ACCBP 100 NOTES o inert-personnel aspect of management

which deals directly with influencing, guiding,

CONTINUATION FROM THE WRITTEN NOTES
supervising, motivating sub-ordinate for the
 STAFFING achievement of organizational goals.
o the function of manning the o Direction has following elements:
organization structure and keeping it  Supervision- implies overseeing the
manned work of subordinates by their
o assumed greater importance in the superiors. It is the act of watching &
recent years due to advancement of directing work & workers.
technology, increase in size of  Motivation- means inspiring,
business, complexity of human stimulating or encouraging the sub-
behavior etc ordinates with zeal to work. Positive,
o purpose of staffing is to put right man negative, monetary, non-monetary
on right job. According to incentives may be used for this
Kootz&O’Donell, “Managerial function purpose.
of staffing involves manning the  Leadership- may be defined as a
organization structure through proper process by which manager guides and
and effective selection, appraisal & influences the work of subordinates in
development of personnel to fill the desired direction.
roles designed un the structure”.  Communications- is the process of
o Staffing involves: passing information, experience,
 Manpower Planning opinion, etc. from one person to
(estimating man power in another. It is a bridge of
terms of searching, choose understanding.
the person and giving the  Controlling
right place). o the process of measuring and correcting the
 Recruitment, Selection & activities of subordinates and the company
Placement. itself to assure conformity to plans
 Training & Development. o measures performance against goals and
 Remuneration. plans, shows where negative deviations
 Performance Appraisal. exist, and, by actions to correct deviations
 Promotions & Transfer. and help assure the success of plans
o must precede controlling, plans are not self-
o involves filling and keeping filled the achieving
positions provided in the organization o guide managers in the use of resources to
structure accomplish specific goals. Activities are then
o delineates manpower requirements checked to determine whether they
for the job to be done, which includes conform to planned action. Control
recruiting and selecting candidates for activities generally relate to the
position, compensation, and training measurement of achievement.
or otherwise developing both o Such control devices as the budget for
candidates and current job holders to expense, inspection records, and the record
accomplish their tasks effectively. of labor hours lost are generally familiar.
 Directing o implies measurement of accomplishment
o actuates the organizational methods against the standards and correction of
to work efficiently for achievement of deviation if any to ensure achievement of
organizational purposes organizational goals.
o considered life-spark of the enterprise o to ensure that everything occurs in
which sets it in motion the action of conformities with the standards.
people because planning, organizing o Theo Haimann, “Controlling is the process
and staffing are the mere of checking whether or not proper progress
preparations for doing the work is being made towards the objectives and
 goals and acting if necessary, to correct any  Human relation was pioneered by Elton Mayo and
deviation”. his two colleague researchers F.J Roethlisberger
o Koontz &O’Donell “Controlling is the and William J. Dickson.
measurement & correction of performance  According to these scientists, inter-relationships
activities of subordinates in order to make among members in the organization are the role
sure that the enterprise objectives and of the manager with the intention to successfully
plans desired to obtain them as being accomplish the organization’s objectives.
accomplished”.  they believed that fulfillment of psychological
o Therefore, controlling has following steps: needs will be the prime necessity of the
o Establishment of standard management.
performance.  purpose was not to replace the classical school
o Measurement of actual performance. but to reorient it’s thinking, from financial to
o Comparison of actual performance human factor
with the standards and finding out  the expected outcome was a conflict-free inter-
deviation if any. relationships as possible among members of the
o Corrective action. organization anticipated the manager to be a
leader and supervisor of a rather democratic and
HUMAN RELATION SCHOOL participative style
 emphasizes what was ignored by the classical  Mayo concluded that workers are best motivated
theory. by better communication between managers and
 Classical approach doesn’t account for individual workers, greater manager involvement in
needs of employees, non-financial reward and employees working lives, and working in groups or
social interaction. In short it ignored the human teams.
element.  let people understand more clearly that the
 This school of thought founded by George Elton workplace is not just a place to earn money, but a
Mayo together with his associates from Harvard complex social system which affects their
University. satisfaction and productivity.
 conducted the Hawton Studies from 1924 to 1932  businesses will reach high levels of success if they
at the Hawton Plant of Western Electric Company take Google as a model to learn about human
in United States. relationships, which give support and productivity
 Objective is to figure out the determinant factors in the workplace.
that influence productivity and work performance  Some critics stated that the human relations
of workers. school as just a more indirect and covert attempt
 found out that employees are not motivated at manipulation and exploitation.
merely by money, but other factors such as the  business organization are not social welfare
social network in which every individual can organization and to survive in a highly competitive
interact with others in “a fun working” environment, they have to consider many other
environment factors besides human factor.
 “Supervisor-employee human relations” influence MANAGEMENT SCIENCE OR QUANTITATIVE SCHOOL
the quality of employees’ productivity. OF THOUGHT
 effective and supportive supervisors can bring
about the workers’ satisfaction and also their  school of thought stresses the use of quantitative
better performance. techniques and methods in decision making
 informal work groups make a significant effect on  advocates a logical sequence of problem
every employee’s attitude and the development formulation, gathering information and data,
of the organization. constructing mathematical models, exploring
 to create “a win-win situation” for both the tentative solutions, testing the suggested
managers and workers, the former need to make solutions, and executing them.
the latter have fun because “a happy worker is a  Quantitative tools commonly used:
productive worker” o Waiting line theory or Queueing theory
o Linear Programming
 o Program Evaluation Review  may be broadly be divided in to three parts
Technique(PERT) namely, top management, middle management
o Critical Path Method(CPM) and lower level or first line management.
o Monte Carlo Method o Top Level Management
o Decision Theory  consists of the board of directors and the
o Simulation Theory chief executive or the managing director.
o Probability Theory  the ultimate source of authority and it
 Queueing Theory establishes goals and policies for the
o the mathematical study of waiting lines, or enterprise.
queues.  devotes more time for planning and co-
o Queueing model is constructed so that queue ordination functions.
lengths and waiting time can be predicted. o The role of top management will be
o considered branch of operations research further clear by studying its functions or
because the results are often used when activities:
making decisions about the resources  It lays down the objectives of the
needed to provide a service. enterprise.
 Linear Programming  It prepares strategic plans and policies for
o a method to achieve the best outcome in a the enterprise.
mathematical model whose requirements are  Develops and reviews long range plans and
presented by linear relationships. strategies.
o special case of mathematical  It controls the activities of all departments
with the help of reports, memoranda etc. It
programming(Mathematical Optimization).
also involves in the selection of key
 Program Evaluation Review Technique (PERT)
personnel
o offers a management tool which relies on
 It builds and maintains relations with the
narrow and node diagrams of activities and
outside public.
events
 Evaluates overall performance of various
 Critical Path Method (CPM)
departments and ensures cooperation.
o an algorithm for scheduling a set of project
o Middle Management
activities
 generally consists of heads of
 Decision Theory
functional departments they are
o Some theorists attempted to describe the
responsible to the top
decision-making process, drawing
management for the functioning
knowledge and skills heavily from economics
of their departments.
and psychology.
 devote more time to the
MODERN MANAGEMENT organization and direction
function of management.
 There is no such theory as the modern o The role played by the middle level executives
management theory since there is no one theory is stated below:
accepted by all theorists in the field.  They execute the plans of the
 Harold Koontz contends that the development of organization in accordance with policies
modem management theory has led to a kind of and directives of the top management.
destructive jungle warfare and the management  They make plans for the sub-units of the
theory looks like a jungle. organization.
 Modern Management Can Be Classified Into Three  They participate in the employment and
Different Levels training of the lower-level management.
 The term ‘levels of management refers to a line of  They attempt to achieve coordination
separation between different positions held by between different departments.
different persons in an organization.  Establishes departmental policies.
 Level of management depends upon the nature,  They evaluate the performance of junior
size and functions of an organization. managers.
 expand with the expansion of organization.
 increased so as to achieve effective supervision.
  They send the progress reports and other o applies the principle to all kinds of work,
important data to the top management. managerial or technical
 Selects and recruits personnel. o Authority & responsibility
o Lower Level Management or Supervisory o sees authority as the power or the right
Level entrusted to make the work possible and
 also known as supervisory management responsibility as the duty or work assigned to a
because it is directly concerned with the particular position.
control of performance of the operative o Unity of command
employees. o means that employees should receive orders
 includes supervisors, foremen, accounts from one superior/manager only.
officers, sales officers, and so on o Subordinate of individual interest to General
 devote more time on the supervision of Interest
workers. o The interest of one employee or group of
o The important functions of a supervisor or employees should not prevail over the interest
lower level executive are listed below: of the business.
 To plan and organize the activities of the o Remuneration
group. o Remuneration and method of payment should
 To arrange for necessary materials, be fair and afford the maximum possible
machines, tools etc. for the workers and to satisfaction to employees and employer
provide them necessary working o sometimes called compensation.
environment. o based on "equal pay for equal work."
 To provide training to the workers. o Centralization
 To supervise and guide subordinates.
o Fayol calls it the extent to which authority is
 To solve problems of workers.
concentrated
 To communicate workers problems to the
o a system of management wherein major
higher level management.
policies are made only by the top management
 To maintain good human relations in the
o the opposite of decentralization.
organization.
o Scalar Chain
 To send periodical reports about
o Fayol thinks of it as a "chain of superiors" from
performance.
the highest to the lowest ranks.
 Makes specific task assignments.
o described by the use of the pyramid of
 Maintains close contact with operative
employees. organization consisting of top management
(president, vice-president, etc.); middle
PRINCIPLES OF MANAGEMENT BY HENRI FAYOL management (department managers,
supervisors, chiefs, etc.).
o Henri Fayolis a French industrialist who was the
o "Esprit de Corps"
first to issue a complete statement of general
o explains that "in union there is strength," as
management, used until present
well as an extension of the principle of unit of
o graduated as mining engineer
command
o 1860 he worked as a janitor, and eventually
o emphasizes the need for teamwork and the
became the executive of a coal mining and iron
importance of communication in obtaining it.
foundry company.

14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL

o Division of work
o the assignment of specialized jobs to various
departments and/or positions.
o work is specialized, people learn the task more
easily and perform them more effectively
o which the economists consider necessary to
efficiency in the use of labor.
o Span of control
 o the specific and limited number of increase after each succeeding level had been
subordinates that a manager can effectively reached.
handle and control.
o It is 48 Management for Filipinos determined
by the optimum level of effective supervision. TAYLOR'S FOUR PRINCIPLES OF SCIENTIFIC
o Simplicity MANAGEMENT:
o Unnecessary elements should be eliminated
o Develop a science for each element of a man's
from all activities as well as from the process
work, to replace the old rule-of-thumb
and procedures established for carrying them.
method.
o Unity of direction
o Scientifically select and then train the worker.
o One boss and one plan for a group of activities
(In the past the worker had chosen his own
having the same objective.
work and trained himself as best he could).
o Order
o Heartily cooperate with the men to ensure that
o Ensures a place for everything.
all the work done is in accordance with the
o Equity
principles of the science develop for the work.
o Results from kindness and justice.
o Divide the work and the responsibility equally
SCIENTIFIC MANAGEMENT BY FREDERICK TAYLOR between management and the workers.
Management should take over from the
o Frederick Taylor writes the book “Principles of workmen all work for which it is better fitted.
Scientific Management”.
o first job was an apprentice with Enterprise
Hydraulic Works.
o After finishing his apprenticeship he joined
Midvale Steel Company as a common labourer.
o became a chief engineer.
o found out that workers didn’t exert more efforts
in their work.
o found out that the wage control for wage system
was poor and standards are weak.
o believed a piece-rate system would work if the
workers believed that the standard had been
fairly set and the management would stick to it
rather than to tradition and custom for setting
work standards
o relied primarily on the stopwatch, since he
focused on the amount of time required to
complete a particular job
o usually called the "father of time study."
o presented a balanced view of scientific
management
o believed that a "mental revolution" would have to
take place before management and workers could
see that their positions were compatible
o pointed out that as productivity rose, the Nature
and Concept of Management 49 salaries of both
managers and employees would also arise
o emphasized that managers must avoid such
practices as rates cutting, because they lead to
employee hostility toward management
o advocated the concept of units, a worker would
be paid a. higher rate per unit for any additional
units he proceeds and the rate per piece would