26-11-2012, 06:35 PM
MANAGEMENT DECISION MAKING
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Management
Meaning
Management is the art of getting things done by a group of people with the effectiveutilization of available resources. an individual cannot be treated as a managing body runningany organization. a minimum of two persons are essential to form a management .thesepersons perform the functions in order to achieve the objectives of an organization.
Definition
According to Terry, “Management is not people ;it is an activity like walking ,reading,swimming or running. People who perform management can be designated as managers,members of management or executives leaders.”
Features
The following are some of the features or characteristics of management:
1. Art As Well As Science
Management is both an art as well as science. It is an art in the sense of possessing ofmanaging skill by a person. In another sense, management is the science because ofdeveloping certain principles or laws which are applicable in a place where group of activitiesare co-ordinated.
2. Management Is An Activity
Management is the process of activity relating to the effective utilization of availableresources for production. The term ‘resources’ includes men, money, material and machine inthe organisation.
3. Management Is AContinous Process
The process of management consists of planning, organising, directing controlling theresources. The resources (men and money) of an organisation should be used to the bestadvantages of the organisation and the objectives to be achieved. The management functionof any one alone cannot produce any results in the absence of any other basic functions ofmanagement. So, management is a continuous process.
4. Organised Activity
Management is a group of organised activities. A group is found not only in a public limitedcompany but also in an ordinary club. All the organisations have their own objectives. Theseobjectives will be achieved only by a group of persons. These persons activities should beorganised in a systematic way to achieve the objectives. The objectives cannot be achievedwithout any organised activities.
5. Decision Making
There are number of decisions taken by the management everyday. Decision making arisesonly when there is availability of alternative courses of action. If there is only one course ofaction ,need for decision –making does not arise. The success or failure of an organization depends upon the degree of right decision taken by the manager.
6. Universal Application
The principles and practices of management are applicable not to any particular industryalone but applicable to every type of industry. The practice of management is different fromone organisation to another according to their nature.
7. Management As A Class Or A Team
A class may be defined as a group of people having homogeneous characteristics to achievecommon objectives. Engineers and doctors are grouped as a class in a society. Each andevery doctor has the same objectives in life. Just like engineers and doctors, the managementpeople have got similar options aspirations to achieve corporate objectives.
8. Direction And Control
A manager can direct his sub-ordinates in the performance of a work and control themwhenever necessary. If the available resources are not utilised properly by him, he fails toachieve the corporate objectives in the absence of direction and control.
Functions Of Management
The important functions of management are briefly discussed below;
1. Planning
Planning is the primary function of management. Nothing can be performed withoutplanning. Writing a. book starts with planning. In short , planning refers to deciding inadvance that which will be done in the near future. In the business world, the organisationsshould achieve the objectives. In order to achieve the objectives what it is to be done ,whenit is to be done ,how it is to be done, and by whom it is to be done .
2. Organising
Organising is the distribution of work in group wise or section wise for effectiveperformance. Organisation provides all facilities which are necessary to perform the work.The business developed, the organisation takes the responsibility to create some moredepartments under different managers. Organisation is of two kinds;
1.organisation of humanfactor,
2.organisation of material factor .
3. Staffing
Staffing function comprises the activities of selection and placement of competent personnel.In other words, staffing refers to placement of right persons in the right job. Staffing includesselection of right persons, training to those needy persons, promotion of best persons,retirement of old persons, performance appraisal of all the personnel, and adequateremuneration of personnel. The success of any enterprise depends upon the successfulperformance of staffing function.
4. Directing
The actual performance of a work starts with the function of direction. Planning, organisingand staffing functions are concerned with the preliminary work for the achievement oforganisationalobjectives. But the direction deals with making the workers learn techniques toperform the jobs assigned to them. Direction includes guidance, ,supervision and motivation of employees.
5.Co-Ordinating
All the activities are divided group wise or section wise under organising function .now, suchgrouped activities are coordinated towards the accomplishment of objectives of anorganisation .the difficulty of coordination depends upon the size of organisation .thedifficulty of coordination is increased with the increasing of the size of the organisation.
6. Motivating
The goals are achieved by motivation .motivation includes increasing the speed ofperformance of a work and developing a willingness on the part of workers. this is done by anresourceful leader .the workers expect favourable climate conditions to work,,,, fairtreatment,, monetary or non monetary incentive ,effective communication and gentleapproach.
7. Controlling
Controlling functions ensures that the achieved objectives conform to pre planned objectives .necessary corrective action may be taken if there is any derivation. the control isvery easy whenever the organisation has a fixed standard .a good system of control has thecharacteristics of economy ,flexibility, understanding and adequacy to organisational needs.
8.Innovation
Innovation refers to the preparation of personnel and organisation to face the changes made inthe business world continuous changes are made in the business. Consumers are satisfiedthrough innovation. Innovation includes developing new material, new products, and newtechniques in production, new package, and new design of a product and cost reduction.