CONTENTS Preface to the Fourth Edition Preface to the First Edition vii 1. Nature and Functions of Management 1 Importance of Management 1 Definition of Management 2 Management Functions or the Process of Management 3 Roles of a Manager 6 Levels of Management 7 Managerial Skills 7 Management and Administration 8 Management-A Science or an Art? 10 Management-A Profession? 11 Professional Management vs. Family Management 12 Summary 13 Key Terms 13 Review Questions 13 2. Development of Management Thought 15 Early Classical Approaches 16 Neo-Classical Approaches 26 Modern Approaches 30 Summary 34 Key Terms 35 Review Questions 35 3. Social Responsibilities of Business 37 Meaning of Social Responsibility 37 Social Responsibility of Business Towards Different Groups 40 Social Performance of Business in India 42 Social Audit 43 Business Ethics and Corporate Governance 44 Summary 48 Key Terms 49 Review Questions 49 4. Planning 51 Nature of Planning 51 Importance of Planning 52 Forms of Planning 53 Types of Plans 55 Steps in Planning 65 Limitations of Planning 67 Making Planning Effective 68 Planning Skills 69 Strategic Planning in the Indian Industry 69 Summary 69 Key Terms 70 Review Questions 70 5. Decision-Making 72 Meaning of a Decision 72 Types of Decisions 73 Steps in Rational Decision-Making 76 Rationality in Decision-Making (Models of Decision-Making Behaviour) 80 Environment of Decision-Making 83 Common Difficulties in Decision-Making 87 Summary 88 Key Terms 88 Review Questions 89 6. Business Forecasting and Operations Research 92 Business Forecasting 92 Techniques of Forecasting 94 Operations Research [OR] or Management Science 95 Advantages and Limitations of OR 96 Summary 97 Key Terms 97 Review Questions 98 7. Organisation 100 Meaning 100 Process of Organising 101 Span of Management 103 Principles of Organising 707 Departmentalisation 108 Organisation Structure 115 What Type of Structure is Best? (Contingency View) 118 Committees 122 Teams 125 Summary 128 Key Terms 129 Review Questions 129 8. Authority Delegation and Decentralisation 133 Sources of Formal Authority 133 Difference Between Authority and Power 134 Use of Authority 136 Responsibility 136 Line, Staff and Functional Authority 137 Delegation of Authority 140 Decentralisation of Authority 143 Empowerment 146 Summary 148 Key Terms 149 Review Questions 149 9 Coordination 152 Distinction Between Coordination and Cooperation 153 Need for Coordination 153 Requisites for Excellent Coordination 155 Types of Coordination 156 Techniques of Coordination 157 Difficulty of Coordination 159 Summary 161 Key Terms 161 Review Questions 161 10. Informal Organisation 164 Why Do Informal Groups Form? 164 Types of Informal Groups 165 Stages of Group Development 166 Benefits of Informal Organisation to its Members 168 Benefits of Informal Organisation to Management 169 Disadvantages of Informal Organisation 170 Harmonising Informal and Formal Organisation 171 Group Dynamics 1 72 Summary 174 Key Terms 174 Review Questions 175 11. Staffing 177 Importance and Need for Proper Staffing 177 Manpower Planning 1 78 Recruitment 179 Selection 182 Placement 186 Induction (Orientation) 186 Manpower Planning in India 187 Summary 191 Key Terms 192 Review Questions 192 12. Training and Development 195 Difference Between Training, Education and Development 195 Advantages of a Training Programme 196 Types of Training Programmes 196 Training Methods 198 Selection of a Training Method 203 Evaluation of Training and Development 204 Training Practices in India 206 Mentoring 208 Learning Organisation 210 Summary 210 Key Terms 211 Review Questions 211 13. Performance Appraisal 213 Purposes of Appraisal 213 Criteria of Performance Appraisal 214 Frequency of Appraisals 216 Performance Appraisal Methods 217 Limitations of Traditional Appraisal Methods 222 Post-Appraisal Interview 223 Appraisal of Management 224 Performance Appraisal in Indian Industries 227 Career Plan 229 Promotions 229 Summary 233 Key Terms 233 Review Questions 234 14. Compensation Plans 236 Primary Compensation 236 Incentive Compensation 240 Pay-for-Performance 246 Wage Packet of an Indian Worker 246 Non-Monetary Incentives 247 Summary 249 Key Terms 250 Review Questions 250 15. Direction and Supervision . 252 Requirements of Effective Direction 252 Giving Orders 254 Motivation 255 Job Satisfaction 273 Morale 276 Organisational Commitment 278 First-Level or Front-Line Supervision 278 Summary 280 Key Terms 281 Review Questions 282 16. Communication 285 Importance of Communication 285 Purposes of Communication 286 Formal Communication 287 Forms of Communication 289 Informal Communication 290 The Communication Process 291 Barriers to Communication 291 Principles of Effective Communication 292 Communication Networks in a Working Group 294 Checks on In-Plant Communication 297 Communication in Indian Industries 297 Summary 298 Key Terms 299 Review Questions 299 17. Leadership 301 Difference Between a Leader and a Manager 301 Characteristics of Leadership 302 Functions of a Leader 303 Approaches to Leadership 305 situational Forces Determining Choice of Leadership Style 315 Leadership Assessment 319 Leadership Style in Indian Organisations 320 Worker Participation in Management in India 320 Summary 321 APPENDIX 1. Leadership Opinion Questionnaire 322 2. Leader Behaviour Description Questionnaire 322 3. Work Patterns Profile 324 Key Terms 325 Review Questions 326 18. Managerial Control 328 Steps in a Control Process 328 Need for Control 330 Types of Control Methods 337 Essentials of Effective Control System 332 Benefits of Control System 334 Problems in the Control Process 335 Control Techniques 337 Summary 352 Key Terms 353 Review Questions 353 19. Management of Public Enterprises 356 Forms of Organisation 257 Problems of Public Enterprises in India 360 Suggestions for Improvement 363 Government Efforts to Improve Public Sector 364 Summary 366 Review Questions 366 20. Organisational Change 368 Need for Planned Change 368 Strategy of Planned Change 370 Recent Planned Changes in the Corporate Sector in India 377 Organisation Development 380 Summary 381 Key Terms 382 Review Questions 382 21. Management of Organisational Conflict 384 Levels of Organisational Conflict 384 Stages of Conflict 384 Causes of Inter-Group Conflict 385 Consequences of Inter-Group Conflict 387 Prevention of Inter-Group Conflicts 387 Management of Conflict 387 Summary 393 Key Terms 393 Review Questions 393 22. Organisational Climate or Culture (OC) 396 Components or Dimensions of OC 396 Determinants of OC 397 Types of OC 398 How is OC Maintained? 400 Human Resource Development (HRD) Culture/Climate 401 National Culture 401 Training in International Culture 403 Summary 404 Key Terms 404 Review Questions 405 Index 409