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INDEX Unit I ................................................................... 3 Lesson 1: Management ........................................ 4 Lesson 2: Planning............................................. 12 Lesson 3: Coordination ...................................... 25 Unit - II ............................................................. 32 Lesson 4: Motivation .......................................... 33 Lesson 5: Delegation of Authority ...................... 39 Unit - III ............................................................ 47 Lesson 6: Departmentation ................................ 48 Lesson 7: Communication .................................. 52 Unit IV ............................................................... 62 Lesson 8: Leadership ......................................... 63 Lesson 9: Controlling ......................................... 68 Lesson 10: Directing .......................................... 75 Unit V ................................................................ 80



Lesson 11: Advertising ...................................... 81

Unit I

Lesson 1:- Management Lesson 2:-Planning



Lesson 3:-Co-ordination

Lesson 1: Management Objective: In this lesson the students will explore the meaning and scope of management.

Structure: 1.0 1.1 1.2 1.3


Introduction Concept of Management Nature and Characteristics of Management Principles of Management


The basic unit of society is individual but no individuals can satisfy all his desires himself so he unites with his fellow beings in an organised group for achieving what he cannot do individually. Human beings are surrounded by organised groups of many kinds, viz., a family, a play group, a work group, a school, a business firm, a government, etc.


"Organisation" specifies a set of people to achieve common goals where group activities are coordinated and some type of management is required. If an organisation has no management at all, enemy individual will perform his own duties and the result will be utter confusion where people will be managing their own affairs and will be responsible for nothing else other than their own jobs.


An organisation is a set of people working together to achieve common goals. Wherever there is an organised group of people working towards a common goal, some type of management becomes essential. . No organisation can run successfully unless there is someone to manage its activities.

Management is an essential part of any group activity. It is a primary force within the group or organisation which tends to lead it towards the group goal. Management is required to plan, organise, co-ordinate and control the affairs of the organisation. It brings the human and material resources together and motivates the people for the achievement of the objectives of the organisation. Without management, resources of production remain resources merely and never become production. Management is a primary part of group activity and teach to achieve the common goal. Management is required to Plan Organise Co-ordinate &



Control the Affairs

Management Skills Flow Chart As a process (Management is what a manager does)

Planning Organising Staffing Directing Co-ordinating Controlling Management as a Discipline (Management is the body of knowledge and its practice)

Art of getting things done

Concept of Scientific Principles of Management

Art and Science of Decision Making and Leadership

Manager as a Noun : (Management refers to all those persons who manage)

Board of Director Managing Director Chief Executive General Manager

Supervisors Labourers



Functional Managers

The concept of management was developed to coordinate the functions of an organisation, getting things done through others – Developing the leadership quality and confidence of decision making for better “PROFITABILITY AND PRODUCTIVITY” of the Organisation.


Concept of Management



The concept of management was developed to coordinate the functions of an organisation, getting things done through others – Developing the leadership quality and confidence of decision making for better “PROFITABILITY AND PRODUCTIVITY” of the Organisation.


1.2 Nature and Characteristics of Management: Each definition of Management shows one emphasised area of work, but if taken the nutshell of all definition into the characteristic of Management, the following would emerge as the main features to be taken care of. 1. Management is a group activity:


Eg : In an export house from senior merchandiser to cutters it has to be a group activity else shipments


No individual can satisfy or perform the jobs individually to reach the management targets, hence it becomes mandatory to perform in a group activity.

wont be completed on time and they will reflect upon losses for the management. 2. Management is goal oriented: Effective management is always "Management by Objectives". Rightly said as without an aim, or objective no work process will have initiative and targets to achieve. 3. Management is a factor of production: That is not an end to itself but a mean to achieve the group objective. Just as land, labour and capital are factors of production. 4. Management is universal in character: Management is applicable in all types of organisations whether social, business, cultural, sports, religious, educational, military or political, the basis principals are universal in character. 5. Management is needed at all levels of organisation: Management is needed at all levels of the organisation whether top level; middle level, the difference at the levels i.e. only with nature of task and scope of authority. 6. Management is a distinct process: Management is a distinct process to determine the processes through human beings and other resources. The process of management consists of functions like planning, organising, directing, controlling, staffing, motivating and co-ordinating.


Management consist of getting things done through others. The efforts of human beings have to be directed and co-ordinated in order to achieve the best results.


7. Management is a social process:

8. Management is a system of Authority: Management reflects rule making and rule enforcing body. Authority is an essential part of Management which has the power of getting the work done from others or compel them to work in a particular manner. 9. Management is a dynamic function: Management is a never ending functions, it has to perform continuously keeping in track with the charges and upgradation with flexibility to achieve the best results in every sphere. 10. Management is an art as well as science: Management is a science as it has developed certain principles which are of universal application. The result of Management depends upon the personal skills of Managers and this is an art. 11.

Management is a profession:

In present scenario management is recognised as a profession. It has a systematic and specialised body of knowledge consisting of principles, a technique can be taught as a separate discipline. 12.

Management is intangible:

Management is intangible _ It can be felt in the form of results and not seen. Business to manage with different aspects of Management has become very complex these days, as Managers are expected to deal with number of problems in day-to-day working. To increase the efficiency and have a coordinated effort to achieve Management targets Management Principles were developed so that Managers could follow guidelines and prove to be better managers for a better


Principles of Management





tomorrow. These principles are the real exercises where problems were faced and the better achieve results were developed into the principles.

Lesson 2: Planning Objective In this lesson the students will understand the types and role of planning in management.

Structure 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9


Introduction Definitions Nature or Characteristics of Planning Six Pâ€&#x;s of Planning Needs for Planning Principle of Planning Characteristic of a Good Plan Types of Planning Advantages of Planning Limitation of Planning


Planning helps in determining the course of action to be followed for achieving various organisational objectives. It's a decision in advance; what to do, how to do and who will do a particular task. Planning is a process, which in one line could be defined as `Think before act'.




Hart: "The determination in advance of a line of action by which certain results are to be achieved is planning". According to Hort, Planning is the deciding of a course of action required for reaching organisational goals. The line of action is decided in


To some planning means everything a person does, to others it's specific activity. To clear the meaning of planning, some definitions have been dismissed.

advance so that actual execution become easy later on. Alfred and Beauty: `Planning is the thinking process, the organised forecast, the vision based on fact and experiences that is required for intelligent action. Planning is a process in which decision are taken in advance. The pros and cons of the decisions and their implication in future are discussed before head. A wrong decision may create difficulties for the management and may result in financial loss too.

2.2 Nature or Characteristics of Planning a) Planning, an Intellectual Process: – Planning is essentially an Intellectual process; its mental is nature. A planner has to think about following expects.

What is it to be done ?

When is it to be done ?

By whom is it to be done ?


How is it to be done ?


A decision on these aspects will depend upon capabilities of the decision maker. A proper planning can make the organisation. Whereas Improper mar on organisation

Planning is an integral part of management. Especially in fashion world it is very essential. To complete a certain order in a time period of say three months lot of planning needs to be done in terms of proper infrastructure, staffing budget, delegated, responsibility etc. The following discussion will explain the nature of planning. b) Primary of Planning Without proper planning no management functions can be performed systematically. How can a director of an export house commit to dispatch a shipment in three months without proper planning. It can be said that planning is the function that needs to be done first of all. Planning Organising Controlling



The function like organising, staffing, Directing, controlling will overlap. Itâ€&#x;s not that the other can start only when first is completed. There may be a need for replanning or adjustment of planning. Controlling is one function which goes side by side with planning. One is incomplete without the others


Planning process is a rational approach to the achieving of organisational goals. An action is rational it is objectively and intelligently decided. For eg. before accepting the order from the clients, the organisation has to plan the feasibility of the


c) Planning: A Rational Approach

order in terms infrastructure, labour, raw material, time period etc d) Focus on Objectives An organisation employs a number of persons. Each one of them has different personality and attitude. Planning focuses on setting up organisational objectives and suggest ways to achieve them. For eg. If 3 lakh pieces of a garment have to be prepared in six months, planning will show the path of how to do so. e) Leads to Efficiency and Economy Planning includes the efficient utilisation of various resources like capital, labour, machines, materials etc. An effort is made to achieve organisational goals with minimum resources. Planning helps in controlling duplication of efforts which also ensures economy. f) Limiting Factors While planning limiting factors like money, manpower, materials, market etc. should be considered. If these factors are ignored then planning is bound to fail. The planning should start early after considering the availability of limiting factors. g) Coordination Coordination is essential for harmonious working of the organisation. Planning coordinates the what, who, how, why and where of planning. In absence of planning, different segments of the organisation may pursue different objectives.


Planning process should be adaptable to the changing business environment. Planning is a


h) Flexibility

dynamic process and it adjusts with the needs and requirements of the situations. i) Realistic Planning is based on future forecasts. Thought the future is always uncertain but the prediction should be as realistic as possible. The objectives should not be based on wishful thinking because then it will not be possible to achieve the goals. j) Planning in Continuous Planning is always uncertain and subject to revision and amendment as new facts become known. Even in execution of planning there may be a charge in settings and conditions which will leads to alteration of plans.


Six P’s of Planning Planning







These six P‟s state the fundamental requirement of Planning. These P‟s are discussed as under :– 1. Purpose An effective planning requires a clear understanding of the purpose of planning. The purpose of an organisation may be to increase profit or introduce more products etc.


It starts the beliefs as to how the organisations purpose is to be achieved. The philosophy of an organisation may be based on profitability though quality or increasing turnover through consumer


2. Philosophy

satisfaction etc. For long term survival and growth the philosophy must adopt ethical conduct. 3. Promise Itâ€&#x;s an assessment of strengths and weakness of the organisation based on the knowledge and assumption of environment. By knowing strength and weakness of the organisation management can deal with changing environment in a more effective way. 4. Policies Policies are the general statements for the guidance of the personnel. They are guidelines and limitation which helps in management action and thinking. An organisation can have marketing policies, production policies, financial policies etc. 5. Plans These are the objectives and action statements. Objectives are the goal of an organisation and action statement are means to achieve them. Plans guides us for reaching goals and helping in knowing the progress at different stages. 6. Priorities An organisationmust fix goal priorities, because the resources of finance, materials, personnel etc. are limited and these are to be allocated as per the priorities set. The high priority goal will have preference for allocation of resources. Planning is first step in management. The increased competition, changing consumer preferences have necessitated the need for planning. Following reasons emphasises need for planning. 1. Essential for modern business


Needs for Planning



The growing complexities of modern business, rapid technological changes necessitate planning not only in current outlook but also in the future environment. 2. Related to performance Planning help in setting goals for each function and for each employee. The organisation having formal planning have performed better as compared to those where planning is not taken up as a regular activity. 3. Focus on objective Objectives provide a direction and all planning decisions are directed towards achieving them. It ensure maximum utilisation of managerial time and efforts. 4. Proper Allocation of resources The allocation of resources has to be properly planned thus, minimising wastage and ensuring optional utility of these resources. 5. Facilitates Control Planning can be used to devise a Mechanism of control. There can be targets and their comparison with actual performance on being the notice any deviation. 6. Helpful in decision making Some planning helps in specifying the actions to be taken for achieving organisational objection. It serves as a basis for decision-making for the future.


Principle of Planning


Through proper planning business failure chances are considerably reduced. A bad planning may result into wastage of human oral physical resources.


7. Avoiding business failures

A no. of fundamental principles have been devised over years for undertaking planning. 1. Principle of contribution to objectives All types of plans are prepared to achieve the objectives of the organisation. Planning is used as a means to reach the goals. 2. Principle of Primary of Planning Planning is first function to be undertaken in any organisation. Organisation has to plan first and then proceed to carry out other functions. 3. Principle of Alternatives Planning process involves developing of many alternatives and then selecting one which will help in achieving desired business goals. In absence of alternatives planning gets difficult. 4. Principle of Timing Planning is useless without proper time management. Time allocation should be done before starting the projects. 5. Principle of commitment There should be a time frame for meeting the commitments made. This will ensure the achieving of targets in time.


Characteristic of a Good Plan

2. Proper understanding


1. Clear objective If goals are clear then there will be no confusion or chaos. The objective should be clear, definite and accurate.


A good plan will be that which helps in achieving objective of an enterprise. A good plan should have the following characteristics: _

A good plan is that which is well understood by those who are to execute them. 3. Comprehensive A good plan should cover each and every aspect of the business for proper fulfilment of objectives. 4. Flexible A plan should be flexible to accommodate future uncertainties. A flexible plan will be one which will smoothly adjust requirement of changing condition. 5. Economical The cost evolved in planning should be as economical as possible, depending upon the resources available with the organisation.


Types of Planning

Plans may be classified into several types: _ A. Administrative Planning




Administrative planning is concerned with determining the bases of action for a period of time for the whole business as well as for various segments of it. These plans provide guidelines to operational plans. Operational planning determines the bases of action for undertaking work. These plans are related to the actual execution of work. Operative plan are generally for a short period of time and are prepared at lower level management.


A long term planning set long term goals for the firm and proceeds to formulate specific plans for attaining these goals. This planning may be for a period of five, ten or twenty years. It generally


B. Long term, medium term and short term planning

deals with Manpower planning, financial resources, Product planning etc. Medium term planning is for two to five years. The areas covered in medium term planning are same and for long term planning. The details of various plans are worked out for their proper implementation. Short term planning is concerned with determining short term activities to accomplish long range results. These plans are generally for one year period. The department like production and marketing may develop quarterly or monthly operating results. C. Strategic and Tactical Planning The main objective of strategic planning is set, strategies are advised, policies are laid down. Planning sets the direction in which the business will grow. It keeps in view the moves of competition, market factors, consumer preferences, life cycle of the product etc. Tactical plans are to support strategic plans wherein some difficulty is faced in its implementation. Any changes in internal organisation and external environment have to be met through tactical plans. For e.g. there is a sudden change in prices of products difficulty in procuring raw materials etc. are taken care through strategic planning. D. Standing and ad-hoc planning

2. Procedures 3. Methods


1. Policies


Standing plans are meant to be used over and over again. They are permanent in nature. These plans provide ready made answers to a situation. Examples of standing planning are

4. Rules. Ad-hoc plans are generally for specific matters. These plans are prepared only when some need arises. Different situations require different methods of tackling them. So, ad-hoc plan for one situation cannot be used in another situation.


Advantages of Planning

Planning is one of the crucial functions of management. It's basic to all other functions of management. There will not be proper organisation and direction without proper planning. Planning is important for the following reasons: _ 1. Attention on objectives Planning helps in clearly laying down adjectives of the organisation. The whole attention of management is given towards the achievement of these objectives. 2. Minimising Uncertainties Planning certainly minimises future uncertainties by leasing its decision on past experiences and present situation. 3. Better Utilisation of Resources Another advantage of planning is the better utilisation of resources of the business. All resources are put to best possible uses. 4. Economy in Operations

The objective of the organisation being common. Planning will lead to better coordination in the


5. Better Coordination


The operations selected being letter among possible alternatives, there is an economy in operation. The method of trial and error is avoided and resources are not wasted in making choices.

organisation which will ultimately lead to better results. 6. Encourage Innovation and creativity Planning helps innovative and creative thinking among planners because they will think many new things while planning. 7. Management by Exception Possible Management by exception means that management should not be involved in each and every activity. By the introduction of Management by exception, Managers are given more time for planning the activities rather than washing their time in directing day-to-day work. 8. Facilitate Delegation Under planning process, delegation of powers of authority is facilitated through planning process.


Limitation of Planning

Every coin has two faces. Similarly despite of many advantages there are certain disadvantages of planning which are mentioned as under: 1. Lack of Reliable Data Planning is leased on various facts and figures supplied to the planners. If the data on which decision are based are not reliable then decision based on such information will also be unreliable. 2. Time Consuming Process

Planning process is very expensive. The gathering of information and testing of various courses of action


3. Expensive


Practical utility of planning is sometime reduced by the time factor. Under certain circumstances an urgent action is needed then one can't wait for the planning process to complete.

involve greater amount of money. The utility derived from planning in no case should be less than expenditure incurred on it. 4. External Factors may reduce utility Beside internal factors there are external factors too which adversely affect planning. They may be economic, social, political, technological or legal. 5. Sudden Emergencies In case certain emergencies arise then the needs of the hour is quick action and not advance planning. These situations may not be anticipated in planning. 6. Resistance to Change



Most of the persons, generally don't like any change. Their passive outlook to new Ideas becomes a limitation to planning.

Lesson 3: Coordination Objective The objective of this lesson is to introduce students to the principles and process of coordination.

Structure 3.0 3.1 3.2 3.3


Introduction Definitions Principle of Co-ordination Process of Coordination


Coordination refers to the process of clubbing all the activities or synchronising activities of various persons in an organisation in order to achieve the set target. It is a source of creating mental awareness amongst all the employees and their efforts are directed in unison.



1. Henry Fayol: "To coordinate is to harmonise all the activities of a person in order to facilitate its working and its success."


2. Ordway Tead: "Co-ordination is the effort to assure a smooth interplay of the functions and forces of all the different component parts of an


According to this definition it is concluded that Co-ordination is a very important aspect of management that enables a person to improve his functioning. It creates harmony in the working environment

organisation to the end that its purpose will be realised with minimum of friction and maximum of collaboration effectiveness." According to the above mentioned definition, the main purpose of co-ordination is to balance all the functions of various departments in order to achieve the Organisation goals to the fullest. 3. Koontz and O' donnell: "It seems more accurate to regard co-ordiation as the essence of managership for the achievement of harmony of individual efforts towards the accomplishment of group goals is the purpose of management. Each of the managerial function is an exercise in coordination."


Principle of Co-ordination

There are four main principles of Co-ordination as stated by Marry Parker Follett; a) Principle of Direct Contract: _ Miss Follet is of the opinion that Co-ordination can be achieved more easily if there is direct horizontal relationships and direct personal communication. There always exist a possibility of conflicts and misunderstandings. To avoid this direct contact and proper communication is essential.


c) Principle of Reciprocal Relationship – All the factors in a situation that exists at a work place are interrelated reciprocally. Work of one person


b) Principle of Early Beginning: – Co-ordination is easily achieved if its struggled for in the early stages of planning and policy making. For example, in an export house, if the senior merchandiser or the head of the production department while forming the policies, meets and discusses with the other heads, the question involved, a successful co-ordination is far more likely to be achieved.

is dependent on that of the other, who in turn may be dependent on some other. In the absence of co-ordination among any one makes the entire work suffer For instance, in branded companies like Nike, Reebok, Duke, materials, finance, sales, production will be dependent upon0 one another, and when member of such companies realise that all factors are reciprocally related then coordination becomes a task which is easy to perform.


Good personal relations

Unit of Direction

Essence of Management

Efficiency & Economy

Retains Personnel

At every level of management co-ordination is essential for achieving harmony in the individual efforts. According to Chester Bernard, “the quality of co-ordination is the crucial factor in the survival of organisation.” Co-ordination is important because of the following reasons :– a) Good Personal Relations: With the help coordination, good personal relations can be built up between management and staff. Mutual discussion may sort out various conflicts in an organisation.


c) Essence of Management: Every organisation maintains a degree of specialisation, division of labour and large number of individual. Every one


b) Unity of Direction: Co-ordination creates unity of direction. Its absence might result in conflicting goals.

has a different way of working, therefore it becomes essential to synchronise the work of all persons in the organisation. d) Efficiency and Economy: Efficiency and economy results in from coordination. Efficiency results only when any sort of delays and duplication is avoided. On the whole, it saves time and energy, bringing economy to the business. e) Helpful in Developing and Retaining of Personnel: Co-ordination not only promotes the spirit of team work instead it also promotes job satisfaction among employees by developing confidence and by giving them personal contentment.


Process of Coordination

Coordination may be achieved through following process: _ a) Proper Planning: Planning is deciding in advance what is to be done in futures. Itâ€&#x;s the elementary stage of achieving coordination. According to Mary Follett, planning stage is the ideal time to bring about co-ordination and they must see to it that various plans are properly interrelated.


c) Through Directing: A manager gives direction, guidelines and instructions for doing a job that he is support to do. His direction is the way to achievement of overall set targets.


b) Through Organisation: Co-ordination is an essential part of every organisation. In an organisation related activities are placed together to avoid delays and confusions. In an Organisation authority and responsibility go hand in hand. The superior assign various responsibilities to the subordinates well planned activities in an organisation may lead to ultimate co-ordination.

d) Through Controlling: Itâ€&#x;s the manager who needs to have control over the overall work performances of the subordinates. These might be chances wherein, the subordinates do not perform as per the directions in such cases; manager will take corrective action so as bring the performance upto the mark. Controlling itself facilitates co-ordination since it requires the evaluation of performance of subordinates and enables the manager to make necessary changes if there are deviations between standards set and results achieved.



e) Through staffing: Right job is performed or can be performed by the right / suitable person only. So while selection, its the responsibility of the manager to appoint right at the right job so that staffing as a function of management helps in co-ordination.

Summary Management is a process through which the working of an organisation can be streamlined by planning, organising, coordinating, and controlling of the affairs of the organisation. It involves planning and coordination on the part of the manager so that the organisation can function smoothly and efficiently.

Revision Points Concept of management Nature and characteristics of Management Principles of Management Six Pâ€&#x;s of Planning Characteristic of a Good Plan Principle of Co-ordination Process of Coordination

Key Words: 1. Management: the process by which the functions of an organisation are coordinated. 2. Planning: It's a decision in advance; what to do, how to do and who will do a particular task. 3. Coordination: Coordination refers to the process of clubbing all the activities or synchronising activities of various persons in an organisation in order to achieve the set target.

Intext Questions 1. "Explain Management"

4. Briefly define "Concept of Management".


3. What is the need for "Planning�?


2. Define in brief the four parts of Management Skills.

Terminal Exercises: 1. Give different characteristics of Management. 2. What do you understand by the term "planning�? 3. Explain the characteristics of planning? 4. What are the 6 "P" of planning? Explain. 5. Why is Management organisation?




Assignments 1. List the advantages of planning? 2. What is coordination? How can Co-ordination be achieved successfully? 3. Why do you think Co-ordination is important in management? Explain with the help of an example.



4. Explain the process of Co-ordination.

Unit - II

Lesson-4: Motivation



Lesson-5: Delegation of authority

Lesson 4: Motivation Objective The objective of this lesson is to introduce students to the types, importance and techniques of motivation.

Structure 4.0 4.1 4.2 4.3 4.4


Introduction Definitions Types of Motivation Importance of Motivation Techniques to Increase Motivation 4.4.1 Financial Motivators 4.4.2 Non-Financial Motivators


Motivation is an important factor which encourages human being to give there best performance and helps them in attaining their goals. Motivation is an inner feeling which energies a person to work more. It helps to activate the unused energizes a person by channelising them into positive actions



Motivation has been defined by various scholars as follows Dubin : “Motivation is the complex of forces started and keeping a person at work in an organization


Lillis: “It is the stimulation of any emotion or desire operating upon one‟s will and promoting or driving it to action


Vanu : “Motivation implies any emotion or desire which so conditions one‟s will that the individual is properly bad into action

Every organisation aims to increase its profits and excel in the market. To achieve these objectives from its employees, the Organisation needs to inspire and encourage workers to perform better and use their capabilities and capacities to the fullest. Letâ€&#x;s take an example of an export house; a Manager who wants to achieve his targets in a limited time period. To do so, he needs full cooperation from his team. He needs instil enthusiasm TYPES OF MOTIVATION

Positive Motivation (Promotion, Salary raise, better reports insurance, bonus etc.)

Negative Motivation (Fear, threat, punishment)

among team members to accomplish the assigned task. He can do so by using positive or negative methods to motivate them as discussed under:–



2. Negative Motivation: Negative motivation is based on force or fear. Employees are given threats and forced to work more. In case, they do not act accordingly they may be punished with demotions, extra time or even losing the jobs. This prevails fear and employees do not cooperate willingly. Though they work upto a level where punishment is avoided but this type of


1. Positive Motivation: Positive motivation is based on rewards. The workers are offered benefits for achieving the desired goals. The benefits may be in the form of more pay, promotion, better reports etc. The want of all these additional benefits makes the workers happy and they want to improve their performance. Thus the targets are achieved with full support of workers and administration in a peaceful manner.

motivation causes anger and frustration. It becomes a cause for social evils. Inspite of the drawbacks of negative motivation, this method is commonly used to achieve desired results.


Importance of Motivation

Every organisation wants to maximise its output. This is possible only when all the employees cooperates and give in this best effort. The following is the importance of motivation. 1. High performance: - Positively Motivated Employees will put Maximum efforts for achieving organisation goals. The unused physical and mental abilities are used to the maximum. Better performance will also result in Higher productivity. 2. Low Employee Turnover And Absenteeism: When the employees are not satisfied with their job then they will leave it whenever they get an alternative of for the dissatisfaction among employees costs high to the organisation when the employees are satisfied with their jobs and they are will motivated from time to time by offering them financial and non financial incentives then the loyalty towards organisation increases. The rate of absenteeism will also be law because they will try to increase their output.


4. Better Industrial Relations: - A good motivating system will create job satisfaction among employees and employers The conflicts


3. Better Organisation Image:- The organisation which offer better Monetary facilities to their employees have a letter image in the market. Such concerns are successful in attracting letter qualified and experienced professionals the high quality manpower the will help to further improve the performance of the organisation.

would be discouraged and cordial relations among both sides will create a positive atmosphere. It will lead to healthy competition and better industrial relations.


Techniques to Increase Motivation

Every management tries to specify certain motivational techniques specify certain motivational techniques which can be employed for improving performance of its employees MOTIVATIONAL TECHNIQUES

Non-financial Motivators



Project Sharing




Higher Salary

Job Enrichment

Leave with pay


Financial motivators may be in the form of more wages and salaries, bonuses, profit sharing, leave with pay, medical insurance, life insurance etc. The economists and most of the managements consider financial incentives as important motivators. Motivation in terms of salary / wages increase is must to retain people in the organisation.


Non-Financial Motivators


Financial Motivators



Financial Motivators

The motivators are in the nature of better status, recognition, job security etc. some of these are discussed below: 1. Recognition:Error! Bookmark not defined.Recognition may be in terms of world of praise, a better of appreciation, entry into annual confidential meeting etc. There can also be awards certificates, trophies etc. The recognition may be for better output, saving the time, improving quality of products, effective solutions etc. All these types of recognitions will act as motivators. If the performance of the workers is not recognised and everyone is treated on the same footing then potential minds will not try to put their best efforts 2. Participation:–Participation means physical and mental involvement of people in decision making process. It uplifts ego and confidence of workers. The feel important when asked to make suggestions in these fields of activity. Participation gives a sense of responsibility and accomplishment. Managers should encourage subordinates to participate in open discussions prior to decision making


4. Job Enrichment: – Job enrichment has been recognised as an important motivator by various researchers. The job is made more challenging for the workers by giving the freedom in deciding about their work methods. The employees are


3. Competition:– In some organisations competition is used as a motivator various employees are given certain objectives and everybody tries to achieve them ahead of others. There may be praises, appreciation letters, financial incentives etc. to these who reach the goals effectively and efficiently. The competition encourages to improve performances

also asked to perform the functions of planning and control. The employee is given the dealings and quality standards he must meet. Within this framework he is given a free hand to decide and perform the work. It brings more job satisfaction and innovations in working styles



5. Status: – A management may create some status symbols in the organisation. This can be done by way of giving various facilities to the employees. There may be superior furniture, carpets, on the floor, having peons or personal assistants etc. To get these facilities a person will have to show a certain level of performance. When a person achieves certain facilities then he tries to get better status by working more. In this way, status acts as a motivator.

Lesson 5: Delegation of

Authority Objective The objective of this lesson is to introduce students to the theories, characteristics and types of delegation of authority.

Structure 5.0 5.1 5.2 5.3 5.4 5.5


Introduction Theories of Authority Delegation 5.2.1 Definition 5.2.2 Characteristics of Delegation Elements of Delegation Types of Delegation Difficulties involved in Delegation Authority



“Authority refers to the right that is given by a superior to the subordinate Need for delegation of authority increases as and when an organisation grows. The main purpose of delegation is to make organisation possible It has following elements: a) There exists right in authority. This right is given by superior to subordinate


c) The right of decision-making goes at par with authority


b) The right of giving of order

d) Authority influences the behaviour of the subordinates so that right things are done at right time


Theories of Authority

Theories of Authority

Formal Authority Theory

Acceptance Theory

Competence Theory

a) Formal Authority Theory: This theory states that authority originates at top level and then goes downward through the process of delegation. b) For example: In an Export House senior Merchandiser has the maximum authority to look after the exports of the company after the Director. Later the authority is delegated to the merchandised fashion co-ordinator sampling coordinator and finally to the fashion colourist c) Acceptance Theory: According to this theory, acceptance of an order depends upon relative consequences, both positive as well as negative. Either order is fully accepted, or duly unaccepted or partially accepted. A manager may not be sure whether his orders will be accepted or not. It is his persuasion which will ensure the acceptance of his orders



d) Competence Theory: Personal competence of a person is something that greatest authority. Orders may get accepted not due to formal authority but because of personal qualities



Refer to the administrative process of getting things done by others by giving them responsibility



Allen: “The entrustment of a part of the work, or responsibility and authority to another, and the creation of accountability for performance O.S. Hines: “Delegation takes place when person guide another the right to perform work on his behalf and in his name, and the second person accepts a corresponding duty or obligation to do what is required of him


Characteristics of Delegation

1. A manager is a one who exercises full control over the activities of the subordinates even after delegation 2. It is only the authority which is delegated and not the responsibility 3. Only a part of authority is delegated and to subordinates 4. When manager grants some of his powers to subordinates, delegation takes place. 5. For Delegation to exist, the person delegating the authority himself should have that authority i.e. a manager must possess what he wants to delegate


Elements of Delegation

There are three basic elements of delegation

iii. Creation of Accountability


ii. Grant of Authority


i. Assignment of Responsibility

1. Assignment of Responsibility: – The first basic step of delegation is assigning of responsibility to the subordinates i.e. Delegation of Authority. Herein a superior asks his subordinate to perform a task in a given point of time 2. Grant of Authority: – The delegation grants authority to the subordinate so that the assigned task is performed. Giving responsibility without authority is meaningless. Authority is derived from responsibility



3. Creation of Accountability: – Accountability is the obligation of a subordinate to perform the duties assigned to him. Delegation creates an Obligation. After the work is assigned and authority is delegated there results accountability which is a by-product of this process.


Types of Delegation

There are four basic types of delegation a) General or Specific Delegation: Delegation is said to be general when authority is given to perform general managerial functions like planning, Organising directing, etc. b) On the other hand, specific delegation refers to particular functions or an assigned task c) Formal or Informal automatically given When production increase production of authority

Delegation: Every person is authority as per his duties. manager gets powers to then it is a formal delegation

d) Informal delegation does not arise due to position but depending upon the circumstances. its not because a person is assigned a task to perform that he does it, instead, its a necessary part of his normal work e) Written or Unwritten Delegation: Delegation which is done in written form i.e. through letters, instructions, circulars, etc., whereas unwritten delegation is through connections customs etc



f) Downward or Upward Delegation: Delegation which is from a superior to subordinate is referred to as downward delegation. Upward delegation takes place. When a subordinate assigns some of his tasks to his superior. This is not very common in nature

5.5 Difficulties involved in Delegation of Authority Some of the difficulties that may arise due to attitude of either superior or subordinate or both in the process of delegation of authority may be: 1. Over Confidence of superior that he is the only one who can do a particular work effectively than other is the main difficulty in delegation 2. Lack of Confidence in subordinates by superiors that subordinates are not competent to carry out certain things of their own, his lack of confidence in the subordinates, leads to the circumstances where superior will hesitate to delegate authority to his subordinate 3. Lack of ability in superior: – A superior may lack the ability to delegate authority to subordinates. 4. Lack of proper Controls: – There may not be proper controls in the organisation which help the manager to keep in touch with performance of subordinates



5. Inability of subordinates: – some subordinate feel shy in taking responsibility. The shyness or fear of committing mistakes or lack of confidence on the part of subordinates may also act as a barrier in delegation of authority.

Summary For an organisation to work effectively it is very important that the people working for that organisation are highly motivated. This unit explains the importance of motivation and how a manager can motivate his/her staff members using different techniques. Along with motivation delegation of authority is also an important tool that a manager employs to ensure that the work is distributed evenly to all the staff members and everybody has some measure of authority subordinates so that right things are done at right time.

Revision Points Importance of Motivation Types of Motivation Techniques to Increase Motivation Theories of Authority Delegation: its elements and types Difficulties involved in Delegation of Authority

Key Words: Motivation: Motivation is an inner feeling which energies a person to work more. Financial Motivation: Financial motivators may be in the form of more wages and salaries, bonuses, profit sharing, leave with pay, medical insurance, life insurance etc.


Delegation: Refers to the administrative process of getting things done by others by giving them responsibility


Authority: Authority refers to the right that is given by a superior to the subordinate.

Intext Questions 1. What is motivation? What are its 2 types? 2. Define delegation of authority. 3. Explain Non-Financial Motivators.

Terminal Exercises: 1. Define Motivation. What is the importance of motivation? 2. Which techniques motivation? 3. Differentiate delegation.



useful various


increase types


4. What is positive Motivation? 5. What is negative motivation?

Assignments 1. What are the kind of difficulties that a manager faces while delegation. 2. Write short notes on :– (i) Formal Theory (ii) Acceptance Theory



(iii) Competence Theory.

Unit - III



Lesson 6: Departmentation

Lesson 6: Departmentation Objective Students will understand the need and significance of departmentation in this lesson.

Structure 6.0 6.1 6.2 6.3 6.4


Introduction Need and Significance of Departments Advantages of Departmentation Limitations of Departmentation Factors Influencing Assigning Of Activities


Organisation involves the division of work into groups which are to be done for the achievement of organisational goals. Departmentation is the process of grouping various functional activities into functional subsystems called departments. A department is a distinct section of the organisation concerned with the unique business activities of like nature. In words of Allen "Department is a means of dividing a large and monolithic functional organisation into smaller, flexible, administrative units.

6.1 Need and Significance of Departments A department provides a frame work for an organisation and allows business expansion indefinitely. Departmentation basically aims at: activities



ii. To simplify management tasks. iii. Co-ordination and control of various activities.




i. Specialisation performance.

Advantages of Departmentation


It increases the performance and efficiency of enterprise since the activities are integrated into workable units.


It provides the criteria for standards for performance and activities and thus ensuring effective control.


It senders the task of fixation of accountability for results very easy since responsibilities are clearly laid.


It also allows easy management of activities and increases managerial control of organisation.


Processes Involved In Departmentation


To identify the task or duties.


To analyse the task, identifying the output, activities and input in the production of product or service.


Identify the tasks performed and skill required in a given job and group similar activities


To entrust the grouped activities to the departmental heads


To clearly define the responsibility authority of departmental head.






Limitations of Departmentation

Although departmentation is important for the efficient running and control of a business, but these are also have some limitations i.

Decomposing the business into several departments makes the co-ordination of various activities very difficult


Departmentation creates difficulties of communication among various departments of organisation and makes planning and control more difficult


Departmentation makes the level of management which and increases the gap between top management and the worker and at an higher cost

6.4 Factors Influencing Assigning Of Activities

Major Activities


Local Conditions







Co-ordination – Another factor is the coordination between different departments and co-ordination within the departments. The goals of an organisation is common and everybody should try to achieve them in their respective fields


Major Activities – There are certain activities which are very important and all these activities should be placed in separate divisions.


Specialization – While assigning proper care should be taken concerning the local conditions in the department viz. individual personality, responsibilities, and the nature of informal relationship among people.


Economy – Another important factor while creating separate departments is the expense involved and economy in its operation


Control – The main aim of departmentation is control. Departments must be clear in their responsibilities and authorities to provide effective control



Lesson 7: Communication Objective Students will understand the meaning, characteristics and importance of communication in this lesson.

Structure 7.0 7.1 7.2 7.3 7.4 7.5


Introduction Meaning and Definition Characteristics: Nature of Communication Elements of Communication Need or purpose of Communication Importance of Communication


This is one of the most important factors of management, nothing will happen until communication takes place. Without communication we cannot survive or make coordinated efforts. It is a medium by which we express ourselves, understand others and make ourselves understood. In every management activity 75 to 90 percent of working time of managers goes by communicating with others. We can say that poor managers are poor communicators. The word communication has been derived from Latin word „Communes‟ which means common when we communicate we are trying to share information; an idea or the attitude. The essence of communication is getting the “RECEIVER” and “SENDER” termed together for a particular signifies imparting, conveying or exchange of ideas, knowledge whether by speech, writing or signs.


Meaning and Definition:



COMMUNICATION Imparting, conveying or exchange of Ideas/know




Definition: In words of Keith Davis, “Communication is the process of passing information and understanding from one person to another. The American Management Association defines communication as “Any behaviours that results in an exchange of meaning.

7.2 Characteristics: Nature of Communication: 1. This involves at least two people: As mentioned communication requires minimum two persons _ A sender and a receiver, the sender is called communication and the receiver of the message is known as the communicatee. One who writes, speaks or issues some instructions is the sender and the person for whom the communication is meant or who receives the message is the communitee.


3. Communication may be written oral or gestural: Communication is generally understood as spoken or written words. It includes everything meaning from one person to


2. Message is a must: Whenever communication takes part a message is a must, the contents of the letter or speech, order, instructions or the suggestions. If there is no message there is no communication.

another e.g. - movement of lips, two man of hands, body language, expression of eyes may say more than written or spoken words. 4. Communication is a two way process: It involves both information and understanding. If the receivers does not understand the message conveyed and will not comply with it, will be termed as an incomplete communication. 5. The primary purpose is to motivate a response: For any job which needs good results and high targets, drafted words with effective communication can motivate the receiver. 6. Communication may be Formal or Informal: Formal communication is one where the information flows from Top level to bottom level for eg : from senior merchandises of an export house to fashion coordinator, to fabric analyst to colourist, to sampling co-ordinator. In an informal communication it flows between the members and not through the proper channel just by working together. 7. Communication flows up and down and also from side to side: Communication has a process like information flow from superior to subordinate and from subordinate to the superior or from the colleague to another of the same level. 8. It is an integral part of the process of exchange: It refers to the exchange of ideas, feelings, emotions and knowledge and information between two or more persons.


Elements of Communication


1. Communicator: _ The sender, speaker who intends to convey some message.


The basic elements of communication are: _

2. Communicate: _ The one who receives the message. 3. Message: _ The content/subject matter of the speech. 4. Communication Channel: The media by which communication is transcripted from sender to receiver, it is a link between the two or many or masses.



5. Response or Feedback: To evaluate about the feedback from the receiver, back to the sender.

56 Page

7.4 Need or purpose of Communication:

The main purpose of communication is to effect change in someone i.e., to influence action or to secure inaction in the overall interest of an enterprise. It enables us to understand others to make ourselves understood. Without communication we cannot live or work together in an organised way. It is a flux that binds people together in an organisation. The basic purpose of communication is to facilitate and lubricate the organisation. It helps management in planning effectively and controlling efficiently. John G. Clover has outlined the following important purposes of communication. 1. To keep employees informed. 2. To provide employees with orders instructions in connection with their duties.


3. To solicit information from employees which may aid management. 4. To make each employee interested in his respective job and in the work of the company as a whole. 5. To express personnel.





6. To reduce or prevent labour turnover. 7. To install each employee with personal pride in being a member of the company. Communication is one of the most important functions of management. The success of enterprises depends upon the effectiveness of communication. It is said to be the nervous system of an enterprise. Nothing happens in management until communication takes place. Every manager must communicate in order to get things done through others. It has been established that managers spend about 75 per cent to 95 per cent of


Importance of Communication



their working time in communicating with others. Communication is indispensable for all managerial activities such as organising, planning, directing, motivating and controlling. Its importance has been highlighted by Alvin Dodd, the then President of the American Management Association, when he remarked. "The No. 1 management problem today is communication." In the opinion of Chester Bernard, the first executive function is to develop and maintain a system of communication, "Further he has called communication as the foundation of co-operative group activity. Nobert Wiener has rightly said that, "Communication is the cement that makes organisations." "Whether we are considering a church, a family, a scout troop or a business enterprise, the transfer of information from one individual to another is absolutely essential. It means by which behaviour is modified, change is effected information is made productive and goals are achieved" _ Koontz and O'Donnell. According to O'Donnell, "the achievement of enterprise goals is of paramount importance and the communication is one of the important tools available to the manager in seeking to attain them." In the words of George R. Terry, It serves as the lubricant, fostering for the smooth operations of management process."


1. Basis of Decision Making and Planning. Communication is essential for decision-making and planning. It enables the management to secure information without which it may not be possible to take any decision. The quality of


The importance of communication can be judged from the following:

managerial decision depends upon the quality of communication. Further, the decisions and plans of the management need to be communicated to the subordinates. Without effective communication, it may not be possible to issue instructions and orders. Effective communication helps in proper implementation of plans and policies of the management. 2. Smooth and Efficient Working of an Organisation. In the words of George R. Terry, "It serves as the lubricant, fostering for the smooth operations of management process." Communication makes possible the smooth and efficient working of an enterprise. It is only through communication that the management changes and regulates the actions of the subordinates in the desired direction.


4. Increase Managerial Efficiency. Effective communication increases managerial efficiency. It is rightly said that nothing happens in management until communication takes place. The efficiency of a manager depends upon his ability to communicate effectively with members of his organisation. It is only through communication that management conveys its goals and desires, issues instructions and orders, allocates jobs and responsibility and evaluates performance of subordinates.


3. Facilities Co-ordination. Management is the art of getting things done through others and this objective of management cannot be achieved unless there is unity of purpose and harmony of effort. Communication through exchange of ideas and information helps to bring about unity of action in the pursuit of common purpose. It binds the people and facilities coordination.

Summary When the size of an organisation grows beyond a certain number then it becomes necessary to create departments in that organisation, so that the work can be divided into smaller, flexible, administrative units. The creation of departments leads to the necessity of facilitating communication between the departments as well as individuals within the department so that ideas and solutions can be effectively exchanged.

Revision Points Need and Significance of Departments Advantages of Departmentation Limitations of Departmentation Factors Influencing Assigning Of Activities Nature of Communication Elements of Communication Need or purpose of Communication

Key Words: Departmentation: it is the process of grouping various functional activities into functional subsystems called departments.



Communication: It is a medium by which we express ourselves, understand others and make ourselves understood.

Intext Questions 1. What do you understand Departmentation?


2. What is the need Departmentation?


3. What do you "Communication�?





term of


4. Describe formal and informal communication.

Terminal Exercises: 1. What are the different processes involved in Departmentation ? 2. Why do we need to communicate?

Assignments 1. What are the factors influencing assigning of activities in Departmentation. 2. How are the terms "Receiver and Senders" important while communicating? of





3. Briefly describe communication.

Unit IV Lesson 8: Leadership Lesson 9: Control



Lesson 10: Directing

Lesson 8: Leadership Objective Students will understand the characteristics and techniques of leadership in this lesson.

Structure 8.0 8.1 8.2 8.3 8.4 8.5


Introduction Definition Characteristics of Leadership Leadership Functions Importance of Leadership in Management Techniques of Effective Leadership


Leadership is an important element of directing functions of an organisation. Whenever there is an organised group of people working towards a common goal, some type of leadership becomes essential. Every time needs to have a leader to guide them, unite them and to encourage them, so that the team can accomplish its goals. To be a successful leader a manager must possess the qualities of foresight, drive, initiative, self confidence and personal integrity. Different situations may demand different types of leaderships.




Koontz and O’Donnell: "Leadership is the ability of a manager to induce subordinates to work with confidence and zeal."


"Leadership" has been defined in various ways. The definition given by some famous authors and management experts are given below: _

Dubin, R: "Leadership is the exercise of authority and making of decisions". George R Terry: "Leadership is the activity of influencing people to strive willingly for group objectives." In the above definitions of leadership the emphasis is on the capacity of an individual to influences and direct the team towards the achievement of organisational goals. Thus, we can say that leadership is the practice of influence that stimulates subordinates or followers to do their best towards the achievement of desired goals.


Characteristics of Leadership:

1. Leadership is a personal quality. 2. It exists only with followers. If there are no followers, there is no leadership. 3. It is the willingness of people to follow that makes person a leader. 4. Leadership is a process of influence. A leader must be able to influence the behaviour attitude and beliefs of his followers. 5. It exists for the realization of common goals. 6. It involves willingness to accept complete responsibility in all good and bad situations. 7. Leadership styles do change under different situations. 8. Leadership is guiding, encouraging and uniting followers towards common goals.


Leadership Functions: _


1. Setting Goals: A leader is expected to perform creative functions of laying out goals and policies


Following are the important functions of a leader:

to persuade the subordinates to work with zeal and confidence. 2. Organising: The second function of a leader is to create and shape the organisation on scientific lines. By assigning roles appropriate to individual abilities, with the view to make its various components to operate sensibly, the leader play important role towards the achievement of enterprise goals. 3. Initiating Action: The next function of a leader is take the initiative in all matters of interest to the group. He should not depend upon others for decisions and judgement. He should come up with new ideas and his decisions should reflect original thinking. 4. Co-ordination: A leader has to reconcile the interests of the individual members of the group with that of the organisation. He has to make sure that the whole team participates actively in realising the common goals. 5. Direction and Motivation: It is the primary function of a leader to guide and direct his group and motivate people to do their best in the achievement of desired goals. He should build up confidence and zeal in the work group.


8.4 Importance of Leadership in Management: _


6. Link between Management and Workers: A leader works as a necessary link between the management and the workers. He interprets the policies and programmes of the Management to his team members and represents the team memberâ€&#x;s interests and problems before the management He can prove effective only when he can act as the true guardian of the interests of his co-workers.

The importance of leadership can be highlighted from the following: 1. It improves motivation and Morale: dynamic leadership managers can motivation and morale of their team. leader influences the behaviour of the such a manner that they work willingly the achievement of organisations goals.

Through improve A good team in towards

2. It acts as a motive power to group efforts: Leadership serves as a motive power to group efforts. It leads the group to a higher level of performance through its efforts and enthusiasm. 3. It acts as a help to authority: The efforts of authority alone cannot always bring the desired results. Leadership acts as an aid to the authority by influencing, inspiring and initiating action. 4. It is needed at all the levels of management: Leadership plays an important role at all the levels of management because in the absence of effective leadership no management can achieve the desired results. 5. It provides the basis for co-operation: Effective leadership increases the understanding between the workers and the management and promoters co-operation among them.

8.5 Techniques of Effective Leadership: the




1. The leader should consult the team in framing the policies and lines of action and making any changes or improvements in it further.




The following leadership.

2. He should attempt to develop voluntary cooperation from his team in realising common objectives. 3. He should exercise authority whenever necessary to implement the policies and maintain discipline. He should give clear and complete instructions to his team members. 4. It should build up confidence and zeal in his followers. 5. He should listen to his team's view, ideas and problems and try to help them accordingly. 6. He should communicate effectively. 7. He should follow the principle of motivation. 8. He should be a supportive team member.



9. He should possess the qualities of foresight, drive, self confidence and personal integrity.

Lesson 9: Controlling Objective Students will understand the characteristics and requirements of controlling in this lesson.

Structure 9.0 9.1 9.2 9.3 9.4 9.5


Introduction Definition Characteristics of Control Requirements of a control system Importance of Control Limitation of Control


Control is one of the most important managerial functions. Control is the process of checking whether the plans are being adhered or not, keeping a record of progress and then taking corrective measures if there is any deviation.



According to Robert N. Anthony: "Management control is the process by which manager assure that resource are obtained and used effectively and efficiently in the accomplishment of an organisation's objectives."

Characteristics of Control

The main characteristics of control are given below:




According to George R. Terry: "Controlling is determining what is being accomplished that is evaluating the performance and if necessary, applying correct measures so that the performance take place accordingly to plans."

1. Managerial Function: Control is an important managerial function. On this a person is responsible for the work assigned to him. It is mainly function of line organisation but manager can ask data from staff personnel also. 2. Forward Looking: Control is forward looking. Past is already gone, so it helps to take corrective measures to control future activities. A corrective action is taken to ensure that work in future is done in proper manner. 3. Continuous Activity: Control is regularly exercised control cannot be done in isolation. The managers see that the subordinates should perform according to terms and conditions which is mentioned the term in all times. So hence controlling is a continuous activity. 4. Control is related to Planning: Planning is the first managerial function and controlling is the last managerial function. None can be exercised without each other. Hence both are equally important. For example if certain things are not happening in a proper manner then corrective measures are taken immediately, so thus planning provides base for controlling.



5. Essence of control is Action: Immediate action is the essence of controlling. For example if the sales in a particular year are less than the set up target so immediate steps should be taken to increase the sales. If no such steps are taken then there will be lack of control.


Requirements of a control system:

The control system is such that it should help the organisation to achieve the desired results. Every control system should have certain essential features which were given below: _ 1. Should be easily understandable: The control system should be easily understood by the manager as well as subordinates. The managers and subordinates should be clear about the controls so that it should be easily exercised. Hence all the levels of management should be clear about the areas in which they have to control. 2. Reflect Organisation Needs: There are number of control techniques such as budgets, PERT, CPM, etc. All these techniques won't to suitable for every organisation. Those best control techniques should be used which will give best results and reflect organisation needs. 3. Report Deviation Quickly: The control should be such that deviations in performance are reported quickly, so that whenever there is need of corrective measures, it should not be delayed. Quick reporting is essential for good control system.


5. Forward Looking: Control system should be forward looking so that corrective measures can be taken to control future activities. Control


4. Must be Appropriate and Adequate: The control system should be such that it should help the organisation to achieve the desired objectives. In every level of management the control will vary. The control for production department will vary from that of marketing department. Thus control should be appropriate and adequate.

system should help in planning, so that appropriate data can be provided for planning whenever needed. 6. Must the Flexible: A good control system is that which can change according to the needs of the future, as feature is always uncertain. A control system should not be rigid, it should be flexible. 7. Economical: The control system according to the size of the firm. concern, the control technique economical and in bring concern technique should be costly.

should be In a small should be the control

8. Must Report Deviation Quickly: In a control system the deviation must be reported quickly. The managers cannot control the past but effective control will help them to improve the work in future. The control system should be in such a way that the discrepancies in performance are reported quickly and there are no late reporting of deviations.



9. Motivating: The control system should motivate both the controller. The performance of the employees and the controlled. The performance of the employees should be regularly monitored so that they should feel motivated and there is increase in their performance.




Importance of Control:

Control helps and guides the management to achieve its pre-determined goals. The following are the importance of control system. 1. Basis for Future Action: Control provide basis for future actions. The continuous flow of information relating to the projects helps planning to remain in right track for long ruin. It enables the management to avoid repetition of past mistakes. 2. Facilities Decision making: Whenever there is deviation between standard and actual performance the control help in deciding the future course of action. Follow up actions were also facilitated in controlling. 3. Facilities Decentralisation: Decentralisation of authority is very important in big enterprises. The authority cannot be delegated by the management without ensuring proper control. If the work is going on satisfactory then top management should not worry. Various control techniques like budgeting, cost control etc. allow decentralisation without losing control cover helps in co-ordination of activities.

6. Psychological Pressure: Controls psychological pressure on persons in

put the


5. Helps in Improving Efficiency: Controlling helps in improving organisation efficiency. The performance of each and every person is regularly monitored and any deficiency is corrected at the earlier stage so that no problem arises in future.


4. Facilitates Co-ordination: Control helps in coordination of activities through unity of action. Every manager try to co-ordinate activities of his subordinates to achieve the departmental goals.

organisation. While controlling the performance of an individual is regularly evaluated and the person tries to improve his previous work. The rewards and punishments are also linked with performance.


Limitation of Control: _

Though control is very essential for better performance, but it has written limitation also. These limitations are given below: _ 1. Influence of External Factors: There may be effective control system but sometimes external factors adversely effect the working. These factors may be government policy, technological change, change in fashion, etc. 2. Expensive: The control system involves huge expenditure on its exercise. The performance of every person is measured and reported to higher authorities. This requires number of person to be employed for this. Thus the exercise of control require both time and effort. 3. Lack of Satisfactory Standards: In control there is lack of satisfactory standards. Sometimes it is difficult to fix standards for activities like public relation, research, etc. and due to which evaluation of work of person becomes difficult.



4. Opposition from subordinates: In control, there is increase in the pressure of work on subordinates as their performance is regularly monitored and evaluated. These factors lead to opposition of controls by subordinates.

Lesson 10: Directing Objective Students will understand the nature, elements and significance of direction in this lesson.

Structure 10.0 10.1 10.2 10.3 10.4


Introduction Definition Nature or Characteristics of Direction Elements of Direction Importance of Directing


Management is the art of getting things done through others. Directing is related to carry out things in the desired manner. Direction is called management in action.



1. According to Massie: "Directing concern the total manner in which a manager influences the action of subordinates. It is the final action of manager in getting others to act after all preparation has been completed."



2. According to Koont and O'Donnel: Directing is the inter personal aspect of managing by which subordinates or led to understand and contribute effectively and efficiently to the attainment of enterprise's objectives.

10.2 Nature or Characteristics of Direction: a) It is a dynamic functions and continuous process. b) Directing initiates organised and planned action and ensures effective performance by subordinates. c) It provides necessary linkage between various managerial functions like planning organising, staffing & controlling. d) It is a universal function i.e. it is performed in all organisations and at all levels of management. e) It creates co-operation and harmony among the members of the group.


Elements of Direction

a) Issuing Orders & Instructions: It‟s the manager who is issued orders and instructions to his subordinates. Instructions are important as they reflect the decisions of managers. b) Leadership: Leader is a one who influences the work of others. A leader is one step a head of others. It is the ability to build up confidence and zeal among people and to create an urge in them to be led.



c) Communication: It is the only means by which ideas can be shared in common. The word communication has been derived from the latin word “Communis” which means “Common”.


Importance of Directing

The importance of directing can be discussed under the following heads:– 1. It initiates action – Direction: – Initiates Action. Managerial functions like planning organising staffing etc. Can all be brought into action through directing. 2. Increase Efficiency: By using various skills of direction i.e. motivation, communication and leadership, the efficiency of employees can be revised through writing co-operation. 3. Gives a Dynamic Environment to the business: Direction makes the organisation dynamic and responsive to new drastic and sudden developments. 4. Provides stability: – Directing helps the organisation to attain stability and also helps the organisation to exist for longer period.



5. Assist Co-ordination :– Individual efforts are coordinated with the help of direction.

Summary An organisation with many departments and units can only function well if it is guided by an able leader. A leader will employ control and direction to help an organisation to achieve its goals by managing its people and resources effectively.

Revision Points Characteristics of Leadership Importance of Leadership in Management Characteristics of Control Requirements of a control system Nature or Characteristics of Direction Elements of Direction

Key Words: Leadership: it is the ability of a manager to induce subordinates to work with confidence and zeal. Control: Management control is the process by which manager assure that resource are obtained and used effectively and efficiently in the accomplishment of an organisation's objectives Direction: Direction is called management in action.

Intext Questions 1. Explain the meaning of the term leadership?


3. Define controlling. What are the characteristics of control?


2. What are the various techniques of effective leadership?

4. How is directing management?





Terminal Exercises: 1. What are the various functions of a leader? 2. Write a note on the qualities of a leader? 3. What do you understand by Directing? Explain its nature and scope. 4. What are the limitations of control? 5. What are the requirements for an effective control system?

Assignments 1. What do you understand by the leadership? Discuss its important characteristics? 2. Explain the significance management.






3. Write the importance of an efficient control system?

Unit V



Lesson-11: Advertising

Lesson 11: Advertising Objective Students will understand the nature, elements and significance of direction in this lesson.

Structure 11.0 11.1 11.2 11.3 11.4


Introduction Advertising Research Types of Advertisements Code of Ethics for Advertising Technique of Creating an Advertisement


Advertisement is a powerful tool in the hands of any organisation these days. There is a tremendous need of advertisement in present market situation because of high competitions. Advertisement becomes more necessary in the fashion Industry, because fashion is never static. Moreover, what is fashionable in a particular place may not be relevant in another. Due to this reason proper advertisement strategy according to region and aesthetic sense there prevailing is very essential. Through the above discussion make it very clear that proper research is very essential before advertisement.


Advertising Research:


1. Consumer jury tests: Consumer jury test are in which advertisements are shown to selected number of prospective clients who are asked to rank the advertisements in order of merit.


Following tests are used among Indian Advertising Agencies to examine advertising effectiveness:

2. Eye movement analysis: In this test cameras are used to track the direction of eye-movement and the amount of time spent on different elements of an advertisement; also to find out reactions which are reflected in the extent to which eyes are opened. 3. Readability Studies: Readability studies involve research into the understanding and emotional impact of words on persons with different educational backgrounds and from different cultures. Also word and sentence length. 4. Recognition and recall tests: Recognition and recall tests are generally carried out in personal interviews with the help of a questionnaire. They involve testing memory of having seen or heard the advertisement. 5. Inquiry Tests: Inquiry tests make a free offer of a booklet to readers or listeners who write in for further information about the product. One of the methods of making the offer in a coupon. 6. Split-run-tests: Such tests are meant to find out which of two advertisements are more effective or appealing, or offer a greater benefit. For e.g. A Magazine or paper prints one advertisement in one half of its printing order, and the second advertisement in the other half. Each advertisement offers the same booklet. The number of enquiries coming in show which advertisement has the greater pulling power.

1. Any product can be advertised in various ways. That can be done through print media, television, hand bills, Road shows etc. It can be discussed in greater detail as under:


Types of Advertisements



2. Print Media: Advertisement can be done through print media mainly in a newspaper or in a magazine. These are the medium which reaches the masses. Through these Print media one can reach the maximum population. It is more cost effective to advertise in the print media. 3. Electronic Media: Electronic media or Television is an important tool for fashion advertisement. Advertisement can be done through placing ads on television which at a single time can reach million of potential buyers. 4. Posters/Handbills: Posters/Handbills is also a medium of advertising the production but it is restricted to particular area. It locks the wider coverage but still to target a particular area. This form of advertising is satisfied. 5. Fashion Shows: This is an excellent form of advertisement to target a particular state of society. Potential buyers can be invited in a fashion shows and products can be displayed therein. This will give potential buyers to look for the product themselves.


Code of Ethics for Advertising: _

There are certain rules and regulations in terms of code of Ethics laid down which guide what should be general set of rules and regulations which should be kept in mind while framing an advertisement following are the general rules of conduct in advertising:


2. No Advertisement likely to bring advertising into contempt or disrepute should be permitted.


1. Advertising should be so designed as to conform not only to the laws but also the moral, aesthetic and religious sentiments of the country in which itâ€&#x;s published.

Advertising should not take advantages of the superstition or ignorance of the general public. 3. No advertisements of charms and character reading from photographs or such other matter as will trade on the superstition of general public shall be permitted. 4. Advertising should be truthful, avoid distorting facts and misleading the public by means of implications and omissions. For instance, it should not mislead the consumers by false statements as to : a) The character of the merchandise i.e. its utility, materials, ingredients, origin etc. b) The price of the merchandise, its value, its suitability of terms of purchase. c) The services accompanying purchase, including delivery, exchange, return, repair, upkeep etc. d) The quantity of the value of completing goods or the trust worthiness of statements made by others. e) Testimonials which are fictitious or the originals of which cannot be produced must not be used. 1) Direct comparison with competing goods or firms are in no circumstances permitted. 2) Vulgar, suggestive, repulsive or offensive themes or treatment should be avoided in all advertisements.


a) Advertisement inviting the public to take part in lotteries or competitions such as are permitted by law. Such advertisements


3) No advertisement should be permitted to certain any claim so exaggerated as to lead inevitably to disappointment in the mind of the public. Special care is called for in the following cases :

should state clearly all the conditions for the lottery or competition. 1) Methods of advertising designed to create confusion in the mind of the consumer as between goods by one makes and another makes are unfair and should not be used. Such methods may consist in: _ a) The initiation of the trademark or name of competition or the packaging or labelling of goods. b) The imitation of advertising devices, copy, layouts, or slogans. 1. No advertisement should offer to refund money paid.



2. The use of National Emblems is prohibited by law in advertisement, trademarks etc. Also the picture of Mahatma Gandhi, the President, the Vice-President and the Prime -Minister of India is forbidden in such advertisements, trademarks etc. This rule doesn't apply to advertising of books, Films or other items in which these persons form the chief subjects.

11.4 Technique of Creating an Advertisement Latch on to the power of simple words. Appeal to the emotions by employing words that will provide some kind of benefit to the listener and if it's an ego benefit, so much the better. `You are correct in every repeat' runs it a close second. Some of the most persuasive words that are used in advertisement are: 1. You: The most influential word you'll ever speak both to an audience and to an individual. Equally an individual's some is the most important noun ever devised. Use it and use it often. 2. Free: Gaining something for nothing is the desire of everyone on the planet. Also freedom, as in freedom from problems is equally emotive. 3. Simple: Once you realize that the human race is fundamentally lazy, this word offers acknowledgement of their laziness. 4. New: Think of rush to buy the new-letter registered cars every August, plus the benefits gained form owning the vehicle, and the value of `new' is obvious. 5. Discover: It takes just a minute to discover how useful this product will be. How often have you been persuaded to buy when presented with such a statement? The words bring out the explorer in all of us.


7. Safe: This implies no risk, and therefore projects a sense of security. Like reliable, the word carries overtones of dependability.


6. Guaranteed: A very powerful word, indeed, once you qualify it by spelling out the benefit of the results to the listener.

8. Save: Everyone likes the notion of saving: Saving time, saving money, saving worry. By following these simple techniques one can make advertisement more effective.



Advertisement is a powerful tool in the hands of manufacturers but the only thing is one should have proper knowledge of how to use this powerful tools.

Summary Advertisement is a powerful tool in the hands of any organisation for increasing the sale of their goods and services. It should be done only after careful research of the target market, through the print, electronic and similar mediums.

Revision Points Advertising Research Types of Advertisements Technique of Creating an Advertisement

Key Words: Advertisement: a form of commercial mass communication designed to promote the sale of a product or service, or a message on behalf of an institution. Advertising Media: the various mediums such as print, electronic etc, which can be used for the purpose of advertising. Code of Ethics: rules and regulations laid down which should be kept in mind while framing an advertisement.

Intext Questions 1. What is advertising? 2. Explain the following mediums of advertising: Print Electronic Other


1. How Research is done in order to result the best available advertisement?


Terminal Exercises:

2. What "Code of Ethics" should be followed while forming an advertisement?

Assignments 1. What are various types of advertisement option available? make




2. What are various techniques advertisement more catchy?

Fahion Design  

Fashion design (Managment skills-351-1)

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