E-LESSON-3, 4

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

M.B.A 2 All right are reserved with CU-IDOL MANAGEMENT PRACTICES AND ORGANISATIONAL BEHAVIOUR Course Code: MBA603 Semester: First SLM Units: 3&4 E-lesson : 3 www.cuidol.in Unit-3 (MBA603)

MANAGEMENT AND ITS FUNCTIONS-II 33 OBJECTIVES INTRODUCTION Student will be able to :  In this unit we are going to learn about the  Understand the concept of Formal vs. Informal Process of Staffing. Organisation.  Apply the Process of Staffing to recruit right  Under this unit you will also understand the Importance and types of Controlling. person according to the specific job.  This Unit will also make us to understand the  Analyze the Process of controlling to supervise the Process of Decision making process. work done in organisation.  Evaluate the various Decision Making Process.. www.cuidol.in Unit-3 (MBA603) INASlTl ITriUgThEt aOrFeDreISsTeArNveCdE AwNitDh OCNUL-IIDNOE LLEARNING

TOPICS TO BE COVERED 4 > Introduction of Organising > Formal vs. Informal Organizations > Staffing process > Delegation ,Authority & responsibility > Meaning and importance of Controlling > Types of controlling > Meaning of Decision making. > Process of Decision making www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

ORGANISING  According to Louis Allen, \"Organising is the process of identifying and grouping the work to be performed, 5 defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives \"for co-ordination within the enterprise-as an in-built tool for obtaining harmonious corporations motion.  Classification of Organisation : www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

FORMAL ORGANISATION 6  A proper business enterprise is an enterprise with a hard and fast set of policies of intra- business enterprise tactics and structures. As such, it is usually set out in writing, with a language of policies that apparently go away little discretion for interpretation.  CHARACTERSTIC OF FORMAL ORGANISATION :  It is based on delegated authority  It is deliberately impersonal.  The responsibility and accountability at all levels of organisation should be clearly defined.  Unity of command is normally maintained.  It provide for the division of labour ADVANTAGES OF FORMAL ORGANISATION : DISADVANTAGES OF FORMAL 1. Delay in Action ORGANISATION : 2. Ignores Social Needs of 3. Emphasis on Work Only 1. Systematic Working 4. Spread Rumours among the 2. Achievement of Organisational Objectives All right are reserved with CU-IDOL Employees 3. No Overlapping of Work 4. Co-ordination workers 5. Creation of Chain of Command 6. More Emphasis on Work www.cuidol.in Unit-3 (MBA603)

INFORMAL ORGANISATION 7 The idea of informal organization draws attention to the styles of interest and interpersonal relationships that increase inside an business. Business enterprise and aren't pondered in an organizational chart or personnel manual. It sheds slight on what really takes region whilst an company’s contributors perform (or do now not carry out) their jobs. The informal enterprise business enterprise can work alongside side, parallel to, or against the formal employer. CHARACTERSTIC OF INFORMAL ORGANISATION :  It Has No Written Rules and Procedures  Independent Channels of Communication  It is not deliberately created  It has no place on organisation chart  It is personal  It lacks stability ADVANTAGES OF FORMAL ORGANISATION : DISADVANTAGES OF FORMAL ORGANISATION : 1. Fast Communication 1. Spread Rumours 2. Fulfills Social Needs 2. No Systematic Working 3. Correct Feedback 3. May Bring Negative Results 4. More Emphasis to Individual Interest www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

FORMAL VS INFORMAL ORGANISATION BASIS FOR 8 COMPARISON FORMAL ORGANIZATION INFORMAL ORGANIZATION Meaning An organization type in which the job of An organization formed within the each member is clearly defined, whose formal organization as a network authority, responsibility and of interpersonal relationship, accountability are fixed is formal when people interact with each organization. other, is known as informal communication. Creation Deliberately by top management. Spontaneously by members. Purpose To fulfil, the ultimate objective of the To satisfy their social and www.cuidol.in organization. psychological needs. Unit-3 (MBA603) All right are reserved with CU-IDOL

FORMAL VS INFORMAL ORGANISATION 9 Nature Stable, it continues for a long time. Not stable Communication Official communication Grapevine Norms, values and beliefs Control mechanism Rules and Regulations Interpersonal relationship All members are equal. Focus on Work performance Small Authority Members are bound by hierarchical structure. All right are reserved with CU-IDOL Size Large www.cuidol.in Unit-3 (MBA603)

AUTHORITY, RESPONSIBILITY& ACCOUNTABILITY 10 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

AUTHORITY INTRODUCTION : 11 In laymen terms, authority means nothing but power. Responsibility All right are reserved with CU-IDOL means an obligation to do anything. Accountability means responsibility to answer for the work. But it is not that simple as it seems to be. Authority, Responsibility, and Accountability are very deep terms and are equally important in management. AUTHORITY: Authority is nothing however the rights or the powers with the executives which the business enterprise gives them with the aim of achievement of positive commonplace organizational goals. Hence, it includes the powers to assign obligations to the subordinates and cause them to accept and observe it. As per Henri Fayol, “Authority is the right to give orders and the power to exact obedience.” www.cuidol.in Unit-3 (MBA603)

RESPONSIBILITY 12 Responsibility is not anything but the duty that comes along with the process. In other phrases, it's far the responsibility of the character to complete the task given to him/her. It becomes his responsibility. Moreover, it shows that the authority is properly used and work is done accordingly. Under this, a person is eligible to delegate the work to the subordinate but not the ultimate accountability. As per Davis, “Responsibility is an obligation of an individual to perform assigned duties to the best of his ability under the direction of his leader.” CHARACTERSTICS:  Its importance lies in the creation of the obligation to perform the work.  It arises from the superior-subordinate relationship.  Unlike Authority, it flows from bottom to top.  It is always in the form of a continuing obligation.  No one can delegate responsibility. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

ACCOUNTABILITY 13 It's miles nothing but the legal responsibility created for the transfer of authority. Accountability creates the responsibility of the subordinate and makes him chargeable for the work done through him/her. Hence, it is the answerability for the performance of the assigned duties. Once a person accepts authority, he deems to accept Responsibility and Accountability at that time only. As per McFarland, “accountability is the obligation of an individual to report formally to his superior about the work he has done to discharge the responsibility.” www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

DELEGATION OF AUTHORITY 14 Introduction : Managers have to perform various task and activities but it requires authority in order to perform activities assigned to him by the supervisors. And superiors used to delegate the necessary authority to their subordinates. Meaning : Most of the managers fail to delegate because they fail to understand the meaning of Delegation. The process of giving authority to a subordinate in order to perform the assigned activity by superior is called delegation of authority. “Delegation is the process a manager follows in dividing the work assigned to him so that he performs only that part which he can perform effectively and so get others help him in remaining work.” www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

NATURE OF DELEGATION 15 All right are reserved with CU-IDOL Nature of delegation includes : 1) It gives directions to a manager in performing his duties. 2) It can be modified even after the action is over. 3) Managers cannot delegate authority which he does not possess. 4) It may be specific or general. 5) It is an art rather than a science. www.cuidol.in Unit-3 (MBA603)

INFORMAL DELEGATION 16  Informal delegation does not arise due to position but according to circumstances.  On the other hand an informal delegation does not create any obligation. Here delegation isn't entrusted the art work neither he's given the responsibility and authority formally.  Alternatively artwork is taken and authority is exercised because humans do want the person to take the duty and exercise the authority.  The company formally has to do now not some thing with this sort of responsibility and authority. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF DELEGATION 17 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

BENEFITS OF DELEGATION 18 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

HOW TO MAKE DELEGATION EFFECTIVE 19 To make Delegation effective we have various steps which are mentioned below:  Delegate early.  Delegate responsibility and authority.  Select the right person.  Communicate the rationale and benefit.  Provide support, guidance and instructions.  Delegate the entire task to one person.  Take personal interest in the progress of  Set clear goals and expectations. delegated task.  If you’re not satisfied with the progress, don’t take the project back immediately.  Evaluate and recognize performance www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

STAFFING 20 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

STAFFING 21 Meaning of Staffing : Staffing is the procedure of hiring eligible candidates in the company or enterprise for specific positions. In management, the which means of staffing is an operation of recruiting the employees through comparing their capabilities, information and then imparting them particular activity roles therefore. Definition: Staffing can be defined as one of the most important functions of management. It involves the process of filling the vacant position of the right personnel at the right job, at right time. Hence, everything will occur in the right manner. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

ELEMENTS OF STAFFING 22 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

FUNCTIONS OF STAFFING 23 Following are the Function of Staffing :  Manpower planning  Development  Fixing the employment standard  Sources  Selection and placement  Training www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

PROCESS OF STAFFING 24 Following are the steps in Process of Staffing : www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

Advantages of Staffing 25 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

26 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

INTRODUCTION To CONTROLLING 27  Controlling is one of the essential capabilities of a supervisor. Which will seek deliberate results from the subordinates, a manager wishes to exercise effective control over the sports of the subordinates.  In other words, the meaning of controlling feature can be defined as making sure that activities in an company are executed as in step with the plans.  Controlling additionally ensures that an corporation’s sources are being used efficaciously & efficaciously for the fulfilment of predetermined desires. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

IMPORTANCE OF CONTROLLING 28 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

TYPES OF CONTROLLING 29 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

PROCESS OF CONTROLLING 30 The following steps are the process of Controlling : 1) Fixing the Standards 2) Measuring the actual Performance 3) Comparison 4) Corrective Action 5) Follow-up www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

Techniques of Controlling 31 There are Two main techniques of controlling mentioned in flow diagram below: www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

32 Lets study about the Concept of Decision-Making www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

Decision Making 33 Meaning :  It is the process of selecting the best among the alternatives under a given set of circumstances.  A decision can be defined as a direction of motion purposely selected from a set of options to obtain organizational or managerial targets or dreams. Decision making system is non-stop and indispensable element of coping with any corporation or business sports.  Choices are made to maintain the activities of all commercial enterprise activities and organizational functioning.  Selections are made at each stage of control to ensure organizational or business goals are achieved. Similarly, the choices make up considered one of core practical values that every business enterprise adopts and implements to make sure highest quality boom and drivability in terms of services and or products offered. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

Importance of Decision Making 34  Better Utilization of resources  Business growth  Achieving objective  Increase efficiency  Facilitates innovation  Motivates employees  Solving problems in management  Teamwork www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

Process of Decision-Making 35 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

SUMMARY 36  Organisation is a system of consciously co-coordinating activity of two or more persons.  Classification of organisation : 1. Formal organisation 2. Informal organisation  Authority is power to make decisions which guides the action of others.  Responsibility is the obligation of the subordinate to perform the duty as required by his superiors.  Delegation is the process of entrusting part of work by a Manager to subordinates. It is the ability to get result through others.  Accountability is the answerability of the work assigned to the subordinates.  Delegation of Authority : Delegation of work by the managers to the subordinates with some authorities.  Formal & Informal Delegation  Principles of delegation : It covers various steps  How to make Delegation effective : as discussed in following steps 1. Delegate early 6. Delegate responsibility and authority. 2. Provide support, guidance and instructions. 7. Communicate the rationale and benefit 3. Take personal interest in the progress of delegated task. 8. Delegate the entire task to one person 4. If you’re not satisfied with the progress, don’t take 9. Evaluate and recognize performance 5. the project back immediately. 10. Set clear goals and expectations. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

SUMMARY  Staffing : Staffing is the procedure of hiring eligible candidates in the company or enterprise for specific position3s7.  Elements of Staffing : Estimating Manpower Requirements: Before starting the work, the manpower requirement of the organisation is assessed.  Process of Staffing : Estimating manpower requirement: Staffing process begins with the estimation of manpower requirement which means finding out number and type of employees needed by the organisation in near future. ... Recruitment, Selection, Placement and Orientation, Training and Development  Advantages :  Staffing process helps in getting right people for the right job at right time.  Staffing process helps to improved organizational productivity.  It helps in providing job satisfaction to the employees and thus keeps their morale high.  It maintains harmony in the organization.  Controlling : In other words, the meaning of controlling feature can be defined as making sure that activities in an company are executed as in step with the plans  Process of Controlling : 1) Fixing the Standards 2) Measuring the actual Performance 3) Comparison 4) Corrective Action 5) Follow-up www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

SUMMARY  Techniques of Controlling : Budgeting and non-Budgeting Technique 38  Decision Making : It is the process of selecting the best among the alternatives under a given set of circumstances. A decision can be defined as a direction of motion purposely selected from a set of options to obtain organizational or managerial targets or dreams.  Importance of Decision Making : Step 4: Weigh the evidence.  Better Utilization of resources Steps 5: Choose among alternative  Business growth Step 6: Take action.  Achieving objective Step 7: Review your decision & its consequences.  Increase efficiency  Facilitates innovation  Motivates employees  Solving problems in management  Teamwork  Process of decision Making : Step 1: Identify the decision. You realize that you need to make a decision. Step 2: Gather relevant information. Step 3: Identify the alternatives. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 39 1. Principles of Delegation includes: c) Unity of Command a) Co-equal authority and responsibility d) All of the above b) Accountability 2. Staffing is ___________ c) Continues process a) One time job d) All the above b) Short term activity 3.Process of Decision Making consists of ____________ a) Identification of the problem c) One time job b) Accountability d) None of the above 4. Which of the following management functions are closely related or next to each other? a) planning and organizing c) planning and control b) staffing and coordination d) planning and staffing ANSWERS: 1.(d) , 2. (d) , 3. (a) , 4. (a) www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS 40 Q1. How delegation can be made effective. Ans 1. By following various steps mentioned below delegation can be made effectively. Delegate early 2. Delegate responsibility an authority. 3. Provide support, guidance and instructions. 4. Communicate the rationale and benefit . For further explanation please refer to SLM unit-3 Q2. How Decision making plays an important role in the organisation functions. Ans . Decision making is associated with planning, organizing, directing and controlling capabilities of a supervisor. Selection making is vital to gain the organizational dreams/objectives within given time and finances. Selection-making is a pervasive characteristic of managers aimed at accomplishing organizational dreams. For further explanation please refer to SLM unit-3 www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

REFERENCES 41  Robbins P Stephen, Organizational Behaviour, 15thedition, Prentice Hall, New Delhi.  Koontz – Principles of Management (Tata McGrew Hill, 1st Edition2008)  Robbins & Caulter – Management (Prentice Hall of India, 8thEdition)  Aswathappa K, Organizational Behavior, Himalaya Publishing House, Mumbai  Luthans Fred, Organizational Behaviour, McGraw Hill Book Co, New Delhi.  Prasad L M, OrganisationalBehaviour, Sultan Chand Publications. www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL

42 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-3 (MBA603) All right are reserved with CU-IDOL