Management
Management
Statistical data: This involves collecting and analyzing numerical data related to various
aspects of the business operation, such as sales, production, quality, costs, etc. Statistical
data can be presented in tables, charts, graphs, or other visual forms to help managers
understand the performance and trends of the organization. Statistical data can also be
used to compare the actual results with the standards or benchmarks and identify the
areas of improvement or deviation1
Break-even point analysis: This is a method of determining the level of sales or output
at which the total revenue equals the total cost. It shows the relationship between sales,
fixed costs, variable costs, and profit. Break-even point analysis can help managers to
plan the optimal level of production, pricing, and sales mix. It can also help to evaluate
the profitability and feasibility of new projects or products 1
Operational audit: This is a process of evaluating the efficiency and effectiveness of the
internal operations of the organization by a team of internal auditors. Operational audit
covers the accounting, financial, and other aspects of the business, such as production,
marketing, human resources, etc. It aims to identify the strengths and weaknesses of the
organization, suggest improvements, and ensure compliance with the policies and
procedures1
Personal observation: This is a simple and direct way of controlling the activities of the
organization by the managers themselves. Personal observation involves visiting the
work sites, inspecting the facilities, meeting the employees, customers, and suppliers,
and getting feedback and information from them. Personal observation can help
managers to gain first-hand knowledge of the actual situation, problems, and
opportunities of the organization. It can also help to motivate and communicate with
the staff and stakeholders1
These are some of the traditional non-budgetary control devices that can help
managers to plan, coordinate, and control the activities of the organization. However,
these devices also have some limitations, such as being time-consuming, subjective,
outdated, or inaccurate. Therefore, managers should also use modern non-budgetary
control devices, such as benchmarking, statistical process control, quality control, etc., to
complement the traditional ones2
Management audit
Overall managerial control and audit is a process of evaluating and improving the
effectiveness and efficiency of the management team in achieving the organizational
goals and objectives. It involves the use of various tools and techniques to assess the
performance, structure, policies, procedures, and systems of the management team and
to provide recommendations for improvement. Some of the benefits of conducting a
management audit are:
Organizational structure: This refers to the way the company is organized and divided
into different units, departments, or divisions. The consultant evaluates the clarity,
appropriateness, and effectiveness of the organizational structure and suggests any
changes or modifications that can improve the workflow and performance.
Management policies and procedures: These are the rules and guidelines that govern
the management activities and operations. The consultant checks the compliance,
consistency, and suitability of the management policies and procedures and
recommends any revisions or updates that can enhance the quality and efficiency.
Management systems and controls: These are the methods and tools that the
management uses to plan, monitor, and evaluate the performance and results of the
company. The consultant examines the reliability, accuracy, and timeliness of the
management systems and controls and advises any improvements or innovations that
can increase the productivity and profitability.
Management skills and competencies: These are the abilities and qualities that the
management team possesses and demonstrates in carrying out the company objectives.
The consultant assesses the strengths and weaknesses of the management skills and
competencies and proposes any training or development programs that can boost the
management capacity and capability.
These are some of the aspects of overall managerial control and audit that can help a
company to identify and resolve the issues and challenges that the management team
faces and to achieve the desired outcomes and goals. For more information, you can
refer to the following sources:
Accounting audit
Quantity and quality control are two important aspects of managing and
improving the products or services of an organization. Quantity control
refers to the process of ensuring that the output meets the desired quantity
or volume. Quality control refers to the process of ensuring that the output
meets the desired quality or standard1
Quantity and quality control are interrelated, as they both affect the
customer satisfaction, profitability, and reputation of the organization.
However, they also have some differences, such as:
Both quantity and quality control are essential for the success of any
organization, as they help to optimize the use of resources, reduce waste,
increase efficiency, and enhance customer loyalty. Therefore, organizations
should implement effective quantity and quality control systems that are
aligned with their goals and objectives.
Times and budgetary control
Budgetary and timing control are two aspects of managing and monitoring the
performance of an organization in relation to its planned objectives and goals.
Budgetary control involves comparing the actual results of income and expenditure with
the budgeted figures and taking corrective actions when necessary. Timing control
involves ensuring that the activities and tasks are completed within the scheduled time
frame and adjusting the plans accordingly 1
Some of the steps involved in budgetary and timing control are:
Preparing and approving the budgets for different departments, projects, or activities
based on the expected outcomes and resources available.
Communicating the budgets and the timelines to the relevant stakeholders and
ensuring their understanding and commitment.
Collecting and analyzing the data and information related to the actual income and
expenditure, as well as the progress and completion of the activities and tasks.
Comparing the actual results with the budgeted figures and the planned schedules and
identifying the variances and the reasons for them.
Evaluating the performance and the efficiency of the organization and the individuals
involved in the budgetary and timing control process.
Taking corrective actions to address the variances and the problems, such as revising
the budgets or the timelines, reallocating the resources, or providing feedback and
guidance.
Reporting and reviewing the results and the actions taken and learning from the
experience and the feedback.
Budgetary and timing control are important for the success of any organization, as they
help to:
Efficiency and effectiveness are two concepts that are often used interchangeably, but
they have different meanings. Efficiency refers to how quickly a task is done, while
effectiveness refers to how well it is done 1. Here are some examples of each:
Effective but not efficient: An organization that produces high-quality products but
takes a long time to do so. For example, a company that makes handmade furniture that
is of exceptional quality but takes several months to complete an order 2.
Efficient but not effective: An organization that produces goods or services quickly but
with poor quality. For example, a company that mass-produces cheap products that
break easily 2.
Efficient and effective: An organization that produces high-quality goods or services
quickly. For example, a company that uses automation to produce high-quality products
at a low cost 2.
Neither efficient nor effective: An organization that produces low-quality goods or
services slowly. For example, a company that produces outdated technology that is not
in demand
Standing plans are designed to address the functioning of recurring plans over a period
of time, and they enhance efficiency as they are carried out on a regular basis 1
However, they may inhibit experimentation and organizational learning. Organizations
should ignore their standing plans when they are no longer effective or when they
hinder the organization’s ability to achieve its goals 1. For example, if a company has a
policy of using a particular software program, but the program is no longer effective, the
company should consider abandoning the policy and adopting a new one 2. Similarly, if
a company has a standing plan that is not achieving the desired results, it should be
reevaluated and modified or replaced as needed 3.
Organizations should also ignore their standing plans when they need to adapt to
changes in the environment or when they need to respond to new opportunities 4. For
example, if a company’s market changes, it may need to modify its standing plans to
remain competitive 5.
Organizations may consider deviating from standing plans when facing dynamic
environments or rapid changes where flexibility and adaptability are crucial. Ignoring
standing plans can be warranted to encourage experimentation, foster organizational
learning, and facilitate timely adjustments in response to unforeseen challenges. In
situations where innovation and agility are paramount, a temporary departure from
established plans allows organizations to explore new approaches and stay responsive
to evolving conditions.
In summary, organizations should ignore their standing plans when they are no longer
effective, when they hinder the organization’s ability to achieve its goals, when they
need to adapt to changes in the environment, or when they need to respond to new
opportunities.
Management level
The skills required for effective management vary depending on the level of the
organization. According to Robert Katz, there are three basic types of management
skills: technical, conceptual, and human or interpersonal skills 1.
At the top level of an organization, managers need strong conceptual skills to develop
long-term strategies and plans for the organization. They also need strong human or
interpersonal skills to communicate effectively with stakeholders and to build
relationships with other organizations 2.
At the middle level of an organization, managers need a mix of technical, conceptual,
and human or interpersonal skills. They need technical skills to understand the work of
their subordinates and to provide guidance and support. They need conceptual skills to
develop plans and strategies that align with the organization’s goals. They also need
human or interpersonal skills to communicate effectively with their subordinates and to
build relationships with other managers 3.
At the lower level of an organization, managers need strong technical skills to perform
their jobs effectively. They also need human or interpersonal skills to communicate
effectively with their colleagues and to build relationships with their supervisors 3.
In summary, the management skill mixes at different organizational levels are as follows:
The evaluation of management thought is a complex and ongoing process that involves
analyzing the various theories and approaches to management that have been
developed over time 1. The evaluation of management thought is important because it
helps us to understand the evolution of management theory and practice, and to
identify the strengths and weaknesses of different approaches 2.
There are several criteria that can be used to evaluate management thought, including
its relevance, validity, and practicality 3. Relevance refers to the extent to which a
particular theory or approach is applicable to contemporary management issues and
challenges 4. Validity refers to the extent to which a theory or approach is supported by
empirical evidence and logical reasoning . Practicality refers to the extent to which a
theory or approach can be applied in real-world situations and produce positive
outcomes .
In summary, the evaluation of management thought is an ongoing process that involves
analyzing the various theories and approaches to management based on their
relevance, validity, and practicality.
Decision making
According to Transtutors, the challenges faced by the team manager include the
following: the team to be created consists of independent contractors who are not
performing tasks collectively for the firm, lack of motivation for teamwork,
independent contractors work for different sectors and the work may differ, and lack
of communication between the contractors will prevent them from discussing the
collective duties for promoting the growth of the organization1.
The major components that determine group performance and satisfaction are: the
external conditions imposed on the group, group member resources, group structure,
group processes, and group tasks2.
In the 21st century, leadership issues are complex and multifaceted. Leaders are
expected to be inspirational, motivational, and adaptive to change. They should also
be able to develop others and groom them for leadership roles. In addition, they
should be able to handle different perspectives and manage diversity, and deal with
imposter syndrome and self-doubt.
Furthermore, a good leader should be able to empathize with their team members and
understand their needs and concerns. They should be able to create a positive work
environment that fosters creativity, innovation, and growth. A good leader should
also be able to lead by example and demonstrate the values and behaviors that they
expect from their team members.
Finally, a good leader should be able to adapt to the changing needs of their team and
organization. They should be able to embrace new technologies and innovations and
use them to improve their work processes and outcomes. They should also be able to
manage uncertainty and ambiguity and make decisions that are in the best interest
of their team and organization.
According to a study by Moi University, the commonly used methods for conducting
performance appraisal process in universities are: management by objectives (MBO),
360 degree appraisal, behavioral observation scale and behaviorally anchored rating
scale1.
As for why these methods are used, it is because they are considered to be objective,
reliable, and valid1. MBO is a goal-oriented approach that focuses on setting specific
objectives and evaluating the extent to which they are achieved. 360 degree appraisal
is a multi-source feedback approach that involves collecting feedback from multiple
sources such as peers, subordinates, and supervisors. Behavioral observation scale is a
method that involves observing and recording specific behaviors that are relevant to
the job. Behaviorally anchored rating scale is a method that combines the benefits of
both graphic rating scales and critical incident techniques1.
Regarding your second question, leadership issues in the 21st century are complex
and multifaceted. According to PitchGrade, the top 5 leadership challenges of the
21st century are: providing inspiration and motivation to their team, developing others
and grooming them for leadership, leading change and adapting to uncertainty,
handling different perspectives and managing diversity, and dealing with imposter
syndrome and self-doubt.
I’m not sure what you mean by “estate hiring” in your third question. Could you
please clarify?
Management principle
Henry Fayol, also known as the Father of Modern Management Theory, gave a new
perception on the concept of management. He introduced a general theory that can be
applied to all levels of management and every department. He envisioned maximising
managerial efficiency. Today, Fayol’s theory is practised by the management to
organise and regulate the internal activities of an organisation.
The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work
Henri believed that segregating work in the workforce amongst the workers will enhance
the quality of the product. Similarly, he also concluded that the division of work improves
the productivity, efficiency, accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a technical work level.
2. Authority and Responsibility
These are the two key aspects of management. Authority facilitates the management to
work efficiently, and responsibility makes them responsible for the work done under
their guidance or leadership.
3. Discipline
Without discipline, nothing can be accomplished. It is the core value for any project or
any management. Good performance and sensible interrelation make the management
job easy and comprehensive. Employees’ good behaviour also helps them smoothly
build and progress in their professional careers.
4. Unity of Command
This means an employee should have only one boss and follow his command. If an
employee has to follow more than one boss, there begins a conflict of interest and can
create confusion.
5. Unity of Direction
Whoever is engaged in the same activity should have a unified goal. This means all the
people working in a company should have one goal and motive which will make the
work easier and achieve the set goal easily.
6. Subordination of Individual Interest
This indicates a company should work unitedly towards the interest of a company rather
than personal interest. Be subordinate to the purposes of an organisation. This refers to
the whole chain of command in a company.
7. Remuneration
This plays an important role in motivating the workers of a company. Remuneration can
be monetary or non-monetary. Ideally, it should be according to an individual’s efforts
they have put forth.
8. Centralization
In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organisation. Henri
Fayol stressed on the point that there should be a balance between the hierarchy and
division of power.
9. Scalar Chain
Fayol, on this principle, highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also
they should be able to contact any, if needed.
10. Order
A company should maintain a well-defined work order to have a favourable work
culture. The positive atmosphere in the workplace will boost more positive productivity.
11. Equity
All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.
12. Stability
An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.
13. Initiative
The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.
14. Esprit de Corps
It is the responsibility of the management to motivate their employees and be supportive
of each other regularly. Developing trust and mutual understanding will lead to a
positive outcome and work environment.
In conclusion, the 14 Principles of Management the pillars of any organisation. They are
integral for prediction, planning, decision-making, process management, control and
coordination.
Scientific management
Difference between
Management is a process through which the members of an organization gets the job
done with the help of other people. The decision-making process and the performance
of management are guided by various principles of management. Different management
theories are composed of many management thinkers. Out of which, two such eminent
thinkers are Fredrick Winslow Taylor (F.W. Taylor) and Henry Fayol.
In management theory, Henry Fayol, a French mining engineer contributed fourteen
management principles and various concept of a general theory of administration,
whereas, F.W.Taylor, an American mechanical engineer improved the theory of
scientific management and contributed four management principles. Let’s learn in-depth
the Fayol vs Taylor’s Theories of Management.
Definition
Concentrated
Approach
Focus
Theory-based on