, equipment, documents or materials that they will use when fully trained. On-the-job training (OJT) is one of the best training methods because it is planned, organized, and conducted at the employee's worksite. OJT will generally be the primary method used for broadening employee skills and increasing productivity. It is particularly appropriate for developing proficiency skills unique to an employee's job - especially jobs that are relatively easy to learn and require locally-owned equipment and facilities. Ex: Coaching.   off-the job training Off-the-job training takes place away from normal work situation which means that the employee is not regarded as productive worker when training is taking place. An advantage of off-the-job training is that it allows people to get away from work and totally concentrate on the training being given. This is most effective for training concepts and ideas. Ex: Seminars and lectures.

Matrix organization Matrix structure is a hybrid organizational form, containing characteristics of both project and functional structures. It is two dimensional pattern developed to meet the problems of growing size and complexity of undertakings. Matrix organization is any organization that employs multiple command structure but also related support mechanism and an associated organizational culture and behavioral pattern. 

organizational chart An Organizational chart is a diagrammatical form which shows the important aspects of an organization including the major functions and their respective relationships, the channels of supervision and the relative authority of each employee who is incharge of each respective function. Span of Control Span of Control or Span of Management means the number of people effectively managed by a single superior in an organization. It is also known as ‘Span of Supervision’, ‘Span of Authority’ and ‘Span of Responsibility’. It is very difficult to decide the appropriate span of control. It is related to the degree of responsibility exercised by the group members.

line and staff organization Line and staff organization refer to a

pattern in which staff specialist advice managers to perform their duties. When the work of an executive increases, its performance requires that services of specialist which he himself cannot provide because of his limited capabilities on various issues, in actual practice, how ever. it is difficult to determining which department are line and staff.

Functional organization structureFunctional organization structure perhaps, the

most widely used one in medium and large organizations. this is traditional concept of originating for creating functional organization, the basis of department is the various function to be performed by the organization.

Divisional organization structure Divisional structure, also called profit decentralization by Newman and

others, is built around business units. in this form, the organization divided into several fairly autonomous units. Each unit relatively self-contained in that it has the resources to operate independently of other divisions.

  Project organization structure Project organization appear like a divisional structure, except that in the

latter, various division are created permanent basis while into he former they created only for the life time of a project. Where the particular project is completed. The concerned division may disappear.

 Matrix organization structure Matrix organization structure are essentially a violation of unity

command and therefore. Whole classical concepts related top the principle of unity command are violated. Matrix organization structure is the relation of two-dimensional structure while emanates directly from two dimension of authority.

Brainstorming Brainstorming is a technique stimulates

idea generation for decision-making. Originally applied by OSBORN in 1938 in an American company' using the brain to storm the problem' " a conference technique by which group attempts to find solution for a specific problem by amassing all the ideas spontaneously contributed to the members.

CAREER MANAGEMENT

INTRODUCTION Organizations now focus on

matching the career needs of employees with the requirements of the organization.

While many organizations still invest in their employees, they don’t offer career security and they can’t meet the needs of everyone in a diverse workforce.

WHAT IS A CAREER?

Definition Pattern of work-related experiences

that span the course of a person’s life. Reflects any work, paid or unpaid. Broad definition helpful in today’s

work environment where employees and organizations have diverse needs.

DEFINITION

“ A Career is a sequence of separate but related work activities that provides continuity, order and meaning in a person’s life”. - Edwin.B.Flippo

“A Career is an individually perceived sequence of attitudes and behaviours associated with work related experiences and activities over the span of the person’s life”. - Douglas.T.Hall

TERMS IN CAREER PLANNING

Career Path - A planned progression of jobs within an organization or in a professional field leading to the realization of career goals.

Career Goals - Career goals are those dreams turned into reality by the one who strives for it.

Career planning - Career planning applies the concepts of strategic planning and marketing to taking charge of one's professional future.

CONTD..Career Development - In Organizational development, the

study of career development looks at: how individuals manage their careers within and between

organizations and how organizations structure the career progress of their

members Career Management - Career Management is a strategic

service that assists in creating a future for the organization and its employees.   This program focuses on developing, and growing employees for long-term advancement while supporting organizational strategic goals.

CONTD..Individual versus Organizational

Perspective Organizational career

planning – Developing career ladders, tracking careers, providing opportunities for development.

Individual career development – Helping employees identify their goals and steps to achieve them.

CONTD.. Career Development versus

Employee Development Career development looks at

the long-term career effectiveness and success of organizational personnel.

Employee training and development focuses on performance in the immediate or intermediate time frames.

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WHAT IS A CAREER?Value for the Organization:

A long term career focus should increase the organization’s effectiveness in managing it’s human resources

1. Ensures needed talent will be available. 2. Improves the organization's ability to attract and

retain talented employees. 3. Ensures that minorities and women get opportunities

for growth and development. 4. Reduces employee frustration. 5. Enhances cultural diversity. 6. Promotes organizational goodwill.

CONTD..

Value for the Individual Individuals’ external career success is

measured by criteria such as: progression up the hierarchy, type of

occupation, long-term commitment, and income.

Internal career success is measured by the meaningfulness of one’s work and achievement of personal life goals.

TRADITIONAL CAREER STAGES

CONTD..Exploration (birth to 14 years) Includes school and early work

experiences, such as internships. Involves:

trying out different fields discovering likes and dislikes forming attitudes toward work

and social relationship patterns

CONTD..Establishment (14 yrs – 24yrs) Includes:

search for work getting first job getting evidence of “success” or “failure”

Takes time and energy to find a “niche” and to “make your mark”.

CONTD..Mid-Career ( 24yrs – 45yrs) Challenged to remain productive

at work. Employee may:

continue to grow plateau (stay competent but not

ambitious) deteriorate

CONTD..Late career (45 yrs – 65 yrs)

Successful “elder states persons” can enjoy being respected for their judgment. Good resource for teaching others.

Those who have declined may experience job insecurity.

Plateauing is expected; life off the job increases in importance.

CONTD..Decline (Late Stage) (65+ yrs) May be most difficult for those

who were most successful at earlier stages.

Today’s longer life spans and legal protections for older workers open the possibility for continued work contributions, either paid or volunteer.

CAREER CHOICES AND PREFERENCES

Holland Vocational Preferences

Model identifies six vocational themes Realistic Investigative Artistic Social Enterprising Conventional

CONTD..A Career anchor functions in your work life as a way

of organizing experience, it involves identifying your area of contribution in the long run and generating criteria for the kinds of work settings in which you want to function.

The Edgar Schein Anchors Personal value clusters determine what is important

to individuals. Technical-functional competence Managerial competence Security-stability

CONTD..

Entrepreneurial creativity Autonomy-independence Service or Dedication to a cause Pure Challenge Lifestyle

Success of person-job match determines individual’s fit with the job.

CONTD..

Jung and the Myers-Briggs Typologies Four personality dimensions:

Extraversion-Introversion Sensing-Intuitive Thinking-Feeling Judging-Perceiving

CAREER DEVELOPMENT

There are four steps involved in a career development programme. They are:-

Needs – defining the present system Vision – determining new directions and

possibilities Action plan – formulation of a strategy Results – Maintaining the change

CAREER DEVELOPMENT ACTIONS

Job Performance Exposure Resignations Change the job Career guidance

ENHANCING YOUR CAREER

The individual holds primary responsibility for his/her career. Suggestions on how to do that are:

MENTOR-PROTÉGÉ RELATIONSHIP

Mentoring is the process of using specially selected and trained individuals to provide guidance and advice which will help to develop the careers of the 'protégés' allocated to them.

Mentoring is aimed at complementing learning on the job, which must always be the best way of acquiring the particular skills and knowledge the job holder needs.

The senior employee is the Mentor and the junior employee is the Protégé.

CONTD..Establishing some basic roles and responsibilities can

ensure a successful mentor-protégé relationship. - Identify roles the mentor can play to help the protégé

achieve goals. - Develop an action plan to achieve agreed upon goals. - Determine level of structure in the relationship.- Communicate on a regular basis.- Set milestones to monitor success of reaching goals. - Set the agenda for each meeting. - Schedule formal meetings and cancel only when absolutely necessary. - Establish guidelines for telephone calls; i.e., calls at home are or are not acceptable.

REQUISITES FOR MENTOR-PROTÉGÉ

RELATIONSHIP Collaborative - working on a shared agenda Expectant of growth and learning from each other Mutually supportive and caring, reciprocal in

acceptance Based on a belief that it is worth making time to

cultivate and maintain the relationship Positive, openness to learning, each respecting the

dignity of the other Goal oriented and problem solving focused,

checking assumptions

CONTD.. Confidential, promoting a low-risk climate for

trying new ideas and risking mistakes for the sake of learning

Developmental, evolving and changing over time as the protégé grows professionally

Open to assistance from other colleagues outside of the mentor-protégé pair

Professional, oriented to continually improving the practice of teaching and the learning of students

Reflective, self-assessing, analyzing & evaluating.

CONTD..

The sound mentor-protégé relationships help the protégés to develop at a faster rate in a right direction. They minimize the management’s responsibility in HR development.

BUSINESS COMMUNICATION

COMMUNICATION IN BUSINESS

Communication is the ability of mankind to interact across barriers and beyond boundaries that has ushered the progress of mankind. It brings out many images in one’s mind. It could be a process, a concept, a network, a technique, or a form of entertainment.

Communication is the process that links discontinuous parts of the living world. It is the human interchange of facts and opinions.

CONTD.. Business communication is defined as the process

of transmission of information within the business environment. Communication must be simple, clear and meaningful. These qualities of communication directly influences the success of business.

For people at all organisational levels, all functional areas, for all workers, good communicative power is a must. Communication in business includes all contacts made both inside and outside the organisation.

DEFINITION OF COMMUNICATION

“Communication is the process by which information is transmitted between individuals and / or organisations so that an understanding response results”.

- Peter Little “Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons”.

- W.H.Newman & C.F.Summer

BUSINESS COMMUNICATION

THE MEDIUM

VALUE

BARRIERSTO WHOM

ROLE OF ICT

THE MESSAGE

BUSINESS COMMUNICATION AS A SYSTEM

A system is a set of interacting, interrelated, or interdependent elements forming a complex whole. For ex: The human body is regarded as a functional physiological unit.

A business communication system consists of the various business activities like production, sales, marketing, etc., which form the business organisation as a whole. With the advent of technology today, these business activities need to be faster and quicker to generate more business through proper communication.

OBJECTIVES OF COMMUNICATION

The objectives and functions of communication are interrelated. Communication is largely goal oriented. The activities of any organisation require both people within and people outside to act, interact, exchange and get across to each other so that the objectives are accomplished in an effective manner. Any organisation would ensure that its objectives are achieved with the optimum utilisation of resources like time, money and effort.

CONTD.. The objectives of business communication includes : - to inform - to educate - to motivate - to integrate - to relate - to promote - to entertain - to suggest - to facilitate decision-making The objectives of communication would cover various

functions -planning, staffing, coordinating, directing and controlling of the organisation.

CLASSIFYING BUSINESS COMMUNICATION

Business communication is classified into two broad areas, namely:

Internal communication is communication within organisation. Effective internal communication is seen while,

- communicating with superiors, - communicating with subordinates, - communicating between departments and - communicating with colleagues.

CONTD..

External communication is communication with external agencies, both government and private. Effective external communication is seen while,

- dealing with government agencies and departments,

- interacting with customers, - dealing with the public, - communicating with the press and - handling suppliers.

BARRIERS TO COMMUNICATION

Business communication is especially more prone to misunderstandings, because the message is complex, conditions are difficult and psychological and social differences often separate the sender and the receiver. The more complex the situation the more are the barriers. Problems of communication directly retard the success of managers in the performance of their functions. If the massages are poorly transmitted management cannot plan or control activities properly.

CONTD..

Communication Barriers are classified into 4 types:

(i) Physical barriers (ii) Semantic barriers (iii) Psychological and Physiological

barriers and (iv) Other barriers.

BARRIERS TO COMMUNICATION

TYPES OF BARRIERS TO COMMUNICATION

PHYSICALBARRIERS

SEMANTICBARRIERS

PSYCHOLOGICAL &PHYSIOLOGICALBARRIERS

OTHER BARRIERS

PHYSICAL BARRIERS

These relate to defects in the system. These are easily removed by minimum effort. They may be

- Source - Distance - Time - Physical noise - Source of the communication - Defects in the medium.

SEMANTIC BARRIERS

These relate to the language usage. It is not very easy to do away with these barriers. They may be

- Bad expressions - Inaccurate translations - Semantics - Words having different connotations.

PSYCHOLOGICAL AND PHYSIOLOGICAL BARRIERS

These barriers relate to the mind and to the body. They may be

- Inattention - Unclarified and vague assumptions - Distrust - Sloppiness - Premature evaluation - Fear

CONTD..

- Emotions - Closed mind - Status consciousness - Poor retention - Poor communication skills - State of health - Defensiveness - Self-centered attitudes.

OTHER BARRIERS

The other barriers may include, - Lack of common knowledge - Unsolicited communication - Over communication - Politics - Technical jargon.

GENERAL BARRIERS OF COMMUNICATION

Language Technical content Not recognising the receiver’s need Inadequate feedback Emotional interference (anger, frustration, etc.,) Degree of knowledge and expertise of both sender &

receiver Quantity of information Inappropriate medium Lack of trust/honesty Cultural differences Poor listening skills Hierarchy

COMMUNICATION PROCESS IN BUSINESS

SENDER CHANNEL MESSAGE RECEVIER

FEED BACK

CHANGES IN PAYMENT SYSTEMS

FINANCE DEPT E-MAIL

CONTD.. Communication is a five-step process. The sender

has an idea, the idea becomes a message, the message is transmitted, the receiver gets the message, the receiver reacts and sends feedback.. There are certain elements in the process which include :

(i) SOURCE OR SENDER : initiates the process of communication. He is the person desirous of passing on some information.

(ii) ENCODE : The message, which is sent needs to be encoded.

CONTD.. (iii) MEDIUM : The medium which is used to

transmit the message. (iv) DECODE : The encoded message has to be

decoded by the receiver. (v) RECEIVER : The receiver attends to the

message and decodes the symbols into understandable information.

(vi) FEEDBACK : The feedback is the response of the receiver.

Communication is complete and effective only when the receiver correctly comprehends the purpose of the message and uses it or acts upon it as envisaged by the sender.

METHODS/CHANNELS OF COMMUNICATION

METHODS OF COMMUNICATION

ORAL NON- VERBAL VISUAL AUDIOVISUAL

SILENCE WRITTEN

TALKS,SPEECHES,DISCUSSIONS,MEETINGS,SEMINARS,COUNSELLING,INTERFACE,TELEPHONE,MICROPHONE,LOUDSPEAKER,AMPLIFIER,RADIO,TAPERECORDER.

LETTERS,MEMOS, NOTES,CIRCULARS,REPRESENTATIONS,REPORTS,BROCHURES,BOOKS,TELEX,FAX, MAIL,COURIER, E-MAIL,TELEGRAM,PHOTOCOPIER.

FACIAL EXPRESSIONS,EYE CONTACT,VOCAL CHARACTERISTICS,GESTURES & POSTURES,PERSONAL APPEARANCE,USE OF TIME,USE OF SPACE,TOUCH, SILENCE.ATTIRE, SMILEBEHAVIOUR

CONTD.. The methods or the channels of communication

appropriately chosen in the communication process adds to the efficiency and reliability of the message. The choice of the channel would be influenced by factors like availability, cost, urgency and reliability. The various methods or the channels of communication are:

(i) ORAL COMMUNICATION : It takes the form of sound and words. Direct person-to-person communication plays a very useful role in any organisation. It works well in small groups.

CONTD..

(ii) WRITTEN COMMUNICATION : It reaches across vast geographic areas and target audience , distributed around the world. It can be recorded and preserved for constant and future use. It is less interactive compared to oral communication.

(iii) NON-VERBAL COMMUNICATION : It is neither oral or written. It thrives on observation. It is used to regulate the flow of conversation in the meeting.

CONTD..

(iv) VISUAL COMMUNICATION : It is effected through pictures, graphs and charts, as well as through symbols and signs. In business communication, these are used to illustrate, highlight and focus attention.

(v) AUDIO-VISUAL COMMUNICATION : It involves demonstration and presentations through audio-visual aids like multimedia. It is useful in fostering learning.

CONTD..

(vi) SILENCE : It may convey a form of punishment. It may express anger or atonement. It can be deliberate or unintentional.

Each of these methods of communication has its own distinguishing features in terms of speed, reliability, cost, reach, merits and demerits. It is necessary to clearly appreciate these methods in dealing with people and situations in any organisation.

TYPES OF COMMUNICATION

Communication can be categorised into different types depending upon the level at which it takes place, the direction it takes, or by its very nature. Some of the common types of communication are :

- Personal Communication - Business Communication - Internal Communication - External Communication

CONTD.. - Upward Communication - Downward Communication - Formal Communication - Informal Communication - Mass Communication - Global Communication - Lateral Communication - Interactive Communication - Social Communication - Grapevine

PERSONAL COMMUNICATION

Personal Communication concerns communication that takes place between any two individuals, be it in a family, group, community or even an organisation. It is private in nature and there is nothing official about it.

It can take the form of personal letters, personal telephone calls, conversations, one-to-one meetings or e-mail messages.

BUSINESS COMMUNICATION

Business Communication takes place among business entities, in markets and market places, within organisations and between various groups of employees, owners and employees, buyers and sellers, service providers and customers, sales persons and prospects and also between people within the organisation and press persons.

Done with care, such communication can promote business interests. Verbal, Non-verbal and Written communication is a prerequisite for organisational and business related success.

INTERNAL COMMUNICATION

Internal communication takes place within the organisation or group- among different groups of employees and between employers and employees. It could be oral or written, visual or audio-visual, formal or informal, and upward or downward.

The issues that internal communication addresses are knowledge, skills, goal orientation, sharing of corporate concerns, review and monitoring, performance appraisal, counseling and training.

EXTERNAL COMMUNICATION

External communication addresses people outside the organisation, like the prospective customers, competitors, public, press, media and the Government.

It may be letters, notices, brochures, business meetings, demonstrations, telephone calls, press releases, press conferences, audio-visual presentations, publicity films, product launch events and advertisements.

UPWARDCOMMUNICATION

Upward communication is one which moves upward, i.e., from bottom to top levels in the hierarchy. Large organisations have different hierarchical levels or tiers. The process of communication to be complete and effective, should encompass all these levels and tiers.

It may be employee suggestions, market reports, performance reports, feedback on new products and requests for facilities or instructions.

DOWNWARD COMMUNICATION

Downward communication moves from top to bottom levels in the hierarchy, i.e., from the CEO downwards.

It may include corporate goals, business priorities, motivational letters, work related instructions, newsletters, letters from the CEO/GM’s desk.

FORMAL COMMUNICATION

Formal communication generally follows a well-defined hierarchical pattern and periodicity. Memos, circulars, instructions, guidelines, clarifications, agreements and reports are some of the channels that facilitate formal communication.

It may be staff meetings, union-management meetings, branch managers’ conferences, periodical sales review meetings and customer meets.

INFORMAL COMMUNICATION

Informal communication takes place in an unstructured manner and outside the formal forums. It works well in smaller, loosely knit organisations. It is used more often in situations where there are no rigid hierarchical tiers.

Informal communication takes place through chats, conversations and informal talks.

MASS COMMUNICATION

Mass communication addresses a vast, well spread out heterogeneous group of people. Special efforts will have to be made to sustain their interest and achieve the desired response. Its other branches are public relations, advertising and publicity, journalism and digital media.

Public speaking, newspapers, magazines and journals, radio, television, dotcoms, etc., are channels of mass communication.

GLOBAL COMMUNICATION

Global communication is the process of transmitting and receiving information on a world-wide scale. It gives us an eyewitness view of events in most remotest locations. It is a global process in which knowledge, values and ethics, aesthetics and lifestyles are exchanged. The evolution of global communication can be linked closely to the evolution of technology.

Mobile phones, internet and communications satellite are the channels of global communication.

LATERAL COMMUNICATION

Lateral communication is neither upward nor downward. It proceeds in an horizontal manner and takes place among equals and at peer level. There is no hierarchical level difference in this communication.

Any communication that takes place, orally or in writing, from one branch head to the other, from one group head to the other may be described as lateral communication.

INTERACTIVE COMMUNICATION

Interactive communication is essentially a two-way process. It is most appropriate when the message or subject is to be presented at length, e.g., in practical sessions, case study discussions and strategy formulation.

It takes place through meetings, conferences, teleconferencing, multimedia presentations, group discussions and other active two-way exchanges.

SOCIAL COMMUNICATION Social communication is a type of communication

that explores the ways information can be perceived, transmitted and understood, and the impact those ways will have on a society. It brings about social change by an innovative and effective participatory communication strategy. It envisages increasingly horizontal communication allowing people to communicate with each other easily and inexpensively.

Through channels such as community radio, video collectives, popular theatre, and ICTs, social change gains strength.

GRAPEVINE

Grapevine is a kind of informal communication that prevails in organizations and businesses. The ‘Grapevine’ is so-called , as, it follows no set lines and no set direction. It spreads by way of gossip and rumours. It travels through informal networks and quite often travels faster than the formal messages.

It may not always be possible to control the grapevine, but, nevertheless, an able communicator knows how to influence it.

PATTERNS OF GRAPEVINE

Prof. Keith Davis has identified four patterns of grapevine :

(i) single strand : This involves the passing of information through a long line of persons right till the ultimate recipient.

(ii) Gossip : This pattern is like a wheel where ‘A’ is at the centre and passes information to others along the spokes.

CONTD..

(iii) Probability : An individual transmits message to others in a random manner.

(iv) Cluster : An individual telling the message to clusters of people. They, in turn, transmit information to other individuals or clusters.

FACTORS FACILITATING COMMUNICATION

The factors that facilitate communication are :

- The message to be conveyed should be a new one ;

- It should be interesting to read ; - It should be relevant ; - It should be understandable ; and - It should be concise and memorable.

IMPORTANCE OF BUSINESS COMMUNICATION

Managing complexity all around Managing a big organisation Better understanding and cooperation can take place Profitability increases No more cohesion in the organisation Image of the company improves Opportunities available in the market can be known easily Employee turnover is less Dissemination and collection of information is easier Customer interaction is better

ATTRIBUTES OF COMMUNICATION

Communication is a two-way process Communication is a dynamic process Communication is both an interaction and

transaction Communication can be intentional or

unintentional Communication is systematic and

continuous.

ESSENTIALS FOR EFFECTIVE COMMUNICATION

Effective communication calls for coordinated efforts. It is necessary to understand the essentials of good communication and work towards achieving them. They are :

Be clear about the purpose Understand the process of communication Be clear about the target audience Develop good communication skills Be well informed

CONTD.. Plan your communication Be positive in approach Be sincere, don’t manipulate Be consistent Appreciate the time factor Use proper modes and channels Be cost conscious Obtain feedback

MANAGEMENT AND COMMUNICATION

Communication is not and end in itself. It is a means - and a very effective means - for the solution of managerial problems for the attainment of managerial objectives. The various uses of communication by management are :

Use of communication in employee participation – Getting the attention, interest and involvement of the employees.

Use of communication in administering change – The necessity for change in a business enterprise and the employees’ resistance to change.

CONTD.. Use of communication in crises – To some typical

crises that afflict business enterprises communication can be applied to remove misunderstanding or correct misinterpretation.

Use of communication in strikes – By careful and continuous communication, strikes can be avoided. A strike is an economic warfare and it requires courageous leadership, projected overtly through sincere and forthright leadership.

CONTD.. Management philosophy and practice in the area

of Risk-taking communication – ‘Where there is no risk, there is no progress’ for any business concern. Businessmen must accept the risk in risk-taking communication and have a free discussion with the employees.

Long-term communication planning – Thinking ahead in the communication field is increasing importance of planning in business enterprises. The employee-employer communication should be healthy.

CONTD..

A mature manager should get his communication on target, by using the most appropriate method of communication. He should harness his communication to move forward the short and long-term objectives of the business to enhance the welfare of the employees – management by communication.

MOTIVATION Motivation is to inspire people to work, individually or in groups in the

ways such as to produce best results. It is the will to act. It is the willingness to exert high levels of effort towards organizational goals, conditioned by the efforts and ability to satisfy some individual need.

Motivation is getting somebody to do something because they want to do it. It was once assumed that motivation had to be injected from outside, but it is now understood that everyone is motivated by several differing forces.

Theories of Motivation

1) Contribution of Robert Owen : 2) Jeremy Bentham’s “The Carrot and the Stick Approach” : 3) Abraham Maslow’s “Need Hierarchy Theory” : 4) “Theory X and Theory Y” of Douglas McGregor 5) Contribution of Rensis Likert :

leader Leader is one who makes his subordinates to do willingly what he wants. The efforts of subordinates are to be channelised in the right direction by him.   Leadership Leadership is the process of influencing the behaviour of others towards the accomplishment of goals in a givens situations. Leadership is the art of process of influencing people so that they will strive willingly towards the achievement of group goals.   List the few leadership theories Few leadership theories include: The Michigan studies The Ohio state university studies and The Managerial grid.

Qualities of Good leader They identify themselves as change agents. They are courageous. They believe in people. They are value driven. They are life long learners. They have the ability to deal with complexity,

ambiguity and uncertainty. They are visionaries.

The theories of leadership Trait theories of leadership-behavioral theories of leadership-group & exchange

theories-contingency theory-path goal theory of leadership-social learning approach The dimensions of political behavior Scape- goating others-sabotage-manipulation- of information-build bad image on

others Path-goal leadership theory Directive leadership-supportive leadership-achievement oriented leadership.  State house path goal approach Leaders are effective because of the influence on followers motivation ability to perform and their satisfaction. This path goal is employed because the leader setup clear guidance through which the subordinates can achieve goals.

leadership styles:The various leadership styles include: Autocratic leadership Democratic leadership and Laissez-faire leadership.

5.CONTROLLING Control Control is a process that guides activity towards some predetermined goals.   Define control. According to Koontz, “Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished”.

The characteristics of control The characteristics of Control is: Universal Continuous process Action-based and Looking Back.   Need of control in the organization Need for control include: Control can minimize the mistakes It discovers the deviation in the management and It minimizes dishonest behaviour of employees

Give some critical point standards of control Cost Standards Revenue standards Goal standards Program standards   Types of control Feedback control Concurrent control Feed forward control

Traditional techniques of control The traditional techniques of control are: Personal observation Break Even Analysis Statistical Report and Budgetary control.   Modern techniques of control The modern techniques of control: Management Audit Return on Investment PERT & CPM and MIS.

CULTURE The types of culture Quinn and McGrath classified organization culture into four basic

purposes. Depending on the nature of transaction that take place between individuals or groups of individuals in organizations.

Market culture Adhocracy Clan culture Hierarchal culture

ORGANISATIONAL CHANGE Organizational change is a complex process, which involves various

stages. These stages must follow a certain sequence. The sequences of stages in which the charge process must take place are listed below.

Problem recognition, identifying the causes, implementing the change, Generating motivation for change, managing the transition state,supporting the change, evaluating the change .

PRODUCTIVITY PRODUCTIVITY IS THE PROCESS OF

OUTPUT WITH THE INPUT

PRO: OUTPUT/INPUT

Budget. According to Jfred Meston “A budget is the expression of a firm’s plan in financial form for a period of time in to the future”.  Budgetary Control. According to J.Batty “A system which uses budgets as a means of planning and controlling all aspects of producing and selling commodities and services".   Classifications of budget Functional classification Time classification Activity level.

MIS A system of obtaining, abstracting, storing and

analyzing the data to produce information and to use in planning, controlling nd decision-making by managers at the time they can most

effectively use it.

THE END