Business Management And Human Resources

Definition of Management

One widely quoted definition of management is Management is the art of getting things done through others.
Some more definitions of management are given below:-
☆According to Harold Koontz, “Management is the art of getting things done through and with people in the formally organized group”
☆According to D.J.Clough, “Management is the arts and science of decision-making and leadership
☆According to E.F.L Branch, “Management is a social process entailing responsibility for the effective(or efficient) plann3and regulation of the operations of an enterprise”

《Principles of management》

A principal means a fundamental truth on the basis of reasoning, a primary element of general law. Management principles are fundamental truths of general validity that have value in predicting the results of managerial action.

Henry Fayol gave the fourteen principles 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. Fair remuneration
  8. Centralization
  9. Scalar chain
  10. Order
  11. Equity
  12. Tenure
  13. Initiative
  14. Esprit de corps

1- Division of work:-

Besides one person doing all work at one-time work can be distributed among all the workers so that the work gets smooth and can be done as fast as it can. Besides one person being promoted specialization and one person does one thing work can be allocated to another person too. It helps in improving efficiency and helps to improve the skills of employees by dividing the work

2- Authority and responsibility:-

Authority and responsibility go hand in hand Authority is the right to make decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with responsibility. If the manager is given the authority to complete a task within a given period of time, he should be held responsible if he does not complete the work in a given time. The manager should have the proper authority to take managerial decisions on his own with respect to the goal.

3- Discipline:-

Discipline is the most essential thing in the organization. Employees must obey and respect the rules and regulations that concern the organization. Discipline helps to achieve the goals of the organization. Good discipline is proof of effective leadership. There must be a clear understanding between the management and workers regarding the organizations. Everyone in the organization should know what can and cannot be done

4- Unity of command:-

Each member of the organization should receive orders from only one superior or from only one boss. This principle helps in managing disputes and grievances and solving disputes among people in the organization. It also helps in avoiding confusion. If an employee receives commands from more than one authority, he will get confused and will not be able to take decisions and cannot come up with new and innovative ideas. This is the wrong approach. This organizational hierarchy should be well defined. Each employee should know his immediate superior and should receive orders from him only.

5- Unity of direction:-

There should be one head and one plan for a group of activities having the same objectives to be achieved.

6- Subordination of individual interest to general interest:-

The manager should take every initiative aspect and make efforts to reconcile individual interests with common interests. For example, in every game, the players are always thinking about winning the match as a team rather than their individual records.

7- Fair remuneration:-

The remuneration to be paid to employees to be just and fair and should afford maximum satisfaction to both employer and employee. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, talent, art, tenure, cost of living, market trend, the profitability of the organization, etc.

8- Centralisation:-

According to this principle, there must be a proper balance between centralization and decentralization in the business. This is to be done according to the size of the entity, nature of the activity, etc. Centralization of powers remains with the top management.

9- Scalar chain:-

For effective communication and to see the unity of command the hierarchy channel called the scalar chain was opted by all. For avoiding this longer chain and to take speedy decisions direct communication is followed by various organizations that are known as Gang Plank. For direct communication, proper permission of the authorities is necessary.

10- Order:-

The principle focuses on the proper utilization of physical and human resources. It means the right man in the right job and the right material at the right place should be fixed.

11- Equity:-

It means justice and kindness. While dividing the work, deciding the money terms, etc.. there should not be any discrimination between the employees in caste or religion or on gender basis. It is also suggested that the remuneration should not depend on the department but on the level on which subordinates are working.

12- Tenure:-

The instability of personnel is both the cause and effect of bad management so there should be stability in the time period that is tenure. Insecurity in a job always affects the efficiency of employees their way of working, handling situations. job security minimizes employee turnover ratio.

13- Initiative:-

Employees should be given the chance and opportunity to grab in taking initiative in deciding their work plan. This initiative should be welcomed by the manager for new ideas. It also helps in creating a healthy organizational culture.

14- Esprit de corps:-

It refers to harmony and mutual understanding among the member of the organization.

Esprit de corps means the union is strong. Running any organization is a group activity and human resources are a valuable asset of the organization. If all employees are working as a union and with mutual trust, the difficulties can be solved quickly.

Concepts of objectives:-

  • 1)Groups are created for reaching the objective of goals.
  • 2)Members give their best short to achieve these objectives
  • 3)An organization may have multiple objectives.

Management by objectives:-

At present, our economic environment is rapidly changing. The old technology of management now at this time does not give effective results as they are wanted to be. MBO is also known by the name management of objectives. Every person works and achieves the goals are credited in his/her account for further checking of its performance

Benefits of MBO:-

  • 1)The business objectives are well understood.
  • 2)while making plans it is the manager’s duty to clearly define the goals.
  • 3)Every person can take up their own decisions for doing their part of work.
  • 4)The primary aim of MBO is to involve more people in decision making.
  • 5) Every person working in the organization are given a separate target to be achieved by them.

The weakness of MBO:-

  • 1)Despite being not accepted in today’s era, MBO technology has not yet framed its final shape.
  • 2)The overconfidence aspect to achieve oriented goals set while making the plan may lead to a big weakness for MBO.
  • 3)Scare resources are being wasted by freshers while doing the job.
  • 4)The success of a business is dependent on feedback categories.
  • 5) There is a danger of rigidity in the MBO technique.

Human resource management:-

Human resource management is a management function involving the procurement of suitable human resources, train, and develop their competencies.  It applies to all types of organizations, industry, business, government, education, health, sanitation, or social welfare

Scope of human resource management:-

  1. Planning
  2. Job designs
  3. Job analysis
  4. Procurement
  5. Recruitment
  6. Selection
  7. Induction
  8. Placement
  9. Training
  10. Development
  11. Compensation
  12. Reward and benefits
  13. Retirement benefits
  14. Medical and healthcare
  15. Motivation aids
  16. Bonus
  17. Career development
  18. Decision making
  19. Delegation of authority
  20. Collective bargaining

Objectives of HRM:-

  • 1) To give attractive; rewards; benefits; social security measures;
  • 2) To provide, create, utilize and motivate employees
  • 3) To maintain high morale, create an environment of trust
  • 4) To ensure that there is no threat of unemployment; inequalities; adopting a policy recognizing
  • 5) To create a sense and feeling of belongings; team spirits etc.

Methods of recruiting:-

1. From within the company

  • -By promotion
  • -By transfer

2. From outside the company

  • -Friends and relatives of present employees
  • -Press, media, and other means of advertising
  • -Schools, colleges, universities
  • -Labour unions
  • -waiting list
  • -Labour contractor etc

The life cycle of stages of group development:-

  • FORMING (AWARENESS)
  • STORMING (CONFLICT)
  • NORMING(COOPERATION)
  • PERFORMING(PRODUCTIVITY)
  • ADJOURNING(SEPARATION)

Power and Politics

Source of power

  • ▪︎Knowledge is power
  • ▪︎Resources as power
  • ▪︎Decisions as power

Other sources of power

  • ▪︎Number of people as power
  • ▪︎Reward power
  • ▪︎Coercive power
  • ▪︎Referent power
  • ▪︎Legitimate power
  • ▪︎Information power
  • ▪︎Expert power

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