Module Time notes for 5th sem ECE 2022 scheme

SUBJECT: MANAGEMENT & ENTREPRENEURSHIP DEVELOPMENT
SUBJECT CODE: BEC501
MODULE – 2
Organizing and Staffing: Organization-Meaning, Characteristics, Process of
Organizing, Principles of Organizing, Span of Management (meaning and importance
only), Departmentalisation, Committees–Meaning, Types of Committees;
Centralization Vs Decentralization of Authority and Responsibility; Staffing-Need and
Importance, Recruitment and Selection Process (Selected topics from Chapters 7, 8 &
11, Text 1).
Directing and Controlling: Meaning and Requirements of Effective Direction, Giving
Orders; Motivation-Nature of Motivation, Motivation Theories (Maslow s
‟ Need-
Hierarchy Theory and Herzberg s
‟ Two Factor Theory); Communication – Meaning,
Importance and Purposes of Communication; Leadership-Meaning, Characteristics,
Behavioural Approach of Leadership; Coordination-Meaning, Types, Techniques of
Coordination; Controlling – Meaning, Need for Control System, Benefits of Control,
Essentials of Effective Control System, Steps in Control Process. (Selected topics from
Chapters 15 to 18 and 9, Text 1).
Text 1:
◻ Principles of Management – P.C Tripathi, P.N Reddy, McGraw Hill
Education, 6th Edition, 2017. ISBN-13:978-93-5260-535-4.

INTRODUCTION
• To organize a business is to provide them personnel,
raw materials, tools etc.
• This is divided into human organization and material
organization.
• Once managers have established objectives, they
must design and develop human organization that is
required to carry out the plans successfully.

CHARACTERISTICS
The every organization has,
• A purpose, goal or goals.
• A clear concept of major duties/ activities required
to achieve the purpose.
• Classification of activities into jobs.
• Establishment of relationships between these jobs
in order to ensure coordination .It is achieved
through division of labor and delegation of
authority.

PROCESS OF ORGANIZING
• Organizing means designing the organization structure. In
performing the organizing function, the manager
differentiates and integrates the activities of his organisation.
It is described in terms of seven-step procedure.
1. Consideration of objectives:
• The first step in organizing is to know the objectives of the
enterprise.
• Objectives determine various activities which need to be
performed.

2. Deciding organizational boundaries:
• After consideration of objectives, next step is to decide what to
do inside and outside the boundaries of organisation.
• This means making manufacture –versus-buy choices for
different goods and services.
3. Grouping of activities into departments:
• Next step is to group all closely related and similar activities
into departments and sections.
• Eg: activities of a manufacturing dept, is grouped into such
departments as production, marketing, financing
and personnel.
• Sometimes even diverse activities may be deemed closely
related and grouped in one department.

4. Deciding which department will be key department:
• Key departments are those which are essential for
the
fulfillment of goals.
• Such key departments demand key attention.
5. Determining levels at which various
types of decisions are to be made:
• After deciding various departments, level at which
various major and minor decisions are to be made must be
determined.
• Each firm must decide for itself as how much decentralization
of authority and responsibility it should have.

6. Determining the span of management:
• Next step in designing a structure is to determine the
number of subordinates should report directly to each
executive.
• If span is narrower, structure will be taller with several
levels of management.
7. Setting up a co-ordination mechanism:
• A direct consequence of departmentalization is the need to
co- ordinate the independent activities of the members of the
organisation.
• Effective integration is as important as useful differentiation.

PRINCIPLES OF ORGANIZING
• “If there is to be a systematic approach to the
formation of organisation structure, there
ought to be a body of accepted principles”-E.F.L
Brech. The 16 principles are as follows
• Objectives:-
• Objectives influence the organizationstructure
hence objectives must be clearly defined.
• Specialization:-
• Effective organisation must provide specialization.
• The activities of the enterprise should be grouped
according to functions and assigned to

• Span of control;-
• There is a limit to the number of persons that can be
supervised effectively by one boss .Therefore , span of
control should be minimum.
• This means, an executive should be asked to supervise a
reasonable number of subordinates only say six.
• Management by exception principle:-
• As the executives have limited time, only exceptionally
complex problems should be referred to them and
routine matters should be dealt with by the
subordinates at lower levels.
• Scalar principle:-
• This principle is sometimes known as “chain of command”.
• The line of authority from chief executive at the top to the
first-line supervisor at the bottom must be clearly defined.

• Unity of command:-
• Each subordinate
should have only one superior whose
command he has to obey.
• Multiple subordination must be avoided, for it
causes uneasiness . disorder etc…
• Delegation :-
• Proper authority should be delegated at the lower levels
of organization also.
• Each manager should have enough authority to accomplish the
task assigned to him.
• Responsibility:-
• The superior should be held responsible for the acts of
his subordinates.
• No superior should be allowed to avoid responsibility
by delegating authority to his subordinates.

• Authority:-
• The authority is the tool by which a manager is able to
accomplish the desired objective.
• Therefore ,authority of each manager must be clearly defined.
• Efficiency:-
• The organisation structure should enable the enterprise to
function efficiently and accomplish its objectives with
the lowest possible cost.
• Simplicity:-
• The organisation structure should be simple as possible and
organisation levels should be minimum.
• Flexibility:-
• The organisation should be adaptable to changing
circumstances and permit connections in existing
structure without disrupting basic design.

• Balance:-
• There should be balance in the size of various departments, between
centralization and decentralization , and among all types of
factors such as human , technical and financial.
• Unity of direction:-
• There should be one objective and one plan for a group of activities
having the same objective.
• Personal ability:-
• As people constitute an organisation, there is a need for proper
selection, placement and training of staff.
• Organisation structure must ensure optimum use of human resources
and encourage management development Programmes.
• Acceptability:-
• The structure of the organisation should be acceptable to the people
who constitute it If people oppose structure: Two things
generally happen. It is modified gradually by people.
• It is used ineffectively.

SPAN OF MANAGEMENT (MEANING AND IMPORTANCE
ONLY)
• Span of management is also referred as span of control, span of
supervision, span of authority & span of Determining
appropriate span of management is important for two reasons.
• First, span management affects be efficient utilization of managers
& effective performance of their subordinates.
• Too wide a span may mean that manages are overstraining
themselves & that their sub – ordinates are receiving too
little guidance or control. Too narrow a span of management
means that managers are underlined & their subordinates are over
controlled.
• Second, there is a relationship between span of management &
organization structure. A narrow spam of management results
in a “for” organization with many levels of supervisions
between top management and lowest organization levels. This
creates more communication and cost problem.

DEPARTMENTALISATION
• The horizontal differentiation of tasks or activities in to
discrete segments is called “departmentalization” There
are several bases for departmentalization, most bases
conveniently follow in to one of two categories.
Process departmentalization :- There are two widely used &
internally oriented arrangements for dividing work by process.
• Business or organizational function :
• Most widely used base for departmentalization is business or
organizational function.
• Each major function of the enterprise is grouped in to a
department for ex : production , finance , and
marketing department in a manufacturing company .

Advantages: -
• It is a simple form of grouping activities where manufacturer
render only limited number of service.
• It promotes economics of scale.
Drawbacks:-
• It fosters (provide case) sub goal loyalties. Each manager
thinks only in terms of his own departmental goals does
not think in terms of the company as the whole.
• It does not offer training for overall development of a
manager. Manager gets training only regarding his
particular department.

Technology:-
• Departmentalisation is done here on the basis of grouping of
activities in the technologies involved in the manufacture
of a product. For ex:- concern ,engage in the
production of vegetable oil must have specific
department for crushing , refining and finishing .
Advantages :-
• It help the use of heavy and costly equipment in an efficient
manner.
• Each department is involved in doing a special type of work.
This increases efficiency.
Drawbacks:
• Here workers feel less responsible for whole product.
• It is difficult to compare the performance
of
different
technology based departments.

Products
• Here each major product , a self contained department
is created.
• Product departmentalisation is the logical pattern to
follow product requires raw materials manufacturing
when each
technology
Advantages :
• This form leads continuous & undivided attention to
the product.
• Work is more clearly evaluated.
Drawbacks:
• Duplication of staff & facilities .Extra expenditure is
(encounter)incurred in maintaining a sales force each
product line.

Customers
• An enterprise may be divided into number of departments on
the basis of the customers that it services. Ex:-
Educational Institutions may have separate departments
for day , evening & correspondence courses.
Advantages : - Ensures attention to major customer groups.
of resources &
Disadvantage :- Result in
underutilization facilities in some
departments.
Regions or Territory or Location
• When several production or marketing units
of
organization
are geographically dispersed in various locations, its
logical to departmentalize those on the geographical basis.

Advantages :-
• It maturates each regional head to achieve high performance.
• It provides each regional head an opportunity to adopt to his
local situation & customer need with speed & accuracy .
Drawbacks:-
• It gives rise to duplication of various activities.
Division
• Large , multi product companies segment themselves into
several independent profit centers , these units are
called division
• Each division is smaller than whole company & problems can
be managed easily.
Time
• There departmentalization is done on the basis of timing their
performance.

COMMITTEES–MEANING
A committee is a body of persons appointed or
elected to meet on an organized basis for the
consideration of matters brought before it. “A
committee is a group of persons performing a group
task with the object of solving certain problems”.
The area of operation of a committee is
determined by its constitution. A committee may
formulate plans, review the performance of
certain units or may only have the power
to make recommendation.

STAFFING-NEED AND IMPORTANCE
• It is important to have a good organization structure but it is
even more important to fill the jobs with the right people.
• There are a number of advantages of proper &
efficient staffing. There are as under:
• It helps in discovering talented and competent workers
and developing them to move up the corporate ladder.
• It ensures greater production by putting the right man in right
job.
• It helps to avoid a sudden disruption of an
enterprise s
‟ production run by indicating shortages of
personnel, if any, in advance.

RECRUITMENT AND SELECTION PROCESS
Recruitment is defined as the process of identifying the sources
for prospective candidates and to stimulate them to apply for the
jobs. Selection is a process in which manager compares
candidates qualifications with the requirements of a job &
eliminates all those who do not stand up to this comparison.
STEPS IN THE SELECTION PROCEDURE:
There is no standard procedure; the following is an example of a
popular sequence of steps:
• 1. Application Blank
• 2. Initial Interview of the Candidate
• 3. Employment Tests
• 4. Checking References
• 5. Physical or Medical Examination
• 6. Final Interview

1. APPLICATION BLANK:
• Filling of the “application blank” by the candidate is the first
step in the process of selection. In this form, applicant
gives relevant personal data such as his qualification,
specialization, experience, firms in which he has worked etc.
2. INITIAL INTERVIEW OF THE CANDIDATE:
• Those who are selected for interview on the basis
of blank are called for initial
particulars in the
application interview by the
company.
3. EMPLOYMENT TESTS:
• To test the ability of the candidate, some tests are used in the
selection procedure. There are several types of tests that are
used in selection procedure.

The more commonly used are:
• APTITUDE TEST: This test measures the applicant s
‟
capacity to learn the skill required for a job. His test
helps in finding how good he will perform after the
training.
• INTEREST TEST: This is used to find out the type of work
in which the candidate has an interest.
• INTELLIGENCE TEST: This test is used to find out the
candidate s
‟ intelligence. By using this test, the
candidate s
‟ mental alertness, reasoning ability, power of
understanding etc are judged.
• PERFORMANCE OR JOB-SPECIFIC TEST: This test is
used to measure the candidate s
‟ level of knowledge & skill in
the particular job, in which he will be appointed.
• PERSONALITY TEST: Personality test is used to measure
those characteristics of a candidate which constitute
his personalities:-Self confidence, Judgment etc.

4. CHECKING REFERENCES:
• If the candidate has been found satisfactory at the interview &
if his performance is good in employment test, them
employer would like to get some important personal
details about the candidate, such as character, past
history, background etc. Verified from the people
mentioned in the application.
5. PHYSICAL OR MEDICAL EXAMINATION:
• The objectives of this examination are: To check the physical
fitness of the applicant for the job applied for. To
prevent communicate diseases entering the business
concern.
6. FINAL INTERVIEW:
• This is conducted for those who are ultimately selected for
employment. In this interview, the selected candidates
are given an idea about their future prospects
within the organization.

MEANING
• “Direction is the interpersonal aspect of managing by which
subordinates are led to understand and contribute effectively
and efficiently to the attainment of enterprise objectives.”
REQUIREMENTS OF EFFECTIVE DIRECTION
• Here are some important principles or requirements of
effective direction
Harmony of Objectives:
• Manager must direct the subordinates in such a way that the
precise their personal goals to be in harmony with enterprise
objectives.
Unity of Command:
• This principle implies that the subordinates should receive orders
and instructions from one superior only.
• Manager alone in his best position can select whichever

Direct Supervision:
• Every supervisor must maintain face to face direct contact with his
subordinated. Direct supervision boosts the moral of
employees, increases their loyalty and provides them with
immediate feedback on how well they are doing.
Efficient Communication:
• Communication is an instrument of direction. It is through
communication that the superior gives orders, allocates
jobs, communication,
explain duties and ensures performance.
In comprehension is more important
than content.
Follow Through:
• Direction is not telling the subordinates what they should do but
also seeing that they do it in the desired way.
• The manager should follow through the whole performance of his
subordinates and help them in their act, show their deficiency
and do revise their direction

GIVING ORDERS
• The order is a device employed by a line manager in directing his
immediate subordinates to start an activity, stop it and modify it.
• Mary Parker Follett principles in giving orders:
• The attitude should be prepared in advance for carrying out an order.
People will obey an order if only it appeals to their habit
patterns. Face to face suggestions are preferable to long
distance orders.
Force
• Formula used in „Force‟ is: “Do what I say or else...” Employee will
be published if he does not follow the orders.
Paternalism
• Formula followed in „Paternalism‟ is: “Do what I say because I am
good to you”. The result here is that the employees develop a
feeling of gratitude and indebtness toward the manager
which they do not like. Paternalistic manager provides rewards

Bargain
• The formula followed in „Bargain‟ is: “You do as I say in
certain respects and I do as you say in certain other respects”. The
result of this method is that the manager s
‟ command is gradually
reduced.
Harmony of Objectives
• The formula followed in „Harmony of Objectives‟ is: “If we
perform together, each will achieve his goal.”
2.15 MOTIVATION-NATURE OF MOTIVATION
• Motivation ("to move"), it is the managers ability to move other
people in the right direction day after day. Motivation concerns those
dynamic processes which produce a goal-directed behavior. What
controls human behavior & gives direction to it is not the goal or he
incentive but the need. The Goal which is the external to the
individual only provides him with opportunity for satisfying his
internal needs.
NATURE OF MOTIVATION
• The following points reveal the complexities involved in

Individuals differ in their motives:
• The goals to which individuals aspire differ and also their motives
differ. There is no single motive that determines how all workers will
react to the same job & therefore, there can be no single strategy that
will keep motivation & productivity high to deal with human diversity.
Sometimes the individual himself is unaware of his motive:
• The presence of unconscious motive explains why man cannot
verbalize his motive to attain certain goals or the even tell what his goals
are.
Motive change:
• Hierarchy of motives of each individual called "structure" is not
fixed. It changes from time to time. An individual's primary motive
today may not be primary tomorrow; even he may continue to behave
in the same way.
Motives are expressed differently:
• One individual with a strong security motive may play it safe, &
avoids taking responsibility for fear of failing & being fired. Another
individual with the same security motive may seek out responsibility

Motives are complex:
• It s
‟ different to explain & predict the behavior of workers. The
Introduction of a favorable motivational device may not achieve
the desired ends, if it brings opposing motives into play.
Multiple motives make the choice of goals difficult for on
individual:
• There can be multiple operate simultaneously to incense an
individual behavior. Three types of motivational conflicts
which make the person's choice of goal conflicts:-
• Approach-approach conflict-> where the person desires to do two
things which he likes equally. Well, but it is possible to do only one.
• Avoidance-Avoidance conflict-> where the person is forced to
choose between two alternatives, both is considered
equally undesirable by him.
• Approach-avoidance-> where the persons is attracted to the positive
characteristics of his choice, bit wants to avoid it
negative characteristics.

MOTIVATION THEORIES (MASLOW’S NEED- HIERARCHY
THEORY AND HERZBERG’S TWO FACTOR THEORY)
It is classified under three broad heads:
• Content theories, Process theories, Rein enforcement theories
• Content theories tell us what motivates an individual. They throw
light on various needs & incentives which cause behavior.
Some important Content theories under this:-
• Maslow's need hierarchy theory
• Herzberg's two-factor theory
MASLOW’S NEED- HIERARCHY THEORY
• At anygiven time, some of these needs are satisfied &
owneris need is the starting point in the
unsatisfied. An
unsatisfied motivation
process.
Physiological Needs:-
• These are the basic needs for satisfying life itself. Such as
food, water, air etc. To survive these needs must be partially

secure:- This include protection arbitrary lay-off &
Security Needs:-
• Economically
disaster.
• Psychologically secure:- It relates to a man's confidence that he will
be able to deal with problem in future.
Social needs:-
• Social needs are the needs to associate with other people & be
accepted by them; to love & be loved. man finds satisfaction in
association with others & he feels real deprivation when it is not
possible.
Egoistic or esteem needs:-
• These are the needs, which relate to respect & prestige. A need
for dominance is thought of the one of egoistic needs. Self-esteem:- Is
an individual's need to feel inside himself that he is worthy. Esteem:- He
has also need that others think he is worthy.
Self-fulfillment needs:-
• These are the needs for realizing one's potential. It include the need
for realizing one's capabilities to fullest-for becoming what one is

COMMUNICATION – MEANING
According to new man and summer, “communication is an exchange of
facts, ideas, opinion or emotion by two or more persons”. If the
information is not understood by the receiver in the same meaning in
which its sender wants him to understand it, the purpose of
COMMUNICATION
communication is defeated.
IMPORTANCE AND PURPOSES OF
Importance of communication
The communication is important because of the following:
1) Every aspect of managers job may it be planning, organising,
staffing, directing and controlling involves communication
researchers have shown that about 75% of managers time is spent in
communication.
2) The better the communication, the more efficient the work
performance.

Purpose of communication
Some important purposes which communication serves,
• Communication is needed in the recruitment process to
persuade potential employees of the merits of working for
the enterprise selected people are told about the
companies organisation structure, policies etc .
• Communication is needed in the area of orientation to make
people acquainted with peers, superiors and with
company s
‟ rules and regulations.
• Communication is needed to teach employees about
personal safety on the job.
• Communication is of vital important in projecting the image
of an enterprise in the society.

LEADERSHIP-MEANING
Leadership is the ability to persuade others to seek defined
objectives enthusiastically.
CHARACTERISTICS OF LEADERSHIP
Some important characteristics are:
• Leadership implies the existence of followers.
• Leadership involves a community of interest between
the leader of his followers
authority
• Leadership involves an unequal distribution
of
among leaders and group members.
BEHAVIOURAL APPROACH OF LEADERSHIP
• Autocratic leadership
• Democratic leadership
• Free-rein

COORDINATION-MEANING
“Coordination deals with the task of blending efforts in order to
ensure successful attainment of an objective. It is accomplished
by means of planning, organizing directing and controlling”.
TYPES
• Internal Coordination
• External Coordination
• Vertical Coordination
• Horizontal Coordination
• Procedural Coordination

TECHNIQUES OF COORDINATION
1. Clearly Defined Objectives
2. Effective Chain of Command
3. Precise and Comprehensive Programmes and Policies
4. Planning
5. Cooperation
6. Liaison of Officers/Departments
7. Induction
8. Incentives
9. Workflow

CONTROLLING – MEANING
“Control is checking current performance against predetermined
standards contained in the plans, with the view to ensuring ad
equate progress and satisfactory performance”.
NEED FOR CONTROL SYSTEM
To measure Progress.
• To Uncover Deviations such as Change, Complexity, Mistakes and
Delegation
• To indicate corrective action
• To transmit corrective action to the operation.

ESSENTIALS OF EFFECTIVE CONTROL SYSTEM
(1) Suitable
(2) Timely and forward looking
(3) Objective and comprehensible
(4) Flexible
(5) Economical
(6) Control by exceptions
(7) Prescriptive and operational
(8) Acceptable to organization members
(9) Motivation

STEPS IN CONTROL PROCESS
1. Establishment of standards:
2. Measuring and comparing actual performance with standards
3. Taking corrective action
BENEFITS OF CONTROL
• Increase Productivity
• Reduces defects and mistakes
• Helps meet deadline
• Facilitates Communication
• Improves safety

Module Time notes for 5th sem ECE 2022 scheme

Module Time notes for 5th sem ECE 2022 scheme

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