Management

“Management is the art of getting things done through and with people in formally organized
groups.”_Harold Koontz
Objectives of Management
1. Proper Utilization of Resources
2. Development of Business
3. Better Quality Goods
4. Improve Overall Performance: of business, factors of production, employees, etc
5. Minimize Risk: in the organization
6. Promotion of Research
7. Planning for Future
8. Coordination: of different departments and functions
9. Communication
10. Motivation
Management as a Science
It is a systematic body of knowledge.
It contains principles and theories developed through continuous observation,
experimentation and research.
Management is not an exact science. It is a social science or soft science or behavioural science.
Management as an Art
Personal Skill
Practical Knowledge
Creativity
Management is not exclusively a science or an art but a combination of both

Management as a Profession
Organized body of specialized knowledge.
Formal methods of acquiring training and experience.
Entry restricted by qualification.
Service motive

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Levels of Management
On the basis of authority and responsibility:
1. Top Level Management
2. Middle Level Management
3. Lower Level Management

Importance of Management
1. Determination of Objectives
2. Achievement of Objectives
3. Efficient Use of Resources
4. Coordination of Human Efforts
5. Meeting Challenges
6. Economic Development
General Principles of Management
1. Division of Work
It is the process of dividing the work among the workers in an organization.
2. Parity between Authority and Responsibility
Authority is the right to give orders. Responsibility is the obligation to perform the assigned work.
Authority and responsibility should go side by side
3. Discipline
Discipline means obedience, respect of authority and observance of established rules. Good
supervision, clarity of rules, reward and punishment will help to maintain discipline.
4. Unity of Command
Each worker shall have only one superior. Dual subordination should be avoided.
5. Unity of Direction
It facilitates unification and coordination of activities at various levels
6. Subordination of Individual Interest to General Interest
The interest of the group must prevail over individual interest.
7. Fair Remuneration
Fair remuneration must be paid to the workers satisfaction

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8. Centralization
It means concentration of authority with the top management.
9. Scalar Chain
The line of authority that exists in an organization from top executive to the lowest level executive
is called scalar chain.
10. Order
There should be right man in the right job and right material in the right place.
11. Equity
The management should be just and fair in its dealings with the employees.
12. Stability of Tenure of Personnel
A feeling of job security should be created in the minds of employees
13. Initiative
It is the freedom to think for oneself and use discretion in doing work
14. Esprit de Corps
It means team spirit. It increases loyalty and efficiency of the employees.

Functions of Management
1. Planning
Planning is the determination of the course of action to be followed for achieving various
organizational objectives.
2. Organizing
The net work of authority-responsibility relationships is known as organization structure
3. Staffing
Staffing is the placement of right persons in right jobs.
4. Directing
Directing is issuing instructions, leading, motivating and supervising the subordinates. It is
concerned with the execution of plans and policies
5. Coordination
Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of
common objectives.
6. Controlling
Controlling is the measurement and correction of the performance persons against predetermined
standards

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Managerial Role
Henry Mintzberg has identified three categories of managerial roles:
1. Interpersonal Roles
Interpersonal role of manager is concerned with interacting with people inside and outside the
organization.
2. Informational Roles
Informational role of a manager is concerned with serving as a point for exchange of information.
3. Decisional Role
Making important decisions on behalf of the organization is the decisional role of a manager
Elements of Scientific Management
1. Work Study
Work study is the analysis of work to be performed by eliminating unnecessary operations and
finding out the best way of doing it.
Motion Study: A systematic and critical study of the movements of a machine operator and
machine while performing the job is called motion study. Its purpose is to identify and eliminate
useless movements and to find out the best method of doing a particular job.
Time study: Time study is the art of observing and recording the time required to do each
detailed element of an industrial operation.
Fatigue Study: A study relating to the fixation of working hours with the rest periods to
enable the workers to recoup the energy lost while performing the job is called fatigue study. The
fatigue may be physical or mental.

2. Standardization and Simplification

Predetermined standards are laid down for the task, materials, methods, time, cost and working
conditions. It helps to simplify works, ensure uniformity of operations and facilitate comparison of
efficiency.
3. Scientific Selection and Training
Workers should be selected by considering their education, experience and attitude towards work.
Proper training should be provided to workers to make them suitable for the jobs.
4. Functional Foremanship

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Functional foremanship is an extension of the principle of specialization or division of labor to the
sphere of management.
5. Differential Piece Rate System
For motivating workers, a direct link is created between remuneration and productivity. There
should be a suitable system of costing accounting
Contributions of Henry Fayol (1841-1925)

A. Classification of Business Activities

All activities of a business enterprise can be divided into six categories as follows:-
1) Technical activities (Production or manufacturing)
2) Commercial activities(Buying, selling and ex-change)
3) Financial activities(Search for and optimum use of capital)
4) Security activities (Production of property and persons)
5) Accounting activities(record keeping, costing, statistics)
6) Managerial activities(planning, organizing, commanding, coordinating, and controlling)
B. Functions of Management
Fayol identified the following five elements of functions of management process:
1) Planning(To foresee and provide means for the future)
2) Organizing (To provide everything useful for functioning – raw materials, tools, capital and
personnel)
3) Coordinating (Binding together-unifying and harmonizing all activities)
4) Commanding (to lead the personnel in a better way)
5) Controlling (Ensuring everything + goes as per plan)

C. General Principles of Management

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Planning
Planning means deciding in advance what to do, when to do it and who is to do it. It is the
process of thinking before doing.
Importance of planning
1. It focuses attention on objectives
2. It reduces uncertainty
3. It facilitates control
4. It improves motivation
5. Guides in decision making
6. Provides efficiency and economy in operations
Steps in Planning process
1. Awareness of opportunities
2. Establishment of objectives
3. Establishment of planning premises:- planning premises are the anticipated
environment in which plans are expected to operate. They are the assumptions about
the future.
4. Developing alternative courses of action
5. Evaluation of alternatives
6. Selection of the best alternative
7. Formulation of derivative plans:- these are the sub plans and departmental plans
which support the basic plans.
8. Determination of the sequence of activities
9. Execution of the plans
10. Evaluation of the plans
Types of plans
A. Multiuse or standing plans:- the plans which can be used repeatedly in similar
situations are called multiuse plans.
1. Objectives:- these are the aims or purpose for which the organisation is set
up and operated.

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 2. Strategies:- it is a broad plan of action for the use of resources to achieve
the objectives of an organisation.
3. Policies:- they are the guides to action. They provide a broad guideline as
to how the objectives of an organisation are to be achieved
4. Procedures:- it is a systematic way of handling regular events. It is the
steps to be followed in doing certain kind of work.
5. Rules:- they are used for guiding what may or may not be done. It is rigid
and definite.
B. Sigle use plans or adhoc plans:- it is made for handling non recurring problems.
They can not be used again and again.
1. Programmes:- it prescribe clearly the steps to be taken, resources to be
used, and the period within which the task is to be completed.
2. Budgets:- a budget is a projection exhibiting the anticipated cost and
result and the allocation of resources.
3. Schedules:- it is a time table of work. It specifies the exact time when a
task is to begin and when it will complete.
4. Projects:- a project involve time bound activities. It is a work that can
be analysed and evaluated as an independent unit.
5. Methods:- it provide detailed and specific guidance for day to day
actions. A method specifies the one best way of performing each step
in a task.

Management By Objectives(MBO)
It is the process by which the management intends to achieve the best result through the
active participation of all the workers. In this the superiors and subordinates jointly
determine the common objectives and result to be achieved.
Benefits of MBO
1. Improved planning
2. Better management
3. Team work
4. Better personnel commitment
5. Effective control
6. Impartial and objective appraisal of employees
7. Motivation and morale
Measures for making MBO effective
1. Clearly define the purpose
2. Support of the top management
3. Proper training and orientation to all levels of management
4. Adequate time and resources
5. Decentralisation of authority

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 6. Getting timely feedback
7. Managers must be very sensitive in handling different problems

Co- Ordination
Meaning:- it is the orderly arrangement of group effort to provide unity of action in
pursuit of a common purpose.

Importance of co- ordination

1. Unity in diversity
2. Unity of direction
3. Specialisation
4. Reconciliation of goals
5. Large number of employees
6. Smooth flow of information
Avoid conflicts

Types of co- ordination

1. Internal co-ordination:- co- ordination between different departments or divisions of
an organisation.
A. Vertical and horizontal co- ordination:- vertical co-ordination is the co-
ordination between different levels of management. Eg. Between head
office and branch. Horizontal co- ordination is the co- ordination between
the activities of same level of authority. Co- ordination between two
branches is an example.
B. Procedural and substantive co- ordination:- procedural co- ordination
refers to the description of the behaviour and relationship of the
organisation. Substantive co- ordination is concerned with the content of
activities in the organisation.
2. External co-ordination:- co- ordination between an organisation and external parties
like government, customers, suppliers, trade union etc.

Organising
Organising means bringing together the necessary men, machines, materials and money for
the achievement of common objectives
Importance of Organisation
1. Facilitate the growth of the enterprise
2. Encourages specialisation
3. Ensure the diversification of activities
4. Promote optimum use of resources

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 5. Motivates the workers through decentralisation
6. Create team spirit among the workers
Formal organisation
An organisation is formal when the activities of two or more persons are co ordinated
towards a common objective.
Informal Organisation
An informal organisation refers to the relationship between people in an organisation
which is not based on procedures and regulations, but on personal attitude, whims,
prejudices, likes and dislikes. The activities of the people are not deliberately co-ordinated.
Basis Formal organisation Informal organisation
Origin It is created deliberately It emerges spontaneously
by the management from
Likes and dislikes of
employees.
Purpose It is created for achieving It is created by members
the organisational for their social and
objectives psychological satisfaction.
Size Large in size Small in size
Nature Stable and continues for a Unstable in nature
long period of time
structure It has a definite structure It is structureless
Communication Communication flows Communication passes
through the prescribed informally
chain of command
leadership Leadership is vested in Leadership is not
managers associated with
managership

Types or forms of Organisation

I. Line Organisation
In this type, the authority flows from the man at top level to the man at the lowest
level vertically in a line. The directions are issued by the man in charge of the whole
organisation and are directly conveyed to the person responsible for the execution of
the job.
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 II. Functional Organisation
In this Several departments will be created based on different Functions. Workers in
each department have to take orders from different Supervisor. For each work, they
have to get instructions from the concerned functional head.
III. Line and Staff Organisation
The line and staff system divide the work of administration of business units into two
broad divisions: Line and Staff. The staff decides what, when, and by whom a
particular work is to be done. The line is responsible for the actual performance of
the work planned by the staff.
IV. PROJECT ORGANISATION
This structure is adopted when an organisation has to execute large projects of long
duration. The project manager co-ordinates the activities of different persons. He is
responsible for the successful completion of the project. When a project is
completed, the project division undertakes a new project.
V. Matrix Organisation structure
Matrix organisation is a combination of functional organisation and project
organisation structures. It is characterised by an overlapping of command, control
and behaviour patterns
VI. Committee Organisation structure
A committee consists of a group of persons. It is set up to perform certain specific
duties

Organisation Chart
An organisation chart is a graphic record which clearly pictures formal organisation
structure. It shows the formal superior-subordinates relationships.

Organisation Manual
An organisation manual includes descriptions of each job and other information.
Authority
It is a power to command others to do or not to do a certain thing necessary for
realising the objectives of the firm.
Responsibility
Responsibility is a specific duty or work assigned to a particular position.

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Accountability
Accountability is the obligation to carry out responsibility and exercise authority in
terms of performance standards. Accountability cannot be delegated.
Delegation of Authority
Delegation is the process of dividing and entrusting work to others.
Decentralisation of Authority
It means disposal of authority throughout the organisation.
Advantages
o Reduces the burden of top executives
o Facilitates diversification
o Improves motivation
o Ensure effective control
o Develop the quality of managers
Disadvantages
• High cost of operation
• Lack of uniformity
• Unsuitable for small firms
Delegation Decentralisation
• It refers to the transfer of authority • It refers to the dispersal of
from one person to another. authority throughout the
organisation.
• The delegator exercises control
over the sub-ordinates. • The control may be delegated to
the lower levels.
• It is compulsory .
• It is optional.
• It shows relationship between
superior and subordinates. • It shows relationship between top
mgt and departments.
• It is a techniques of management.
• It is both philosophy and
• It can take place without
techniques.
decentralisation.
• It cannot take place without
delegation.

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Centralisation of Authority
Centralisation implies the concentration of authority at the top level of the organisation.
Advantages Disadvantages
Utilises the talent of top executives Delay in decision making. Actions
effectively are also slower
Facilitates the integration of all Does not motivate the sub ordinates
works of different departments
Helps to develop a strong top Delegation of authority and
management team responsibility is minimum.
Ensure uniformity of policies and Mostly depend upon the qualities of
plans the top management
Minimise the duplication of works Minimum number of departments
and divisions in the organisation
structure.
Difference between decentralisation and Centralisation
Basis Decentralisation Centralisation
Establishment of Several divisions or Minimum number of
departments departments in the departments
organisation structure
Delegation of authority Delegate large part of Minimum delegation
authority and of authority and
responsibility responsibility
uniformity There is lack of There is uniformity of
uniformity of policies policies and actions
and actions
Close control No close control over There is close control
the subordinates over the subordinates
Decision making Faster decision making Decision making is
and actions slower
motivation It motivates the Does not motivate the
subordinates subordinates

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 Staffing
It is the process of identifying, assessing, placing, evaluating and developing individuals
at work. Thus, it involves the procurement, development, compensation, integration and
maintenance of personnel in an organisation.
Recruitment
Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organisation.
Sources of Recruitment
Internal Sources
Many organisation fill job vacancies through promotions, transfer of existing staff and
present employees
 Transfer, Promotion
External Sources
 Direct Recruitment, Unsolicited Applications, Advertisement, Employment
Exchanges, Educational Institutions, Labour contractors, Casual callers,
Recommendations, Personnel Consultants, Leasing etc.
SELECTION

It is like a screening process, which is carried out to choose the best, the talented and
the most suitable persons from among the various applicants. The primary objective
of selection process is to choose the right man for the right job.

Recruitment Selection

• The objective is to attract more & • The objective is to eliminate

more applicants. unsuitable persons.
• It is positive in nature. • It is negative in nature.
• Recruitment process starts before • Selection starts after the process
selection. of recruitment.
• The sources of recruitment are • There is no such classification
classified as internal & external. here.

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 • There is no restriction on the
number of persons applying for
• Only restricted number of persons
the job.
are selected.
• It is a simple process.

• It is a complex and lengthy

process.

Training
Training is the act of increasing the knowledge and skills of an employee for doing a
particular job.
Methods and Types of Training
1. On-the-Job Training
Here, the workers is given training at his work place by his superior who knows what
the trainee should learn to do.
2. Vestibule Training
In this, employees are taken through a short course under working conditions that
are similar to actual shop, sales or office conditions.
3.Classroom Training or Special Courses
The lecture method can be used for large groups. Thus, the cost per trainee is low
4. Induction or Orientation Training
This is concerned with introducing or orienting a new employee to the organisation
and its procedures, rules and regulations.
5.Refresher Training
This is meant for the old employees of the enterprise. Its purpose is to acquaint the
existing employee with the latest methods of performing their jobs and improve their
efficiency further.
6.Apprenticeship Training
It combines on-the job training and experience with class-room instructions in
particular subjects.

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 Job Analysis
It is the process of examining a job. Job analysis may be described as the study of the
job, its nature and components.
Job Evaluation
It is the evaluation of the job. It involves a formal and systematic comparison of jobs
in order to determine the worth of one job relative to another one.
Methods of Wage Payment
1. Time Wage System
The time wage system is based on the time the workers has spent in the organisation
without taking the output into account. This method is also known as the “day work”
system of wages
2. Piece Wage System
In piece wage system, wages are calculated on the basis of production or output.
This method is also known as “Payment by Results”.
Performance Appraisal
Performance appraisal is the method of evaluating the behaviour of employees in the
work spot, normally including both the quantitative and qualitative aspects of job
performance
Objectives of Performance Appraisal
To make systematic judgements for increase of salary, change of job or promotion,
transfer, demotion and termination
To enable the employees to know how he is doing the job, and suggest the needed
changes to improve his performance.
To reveal the causes of good and poor employee performance.
To motivate employees by indicating their performance levels

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 Direction
It is the managerial function of guiding, overseeing and leading people to the attainment of
organisational objectives.
Nature/ features of Direction
1. A managerial function
2. Linking function- connecting link between preparatory management function and
controlling
3. Pervasive function- it is the function of all managers at different levels
4. Dynamic function
5. Continuing function
6. Creative function
Importance of Direction
1. Initiates action
2. Ensure co-ordination
3. Improves efficiency
4. Facilitates changes
5. Provide stability
LEADERSHIP

According to George R Terry leadership is the activity of influencing people to strive

willingly for group objectives. It is the ability to build up confidence and zeal among
the subordinates.
Types of leaders
1. Intellectual leaders:- they have high knowledge and intelligence. They are
experts in their field.
2. Institutional leaders:- such leaders are those who like the prestige attached to
their position.
3. Democratic/ Consultative leaders:- They take decisions in consultation with
the subordinates.
4. Autocratic/ Authoritarian leaders:- he takes decisions without consult with the
subordinates. They likes authority and power.
5. Persuasive leaders:- the subordinates love and respect him. This makes him
getting things done through others.

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 6. Creative leader:- he get the things done without exerting undue personal
influence.
7. Laissez-faire/Free- rein leaders:- they delegate complete authority to
subordinates.
Qualities of a leader
1. Technical and general education
2. Communication and social skill
3. Mental and physical energy
4. Imaginative power
5. Sense of responsibility and loyalty
6. Ability to take decisions
7. Self confidence and maturity
8. Knowledge and intelligence
9. Management skill
10. Commanding power

LEADERSHIP STYLES
1. Autocratic or Authoritarian leadership
Makes all decisions without consulting with others. Centralises power and never
delegate authority. Exercises complete control over the subordinates.
2. Democratic or Participative Leadership
Takes decisions in consultation and participation with the subordinates
3. Free rein or Laissez Faire Leadership
Complete delegation of authority. Employees themselves take decision. Leader avoid
power and position.
4. Paternalistic Leadership
Leaders function is parental or fatherly

Managerial Grid by Blake and Mouton - Blake and Mouton styles \ types of
leadership
. Impoverished(1,1)
The managers with this leadership style exert minimum effort to get the work
done by the subordinates. The leader avoids controversy.
2. Country Club(1,9)
The leader lays more emphasis on the personal needs of the subordinates and
give less attention to the output.
3. Middle Road(5,5)
The manager with this style tries to keep a balance between the organizational
goals and the personal needs of his subordinates.

4. Task Management(9,1)
Here, the leader is more concerned with the production and lay less emphasis

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on the personal needs of his subordinates. The task is well planned authority is well
defined.
5. Team Management(9,9)
It is the most effective leadership style wherein the leader takes both people
and production hand in hand. The leader with this style feels that empowerment,
trust, respect, commitment helps in nurturing the team relationships, which ultimately
results in the increased employee satisfaction and overall production of the
organization. It is considered as the best leadership style.

Likert’s four level model

System 1. Exploitative Autocratic:
Under this system, the manager makes all decisions and orders his
subordinates to carry out the decisions. The subordinates have no say in then decision
making process.

System 2. Benevolent Autocratic:

The managers under this system are also autocratic but they are not
exploitative. They allow some freedom to subordinates to carryout their task within
the limits.

System 3. Consultative:
Under this system, the managers set goals and issue orders after discussing
them with the subordinates.

System 4. Democratic:
Under this system, managers are friendly and supportive in their attitude
towards the subordinates. The goals are set and work related decisions are taken by
the subordinates.

Theories of Leadership

1. Great Man Theory

According to this theory, leadership calls for certain qualities like
commanding personality, charm, courage, intelligence, persuasiveness and
aggressiveness.
2. Trait Theory
The trait theory of leadership states that certain natural qualities tend to create
good leaders. Leaders were characterised by a wide variety of traits like maturity,
vision and foresight, acceptance of responsibility, open mindedness, adaptability, self
confidence, social understanding, honesty, justice etc
3. Behavioural Theory:
Here, the leader uses conceptual, human and technical skills to influence the

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 behaviour of his subordinates. The behavioural theory attempts to describe leadership
in terms of what leaders do rather than what they are.
4. Situational Theory:
The situational theory of leadership does not relate to a certain type of leader
or claim that any one style is best. Instead, situational theory argues that the best kind
of leader is one who is able to adapt his style based on the situation.

MOTIVATION
Definition:- According to Mc Farland “motivation refers to the way in which urges,
drives, desires, aspirations, starving or needs direct, control or explain the behaviour
of human beings

Theories of motivation

Maslow’s Need Hierarchy Theory

I. Physiological Needs

These include the things that are vital to our survival. According to this theory, once
these basic needs are satisfied, they no longer motivate. Some examples of
physiological needs include:Food, Water, Breathing, Homeostasis

II. Safety and Security Needs

People want control and order in their lives. So, this need for safety and security
contributes largely to behaviors at this level. Some of the basic security and safety
needs include: Financial security, Heath and wellness, Safety against accidents and
injury.

III. Social Needs

• The social needs in Maslow’s hierarchy include such things as love, acceptance,
and belonging. At this level, the need for emotional relationships drives human
behavior. Some of the things that satisfy this need include:
• Friendships
• Romantic attachments
• Family

IV. Esteem Needs

At this point, it becomes increasingly important to gain the respect and appreciation
of others. In addition to the need for feelings of accomplishment and prestige, esteem
needs include such things as self-esteem and personal worth. Participation in

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 professional activities, academic accomplishments, athletic or team participation, and
personal hobbies can all play a role in fulfilling the esteem needs.

V. Self-Actualization Needs
According to Maslow’s definition of self-actualization, "It may be loosely described
as the full use and exploitation of talents, capabilities, potentialities, etc.”
Self-actualizing people are self-aware, concerned with personal growth, less
concerned with the opinions of others, and interested in fulfilling their potential.
Herzberg’s Motivation Hygiene Theory \ Two Factors Theory

The two-factor theory (also known as Herzberg's motivation-hygiene theory and

dual-factor theory) states that there are certain factors in the workplace that cause job
satisfaction while a separate set of factors cause dissatisfaction, all of which act
independently of each other.
1. Motivational factors\ Satisfiers

These are factors involved in performing the job. Employees find these
factors intrinsically rewarding. Motivational factors include: Recognition,
challenging work, responsibility, possibility for growth and
sense of achievement.
2. Hygiene factors\ Dissatisfiers-
Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-
term. But if these factors are absent / if these factors are non- existent at
workplace, then they lead to dissatisfaction. They include:
Job Security, Status, Pay, Interpersonal relations.

McGregor’s Theory X and Theory Y

Theory X
This theory is based on following assumptions:
• The average individual is by nature indolent and will avoid work if he can.
• The average persons lacks ambition, dislikes responsibility and prefer to be led.
• An average individual is inherently self cantered, and different to organisational
goals.
• Most people are nature resistant to changes and wanted security above all.
All the above assumptions are negative in nature. Therefore theory X is a
conventional or traditional approach to motivation.
An organisation based on this theory will be one in which there is close
supervision and control of subordinates, and high centralisation of authority.

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 Theory Y
This theory is based on following assumptions:
• The average human being has no inherent dislike for work.
• External control or threat of punishment is not the only means of motivating people
to work.
• The average human being does not dislike responsibilities.
• Once the people have selected their goal, they will pursue it even without close
supervision and control.

Theory Z
Theory Z suggests that large complex organizations are human systems and
their effectiveness depends on the quality of humanism used. A type Z organization
has three major features—trust, subtlety and intimacy.
Mutual trust between members of an organization reduces conflict and leads to team
work. Subtlety requires sensitivity towards others and yields higher productivity.
Intimacy implies concern, support and disciplined unselfishness.

CONTROL
Control can be described as that part of management function which continuously
regulates the activities of a concern to obtain the expected results.
Importance of Control
 Guide to operations
 Policy verifications
 Managerial responsibility
 Co ordination in action
 Efficiency and effectiveness
 Employee morale
 Basis for future actions
 Facilitate decentralisation

Methods and Techniques of control

1. Budgetary control Technique

A. Budget
B. Flexible Budgeting
C. Zero Base Budgeting
D. Budgetary Control

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 2. Non Budgetary Control Techniques

a. Personal Observation
b. Good Organisation Structure
c. Statistical Control Reports
d. External Audit
e. Internal Audit
f. Ratio Analysis
g. Marginal Costing
h. Break-even Analysis

II. Modern Techniques of Control

1. Return on Investment (ROI)
2. Responsibility Accounting
3. Management Audit
4. Management Audit
5. Programme Evaluation and Review Technique(PERT)
6. Critical Path Method(CPM)
7. Programme Planning and Budgeting(PPB)

Control \ Management By Exception(MBE)

Only significant deviations from standard performance should be brought to the
management's attention. It is tool used in organisational control.
QUALITY CIRCLE
A well governing group of workers with or without their supervisors who voluntarily
meet regularly to identify, analyse and solve problems of their work field.
OBJECTIVES OF QC
 Improve human relation and workers morale
 Promote participative culture
 Make teamwork more effective
 Reduce defects and improve quality
 Increase productivity
 Enhance problem solving capacity

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 BENEFITS QC
Direct Benefits Indirect Benefits
Making work more easy Improving employee morale
Reducing costs Developing personal capabilities
Minimising wastages Developing human relation
Increasing productivity Improving working condition
Increasing customer satisfaction Solving work related problems

HOW TO MAKE QC EFFECTIVE?

 Employees should be encouraged to suggest ways and means to improve quality
 The QC members must be given adequate training
 The top management should extend full support to QC’s
 Each QC should have a number of meetings and discussions
 The management should allow the workers to hold QC meetings during working
hours
 The members should feel free to choose problems and make suggestions and monitor
the results
TOTAL QUALITY MANAGEMENT(TQM

It is the continuous improvement in all part of the organisation with a view to

satisfying customer needs.

Features of TQM
 It focus on customers requirements and their satisfaction
 It requires a long term commitment for continuous improvement of all processes
 The success of TQM depends on commitment, leadership and involvement of top
management
 TQM demands a structural, educational, and training programmes for success
 It is a strategy for continuously improving performance at all levels
OBJECTIVES OF TQM
 Customers needs must be met in time, regularly and fully
 There shall be a system of recognition and reward in the organisation
 The management should establish standards in products, processes and people

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 The management should ensure involvement of everyone in the organisation, from
CEO to labourer
 Cost of quality must be measured appropriately and relatively
 Employees must strive to do error free work

BUSINESS PROCESS REENGINEERING(BPR)

“It is the fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in critical, contemporary measures of performance,
such as, cost, quality, service and speed”.

OBJECTIVES OF BPR
 To encourage constant learning
 To improve information technology
 To encourage teamwork
 To redesign the key business processes, in order to improve quality and reduce cost

SIX SIGMA
 Six sigma is a quality programme that, when all is said and done, improves your
customers experience, lowers your costs, and build better leaders. A six sigma
process is one in which 99.99966% of the products are statistically expected to be
free of defects, i.e. 3.4 defective products per million.
FEATURES OF SIX SIGMA
 It focus on achieving measurable and quantifiable financial returns from any project.
 It emphasises strong and passionate management leadership and support.
 It is committed to make decisions on the basis of verifiable data and statistical
methods, rather than assumptions guesswork.
 It changes the corporate culture
KAIZEN
It is a Japanese term meaning “continuous improvement”.
It involves making the work environment more efficient and effective by creating a team
atmosphere, improving everyday procedures, ensuring employee satisfaction, and
making a job more fulfilling, less tiring, and safer.

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