Unit 1 Managerial Functions Mcom Study Notes

Unit 1 Managerial Functions Mcom Study Notes


Unit 1 Managerial Functions Mcom Study Notes:-

In this post, we want to tell you that Mcom 1st year Managerial Functions, Planning: Concept, Significance, types; Organising; Concept, Principles; Theories; Types of Organisation; Authority, Responsibility; Power; Delegation; Decentralization: Staffing; Coordinating; Control; Nature, Process and techniques. { Managerial Functions Mcom Notes }

(Meaning and Definitions of Planning)

Planning is the method of decision making, under which ‘what to do’, ‘how and where to do’, ‘when to do’, ‘in what quantity’, ‘who will do’, how many resources are required, etc. The subject is decided in advance so that the predetermined objectives can be achieved with more certainty and economy. Under planning, the best option is selected from various options to solve a problem, so that the future can be more definite.(Unit 1 Managerial Functions Mcom Study Notes)

According to Koontz and O’Donnell, “Planning is an intellectual process, the conscious determination of ways of doing things, basing decisions on objectives, facts and considered inferences.”

According to M.E. Hurley, “Planning is the pre-determining of what should be done. It involves the selection of objectives, policies, methods and programs from amongst alternatives.”

In the words of George R. Terry, “Planning is a method or technique of looking into the future. It anticipates future needs, so that current efforts can be tailored to them with a view to set goals.”

Unit 1 Managerial Functions Mcom Study Notes

In every business, whether it is small or big, planning is an important process of management because in order to achieve success in any task, it is necessary to anticipate it and make policies to fulfill it. According to L.F. Urwick, “Good planning should be based on definite and clear objectives, should be simple, flexible and balanced and should have appropriate classification and analysis.”

(Essential Steps of Planning Process)

1, Determination of Objectives – For planning in every undertaking, its general objectives are first determined. The departmental goals of the organization are established on the basis of the general objectives of the enterprise. On the basis of these goals, the planning work is done in the organization. Every officer of the organization is made aware of these goals, so that every work of the managers is done towards the achievement of the goals.(Unit 1 Managerial Functions Mcom Study Notes)

2, Determination of Planning Premises – After determining the objectives of the undertaking, the basis for the planning action in the undertaking is determined, on which basis the planning will be done. The basis of planning is ‘forecasting’. Forecasting means making predictions regarding the market, finance, production etc. keeping in view the future needs. The success of planning depends on the forecast.

3, Analysis and Testing of Alternative Procedures – The next important task in planning work is to determine and analyze alternative methods. While determining the alternative methods, their cost and income etc. are taken into account.(Unit 1 Managerial Functions Mcom Study Notes) There are many alternative methods for each plan, so those alternative methods are tested. For example- a trader wants to send his goods out of Meerut, then there will be many options in front of him like he can send his goods by rail, truck or plane. Thus the trader has three options.

4, Evaluation of Alternative Procedures – After determining and testing various alternative methods in planning works, those various alternative methods are evaluated and this evaluation is done keeping in mind the cost and benefits on the basis of comparative method. (Unit 1 Managerial Functions Mcom Study Notes)It is decided which option will prove to be most suitable for the organization. For example – in the above example, the trader will evaluate all the options that which option will be most suitable in sending the goods by rail, truck or air, so that the cost is minimum and the goods can be sent at the convenience.

5, To Select Best Alternative – After doing a comparative study of the various alternative methods available before the enterprise, the best option is selected among them and on the basis of that the plan is made in the organization and the decision is taken. are taken. Sometimes planning work is also done with the help of many options in the organization.

Unit 1 Managerial Functions Mcom Study Notes

6, To Prepare Subplans – After the planning work is completed in every business enterprise, sub-plans are also made for the completion of the main plans, which are helpful for the achievement of the goals of the enterprise. These sub-plans are prepared keeping in mind the departmental requirements and these sub-plans are ancillary to the original plan.

7, Determination of Time and Sequence of Activities – After the preparation of the basic plan and sub-plans for planning in the undertaking, the time taken to implement that action is determined. After determining the time, the sequence for the actions is also determined and those actions are performed according to the same time and sequence.

(Nature of Planning)

Planning is a deterministic and selective process, which is based on predictions. Planning is always done for the coming period i.e. future and is done within the limits of rights and responsibilities at each level of management.(Unit 1 Managerial Functions Mcom Study Notes) Planning is an intellectual process, which goes on continuously in every business, whether it is big or small. The following may be included in the nature of planning

  • (1) Planning is based on forecasting.
  • (2) Planning is the basis of managerial efficiency.
  • (3) Planning is a universal action.
  • (4) Planning is an integral part of the organisation.
  • (5) Planning is the first function in the functions of management.
  • (6) Planning is an intellectual and continuous process.(Unit 1 Managerial Functions Mcom Study Notes)
  • (7) Planning is always done for the coming time i.e. future.

Harold Koontz and O’Donnell have given the following five elements of the nature of planning

(i) Contribution to the achievement of goals, (ii) Universality of planning, (iii) Paramountcy of planning, (iv) Efficiency of plans, and (v) Continuous process.

(Objectives of Planning)

Following are the main objectives of planning:

1, Certainty in Work – Through planning, an attempt is made to bring certainty in the future activities of the enterprise, so that the objectives of the organization can be achieved.

2, Predicting Forecasting – The purpose of planning is to make predictions about the future, that is why forecasting is considered as the essence of planning.

Unit 1 Managerial Functions Mcom Study Notes

3, Economy in Management – ​​When the future activities of the enterprise are planned, the attention of the management gets focused towards its implementation.

4, Establishment of Co-ordination and Equality – Equity and coordination are established in various activities of the enterprise through planning.

5, Information about goals and objectives (Proper knowledge of Main and Sub objectives) – An important purpose of planning is to give information about the goals and objectives of the undertaking or business to the employees and other persons involved in the undertaking and business.(Unit 1 Managerial Functions Mcom Study Notes)

6, To Give Specific Direction (To Give Appropriate Direction) – By planning, an attempt is made to provide such direction by making a future outline of any work, which in its absence seems almost impossible.

7, Other Objectives – In addition to the above-mentioned objectives, there are other objectives of planning; For example, maintaining fair competition, examining the risks and possibilities of the enterprise, etc.

(Elements of Planning)

The following factors are taken into account in the planning process


Objectives – Humans do all the activities of their life for the attainment of definite objectives or goals. Similarly, in every undertaking, it has certain objectives, for the fulfillment of which it is made and every action is taken to achieve that objective. (Unit 1 Managerial Functions Mcom Study Notes) For example- The main objective of every businessman is to earn profit, so he makes various efforts to achieve this objective. If there is no objective of any undertaking, then it will not be possible to complete the planning work because when we do not know what we want to achieve, then what we will plan for it, so it is absolutely necessary to determine the objectives for planning.

2, Forecasting – After the purpose of the undertaking is determined, the forecast has to be made in relation to various elements to achieve those objectives; For example, how much of a commodity will have to be produced, how much finance will be required for it, what qualification will be required of the employee, etc.

3, Policies – It is absolutely necessary to have policies for planning action. Planning is done on the basis of policies. Policies are general agreements in business that guide their actions in business. The formulation of policies is done at the higher managerial level. Some policies are made according to government rules and some policies are made on the request of the employees. Policies can also be in relation to the purchase, production, sale, finance, etc. of goods.

4, Procedures – Procedures are an important part of planning work. Procedures are the methods of crossing the path laid down by policies. In every undertaking, definite policies are made to achieve its objectives and definite procedures are established to fulfill them. In short, we can say that definite procedures are made in the enterprise to implement the policies. Through these procedures, the way of doing the actions and their sequence is decided. These procedures are tailored according to the objectives and requirements of the undertaking. Procedures should be flexible, so that they can be changed as per the need.(Unit 1 Managerial Functions Mcom Study Notes)

5, Rules – In the planning process, certain rules are made while making the plan. Plans are implemented on the basis of these rules. According to Koontz and O’Donnell, “Rules are those plans which guide the course of action and are selected from the alternatives like other plans.” Rules are different from policies, because policies are deliberately designed for the benefit of the enterprise. Rules are simple form of plans whereas rules are also different from procedures because rules do not determine the sequence of actions, whereas procedures are made to determine the sequence of actions.

6, Budget – In the modern business age every work is done on the basis of estimates. Budget is also a plan, in which the details of the expected results are kept in figures. There are several types of these budgets; For example, cash budget, purchase budget, sales budget, income-expenditure budget, etc. Control over the activities of the enterprise can be kept only through the budget, so budget is a part of control. Budget is always made for the future and not for the past, so budgeting is an essential part of planning.(Unit 1 Managerial Functions Mcom Study Notes)

7, Program – A program is made to complete the planning work. A program is a short plan to do some work, which is prepared according to the policies and procedures in accordance with the objectives in a certain sequence. These programs can be short term, long term, comprehensive, limited, general or specific.

8, Strategies – In the business age, internal and external fencing has to be done for every undertaking. A barricade is a business plan, which is prepared keeping in mind the plans of the competitors in the business. Keeping in mind the above mentioned various elements in the process, planning is made in this way.

(Importance of Planning in Management)

The modern age is the age of management. At present, every undertaking, whether it is small or big, whether its area of ​​activities is local, regional or international, whether it is in private sector, public sector or mixed sector, requires planning for all. Is. (Unit 1 Managerial Functions Mcom Study Notes)No businessman can achieve his goals without efficient and effective planning because it is through planning that the businessman decides the necessary activities for achieving the goals of his enterprise, determines their sequence and then executes them.

On the basis of planning itself, by comparing the set parameters with the actual performance, it can be ascertained to what extent the enterprise has achieved success, hence planning is of paramount importance in managerial activities in the business era. The importance of planning has increased even more due to the following reasons-


1, To Offset Future Uncertainties – Planning is necessary in business due to future uncertainties. Managers make predictions for the future by studying and analyzing the present conditions on the basis of past events and prepare plans accordingly. In fact, it is only through planned actions that future uncertainties can be reduced and the pre-determined objectives of the undertaking can be easily achieved.

2, Clarification of Objectives – Under planning, the objectives of the undertaking are clarified and plans are made to achieve these objectives. While taking any decision, the managerial class keeps the objectives of the enterprise in mind.

Unit 1 Managerial Functions Mcom Study Notes

3, Coordination in Managerial Functions – Through planning, co-ordination can be easily established in the managerial functions in different departments of the undertaking, so that there is no conflict between the different departments of the undertaking and the undertaking All the departments of the department work with each other step by step towards the achievement of a certain goal.

To Increase the Organizational Efficiency – Planning makes it effective by eliminating unnecessary delays and red tape in achieving desired results. Planning prevents unnecessary repetition of activities, which saves time, labor and money and consequently increases organizational efficiency.

5, Economy in the Operation of the Enterprise – Planning is the best way to achieve the objectives of the enterprise at least cost and with minimum efforts because the main objective of planning is to get the best work done. A program has to be prepared for its completion. Many types of economy are obtained when production, marketing, finance and departmental activities are done in a pre-planned manner.(Unit 1 Managerial Functions Mcom Study Notes)

6, Helpful in Controlling Function – By planning, standards are set for future performance and then by comparing the actual performance with the standards, the variances are found and then it is seen that These variances are favorable or unfavourable. If these variances are unfavourable, corrective steps are taken so that unfavorable results are not obtained in future. Thus planning provides the basis for control work.

7, To Increase the Managerial Efficiency – With the help of planning, the manager can provide the right direction to each and every work of the enterprise, guide the employees by giving them the right instructions and achieve the pre-determined goals of the enterprise. can obtain. In fact, planning is such an important process on which the success of the enterprise and its managers depends.

8, National Importance of Planning – The importance of planning is not only for business ventures, but planning is very important for progressive nations as well. Through planning, a balanced industrial and economic development of the country can be done,(Unit 1 Managerial Functions Mcom Study Notes) a balance between production and consumption can be established and the problem of unemployment can be solved. India is a shining example of this, which has made remarkable development in every field on the basis of five year plans.

(Principles of Organization)

Renowned manager Henry Fayol had propounded 14 principles related to management and organization, but in addition to this, management experts have also propounded some new principles related to organization which are as follows

1, Principle of Exception – This principle states this. That day to day iterative decisions should be taken by first class management. In this the superior officers who have transferred the authority to subordinate officers should not interfere. Senior managers should take decisions only in those matters whose powers have not been delegated to first class managers.

2, Principle of Efficiency – The organization should be such that it enables the enterprise to achieve the objectives at the lowest cost. In which there is no misuse of resources and human resources and their knowledge can be fully utilized.(Unit 1 Managerial Functions Mcom Study Notes)

3, Principle of Participation – This principle emphasizes that the managers, whether they are superiors or subordinates, should sit face to face and discuss the problems related to the organization. 4, Principle of Flexibility The organization should not be of a fixed nature, but should be flexible so that it can be changed according to need without destroying it and it can bear the changes in environment and technology.

5, Principle of Unity of Objective – The objective should be clear for the whole undertaking and its department. These objectives should be similar so that achieving them is the focus of the entire organization.

6, Principle of Definiteness – According to this principle every action of the employees should be focused on achieving the goals of the enterprise with minimum wastage and maximum efficiency.

7, Principle of Simplicity – The organizational structure of the enterprise should not be complicated but it should be so simple that everyone can understand it well.(Unit 1 Managerial Functions Mcom Study Notes)

8, Principle of Continuity – Organization is a continuous process. Provision should be made from this point of view in every organization.

9, Principle of Leadership – The organization structure should be based on the principle that it can provide such an environment that the manager can motivate his subordinates for work and can provide right leadership.

10, Principle of Personal Ability – Employees make up the organization, so the organization structure should be such in which emphasis can be placed on employee and management development, proper arrangements can be made for their training etc. and optimum utilization of human resources. To be.

(Meaning and Definitions of Delegation of Authorities)

In the present complex industrial age, it is not possible for any one person to control the entire system of the enterprise, so people entrust their work to other people. Delegating one’s workload in this way to other people is called ‘Assignment’. Every person to whom some work is assigned, it is necessary that some rights should also be given. Without rights, any person will be unable to perform his duties fully. (Unit 1 Managerial Functions Mcom Study Notes) This type of transfer of rights is called ‘assignment of rights’, ‘transfer of rights’, ‘surrender of rights’, ‘delegation of rights’ or ‘delegation of rights’.


Prominent scholars have defined the encumbrance of rights in the following way-


In the words of Prof. Theo Hyman, “The imposition of authority refers only to the conferment of authority on subordinates to act within specified limits.”

According to E. F. L. Beach, “In essence, assignment refers to the transfer of a portion of each of the four elements of the management process to others.” by conferring on the right.”

According to McFarland, “Adtribution is that part of the organization process by which an officer, administrator or manager makes it possible for other persons to participate in carrying out the functions of the company.”(Unit 1 Managerial Functions Mcom Study Notes)

In the words of Louis A. Allen, “Delegation is the power of management, it is a process by which the manager divides his work, so that he performs that part of the whole work which he himself does in the organization. Because of his particular position, he can do it effectively and thus he can get the help of other people to complete the remaining work.”

On the basis of the analytical study of the above definitions, we can say that- “Entrustment refers to the authority given by an officer to his assistants or subordinates to work within specified limits. ,

(Elements or Nature of Delegation)

The main element or nature of the burden can be clarified in the following way-

1, Assignment of Duty – The main element of assignment is the assignment of work because under this the manager entrusts his tasks to his subordinates. It is not possible for any person to complete all the activities of the system himself, so he entrusts his work to other people. This enables the enterprise to fulfill its definite objectives easily as the managers delegate their functions to their subordinates and spend their valuable time in the development of the business. Thus ‘assignment of charge’ is said to be the main element of assignment.(Unit 1 Managerial Functions Mcom Study Notes)

2, Grant of Authority – Every person, who is entrusted with the responsibility of performing some work, is also given some specific rights. If a person is entrusted only with the work and no authority is given to him, then it will be impossible for that person to fulfill his responsibilities, so it is necessary that those who are assigned any responsibility should also be given rights.

Responsibility is meaningless in the absence of rights and rights are meaningless without responsibility. Therefore it is necessary for the encashment that the rights should also be enshrined.

3, Determination of Accountability – When a higher officer delegates his functions to his subordinates, he is also given some authority. In such a situation, it becomes the duty of the higher officer to see the work of his subordinates to see whether they are working regularly and according to the work objectives. If they do not do this, then the higher officer can summon them and fix their responsibility, so the responsibility of subordinates is also determined in the assignment.(Unit 1 Managerial Functions Mcom Study Notes)

In this way, it is necessary to keep in mind the above mentioned elements while making a weighting and on the basis of these elements the process of weighting is done.

(Whether Delegation of Responsibilities is Possible or Not)

If one thinks deeply, it comes to the conclusion that no officer can shoulder his responsibilities. Yes, if any officer wants, he can take the cooperation of subordinates in fulfilling his responsibilities and can delegate some powers to the subordinates.

The fact to be remembered in this regard is that the responsibility will rest with the officer who has been entrusted with the work of the undertaking. If there is any loss to the undertaking, then the responsibility of the higher officers will be considered as the responsibility of the same officer to whom the higher officials had assigned the work, and not his subordinates will be held responsible for that work. It is thus clear- “Only rights can be delegated, not responsibilities.”(Unit 1 Managerial Functions Mcom Study Notes)

(Types or Forms of Delegation)

Although different scholars have classified the burden in different ways, however, from the point of view of convenience in the study, the types or forms of burdening can be clarified as follows:

1, General or Specific Delegation – Under the general assignment, the workload of all the activities of the undertaking is entrusted to any one person, such as the work assigned to the chief manager of an undertaking is called ‘General Delegation’. Under fixed assignment, a person is assigned work in relation to certain activities, such as production manager, departmental manager, finance manager, marketing manager etc. The workload assigned to it is called ‘fixed assignment’.(Unit 1 Managerial Functions Mcom Study Notes)

2, Written or Oral Delegation – When the assignment is handed over in writing, it is called ‘Written Delegation’. On the contrary, when the assignment is given orally, it is called ‘verbal assignment’. Written submission is better than oral submission.

3, Formal or Informal Delegation – When the delegation is based on the limits set by the organization’s line of authority, it is called ‘Formal Delegation’. On the contrary, under ‘informal assignment’, subordinate employees do not work on the orders of higher officials but on their own motivation. Incorporation in public sector is done through informal means, whereas in private sector, incorporation takes place through both formal and informal methods. The main objective of informal launch is to end Redtapism.

4, Downward, Upward or Collateral Delegation – Under the downward delegation, the burden is usually from a higher officer to a subordinate (subordinate) officer. (Unit 1 Managerial Functions Mcom Study Notes)Whenever the subordinates do not accept the assignment, the officer can delegate the charge to his superior, this is called ‘upward assignment’. When a charge is made to a horizontal officer, it is called a ‘lateral charge’.

5, Administrative, Functional or Technical Delegation – Delegations which are done for administrative tasks are called ‘Administrative Delegation’. The assignments which are done on the basis of actions are called ‘Functional Delegation’ and those which are done for technical works are called ‘Technical Delegation’.

(Principles of Delegation)

1, Principle of Assignment of Duties in Terms of Expected Results – The superior officer entrusts his duties or functions to his subordinates, but while doing so, the higher authority should give that responsibility to the subordinates. Explain the results or objectives he wants to achieve. By doing this, subordinates will do only those tasks, which are helpful in achieving the predetermined results or objectives and will give up unnecessary activities. On the contrary, if only duties are assigned to the employees and the expected results or objectives are not clarified from them, the subordinates will be unable to fulfill their duties.(Unit 1 Managerial Functions Mcom Study Notes)

2, Principle of Authority and Responsibility – According to this principle, their rights and responsibilities are kept in mind while assigning the subordinates. Every subordinate, to whom responsibilities are assigned, should also be entrusted with some rights, because without rights it is not possible to fulfill the responsibility, so there should be harmony between rights and obligations.

3, Principle of Absolute Responsibility – Any officer can only surrender his rights, not responsibilities. The officer, who entrusts his work to the subordinates, is solely responsible for the tasks assigned to him, not subordinate to him, so that officer should supervise the subordinates to whom he entrusts work, that those tasks are proper and regular. are doing or not.

4, Principle of Unity of Command – While completing the process of assignment, the fact should be kept in mind that orders should be received from the subordinates only from higher level and only one officer gives orders. By doing this the unity of command will be maintained and the employees will also be able to do their work more efficiently. If subordinate employees get orders from more people, then it will not be possible for them to fulfill the predetermined results or objectives.

Unit 1 Managerial Functions Mcom Study Notes

The process of commissioning can be implemented effectively in an enterprise only by following the above principles.

(Essential Points of Effective Delegation)

It is very important to have the following points in an effective launch-

Clear Definition and Limitation of Duties and Rights – In order to be effective, it is necessary that the obligations and rights of every officer should be clearly explained and on the basis of these their limits Determination is also very important.

2, Clear Definition of Delegated Works and Authorities – For the assignment to be effective, it is necessary that the person to whom the charge is to be given should be given a clear knowledge of what tasks he has to do. What rights have been delegated and what rights have been delegated.

Unit 1 Managerial Functions Mcom Study Notes

Proper Control Over the Activities of Subordinates – In order to make the assignment effective, it is necessary that necessary control should be placed on the actions of the subordinate employee to whom the charge has been made.

4, Cordial Atmosphere – For effective management it is necessary that there should be an atmosphere of goodwill amongst themselves in the enterprise, neither in a stressful environment, in the atmosphere of goodwill, subordinates follow the orders of their officers well and their officers also fulfill them. provide cooperation.

5, Effective Communication – For effective communication it is necessary that there should be a clear communication system between the officers and subordinates. This helps them to understand their point of view to each other.(Unit 1 Managerial Functions Mcom Study Notes)

6, No Interference in Routines – To make the assignment effective, it is also necessary that the officers should not interfere in the daily work of their subordinates i.e. they should be left free to do their work.

If the above points are kept in mind, then the process of commissioning in the enterprise can be made more effective.

(Hindrances or Difficulties in Delegation)

Dedication is essential for the successful operation of any undertaking, but in practice the bureaucracy has to face the following obstacles or difficulties while entrusting the rights


1, Lack of Confidence – Officers do not want to delegate their authority to their subordinates because they have less trust in subordinates. They have a belief that no one else can work as well as they themselves do.

2, Desire to Administer and Control – Officers do not want to impose their rights because they have a desire to rule and control. This is the recognition of the officer class. That if they delegate their rights to their subordinates, then the effect of their control and administration will be reduced.

3, Unfamiliarity with the Art of Delegation – Delegation of rights is an art. To acquire the art of delegation requires theoretical knowledge and practical experience, for which sufficient time is required, so officers ignorant of the art of delegating authority feel a kind of fear in delegating the work to their subordinates.

4, Incapability of Subordinates – Officers do not entrust their rights to their subordinates even because of their incompetence, because if the subordinates are incompetent and they are entrusted with the rights, then they will abuse the rights.(Unit 1 Managerial Functions Mcom Study Notes)

5, Other Hindrances – In addition to the above, other constraints of the burden are as follows- (i) fear of officers from subordinates, (ii) inability to give instructions to officers, (iii) lack of effective control system in the enterprise, (iv) Lack of motivation among subordinates, and (v) estrangement between officers and subordinates etc.

Thus we see that as a result of the above mentioned constraints the officers feel hesitant to delegate their rights, but all the above mentioned constraints are only at the will of the managers. In fact, the assignment of powers is an essential task in every undertaking, otherwise the officers will not be able to get any work done properly by their subordinates.

Authority can be delegated but responsibility can not be delegated,” Do you agree? Why?

‘Right’ or ‘Power’ is considered to be the key to management. Right means the statutory power enjoyed by a person on the basis of which he can give orders to persons below him. Managerial authority is received by a person from his superior officer, on the basis of which he can get his subordinates to work for the achievement of the goals of the enterprise.

These rights are of various types; Such as the right to represent the undertaking, the right to transfer or receive the use of the assets of the enterprise, the right to sign documents, the right to appoint employees, the right to give orders to subordinates, the right to punish the guilty subordinates, products Right of pricing etc. All the powers are concentrated with the supreme administration (eg, the board of directors in case of a company) and the top administration decentralizes or delegates the powers as required. The same sentiment is also clear from the following definitions of right.

According to Kuntz and O’Donnell, “The right means such statutory proprietary power which has the power to order or not to be done to achieve the goals of the undertaking or department.”

According to G.R. Terry, “Right means the authority or power under which the manager makes an order and causes the order to be carried out according to his will.” According to Henry Fayol, “Right is the authority to give orders and the power to get them to be carried out.” is called.”

Unit 1 Managerial Functions Mcom Study Notes

It is clear from the above definitions that authority is a statutory power by which the person having authority is successful in getting the work done by the subordinates. A person cannot perform his duties without the right.

(Mutual Relationship Between Authority and Power)

Right and power are considered synonymous, but there is a slight difference between the two. Due to taking office in the organization, the authority gets formally and duly received by the manager. Power is a broad term which also includes authority.

Power means the ability to influence the behavior of others According to Bolfe, “Power means the inherent ability of a person to make another person by his power in a specified area of ​​behavior or time, in some way and the other.” can take away or cause changes in it.

” In fact authority is the biggest source of power, but in an organization the individual also derives power from other sources like personal qualities, long experience, social standing, tradition, technical skills etc.

It is not necessary that the power must be formally and systematically received by the organization, but through the exercise of power, individuals do influence the managerial decisions in the organization. Organization charts show authority relationships, not power centres. The authority of a higher officer is comparatively more than that of a lower authority, but it is not necessary that the power should also be more. informal leader of influences decisions. It may have less power, but it has more power. In order to understand organizational behavior and decision making process properly, it is necessary to know both the centers of authority and power.(Unit 1 Managerial Functions Mcom Study Notes)

(Meaning of Responsibility)

Responsibility is the duty to fulfill one’s work according to the orders of a higher authority. It is such a moral and legal binding that subordinates are bound to complete the task. In the words of Theo Hyman, “Responsibility is the obligation upon a subordinate to perform the work in the manner desired by his superior.” In the words of Louis A. Allen, responsibility is the mental and physical actions, which are required to perform a task and perform a duty. should be done for.” According to Newman and Summer, “By responsibility we mean the moral imperative felt by a subordinate to fulfill his assigned duties.”

(Difference Between Authority and Responsibility)

In fact, rights and responsibilities are two sides of the same coin. It is absolutely necessary to have proper rights for the successful performance of the responsibility. Both authority and responsibility are subjective elements. Only the individual can have rights and responsibilities, not any non-living device. Following are the differences between rights and responsibilities:

(1) Authority always belongs to the superior officer, whereas responsibility belongs to subordinate persons.(Unit 1 Managerial Functions Mcom Study Notes)

(2) The flow of rights is from top to bottom, while that of responsibility is from bottom to top.

(3) Right is the power to get other people to do work, whereas responsibility is the obligation to do something. No.

(4) rights can be delegated or decentralized, responsibility

Sustainable Planning Effective Management of Business Organization

Standing plans are frequently used plans. Examples include policies, procedures, and rules. The advantage of sustainable plans is that they promote unity and fairness within an organization and help support perceived organizational values. Managers do not have to make unique decisions already addressed by various organizational policies. Standing plans also save time because managers know in advance how to address common situations. Lastly, standing plans aid in the delegation of work, as the employees are already familiar with the procedures and rules to be followed by the organisation.(Unit 1 Managerial Functions Mcom Study Notes)


(i) Sustainable plans help in achieving coordination in the enterprise. These plans bring uniformity and unity in the efforts.

(ii) The superior officer is able to delegate his functions to the subordinates as the procedure, rules, regulations etc. have been laid down for taking necessary decisions.

(iii) These plans help in achieving the goals even if they are vague, complex or multifaceted. Policies, methods, rules, procedures provide ready frame of reference whenever there is some difficulty in decision making.

(iv) After much deliberation, deliberation and arguments, permanent plans are made. These plans help in taking quick decisions whenever there is a need for decision making. These plans are great labor saving tools as they provide a frame of reference to deal with recurring situations.

Policies – As mentioned above, the most common examples of permanent use plans are policies. Policies provide broad guidelines for the smooth functioning of the organisation. They cover things like hiring and firing, performance appraisals, promotions, and discipline. For example, a company may have a policy to encourage recycling in the workplace or a policy that prohibits the use of personal cell phones in manufacturing areas.(Unit 1 Managerial Functions Mcom Study Notes)

Procedures – Procedures are the steps to be followed in that dual operation. Processes should reflect company policies and support the organization’s long-term goals. Procedures can also detail the steps that are followed to discipline employees in fair and impartial ways. For example, if employees feel that other employees have interacted with them inappropriately, they should follow procedure to bring it to the attention of management or the organization should keep their issue in cases of emergency.

Regulations – Regulations indicate what is acceptable and what is prohibited in an organization. In other words, a regulation is a kind of rule that addresses common situations. Many hospitals and laboratories, for example, have safety regulations against wearing open-toed shoes or shoes with slippery soles. State and federal governments often issue regulations for industries that affect public safety.

Strategies – The term strategy has long been used in the content of military action plans. It was used to refer to grand plans that were believed to have adverse effects. Managers now use strategies in broad areas of business operations.(Unit 1 Managerial Functions Mcom Study Notes) A strategy is a comprehensive and integrated plan designed to ensure that business objectives are met.

The long-term objectives of the enterprise are set and the requisite resources are allocated and deployed to achieve the expected results. Strategies aim to set a picture of the enterprise in the way that is envisaged. Strategies objectives are to set a picture of the kind of enterprise that is envisaged. Strategies do not attempt to outline programs to achieve objectives, but they provide a framework to guide thinking and action.

Purpose – Every organization should have an economic, social or religious purpose or mission. The main objective of any business enterprise or firm is the production and distribution of manufacturing goods and services. It is mainly believed that the purpose of any organization is to earn profit, but at present, along with earning profit, the organization also wants the fame of its product or service. Therefore, it wants to offer maximum products or services to its customers at minimum cost.(Unit 1 Managerial Functions Mcom Study Notes)

Target – Targets are the ends towards which the activities of an enterprise are aimed. They represent not only the end point of planning, but the end to which and all other managerial functions are aimed. As explained earlier, the goals of the enterprise constitute the basic plan of the firm, and the departmental objectives relating to the sub-plans are tied to it. Thus objectives are established to guide the efforts of an organization and its various departments and sub-units. The main features of the objectives are as follows

1, Objectives constitute the basic plans of an enterprise.(Unit 1 Managerial Functions Mcom Study Notes)

2, Objectives are plural as each organization seeks to achieve several rather than one objective.

3, Objectives form a hierarchy, that is, they can be arranged in such a way that the goals of each sub-unit contribute to the goals of the larger entity of which it is a part.

4, Objectives form a network, that is, the goals are interconnected and mutually supportive.

5, Objectives can be broad and general, or can be specifically mentioned.


(Definitions of Decentralization)

In general terms, decentralization refers to the spread of decision-making powers to the lowest level of management in the organisation. The following definitions of decentralization have been given by various management

According to Lewis A. Allen, “Decentralization is the systematic attempt to delegate all rights to the lowest level except those rights which are exercised only at the central point.”

According to Henri Fayol, “Every function which increases the importance of the role of subordinates is called decentralisation.”

According to Gary Dassler, “Decentralization refers to such delegation of decision-making authority in various matters to subordinates in which control is maintained in certain urgent matters.”

(Characteristics of Decentralization)

On the basis of the above definitions, the following characteristics of decentralization can be said:
(1) It is a systematic effort to delegate authority to the lowest level of management.

(Unit 1 Managerial Functions Mcom Study Notes)

(2) It gives importance to the role of subordinates.
(3) It gives autonomy and opportunity to the subordinates to demonstrate results.
(4) Even in decentralization, it is possible to maintain centralized decision making in urgent matters.
(5) This is the first stage of delegation or delegation.(Unit 1 Managerial Functions Mcom Study Notes)

(Difference between Delegation and Decentralization)

Although devolution and decentralization seem to be the same, there is a difference between the two in the following ways:

(1) Decentralization is broader than weighting. Devolution refers to the transfer of rights from one person to his immediate subordinate, but decentralization refers to the diffusion of rights throughout the organization.

(2) Delegation is a process of transfer of authority, but under decentralization, the process of encumbrance is repeated for the transfer of authority to the lowest level of management.

(3) Control remains in the hands of senior managers, but in decentralization, except in a few urgent cases, the authority is transferred to subordinates or departmental managers in most of the cases.

(4) Delegation is an essential condition of management, because without entrusting subordinate it is not possible to get the work done, but decentralization is optional and it depends on the will of the top management whether to transfer the rights to the whole organization or not. Operation of work is possible even with mere weighting.

(5) Decentralization is a technique of management, whereas decentralization is a philosophy of management.

(Measurement of the Degree of Decentralization)

The following guidelines have been made to measure the level of decentralization in a company or organization-

(1) The greater the number of decisions taken at the lowest level in the organization, the more decentralized it is considered to be.

(2) The more the solution of a problem is in the hands of the nearest officer, the more decentralized that organization is considered. For example, it would be more decentralized if BPL gave the marketing officer of its Agra region the authority to replace the faulty TV set, compared to the case where permission would have to be taken from the Marketing Manager, Delhi for its replacement.

(3) The more important the decisions taken at the lower level, the more decentralized it is considered. An organization in which the divisional manager has the right to purchase machines up to Rs 10 lakh, will be considered more decentralized than the organization in which the divisional manager has the right to purchase machines up to Rs 1 lakh only if the organization is of similar size. Huh.(Unit 1 Managerial Functions Mcom Study Notes)

(4) Where the subordinate has to consult his officer the least in relation to decisions, decentralization is considered the most. Conversely, where most of the decisions require the approval of the authority, decentralization is considered to be of low level.

(5) Where the control over the managers is more selective and specific in nature, the more decentralized the organization is supposed to be. For example, if the manager of Hindustan Lever Ltd. Foods Division has to meet the Managing Director only four times in a year to submit a report on return on investment, he is independent in all other respects, then it is said to be a decentralized organization.

(Principles of Decentralization)

Following are the main principles of decentralization:
1, Theory of Diversity of Products – The more products a firm has, the more decentralization is possible, because in these divisions can be easily created on the basis of products and decision making can be decentralised.

2, Theory of Organization Size – Generally, the larger the size of an organization, the more rapid the changes, the more decentralization will be possible. This is the reason that decisions are decentralized in large units as compared to small units.

Unit 1 Managerial Functions Mcom Study Notes

3, Theory of Change in Environment – ​​The more rapid the changes in the environment affecting a firm, the more decentralization will be possible. For example, in the ready-made clothing business, the changes in fashion, taste, product diversity are so rapid that they can be easily dealt with by the lower level managers who are in daily contact with the consumer, so they should be given decision making powers which Decentralization will do.

4, Principle of Appropriate Control – The arrangement of appropriate and timely controls is necessary for the success of decentralization before the transfer of authority and decentralization. Periodic audit of capital expenditure is an example of control under which the right of decisions related to capital investment up to a certain amount can be delegated to the managers.

5, Theory of Time – Decentralization must be done in such management areas from where you can save a lot of time and get the right results through centralized control.

Unit 1 Managerial Functions Mcom Study Notes

6, Theory of Capacity – While doing decentralization, the capacity of subordinates should also be assessed. The success of decentralization depends on the ability of the subordinates.

7, Theory of Delegation – Since the transfer of rights is done in decentralization, the principles of delegation or transfer of authority are also applicable in decentralization, such as subordinates should not be criticized for any error, for more workload Appropriate compensation should be given etc.

8, Theory of Appropriate Communication – Decentralization can be successful only when there is a system for proper and effective communication within the organization, because coordination and control can be done only by effective communication.

9, Theory of Geographical Spread – If production and sales in an organization are geographically spread far and wide, then decentralization is inevitable. If the production is being done at one place or in one building only, then decentralization is not so necessary.

Unit 1 Managerial Functions Mcom Study Notes

(Human Resource Planning)

Under human resource or man power planning in the enterprise, planning is done for the needs of human resources in both qualitative and numerical terms and their supply from various sources. There are two phases of human resource planning- In the first phase, the requirements of human resources are planned that how many people will be required in the time period of planning.

In the second phase, a plan is made to ensure their supply from various sources to meet the planned needs of human resources, that is, how many people will be available through internal sources with reference to the planned needs and who will be available for the remaining people. (Unit 1 Managerial Functions Mcom Study Notes)What steps will be taken? Human resource planning includes the following things:
(1) Projection of human resource requirements
(2) Property inventory of human resources
(3) Addressing the gap between available human resources and required human resources
(4) Job-analysis.

(Sources of Recruitment)

Various sources of recruitment are mainly divided into the following two parts –

(I) internal source, (II) external source

Often, enterprises use both of the above sources for recruitment, although the use of one source more or less than the other is greatly influenced by managerial policy, the level of specialization of the job, pressure from labor unions, and training needs. Is.

(I) Internal Sources – Internal sources of recruitment include those employees who are already working in the company. The use of internal sources of recruitment is to fill the vacant posts by promotion or transfer of employees.

Unit 1 Managerial Functions Mcom Study Notes

(II) Merits of Promotion – The following are the main advantages or merits of internal source recruitment (promotion) –

(1) Qualitative improvement in the selection of employees in promotion is possible because a company is better aware of the good and bad qualities of its employees as compared to outsiders.

(2) Promotion motivates existing employees to move to positions of greater responsibility.

(3) At the initial stage, the company gets good candidates from external sources because they want to take advantage of the company’s promotion policy.

(4) It increases the morale of the employees.

(5) With promotion, the company is able to make the most and best use of its employees. Transfer also provides opportunities for employees to learn jobs in different fields.

(6) This method of recruitment is less expensive as it does not involve expenditure on advertisement, written examination etc.

(7) Promotion makes employees more loyal to their goals, they do not want to leave the company and go elsewhere.

Unit 1 Managerial Functions Mcom Study Notes

Demerits of Promotions – The following demerits or demerits of recruitment through internal sources can be called –

(1) In this method, the promotion in the company takes place gradually in a sequence which hinders the development of highly skilled employee.

(2) In this method, sometimes qualified persons are not found for the posts with specialized knowledge and the company has to compromise on the quality level of the employees.

(3) In this method, when seniority as well as merit are taken care of, some people do not get the desired position and dissatisfaction starts to emerge in them.

(4) Promotion hinders the development of new approach in the company because the working employees like to work in the existing system and working style of the company.

In spite of the above mentioned demerits, big companies have been adopting internal source of recruitment to a great extent. Foreign and Indian companies like Procter & Gamble, DuPont, Sears, General Motors, Telco, TISCO etc. have been using this method to fill at least more than half of the posts in the middle and high level of management.

(II) External Sources – Following are the main external sources of recruitment –

(1) Direct Recruitment – Many companies encourage direct recruitment through their own office instead of reducing advertising expenditure and giving commission to agencies. In this, the company puts the information of vacancies on its notice board and informs its current employees. After this these employees encourage their friends or relatives or other knowledgeable persons to apply directly in the company office.(Unit 1 Managerial Functions Mcom Study Notes)

(2) Educational Institutes – Educational institutions like universities, colleges, engineering institutes, management institutes etc. are also the main sources of recruitment. Although ‘campus recruitment’ is very expensive, yet big companies in India recruit engineers, managers, computer experts through campus interviews every year from various institutes. In this system, companies get highly qualified and qualified employees by direct recruitment.

(3) Consultants – Consultancy organizations have been established in big industrial cities like Mumbai, Kolkata, Delhi etc., which along with other managerial functions also do the job of searching for middle and high level managers. They keep a list and information of managers who want to change jobs. These consultants arrange their interviews etc. in a reliable manner and also help in determining the payment package. After the appointment, they get their commission from the company from which the appointment has been made. The amount of commission is equal to the salary of two to three months of the appointed manager.

(4) Employment Agencies – Employment agencies can be of both government and non-government types. In India, employment offices have been opened all over the country on behalf of the government, through which any company can ask for the list of applicants for labor and clerk etc.(Unit 1 Managerial Functions Mcom Study Notes) Some private agents also supply labor and charge a fixed fee in return.

(5) Advertisement – Advertisement for recruitment is a good source of attracting candidates. It has been found very useful for the recruitment of scientific, professional and technical staff. Under this, the company invites people with suitable qualifications to send applications by advertising for vacant positions in national or local newspapers. Sometimes these advertisements are also given in professional magazines like The Chartered Accountant, The Management etc.

(Selection of Employees)

It is necessary to select an employee before he is hired. The purpose of employee selection is to assign the right job to the right person so that maximum output is possible at minimum cost. Employees are selected from within and outside the enterprise. Internal persons can be selected by their promotion, transfer and demotion. Outsiders can be selected by interviewing them. Here employee selection refers to the selection of qualified persons from outside persons.

Declaring a person or persons fit for the job among the recruited employees is called selection.
When it is known that by recruiting the employees, who are eligible to work in the organization, then from amongst those persons, people are selected as per their requirement. In the selection process, a person is actually selected for a job.(Unit 1 Managerial Functions Mcom Study Notes)

Selection of employees to fill vacancies in the organization is called selection.
According to Dale Yoder, “Selection is the process by which the applicants for employment are divided into two parts – those who are to be employed and those who are not to be employed”. Vacant posts are obtained by knowing the number of required persons in the departments, with the help of job descriptions, the required qualifications of the employees are ascertained and by matching the qualifications and the person’s qualifications determined by the job description, the suitable person is selected. .

In this way the following things are included in the selection of employees – (1) To know the availability of employees from various sources through recruitment and to make them ready to work in the enterprise.
(2) To determine the qualifications, qualities, experience, responsibilities and salary etc. of the employees to be appointed on various posts by job description and job evaluation.
(3) To find out the number of vacant posts and newly created posts of the undertaking.(Unit 1 Managerial Functions Mcom Study Notes)
(4) To conduct examination and interview of recruited employees and to select the employees matching the requisite qualifications.

(Meaning and Definition of Coordination)

Some managers consider coordination as a function of management, while some others call it the essence of management. No matter how it is called, but it is certain that coordination is a very important part of management. In fact, co-ordination is simply the process of bringing cohesiveness of work to the inter-dependent activities of an organization. Different scholars have defined coordination in the following way:
According to Henri Fayol, “Coordination harmonizes all the activities of an organization so that the work of the organization can be carried on conveniently and successfully.” According to Koontz and O’Donnell, “Coordination is the essence of management which helps in accomplishing set group goals

. To create harmony in individual efforts.”
According to E. F. L. Brecht, “Coordination refers to creating balance and group cohesion in the organization by ensuring equitable allocation of tasks amongst the various members and ensuring that the members themselves are engaged in performing the tasks in perfect harmony.”(Unit 1 Managerial Functions Mcom Study Notes)

Nature or Characteristics of Coordination – Following are the main features that represent the nature of coordination.

1, System Concept – Coordination is a systems approach that considers an enterprise as a system of coordinating collective efforts and ensuring the inter-dependence between various activities in the organization structure and the coherence of group efforts.

Unity of Purpose – When the objectives of the organization and the employees are the same, then it becomes easy to coordinate between different departments and activities.

3, Responsibility of Management – Coordination is such a basic responsibility of management which is achieved by managerial functions. Generally the manager wants to discharge this responsibility.

4, Continuous Process – Coordination is a continuous process that goes on continuously throughout the enterprise.

Unit 1 Managerial Functions Mcom Study Notes

5, Voluntary Function – Coordination is the result of the willingness of the management. It cannot be created suddenly or by pressure.

6, Essence of Management – Coordination is not a specific function of management but its ‘essence’. It pervades all functions of management.

(Significance of Coordination)

1, Synergy Effect – When the collective contribution of the group is more than the sum of the contributions that can be made separately by each member of the group, then it is called Synergy Benefit. It is possible for an organization to get synergistic benefits through co-ordination because through co-ordination the individual efforts are converted into group efforts and thus the overall efficiency of the organization increases.

2, Departmental Inter-dependence – High level of departmental dependency is found in factory and service undertakings, like production department, marketing department, finance department and departmental department in a manufacturing undertaking are inter-related and inter-dependent. And the inefficiency of one department adversely affects the whole undertaking, then only by maintaining co-ordination in these departments the desired results can be achieved.(Unit 1 Managerial Functions Mcom Study Notes)

3, Team work – Without coordination the employees of an organization can go in different directions, coordination calls for the members of the group to unite to achieve a common objective.

4, Problem of Increasing Size – As the emphasis is on liberalization and globalization, the size of the enterprises has started increasing wildly. The increasing size of the enterprises gives rise to complex organizational structure and faulty communication and in such a situation the need for co-ordination for the smooth functioning of the enterprise increases.(Unit 1 Managerial Functions Mcom Study Notes)

5, Conflicting Goals – It is often seen that departmental goals and individual goals of an organization are conflicting and this leads to misuse of resources. Coordination makes possible the efficient use of resources by removing such conflicts.

6, Unity in Diversity – The place of coordination is paramount in managerial work; That is why it is called the essence of management. Individuals with diverse abilities, desires, attitudes and actions work in every organization or organization. If this diversity is not converted into unity of purpose, the consequences will be disastrous. It is the coordination that transforms diversity into unity and makes the organization efficient.

Unit 1 Managerial Functions Mcom Study Notes

(Techniques or Methods of Coordination)

Managers in an enterprise have to use different techniques to achieve coordination. The main techniques are as follows –

1, Coordination by Special Person – When the quantity of contract between two or more departments becomes more then a specific person is entrusted with the coordination work like if there is a need for excessive coordination in marketing and production department. Such a person will constantly keep in touch with the production department and prepare the production table as per the marketing requirement.

2, Coordination through Committee – In many companies, the work of coordination is done by forming an inter-departmental committee. This committee consists of representatives of all departments who meet from time to time and take decisions for coordination.

3, Coordination by Departmentalization – If the functional departmentalization system is adopted in the company, then production, marketing, finance etc. will be such departments which are completely inter-dependent and it is necessary to maintain coordination among them, this work of coordination is done by the Chief Manager. Will complete

4, Coordination through Managerial Hierarchy – The principle of order chain also produces coordination. Two or more subordinates working under one officer work according to the orders of the officer. (Unit 1 Managerial Functions Mcom Study Notes) So there is coordination in their work. In this, the problem of co-ordination arises when the number of subordinates is more and there has been a situation of conflict between them.

5, Coordination by Rules and Procedure – Rules and procedures are also used for coordinating routine tasks, like every teacher in a school has to teach according to the class schedule, Due to this, the co-ordination of the teaching work of different teachers is done automatically. The time-table is a part of the school’s methodology.

6, Coordination by Target or Goals – Most of the managers set goals for their subordinates. When all the managers make efforts to achieve their respective goals, the situation of coordination automatically arises. For example- If the target of sales manager is to sell 1 lakh units in a year, then the target of production manager is to produce 1 lakh units and the goal of finance manager is to mobilize necessary resources, the objective of achieving the target by the three managers is to create coordination among them. .

Mcom Managerial Functions

(Meaning and Definitions of Control)

Control is a major factor in the field of management. It is only through control that the management system gets information about the performance of the work. Various scholars have given the following definitions regarding control.(Unit 1 Managerial Functions Mcom Study Notes)

In the words of EFL Breach, “Controlling means matching the current performance with predetermined parameters in the plans to ensure adequate progress and satisfactory performance and the experience gained in implementing the plan to guide the expected future actions.” has to be accumulated.”

According to Koontz and O’Donnell, “Controlling is a managerial function that measures and improves the performance of subordinate employees, so as to ensure that the objectives of the enterprise and the plans set out to achieve them are being implemented. Is.”

In the words of George R. Terry, “Controlling is the ascertainment of the fact that what has been achieved, that is, the performance, the evaluation of the work performed and, if necessary, taking corrective steps so that the performance is in line with planning.”

According to Prof. Hamann, “Controlling is the process of determining whether plans are being followed, whether appropriate progress is being made towards the achievement of objectives and goals, and to rectify this gap if necessary.” for, taking necessary steps.”

Unit 1 Managerial Functions Mcom Study Notes

(Characteristics of Control)

After observing and studying various definitions of control, some of its characteristics appear, which are as follows –

(1) The control process is based on scientific principles and statistical principles.(Unit 1 Managerial Functions Mcom Study Notes)

(2) Control is an important function of management, which helps in achieving the objectives of the enterprise.

(3) Control is of an accepting nature.

Unit 1 Managerial Functions Mcom Study Notes

(4) It is needed at every level of management.

(5) Control is related to the future because whatever has happened in the past, there is no question of control over it.

(6) Control can be internal, external and direct and indirect.(Unit 1 Managerial Functions Mcom Study Notes)

(7) Control begins with the determination of objectives and ends with the attainment of objectives.

(8) Control is a dynamic process, which does not take place for a fixed time or action, but is a continuous action.

(Importance of Control)

In the words of Koontz and O’Donnell, “Just as a sailor constantly studies to determine whether he is on the course, so a business manager constantly studies to determine whether his organization or The department is on the right track.”

Unit 1 Managerial Functions Mcom Study Notes

The importance of control in business management can be explained by the following points:

1, A type of insurance – The process of control in management works in a way of insurance because on efficient control, the businessman has a firm belief that the actual work will be done according to the prescribed plan. If there is any difference in it, it will be remedied immediately.

2, Safety from Risk – Under the control, every work of the organization is thoroughly checked and the correct solution of the errors in the work is found. Such a measure is taken so that such error can be avoided again in future.(Unit 1 Managerial Functions Mcom Study Notes)

3, Helpful in Coordination – The control system establishes coordination in the activities of various departments, so that the deadlock arising between them ends and the whole work of the organization goes on successfully unopposed as per the plan.

4, Means of Motivation – The importance of the control process lies in the fact that by this the employee is efficient or not. If this happens, reward or punishment can be given in the form of incentive according to the work.

5, Basis of Future Plans – Controlling process is the basis of future planning because through this the organization gets such facts and information, on the basis of which plans for future actions are prepared.

6, Business Complexities – In the industrial age, the complexities of the business world are increasing. All these complications can be dealt with effectively by the control process.

7, Establishment of Discipline – Control process is important to establish discipline in business.(Unit 1 Managerial Functions Mcom Study Notes) By efficient control, the chances of dishonesty, work ethic, unfair behavior etc. can be reduced to a great extent, which creates an atmosphere of discipline.

8, Helpful in Delegation Process – In an organization, tasks are divided among many people, according to which they are assigned rights and responsibilities. The rights and responsibilities assigned by the control process can be seen to be properly delineated and the error condition can also be detected.(Unit 1 Managerial Functions Mcom Study Notes)


(Techniques of Control)

Techniques of control are those tools through which due control is exercised over the actions of the employees. Following are the main techniques of control:

1, Inventory Control – This is the technique by which the supply of raw materials etc. is maintained as per the requirement. From this point of view ‘Order Points’ and ‘Stock Labels’ etc. are determined.(Unit 1 Managerial Functions Mcom Study Notes)

2, Production Control – Production control includes the activities of planning, guiding, scheduling, issuing and tracking production activities. The purpose of production control is to plan and conduct production activities in such a way that at the specified time. To be able to produce goods of a specified type in a specified quantity and at a fixed price.

3, Quality Control – By this the quality of the product manufactured is kept in the right form. Its goal is to provide maximum purity to the product produced. In this method, emphasis is laid on preparing the object according to the standards by fixing the standards of color, form, size, circumference etc.(Unit 1 Managerial Functions Mcom Study Notes)

4, Cost Control – It tries to keep the cost of the goods produced by it low. In this view, after analyzing various costs, its standards and standards are fixed, after that after finding out the actual costs, taking the quantified deviation, the reasons for the deviation are known and efforts are made to remove them in future.

5, Budget – Through budget, the management system can fulfill different goals simultaneously. (Unit 1 Managerial Functions Mcom Study Notes)Budgeting is an efficient process for implementing a mode of control. Budgeting is a very effective way to keep a check on the income and expenditure of the organization.

6, Accounting – Effective control is exercised on many works even after keeping the accounts in a proper manner and knowing the profit and loss.

7, Control by Profit and Loss – By adopting the process of profit and loss and by doing physical examination of various accounts, profit and loss of the organization can be ascertained and controlled.(Unit 1 Managerial Functions Mcom Study Notes)

8, Effect of Control – Establishment of effective control becomes easy in the institutions where the control department exists separately. This department makes control plans, implements and coordinates them and evaluates their results.

9, Written Direction – Through written instructions, stable control can be established on subordinate employees and thus the right work gets done.

(Unit 1 Managerial Functions Mcom Study Notes)

10, Disciplinary Action on Employees – By taking disciplinary action against the erring employees, they can be controlled.

11, Determination of Standing Limitations – By determining the permanent boundaries of the jurisdiction of various officers and employees, their actions are controlled.

12, Motivation – Motivation is the best method to establish self-control and self-control. In this, by motivating the employees, maximum cooperation is obtained voluntarily and the work is done in a controlled manner.

13, Audit – Auditing is also an effective method. (Unit 1 Managerial Functions Mcom Study Notes) By adopting this, fraud, theft etc. can be prevented. When done by the higher officials of the audit organization itself, it is called internal audit and when it is done by external persons, it is called external audit.

Unit 1 Managerial Functions Mcom Study Notes

14, Break-even Point Analysis – Break-even point analysis is also the main technique of managerial control. Through this, profit, sales and security limits etc. can be determined.

15, Chart and Rule Book – Charts help in controlling functions by presenting comparative analysis. Similarly, the rule book helps in indirect control by making the officers aware of their jurisdiction and responsibilities.

Managerial Functions Mcom Notes

16, Management Information System – Management Information System is also the main tool of managerial control. The more robust and systematic the information system in the organization, the simpler the managerial control remains. (Unit 1 Managerial Functions Mcom Study Notes)On the contrary, when there is an interruption in the information system, the control function becomes futile and sluggish.

17, Observation – By going to the workplace, the work of the employees is inspected on the spot by the management system. Control is easily established by this type of inspection. Inspection has been recognized as one of the most effective methods for control.(Unit 1 Managerial Functions Mcom Study Notes)

18, Return and Reports – Control can be kept on the employees by asking for reports, details etc. of the work done by them from time to time.

19, Examples – By setting high ideals by high officials, ideal examples can be set, which become effective measures of motivation and control for subordinate employees.

20, Policies – Policies are also an important technique of control. They guide the performance of daily tasks and compel the employees to work in a controlled manner.

Unit 1 Managerial Functions Mcom Study Notes

21, Other Techniques – Nowadays many scientific methods are also being used for control; like

(i) ABC analysis,

(ii) CPM,

(iii) Pert,

(iv) VED analysis.

(Limitations of Control)

Although the controlling method is very important in the formulation of policies and providing order to the organization’s work, yet some defects also appear in it, due to which its limits can be determined in the following forms –

1, Highly costly – Sometimes the process of controlling and detecting deviations is so costly that the organization is unable to spend that much.

2, Control is Possible only on Internal Elements – The most important limitation of control is that it is possible only in the internal activities of the organization. The external factors affecting the organization like government policy, changes in population, demand supply, market conditions etc. cannot be controlled.(Unit 1 Managerial Functions Mcom Study Notes)

3, Impossibility of Remedial Actions – Sometimes the task of finding deviations is very difficult and difficult in itself. For that it is necessary to get the services of experts. In such adverse circumstances, the mode of control begins to disappear and the achievement of the objective remains incomplete.(Unit 1 Managerial Functions Mcom Study Notes)

4, Difficulty in Determination of Standards – Determination of standards is a pre-requisite for control, but there are many situations in which it is completely impractical to determine, as a result of which control cannot be done in those cases.

Unit 1 Managerial Functions Mcom Study Notes

(Managerial Control Process)

The process of control is the process in which standards of performance are established to perform a task. The progress of the actual work is compared with the prescribed performance standards and if any deviation is found in them, corrective action is taken to rectify the same.(Unit 1 Managerial Functions Mcom Study Notes) Different scholars of management have described different stages.(Unit 1 Managerial Functions Mcom Study Notes) In conclusion, the following four elements (steps) of the control process can be stated:

(1) Determination of goals and standards,

(2) to measure actual performance,

(3) Comparison of performance with standards,

(4) Corrective action.

1, Establishment of Goals and Standards – The first step of the control process is to determine the goals, standards, policies, plans, assumptions or any such parameters on the basis of which the work of an employee can be measured.(Unit 1 Managerial Functions Mcom Study Notes) In simple words, by setting standards, we mean to determine what result we expect and expect from a particular task. Whether any work is being done correctly or not can not be known until the standards are set.

With regard to the determination of standards, it is particularly noteworthy that the standards should be kept too high or too low. The standards should be fixed keeping in view the size of the undertaking, positioning capacity etc. In short, this can be said with respect to standards. That these standards should be such that a normal (average) person can obtain them by his own efforts.

(Unit 1 Managerial Functions Mcom Study Notes)

Types of Standards – For the convenience of control, standards can be classified as follows

(i) Physical and Monetar

(a) Physical Standards – Physical standards are those which are expressed in physical units such as per hour, per unit or any other similar physical units. For example, it can be said that how much work a machine will do per day or in how many hours or in how many days a certain work will be completed.

(Unit 1 Managerial Functions Mcom Study Notes)

(b) Monetary Standards- Monetary standards are those which are expressed in money such as what will be the cost of working per hour of a machine or what will be the cost of raw material per unit or how much will be spent on wages per unit etc.

Unit 1 Managerial Functions Mcom Study Notes

(ii) Tangible and Intangible Standards) –

(a) Tangible criteria – Tangible parameters include those parameters which can be expressed in definite units; For example, the cost of production per day or the quantity of production, etc. Therefore, in tangible parameters, all those physical and monetary parameters come which can be clearly defined.(Unit 1 Managerial Functions Mcom Study Notes)

(b) Abstract Criteria- Abstract criteria include those criteria which cannot be expressed in definite and clear units; For example, increasing the morale of the workers, increasing the managerial efficiency of the organization, etc. These are parameters that cannot be measured, but which can only be experienced. Tangible parameters are more clearly definite and measurable than intangible parameters, so concrete parameters are used more.

(iii) Revenue and Capital Standards

(a) Revenue Standards – It includes those parameters which can be expressed in terms of value of sale; For example, the criterion of sales per person in Delhi or average sales per person or income per passenger per kilometer of a transport company etc.(Unit 1 Managerial Functions Mcom Study Notes)

(b) Capital Standards – Unlike income parameters, capital parameters are those which are expressed as a ratio of capital expenditure; Such as- Current ratio, Debts equity ratio etc.

(Unit 1 Managerial Functions Mcom Study Notes)

2, Measurement of Actual Performance – After setting the standards, the second step to be taken under the control process is to measure the actual performance. (Unit 1 Managerial Functions Mcom Study Notes)The measurement of actual performance can be done in the following ways:

(i) By Direct Personal Observation and Inspection,

(ii) By Direct Reports,

(iii) By Survey,

(iv) The following points should be kept in mind while measuring the actual performance by statistical and mathematical methods:

(1) The actual performance figures should be as accurate as possible.

(2) The performance figures should be prepared regularly and continuously.

Unit 1 Managerial Functions Mcom Study Notes

(3) The standards for measurement of performance should be the same as those used to determine performance standards.

(4) As far as possible, the measurement of progress should be pre-emptive, that is, giving an idea of ​​what is going to happen next, so that it can be indicated before deviations occur and their causes can be removed.

(5) Personal qualities can be measured successfully by personal observation.

3, Comparison of Performance with Standards – The third step in the control process is to find the deviations by comparing the actual performance with the set standards. According to Henry Ford, “No two machines of the same kind have the same part of the same kind.” So it is the law of nature to differ.

The need to see is how much this deviation or difference is. This deviation may be insignificant. If the deviation is not within the permissible limit i.e. outside, it is considered an exception to the standard and should be excluded. (Unit 1 Managerial Functions Mcom Study Notes)

It is necessary to find out the causes of deviation, because it is difficult to take corrective steps in the absence of knowledge of the reasons, but to find the reasons of deviation is a complex task. After all, in making a plan or in implementing that plan, the investigator should know more about the following things in this context- (i) Is the cause of the deviation permanent, temporary, increasing or decreasing? (ii) Deviation What is the effect of

Unit 1 Managerial Functions Mcom Study Notes

4, Corrective Action – The last step of the control process is to take corrective action. If the deviation between the actual performance and the parameters exceeds a certain limit, then it becomes inevitable to take corrective action, some improvement decisions may be such as to rectify the defective work.(Unit 1 Managerial Functions Mcom Study Notes)

These may be called “corrective work”, but there may be some improvements that are good for the future. The whole ‘essence’ of control lies in the corrective action itself. According to George Terry, “Without improvement, control is void and of no use.” Corrective work should be such that it can be done and rectified without affecting the whole undertaking. But if it affects the functions of management like planning, organization, coordination and motivation etc., then in such a situation, remedial work should be done only after mutual consultation.(Unit 1 Managerial Functions Mcom Study Notes)

M.com all notes link :- Click here

Unit 1 Managerial Functions Mcom Study Notes

Follow me at social plate Form


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top