basic of hr management

UNIT I (MPSD) The word mgmt. Identifies a group of people whose job is to direct the efforts and activities of other people towards common objectives but in the mgmt. literature we find a large number of definitions of mgmt given by different writers who had different orientations or perspectives. We can define mgmt as: Mgmt as an art of getting things done. Mgmt as a process. Mgmt as a group of managers. Mgmt as a discipline. Nature of Mgmt. Mgmt is a distinct activity having the following salient features or characteristics: Goal Oriented: Mgmt is a purposeful activity. It coordinates the efforts of workers to achieve the goals of organizations. The success of mgmt is measured by the extent to which the organization goals are achieved. It is imperative that the organizational goals must be well defined and properly understood by the managers at various levels. Economic Resource: Mgmt is one of the factors of production together with land labour and capital. It is most critical input in the success of any organized group activity. It is the force, which assembles and integrates other resources namely, labour, capital and materials. These factors do not by themselves ensure production; they require the catalyst of mgmt to produce goods and services required by the society. Distinct Process: Mgmt is a distinct process consisting of such functions as a planning, organizing, staffing, directing and controlling these functions are so interwoven that is not possible to lie down exactly. The sequence of various functions or their relative significance in essence the process of mgmt involves decision-making and putting of decisions into practice. Integrative Force: The essence of mgmt is integration of human and other resources to achieve the desired objectives. All these resources are made available to those who manage. Mangers apply knowledge, experience and mgmt principles for getting the results from the workers by the use of non-human resources. Managers also seek to harmonize the individual goal with the organizational goals for the smooth working of the organization. Intangible Force: Mgmt has been called unseen forecast presence is evidenced by the result of its efforts-orderliness, informed employees, buoyant spirit and adequate work output. Thus, feeling of mgmt is result-oriented. One may not see with the naked eyes the functioning of mgmt but its results are apparently known. People often remark of the effectiveness of mgmt on the basis of the end result; although they cant observe it during operation. Results through others: The managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. They must motivate the subordinate for the accomplishment of the tasks assigned to them. A science and an art: Mgmt has an organized body of knowledge consisting of well defined concepts, principles and techniques which have wide applications so it is treated as a science. Applications of this concepts, principles and techniques require specialized knowledge and skills from the part of the manager. Since the skills acquired by the manager is his personal possession. Mgmt is viewed as an art. System of Authority: Mgmt as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels posses varying degrees of authority. General as we move down in managerial hierarchy the degree of authority gets gradually reduced. Authority enables the managers to perform their functions effectively. Multi-disciplinary Subject: Mgmt has grown as field of study taking the help of so many other disciplines such as engineering, anthropology, sociology and psychology. Much of mgmt literature is the result of the association of these disciplines. For instance productivity orientation drew its inspiration from industrial engineering and human relations orientations from psychology. Similarly, sociology and operation research have contributed to the development of mgmt science. Universal Application: Mgmt is universal in character. The principles and techniques of mgmt are equally applicable in the fields of business, education, military, government and hospital. The principles of mgmt would apply more or less in every situation. The principles are working guidelines, which are flexible and capable of adaptation to every organization where the efforts of human beings are to be coordinated. MANAGERIAL FUNCTION According To Henri Fayol – To manage is to forecast and plan, to organize, to command, to coordinate and to control. Thus , Fayol has given the following five function of mgmt. Forecasting and planning. 2) Organizing 3) commanding 4) coordination 5) control. Accor. Ralph Davis classified managerial function into three categories viz, planning, organizing, and control. According to Luther Gulick- coined the word PODSCORB to describe the functions of mgmt. This word is made up of the initial of the following function namely, planning, organizing, directing, staffing, coordinating, reporting, and budgeting. Thus we can say that there is no universal accepted classification of managerial function. For the purpose of analysis of mgmt. Process. These functions are interdependent & inter-related. Planning: Planning is a mental process requiring the use of intellectual faculties, foresight and sound judgment .It is the determination of a course of an action to achieve the desired result. It is the selecting and relating of facts and the making and using of assumption regarding the future in the visualization and formation of proposed activities believed necessary to achieve desired result. Planning bridges the gap between where we are to where we want to go. The process of planning involves the following steps: Determination of goals or objectives of the enterprise. Forecasting Search of alternatives course of action Evaluations of various alternatives and formulation of a plan Formulation of policies and procedure Preparation of schedules, program and budgets. Organizing: It is an important managerial activity by which management brings together the manpower and material resources for the achievement of pre determined objectives. Organisation is the process of establishing relationship among the member of the enterprise. The relationship is created in the term of authority and responsibility. Organisation involves the following steps: Identification of activities required for the achievements of objectives. Grouping of activities so as to create well define job. Assignment of job to employees Delegation of authority to subordinates. Establishment of authority responsibility relationship throughout the organisation. Staffing: The staffing function of mgmt. Pertains to recruitment, selection, training, development, and appraisal of personnel. There is a controversy whether staffing is a function off every manager in the organisation. Since every manager is concerned with mgmt. Of the human resources, he must perform the staffing function. Staffing comprises the following sub-functions: Manpower planning involving determination of the no. and the kinds of personnel required. Recruitment for attracting suitable personnel to seek jobs in the enterprise. Selection of the most suitable person for the job under consideration. Placement and orientation of employees. Transfer and promotion, etc. of employees. Training and development of employees. Directing / Leading: In the words of Marshall, Directing involves determining the course of action, giving orders and instruction and providing dynamic leadership. Accor. to G. R. Terry, directing means moving to action and supplying simulative power to group of person. Thus, directing involves issuing instruction or communication to the subordinates, leading, motivating, and supervising, them. Communication Leadership Motivation Supervision Controlling: The function of controlling deals with the measurement and correction of the performance of person against the pre-determined standards. Control is also the process of checking actual performance against the agreed standards with a view to ensuring satisfactory performance. The process of control involves the following steps: Establishment of standards. Measurement of performance. Appraisal of performance. Taking corrective action. Co-ordination: Coordination is the orderly synchronization of the efforts of the sub-ordinates for the achievement of the goals of the organisation. Coordination is the function of manager and is the first principle of organisation. Coordination is the achievement of orderly group efforts and unity of action in the pursuit of a common purpose. Coordination has the following features: It is an orderly arrangement of group efforts. Its purpose is to secure unity of action towards common objectives. It is needed at all levels of mgmt. It is the essence of managing. MANAGEMENT PROCESSES Fayol viewed management as a process consisting of five functions, namely, planning, organizing, commanding, coordinating and controlling. Management is the process of effective utilization of human and material resources to achieve enterprise objectives. The human resources comprise of people working with the organisation and the material resources include capital, technology, machines, materials, etc. These resources are utilized by management through planning, organisation, leading, control and coordination for the accomplishment of organisational objectives. The objectives include reasonable profit through the satisfaction of customers' needs, fulfillment of social responsibilities, growth and good public image. As a matter of fact, management is a goal-oriented process. Process Of Management As shown in figure six M's i.e. men, women (human resources), materials, machines, methods, money (capital) and markets are utilized by the management to produce the goods and services desired by the society. In this process, the managers perform the functions of planning, organizing, staffing, directing and controlling. Management is called a process because it comprises a series of functions that lead to the achievement of certain objectives. It is a continuous process consisting of planning, organizing, staffing, directing and controlling. When a manager reaches the last step, viz., control, his job does not end there. He will again start with planning on the basis of his past observations and experience and his projection about the future. A manager has to perform these functions simultaneously to achieve the desired objectives. Thus, management is a never-ending process. MANAGERIAL SKILLS The job of a manager demands a mixture of many types of skills, whether he belongs to business organisation, an educational institution, a hospital or a club. A manager is successful when he is able to make a smooth functioning team of people working under him. He has also to plan and organize the operations of the enterprise so that the subordinates are able to use the material resources in the best possible manner and achieve organisational goal. For this, he must use the various skills in appropriate degrees. We can broadly classify the skills required by managers into the following three categories: (i) Conceptual Skills: Conceptual skill is the ability to see the organisation as a whole, to recognize inter-relationships among different functions of the business and external forces and to guide effectively .the organisational efforts. Conceptual skills are used for abstract thinking, and for the planning and strategy formulation A manager needs conceptual skills to recognize the interrelationships of various situational factors and, therefore, make decisions that will be in the best interests of the organisation. (ii) Human Skills: Human skills are essential to work with others and achieve their cooperation. Human skills are the abilities needed to resolve conflicts, motivate, lead and communicate effectively with others. Because all work is done when people work together, human relations skills are equally important at all levels of management. Every manager should be able to communicate effectively and also understand what thoughts others are trying to convey. (iii) Technical Skills: Technical skills refer to specialized knowledge and proficiency in handling methods, processes and techniques of specific jobs. These skills are most important at lower levels of management and much less important at upper levels. Managerial Skills ROLES OF MANAGERS A role consists of the behavior patterns expected of a manager within an organisation or a unit. Roles performed by managers and classified under three heads. (1) Interpersonal; (2) Informational and (3) Decisional. These role-organized sets of behaviors belonging to a position describe what managers actually do, whereas functions of managers had historically described what managers should do. Interpersonal Roles. The interpersonal roles are as follows: A manager is a Symbol, or a figurehead: This role is necessary because of the position occupied. It consists of such duties as signing certain documents required by law and officially receiving visitors. A manager serves as a leader that is, he trains, encourages, remunerates, and judges the subordinates. A manager serves as a liaison between outside contacts such as the community, suppliers and others and the organization. Informational Roles. The informational roles are as follows: As monitors, managers gather information in order to be well informed. Managers are disseminators of information flowing from both external and internal sources. Managers are spokes-persons or representatives of the organisation. They speak for subordinates to superiors and represent upper management to subordinates. Decisional Roles. The decisional roles of a manager are: Managers as entrepreneurs are initiators, innovators, problem discoverers, and designers of improvement projects that direct and control change in the organisation. As disturbance handlers, managers react to situations that are unexpected, such as mass absenteeism, resignation of subordinates, or losing of customers. A third decisional role is that of resource allocator, i.e., who will get what? Finally, managers are negotiators. The managers negotiate with customers, suppliers, etc. Managers in any organisation work with each other to establish the organization's long-range goals and to plan how to achieve them. They also work together to provide one another with the accurate information needed to perform tasks. Thus, managers act as channels of communication within the organization. EVOLUTION OF MANAGEMENT THOUGHTS The origin of management can be traced back to the days when man started living in groups.' One can argue that management took the form of leadership, which was essential to coordinate the efforts of the group members in order to arrange the necessaries of life. History reveals that strong men organized the masses into groups according to their intelligence, physical and mental capabilities. Egyptian literature of 1300 B.C., ancient Chinese literature, Greece literature shows functional areas of authority and degrees of importance to management Industrial Revolution Industrial revolution was the result of the inventions of many English scientists during 1760 to 1820. The need for inventions arose because of the increase in the demand of products due to widening of markets. It was beyond the capacity of the industry using labour intensive techniques to meet the increasing demand. The inventors in England had set for themselves a task of finding ways and means to remove the hindrances in production faced by the producers and manufacturers. The significant contributions of industrial revolution were as follows: Growth of engineering industries. Rise of chemical industries. Use of power driven machines. Revolution in iron making. Advancement in coal mining. Development of means of transport. Impact of Industrial Revolution on Management Thought Industrial revolution led to several economic consequences, which had a great influence on the development of management thought. These were as follows: Large-scale production: The Industrial revolution made mass production of goods possible by the use of power driven machinery in place of hand tools. Change of form of ownership: Large-scale production increased the size of industrial enterprises. Sole proprietorship concerns expanded into partnership firms, which further developed into joint stock companies. The evolution of joint stock companies was an important outcome of the industrial revolution. Factory System: Cottage system of production was greatly replaced by the factory system. The factories gave direct and indirect employment to a large number of workers. This necessitated the need of managers who could handle large number of workers in factories. Specialization: Industrialization led to a craze for specialization in every field because of development in the means of transport and communication. Different parts of the country (and even different parts of the world) specialized in producing or manufacturing different commodities or parts. It helped in reducing the cost of production. SYSTEMS APPROACH The systems approach is based on the generalization that an organisation is a system and its components are inter-related and inter-dependent. A system is composed of related and dependent elements which, when in interaction, form a unitary whole. Its important feature is that it is composed of a hierarchy of sub- systems. Each system may comprise several sub-systems and, in turn, each sub-system may be further composed of sub-systems. An organisation as a system has the following characteristics: A system is goal-oriented. A system consists of several sub-systems, which are interdependent and inter-related. A system is engaged in processing or transformation of inputs into outputs. An organisation is an open and dynamic system. It has continuous interface with the external environment as it gets inputs from the environment and also supplies its output to the environment. v) A system has a boundary, which separates it from other systems. Features of Systems Approach/Modern Management The systems approach has following features: Open System View of Organisation: The classical theory treated organisation as a closed system. But modem theory considers organisation as an open system, which has continuous interaction with the environment. Adaptive System: Organisation survival and growth in a dynamic environment demands an adaptive system, which can continuously adjust to changing environment. Management tends to bring changes in the sub-systems of the organisation to cope up with the challenges of environmental forces. Interdependent Sub-systems: An organisation is a system consisting of several sub-systems. These sub-systems are functionally interacting and interdependent. They are tied together into an organic whole through goals, authority flows, resources flows and so on. Whole Organisation. The systems approach provides a unified focus to organisational efforts. It gives managers a way of looking at the organisation as a whole that is greater than the sum of its parts. Synergy. The output of a system is always more than the combined output of its parts. This is called the law of synergy. The parts of a system become more productive when they interact with each other than when they act in isolation. Multi-disciplinary. Modem theory of management is enriched by contributions from various disciplines like psychology, sociology, economics, anthropology, mathematics, operations research and so on. Limitations of Systems Approach The systems approach is not free from drawbacks. Its critics have pointed out the following deficiencies: Lack of Unification: The systems approach cannot be considered a unified theory of organisation. A unified theory is one, which can be applied to all types of organizations and present their comprehensive analysis so that various people who want to study organizations from different angles can derive knowledge. The systems approach failed to do so. Abstract Analysis: It indicates that various parts of the organisation are interrelated and this interrelationship is dynamic. But it has failed to spell out the precise relationship between various sub-systems. Limited View of Organisation-Environment Interface: The systems approach has failed to specify the nature of interactions and interdependencies between an organisation and its external environment. Limited Application: The systems approach has limited application. It does not provide action framework applicable to all types of organizations. CONTINGENCY APPROACH Certain quantitative techniques worked in some situations and not in others. The quantitative people could not solve behavioral problems and behavioral people could not overcome operations problems adaptable to quantitative solutions. The latest approach to management, which integrates the various approaches to management, is known as 'contingency’ or ‘situational’ approach. The application of management principles and practices should be contingent upon the existing circumstances. Functional, behavioral, quantitative and systems tools of management should be applied situationally. There are three major parts of the overall conceptual framework for contingency management: (i) environment; (ii) management concepts, principles and techniques and (iii) contingent relationship between first two. Practical Utility of Contingency Approach The utility of contingency approach will be clear from the following features: Contingency approach advocates that there is no single best way of managing applicable in all situations. The best solution is the one that is responsive to the peculiarities of the given situation. Significant differences exist between one situation and others. Therefore, management should deal with different situations in different ways. Contingency approach rejects universality of management concept. It requires the ability to analyze and diagnose a managerial situation correctly. Use of contingency approach is not possible without the ability to match the management knowledge and skills to the demands of the given situation. Management should match or 'fit' its approach to the requirements of the particular situation. To be effective, management policies and practices must respond to environmental changes. Thus, management is entirely situational. Contingency approach is action-oriented as it is directed towards the application of systems concepts and the knowledge gained from other approaches. Social Responsibility of Business Business depends on the society for the needed inputs like money, men and skills, market where products are sold to their buyers. Being so much dependent, business has definite responsibility towards society. Popularly called the social responsibility of business. Social responsibility is understood as the obligation of decision makers to take actions, which protect and improve the welfare of the society as a whole along with their own interests. Every businessman should keep his social obligation in mind before contemplating any action. Arguments for Social Responsibility There are many arguments in support of social responsive actions. More important of them are explained below: Changed Public Expectations of Business: Public expectations from business have changed. It is reasoned that the institution of business exists only because it satisfies the valuable needs of society. Public Image: Each individual firm seeks an enhanced public image so that it may gain more customers, better employees, more responsive money markets and other benefits. Business has the Resources: Business has a vast pool of resources in term of men, talents, functional expertise and money. With these resources business is in a better position to work for social goals. Let Business Try: Many other institutions have failed in handling social problems, so why not turn to business. Many people are frustrated with the failures of other institutions, and in their frustrations, they are turning to business. Moral Responsibility: It is said that the acceptance of corporate social responsibility is the morally correct position. The corporations have a moral responsibility to help solve these problems. Citizenship Argument: Corporations are institutional members of society. If individual members of the society have an obligation to improve society-to leave the world better than they found it-corporations also have this responsibility. Duty of Gratitude: Business units benefit from society. One owes debts of gratitude towards those who benefit us; the corporation has certain debts that it owes to the society. Limitations of Social Responsibility Cost: Social responsibility costs money. Whether a company desires to adopt a village, donate to a college or school, build a hospital, maintain parks or undertake relief operations in times of calamity, it costs money. Efficiency: S.R. affects efficiency adversely. Being obliged to the employees, say a company runs its plant, even if it is incurring losses every year. Its efficiency goes down and its ability to compete is lost. Relevance: Social responsibility is irrelevant. There is one and only one social responsibility of business: To use its resources and energy in activities designed to increase its profits so long it stays within the rules of the game…(and) engages in open and free competition, without deception and trend. Unit 1MPSD 1 Top Management Staffing Controlling Directing Organising Planning Goods and Services Desired by the Customers Men and Women Materials Machines Methods Money Markets Middle Management First-Line Management Strategic Planning & Decision Making Coordination & Planning For Implementation Implementation