Contentsv Preface to the Fourth Edition Preface to the First Edition vii 1. Nature and Functions of Management 1 Importance of Management1 Definition of Management2 Management Functions or the Process of Management3 Roles of a Manager6 Levels of Management7 Managerial Skills7 Management and Administration8 Management-A Science or an Art?10 Management-A Profession?11 Professional Management vs. Family Management12 Summary13 Key Terms13 Review Questions13 2. Development of Management Thought 15 Early Classical Approaches16 Neo-Classical Approaches26 Modern Approaches30 Summary34 Key Terms35 Review Questions35 3. Social Responsibilities of Business37 Meaning of Social Responsibility37 Social Responsibility of Business Towards Different Groups 40 Social Performance of Business in India 42 Social Audit43 Business Ethics and Corporate Governance44 Summary 48 Key Terms49 Review Questions49 4. Planning 51 Nature of Planning51 Importance of Planning52 Forms of Planning53 Types of Plans55 Steps in Planning65 Limitations of Planning67 Making Planning Effective68 Planning Skills69 Strategic Planning in the Indian Industry69 Summary69 Key Terms70 Review Questions70 5. Decision-Making 72 Meaning of a Decision72 Types of Decisions73 Steps in Rational Decision-Making76 Rationality in Decision-Making (Models of Decision-Making Behaviour)80 Environment of Decision-Making83 Common Difficulties in Decision-Making87 Summary88 Key Terms88 Review Questions89 6. Business Forecasting and Operations Research92 Business Forecasting92 Techniques of Forecasting94 Operations Research [OR] or Management Science95 Advantages and Limitations of OR96 Summary97 Key Terms97 Review Questions98 7. Organisation 100 Meaning100 Process of Organising101 Span of Management103 Principles of Organising707 Departmentalisation108 Organisation Structure115 What Type of Structure is Best? (Contingency View)118 Committees 122 Teams125 Summary128 Key Terms129 Review Questions129 8. Authority Delegation and Decentralisation 133 Sources of Formal Authority133 Difference Between Authority and Power134 Use of Authority 136 Responsibility136 Line, Staff and Functional Authority137 Delegation of Authority140 Decentralisation of Authority143 Empowerment146 Summary148 Key Terms149 Review Questions149 9 Coordination 152 Distinction Between Coordination and Cooperation153 Need for Coordination153 Requisites for Excellent Coordination155 Types of Coordination156 Techniques of Coordination157 Difficulty of Coordination159 Summary161 Key Terms161 Review Questions161 10. Informal Organisation 164 Why Do Informal Groups Form?164 Types of Informal Groups165 Stages of Group Development166 Benefits of Informal Organisation to its Members168 Benefits of Informal Organisation to Management169 Disadvantages of Informal Organisation170 Harmonising Informal and Formal Organisation171 Group Dynamics1 72 Summary174 Key Terms174 Review Questions175 11. Staffing 177 Importance and Need for Proper Staffing177 Manpower Planning1 78 Recruitment179 Selection182 Placement186 Induction (Orientation)186 Manpower Planning in India187 Summary191 Key Terms192 Review Questions192 12. Training and Development 195 Difference Between Training, Education and Development195 Advantages of a Training Programme196 Types of Training Programmes196 Training Methods198 Selection of a Training Method203 Evaluation of Training and Development204 Training Practices in India206 Mentoring208 Learning Organisation210 Summary210 Key Terms211 Review Questions211 13. Performance Appraisal 213 Purposes of Appraisal213 Criteria of Performance Appraisal214 Frequency of Appraisals216 Performance Appraisal Methods217 Limitations of Traditional Appraisal Methods222 Post-Appraisal Interview223 Appraisal of Management224 Performance Appraisal in Indian Industries227 Career Plan229 Promotions229 Summary 233 Key Terms233 Review Questions234 14. Compensation Plans 236 Primary Compensation236 Incentive Compensation240 Pay-for-Performance 246 Wage Packet of an Indian Worker246 Non-Monetary Incentives247 Summary249 Key Terms250 Review Questions250 15. Direction and Supervision . 252 Requirements of Effective Direction252 Giving Orders254 Motivation255 Job Satisfaction273 Morale276 Organisational Commitment278 First-Level or Front-Line Supervision278 Summary280 Key Terms281 Review Questions282 16. Communication 285 Importance of Communication285 Purposes of Communication286 Formal Communication287 Forms of Communication289 Informal Communication290 The Communication Process291 Barriers to Communication291 Principles of Effective Communication292 Communication Networks in a Working Group294 Checks on In-Plant Communication297 Communication in Indian Industries297 Summary298 Key Terms299 Review Questions299 17. Leadership 301 Difference Between a Leader and a Manager301 Characteristics of Leadership302 Functions of a Leader303 Approaches to Leadership305 situational Forces Determining Choice of Leadership Style315 Leadership Assessment319 Leadership Style in Indian Organisations320 Worker Participation in Management in India320 Summary321 APPENDIX 1. Leadership Opinion Questionnaire322 2. Leader Behaviour Description Questionnaire322 3. Work Patterns Profile324 Key Terms325 Review Questions326 18. Managerial Control 328 Steps in a Control Process328 Need for Control330 Types of Control Methods337 Essentials of Effective Control System332 Benefits of Control System334 Problems in the Control Process335 Control Techniques337 Summary352 Key Terms353 Review Questions 353 19. Management of Public Enterprises 356 Forms of Organisation257 Problems of Public Enterprises in India360 Suggestions for Improvement363 Government Efforts to Improve Public Sector364 Summary366 Review Questions366 20. Organisational Change 368 Need for Planned Change368 Strategy of Planned Change370 Recent Planned Changes in the Corporate Sector in India377 Organisation Development380 Summary381 Key Terms382 Review Questions382 21. Management of Organisational Conflict 384 Levels of Organisational Conflict384 Stages of Conflict384 Causes of Inter-Group Conflict385 Consequences of Inter-Group Conflict387 Prevention of Inter-Group Conflicts387 Management of Conflict387 Summary393 Key Terms393 Review Questions393 22. Organisational Climate or Culture (OC) 396 Components or Dimensions of OC396 Determinants of OC397 Types of OC 398 How is OC Maintained?400 Human Resource Development (HRD) Culture/Climate 401 National Culture401 Training in International Culture403 Summary 404 Key Terms404 Review Questions405 Index 409