BSCHMCTT 505

Punjab Technical University
World over Distance Education is fast growing mode of education because of the unique benefits it provides to
the learners. Universities are now able to reach the community which has for so long been deprived of higher
education due to various reasons including social, economic and geographical considerations. Distance Education
provides them a second chance to upgrade their technical skills and qualifications.
Some of the important considerations in initiating distance education in a country like India, has been the
concern of the government in increasing access and reach of higher education to a larger student community.
As such, only 6-8% of students in India take up higher education and more than 92% drop out before reaching
10 + 2 level. Further, avenues for upgrading qualifications, while at work, is limited and also modular programs
for gaining latest skills through continuing education programs is extremely poor. In such a system, distance
education programs provide the much needed avenue for:
• Increasing access and reach of higher education;
• Equity and affordability of higher education to weaker and disadvantaged sections of the society;
• Increased opportunity for upgrading, retraining and personal enrichment of latest knowledge and know-
how;
• Capacity building for national interests.
One of the important aspects of any distance education program is the learning resources. Learning material
provided to the learner must be innovative, thought provoking, comprehensive and must be tailor-made for
self-learning. It has been a continuous process for the University in improving the quality of the learning
material through well designed course materials in the SIM format (Self-instructional material). While designing
the material, the university has researched the methods and processes of some of the best institutions in the
world imparting distance education.
About the University
Punjab Technical University (PTU) was set up by the Government of Punjab in 1997 through a State Legislative
Act. PTU started with a modest beginning in 1997, when University had only nine Engineering & thirteen
Management colleges affiliated to it. PTU now has affiliated 43 Engineering Colleges, 56 colleges imparting
Management and Computer Application courses, 20 institutions imparting Pharmacy education, 6 Architecture
Institutions, 2 Hotel Management and 12 Regional Centers for imparting M.Tech and Ph.D programs in different
branches of Engineering and Management. During a short span of nine years, the University has undertaken
many innovative programs. The major development during this period is that University has restructured its
degree program and upgraded syllabi of the courses in such a way as to increase the employability of the
student and also to make them self-reliant, by imparting Higher Technical Education. We at Punjab Technical
University are propelled by the vision and wisdom of our leaders and are striving hard to discharge our duties
for the overall improvement of quality of education that we provide.
During a short span of nine years, the University has faced various challenges but has always kept the interest
of students as the paramount concern. During the past couple of years, the University has undertaken many
new initiatives to revitalize the educational programs imparted within the colleges and Regional centers.
Though Knowledge and skills are the key factors in increasing the employability and competitive edge of
students in the emerging global environment, an environment of economic growth and opportunity is necessary
to promote the demand for such trained and professional manpower. The University is participating in the
process of technological growth and development in shaping the human resource for economic development of
the nation.
Keeping the above facts in mind Punjab Technical University initiated the distance education program and
started offering various job oriented technical courses in disciplines like Information Technology, Management,
Hotel Management, Paramedical, Media Technologies and Fashion Technology since July 2001. The program
was initiated with the aim of fulfilling the mandate of the Act for providing continuing education to the
disadvantaged economically backward sections of the society as well as working professionals for skill up-
gradation.
The university has over the years initiated various quality improvement initiatives in running its distance
education program to deliver quality education with a flexible approach of education delivery. This program
also takes care of the overall personality development of the students. Presently, PTU has more than 60 courses
under distance education stream in more than 700 learning centers across the country.
About Distance Education Program of PTU
Over the past few years, the distance education program of PTU has gained wide publicity and acceptance due
to certain quality features which were introduced to increase the effectiveness of learning methodologies. The
last comprehensive syllabus review was carried out in the year 2004-05 and the new revised syllabus was
implemented from September 2005. The syllabus once reviewed is frozen for a period of 3 years and changes,
if any, shall be taken up in the year 2008. Various innovative initiatives have been taken, which has increased
the popularity of the program. Some of these initiatives are enumerated below:
1. Making a pyramid system for almost all courses, in which a student gets flexibility of continuing higher
education in his own pace and per his convenience. Suitable credits are imparted for courses taken during
re-entry into the pyramid as a lateral entry student.
2. Relaxed entry qualifications ensure that students get enough freedom to choose their course and the basics,
necessary for completing the course is taught at the first semester level.
3. A comprehensive course on “Communications and Soft Skills” is compulsory for all students, which ensures
that students learn some basic skills for increasing their employability and competing in the globalized
environment.
4. Learning materials and books have been remodeled in the Self-Instructional Material format, which ensures
easy dissemination of skills and self learning. These SIMs are given in addition to the class notes, work
modules and weekly quizzes.
5. Students are allowed to take a minimum of 240 hours of instruction during the semester, which includes
small group interaction with faculty and teaching practical skills in a personalized manner.
6. Minimum standards have been laid out for the learning centers, and a full time counselor and core faculty
is available to help the student anytime.
7. There is a wide network of Regional Learning and Facilitation Centers (RLFC) catering to each zone,
which is available for student queries, placement support, examination related queries and day to day
logistic support. Students need not visit the University for any of their problems and they can approach the
RLFC for taking care of their needs.
8. Various facilities like Fee Waiver for physically challenged students, Scholarship scheme by the government
for SC/ST candidates, free bus passes for PRTC buses are available to students of the university.
The university continuously aims for higher objectives to achieve and the success always gears us for achieving
the improbable. The PTU distance education fraternity has grown more than 200% during the past two years
and the students have now started moving all across the country and abroad after completing their skill training
with us.
We wish you a marvelous learning experience in the next few years of association with us!
Dr. R.P. Singh

Dean
Distance Education
Dr. S.K. Salwan
Vice Chancellor
Dr. S.K. Salwan is an eminent scientist, visionary and an experienced administrator. He is a doctorate in
mechanical engineering from the IIT, Mumbai. Dr. Salwan brings with him 14 years of teaching and research
experience. He is credited with establishing the Department of Design Engineering at the Institute of
Armament Technology, Pune. He was the founder-member of the integrated guided missile programme of
defence research under His Excellency Honorable Dr. A.P.J. Abdul Kalam. He also established the high-
technology missile centre, RCI at Hyderabad. He has been instrumental in implementing the Rs. 1000-crore
National Range for Testing Missiles and Weapon Systems at Chandipore, Balasore in a record time of three
years. He was Director of the Armament Research and Development Establishment, Pune. Dr. Salwan has
been part of many high level defence delegations to various countries. He was Advisor (Strategic Project) and
Emeritus Scientist at the DRDO. Dr. Salwan has won various awards, including the Scientist of the Year 1994;
the Rajiv Ratan Award, 1995, and a Vashisht Sewa Medal; 1996, the Technology Assimilation and Transfer
Trophy, 1997 and the Punj Pani Award in Punjab for 2006.
Dr. R.P. Singh

Dean, Distance Education
Dr. R.P. Singh is a doctorate in Physics from Canada and has been a gold medalist of Banaras Hindu University
in M.Sc. Dr. Singh took over the Department of Distance Education in November 2004 and since then the
University has embarked on various innovations in Distance Education.
Due to combined efforts of the department the RLFC’s and Centers, and with active support of the Distance
Education Council headed by Dr. O.P. Bajpai, Director, University College of Engineering, Kurukshetra
University, the distance education program of PTU is now a structured system which empowers the learner
with requisite skills and knowledge which can enhance their employability in the global market. Dr. R.P. Singh
is promoting distance education at the national level also and is a founder member of Education Promotion
Society of India and is member of various committees which explores innovative ways of learning for the
disadvantaged sections of society. The basic aim of the distance education program has been to assimilate all
sections of society including women by increasing the access, reach, equity and affordability of higher
education in the country.
PRINCIPLES OF MANAGEMENT
(SEMESTER-V)
BSCHMCTT-505
This SIM has been prepared exclusively under the guidence of Punjab Technical University (PTU) and reviewed
by experts and approved by the concerned Statutory Board of Studies (BOS). It conforms to the syllabi and
contents as approved by the BOS of PTU.
© All rights reserved. No part of this publication
may be reproduced in any form without
the prior written permission of the publishers.
Published by Neeraj Govil for Frank Bros. & Co. (Publishers) Ltd.,
4675-A, Ansari Road, 21 Daryaganj, New Delhi-110 002
SYLLABUS
BSCHMCTT-505: PRINCIPLES OF MANAGEMENT

SEMESTER V
UNIT-I Hotel Management

 An Introduction
 Careers in Hospitality Today, looking for a job
 Basic functions of Management – POSDCORB.
UNIT-II Evolution of Management Theories

 Management theories over the past.
 Current Hospitality Management Practices.
UNIT-III Hotel Administration & Organization

 Hotel Administration, organizing a hotel
 Department pattern.
 Business aims
 Human elements
 Line management
 Organization structure for 5 star hotel.
 Manager’s job in Hospitality Industry.
UNIT-IV Management Objectives & Communication

 Management Philosophy
 Managing by Rules
 MBO in Hotels
 Modern Objective of HR
 Major Problems in Hotel Business
UNIT-V HR Planning
 Concept & Features of Manpower Planning
 Objectives of HRP
UNIT-VI Developing Human Resources
 Objectives of HRD
 Recruitment, Selection and Interview
 Sources of Recruitment
 Advertisements
 Rules and Regulations
UNIT-VII Training and Development

 Training Programmes for Hotel Employees
 Basic Principle of Training
 On Job Training
 How to instruct on the Job Training
 Performance Evaluation and Appraisals.
Contents
1. Hotel Management 1 – 18
• Introduction 1
• Hospitality Industry Statistics 3
• Job Titles in the Hotel and Hospitality Industries 5
• Working Conditions 5
• Hotel Career Paths and Advancement Opportunities 6
• Hospitality Industry 12
2. Basic Concepts of Management 19 – 41

• Introduction 19
3. Evolution of Management Theories 42–63

• Introduction 42
• Concept of Organisation Theory 42
• Uses of Organisation Theory 43
• Classical Organisation Theory 44
• Neoclassical Organisation Theory 52
• Modern Organisation Theory 55
• Systems View of Organisational Design 59
4. Hotel Administration and Organisations 64 – 127

• Introduction 64
• Principles of Management 64
• Division of Work 66
• Functions of Management 68
• Tools of Management 83
• The Organisation Chart 83
• Training 102
• Decision Making 103
• Communication 105
• Management of Resources 109
• Space 112
• Materials 112
• Equipment 115
• Staff 116
5. Management Philosophy 128 – 146

• Development of Management Thought 128
• Pre-Scientific Management 129
• Principles of Scientific Management 130
• Operational Management 132
• Hawthorne Experiments and Human Relations 143
6. Managing by Rules 147 – 155

• Facilities and Location 147
• People Culture 147
• Structure Analyze 147
• Hotel Training and Development Division 148
• Performance Evaluating 150
• Management By Objectives 152
• Emergency Measures 154
7. HR Planning 156 – 197

• Introduction 156
• Definitions of HRM (Human Resource Management) 156
• Objectives of HRM 157
• Importance of HRM 159
• The Changing Role of HRM 161
• Functions of Personnel Management 162
• Organising the HR Department 165
• Staff Role of HR Department 167
• Origin and Growth of HR Function in India 167
• Slow Growth of HRM in India 169
• HRM Model 173
• Challenges Faced by HRM Today 178
• Human Resource Development (HRD) 181
• HR Planning 185
8. Develpoing Human Resources 198 – 219

• Personnel Policies 198
• Conditions Necessary Employee Expectations from Employees 199
• Recruitment 202
• Selection 207
• Method of Induction 213
• Physical Needs 214
• Socio-Psychological Needs 215
• Type of Employee Welfare Schemes in India 216
9. Training and Development 220 – 240
• Areas of Training 225
• Development 227
• Process of Development 228
• Evaluation and Appraisals 230
• Factors and Criteria for Designing a Compensation Package 231
• Motivation of Salesforce 233
• Financial Incentives 236
• Monitoring of Salesforce 237
• Performance Appraisal and Evaluation 238
Internal Assignment 241–247
HOTEL MANAGEMENT
Notes
Unit I
1 HOTEL MANAGEMENT
INTRODUCTION
Hotel management is the art of providing food and drink aesthetically and
scientifically to a large number of people in a satisfactory and cost effective
manner.
Since every person eats away from home at sometimes or the other and
people have different paying capacity for the same food items, at different times,
even a roadside food and beverage stalls has the potential to flourish. Then the
role of management in catering management comes.
Management can be defined as the art or bringing together available
resources including the abilities of different people and organizing them in a
scientific and orderly manner to achieve the desired goals of the organization
while promoting individual aspirations as well. In its simplest form management
is the process of establishing objectives, putting together all available human
and material resources in the best possible manner, in an atmosphere of
cooperation and goodwill.
As catering involves diverse activities and variety of products and services,
it provides a special challenge to the manager. It has certain characteristics which
make it different from other manufacturing and service industries.
These are:
1. A marked dissimilarity of the principal services offered such as rooms,
food, liquor and tobacco.
2. A wide variety of food in various service styles to the customer, ranging
from biscuits and tea, cooked and processed snacks, beverages and
meals to organization of complete events.
3. The product and service are closely interlinked and cannot be treated
in isolation.
4. The product offered is not always taken off the shelf and served, but
Self-Instructional Material 1
Notes requires further preparation or finishing touches before it can be

presented to the customer.
5. Products are not easy to standardize and the same dish varies in its
shape, size, colour and nutritive and sensory qualities from one hotel
to another.
6. Providing a personal touch to the food is an important selling point in
catering.
7. The ingredients used in food preparation are perishable to varying
degrees and therefore special arrangements for their safe storage are
necessary.
8. Customer tastes vary on different days and even at different times on
the same day. These results in radical changes in the amount of food
unsold and therefore wasted.
9. Food production can make use of equipment to a certain extent but
cannot be fully automated. Besides, caterers have to deal with a lot of
people from varying cultural, religious, social and structural
backgrounds. This calls for greater skills in food processing and man-
power management both within and outside the establishment.
10. Food is more vulnerable to pilferage, theft, contamination, spoilage
and waste. It therefore needs to be strictly controlled at all stages of
production and service.
11. The product is generally consumed at the point of production, but
while some items can be prepared beforehand and held safely, others
cannot, and therefore have to be prepared on order. This results in
peaks and troughs of activities.
12. Customers have to wait for different lengths of time for being served
depending on the extent of their orders.
13. The caterer has also to concern himself with standards of hygiene and
the health of his customers as food once consumed cannot be retrieved.
Other products such as soap can always be discarded by the customer
if found unsatisfactory, the adverse effects of an infected food can only
be felt after it has been consumed.
14. A large variety of costs are incurred in different ways by caterers of
different types of services.
15. Fixed costs continue to be incurred whether the facilities are used or
not.
16. The demands of customers vary in the combinations of services
2 Self-Instructional Material
HOTEL MANAGEMENT
required to which caterers have to adjust. For example, overnight, Notes

board, lodging or conference guests, agency custom, restaurant and
bar sales to nonresidents and banquets. All these give rise to a variety
of prices for the same commodity.
17. A constant need to price competitively and to know the costs involved
in providing products and services profitably.
18. There is marked prevalence of seasonal trading.
19. There is always a possibility of altering the balance between the
principal services sold, either by extending one service at the expense
of another, or by overall expansion. For example, conversion of a lounge
into a banquet or conference hall or bar.
In view of the above special features catering management requires a
professional approach backed by special skills, knowledge and vigilance at every
stage of production and service.
HOSPITALITY INDUSTRY STATISTICS

The restaurant industry is booming. As the second largest employer, behind
only the government, the restaurant industry employs 12.8 million people, in
both front of the house and kitchen positions, according to the National
Restaurant Association (NRA). And both the US Bureau of Labor Statistics (BLS)
and the NRA predict that this number will continue to grow over the next decade.
However, individuals aiming for executive chef positions or those who want to
work in top restaurants should expect to face tough competition. The latest
published data from the BLS indicates that there were 3.1 million chefs, cooks
and food preparation workers in 2004. Of that number, only 125,000 held
executive chef positions.
The figure below shows the distribution of these 3.1 million kitchen jobs.
4 % L e ss th a n 1 %
7%
2 9%
Fo od P rep ara tion W o rkers
1 4% R e stau ran t C o o ks
Fa st Fo o d C o o ks
C a feteria/Institu tio n C oo ks
S h ort O rd er C oo ks
E xecu tive C he fs
P riva te H o useh o ld C oo ks
2 1%
2 5%
Fig. 1
Notes Hotels are amongst the most visible and important aspects of a country’s
infrastructure. Hotel industry is a closely linked one to the tourism industry. A
number of factors like promotion of tourism and rapid industrial progress have
given a boost to hoteliering. The recent liberalisation of trade and opening up
of economy will further lead to revolutionary growth in this sector.
With increasing globalisation, career opportunities in this field are not only
limited within the country but there are chains of hotels which operate
internationally providing scope of a career abroad. It is a glamorous profession
which has a bright future. With the growth of hotel industry propelled by foreign
and domestic tourism and business travel, the demand for well trained quality
personnel too has grown impressively.
The diversity of experience in hotel management is greater than in any other
profession. Hotel industry involves combination of various skills like
management, food and beverage service, housekeeping, front office operation,
sales and marketing, accounting. Today, the rise in corporate activity (leading
to greater number of business trips) as well as the wish to travel on holiday has
made the hotel industry a very competitive one.
After learning traditional, fundamental cooking skills, and then will learn
the realities of working in restaurants and the food service industry. The number
of jobs for chefs, cooks and food preparation workers will increase 9 - 17%
between 2004 and 2014. In 2007, restaurant sales will increase 5% over 2006 and
will average about $1.5 billion per day. Restaurant sales will equal 4% of the
gross domestic product in 2007. Over 70% of eating and drinking establishments
are independently owned.
If you enjoy helping people, you might want to consider a career as a hotel,
hospitality or lodging manager. The hotel manager often sets the experience
for his establishment’s guests, making them feel at home, whether they are
vacationers or business travelers. Lodging managers are employed at
establishments including inns, camps, resorts, in addition to hotels and motels.
Their primary responsibility is to make sure their facilities are profitable and
efficient, while providing for the needs of their guests.
Depending on the size of the hotel, motel, or inn, a lodging manager may be
responsible for the entire operation, or may oversee a single department. In
larger hotels and resorts, there is typically a general manager, with several
assistant managers who oversee different parts of the facility. In a smaller motel
or inn, the manager may have complete responsibility for all operations. A good
way to determine the responsibilities of a lodging manager is to look at his or
her job title.
HOTEL MANAGEMENT
JOB TITLES IN THE HOTEL AND HOSPITALITY INDUSTRIES Notes

The General Manager is the most senior executive of a hotel or motel, although
he or she might report to the owner or executives of the parent hotel chain. The
General Manager has financial responsibility for the operation, setting budgets,
approving expenditures, and determining room rates. The General Manager
also has responsibility for front of the house operations as well, setting standards
and overseeing restaurant and banquet operations, guest services, housekeeping,
and decor.
Some hotels have Resident Managers, who, as their name implies, are
always available to assist with guest or staff related issues. They normally work
eight hour scheduled shifts, but are expected to be available during other parts
of the day. In larger hotels, there may be several resident managers, with
overlapping shifts so that one is always present at the hotel.
Front Office Managers are responsible for the hotel’s check-in and check-
out desks. The direct the front desk staff, and handle guest complaints, issues
and requests. In many cases, front office managers have the authority to adjust
guests bills, in cases where there is a dispute over charges.
The public rooms and guest rooms are the responsibility of the Executive
Housekeeper. They ensure the cleanliness of these areas, and train and supervise
the housekeeping staff. They also have the responsibility of ordering the supplies
needed to clean and stock guest rooms.
Larger hotels employ Convention Service Managers to coordinate the
banquets, meetings, and other special events. Before the event, the convention
service manager meets with the event’s planners to determine room
requirements, meeting configurations, amenities needed, and banquet services.
During the event, they are available to answer questions and resolve issues,
and keep an eye on things to ensure that the facility’s service standards are met.
In larger hotels and resorts, there may be a number of Assistant Managers
reporting to each of the senior managers listed above.
The hotel and lodging business has come to rely extensively on computers
to keep everything running smoothly. From keeping track of inventory to
automating wake up calls, computers have reduced the number of staff required
to run a hotel. This reliance on computers means that larger hotels have
Computer Specialists who are on call to monitor the system, and keep
everything running smoothly.
WORKING CONDITIONS
Hotel managers sometimes face the challenges of long hours and working under
pressure, because hotels are open 24 hours a day, managers frequently have to
Notes work evenings and weekends. During busy periods, they may put in more than
40 hours per week.
Hotels exist to serve their guests, and enjoying working with people is a
requirement for a career in the lodging industry. The pressure of catering to the
needs of guests, particularly during conventions and other busy times, can lead
to job stress.
Unlike in the past, when many hotel, resort, and lodging managers were
promoted to management positions from within the organization, management
training from a recognized hospitality or culinary school is increasingly a
requirement for the job. Other factors include internships or work experience
in a hotel or restaurant and work study programs. This demand for trained
workers has led to over 800 colleges, trade schools and vocational schools
offering training programs in hotel or restaurant management.
Preferred training programs include courses or degrees in hotel
management. Training in restaurant management and experience can help,
because of the importance of the hotel’s food and beverage operations to its
profits. Liberal Arts degrees, or other generalized management degrees can be
useful, particularly when combined with work experience in a hotel, restaurant,
or resort.
Hotel management training programs typically include coursework in hotel
administration, housekeeping, maintenance engineering, and food service
management or catering. Additional coursework develops skills in accounting,
computer operations, marketing, and personnel management.
In addition to formal training, hotels hire candidates who exhibit the ability
to get along with people, can solve problems, and are self disciplined and detail
oriented. Good communications skills and the ability to organize and direct the
work of subordinates are also a requirement.
HOTEL CAREER PATHS AND ADVANCEMENT OPPORTUNITIES

Newly hired graduates of hotel and restaurant management programs typically
begin their careers as assistant managers. Some larger hotel chains offer formal
programs where new hires rotate across several assistant management positions
in different parts of the hotel in order to gain experience in all areas of the hotel.
After several years experience, hotel managers can advance to positions
offering more responsibility. This is particularly true in the larger hotel chains.
This may mean relocating to a different city, as positions open up at existing
hotels, or new hotels are opened. Larger hotels or motels also have headquarters
management staffs, with additional promotion possibilities.
HOTEL MANAGEMENT
In 2000, there were about 68,000 positions available for hotel, motel, and Notes
lodging managers. Of these, about half were held by owners and operators of
small hotels and motels. While the number of new positions is expected to grow
slowly this decade, opportunities for management positions are most likely to
go to people with degrees in hotel management.
Job growth will be driven by an increasing number of business travelers,
and a rise in tourism. Much of this growth will be in suite hotels, which attract
high paying business customers. Full service hotels, which offer full restaurant,
bar, and convention facilities will also provide additional openings for hotel
managers. The growth of budget hotels and inns, as well as extended stay hotels,
will dampen the growth of jobs for hotel managers, since these locations offer
fewer services.
Salaries of hotel managers vary greatly, depending on the size of the hotel
or motel that employs them, and their responsibilities. Median annual earnings
of lodging managers were $37,660 in 2004. The middle 50 percent earned between
$28,640 and $51,030. The lowest 10 percent earned less than $22.680, while the
highest 10 percent earned more than $72,160, an increase of over $17,000 since
the year 2000.
In addition to salary, hotel managers can receive performance based bonuses
of up to 25 percent. Some hotels offer profit sharing and educational assistance
plans to their employees. In addition to typical benefits packages, because of
the nature of the business, managers can receive lodging, laundry, meals, and
other services as part of their compensation.
Eligibility
One can enter this field by direct entry or through hotel management institutes.
For direct entry the vacancies are generally advertised in the newspapers and
the minimum prescribed qualification is graduation with 50% marks.
Educational
Minimum qualification required to go for a course in hotel management is 10+2.
For certificate, diploma and bachelors courses 10+2 is sufficient. Duration of
certificate courses is six months to one year. Bachelor and diploma courses are
of duration one and half to three years. Those with graduation can go for post
graduate diploma courses the duration of which is one year. Selection to most
government recognised institutes is based on common entrance test. Test consists
of English, Reasoning, General Science and General Knowledge. The test is of
two hour duration and is held around April every year. The test is followed by
a group discussion and interview, in which a person’s personality and confidence
is seen. Private institutes also conduct tests of their own, the pattern of which is
almost the same.
Notes Some of the prominent schools that conduct courses in this area are:
The Oberoi centre for Learning and Development, 1 Sham Nath Marg,
New Delhi-110054; Indian Institute of Hotel Management, Rauza Bagh,
Aurangabad- 431001; Welcomgroup Graduate School of Hotel Administration,
Valley View Hotel, Manipal- 576119, National Council for Hotel Management
and Catering Technology, Pusa, New Delhi.
Course areas include food processing, Food and beverages service,
Accommodation operation or front office, hotel accountancy, Business
communication, French language, hotel engineering, computer, nutrition and
food service, Hotel laws, Principles of management, sales and marketing
management, Human resource management.
Personal Attributes
They should have a good organizational background, excellent communication
and interpersonal skills, strong commitment and self-discipline. One must be
an extrovert, co-operative, polite and respectful to the guests, have patience to
deal guest criticism even when you know you are right, willing to work hard
even at odd hours and yet be cheerful.
Job Prospects and Career Options

A hotel consists main departments such as Operations, Front office, House
keeping, Food and Beverages, Accounting, Engineering/ Maintenance, Sales
and Security.
Eligibility and Course Areas

One can enter this field by direct entry or through hotel management institutes.
For direct entry the vacancies are generally advertised in the newspapers and
the minimum prescribed qualification is graduation with 50% marks. They are
trained by the hotels themselves. But Qualified personnel’s are always given a
higher preference.
Job Prospects
Lots of lucrative and interesting openings are there for hotel management
graduates in various fields like:
 Hotel and Restaurant management
 Airline Catering and Cabin Services
 Club management
 Cruise Ship Hotel Management
 Hospital Administration and Catering
 Hotel and Tourism Associations
HOTEL MANAGEMENT
 Forest Lodges Notes

 Guest Houses
 Institutional Management (supervising canteens in college, schools,
in factories, company guest houses etc.)
 Catering departments of railways, banks, armed forces, shipping
companies etc.
 Hotel and catering institutes
 Self employment
Career Options
A hotel consist main departments such as Operations, Front office, House
keeping, Food and Beverages, Accounting, Engineering/ Maintenance, Sales
and Security. Each department has a number of positions that one can opt for.
General Operations
General Manager who is the main in charge, is the coordinator and administrator,
responsible for staff management, financial control, provision of services, quality
control and customer care. Depending on the size of the hotel, general managers
could have assistant managers to supplement their work.
Front Office
It is the centre of all activities. Important functions of receiving the guests,
making room reservations, handling correspondence and preparing bills and
keeping accounts of the guest services are handled at the front office. The
department is headed by Front Office Manager or Executive Housekeeper who
supervises and co-ordinates the work. Then there are Assistant Manager, Lobby
Executive, Front Office Supervisor, Information Assistant, Receptionist, Bell
Captain, Bell Boy, Doorman etc. to perform their assigned roles.
House Keeping
The work of keeping the hotel, the rooms, the bars, the restaurants etc. clean
and making it presentable to the guests and ensuring facilities and comfort to
them is handled by this department. Those handling this department are Chief
Executive Housekeeper, Floor Supervisor, Room Attendants, Linen Supervisors,
Maids etc.
Food and Beverages Department

This department is the hub of the hotel industry and is responsible for all the
food that is prepared and served in the hotel. The main functions performed by
the department are presentation, preparation and service of food and beverages
Notes involving kitchen, bar and baker. Overall in charge of kitchen is known as Chef
de Cuisine. The in charge of section is called Chef de Partis and the one who
supervises and coordinates the work of Chef de Partis is known as Sous-Chef.
One who cooks food is known as Cook, the person in overall charge of dining
hall is called Maitre de hotel, Captain in charge of part of dining hall is known
as Chef de Range, one who serves food is Demi Chef de Range or Steward.
Then there is the restaurant hostess who makes the guests comfortable and
deal with any complaints by the guests. Those serving drinks are bartenders.
Accounting Department
This department deals with both cash and credit transactions, i.e all the financial
transactions like purchase of materials, offering of services to the guests etc.
This department also compiles information required for budgeting, pricing of
food and services and so on. Professionals like cash, cost and works accountants
are given higher positions in the department. Chief cashier, cash clerk/bill clerk
are the positions handled in this department.
Sales and Marketing

This department keeps in touch with travel agents and tour operators as well
as other potential corporate clients in order to sell hotel facilities. Advertising
and Public Relations is also normally handled by this department.
Engineering / Maintenance Department

Qualified engineers are appointed for the maintenance of the building and
various machines involved in the premises. They are assisted by necessary staff
in the electrical and mechanical departments. Mechanical Engineers, Electrical
Engineer, Plumbers, carpenters etc. are employed by this department.
Then there is the Security department which provides security to the guest
and their belongings and employs security officers/guards for this purpose.
Retires Army personnel are preferred by this department.
Remuneration
After completing the diploma or the bachelor’s course, a graduate is usually
taken as a trainee.
Hotel Management Courses

Certificate/Craft Courses
Certificate Course in Bakery and Confectionery
Certificate Course in Cookery
Certificate Course in Flight Catering Operation
HOTEL MANAGEMENT
Certificate Course in Food and Beverages Notes

Certificate Course in Food Craft Management
Certificate Course in Food Production
Certificate Course in Food Production and Patisserie
Certificate Course in Front Office
Certificate Course in Hospitality Facilities and Housekeeping Operations
Certificate Course in Hotel Catering Management
Certificate Course in Hotel Operations and Management
Certificate Course in House keeping
Certificate Course in Restaurant and Counter Service
Craft Course in Bakery and Confectionery (CCBC)
Craft Course in Food Production (CCFP)
Craft Course in House Keeping (CCHK)
PG Diploma Courses
Dual PG Diploma in Hotel and Business Administration
PG Diploma in Accommodation Operation
PG Diploma in Bakery Science and Management
PG Diploma in Food and Beverage Division Management
PG Diploma in Hospitality Marketing and Sales
PG Diploma in Hotel/ Hospitality Management (PGDHM)
PG Diploma in Room Division Management
PG Diploma in Tourism and Hoteliering Management
PG Diploma in Tourism and Hotel Management
PGP in Hospitality and Tourism
Diploma Courses
Advance Diploma in Culinary Arts and Patisserie Studies
Advance Diploma in Hospitality and Hotel Administration
Advanced Diploma in International Hotel and Business Administration
(ADIHBA)
Diploma in Accommodation Operation
Diploma in Bakery and Confectionery (DBC)
Diploma in Catering Technology
Notes Diploma in Cookery

Diploma in Culinary Arts and Patisserie
Diploma in Food and beverage Service
Diploma in Food Production (DFP)
Diploma in Front Office / Reception Operation
Diploma in Hospitality Management
Diploma in Hotel and Tourism Management
Diploma in Hotel Management
Diploma in Hotel Management and Catering Technology
Diploma in Hotel Management, Catering and Food Science
Diploma in Hotel Operation, Catering and Applied Nutrition
Diploma in International Tourism
Diploma in Office Management and House Keeping
Diploma in Room Division Management (DRDM)
Diploma in Travel Tourism and Airlines Management
Dual Diploma in International Hotel Management (DIHM)
Integrated Diploma in Hotel Management and Catering Technology
International Higher Diploma in Hotel Management
Bachelor Courses
B.A in International Hospitality Management
Bachelor’s Degree in Hotel Management and Catering Technology (BHMCT)
Bachelor of Hotel and Tourism Management
Bachelor of Hotel Management (BHM)
B.Sc. in Catering Technology and Hotel Management
B.Sc. Nutrition, Food Service Management, Dietetics
Master Courses
Master of Hotel and Tourism Management
Master in Hotel Management (MHM)
MBA in Hospitality and Tourism
HOSPITALITY INDUSTRY
In any country, the hospitality industry is inextricably linked with its overall
economic prosperity and resourcefulness. In other words, the developmental
HOTEL MANAGEMENT
level of the hospitality industry could well be considered the index of its all Notes
round growth. Trade and commerce too would be unable to thrive were there
not adequate facilities and provisions for the overseas traders and business
people.
Hospitality industry is also directly proportionate to the inbound tourism
to any particular country. The various countries of the world like India, China,
Mexico and Iraq, that were the seats of ancient civilizations, are till date the
most favourite destinations of the tourists from all corners of the globe.
Hence, both these industries have vast potentials for developing both
tourism and hospitality industries. In this era of increasing globalisation,
hospitality industry or hotel management is assuming greater significance and
fast evolving as a lucrative career option Hotel management demands a friendly,
helpful, outgoing personality, ability to take responsibility and to work well
with others. Interest in people of all backgrounds, creativity, flair, tact, a
methodical approach, organising and administrative ability, a certain amount
of manual dexterity and visual imagination, physical stamina and good health
to withstand irregular hours of work are equally important traits.
Hotel Management courses are usually of three year duration leading to
the grant of a diploma/degree but some degree courses are also of four years
duration. Hotel Management courses at all institutes offer a blend of theoretical
and practical training. Students are given hands on training in running of a
hotel so that they can apply their theoretical learning to real life situations and
learn how to improve adapting.
Students graduating from established institutes of hotel management can
join the railways, airlines, shipping lines in their catering services, or the defence
sector. The industrial canteens absorb some hotel management professionals.
A few proceed to pursue postgraduate studies in hotel management and opt
for teaching jobs. Hospitals and other institutions also engage hotel management
professionals.
Hotel Management Courses: National Council for Hotel

Management
The National Council for Hotel Management and Catering Technology
(NCHMCT) is a Registered Society under Ministry of Culture and Tourism,
Government of India. The Council centrally regulates academics for Hospitality
Management through structured courses of studies that are imparted at the
government sponsored 24 Institutes of Hotel Management and 8 Food Craft
Institutes located in different parts of the country. All these Institutes uniformly
follow standardized course curricula prescribed by the Council for the eleven
different professional programmes available. Quality of education provided
Notes through the Institutes will help you to emerge as a professional of top order for
the Hospitality and Service Sector. The programme is scientifically designed
and assures Building of solid foundation of knowledge, Confidence Building,
Development of Personality and Soft Skills Development, Skills Development
through Laboratory work, Pursuit of Excellence and Self-discipline,
Enhancement of Creative Ability, etc.
The Council has trained more than 25000 hospitality executives and other
operational personnel. Its alumni occupy key positions in Hospitality Industry
and Academic Administration, both in India and abroad.
Degree Course
The Bachelor of Science (B.Sc.) porgramme in Hospitality and Hotel
Administration is offered by the National Council for Hotel Management and
Catering Technology, Pusa, New Delhi and Indira Gandhi National Open
University, New Delhi. The Three year programme equips trainees with all the
required skills, knowledge and attitude to efficiently discharge supervisory
responsibilities in the Hospitality Sector.
The Bachelor of Science programme comprises in depth laboratory work
for students to acquire the required knowledge and skill standards in the
operational areas of Food Production, Food and Beverage Service, Front Office
Operation and House keeping. It also imparts substantial managerial inputs in
areas such as Sales and Marketing, Financial Management, Human Resource
Management, Hotel and Catering Law, Property Management,
Entrepreneurship Development, etc.
Opportunities for Hospitality Graduates

Global growth and development of tourism having opened up innumerable
opening, graduates can look forward for bright career opportunities to get
absorbed as: Management Trainees in Hotel and Allied Industry, Hospitality
Executives, Kitchen Management/House and Institutional Catering
Supervisors/Assistants, Faculty in Hotel Management/Food Craft Institutes,
Cabin Crew in National and International Airlines, Catering Officers in Cruise
lines/Ships, Marketing/Sales Executives in Hotel/Multinational Companies,
Customer Service Executives in Banking /Insurance and other Service Sectors,
Managers/Supervisors in Tourism Development Corporations,
Entrepreneurship opportunities and many more.
Hospitality managers are at the helm of any resort, hotel or cruise ship.
From budgeting to public relations, hospitality managers are in charge of
everything from staffing, advertising, future planning and site development.
HOTEL MANAGEMENT
Hospitality managers must have strong leadership skills. Developing strong Notes
relationships with both employees and customers is essential, and they are
behind-the-scenes masters of communication. By ensuring excellent customer
service, hospitality managers keep the business successful.
Hospitality Management: Education and Training

Hospitality management programs may cover restaurant development, tourism
management, hotel and restaurant operations, human relations, employee
training and legal aspects of the business in addition to accounting, marketing,
finance and administration.
 A college level education is highly recommended due to the wide range
of skills required for a hospitality manager position.
 Having experience in a variety of positions in the restaurant and hotel
industry is key to advancing career.
Hospitality Management: Job Opportunities

 Cruise Ship Hospitality Manager
 Food Service Manager
 Hospitality Manager
 Hotel Manager
 Resort Executive Director
 Restaurant Manager
A hospitality degree is your ticket to an exciting and fun career in the growing
hospitality and tourism industry. With projected openings of 1.5 million jobs in
the hospitality industry in the next five years. Gone are the days where
“hospitality” meant busing dishes or changing towels. Today’s modern
hospitality industry includes not just hotels and restaurants, but also casinos,
spas, cruise ships and more. Here are just a few of the careers you could launch
with a hospitality degree.
Casino and Gaming Supervisor

Casinos are a high stakes business. No longer confined to Las Vegas and Atlantic
City, commercial casinos now operate in states, and also tribal casinos are exists.
Casinos have evolved in recent years into hotbeds of entertainment, retail and
cuisine. Many house live performances, concerts, theaters, world class retail
centers and five star restaurants. As a gaming supervisor you’ll be at the center
of it all.
Gaming supervisors are responsible for managing the day-to-day operations
of the casino. This involves planning and organizing events for guests, making
Notes sure there are enough dealers on the floor, handling customer complaints and
ensuring a high level of service and professionalism among casino staff. With a
hospitality degree under your belt, you are primed to enter the exciting field of
casino management.
Hotel Concierge
Concierges are in the business of making people’s dream vacations come true.
Responsible for fulfilling the requests of guests, typical duties of a concierge
include securing hard-to-get theater tickets, making impossible last-minute
reservations or arranging day trips to local hot spots. However, for a good
concierge, the fun is in dealing with the unique requests such as finding an
animal companion for a lonely business traveler or helping plan a romantic
proposal a couple will never forget.
A fixture at luxury hotels across the globe, concierges have a history of
helping travelers since the Middle Ages. Many concierges speak several
languages and are trained to assist people of different cultures. Having a
hospitality degree with a concentration in international tourism will definitely
put anyone wishing to enter this respected profession at the top of the hiring
manager’s list.
Food and Restaurant Critic

While it may seem like a foodie’s dream job, being a food and restaurant critic
involves a lot more than just enjoying a good meal. Food and restaurant critics
are often chosen for their experience and expertise in the restaurant business.
Having a food and hospitality management degree is definitely an asset, because
critics are expected not only to critique the food but also the service, decorum
and quality of an establishment and its kitchen.
Opportunities for food critics exist at newspapers, magazines, on the web
and in books such as the famous Zagat’s guide. However, these opportunities
tend to be limited and competition can be tough. Having a working knowledge
of the food industry coupled with a flair for the written word will help you
land one of these enviable positions.
Tour Director
As a tour director, you will travel the world, sharing your knowledge of local
history and customs with other travelers offering them the vacation of a lifetime.
Working for private tour companies, local resorts or attractions, tour directors
are responsible for traveling with the tour group, managing transportation and
lodging, arranging meals, leading tours and attending optional excursions and
events.
HOTEL MANAGEMENT
Being a tour director involves working with international customs and laws Notes
as well as dealing directly with people from across the world. Having a
hospitality degree or other related certification or training is essential for landing
a job in this field it will give you the knowledge and terminology to make you
an effective guide no matter where you travel.
Event Planner
Want to get paid to party? As an event planner, you can be a part of some of the
most memorable and cherished events in people’s lives. Design lavish weddings,
rock star style bashes or elegant sit downs. Event planners work with clients to
generate the event’s theme, location and budget. They work with vendors to
secure favors, arrange locations and order food.
Job conditions are flexible. You can choose to work at a firm with other
planners or start your own business. A hospitality degree or certificate will
give you the food industry insight and management skills that put you at an
advantage above other planners, most of whom have no formal education in
event planning or hospitality.
Chef Careers
Food is much more than a biological necessity. In the right hands, it’s an art
form meant to be savored. You can’t taste a photograph or smell a symphony
and walking into a museum and touching an original Van Gogh will only bring
you trouble but good food is meant to be consumed and appreciated on many
different levels.
The culinary artists we know as chefs have mastered the medium of food,
producing dishes that can comfort us and remind us of dear old Mom, or
energize and inspire us. A good chef can nourish the body and please the palate,
leaving us satisfied and wanting more at the same time.
Of course, this is no simple feat. Specialized training and dedication are
key ingredients in the recipe for success. An executive chef job involves many
moving parts. The duties of an executive chef may include the following tasks:
 Creating a menu
 Deciding on a theme for a restaurant
 Food preparation
 Managing employees
 Establishing and maintaining contacts with vendors
 Marketing
 Overseeing customer relations
Notes Skills Needed

Sensitive Palate: As much as a visual artist needs a good eye for color and
composition, chefs need well developed senses of taste and smell. The best
chefs recognize subtle nuances in flavors. This ability allows them to explore
bold new flavor combinations and make them work.
Creativity: Truly successful chefs put their own stamp on traditional dishes
and create new combinations. Creativity and a flair for experimentation are
essential traits of top chefs.
Teamwork: A harmonious meal requires cooperation in the kitchen. Whether
you are the executive chef directing the whole process or a line cook focusing
on preparing a specific element of the meal, teamwork is essential. Executive
chefs have to be able to manage workers, delegate responsibility and work
closely with others.
Determination: A chef job offers many rewards. Having a career you’re
passionate about that feeds people is worthwhile and satisfying. However,
aspiring chefs should be prepared to work hard. Chef jobs can require working
on evenings and weekends and long hours on your feet. Restaurant kitchens
are fast-paced and often stressful. Successful chefs have to be dedicated to their
craft in spite of some of the less glamorous aspects of the job.
Organization: Bringing all the elements of a meal together quickly and
elegantly takes preparation and organization. The ability to plan ahead will
help you keep your cool in a high pressure kitchen environment.
BASIC CONCEPTS OF MANAGEMENT
Notes
Unit I
2 BASIC CONCEPTS OF MANAGEMENT
INTRODUCTION
Management functions need to be handled successfully. A manager can be
successful, if he/she is familiar with what he is managing. One of the writers
has observed,” you have to plan something, you have to organize something,
you have to direct something, when you have to select your staff, you will have
to determine what they will have to know in order to do it. Intimate knowledge
of the subject matter…….is indispensable………effective, intelligent
administration”.-Lewis Mariam.
Henri Fayol, an industrialist, in the early parts of the twenty first century
wrote that the managers perform five functions: planning; organizing,
coordinating, leading and controlling. Study of the management functions will
help him/her realize the breadth of knowledge that will be helpful to him/her,
to manage his/her job.
Luther Gullick has coined the word POSDCORB. Each letter has been
assigned a different connotation. These are explained below:
P–Planning
O–Organizing
S–Staffing
D–Directing
CO–Coordinating
R–Reporting
B–Budgeting
Planning: Organizations exist to achieve the goals. Someone has to define
the goals, the means to achieve the same. The planning function encompasses
defining organizations goals, establishing strategy for achieving the goals and
developing a comprehensive hierarchy of plans to integrate and coordinate the
activities. The manager is to decide what he wants to accomplish. It may be
Notes both short and long term goals for his organization. In order to achieve his/her
objectives he must be able to forecast and manage his/her environment which
may be political, social, economic environment. He also has to manage the
resources people, money, equipments and so on. The ability of the manager to
reach his goals will be contingent on the stated factors. The managers have the
freedom to set their goals. Besides, the managers need to setup subsidiary
objectives. The planning function encompasses budget. Budget is a plan to
expend a given amount of money on each phase of the business. Planning may
be functional and strategic Planning. Functional Planning covers planning of
functional area say marketing .The functional plan is designed to increase
efficiency of the organisation. Strategic Planning is setting up goals for the
organization as a whole and determining what each segment of it should
contribute to the results planned for. Planning cannot be divorced from
Forecasting. The simplest form of forecasting is extrapolation. Extrapolation is
a process of projecting the trends of past into the future. Extrapolation can be
dangerous because it does not take into account of the business cycle or the
contingent factors. This is more useful for long term planning.
Organizing: Manager’s responsibility is to design an organization’s
structure. This function is known as organizing. It includes determining what
tasks are to be done, who is to do, how to group the activities, which reports to
whom, and what decisions are to be made. In organizing the manager decides
what jobs will have to be filled and the duties and responsibilities attached to
each one. Work done by the members is also interrelated; hence some
coordination is required. Coordination in fact is an essential activity of an
organization. Management’s job is to direct and coordinate the persons, in the
organization. This is the leading function. Managers need to motivate the people
in the organization, direct the activities, select the most effective communication
channels, and resolve conflicts among and between members.
Staffing: The manager establishes positions and decides what the people
who hold them must do. He/she must find out the right person for each job.
Organization and staffing are continuous jobs. As an organization grows new
positions need to be created and filled. Staffing cannot be done once for all,
since people are continually leaving, retiring getting fired, and dying. Staffing
activity of a managers’ job includes several functions as recruitment, selection,
transfers and promotions, and training. It begins with workforce design and
includes recruiting, assessment, development, workforce planning and
retention.
1. Staffing recognizes the importance of every single person the individual
worker is the ultimate performer.
2. Recruitment getting applicants for the jobs as they open up. Notes
3. Selection of the best qualified among those who seek the jobs.
4. Transfer generally refers to change in position without a change in
status or pay. Promotion rather implies improvement of both or one
of them.
5. Training: Imparting the requisite skill up gradation training in order
to achieve the goals of the organization.
Direction: Management is sometimes defined as, “Management of people,
not things.” This implies that the manager needs to get other people act,
according to the plan of things. Management of people, direction of those under
him is equally important .Direction includes telling people what to do, ensuring
that they know what is expected of them in each situation and helping them
improve their skills. It is thus to develop a good morale to ensure that the
subordinates give in their best.
Control: To ensure that the activities are going on, it is imperative on the
part of the Manager to monitor the organizations performance
through,”Control”. Thus, Control is a means to determine what progress has
been made towards the achievement of their goals. Control systems are necessary
to prevent anything wrong happening in the organization. The top management
must have some means of checking on what is going on. He must be well aware
of what is happening, so that he can take steps in making necessary changes if
required, to achieve the objectives and the goals of the organization. According
to Gullick, reporting is a means of control. Budget is not only a plan but a means
of control. The management of the above stated functions is sometimes called
“the management cycle”. Thus, a manager begins by setting goals and planning
how to reach them; next he determines how many people are required to achieve
the goals; assign the jobs and help those responsible to do it. Finally through
reports ascertain how well the plan has been worked out and goals
achieved.Thereafter, re-examine the plans in the light of results with a view to
modify them, if required.
Innovation: The manager is required to do more than the five essential
functions as Peter Drucker has written,” cannot be an administrative or even a
policy –making job……..It must be creative rather than an adaptive ask.” Thus,
in other words a manager needs to be an innovator.
Innovation consists of developing new and better ways of doing things.
The manager needs to create new ideas, combine old ideas into new ones and
adapt them to his/her own use. He/she is required to act as a catalyst and
stimulate others to develop and carry out innovations.
Notes Representation: The Manager’s job is representation of him/her on

behalf of the organization in dealing with a number of organizations, civic
bodies, unions, senior citizens forum, financial organizations, suppliers,
and customers. Sometimes manager can fulfill his/her responsibility by merely
being accessible and pleasant. At other times it is a matter of delicate
negotiations.
Besides the above stated concepts of Management, Henry Mintzberg in 1960
identified ten different roles performed by a manager, which can be grouped
as:
 Interpersonal relationships
 Transfer of information and
 Decision making.
 Interpersonal relationship: The managers need to perform activities
which are symbolic and ceremonial in nature. He /she is required to
perform a number of routine duties of a legal or social nature. This is a
figurehead role. The manager has to perform leadership role. This
includes hiring, training, motivating and disciplining employees. The
next role is liaison. In this role the manager is required to maintain a
network of outside contacts that provide information.
 Transfer of information: All managers receives some information from
within and outside the organization. He/She serves as nerve centre
(internal and external) of the organization. Example- Handling all the
mails and contacts. This is categorized as monitor’s role. Managers
also act as a conduit to transmit information to the members of the
organization. This is disseminator role. Additionally the manager
functions as a spokesperson. For instance-Handling of contacts
involving transmission of information to outside.
 Decisional roles: Manager’s role is to initiate and oversee projects
to bring about changes that will improve the organizations role. This
is the entrepreneur role of the manager. The manager is responsible
for initiating corrective measures, when the organization faces
unexpected disturbances or problems. This function of the manager is
termed as disturbance handler. The Manager is responsible for
allocating human, physical and monetary resources. This specific
function of the manager is termed as a resource allocator for instance-
sheduling. Lastly, the manager acts as a negotiator. In this role the
manager discusses and bargains with other units to gain advantage
for his/her own unit.
Nature of Management Notes

The concept of management is universal. The continuous and rapid development
of management principles and their practices in organisations has rapidly
changed the nature of management. The management is being divorced from
ownership because of the complexity in management process. The nature can
be analysed in the context of it being an economic resource, a system of authority,
a class or team, a science or art, and a profession.
Management: An Economic Resource

There are five factors of production, viz., land, labour, capital, management,
and entrepreneur. These various factors are classified as human and non-human
factors in an organisation. In fact, entrepreneur establishes the organisation as
owner, and it is management which transforms these various resources into
productive processes. Peter Drucker has observed that ‘whatever rapid economic
and social development took place after World War II, it occurred as a result of
systematic and purposeful work on developing managers and management.
Development is a matter of human energies rather than of economic wealth,
and the generation of human energies is the task of management. Management
is the mover and development is a consequence. Nowadays, the organisational
activities are so complex that their management requires specially qualified
people. In comparatively smaller organisations, however, the entrepreneurs
themselves discharge managerial responsibilities. In company form of
organisation, the management and ownership is completely separate.
Management as a factor of production can be made efficient by training and
development programmes as other factors are made. However, management
itself is responsible to make other factors land, labour and, capital efficient in
the organisation, as management coordinates various factors of production.
From this point of view, the management is an important factor of
industrialisation, and any country, whose management is not efficient, can
remain backward as it may remain backward in the lack of natural physical
resources. We have seen that inputs of labour, capital, and materials do not by
themselves ensure growth; they require the catalyst of management to maximise
the results. Where the management of resources has been good, the results have
been better than where the management was poor and this is so on the micro
level of firm or the macro level of on economy.
In the early stages of economic development, only two factors capital and
labour were emphasized as capital could be provided by owner of the enterprise,
and land was treated to be an element of capital. Later on, with the industrial
revolution, the factory system was adopted which emphasised the importance
of other factors too. To look after the industrialisation process effectuated by
Notes technological innovation, a new class of persons was needed. Thus, management
as a coordinator of different resources emerged.
Management: A System of Authority

Management is a system of authority. A system can be defined as a set or
assemblage of things connected or interrelated and interdependent so as to
form a complex unity. The authority may be defined as the legal right to
command others to act or not to act in a prescribed manner. Thus, management
is the arrangement of various types of authority. Management as a group of top
level managers. This statement shows the authority of management.
In an organisation, there are two groups of individual’s managers and
managed (operatives). The basic function of manager is to get things done by
‘operatives, and for this purpose, the manager commands the activities of
operatives because he has the authority to do so while operatives do not have
such authority. In management itself, there are various levels as top level, middle
level and lower level or supervisory level. A person at a particular level of
management has certain authority which differs in degree when it is compared
with the authority held by a manager at a different level. Generally, as we move
down in the managerial levels, the degree of authority gets gradually reduced.
This authority enables managers to perform their function of planning,
organising, staffing, directing, and controlling in the organisation. The use of
authority by a manager, however, depends upon his approach to the authority,
his personality factors, subordinates, and situational variables.
Management: A Class, Team or Group

Here we refer the management as individuals or group of individuals occupying
managerial positions and performing managerial functions. We find several
classes of people in the society, example teachers, students, lawyers, etc. In a
similar way, in the industrial sector, there is a managerial group. Generally,
management as a group is classified into three parts-patrimonial or family
management, political management, and professional management.
1. Patrimonial or Family Management. This may be called feudal, dynastic
or proprietary management. This is the oldest management class. In
this system the owners become the managers of the enterprise and
different family members occupy managerial positions. Their relative
positions and status in the organisation are determined by their relative
positions in the family. In such cases, whims, prejudices, and traditions
plays great role in managerial decisions. Managers of the management
team do not owe their allegiance to organisation, but to the head of
family. This system suits the medium and small sized units. It is very Notes
common in India.
2. Political Management. This system is quite frequent in Indian public
sector organisations. These are established by the political party in
power and the party enjoys the right to manage them. The general
policy is decided by the government and top level managers are also
appointed by it. Top level managers appointed in such a way may
comprise politicians and retired civil and military servants. These
appointments are made sometimes on political considerations and
efficiency criterion becomes a secondary one. These people do not add
to efficiency but they hamper the organisational efficiency.
3. Professional Management. Here the management is divorced from
ownership. Owners provide initial financial resources, and well-
qualified and trained managers manage the organisation. In fact, they
are the paid employees and are appointed through selection based on
their professional competence. The people in this system may be
required to go through some formal education and training in the field
of management. However, management being a flexible profession,
sometimes this requirement is not strictly adhered to.
Management: Science or Art

Generally a controversy arises whether the management is a science or art. In
fact, this controversy arises in respect of all subjects under social sciences. It is
said that management is the oldest of arts and the youngest of sciences. This
explains the changing nature of management.
I. Management as a Science. Science is a systematised body of knowledge
pertaining to an area of study and contains some general truth
explaining the past events or phenomena. Science is systematised in
the sense that relationships between variables and ‘limits have been
certained and underlying principles discovered. The observations are
made on the basis of scientific methods which involve determination
of facts through’ these observations of events and verifying the accuracy
of these facts through continues observations. Science has, thus, the
following characteristics.
As such, here again, the management has certain flexibility. Brech has
observed that a systematic body of knowledge underlies the competent practice
of management, hardly anyone today would deny; and much of that knowledge
lies in various fields which are of themselves academic disciplines. The
summation of such parts cannot constitute a new science. What the advocates
really mean is that competence in management necessitates both an adequate
Notes basis of knowledge and a mature scientific approach they do not mean that
management is on all fours with nuclear physics. It can now be concluded on
the basis of the above analysis that management is both a science and an art. It
is a science because it evolves and uses certain principles; it is an art because it
requires continuous practice to get the desired result in the best way. The science
and the art are not mutually exclusive and these two exist almost in every
human function; however, there is only the difference of emphasis. This is true
with management too, though the emphasis differs with respect to time and
place.
Management: A Profession
The world profession has been given a variety of meanings. This may broadly
be used to refer to any occupation by which a person earns livelihood. This is
also used in a restricted sense and all occupations are not included in the
profession. In this context, the clear definition of profession is difficult because
of disagreement regarding the defining characteristics of a profession and
because of the fact that a number or occupations are currently aspiring to or
moving towards professional status. However, the operational definition, of a
profession can be given. It can be defined as an occupation for which specialised
skills and training are required and the use of these skills is not meant for self-
satisfaction, but these are used for the larger interests of the society and the
success of these skills is measured not in terms of money alone. Thus, all
professions are occupations in the sense that they provide means on livelihood;
however, all occupations are not professions because some of them lack certain
characteristics of profession. As indicated earlier, there is no unanimity about
the characteristics of a profession however, on analysing the characteristics of
various professions, some generalisation is possible. Some of these characteristics
are fundamental and rigid, while others are flexible and with the change of
time some more may be added or deleted. There are three angles of looking at
professional in management.
1. Owner-managers claim to be professionals by virtue of their managing
the organisations in which they have stake in risk and return. This is
called as ownership concept.
2. According to practising managers, the professionals are those who are
engaged in the practice of management by virtue of certain assets of
character and valuable experience gained on the job. This is known as
practice concept.
3. According to academics in management field who are neither owners
nor practitioners, but have the gift of organisation and self-
salesmanship, professionals are related with a formal body. Slowly a
selective entry procedure has been established where entry is not by Notes
practice, but by permission of others based on some formal training
and not merely on talent. This is known formal body concept.
None of these concepts may be said to be adequate, hence a more
comprehensive concept is needed. Accordingly, a professional manager is one
who is trained through a prescribed process; and practices the art for which he
has been duly admitted (on the basis of pre-determined eligibility standards) ;
accepted (after being examined and found qualified and allowed with the grant
of license).
He evolved five criteria of judgment for evaluating management a
profession:
(i) knowledge, (ii) competent application, (iii) social responsibility, (iv) self
control, and (v) community action. Following characteristics of management
as a profession:
1. Existence of an organised and systematic knowledge,
2. Formalised methods of acquiring training and experience,
3. Existence of an association with professionalisation as its goal,
4. The formation of ethical codes for guidance of conduct,
5. Charging of fees based on service, but with due regard for the priority
of service over the desire for monetary reward.Now, the analysis of
the existence or absence of these characteristics in management will
show whether management is a profession or not.
Existence of Knowledge: Professionalism emerges from the establishment
of fact that there is a body of knowledge which cannot be skirted around, but
has to be assiduously studied for being a successful manager. A systematic
body of knowledge that can be used for professional development has evolved
during the last five-six decades. The accumulation of knowledge about
management is due to the need to develop a large number of managers.
However, the concept of management is still evolving and continuously new
principles are being established.
Acquiring Knowledge: An individual can enter a profession only after
possessing certain knowledge and skills through formal training. For example,
only law graduates can enter the legal profession. To impart management
education, there are many formal institutes in the world. In India, management
education is being imparted by three Institutes of Management at Ahmedabad,
Calcutta and Bangalore. Nearly thirty universities are also running management
programmes.
Notes Besides, there are many institutions, associations, and organisations running
short-time management programmes. However, the entry to the managerial
cadre in organisations is not limited to management graduates only, though it
can be said that management graduates can put better performance in the
organisation. Nowadays there is an emphasis on taking management graduates
in the managerial cadre because of their availability.
Existence of Representative Body: A representative body of professionals
is needed to regulate and develop the professional activities. This body also
prescribes the criteria for individuals who want to enter the profession. Many
countries have Management Associations. In India, too, there is All-India
Management Association with various local management associations affiliated
to it. The association manages and coordinates researches and other activities
in management areas.
Ethical Standards: For every profession, some ethical standards are provided
and every individual professional is expected to maintain conformity with these
standards. Though there is lack of universally accepted formal ethical standards
for management they are socially responsible and it is their duty to protect the
interests of all parties, owners, labour, suppliers, consumers, government
concerned with organisations. In this respect, they are expected to maintain a
code of conduct. Brech has observed that the tasks, the actions, the procedures,
and the attitudes that constitute the role of a manager seem mundane enough,
but a great deal in the way of economic and social achievement depends on
their sound fulfillment. In total, they add up to the content of the profession of
management the body of knowledge, in terms of principles and of practice,
which stands as the essential foundation of competence in action.
Reasonable Remuneration: Professionals in management, whatever their
way of service to community-as managers, consultants require money to satisfy
their needs; however, their success is not measured in terms of money which
they receive by way of rendering their services to the Society, but the contribution
which they make to the welfare of society. The management’s contribution in
the society by way of integrating various resources into productive units is
very important for the stability of society. This important contribution cannot
be measured in terms of money alone because without their efforts resources
worth millions of rupees may be useless.
Thus, the above discussion shows that management has some characteristics
of profession fully while others exist partially: Management is a comparatively
new field of knowledge and has been developed as a result of rapid
industrialisation. It is increasingly being treated as profession because of the
need for acquiring management skills to solve the complex problems of the
organisations. The management profession does not control entry in the manner Notes
as many of the traditional professions do, but the educational requirements of
the future may well provide a similar consequence. Professional status for
management should not be viewed as a matter of definition or nomenclature.
Any serious attempt to make management scientific or a profession is bound to
lead to the attempt to eliminate those disturbing nuisances, the unpredictability
of business life, its risks, its ups and downs, its wasteful competition, the
irrational choice of the consumer and, in the process, economic freedom and its
ability to grow. The basic elements of professionalisation are important
irrespective of whether they lead to professional status. The development of
managerial skills through formal education or experience is a primary
consideration for management development.
Professional Management in India

Management is a key factor in our development. One of the main reasons of
our unsatisfactory performance in the industrial field is the lack of professional
management. The technology which has been so frequently imported could
not be put to the best possible use in the absence of commensurate professional
management support. In common parlance, Indian management is described
as ‘family management’ with ‘traditional values.
The two distinguished features of family management are:
(i) That both ownership and control of the organisation are in the hands
of the members of a family, and
(ii) That organisational objective is to maximise profits even if it
necessitates exploitation of the weaker sections of the society. It is
accepted that family management is effective in the early stages of
economic development. However, changes in the nature and
dimensions of Indian business demand that ownership and control
should be divorced from each other, if necessary; that management
positions should be held by persons who have professional skills and
adequate training; and that the organisational objectives should be
determined in a broader perspective with the good of society in mind.
To assess the present extent of professionalisation in Indian business, very
few studies have been made. The research is required to go into the extent of
the existing level of professionalisation and suggest steps to bring it about. The
basic characteristics of a profession, as discussed earlier, are found in Indian
management, in varying degrees. Facility for formal education and training in
management, establishment of All India Management Association, divorce of
ownership and management of business, formulation and adoption of
managerial ethics suggest that there is a professional management in India.
Notes Moreover, management is to be judged not by formal qualifications of the

managers. The decisive factor is the extent to which the well recognised
managerial techniques are used in various areas of management. The attitude
of managers towards change and their social responsibility would be relevant.
Thus, following an appropriate and accepted course of action would be true
test of professional management. Judging from this point of view, the Indian
management can be treated as moving towards professionalisation. In public
sector enterprises, managers at various levels presumably hold positions based
on professional competence rather than extraneous considerations, often found
in much private enterprise. Even at the board level the government is fast
succeeding in getting professionals, and by asking the deputationists to choose
between their public sector organisations and civil service assignment. In private
sector, too, professional are entering at various levels. It is a misconception that
owner management and professional management cannot go together. If it were
so, there can be no professional management in owner managed companies,
and, as public sector is not owner managed, it automatically has professional
management. The owners can become professional if they have other aspects
of professionalism.
The above discussion might be a partial story of Indian management as a
profession. Looking at the other side, one finds that there is a lack of professional
management both in public and private sector. One cannot ignore the fact that
many public sector managers at higher levels often greatly borrow the traits of
bureaucracy, just as the top private managers carry a lot of family or business
house traits, even though they have the facade of professionalisation. Many
top public sector managers have worked, lived and imbibed the government
way of working. This seriously comes in the way of the initiative, flexibility,
and innovativeness so essential for public sector enterprises. Similarly, in many
private sector enterprises too, organisational and managerial style has been
retained by the family structure at the peak in the organisational pyramid. In
majority of cases, power is still personalized in a close-knit group tied by familiar
relationships. Even in, areas where the professionals manage to precolate, the
managers are allowed to play only a secondary role because of the limitations
posed by the environment. In a family business you have professional engineers,
accountants ,and marketers, but all decision making is centralised at the top,
with the head of the family, who has no professionalism, but perhaps only
experience and intuition, the decisions are not likely to be as good as that of a
modern professional board. It can be concluded that we are slowly and gradually
moving towards modernisation and professionalisation of management in India,
though there is still a long way to go. This is due to the fact that the entry of
professional managers with academic training in managerial skills into the
Indian managerial scene is rather by compulsion than of choice. The rapid Notes
growth of private sector has been faster than that of their families and the
emergence of public sector gave them a place in the management of industrial
enterprises.
MANAGEMENT PRINCIPLES
Management has been defined as a science, though an inexact science. It means
managerial functions are based on certain principles. Principle is a fundamental
truth which establishes cause and effect relationship of a function and theory is
a systematic grouping of interrelated related principles. The principles of
management have a tremendous impact upon the practice of management in
increasing the efficiency of the organisation.
The need and importance of management principles can be visualised as
follows:
1. To Increase Efficiency: The established principles of management
provide managers guidelines as how they should work in different
situations. These principles increase managerial efficiency. Today, a
management graduate, who has acquired the knowledge of
management principles, definitely puts better efficiency and
effectiveness in the organisation. Though, there is a serious limitation
of management principles, that is, these have to be modified according
to situations as these deal with human beings of diverse nature, these
enable a manager to understand the different situations in a better
way and save him from costly trial and error method.
2. To Crystalise the Nature of Management: Lack of understanding of
management principles makes it difficult to analyse the management
job and to define the exact scope of managerial functions. Thus,
individuals cannot be trained effectively for managerial positions.
3. To Carryon Researches: If in any subject certain fundamental principles
are developed, the scope and limitations defined, these become the
basis for future researches. In the absence of these principles, researches
become difficult and future horizons of knowledge cannot be expanded.
‘It is scarcely too much to say that the most important index of the
state of maturity of science is state of its systematic theory. This includes
the character of the general conceptual scheme in use in the field, the
kinds and degrees of logical integration of the different elements which
make it up, and the ways in which it is actually used in empirical
research. The recent emphasis on management researches has increased
the quantum of knowledge in this field.
Notes 4. To Attain Social Objectives: Management itself is part of the society

and it takes the inputs from the society and gives the output to the
society. Thus, the standard of the society depends upon the quality of
the management. If the management is efficient, the resources of the
society are better utilised thereby giving more satisfaction to the society
and improving the quality of life of people. In this context, management
principles play an important role.
Thus, the understanding of management principles enables managers to
take a more realistic view of organisational problems and their solution.
Management deals with people in the organisation, and the structure and
behaviour of the atom are far less complex than the structure and behaviour of
groups of people. To direct the human behaviour for objective achievement,
some principles are certainly required. Development of management principles
would definitely have an impact on the cultural level of society by increasing
efficiency in the use of human as well as material resources. However, managers,
while using management principles in practice, should check their validity and
applicability before use. For this reason they should be aware of the fundamental
nature of management principles.
Nature of Management Principles

Management is a social science as well as an art. Thus, the principles are not
expected to be thoroughly exact as is the case with physical and natural sciences.
The following basic nature of management principles should be kept in mind:
1. Universality of Principles: Henry Fayol has emphasised that
management principles are universal. These can be applied in different
organisations business, government, hospital, military, etc. The basic
task before every human organisation is to get the desired results
through intergated human efforts. Thus, the principles may be used
with equal utility by the managers of different managerial levels. This
shows the flexibility of a manager to handle different departments of
an organisation or the functions of different organisations. Some
management thinkers, however, are against this universality
2. Dynamic Nature of Principles: Management principles are flexible in
nature and change with the changes in the environment in which an
organization exists. Many of the golden principles of management
which were thought to be very useful at one time are being replaced
by others because of changes in the society. Continuous researches are
being carried on to establish principles in the changing society and no
principles can be regarded as a final truth. Nothing is permanent in
the management.
3. Relative, Not Absolute Principles: Management principles are relative, Notes

not absolute and they should be applied according to the need of the
organisation. Organisations differ in respect of place, time, social
culture, etc. Moreover, individuals working in the same organisation
also differ. Thus, a particular management principle has different
strength in different conditions and the principle should be modified
or replaced by another. As Fayol has indicated principles of
management are flexible, not absolute but must be utilised in the light
of changing and special conditions. Seldom does one have to apply
the same principles twice in identical conditions; allowance must be
made for different changing circumstances.
4. Limitations Due to Human Nature: Management involves the
direction of human behaviour in the organisation. It is also related
with other human factors suppliers, customers, owners, government,
etc. The complex nature of human behaviour has considerably affected
the progress of management principles. The principles of other
disciplines dealing with human nature such as psychology, sociology,
anthropology should also be taken into account.
Universality of Management
As the area of management has increasingly commanded world wide interest
and recognition, the question whether it is a science with universal application
has concerned scholars and practitioners alike. The analysis of the problem will
help management scholars and practitioners to transfer management from one
country to another, if it is universal. If it is otherwise, there would be limit on
the transferability of management from one place to another place.
The concept of universality of management in hotel business suggests that
transmission of managerial knowledge may be undertaken:
(i) by a manager from one department to another department; or
(ii) by people from a other departments coming to study and work in a
more industrialised one and returning to take up jobs in their own
specialized field; or
(iii) through development and training programmes for managers in
different departments. Thus, managerial knowledge may be transferred
from (i) one department to another; (ii) one department to another
within a firm; and (iii) one person to another.
Many management experts suggest that hotel management is universal.
Hotel Management skill is an exportable commodity and indeed it is one of the
important exports of the multinational or international hotel firms. He has found
Notes evidence for export of management skill with reference to as well as in other
departments. The position that hotel management fundamentals, theory and
principles have universal application in every kind of hotel business and at
every level of department.
Arguments for the Universality Concept

Experts subscribing to this concept have forwarded the following arguments:
1. Emphasis on Management Process: It is argued that hotel management
is found in all organised activities. Management functions in every
phase of human activity, and its functions planning, organising,
staffing, directing and controlling are found in any enterprise belonging
to any part of the world. In hotel manager each must, at one time or
another, carry out all the duties characteristic of managers. This is the
principle of universality of managerial functions. This implies that any
principle or theory about a particular managerial function will apply
to all managers, irrespective of their level in the hotel organization.
2. Distinction between Management Fundamentals and Management
Techniques: It has been emphasised that management theory and
principles should be differentiated from management techniques and
approaches because it is a specific technique which varies; managerial
approaches may differ from culture to culture and from department
to department, but management fundamentals are universally
applicable. Those who claim that management philosophy is not
universal take management philosophy as attitudes of managers
towards various elements of organisation.
3. Distinction between Management Fundamentals and Management
Practices: Supporters of universality concept feel that fundamentals
are the same, only practices differ. Management is both science and
art. The most productive art is always based on an understanding of
the science underlying it. Thus, science and art are complementary.
The art of managing or the practice of managing makes use of organized
knowledge (science). Science is truth. However, its practice is subject
to variations under different conditions. That application of hotel
management fundamentals may vary in different departments, not
the fundamentals themselves. The example of hotel to support this
view. An hotel is designed to suites the basic needs of guests and also
is designed for situated on highways. However, the principles and the
theories of physical science used for designing both the types of hotels
remain the same. McParland has argued that principles, concepts, and
skills of hotel management are universal; only practices change.
Managers shift from one department to another, from one hotel Notes
industry to another. Such shifts indicate that there are general skills
and principles of management at work. The knowledge of management
principles and skills in managing enables the executive to learn specific
applications and problems as he applies his to the new setting.
Arguments Against the Universality Concept

Many experts do not agree with the universality concept. Their arguments are
based on the following lines:
1. Objective of Hotel Enterprise: The objective of an enterprise
determines the type of management. Drucker is of the opinion that the
skills, the competence, and the experience of management cannot as
such be transferred and applied to the organisation and running of
other institutions. The basis for his view is that business organisations
exist for economic ends and the management consists of skills, and
techniques or attaining these ends. Since the main objective of a
business profit consistent with security and welfare of the business
differs from that of non business organisation, management can transfer
only analytical and administrative types of skills, abilities, and
experience. Earnest Dale also feels that no individual could be a good
administrator in religious, academic, military, and business institutions
of both communist and democratic countries, because the philosophies
that underlie each are very different and one person could not
encompass so much.
2. Differences in Philosophies: Differences in philosophies of different
hotel enterprises put a limit on the person being a good manager in all
types of hotel enterprises. If the management fundamentals are having
universal applicability, a manager should have the ability to predict
the outcomes of managerial activity irrespective of its setting. Dale
feels that this is contradicted by experience. Many hotel business
experience difficulty when they entering into the services. Even two
hotel business organisations having different philosophy may require
different types of management approaches.
3. Management is Culture Bound: The applicability of hotel management
principles may be limited to a particular situation of culture. Many
studies, quoted earlier in this section, confirm this view. Oberg feels
that if the ground rules under which the manager operates are different
in different departments it is useless to search for a common set of
strategies of management. Farmer and Richman have the same
arguments. They feel that if a hotel enterprise has a strong traditional,
Notes religious, and cultural bias towards non-scientific behaviour, it will be

difficult to introduce modern management methods, ‘which are based
on the same type of predictive and the rational view of the other hotel
industry as are the more purely technical devices. The arguments for
and against universality concept may be analysed to arrive at a
particular conclusion. This conclusion is important because hotel
industry can import managerial know how and principles developed
by the advanced hotel enterprise if they are universal. If these
arguments are analysed, the analysis will give us the result that there
are management principles which have certain universal truth,
however, their practices may differ from department to department
or from organisation to organisation. Whatever the organisation we
take, whatever the culture we take, whatever the philosophy we take,
in all such cases we face the problem of allocating scarce resources
time, money, human factors and other forms of wealth among needs
and purposes which are not few . Such allocation requires managerial
skills. Hence, managerial “skills are transferable. If this is not the case,
a manager can be successful in one hotel organisation only. There has
been substantial transfer of management knowledge and skill across
departmental and cultural boundaries not only through educational
efforts, but through the development of international and multinational
firms. This shows the universality of management, though objective,
philosophy, and culture of an hotel organisation may call for a change
in managerial styles.
Management and Administration – A Terminological Conflict

In management literature both management and administration are used
interchangeably. Initially, no distinction in these two terms was made. In 1923,
however, the terminological conflict was first raised by Oliver Sheldon when
he emphasised administration as decision making function and management
as execution function. Afterwards there have been a lot of controversies between
these terms. Some take management and administration as one; others take
these as different.
McFarland thinks that these are synonymous though he has pointed out
minute distinction between these two terms in practice. He states that ‘in
government agencies, administration is preferred over management, although
in recent years the term management has become widely used in government
agencies. Another possible distinction refers to the levels of organisation. In
business, the term administration refers to the activities of the higher levels in
the managerial ranks. Still another distinction related to organizational level is
that administration refers to the determination of major aims and policies, while
management to the carrying out of the operations designed to accomplish the Notes
aims and effectuate the policies. Here again, this distinction is not only widely
followed but it exists. On the analysis of the various views expressed in this
regard, three conclusions can be derived :
1. Management and administration are one,
2. Administration is above management, and
3. Administration is the part of management.
1. Management and Administration are One: There are the authors
Henry Fayol, Koontz and O’Donnell, Allen, Strong, Terry, Newman,
etc., who recognise that management and administration are the same.
Both involve the same functions, principles and objectives. The basic
difference lies in the use of these words in different fields. In public
administration, the use of word administration is more common, while
in the hotel business world the use of management is quite frequent.
According to Newman, administration is the guidance, leadership and
control efforts of a group of individuals towards some common goals’.
Fayol has emphasised the general principles which can be used in all
types of organisations.
While speaking at the second International Congress of Administrative
Science, he has said : All undertakings require planning, organisation,
command, coordination and control and in order to function properly,
all must observe the same general principles. We are no longer
confronted with several administrative sciences, but with one
which can be applied equally well to government and private hotel
firms. Thus, there is no difference between management and
administration.
2. Administration is Above Management: According to the other
approach, management and administration are different. Some authors
notably Oliver Sheldon, W.R. Spriegel, Milward, Lansberg, William
Scholz, and Florence hold the view that administration is above
management and both involve different functions. They emphasise
that administration is related with policy formulation and decision
while management looks after the execution of these policies and
decisions. According to Milward ‘administration is primarily the
process and the agency used to establish the object or purpose which
an undertaking and its staff are to achieve; secondarily, administration
has to plan and to stabilize the broad lines or principles which will
govern action. These broad lines are usually called policies.
Management is the process and agency through which execution of
Notes policy is planned and supervised. Similar view is derived from Spriegel,
Administration is that phase of a business enterprise that concerns
itself with the overall determination of institutional objectives and the
policies necessary to be followed in achieving those objectives,
Management, on the other hand, is an executive function which is
principally concerned with carrying out broad policies laid down by
the administration.
3. Administration is Part of Management: This approach holds that
management is a comprehensive term and administration is its part.
This approach has been given by E. F. L. Brech, According to him, in
hotel management there is the responsibility of planning and
integration of organisational functions in the most effective way.
This responsibility involves
(i) making appropriate programmes and procedures according to plans,
and
(ii) organising, directing and supervising the individuals in the
organisation.
Accordingly management can be divided into three parts:
(i) top management responsible for policy formulation,
(ii) departmental or functional managers responsible for planning,
organising, directing and controlling, and;
(iii) lower management responsible for supervision. Thus, at the top level
administrative functions are more important and as one moves down
the organisation, administrative functions decrease and managerial
functions increase as shown in Fig.1 though total functions are
performed by managers.
Top Management Lower Management

Policy decision
(Administration)
Execution
(Management)
Fig. 1: Administrative and Managerial Functions.
The above discussion fails to give any concrete ideas about the relationship Notes
between management and administration and terminological conflict remains
in existence. If the entire theories, principles, processes and objectives of both
management and administration are analysed, it may be found that both have
the separate set of functions and objectives and hence same theories and
principles. The difference between management and administration can be made
theoretically and conceptually; however, practically there is no difference. The
attempt to draw distinction between business administration and ‘business
management’ is thoroughly misleading and all recent studies have tried to avoid
it as far as practicable. In this text too, both terms have been used synonymously.
EFFECTIVE MANAGEMENT
The basic objective of hotel management functions and techniques is to make
one an effective manager. The organisations require effective managers because
these bear costs for employing them. However, the basic question is: who is an
effective manager? From this point of view, one must identify the various
characteristics of effective managers so that attempts are made to correlate the
various functions of management for achieving effectiveness. Truly speaking,
the concept and criteria of effectiveness are quite debatable points in
management. Effectiveness is not one dimensional concept that can be measured
and predicted from a set of clear cut criteria. However, managerial effectiveness
can be defined mostly in terms of hotel organisational goal achieving behaviour.
The executive’s own behaviour contributes to the achievement of hotel
organisational goals only by its influence on the perceptions, attitudes, and
motives of other people in the organisation and on their subsequent behaviour.
Effectiveness and Efficiency

Often confusion is created between two terms: effectiveness and efficiency,
though both these terms have fairly clear meanings. The term efficiency is used
in engineering way and it refers to the relationship between input and output.
Thus, efficiency denotes how much inputs have been used to produce certain
amount of outputs, Generally this is also taken as effectiveness. This can be
true only when outputs meet the objectives for which these are meant; for
example, if we take two chefs both producing twenty dishes in a day with
specified quality and with out wastage we can say both are equally effective. In
this case both are using same amount of inputs for the same amount of outputs,
and outputs conform to the objectives. However, the situation would be different
if the first chef produces twenty items in a day with out wastage and the second
chef produces 40 items in a day but with high level of wastage and poor quality.
In this case, technically speaking, the second chef is more efficient but the first
chef is more effective though producing at lower rate. Similar is the case with
Notes managerial effectiveness, though a manager’s productivity is unlikely to be

measured so precisely.
Effective Manager
An effective manager is one who is positive in his personality, that is, what
type of person he is. His managerial process, and results of his managerial
process, although all these are interdependent.
1. The Person: The basic question in this context is what types of persons
are most likely to become effective managers, and what types fail?
There are various such studies to suggest the possible personal qualities
of a successful manager. Jurgensen has described the following,
characteristics of a successful manager:
Most descriptive of Least descriptive of
effective manager effective manager
Decisive Amiable
Aggressive Conforming
Self-starting Neat
Productivity Reserved
Well-informed Agreeable
Determined Conservative
Energetic Kindly
Creative Mannerly
Intelligent Cheerful
Responsible Formal
Enterprising Courteous
Clear-thinking Modest
The above descriptions suggest that the various qualities contribute to the
effectiveness directly and hence important. However, least descriptive qualities
are also necessary because these may contribute indirectly to the effectiveness.
2. The Process: Managerial effectiveness depends upon the managerial
process involved in managing the affairs of the organisation. In this
category, there is a long list, because it is not just possible to specify
here the behaviour of manager as related to his various functions.
However, the following are some of the important behaviours of
effective managers:
(i) They manage work instead of people.
(ii) They plan and organise effectively. Notes

(iii) They set goal realistically.
(iv) They derive decision by group consensus but accept
responsibility for them.
(v) They delegate frequently and effectively.
(vi) They rely on others for help in solving problems.
(vii) They communicate effectively.
(viii) They are stimilus to action.
(ix) They coordinate effectively.
(x) They co-operate with others.
(xi) They show consistent and dependable behaviour.
(xii) They win gracefully.
(xiii) They express hostility tactfully.
3. The Results: Effective managers and effective managing will lead
inevitably to good things, that is, the achievement of goals for which
they are working in the organisation. Thus, what will be the outcome
depends upon the type of organisations they are working for. There
may be some conflict about the organisational goals and their
measurement criteria, but here it is sufficient to say that managerial
actions and behaviours must contribute to the realisation of
organisational goals.
Notes
Unit II
EVOLUTION OF MANAGEMENT
3 THEORIES
INTRODUCTION
Human beings are, by nature, gregarious, and community or group life has
been one of the earliest and most enduring features of human existence on this
earth. This natural inclination for living and working in association underlines
the prevalence of a variety of human groupings, such as family, clan, community,
friendship group, organisation, etc. The social group is not merely a number of
individuals connected at random, but it is a group of individuals who are
interrelated. They are bound together in a network of relatively stable social
relationships. Thus, our society is organisational in nature, with large and
complex organisations increasingly dominating every sphere of human activity
in almost all countries of the world, irrespective of ideological or other
differences. Organisations, as such, have become one of the crucial factors
affecting the quality of life in contemporary society. Thus, a society depends on
what organisations offer. An organisation needs a system of relationships among
functions; it needs stability, continuity, and predictability in its internal activities
and external contacts. It needs harmonious relationships among people and
processes which make it up. Thus, an organisation has to be free, relatively,
from destructive tendencies which may be caused by divergent interests. A
foundation for meeting these needs rests on organisational studies, commonly
referred to as organisation theory.
CONCEPT OF ORGANISATION THEORY

The word theory and its meaning is derived from Greek word Qewpix, meaning
theoria, that is looking at, viewing, or contemplation. Thus, theory is a systematic
grouping of interrelated principles, Principles are fundamental truths, or what
are believed to be truths at a given time, explaining relationships between two
or more variables. Thus, theory explains essentially the relationships between
independent and dependent variables. Rudner defines theory as a
Systematically related set of statements, including some law like generalisation
that is empirically testable and the sort of systematic relatedness is deductive
EVOLUTION OF MANAGEMENT THEORIES
relatedness. Organisation theory may be defined as the study of structure, Notes

functioning, and performance of organisations and the behaviour of groups
and individuals within them. Tosi has defined organization theory as “... a set
of interrelated constructs (concepts), definitions, and propositions that present
a systematic view of behaviour of individuals, groups, and subgroups interacting
in some relatively patterned sequence of activity, the intent of which is goal-
directed.
USES OF ORGANISATION THEORY

The basic objective of a theory is to explain and predict. Organisation theory
focuses its attention on that special category of social or human grouping that
is designed as an organisation. It seeks to analyse inner processes of this
collectivity with a view to discovering the important variables governing
organisation behaviour and the way each of them, and even more importantly,
their actual interactions, affects this human behaviour in the organisational
setting. Since organisation is an open system, the wider environmental aspect
of this behaviour is also included within its ambit. The objective of all this study
and analysis is to furnish a general frame of reference, taking into account both
the internal atmosphere and the external environment, for understanding and
explaining behaviour patterns in organisations, and for providing scientific basis
for managerial actions concerned with predicting, controlling, and influencing
these behaviours, with a view to improving organisational effectiveness. The
theory, thus, is intended to provide the ground for management activity in a
number of significant areas of organisational behaviour.
Prediction of organisational behaviour is extremely important for both
researchers and practitioners. It can provide an opportunity to a researcher to
test his ideas about organisation and to improve further his theories. To the
practitioners, it provides guidelines for future course of action to influence the
behaviour of individuals in the organisation. Dill has emphasised this ,
explanatory and predictive role of organisation theory. He states that the
replication of studies which have found their way into some theoretical
structures. In a few areas we have done replications with highly beneficial
results. The early experiments on participative management draw pragmatic
attention because of their apparently split demonstration of the immediate
practical benefits of participation. Yet in each case, elaboration of the original
experiment has found that the relationships which they first hypothesise
between participation, satisfaction, and productivity do not hold up. As a result,
we are reopening many old questions to establish more clearly the conditions
under which these methods will and will not work.
Notes Theory should also serve as the basis for research. If in any subject, certain
fundamental principles are developed, the scope and limitations are defined,
these become the basis for future researches. In the absence of these principles,
researches become difficult and future horizon of knowledge cannot be
expanded. The recent emphasis on researches in organisation theory has
increased the quantum of knowledge in this field. Rigby emphasises the role of
theory in research as such, ‘Theory, including principles and laws, does not
provide information on the state of the world, but only on the nature of the
world. Theory will suggest how he can proceed to study the state of the world.
The applied researcher is primarily interested in the state of the world. It
provides a set of concepts and information on the relationship among concepts.
Applied research based on theory is in strong constrast to problem solving
research based on nothing than simple trial and error or uncritical imitation.
The role that theory can play in aiding applied research may seem obvious, but
is frequently ignored in applied research.
The various theories make the situation more confusing in perceiving
correctly the basic nature of organisations for (i) analysing and understanding
of their functioning; and (ii) identifying and providing solutions of the problems.
involved therein Notwithstanding this, the various theories can be grouped
into three broad categories for analysing the nature of organisation. These are:
classical, neoclassical and modern, theories. This classification is based on the
nature of organisations as perceived by various people engaged in the
development of knowledge in the field of organisation theory. Each of these
categories represents a legitimate point of departure for enquiry; each has a
different set of biases and value judgments which affect the manner in which
the theory is developed, yet, each focuses on organised behaviour.
CLASSICAL ORGANISATION THEORY

The classical writers have viewed organisation as a machine and human beings
as different components of that machine. Their approach has focused on input-
output mediators and given less attention to constraining and facilitating factors
in the external environment. The writers have dealt human motivation only in
most rudimentary manner. According to classical approach, where organisation
is treated as machine, the efficiency of the organisation can be increased by
making each individual efficient in it. The emphasis is more on specialisation
of performance and coordination of various activities. The term classical in
English language means something traditionally accepted or long established.
However, it should be made explicit, here, that classical label does not mean
that views are static and time bound; many of their views still hold good today.
Haire has identified the chief characteristics of classical theory as follows:
1. Classical organisation theory is built on an accounting model. Notes

2. It maximises neatness and control.
3. It puts special emphasis on error and particularly on the detection of
error and its correction after it has happened.
4. This approach to the organisation is the classical embodiment of the
extra pair of hands concept.
5. In designing the jobs and in picking these extra pairs of hands, classical
organisation theory assumes man to be relatively homogeneous and
relatively unmodifiable.
6. Classical organisation theory’s another tenet is that the stability of the
employees stability in the sense of minimising change within the
employees, is a goal.
7. Classical organisation theory is in its essential character centralised.
8. The integration of the system is achieved through the authority and
control of the central mechanism.
In fact among classical writers, few emphasised efficiency of lower levels of
organisations, while many others emphasised efficiency at higher levels. As
such; classical theory has given two streams scientific management and
administrative management. Scientific management stream of organisation
theory has investigated the effective use of human beings in industrial
organisations and studied primarily the use of human beings as adjuncts to
machines in the performance of routine tasks. The area of human behaviour in
organisations investigated by the scientific management theorists is quite narrow
and the theories of human behaviour in this approach encompass primarily
physiological variables. As such, this theory is also referred to as ‘machine
theory’ or ‘physiological organisation theory.
The scientific management group has been most concerned with the kind
of tasks that are performed on the production floor or at the operative levels.
These tasks are quite different from other tasks in the organisations. First, they
are largely repetitive so that the daily activity of an individual worker can be
divided into a large number of cyclical repetitions of essentially the same, or
closely related, activities. Secondly, these tasks do not require complex problem
solving activity by the workers who handle them. Thus, more attention is
required towards the standardisation of working methods. This is what scientific
management group has done. The scientific management group was primarily
concerned with problems at the operative level and did not emphasise
managerial organisation and process. It was Henry Fayol who for the first time
studied the functions and principles of management in a systematic manner.
Notable contributions came from Gullick, Oliver Sheldon, Moonev and Reiley,
Urwick, Weber and many others. These theorists have viewed the central
Notes problem as being one where there must be identification of tasks necessary for
achieving the general purpose of the organization and of the grouping or
departmentation to take place to fulfil those functions most effectively. As such,
this approach is referred to as ‘departmentation or structural theory of
organisation.’ The similarity between scientific management and administrative
management theories is found in the context that both treat organisation as a
closed system, however, there are differences between the two. March and Simon
observe that they (scientific management and administrative management
theories) share, particularly in their more formal versions, a preoccupation with
the simpler neurophysiological properties of humans and the simpler kinds of
tasks that are handled in organisations. However, the administrative
management theorists tended to carry their analysis, at least at the level of
wisdom and insight, beyond the boundaries set by their formal models. The
main features of administrative management theorists can be analysed under
four broad categories: division of work, departmentalisation, coordination and
human behaviour in the organisation. These are known as pillars of classical
organisation theory.
1. Division of Work: The division of work implies that work must be
divided to obtain a clear cut specialisation with a view to improving
the performance of the organisation. The division of labour as described
by Adam Smith in his Wealth of Nations was the basic ingredient of
division of work in this approach. The approach rests firmly on the
assumptions that the more a particular job is broken down into its
simplest component parts the more specialised a worker can become
in carrying out his part of the job. The more specialised a worker
becomes in fulfilling his particular job the more efficient the whole
organisation will be. For division of work it is necessary to identify the
work to be accomplished. Fayol has identified six such functions:
technical, commercial, financial, security, accounting and managerial.
However, out of these, only first five are horizontal functional
differentials. Division of work is involved with differentiating the tasks
necessary to accomplish an objective. Each differentiated task can be
handled separately either by different individuals or the same
individual at different times. The process can be repeated several times
and the differentiated tasks at one level are divided into subtasks at
the next.
2. Departmentation: Division of work is followed by its assignment to
the individuals responsible for its performance. Though problems of
assignment of jobs among individuals have received attention from
mathematicians in terms of optimum assignment, administrative
theorists have viewed this problem differently. They are concerned
primarily with the way in which the work is assigned to the individuals Notes
so that their specialisation can be used effectively. Putting it in another
way, the problem is to find out the ways in which to group the tasks
into individual jobs, to group into individual administrative units, to
group units into larger units, and finally to establish the departments
at the top level so that costs involved in carrying out these
organisational work are minimum.
Gullick and Urwick have suggested five alternative bases for grouping
of work: purpose, process, clientele, place, and time. Most of other
contributors who have studied this problem agree with this except
with substitution of product for purpose.
3. Coordination: Coordination is the orderly arrangement of group effort
to provide unity of action in pursuit of common purpose. Each
individual in the organisation is related with others and his functions
affect others. Thus, all persons in the organisation contribute to the
organisational efficiency and this efficiency will be maximum when
each individual’s efficiency is maximised and integrated. If this is not
integrated, the efficiency of some individuals may be counter-
productive. According to administrative theorists, in its formalised
model of the departmentalisation, problems of coordination are
eliminated because whole set of activities to be performed is decided
in advance and once these activities are assigned to organisational units
or individuals, the problem is solved. Gullick and Urwick indicate that
‘the advantages of organising by purpose are three: it makes more
certain the accomplishment of any given broad purpose or projected
by bringing whole job under a single director with immediate control
of all experts, agencies and services which are required in the
performance of the work. No one can interfere. The director does not
have to wait for others, or negotiate for their help and co-operation;
nor appeal to the chief executive to untangle a conflict. He can devote
all his energies to getting on with the job. Thus, the idea is self-
containment. However, many of the classical writers view coordination
as a significant problem. This contradiction exists because of the
differences in the formal model and real world situation. In the formal
model, the activities may be well defined in advance and these may be
classified to the ultimate level of specialisation but the occasion for the
performance of these activities may not be determined in advance,
rather, it will be determined by environmental stimuli-instruction,
information, etc. As such, behaviour in the organisation is not
determined in advance and once for all. The routinised organisation
Notes may be in static way in terms of the types of activities but it is quite
different from describing the actual set of activities with the time factor
attached with it. March and Simon have identified three factors for
this phenomenon: (i) the times of occurrence of activities may be
conditional on events external to the organization or events internal to
the organisation, (ii) the appropriateness of a particular activity may
be conditional on what other activities being performed in various parts
of the organisation; and (iii) any activity elaborated in response to one
particular function or goal may have consequences for other function
or goal. The administrative theorists have constructed the organisation
model that does not take into account such contingent character of the
activities.
4. Human Behaviour in Organisation: The theorists take human beings
in the organization as an inert instrument performing the tasks assigned
to them. Further, there is a tendency to view personnel as given rather
than as a variable in the organisation. Barring few exceptions, they
have ignored the socio-psychological and motivational aspects of
human behaviour. As a result, many of the observations made about
the physiological organisation theory also apply here. The employees
put maximum work if they are satisfied monetarily; as such, the
remuneration and methods of payment should be fair and provide
maximum satisfaction to employees and employers. Thus,
physiological satisfaction is the basis of work performance and
efficiency. Further, the set of persons functioning in the organisation
is an initial condition rather than a variable. It has been emphasised
that there should be stability of tenure of personnel. The stability of
tenure is essential to get an employee accustomed to new work and
succeeding in doing it well. Unnecessary turnover is both the cause
and effect of bad management. Thus, this theory suffers like the
previous theory in forecasting and controlling the human behaviour
in the organisation. Moreover, since the personnel are variable in any
organisation because organisation, by definition itself, has provision
for substitution of personnel and recombination by their transfer and
promotion, the assumption of fixed personnel may be removed even
in dealing with assignment problem.
Classical Principles of Organization

The classical organisation theorists have given some principles of organisations
which they claim as ‘fundamental’, ‘essential’, ‘inevitable’, and, ‘universal’.
Though there is some divergence among writers on these principles,
considerable degree of unanimity exists. The major principles are: span of Notes
control, unity of command, unity of direction, scalar chain communication, and
authority and responsibility. Mooney has specified five principles of
organisation. These are :perpendicular coordination, horizontal coordination,
leadership, delegation, and authority. Some of these principles are still applied
in organisations.
Appraisal of Classical Theory

The classical organisation theory physiological theory combined with
administrative management theory has attracted numerous criticisms,
particularly from neo classical organisation theorists. Such criticisms have been
leveled against the theory as a whole or against particular principles thereof.
Criticisms of Whole Theory

According to neo classical thinkers, the classical organisation theory suffers
from various limitations. These limitations have been summarised by March
and Simon as follows:
(i) The motivational assumptions underlying the classical theory are
incomplete and consequently inaccurate.
(ii) There is little appreciation of the role of intraorganisational conflict of
interest in defining limits of organisational behaviour.
(iii) The constraints placed on the, human being by his limitations as a
complex information processing system are given little consideration.
(iv) Little attention is given to the role of cognition in identification and
classification as well as in decision.
(v) The phenomenon of programme elaboration receives little emphasis.
Similar criticisms have been offered by others too, either of the total theory
as such or some principles therein. For example, Bennis suggests that the focus
of classical theory is on ‘organisation without people’. Similarly, Katz and Kahn
feel that this theory is in adequate in dealing with complexities of organisational
structure and functioning. The various criticisms are based on the inadequacy
of the theory in explaining the organisational behaviour fully. If we integrate
the various criticisms of classical organisation theory, the following conclusions
emerge;
1. Close Systems Assumption: Classical theorists have viewed an
organisation as a closed system. A closed system is one that has no
environment and hence no interaction with outside world. However,
this close system assumption about the organisation is unrealistic. Thus,
the model fails to consider many of the environmental influences upon
the organisation as well as many important internal aspects.
Notes Simplifying assumptions have been made in order to reduce

uncertainty, a process which often leads to an incomplete view of actual
organisational situations.
2. Static View of Organisation: Classical theory takes a rigid and static
view of the organisation, although it is a dynamic phenomenon which’
suggests that organisational patterns are determined through constant
adjustments. The adjustments are necessary keeping in view the
requirements of organisational environment and its various internal
parts. Thus, the best organisational pattern is one which meets its
external and internal requirements and these requirements are
dynamic, ever changing.
3. Unrealistic Assumptions about Human Behaviour: A major criticism
of the classical theory concerns with unrealistic assumption about
human behaviour. Classical theorists lack sensitivity to the behavioural
dimensions of an organisation and make over simplified and
mechanistic assumption for the smooth runnning of organisations
ignoring the extreme complexity of human behaviour. They take
human beings in the organisation as an inert instrument performing
the tasks assigned to them. Further, there is a tendency to view
personnel as given rather than as a variable in the organisation. Thus,
they have ignored the social psychological and motivational aspects
of human behaviour. Accordingly, the treatment of human beings in
the organisation on the pattern of classical assumptions may lead to
frustration, conflict, and failure.
Criticisms of Principles
A major contribution of classical theorists is the formulation of various principles
of organisation. Though various writers have their own views on these principles
and there is a great amount of difference in these principles, they have
emphasised that these principles are universally applicable. In fact, this was so
until researches on these principles disclosed otherwise. The main criticisms of
classical principles are as follows:
1. Lack of Empirical Research: The various classical concepts and
principles written by practitioners in management are based only upon
personal experience and limited observation. The principles have not
stood the test of rigorous empirical research using scientific methods.
Moreover, it is not clear whether principles are action
recommendations, or definitions. A principle establishes cause and
effect relationship of a function that is observed to be present in an
organisation. From this point of view, it becomes necessary to define
some independent specifications of what is meant by an organisation
so that the principles do not become simply a part of the definition of Notes
an organisation. Since, this has not been done with any consistency,
these principles become empirically vacuous. March and Simon
observe that, perhaps, the most crucial failure of administrative
management theory is that it does not conform with practice. The theory
tends to dissolve when put into testable form. Thus, not a single
principle is applicable to all organisational situations and sometimes
one contradicts each other.
2. Lack of Universality: Classical theorists, particularly administrative
management theorists, have suggested that various principles of
organisation have universal application. This suggests that the same
principles can be applied in (i) different organisations, (ii) different
management levels of the same organisation, and (iii) different
functions of the same organisation. Empirical researches, however,
suggest that there is not even a single principle which is applicable in
all these circumstances. Further many of the principles actually are
internally contradictory. For example, principle of specialisation is
frequently in conflict with the principle of unity of command. Thus,
following fundamental classical principles have been questioned and
either they are not applicable or applicable without much benefit:
(i) Hierarchical Structure: According to classical theory, hierarchical
structure is the basic premise of authority relationships in the
organisations. Hierarchical structure refers to arrangement of
individuals in superior subordinate relationships in an
organization. There is a major conflict between the institution of
hierarchy based upon position within the organisation and the
growing importance of technological specialisation with authority
of knowledge. Thus, in a complex organisation, hierarchical
structure is greatly modified.
(ii) Unity of Command: Classical theory suggests that each person
should have only one superior however, the trend is changing
and organisation member receive some sort of supervision from
other members in the organisation such as staff personnel. The
organizations formally provide such supervision procedure and
the people, instead of working under unity of command, work
under multiple commands.
(iii) Span of control: The classical approach to the span of management
has dealt with generalisations embodying specific number of
subordinates for an effective span. The theory suggests a narrow
Notes span of management and prescribes a specific number of

subordinates under the direct supervision of one manager.
However, the operational approach suggests that this is not so
and a wider span of management is far better for organisational
functioning.
The various criticisms of classical organisation theory should not lead one
to feel that this does not offer guidance for managerial actions in the
organisations. In fact, many of the classical principles are still applied
successfully in many organisations. This shows that classical theory has some
validity, if not much, in designing an organisation. Scott observes that, ‘it would
not be fair to say that the classical school is unaware of the day to day
administrative problems of the organisation. Classical organisation theory has
relevant insights into the nature of organisation, but the value of this theory is
limited by its narrow concentration on the formal anatomy of organisation.
NEOCLASSICAL ORGANISATION THEORY

The classical organisation theory which focused attention on the physiological
and mechanical variables of organisational functioning was tested in the field
to increase the efficiency of the organisations. Surprisingly, positive aspects of
these variables could not evoke positive response in work behaviour and
researchers tried to investigate into the reasons for human behaviour at work.
They discovered that the real cause of human behaviour is somewhat more
than mere physiological variables. These findings generated a new phenomenon
about the organisational functioning and focused attention on the human beings
in organisations. These exercises, since departed from the earlier approach, were
given new name. Such an approach is referred to as ‘behavioural theory of
organisation’, ‘human view of organisation’, or ‘human relations approach in
organisation’.
The neo classical theory, born out of the reactions to classical approach, has
attracted lot of literature during the last four-five decades. The essence of
behavioural approach is contained in two points:
(i) organisational situation should be viewed in social as well as in
economic and technical terms; and
(ii) the social process of group behaviour can be understood in terms of
clinical method analogous to the doctor’s diagnosis of human organism.
The behavioural approach emphasises on the task of complementary for
some of the deficiencies in classical doctrine. Though the behavioural approach
takes the postulates of classical school regarding the pillars of organisation as
given, these postulates are regarded as modified by people acting independently
or within the context of the formal organisation. Thus, it views organization as
a combination of both formal and informal forms of organisation. The latter Notes
form was missing in classical approach. Another contribution of behavioural
approach is the introduction of behavioural science in analysing the nature of
organisation. Through the use of this science, behavioural writers have
demonstrated how the pillars of classical doctrines division of labour,
specialisation structure, and scalar and functional processes are affected and
modified by human actions. The main propositions of neo classical organisation
theory are as follows:
1. The organisation in general is a social system composed of numerous
interacting parts.
2. The social environments on the job affect people and are also affected
by them and not by management alone.
3. In the formal organisation, informal organisation also exists and it
affects and is affected by formal organisation.
4. A conflict between organisational and individual goals often exists
which increases the importance of integration between these two.
5. Man is interdependent and his behaviour can be predicted in terms of
social factors at work.
6. Man is diversely motivated, and socio psychological factors are
important.
7. Man’s approach is not always rational. Often, he behaves non-logically
in terms of the rewards which he seeks from the work.
8. Communication is necessary as it carries information to the functioning
of the organisation and the feeling and sentiments of the people who
work in it.
9. Team-work is essential for co-operation and sound organisational
functioning.
Neo Classical Theory and Organisational Design

Various findings of the neo classical theory lead to the organisational design in
the following way. It can be seen that neo classical theory offers modifications
over the classical structures.
1. Flat Structure: Neo classical organisation theory suggests flat structure
as against the tall structures suggested by classical theory. Flat and
tall structures are extension of the span of control concept of classical
theory and relate to the vertical structural arrangement for the whole
organisation. There are certain problems in tall structures with narrow
span of control. These are: communication problem, increased
difference between decision makers and implementors, motivation
problem, and expensive. As against this, flat structure with wide span
Notes of control. Flat structure is more suitable for motivating human beings
in the organisation. In this structure, communication chain is shorter.
People prefer flat structure because it is more free of hierarchical
control. They feel more autonomy and develop independent spirit.
Flat structure thus is more in accordance with the assumptions of theory
Y of Mc George.
2. Decentralisation: The neo classical organisation theory suggests
decentralisation in organisation structure. Departmentation, although
mentioned by classical theory, and associated with its concept of
specialisation, is broader and more analytical in neo classical theory
and relates to the horizontal organisation at one level of hierarchy.
Decentralisation is closely related to flat structure as wide span will
result in more horizontal increase in people. The decentralised structure
offers various advantages and is more in accordance with the various
characteristics and propositions of human beings in the organisation,
as identified by the neo classical theorists.
3. Informal Organisation: A noteworthy point of neo classical theory is the
informal organisation. This aspect has been left altogether by classical
theory. In order to understand the organisational functioning fully,
both formal and informal aspects of the organisation must be studied.
Formal organisation structure represents as closely as possible the
deliberate intention of its framers for the purpose of interactions that
are expected to take place among its members. The informal
organisation, on the other hand, is created because of the limitation of
the formal organisation to fulfill the members’ needs, particularly the
psychological ones. Actual organisation behaviour is determined with
interaction of these two.
Appraisal of Neo classical Theory

Neo classical organisation theory, born out of reaction of classical theory, offers
certain improvement over the latter. It has tried to overcome the limitations of
classical theory by modifying it and making it more humanistic. The neo-classists
have introduced behavioural science in the study of organisational functioning
which has helped practicing managers quite a lot.
However, neo classical theory is not free from its shortcomings. Scott
observes that, ‘like classical theory, neo classical theory suffers from
incompetence, a short sighted perspective, and lack of integration among many
facets of human behaviour studied by it.’ The criticisms range from ‘human
relations as a tool for cynical puppeteering of people’ to ‘human relations is no
more than a trifling body of empirical and descriptive information.’ In fact, the
classical theory has been, called bankrupt. The main criticisms of neo classical Notes
theory are as follows:
1. Many of the assumptions of neo classical theory on which it bases its
recommendations for organisational design and functioning are not
true. The assumption that it is always possible to find out a solution
that satisfies everybody is not true. Often there are sharp conflict
interests among various groups in the organisation that are structural
in character and not merely psychological. This aspect has not been
dealt adequately in neo classical theory.
2. The various structures and formats of organisations given by neo-
classists are not applicable in all situations. As will be seen later on
that no particular structure with serve the purposes of all organisations.
Thus, humanistic organisations may have their limited application.
3. Neo classical theory lacks unified approach of organisation theory.
In fact, it is not a theory at all. All that has been done in neo classical theory
is mere modification of classical model. It is basically concerned with
organisational modification rather than organisational transformation. Thus,
neo classists have the same limitations, as the classicists have.
MODERN ORGANISATION THEORY

Modern organisation theory is of recent origin, having developed in early 1960’s.
Modern organisation theory can be understood in two approaches, though both
these approaches are quite interrelated. These are systems approach and
contingency approach.
Modern organisation theory, as a systems approach, is an integrating one
which considers the organisation in its totality based on empirical data. The
study of a system must rely on a method of analysis involving the simultaneous
variations of mutually dependent variables. This is what systems approach of
organisational study offers. Scott observes that ‘the distinctive qualities of
modern organisation theory are its conceptual analytical base, its reliance on
empirical research data and, above all, its integrating nature. These qualities
are framed in a philosophy which accepts that the only meaningful way to
study organisation is to study it as a system.’. This approach takes into account
the different variables both internal and external to the organisation in analysing
the nature of organisation. Modern organisation theory places emphasis on
studying the organisation in its totality as a system. As such, this theory possesses
the conceptual level of organisational analysis much higher than the classical
and neo-classic”, theories. However, it may be emphasised that this theory is in
no way a unified body of thought; each writer and researcher has his own
Notes emphasis when he considers the system. Moreover, the systems approach does
not discard other two approaches completely, rather, it has evolved out of these
by making use of the best which these approaches have offered and
supplementing this with a number of new conceptual developments which
amplify the scope and effectiveness of the managers who have to live in this
constant changing world.
Subsystems in the Organisation

Organisation as a system can better be understood by identifying the various
subsystems within it. The level of systems within an organisation system is
called subsystems. Each subsystem is identified by certain objectives processes,
roles, structures, and norms of conduct. A system is composes, of various
subsystems of lower order and is also a part of a suprasystem. The various
subsystems of the system constitute the mutually dependent parts of the large
system, this is, organisation. These subsystems interact, and through interactions
create new patterns of behaviour that are separate from, but related to, the
pattern specified by original system. Thus, system behaviour is emerged one,
and since different variables are mutually interdependent, the true influence of
altering one aspect of the system cannot be determined by changing it alone.
In an organisation system, there are various ways of classifying subsystems.
Each of the organisation unit can be treated as a subsystem. There is another
way of classifying subsystems which may be found in each functional unit of
the organisation. Accordingly, there are various classifications of subsystems.
For example, Seiler has classified four components in an organisation. These
are human inputs, technological inputs, organisational inputs, and social
structure and norms. From these inputs, he has derived the concept of socio-
technical system which can be applied to the analysis of specific cases in formal
organisation. Kast and Rosenzweig have identified five subsystems. These are
goals and values subsystem, technical subsystem, psychological subsystem,
structural subsystem, and managerial subsystem. Katz and Kahn have identified
five subsystems in an organisation. These are : (i) technical subsystem concerned
with the work that gets done; (ii) supportive subsystem of procurement, disposal,
and institutional relations; (iii) maintenance subsystems for tying people into
their functional roles; (iv) adaptive subsystems concerned with organizational
change; and (v) managerial subsystems for direction, adjudication and control
of the many subsystems and activities of the structure. The functions of major
organisational subsystems are as follows.
Technical Subsystem
The technical subsystem refers to the knowledge required for the performance
of tasks, including the techniques used in the transformation of inputs into
outputs. The objective of every formal organisation has technical requirements, Notes
that is, some work has to be completed to meet the objective. The basic
component of the technical subsystem is a job which is a group of tasks or
activities that can be performed by individuals. The person who is assigned a
job must perform certain duties involving decision making, communication,
and other actions which relate him with other parts of the organisation.
Behaviour in the technical subsystem is governed by rules, procedures, and
policies ‘the purpose of these regulations is to make sure that jobs are performed
as planned and to stabilize behaviour so that organisation members may develop
reasonable expectations of others’ work behaviour in the organisation.
Technical subsystem constitutes formal organisation, that is, the formal
arrangement of the functions. The formal organisation is the interrelation of
jobs which make up the structure, rules, and procedures of the organisation.
The behaviour in the organisation is not explained fully by the technical
subsystem alone because there is a fundamental conflict between individual a
part of the system and the system itself result in from the demands made by the
system and the individual expectancies regarding the work he has to perform.
Thus, his behaviour, as required by the technical subsystem, is modified by the
existence of social subsystem. Unless this fact is taken into account, the
organisation cannot be understood accurately, nor operated at full potential.
Social Subsystem
Every organisation has social subsystem which is composed of individuals and
groups in interactions. Such interactions are commonly known as informal aspect
of the organisation which is the result of the operation of socio-psychological
forces at work place. An interaction exists between an individual and informal
group. This interaction can be interpreted in terms of mutual modification of
expectancies. The informal organisation expects certain norms of behaviour of
its members and the individual has expectancies of psychological satisfaction
he hopes to derive from association with people on the job. Both these
expectancies interact, resulting in the individual modifying his behaviour
according to group norm and the group modifying what it expects of individual
because of the impact of his personality on group norms.
Another group of elements in social subsystem consists of status, role, norm,
value. Status is a position that has been determined as being important in the
interpersonal relationships of the group. Thus, it is a social rank of a person in
comparison with a social system. Role is the pattern of action expected of a
person in his position involving others. Thus, it describes specific form of
behaviour and develops originally from task requirements. Norm is the general
expectation of demand character for all role incumbents of system or subsystems.
Notes Value is the more generalised ideological justification and aspiration. Role, norm,
and value differ both with respect to generality and with respect to the type of
justification mobilised to sanction behaviour. At the level of role behaviour, it
is simply a matter of expectancy about task performance; at the level of norms,
it is a matter of following the legitimate requirements of the system; at the level
of values, it is a matter of realising higher moral demands.
Structural Subsystem
The third organisational subsystem is structure. It refers to the pattern in
which people are interrelated. The structural arrangement is provided so
that all the personnel of the system are interconnected. Since all the personnel
the organisation contribute to the same objective, that is, organisational objective,
they should be interrelated in such a way that each one contributes positively
to the functioning of the others. Howerver, there should be enough
differentiation so that each unit can be identified. At the same time, there
should be enough integration so that each unit works in coordination with
other units in the organisation. The structural arrangement also includes
physical setting of the environment in which the work is performed. This is the
complex man-machine system. Since this interacts with the social, psychological,
and physiological characteristics of the people participating in the system, it
cannot be designed without taking into consideration the various human
characteristics.
Managerial Subsystem
When organisational units are arranged and operated as a system; each
subsystem is viewed as a distinct entity and its relationship or contribution to
the next level in the hierarchical structure is programmed and measured, but
always in consideration of total system. Since organisation is a deliberate and
purposive creation, its management should lead towards the realisation of its
objectives. In managing a system, two processes are involved: operation and
control and review and evaluation. Operation and control refer to conversion
of inputs into outputs. Inputs may be in the form of information, material, and
energy. The inputs are allocated to plan, though it is possible to eliminate parts
of the planning required during operations by designing system with
predetermined input allocation, structuring the system in a specified fashion
and with more predictable results. Operation of the system requires some sort
of control, that is, a mechanism for output or related characteristics, comparing
the measurement with the standard, and activating the unit to adjust inputs to
correct the deficiency. This is necessary to maintain equilibrium of the system
near the ideal point. The next stage, that is, review and evaluation, pertains to
ascertain how well the system has performed. This is different from the control
in the sense that control refers to operational efficiency, while the concept of Notes
review and evaluation is more comprehensive; and always relates the
functioning of the system in relation to its objectives. The review and evaluation
occur at periodic intervals during the life cycle of a system and lead to design
changes in the present system or recommendations for changes which may be
operated in future systems.
SYSTEMS VIEW OF ORGANISATIONAL DESIGN

The systems view of modern organisation theory has many implications to
organisational designing and functioning. Such implications can be utilised in
organisation structure, lateral relationships, and cybernatics.
Modern Organisational Models

Systems approach of modern organisation theory suggests a number of
reformations in old organisational designs and suggests new organisational
models. The theory indicates that simpler solutions provided by classical and
neo classical theories are too merge to solve the complex problems in modern
organisation. Propelled by the urgent requirements of flexibility and adaptability
to change, some new structural models have been suggested. These are project
organisation, matrix organisation, and free form organisation. The basic value
of these structures is that they cope up with the environmental dynamics very
easily.
Lateral Relationships
The most important characteristics of modern structural model’ are their
emphasis on lateral relationships among managers. This is in quite contrast to
the classical model which emphasises vertical relationships, that is, superior
subordinate relationships. The lateral relationship suggests that co-ordination
may be more effectively achieved through the minimization of hierarchical
authority. However, minimisation of hierarchical authority does not mean its
total elimination. This void is filled by the behavioural aspects.
Cybernatics
Cybernatics is a crucial aspect of systems theory. Cybernatics is related to both
communication and control. It integrates the linking processes and generalises
them to a variety of systems. There are three linking processes in an organisation
which interconnect the entire functions of the organisation. The first linking
process is communication through which action is evoked by other parts of the
system. It works as control and coordination mechanism linking the various
decision centres in the organisation so as to integrate their functioning. The
second linking process is balance which refers to an equilibriating mechanism
Notes whereby the various parts of the organisation are maintained in a harmoniously
structured relationship to each other. The third linking process is decision which
refers to the problem solving activity. All these three linking processes work in
such a manner that system moves towards equilibrium and regulation. In this
process, cybernatics plays an important role. Regulation of the system network
by the feedback of information produced in it is the core of cybernatics. The
regulation in the organisation means that some of the energy (output,
information) created by it is tapped to provide a means of control. Thus, the
system’s working can be understood in terms of communication pattern, and
this pattern in turn is a reflection of the decisions required and for which the
information is necessary.
Cybernatics is interested in the problems of regulation and control in
complex, probabilistic, self-regulatory systems. Since it emphasises regulation
in complex system, it has become a model for thinking in regard to the
application of advanced information technology to the control of complex
organisations. This is why organisations using sophisticated management
information systems adopt cybernatic models as an integral part of their mode
of operation.
Contingency Approach of Organisational Design

Systems approach definitely presents a much better understanding of the
organisational and managerial functioning, but it does not provide solution for
all types of organization structures. This highly concentrates on the modern
structural models which may not be suitable for all organisations. Thus, that is
suitable for one organisation may not be suitable for the other. This has better
been explained by contingency approach of organisational design. However, it
should be clearly understood that contingency approach is an extension systems
approach, as discussed earlier.
Factors Influencing Organisation Structure

There are various factors which affect the working of an organisation structure.
These factors may broadly be classified as: environment, technology, size; and
people. An analysis of these factors may show how they might influence
management’s actions in designing an organisation structure. The strength of
each will, of course, vary from instance to instance, but the management which
is quite sensitive to them can better assess the problems of organisational design.
Environment
An organisation is an open system which works within a broader framework of
an environment. The environment includes and conditions, circumstances, and
influences surrounding and affecting the working of total organisation or any
of its internal parts. Thus, environment contains various forces that are dynamic Notes
at different times. Such environmental forces may be different for different
organisations. For a business organisation, social, economic, legal, political,
cultural, and technological environments are important. There are two
characteristics of organisational environment which affect organisational design.
These are environmental complexity and environmental variability.
Environmental complexity refers to the heterogeneity of the environment.
Thus, more diverse the relevant environmental activities and more in number,
the higher is the complexity. For a complex environment, an organisation needs
a design through which more information can be processed to monitor the effect
of complex environment. Such design should be more sensitive to the
environment. Since there are limitations on human memory to process such
information, special unit for monitoring and processing such information is
required. Jurkovich states that the information processing units monitor the
activities of others and report the behavioural patterns to critical decision-
making points that make decisions based on that informatiion and feedback for
further information and advice. Another environmental characteristics that is
important for organisational design is environmental variability. The degree of
variability in the environment affects the organisational functioning by affecting
the task performance. There are various research studies indicating the effect
of environment on organisation structure. Burns and Stalker suggest that
mechanistic structure is more suitable for stable environment and organic
structure is more suitable for dynamic environment. A static structure is
characterised by functional differentiation, clearly specified rules, regulations,
authority and responsibility, and interaction through vertical levels. An organic
structure is just the reverse of the static structure marked by more horizontal
relationships, flexible rules and regulations, and flexible departmentation.
Lawrence and Lorsch have the similar Bindings, that is effective organisational
units operating in stable environment are more highly structured while those
in dynamic environment are less formal. Gilbraith has also substantiated the
above findings on the basis of his data collection from an organisation over two
time periods. He has further suggested that keeping in view the environmental
variability, variation in organisation structure is required to (i) increase the
organisation’s ability to preplan; (ii) increase its flexibility to adapt to its inability
to preplan; and (iii) increase the level of performance required for continued
viability.
Technology
Technology is another factor affecting organisation structure. Technology can
be taken in terms of organisational task, that is, the type of technology the
Notes organisation in adopting. It is a body of a particular type of knowledge and

relates to direct problem solving inventions. The structure of an organisation
and the division of its activities, the network of roles and role relationship have
to relate intrinsically to the task to be done. The technology limits the amount
of discretion which subordinates can be given, hence influences organisation
structure. The technology determines the span of management. For example,
Woodward has found that average span for first line of supervisors was for:
Mass production and assembly line 49 persons
Unit or small batch production 23 persons
Process or continuous production 13 persons
Another element of technology affecting organisation structure is the nature
of work flow. The type of work flow in two types of technology unit and mass
production is quite different. In unit production technology, the specialisation
is parallel. This occurs where work flow is organised to minimise the amount
of coordination required, that is, the work flow among individuals and
departments is minimum. In the case of mass production technology, there is
interdependent specialisation. This occurs where the activities of one individual
or department are closely dependent on other individuals or departments. Under
interdependent specialisation, lateral relationships become more important in
order to obtain effective coordination between specialised groups.
Harvey has found that as the technological specificity increases, so do the
number of specialised subunits, levels of authority, ratio of managers and
supervisors to other personnel, and amount of programme specification.
Similarly, Zwerman has found that (i) classical organisation structure is found
in large batch firms; (ii) the type of technology correlates with organisational
structure; and (iii) ratio of managers and non-managers correlates with
technology.
A more recent study by Peter Blau and his associates, perhaps, provides the
most clear answer of the relationship of technology with organisation structure.
This study consisted of interviews with the chief executives and plant managers
in the manufacturing firms in New Jersey. The researchers ‘sought to determine,
among other things, how technology influenced organisation structure. They
found that there existed curvilinear relationships between technology and
various dimensions of organisation structure like number of levels and span of
management.
Size of the Organisation

Size of the organisation is another factor affecting organisational design, though
it does not have as accurate impact as other two factors have. The concept of
size is used in various ways depending upon the measurement criteria. Thus, Notes
size is measured in terms of number of employees, scale of operations, size of
investment, etc. However, all these variables are positively correlated. Various
studies suggest that size and organisation structure are positively related. In a
study, Dall has found a tendency for larger organisations to be more
decentralised. Pugh and his associates have found that large organisations tend
to have more specialisation, more standardisation, and more formalisation a
compared to small organisations. However, there are many research studies
which suggest that size does not affect organisation structure. For example,
Woodwar found no relationship between size and structure.
Notes
Unit III
HOTEL ADMINISTRATION AND
4 ORGANISATIONS
INTRODUCTION
Management is a process involving activities through which action is initiated
and resources used for achievement of a preset goal. Certain basic guidelines
can be formulated by every manager, to help him in the successful manage-
ment of his establishment. These guidelines are called principles of manage-
ment.
George R. Terry has aptly defined a principle as “a fundamental statement or
truth providing a guide to thought and action.” Principles are thus formulated
on the basis of past experiences of managers in related situations, through a
process of recording mentally or in writing, the effects of decisions taken in the
past. Although no two similar situations can be dealt with in exactly the same
manner, present decisions can be based on the results of past decisions taken
under fairly similar circumstances, depending on the future goals to be achieved.
Thus, principles are not rigid foolproof rules to be applied for binding
solutions to situations, but flexible, practical, consistent, and relevant
guidelines for use in similar sets of situations. Principles, therefore, provide a
hypothesis for predicting future happenings when they are used with the
manager’s own judgement of how and when to apply them.
When managers make decisions that have constantly proved wrong, the
fault does not lie in the management principles, but in the judgements made
when applying them to a particular situation. For example, a catering manager
may follow the principle of serving meals strictly between 12.30 p.m. and 2.30
p.m. every day. But one day there is an unexpected rush of customers, and
prepared meals get finished by 2.00 p.m. How will the manager apply this prin-
ciple? His judgement can lead to the following actions:
(i) Close down service at 2.00 p.m. on that day.
(ii) Quickly use some ready to serve foods held in stock to make up meals
and meet the rush.
HOTEL ADMINISTRATION AND ORGANISATIONS
(iii) Request staff to make sandwiches and arrange for serving eggs to or- Notes
der for the remaining half hour of the service.
In this manner there can be so many different reactions to a particular situ-
ation that it may seem confusing to make a decision. But the principle if ap-
plied with value judgement, helps to make decisions easier and more effective.
A manager who places greater value on the “goodwill of his customers” will
not think twice about keeping the food service open, and providing whatever
he can to his customers. He would not take the risk of turning away even a
single customer. Another might value his own image vis-a-is the staff, in which
case he will treat the situation as a challenge and think of quick preparations,
being guided by the principle of keeping the food service open. A third man-
ager may value good relations with staff and take the opportunity to give them
half-an-hour off, based on his decision that the number of customers between
2.00 p.m. and 2.30 p.m. are not significant enough to go through the exercise of
preparing meals over again and taxing his staff unduly.
In this manner the number of decisions possible can be as many as the value
judgements people have. Principles applied must therefore, be flexible enough
to be used in situations where goals change from time to time, no matter how
far apart in time similar situations may arise. Principles represent the historical
collection of ‘cause and effect’ data obtained from experiences of managers in
various situations, from which practising and potential managers can draw for
making decisions effectively.
There is no fixed number of principles that a manager may adopt as the
basis of developing his establishment, and with individual experiences gained,
very different guidelines for efficient working may be established in different
organisations. Some principles help managers to predict, others provide guide-
lines for decision-making at various levels of an organisation. According to
Koontz, O’Donnel and Weihrich, principles in management “are descriptive or
predictive, and not prescriptive”. In other words, they do not tell a manager
what he should do, but only give him an idea of what may be expected if
certain variables interact in a situation.
Some principles which form basic guidelines to managing catering opera-
tions are: (a) Division of work; (b) Authority and responsibility; (c) Discipline;
(d) Unitary command; (e) Unitary direction; (f) Individual goals subordinate to
establishment goals; (g) Payment of remuneration; (h) Hierarchy; (i) Orderlines;
(j) Loyalty and devotion; (k) Work stability; (l) Initiative; (m) Unity and
(n) Control.
Notes DIVISION OF WORK

The principle of division of work is based on the concept of specialisation, and
since food production activities are each quite distinct in the skills they require,
jobs are generally divided according to abilities of staff. The idea is to make
abilities more efficient by performing each task repeatedly till production speeds
up and staff gain confidence. As the size of the establishment increases the
principle of division of work becomes more applicable as against a small coffee
shop in which a cook and his assistant do most of the kitchen work, and shift to
the service counter when production is over. Similarly , an owner manager, of
a small canteen would probably perform the tasks of the cashier, accounts clerk,
purchasing manager, recruiting staff, catering supervisor and so on. But as the
establishment increases in size and the amount or work increases, the jobs would
be delegated to people having the required abilities to handle them.
The principle of division of work, however, has to be applied with care in
food services because its strict application might lead to staff being unable to
takeover another’s job. For example, if a cook leaves, the assistant would not be
able to produce the food for the customer, to the detriment of the establish-
ment. The principle should only be applied to the extent to which it helps timely
achievement of goals. Since food has to be prepared and served at a particular
time, this principle may be used to ensure speed.
Authority and Responsibility

The principle of authority works in two ways, that which is exercised because
of position in the organisation, through the chain of command formally laid
out, and that which is attributed to person’s intelligence, experience and the
sense of values he holds. Both types of authority complement each other. In
any work situation some of the official authority may be delegated along with
the responsibility a task carries. For example, the task of meal production and
job distribution may be delegated by the catering manager to the head chef in
the kitchen. He then also gets with the delegated job, the responsibility of
ensuring correct portions, standards, quality, customer satisfaction and profits.
Authority may also be dispersed or centralised in principle.
Discipline
The principle of discipline covers punctuality, courtesy, adherance to rules and
regulations, obedience—all of which are essential for smooth functioning of
establishments where group activities are involved and directed towards com-
mon goals.
Unitary Command
Application of the unitary command principle goes a long way in establishing
loyalty to the senior in command and to the organisation. It removes chances of
confusion and improves communications through better understanding of par-
ticular personalities.
Where more than one person is gives different instructions, loyalties get Notes
divided and subordinates take advantage of the conflicting situation to evade
work. The result is that time gets wasted, work gets disorganised and perfor-
mance and efficiency drops.
Unitary Direction
This relates to coordination of activities to achieve a single goal. There can be
no command without direction. Undirected or multidirectional goals only lead
to confusion and unachieved goals.
Individual Goals Subordinate to Establishment Goals

This principle is important for the success of any establishment, because if
every individual starts working to achieve his own goals first and then those of
the establishment, there is no doubt that the organisation will have to close
down. This is because there is no end to individual needs and when one is
satisfied another will crop up, at the cost of the food service.
Payment or Remuneration
All work must be paid for in order to motivate people to do their best. The
methods of payment agreed on should satisfy employees and the organisation,
the terms in principles being, as far as possible, impartial.
Hierarchy
The principle of hierarchy refers to the chain formed by staff placed at different
levels in an organisation, and corresponds to the various levels of management
line, middle, and top management.
Orderliness
This principle is most applicable to catering establishments which are constantly
handling materials, heavy equipment and working with steam and other fuels.
Material orderliness is of outmost importance because perishables need to be
kept for different periods of time in raw, partly prepared and prepared forms.
Orderliness helps to avoid cross contamination, saves time looking for materi-
als and equipment when required and ensures safety for all concerned.
Orderliness with regard to manpower is helpful in placing people in posi-
tions so that “the right man is in the right place at the right time”—a reflection
of good organisation.
Loyalty and Devotion

This principle ensures an atmosphere at work which is bound to generate a
Notes unified attachment to the organisation and its interests and goals, through de-
velopment of harmonious relations at work.
Work Stability
The principle of minimised labour turnover creates a sense of security and con-
fidence in people, leading to better orientation at work. If this principle is not
followed for any reason, and cheap labour is employed haphazardly, the turn-
over increases. This is very costly both in terms of the wage bill and increased
recruitment and administrative costs, besides resulting in poor performance.
Initiative
If staff are allowed to suggest plans which can be followed even partly, it is
highly motivating for them. For example, if a recipe idea offered by an assistant
cook is accepted and prepared by the head cook, initiative develops in the staff.
Based on this principle, staff are often encouraged to participate in making
decisions which affect them. This helps to raise morale, ,develop new ideas and
increase efficiency.
Unity
This principle emphasises the spirit of group work, and helps to establish of
smooth communications, between people, thus developing healthy team spirit.
Control
This principle suggests that limiting the area of control of a leader or supervi-
sor to cover the work of only five or six people having related jobs, brings about
greater efficiency. This is often referred to as “the span of control”.
Thus, principles used with good judgement enhance the chances of reach-
ing set goals, increase understanding between and with people, help in deci-
sion-making and encourage better use of resources. Since all plans of action are
based on decisions made within the value structures of managers, principles
provide the base from where to start towards goals.
FUNCTIONS OF MANAGEMENT
The functions of management for any catering operation, small or large, are
basically the activities which a manger performs to get people to work harmo-
niously towards organisational goals. These functions are distinctly different
from the activities involved in the actual production and service of food in a
catering establishment. There are basically six functions which every manager
performs, as shown in Fig. 1.
MANAGING Notes
Planning
Organising
Directing
Coordinating
Controlling
Evaluating
Fig. 1: Functions of management.
Planning
Planning is the continuous process by which a manager scrutinizes past perfor-
mance, reviews its applicability in the light of environmental changes, internal
and external to the organisation, and forecasts future trends. He then sets the
goals for the establishment and bases its activities towards achieving them.
The planning process is generally initiated by an awareness of an opportunity
or a problem, which can be foreseen in the future. In the light of forecasts the
establishment is scrutinized for its strengths and weaknesses, and new objec-
tives and goals are established on the basis of certain assumptions. These are
also referred to as “planning premises” and include forecasts pertaining to tech-
nological advancement, economic and social factors, governmental controls,
customer attitudes and competitive forces. All planning involves three main
steps:
First—gathering information for chalking out broad policies relating to
building, standards, finances, staff needs, food service methods, type and num-
ber of customers desired. In short, any information for making a workable
scheme.
Second—actually developing a blueprint of the structure, arrangement of
spaces and activity details that can be conveniently translated into action from
the information collected.
Third—setting goals or targets to be achieved in a predetermined period of
time. The goals must be related to a fairly accurate forecast of future events,
since they cannot be based on absolute certainty.
Planning is thus a mental exercise, the results of which are later transcribed
on paper for reference as the activities proceed. It is also a continuous process
Notes taking place at all levels of management, helping the activities of the establish-
ment to process as realistically as possible towards goals in constantly chang-
ing environments.
Catering establishments differ from other organisations basically in the
type of goods and services they offer. Food being perishable in nature, and
customers temperamental in their attitudes towards food, it becomes impor-
tant for catering managers to set goals for a relatively short period of time. This
usually covers six months to a year in terms of food production goals. But,
goals concerning the type of facility to be offered can be set for longer periods.
This is because it is not practical to take up restructuring of premises or chang-
ing the type of equipment frequently, as they both require high investment and
in any case have longer life spans. The planning for building, equipment, etc. is
therefore done for five, then or even fifteen years.
Goal setting is fundamental to any achievement. Any goal set must be clear
to the planner as well as to all those who would be involved in the activities for
achieving it. This helps people to know ‘why’ they are doing ‘what’ and feel a
sense of achievement at the end. Work then becomes purposeful, creative, or-
derly, productive, cost effective and satisfying for all involved. Apart from
benefits to the organisation, people benefit too, through better relations with
each other, economically through bonuses, personal development by acquiring
skills and experience and a sense of belonging to the organisation.
Goals in any catering establishment to be set along a continuum as indi-
cated in Fig. 2 beginning from short-to-long-term goals.
SHORT-TERM MEDIUM-TERM LONG-TERM
Now 1 to 5 years 5 to 10 to 15 Years
Plan number of Gross profit margins Production targets
customers Purchase procedures Capital investment
Service patterns Equipment needs Labour policy
Equipment Maintenance Staff training
Staff duties Customer staff relations Diversification
Menus Financial statements Research Market
* Menus extension — Operations
* * Profits
* * *
* * *
* * *
* * *
Fig. 2: Goal setting in an establishment.

It will be observed from Fig. 2, that for achievement of goals set at various Notes
points in time different skills are involved, starting from the acquisition, pro-
duction and service of food to long-term policy-making for profitability. These
reflect the different staff levels required in a catering establishment for perfor-
mance of various jobs. As one travels to the right of the goal continuum the
amount of mental effort required in planning, and the risks required to be taken
in making decisions for the future, increase. This is because it is more difficult
to predict changes that may occur in the environment, in say about five or ten
years time, as compared to those in six months or a year. It stands to reason
therefore that every goal set needs to be reviewed in the light of changes occur-
ring as the activities proceed towards it.
Blanchard and Johson have suggested that once a goal has been agreed
upon, it should be recorded on a single page in about 250 words only. This
should be done clearly enough for all those involved in achieving it, to under-
stand what they have to work towards. It is believed that 80 per cent of the
important results desired are achieved through 20 per cent of the total goals
set. So if every manager shifts the goals along the continuum and identifies six
to ten important ones, these can become the key targets for all activities, for
which details and standards for achievement can be chalked out and identi-
fied. These when written out clearly and understood by all concerned consti-
tute a “plan”.
Planning catering operations thus involves stating objectives clearly by:
(i) Forecasting the number of customers accurately.
(ii) Judging expectations of customers through familiarity with their food
habits, religious and cultural backgrounds and economic status. In
other words it means knowing their purchasing power, timings and
manner of eating, and expectations from the food service.
(iii) Determining the margin of profit required to cover all costs taking
into account inflationary trends, menu composition, tastes of customers
and so on.
(iv) Establishing profit policy (once costs are calculated) in the light of
financial constraints like tax requirements, subsidies in the form of
free meals to employees or subsidised overheads.
(v) Knowing staff skills for production and service.
Accurate future projections of the above help establishments to lay down
general policies that would prove feasible over longer periods of time, especially
where factors determine the planning of sites, spaces, and facilities, as these
cannot be changed or shifted easily once bought and built due to financial and
other constraints.
Every establishment irrespective of its size requires to formulate plans of
action for its present and future success. Though some managers may consider
planning to be a costly exercise requiring lot of time, effort and money, it has
certain distinct advantages:
Notes (a) It helps to minimise time wasting activities, involving waiting for
instructions or ingredients because of last minute purchasing, leading
to an indefinite cycle of uncertainties of what is to be done next and so
on.
(b) It helps to see future possibilities making managers alert to changes in
trends that may affect the activities of the department. For example,
the change in price of a material will immediately make him think of
using substitutes. Again, a noticeable change in tastes of customers
can be seen through menus which have been planned and recorded
over a period of time. These help to inculcate changes in future plans
well in time to eliminate wastage of ingredients through overstocking.
(c) It helps to organise and integrate activities in proper sequences, match
jobs to skills and increase overall efficiency by helping to see the
interrelationship of the various activities in the light of total objectives
of the organisation, and of individuals. When each person’s
responsibility and the contribution their activities make to the final
goal are understood, the staff also get motivated to bring out their
best.
(d) It eliminates confusion if the plan is communicated well to those
involved in its implementation.
(e) It provides an important basis for control through budgeting of time,
energy, space and money, while forming targets for achievement.
(f) It helps managers at all levels to direct their subordinates effectively
towards the goals. With every step forward in the right direction, job
satisfaction and confidence develop.
Time spent on planning therefore, is time well spent, provided it is not
overdone. Fig. 3 gives an ideal of the time that may be spent on planning by
staff at different levels in a catering establishment.
Catering Manager 20%
Kitchen Supervisor 12%
Dining Supervisor 10%
Production Staff 8%
Service Staff 5%
1% Clearing Staff
3 6 9 12 15 18 21
Planning time of staff (%)

Fig. 3: Approximate planning time recommended for catering staff.
It will be noticed that the higher the level of management in an organisation, Notes
the greater is the time spent on planning, the least being at the operative level
where it is a matter of only sequencing individual activities distributed through
detailed plans of work handed down. So while kitchen staff often have the
feeling that managers sit all day in their chairs while they do all the work, it is
quite clear that the difference is only in the nature of the work. Managers do
more mental work while food production and service staff do more of physically,
put plans into action.
Sometimes, however, managers get so involved in planning that they find
little time for supervisory, and other important coordinating and directing
functions. This leads to constant effort of trying to catch up with neglected
functions and correcting unsupervised wrong actions so that confusion,
dissatisfaction and inefficiency results. Too much time spent on planning in
thus disruptive as well as costly. In addition, it blocks initiative and creativity
of staff, delays work and affects staff relations adversely. Also the higher the
planning level the greater is the time lag between setting the goals and measuring
performance towards them. For instance a dishwasher’s performance can be
judged on the spot because the goals are set in the activity area, i.e. the kitchen
itself. But, a cooks performance in controlling costs can be assessed only after a
day, week or month. This is because the goals for profitability are set at the
highest level in the establishment and evaluated long after the cooking is done.
Important areas of planning in catering establishments are planning for
premises, functional areas, staff and customers, all of which are discussed in
the units that follow.
Organising
Once the goals have been set and responsibilities of work understood by key
staff of departments, each area of the plan needs to be put into practice. In the
catering field the key areas of activity revolve around the production cycle,
service areas, profit planning and record keeping.
Each department manager then has a translate his plan into clear cut
activities, which are then sequenced in a manner that will result in smooth
work flow. The ability to establish such a work flow by proper coordination of
activities allotted to staff, according to their abilities is termed as “organising”.
It involves demarcating areas of activity and then establishing activity authority
relationships for each worker or a group allotted the particular activities.
Steps in Organising
(a) Each activity is broken down into specific action units.
Notes (b) Each action unit is then allotted to a manageable group of people, and
authority delegated to a group leader for task performance.
(c) Staff are allocated to each action unit and placed in positions according
to their skills with levels of authority clearly defined.
(d) Adequate resources are then allocated for each activity.
(e) Work load is equally distributed to avoid stress areas and fatigue.
Organising is thus a matter of putting together resources by matching skills
with tasks, within the structural and financial constraints of an establishment.
A catering manager therefore, needs to organise his staff, equipment and
materials into work centres and service areas to provide optimum levels of
production and service thereby giving satisfaction to staff, customers and the
organisation in terms of profits.
The fact that organisation and therefore authority relationships between
people exist in every establishment cannot be denied. Even the smallest food
service has an organisation structure, formally spelt out or informally created
by one person instructing and others following those instructions and reporting
back.
Directing
While planning and organising require mental effort on the part of the manager,
directing is the function that initiates actual performance of tasks and requires
greater interactions between people. This is done by: (i) Instructing; (ii) Guiding;
(iii) Supervising; (iv) Teaching; and (v) Reviewing.
(i) Instructing: This is an important step because while a manager may have
worked out a perfect plan of activities—indicating who is to do what, unless
the instruction to the group actually carrying out the plan is clearly understood
by them, paper plans can fail miserably. All instructions therefore, should be
clearly written out in a language understood by the staff, then verbally
communicated to them so that any queries arising from the staff can be clarified
before the work actually starts. Then copies of written instructions should be
placed on notice boards at suitable points in the kitchen and service areas. It is
a good policy to prepare instructions for each activity and paste them at each
work centre for ready reference.
In catering situations interaction is extremely important because people
involved in kitchen and service areas are generally of different educational,
cultural and religious backgrounds and communication is not as simple as it
may seem to a manager. Staff understand according to their own experience
and abilities, and a very simple instruction like ‘Please bring me some coffee’
can mean different things to different people. To a server it would convey a cup
of coffee, to the kitchen staff it may mean getting the manager some coffee Notes
beans to sample, to the storekeeper it may mean issuing a fresh tin of coffee,
and so on. Where such a disparity of backgrounds and job skills occur, it is wise
to pass on instructions to the person directly incharge of the kitchen, i.e. the
head cook or kitchen supervisor depending on the size of the establishment or
the organisation structure of the kitchen. It is also more likely that instructions
passed down to other staff in kitchens by the cook would be better received
and accepted, because he is seen as one of them doing jobs with the rest. Besides
it is much easier for people to follow a single leader who speaks their language
and works alongside.
Instructions must ensure that each member understands how his work fits
into the total scheme of work to be achieved at the end of the day, week, month
and so on.
(ii) Guiding: The task of directing people involves guiding them in their jobs
in a manner that will help them to achieve the standards of performance desired
and also gradually develop themselves through their jobs.
There are a number of occasions when a worker does not want to admit that
he is finding a problem in his job, for fear of being under rated by his colleagues
or superiors. In such cases the managers or supervisors will not be able to guide
him in time, if they wait for him to ask for guidance. The result will be habitual
use of incorrect methods and poor performance. Therefore an important
component of good direction is “supervision”.
(iii) Supervising: Supervision involves ‘keeping a watch’ on what is going
on at the production, service and other related activity levels. Clearly one must
avoid standing too close to an employee or actually interfering with his job by
performing it. There are many ways in which supervision can be carried out
effectively:
(a) By viewing people’s work positively. This means looking for things
they are doing ‘right’ and giving ‘praise’ when it is due. In the process
keen observations of other people’s work too can bring out areas where
guidance and correction may be necessary.
(b) Supervision is also possible through a regular round of activity areas
of work centres just to say “hello” to people and find out about their
welfare. Observations or curiosity shown about the way work is being
done, can often produce a response from which judgement of methods
being followed can be made.
(c) Records of production and sales, statements of costs and profit margins
can be a good guide to supervision. Areas showing variances with
respect to expected results indicate that attention is needed.
Notes In catering establishments, good supervision helps in maximising resource

use, because one is dealing with ‘food’ which can tempt just any person,
especially if it is an expensive item and not easy to afford.
(iv) Teaching: The person responsible for motivating people to achieve goals,
has got to be able to demonstrate methods of work which will relieve stress
situations in the production and service centres. Catering is always associated
with peaks and troughs, that is, moments when the tempo of work is very fast
and under pressure and moments when there appears to be not enough to do.
These are correlated with mealtimes when the influx of customers is maximum
and then in between when it dies off.
Teaching people to organise work so that it can be spread evenly throughout
the working day, and using quicker methods for finishing time consuming jobs,
makes work less stressful and performance better. In addition it helps to create
a more relaxed environment for development of good human relations.
(v) Reviewing: Reviewing the effect of every activity on individual and total
performance is the job of every food director. There are a number of strategic
points in the production cycle of food which determine the quality of what is
on the customer’s plate. Reviewing activities therefore, and modifying them
where necessary to conform to standards laid down, is essential for every food
service, large or small.
Directing or leading people to work willingly and achieve organisational,
group and individuals goals depends greatly on the personality of the manager.
His leadership style, experience and ability to communicate with people, to a
large extent, determines the degree to which staff can take instruction, be guided,
supervised and motivated to achieve and develop.
Coordinating
Besides directing individuals to achieve goals, the activities of all staff have to
be well coordinated if group efforts are to become meaningful.
Henri Fayol considered coordination as the binding together, unifying and
harmonising of all activities and efforts. The larger the organisation the greater
becomes the extent of coordination necessary. It helps to keep the individual
departments together instead of alienating their activities. Better interaction is
established and work is down under a single command. Where good
coordination exists staff loyalty to the establishment is strengthened. A feeling
of oneness permeates through the organisation and results in greater
understanding.
Koontz considers management as an exercise in coordination. In fact, all
the functions of management need to be coordinated to achieve goals. One
can imagine the chaos that can result if the purchase of food materials is not Notes
coordinated with the menus planned, or quality received is not suitable for the
dish planned. Again, if service style is not linked with production and clearing
operations, it can result in customer dissatisfaction and unhygienic conditions
for all.
Since every activity is dependent on every other activity, coordination
assumes a great deal of importance as shown in Fig. 4.
PLANNING ORGANISING DIRECTING CONTROLLING
Spaces Performance
Kitchen Work Standards
Service area Staff Staff Materials
Equipment Facilities Work Methods
Policy on Service Customer Costs
* profit Safety, etc. External forces
* purchasing
*Safety etc.
EVALUATING
Products
People
Resource use
Procedures
Customer’s tastes
Environmental
forces, etc.
Coordination
Fig. 4: Inportance of coordination in performing the functions of management.
Constant coordination helps to tackle problems when they arise, gather ideas
from various experiences, anticipate problems and take timely action to prevent
them from recurring.
The extent of a manager’s responsibility for coordination depends on the
organisation’s structure, policies and scope of his activity.
Controlling
In all the functions of management discussed so far, there is no certainty that
the targets laid down will be consistently achieved. Control is therefore necessary
to give the right direction to activities. This is because achieving is no simple
process taking place under stable conditions. The food service establishment is
constantly surrounded by a changing environment consisting of helping and
hindering forces as far as achievement is concerned. By controlling the hindering
forces therefore, and making use of the helping forces, goals can be achieved.
Constant monitoring is however necessary. Fig. 5 illustrates some of the forces
that effect food service establishment.
Notes HINDERING FORCES
ESTABLISHMENT GOALS
Men
ge
St age
al
s
rta
tur
ice
St e
Materials
m
ri k
od
c
sin
Pr
aff
Sh
Da
ru
St
Fo
Ri
Money Customer
Time satisfaction
lat aff
t
en
Go nt
s
Re l St
Procedures Profits
od
ion
em
tte
m
od
Fo
ia
Be
uip
ut
ag
Equipment
rd
Gl
Co
an
Eq
M
Fig. 5: Helping and hindering forces working in the food service environment.
The controlling function in management is expected to increase the impact
of the ‘helping’ rather than the ‘hindering’ forces working in an establishment.
This can only be done if managers make the best use of natural forces like a
favourable crop, good weather, holiday time to attract customers, motivate staff,
invest on better equipment and provide a safe, healthy and happy working
environment. In such conditions people would be willing to face any challenge
from the external environment. At the same time any hindering force needs to
be counteracted as soon as it arises in other to ensure that activities proceed
towards their original goals.
The control process has various components:
(a) Measuring actual performance.
(b) Comparing results with standards expected.
(c) Pinpointing areas of deviation.
(d) Determining reasons for the deviation.
(e) Taking corrective action, so that goals can be achieved.
Control is usually exercised through the formulation of budgets such as
capital, purchase, cost, sales and operational budgets. Apart from these close
supervision, regular maintenance, inspection and security measures help to
establish control of operations and ensure efficient resource use.
Controlling is a very specialised but multifaceted function involving control
of costs, methods of work and processes, behaviour of people at work, both
individual as well as in groups, all of which have been dealt within the units
that follow.
Evaluating
How well people perform their functions can only be ascertained by comparing
actual results with expected ones, over a period of time. Efficiency is therefore
judged by the process of reviewing or evaluating, which is a measure of how
far set goals have been achieved. This may be done periodically by the manager
himself or by his superior. A process of self-judgement or evaluation as one
moves towards set goals helps to ensure success. If evaluation is done at the
end of project, it can only have a theoretical function because correction of Notes
procedures or deviations from set norms cannot be detected in a precise manner.
In addition, the use of resources becomes inefficient if people have to search
for ‘what’ wrong ‘where’ and ‘when’ on the way to the goal.
The areas of evaluation in catering establishment are:
Staff Appraisal—The performance of staff needs to be evaluated from time
to time in order to determine how efficiently their potential is being tapped.
Appraisal not only brings to light work carelessly done, but also helps to identify
training needs or guidance needed by staff. Judgments regarding efficiency of
staff made on the basis of recorded information through checklists, analysis
sheets, production records, sales records and profit statements, are useful for
establishing future plans for staff improvement as well as for the establishment.
Staff may be appraised with the help of rating scales designed to judge :
(a) a person’s knowledge and understanding of his work;
(b) the quality of performance in terms of its being ‘unsatisfactory’ or
‘outstanding’.
(c) a person’s compatability, dependability, awareness regarding safety,
cleanliness, etc.;
(d) a person’s integrity, loyalty in terms of willing cooperation with co-
workers to help achieve organisational goals and
(e) health status.
Apart from the above it is important to evaluate personal qualities like
character, reliability, presence of mind, initiative as well as social skills. Although
these are difficult to evaluate objectively, some methods need to be devised
because they are important to a progressive establishment. Evaluation must be
done in a very unbiased manner as far as staff are concerned, because any
impression of having favoured even one person in judgement can lead to serious
repercussions in staff relations. Evaluation also provides standards for placement
of staff in higher positions for which they are found to have the skills.
Evaluation of staff may reveal a high rate of staff turnover, or absenteeism,
indicating a lapse on the part of management in terms of not being able to
motivate them enough for efficient performance and interest in their work.
Alternatively, those who are constantly abstaining from work may be frequently
sick, in which case action is necessary to improve their health. A third cause
may be over work which calls for redistribution of jobs or investment in some
labour saving devices.
Appraisal of work conditions and procedures: This involves:
(a) Evaluating kitchen and service area plans to see if they require
redesigning or rearranging for smoother work flow and comfort.
Notes (b) Evaluating job for deciding on areas requiring mechanisation for speed
of work, efficiency, cleanliness and safety.
(c) The degree of lighting and ventilation required in relation to particular
work centres.
(d) Evaluating structures for necessary maintenance jobs.
(e) Analysing ergonomic aspects of the work environment.
(f) Evaluating methods of serving, washing and clearing to estimate the
amount of breakage. A high percentage would indicate poor quality
crockery or careless handling. This may call for decisions regarding
increasing investments, training of staff, etc.
Food Product Evaluation—It is necessary to see that products conform to
standards laid down. This is generally done by sensory and objective methods
of assessment. The sensory methods involve setting up taste panels consisting
of people who are highly sensitive to slight changes in taste, flavour, odour and
colour of foods. The objective methods make use of instruments to measure
qualities like thickness, flow, crispness, lightness and intensity of colour of food.
The nutritional quality of food can be judged through chemical estimation of
the contents of various nutrients in different foods and dishes at regular intervals.
Evaluating the quality of dishes served to the customer must be a continuous
process which helps to improve the product progressively. Some aids to
evaluating foods are the use of score sheets for each dish a sample of which is
given in Fig. 6.
Quality Score Score of
Characteristic Description Sample
1 2
Colour Burnt Reddish

Discoloured Brown
Moisture Too moist Just right
Dry
Mouthfeel Hard Tender but firm
Mushy
Taste and Flavour Flat Well seasoned
Over-seasoned Natural
Raw Flavour well
Strong developed
Total Score
Fig. 6: Score sheet for tandoori chicken.
Rating scales help to establish preferences of customers for a dish especially Notes
if it is a new recipe. The scale is prepared on the basis of the descriptions indicated
in Fig. 7, and various samples of the same food are subjected to preference
rating.
PRODUCT DATE 26-05-07
Rating Score Samples
A B C D E
Excellent 5
Very Good 4
Good 3
Fairly Good 2
Not Good
Not Bad 1
Don’t Like
Very Much 0
Dislike 0
Total Score
COMMENTS:
Fig. 7: Preference rating score sheet.

Most food establishments depend on sensory methods of food evaluation
as it is very expensive to set up food testing laboratories and spend time on
objective testing. As far as evaluation of foods for nutrients is concerned it is
convenient for the caterer to use already available information in the form of
nutritive value tables, which have been prepared after adequate laboratory
estimations of different foods and periodically updated while evaluating food
products the guidelines to be followed would be based on the acceptability of
the food to those who prepare it and the customers, who consume it. It is
therefore the practice in all establishments to taste the food for acceptability
and check its colour and presentability before it is offered to the customer.
Evaluation for Profitability—All food service operations must be evaluated
for viability. This involves estimating sales, costs and profit figures. If the food
costs are too high it can be indicative of the following:
(a) Pilferage of food from stock.
(b) Prices too high.
(c) Cooking method inappropriate, giving inadequate portions.
Notes (d) Menu planning unsuitable to cost structure of the establishment.

(e) Excessive wastage in preparation.
(f) Inadequate weighing facilities or supervision at strategic points in the
production cycle.
All the above points indicate inefficient management, and can be corrected
to reduce costs. This holds good even for overhead and labour costs.
Besides looking at profitability from the point of view of costs and sales
figures, it is important to determine if seating capacity is sufficient for demand
or needs to be extended. Another aspect which reflects in high cost is the amount
of plate waste. Estimates may be made from figures of menu items often rejected
by customers. A close look at the menu and deletion of unpopular items or
those which the staff are not skilled enough to prepare well, will increase the
viability of the establishment. Plate waste can also result from a change in
customer tastes, and this too has to be watched.
It is obvious, therefore, that evaluation is necessary for ensuring continued
efficiency, at all levels of the establishment.
All the functions of management therefore are closely interlinked and no
one function operates isolation, or in a particular order or sequence. They would
be performed according to the needs of various situations, and to various extents
as required.
Certain functions, however, need to be performed before others as shown
in Fig. 8.
Coordinating
Planning Controlling
Organising
Directing
Goals Men
GOAL
Methods Material
Controlling
Coordinating
Evaluating
Fig. 8: Interaction of management functions.

All the functions need to be performed at all levels in an organisation to
achieve set goals.
Catering establishments by virtue of their varying sizes differ in the manner
in which their functions are performed by individual managers. It is important
to emphasise that management is independent of ownership, and all managers
are not owners. It is only very small establishments like the road side kiosks,
tea stalls and canteens that may be managed by their owners. And, it is here
that there is a need for developing professional attitudes to catering because, it
is the entrepreneur whose resources and capacity to borrow at high interest
rates are limited. He must therefore look at all the facets of catering with a view
to generating the means for expansion or diversification. This can be done best
by being scientific in approach to management rather than setting up one-off Notes

operations and working by rule of thumb.
It must also be recognised that no operation can run single handed, and if
one has to deal with people at work, and attract enough people to serve,
operations must be based on sound principles and function in planned
coordinated manner.
However, while the basic principles and functions can be learnt or taught,
the art of managing situations comes only with experience. Besides, it is acquired
to different extents by each individual, depending on his or her ability to imbibe
confidence, develop presence of mind and trust in others. Also, developing the
art of making decisions on behalf of other people and communicating effectively
with them, using initiative and creativity as one goes along, requires social and
creative skills, which come more easily to some than to others.
TOOLS OF MANAGEMENT
As the term indicates, “tools of management” refers to materials which have
been developed by managers in the past and used as an aid to effective
management. These vary with the level of management and therefore each level
uses different aids. The basic tool for any establishment is the organisation chart,
which shows the structure of an organisation in terms of how the various units
or departments are linked together.
THE ORGANISATION CHART

The organisation structure is the outcome of putting people and jobs together
and therefore represents the entire team involved in the running of the
establishment at both operational and management levels. The chart indicates
activity authority relationships which exist in the establishment. According to
Drucker, an organisation structure can be charted out by using three types of
analysis. These have been represented in Fig. 9.
ORGANISATION CHART
ACTIVITY ANALYSIS DECISION ANALYSIS RELATIONS ANALYSIS

Determing activities Determing how far in Defining manager’s role
the future, a decision in relation to his
Listing according to will show its effect. contribution to goals
importance Impact of decision on Interaction with other
Grouping interrelated other activities or people
unitary ones together functions
Dependence on ethics
How often decisions are
taken
Fig. 9: Factors for preparation of organisation charts.
Notes An organisation chart tells us about the subordinate superior relationships

and the lines of decision making authority that exist in an establishment, in
other words ‘who’ reports to ‘whom’. It also establishes the existence of unitary
or dual command as the case may be, helping to correct any inconsistencies
that may show up on the chart. Any organisation that has a detailed organisation
chart can be associated with a well set structure, having functions logically
arranged to achieve maximum efficiency. These formal arrangements are based
on formal leadership and methods of communication, with the hope of achieving
proper coordination, because people tend to accept their positions in the
organisation as charted out.
The two types of authority relationships that most often exist in food services
are line and line-staff relationships. In the former, each individual is responsible
to the person ranking above him on the organisational chart. Thus, authority
and responsibility are passed downward. In the latter, that is line and staff
pattern, specialists are positioned at various levels to advise those along the
line structure because the activities of the establishment become too diversified
for proper functioning and control. The expertise of staff is utilised to maximise
the efficiency of line personnel to the utmost. However, a number of problems
can arise if the information channels in an establishment strictly follow the lines
of authority. In catering particularly, where staff are expected to fill in for others
at short notice, specialist departments can prove futile from informal channels
of communication do not develop.
Organisation structures can grow in two directions, vertically and

horizontally. In vertical structured organisations the person above assigns the
work to his immediate subordinates down the line. Fig. 10 indicates a vertically
structured food service establishment.
As the length of the structure increases, coordinating the activities of the

establishment become difficult, so the duties get divided separately for each
unit. This results in a horizontally spread structure, as shown in Fig. 11, which
is an extended version of Fig. 10.
C A TE R IN G M A N A G E R Notes
A ssistant
C atering M anager
K itch en a nd D ining
S upervisor
H ead C ook
A ssistant C ook
U tility W orke r
Fig. 10: A vertically structured food service organisation.
C A TE R IN G M AN A G ER
A ssistant M an ager
K itch en Su pervisor D in ing Su pervisor
C ashier
H ead C oo k C hief S tew a rd
A ssistant C ooks W aite rs
— Form al
U tility W orkers … Inform al relationships
Fig. 11: Vertical and horizontal organisation structure.
An organisation chart thus indicates functional units as well. Functions

and positions are represented graphically by blocks. The solid lines indicate
formal authority relationships while dotted ones represent informal
relationships.
Organisation structures may also indicate whether authority is centralised
or decentralised. For example, if the control and decision making function lies
solely at the top level it is completely centralised, which means all decisions
must come from the highest level. Structures may also be flat or tall which
indicate the span of control at each level of the establishment. Tall structures
Notes have a shorter span of control, that is, each supervisor or manager has fewer
number of people under his authority than in a flat structure. In flat structures
therefore it is more difficult to supervise closely.
While an organisation chart can be used as a tool for managing, it also has
some limitations, which are enumerated below:
(a) The charting only shows formal authority relationships, omitting the
many informal ones which develop at work and become a powerful
means of communication between people. This is because these develop
spontaneously between people at work, and leaders emerge within
groups not because of their position but because they possess some
personal qualities like age, competence charisma and behavioural
patterns that command respect.
(b) The chart also does not tell us how much authority is vested in each
position.
(c) Many charts indicate structures as they are expected to be, even though
they may not be so in reality. A chart therefore, does not necessarily
indicate an efficient organisation of work in an establishment.
(d) The structure does not indicate the nature of management activity
taking place at each level, whether operational, creative or
administrative.
(e) The major disadvantage is that people begin to interpret authority
relationships as differences in status. Sometimes lines of authority are
drawn at a lower level on the chart in some units than in others, or
because a particular person reports to someone higher up in the
organisation, his status may be confused.
Some organisational charts for catering establishments of different sizes
are indicated in Fig. 12.
OW NER MANAGER
C ook A ssistan t
U tility W orker
Fig. 12: Organisation chart for a Dhaba.
It will be noticed that in a ‘dhaba’, the relationships between manager and
other staff are flexible, being both formal and informal, as is expected where
staff numbers are limited and all jobs are tackled by everyone on a personal
level. It is worth mentioning here that the ‘dhaba’ or roadside cafe in India is a
very popular eating place and traditionally prepares food from raw ingredients
and serves them to travellers piping hot, giving at the same time a very
personalised service, by preparing chappaties in the form requested by
customers.
C A N T EE N M AN A G E R Notes
S upervisor C ashier
C ook S te w ard
A ssistan t C ooks W a ite rs
H elpers
(C lea ring)
U tility W orkers
Fig. 13: Organisation structure of a canteen.
The number of personnel at operative levels increase according to the size
of the establishment as illustrated through Figs. 13 to 16.
E xecutive MMANAGER
EXECUTIVE ana ger
C atering M anag er P urchasing M anag er A dm inistration incharge
A dm inistration A cco unts

A sstt. C atering M anage r S to re K eep er
C le rks Typists
S upervisor S upervisor S to re A ssista nt
(K itch en) (S ervice)
H ead C o ok H ead W aiter H elpers
A ssistan ts W a ite rs
U tility W orkers
Fig. 14: Structure of large restaurant offering self and waiter service.
It will be noticed from Fig. 15, that while formal relationships do not exist
between the service staff and kitchen personnel, informal relationships get
established if pleasant relations are harboured by managers who can then use
these channels to advantage for greater efficiency.
Notes M anage r
A ssistan t M a nager C ashier
K itch en Su pervisor S ervice Su pervisor
C ook C ook C oun ter S taff
U tility W orkers H elpers

Fig. 15: Organisation of snack bar.
The position description however, provides a standard against which to
judge if a position is at all necessary, and what its organisational level and
location in the structure should be. Fig. 16 shows that additional staff are required
to place or load meals on board aircraft, apart from extra workers needed for
the special packing and portioning of food which is done at ground level. As
the organisation grows larger more and more levels of authority formed and
work gets decentralised, as also its control. The Unit General Manager in
Fig. 16 represents the manager of a flight catering unit in a capacity city.
U nit G ene ral M an ager
C atering M anag er P ersonnel M anag er Finance A ccou nts

M anage r
K itch en D in ing/S ervice

M anage r M anage r
C hef S upervisor
A ssistan t S upervisor S upervisor

C hef (G rou nd) (Flight C a tering)
C ooks H ead P resetter
A ssistan ts
U tility W orkers–Trolly S taff
Fig. 16: Organisation chart of a flight catering establishment.

Within the structures of different organisations illustrated, other tools Notes

required by a food service manager for efficient management are job description,
job specification, work and time schedule, job analysis, production and service
analysis statements and budgets as indicated in Fig. 17 according to the various
levels in an establishment. These tools are discussed in details below.
Job Description
Job description refers to the definition of a job in a precise manner indicating
exactly what is to be done by people who are occupying or would be occupying
a job position in an establishment. A well defined job brings about greater
certainty of what is expected in terms of the performance, and when actual
results match expected ones, both morale and efficiency are raised. However, a
job should not be too narrowly defined as it leaves no scope for using initiative
and creativity. On the other hand, too vague a description also makes it difficult
to understand and handle the job, leading to frustration and loss of control.
Job descriptions are therefore effective tools for managing at every level of
the organisation structure. As one proceeds along the chain of command towards
the operative level in the organisation, job descriptions need to be more detailed,
clear cut and expressed in a language and form which can be understood by
less educated workers. At higher levels people have a better knowledge of the
work for which they are appointed and are expected to have a higher metal
calibre. Besides, the results of their work are not immediately seen as in the
case of operative staff. As the proportion of mental work increases, they have
greater flexibility in timing their work, and can adjust their schedules so long as
they go on feeding the information required by operating staff at the right time.
Organisation Level Tools Used Responsibility
Kitchen production Job description, specification, time Job responsible for actually
and service and work schedules. Staff duty producing and serving food
lists/rotars menus. sheets.
Line management Job analysis sheets, production Overall supervision of kitchen

plans, staff rotas, sales analysis and service points, requisitioning
records, cyclic menus, leadership of ingredients and issue from
style. stores, directing. Coordinating,
controlling preparing staff duty
Middle management Plans for staffing, menus,
lists, staff requirements, ordering
absenteeism, records, price lists,
food and materials, planning
inventory records, order sheets,
profitable menus, arranging for
standard costing sheets, budget
parties, preparing budgets
statements, etc.
(operating) etc.
Top management Plans for sales, purchases,
Setting goals, policy-making for
recruitment, expansion, etc.,
manpower planning introducing
decision-making, communication,
technology, planning for profits,
leadership, etc.
diversification, etc.
Fig. 17: Tools of management used at different levels of a catering establishment.
This can be seen when we look at the job of the head cook vis-a-vis that of a
Notes catering manager’s. While a chef has to report on duty at 8 a.m. to complete his
various jobs and supervise those of his team in the kitchen for lunch service,
the manager can work on a more flexible schedule so long as the menus are
planned in advance, food materials ordered in time and meals checked for
quality before they are served to customers.
It is also important to note that better communication through job
descriptions is necessary whenever one is dealing with a group of people having
diverse capabilities. As one goes up the organisational ladder job descriptions
become more broad based, stating only the functional aspect of the job. It need
not necessarily spell out the manner (through clear-cut steps) in which the
function is to be performed or goal achieved because the communication is a
one to one communication with the superior, and the worker can always clarify
any point verbally with his superior.
It will be noticed that the job description of a cook is more comprehensive.
It also acts as a check list for staff who may forget to do a job till it becomes
routine for them. On the other hand, the job description of the catering manager
is more general, expecting him to work to an efficiency guided by his experience.
He is, however, given an idea of what is expected of him in terms of arranging
functions, bar service and meals for staff.
TITLE: KITCHEN SUPERVISOR
CODE NO.
ESTABLISHMENT
JOB SUMMARY
The job carries with it the responsibilities for:
(a) Efficient operation of catering facilities for management staff and employees.
(b) Arrangement of functions as required.
(c) Administration of bar facilities.
(d) Liasing with related departments.
(e) Holding additional charge in the absence of the superior.
PERFORMANCE REQUIREMENT
(a) Responsibilities as above.
(b) Using initiative the development of menus and methods of work.
(c) Developing good working relations with staff and guests, suppliers and visitors.
(d) Evaluating work and staff performance, and ensuring maximum utilization of resources.
(e) Ensuring optimum equipment use and maintenance.
SUPERVISION
(a) Supervision of all production and service area work.
(b) Checking for quality.
(c) Close check on service at peak hours to look for problems such as queueing, delay in
service and feedback from customers.
(d) Getting feedback from customers.
Fig. 18: Job description of a catering supervisor.

TITLE: HEAD CHEF Notes

CODE NUMBER
ESTABLISHMENT
JOB SUMMARY
The job involves:
(a) Planning menus with catering supervisor.
(b) Requisitioning ingredients for food preparation.
(c) Checking deliveries with requisition slips.
(d) Checking quality of food received and getting it issued for use or storage in kitchen as
required.
(e) Alloting work to assistant cooks.
(f) Guiding them in preparation and processing techniques.
(g) Preparing main dishes.
(h) Finishing all food.
(i) Testing for acceptability.
(j) Dishing out, portioning and holding food at the right temperatures till required for
service.
(k) Getting next day’s menus checked, requisitioning ingredients and sending requests
to stores for issue.
(l) Getting preparations done and refrigerated for use next morning.
(m) Getting kitchen cleared up at the end of each day, switching off gas, electricity and
water points.
(n) Locking up, or handing over work to the person taking over for the next shift as the
case may be.
Fig. 19. Job description of a head cook.

It can therefore be generalised, that job descriptions are not only important
aids to job performance at all levels of an organisation but they help to draw up
requirements, set up salary levels commensurate with work involved, provide
the guidelines for training and aid in controlling activities within the
establishment. Job descriptions also remove conflicts between people in terms
of specifying each persons job responsibilities.
Job Specification
A job specification is a statement indicating standards to be achieved for a
particular job. It also covers duties expected to be performed, working conditions
in which the job would be carried out, and the qualifications required. A job
specification is generally used as a tool for selection of the right employee for a
particular job. Small establishments may use the job description instead of the
job specification for the purpose, because closer supervision is possible at work,
Notes to check if expected standards of performance are achieved at every stage of

production as service. A sample job specification is given in Fig. 20.
JOB TITLE: COOK
Department: Kitchen.
Supervisor Catering Manager.
Job summary: As under job description.
Education: Craft course in catering.
Experience required: At least two years experience in an institutional kitchen.
Knowledge and skills: Knowledge of Indian and continental cooking.
Personal standards: Clean appearance and habits.
References required: One at work and one personal.
Hours of work: 40 hours a week.
Promotional opportunities: To head cook, and with extra qualification to kitchen supervisor.
Ability tests: Actual performance tests to be passed to expected standards.
Fig. 20: A sample job specification
Work Schedule
This represents an outline of the work to be done by an employee. When this is
to be completed within a time schedule as well, then it is referred to as a time
and activity plan.
For proper scheduling it is important to analyses tasks which are to be
performed on a particular day. In catering, the production day can be divided
into low and high production periods, and an understanding of these is
important in scheduling task. As a rule tasks requiring minimum effort, time
and attention should be scheduled or planned for performance during periods
of low production, as these follow high pressure work periods of peak hour
production and service. Besides providing the necessary relaxation, such
scheduling gives a sense of achievement and motivates staff to cope with the
pressures of peak hours. On the other hand, if complicated tasks are fixed for a
low production period, they appear to get more complicated. The best time to
schedule such tasks is first thing in the morning when workers are fresh and
rested. However, sometimes catering staff are required to work late hours, and
perhaps continue in the morning because of the high rate of staff absenteeism
or turnover. In such cases people who have worked more than eight hours a
day should be given simple jobs, which do not require a lot of care and attention,
because mental and physical fatigue sets in.
A job considered disagreeable by a worker should only be scheduled during
peak hours when it gets done in the stride because people do not have the time
to think of it in particular. If all jobs are considered
WORK SCHEDULE
MENU: CHICKEN CURRY RICE

DAHI VADA
VEGETABLE BURGER
SAMOSA
CAKE
HOT AND COLD BEVERAGES
TIME MANAGER HEAD COOK ASSISTANT COOKS UTILITY WORKER
I II
8.00-9.00 — Check menu, Collect Help head cook, boil — —

ingredients (raw and potatoes
prepared) and equipment
9.00-10.30 Check menu, Inspect Prepare curry, Prepare Halve buns, oil them, Prepare dough and filling Pick and clean rice. Clean
Kitchen and service areas cutlet for burger Preheat oven. Grind dal for samosa. Cut salad utensils and equipment
for staff on duty. Check for vadas.
stores for stocks. Prepare Prepare chutney
order sheets
10.30-10.45 Continue Work Tea Break
10.45-11.45 Office work. Put by menu Complete curry. Fry Whip curd for vada. Prepare service counter. Clean tables and service
for next day. cutlet, vada and samosa Prepare garnishes. Boil Check service area for counter. Arrange trays and
rice trays, cutlery, spices, trolleys
napkins etc.
11.45-12.00 Inspect food and accom- Portion food. Dishout Transfer food to service Arrange service counter Wash up utensils. Clean
paniments. Get cash and garnish. Record counter. Check service and area kitchen tables
Notes
Notes
counter ready portions sent for service equipment and portion

ing guide
12.00-1.30 Cash Counter. Supervise Provide back up service Refill service trays. Serve Clear service area. Prepare
Service From kitchen. Plan pre- Serve for dish washing
paration for next day’s
menu
1.30-2.00 Lunch Cash Counter Serve. Clean service Serve. Assist in clearing Clearing. Washing up
counter
2.00-2.30 Close cash counter. Pre Lunch Break
pare, kitchen and service
analysis sheets
2.30-3.30 Check stocks, leftovers Preparation for next Assist head cook Cleaning service areas
and requisition slips day’s menu. Portioning match staff time Washing up
3.30-3.45 Putting up work schedules Tea break Cake etc. for tea Schedule
duty lists, rates menus etc.
3.45-4.30 Ofice work Storing prepared. Food, Tea service. Recording Washing up. Cleaning
Tea ingredients. Clearing leafovers storing. Wind- tables, floors
kitchen. Switching off ing up
fuel connections
4.30-5.00 Office work. Checking Giving service statements
establishment for to head cook
safety and security.
Fig. 21: Sample work schedule for a self-service canteen.

in the light of their physical, pyschological, social and environmental effects on Notes
the performers, work has a number of advantage:
(a) More work can be done in a day, imparting a sense of achievement.
(b) Resources are better utilised, making work more productive.
(c) A busy schedule leaves very little idle time, gives great satisfaction,
and raises staff morale.
(d) The involvement is greater and staff perform their best.
Apart from work and time scheduling, productive work depends a lot on
people’s attitudes to their work, the nature of the job, the time and concentration
required to perform it and the amount of satisfaction derived from it. Analysing
tasks and scheduling work can therefore help to identify materials, equipment
time and skills, required for doing particular jobs. It is an effective tool for
efficient working, as it helps to establish a sequence in which jobs are to be
done within a time frame. This sequence is readily available before the work is
started, so it helps each worker to know what he has to do, without waiting for
verbal instructions and wasting time. Fig. 21 is a sample work schedule for a
self-service canteen operating between 10 a.m. and 5 p.m. offering a choice of
plated lunches, snacks sweets and beverages, while Fig. 21 is a sample of time
schedule for staff. It will be noticed that at the peak hours of production and
service, that is 10:00 a.m. to 2:00 p.m. all the staff are present. The peak
period lies between 10:30 a.m. and 12:00 noon for production, and 12:30 p.m.
and 1:30 p.m. for service. The timings for staff are therefore staggered before
and after the peak hours.
Work and time schedules not only chalk out the work plan for staff, but at a
glance help to identify tasks which may be combined, eliminated, or modified
for greater efficiency. For effective scheduling a catering manager must have
data on the time required for performing a particular job.
Schedules are important tools for demarcating the responsibilities of each
worker and giving them a sense of achievement at the end of a task. A schedule
may also indicate changes or additions to normal duties on a particular day,
and helps to check any claims for overtime work performed. Often greater use
of convenience foods on the menu or introduction of time and labour
saving equipment may require time and task adjustments on the
schedule. Flexibility should always be built into schedules, to enable food service
to adjust their work in response to technological and other environmental
changes.
Notes
8.00 9.00 10.00 11.00 12.00 1.00 2.00 3.00 4.00 5.00
M A N AG E R (9.00–5 .00 )
H E A D C O O K (8.0 0–4.00)
A S SIS TA N T C O O K I (8.00 –3.00)
A S SIS TA N T C O O K II (1 0.0 0–4.00)
U T ILITY W O R KE R (10.00–4.00)
Fig. 22: Staff time schedule

The food industry in unique in the sense that there is a constant need to
increase or decrease staff strength at the production and service levels,
depending on the number of customers and their requirements. It is also a
common feature of the industry to employee low paid workers and therefore,
on a particular day, there may be even 10 to 20 per cent absenteeism. To guard
against such circumstances, the work force consists of casual workers on hourly
or daily work basis, temporary employees, ad hoc appointees, those on training
and so on. This enables a manager to use scheduling as a tool to cover peak
hour work adequately by the required number of people, without resistance
from staff. In catering, split shift schedules are rarely followed, though staff
may be asked to perform day or night duties through alternate weeks if an
establishment does operate round the clock. This, however, is not normally
done in any food service, because people do not generally eat round the clock.
Besides, laws governing food service establishments spell out the desired hours
of work in accordance with minimum wage agreements for various types of
work.
Work and staff need to be scheduled properly for two main reasons :
(a) To have a right type of skills available when required: For instance, there is
need to have more service staff available at lunch time in a food service
establishment, rather than kitchen staff. Once the food is ready only
one or two back-up staff in the kitchen are necessary for ensuring a
constant flow of food from kitchen to service counter. The number
will of course depend on the type of the service and the customers.
(b) For maximum efficiency : This is possible only if production and service
areas are not overcrowded, or else the work environment will not only
cause fatigue but also become prone to accidents.
Successful scheduling in terms of man hours and skills can only be done if Notes
jobs are analysed properly along with working conditions, menu patterns,
purchasing methods, quantities handled and equipment required.
Job Analysis
The term clearly means analysing job to know precisely what they involve. The
purpose of breaking up jobs into their respective components is to take an
objective look at a job at frequent intervals. This helps to bring into focus any
overlapping, neglected or problem areas, which can then be remedied by
conscious effort, to increase efficiency. Job analysis is also sometimes referred
to as ‘task analysis’ and is a way of looking at jobs and situations in which a
number of variables are involved.
Catering situations are made up of a number of interdependent parts of
variables, and job analysis helps to simplify them and reveal possibilities for
improvement. This is more so in the changing technological environment of
today, in which the possibilities of making labour intensive jobs easier and less
time-consuming are enormous.
Jobs may be analysed by many methods, such as charting out the steps or a
performer and preparing travel patterns for a job. These records are known as
‘pathway charts’ and help to analyse areas where unnecessary time and energy
is being used. The data can then be used to develop procedures and aids for
better resource use.
Task analysis also helps in scheduling work, by examining it closely for
process, materials, equipment and skills, etc. needed to complete a job. Fig. 23
shows the steps or activities involved in preparing a sandwich.
An examination of the steps in Fig. 23 will indicate whether.
(a) some of them can be combined into a single step;
(b) the sequence is interrupted or logical for a smooth work flow; and
(c) time and energy spent can be reduced through scheduling.
STEP ACTIVITY
1. Collecting ingredients together.

2. Buttering the slices.
3. Preparing the filling.
4. Spreading filling between slices and pressing them together.
5. Wrapping in damp cloth, and keeping refrigerated till required for service.
6. Removing from refrigerator and trimming sides.
7. Cutting and shaping the sandwiches.
8. Arranging in service plate or packing in portions as required and sending for service.
Fig. 23: Task analysis for sandwich preparation.
Notes Some tasks may be coupled or performed simultaneously. For instance,

activity (2) and (3) may be combined to eliminate the step of buttering the slices.
This can be done by mixing the butter in the ingredients of the filling.
Job analysis is therefore a very good tool for increasing efficiency both in
terms of speed as well as resource utilisation and can be used at all levels of
activity, more so at the operational level. Job analysis sheets help to assess the
skills required for each task and formulate job descriptions, which usually define
duties, tasks and responsibilities of the performer.
Production Service and Staff Analysis Statements

Statements indicating the quantities or portions of food produced, served and
leftover each day act as tools for forecasting customer demand patterns over a
particular period of time. The type of records are production records, sales charts,
records of stocks and leftovers over a specified period, menu records and
standard costing sheets. Any number of tools can be developed by a catering
manager according to the specific requirements of the establishment. Standard
costing sheets, for instance, help in substituting equally coasted dishes when
some ingredients for a planned dish on the menu are not available or have
become too costly for the dish to be profitably produced and offered to the
customer.
Each establishment can thus devise certain records which are suitable for
controlling and managing its operation. Another aid is a record of staff
absenteeism. This can help to analyse which workers are constantly absenteeing
themselves from work. The reason could well be traced to routineness of the
job, insecurity at work or ill health. These reasons if identified can lead
management to take corrective action. Records of sickness and absenteeism
also indicate productive hours lost, leading to increasing labour costs which
catering managers can least afford.
Budget
A budget is a projected plan for the operation of a business. It is sometimes
expressed in terms of money, but at other times may also be expressed in units
or as percentages. It is an important tool for managing an operation as it
establishes targets for future production, sales, staff numbers, purchases and
so on. Budgets are of different kinds and are classified according to the use for
which they are intended and designed in various establishments. Figure 24
shows the kinds of budgets that may be formulated by catering establishments
depending on their size.
Budgets may also be referred to as fixed or flexible with respect to the levels
of sales assumed. In fixed budgets, the amount to be spent on certain items is
fixed at the beginning of a budget period. In flexible ones, a judgement of costs Notes
is made from previous years experiences in relation to the possible volume of
sales. Food services which are subject to seasonal sales like canteens and
cafeterias situated in hill resorts or at sea sides also prepare flexible budgets for
labour costs.
MASTER
BUDGETS
CAPITAL BUDGETS OPERATING BUDGETS
Cash budget Sales budget

(Fixed assets, Debtors, Labour cost budget
Stock, etc.) Overhead cost
Office and administration
Maintenance
Food and materials
Fig. 24: Kinds of budgets in catering establishments.

Budgets are prepared on basis of forecasts of sales volume, which in turn
help to determine:
(i) The preparation of variable and semi-variable costs;
(ii) The cash position of the establishment; and
(iii) The amount of expenditure to be made on equipment, furniture and
overheads.
In every establishment, however, there are certain key factors which govern
the volume of sales achieved, and these need to be considered while forecasting.
These factors prevent sales from increasing and are therefore sometimes known
as “limiting factors”. Some of these factors are:
(i) Capital at hand : It is not possible to invest more than a certain amount,
and this factor limits the extent to which an establishment can grow.
(ii) Size of spaces : This affects the seating capacity. It is obvious that more
customers cannot be served at a time than the space available permits.
(iii) Staff at hand: Shortage of staff limits the production and sale of food
and services to the capacity of existing staff. Being short staffed
therefore is a limiting factor for sales volume of an establishment.
(vi) Poor management: In spite of having enough resources their poor
management can become a serious limitation to achieving profits.
Standards deteriorate through poorly planned menus, improper work
distribution, inefficient kitchen arrangements, poor supervision,
inaccurate costing and pricing.
Notes (v) Demand of the customer: The demand for food may decrease because of
high prices, greater competition or an epidemic because of which
people abstain from eating out.
It is therefore important to identify which factor is limiting the sales in a
particular situation and then try to remove its effect on the establishment.
The managers of small establishments are particularly concerned with
operating budgets, such as sales, labour, overhead, maintenance and
administrative budgets. In larger establishments at higher levels in an
organisation the cash and capital budgets become important tools for setting
goals, controlling and monitoring performance and quality of food and service.
Along with budgets accounting information through balance sheets, profit and
loss accounts and break even charts, all act as tools for effective management of
operations.
The tools of management discussed so far were all concrete and expressible
on paper. Those that follow are more subtle in nature, but are nevertheless
indispensable for managing people and making them bring out their best for
the organisation.
Leadership Style
The leadership style of a manager determines how good his relationships are
with his subordinates, and how easily he can communicate with them.
Leadership is the quality in the manager, irrespective of his craft skills, education
or position, that directly influences people’s behaviour towards him and their
work. In other words, it is the quality by which people can be motivated to
move enthusiastically and with confidence towards established goals.
Leadership qualities are inborn to a certain extend, but can also be acquired by
training, and experience. Leadership styles adopted in the management of group
work are closely related to the personality of individual managers and their
social skills. It is debatable, how far social skills can be taught, because extrovert
personalities develop easy relations with other people while introverts find it
more difficult.
The different leadership styles that are used in the catering field can be
easily classified. Some distinctly make people work by order or force, others
join the group and initiate activity, still others use persuasion while some, by
their pleasant and endearing manner generate the enthusiasm for work and
achieve goals in the best possible manner. Thus, through a manager’s
personality, referred to by Doswell and Gamble as the ‘manager factor’, a
manager can build an image for himself in his work environment. For the
establishment he is responsible for how customers view the food service.
Katz and Kahn define leadership as “the influential increment over and
above mechanical compliance with the routine directives of the organisation.”
It is the willingness of people to follow a leader, and this happens when people Notes
can see the manager or leader as one who is providing their own wants and
needs.
Leadership style is used as an effective tool of management both in formal
as well as informal structures. This is evident from the fact that even when
placed formally in positions of power, managers can exercise authority over
people only if they will accept it. Some managers who are good planners and
organisers fail to achieve results because they are not good leaders. Reference
has already been made to the development of informal organisation patterns
within the formal frame work. In catering situations one often sees the emergence
of a leader within a group, that is, a person who will be followed in whatever
he says or does, even though he may not have been placed in a position of
authority through the formal structure.
Experiences of managers have a shown that the contribution of leadership
ability towards goal achievement may extend up to 40 per cent while 60 per
cent is attributed to the need for the job and the authority exercised by superiors.
Lal has reported that managers tend to behave in characteristic ways while
making decisions. Table 1 summarises the style of leadership researched and
the conclusions drawn.
Thus, a manager does not and cannot use any one leadership style in isolation
at all time. He may be autocratic in an emergency like when an accident takes
place or a fire breaks out in the kitchen. Also, in situations where only he has
the answer, such as deciding on the number of customers to be catered for.
According to Likert, effective managers use the participative style and
depend more on communication, while at the same time adopting a supportive
attitude, sharing their needs, values, goals and expectations with their staff.
Various traits related to leadership ability have been identified in the literature
ranging from physical traits to those of intelligence, ability, personality, social
and task related ones.
Table 1: Styles of leadership prevailing among managers.
Style Description
(i) Own decision without explanation Autocratic or
to subordinate. centralised
(ii) Own decision with explanation to subordinate. Same as (i).
(iii) Prior consultation with subordinate. Participative or
decentralised.
(iv) Joint decision. Democratic.
(v) Delegation. Lassez faire.

Notes Note: All the styles are used to different extents by managers according to
the nature of the decision to be made. For example, for decisions regarding
salary, styles (i) and (ii) were used 98.44 per cent of the time. For hiring staff
these were used only 14 per cent of the time. The observations from this study
were averaged to show the percentage of time which managers spent using the
different styles of leadership. These have been shown in Fig. 25.
40
35.02
29.50
30
P erce nt usage
20
10
3.52
I III IV V
Lea dership styles
Indicates varie d p erce nta ge usages,
dep ending on the nature a nd type of
establishm en t.
Fig. 25: Percentage use of different leadership styles.
Leadership style is thus a powerful tool of management, especially in people
oriented spheres such catering, in which the degree of concern managers have
for people (reflected in their style) can create a comfortable working environment
harbouring trust and respect for each other. This of course is based entirely on
the personality and other traits of the manager and his ability to inspire
confidence in people who then get committed to the goals of the establishment.
TRAINING
With catering becoming more and more competitive, professional training of
employees at all levels is becoming an indispensable tool for the management
of catering operations. This is because training imparts knowledge of the various
aspects of the operation, and skills to deal with the influences of the ever-
changing environment. Besides ensuring efficiency training also develops the
right attitudes to work. With the increasing number of unemployed graduates
in the market, caters would do well pick up raw hands and spend less on
interviews, references and selection, and subject them to on-the-job training,
using training as the tool for developing their best potential. They could be
subjected to on-the-job training for 70 per cent of the time, with the remaining
30 per cent utilised for academic work.
Sensitivity training should form part of the programme in which people
are brought together in groups and allowed to discuss their feelings and
frustrations, freely among themselves. These are referred to as T groups.
Through such exposure individuals develop trust in themselves and in others, Notes
become, fearless and self-confident and learn to work effectively with other
people.
When people are trained in groups, they get better stimulated to learn
because of group participation, and this group spirit is later maintained at work.
Training programmes conducted by well trained teachers should impart
knowledge of the history and objectives of the establishment, relationships with
other departments, the key persons to contract in each department, budget
estimates as they affect the workers, preparation and service of food, sanitation
and safety, and the existence of work improvement programmes. In addition,
knowledge about law governing food service organisations and their
implications at work are a vital aspect of any training in catering.
The organisation gains from a well-trained work force through reduction
of staff turnover and absenteeism, fewer accidents at work, better resource
utilisation, decreased costs, higher production, higher levels of morale and job
satisfaction. Training makes its contribution to the goals of the establishment
as well as to the development of the individuals.
DECISION MAKING
No work at any level can be performed without making decisions. The difference
lies only in the nature of the decision. At kitchen and service levels the decisions
made concern materials, methods of work, quantities and quality. Higher up in
the organisation decisions change to those of planning menus, selecting
equipment and suppliers, making purchases, costing and pricing. Still further
up the management hierarchy decisions regarding staffing, grievance
procedures, trade union negotiations, establishment policies and investment
have to be taken. Besides these, strategies for reacting to environmental changes
have to be drawn out.
The process of decision-making involves three basic steps;
(a) making a mental effort,
(b) listing out alternative courses of action within the structure of a
situation.
(c) choosing a single course of action from among many alternatives.
In practice, people are making decisions all the time, without thinking about
the process which the mind is going through, to decide what is to be done. For
example, a cook decides to garnish a dish of tandoori chicken with onions,
lemon slices and chopped coriander for one set of customers, to others he sends
it accompanied by roast potatoes garnished with coriander sauce. He may have
decided to do the latter because there were some boiled potatoes left over from
Notes the earlier meal or the coriander was not looking too fresh to be used as such
for the last lot of customers. In both cases however, he has acted on a single
course of action without as much as sitting down to list the alternatives. Similarly,
the catering manager decides to change the menu because the price of a food
item has suddenly gone up or down, or because he envisages drop in the number
of customers on a particular day. In this way there are so many decisions, all of
different types that are being made and acted upon at all levels of management,
almost continuously, depending on the roles that people are performing at work.
The more complicated the decision situation, the more time is spent on decision-
making.
Three pre-requisites are therefore essential for any decision to be made:
(i) There has to be a reason for making a decision,
(ii) The courses of action that are open need to satisfy the reason, and
(iii) Choice has to be made from among these courses.
The proportion of time spent on each of the phases of decision making vary
from one level in the organisation to another, and from one person to another.
But, in general, at top management levels more time is spent on studying the
effects of environmental changes on the establishment and developing courses
of action to react to them favourably. The middle level managers spend more
time selecting the best courses of action open to them.
There was two main types of decisions taken in catering establishments.
Some are routine and repetitive which do not require fresh thinking each time
the need arises. An example of this type is, the decision to place a pan on the
cooking range when any food is to be cooked, or switching on the oven when a
cake mixture is being prepared. Such decisions are said to be programmed. The
second type are decisions which are unprogrammed these include those required
to be taken if an accident takes place in the kitchen, or when some incident of
misbehaviour has to be tackled, or a piece of equipment breaks down in the
middle of food being cooked in it, or 25 per cent staff do not turn up for work
one morning. These type of decisions require the use of judgement, creativity,
presence of mind and initiative.
The routine type of decisions act as a tool for managing time well, because
they become quite automatic and require practically no mental effort, time or
advice from superiors. The unprogrammed decisions are important for
managing emergency or pressure situations, which are a characteristic feature
of catering establishments. At higher levels managers also need to know the
possible effects of their decisions, because of the fact that catering operations
consist of highly cohesive groups at the operational levels, and can collectively
demonstrate group feelings bringing great pressure on management. This is
expected to increase as catering workers get more and more unionised. Decision- Notes
making, therefore, though an important tool of management needs to be used
with great care, because the results of a decision are known only after a period
of time. Managers would do well to cash on their knowledge of the people who
work with them and utilise their cohesiveness to achieve group and
organisational goals.
The importance of decisions vary with the degrees of responsibility entrusted
to a manager. Where a decision has a great effect on people, its importance is
greater than a decision which affects a piece of equipment, or a procedure.
All good decisions are cost effective, and satisfying to people and the
establishment. Decision making is vital to all functions of management as it
forms the core of planning. Therefore its usefulness need not be overemphasised.
COMMUNICATION
All plans chalked out for the success of an establishment will come to naught, if
they cannot be interpreted and understood by the people who have to carry
them out. The ability to convey information or messages to others so that they
can understand and interpret them in the same light as the sender of the message,
is known as communication.
Communication is therefore the most important tool of management when
dealing with people, yet it is the most difficult to achieve effectively, because it
involves much more than just sending and receiving messages. Interpretation
of what is said is affected by a number of factors such as:
(i) Personality characteristics.
(ii) Sense of security or fear in the work environment.
(iii) Nationality and cultural background.
(iv) Sex, education and occupation.
These are the reasons why not two people interpret a message or a situation
in the same way. Apart from the above, people have certain mental images of
other people because of their position, status, dress, colour and therefore
associate certain personal titrates with them. Another aspect of communication
in a work environments the ‘halo effect’, which affects the ability of people to
evolute any situation or message accurately. This effect is seen at every level in
the form of impressions which superiors form about people and which act as
barriers to the process of communication, because the impressions influence
their perception. It is common for people working together in a group, to feel
victimized at times, when credit for group effort is given to one or two people
repeatedly. This happens when managers from good or bad impressions about
some people. Those who feel victimised will never be able to interpret a message
Notes from the manger favourably even when he wishes to convey his appreciation
for their work, because they carry an impression of the manager as being unjust
and unappreciative of them.
Extensive studies of people’s behaviour at work have established that social
and psychological factors have a pronounced effect on the communication
between people. Among the most significant of the studies are those of Leavit
who studied the effectiveness of various communication networks or channels.
He concluded that in every network there are two indices, one is the index of
centrality which indicates the ability of an individual to interact in a group and
establish smooth flow of communication with other members. The other is the
index of peripherally, referring to people who remain on the periphery of a
network and generally occupy positions of low interaction. The higher the index
of centrality of better are the liaison qualities of that position. The higher the
index peripherality the lower the level of interaction, and therefore people at
these positions in the network tend to be less well informed.
The Communication Process

The process basically involves a
MANAGEMENT FUNCTIONS
‘source’ from which the message or
information starts and a ‘receptor(s)’ Planning Leading
Organising Controlling
for whom the information is meant.
Staffing
The information may be a statement
of fact, an opinion, a suggestion, INTERNAL ENVIRONMENT
request or other. As already
mentioned, requestor order. As Communication
already mentioned, communication is
only complete if there is a reaction or EXTERNAL ENVIRONMENT
feedback from the receptor(s) to
Customers
suggest that the information has been
Suppliers
correctly interpreted and understood. Community
It does not, however, imply that the Government
receiver must agree with the contents
of the messages. It is the psychological Fig. 26: Communication Process.
and behavioural aspects of people which make the seemingly simple process
of communication complex in practice. In the catering environment,
communication is central to unifying all the different activities which interplay
in the achievement of goals. Fig. 26 illustrates this clearly.

Communication Methods Notes

The methods used to pass on information or messages and initiate action in the
catering environment are :
(i) Verbal—by word of mouth.
(ii) Written—through letters, memos, notes, etc.
(iii) Verbal followed by written instructions given and followed up by a
detailed plan of action to be used as a reference at work.
(iv) Written followed by verbal such as an order handed over to an
employee, and the intricacies explained, just to make sure they are
understood.
(v) Body gestures and facial expressions these can very effectively
communicate feelings of joy, anger, frustration or friendship.
(vi) Silence this also communicates feeling of disagreement,
disinterestedness, anger, shock, worry or even concentrated mental
activity.
Whatever be the method of communication used by people, its effectiveness,
depends a lot on the sensitivity of people to interpret the words (written or
oral), gestures, expressions or silence correctly. In other words, the recoveries
have got to be at the same mental wavelength as the sender of the information.
In any situation, however, no one method of communication is used in isolation,
and it has been found that an oral message followed by a written one is very
effective at levels where immediate action is required. The written form helps
to follow up the activity and to record the results of future reference. It has also
been noticed that a message or information gets communicated much better
when the receiver needs that particular information for getting his work done.
The most effective communication is established where authority and
responsibility are completely delegated and early defined. Very often, a worker
who becomes disinterested in his work has become so because he does not
know exactly what to do. Therefore, the success of any operation involving a
number of people depends on the channels and methods by which information
concerning their work is passed on.
Communication is thus the essence of coordination of all work in an
establishment, and therefore follows patterns depending on the organisation
structure of the establishment. These patterns are known as channels or networks
of communications.
A number of networks can be formulated, formal and informal according
to the various organisation structures and social groupings which people make
at work. Formally, information flows in an establishment from superiors to
subordinates in a downward direction, or between colleagues in a horizontal
manner or in the form of reports, queries and grievances, upwards. These three

Notes directions of information flow, move automatically along the formal structure
of the establishment. The information which gets passed on by people through
their social groups in casual conversation irrespective of their formal positions
in relation to each other is known as grapevine communication, because it travels
very fast and at times bears no semblance to the original message. Information
thus transmitted gets distorted by being differently interpreted by people
according to their varying experiences, perceptions and personalities. This
method can, however, be a very useful tool for managing work effectively, if
managers make an effort to understand how the grapevine works.
In grapevine communication, information may be passed on from one person
to another in a very casual manner, but it reaches people so distantly placed at
work that it is impossible to locate its source. At times one person may say
something he overhead, to friends during tea break. This causal statement may
become the gossip of many different groups, who being to believe it is true. If
the information concerns proposed bonus payments to employees, overheard
and passed on before the decision was made, it can cause problems for
management, because an adverse decision can create a lot of unrest.
What is interesting is, however, that information travels unbelievably fast
by the grapevine, in constrast to the same message through formal channels.
Enterprising managers could use the grapevine as an effective tool for passing
accurate information to people instead of the usual rumours. This is possible if
they can identify those persons who are looked up to and trusted by the group
and have liaison and leadership qualities. This cannot however, be largely
depended upon as a regular means of communication, and any barriers in the
way of people’s understanding should be identified and removed.
Barriers to Communication
A number of factors may become barriers to effective communication and make
conversation negotiation and training impossible, because people become
alienated and indifferent to others and their work. These factors need to be
identified constantly and guarded against to prevent communication from
breaking down. Managers have therefore got to be vigilant and maintain good
human relations at all cost if an organisation is to survive.
A breakdown in communication is symptomatic of the existence of problems
in the management of the organisation. For example, communications can break-
down if the work force is uncertain about who is the boss, how, what and when
a job has to be done, one when three are no clear cut standards for staff to work
towards. The uncertainty builds into confusion and frustration leading to less
and less interaction between people at work. The results is inefficiency because
of a demotivated work force who does not know the goals or the establishment.
If these gaps are allowed to widen communication breaks down completely. Notes
Besides the structural and organisational problems mentioned above, the reasons
for communication gaps maybe connected with the manner in which messages
are transmitted to the people at work. Fig. 27 represents some factors responsible
for communication breakdown.
The establishment of an effective communication system in many
organisations is thus the solution to a lot of deep rooted problems, which can
be brought to the surface and tackled successfully by every enterprising
manager. Every manager should endeavour to identify the existing barriers to
communication in the establishment, and make a conscious effort to demolish
them, replacing the barriers with strings of understanding, confidence and
strength.
In conclusion, tools to a manager are as useful as he can make them. If he
has initiative, and the will to succeed, he can create new tools or shape old ones
to suit his particular needs.
U nde rstand ing
C onfid ence
S tren gth
gu or d
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la n f P o c a te
sa e d
io n
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r it
es n
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pt
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Fig. 27: Barriers to communication.
MANAGEMENT OF RESOURCES
Resources are factors available to a catering manager for the production and
service of food, and these are always limited for a number of reasons. Some are
used up and finished with time, so they have to be continually generated to
have a constant supply. Others gradually wear out or depreciate in value and
utility and need to be constantly maintained till unfit for use, and replaced
when they become absolute.
Space or land is perhaps the only resource which in real terms appreciates
with time. This appreciation, however, is only beneficial if the advantage is
received by the owner of the food service. In small catering establishments
Notes however, more often than not, the owner may be paying a rent for the space, in
which case he does not receive the advantage of its appreciation. On the contrary,
over a period of time more money is required to pay for increased rent, cutting
into the profitability of the food service operation.
It is therefore evident, that for an establishment to survive in its ever-
changing and competitive environment, resources need to be utilised to their
maximum, because no resource can be increased indefinitely. The discussion
that follows focuses attention on the utility of each resource available to a food
service manager, as summarised in Fig. 28. It will be noticed that while eight
kinds of resources have been identified in Fig. 28, they cannot by their mere
presence lead to the success of a food service. Resources, need to be nurtured
and skillfully utilized through imaginative and innovative management
techniques, to make them grow and bear fruit. This has become necessary
because, the environment is changing all the time, requiring manages to
continually keep pace with the new challenges. Therefore the most important
resources for any establishment today is its ‘management skill’. When this
resource is well developed, all others can be utilized to advantage. Each resource
has been briefly discussed below. The goal of every food service establishment
is to make profits, but before it can achieve this goal there has to be money to
invest and spend in order to acquire the other resources necessary for the
production and service of food. It is only when food is available to the customer
that money will start flowing back into the establishment. It would therefore be
appropriate to pin point briefly the methods by which an entrepreneur can
raise the money for his establishment, before the utilisation aspect is considered.
MANAGEMENT
Fig. 28: Resources for catering management.

Some methods of raising money are:
(a) Borrowing from nationalised banks or government finance companies.
In the case of institutions serving social cause such as catering for
handicapped homes, or providing employment opportunities for was
widows through setting up canteens, capital maybe raised at low
interest rates. Money can also be borrowed against securities or Notes

overdrafts.
(b) Joining in partnership with other people who can share the investment
in the business.
(c) Purchase premises and equipment on a hire purchase basis, which can
then be paid for installments, after the establishment is in operation.
(d) The owner can use his savings initially, till the establishment earns
enough profit to pay back. But this is not a desirable practice if loans
can be raised at reasonable interest rates.
Having raised the money it is important to pay it back at the earliest to
minimise interest payments. In order to do this it must be invested wisely in
space, equipment, materials and other resources, to get optimum return on
investment. Making investment decisions for catering establishments therefore,
must be based on certain general criteria such as:
(i) Area of the space within the building: This should be adequate to cope
with the expected number of customers, and the range of services to
be offered in the short as well as the long run.
(ii) Suitability: Each planned area in terms of design of equipment,
furniture, fittings, structure, surfaces, etc. should be ergonomically
suitable for use by staff and customers. At the same time it should
provide an efficient, comfortable and safe working and dining
environment. It is at the layout and design stage that maximum
utilisation of areas need to be considered, in the light of predetermined
objectives.
(iii) Control system : Each part of the premises must provide the means for
a built in control system. In the case of food services, it amounts to
watching relevant areas and instituting methods of control at receiving,
production, service and storage points. This includes attention to
equipment in terms of the space available and its safety in operation.
(iv) Economy in operation: Control of operating and maintenance costs is
important in all areas and for all equipment installed. These costs can
be minimised by reducing man hours required for operation by
installing devices for routine jobs. The concept of multiuse areas and
equipment in food services is important to utilise money spent on
premises wisely.
(v) Flexibility : If installations and spaces are designed for flexibility, smaller
are as are required for a number of different activities. Also, fewer
equipment need to be purchased if they are multiuse pieces.

Notes (vi) Durability : The durability of materials and equipment naturally makes
the money go further than if replacements are necessary early.
(vii) Continuity: This implies continuity in the use of areas, equipment and
materials within an establishment. Any underutilisation of these
resources amounts to wastage.
(viii) Efficiency : This can be judged on the basis of how quickly after the
investments made, can the establishment pay it back with interest
which has accrued.
(ix) Safety: This is a prime consideration when making investment decisions,
and investing borrowed money.
Practically all these criteria have been discussed under separate units dealing
with areas, equipment, financial aspects and safety. However, a constant review
or evaluation is necessary to ensure that investments made in food service are
producing the expected returns. This is because the success of catering operations
depends to a large extent on the customers, and a changing environment. Once
the profit areas are identified more money can be spent on them and withdraw,
from less profitable areas.
SPACE
Space being the most expensive resource requires thought for building upon it.
The aim should be to utilise every square centimeter effectively. Spaces for
food services may be acquired through auction, hire purchase methods, direct
purchase of land or building, as considered suitable. In an existing building,
spaces may be renovated to provide arrangements of work areas with equipment
so placed as to establish a smooth work flow. The environment should also
congenial and comfortable to work in.
MATERIALS
The materials commonly used in a catering establishment are food materials,
table limen appointments, kitchen cloths and cleaning materials.
Food Materials
These vary from perishable fruits and vegetables, milk and meat to longer lasting
grains, pulses and water. In addition, a wide variety of processed, packaged
foods may be used depending on the nature of the establishment, the menu,
and establishment policy concerning cooking, serving and buying methods.
When purchasing food materials the points to consider for maximum utility
are:
(a) Buy seasonal foods as they are cheapest in season and also contain
maximum flavour, colour and nutrients.
(b) Consider percentage of edible portion when buying. Notes

(c) Match quality, variety and the pack of food material to the end use for
which it is purchased. For example, the more expensive long grain
rice is suitable for those dishes in which the grain of the rice is visible
when served and adds to the appearance of the dish. For dishes such
as rice puddings or fermented products of rice like idle, and dosa, the
cheaper broken rice would give equally good results. It may be argued,
that the flavour of long grain rice is better, but this can also be obtained
from broken rice of the same aromatic variety. Again, there is no point
in buying a bag of 100 kg bread flour when a canteen usually buys
bread from the market, making fruit bun only occasionally.
(d) Match quantity purchased to storage area and type of storage (dry or
cold). Also buy quantities in relation to the turnover of the food
materials, that is its rate of usage.
(e) Relate purchase lists strictly to the menu and vice versa, especially
when perishable commodities are purchased.
In general, food materials are best utilised when loss is prevented during
receiving, storage, preparation, cooking, service and clearing. Indications of
inadequate utilisation are excessive plate waste, insufficient food to meet the
demand, excessive leftovers, a drop in demand and so on. Any efforts to prevent
these can lead to better utilisation. Even water which is taken for granted needs
to be used efficiently. Managers need to be in touch with the latest technology
to save this resource. An electronic water tap which has no knobs or pedals is
an interesting and useful device. It is controlled by an electronic photo cell. To
obtain water, one has just to place hands to other objects under the tap. On
removal the water flow stops automatically. The tap is also equipped with mixers
to regulate the temperature of the water. Nearly 85 per cent saving in water
consumption has been reported by this device. The taps do not require any
maintenance as they do not leak or drip. The taps are powered by an AC current
of 220 volts (V) and 50 Hertz (Hz) and the body is shock proof and fire resistent.
Cleaning Materials
Cleaning materials are easily wasted especially in large establishments because
they are not the focus of attention of surpervisors. What is noticed is a clean
kitchen, piece of equipment, a surface or a clean plate or table linen. Without
doubt use of extra detergent in washing and cleaning will produce a clean effect,
but so does using just enough. Excess use is not only damaging to the equipment
but also to the bank balance of the establishment. Control in this area, though
difficult, is essential. More attention to training people in the use of measures

Notes for detergents in terms of cups per sink of water or table spoon per wash can
lead to drastic changes in profitability.
For floor cleaning the caps of detergent containers to a bucket of water is
easier for a utility worker to follow than milliliters of phenyl, for instance. Thus,
practical methods of control need to be worked out for individual
establishments, depending on the methods of cleaning used and the type and
volume of cleaning required for utensils, crockery, cutlery, table tops and
equipment.
In general, multipurpose cleaners are cheaper to buy and easier to use for a
number of different surfaces and utensils, instead of a different detergent for
equipment, surfaces, utensils, crockery and so on. At most, two types of
detergents and one disinfectant may be used in any establishment.
Cleaning materials also include mopping buckets, mops and brooms. With
a grater range being marketed everyday the prices vary a great deal, but utility
and not the price should be the criteria for selection. Sometimes cheaper products
clean just as well as the more expensive ones, which are priced higher because
of higher overhead costs or a trade name. It is therefore wrong policy to relate
price to cleaning quality. Any materials or cleaning equipment should be
weighted in terms of its useful parts and not the quality of its handle or
accessories. The ease of replacement of used parts and durability is also an
important feature to be considered. Sometimes the most simple broom and a
mop cloth may be the best choice, because they eliminate maintenance costs
and time in repair, since they are discarded when worm out and replaced at
very low costs, quite easily.
While cleanliness is a vital part of every activity in a food service,
sophistication in cleaning equipment should be the least important unless its
utility far outweighs its costs of maintenance and storage. Small establishments
with which we are mostly concerned can ill afford the facilities of cleaning
firms which are now developing, and would do best to resort to buying simple,
easy to use equipment. Also, utility workers employed for cleaning jobs in small
establishments are generally low paid, not so literate and are untrained in so
far as following written instructions or handling unfamiliar equipment is
concerned. Good management demands that even the so called common sense
jobs be demonstrated to staff because they can learn better by imitation rather
than through formal methods of communication. This is particularly so with
methods of cleaning various types of materials, because among staff who are
handling cleaning jobs, common sense is really not so common as is assumed.
The maximum utility of cleaning materials therefore, listen establishing
correct methods of cleaning, choosing simple, familiar, low cost equipment,

using multipurpose detergents and avoiding wastage by buying packs in sizes Notes
required for a month or more depending on establishment needs, and finally
storing well.
Table Ware
The next group of materials needed in food service is table ware such as linen
and appointments. Linen includes kitchen cloths, dusters and table linen. The
former are required to be sterilized by boiling for half an hour in detergent
water, rinsing out the detergent and drying for reuse. Since these cloths need to
be changed everyday, the most efficient way to utilise them is to distribute two
dusters and a kitchen cloth to each staff member working in kitchens and serving
areas, so that they are responsible for them, and use their own cloths for their
work only. Replacements are then necessary only when pieces are put out of
use. In larger establishments however, each day’s used cloths are centrally
laundered and fresh issues made each morning.
Use of table linen however, is fast being replaced by easy clean materials or
disposable. Most cafeterias, coffee shops and even restaurants now use plastic
coated tablemats, or disposable paper mats, to offset the high laundering costs
of linen. In school, college and office lunchrooms tray service eliminates the
need for any tablemats or linen, the tray acting as the cover for the place setting.
In most food services where self service is prevalent, paper napkins are now
provided to avoid laundry expenses.
EQUIPMENT
These have been discussed with relevance to optimum utilisaton of this resource.
It would suffice here to mention that equipment are expensive and if they remain
unused for most of the working day in any area of use, they become uneconomic.
Another factor to be considered when investing on equipment is to ensure
that its installation and utility outweigh the cost of labour which would be
required to do the job if the equipment was not installed.
For maximising use of equipment therefore, its selection must be made on
the basis of:
(a) Lower labour cost.
(b) Making monotonous jobs quicker and easier.
(c) Making the environment more attractive and clean.
(d) Higher staff morale.
(e) Providing a means of adding interest to jobs and increasing the avenues
for job and staff development.

Notes (f) Increasing production capacity within the limited spaces available.
(g) Having multiuses so that the equipment does not lie idle for too long.
Every catering manager must think in terms of modular equipment, mobility
to provide flexibility of arrangement and use to make investment on this resource
worthwhile.
STAFF
Catering establishments being service oriented are totally dependent on the
skills and motivations of their staff, and their willingness to make the
establishment succeed. No amount of mechanisation can give that personal
touch to food which the production staff can, or replace the smile so necessary
to lure customers to a food service.
Staff in food service establishments are at various levels of literacy, and
possess little to highly specialised skills according to the needs of various tasks
involved in food production and service. Getting the most out of people at
work, and making their individuals tasks and goals fit well into those of the
establishment and the customer’s is a difficult but challenging job for every
catering manager. This is because people behave and react to situations and
other people in many different ways. Maximum utilisation of staff therefore,
depends on a thorough understanding of the needs of people, through
establishing an effective communication system.
Maslow’s need hierarchy is well established as the basis for judging what
needs of individuals are satisfied at each level of the organisation and what
remain to be fulfilled. Further, studies of the behaviour of people at work in the
60’s and 70’s led to the formation of Herzberg’s ‘hygiene-motivation’ theory
which categorised factors in the environment as ‘hygiene’ factors, responsible
for making people at work comfortable, but not motivating them enough to
increase their efforts. He classed only those factors as motivators which were
related to people’s recognition, status and self development and called them
‘satisfiers’. It is the latter that could in Herzberg’s observations, increase
productivity. In the 80’s, however, Norman MacQueen challenged Herzberg’s
theory saying “that it least applies to the people management most wants to
motivate, that is, those with monotonous, repetitive, uninteresting jobs.” And
some jobs in catering precisely fit this description.
While Herzberg’s his ideas of making jobs were interesting and satisfying
in order to motivate people to work better are logical, they apply only to those
jobs which can be easily redesigned and enriched. In catering establishments,

the work of the person washing dishes can be thought of as being enriched by Notes
the provision of dish washing machine today, but will this make him perform
more or better? He will, in fact, be working less and getting more idle time,
perhaps even being demoralised at being gradually made redundant. There is
evidence that many workers do not care whether their jobs are enriched or not,
and these are usually the semi or unskilled people. Argyris believed that with
time people developed a pathy towards jobs and did not expect satisfaction
from their work. In fact a number of studies suggest that work is done for money,
while pleasures and satisfaction are sought outside the work environment as
far as staff at operative levels are concerned. In such cases, to get better
performance, more attention of managers would be required to provide
equipment which helps to do more in less time, leaving the worker more free
time to be trained for better techniques. Further, overtime payments can be
reduced, leading to a lower labour cost.
Skilled staff at operative levels, such as, the head cook or chef perhaps find
it already satisfying to order people around in the kitchen, show his skills in
food preparations and presentation to superiors, customers and so on. Their
jobs can be enriched further by providing greater opportunities to show their
skills through function catering, in addition to normal routine work. They may
also be taught skills of menu planning, maintaining kitchen records, etc. to
increase their potential and usefulness.
Managers therefore need to motivate their human resources to an extent
that will automatically make people perform their best. They can cash in on the
fact that although the higher needs of lower level workers are satisfied mostly
outside their work environment, they can still be attached to their work.
Managers need therefore to ensure that the basic conditions of comfort are
provided at work and an atmosphere where cordial social interaction is possible
while at work or rest. The social factors affecting worker behaviour and attitudes
cannot be underrated.
In catering, the two major costs when calculated as percentages of average
sales are raw materials and labour. Quoting from a study these amount to 38
and 40 per cent respectively, the remaining 22 per cent being distributed between
overheads, rent and profit. Such high labour costs indicate that staff productivity
is not optimised. In order to utilise people’s potential to the maximum, it is
imperative to plan every stage of production carefully, in order to minimise
idle time of staff. It stands to reason that if people receive ingredients and
instructions in time, have the right equipment in working order for the job,
have a comfortable working environment, and a friendly atmosphere, they are
likely to do their best. This is of course, possible only if the staff have the right
skills for the job.
Notes Another point which is closely linked with higher productivity and better
performance is training of staff to acquire special skills needed to operate new
machinery or adapt to change. According to Peter Mitchell the policy of
multiskilling staff instead of making them specialists, increases performance.
Apart from using up idle time from one task for doing something else, people
equipped with a range of skills also help to breakdown the formal relationships
created by a hierarchical organisation structure. Another great advantage is
that internal promotions can become the policy if greater motivation to staff is
provided to improve their skills, at the same time this would reduce the high
rates of labour turnover in the long run, which are known to sap the efficiency
in the catering industry.
Reason for staff turnover
Low pay
92%
Unsociable shifts 85%
Long work hours

72%
Lack of prospects 57%
No accomodation
57%
Travel difficulties 38%

Lack of job security 26%
Lack of job variety 26%
Unsuited to teamwork 22%
Poor work conditions 16%
No formal training 16%
Varying pay packet 15%
Unpleasant workplace 7%
No union presence 6%
0% 20% 40% 60% 80% 100%
Fig. 29: Causes of staff turnover in catering establishments.

More often than not, labour turnover is accepted as a norm by some
managers, in which case it is a reflection of poor staff management rather than
the instability of staff, and their unwillingness to stay on the job. The reasons
for staff turnover are indicated in Fig. 29. With more attention to the principles
of organisation and management therefore, staff turnover can be reduced and
consequently costs and apathy too. Some methods of reducing labour turnover
are:
(i) Good pay. Notes

(ii) Favourable conditions of work.
(iii) Demonstrating how each person’s work forms a useful component of
the total goal.
(iv) Participation in decisions which affect individual jobs.
(v) Taking care of people through employee welfare schemes.
(vi) Creating a sense of belonging.
To get the best out of staff therefore, it is important to:
(i) Integrate staff goals with organisational goals.
(ii) Develop good relations with people.
(iii) Look for what each person does right and be there to praise him.
(iv) Be understanding, reprimand only when a mistake is made without
holding it against the person.
(v) Establish a good recruitment policy so that staff employed are the
staying type. It is common experience that younger people leave jobs
quickly and more often than middle aged people with experience.
(vi) Set and example of expected behaviour, because people learn more
easily by imitation. For example, a hard working, punctual and
dedicated manager tends to nurture a team of workers who follow the
same standards in their work. Managing staff well means being one
with them, and yet not interfering in their work.
Time
All work, whatever, its nature, is required to be performed within a restricted
period of time. In the catering field where food has to be served at particular
times, the pressures build up for staff in kitchens, service and clearing areas,
from time to time. Often manages and supervisors have to work long hours to
have plans and schedules for jobs ready in advance to enable work to flow as
smoothly as possible.
Because of the peaks and troughs of activity which characterise catering
operations, a lot of this valuable resource gets wasted, at different points in the
production and service cycle. To avoid this it is important to analyse each
person’s work to determine how well or otherwise time is being utilised. Philip
E. Atkinson has suggested that a way to collect data on time utilisation is to
maintain a diary of “time log” in which details are recorded showing how time
was utilised, by whom, what was the desirable result and any comment on the
achievement in that time period against what the objectives for the period were.

Notes This could be recorded at regular half or one hour intervals. An accurate record
helps to focus attention on time periods which were used inadequately, and
during which useful activities could be performed. If the information has been
recorded accurately, an analysis will show the amount of time which may have
been spent on:
(i) Waiting for ingredients, instructions, equipment, maintenance or just
looking out of the window between feeding the grating machine and
putting the next lot into it.
(ii) Doing other people’s jobs because they are absent, or incapable of
handling their work load, or simply because of a friendly gesture to a
newcomer.
(iii) Doing routine non creative jobs feeding potatoes into a peeling or
chipping machine.
It is surprising how much can come to the surface if each detail is recorded
and analysed. Very often staff time is spent doing things they like to do rather
than on what they ought to be doing. Sometimes one person has too much to do
while others have idle time because of faulty scheduling.
This may also be due to some people being faster than others at work, but
then each person’s potential would need to be utilised to the maximum possible.
Managers can thus use analysed information to adjust job distribution or
content to minimise idle time, build creativity into work by minimising
routineness of jobs through job rotation. This will also enable staff potential in
particular job positions to be identified and encouraged.
When there is recorded evidence of time being wasted staff may be involved
in presenting suggestions for improvement of time utilization. It is well worth
remembering that if a material resource is only half used, the rest can still be
used another time, but time wasted is gone and with it the money spent on it
too. This resource must therefore never be wasted. As Benjamin Franklin once
said:
“.......do not squander time for it is the stuff that life is made of.” Once time
wasting areas have been pinpointed after a thorough analysis of each person’s
job, decisions regarding their future use can be made. For the manager these
may involve:
(i) A change in management style if too much control and unnecessary
interference in routine activities has led to a disinterested work force
who idles away productive time deliberately.
(ii) Delegation of simple tasks giving greater attention to planning and
organisation.
(iii) Periodic revaluation of goals to eliminate activities which are no more
necessary.
(iv) Determining training needs and planning them to train staff when Notes
required.
(v) Making time and activity plans for each type of job, to give a clear idea
of what is expected of people on their jobs.
Time is one factor which is equally distributed to all people (24 hours a
day) irrespective of their educational background, skills and nature of job. But,
as Krishnan and Agnihotry have aptly stated : “....most of us spend the better
part of our lives, not knowing where we want to go and the rest of our lives in
extricating ourselves from a self-woven web of confusion.”
So a lot of wasted time at operative or production and service levels can be
attributed to management inefficiency either in goal setting or communicating
goals to people. Fortunately, time analysis is simpler at the physical activity
level and conditions can be improved through measurements, recording and
analysis, and consequent correction of inefficiencies. But, as one goes to line,
middle and top management levels, the physical activity related to production
and service is gradually replaced by mental activity and assessing this for time
utilisation is not an easy task. In some cases, time seems short because there is
no proper delegation of responsibilities, so there is genuinely too much to do in
target time. In other cases, it is simply inefficiently used time which could be
corrected to provide greater relaxation, and better output. To maximise utility
of time managers need to:
(a) Set clear cut goals and plan out work sequences in detail.
(b) Trust colleagues and delegate work to subordinates.
(c) Get priorities right to that the most important work is done first and
the rest in descending order of importance. This ensure that work which
cannot be completed would not matter very much at the end of the
day, or could easily be taken up first thing next morning without
affecting the work of others.
(d) Develop an easy management style so that people gain confidence in
the plan of action laid out for them. Also any work plan which has the
participation of those involved in the work helps better commitment
to plans and improved performance in target time.
(e) Schedule work among employees so that their skills are best utilised.
Much time gets wasted when there is too little to do, too much secrecy
leading to an unwillingness to delegate work, fear of making mistakes or wrong
decisions, too much unnecessary paper work and its storage, too many
interruptions through telephone calls, unscheduled visitors, lack of information
and poor communication.

Notes Some causes of time wasting in kitchens and service areas, are;
(i) Reaching late to work to subordinates.
(ii) Not having production plans in advance.
(iii) Ingredients not requisitioned in time to start work immediately on
arrival.
(iv) Ingredients out of stock because of late ordering or non-availability
for some reason.
(v) Equipment not well maintained or not right for the job. For instance,
even a small kitchen tool like a kitchen knife, if not sharp enough, will
take longer to cut and also require more energy, for cutting meat or
vegetables than a well sharpened knife.
(vi) Conditions of temperature and humidity in working areas being
ignored leading to lethargy and slower movement at work. Poor
lighting and ventilation are also contributory factors.
(vii) Improperly planned spaces and work centres.
(viii) Not enough motivation or drive to work.
(ix) Some problem within the family or at work, either medical, social or
psychological.
(x) Ignorance of how the job is to be done.
(xi) Fear of annoying superiors.
(xii) Laziness as a personality trait.
(xiii) Autocratic leadership with excessive supervision and interference in
the work.
(xiv) Kitchens too large, leading to much travel time between work centres.
(xv) Too many bosses, leading to confusion about what is to be done and
how.
(xvi) Socialising at work, because of lack of loyalty to the organisation or
lack of devotion to duty.
Through a critical time analysis of production, service and management
styles therefore, it is possible to control time wasting activities, and save this
valuable resource for constructive, planned action and achievement.
Energy
In any discussion of energy it is important to distinguish between the fuel sources
used in food services and human effort (energy). Until recently this resource
was available in plenty and people did not even think of saving coal, oil or

wood which was commonly used for cooking purposes. In remote areas the Notes
powdered coal which remained after the large pieces were used up, was mixed
with cowdung made into cakes or balls and sun dried for lighting kitchen fires.
This does indicate that in areas where sources of fuel were in short supply,
there was an in built tendency to use every bit of it either as such, or after
recycling it. In shorter, saving sources of energy is a habit more than something
that can be taught, although bringing about a change in attitude towards
conservation is more feasible when the supplies are dwindling. It is a fact that
people’s awareness regarding every saving gets enchanced when the prices of
fuels being used rise beyond their means or when there is none available in the
market.
Today the situation is one of high prices, shortages and sometimes even
non-availability. This statement holds good for both fuels as well as for catering
staff or human effort. Although the latter are available in plenty in the job market,
they prefer to choose jobs which require less effort. This is so also with the
people who are educated in colleges and universities who aim at management
positions straightaway. These with no basic education at all tend to be rejected
by the industry or are low paid. Therefore, it is a great challenge for food service
institutions to utilise the skills and effort of existing staff to the maximum
because, skilled persons would be available only at a substantial price if they
have to be recruited and selected too often and then trained to suit requirements.
Thus, to make full use of our energy resources, it is important to stop wasting
them.
An indication of good utilisation of fuel is evident from the overhead
expenses of an establishment. The first step in any effort to save fuel in kitchens
and service areas is to make staff aware of the costs involved, in concrete terms.
This can only be done if action is taken to have separate bills for the kitchen and
service areas. The area of wastage can then be identified and further analysed
for points of leakage or careless use. This can then be followed up and methods
evolved to prevent the loss. Some ways in which fuel energy is wasted in kitchens
are:
(a) Keeping ovens, stoves or grills switched on much before they are
required for use.
(b) Sometimes cooking range tops are left switched on by mistake when
the fuel being burnt is not visible, such as in equipment with solid
tops in which a radiant filament is not visible.
(c) Fuel may be wasted if equipment is lighted for full heat irrespective of
the size of the container in which the cooking is done.
(d) When the temperature of cooking is higher than is necessary for a
Notes particular food, wastage takes place. This is also true for extended
periods of cooking, which may not be required.
(e Foods cooked straight from the freezer without thawing use up more
fuel than if thawed in advance.
(f) Non-seasonal foods take longer to cook and therefore consume more
fuel than seasonal vegetables, or tender cuts of meat and so on.
(g) Methods of cooking involving preparation of food long before the time
of service, require food to be held hot for longer periods. Besides
affecting food quality fuel bills go up.
(h) Use of high wattage bulbs in areas where lesser light can do.
(i) Keeping exhaust fans running when kitchens and service areas are not
being used.
(j) Using colours on walls and ceilings, and materials which absorb light
instead of reflecting it back for good visibility. This leads to the necessity
of providing artificial lighting involving the use of electricity, which
could otherwise have been saved.
Once the reasons for the high costs of fuel have been established it is possible
to improve the situation and bring down costs to the benefit of both the
establishment and the customers. The staff also stand to gain because lower
costs and higher productivity mean extra bonuses for them. So far factors
affecting fuel energy conservation have been discussed. A look into areas where
human effort may be wasted is worthwhile even though the work of people
cannot be so closely and objectively monitored as that of physical structural
arrangement and equipment. A brief resume of the factors which may affect
the amount of energy people waste at work will help as a guideline for necessary
action in any programme involving its conservation. These factors are:
(a) Ill planned layouts involving extra movement while working, or strain
in the performance of certain actions.
(b) Uncomfortable working conditions leading to slow movements, and
fatigue.
(c) Poorly scheduled work and time of staff.
(d) Poor health of employees making them feel run down, and more prone
to frequent sickness and accidents.
(e) Aggressive behaviour as a personality trait through which a lot of
energy which could be utilised productively gets wasted in destructive
activity.
(f) Poor surpervision leading to wrong methods of working, using up
extra effort and time.
(g) Emergencies where a lot of energy is wasted in panic, fear and anger. Notes
(h) Leadership style which generates fear, anxiety and lack of confidence
in people at work.
There is no doubt then, that time and energy need to be conserved for
efficient use. Time, if lost, never returns although energy can be regenerated
but only at the cost of more energy which is required for the purpose. As far as
people are concerned labour costs also go up because lost time and energy
have to be conserve energy should also help to save time as well, leading to
greater efficiency. It would therefore be appropriate to list out the possible ways
of saving time and energy in a food service establishment. Some suggestions
are:
(a) Use of thermostats to control temperatures so that higher than necessary
temperatures are not used for cooking, holding or storing food.
(b) Using the right size of pans for the quantities being prepared, so that
fuel is not wasted in heating up larger vessels.
(c) Heating elements and range tops should be switched off when not
required. The hot plates may be switched off a few minutes before the
food is done as it retains heat for some time after it is turned off.
Experience with cooking of various dishes enables kitchen staff to judge
fairly accurately which food will need to be kept on the source of fuel
longer than others. It is now possible to manufacture pan sensing
devices which automatically switch off the fuel source when the pan
is lifted from the cooking range. Similarly, warning bells are used to
remind staff that a dish in the oven has to be checked. In some cases
warning lights may be used.
(d) Arrangement of work centres to avoid extra movements.
(e) Efforts to recycle heat given off from kitchens for purposes of raising
the temperature of washing water would conserve lot of fuel.
(f) Arrangement of refrigerators away from kitchens would require less
electricity to run them efficiently. Also, condensers of cooling
equipment should never face the wall, because the heat released has
no outlet and tend to raise the temperature of he environment unduly.
Every establishment may find something to add to this list after evaluating
their work areas for resource use, because the factor covered are only a guideline
from which to proceed. What is important is the awareness of the fact
that resources are always limited, because wants are unlimited, and therefore
the ‘best’ way to use them should be discovered for each individual
establishment.

Notes Procedures
Procedures refer to the methods followed in preforming tasks. These have
already been referred to under ‘Task Analysis’. In large quantity food production
and service, certain techniques need to be developed which make work easier
and quicker to perform,.
The aim of every food service unit should be to follow correct procedures
for every job so that the results may be consistent in terms of quality, quantity
and time and energy consumption.
Some points to pay special attention to while preparing foods for service:
(i) Collect all equipment and ingredients required before starting work
to save extra steps.
(ii) Light burners only after all the ingredients are ready for cooking and
pans have been placed in position for heating.
(iii) Extinguish idle flames at once between cooking one item and another.
(iv) Once boiling starts reduce the flame no maintain at boiling temperature.
This results in a fuel saving of nearly 30 per cent.
(v) The size of the burner or flame should be proportionate to the utensil
placed on it. Smaller burners consume 5-6 per cent less fuel, and should
be made use of when preparing small quantities of food.
(vi) Minimum amount of water should be used for cooking to conserve
resources.
(vii) Soak whole cereals and pulses to soften them before cooking to reduce
cooking time and fuel.
(viii) Soak all used utensils immediately after use for quick and easy cleaning.
This procedure reduces the quantity of detergent required as well as
effort in cleaning.
(ix) Coating of undissolved salts on the insides of boiling or steaming
equipment increases fuel consumption. A good procedure to follow is
to clean such equipment regularly with a scrubber to prevent deposits
from accumulating in the equipment.
(x) When holding foods hot for service, the best procedure to follow is to
preheat the holding equipment before placing the foods in the brain
marine or hot case. If hot foods are placed in a cold holding equipment
the fall and rise of temperature not only affects the quality of the food,
but more fuel is required to reheat the food.
(xi) Minimising the number of utensils used in cooking saves energy in
washing. This can be done by using pressure steamers or cookers, which
can be used for processing a number of items one after the other before Notes
washing it. This can also be done by cutting fruits, for instance, straight
into the bowls in which the fruit salad is going to be served.
(xii) Use of labour saving devices cuts down on effort if planned properly.
It is clear therefore that effective utilisation of resources is simply a matter
of good planning, organisation, and control in short that is effective management.

Notes
Unit IV
5 MANAGEMENT PHILOSOPHY
DEVELOPMENT OF MANAGEMENT THOUGHT

Although the systematic hotel management has a recent origin, the practice of
management is as old as human society. Human beings, being gregarious in
nature; have been living in groups since the very beginning. The history of
human beings is full of evidence of organisational activity that indicates
knowledge of many of the ideas later expressed by the pioneers of scientific
management. However, the study of how managers achieve the results is
predominantly a twentieth century phenomenon. In early stages, the
management study could not be developed because of low esteems to business
in the society, indifferent approach of economists, political scientists, and
sociologists towards business organisations, treatment of management as an
art not a science, and the attitudes that managers were born, not made. These
factors created the situation where the need for the systematic study of
management was not felt. In the twentieth century, the situations changed
rapidly. The following factors in particular have contributed to the need for
management development in the present era:
1. Impact of World Wars: Two World Wars, first from 1914 to 1919 and
second from 1939 to 1944 demanded the factors of production to work
harmoniously and with efficiency. This needed efficient management
to handle group activities effectively, Great depression (1929-1933) that
followed the first world war and New Deal that followed the second
world war demanded more emphasis on the effective utilisation of
resources. In fact, the wars created a gap in technical and managerial
knowledge. The best talents were taken for war purposes and the
technological innovations which took place for facing war effectively
extended this gap. To fill up this gap, there was a need to develop
some principles which could be applied to manage organisations
effectively.
2. Growing Competition: In recent years, there has been world-wide
rivalry for markets, power, and progress. (i) the increasingly severe
MANAGEMENT PHILOSOPHY
competition has come from such factors as if technological innovations Notes

and their dissemination, (ii) the increase in capital investments,
(iii) freedom at national and international markets, (iv) buyers
sovereignty in the markets, and (v) increasing obsolescence because of
rapid technological changes. This severe competition has forced
organisations to be efficient and to find out ways for efficiency.
3. Complexities of Hotel Business: Our society is becoming more
complex day to day. Today hotel business activites or for that matter,
any organized.
PRE-SCIENTIFIC MANAGEMENT
Though Frederic W. Taylor is known as the founder of scientific management,
many persons before him made considerable contribution to the development
of management thought. Prominent among them were James Watt and Boulton,
Owen, Babbage, Poor, and Towne. Their main contributions are as follows:
1. James Waft and Boulton: These two men took charge of the
management of the Soho Engineering Foundry when it was established
in 1795 in Great Britain. Watt was incharge of organisation and
administration and Boulton was responsible for the sales or commercial
activities. They developed many management techniques. Prominent
among them were market research and forecasting in marketing area:
planned machine layout in terms of work-flow requirements,
production planning, production process standards, and
standardisation of product components in production area; calculation
of cost and profit for each machine and department in costing area;
training and development of workers and executive, work study and
payment by results, welfare programme and constitution of a
committee to administer it in personnel area.
2. Robert Owen: He carried out most of his experiments in the area of
Personnel management when he was engaged in managing the textile
mills in Scotland between 1800 and 1828. Owen improved working
conditions in the factory; provided meals to employees in the factory,
provided housing and marketing store facilities to the employees. His
main philosophy was that good personnel management paid dividends
to the employer and it was an essential part of every manager.
3. Charles Babbage: Babbage was a professor of Mathematics at
Cambridge University (1828-29) and took keen interest in the problems
of manufacturing operations. He is best remembered for his work ‘On
the Economy of Machinery and Manufactures’ published in 1832. He
was especially interested in the economics of division of labour and
Notes development of scientific principles to govern a manager’s use of

facilities, materials and labour to get the best possible results. He
advocated division of labour not only for manual operations but for
mental activitiesas well. He also emphasised human relations aspect
in the workshop and argued for mutuality of interest between the
labour and owner and profit sharing scheme. Thus, his contribution
was mainly in the area of costing, engineering, and wage and incentive
systems.
4. Henry Varnum Poor: He was editor of American Railtoad Journal in the
latter half of the nineteenth century. While on this position he watched
and analysed the progress of American railroad system. He visualised
the scope for effective management to bring the railroad in the right
direction. He gave many recommendations many of which might be
termed as most modern. He felt the need for a managerial system with
a clear organisation structure in which people have clear responsibility
and can be held accountable. He emphasised the need for clear
communication and operating reports summarising the costs, revenues,
and rates. He also cautioned against the danger of over systematization
find to overcome this here commended feeling of unity, appreciation
of work.
5. Wren has written about him that long before Frederic co-operation of
management and labour to accomplish work in accordance with
scientific method; and a more equal division of responsibility between
managers and workers.
Taylor has emphasised that these are the mechanisms of management, and
the mechanisms of management must not be mistaken for its essence, or
underlying philosophy. Taylor also adopted ‘differential piece-rate plan’ to
motivate workers for higher efficiency. According to this plan, high wage rates
were provided to workers performing least standard work, and lower wage
rates to workers achieving less than standard work with no guarantee of
minimum wage. Later, he integrated his ideas in his classic ‘The Principles of
Scientific Management’ which was published in 1911. The analysis of whole
contributions of Taylor may now be presented in the form of principles of
scientific management as below.
PRINCIPLES OF SCIENTIFIC MANAGEMENT

1. Separation of Planning and Doing: Before Taylor’s scientific
management, a worker himself used to decide how he had to work
and what instruments were necessary. Thus, he planned his work also,
and there was gang boss to supervise his work. Taylor has emphasised
that planning function should be separated from actual performance Notes

and should be given to specialists.
2. Functional Workmanship: Taylor has evolved functional
workmanship to Supervise and giving various directions. In this system
eight persons are involved to direct the activities of workers.
Out of these, four persons (i) route clerk, (ii) instruction card clerk, iii)
time and cost clerk, and (iv) diciplinarian are related with planning
function and the remaining four (a) speed boss, (b) inspector, (c)
maintenance and (d) gang boss are concerned with operating function.
This is totally against the principle of unity of command as shown in
the following chart;
W o rk sh o p M an a g e r
P la n n in g In ch a rg e P rod u c tion In c h a rg e
R o u te In s tru c tio n T im e D is c ip li- Speed G ang

In s p e c to r M anager
C le rk C a rd C le rk C o s t C le rk n a rian Boss Post
W o rk er
Fig. 1: Functional Foremanship.
3. Job Analysis: There, is one best way of doing a job which requires
least movements, consequently less time and cost. In every industry;
this way should be determined which involves time, motion, and
fatigue study
(i) Time study. Time study involves the determination of time
movements take to complete. The movement which takes
minimum time is the best. This helps in determining fair work for
a particular period.
(ii) Motion study. Motion study involves the study of movements in
parts which are involved in doing a job and thereby eliminating
the wasteful movements and performing only necessary
movements. This helps in reducing the fatigue of workers.

Notes (iii) Fatigue study. This indicates that the workers feel fatigued after
putting in work for a certain period and they are not able to do the
work at their full capacity. Thus, they should be provided
appropriate rest at appropriate intervals. The fatigue study shows
the time and frequency of rest.
4. Standardisation: Standardisation is to be maintained in respect of
instruments and tools, period of work, amount of work, working
conditions, cost of production, etc. These things should be fixed in
advance on the basis of various experiments.
5. Scientific Selection and Training: Selection of workers should be on
scientific basis, and their education, experience, aptitude, physical
strength, etc., should be adequately considered. A worker should be
given work for which he is physically and technically most suitable.
Training should be provided to workers to make them more efficient.
6. Financial Incentives: Workers can be motivated by financial incentives.
If provision exists to earn higher wages by putting higher efficiency,
workers will put more work. Taylor himself applied differential piece
rate system which is of a highly motivating nature. The wage should
be based on individual performance and on the position which he
occupies. The rate should be fixed on accurate knowledge and not on
estimate’s.
7. Economy: While applying scientific management, not only scientific
and technical aspects should be considered but adequate consideration
should be given to profit and economy. For this purpose techniques of
cost estimates and control should be adopted.
8. Bilateral Mental Revolution: Scientific management depends upon
the, co-operation between management and workers. For this co-
operation, there should be a mental change in both parties from conflict
to cooperation. Taylor feels that this is the most important factor in
executing scientific management.
OPERATIONAL MANAGEMENT
Taylor and his Lieutenants were primarily concerned with problems at the
operating level, and did not emphasise managerial organisation and processe.
It was Henry Fayol who, for the first time, studied the functions and principles
of management in a systematic manner. Besides, notable contributions have
been made by Oliver Sheldon, Haldane, Luther, Gullick, Mooney and Reiley,

Urwick, and many others. These theorists viewed the central problem as being Notes
one where there must be identification of tasks necessary for achieving the
general purpose of the organisation and of the grouping to take place to fulfill
these functions most effectively. Perhaps, the real father of modern operational
management theory is Henry Fayol. He was a French mining engineer, who
after obtaining engineering· degree joined a French coal firm as technician in
1880. He later became its chief executive and retired in 1918 from the firm. Up
to his death (December, 1925) he was engaged in French managerial revolutions.
In 1916, he published his famous book in French language Admiizistration
Industrielle et Generale. It was reprinted several time in French, but its English
translation was available only in 1929, much after his death; and very few copies
were made available outside Great Britain In fact in the U.S.A., where most of
the management contributions were made, available only in 1949 as General
and Industrial Administration.
Fayol observed the organisational functioning from manager’s point of view.
He found that all activities of the organisation could be divided into six groups;
1. Technical (relating to production);
2. Commercial (buying, selling, and exchange, services);
3. Financial (search for capital and its optimum use);
4. Security (protection of property and person)
5. Accounting (including, statistics; and
6. Managerial (planning, organisation, command, coordination . and
control).
He points out that these activities exist in every organisation. He further
observes that first five activities are well known to a manager and consequently
has devoted most of his book to analyse managerial activities.
Fayol has divided his approach of studying management in three parts:
(A) Managerial qualities and training,
(B) General principles of management, and
(C) Elements of management.
A. Managerial Qualities and Training

Henry Fayol was the first person to identify the various qualities for a manager.
According to him these qualities are:
(i) Physical (health, vigour, and address);
(ii) Mental (ability to understand and learn, judgment, mental vigour, and
adaptability);
Notes (iii) Moral (energy, firmness, initiative, loyalty, tact and dignity);
(iv) Educational (acquaintance with matters related to general functioning);
(v) Technical (acquaintance with the functions being performed); and
(vi) Experience (arising from the work).
B. Principles of Management
Fayol has given the fourteen principles of management. According to him, the
list is not exhaustive, but he had tried to describe only those which he had to
follow at most occasions. Though he has given these principles, he has
emphasised flexibility in these. According to him, ‘There is nothing rigid or
absolute in management affairs, it is all a question of proportion therefore,
principles are flexible and capable of adoption to every need. It is a matter of
knowing how to make use of them, which is a difficult art requiring intelligence,
experience, and proportion.
These principles are as follows :
1. Division of Work: Fayol has advocated division of work to take the
advantage of specialisation. According to him, specialisation belongs
to the natural order. The worker always works on the same matters,
the manager concerned always with the same matters, acquire an
ability, sureness, and accuracy which increase their output. Each change
of work brings in it training and adaptation which reduces output.”
Thus division of work can be applied at all levels in the organisation.
However he has recognised the limitations of division of work and
has advocated that experience and sense of proportion will decide the,
extent to which division of work can be utilised fruitfully.
2. Authority and Responsibility: The authority and responsibility are related
with the latter the corollary of the former and arising from the former.
He finds authority as a continuation of official and personal factors.
Official authority is derived from the manager’s position and personal
authority is derived from intelligence, experience, moral worth, past
services etc. Responsibility arises out of assigning the work.
3. Discipline: All the personnel serving in the organisation should be
disciplined. Discipline is obedience, application, energy, behaviour,
and outward mark of respect shown by employees.
Discipline can be classified into two types; self-imposed discipline and
command discipline. The former springs from within the individual
and is in the nature of spontaneous response to a skilful leader.
Command discipline stems from a recognised authority and utilises

deterrents to secure compliance; with a desired action, which is Notes

expressed by established customs, rules, and regulations, The ultimate
strength of command discipline lies in its certainty of application Fayol
observes that, discipline is what leaders make it. Experience and tact
on the part of manager are put to the proof in the choice and degree of
sanctions to be used, such as remonstrance, warnings, fines, and
suspensions, demotion, dismissal. Individual people and attendant
circumstances must be taken into account.
4. Unity of Command: Unity of command means a person in the
organisation should receive orders from only one superior; The more
completely an individual has a reporting relationship to a single
superior, the less the problem of conflict in instructions and the greater
the feeling of personal responsibility for results. The principle of unity
of command is useful in the clarification of authority responsibility
relationships Fayol has considered it very important for organisational
efficiency. He goes on writing, ‘should it (unity of command) be
violated, authority is undermined, discipline is in jeopardy, order
disturbed, and stability threatened. This rule seems fundamental to
me and so I have it to the rank of a principle.
5. Unity of Direction: Unity of direction means ‘one unit and one plan’.
According to this principle, each group of activities with same objective
must have one head and one plan. The unity of direction is different
from unity of command in the sense that former is concerned with the
functioning of body corporate; the latter is concerned with personnel
at all level. Fayol writes that, unity of direction (one licit, one plan)
must not be confused with the unity of command (one employee should
have orders from one superior only). Unity of direction is provided
for by sound organisation of the body corporate, unity of command
turns on the functioning of the personnel.
6. Order: This is a principle relating to the arrangement of things and
people. In material order, there should be a place for everything and
everything should be on its place. Similarly, in social order,
management of right man should be in the right job.
7. Equity: Equity is the combination of justice and kindliness. The
application of equity requires good sense, experience, and good nature
for soliciting loyalty and devotion from subordinates.
8. Stability of Tenure: Stability of tenure is essential to get an employee
accustomed to new work and succeeding in doing it well, unnecessary
turnover is both the cause and effect of bad management.

Notes 9. Initiative: Initiative is concerned with thinking out and execution of a

plan. Initiative increases zeal and energy on the part of human beings.
Managers should secure as much initiative as possible from the
subordinates.
10. Esprit de corps: This is the principle of union is strength and extension
of unity of command for establishing team work. Proper
communication is important in obtaining it.
C. Elements of Management
That management should be viewed as a process consisting of five elements.
The elements of managemant as its Functions: These are planning, organising,
commanding, coordinating, and controlling. Planning is the most important
and difficult managerial responsibility and a, failure to plan properly leads to
hesitation, false steps, and untimely changes in directions which cause weakness
in the organisation given particular attention to the human aspects of
organisation. Creation of organisational structure and commanding function is
necessary to execute the plans. Coordination is necessary to make sure that
everyone is working together, and control looks whether everything is
proceeding according to plan.
Universality of Management: Fayol has emphasised that management it
universal. The principles of management apply not only to business, but also to
political, religious, philanthropic, military, or other organisations. The principles
of management are, however, flexible, not absolute, but they are usable
regardless of changing and special conditions. His functions of management
are still valid even after- new experiences, observations, and researches have
been put id management during the last five-six decades.
Other Administrstlve Theoristse

Besides Fayol, contributions have come from other administrative theorists.
Notable among these are Max Weber, Sheldon, Mooney, Reiley, Urwick,
Barnard, etc. Max Weber, who has analysed church/ government, military, and
business organisations believes that bureaucratic structures are most efficient
form for all types of organisations. According to him, bureaucratic organisations
are the most rational weans of carrying out imperative control over human
beings.
There are five basic, characteristics of a bureaucratic organisation
specialisation, hierarchy of authority, rules, impersonality, and trained
personnel. These principles are quite similar to those developed by many early
organisation theorists in business field.

Oliver Sheldon made a marked departure from earlier writings by adding Notes
ethics and social responsibilities to the scientific study of management.
Management was recognised as having responsibility to the society by Sheldon,
and his normative approach was able to develop for the first time to view
management as both a science and a philosophy.
Mooney and Reiley, both executives at General Motors, U.S.A., have
emphasised some principles which have become the cornerstone of classical
organisation theory. These principles are coordination principle, scalar principle,
functional principle, and staff phase of functionalism. They have also
demonstrated that all organisations military, religious, and industrial have
common attributes. They all require coordination and have a system of hierarchy,
and clearly defined duties and responsibilities for each job.”
Mary Parker Follett made significant contribution, in the areas of motivation,
leadership, power, and authority. She has also described management as a
philosophy. Her recognition that organisations can be viewed from the
perspective of individual and group behaviour established her as an early
advocate of what was to become the behavioural movement. Urwick, though
not strictly an original thinker, has integrated the various views into a unified
whole. Apart from these, contributions have come from Sloan, Gullick, Merriam,
Stene and Dale.
Barnard and Social Systems Theory

Barnard’s analysis of manager is truly a social systems approach since, in order
to comprehend and analyse the functions of executives, he looked for their major
tasks in the system in which they operate. In determining the tasks of executives,
he analysed the nature of co-operative social systems, as he found non-logical
factors also influencing organisational behaviour.
The main contributions of Barnard can be summarised as follows :
1. Concept of Organisation: Barnard has defined organisation as a system
of consciously coordinated activities of two or more persons. He has
emphasised three characteristics of the organisation : (i) the , persons
are able to communicate with each other; (ii) they are willing to
contribute to the action; and (iii) there is a common purpose.
2. Formal and Informal Organisations: Organisations can divided into two
kinds : formal and informal. The formal, organisation has consciously
coordinated interactions that have a deliberate and common purpose.
On the other hand, informal organisation refers to those social
interactions which do not have common or consciously coordinated
joint purpose.

Notes 3. Elements of Organisation: Every formal organisation must have the

following elements :(i) a system of functionisation so that people can
specialise; (ii) a system of effective and efficient incentive system that
will induce people to contribute to group action; (iii) a system of
authority which will lead, group members to accept the decisions of
executives; (iv) a system of logical decision-making.
4. Functions of the Executives: Barnard has identified following functions
of executives in the formal organisations : (i) the maintenance of
organisational communication through a system of organisation; (ii)
the securing of essential services from individuals in the organisation;
and (iii) the formulation and definition of purpose.
5. Authority: Barnard did not agree with the earlier writers about the
concept of authority. He has given a new concept of authority which is
termed as acceptance theory of authority.
Barnard feels that a person will accept the communication as
authoritative only when four conditions are met :(i) he can understand
the communication; (ii) he believes that it is not inconsistent with
organisational purpose; (iii) he believes it to be compatible with his
own personal interest as a whole; and (iv) he is mentally and physically
able to comply with it.
6. Executive Effectiveness: To make the executive effective, a high order of
leadership is necessary. He has emphasised that coordination not
leadership, is the creative process, but leadership is the indispensable
fulminator of its forces. Leadership is the test of executive responsibility
because for successful accomplishment, it requires an element of
conviction that means identification of personal codes and organisation
codes for the future of the leader.
7. Motivation: Barnard did not agree pith motivation through monetary
rewards. Rather, he has emphasised such factors as opportunity of
distinction and power, pride of workmanship, pleasant organisation,
participation, mutual supporting personal attitudes, and feeling of
belongingness.
8. Organisational Equilibrium: The organisational equilibrium is dynamic
not static, as it has to cope up with the dynamic situation. The
equilibrium of the organisation depends upon the individuals working
within it, other organisations, and society as a whole. The organisational
equilibrium can be perceived not only through logical appraisal but
through analysis and intuition, as in decision-making people depend
upon beliefs and intuition also.
9. Interaction Between Formal and Informal Organisations: Within every Notes

formal organisation, informal organisations also exist in order to
overcome the limitations of the formal organisation. In fact, Barnard
has suggested that executives must develop informal organisations to
serve as a means of communication, to bring cohesion in the
organisation, sinned to protect the individuals from dominance and
onslaught of the organisation. Both the formal and informal
organisations depend upon each other and there is continuous
interaction between two organisations. The above contributions of
Barnard show how he was concerned for the development of the
organisations through social systems. His contributions are regarded
very high in management literature. This can be clearer by “quoting
wolf about Barnard’s book. He says, `the book itself is sociology of
management. Its style of writing was purposely pitched at a high level
of discourse. Barnard was writing for social scientists, not for
practitioners. He believed ‘the field of management was lacking in
concepts and was clouded by ambiguous and even erroneous thinking.
In a sense, he hoped that the functions would set things right and guide
the social scientists to more realistic studies of organisation and
management.
Simon and Decision Theory

Simon, a well known authority in the field of administrative behaviour and
decision-making, has made notable contributions in the field of management.
He examined accepted principles of management and found them quite
contradictory and ambiguous. He described these principles as ‘myths’,
‘slogans’, and ‘homely proverbs’. He looked at the problems of management in
the totality of social and psychological context. Though he belongs primarily to
co-operative social systems school, he has emphasised its decision-making
aspects. His main contributions can be analysed as follows:
1. Concept of Organisation Simon: Has emphasised the organisation as a
complex network of decisional process, all pointed towards their
influence upon the behaviour of the operatives. He has viewed
organisation containing distribution and allocation of decision-making
functions.
2. Decision-making: Simon’s major contribution is in the field of
organisation and decision-making. Decision-making is not only the
core of manager but management itself is synonymous with
management. He says that, ‘in treating decision-making synonymous
with managing. I shall be ‘referring not merely to the final aspect of

Notes choice among alternatives, but rather to the whole process of decision.
Decision-making can be broken into a series of three sequential
processes: (i) intelligent activity, the initial phase consisting of searching
the environment for conditions calling for decisions; (ii) design activity
relating to invention, development and analysis of alternatives; and
(iii) choice activity relating to selection of a course of action.
3. Bounded Rationality: Simon is of the view that man is not completely
rational. He has criticised such theories which are based on the
assumptions of complete rationality. According to him, managers are
in search of optimal solutions and are satisfied with good enough
solutions. Managers cannot maximise on account of various reasons
and constraints.
4. Administrative Man: Simon has given the concept of administrative man
as the model of decision-making. The model is based on the following
assumptions: (i) Administrative man satisfies rather than maximises
in decision-making process. (ii) He recognises that world he perceives
is a simplified model of the real world. Thus he contends with
simplification. (iii) He can make his choice without first determining
all possible alternatives and without ascertaining that these are in fact
all the alternatives. (iv) He is able to make decisions with relatively
simple rules of thumb or tricks of trade, or force of habit.
Contributions of Peter Drucker

Among contemporary management thinkers, Peter Drucker perhaps outshines
all. He has varied experience and background which include sociology,
psychology, law, and journalism. He has written a number of outstanding books
and papers on various aspects of management which comprehend the minute
details of managerial problems. His wide range of consultancy has provided
vivid and rich experience to make distinguished observations. His major
contributions can be analysed under six heads.
1. Nature of Management: Drucker is against bureaucratic management.
He has emphasised creative and innovative management. The basic
objective of management is to lead towards innovation. He has taken
the concept of innovation in a broad sense. Accordingly, the
development of new ideas, combining of old and new ideals, adaptation
of ideas from the other fields or even to act as a catalyst and encourage
others to carry out innovation also constitute innovation. He has treated
management both as discipline and profession. As a discipline,
management has its own yardsticks for measurement. It has its own

tools, skills, techniques, and approaches. However, management is a Notes

practice, rather than a science. Thus, Drucker may be placed to the
‘empirical’ school of management’.
Management as a profession is independent of ownership.
Management professionals should be held responsible for performance.
He views that management’s only authority is performance. Managers
should not be equipped only with skills, tools, and techniques, but
they must be good practitioners so that they can understand the cultural
and social requirements of various countries and organisations.
2. Managerial Functions: According to Drucker, management is the organ
of its institution. It has no functions in itself, and no existence in itself.
He sees management through its tasks.
Accordingly, there are three basic functions of a manager which he
must perform to enable the institution to make its contributions for (i)
the specific purpose and mission of the institution, whether business,
hospital, or university; (ii) making work productive and the worker
achieving; (iii) managing social impacts and social responsibilities.
All these three functions are performed simultaneously within the same
managerial action. A manager has to act as administrator where he
has to improve upon what already exists and is already known. He
has to act as an entrepreneur in redirecting the resources from areas of
low or diminishing results to areas of high or increasing results.
Thus a manager has to perform several functions setting of objectives,
decision-making, organising, and motivating. Drucker has attached
great importance to the objective setting function and has specified
eight areas where clear objective setting is required.
These are market standing, innovation, productivity, physical and
financial resources, profitability, managerial performance and
development, worker performance and attitude, and public
responsibility.
3. Organisation Structure: Drucker feels that there are three structural
requirements of an enterprise. First, it must be organised for business
performance. Second, it should contain the least possible number of
management levels. Third, it must make possible the training and;
testing of tomorrow’s top managers giving responsibility to the
manager while he is still young. Drucker has identified three important
aspects in organising: activity analysis, decisions, and analysis of
relations. He has criticised the earlier writers for neglecting the real;
activity analysis by saying that people identify several distinct functions
Notes but they do not analyse how a function is important in achieving

enterprise objectives. An activity analysis, therefore, must show what
work has to be performed, what kinds of work belong together, and
what emphasis each activity is to be given in the organisation structure.
Decision analysis is the second aspect in organising.
The nature of business decisions is determined by four characteristics
the degree of futurity in the decision, the impact of decision over the
other function; the number of qualitative factors that enter into it, and
whether decisions are periodically recurrent or rare. The decision
anlysis will determine the levels at which these can be made. The third
aspect of organising is relation analysis which not only helps define
the structure but also to give guidance in manning the structure.
4. Federalism: Drucker has advocated, federal decentralisation which is
like Sloan’s concept of centralised control in decentralised structure.
Drucker has emphasised that decentralisation goes far beyond
delegation. It creates a new constitution and new ordering principle.
Decentralisation can be equated with federalism. In his view, federalism
(i) sets the top management free to devote itself to its proper
functions;
(ii) defines the functions and responsibilities of the operating people;
(iii) creates yardstick to measure their success and effectiveness in
operating jobs; and
(iv) helps to resolve the problem of continuity through giving the
managers of various units education in top management
problems and functions while in an operating position.
5. Management by Objectives: The concept of management by objectives
(MBO) is regarded as one of the major contributions by Drucker to the
management discipline. He introduced this concept as early as in 1954.
It is regarded to be such an important method that a firm cannot claim
to be modern if it does not follow the practice of management by
objectives. This concept includes method of planning, setting standards,
appraisal of performance, and motivation. Drucker’s MBO, in his
opinion, is a philosophy. It rests on a concept of human action, human
behaviour, and human motivation. It applies to every manager,
whatever his level of function, and to any business, enterprise whether
large or small. It ensures performance by converting objective needs
into personal goals. The concept and technique of MBO are being
applied by most of modern organisations. ln fact, it has revolutionalised
the management process.

6. Futurity: Drucker has all along been concerned with futurity. He bases Notes
his forecasts on the present actions and decisions. Though he does not
profess resistance to change, he is obsessed by the rapid pace of
development of technology and it’s effects on the society. So how the
technological development may be absorbed by the society without
adverse and negative consequence is a matter of much concern for
Drucker. In his view, it is impossible to foresee the shape of things to
come in view of the complexity and profoundness of the revolutionary
changes occurring in the society at a terrific pace. In this case, people
can only try to understand the nature of discontinuities in historical
perspective and develop a philosophy of life which can cope with the
changes. They should take change as a challenge and try to cope with
it to make a better society.
Peter Drucker, a legendary figure in management in the present world, has
also been recognised by socialist countries. Vishiani; as USSR management
thinker, writes about Drucker like this, ‘Drucker shows, certain farsightedness
and understanding of the development of prospects of modern production when
he opposes the view that the worker is no more than an appendage of machine.
Moved by the desire to strengthen the position of capitalism, he endeavours at
the same time to give due consideration also to some objective trends in
production management. Drucker, therefore, tells the industrialists not to fear
a limited participation of the workers in the management of production
processes. He warns them that if they do not abandon that fear; the consequences
may be fatal to them. Drucker’s management by objectives, control by self-
control, and organisational federalism will always be remembered and be
practised in management.
HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS

Many of the findings of earlier writers, particularly of scientific management,
which focussed attention on the mechanical and physiological variables of
organisational functioning were tested in the field to increase the efficiency of
the organisations. Surprisingly, positive aspects of these variables could not
evoke positive response in work behaviour, and researchers tried to investigate
the reasons for human behaviour at the work. They discovered that the real
cause of human behaviour was something more than mere physiological
variables. Such findings generated a new phenomenon about the human
behaviour and focussed attention on the human beings in the organisations. As
such, this new approach has been called ‘human approach of management’.
Even in the writings of classical approach, notably, Taylor, Fayol, Henry
Gantt, Follet, Urwick, and others the human element in the organisation was
recognised, but they emphasised it very little. The human relations approach
Notes was born out of a reaction to classical approach and during the last four decades,
a lot of literature on human relations has been developed.
The essence of the human relations contributions is contained in two points:
(1) organisational situation should be viewed in social terms as well as in
economic and technical terms, and (2) the social process of group behaviour
can be understood in terms of clinical method analogous to the doctor’s diagnosis
of the human organism. Among human relations approach, there are many
contributioris and many more researches are being cared on. ‘For the first time,
an intensive and systematic analysis of human factor in organisations was made
in the form of Hawthorne experiments. There will be relatively lengthy
discussion of the results and implications of the Hawthorne studies because of
their historical importance to the behavioural approach to the analysis of
management problems.
Elton Mayo is generally recognised as the father of human relations
approach. In November 1924, a group of professors of Harvard Business School,
U.S.A., begin an inquiry into the human effect of work and working conditions
at the Hawthorne plant of Western Electric Company, Chicago, which was
engaged in producing bells and other electrical equipments for telephone
industry. Prominent among the professors were Elton Mayo (psychologist),
leader, and Roethlisberger and Whitehead (sociologists), and company
represe,aative William Dickson. They conducted a series of experimental studies
there between 1924 and 1932. At the time of experiment, the hotel employed
about 30,000 workers and was treated to be the most progressive with pension
and sickness schemes, and numerous recreational and other facilities. However,
there was a great deal of discontentment and dissatisfaction among its
employees. The management was worried about this state of affairs and referred
the matter for thorough investigation. The series of experiments may be classified
into three parts:
1. Illumination experiments, 1924-27,
2. Relay assembly test room experiments, 1927-32,
Apart from these studies, researchers also conducted mass interview,
personnel counseling, and psychological testing.
1. Illumination Experiments: In most of the experiments, these researchers
proceeded on the hypothesis of scientific management. The illumination
experiments began in November, 1924, to study the relationship between quality
and quantity of illumination and efficiency in industry. This experiment started
on the original hypothesis of scientific management that there was a correlation
between the intensity of illumination and worker’s output. However, the
findings were, surprisingly, unexpected. For the purpose of experiments, Notes

workers were divided into an experimental room with varied illuminations,
and a control room with constant conditions. The production decreased only
after the light became so dim ‘that staff could not see properly. Thus, it was
discovered that there was no relationship between two variables, and
illumination (a physical condition of job) had no effect on the amount of output.
When the intensity of illumination was increased, output also increased in the
experimental room, but quite contrary to the expectation, output also increased
in the control room. The researchers proceeded to decrease the illumination,
but output once again increased in the experimental room.
These experiments showed that there was something more than illumination
which affected the productivity. This something more provided a significant
clue to investigate the complex human variables affecting productivity which
formed the basis of later experiments.
2. Relay Assembly Test Room Experiments: Taking a clue from the
illumination experiments, the researchers began relay assembly test room
experiments in 1927 to find out the relationship between working conditions
incentive system, rest interval, additional physical facilities and the productivity.
For this purpose, the researchers set up a relay assembly test room and two
girls were chosen. These girls were asked to choose four more girls as co-workers.
The work related to the assembly of telephone relays. Each relay consisted of a
number of parts which girls assembled into finished products. Output depended
on the speed and continuity with which girls worked. The experiments started
supervisors tended to understand and accept their problems, and management
tried to sense their feelings which were helpful in formulating the action for
resolving employee management conflict.
Now, the main contributions of Hawthorne Experiments may be generalised
as below:
1. Social Factors in Output: An organisation is basically influenced by social
factors. Elton Mayo has described an organisation’ as ‘asocial system,
a system of cliques, informal status system, rituals, and a mixture of
logical, non-logical, and illogical behaviour. Thus organisation is more
than a formal structure or arrangement of functions. The level of
production is set by social norms, not by physiological capacities;
People are socia-psychological beings. These characteristics determine
the output and efficiency in the organisation. Economic satisfaction
and productivity do not necessarily go together. Non-economic
rewards and sanctions significantly affect the behaviour of the workers
and limit the effect of economic incentives.

Notes 2. Groups: In the organisation, individuals tend to create groups. Often

workers tend to react as members of the group and not as individuals.
The group determines their norms of behaviour. If a person resists a
particular norm of group behaviour he tries to change the group and
norm because any deviation from the group norm will make him
unacceptable to the group. Thus, management cannot deal with
workers as individuals but as members of work groups, subject to the
influence of these groups.
3. Leadership: Leadership is important for directing group behaviour.
Leadership cannot come from superiors only as held by scientific
management approach. There may be informal leadership as is clear
by bank wiring experiments. In some cases, informal leader is more
important than formal one as in the experiments, the supervisor could
not exert pressure on the work group about the production norm
because he was under considerable pressure to accept group norm of
which he was in charge. However, a supervisor is more acceptable as
a leader if his style is in accordance with human relations approach. In
this context, democratic style is the best which provides greater
satisfaction to workers.
4. Communication: These experiments show that communication in the
organisation is very important. Through communication, workers can
be explained why a particular course of action is being taken:
participation of workers can be sought in decision-making process
concerning the matters of their importance; and problems faced by
them and their attitudes, opinions and methods of working may be
identified.
5. Conflict: The conflict generates in the organisation because of the
creation of group which conflicting objectives. Thus, groups may be in
conflict with organisation though the creation of groups sometimes
helps to achieve organisational objectives. Similarly, conflict may arise
because of maladjustment of individual and organization. This conflict
raises the problem of adjustment of individual to the organisation, As
the individual moves through the time and space within the
organisation, there constantly arises the need of adjustment of the
individual to the of motivation, leadership, communication,
organisational conflicts organisational change and development,
integrating organisational and individual goals, and group dynamics.

MANAGING BY RULES
Notes
Unit V
6 MANAGING BY RULES
FACILITIES AND LOCATION

The hotel matures a dazzling rape of eastern and western restaurant, like the
famous Chow Restaurant and Seafood Shark’s Fin Restaurant. These outlets
provide you with a selection of delicacies with the finest ingredients and
excellent cuisine to ensure you would enjoy a gastronomic of food and fun.
The business center provides a thorough and professional secretary support
and a range of equipment and service, like Internet for you to choose from.
Spacious multi-function rooms are available for hosting various scales of
seminars and conferences.
The hotel of a good deal of health and entertainment facilities, such as
outdoor swimming pool, tennis, gymnasium beauty parlor, karaoke and
discotheque for you to enjoy, indulge in your peacefulness and recharge at the
same time.
PEOPLE CULTURE
The Hotels Group endeavours to attract and retain talented people. This is
because they believe that motivated staff who shale the company’s goals are
key to maintaining and improving upon the standards of excellence by which
their organisation has come to be known, they recognise that a commitment to
complete career path management and providing a working environment where
all people are valued and involved is essential for them to be a preferred alloyed.
Careers at management level within the Group are carefully managed and
they encourage a multi-discipline approach to create broad and capable
generalists. At the management level, they achieve 90% internal promotions
and transfers.
STRUCTURE ANALYZE
After careful investigation, we find that the Organisation Structure of hotel is
Dual Authority, the structure shows as below:

Notes BOSS
MANAGER MANAGER MANAGER
WORKER WORKER WORKER
Through the structure above, we can see that–

Level(s) in the organisational structure : Three-level structure
Relationship between the level(s) : Boss & department manager &
worker
Advantage(s) in the Organisational : Management isn’t a busy job, e.g.,
Structure the boss just need to give order to
the different department
manager; then, their department
manager will give the
information to the worker who
works in different department.
Manager can give the
customer’s/worker’s feedback
directly to the boss by writing a
report, so that the work will be
operated more effectively.
Disadvantage : There’s no channel for the worker
who works in different
departments to talk with each
other.
HOTEL TRAINING AND DEVELOPMENT DIVISION
Training
Training gives new or present employees the skills they need to perform their
jobs. Training might thus mean showing a machinist how to his new machine,
a new salesperson how to sell her firm’s product, or a new supervisor how to
interview and appraise employees; whereas training focuses on skills needed
to perform employee’s current jobs employee and management development
is training of a long-term nature. Its aim is to develop current or future
MANAGING BY RULES
employees for future with the organisation or to solve an organisational problem Notes
concerning for instance, poor interdepartmental communication. The techniques
used in both trailing and development are often same, however and the
distinction between the two is always somewhat arbitrary.
Hotels has always believed that in order to achieve the levels of service
excellence that their strive for, they need to hire people that are well suited for
their industry and then equipped them with the skills and knowledge needed
to deliver quality service consistently. Celtsin registered “Training Hotels”
managed by Companies to operate, in conjunction with Hotel Business Schools,
a three-year programme to equip trainees with practical skills and a broad
knowledge of the hospitality industry.
The trainees work them all the different departments of the hotel to gain a
practical insight into Hotel operations, whilst the theoretical aspects of the
Hospitality Industry are covered by study-release periods at the Hotel Schools.
The trainees are also required to study in their own time. The two development
programmes run by Hotels are: Diploma of Hospitality Services Management
and Certificate in Professional Cookery Requirements for admission.
In order to be considered for the course of applicants must be over 18 year
of age and ideally not over the age of 23 years at the commencement of the
come, be in Possession of an academic metric certificate with accounts as a
subject all applicants must have had at least one year full-time employment in
the hotel industry be willing to sign a contract or where Under lead age, be able
to present proof of parents / guardians consent to sign.
They believe that the ideal employee is created by a combination of future
and nurture. They place great emphasis on hiring people the right attitude and
potential, and on providing training to equip their people with the necessary
skills. Each year, we invest a minimum of 2% of our payroll expenses on the
training and development of our employees. They have a philosophy,
“Hospitality from Caring People”. It is this philosophy, which is core to their
award-winning service, service that continues to differentiate they ford. They
take this distinction seriously and Pay great to making sure that their service
results in customer loyalty. The uniqueness of “Hospitality from Caring People”
is its foundation on core Asian Values; respect. Sincerity, helpfulness, courtesy
and humility. “Pride without arrogance” is of particular importance, as they
want our people to be proud of their achievements but demonstrate humility.
The hallmark of true success is that it does not need to be stated.
Throughout the organisation, this philosophy regains a constant Yak in
each of their properties. They take particular care to embrace the uniqueness of
the local culture and adapt this service and hospitality to reflect these individual
ideals.
Notes The Leader

They are all leaders if they are not leading others, they believe that others are
leading themselves. These qualities are essential to being successful at hotels.
Core qualities dedicated and passionate about excellence. Willing to learn, adapt
and better oneself always customer-focused results driven possessing strong
business acumen coupled with gracious manner of a hotelier strategic, yet bands
on innovative and willing to take risks.
PERFORMANCE EVALUATING
As a completely administration system in the hotel we must use the appraisal
performance to check the performance of the staff.
Why should You Appraisal Performance?

There are seven reasons to appraise performance. Firstly, appraisals provide
information upon which promotion and salary decisions call be made. Secondly,
they provide an opportunity for you and you’re subordinate to review the
subordinate’s work-relate behaviour. This in turn lets both of you to develop a
plan for correcting any deficiencies, the appraisal aught have unearthed, and
reinforce the things. The subordinate does right finally. The appraisal should
be central to yoke firm’s career-planning process because it provides a good
opportunity to review the person’s career plans in light of his or her exhibited
strengths and weaknesses.
Steps in Appraising Performance

A performance appraisal contains three steps: define the job, appraise
performance, and provide feedback, defining the job means assure that you
and your subordinate’s on his or her duties and job standards. Appraising
performance means comparing your subordinate’s actual performance to the
standards that have been set; this usually involves some type of rating form.
Third performance appraisal usually requires one or more feedback sessions:
Here the subordinate’s performance and progress are discussed and plans are
made for any development that is required.
These and other problems are summarized as below:
Selected Evaluation Techniques

There are many different ways to evaluate employees; some of the most common
will be described here. Generally speaking, these methods can be divided into
two broad categories. One category consists of methods that evaluate employees
individually, in other words, the supervisor evaluates each employees, without
explicit.

MANAGING BY RULES
1. Lack of standards. Without standards, there can be no objective Notes

evaluation of results, only a subjective guess or feeling about
performance.
2. Irrelevant or subjective standards. Standards should be established
by analysing the job output to ensure that standards are job related.
3. Unrealistic saddles. Standards are goals with motivating potential.
Those are reasonable but challenging have the most potential to
motivate.
4. Poor measure of performance. Objectivity and comparison juries that
progress toward standards be measurable. Examples of measurable
standards include quantifiable measure such as 10 rejects per l, 000
units or 10 sales per 100 calls, as well as qualitative erasures. Such as
projects completed or not completed.
5. Rater errors. Rater errors include tater bias or prejudice halo effect,
constant error central tendency and fear of confrontation.
6. Poor feedback to employee. Standards/or ratings must be
communicated to the employee in order for the performance evaluation
to be effective.
7. Negative communications. The evaluation process is hindered by
communication of negative attitudes such as inflexibility,
defensiveness, and a non-developmental approach.
Direct comparisons with other employees, the standards of performance
are defined without reference to other employees.
The second category depends on multiple-person evaluations. Multiple-
person evaluation require the supervisor to directly and intentionally compare
the performance of one employee with that of other employee’s performance is
defined as good or bad on the basis of comparison of other employee’s
performance.
Individual Evaluation Methods that the Hotel Adapted

The hotel administration used the Behavioural Observation Scales (BOS) as an
approach to performance evaluation. The BOS uses the critical incident technique
to identify a series of behaviours covering the domain of the job BOS is that
instead of identifying those behaviours exhibited by the rated during a rating
period, the rater indicates on a scale how often the rated was actually observed
engaging in the specific behaviours identified in the BOS.
If behaviour-oriented approaches have any advantage over other formats,
it is in the development process that is typically used. Because supervisors and
subordinates are involved in the development of the scales, these scales are
Notes generally bead received, both by the poisons who must complete them and by
the persons whose performance is being assessed. A second possible benefit of
the behavioural approach is that it helps focus manager’s attention on the critical
incidents for effective job discuss specific types of good and bad performance
with the subordinate, and this may make the feedback more acceptable than if
the supervisor talks vague generalities.
MANAGEMENT BY OBJECTIVES
In most of the traditional performance evaluation systems the tater Judge past
performance and attempt to report their judgments using one of the techniques
described above. Because performance evaluation is used for making important
decisions that affect employees, the rater is placed in difficult and somewhat
antagonistic role.
McGregor believed that instead of creating antagonisms because of
judgments, the superior should work with subordinates to exercise self-control
and manage their job performance. From the early beliefs of McGregor, Drucker,
and Odiorne has emerged the management by objectives (MBO) approach.
MBO is more than just an evaluation programme and process. It is viewed
as a philosophy of managerial practice, a method by which managers and
subordinates plan, organise, control, communicate, and debate by setting
objectives through participation or by assignment from a superior the
subordinate is provided with a course to follow and a target to shoot for while
performance the job.
A popular technique of appraisal of managerial performance is MBO.
Management by objectives is a processes which ideally begins at the top of the
organisation which the establishment of specific organisational objectives. Then
at the second level of organisation, managers working with their bosses
establishing objectives for their department that are consistent with the
organisation’s objectives. This procedure is repeated down to the lowest level
managers in the organisation. The basic ingredient in the MBO process is a
meeting between an individual managers and his boss, at the start of the
appraisal period, during which the objectives are set. They decide the following:
1. The task to be accomplished by the manager.
2. The period of time that will be allowed.
3. The basic on which progress will be judge.
When the establishment time period is over they meet again. In the second
meeting they review accomplishment and set further, thereby, starting the
process all over again. The result of discussion between the managers and the

MANAGING BY RULES
manager and boss is usually summarised in a formal document, such as that Notes
shown in Table 1.
Table 1
Objective Date Accomplishments
1. To reduce waste to 6% of 31.12.07
raw material used.
2. To reduce loss time due to the 1.06.07
accidents to % man per year
3. To reduce operating cost to 5% below 1.06.07
budget.
4. To complete the supervisory training
programme. 31.12.07
Signature Date Approved
Signature and Date

Production Supervisor of production supervisor
Column one lists the agreed objectives; column two indicates the date by
which the objective are to accomplished; and column three will be completed
when they meet again to review accomplishments at periodic intervals. In case
of inadequate performance, they will objectively consider whether the target
was carelessly fixed or whether some other reasons are responsible for it.
An effective MBO system has the following advantages for any type of
organisation:
1. It requires each manager to actively involve himself in the setting of
objectives of to be accomplished during a specific time-period. This is
different from some system, higher level managers simply assign duties
to lower level managers. Since they are involved, in setting their
objectives, managers are generally more committed to the goals and
will generally work harder to accomplish them.
2. It requires that the objectives of each department are consistent with
the overall organisational objectives. This requirement ensures that
people and departments do not work harder to accomplish them.
3. It encourages a more systematic evaluation of performance.
Performance is evaluated on the basis of the degree of accomplishment
of specific objectives. This is generally better than evaluating
performance on the basis of personal characteristics.
Although it is a useful technique, MBO should not be viewed as a cure-all.
Difficulties in MBO can arise. Some of them are as follows:
Notes 1. Sometimes it is not feasible to state specific objectives for a time-period.

Imagine for example, of the research department stating specifically
what is to be accomplished the next six months. Jobs that involve
speculation, trial and error or numerous unknowns not easily adapted
to MBO.
2. MBO presumes a certain level of trust throughout the hierarchy. But
the organisational life teaches people to be cautions. This inhibits honest
dialogue. Also, the status differentials between superior and
subordinate may be too great to allow appropriate goal setting to take
place in an open atmosphere.
3. The system can become so formalised that it becomes an end in itself.
Carried to an extreme, MBO may require so much paperwork and so
many meetings that managers do not have time to do their normal
work.
4. MBO deals with an individual’s performance on the present job only.
It overlooks his past and also does not identify his future potentials. It
may happen that an individual who has failed on a job in the present
situation had done exceedingly well on it in the past, in another
situation.
EMERGENCY MEASURES
As we know, hotel has bead in this line of business for many years and enjoys
high prestige. It’s always regarded by customers as the reliable one because the
Hotel has its own measures in dealing the urgent situation.
Fire Disaster Conflagration

If the Fire Disaster happens unexpected in the hotel, the department manager
who is on guard will divide all the staff into three groups immediately;
1. The first people’s on duties are to scatter the people who still stay in
the hotel and lead the way to the fire door or exit or emergency staircase.
Because they always believe that “Customer is God” in service trades,
they’re unwilling to see any customer injured the fire disaster.
2. The second group people’s duties are to put out the fire extinguisher,
which has been prepared in ordinary tunes. The purpose is to prevent
the condition of a fire enlarge.
3. The third group people’s duties are to inform the fire brigade.
Food Poisoning
If customers are suffering the food poisoning unexpected, the logistics
department manager will lead his department members to the scene of the
incident hastily. Then, they will send the people who suffer the food poisoning
MANAGING BY RULES
to the hotel clinic to give them first aid, or send them ambulance to the hotel Notes
ambulance to the hospital.
In addition, the hotel pays all the medical expenses and they will also offer
damages to the victim.
Conclusion
Hotel is a modem four-star hotel, they has effective training, such as a three-
year programme equipped trainees with practical skills and a broad knowledge
of the hospitality industry. The trainees work in all the different departments
of the hotel to gain a practical insight into Hotel operations and they have a
Philosophy, Hospitality from caring people. It is this which is core to their award-
winning service that continues to differentiate their bud. They take this
distinction seriously and pad great attention to making sure that their service
results in customer loyalty.
Its structure exits some shortages, in brief it is considered as a well-organised
structure. The performance evaluating can’t review the staff’s plans in light of
his or her exhibited strengths and weaknesses.
Recommendation
Although they had adopted the BMO and BOS methods, it is impossible to add
the Behaviourally Anchors Rating Stales (BARS) or the Behavioral Expectation
Scale (BES) to make the performance evaluating more endive.
The BARS approach relies on the use of critical incidents to serve as anchor
statements on a scale. A BARS rating form usually contains 6 to 10 specifically
defined performance dimensions each with five or six critical incident “anchors.”
BARS Usually Contain the Following Features

Six to ten performance dimensions are identified and defined by raters (a coup
is selected to construct the form).
The dimensions are anchored with positive and negative critical incidents.
Each ratee is then rated on the dimensions. Ratings are fed back using the terms
displayed on Lee form.
The exact construction of BARS is too complex for presentation here however
it should be noted that usually two to four days are needed to develop a BARS.
The result of the developmental work is a jargon-free rating scale that is closely
related to the requirements of a given job.
They can develop more training programmes such as give on-the-job
inflection training, lectures training programmed learning, training via the
internet and so on. All above training programmes can cave staff’s quality. In
addition, they need to organise some entertaining programmes and traveling
plans which can raise all traveling plain, which can raise all staff’s bark initiative.

Notes
Unit V
7 HR PLANNING
INTRODUCTION
Human resource management (HR) is concerned with the people dimension in
management. HRM is a term increasingly used to refer to the philosophy,
policies, procedures and projects relating to the management of people within
organisations. Since every organisation is made up of people, acquiring their
services, developing their skills, motivating them to higher levels of
performance, and ensuring that they continue to maintain their commitment
with organisation are essential to achieving organisational objectives. Those
organisations that are able to acquire, develop, stimulate and keep outstanding
workers will be both effective and efficient. Those organisations that are
ineffective or inefficient risk stagnation or going out of business, Human resource
management thus, creates organisations and makes them survive and prosper.
If human resources are neglected or mismanaged, the organisation is unlikely
to do well.
DEFINITIONS OF HRM (HUMAN RESOURCE MANAGEMENT)

According to Lvancevich and Glucck, “Human resource management is the
function performed in organisations that facilitates the most effective use of
people (employees) to achieve organisational and individual goals”.
Byars and Rue say that “Human resource management encompasses those
activities designed to provide for and coordinate the human resources of an
organisation”.
According to Dale Yoder “the management of human resources is viewed
as a system in which participants seek to attain both individual and group goals”.
According to Flippo, HRM is “the planning, organizing, directing and
controlling of the procurement, development, compensation, integration,
maintenance and reproduction of human resources to the end that individual,
organisational and societal objectives are accomplished”.

HR PLANNING
In the words of Michael J Jucious, Human Resource Management “may be Notes

defined as that field of management which has to do with planning, organising
and controlling the functions of procuring, developing, maintaining and utilising
a labour force, such that the (a) objectives for which the company is established
are attained economically and effectively, (b) objectives of all levels of personnel
are served to the highest possible degree; (c) objectives of society are duly
considered and served”.
OBJECTIVES OF HRM
Objectives are predetermined goals to which individual or group activity in an
organisation is directed. Objectives of HRM are influenced by organisational
objectives and individual and social goals. Every organisation has some
objectives and every part of it should contribute directly or indirectly to the
attainment of desired objectives. Objectives determine the character of an
organisation and serve as the basis for voluntary cooperation and coordination
among employees. Objectives also provide benchmarks or standards of
evaluating performance. The primary objective of HRM is to promote the
effectiveness of employees at this work place. It is also to promote the synergy
between the employer and the employee as also to minimize the suspicion and
hostility that has characterized their relationship for so long. According to Indian
Institute of Personnel Management, “Personnel management (Human Resource
Management) aims to achieve both efficiency and justice, neither of which can
be pursued successfully without the other. It seeks to bring together and develop
an effective organisation, enabling the men and women who make up an
enterprise to make their own best contribution to its success both as an individual
and as a member of a working group. It seeks to provide fair terms and
conditions of employment and satisfying, work for all those employed”.
Objectives of human resource management are derived from the basic
objectives of an organisation. In order to achieve organisational objectives
integration of employer’s interest and employee interest is necessary. The
objectives of human resource management may be summarised as follows:
(a) To improve the service rendered by the enterprise through building
better employee morale which leads to more efficient individual and
group performance. Thus, HRM seeks to manage change to the mutual
advantage of individuals, groups, the organisation and society.
(b) To establish in the minds of those associated with the enterprise
employees, shareholders creditors, customers and the public at large
the fact that the enterprise is rendering the best service of which it is
capable and distributing the benefits derived from there fairly and
contributing to the success of the enterprise.
Notes (c) To create and utilise an able and motivated work force, to accomplish
the basic organisational goals.
(d) To recognise and satisfy individual and group needs by providing
adequate and equitable wages, incentives, employee benefits, social
security, challenging work, prestige, recognition, security, status etc.
Thus an organisation can identify and satisfy individual and group
goals by offering appropriate monetary and non-monetary incentives.
(e) To employ the skills and knowledge of employees efficiently and
effectively i.e., to utilise human resources effectively in the achievement
of organisational goals.
(f) To strengthen and appreciate the human assets continuously by
providing training and developmental programmes. Training and
development helps the organisation attain its goals by providing well-
trained and well-motivated employees.
(g) To maintain high employee morale and sound human relations by
sustaining and improving the various conditions and facilities.
(h) To enhance job satisfaction and self-actualisation of employees by
encouraging and assisting every employee to realise his full potential.
(i) To provide facilities and conditions of work and creation of favourable
atmosphere for maintaining stability of employment.
(j) To recognise and satisfy individual needs and group goals by offering
appropriate monetary and non-monetary incentives,
(k) To develop and maintain a Quality of Work Life (QWL) which makes
employment in organisation a desirable personal and social situation.
Maximum individual development, desirable working relationship and
effective utilisation of human resources are the primary goals of HRM.
Management has to create a conducive environment and provide necessary
prerequisites for the attainment of the objectives of HRM
Scope of HRM
The scope of Personnel Management is indeed vast. All major activities in the
working life of an employee from the time of his entry into an organisation
until he leaves the organisation come under the purview of Personnel
Management. Figure 1 explains the vast scope of personnel management.
Human Resource Management embraces a very wide field of activities. The
scope of HRM is so wide and varied that the HR department and the personnel
executives typically perform a variety of roles in accordance with the needs of
a situation. The HR manager plays multiple roles like that of a researcher, of a
HR PLANNING
counsellor, of a bargainer, of a mediator, of a peacemaker, of a problem solver, Notes

etc. The functional areas of Human Resource Management as outlined by
Northcott are: (a) Employment; (b) Selection and Training; (c) Employee Services;
(d) Wages; (e) Industrial Relations; (f) Health and Safety; and (g) Education.
It has therefore, been rightly observed by Peter Drucker that “Management
is a multipurpose organ which has three jobs, two of which are directly related
to personnel; managing a business; managing managers; and managing workers
and the work”. The personnel executives play an important role in a business
organisation. They not only help in determining the rules of the organisation,
but also play a powerful role in interpreting and applying the rules of the system
itself. They are expected to enjoy the confidence of both the management and
the workers which is crucial to the efficient and effective operation of the
business organisation. The focus of human resource management is on people
at work. It is indeed a wide area and covers a broad spectrum of activities. A
manager whether he is in charge or a production or a marketing function, deals
with human beings and gets his job done through and with people.
Nature of
Human Resource
Management
Employee
Employee
Education
Selection
HUMAN
RESOURCE
Industrial MANAGEMENT
Relations Employee
Remuneration
Employee
Health and Employee
Safety Motivation
Fig. 1: Scope of personnel management.
IMPORTANCE OF HRM
Human resources, along with financial and material resources contribute to
the production of goods and services in an organisation. Physical and monetary
resources, by themselves, cannot improve efficiency or contribute to an increased
rate of return on investment. It is through the combined and concerted efforts

Notes of people that monetary and material resources are harnessed to achieve
organisational goals. But these efforts, attitudes and skills have to be sharpened
from time to time to optimise the effectiveness of human resources and to enable
them to meet greater challenges. This is where HRM plays a crucial role. The
significance of HRM can be discussed at four levels:
(a) Corporate (b) Professional (c) Social (d) National
(a) Corporate
Good human resource practices help in attracting and retaining the best
people in the organisation. Planning alerts the company to the types of people
it will need in short, medium and long run. HRM can help an enterprise in
achieving its goals more efficiently and effectively in the following ways:
 Attracting and retaining talent through effective human resource
planning, recruitment, selection, compensation and promotion policies;
 Developing the necessary skills and right attitudes among the
employees through training;
 Securing cooperation of employees through motivations, and
 Effectively utilizing the available human resource
(b) Professional
 Providing maximum opportunities of personal development of each
employee.
 Allocating work properly and scientifically.
 Maintaning health relationships between individuals and groups in
organisataions.
(c) Social
 Effectively utilising the available human resources.
 Sound human resource management has a great significance for society.
 Society, as a whole is the major beneficiary of good human resource
practices.
 Employment opportunities multiply.
 Scarce talents are put to best use.
 Organisations that pay and treat people well are always ahead of others
and deliver excellent results.
 Maintaing a balance between the jobs available and job seekers in terms
of numbers, qualifications, needs and aptitudes.
 Provides suitable employment that gives social and psychological
satisfication to people.

HR PLANNING
(d) National Notes

Human resources and their management plays a vital role in the
development of a nation. There are wide differences in development between
countries with similar resources due to differences in the quality of their people.
Development of a country depends primarily in the skills. Attitudes and values
of its human resources. Effective management of human resources helps to
speed up the process of economic growth which in turn leads to higher standards
of living and fuller employment.
THE CHANGING ROLE OF HRM

The challenge of HR managers today is to recognise talent and nurture the
same carefully and achieve significant productivity gains over a period of time.
The enterprise is nothing but people. Some will be intelligent, others not so
intelligent; some are committed to jobs, others are not, some will be outgoing
others reserved and so on. “The point is that these differences demand attention
so that each person can maximise his effectiveness so that the society as a whole
can make the wisest use of its human resources”.
The role of an HR manager is shifting from one of a protector and screener
to that of a planner and change agent. In the present day competitive world,
highly trained and committed employees are often a firm’s best bet. HR
professionals can help an organisation select and train employees for emerging
roles. Only people who are involved and intelligent can make a difference.
Charles Creer has pointed out that; in a growing number of organisations human
resources are now viewed as a source of competitive advantage. Increasingly it
is being recognised that competitive advantage can be obtained with a high
quality workforce that enables organisations to compete on the lines of market
responsiveness, product and service quality, differentiated products and
technological innovations”,
In the future the principal issues will be how the HRM function can transform
its outlook from a traditional to a modern one from being functionally oriented
internally focused, reactive, activity driven, centralised and control oriented to
being business oriented, customer focused, proactive, effectiveness driven,
decentralised and empowerment oriented. Moreover, organisations will need
to be concerned with extending their recruiting efforts, developing careful
screening procedures, training employees to adapt to change, providing
appropriate and sufficient educational programmes and accounting for their
investment in recruiting, selecting and training employees. The new generation
of employees will weigh salary and benefits packages against their personal
needs and values. Therefore, compensation and benefits packages will weigh
greater flexibility in order to meet individual needs.
Notes FUNCTIONS OF PERSONNEL MANAGEMENT

Personnel Management involves two categories of functions:
(a) Operative, and (b) Managerial.
(a) Operative Functions
The operative functions include procuring, developing, compensating,
utilizing and maintaining an efficient work force.
(i) Procurement: Procuring means recruiting the required number of
employees with due qualifications and experience keeping in view
the importance of achieving the objectives set before the organisation.
It is mainly concerned with hiring the right people, in the right place,
at the right time. It includes activities like manpower planning, selection
and placement.
(ii) Development: Development means activities meant to increase the
efficiency and skills of the workers through training and education of
employees. It includes activities like training, seminars, group
discussions, education etc.
(iii) Compensating: Includes activities which deal with the method and
standard of remuneration and terms of employment.
(iv) Utilizing: Utilizing means using the services of the employees to the
best possible extent. It includes incentive schemes and schemes for
sharing the profits from higher productivity.
(v) Maintaining: Aims at maintaining good working conditions for the
employees. It includes preparation and implementation of health
schemes, safety systems etc.
(b) Managerial Functions
The managerial functions include activities like planning, organizing, and
coordinating, directing and controlling the employees. These functions are
common to all managers and therefore known as managerial functions. In other
words, they are performed by all types of managers including personnel
managers.
(i) Planning: When management is viewed as a process, planning is the
first function performed by a manager. The work of a personnel
manager begins with developing a personnel programme. This is done
through planning. A plan is a predetermined course of action to
accomplish the set objectives. It specifics what and how operative
personnel functions are to be performed.
(ii) Organizing: While planning decides what management wants to do,
organizing provides an effective machine for achieving the plans.
Organizing calls for grouping of personnel activities and assigning of
different activities to different individuals.
HR PLANNING
(iii) Coordination: Coordination is concerned with harmonious and unified Notes

action directed towards a common objective. It ensures that all groups
and persons work efficiently, economically and in harmony. Person-
to-person communication is most effective for coordination.
(iv) Directing: Direction involves managing managers, managing workers
and the work through the means of motivation, proper leadership,
effective communication as well as coordination. A personnel manager
must develop the ability to command and direct others.
(v) Motivating: Motivation is a managerial function to inspire and
encourage people to take required action. Motivation involves guiding
and supervising the personnel. Motivation is the key to successful
management of any enterprise. A personnel manager must inculcate
(persuade/inspire) in the workers a keen appreciation of an
organisation’s policies. He must guide employees towards improved
performance and motivate them to work with zeal and confidence.
(vi) Controlling: Control is the process of measuring actual results with some
standard of performance, finding the reason for deviations of actual
from desired result and taking corrective action when necessary. Thus,
controlling enables the realization of plans.
The significance of these two varieties of functions is that one function cannot
work without the other. The personnel manager has to blend the two to the
desirable extent.
Personnel Management Policies

A policy is a statement or general guidelines for employees to make decisions
in respect to any course of action. Personnel policies provide guidelines for a
variety of employment relationships and identify the organisation’s intentions
in recruitment, selection, development, promotion, compensation, motivation
etc. According to Armstrong, personnel policies “are continuing guidelines on
the approach the organisation intends to adopt in managing its people. They
define the philosophies and values of the organisation on how people should
be treated and from these are derived principles upon which managers are
expected to act when dealing with personnel matters”.
The objectives of HR or personnel policies are described by Peter Drucker
in the following words. “The management must gear its policies and objectives
in such a fashion that the employees perform their work and do their assigned
tasks. It implies also a consideration of human resources as having, unlike any
other resources, personality, citizenship control over where they work, how

Notes much and how well. And it is the management, and management alone, that
can satisfy these requirements”.
HR or personnel policies are required in the following areas:
 Acquisition of Personnel
 Training and Development
 Appraisal and compensation of Human Resources
 Human resource mobility
 Working conditions and work schedules, and
 Industrial Relations
Role of a Personnel Manager

The functions of the personnel manager are very comprehensive and varied.
They are determined and influenced by factors such as size, nature and location
of the business or industry. The Personnel Manager has been playing a variety
of roles. In the modern era, he typically performs a variety of roles like a
counsellor, a mediator, a problem solver and a change agent. According to Dale
Yoder and Robert Nelson, these functions can be categorized into seven types:
Departmental Administration which looks after the planning, policy decision
and general administration.
1. Employment of workers which includes recruitment, selection and
placement of workers, job analysis, job description, and performance
appraisal.
2. Training and induction which include induction training and in service
training.
3. Wage and Salary Administration which include wage payments, job
evaluation, job analysis surveys, etc.
Benefits and services which include administration of various benefit
schemes for employees like insurance, medical facilities, retirement
benefits, etc.
4. wage and salary administration which include wage payments, job
evaluation, job analysis, surveys etc.
5. Benifits and services which include administration of various benefit
schemes for employees like insurance, medical facilities, retirement
benefits, etc.
6. Collective bargaining which includes labour bargains with
management to obtain its due share.

HR PLANNING
7. Personnel research which includes preparation of plans and their Notes

implementation.
All activities connected with employees of an organisation and all decisions
related to human relations come within the functional areas of personnel
management. It has now been fully recognized that the basic role of the Personnel
Manager is “the management of manpower resources”. He undertakes all those
functions which are concerned with “human element”. The role of Personnel
Manager is ever expanding. As Prof. Chatterjee puts it:
“The Personnel Man first appeared as a low powered functionary who was
no better than a files clerk or record keeper concerned with the payment of the
dues of the worker. Then came the next stage when he administered the welfare
schemes which were being gradually provided in the statutes. As the workers
were organizing themselves into strong unions and industrial conflicts were
multiplying the employer used the Personnel Man as a kind of trouble shooter
or fire-fighting either to advice him on how to find loopholes in labour laws, or
to come to a settlement where concessions were inexpiable. Gradually his work
was realized as more of the nature of staff function rather than line function
and that he was an expert rather than a controller or manager of men”.
ORGANISING THE HR DEPARTMENT

Organisations are economic and social entities in which a number of persons
perform multifarious tasks in order to attain common goals. Organisations are
effective instruments in that they help individuals accomplish personal
objectives that they (persons) cannot achieve alone. According to Argyris,
organisations are usually formed to satisfy objectives, “that can best be met
collectively”.
The people who work together for accomplishment of some common
objectives require a definite structure through which they relate to each other
and through which their efforts can be coordinated. According to Allen
“Organizing is the process of identifying and grouping the work to be performed,
defining and delegating responsibility and authority and establishing
relationships for the purpose of enabling the people to work most effectively
together in accomplishing objectives”, Organisations are only a means to an
end. They takes certain inputs from the environment and convert them into ,
specified outputs desired by the society.
In its broadest sense, organizing can be thought of as the process of making
the organisation’s structure fit in with its objectives, its resources and its
environment. Formal organisations, called the superstructure of an enterprise,
in, the way it is departmentalised, i.e., the way its human resources are grouped
into different departments, divisions or sections. The formal organisations also
describe how the departments are related to one another.
Notes The Structure

The internal organisation of the HR department varies widely depending upon
the nature and size of the enterprise, its management philosophy and its external
environment. In a small firm, there may be an HR section within the office. In a
medium sized firm the HRM department may consist of HR manager, personnel
officers and personnel assistants or clerks. But in a large organisation, the HRM
department may consist of several functionaries and below every officer there
will be clerical staff.
Two issues become relevant in a discussion on organisation of an HR
department. They are (i) place or the HR department in overall set up, and
(ii) composition of the HR department itself.
Manager
Production Sales Office Accountant

Manager Manager Manager
Personnel
Assistant
Fig. 2: Shows HRM in a small scale unit.

In this set up a low placed employee may be entrusted with the task of
attending to HR functions. However, a large HR department is headed by a
general manager under whom personnel manager, administration manager,
manager industrial relations work.
G e neral
M anage r
M anage r M anage r M anage r M anage r

P ersonnel A dm inistration HRD HR
M R
PR C entern M edical W e lfa re Tra nsport Leg al

Centeen
A ppraisa l D evelopm ent

Tra ining
H um an H iring G rievance C om pen sa tio n

R esource H and ling
P lann ing
Fig. 3: Shows the composition of an HR department in a large organisation.

HR PLANNING
STAFF ROLE OF HR DEPARTMENT Notes

It is said that HRM is a line manager’s responsibility but a staff function, Since
management is getting things done through and with people, the responsibility
of managing people rests with line managers. The HR department provides
specialised advice, assistance and information to line executives so that they
may concentrate on their respective functions. The staff role of the, HR
department in relation to other departments may be analysed as follows:
(a) Policy Formulation
HR department assists and counsels other departments in policy
formulation, It prepares programmes concerning recruitment, selection, training,
appraisal, etc., of employees in consultation with other departments.
(b) Advising
The HR department advises all other departments in areas relating to the
management of human resources, industrial relations, etc. The department acts
in an advisory capacity offering suggestions.
(c) Assistance and Service
The HR department provides secretarial and executive support services like
securing and scrutinising applications, conducting tests and interviews,
arranging orientation and training etc. It helps in developing collaboration
between management and trade unions.
(d) Monitoring and Control
The HR department evaluates actual performance in the light of established
personnel policies and procedures and suggests appropriate corrective actions
whenever necessary. The department conducts personnel audit and helps other
departments in the proper implementation of personnel policies and
programmes.
ORIGIN AND GROWTH OF HR FUNCTION IN INDIA

The history of the evolution and growth of HRM in India is not very old. The
various stages in the growth of HRM are given below.
(a) Report of the Royal Commission on Labour in India
Human resource management in India dates back to the Report of the Royal
Commission on labour in India (1929-31) which recommended the appointment
of labour officers to deal with recruitment in order to check corrupt practices in
industries in India particularly in areas of selection of workers. The Royal
Commission observed that:
(i) The jobber should be excluded from the engagement and dismissal of
labour and that, instead, a labour officer is appointed for the purpose
Notes (ii) The qualities required for a Labour Officer should be integrity,
personality, energy and the gift of understanding individuals and he
should have a linguistic facility. If he is of the right type, the workers
will rapidly learn to place confidence in him and regard him as a friend
(iii) All labour should be engaged by him, and none should be dismissed
without consulting him and
(iv) The Labour Officer should fulfill many duties and should particularly
initiate and administer welfare measures.
(b) Appointment of Labour Officers
Labour officers were entrusted with the responsibility of promoting welfare
activities. They functioned as industrial relations officers to handle grievances.
The Bombay Mill Owners Association in Bengal appointed labour officers to
settle grievances and disputes.
(c) The Second World War
During the Second World War, the need for enlisting labour support for the
war effort was considered imperative. These officers were generally entrusted
with the handling of welfare and labour administration. They were to deal with
working conditions, canteens, ration shops, recreation facilities, medical
facilities, worker’s housing, etc. Government as well as industry appointed
welfare officers as a result of the Second World War. The function of the welfare
officers included welfare activities, personnel activities and industrial relations.
(d) Enactment of Industrial Disputes Act
The enactment of the Industrial Disputes Act, 1947 made adjudication
compulsory. This made the welfare officer handle disputes and adjudication
relating to conditions of service, wages, benefits, etc. The welfare officer thus
became the Industrial Relations Officer. As a result, employers hired welfare
officers with a legal background.
(e) Enactment of Factories Act
Sec 49 of the Factories Act, 1948 made it obligatory for factories employing
500 or more workers to appoint welfare officers. A welfare officer had a list of
duties laid down for him. He had to perform activities concerned with welfare,
personnel administration and industrial relations.
(f) 1960 and After
Till 1960, recruitment was untouched by law but the rapid growth of industry
and the consequent demand for skilled and semi-skilled workers led to the
enactment of the Employment Exchange Act 1959 by the government ,to regulate
recruitment of workers and the Apprentice Act. 1961 to regulate the training of
workers to some extent. Thus. Human Resource Management in India began
with industrial discipline and getting rid of troublemakers. At a later stage

HR PLANNING
personnel officers were appointed as “labour welfare officers” to satisfy statutory Notes
requirements. Later the role of a personnel officer was converted into that an
“industrial relations officer”. Today his role is that of a “Human Resource
Manager”, he has to work in three areas of labour welfare, industrial relations,
and personnel administration.
SLOW GROWTH OF HRM IN INDIA

The following factors are responsible for the slow growth of HRM in India.
(a) Late Arrival of the Factory System
Human Resource Management is conditioned by industrial development.
In India, modern industry started with the development of the railways. Even
after the progress of industry, human resource management was unheard of. It
was the Royal Commission of Labour which recommended in 1931, the
appointment of Labour Officers to deal with the recruitment of labour and to
settle their grievances. Thus, the slow growth of human resource management
in India can be linked to the late arrival of large-scale industry.
(b) Low Status of the Industrial Worker
The lndian worker in the early days of industrialisation was illiterate. Get
over the years the profile of the industrial worker has changed. Now, his status
is enhanced. As a result, the handling of labour has become more professional.
Factors Facilitating Acceleration of HRM in India

The various factors which are facilitating the growth and progress of Personnel
Management in India are:
(a) Professionallisation of Human Resource Management
A professional subscribes to certain ethical standards. He is more loyal to
the profession than to the employer. With the emergence of professional
personnel managers, the growth of human resource management has
accelerated. A professional has knowledge and judgement. Which he uses to
make his decision. He is not controlled or directed by his employer. Thus,
professionalisation makes a business enterprise more efficient, dynamic and
social) responsible. The growth of personnel management education in India
has contributed to professionalisation of human resource management.
(b) Social Responsibilities of Business
Employees should be treated as human beings and their cooperation is a
must for the realization of organisational goals. The business should fulfill the
following obligations towards their employees:
(i) Fair Wages: Business should pay reasonable salaries so that their
employees may lead a good life and satisfy their needs.

Notes (ii) Adequate Benefits: Employees should be provided benefits like

housing, insurance cover, medical facilities and retirement benefits.
(iii) Good Working Conditions: Good working conditions are necessary
to maintain the health of the workers.
(iv) Opportunity for Growth: Business should give the employees the
opportunity to develop their capabilities through training and
education.
(v) Recognition of Worker’s Rights: The business should recognise the
worker’s right to fair wages, to form trade unions, to collective
bargaining, etc.
(vi) Cooperation: The business must win the cooperation of workers by
creating the conditions in which workers are willing to put forward
their best efforts towards the common goals of the business.
Therefore, a business organisation must make a conscious attempt to
contribute to the well-being and upliftment of the community in which it is
situated.
(c) Change of Government Attitude
The relationship between the state and the economy has a chequered history
since the days of the planner economist Adam Smith. During the time of Adam
Smith, the doctrine of Laissez faire was widley accepted as the guiding principle
of economic activity. The State was expected to concern itself only with problems
relating to law and order. It scrupulously avoided any interference in the
working of private business. Laissez faire was the era of free enterprises. The
doctrine of laissez faire was based on the assumption “that every individual
acting as a rational being tries to get the greatest satisfaction from life for himself
and in the process contributes towards the greatest possible satisfaction to
society”. Thus, the classical economist foundly believed that the principle of
non-interference with the economic and business matters led to “the greatest
good of the greatest numbers”.
Prior to Independence, the British Government followed a Laissez faire
attitude to labour management relations. But after Independence the National
Government took upon itself the pledge to establish a welfare state. The
Government therefore enacted many laws for the benefit of the workers.
(d) Abundance of Cheap Labour
In India, the main source of labour supply has been the growth of population.
Modern industrial sector in India attracts labour from the agricultural sector.
Industrial centres draw on their surrounding rural area for recruitment of
workers. Rapid increase of population, low degree of industrial is at ion and
HR PLANNING
widespread unemployment both in rural and urban areas have resulted in an Notes
abundant supply of labour to the industries. Since labour is in abundance, good
human relations are not necessary in India and there are arbitrary dismissals
and lay offs.
(e) Weak Labour Movement
The Indian working class is generally passive and depends on politicians
for leadership. This outside leadership has failed to understand the needs of
the working class. Instead of awakening social consciousness among the workers
the politicians in fact use the workers to achieve their political ends.
(f) Highly Authoritarian Culture
Indian society has a highly authoritarian culture. This makes the worker
dependent on his superiors. Freedom is not a value in India. This culture thus
discourages participative style of management and free communication. These
two conditions are the basis for ideal human relations, which is lacking in the
Indian condition.
(g) Technological Backwardness
Technological environment influences business in terms of investment in
technology, consistent application of technology, and the effects of technology
on markets. The immense technological progress in the west has raised the
standard of living of their workers. This is not so which the Indian workers
because of our technological backwardness. Technological progress has a very
important role to play in the economic development of a country. No backward
country can hope to march ahead on the road of economic development without
adopting newer techniques of production.
(h) Instability in Employment
The Indian workers are attracted to the cities by the lure of higher wages
but the instability of their employment, chronic housing shortage, and high
rents prevents them from settling down and bringing their families from the
village. Thus, the industrial workers would not remain in industry if they could
secure sufficient food and clothing in the villages. They are pushed, not pulled
to the city.
Evolving Role of HR Professional in India

In India, the personnel man has passed through various stages in the past.
Perhaps the earliest recognisation of the need for such an individual was the
institution of the Labour Officer. The trend today indicludes that the personnel
management function will have to become more sophisticated to meet the
challenges posed to the personnel man who has been playing a variety of roles
at different stages. A brief view of the historical perspective can provide better

Notes picture of the role or the personnel man in India. However, it has to be stilled
that the role at different stages has always been set up by the top management.
The evolving roles of the Personnel Man in India are:
(a) Origin of Human Resource Management in India
The origin of Personnel Management in India can be traced to the
recommendations of the Royal Commission on Labour in India (1929-31). The
Royal Commission emphasised recruitment and dismissal as the primary
responsibilities of the labour officer. According to the Royal Commision on
labour, the labour officer should be subordinate to no one except the general
manager of the factory and should be carefully selected. No employee should
be engaged except by the labour officer personally, in consultation with
departmental heads, and none should be dismissed without his consent expect
by the manager himself, after hearing what the labour officer has to say is of the
right type, the workers will rapidly learn to place confidence in him as their
friend”, The employers however, were indifferent to the recommendation or
the Royal Commission and the British Government in India had to take the
initiative, The Government passed The Bombay Disputes Concillation Act, 1934
which provided for the appointment of a government labour officer to deal
with labour grievances, Employers in Bombay and other parts of India soon
followed the example set by the British Government in India.
(b) The Police Man
The labour officer, at this stage, was also visualised as having to perform
police functions as the position between the employers and workers was often
viewed as a law and order problem, Thus the earliest role that the personnel
man played was that of a policeman. This was so because the management
believed that the average employee disliked work, avoided responsibility and
therefore needed to be directed, controlled and coerced. A person was needed
to discipline and control employees on behalf of the management. The personnel
man took over the job. Dos and don’ts were laid down and the personnel man
became a watchdog for enforcement of prescribed regulations.
(c) The Welfare Man
After the enactment of the Factories Act, 1948, the labour officer’s function
changed from mere employement functions to welfare activities. The Factories
Act created the institution of labour welfare officer, making it compulsory for
factories with 500 or more workers to employ the number of welfare officers.
Efforts were now afoot to amend and enlarge the duties of the welfare man.
This was so because, voluntarily provided welfare was not found adequate
and thus, the welfare officer had a list of duties laid down for him.

HR PLANNING
(d) The Law Man Notes

With the acceptance of the ideal of welfare state, laws and regulations were
enacted to define the rights of employees and to limit the employer’s
prerogatives. Legal knowledge thus became a preferential attribute of the
personnel man. He was assigned the task of issuing charge sheets and holding
enquiries. He was called upon to assess the legal obligation of the management
and to represent the management in the case of industrial disputes.
(e) The Liaison Man
Someone was required to deal and negotiate with the union on behalf of the
management. Industrial relations become important with the advent of the trade
union. The personnel man became a shock absorber. He was given the difficult
task of bringing two opposite parties to the negotiating table and to act as a
liaison man.
(f) The HR Professional
A gradual shift of emphasis from that of a liaison man to personnel
administration has taken place. The function of a personnel manager includes
labour, welfare, industrial relations and personnel administration. An
organisation must look after the needs of its personnel. It must provide training
facilities, motivate employees to put their best effort and do manpower planning
and development. Thus, more competent managers will be needed for the future.
HRM MODEL
In recent years there has been relative agreement among HRM specialists as to
what constitute; the field of HRM. The model developed by the American Society
for Training and Development (ASTD) identifies nine human resource areas:
(a) Training and Development
(b) Organisation Development
(c) Organisation/Job Design
(d) Planning
(e) Selection and Staffing
(f) Personnel Research and Information Systems
(g) Compensation/Benefits
(h) Employee Assistance
(i) Union/Labour Relations
(a) Training and Development
Organisations and individuals should proceed together for their survival
and attainment of mutual goals. Employee training is a specialised function

Notes and is one of the fundamental operative functions of HR management. Training

improves, changes, and moulds the employee’s knowledge, skill, behaviour,
aptitude and attitude towards the requirements of the job and the organisation.
Training bridges the gap between job requirements and employee’s present
performance. Management development is a systematic process of growth and
development by which managers develop their abilities to manage. It is a
planned effort to improve current or future managerial performance.
(b) Organisation Development
Management can effectively meet challenges of change through a systematic
and planned change effort. Organisation development is the modern approach
to management of change and human resource development. According to Dale
S. Beach, organisation development is “a complex educational strategy designed
to increase organisational effectiveness and wealth through planned intervention
by a consultant using theory and techniques of applied behavioural science”.
Organisation Development (OD) concentrates on people dimensions like norms
values. Attitudes, relationships, and organisational climate. The OD efforts
broadly aim at improving the organisational effectiveness and job satisfaction
of employees. Humanising the organisation and encouraging personal growth
of individual employees can attain the same.
(c) Organisation/Job Design
Organisation design deals with structural aspects of organisations. It aims
at analysing roles and relationships so that collective effort can be explicitly
organized to achieve specific ends. The design process leads to development of
an organisation structure consisting of units and positions. There are
relationships involving exercise of authority and exchange of information
between these units and positions.
Michel Armstrong has defined job design as “the process of deciding on the
content of a job in terms of its duties and responsibilities on the methods to be
used in carrying out the job in terms of techniques, systems and procedures
and on the relationships that should exists between the job holders and his
superiors, subordinates and colleagues”. Thus, job design is the process of
determining the specific tasks and responsibilities to be carried out by each
member of the organisation. It has many implications for HR management. An
employee’s motivation and job satisfaction are contingent on varied factors like
job content, his abilities his level of performance etc.
(d) Planning
Human resource planning may be defined as the process of assessing the
organisation’s HR needs in the light of organisational goals and making plans
to ensure that a competent, stable work force is employed. The efficient
HR PLANNING
utilisation of organisational resources human, capital and technological does Notes

not just happen without the continual estimation of future requirements and
the development of systematic strategies designed towards goal
accomplishment. Organisational goals have meaning only when people with
appropriate talent, skill and knowledge are available to execute the tasks needed
to realise those goals.
(e) Selection and Staffing
After identifying the sources of human resources, searching for prospective
employees and stimulating them to apply for jobs in the organisation, the
management has to perform the function of selecting the right employees at the
right time. The selection process involves judging candidates on a variety of
dimensions, ranging from the concrete and measurable, like years of experience,
to the abstract and personal, like leadership potential. To do this, organisations
relay on many selection devices, including application forms, initial interview,
reference checks, tests, physical examinations and final interview. All selection
activities, from the initial screening to the physical examination if required,
exist for the purpose of making effective selection decisions. Each activity is a
step in the process that forms a predictive exercise managerial decision makers
seeking to predict which job applicant will be successful if hired. “Successful”,
in this case, means performing well on the criteria the organisation uses to
evaluate personnel. It is important to have a good organisation structure, but it
is even more important to fill the job with right people. Staffing includes several
sub-functions:
(i) Recruitment or getting applications for the job as they open up.
(ii) Selection of the best quality from those who seek the jobs.
(iii) Transfers and promotions.
(iv) Training those who need further instruction to perform their work
effectively or to qualify for promotions.
Importance and Need for Proper Staffing: There are a number of advantages
of proper and efficient staffing. These are as under:
(i) It helps in discovering talented and competent workers and developing
them to move up the corporate ladder.
(ii) It ensures greater production by putting the right man in the right job.
(iii) It helps to avoid a sudden disruption of an enterprise’s production
run by indicating shortages of personnel, if any, in advance.
(iv) It helps to prevent under utilisation of personnel and the resultant
high labour cost and low profit margins.
(v) It provides information to management for internal succession of
managerial personnel in the event of an unanticipated turnover.
Notes (f) Personnel Research and Information Systems

The term research means a systematic and goal oriented investigation of
facts that seeks to establish a relationship between two or more phenomena.
Research can lead to an increased understanding of and improvement in HRM
practices. Managers make decisions and solve problems. To make decisions
about personnel and to solve HR problems, managers gather data and draw
conclusions from them. Research can lead to an increased understanding of
and improvement in HRM practices. In fact, engaging in some type of research
into what is happening in the HRM discipline can be viewed as necessary for
one’s survival as a manager over the long term. Research can additionally help
managers answer questions about the success of programmes such as those for
training and development for which they may bear responsibility.
(g) Compensation/Benefits
Wages and salaries (the payment received for performing work) are a major
component of compensation and reward process which is aimed at reimbursing
employees for their work and motivating them to perform to the best of their
abilities. In addition to pay, most employees receive benefits such as ESI, leave
travel concession, and non-financial rewards such as security, recognition and
privileges. Although individual employees value pay differently in relation to
other work rewards, for most people the pay received for work is a necessity.
Determining wage and salary payments is one of the most critical aspects
of HRM because:
(i) the organisation’s reward system has such a profound effect on the
recruitment, satisfaction and motivation of employees, and
(ii) wage and salaries represent a considerable cost to the employer.
A carefully designed wage and salary programme that is administered
according to sound policies and consistently applied rule is essential if human
resources are to be used effectively to achieve organisational objectives.
(h) Employee Assistance
Employee assistance focuses on providing personal problem solving,
counseling to individual employees.
(i) Union/Labour Relations
Unions are born because employees are frustrated in achieving important
goals on an individual basis and unionising is the only countervailing technique
available to achieve these goals. The establishment of good labour relations
depends on constructive attitude on the part of both the management and the
union. The constructive attitude in its turn depends on all the basic policies and
procedures laid down in any organisation for the promotion of healthy industrial
relations.
HR PLANNING
Environmental Influence on HRM Notes

Personnel managers do not perform their job in a vacuum. As a number of
environmental factors affect HRM. Environment furnishes the macro context
and the organisation is the micro unit. Of primary importance here are the
external influences of economic conditions, labour markets, laws and regulations
and labour unions. Each of these external factors separately or in combination
can influence the HRM function of any organisation. Changes in the external
environment have a profound impact on the personnel. These changes include
technological obsolescence, cultural and social changes, and policies of the
Government.
The external environment consists of factors that affect an organisation’s
human resources from outside it. Let us examine these factors in detail:
(a) Technological Innovation
Rapid technological changes and innovations are taking place all over the
world. As a result of these technical personnel are increasingly required. Hence,
procurement of technically skilled employees is necessary to match the changing
job requirements.
(b) Economic Factors
Economic conditions influence financial “health” of the organisation. Under
favourable economic conditions, expansion of existing programs and creation
of new programs are very likely. With less favourable or deteriorating
conditions, contraction or cancellation of some programs may be necessary.
Thus, a number of economic factors affect human resources management of an
organisation by influencing its operations.
(c) Employee’s Organisations
Employee’s organisations have mustered strength to match the growth of
industrialisation. Labour unions seek to bargain with management over the
terms and conditions of employment for their members. As a consequence,
most HR activities are subject to joint decision making when employees are
represented by unions.
(d) Labour Markets
In labour markets, organisations seek employees (demand for labour), and
individuals offer their services to organisations (supply of labour). Labour
supply and demand have implications on all activities, but particularly for
compensation and external staffing. Moreover, they are generally not subject to
organisational control, thereby creating potential turbulence and uncertainty
for HR management.
(e) Changing Demand of Employers
Organisations also undergo changes and consequently their demands on
employees also change. The technological revolution and stiff business
Notes competition demands that the existing employees adapt to every changing work
situation and learn new skills, knowledge etc., to cope up with the new changes.
(f) Legal Factors
One of the most important external factors that affect HRM is the legal
environment. The management cannot handle the human resources at will. It
has to manage its employees according to the legislation enacted by the
government at the centre and the states.
The Important Legislations Enacted in India Affecting HRM are, Factories
Act, Trade Unions Act, Workmen’s Compensation Act, The Payment of Wages
Act, The Minimum Wages Act. Payment of Gratuity Act, and The Maternity
Benefit Act. The government is the custodian of industrial and economic
activities.
(g) Human Resource in the Country
The structure, values and the level of education of human resources in the
country influence the HRM function of any organisation. The influence of
manpower in the country can be studied through:
(i) change in the structure of employment with the entry of workforce
with different backgrounds.
(ii) changes that have taken place in the structure of the workforce over
the years and led to the emergence of new values in organisations.
(iii) increased level of formal education which has led to changes in the
employee attitude.
Well-educated employees always challenge and question the management’s
decisions and want a voice in the company’s affairs affecting their interest. Thus,
many environmental factors affect the performance of specific tasks of HRM.
Changes in the internal and external environmental factors complicate the job
both of line and personnel managers in overseeing the contributions of human
resources. Considering the complexities and challenges in the HRM now and
in near future managements have to develop sophisticated techniques and
competent people to manage personnel on sound lines.
CHALLENGES FACED BY HRM TODAY

Change has become ephemeral everywhere be it economy, politics, and business,
and so on. These changes require HRM to play an ever more crucial role in
organisations.
The Changing Environment

(i) Work Force Diversity: The Indian work force is characterised by
diversity such as more women entering the work force, minority group
members, older workers, etc. The increasing number of women in the
HR PLANNING
work force has necessitated the implementation of more flexible work Notes
scheduling, child-care facilities, maternity leave and transfer to location
of husband’s place of posting.
The diverse work force has become a challenge for the HR manager.
Diversity is marked by two fundamental and inconsistent realities
operating within it. One is that organisations claim they seek to
maximise diversity in the workplace. The second is that the traditional
human resource system will not allow diversity, only similarity. Experts
in the field emphasize that employers traditionally hire, appraise and
promote people who fit a particular employer’s image of what
employees should believe in and do.
(ii) Economic and technological change: Technology has become the
hallmark of modern organisations: The explosive growth of information
technology linked to the internet has ushered in many changes
throughout the organisation. One of the major changes is the “fall of
hierarchy”. This fall of hierarchy is because earlier, if one wanted
information one had to stick to the chain of command. Now, that has
changed; one has to just tap in. That is why hierarchy has broken down.
Now, employees do not need to be present at a definite place of work.
Instead, they can work from their own places through the net. This has
given birth to the ‘virtual organisation’. These economic and
technological changes have created an altogether different environment
for HRM.
(iii) Globalisation: New Economic Policy, 1991, has globalized the Indian
economy.
Firms that formerly competed only with local firms now have to
compete with foreign firms/ competitors. Globalisation has given rise
to MNCs. The MNCs are characterised by their cultural diversity,
intensified competition, variations in business practices, etc. Given
these conditions from tapping the global labour force to formulating
selection, training and compensation policies for expatriate employees,
major challenges have arisen for HRM.
(iv) Organisational Restructuring: Organisational restructuring is used
to make the organisation competitive. As a part of organisational
changes, many organisations have ‘right sized’ themselves in various
ways such as eliminating layers of managers, closing facilities, merging
with other organisations, or out placing workers. Whatever the form
of restructuring, jobs are being redesigned and people are affected.
One of the challenges that HRM faces with organisational restructuring

Notes is dealing with the human consequences of change. As such, HRM

needs to focus on the changed scenario, uniquely resulting in HR
activities becoming crucial for HR managers.
(v) Changing Nature of Work: With change in technology, the nature of
jobs and work has also changed. One of the most significant changes
in the nature of work is from mannual to knowledge work. As such,
the HR enviroment has changed. The challenge posed by the changed
environment is fostering HRM practices to respond to the need and
requirement of knowledge workers. Every organisation depends
increasingly on knowledge patents, processes, management skills,
technologies and intellectual capital. As a result of these changes,
organisations are giving and will continue to give growing emphasis
to their human capital, i.e., knowledge, education, training skills and
expertise of their employees.
Changing Role of the HR Manager

The HR environment is changing and so is the role of the HR manager. The HR
manager today has to adapt to suit the changed environment. Some of the
important HR practices are explained below:
(i) Flatter Organisations: The pyramidal organisation structure is getting
converted into that organisation. The reducing levels of hierarchy mean
that more people report to one manager. Therefore, employees will
have to work on their own will with less interference from the manager.
(ii) Employee Empowerment: Gone are the days when managers exercised
formal power over employees to get work done. Under the changed
conditions, employees have now become ‘knowledge workers’.
Knowledge workers need to be provided with greater autonomy
through information sharing and provision of control over factors that
affect performance. Granting sanction to the employers to make
decisions in their work matters is called ‘employee empowerment’.
(iii) Team Work: Modern organisations rely more on multi function of
workers so that workers do not remain confined to a single function
but can do more than one function. Employees contribute to
organisation more as members of the team. The managerial
implications are that these workers should be managed as a team and
not as an individual in isolation. Therefore, managers need to follow a
holistic approach of management.

HR PLANNING
(iv) Ethical Management: Ethical issues pose fundamental questions about Notes
fairness, justice, truthfulness and social responsibility. Ethics therefore
means what ‘ought’ to be done. For the HR manager, there are ethical
ways in which the manager ought to act relative to a given human
resource issue. Research conducted by Robert D Gate wood and Archie
B Carnell provides some guidelines that can help the HR manager:
 Does the behaviour or result achieve comply with all applicable
laws, regulations and government codes?
 Does the behaviour or result achieved comply with all
organisational standards of ethical behaviour?
 Does the behaviour or results achieved comply with professional
standards of ethical behaviour?
 The points mentioned above pertain only to complying with laws
and regulations. Organisational members need to go beyond laws
and regulations. They need to be guided by values and codes of
behaviour. Here it becomes the responsibility of the HR manager
to conduct training programmes to induce ethical behaviour in
organisations.
HUMAN RESOURCE DEVELOPMENT (HRD)

 People are the real assets of an organisation. Organisations depend on
people for their survival and growth. HRD is a positive concept in
human resource management. It is based on the belief that an
investment in human beings is necessary and will invariably bring in
substantial benefits to the organisation in the long run. It aims at overall
development of human resources in order to contribute to the well-
being of the employees, organisation and the society at large.
Definition of HRD
 HRD is rooted in the belief that human beings have the potential. It
places a premium on the dignity and tremendous latent energy of the
people.
 According to Prof. T. V. Rao, HRD is the process of helping people to
acquire competencies. In an organisational context, HRD, is a process
by which the employees of an organisation are helped in a continuous
and planned way to:
 Acquire or sharpen capabilities required to perform various functions
associated with their present or expected future roles.
 Develop their general capabilities as individuals and discover and
Notes exploit their inner potential for their own and/or organisational
development purposes.
 Develop an organisational culture in which supervisor subordinate
relationships, team work and collaboration among sub units are strong
and contribute to the professional well-being, motivation and pride of
employees.
Looking at the above definition, we can say that HRD aims at helping people
to acquire competencies required to perform their functions effectively thereby
making their organisations do well.
HRD process is facilitated by mechanisms (instruments or sub-systems) like:
(a) Performance appraisal
(b) Training
(c) Organisational Development (OD)
(d) Feedback and Counseling
(e) Career development
(f) Job rotation, and
(g) Rewards.
Employees are continuously helped to acquire new competencies through
a process of performance planning, feedback, training, periodic review of
performance, assessment of the developmental needs and creation of
development opportunities through training, job rotation, responsibility
definition and such other mechanisms.
Need for HRD

HRD is needed by every organisation that is interested in:
 Stabilizing itself
 Growth
 Diversifying
 Renewing itself to become more effective
 Improving its systems and services
 Change and becoming more dynamic
 Playing leadership roles.
HRD Intervention and Industrial Relations

Good industrial relations based on mutual trust and goodwill make the
execution of HRD programmes easy. In HRD unions are encouraged to make a
HR PLANNING
trust towards the psychological and social well-being of workers. The important Notes
areas in which unions can participate are:
 Unions can pass on greater and more varied information to workers
about themselves and the organisation.
 Unions can play a very positive role in providing counselling services
to employees.
 Unions can play a development role in education of workers.
 Unions can help management in developing innovative welfare
schemes for employees such as worker’s cooperatives, worker’s banks,
nursery schools, etc.
 Unions can help worker’s families in several ways. They can provide
guidance in respect of education, They can provide conciliation services
in settling family quarrels, and they can help in creating jobs for the
wives of workers.
 Unions can play a very significant role in generating data on various
dimensions of workers needs, aspirations, standard of living, etc.
Quality of Work Life and Employee Welfare

The term employee welfare means the efforts to make life worth living for
workmen. It includes various services, facilities and benefits offered to
employees by the employers and government. Quality of Work Life (QWL)
comprises systematic efforts made by organisations to give workers a greater
opportunity to affect the way they do their jobs and the contributions they make
to the organisation’s overall effectiveness. In an HRD system, there is always a
focus on employee welfare and quality of work life. Employees must not only
be given good wages, they should also be provided with good physical
conditions and motivating work. If the work is monotonous or boring it must
be redesigned. HRD systems focus on employee welfare and QWL by
continually examining employee needs and meeting them to the best possible
extent.
Outcomes of HRD
Each of the subsystems described above contribute to the achievement of overall
HRD goals. Potential appraisal focuses on identifying the employee’s future
role in the organisation. Organisation development aims at developing team
spirit and self renewing skills. The contributions of these HRD subsystems result
in HRD outcomes which are given below:
1. People in organisations become more competent because:
 They become better aware of the skills required for job performance.
 There is greater clarity of norms and standards.
Notes 2. People understand their roles better because of increased

communication.
3. People become more committed to their jobs because there is greater
objectivity.
4. People develop greater trust and respect for each other.
5. There is greater collaboration and team work which produces synergy
effect.
6. People find themselves better equipped with problem-solving
capabilities. There is greater readiness on their part to accept change.
7. Useful and objective data on employees is generated which facilitates
better human resource planning.
8. The top management’ becomes more sensitive to employee’s problems
and human processes due to increased openness in communication.
Table 1: Difference between Human Resource Management and HRD
Human Resource Management Human Resource Development
I. The HRM function is a routine, 1. HRD is a continuous development

maintenance-oriented administrative function. The major attention of HRD
function. is on improving the human processes.
2. HRM function is seen as an 2. HRD is viewed as a sub system of a
independent function with larger system. This means that the
independent sub functions. design of HRD cannot be considered
in isolation.
3. HRM function is regarded as mainly 3. HRD is regarded as a proactive
a reactive function responding to the function. The function of HRD is not
demands of the organisation as and merely to cope with the needs of the
when they arise. organisation but to anticipate them and
to act on them in advance in a
continuous and planned way.
4. HRM is supposed to be the 4. HRD aims at developing the
exclusive responsibility of the capabilities of all line managers to
personnel department. carry out various personnel functions
themselves.
5. HRM takes a very narrow view of 5. HRD takes a much wider view of its
its scope and aims only at scope and aims at developing the total
developing and administering organisation.
people.
6. HRM function considers salary, 6. HRD emphasises the importance of
economic rewards, job higher needs in motivating individuals.
simplification and job specialisation It considers informal organisation,
as important motivators. autonomous work groups, job
enrichment, job challenge and
creativity as the main motivating
forces.
7. HRM function considers improved 7. HRD considers improved performance
satisfaction and morale as the cause as the cause and improved satisfaction
of improved performance. and morale as its results.

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Table 1 shows that the traditional HRM function responds to the needs of Notes
the organisation as and when they arise. The HRD function does not merely
respond to organisational requirements but anticipates and prepares the people
and the organisation to face future challenges with confidence. HRM therefore
is viewed as the primary job of the HR department, while HRD is the
responsibility of all the people in the organisation.
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Definitions of HR Planning
According to Geisler, “HR planning is the proccss (including forecasting,
devcloping and controlling) by which a firm ensures that it has the right number
of people and the right kind of people at the right places at the right time doing
work for which they are economically most useful.”
According to Wendell French human resource planning may be defined

“as the process of assessing the organisation’s human resources needs in the
light of organisational goals and making plans to ensure that a competent, stable
work force is employed.”
From the above definitions we can get some general characteristics of human
resource planning. They are:
1. Human resource plan must incorporate the human resource needs in

the light of organisational goals.
2. Human resource plan must be directed towards well defined objectives.
3. Human resource plan must ensure that it has the right number of people
and the right kind of people at the right time doing work for which
they are economically most useful.
4. Human resource planning should pave the way for an effective

motivational process.
5. A human resource plan should take into account the principle of

periodical reconsideration of new developments and extending the
plan to cover the changes during the given long period.
6. Adequate flexibility must be maintained in human resource planning

to suit the changing needs of the organisation.

Notes The HR manager must follow a systematic process for HR planning as given
below:
FO RECASTING DEM AND
Considerations
• P rodu ct/Se rvice de m a nd
• T echnology Techniques BALANCING SUPPLY
• O rganisa tio nal grow th • Trend analysis AND DEM AND
• F inan cial resources • Estim ation
• M ana gem ent ph ilosop hy • Delphi RECRUIT –
• A bsen tee ism technique (Fo r shortages).
• L abour tu rn over E m ployees can be
recruited fo r full tim e
vacancie s, part tim e
basis or on co ntract
basis. W e m a y also
FO RECASTING SUPPLY
recall retrenched
w orkers
External Considerations
Techniques • D e m o graphic charges
REDUCTIO N O F
• Marko • L abour m o bility
SURPLUS STAFF –
analysis • P olicies of governm en t
O rg anisations layoff,
• Replacem ent • E du ca tio n level of
term inate o r give
chart w o rke rs
golden hand sh ake to
• Succession surplu s w ork force
Fig. 3: Flowchart depicting ‘Human Resource Planning Model’.
Objectives of HR Planning
It is clear that the failure in HR planning will be a limiting factor in achieving
the objectives of the organisation, If the number of persons in an organisation is
less than the number of persons required, then, there will be disruptions in the
work, production will be hampered, the pace of production will be slow and
the employees burdened with more work, If on the other hand, there is surplus
manpower in the organisation, there will be unnecessary financial burden on
the organisation in the form of a large pay bill if employees are retain in the
organisation, or if they are terminated the compensation will have to be paid to
the retrenched employees. Therefore, it is necessary to have only the adequate
number of persons to attain the objectives of the organisation.
In order to achieve the objectives of the organisation, the HR planner should
keep in mind the timing and scheduling of HR planning, Furthermore, the
management has to be persuaded to use the results of manpower planning
studies.
Manpower planning can also be used as an important aid in formulating
and designing the training and development programmes for the employees
because it takes into account the anticipated challenges in the HR requirements
of the organisations.
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Importance of HR Planning Notes

HR planning is a highly important and useful activity. Without clear cut
planning, an estimation of the organisation’s human resource needs is reduced
to mere guesswork. If used properly, it offers a number of benefits. These are:
1. Planning defines future manpower needs and this becomes the basis
of recruiting and developing personnel.
2. Employees can be trained, motivated and developed in advance and
this helps in maintaining future needs for high-quality employees,
3. Change in technology has attached more importance to knowledge
and skill resulting in surplus man power in some areas and shortage
in other areas. HR planning helps in creating a balance in such a
situation.
4. Jobs are becoming more and more knowledge oriented. This has
resulted in a changed profile of HR because of increased emphasis on
knowledge, recruitment costs have also increased. To avoid the high
cost of recruitment, proper HR planning is necessary.
5. The organisation can have a reservoir of talent at any point. People
with requisite skills are readily available to carry out the assigned tasks.
6. Planning facilitates the preparation of an appropriate manpower
budget for each,department. This in turn, helps in controlling
manpower costs by avoiding shortages/ excesses in manpower supply.
Systematic HR planning forces top management of an organisation to
participate actively in total HR management functions. When there is active
involvement of top management they will appreciate the real value of human
resources in achieving organisational effectiveness.
Process of HR Planning
With the expansion of business, adoption of complex technology and
professional management techniques, the process of HR planning has assumed
greater significance. It consists of the following stages.
(a) Analysing Organisational Plans and Deciding on Objectives
Before undertaking the HR planning of an organisation the short term
and long term objectives should be analysed. The process of HR
planning should start with analysing the organisational plans and
programmes. They help in forecasting the demand for human resources
as it provides the quantum of future work activity.
(b) Analysing Factors for Manpower Requirements
The existing job design and analysis may be reviewed thoroughly
keeping in view the future capabilities, knowledge and skills of present
Notes employees. The job design and analysis should reflect the future human
resources and organisational plans. The factor for manpower
requirements can be analysed in two ways:
(i) Demand Forecasting: Forcasting the overall HR requirements in
accordance with the organisational plans.
(ii) Supply Forecasting: Obtaining the data and information about the
present inventory of human resources and forecast the future
changes in present human resource inventory.
(c) Developing Employment Plans
After determining the number of personnel for each job in the
organisation, the HR department has to spell out the job description
and job specification.
Job Description: A job description generally describes the work to be
performed, the responsibilities involved, the skill or training required,
conditions under which the job is done, relationships with other jobs
and personal requirements on the job.
Job specification: It is an output of job description, and states the
minimum acceptable qualifications that the newcomer must possess
to perform the job satisfactorily and successfully.
(d) Developing Human Resource Plans
Net HR requirements in terms of number and components are to be
determined in relation to the overall HR requirement. After estimating
the supply and demand of human resources, the management starts
the adjustment. When the internal supply of employees is more than
the demand, that is, there is a human resource surplus then the external
recruitment is stopped. If there is a human resource deficit, then the
planners have to rely on external sources.
Strategies for HR Planning

The objective of manpower planning is to help the organisation achieve its goal.
For this purpose the manpower planners have to develop some strategies. Stainer
has suggested nine strategic points for the benefit of manpower planners:
(a) They should collect, maintain and interpret relevant information
regarding HR.
(b) They should periodically report manpower objectives, requirements
and existing employment and allied features of manpower.
(c) They should develop procedures and techniques to determine the
requirements of different types of manpower over a period of time
from the standpoint of organisation’s goals.

HR PLANNING
(d) They should develop measures of manpower utilisation as components Notes

of forecasts of manpower requirement along with independent
validation.
(e) They should employ suitable techniques leading to effective allocation
of work with a view to improving manpower utilisation.
(f) They should conduct research to determine factors hampering the
contribution of individuals and groups to the organisation with a view
to modifying or removing these handicaps.
(g) They should develop and employ methods of economic assessment of
HR reflecting its feature as income generation cost, and accordingly
improving the quality of decisions affecting the manpower.
(h) They should evaluate the procurement, promotion and retention of
the effective HR and
They should analyse the dynamic processes of recruitment, promotion and
loss to the organisation and control them with a view to maximising individual
and group at minimum cost.
Advantage of HR Planning Progammes

As the manpower is concerned with optimum use of HR, it can be of great
benefit to the organisation in particular and to the nation in general. At the
national level, it would be concerned with factors like population, economic
development, educational facilities and labour mobility. At the level of the
organisation it is concerned with personnel requirements, sources of availability,
the welfare of HR, etc.
The advantages of HR planning are discussed below:
(a) Improvement of Labour Productivity
Manpower or HR as a factor of production differs from other factors
of production. As it is subject to its free will the productivity of labour
can be improved if the workers are kept satisfied. In other words just
as the satisfied workers can be productive, dissatisfied workers can
even be destructive. Therefore, through proper HR planning we can
improve the moral of the labour and thereby labour produclivity.
(b) Recruitment of qualified HR
Talented and skilled labour has become a searce resource, especially
in developing countries. Therefore, for the survival of the firm it is
essential to recruit the best labour force through proper manpower
planning.
Notes (c) Adjusting with Rapid Technological Changes

With the advancement in technology, job and job requirements are
changing. Therefore, it is necessary to forecast and meet the changing
manpower, which can withstand the challenges of the technological
revolution.
This can be done through effective manpower planning.
(d) Reducing Labour Turnover
Labour turnover, refers to the mobility of labour out of the organisation
due to various factors, such as dissatisfaction, retirement, death, etc.
Due to labour turnover a firm loses experienced and skilled labour
force. This loss can be minimised through efficient manpower planning.
(e) Control over Recruitment and Training Costs
Highly skilled personnel are in short supply and it is costly to hire,
train, and maintain them. A company has to incur heavy costs in
processing applications, conducting written tests, interviews, etc., and
in the process providing adequate training facilities. In consideration
of these costs it is essential to plan carefully vis-a-vis manpower so as
to minimize costs.
(f) Mobility of Labour
Today it is difficult to retain qualified personnel in an organisation as
they move from one job to another in search of better prospects. In a
free society, people enjoy unrestricted mobility from one part of the
country to the other. Therefore, in order to reduce the loss of
experienced and skilled labour, every organisation must have a sound
system of manpower planning.
(g) Facilitating Expansion Programmes
In these days of rapid industrial development every company goes for
expansion of its activities. With the increase in company size, the
demand for HR also increases. This necessitates proper manpower
planning so as to ensure the continued supply of the required
manpower for the firms’ activities.
(h) To Treat Manpower Like Real Corporate Assets
Today it is being increasingly felt by the practicing managers and
psychologists that employees in an organisation must be treated as
the most significant assets. The productivity of a company can be
improved only through manpower planning, recognizing the
significance of the human factor in business. A proper manpower

HR PLANNING
planning is based on the realization that satisfied workers can Notes

contribute to the overall profitability of the firm through improved
productivity.
Limitations of HR Planning
The main hurdles in the process of HR planning are:
(a) Inaccuracy
HR planning involves forecasting the demand for and supply of HR.
Projecting manpower needs over a period of time is a risky task. It is not possible
to track the current and future trends correctly and convert the same into
meaningful action guidelines. Longer the time taken, greater is the possibility
of inaccuracy. Inaccuracy increases when departmental forecasts are merely
aggregated without critical review. Factors such as absenteeism, labour turnover,
seasonal trends in demand, competitive pressures, technological changes etc.,
may reduce the rest of manpower plans as fashionable, decorative pieces.
(b) Uncertainties
Technological changes and market fluctuations are uncertainties, which
serve as constraints to HR planning. It is risky to depend upon general estimates
of manpower in the face of rapid changes in environment.
(c) Lack of Support
Support from management is lacking. The latter is unwilling to commit
funds for building an appropriate HR Information System. The time and effort
involved with no tangible and immediate gains often force them to look the
‘other way’.
 HR planning grows slowly and gradually. In some cases, sophisticated
technologies are forcefully introduced just because competitors have
adopted them. These may not yield fruit unless matched with the needs
and environment of the particular enterprise.
 Planning is generally undertaken to improve overall efficiency. In the
name of cost cutting it also helps management weed out unwanted
labour at various levels. The few efficient ones that survive such
frequent onslaughts complain about increased workload.
Support from management is lacking. The latter is unwilling to commit
funds for building an appropriate HR information system. The time and effort
involved with no tangible, immediate gains often force them to look the ‘other
way’. HR planning grows slowly and gradually. In some cases, sophisticated
technologies are forcefully introduced just because competitors have adopted
them. These may not yield fruit unless matched with the needs and environment
of the particular enterprise.
Notes (d) Numbers’ Game

In some companies, HR planning is used as a numbers’ game. The focus is
on the quantitative aspect to ensure the flow of people in and out of the
organisation. Such an exclusive focus overlooks the more important dimension,
i.e. the quality of human resources. HR planning, in the long run, may suffer
due to an excessive focus on the quantitative aspects. Aspects such as employee
motivation, morale, career prospects, training avenues, etc may be totally
discounted.
(e) Employees Resistance
Employees and trade unions feel that due to widespread unemployment
people will be available for jobs as and when required. Moreover they feel that
HR planning increases their workload and regulates them through productivity
bargaining.
(f) Employers Resistance
Employers may also resist HR planning on the ground that it increases the
cost of manpower.
(g) Lack of Purpose
Managers and HR specialists do not fully understand the human planning
process and lack a strong sense of purpose.
(h) Time and Expense
Manpower planning is a time consuming and expensive exercise. A good
deal of time and costs are involved in data collection and forecasting.
(i) Inefficient Information System
In most of the organisations, human resource information system has not
been fully developed. In the absence of reliable data, it is not possible to develop
effective HR plans.
Guidelines for Making HR Planning Effective

Some of the steps that may be taken to improve the effectiveness of HR planning
are given below:
(a) Objectives
The HR plan must fit in with the overall objectives of the organisation.
Important aspects such as working conditions and human relationships must
be kept in mind while developing the plan. The HR plan should be balanced
with the corporate plan of the enterprise. The methods and techniques used
should co-operate the objectives, strategies and environment of the particular
organisation.

HR PLANNING
(b) Top Management Support Notes

The plan must meet the changing needs of the organisation and should
enjoy consistent support from top management. Before starting the HR planning
process the support and commitment of top management should be ensured.
Moreover, the exercise should be carried out within the limits of a budget. There
is no use formulating plans, which cannot be implemented due to financial
constraints.
(c) Appropriate Time Horizon
The period of an HR plan should be appropriate to the needs and
circumstances of the specitic enterprise. The size and structure of the enterprise
as well as the changing aspirations of the people should be taken into
consideration.
(d) Manpower Inventory
The quantity and quality of HR should be stressed in a balanced manner.
The emphasis should be on tilling future vacancies with right people rather
than merely matching existing people with existing jobs. The organisation must
have an up-to-date employee skills inventory showing pervious jobs held tenure
on current job, educational and training qualifications, specific knowledge and
skills, prior work performance, past and current compensation, mobility factors.
Markov Analysis (an approach to forecast the internal supply of manpower
tracking past patterns of personnel movements) may be pressed into service
while preparing the manpower inventory. Upward mobility of existing staff
needs to be considered carefully.
(e) HR Information System
An adequate database should be developed for HR to facilitate HR planning.
To manage employee skills inventories, organisations should maintain
computerised HR information systems containing data on individuals,
demographics, career progression, appraisals, skills, interests. training, target
positions, performance ratings, geographic preferences, promotability ratings,
etc.
(f) Adequate Organisation and Coordination
HR planning should be properly organised. A separate manpower planning
division must be created, especially in large organisations to coordinate
manpower planning exercise at various levels. The various plans for
procurement, promotion and retention of HR should include filling future
vacancies with the right people.

Notes Responsibility for HR Planning

HR planning is the responsibility of tile personnel department. The department
has to recommend relevant personnel policies in respect of HR planning, devise
methods and procedures and determine the quantitative aspects of HR planning.
Geisler has enumerated the responsibility of the personnel department with
regard to HR planning in the following words:
1. To assist, counsel and pressurise the operating management to plan
and establish objectives .
2. To collect and summarise data in total organisational terms and to
ensure consistency with long range objectives and other elements of
the total business plan.
3. To monitor and measure performance against the plan and keep the
top management informed about it.
4. To provide the research necessary for effective manpower and
organisational planning.
Techniques of HR Demand Forecasting

In forecasting the demand for human resources, a variety of organisational
factors, including competitive strategy, technology, and productivity can
influence the demand for labour. A key component of HRP is forecasting the
number and type of people needed to meet the organisational objectives. The
ever changing environments in which organisations operate contribute to the
problem of forecasting. There are two approaches to HR forecasting: quantitative
and qualitative.
Quantitative Approach: This approach involves the use of statistical or
mathematical techniques. Though there are many methods, one of the method
is trend analysis which forcasts employment requirements on the basis of some
organisational index. Trend analysis is done by following several steps as given
below:
 First select an appropriate business factor. The best available factor
could be sales which are used as a predictor in trend analysis .
 Second, we have to plot the historical trend of the business factor in
relation to the number of employees. The ratio of the employees to the
business factor will provide labour productivity. For example sales
per employee .
 Third, compute the productivity ratio for at least the past five years.
The more the number of years the better it is to compute the trend
analysis.

HR PLANNING
 Fourth, calculate the HR demand by multiplying the business factor Notes

by the productivity ratio .
 Last, project the human resources demand out to the target year.
Other, more sophisticated statistical planning methods include modelling
or multiple predictive techniques. Advanced technology and computer software
have made forecasting more accurate and affordable even to small businesses.
Qualitative Approach: In contrast to quantitative approaches, qualitative
approaches to forecasting attempt to reconcile the interest, abilities, and
aspirations of individual employees with current and future staffing needs of
an organisation. Qualitative approach relies on the opinions of supervisors,
departmental managers and experts. The Delphi method, a qualitative
forecasting method attempts to decrease the subjectivity of forecasts by soliciting
and summarizing the judgements of a pre-selected group of individuals. The
final forecast represents a composite group judgements.
Techniques of HR Supply Forecasting

In forecasting the supply of employees, all organisation has to forecast its future
requirements of employees. It must determine if there are sufficient numbers
and types of employees available to staff the anticipated openings.
The process involves both tracking current levels and future projections.
Internal Labour Supply

(a) Staffing Tables: An internal supply analysis begins with the preparation
of staffing tables. A satffing table is graphic representation of all jobs
in the organisation along with the number of employees currently
occupying those jobs and future employment requirements.
(b) Marko Analysis: It is a method for tracking the pattern of employee
movements through various jobs. It shows the actual number and the
percentage of employees who remain in each job from one period to
the next as well as the propotions of those who are promoted, demoted,
transferred or who exit the organisation.
Staffing,tables and Marko analysis focus on the number of employees
in particular jobs. Forecasting the supply of human resource requires
that managers have a good understanding of employee turnover and
absenteeism, The other methods explained below are more orintiented
towards the types of employees and their skills, knowledge and
experiences.
(c) Talent Inventories: Skill inventories can be prepared to include the
employee’s education, past work experience, vocational interests,
Notes specific abilities and skills, job tenure, etc. This inventory requires that
confidentiality is maintained in its preparation. The skill inventory
allows managers to quickly match job openings with employee
backgrounds. When data is gathered on managers, the term used is
not skill inventories but management inventories. Both skill and
management inventories are broadly referred to as talent inventories.
(d) Replacement Charts: Talent inventories are used to develop employee
replacement charts which current jobholders are identified with
possible replacements should openings occur. Thus replacement chart
provides information on the current job performance and promotability
of possible replacements.
(e) Succession Planning: Succession planning is the process of identifying,
developing, and trickling key individuals for executive positions. In
today’s List moving environment succession planning may be more
important and difficult to conduct. Here we must note that replacement
chart provides information on the current job performance and this
information can be used for succession planning where key individuals
may be shortlisted to eventually assume top level positions in the
organisation.
Balancing Supply and Demand for Human Resources

Organisations strive far a proper balance between demand and supply
considerations in their human resource planning. Demand considerations are
based on forecast trends in business activities while supply considerations
involve the determination of where and how suitable candidates can be found.
The difficulties in locating applicants far the increasing number of jobs and
greater planning efforts are also needed in recruiting. In an effort to meet the
demand for labour, organisations have several staffing possibilities including
hiring full time employees, having the existing workers work overtime recalling
laid of workers if any and using temporary employees to man the work.
Additionally organisations today reduce their workforce by relying on
attrition a gradual process of reducing employees through resignations,
retirement or deaths to reduce the excess work force. The methods used by
companies to reduce their work force are discussed here:
Organisational Downsizing: Organisations have undertaken the extremely
painful task of downsizing and restructing to reduce their “head count” because
of either economic or competitive pressures, organisations have found
themselves with too many employees or with employees who have the wrong
kinds of skills. In order to reconcile labour supply and demand considerations
organisations have eliminated thousands of jobs. Downsizing is part of a longer
HR PLANNING
term process of restructuring to take advantage of new technology, corporate Notes

partnerships and cost minimisation.
Lay Off: Employees lay off decisions are usually based on seniority and/or
performance. The rights of employees during lay off, their conditions concerning
their eligibility for recall and their obligations in accepting recall should be
decided in advance. In cases where economic conditions have brought about
lay off, employees who were asked to go while in good standing may be recalled
to their jobs when the economic outlook brightness and job openings occur.

Notes
Unit VI
8 DEVELOPING HUMAN RESOURCES
INTRODUCTION
The success of eve ry food service organisation on how willing the people
working in it give their best and identity with goals of the organisation. This
however does not always happen by itself when a group of people with diverse
back ground, skills and even coerced at times to work towards the achievement
of present goals.
Personal management is thus concerned with getting results to the willing

efforts of the people. Institutional feeding is not new to India nor is coming
together to people in group to work towards common objective practically
unknown. This is evidence even today as people pool in their efforts and money
to feed hundreds of guest at different occasions. The essence of this group efforts
has always been a sense of unity or togetherness, mutual trust and love leading
to happiness and satisfaction.
PERSONNEL POLICIES
Personnel policies are general guidelines formulated within the framework of
the broader objectives of the establishment set by top management. These are
passed on to managers at all levels for implementation when dealing with their
staff. There are three main objectives of personnel policies:
(a) Effective utilisation of human resources
(b) Establishment of healthy working relationships, and
(c) Encouragement of maximum development of individuals.
In order to achieve these objectives, it is important to set individual interests

(goals) of staff against those of the employers (management) and see how well
the two can be integrated. The table 1 is the highlights of these interests for
comparison.

DEVELOPING HUMAN RESOURCES
Table 1: Comparison of employee and employer interests. Notes

Employee expects from employer Employer expects from employee
1. Good pay. 1. Low unit staff cost.
2. Permanence of job 2. Maximum productivity.
3. Safe and healthy working 3. Stable workforce-low turnover.
environment.
4. Sociable working hours. 4. Loyalty.
5. Opportunity for development. 5. Cooperation.
6. Recognition. 6. High morale.
7. Justice. 7. Initiative.
The interests indicated in table 1 are not completely incompatible and can
be satisfied, to a large extent, by the proper interaction of all the resources of
the establishment as indicated in table 2.
CONDITIONS NECESSARY EMPLOYEE EXPECTATIONS FROM

EMPLOYEES
Table 2: Basic conditions necessary to bring about interaction of staff
and employers.
Employee expectation Employer expectation from
from employer employees
1. Good pay and permanent 1. Basic needs satisfied.
employment. 2. Job satisfaction
2. Safe and healthy working
3. Contentment
(conditions) environment.
4. Interest in work showing
3. Sociable working hours.
creativity, initiative, attachment
4. Recognition and opportunity for to job.
development.
5. Emotional security.
5. Justice.
6. Confidence
It is clear from table 2 that, to be able to work to their highest

potential, people need the physical conditions necessary for safety and comfort
at work, in addition to emotional and economic security. The successful
integration of physical, financial and human resources is made possible by
drawing up a functional programme which can be systematically put into
practice.

Notes Such a programme should cover four aspects concerned with people at work:
(i) Organisational planning (ii) Staffing (iii) Terms and conditions of
employment, and (iv) Personnel administration.
(i) Organisational Planning
This includes planning for the future of the organisation in terms of
the number of people and types of skills required to man the jobs. This
is normally referred to as "manpower planning". There are a number
of factors which would seriously affect the number of people required
and the nature of their skills. These are:
(a) Plans to expand the services to cater to a larger number of people,
assuming that the menu and other factors remain unchanged. In such
cases the service staff will need to be increased to a greater extent than
kitchen staff.
(b) Any future plans to install labour saving devices may require the
existing staff skills to be changed or modified by training.
(c) A change in the style of service envisaged to meet the increasing
demand of customers for quicker service would necessarily affect staff
numbers and skills.
(d) Plan to introduce mobile catering services in addition to the existing
operation would also affect staffing.
(ii) Staffing
Staffing means hiring people for work in a manner such that their skills are
matched to job requirements of particular positions. Staffing is a much
specialised field concerned with the recruitment selection, induction, placement,
training and the development of people.
(iii) Terms and Conditions of Employment
To be able to staff any organisation adequately, it is important to draw up
certain terms and conditions of employment which are mutually acceptable to
the prospective employee and the employer. It is customary to present the terms
suitable to the organisation, and for tile prospective employee to agree to them
in writing through the signing of a contract. While this would be the ideal way
of staffing an organisation with full agreement from both sides, it does not
always happen this way in practice. Particularly in catering establishments
situated in areas of dire poverty and unemployment people including children
are willing to take up jobs of errand boys, or servers and dishwashers. Especially
in underdeveloped and developing countries this is common in wayside
cafeterias and other small food service outlets. This also suits the employer
who can reduce his labour costs by paying a pittance for unskilled jobs. In such
cases, the employee knows no ‘terms and conditions' and is happy to receive Notes
his meal and whatever else in terms of pocket money he gets to carry home. In
the above example although formal terms and conditions are not exchanged,
they are set by the employer and communicated verbally. In most small
establishments, the terms are simple such as Rs. 120 per hour with free meals
and tea. There is generally no union involvement because of poverty and
illiteracy among the employees. As the size of the establishments increase and
tile staffs employed are more qualified, they know their rights and insist on a
written contract. This contract generally takes the form of an appointment offer
indicating the terms and conditions of employment. The law requires every
employer to include in the contract, names of the parties, date of start of the
employment, date for continuous service, pay, working hours, paid holidays,
pension scheme, notice periods, job title, disciplinary rules and grievance
procedures. If these are accepted by the applicant in writing or through a
signature, the contract is concluded.
(iv) Personnel Administration
Personnel administration covers the maintenance of:
(a) Personnel records: Terms of age, date of joining, length of service,
qualifications, skills, pay scale, performance on the job, training and
development needs, health status, date of retirement in addition to
maintenance of recruitment lists and so on.
(b) Personnel relations: Negotiating with trade unions, setting up grievance
procedures, developing incentives and bonus schemes initiating
employee development schemes, improving communication methods,
and keeping all departments well informed.
(c) Personnel research: Working out percentages for turnover in different
job positions, investigating where necessary the reasons for the same.
Then relating these to qualifications, personality, and health status
(utilizing the knowledge gained in recruiting wisely in the future).
Finding out personality traits in people which make them accident
prone and therefore unsuitable for certain jobs.
(d) Training and development: Setting up procedures for internal promotions.
Identifying training needs and job development areas. Development
of schemes in relation to identified needs. Establishing liaison with
educational institutions for training off the job through refresher
courses and on the job forimproving skills for promotions.
Having drawn out a functional programme, every progressive organisation
will work towards implementing it in a manner that will provide greater

Notes harmony, job satisfaction high morale and a sense of identity and loyal to the
organisation.
Thus, the functions of a personnel manager or department may be
summarised as follows:
(a) Maintaining records pertaining to all staff employed.
(b) Planning for staffing on the basis of job requirements.
(c) Preparing recruitment lists for job vacancies in advance.
(d) Developing incentive schemes.
(e) Developing and maintaining good public relations with the trade
unions, staff and customers.
(f) Establishing disciplinary and grievance procedures.
(g) Organising procedures for health and safety of employees at work.
(h) Establishing liaison with educational and other institutions for training
and development of staff.
(i) Helping the organisation to cope with changes both in the internal
and external environment. For example, internal policies involved with
pay, productivity and participation, and external pressure through
union agreements or government legislation or simply changing
equipment, style of service and menus to suit the changes in tastes of
customers.
With the catering sector becoming more and more unionised, collective
bargaining and writing clauses for management rights are important functions
of the personnel manager.
RECRUITMENT
Recruitment is the process of attracting qualified candidates for the purpose of
filling vacant positions in an establishment. Before any recruitment can be done
the tasks to be perfomed in a particular position must be identified and the
personnel requirements for the job listed out. This helps to match the skills of
candidates with the job requirements and finally get suitable employees.
Effective recruitment therefore requires:
(a) A clear idea of job requirements.
(b) Information regarding the applicant's age, qualifications experience,
skills, objectives, interests, health status and background.
(c) Projection of a fairly realistic but favourable image of the establishment,
in order to attract qualified people.
The Oberoi Notes

New Delhi
Requires: BUTLERS
The Oberoi Group operates thirty hotels in nine countries. Several new hotels
are being planned in India and overseas. The Group’s hotels in India are located in
Delhi, Bombay, Calcutta, Srinagar, Shimla, Darjeeling, Khajuraho, Bhubanewar,
Gopalpur-on-Sea and Goa.
Oberoi Hotels are synonymous with quality. Now you too can be a part of the
Oberoi Group’s quest for excellence.
In order to accord personalised attention to our guests, we are introducing an

exclusive Butler Service on each floor.
The job involves welcoming guests in their rooms, attending to all their
requirements and coordinating with other departments in this regard. This would
include guest errands, food and beverage and valet service.
Applicants should be male, fluent in English, with at least a High School

Qualification. They should have a flair for dealing with people. Previous experience
in related departments in the hotel industry and/or knowledge of a foreign language
would be an asset.
These posts carry benefits like Medical Coverage under ESI/Company Medical
Schemes as appliable, Provident Fund, Gratuity, Subsdised Duty Meals and Annual
Bonus.
Apply within ten days along with a passport size photograph, indiciating the post
applied for on the envelope. Candidates who have applied on the past need not
apply again.
Applications may be sent to:
The Personnel Manager,
The Oberoi,
Dr. Zakir Hussain Marg,
New Delhi-110003.
Fig. 1: An advertisement for the post of butlers.

Notes A Large Reputed Public Limited Company Near Delhi Requires the Services of
“CATERING SUPERVISOR”
The Incumbent should be Graduate and have passed diploma in Hotel

Management/Catering and Nutrition/or any other equivalent diploma from recognised
institute. The applicant should have good health and good physique and have at
least 5 years working experience in any large Industrial Complex.
Deserving candidates will be given attractive salary along with other perks as
per rules of the company.
Please apply stating age, qualification, experience, salary drawn and expected
within 10 days of this advertisement, superscribing the post applied for on the
application and envelope to Post Box 80000, New Delhi.
Fig. 2: Sample of advertisement
Vacancy Notice
LOCATION: New Delhi
JOB TITLE:
DEPARTMENT:
GRADE:
EMOLUMENTS: Basic + Allowances
JOB SUMMARY:
QUALIFICATIONS:
EXPERIENCE:
AGE RANGE:
HOURS OF WORK:
CLOSING DATE FOR
APPLICATIONS:
Date Signature
Fig. 3: Sample notice.

Food service establishments are characterised by a variety of jobs, Notes

ranging from relatively unskilled ones like dishwashing to semi-skilled
ones like peeling, chopping, cutting or using kitchen machines and skilled
ones such as food preparation and service. The latter requires not only
knowledge and skill but an artistic and aesthetic culinary sense to present
the food attractively. It has to be accepted that one cook is not as good as
another. Recruitment of catering staff has to be considered from the job content
as well as the personality point of view as staffs need to develop good rapport
with customers as well. Sometimes a well prepared dish may not attract
customers because the service staffs do not take pains to present it properly to
the customer.
Sources of Recruitment
A number of sources can be tapped for recruiting catering staff some internal,
that is from within the establishment, others external. These are:
1. Family members, relatives and friends of existing staff of the
establishment. The advantage of this source is that the bonafides of
recruits can be easily checked. Further, existing staff stand guarantee
for any persons they recommend. Also if two relatives are working in
the same department the degree of cooperation and understanding
between them is likely to be greater at work. This may, however not
always be true for there have been cases where this sort of placement
creates distractions and inefficiency.
2. Students from catering colleges may be picked up during periods of
internship training, when their abilities can be judged. The advantage
of this source is that the recruit has a basic knowledge of all catering
skills and is keen to get employed soon after qualifying. The recruit is
likely to pick up any work quickly, and would be keen to prove his or
her worth, thereby doing his or her best. The likelihood of getting some
fresh ideas for work improvement and job development is greatest
from this source.
3. From employment exchanges or bureaus, and professional associations.
4. Through personal contact with others in the trade, who could
recommend people for specific jobs.
5. Through advertisements in local papers professional journals on notice
boards of the organisation or through notices sent to catering and allied
institutions and food service organisations.

Notes Recruitment Procedure

Those in charge of recruitment are provided with job requirements of the
vacancies to be filled. In large establishments which have personnel officers or
departments, requisitions are filled on prescribed forms by the departments in
which the vacancies exist. These are then advertised or suitably communicated
to the recruitment sources discussed above.
That the recruiting organisation gives the details necessary to project its
image to the applicant. It would be apt to state that organisations with a good
public image are likely to attract better qualified candidates than others. For
example, a post of catering supervisor in a public school hostel would be more
attractive to candidates than a midday meals supervisor in a government school.
Similarly, a new self service cafeteria would need to put in a lot more effort to
get staff than, say, a unit run by 'Nirulas' in Delhi, although they may be offering
equally excellent growth and development opportunities.
All recruitment procedures require that candidates send their applications
for the posts by a specified date. Some provide a designed application form to
be completed by the applicant others leave it open to receive information in the
applicant's own handwriting or typed as they may choose. Application forms
are expected to help the organisation to obtain data regarding age, basic
qualifications, experience, background, health status, etc., of the applicants. The
personnel manager or department then shifts out those applications which
comply with the overall requirements of the job, and passes them on for further
scrutiny to the selection committee. This then deals with the applicants to make
the final selection for employment.
Recruitment Policy
Recruitment policies are guidelines which help to standardize selection
procedures. The policies usually lay down minimum qualifications, relaxation
limits, age preferences, weightage for experience and other qualities depending
on specific job requirements. Policies also determine the establishment of
selection and interview boards and testing procedures.
Once developed, policies help to deal with unusual situations because of
the flexibility built into them.
Policies help to screen applications quickly, with little chance of
disagreements occurring between members of screening committee. However,
policies require be reviewing periodically and revising in the light of past
experience with personnel. Staff services can be better utilized if recruitment
policies and procedures are laid out in advance of the need to recruit. In catering,
it often happens that managers do not think of staff replacement until a position Notes
falls vacant. This is common particularly in small establishments where the
time and the costs involved in recruiting, selecting and employing people
methodically, is considered as 'time and money’ wasted. Another reason is that
in catering operations one person willingly 'fills in' for another, because of the
spirit of team work present in small establishments. This is more so if the vacancy
is for a position senior to the one the person is working for and 'filling in' therefore
brings extra money. Managers fail to understand that overworking existing
staff who' fill in' vacancies for long periods, can cause a serious drop in efficiency,
loss of customers, rise in accidents and ruin personnel relations lowering the
morale of staff. All these effects may prove more costly in the long run when
compared to planned recruitment and timely employment.
It is good policy to determine tile manpower requirements of an
establishment over a set period of time, and prepare recruitment lists through
personal contacts, in advance so that advertisement is not required each time a
post falls vacant.
For instance, well maintained records will indicate the number of persons
on temporary fixed period employment or those retiring within the period.
Vacancies can thus be forecasted fairly in advance to enable proper selection to
be made. This also helps to organise selection or train existing staff for promotion
or transfer as the case may be.
SELECTION
Selection is a process of identifying and picking up people whose probability
of success in the job is maximum, and who are likely to stay long enough with
the organisation to add to its development. The process involves a number of
evaluations objective and subjective, with a view to separate potential employees
from those unlikely to fit the requirements of the job.
In respective of the nature of the job, a very large number of applications is
normally received. The reasons for this are, the existing high levels of
unemployment, people wanting to improve their opportunities or perhaps a
very vague advertisement for the post. Systematic procedures for selection are
therefore essential. Selection is generally made by a committee comprising a
number of members representing personnel departments, employee unions,
and managers of departments in which the vacancies are to be filled. This is to
ensure that qualifications and not personal factors are the basis for the choice of
the candidate. In smaller establishments tile owner manager may be performing
all the functions and may therefore select candidates with the help of his
supervisor or assistant. Alternatively, he may be the sole person to decide. The
Notes selection process is based on the exchange information between the organisation
and the candidate. The former provides a description of the establishment and
the job, while the latter shows his capabilities as shown in table 3.
Table 3: Information exchange between organisation and candidate
Organisation Candidate
1. Level of pay 1. Knowledge
2. Opportunity for the promotion 2. Skills
and development
3. Fringe benefits 3. Aptitudes
4. Degree of job security 4. Motivation
5. Limitations of the job 5. Experience and
past performances
While exchanging information, objectivity must be maintained and the image
of the organisation not projected in an unduly favourable manner. This will
raise the expectations of tile applicant and if employed, will later result in low
job satisfaction and absenteeism due to frustrations. Such a situation proves
very costly to an establishment. From the applicant, only information that is
related to the job should be requested without going into irrelevant personal
history.
The following criteria should therefore guide selection of staff:
(a) Age, qualifications and experience.
(b) Compatibility of candidate with job requirements.
(c) Social skills indicating ability to work with other people.
(d) Familybackground, optimistic outlook.
(e) Health status and special interests.
(f) Self confidence, presence of mind and initiative.
(g) High sense of ethical values.
Basic Steps in Selection

1. This is to have a hand statement indicating the job requirements for the
position to be filled a complete sample. This statement should be prepared
after a through analysis of the job and the staff who have managed it in
the past. If carefully prepared it can increase the changes of selecting just
the right person of the job.
2. Involves picking out those application forms which conform to the
minimum requirements on the statement. Other information may give a
lead to the personality traits which can be further known through tests
and interviews.
3. Objective tests of skill, not longer than 30 minutes need to be organised, Notes
involving written and practical work. These are intended to test basic
knowledge and ability to apply it to practical situations. They are especially
useful for food preparation and service jobs.
For supervisory skills candidates may be subjected to written tests
followed by observations on the job after which only selection may be
confirmed.
4. Appraisal or test evaluation is done by a simple process of scoring to pick
up a few top performers for interviews.
5. The assessment of candidates who are successful at the interview is called
for from two separate referees, whose names are indicated by the
candidates on their application forms. This is particularly done in the case
of managerial posts.
6. The final stage is the medical report which, if clear, entitles the candidate
to a contractual agreement with the organisation as its employee.
While these six steps are formally laid out to be followed in a selection
procedure, they involve a great deal of time and administrative work. In
food service establishments, the most frequent vacancy areas are at the
operative level, where food is actually prepared, cooked and served. It is
here that the highest turnover is recorded. The reasons are that certain
jobs like those of dishwashing or peeling, cutting, etc., become so routine
that work fatigue sets in. In addition, the wage levels in the catering sector
are so low in comparison to other industries, that there is no incentive for
people to stay on. Besides, even those jobs which require special skills
have little or no promotional avenues. For this reason, while selection
procedures are important, they have to be reinforced to offer incentives
and benefits particularly for positions with routine work. The high rates
of absenteeism and labour turnover characteristic of catering
establishments result in, higher ultimate costs to the organisation.
Job Title: Head Cook

Permanent/Temporary/Ad hoc:
Age:
Basic Qualifications:
Experience required:
Personality traits:
Confident
Inspiring
Sociable
Pleasant
Fig. 4: Job Requirements for a Head Cook.

Notes Most leave and absenteeism among catering personnel is due to boredom,
overwork, fatigue and frustration. Surveys conducted on a range of catering
units indicate an average of 8-10 days sickness per employee per year. The
relationship between recruitment and labour turnover is that they rise and fall
together, that is, when turnover increases, increased recruitment becomes
necessary and vice versa. This is an important factor to consider in manpower
planning. To reduce the chances of staff turnover, an understanding of the
attributes which are important to recruits is essential. Besides the selection
method of employing staff, there are two more approaches which may be
adopted for filling vacancies. These are the placement and promotion
approaches.
VACANCY Staff leave ABSENTEEISM/LEAVE
Other staff Ovework, fatigue, sickness

‘fill in’
VACANCY Leave
Filled on daily wage Inefficiency due to

basis from employment New environment
agencies without Ignorance of job
selection or contractual Lack of loyalty
agreement
VACANCY Increase in costs due to

Overtime
Daily wages
Time lost Lowered profit
Inefficiency
Pilferage/Breakages
Fig. 5: Effect of unplanned requirement and selection.
Placement Approach
In this approach candidates are placed in the job for a period of one to six months.
This is common in catering establishments, which generally prefer to take
catering students for training in different positions by rotation. This serves a
two fold purpose teaching institutions are able to give students training in the
practical situation, while the catering establishment can pick up potential

employees by noting their strengths for a particular position. It is possible to Notes

prepare reliable recruitment lists for various jobs in this way, to be used when
vacancies arise.
Promotion Approach
This offers a higher position with more pay and greater responsibilities and
status to existing staff. In this method of employment the staff member must
apply against the advertised post and compete for selection with outside
applicants. A promotion so gained rejects outstanding performance and also
raises staff morale. Selection for promotions also eliminates the mistake
sometimes made, of promoting a member to the next higher position simply
because he is very good at his present job. If the latter is done without competitive
selection, one overlooks the possibility of the staff member not having the ability
to cope with the demands of the new position. Irrespective of the approaches
used in staffing an organisation, it is important to maintain a balance between
skills and age of employees. More so, when employing for managerial positions,
where technical, human and decision making skills are necessary. Since it is
hard to find all these in anyone person, selections should result in the skills of
one person complementing those of another for example, a catering manager
who is a good decision maker with excellent technical knowledge may lack the
human touch by virtue of being authoritative. Such a person requires a catering
supervisor who can develop a good rapport with operational staff and get the
work done efficiently. Age is the other important factor. Staff of similar ages if
employed in the same department are liable to retire at about the same time.
This can pose serious problems for the organisation. Thus a balance is necessary
to ensure that experienced people are there in every department to guide and
trained others. Also, managers at one level in different departments too, should
not be the same age because all posts of important interaction within the
organisation cannot be filled in with new entrants. Thus, systematic staff
planning can ensure a fair distribution of staff of different age groups
complementing the skills to suit the organisation. Finally, it must be remembered
that no matter what techniques may be used for selecting the right man for the
right job, one element that overtakes them all is human judgement. While
objective techniques are only information collecting exercises, this information
has finally to be interpreted to determine suitability for the job.
Induction
The recruitment and selection process completes the formalities of bringing a
new employee into an establishment. But, if he or she is left in the midst of
other people to find his or her own way, even the best person for the job may
get lost or unnerved . Every newcomer needs to be introduced to people with
Notes whom he or she is expected to work, and to the environment in which he or she
is required to do his best.
The process of introducing a newcomer to his/her work environmental is
known as induction, sometimes also referred to as orientation.
Induction may be organised through formal programmes or informal
introductions to people and departments within the organisation. Large
establishments usualy conduct planned induction programmes covering the
following aspects:
(a) History of the organisation.
(b) Its general policies and practices.
(c) Departments, their location and functions.
(d) Staff benefits: location of employee facilities like toilets, change and
rest rooms, medical rooms and canteens.
(e) Safety and other procedures and regulations.
(f) Position of employee and relation to other staff in his or her department.
In contrast, in a cafe serving lunches, snacks and beverages, an employee
would need 3-5 days for induction, because he has to be shown round, and
made familiar with the types of equipment and their operation, e.g., a juicer or
a coffee machine. He needs to be introduced to his superiors, the work schedules
his job, working hours, attendance system and so on. While an induction
programme can be handed to an employee in cyclostyled or printed form, taking
him around the establishment helps him to meet people, giving him an
opportunity to ask question regarding a procedure or the job and feel his way
around. Generally, induction programmes are chalked out and conducted by
the personnel manager but the primary responsibility of orienting the employee
lies with his immediate superior. The induction process also helps to develop
relationships with people, learn different methods, behaviour and imbibe a
sense of values followed at work.
Placed in a new job environment usually creates a sense of insecurity and a
feeling of anxiety about one's success in it. Therefore, the first experiences in an
establishment are very significant. They can mould behaviour towards the
organisation and people at work. The best people in an establishment should
therefore be chosen to orientate the newcomers. Effective induction helps to
remove any anxieties about the place, people and work that might exist. It
stabilises employees, helps friendship to develop quickly reducing the chances
of conflict and possibility of turnover. Orientation is, however, a much neglected
aspect of staffing. When one enters food service establishments one often gets
the feeling that the newest employee is the one who is pushed around are made
to work the most by his co-workers. This is typical experience in a restaurant Notes
where a number, waiters just stand around and one of them is made to take all
the customers orders. This only should ineffective orientation by the superiors.
In the same situation, if one of the waiters takes the newcomer with him to see
what he is doing against a particular order from the customer, a process of
communication, and learning develops. This also strengthens relationships and
confidence, with which he can then bet to use his own knowledge and ideas to
develop skills on the job.
METHOD OF INDUCTION
Employees can be introduced to an establishment in a number of ways through:
(a) Formal talks to groups of new entrants from all departments. These
talks are intended to familiar them with the history of the establishment,
its objectives, policies, past achievements, and so on.
(b) Films strips or slides: Large estabishments may introduce its people at
work, showing activities processes in various areas through the strips
or slides. This gives a total picture to the employ that can see at a glance
how and where they fit into the organisation.
(c) Demonstrations: Experts from fire departments may be invited to speak
about safety procedures and demonstrate the use of safety devices built
into the establishment. This could be supplemented by taking a round
of the different areas indicating the positioning of fire alarm systems,
extinguishers and fire or emergency exits. Sometimes colour codes are
used for various devices which need to be explained. In establishments
where fire drills are conducted regularly to give practice to employees
for acting in an emergency, the procedure should be explained at the
time of induction.
(d) Informal get-together: Through these the new employees can make
their own circle of friends, ask questions, identify superiors and
gradually understand their jobs. These get togethers may be at coffee
breaks or lunch time or after working hours on the way out.
The final stages of induction take place in their own departments where
duties and tasks are allotted along with the accompanying responsibilities. Here
the staff get familiar with their own tasks and also learn about those of other
staff in the department. In a few days they learn how their job fits productively
into the pattern of activities. The level of authority are identified and the
employee knows whom to go to in case of a problem or for assistance. Every
person comes to a new job with hope and enthusiasm. A smooth induction is
likely to capture this enthusiasm and help to raise his hopes still further,

Notes encouraging him to contribute to high levels of performance. To maintain the

level of motivation and impart a sense of security to employees. They must
receive a written statement of their terms and conditions within thirteen weeks
of joining. These should include specifications of disciplinary and grievance
procedures which are important from the employers view point to prove that
they are fair in their dealings with staff, should the need arise.
The aim of every organisation is to gain maximum at minimum costs through
a loyal and cooperative workforce. To achieve this it is necessary for every
establishment to provide a work environment for its staff that is comfortable,
convenient and pleasant. Besides, it must fulfill the needs of individuals if they
are to give their best to achieve organisational goals. Towards this end employers
need to provide certain facilities and benefits to their staff. These are often
referred to as "staff welfare provisions" and are discussed under three heads:
(a) Physical needs; (b) Physiological needs; and (c) Socio-psychological needs.
PHYSICAL NEEDS
The physical needs refer to the needs for comfort at work. Welfare activities
would thus be directed towards provision of:
(a) Proper lighting to prevent undue strain on the eyes and ensure good
visibility.
(b) Temperature and humidity controls for comfort. This is particularly
essential in kitchens where excessive heat and sweating can lead to
fatigue and exhaustion resulting in lower efficiency, morale and interest
in work.
(c) Fresh air free from fumes and gases, through proper fitting of exhaust
fans, etc.
(d) Low noise levels, conducive to efficiency. Too much noise can cause
irritation, annoyance and lack of concentration. The usual kitchen noises
can be reduced by sound proofing ceilings, walls and provision of
suitable floor covering.
(e) A clean environment, though use of materials and methods effective
in keeping work areas clean. Provision of clean uniforms for staff in
catering, staff should ideally be provided uniforms consisting of a
complete set of working clothes, apron and headgear; but this is often
restricted to apron and headgear only. In very small establishments in
India, like kiosks or office canteen kitchens, uniformed staff are rarely
seen handling or serving food items. This is an area which requires
serious attention to safeguard health of employees and customers.
While toilet facilities must be provided for staff, care is necessary to

position them away from the food handling areas. Also, attention must Notes
be paid to provision of hand washing facilities, separate from dish or
food washing sinks. These should preferably be located near entrances
to kitchens and service areas or in rest rooms where a practice of
washing hands before going to work areas is inculcated. Provision of
and the practice of using waste disposal equipment correctly cannot
be missed out in any discussion of hygiene and utilisation.
(f) Safety procedures and location of safety devices at strategic points in
the work environment.
(g) Well designed and placed equipment and furniture to avoid undue
physical strain at work, in addition to sitting facilities where employees
have to work in standing positions for long hours.
SOCIO-PSYCHOLOGICAL NEEDS
These cover the needs for security through adequate wage payments; provision
for housing; infant creches for working mothers transport social working hours
leisure and holidays, leave for sickness, maternity, etc., counseling services for
problems stemming from stress at work or home. Adequacy of wage payments
is closely related to the salaries fixed for various job levels and the basic needs
of staff. As a welfare measure, however, subsidies on meals, housing, etc., help
to enhance wages in indirect ways. Housing facilities may be provided in the
form of staff quarters at subsidised rents or payment of a house rent allowance;
facilities may be offered through house building loans at low rates of interest to
employees. Paid holidays and leave for sickness, maternity or other reasons
help in reducing absenteeism and staff turnover. Financial benefits help to
increase the sense of family security through provision of health and life
insurances and pension policies, or offering of credit facilities in times of need.
Welfare covers the families of workers especially in India, where, because of
strong family ties, the well-being of workers is closely affected by the family
welfare. Staff welfare services are provided the two ways. Some amenities are
compulsorily to be provided because they form part of statutory requirements.
These include medical benefits, meal subsidies, uniforms, safety requirements,
staff toilet facilities-in short, all amenities important of a healthy or sanitary
working environment.
The other form of welfare covers those provided over and above the legal
minimum requirements. These benefits are often referred to as service
programmes, 'non-wage payments' or 'fringe benefits' and are purely voluntary
on the employers. In short they are like valuable supplements to wages, and
employers are hot bound to provide them.

Notes However, all organisations do provide 'fringe benefits' to varying degrees,

because they find that it helps to raise the morale of staff. Reduced absenteeism
and staff turnover have been noticed as a result, while at the same time
employers are able to discharge a social responsibility. The basic principle
underlying decisions to provide employee a benefits is to give incentives
towards some measurable return to the organisation. This return may take a
number of forms, but it essentially makes it worthwhile for the employer to
invest in.
Employee benefits can result in:
(a) Improves morale and greater loyalty to the establishment.
(b) Lower absenteeism and staff turnover.
(c) Good employee relations.
(d) Improved efficiency.
It is debatable, however, as to how long a benefit will be considered of
value by the employee. In other words, would it continue to motivate him to
higher productivity, improved morale, etc., over a long period of time.
Employee benefit schemes to be effective, therefore, need to be reviewed
from time to time and adjusted to provide a source of motivation to staff. It is
often helpful to establish compensation programmes to improve performance
as against purely non-financial incentives, e.g., payment of bonus according to
profits achieved, or equal distribution of service charges to all employees of a
catering department or establishment. Such financial benefits act as the incentive
aspect of pay, 'because they vary till value to the amount of collective effort put
in. If the number of customers served, i.e., sales volume goes up, the net profits
go up along with the incentives payments through service charges collected
and bonus paid out. Fringe benefits in the form of interest on provident fund or
management contributions towards pensions even though financial in nature
do not motivate people because of their long term nature. Staff take these for
granted after some time, because they reflect basic pay and therefore experience
and not present performance.
TYPE OF EMPLOYEE WELFARE SCHEMES IN INDIA

Employees State Insurance Scheme Commonly rejected to as the ESlS, this
scheme was designed as a financial contribution scheme. In this, monthly
financial contributions were made by employees, employers, and State
Govemments towards benefits for employees. It was compulsory for all
establishments having 20 or more employees. The funds from this scheme were
then utilised to pay for sickness, maternity, disabilities, funeral, and other needs Notes
of employees whose monthly pay was within Rs 10,000 only.
Safety and Health Schemes

Safety and health schemes are statutory for every food service establishment,
because this affects not only the health and well being of the employees, but of
the employers and customers too. The Health and Safety at Work legislation is
carried through to the extent that food service establishments are subject to
surprise checks by Health Department staff, and any unsatisfactory conditions
can make establishments liable to closure. The health schemes established
generally cover medical check ups of employees at regular intervals to ascertain
that they are not carriers of infection. Sanitation of surrounding areas is also a
welfare measure related to the health of employees. Surrounded by cleanliness,
employees get motivated to keep their individual work areas clean. Its
importance cannot be overstated in a food service establishment where it is the
responsibility of the establishment to ensure health of customers. Such an
environment no doubt attracts customers as well, to the benefit of not only the
employees but the establishment as a whole. Most welfare measures have been
concerned with creating conditions for greater employee involvement in a Job.
Therefore, managements genuinely interested in employee's welfare must work
towards providing meaning to their jobs, in addition to inviting their
participation in decisions which affect them. Regarding participation of
employees in decision making, the objective would be to induce the 'we' feeling
at work. The advantage is that any decision in which employees have expressed
their views, makes them more committed to carrying them out. Further, the
communication becomes free flowing at all levels, giving rise to better
understanding and cooperation. The result is lesser conflicts because of staff
commitment to decisions and greater involvement in the success of the
organisation. Participation also helps in managing any resistance to changes
which are important for the survival of any organisation in its environment.
There are five ways to establish employee participation.
(a) Sharing of information pertaining to overall results of the organisation
in terms or production, assets, liabilities, and so on. This helps to boost
employee ego and lead to greater satisfaction.
(b) Consulting employees through unions in matters relating to employee
welfare programmes, working hours, procedures for safety, etc.

Notes (c) Seeking their views on decisions that affect operations directly, such
as buying a piece of equipment for the kitchen or service area, or
changing attendance procedures or working hours of staff etc.
(d) Inviting decisions from staff after a number of alternatives have been
selected. Here the degree of participation and responsibility for the
decision is more than in other methods of participation.
(e) Decisions directly concerning employees like their welfare schemes,
may be taken jointly by management and staff.
The extent to which employees participation is encouraged will, however,
depend basically on the policy of individual establishments, but also on the
style of leadership of managers and the effectiveness of communications existing
between people. Employee benefits act as motivators only if good employer-
employee relationships have been established. For this the essential prerequisite
is a well established communication system. In small establishments where
staff are few in number and directly in contact with owner or manager for
all activities the communication is simple and the scope for distorted messages
limited. But as the organisation gets larger in size and staff increase in
number giving rise to more levels of authority the communication channels
need to be well established. It is then that a feedback system has to be
consciously developed, to ensure that information is not lost in the process of
transmission.
Canteen Facilities
It is a statutory requirement to provide canteen facilities in establishments where
staff exceed 250 in number. Irrespective of this, it is a moral obligation on
employers of catering staff to provide them with partly or fully subsidised meals
even if the establishment is small enough to employ only four or five people.
This benefit also helps to reduce pilferage of food during cooking or serving.
Special attention to canteen facilities for catering staff is necessary to separate
areas of cooking and eating. This also disciplines staff not to chat at work, and
safeguards health of customers as well. Canteen facilities for catering staff
usually take the form of highly subsidised or free meals while on duty.
Depending on the policy of the establishment. In addition, they may be offered
the facility of purchasing any food item for the family at discounted prices
especially biscuits, cakes, desserts, bread rolls, etc. While subsidised meals and
related benefits actually cut into the profits of the establishment they do bring
back returns in terms of efficiency of work. Besides, allocations towards
employee benefits are easier to account for in monetary terms than putting a
figure on food that may be eaten unnoticed or pilfered in the absence of these Notes
benefits, Health facilities generally include regular medical checkups, treatment
for ailments or injuries, preventive medical care, health education and health
insurance. Provision of rest rooms and rest periods are essential amenities
because catering staff generally perform most of their jobs in standing positions
and for long hours. Rest periods provide the breaks in their work and improve
efficiency through delaying fatigue which can be a source of accidents apart
from inefficiency.

Notes
Unit VII
9 TRAINING AND DEVELOPMENT
INTRODUCTION
Catering staff are generally inclined to believe that experience alone in the
kitchen or service areas is all that is required to keep a food service viable. This
may have applied to catering operations a few decades ago when tastes of
customers were very traditional and eating away from home was not as common
as it is today. Can a food service survive in today's competitive environment on
experience alone? While competitive forces working in the catering field; fast
changing and increasing demands of customers; inflation and shrinking labour
markets, it is important to realise that training and development have become
indispensable for efficient utilisation of dwindling resources. In the kitchen,
once a cook puts on the head chef's cap, he is viewed by his staff as the knower
of all, there is to know about cooking and presenting food. It is seldom realised
that the chef can only put together the ingredients given to him in the few ways
learnt through his limited experience. Very often catering managers too depend
so heavily on chefs that they fail to sense the need for training and development.
If one remembers that there is always something more to know, whatever the
job content, establishments can be continually progressive. In the field of food
preparation and service there is much to learn about preparation techniques,
new recipes and flavour combinations, quality characteristics, nutritive content,
and so on. Similarly, presentation of food in different forms, matching texture
to service dishes and table appointments, methods of service, all require
knowledge and training.
Training
Catering managers have plenty to keep abreast with, such as new equipment
on the market, the forms of goods available, types and prices of seasonal foods,
tastes of customers, inflation, management accounting, newer techniques of
assessment and appraisal and much more. In each area of work there is a need
to update knowledge of materials and techniques and apply them to suit the
job situation. While information can be gathered in various ways, the need for
training has to be identified in specific areas al work. This can only be done by
TRAINING AND DEVELOPMENT
a close look at every process in each area of activity to locale areas of inefficiency. Notes
Experience has shown the need for training at all levels of catering management.
An interesting example is one or a catering manager who used to stand in the
kitchen while food preparation was in progress. In fact, she actually prepared
the desserts or a special dish everyday. While this may seem a good thing, in
that it displays the craft skills of the manager and helps close supervision of
staff without 'standing on their heads', it damages human relations and morale.
The staff feels their skills are being under estimated and a feeling of distrust
grows in such a situation. In addition, it is uneconomical for the establishment
to have managers performing craft skills for which a lower salaried person
could be employed or existing ones trained. Besides, the quality of management
suffers, in that there is little time left to attend to planning, costing, analysing
work efficiency of staff and appraising progress. From the above example, it is
evident that the manager needs training in the following skills:
(a) The art of delegating work which others can do equally well, or perhaps
better, if taught.
(b) The art of assessing the work of other people through developing and
analysing management information, e.g., through kitchen analysis
sheets, food cost statements and sales volume figures or even by
actually fating at service times and observing staff at work, noting
customers reactions to their meals, judging by plate waste, and so on.
(c) Teaching staff to develop new recipes by giving them ideas, verbally
or by demonstration, and helping them to develop in their jobs, thus
raising their morale. The new recipes could then be sampled for quality
characteristics.
(d) The staff could be given craft training in food preparation, especially
in those dishes in which they lack expertise.
This could be done on or off the job once the particular needs are established
e.g., training for bakery, Indian cooking, desserts and so on. The aim of all
training is to impart knowledge and skill to equiped people to fit into their job
positions better. Since the environment of every establishment is subject change,
training and retraining takes on a vital role in helping staff at all levels to adapt
to change.
1. By providing information: This can be done through letters, pamphlets,
leaflets, journals magazines or other media. This method is only useful,
however if staff are motivated enough to be affected by the information.

Notes 2. Individual counselling: This involves creating in people the desire to

change their attitudes towards problems. The idea is to bring about
changes in people’s behaviours and through them a change in the
organisation. Once attitudes become favourable to the change, they
can be directed towards desired goals.
3. Peer group influence: Friends exert a strong influence on the behaviour
of an individual. This is an effective way to reinforce ideas and harness
group energy to introduce change.
4. Individual sensitivity training: This method cashes on the fact that people
are more sensitive to their own strengths and weaknesses than to those
of others. Training that can make people aware of their strengths, can
help to bring about changes, by offering an environment in which the
individual's strength is challenged.
5. Group dynamics training: In this all the employees are involved with
bringing about the change.
6. Survey feedback: This method has a strong impact on people for bringing
about changes, and is often used for deciding whether a job needs to
be redesigned or not. The findings from surveys are discussed by
working groups with their leaders, through every level of the
organisation. The outcome therefore is bound to have the agreement
of all the staff in the organisation.
7. Structural change: The structural approach is the basis of redesigning
jobs. As Singer has aptly said, "Training is no longer viewed as a process
of doing things to people but rather as a structuring of situations in
which the learning processes are optimised. When the learning process
lasts for more than a few days we say training is taking place."
While there is no dearth of published material to aid the training process
for all type, or jobs in catering each individual's training is dependent on his
particular needs and those of the job situation in which he is expected to operate.
True learning therefore takes place within a work situation where relationships
with other people and groups at work, are exercising their influences. On the
job training has the advantage of the learning process becoming immediately
integrated with the organisation. It also helps to create an atmosphere at work
in which people learn and develop. Since the trainees know their jobs basically
they can direct their own learning by applying suggestions made to them on
the job, or by imitating procedure is demonstrated to them at work. Training is
effective only when the knowledge gained is applied at work and tested for its
usefulness, whatever be the level of the job involved. Thus, training must be Notes
regarded as an integral pan or operation and not a side activity to siphon off
staff when they are not required.
"Managers cannot be manufactured by sending them on training courses;
they must be allowed, by , careful training and development on the job, to grow
over a period, to competent executives."
The impression that there is little or no skill left in the jobs these days because
of labour saving devices and automatic machines is a misnomer. In fact, the
more the automation at work, the greater is the mental skill required although
hard physical effort may be reduced. The training for such situations involves
an understanding of the machines, which if not operated rightly, can prove a
menace rather than a help.
In catering, training has greater significance when a machine is to be
introduced. For instance, without a thorough understanding of the oven, mixer
or the juice extractor, the food prepared may vary in texture, consistency, colour,
taste and therefore acceptability each time. Not only that, expensive equipment
like microwave ovens or freezers which are useful for even small food service
establishments may be completely damaged through ignorance. In fact, with
the increase in demand and supply of labour saving devices catering staff would
not only need training but will have to be retrained every time a model becomes
more sophisticated in its construction and use. Whenever the performance or
an establishment falls, it can generally be traced to inadequate or outdated
equipment, lack or knowledge or inability to physically perform a task. Training,
therefore, must be aimed at developing the capabilities of staff to enhance their
skills because they are the assets of a food service organisation, and their
potential must be explored to the maximum. For this, training needs to be
planned to suit the goals of the establishment and the potential of staff. A good
traning programme, needs to be thought out carefully, because it involves costs
in terms of money, time and effort or planners, trainers and trainees.
Training Programmes
Programmes may be designed in collaborated with teaching institutions like
catering schools, vocational colleges or university colleges imparting education
in various fields of foods and nutrition; food science and catering management.
These teaching establishments can then design short courses according to the
needs of the various food service establishments. This would not only help
food services to utilise existing teaching facilities and experience but also help
teaching institutions to fashion their courses to the needs or the industry.
Notes Colleges can thus build into their own courses an industrial placement for
students to expose them to actual practical job situations. With an effort in
planning and designing training programmes to suit job conditions, sometimes
a well designed programme even, can prove useless to the establishment. There
are two main reason for this:
(a) The style or teaching is not appealing enough to the trainees and
communication breaks down as a result.
(b) The trainees are sent for the course before they are convinced of its
utility at work, or are afraid their seniority or jobs may be lost.
Training is effective only if it stimulates people into thought provoking
activity; brings to them a feeling of confidence in task performance and a sense
or satisfaction at the end of the day.
Catering staff are generally apprehensive about the introduction of change
particularly automation in kitchens, because of a fear they may become
redundant. Training in the proper use of equipment and knowledge of the
variety of ways in which various equipment can be used to advantage can
alleviate this fear. Once a person realises that a machine is meant to save his
time and do the boring, hard, routine jobs and make his job more interesting,
introduction of change is easier. He must, however, be convinced that he is
there to do the task which machines cannot do and is, therefore, indispensable
to the organisation. Just as people need training and retraining to be able to
cope with environmental changes, jobs too require to be redesigned to meet
changed requirements of the organisation and its customers. Redesigning jobs
is the most effective way of bringing about changes in an establishment through
staff participation. Redesigning is the process of changing the way in which a
job is performed.
P revious P roce ss R e designe d P roce ss
C ollec tio n C le ar P ut it P ut th em C ollec t R em o ve p late S ta ck ing in

o f u se d p late in to sink in to so m e d ish es w as te d ish w ater
d ish es w as te d o f w ater ra ck s qty.
A dd d eterg e nts R em o vin g

in to d ish w ater d ry dis h es
W as h it W as h w ith P ut th em in
w ith clea r w a te r a lim ira h fo r u se
S to re/plac ed
liq u id so ap
th em for u se
so lu tio n
Fig. 1

In developing countries particularly, food service establishments tend to Notes

spring up as one-off operations managed single handed. Roadside
establishments in the form of tea shops housed in shacks; vending services;
and mobile catering through hawkers are typical examples. These services are
generally located close to where the entrepreneurs live. The owners or their
dependents are not well educated and generally take to catering in one form or
another to augment family income. It is in these small establishments that the
importance of training becomes apparent. The man running a kiosk, often having
put in all his savings and or borrowed to own it needs to know how to price his
goods for sale in order to make his operation viable. More than the owner of a
fashionable restaurant, the kiosk owner needs to return his loans in the shortest
possible time. Pricing by 'hunch' can make him poorer. His food costs are also
higher because he is purchasing small quantities. Besides he has to be able to
forecast accurately because he does not have enough storage space for leftovers
so important in tropical summers, and he can ill-afford to waste by spoilage.
While small establishments cannot afford to close down and indulge in training,
they can take a step forward by training their dependents who could help to
run the establishment in due course. This is vital for growth and survival in
today's competitive environment. Unfortunately, it is the smaller establishments
which get into a vicious circle of lack of expertise leading to low profits that has
to be broken to bring in more money and the ability to invest on training. Since
training is a costly affair, the best strategy is to start with training of the
manager(s) or people in key positions. They can then impart training in the
right methods and procedures to the staff throughout their departments. This
is not to state that one person can be trained to do all the jobs in his department,
but experience shows that trained managers can retain their staff and efficiency
much better. It is obvious that if staff turnover is reduced, more can be invested
on their development.
AREAS OF TRAINING
Training can be imparted with the object of developing skills in people at all
levels in an establishment.
Programmes may be designed to impart management, supervisory or craft

training.

Notes
Nature of
Human Resource
Management
Employee Employee
Education Selection
HUMAN
RESOURCE
Industrial MANAGEMENT Employee
Relations Remuneration
Employee Employee
Health and Motivation
Safety
Fig. 2: Scope of personnel management.
Craft training is specific in the sense that cooking and serving methods can
be demonstrated or methods of using newer equipment taught. But, supervisory
and management training is a matter of teaching principles and techniques
mathematical and otherwise, of assessing work, people and situations to make
decisions for the future of the organisation. In essence management cannot be
taught, because no one decision is valid for similar situations at different times.
Also, management is closely linked people's personality and altitudes which
affect behaviour at a particular moment. However, people can be trained to
develop an analytic mind to help them to make decisions. How well they manage
in their jobs is still a matter of their experiences, sense of values, presence of
mind and attitudes.
While people who are generally appointed in management positions are

expected to have completed some formal course in management, this not so in
all small food services which are self-owned. Managers of small mushrooming
food services not only need a formal education, but training in all the areas of
food service management, mentioned earlier. It is important to emphasise that
training has got to be a continuous process because no one working in a catering Notes
establishment today can keep abreast with the fast changing technologies, and
management, techniques without updating his knowledge. Working in the trade
for 40 years is credit to a manager without his having undergone retraining
periodically. Training, therefore, needs to become an essential activity in every
progressive establishment, suiting programmes to its particular requirements.
s ent
N eed e sm
Ass
Ne
Da
tio n
eds
A ssesm en t
ta
Im pl em en ta
T rain ing T rain ing T rain ing

e
mm
ta
g ra
Da
Im p le P ro g r
P ro
m e n ta am m
t io n e
Fig. 3: A continuous training cycle.
Training in an establishment is, however, influenced by factors external to

the organisation as well as those within it. The external factors include,
government policy on training, legislation and industrial relations, trade unions
and professional bodies like the Hotel, Catering and Institutional Management
Association (HCIMA), training establishments, institutions for laying down
standards for food, equipment, building and so on. Besides these, are factors
such as the availability of staff (state of employment), skills, suppliers, customers
and technological advances requiring newer or changed skills. Internal factors
which would affect design of training programmes are resources, combining
training with production and service and the level of success expected interms
of profit growth cost reduction reduced labour turn over and reputation of the
establishment.
DEVELOPMENT
As already discussed, there is a close link between training and development.
Every progressive organisation aims at developing its employees and through
them the jobs to be performed. Development is said to take place when people
acquire new values, attitudes and understanding. These help in achieving
individual as well as organisational goals, by enabling favourable responses to
environmental influences. Some changes are visible or quantative, others affect
attitudes. The latter are qualitative in nature and may be termed as
developmental because they provide a sense of direction. In every organisation,

Notes tasks, attitude and sources of motivation change. Original policies, job structures
which are effective to start with become outdated and inefficient with time.
There is therefore a constant need for every establishment to reorganise itself
with time. Studies of organisations and behaviour of people at work have given
rise to a whole new field of management known as Organisation Development
or OD. This offers ways by which the abilities of people can be renewed and
stability brought about in organisations, in spite of rapid changes affecting them
from the external environment. When an organisation develops, a number of
changes can occur in:
(a) The manner in which work is organised, delegated and controlled.
(b) The authority relationships and those between individuals and groups
through role changes.
(c) The style of management.
(d) Overall character of the organisation by a complete change in the
structure.
(e) The degree to which people are self-reliant, assisted, trained and
developed.
It has often been questioned whether the development of adults is at
all possible. Evidence of this is seen when small organisations grow larger
and larger and finally into chain organisations. While growth in size alone
is not an indicator of development, the quality and increase in the diversity
of services offered and meals prepared show that people do develop given
the right environment, training and motivation. Those which do not develop
are often influenced by strong headed managers with narrow minded
views, who have fixed ideas and are opposed to change. Such establishments
cannot survive for too long Managers with a negative approach see their
employees. He assumed that every person has an inherent dislike for work and
has to be coerced, controlled, directed and even threatened in order to achieve
objectives. In such circumstances attitudes, controls, organisational structures
and leadership styles develop, resulting in inflexibility and resistance to change,
These conditions inhibiting development are thus created by the managers
themselves.
PROCESS OF DEVELOPMENT
The process of development may be said to occur in three stages:
1. The need for development is fell in a particular area of the establishment.
For instance, there may be long queues at lunchtimes because food
preparation or service arrangement is inadequate to meet Notes

demand at peak hours of service. This indicates opportunities for
development that were not anticipated, such as resorting to expansion of
facilities.
GENERAL
MANAGER
MANAGER MANAGER MANAGER MANAGER

PERSONNEL ADMINISTRATION HRD IR
PR Canteen Medical Welfare Transport Legal Appraisal Development

Training
Human Hiring Grievance Compensation

Resource Handling
Planning
Fig. 4: Composition of an HR department in a large organisation.
Similarly, a development need can be identified from figures for

employee absenteeism or turnover. Again when an establishment is
planning for expansion, the need for newer skills is generated. Existing
staff may then be developed to take on the responsibilities of new or
changed jobs. It is not uncommon to find establishments resorting to
promotions from within the organisation or appointing internees
developed to fit into job positions.
2. Involving individuals, generally group leaders (or groups), to diagnose
the area for improvements in tile department in which the need is sensed.
Conflicts within groups are bound to occur in this process but these can
be resolved by a shared appreciation of the situation and a conviction by
the majority that changes are needed.
3. From step 2, it is possible to set goals on which an action plan
can be prepared after ascertaining the degree of motivation created in the
workforce.

Notes EVALUATION AND APPRAISALS

The direct compensation package for a salesperson is more or less the same in
all companies. However, as you must have also seen in your experience, a
company employing a technical person as salesperson for selling, say, industrial
or electronic products may offer a high basic salary. Sometimes, when the
product is in the introductory stage the function of the salesperson is to create
new markets and make customers understand how to use the product as in the
case of a new consumer durable product like Vacuum Cleaners or new
electronics products used by certain industries; the basic salary of the salesperson
may be on the higher side. There are two types of compensation direct and
indirect.
The direct compensation package of salesperson thus consists of the basic
pay plus allowances covering all travel and entertainment expenses etc. In case,
the salesperson has to stay over night, his or her boarding and lodging
allowances are also provide for. All the above expenses needless to say, are
budgeted and controlled as per the salesperson’s route and cycle of travelling.
The salesperson is normally required to present necessary vouchers to get his
or her expenses reimbursed.
The basic salary and other allowances are revised from time to time. They
also increase with promotion of the salesperson. More important than the basic
salary are the other benefits made available to the salesperson.
The indirect compensation consist of financial as well as non-financial
incentives. The financial incentives are again in more than one form:
(i) Salary Plus Commission on Sales above Certain Amount
Herein, the salesperson receives direct salary and in addition to it a
commission. Every salesperson is assigned a fixed quota, territory wise/
customerwise to be achieved in a fixed period of time. The commission is
awarded on achievement of the targeted quota. Again, a fixed percentage of
sales achieved over and above the target is also set. This type of compensation
scheme ensures a direct salary as well as an in-built motivation system through
incentives.
(ii) Salary Plus Share in Profits
This is not a very prevalent method. It is generally suggested for a company
selling high value items with high profit margins. The incentive here is based
on profits earned. Herein, the selling expenses to sell a product may also be
large and this is incorporated in the profit sharing scheme as it acts as a control
mechanism. Also salespersons working to obtain contracts are generally given
a share in profits rather than awarded on direct sales.

(iii) Non Financial Incentives Notes

The trend these days is to provide other non financial incentives like:
(a) Training programme.
(b) Awards, recognitions and prizes.
Most companies offer training programmes for their salespersons. On an
average a salesperson has to undergo a training course every one or two years.
These training programmes are viewed as an indirect benefit by the salespersons.
They may be held in the company premises or preferably at an outdoor location.
They break the monotony of the salesperson’s job as well as make him or her
feel a part of the company team. A sense of belonging is cultivated which also
motivates him or her.
In addition to the training programmes the award ceremonies for
outstanding achievements in sales are held in exotic locales like hill stations or
five-star hotels. The awards are presented through foreign dignitaries or
important people in the field, thus providing the salesperson with the much
needed recognition. Also in the corporate sector travelling opportunities are
given as incentives.
FACTORS AND CRITERIA FOR DESIGNING A COMPENSATION

PACKAGE
Although the basic structure of a compensation plan may be similar across the
companies, some factors do predominantly shape the structure of the company’s
compensation plan. They are :
The Relation with Product Life Cycle

The amount of selling effort is directly related with the stage at which a product
is in its life cycle. So, in effect, the compensation structure is an indirect function
of the selling effort.
When the product is in the introductory stage the company needs a dynamic
salesforce which can establish the product in the desired market. The salesforce
must be enterprising, willing to travel, take criticism easily, have a good
knowledge of the product, have good communication skills and last but not the
least, have tremendous stamina to work. To keep such a salesforce motivated,
adequate compensation is the basic need. So, in the introductory stage of a
product, the direct salary may be on a higher side but indirect benefits may not
be on the higher side.
In the growth stage, the motivation of the salesforce has to be sustained to
exploit an me opportunities available in the market. They have to approach the

Notes market with renewed vigour. At this point indirect compensation schemes,
which are incentive linked, play in important role. Incentives linked with
achieving targeted quotas; giving adequate feedback on market and competitor
activities will keep the salesforce happy and at the same time help the product
in its growth.
When the product has firmly established itself, the salesforce also needs a
break from the monotony. Other indirect benefits like training programmes in
good environmental locals; foreign trips for training and understanding the
market; promotions to much responsible positions, etc., are the requirements at
this stage. These programmes not only enhance their knowledge but lend a
new direction of looking at things.
When the product is in the decline stage some fresh incentive schemes may
be introduced in the compensation scheme to generate fresh interest in the
product. The number of people involved with the product also has to increase
marginally. The existing product managers who may be concentrating on a
more successful product at this stage would require added incentives to revive
the declining sales of the product concerned.
Characteristics
You might be slightly surprised to know that in practical situation the
compensation package preferred by the salespeople depends upon their
demographic characteristics also. Their age and size of family or the number of
dependents play an important part in the preference for a basic salary and /or
incentives. However, this cannot be generalised and depends largely on the
individual.
Competitor’s Practices
We can now set a few important criteria which must be kept in mind while
designing a salesforce compensation package. These are primarily:
(i) The budget set for the compensation of salesforce.
(ii) A proper study of job requirements is the second step followed by a
concise job description.
(iii) Defining the organisational hierarchy of the salesforce, the role and
functions of each responsible person in the structure.
(iv) The current trend in the competitors selling similar products in the
similar markets.
(v) “The company’s policy of motivating salespeople whether through
an in-built incentive system or through provision of indirect benefits

like entertainment allowance/liberal travelling allowances and other Notes

out of pocket expense, reimbursements.
(vi) Formal and compulsory training programmes for all sales personnel
to make them feel a part of the company as, well as to develop their
skills and provide them with the necessary break from the monotony
of daily routine sales reports.
(vii) Human resource development programmes to create a feeling of
attachment towards the task at hand and imbibe the culture of the
organisation.
The present day trends lay greater emphasis on the last two mentioned
considerations along with a direct compensation programme inclusive of direct
salary. With selling having become more and more difficult, a satisfactory
compensation package is must to avoid high turnover with the salesforce.
MOTIVATION OF SALESFORCE
Motivation is generally regarded as the process of getting people to work
towards the achievement of an objective. Ideally it should go beyond the
achievement of company objectives, plans, forecasts or targets and help the
company win commitment of salesforce to the company.
Salesforce is primarily responsible for achieving the sales targets and as
already mentioned the salesforce can not be controlled, administered in the
way factory workers or office staff can be monitored. The salespersons are
required to be self starters, highly ambitious, result oriented and go-getters. All
the sales situations cannot be predicted in view of the dynamics of the market
place.
Effective selling, therefore, requires creative skills. Thus, the salesforce has
to be kept highly motivated and committed, both externally as well as internally.
Attracting and maintaining a well motivated salesforce is a challenging
task. The confidence and motivation of a salesperson gets worn out by the
inevitable rejections he or she suffers from customers as part of his or her
everyday activities. In some situations such as selling office automation products
(Electronic Typewriters, Computers, Xerox machines), consumer durables
(television, refrigerators, scooters etc.), services (cruises, tours, etc.) rejections
may greatly outnumber successes. Thus, motivation of salespersons poses a
major challenge to the management. The challenge of motivation is magnified
by the fact that the salespersons and supervisor are formally geographically
separated, as a result the salesperson may feel isolated and even neglected. He
or she is prone to frustration of success and failure coupled with extra working
hours. He or she requires extensive travelling, many days of separation from

Notes family and with sense of risk involved in travelling. Above all he or she has to
live in the environment of competitiveness with his or her own colleagues to
meet the targets. In a market situation characterised by keen competition the
salesperson is constantly exposed to the offerings of the competing
manufacturers - in terms of their sales compensation packages, working
conditions etc. All these peculiar conditions, therefore, require an understanding
of the motivational needs of salespersons by the management.
You have already read about the various motivational theories. It is useful
to keep those theories in view while devising techniques of motivating your
salesforce. The simple motivational tools of early years such as only financial
benefits prove to be a poor method of motivation beyond physiological and
safety needs satisfaction, on account of the unique aspects of a salesperson’s.
The non-financial incentives, thus, become an important component of the
motivation mix of a company.
Surveys based on the salesforce of the different industries have resulted in
identifying some unconventional factors effecting the motivation of the
salesforce. The unconventional factors that make a special mark on salesforce
motivation are discussed below:
1. Meetings between Manager and Salesforce
These are highly regarded by sales managers in the motivation of their sales
teams.
This provides an opportunity to managers to meet their salesforce in the
field, at head office and at the sales meetings/conventions. This further provides
a number of opportunities for improving motivation.
These meetings allow the sales manager to understand the personality, needs
and problems of each salesperson. The manager can then better understand
the causes of demotivation/frustration in individual salesperson and respond
in a manner which takes into account the needs, problems and personality of
the salesperson. Sales techniques can be improved and confidence boosted.
2. Clarity of Job
Clarity of job and what is expected from the salesperson is a great motivator.
The objectives when duly quantified and well defined, properly connected and
linked with the reward and recognition, serve as source of motivation to the
salesperson.
3. Sales Targets or Quotes
If a sales target or quota is to be effective in motivating a salesperson, it
must be regarded as fair and attainable and yet offer a challenge to him or her.
Because the salesperson should regard the quota as fair, it is usually sensible to

allow him or her to participate in the setting of the quota. However, the Notes
establishment of the quotas is ultimately the sales manager’s responsibility
and he or she will inevitably be constrained by overall company objectives.
Quotas can be set on Rupees sales, unit volume margin, selling effort or activity
and product type. The attainment of a sales target or quota usually results in
some form of financial benefit to the salesperson.
4. Sales Contests
The sales contest is an important tool to motivate salesperson. The purpose
of the sales contest varies widely. It may encourage a higher level of sales in
general, to increase the sales of a slow moving product or to reward the
generation of new customers. It provides an incentive to show better
performance and secure more satisfactory results. However, sales contests have
a few disadvantages too. One such disadvantage is that it can encourage
cheating. For example, in one company which used a sales contest to promote
sales at a series of promotional events around country with its dealers,
salespersons “stored up” orders achieved prior to the events in order to increase
the apparent number of orders taken at the events. Also, contests, by pitching
salesperson against salesperson, go against the spirit of mutual help and
cooperation which can improve salesforce performance.
5. Sales Conventions and Conferences
These are the devices of group motivation. They provide opportunities for
salespersons to participate, gain social satisfaction and express their views on
matters, directly affecting their work. They promote team work, dissolve social
barriers, inspire and raise salesperson’s morale. Most of the companies in India
are now-a-days adopting this method to motivate their salesforce.
6. Positive Affect
The positive affect method is also an important technique for motivating
the salesforce to their best.
The proper application of praise, positive feedback, and human warmth
and understanding can impel others to perform up to their capabilities. This
must be done in a genuine way and not be perceived as overtly self serving.
Another form of motivation through positive affect occurs via small group
and peer relations. Friendship, support and comradeship frequently serve as
vehicles for creating a positive feeling towards the company and job.
7. Leadership Style of the Manager
Leadership style of the manager plays an important role in motivating the
salespersons. Inspirational leadership, which refers to influence through referent
power, identification or charismatic charm is an important tool in the

Notes motivational strategy of the management. It infuses the images and expectations
for extremes of effort, sacrifice, achievement and in general “ the right stuff’. It
is practiced through the use of professional speakers special audio tapes and
video tapes designed to arouse and stimulate salespersons. It also tries to create
and perpetuate certain corporate myths and success stories, which indirectly
motivates salespersons to perform at their best.
8. Freedom to Work
In order to perform the onerous duties and responsibilities, the salespersons
must be given a reasonable amount of freedom and discretion in performing
their job. Likert in his studies has mentioned that lack of enough discreation
has a negative impact on employees job satisfaction. Discretion and freedom
may be accomplished by allowing.salespersons to develop their own call
patterns, more control over the types of promotional packages that are offered
to their customers, etc.
9. Reward and Recognition
Although sales quotas, sales contents, conventions and conferences have
positive carry over effects, these are short lived techniques of motivating
salespersons. On the other hand reward and recognition of salesperson’s
accomplishments are more enduring and relatively more sound methods of
motivation. Some of the ways to extend recognition and honour to salespersons
include conferment upon the title of “salesperson of the month/year.”
Congratulation telegrams from top management, sales trophies, offering
membership of social clubs, mention in company newsletter, certificate, etc.
Recognition and honour satisfy salesperson’s need for self-esteem and self-
respect. These are like status pay or a public acknowledgement of the value
that management places upon an individual.
10. Persuasion
One of the more common and recommended forms for including high levels
of motivation is through persuasion. In this situation, managers use rational
arguments to convince salespersons that it is in their own best interests to act
in a preferred way. Persuasion has the advantage of getting-people to conclude
that their actions were performed out of their own free will. This leads to higher
levels of self direction than reward or coercive modes of influence where one
perceives he or she acts more as a function or external compulsion than internal
volition.
FINANCIAL INCENTIVES
Now, we come to the financial aspects of the motivational technique. Financial
incentives are definitely a motivating factor, but they vary at the hierarchial

levels of the salespersons. The need is great at lower end of the salesperson. Notes
That is not only keep the salespersons on the company rolls but also motivate
them to contribute to the growth of the company and thereby get grown
individually. It is also important as a managerial tool to control and direct the
salesforce to attain the sales objectives.
In the management and motivation of salesforce, a fairly reasonable financial
incentive plan plays a very important role and “a salesforce cannot be considered
soundly managed unless there is a well developed and well administered
compensation plan.”
MONITORING OF SALESFORCE
Once the sales plan has been put into action, it is important for the sales manager
to know whether the sales effort is being operationalised in the way it was
expected to be. Organisations depending upon their own needs, through
periodic reporting or field visits, design a monitoring system to keep themselves
informed about the activities of the salesforce on a regular basis. Monitoring
has been explained as keeping abreast of the salesperson’s activities through a
formal feedback system. It is a vital aid in controlling the sales effort and for
furnishing a wealth of data about the salespersons day-to-day activities. The
monitoring system becomes an input in the formal appraisal of the salesperson’s
performance. Sales reports are the basic tool used for Monitoring salespersonnel.
The sales manager uses the information from these reports to judge whether
salespersonnel are calling on and selling to the right people and whether they
are making too many or too few calls.
A good monitoring system also helps the sales management in determining
what can be done to secure more and larger orders.
The basic purposes for which a good monitoring system is designed could
be
(a) to keep the sales manager informed about all the sales activities of the
sales personnels.
(b) to enable the sales manager to get data for evaluating performance;
for example, details of prospects called upon, number of calls made,
number of orders obtained, days worked, kilometeres travelled, selling
expenses incurred, displays arranged, etc.
(c) to enable the sales manager to detect deviations from standard
performance and take timely remedial action.
(d) to help the salesperson plan his or her work e.g. in planning specific
approaches for specific accounts; planning a travel schedule, etc.

Notes (e) to record consumer reactions and complaints in respect of new

products, price changes and service policies.
(f) to record information on competitors activities for example, new
products, changes in promotion and pricing, changes in service and
credit policy, etc.
(g) to record information on local changes.
(h) to build a rich database of territorial information which can be put to
a variety of uses.
(i) to furnish information requested by marketing research i.e. data on
dealers sales, productwise.
The monitoring of salesforce is closely related with the monitoring of sales.
One depends on the other. The sales performance of a company and its salesforce
is measured using a number of parameters on a continuous basis. Some of the
commonly used parameters are
(i) sales per salesperson, per dealer, per product.
(ii) expense to salesperson, ratio for each dealer and salesperson.
(iii) calls per day.
(iv) order - call ratio.
(v) average cost per call.
(vi) direct selling expenses.
(vii) profit contribution analysis.
(viii) number of accounts.
(ix) number of customer complaints.
The emphasis in monitoring is on gathering information on day to day
activities with respect to the chosen parameters and taking a timely stock of
deviation from expected performance. Monitoring therefore is a way of
achieving day-to-day control over the sales effort.
As mentioned earlier, two of the most common methods of monitoring sales
performance are through sales reports or through field visits by the field sales
managers.
PERFORMANCE APPRAISAL AND EVALUATION

Every sales manager is engaged in the task of appraising and evaluating his or
her salesforce continuously in an informal way. Informal evaluation however
is not enough to arrive at realistic and astute assessment of the worth of a
salesperson in absolute or relative terms. The ultimate goal of any evaluation
programme is to make a salesperson more valuable to the company. In order to

achieve the evaluation programme must involve: Notes

(a) A study of the salesperson himself or herself - his or her skills, habits,
aptitudes and attitudes.
(b) A study of his or her selling record, efforts and accomplishments.
(c) An analysis of the direction that the development function is to take.
Evaluating salesperson’s performance is a complex task not only because
salespersons are required to perform a variety of activities, but also because
different types of selling situations require different kind of selling skills, which
may not lend-themselves to equitable comparisons.
In addition salespersons differ in terms of selling acumen and personal
qualities, then territories differ and they are required to spend a large part of
their time away from their immediate supervisor. A good monitoring system,
as you have learnt in the preceding sections, becomes a basis for developing an
appraisal system and for evaluating sales performance.
Appraisal and performance evaluation systems, besides enabling the sales
manager in judging the contribution of his or her sales team and improving its
efficiency, have also been found to be useful in:
(a) Developing salesmanship as an interpersonal influence process,
(b) Motivation of salespersons and supervisory leadership,
(c) Identifying the need for continuous training and development of
salesforce,
(d) Improving selling aids like demonstration materials, working
documents etc., Determining and restructuring salesperson’s territories
and work assignments.,
(e) Improving sales planning like planning call cycles routes and visits,
job preparation etc., and
(f) Introducing sound compensation and incentive systems supported by
a national evaluation system.
There are some basic issues involved in all performance evaluations systems
for salesforce which require consideration while the system is being designed.
You will note that unless adequate attention is given to these issues they might
result in discontentment of those being evaluated. Some of these issues are:
(a) The first issue relates to evaluation based on qualitative vis-a-vis
quantitative data. It is obvious that in any qualitative assessment,
personal bias and subjective value judgement may vitiate evaluation.
On the other hand evaluation based entirely on statistical data may
not give entirely valid results as certain important determinants of a

Notes salesperson’s effectiveness (for example personal effectives of a

salesperson in handling consumer related problems) do not lend
themselves to quantitative definition.
(b) Another issue relates to the comparisons between salespersons on the
basis of the results of evaluation. Such comparisons can never be on a
“person to person” basis since a great deal of human element is
involved and different salesperson have to work under different
geographical and environmental conditions; and may handle different
set of products or customers.
(c) The third issue is related to the problem of determining standards of
performance. The whole evaluation exercise rests on the comparison
of actual sales performances against predetermined standards or
norms. If these norms or standards are not realistic, the whole exercise
would become self-defeating.
(d) Another issue worthy of consideration is the periodicity of evaluation.
Evaluation based on very short-term results may not be very correct
as it ignores the value of some criteria which are of long-term value to
the company. A small example is the effectiveness of a particular
salesperson in cultivating good customer relations, which may give
the company an added. acceptability when it introduces a new product.
On the other hand, evaluation based on very long-term results is not
desirable because if the results are unsatisfactory, it will have a great
impact on the operating results of the company for a longer period.
Periodicity of evaluation has been found to vary with the type of
product sold, industry practices and management’s outlook towards
control. Yearly evaluations are a very common practice though longer
periods are also prevalent, especially in case of capital goods and
industrial goods companies.
(e) The last issue here refers to the accounting system or the database of
the company as a basis of developing the evaluation system. Actual
data taken from typical sales records are not adequate to provide precise
comparison of salespersons or sales group performance. For example,
if the product mix sold by different sales group differs, it will be difficult
to compare the performance of the salespersons in the two different
groups merely on accounting data.

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Punjab Technical University

Dr. R.P. Singh

Dr. R.P. Singh

BSCHMCTT-505: PRINCIPLES OF MANAGEMENT

UNIT-I Hotel Management

UNIT-II Evolution of Management Theories

UNIT-III Hotel Administration & Organization

UNIT-IV Management Objectives & Communication

UNIT-VII Training and Development

2. Basic Concepts of Management 19 – 41

3. Evolution of Management Theories 42–63

4. Hotel Administration and Organisations 64 – 127

5. Management Philosophy 128 – 146

6. Managing by Rules 147 – 155

7. HR Planning 156 – 197

8. Develpoing Human Resources 198 – 219

Notes requires further preparation or finishing touches before it can be

required to which caterers have to adjust. For example, overnight, Notes

HOSPITALITY INDUSTRY STATISTICS

JOB TITLES IN THE HOTEL AND HOSPITALITY INDUSTRIES Notes

HOTEL CAREER PATHS AND ADVANCEMENT OPPORTUNITIES

Job Prospects and Career Options

Eligibility and Course Areas

 Forest Lodges Notes

Food and Beverages Department

Sales and Marketing

Engineering / Maintenance Department

Hotel Management Courses

Certificate Course in Food and Beverages Notes

Notes Diploma in Cookery

Hotel Management Courses: National Council for Hotel

Opportunities for Hospitality Graduates

Hospitality Management: Education and Training

Hospitality Management: Job Opportunities

Casino and Gaming Supervisor

Food and Restaurant Critic

Notes Skills Needed

2 BASIC CONCEPTS OF MANAGEMENT

Notes Representation: The Manager’s job is representation of him/her on

Nature of Management Notes

Management: An Economic Resource

Management: A System of Authority

Management: A Class, Team or Group

Management: Science or Art

Professional Management in India

Notes Moreover, management is to be judged not by formal qualifications of the

Notes 4. To Attain Social Objectives: Management itself is part of the society

Nature of Management Principles

3. Relative, Not Absolute Principles: Management principles are relative, Notes

Arguments for the Universality Concept

Arguments Against the Universality Concept

Notes religious, and cultural bias towards non-scientific behaviour, it will be

Management and Administration – A Terminological Conflict

Top Management Lower Management

Fig. 1: Administrative and Managerial Functions.

Effectiveness and Efficiency

Notes managerial effectiveness, though a manager’s productivity is unlikely to be

(ii) They plan and organise effectively. Notes

CONCEPT OF ORGANISATION THEORY