Elton Mayos Contribution to Management.

Key theories

Hawthorne Experiment: Key Findings.

The Hawthorne plant of Western Electric was located in Chicago. It had some 29,000 employees and manufactured telephones and telephone equipment, principally for AT & T. The company had a reputation for advanced personnel policies and had welcomed a research study by the National Research Council into the relationship between work-place lighting and individual efficiency.

The experiments

The study began in 1924 by isolating two groups of workers in order to experiment with the impact of various incentives on their productivity. Improvements to levels of lighting produced increases in productivity, but so too did reversion to standard lighting and even below-standard lighting in both groups. The initial assumption therefore was that increased output stemmed from variation alone.

Other incentives - including payment incentives and rest pauses - were manipulated at regular intervals, and although output levels varied, the trend was inexorably upwards. Whatever experimentation was applied, output went up. Although it had been fairly conclusively determined that lighting had little or nothing to do with output levels, the Assistant Works Manager (George Pennock) agreed that something peculiar was going on and that experimentation should continue.

Early deductions - supervision and employee attitudes

In the winter of 1927, Pennock invited Clair Turner (Professor of Biology and Public Health at MIT) to consult. Turner quickly resolved that rest pauses in themselves were not the cause for increased output, although it was observed that longer rest pauses gave rise to more social interaction, which in turn impacted on mental attitudes. Turner attributed the rise in output to: the small group; the type of supervision; earnings; the novelty of the experiment, and the increased attention to the experimentees generated by the experiment itself.

Pennock had been among the first to note that supervisory style was important. The supervisor involved in the illumination experiment had been relaxed and friendly; he got to know the operators well and was not too worried about company policies and procedures. Discipline was secured through enlightened leadership and understanding, and an esprit de corps grew up within the group. This was in stark contrast to standard practice before the experiment.

When Pennock invited Turner to participate, he also invited Mayo (although it is unknown whether this was as a result of Mayo's achievements at the Philadelphian Spinning Mill, or because of a desire to involve Harvard). Visits in 1929 and 1930 indicated to Mayo 'a remarkable change of attitude in the group'. Mayo's view was that the Test Room Workers had turned into a social unit, enjoying all the attention they were getting, and had developed a sense of participation in the project.

In order to understand this further Mayo instituted a series of interviews. These provided the workers with an opportunity to express their views and let off steam. It emerged that they would feel better for discussing a situation even if it did not change. Further exploration into worker complaints revealed that some had little or no basis in fact but were actually symptoms or indicators of personal situations causing distress.

By focusing on a more open, conversational, listening and caring interview approach, Mayo had struck a key which linked the style of supervision and the level of morale to levels of productivity.

Further research - social groups

A third stage in the research programme took place in the Bank Wiring Room with a similar application of incentives to productivity. Here it emerged that:

• output was restricted - the group had a standard for output which was respected by individuals in the group;
• the group was indifferent to the employer's financial incentive scheme;
• the group developed a code of behaviour of its own based on solidarity in opposition to the management, and
• output was determined by informal social groups rather than by management.

Mayo had read the work of F W Taylor, who had already established that social groups were capable of exercising very strong control over the work behaviour of individual members (Taylor had referred to this as 'systematic soldiering'). The interesting development which Mayo noted, however, was that whereas in the first set of experiments productivity went up as the experiments progressed, in the Bank Wiring Room productivity was restricted.

In The human problems of an industrial civilisation Mayo wrote:

Human collaboration in work, in primitive and developed societies, has always depended for its perpetuation upon the evolution of a non-logical social code which regulates the relations between persons and their attitudes to one another. Insistence upon a merely economic logic of production...interferes with the development of such a code and consequently gives rise in the group to a sense of human defeat. This... results in the formation of a social code at a lower level and in opposition to the economic logic. One of its symptoms is 'restriction'.

The question which needed to be asked, therefore, was: What was different between the two groups? The answer was found to lie with the attitude of the observer. Where the observer encouraged participation and took the workers into his confidence, productivity went up. Where the observer merely watched and adopted the trappings of traditional supervisory practice, output was restricted.

Interpreting Hawthorne

For industry to benefit from the experiments at Hawthorne, Mayo first concluded that supervisors needed training in understanding the personal problems of workers, and also in listening and interviewing techniques. He held that the new supervisor should be less aloof, more people-oriented, more concerned, and skilled in handling personal and social situations.

It was only later, after a period of reflection, that Mayo was able to conclude that:

• job satisfaction increased as workers were given more freedom to determine the conditions of their working environment and to set their own standards of output;
• intensified interaction and cooperation created a high level of group cohesion;
• job satisfaction and output depended more on cooperation and a feeling of worth than on physical working conditions.

In Mayo's view, workers had been unable to find satisfactory outlets for expressing personal problems and dissatisfactions in their work life. The problem, as Mayo perceived it, was that managers thought the answers to industrial problems resided in technical efficiency, when actually the answer was a human and social one.

Mayo's contribution lies in recognising from the Hawthorne experiments that the formality of strict rules and procedures spawns informal approaches and groups with their base in human emotions, sentiments, problems and interactions. The manager, therefore, should strive for an equilibrium between the technical organisation and the human one and hence should develop skills in handling human relations and situations. These include diagnostic skills in understanding human behaviour and interpersonal skills in counselling, motivating, leading and communicating.

In perspective

Mayo has been acclaimed by his followers as the Founder of the Human Relations school of management, and he has been criticised by sociologists for not going far enough in his interpretations.

Mayo's conclusions and interpretations are increasingly commonplace among social scientists, trade unionists and managers alike. Perhaps that is a measure of his achievement, because most critics and commentators agree that he was the first, not necessarily to state the case, but to demonstrate, infer and provide evidence from it to shift management thinking in a direction other than the widespread and entrenched dominance of Taylor's scientific management.

Hawthorne - thanks to both Mayo and one of his major colleagues and collaborators (F. J. Roethlisberger) was widely reported and discussed. Roethlisberger said of Mayo that the data were not his, the results not his, but the interpretations were Mayo's. Without those interpretations, the results of Hawthorne would still be collecting dust in the archives. Following his involvement with the Hawthorne Experiments in the 1920s and 30s, Roethlisberger later revisited the findings with Hawthorne supervisor William Dickson. When analysing the data in detail, they discovered that subjects alter their behaviour when under observation. This they termed the ‘Hawthorne Effect’ - a situation which arose because people were ‘singled’ out for special treatment, or a ‘special situation’ which when created, allowed workers the freedom to air their problems. This psychological phenomenon was written about by Roethlisberger and Dickson in their 1966 publication Counselling in an organization: a sequel to the Hawthorne researches. Since that time, modern-day scholars have sought to investigate the validity of the ‘Hawthorne Effect’; examining the extent to which individuals modify their behaviour when under observation, and in what conditions it manifests itself.

Mayo's conclusions influenced others who later became regarded as management gurus themselves:

His ideas on the emergence of 'informal' organisations were read by ARGYSIS and others as they developed theories about how organisations learned and developed.

The discrediting of the 'rabble hypothesis' theory - based on the assumption that individuals only pursue self-interest - led directly to the work of McGregor (Theory X and Theory Y) with its wider implications for leadership and organisation.

The conclusions drawn by Mayo from the Hawthorne studies established the beginnings of the importance of management style as a major contributor to industrial productivity, of interpersonal skills as being as important as monetary incentives or target-setting, and of a more humanistic approach as a means of satisfying the organisation's economic needs and human social skills.

Although there is some disagreement among academics in terms of what conclusions should be drawn from the Hawthorne Experiments, what is agreed upon is that Mayo’s study and subsequent findings effectively laid the foundation for understanding industrial behaviour and human relations in the workplace. Indeed, it can be said that Mayo’s experiment has left a long-lasting legacy for the field of management to build upon for many years to come

Case Study : Dominos Pizza.

Case Study:

Dominos Pizza , where they have used the Fayol's Principlas of Mangement.

What exactly went wrong ?

How the management has fixed it?

Do you think Fayol's pricipal has been applied in this?

Case Study : Henry Fayol's Management Principals in Applications.Firm McDonald.

There are 14 Principles given by Fayol.

The Case Study is about applying in McDonald.

1- Principle of Discipline- ‘Discipline is the key to success’.

This principle should follow by every organisation and in each aspect of their work. Without having discipline in an organisation, no organisation can survive in this competitive world whether it is McDonald or Domino’s.

2- Principle of Equity- All the employees of McDonald should treat in same manner. They shouldn’t discriminate on the basis of gender, caste, sex etc. This will bring harmony in their work which ensure better result.

3- Principle of fair remunaration- Fair remunaration means every employee should get equivalent amount of reward for their work.

4- Stability of tenure of personnel- Employer should back their staff and providing them the feeling of job security.

5- Subordination of individual interest to general interest- Every employee’s working pattern should towards the goal of organisation rather than their personal goal.

6- Unity of direction- In every organisation, the structure consist different kind of employees from different background with different style.

Employer should unify all their efforts lead towards the common direction. May come from diffrent religious groups and diffrent ethnic background.

7- Division of work- For specialisation, every deptt. should become best in their work.

For example- In McDonald their are some department as below:-

(a)Packing Deptt.

(b)Makers of food stuff in McDonald,

(c)Front desk etc.

Each department get specialised if they will do their job again and again.

8- Unity of order- All the materials related to Mcdonald should be at fixed place which makes every one’s work easy and saves time to find that.

9- Unity of Command- Instructions & guidelines should be given by only one boss because multiple bosses leads to chaos and confusion among employees and ego clashes can be created among bosses.

In short One boss, One Subordinate.

10- Principle of Scaler Chain- All the required information should pass in systematic manner for smooth flow of working.

Skipping someone & doesn’t let them provide sufficient information may lose interest their work in organisation.

11- Authority and Responsibility- Authority means power to take decision & Responsibility means obligation to do work.

There should be parity between them.

12-Principle of Initiative- If anyone wants to give some valuable suggestion for organisation’s interest. It should be appreciated by others in form of incentives which will boost up their morale.

13-Centralisation & Decentralisation- Centralisation means power in few hands & Decentralisation means power in many hands. There should be balance b/w both in McDonald kind of big organisation for smooth working.

14- Espirit De corps- McDonalds is doing good because the key factor of ‘ team spirit’.

Doing work in team spirit can do miracle.

So, We can say.

In today’s world all the 14 principles of Fayol is still exist.

McDonald’s better productivity, efficiency & effectiveness is the result of using Fayol’s Principle in their work.

:)

Peter Drucker Business Mantras are still working.

• Efficiency is doing better what is already being done.
• The productivity of work is not the responsibility of the worker but of the manager.
• Follow effective action with quiet reflection. From the quiet reflection will come even more effective action.
• No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organised in such a way as to be able to get along under a leadership composed of average human beings.
• The most important thing in communication is to hear what isn't being said.
• Rank does not confer privilege or give power. It imposes responsibility.
• Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes.
• All one has to do is to learn to say 'no' if an activity contributes nothing.
• What is the first duty -- and the continuing responsibility -- of the business manager? To strive for the best possible economic results from the resources currently employed or available.
• People do not know that you cannot successfully innovate in an existing organisation unless you systematically abandon. As long as you eliminate, you'll eat again. But if you stop eliminating, you don't last long.
• Leaders shouldn't attach moral significance to their ideas: Do that, and you can't compromise.
• The only things that evolve by themselves in an organisation are disorder, friction, and malperformance.
• One cannot buy, rent or hire more time. The supply of time is totally inelastic. No matter how high the demand, the supply will not go up. There is no price for it. Time is totally perishable and cannot be stored. Yesterday's time is gone forever, and will never come back. Time is always in short supply. There is no substitute for time. Everything requires time. All work takes place in, and uses up time. Yet most people take for granted this unique, irreplaceable and necessary resource.
• The really important things are said over cocktails and are never done.
• Doing the right thing is more important than doing the thing right.
• Concentration is the key to economic results. No other principles of effectiveness is violated as constantly today as the basic principle of concentration.
• Long range planning does not deal with future decisions, but with the future of present decisions.
• Leadership is not magnetic personality -- that can just as well be a glib tongue. It is not 'making friends and influencing people' -- that is flattery. Leadership is lifting a person's vision to high sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations.
• What gets measured, gets managed.
• No decision has been made unless carrying it out in specific steps has become someone's work assignment and responsibility.
• Whenever you see a successful business, someone once made a courageous decision.
• Meetings are a symptom of bad organisation. The fewer meetings the better.
• The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.
• Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got.
• Objectives are not fate; they are direction. They are not commands; they are commitments. They do not determine the future; they are means to mobilise the resources and energies of the business for the making of the future.
• Any organisation develops people: It has no choice. It either helps them grow or stunts them.
• Don't take on things you don't believe in and that you yourself are not good at. Learn to say no.
• If you can't establish clear career priorities by yourself, use friends and business acquaintances as a sounding board. They will want to help. Ask them to help you determine your 'first things' and 'second things.' Or seek an outside coach or adviser to help you focus. Because if you don't know what your 'first things' are, you simply can't do them FIRST.
• Teaching is the only major occupation of man for which we have not yet developed tools that make an average person capable of competence and performance. In teaching we rely on the  naturals', the ones who somehow know how to teach.
• Don't travel too much. Organise your travel. It is important that you see people and that you are seen by people maybe once or twice a year. Otherwise, don't travel. Make them come to see you.
• The leaders who work most effectively, it seems to me, never say 'I'. And that's not because they have trained themselves not to say 'I'. They don't think 'I'. They think 'we'; they think 'team'. They understand their job to be to make the team function. They accept responsibility and don't sidestep it, but 'we' gets the credit... This is what creates trust, what enables you to get the task done.
• Too many leaders try to do a little bit of 25 things and get nothing done. They are very popular because they always say yes. But they get nothing done.
• Efficiency is doing things right; effectiveness is doing the right things.
• The purpose of business is to create and keep a customer.
• Again, let's start out discussing what not to do. Don't try to be somebody else. By now you have your style. This is how you get things done.
• Leaders communicate in the sense that people around them know what they are trying to do. They are purpose driven -- yes, mission driven. They know how to establish a mission.
• I tell all my clients that it is absolutely imperative that they spend a few weeks each year outside their own business and actively working in the marketplace, or in a university lab in the case of technical people. The best way is for the chief executive officer to take the place of a salesman twice a year for two weeks.
• Few top executives can even imagine the hatred, contempt and fury that has been created -- not primarily among blue-collar workers who never had an exalted opinion of the 'bosses' -- but among their middle management and professional people.
• When you are the chief executive, you're the prisoner of your organisation. The moment you're in the office, everybody comes to you and wants something, and it is useless to lock the door. They'll break in. So, you have to get outside the office. But still, that isn't travelling. That's being at home or having a secret office elsewhere. When you're alone, in your secret office, ask the question, 'What needs to be done?' Develop your priorities and don't have more than two. I don't know anybody who can do three things at the same time and do them well. Do one task at a time or two tasks at a time. That's it. OK, two works better for most. Most people need the change of pace. But, when you are finished with two jobs or reach the point where it's futile, make the list again. Don't go back to priority three. At that point, it's obsolete.
• We suffer from over-choice: 67 varieties of toothpaste, 487 styles of shoes, 186 brands of cell phones with 137 telephone companies. We demand more variety than we could possibly need or want; and as a result, we get lost in options, opportunities, and choices. There are 87 varieties of lawyers, and 75 specialties inside medicine. The world of work can be a confusing landscape.
• That people even in well paid jobs choose ever earlier retirement is a severe indictment of our organisations -- not just business, but government service, the universities. These people don't find their jobs interesting.
• A critical question for leaders is: 'When do you stop pouring resources into things that have achieved their purpose?'
• Morale in an organisation does not mean that 'people get along together'; the test is performance not conformance.
• An employer has no business with a man's personality. Employment is a specific contract calling for a specific performance... Any attempt to go beyond that is usurpation. It is immoral as well as an illegal intrusion of privacy. It is abuse of power. An employee owes no 'loyalty,' he owes no 'love' and no 'attitudes' -- he owes performance and nothing else.
• Ideas are somewhat like babies -- they are born small, immature, and shapeless. They are promise rather than fulfillment. In the innovative company, executives do not say, 'This is a damn-fool idea.' Instead they ask, 'What would be needed to make this embryonic, half-baked, foolish idea into something that makes sense, that is an opportunity for us?'
• Innovation is the specific instrument of entrepreneurship... the act that endows resources with a new capacity to create wealth.
• Once a year ask the boss, 'What do I or my people do that helps you to do your job?' and 'What do I or my people do that hampers you?'
• Great leaders find out whether they picked the truly important things to do. I've seen a great many people who are exceedingly good at execution, but exceedingly poor at picking the important things. They are magnificent at getting the unimportant things done. They have an impressive record of achievement on trivial matters.
• How does one display integrity? 'By asking, especially when taking on office: What is the foremost need of the institution and therefore my first task and duty?'
• Ask yourself: What major change in the economy, market or knowledge would enable our company to conduct business the way we really would like to do it, the way we would really obtain economic results?
• Ask yourself: What would happen if this were not done at all?
• So much of what we call management consists in making it difficult for people to work.
• The subordinate's job is not to reform or re-educate the boss, not to make him conform to what the business schools or the management book say bosses should be like. It is to enable a particular boss to perform as a unique individual.
• Effective leaders check their performance. They write down, What do I hope to achieve if I take on this assignment?' They put away their goals for six months and then come back and check their performance against goals. This way, they find out what they do well and what they do poorly.
• The individual is the central, rarest, most precious capital resource of our society.
• The most efficient way to produce anything is to bring together under one management as many as possible of the activities needed to turn out the product.
• The computer is a moron.
• Successful leaders make sure that they succeed! They are not afraid of strength in others.
• The CEO needs to ask of his associates, 'What are you focusing on?' Ask your associates, 'You put this on top of your priority list -- why?' The reason may be the right one, but it may also be that this associate of yours is a salesman who persuades you that his priorities are correct when they are not.
• Free enterprise cannot be justified as being good for business. It can be justified only as being good for society.
• Executives owe it to the organisation and to their fellow workers not to tolerate nonperforming individuals in important jobs.
• A manager is responsible for the application and performance of knowledge.
• Accept the fact that we have to treat almost anybody as a volunteer.
• Business, that's easily defined -- it's other people's money.
• Few companies that installed computers to reduce the employment of clerks have realised their expectations... They now need more and more expensive clerks even though they call them 'operators' or 'programmers.'
• What's absolutely unforgivable is the financial benefit top management people get for laying off people. There is no excuse for it. No justification. This is morally and socially unforgivable, and we will pay a heavy price for it.
• Management is doing things right; leadership is doing the right things.
• A man should never be appointed into a managerial position if his vision focuses on people's weaknesses rather than on their strengths.
• Start with what is right rather than what is acceptable.
• Performing organisations enjoy what they're doing.

Scientific Management by Fedrick Winslow Taylor.

Scientific Management Theory is a theory of industrial administration that aims to increase productivity by application of scientific principles to all aspects of work, worker and workplace.

F. W. Taylor had worked as a machinist. Due to this experience of working as a practitioner rather than as a manager, he focused on the shop-floor, the lowest level - in other words, the level of the worker.

Three assumptions of Scientific Management are:

1. A good worker is not supposed to take initiative, but is supposed to obey orders.
2. Application of scientific principles will improve productivity.
3. The worker is an economic man and is motivated by monetary incentives and rewards.

Some concepts of Scientific Management:

1. Functional foremanship : a worker should be under the command of eight “functional foremen” or supervisors, each in charge of a particular aspect of work e.g shop disciplinarian, gang boss, time and cost clerk, repair boss, speed boss, inspector etc.
2. Principle of Exception: a manager should be interested not in standard performance but in exceptional performance with deviates from the standard.
3. Differential Piecework Plan: a system of monetary incentive to motivate the worker to put in his best efforts. Above the basic salary, a bonus is to be paid depending on the workers performance.
4. Separation of planning and execution: His principle ' Division of Responsibility' stated that planning must be done by higher officials and employer. Lower level employees must focus only on executing the plans of their employer.He further advocated that there should be seperate people for each function within an organisation. If the same person is given both planning and executive responsibilities, his efficiency will go down and the organisation will 
5. Motion and Time Study: scientific assessment of hand and body motions, tools, procedures and equipment to find the “one best way” of doing things and eliminating unnecessary motions to maximize productivity and efficiency.
6. Cooperation, Division of Work: between worker and management.
7. Scientifically recruiting, training and developing the worker.
8. Soldiering: the tendency on part of the worker to restrict output.

Other contributions to the Scientific Management school came from Henry Gantt (devised the Gantt chart of job scheduling against time), Frank and Lillian Gilbreth (gave concept of speed work, motion study, flow process chart).

Limitations of Scientific Management School:

1. Undermines importance of non-monetary rewards
2. Ignores the human-side of the organization, treats worker mechanistically.
3. Curbs initiative.
4. Takes away manager’s judgement and discretion by subjecting him to scientific principles.
5. Narrow focus - focus only on the lowest level of the organization i.e the shop floor, not the top level management.
6. Explains human motivation only in terms of economic factors.
7. Ignores inter-personal relationships in the organization.

Contribution of Scientific Management School:

1. Introduced concept of work study.
2. Underline importance of performance standards and quantitative assessment of work.
3. Contributed a lot to management thought.
4. Role specificity and clear delineation of authority and responsibility.
5. Underlined importance of task specialization at the workplace.

Coutsey:https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor

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What are the basic Concept of Management Functions and Role and responsibility Management Defined?

Whats are the basic functions of Management:How to Drive it:-

• Passion – have passion for your work, convey it to your people, and demonstrate it in your actions
• Integrity – establish, maintain, and promote core values; be fair, honest, and responsible
• Communication – regularly let stakeholders know what is going on by communicating coherently, completely, and compellingly to inspire, align, and motivate
• Knowledge – know as much as you can about your work, share your knowledge with others, and encourage them to do the same.
• Love – love what you do, love your people, and show love to the people with whom you interact.
• Empowerment – listen to, trust, and support your people.
• Service – serve your people, your organization, and your community.Acronym :PICKLES.

Whats the Roles and Responsibility of a Manager?

   Here are 10 Roles & Responsibilities of a manager:

1. Improve results for the assigned organization and for the larger enterprise.
2. Define, maintain, and execute the operational plan for the assigned organization.
3. Define, communicate, implement, and update processes for the assigned organization.
4. Define goals, measurements and rewards for the assigned organization, and regularly provide feedback, recognize, and reward team members.
5. Report regularly on the assigned organization's performance in meeting goals - to team members, peers, and enterprise leadership.
6. Implement detailed action plans for the people and projects in the assigned organization, including the manager.
7. Lead and serve the assigned organization's team(s), including hiring, reassignment, performance feedback, praise, and promotions.
8. Communicate regularly about the assigned organization's plans, performance, progress, successes, and failures.
9. Network and collaborate with other managers in the enterprise, and represent the assigned organization in meetings within the enterprise.
10. Model desired behaviors, practice what you preach, roll up your sleeves, get your hands dirty, and lead by example.

Whats are the FUNCTION OF MANAGEMENT?

Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. The basic ingredients of management are always at play, whether we manage our lives or business. Management is a set of principles relating to the functions of planning, organizing, directing, and controlling, and the applications of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals.

PODSCORB:

1. Planning :Planning is looking ahead. According to Henri Fayol, drawing up a good plan of action is the hardest of the five functions of management. This requires an active participation of the entire organization. With respect to time and implementation, planning must be linked to and coordinated on different levels. Planning must take the organization’s available resources and flexibility of personnel into consideration as this will guarantee continuity.
 2. Organizing:An organization can only function well if it is well-organized. This means that there must be sufficient capital, staff and raw materials so that the organization can run smoothly and that it can build a good working structure. The organizational structure with a good division of functions and tasks is of crucial importance. When the number of functions increases, the organization will expand both horizontally and vertically. This requires a different type of leadership. Organizing is an important function of the five functions of management.

3.Commanding:When given orders and clear working instructions, employees will know exactly what is required of them. Return from all employees will be optimized if they are given concrete instructions with respect to the activities that must be carried out by them. Successful managers have integrity, communicate clearly and base their decisions on regular audits. They are capable of motivating a team and encouraging employees to take initiative.

4.Co-Ordinating:When all activities are harmonized, the organization will function better. Positive influencing of employees behaviour is important in this. Coordination therefore aims at stimulating motivation and discipline within the group dynamics. This requires clear communication and good leadership. Only through positive employee behaviour management can the intended objectives be achieved.

 5. Staffing:Staffing involves selecting and recruiting the correct applicants for the job and facilitating their training and orientation while sustaining a promising work environment.

 4. Directing:Directing entails delegating structured and decision-making instructions and orders to accomplish them.

 6. Controlling:By verifying whether everything is going according to plan, the organization knows exactly whether the activities are carried out in conformity with the plan.

Control takes place in a four-step process:

1. Establish performance standards based on organizational objectives
2. Measure and report on actual performance
3. Compare results with performance and standards
4. Take corrective or preventive measures as needed

7.Reporting:Reporting contains frequently updating the superior about the improvement or the work-related doings. The information distribution can be through inspection or records.

8. Budgeting:Budgeting comprises of all the happenings that under Accounting, Auditing Control and Fiscal Planning.

Whats are LEVELS OF MANAGEMENT?

There are 3 levels of management:

1. Top Level of management consists of a board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time to planning and coordinating functions. The role of the top management can be summarized as follows -Top management lays down the objectives and broad policies of the enterprise. It issues the necessary instructions for the preparation of department budgets, procedures, schedules, etc. It prepares strategic plans & policies for the enterprise. It appoints the executive for the middle level i.e. departmental managers. It controls & coordinates the activities of all the departments. It is also responsible for maintaining contact with the outside world. It provides guidance and direction. The top management is also responsible for the shareholders for the performance of the enterprise.
2. Middle Level of Management: The branch managers and departmental managers constitute the middle level. They are responsible for the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organizations, there is only one layer of the middle level of management but in big enterprises, there may be senior and junior middle-level management. Their role can be emphasized as -They execute the plans of the organization in accordance with the policies and directives of the top management. They make plans for the sub-units of the organization. They participate in employment & training of lower-level management. They interpret and explain policies from top-level management to the lower levels.They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top-level management. They evaluate the performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.
3. Lower Level of Management: The lower level is also known as the supervisory/operative level of management. It consists of supervisors, foreman, section officers, superintendent, etc. “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with the direction and controlling function of management. Their activities include -Assigning of jobs and tasks to various employees. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relations in the organization. They communicate employee's problems, suggestions, and recommendatory appeals, etc to the higher level and higher-level goals and objectives to the employees. They help to solve the grievances of the employees. They supervise & guide the sub-ordinates. They are responsible for providing training to the employees. They prepare periodical reports about the performance of the employees. They ensure discipline in the enterprise. They motivate workers. They are the image builders of the enterprise because they are in direct contact with the employees.

Henry Fayol - The French Mining Engineer. The 14 Principals of Management.

1. DIVISION OF WORK :

Fayol assumes that the division of work permits reduction in the number of objects to which attention and effort must be directed has been recognized as the best means of making use of individuals and groups.
Fayol consider that the specialization is the best way to use the human recourses of the organization.

AUTHORITY AND RESPONSIBILITY :

Fayol defined Authority as the right to give orders and the power to exact obedience.
Responsibility defined as valiantly accepted and born merits some reflection; it is a kind of courage everywhere much appreciated.
Naturally the responsibility is a consequence of authority and authority essential counterpart.
As well as Fayol founds that the good leader should possess and infuse into those around him encourage to accept the responsibility.

DISCIPLINE :

Any work or organization it’s need a collective energies of personnel. Discipline is what leaders make it as well it’s the respect for agreements which are directed at reaching obedience, sanction should be applied through these agreements to support  this collective effort.

UNITY OF COMMAND :

Fayol assumes that all the employees should take the order or command just only from one superior, avoiding from the dual command which is leading to conflicts among superiors.

UNITY OF DIRECTION :

One head and one plan for group of activities having the same objectives. It must not be confused with unity of command. Fayol assumes that the unity of direction (one head one plan) is a scale for organized work of the group by the body cooperates. 

SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS:

The general interest of the work must excel on the individual interest through concerted efforts to achieve the desired goals of the work. 

REMUNERATION OF PERSONNEL : 

There must be wages for individuals ,wages should be fair as much as possible for the services provided by individuals;,there are factors given for estimating the value of the worker by the employer.
Fayol gave a great importance to the method of payment and it estimated significant effect on business progress and described it as" thorny problem".
Fayol discussed several payment methods used for the workers, junior managers and higher manager according to these methods, we see that there is no integrated system or a standard practice in Payment Methods.

CENTRALIZATION :

Centralization and decentralization vary mainly how big of the enterprise or organization and the quality of individuals. Fayol defined centralization as the extent of participation for subordinates in decision making.

SCALAR CHAIN :

As Fayol defined the scalar chain as the line of authority, Hierarchy from ultimate authority to lowers levels, Hierarchy is very important to keep the unity of direction later communication between superiors is also essential to proceed swiftly and simply. 

ORDER:

Fayol found that order has two divisions (material and social order) and both are necessary for the organization.
Material order: there should be suitable and definite place for each item and every place to be effectively used and specific activity and product to avoiding loss in material and time 
Social order: choosing and appointed the right person in the right job. There should be a specific place for each employee to be easy contacted in need region. 

EQUITY :

Equity means combination of kindliness and justice .The employees should be treated fair and kind and the employer should be fair while dealing with subordinates.

STABILITY OF TENURE OF PERSONNEL :

Arranged enough of time for the training period for new employees and stop any unnecessary job position movement on this period otherwise the time and effort spent on the training the employee will go waste.  And this was what Fayol appointed to that time is required for an employee to get used to a new work and succeed to doing it well if he is removed before the he will not be able to render worthwhile services. Stability of job, employees and employers creates a team spirit and belongingness among employees which ultimately increase the formation of the work. 

INITIATIVE :

Managers should encourage employees to initiative with freedom. Initiative gives more zeal energy to all levels of personnel and much more development to the work. Initiative is the power of thinking out and executing.

ESPRIT DE CORPS: 

Management should encourage harmony and general good feeling among employees 
. Fayol suggests that “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relation”.