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⚙️ KTU MFE Module 2 Notes: The Management Process & Organization

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Published in: B.Tech Tuition | Electrical | Electronics
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This presentation offers important and crisp notes on Module 2 of Management for Engineers (MFE), directly aligned with the KTU 2019 scheme syllabus. ​Module 2 covers the core functions of management, detailing the entire Management Process from start to finish. Key areas include a deep dive into Planning (types, mission, goals, strategy), Organizing (principles, delegation, span of control, and various organization structures ), Directing (Leadership, Motivation, and Communication), and Controlling. These notes are an essential, quick-reference guide for engineering students to master the practical tools and principles necessary for effective organization and process management as per the KTU curriculum.

Krishnanjali / Palakkad

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  1. Module Il Meaning of Management Process
  2. Planning Determinant courses of action for achieving a specific objectives Simply planning= How, When, Where, what, by whom
  3. PLANNING CHARACTERISTICS * Goal oriented: prepare goal before planning & work for its accomplishment * Continuous & cyclical activity: planning is for specific period but it is used throughout the life of organization * Choice- based Decision activity: select best from the alternatives evolved
  4. of management (Top level- strategic, Middle level- administrative, Lower level-operational) * Coordination- coordinates what, who, how, where, why etc... * Limiting factor: that is money, manpower * Flexibility : should be adaptable to any environment
  5. IMPORTANCE OF PLANNING * Facilitate management by objectives: * Give a sense of direction: * Improved performance: * Dealing uncertainty: unpredictable incidence * Economy in operation: reduces all costs * Better coordination: * Basis for controlling: * Improves employees morals:
  6. TYPES OF PLANS 1. Goals & Objectives 2. Based on scope: * Strategic plan- plan for whole organization * Tactical plan- implementation of strategic plan * Operational plan- it is by all employees fulfill their work 3. Based on time * Long term- usually strategic * Intermediate- 1-2 years, related to intermediate * Short term- less than I year
  7. (i) Single use plans- one time occurrence * Programmes- for specific programme * Budgets- different for each year (ii) Standing plans- revised periodically * Policy- activities followed * Procedure- strategy for action * Rules & regulations- specific required actions
  8. * Specific plan- apt for organizations that enjoy stable external & internal environment * Directional plan- great flexibility. Suited for uncertainty 6. Contingency plan- these are required for emergency conditions. If the
  9. TOP focus o long term goals, staes mission & goals, carried by top level management, made for 2 to 5 years 2. Middle carried by middle managers, how the top level will be attained, duration is Ito 2 years 3. Lower by Head of dept., are operational plans, member are staffs & employees, duration less
  10. 1. Being awareness of opportunities 2. Establishing objectives- define the goals& objectives 3. Developing premises- factors influencing (internal & external) 4. Identify alternative courses of actions- possible ways to achieve goals 5. Evaluating alternatives- cost and return of all alternatives 6. Selecting the best- from any one from all alternatives 7. Implementing the best action- without any delay
  11. ESSENTIALS OF PLANNING 1. Simple- should be simple to all employees 2. Clear & well defined objectives- should state clearly 3. Well balanced & flexible- flexible to all situations 4. Time bound- should state clear time span 5. Participation of subordinates- ensure the participation of all 6. Economical- should reduce the all costs 7. Human oriented- never avoid the humanity 8. Practical- good practical quality is needed 9. Unity for all- necessary to keep all in together
  12. SWOT ANALYSIS trengths "its all resources, people, products, otentials, capacities, practices, Iprograms etc... Strength of people includes their knowledge, skills, bilities etc..." Opportunities 'positive situations & factors related to business which are external, usually organization formulate/ change, new/existing goals. New market opportunities, Govt policies, change in population structure, tastes etc... " eakness " these are the internal factors which obstacles the performs of the organization. Resource constraints, uncooperative nature of employees, high absenteeism, lack of skills, lack of effective control Threats "these are the external factors which have control on organization. The organization should be aware of these factors to change their plans. Generally these are uncertain. example- political instability, actions of rival firms, climate conditions etc... "
  13. Organizing 'process of grouping the various activities to be done & assigning duties & responsibilities to people in group" Nature of Organizing 1. Goal oriented activity - work for common purpose 2. Differentiating activity- assigning activity to various sections 3. Grouping activity - in to various dept. based on activity 4. Assigning activity- assigning activities for each groups 5. Integrating activity - proper coordination 6. Dynamic activity — continuous
  14. Organizing- principles Unity of objectives- a firm should have a clearly defined objectives. Should follow the structure which is most suitable for attaining these objectives. Organizational efficiency- the structure of organization should be planned which help to attaining the goals with lowest possible cost and optimal usage of resources.
  15. Span of control- it refers the number of persons that a manager can direct or control. Provide optimum number of employees under a manager. Scalar chain- the line of authority should be hierarchical and authority flow from top to bottom. It will keep a good way of connection between superiors and subordinates Unity of command- one subordinate one superior relationship. This will avoid communication gap and prompt responses.
  16. Absoluteness of responsibility- the responsibility cannot be delegated. It means authority can be delegated not responsibility of the superior. Parity_ of authority and responsibility- manager should keep the balance between authority and responsibility. It means if a subordinate is given a responsibility to perform a task, then at the same time he should be given enough authority. Flexibility-the organization has the sufficient ability to change according to the internal and external environments
  17. Formal and informal Organization Formal- refers to the structure of jobs and positions with clearly defined functions and relationships as prescribed by the top management. This type of organization is built by the management to realize objectives of an enterprise and is bound by rules, systems and procedures. Everybody is assigned a certain responsibility for the performance of the given task and given the required amount of authority for carrying it out. In a formal organization, the position, authority, responsibility and accountability of each level are clearly defined.
  18. Informal- it is an organization which is not established by any formal authority, but arises from the personal and social relations of the people. Informal organization refers to the relationship between people in the organization based on personal attitudes, emotions, likes, dislikes etc... these groups are not pre-planned, but they decelop automatically within the organization according to this environment. It has no well defined task. It provide social satisfaction.
  19. Organizational structures. "an organizational structure means the systematic arrangement oif people working for the organization and their relationship between positions" features of good organizational structure are; unity of objectives, clear line of authority and responsibility, division of work, span of control, unity of command etc.
  20. Forms of organization 1. Line organization " In line organization, based on similarity of activities, different departments are created. Each department is placed under one department head. He/she has full authority to control all activities of that department. In this type of organization authority flows from top to bottom along a vertical line". The authority high in top and less in bottom.
  21. Sales Manager Salesman Foreman 1 Line Organization General Manager Production Manager Foreman 2 Workers Accounts Manager Staff Foreman 3 Workers
  22. Line organization Advantages It is simple to understand Well discipline will maintained due to single boss It facilitate prompt decision making due to well defined authority Effective coordination of activities Authority and responsibility are well defined. No scope of shifting authority and responsibility Flexible and able to extent or contract Disadvantages With growth superiors too overloaded with work Lack of specialized skills of experts Authorities are mostly concentrated on top level Decision making was too slow Chance for more communication error
  23. 2. Line and staff organization "as the organization grows manager will have to do variety of functions. The manager may not have expertise in all the fields he has to work. This necessitated the employment of special executives to assist line executives and they are known as staff as they are recruited to perform specialized function. In line and staff organization the manger in the organization receives advices from specialists. The line executives have the supervisory authority and control over the work of their subordinates."
  24. Secretary Accounts Officer Personal Manager Foreman 1 Workers Director General Manager Work Manager Foreman 2 Workers Line and staff Legal Advisor Sales Manager Purchase Manager Foreman 3 Workers
  25. Advantages It is based upon planned organization It brings expert knowledge on management and operating problems Staff specialists help the line managers in taking better decisions Disadvantages Product cost will increase due to high salaries Chance for confusion due to well defined duties and responsibilities of superiors It has lack of discipline
  26. 3. Functional organization It is modified version of line organization. Under this the whole task of the organization is divided into specialized functions and each functions is performed by a specialist in charge of a functional department and specialist operates with considerable independence. Production, marketing, finance and human resource are the groupings in an functional structure. Staffs are grouped and located by specialty into functional departments each headed by functional manager. Each member of staff has one boss.
  27. unctional Manager I Staff 1 Staff 2 staff 3 General Manager Functional Manager 2 staff 1 Staff 2 staff 3 Functional Organization unctional Manager 3 staff 1 staff 2 staff 3
  28. Advantages Every functionary in charge is an expert in his area and can help the subordinates in better performance in his area It helps mass production by standardization and specialization Disadvantages It is suitable for large scale operations where expert knowledge is a must Cooperation with other groups if not maintained will result in failure The functional structure gives managers experience in only one fields- their own
  29. 4.Proiect Organization "Project team structure consists of an autonomous project team, existing independently of the rest of the organization. The project team is assembled for a specific project under the action of the project manager. The team is thus temporary and will be dispersed when its project is completed. Staffs are grouped and located based on the nature of project and a project team is headed by a project manager. All personnel on the project are under the direct authority of the project manager for the duration of the project."
  30. Project Manager A Marketing Production Finance General Manager Project Manager B Marketing Production Finance Project Organization Project Manager C Marketing Production R&D Finance
  31. Advantages This structure makes product development time shorter It has lower program costs Greater flexibility More specialization Greater the efficiency Disadvantages Difficult to manage Too much shifting of personnel from project to project Job insecurity — termination after the completion of project No permanent structure
  32. Responsibilitv It is the work or task assigned to a position. It is the assignment of duties by the executive to the subordinate, which subordinate is expected to perform u horit t implies right to ommand and ower to act. It is e right to give orders to the subordinates, right to make decisions and right to control subordinates ele ation he sharing of ower or uthority with nother for the performance of certain tasks and duties. It is temporary haring of power
  33. Directing. "It can be defined as the process of guiding the subordinates towards a common goal of the organizations." Directing involves motivating guiding and supervising subordinates towards company's objectives. Directing thus includes the following. 1. Giving instructions to subordinates, 2. Guiding subordinates to do their work and issuing orders 3. Supervising the subordinates to make certain that the work done by them is as per the plans established
  34. Principles of effective planning. 1. Harmony of objectives- The effectiveness of directing depends on the degree to which the individual objectives of the employees are harmonized with the organizational objectives. 2. Direct supervision- The principles insists that the managers should maintain direct and constant with their employees to create a sense of security and oneness among them. Direct supervision will enable managers to detect dissatisfaction and grievances among employees early and solve them promptly.
  35. 3. Unity of command- One person should receive orders from only one superior, in oreder one person should be accountable to only one boss unity of command enables managers to develop supportive relationship 4. Maximum individual contribution- There should be maximum contribution from each organizational member towards goal fulfillment .
  36. 5. Flow of information- The communication system must be good enough to permit free flow of information between the superiors and the subordinates. Two way communication- chance to express the opinions of subordinates 6. Leadership- Manager should possess the all the qualities of a leader. It will help to inspire, motivate, control the subordinate.
  37. 7. Scalar Chain- Hierarchical arrangement of employees from top to bottom. Clearly define the authority of all employees. 8. Follow up- in order to make good decision manager shoul continuously direct, motivate, guide the subordinate.
  38. Leadership It is an important function of management. "It is the process of influencing people so that they work willingly and enthusiastically towards the achievement of organizational, department and individual goals."
  39. Leadership- Characteristics 1. Goal-based activity- influence the people towards the accomplishment of common goals. 2. Power-based activity- the power of the leader ts position has a definite influence on the employees 3. Universally- leadership is needed at all levels of an organization means top to bottom 4. Influential process- influence the employees makes more easy for goal accomplishment 5. Situational variables- different leadership styles will be appropriate under different circumstances
  40. Leadership- Styles/ Types 1. Autocratic leadership- The leader has the supreme power- leader makes decision and announce it- others follow it- no role of subordinate in decision making- fast decision making- less capabilities of subordinates 2. Democratic Leadership- Under this the subordinates has greater role in decision making- it promotes the participation of subordinates- it creates morale in subordinate- slow decision making- greater the communication
  41. 3. Free-rein Leadership- Complete freedom to subordinates- superiors frames the policy and given full freedom to the subordinate to implement- it creates job satisfaction- actually there is no leadership at all. 4. Transactional- It guide followers in the direction of established goals by clarifying role and task requirement- no influences of subordinates in decisions. 5. Transformational- It encourages followers to go beyond the expected day-to-day tasks- it encourages the creative of employees in performing tasks.
  42. Motivation "It is a general term applying to the entire class of drive, desires, need, wishes and similar forces" Motivating "It is the process of stimulating people to take the desired results or course of action "
  43. Motivation- factors affecting 1. Bonus & Incentives 2. Leadership role at workplace 3. Achievement- personal satisfaction 4. Recognition- for employees 5. Possibility of Growth- promotion 6. Work itself 7. Responsibility- associated with job 8. Workplace culture
  44. Kinds of Motivation 1. Positive motivation- It means instigating the workers by providing them facilities or by giving some prize so that he may do good work or more work than he was done previously and with less supervision. Eg; giving more wages of work, promotion 2. Negative motivation- In this type labor is prompted to work by threatening or by punishment. There are two kinds of negative motivation viz., financial and non-financial. In financial punishment a cut is made in the wages of labor. Non-financial punishment means giving less facility such as reduction in leave etc
  45. Controlling "It is a process of setting standards, measuring actual performance and taking corrective actions" Importance 1. Basis for future action- helps in taking corrective action in future. 2. Facilitates decision making- helps to aware the problems and can take better decision 3. Ensuring standards- it can help to regulate the behavior and actions of employees
  46. 4. Ensuring utilization of resources- helps to effective and optimal utilization of resources and can detect under performance of employees 5. Facilitates coordination- controlling checks performance which is only attained through coordination 6. Improving Quality- helps to improve the organizing and planning process 7. Responding to the environmental changes- it helps to flexible in responding to the environmental changes rapidly
  47. Basic Control Process 1. Establishing Standards- establish the objectives and goals of the organization- clearly define all these- establish the planning process with effective controlling process- establish the each tasks to achieve the goal. 2. Measuring the actual performance- identify the task performed by the organization- use the quantitative methods for measuring the actual performance.
  48. 3. Compare the actual performance with standards- here compare the actual performance with the planned performance of the organization- identify the variations of these two. 4. Taking remedial actions- here identify the reasons for the variations of the actual and standard performance- take corrective actions for the deviation- (if no variations continue the work as per the plan)
  49. Establishment of standards Taking remedial actions Measuring actual performance with standards Comparing actual performance with standards Basic Control Process- chart
  50. Types of control 1. Feedback control- Feedback refers to the process of adjusting future actions on the basis of information about past performance. "When control is exercised on the results of the work activity is called feedback control". This control is also called output control, corrective control or post action control.
  51. Desired Performance Implementation of corrections Actual Performance Program of corrective action Measurement of actual Performance Analysis of Causes of Deviations Comparison of actual performance against standard erformance Identification of Deviations Feedback control- Chart
  52. 2. Concurrent control- It is exercised when the work activity is progress. It is also called real time control or process control. This control concentrates primarily on the present situation. When the performance standards are not met, manager can stop the work in progress and can take corrective actions. 3. Feed forward control- When managers implement control even before the actual activity begins. The main aim of this method to solve the problems before they occur. It is mainly focuses on human resources, physical resources, financial resources. It prevent the slow down factors of planning process
  53. Span of control "It is the number of subordinates which are directly under their superiors" factors affecting span of management 1. Nature of work- is it hard span will be less 2. Capacity of person involved 3. Time 4. Environmental changes of organization
  54. Wide Span of Control it is one which a manager can supervise and control effectively a large group of persons at one time. It has less cost of supervision, suitable for repetitive job, requires higher level of managerial skills, fast decision making, no communication gap. Employee mploye mploye Manager mploye Employee Employee Employee Employee
  55. Narrow Span of Control "The work and authority is divided amomgst many subordinates and a manager doesn't supervises and control a very big group of people under him" It has cost of supervision is high, slow decision making, communication gap will occur, less controlling power is needed etc... Employee Manager Employee Employee Emp loyee loyee Employee Employee Employee

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