MANAGEMENT FUNCTIONS AND PRESENT SCENARIO

“Love is the basis for relationship”, “finance is the life blood of the business” etc… are really using by each and every one in their day to day life for its own purposes. Here now we are going to discuss in the sense that “management is the brain for doing everything in the business”. And every person who is sitting in the superior positions in the institutions like schools, colleges, government offices, business managers...or any such positions are doing work with their own needs but the common thing is that they are doing the same procedures in different ways. Each and every society and human beings are expecting something more from any institutions that I already said, but do any one think how it is possible in the real life? How the Microsoft and Tata are being emerging as multinational companies having billions of assets, it is nothing but there is a sure shot for this growth that human maid and effort mechanism is called management.

Now for the academic sense the management can be defined as “management is a multipurpose organ that manages a business and manages managers and manages worker and work.

The term management can have different meanings. The four important views of management are:

1)    Management is a process

2)    Management is a discipline

3)    Management is a human activity

4)    Management is career

Let’s just forget thus academic things and come to the real life of management. Management is the term actually implies the efficiency of business firm. Of course even though there are a lot of factors behind the success of business enterprises like good workers, sincere officered. For all these the management is the basis. That why it is treated as a human activity of discipline which helps for build up a good career through continues process.

Management functions and practical important

Even though there are so many authors bring so many types of functions for our study let us take the functions given bykoontz and o’donnell , we can visualize  the general pattern of practices used by the this authors :----

1)    Planning

2)    Organizing

3)    Staffing

4)    Directing

5)    Controlling

Planning

Planning is deciding in advance what is to be done. According to george r terry “ planning is the selecting and relating of facts and the making and using assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results”

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to koontz, “planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

1.     organizing

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “to organize a business is to provide it with everything useful or its functioning i.e. Raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:

·         Identification of activities.

·         Classification of grouping of activities.

·         Assignment of duties.

·         Delegation of authority and creation of responsibility.

·         Coordinating authority and responsibility relationships.

1.     staffing

It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. Square pegs in square holes and round pegs in round holes. According to Koontz & O’donell, “managerial function of staffing involves manning the organization structure through proper and effective selection; appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:

·         Manpower planning (estimating man power in terms of searching, choose the person and giving the right place).

·         Recruitment, selection & placement.

·         Training & development.

·         Remuneration.

·         Performance appraisal.

·         Promotions & transfer.

2.     directing

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

·         Supervision

·         Motivation

·         Leadership

·         Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

3.     controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Hayman, “controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to koontz & O’Donnell “controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has following steps:

a.     Establishment of standard performance.

b.     Measurement of actual performance.

c.      Comparison of actual performance with the standards and finding out deviation if any.

d.     Corrective action.

Why this functions????

This is the conclusion of my article. The present scenario of business world is much tighter in competition and changing its face day by day, so for surviving a business unit it is essential to protest their own policies by holding a sequential stability in their profits. What the management functions do is they are supporting the business persons even without they do not know it in such a way to encourage the business. How this is possible can be explained as this functions helps to take better technologies by considering the growing competition in order to prevent the greater failures or low profit margins changes in population taste politics as well as economical changes and exactly the basis is that they advances the management capabilities. The basic advantages like better utilization of resources through minimized production cost towards the better competitive strength is the basis of management function’s working.

TAX ADMINISTRATION AND POWERS

Income tax is the basic and most revenue producing tax system in India. So their should be clear cut and prescribed tax system for income tax and their should be very well defined tax authorities also for administrating the entire tax system. In India there is a very good tax authority system starts from the apex level that is from CBDT to the lowest level of inspectors. Each level of this authority consists of well defined functions and its own powers. The tax authorities are binding courts also for cases to their assesses. There are powers like requisition of books of accounts, search and seizure, reassess the escaped income  etc.. are the examples of powers vested in hands of income tax authority ,we are now going through this powers of income tax authority through this assignment.   

Data content

Income tax authorities are the apex rulers of present Indian income tax system. According to section 116 the following income tax authorities have been constituted under the act to discharge executive and administrative functions:

§  The Central Board of direct Taxes

§  Director general of income tax or chief commissioner of income tax

§  Directors of income tax or commissioners of income tax

§  Commissioners of income tax (appeals)

§  Additional Directors of income tax or additional commissioners of income tax or additional commissioners of income tax (appeals)

§  Joint Directors of income tax or joint commissioners of income tax

§  Deputy directors of income tax or deputy commissioners of income tax or deputy commissioners of income tax (appeals)

§  Assistant directors of income tax or assistant commissioners of income tax

§  Income tax officers

§  Tax recovery officers

§  Inspectors of income tax

Central Board of Direct Taxes (119)

It was constituted under the Central Board of Revenue Act , 1963 . It works under the ministry of finance . The act has assigned main powers and functions in sections 2(17), 2(18), 11(1) (c), 35(3), 35D

(3) and so many sections. The basic powers of CBDT are simply listed below:-

§  Instructions to subordinate authorities: from time to time the board may issue such orders, instructions and directions to other income tax authorities as it may deem fit for the proper administration of the act.

§  Orders issue by way of relaxation of certain provisions under section 119(2) (a) in certain cases.

§  Orders giving extension of time limit (119(2)(b))

§  Orders giving relaxation for claiming deduction under section 119(2)(c)

Director General/director

Director General /director, appointed by the central government, are required to perform such functions as may be assigned by the CBDT. The director general/director enjoy the following powers under different provisions of the act:

·       To give instruction to income tax officers

·       To enquire or investigate into concealment

·       To search and seizure

·       To requisite books of accounts

·       To survey

·       To make an enquiry

Commissioners of income tax

Commissioners of income tax are appointed by the central government. Generally, they are appointed to head income tax administration of specified area. As head of administration, a commissioner of income tax enjoys the following administrative as well as judicial powers and functions under the different provisions of the act:

·       Powers pertain to registration of a charitable trust or institution (12A(a))

·       Approval of an annuity contract (80E)

·       Appointment of income tax officers (Classii)

·       Appointment of inspectors (117(2))

·       Instruction to subordinate authorities (119)

·       Shifting of jurisdiction (125)

·       Transfer of cases (127)

·       Assignment of functions to inspectors of income tax (128)

·       Discovery , production of evidences (131)

·       Search and seizure (132)

·       Requisite books of accounts (132A)

·       Any enquiry (135)

·       Disclosure of information respecting assessee (138)

·       Granting sanction for issue of notice to reopen assessment after the expiry of four years (151(2))

·       Authorizing income tax officers to recover any arrear of tax due from an assessee by distrait and sale of his movable property (226(5))

·       Sett off of refunds against tax remaining payable (245)

·       Directing the assessing officer to prefer an appeal to Appellate Tribunal against the order of the commissioner (appeals) (253(2))

·       Appeal to high court (260A)

Etc…

Commissioners (Appeals)

Commissioners of income tax (Appeals) are appointed by the central government. It is an appellate authority vested with the following judicial powers:

·       Power regarding discovery , production of evidence , etc. (131)

·       Power to call for information (133)

·       Power to inspect registers of companies (134)

·       Powers to set off refunds against tax remaining payables (245)

·       Power to disclose of appeals

·       Power to impose penalty

Joint commissioners

Joint commissioners are appointed by the Central Government. The main function of this authority is to detect tax evasion and supervise subordinate officers. Under the different provisions of the act, the joint commissioner enjoys the following powers, namely;

·       Instruction to the assessing officers (119(3))

·       Powers regarding discovery, production of evidence (131)

·       Search and seizure (132)

·       Power to call for information (133)

·       Power to survey (133A)

·       Power to inspect registers of companies (134)

·       Power to make an enquiry (135)

·       Grant approval to the concerned assessing officer to impose penalty (274)

Income – tax officers

While income tax officers of Class I services are appointed by the central government, income tax officers of Class II services are appointed by the commissioner of income tax. The powers are summarized below:

·       Discovery and production of evidence (131)

·       Power regarding search and seizure (132)

·       Power to requisition of books of accounts (132A)

·       Application of retained assets (132B)

·       Power to call for information (133)

·       Power of survey (133A)

·       Power to inspect registers of company (134)

·       Allotment of PAN account number (139A)

·       To make assessment (143 and 144)

·       To reassess escaped income (147)

·       Rectification of mistakes (154)

·       To demand advance payment of tax (210) etc…

Inspectors of income tax

Inspectors of income tax are appointed by the commissioner of income tax. Inspectors of income tax have to perform such functions as are assigned them by the commissioner or any other authority under which they are appointed to work.