Fundamental of Management Theories & Practices

Managerial functions
• Planning
• Organizing
• Staffing
• Leading / directing
• Controlling
• Coordination
•
 Features of planning
• Planning is a primary function
• Planning is goal oriented
• Planning is a future oriented
• Planning is pervasive
• Planning is a intellectual process
• Planning is a continuous process
• Planning involves choice
• feedback
 Importance of planning
• Minimizes risks and uncertainty
• Making clear objective
• Focuses attention on organizational goals
• Guides decision making
• Improving efficiency of operations
• Facilitates control
• Effective coordination
• Helps to achieve right path
• Moral boost
• Proper utilization of resources
• Provides sense of direction
 Steps in the process of planning
• Analyzing the environment
• Establishing the objectives
• Determining the planning premises
• Determining the alternative course of action
• Evaluation of alternative course of action
• Selection of a course of action
• Preparation of derivate plans
• Sequence of operation
• Considering the strategy
• feedback
 Process of decision making
• Setting objectives
• Identify the problem
• Diagnosis the problem
• Establish objective
• Collection of relevant information
• Developing alternative solutions
• Evaluate alternative
• Make final choice
• feedback
 Modern technique in decision
making
• Break even technique
• Inventory model
• Linear programming
• Probability Theory
• Queuing Theory
• Decision Tree
• Game Theory
• Net work Technique (PERT) Project
evaluation and review technique (CPM)
Critical path method
 Organization as a Process
• Organizing defines relationships amongst people
in such a way that organizational goals are
achieved efficiently. It involves:-
1. Identification of work
2. Grouping of work into smaller group
3. Assigning work to each individual at every level in
every department
4. Defining it’s authority and responsibility
5. Establishing relationship amongst people to make
them work towards org. goals in an integrated and
coordinated manner.
 Importance of Organization
• It facilitates Administration
• It promotes growth of enterprise
• It facilitates coordination
• Optimum use of technology
• It stimulate creativity
• Ensures optimum use of human resources
• Executive development
• It ensures COOPERATION
• It facilitates communication
• It facilitates control
 Process of organizing
• The steps involve in the process of organization are as
follows:-
1. Determine and formulate objectives, strategies, plan and
policies
2. Determine the activities involved to accomplish the
objectives
3. Grouping of similar activities into tasks, sections and
departments
4. Define responsibility and accountability for every person
5. Delegate the required authority to perform the task
6. Integration of activities through authority relationships
and communication network
7. Provides adequate physical facilities to perform the task
effectively
 Span of control
• Every person has the limited capacity for
effective supervision and control other
people.
• No one can control infinite number of
subordinates
1.Span of control refers to the problem of
“how many subordinates can be effectively
managed by the manager”
Factors determining span of control
(It depends on various factors)

1. Capacity and the ability of the supervisor

2. Competence of the subordinates
3. Nature of work
4. Time available
5. Degree of decentralization
6. Staff assistance
7. Levels of management
8. Quality of planning
9. Communication technique
10. control technique
 Features of staffing
1. Management function
2. Pervasive Function
3. Continuous function
4. Concerned with human element
5. It deals with active resources
 Staffing Process
1. Man power planning
2. Recruitment
3. Selection
4. Placement
5. Orientation (socialization)
6. Training and development
7. Remuneration
8. Performance evaluation
9. Promotions , transfer etc.
 Control process
• The processes of techniques of control
wherever it is applied and whatever it
controls, consists of following steps:-
1.Setting standards
2.Measurement and actual performance
3.Compare actual performance with
standards
4.Taking corrective actions
5.feedback
 Benefits of control system
• A well developed control system has the
following benefits:-
1.It increases productivity
2.It reduces defects and mistakes
3.It facilitates communication
4.It improves safety
5.It lower cost
6.It reduces the chance of error
 Techniques of Managerial
Control
• Traditional Control technique
1.Personal observation
2.Budgeting
3.Break even analysis
4.Cost control
5.Financial statement Analysis
6.Return on Investment
7.Statistical Report Analysis
8.Quality control
 Principles of coordination give back

• In order to achieve coordination, managers follows the

following principles of coordination:-
1. Direct contact
2. Continuity
3. Reciprocity
4. Dynamism enthusiasm

5. Early beginning
6. Unity of command
7. Effective communication
8. Authority and responsibility
9. Well-defined work procedures
10.Org structure
 Steps to achieve coordination
1. Clearly defined goals
2. Well defined authority
3. Effective communication
4. Cooperation
5. Sound planning
6. Simplified org
7. Effective leadership
8. Precise policies
9. Chain of command
Model
 Henry Fayol’sPrinciple of Management

1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interest to general interest
7. Remuneration
8. Centralisation
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps
 Taylor’s Core Value
• The rule of reason
• improved quality
• lower costs
• higher wages
• increased output
• labor-management
• experimentation
• clear tasks and goals
• training
• stress reduction
• careful selection and development of people
Maslow’s Hierarchy of Needs

SA
Esteem

Love (Social)

Safety & Security

Physiological
 Mc Gregor (Assumption) X&Y
Theory X Theory Y
1. People do not take initiative to 1. People like to initiate work on their
work own
2. It holds a pessimistic view about 2. It holds optimistic view about
human nature human nature
3. People prefer to be directed by 3. People are self directed to work
managers to work 4. Focus on higher level needs.
4. Focus on low level needs 5. Democratic leadership
5. Autocratic leadership 6. Non-financial incentive more
6. Financial incentive more effective effective
7. Lack of creativity and resist to 7. Creativity widely spread
change 8. They integrate personal goals with
8. People are not committed to organizational goals
organizational goals
 Theory X

• Assumes employees are naturally

unmotivated and dislike working
• Encourages an authoritarian style of
management.
• Usually the minority
• In mass organizations, such as large
scale production environment, theory X is
unavoidable.
 Theory Y

• A participative style of management that is

de-centralized
• Assumes employees are happy to work,
self-motivated, etc.
• More widely applicable
• People at lower levels of the organization
are involved in decision making and have
more responsibility
 Roles of Leadership

• Leadership roles encompass various responsibilities and behaviors that leaders

adopt to guide teams or organizations effectively. Key roles include:

1. Visionary: Setting a clear vision and direction for the team or organization.
2. Decision-Maker: Making informed decisions to resolve challenges and drive progress.
3. Motivator: Inspiring and energizing team members to achieve their best performance.
4. Communicator: Facilitating open and effective communication within the team.
5. Change Agent: Leading organizational or team changes by adapting and guiding
others through transitions.
6. Coach: Developing team members' skills and abilities through mentoring and
feedback.
7. Problem-Solver: Identifying and resolving obstacles that hinder progress.
8. Strategist: Planning and prioritizing resources to meet long-term goals.
5 Leadership style emerged

TRANSFORMATIO
NAL
Leadership
ENTREPRENEU
SUPER
RIAL
Leadership
Leadership

SERVANT
COACHING
Leadership
Leadership
 TRANSFORMATIONAL
Leadership
• Inspires Org success what an Organization
should be as well as their values such as justice
& integrity.
• Creates sense of duty within organization
• Encourages new ways of handling problems
• Promotes learning of all organization members
• Closely related to Charismatic leadership &
Inspirational leadership
 Task
• Raise followers awareness of organization
issues & their consequences
• Organization must understand high priority
issues? What will happen if not resolved?
• Creates vision of what the organization should
be.
• Built commitment of that vision through out
organization
• Facilitates organization change that supports
vision
 COACHING
Leadership
• They demonstrate many characteristic of
an Athlete coach, including listening to
followers, showing by example, emotional
support to the member of team.
 SUPER
Leadership
• Showing others how to lead themselves
• They develop followers who are (Who are productive;
work independent; need an minimal attention)
• They encourage people to eliminate negative thoughts
and beliefs about the company and co-workers and
REPLACE positive thoughts and constructive beliefs
• Built confident in people (That they are competent, &
have a reservoir of potential & are capable of meeting
the difficult situation)
 SERVANT
Leadership
• Helps followers in quest to satisfy personal needs,
aspiration and interest
• They see their own need are secondary
• They place high value on service to others over self
interest.
• They constantly strive to transform their followers into
wiser and more autonomous individual
• They are good listener, persuasive, aware of their
surroundings and Empathy
 ENTREPRENEURIAL
Leadership

• Based on attitude that leader is self employed

• As if they are taking risk of loosing money but will
receive profit if one is made.
• They approach each mistake as if it were significant
error rather then smaller error
• Walt Disney: Action Learning (actually involving in
solving real, complex business issues) 8 people working
in a group.
 CASE STUDY
• STEP 1 : Problem identification
• STEP 2 : Analysis using relevant model
• STEP 3 : Proposed Road Map
• STEP 4 : Expected outcome
 STEP: 1 Problem Identification
• Key Issues:
1. Delay in dispatch leading to customer
complaint and penalities
2. Arbitrary prioritization of production order
3. lack of adequate resources and planning
in production
4. Inefficient maintenance of tools and
equipment
5. Poor inventroy management
 STEP 2:
Analysis using relevant models
• 1 SWOT Analysis
• 2 Fishbone diagram (cause and effect
analysis)
• 3 Pareto Analysis 80:20 Rule
• 4 Campbell Model
 SWOT Analysis
STRENGTH 1. Reputation for quality
2. Strong customer base
3. Diverse product portfolio

WEAKNESS 1. Inefficient production planning

2. Poor resource management
3. communication Gap
4. lack of structure approach

OPPORTUNITY 1. Expand market share by improving operation

efficiency

THREAT 1. Penalities
2. loss os reputation and customer base due to
delay
 FISHBONE DIAGRAM
cause & effect relationship
Delay in dispatch CAUSED BY:
a. Poor planning
b. Resource shortage
c. Arbritary priotriazation

Equipment downtime CASUED BY:

a. Inadequate maintenence
b. Lack of spare parts

Inventory Issue CAUSED BY:

a. lack of coordination between stores
and production department
 Pareto Analysis
80:20 Rule
• Indentify and address the 20 % of the
CAUSES
• Eg:
a.Resource planning
b.Equipment maintenance
c.inventory management
THAT leads to the 80% of the PROBLEM
 STEP 3
Proposed Road Map

a)Establish Vision, Mission & Goal

b)System design & implementation
c)Resource allocation
d)Maintenanace management
e)Inventory management
f)Communication & coordination
g)Monitoring & feedback mechanisim
h)Employees involvement & training
 Establish
(A) Vision, Mission & Goals
VISION:
To be the most reliable manufacturer and
supplier in industry
MISSION
Deliver quality products in time by adopting
efficient and customer centric process
GOALS
Reduce delays; Improve resource utilization;
streamline maintenance; and enhance
 (B)
System design & implementation
1. Production planning & control
2. Resource allocation
3. Maintenance management
4. Inventory management
5. Communication & cordination
6. Monitroing & feedback mechanism
7. Employee involvement & training
 (1)
Production planning & control
1. Implement a “priority Matrix” to ensure
high revenue products are priotized
2. use soft ware like ERP (Enterprise
Resource Planning) to intigerate planning,
scheduling & tracking
 (2)
Resource allocation
1. conduct a work shop analysis to identify
skill gaps
2. Hire / train staff accordingly
3. Allocate a dedicated team for production
planning monitoring
 (3)
Maintenance management
1. Implement preventive measure schedule
to reduce breakdown
2. Procure quality tools and spare parts
based on historical data and forecast
 (4)
Inventory management
1. Use the ABC Analysis to categorize
inventory based on importance
2. Establish inventory norms
3. Implement JIT inventory system to reduce
overstocking while avoiding shortages
 (5)
Communication & cordination
1. Conduct regular inter-departmental
meeting to address issues poractively
2. Use tools like Gantt Chart to track
progress & ensure transparency
 (6)
Monitoring & feedback mechanism
1. Implement KPI (Key performance
indicator)
2. On time delivery rate
3. Equipment downtime
4. Inventory turnover ratio
 (7)
Employee involvement & training
1. Conduct workshop to align employees
with the process
2. Develop a incentive system to encourage
accountability and efficiency
 STEP 4
Expected outcome
1. Improved on-time delivery and customer
satisfaction
2. Streamlined production & inventory
process
3. Reduced penalities & operational cost
4. Enhanced collaboration between
department.
 More Information
• What are the factors affecting efficiency in
production:-
1. Human resources
2. supply chain logistic
3. Technology and equipment
4. Process optimization
NB;- Relationship among stakeholders changes &
variation over time:_
• Demand fluctuation;supply disruption;price
change; Tech. ;innovation; uncertainity
 EG: Production
• 1.Set Clear Goals: Determine what needs
to be produced, in what quantity, and by
when.
• 2.Align with Business Goals: Ensure
production aligns with overall company
objectives, such as cost-efficiency, quality
standards, and timely delivery.
 Forecast Demand
• 1.Analyze market trends, historical sales
data, and seasonal patterns to estimate
product demand.
• 2.Use demand forecasting tools or
techniques like Moving Average or
Exponential Smoothing.
Determine Production Capacity

• 1.Assess machinery availability, workforce

capacity, raw material stock, and factory
space.
• 2.Identify bottlenecks that may impact
production efficiency.
• 3.Plan for peak and off-peak seasons
accordingly.
 Choose a Production Strategy

• 1.Make-to-Stock (MTS): Produce in

advance based on forecasted demand.
• 2.Make-to-Order (MTO): Begin production
only after receiving customer orders.
• 3.Just-in-Time (JIT): Produce exactly what
is needed, when it’s needed, to minimize
inventory.
 Create a Master Production Schedule
(MPS)
• 1.Develop a Master Production Schedule
(MPS) outlining:
• 1.What to produce
• 2.When to produce
• 3.How much to produce
• 2.Break it into daily, weekly, and monthly
schedules.
• 3.Use tools like ERP systems (e.g., SAP,
Oracle) for automated scheduling.
 Allocate Resources
• 1.Assign machines, manpower, and
materials to specific tasks.
• 2.Ensure raw materials are available and
machine maintenance schedules are
considered.
• 3.Create a shift schedule for workers if
required.
 Sequence Operations

• 1.Determine the sequence of tasks and

processes to optimize efficiency.
• 2.Use techniques like:
• 1.Gantt Charts for visual timelines
• 2.Critical Path Method (CPM) for task
dependencies
• 3.PERT (Program Evaluation Review
Technique) for time estimation
 Monitor Inventory Levels

• 1.Track raw material availability, work-in-

progress (WIP), and finished goods
inventory.
• 2.Use inventory management systems to
avoid overstocking or stockouts.
 Implement Quality Control Measures

• 1.Schedule quality checks at different

stages of production.
• 2.Ensure adherence to quality standards
and safety protocols.
• 3.Train staff on quality control processes.
 Monitor and Adjust the Schedule

• 1.Use real-time monitoring systems to

track progress against the schedule.
• 2.Identify delays, bottlenecks, or resource
shortages.
• 3.Adjust the plan dynamically to
accommodate unforeseen disruptions.
 Evaluate Performance
• 1.After production, assess:
• 1.Key Performance Indicators (KPIs) like
efficiency, cost per unit, and downtime.
• 2.Production Variance Analysis: Compare
planned vs. actual output.
• 2.Document lessons learned for future
improvements.
 Communicate Effectively

• 1.Share the production plan with all

relevant departments (e.g., procurement,
logistics, sales).
• 2.Ensure clarity and alignment across
teams.
• 3.Hold regular meetings to address
concerns and provide updates.
 Tools for Production Scheduling

• 1.ERP Systems (SAP, Oracle)

• 2.Microsoft Project
• 3.Gantt Charts
• 4.Scheduling Software (e.g., Fishbowl,
PlanetTogether)
 Key Take aways for Managers:

• Align production with demand forecasts.

• Balance workload across machinery and
workforce.
• Minimize downtime and optimize resource
utilization.
• Stay flexible to adjust for unforeseen
disruptions.
• Communicate effectively across teams.
 Case Vikas Pvt. Ltd
• Summary of Case Study: 4 to 5 lines
• Key Characters & Role
• Problem identification Analysis using
relevant model
• Proposed Road Map
• Expected Outcome
 CASE STUDY
• STEP 1 : Problem identification
• STEP 2 : Analysis using relevant model
• STEP 3 : Proposed Road Map
• STEP 4 : Expected outcome
 STEP: 1 Problem Identification
• Key Issues:
1. Leadership and Communication Breakdown:
• Inadequate communication between Mr. Vasudeva (CEO) and Mr. Keshav
(works manager) regarding the ongoing secret project.
• Absence of formal processes to ensure new management members are
briefed about critical initiatives.
2. Workplace Dynamics and Culture:
• Hierarchical gaps and lack of inclusivity in decision-making.
• Secrecy about projects, which alienated key staff members like Mr. Keshav.
3. Employee Dignity and Sensitivity:
• Public reprimand undermined Mr. Hanuman’s dignity and morale.
• Mr. Hanuman’s resignation highlighted the importance of respect and
recognition in the workplace.
4. Organizational Policies and Training:
• Lack of managerial training for new hires like Mr. Keshav.
• No established support systems for addressing workplace conflicts or
grievances.
 STEP 2:
Analysis using relevant models
• 1 SWOT Analysis
• 2 Fishbone diagram (cause and effect
analysis)
 SWOT Analysis:
• Strengths: Established market presence, experienced
leadership, skilled workforce, and innovative product
lines.
• Weaknesses: Communication gaps, lack of
management training, and hierarchical barriers.
• Opportunities: Expansion into international markets,
leveraging technological advancements, and improving
workplace culture.
• Threats: Employee dissatisfaction, potential loss of
skilled workers, and increased competition.
 FISHBONE DIAGRAM
cause & effect relationship
People: Miscommunication between
management and staff, lack of
leadership alignment.

Processes: No formal project briefing or conflict

resolution mechanisms.

Environment: Hierarchical gaps, lack of inclusivity,

and secrecy in operations.

Management: Insufficient training and lack of

sensitivity to employee dignity.
 STEP 3
Proposed Road Map for Implementation

• Short-Term Goals (0-3 Months):

• Conduct communication workshops to bridge gaps
between management and employees.
• Initiate leadership and interpersonal skills training for key
personnel, including managers and supervisors.
• Roll out the grievance redressal system to provide
employees with a clear conflict resolution mechanism.
 Road Map
• Medium-Term Goals (3-6 Months):
• Establish cross-departmental briefings and collaboration
forums to foster inclusivity and transparency.
• Develop an internal recognition program to highlight and
reward employee contributions.
• Empower foremen and supervisors with decision-making
authority in well-defined areas.
 Road Map
• Long-Term Goals (6-12 Months):
• Create a culture of open communication by embedding
regular feedback loops into organizational processes.
• Measure the impact of implemented changes through
employee satisfaction surveys and performance metrics.
• Expand training programs to include advanced
management techniques and strategic thinking for senior
leaders.
 Proposed Action Plan
ACTION RESPONSIBILITY TIMELINE

Conduct communication
HR Department 1 month
workshops

Implement leadership training Training & Development 2 months

Establish a grievance
HR & Legal Departments 3 months
redressal system

Introduce cross-departmental
Executive Team Ongoing
briefings

Recognize key contributors

CEO & Management Immediate and Ongoing
publicly
 Recommendation
Improved Communication: • Conduct regular cross-departmental briefings to
ensure alignment on critical projects.
• Establish clear communication protocols to prevent
misunderstandings.
Leadership Training • Offer managerial and interpersonal skills training for team
leaders and new managers.
• Incorporate conflict resolution strategies into leadership
development programs.

Conflict Resolution mechanism • Introduce a formal grievance redressal system to address

workplace issues effectively.
• Appoint mediators or HR representatives to facilitate fair
resolutions.

Recognising contribution • Publicly acknowledge the contributions of employees like

Mr. Hanuman to boost morale and engagement.
• Foster a culture of mutual respect and appreciation across
all levels of the organization.
Decentralised Authority • Empower foremen and supervisors with a degree of
autonomy in project-related decisions.
• Define clear boundaries for decision-making to prevent
conflicts with higher management.
 Applicable management principles

Fayol’s Principle of Unity of Ensures clarity by having

Command: employees report to one superior to
avoid conflicting instructions.

Maslow’s Hierarchy of Needs: :Recognizes the importance of

addressing employees’ esteem and
self-actualization needs through
respect and acknowledgment.

Systems Thinking Encourages a holistic approach to

understanding organizational
dynamics and aligning all departments
toward common goals.
 Expected outcome
• By following this road map, Vikas Pvt. Ltd
can systematically address the challenges
identified in the case study and ensure
sustainable growth and employee
satisfaction.