Management
Mr. A. D. Kulkarni
Course Objective:
To get awareness about various domains in Business Management. To
understand concept of Quality Management, Financial Management and
Project Management.
To learn Human Resource Management, marketing management are the major
tasks in Business .
To promote Entrepreneurship
Management
Management is the process of planning and organising the resources and
activities of a business to achieve specific goals in the most effective and
efficient manner possible.
Efficiency in management refers to the completion of tasks correctly and at
minimal costs.
Effectiveness in management relates to the completion of tasks within
specific timelines to yield tangible results.
Characteristics of Management
Management is Goal oriented:
The success of management is measured in
terms of achievement of predetermined goals
or objective.
Eg:To provide better quality products to their
consumers- manpower, requirements
Management integrates human, physical and
financial resources
Differentresource used are humans, machines,
materials, financial assets,buildings
continued
Management is continuous
It involves continuous handling of
problems and issues
It includes the problem identification and
its solution.
Management is time oriented
It has to ensure that the production
schedules are met and targets are
achieved
continued
Management is all pervasive
Management is required in all types of
organization irrespective of size and type.
Management is a group of activity
Is more concerned in group activity
To fulfill the objectives, every individuals have
to work in the team
Functions of Management
Planning
Organizing
Staffing
Directing
Control
Planning
Planning is the process of mapping out exactly what has to
be done to reach an organizational goal
Planning helps to sustain the business and increases the
possibility of survival by actively anticipating and
managing the risk that may occur in the future
Objectives of Planning
1. Planning gives a sense of direction to the organization:
As business is a complicated activity, it needs to be
planned to sustain in long run
Once the plan is done, employee starts working in the
same direction mentioned in the plan
continued
Plan focuses on objectives and goals
Sight of objective and goal keeps people motivated
It establishes basis for team work
People from various departments come together and
work as per plan
It helps in anticipating problems and copes with change
Ifplan is proper the surprises reduce and problems can
be avoided by making certain changes
Plan provides guidelines for decision making
Decision making sets short term and long term goals
Eg:decision regarding increase in staff, raw material
provisions, advertisement and marketing
continued
Serves as a prerequisite to employing all other
management functions
Without planning manager cannot execute other
functions like organizing, staffing, directing and
control.
Manager does all these functions as per the set plan
Organizing
Identification and classification of activities
Grouping of activities
Assigning of each group to a manager
Coordination between group
It is the management function that focusses on
allocating and arranging human and non-human
resources so that plans can be carried out
successfully
Organizational structure should be designed to
clarify the individual task and responsibility
Organizing process
Review the plans and objectives
Determine the work activities necessary to
accomplish objectives
Classify and group the necessary work activities
into manageable units
Assign activities and delegate authority
Design a hierarchy of relationships
Objectives of Organizing
Facilitates Administration and Management
Sound organization increases efficiency , avoids delay ,
increases promptness and motivates employees to
perform their responsibilities.
Help in the Growth of Enterprise
Ensures Optimum Use of Human Resources
Good organization establishes persons with different
interests , skills , knowledge and view points.
Stimulates Creativity
Itis the source of creative thinking and initiation of
new ideas.
continued
Tool of Achieving Objectives
Prevents Corruption
Sound organization prevents corruption by rising the
moral of the employees.
They are motivated to work with greater efficiency ,
honesty and devotion.
Co-ordination in the Enterprises
Eliminates Overlapping and Duplication or Work
Duties are clearly assigned amongst workers
Staffing
In every organization people are the centric force
around whom all functions and the activities
revolve
Staffing is
a very important managerial function.
A pervasive activity
A continuous activity
Helps in placing a right men in right job
Staffing is performed by all managers
Directing
This is known as heart of the management process.is te central
point around which accomplishments of goals takes place
Importance of Directing
1. It initiates the actions
1. It is the start point of the work performance of subordinates
2. Action is initialized, understand their job, and follow
instructions
2. It integrates efforts
1. Superiors are able to guide, inspire and instructs their
subordinates to work
2. This can be done through leadership quality and effective
communication
continued
3. Means of motivation
1. Managermotivates to improve performance of
subordinates
4. Stability
4 tools- leadership, effective communication, strict
supervision and efficient motivation
5. Coping with the changes
Business is dynamic and the economy is continuously
changing, so need to cope up with the changes to face
the challenges
1. Efficient utilization of resources
Principles of Organizing: 14 - Dimensions
1. Objectives 8. Responsibility
2. Specialization 9. Authority
3. Span of Control 10. Efficiency
4. Exception 11. Simplicity
5. Scalar Principle / Chain of command 12. Flexibility
6. Unity of Command 13. Unity of Direction
7. Delegation 14. Personal ability
Leading the company's employees toward accomplishment of organizational
objectives. Six R’s are important!
Process management
Measurements & metrics
Rewards & cognition (mental action / process of acquiring knowledge /understanding
through thought, experience, and, senses)
Strategy integration
Training & staffing
Governance & communication
Steps in Planning Process:
ORGANIZING
Principles of Organizing :
Leading
The Control Process
Three Types of Management Control
1.Feed-forward control
Feed-Forward-control / preliminary / preventive control, attempt to
identify & prevent deviations in the standards before they occur.
focus on human, material, and financial resources within the
organization.
For example, if employee’s performance is needed to be up to certain
standards in the organization; the organization should identify and hire
(by means of tests & screening devices) people having required job skills
only.
2.Feedback control
Feedback controls involve reviewing information to determine whether
performance meets established standards.
For example, suppose an organization establishes a goal of increasing its profit by
12 percent next year. Than, it must monitor & obtain the monthly increased profit
by 1%.
3.Concurrent control
Concurrent controls monitor ongoing employee activity to ensure consistency with
quality standards.
It focuses on the transformation process to ensure that it is functioning properly.
These controls rely on performance standards, rules & regulations for guiding
employee for tasks & behaviors.
Devices to check quality of products by ‘manufacturing operations’ of the company
or Employees monitoring the measurements of standards & making a correction are
the examples of ‘concurrent control’.
Motivating
The Human Relations Movement Pyramid
1.Threat of unionization: Business managers adopt ‘morale-boosting human
relations techniques’ as a union-avoidance tactic.
2.Philosophy of industrial humanism: Emotional factors are more important
determinant of productive efficiency than physical & logical factors.
Motivating performance is better than demanding it. Cooperation, a spirit of
unity, and self-control are the keys to productivity. Employee are energetic
creative individuals achieving great things if given right opportunity.
3.Hawthorne studies: The productivity is less affected by changes in work
conditions than by the attitudes of the workers themselves. The relationships
between members of a work group and between workers & their supervisors is
more significant.
The Operational Approach
Describes the production-oriented area of management dedicated to
improving efficiency, cutting waste, and improving quality.
Covers the technical and quantitative approaches to management :
1. Management science
2. Operations research
3. Production management
4. Operations management
Frederick W. Taylor’s Scientific
Management
Developing performance standards on the basis of systematic observations
and experimentation.
Standardization of work practices and methods reduce waste and increase
productivity
Time and task study of workers’ efforts to maximize productivity and output.
Systematic selection and training of workers to increase efficiency and
productivity.
Differential pay incentives based on established work standards.
F. Taylor has concentrated on the study of parameters as
1. Time Study
2. Standards for Work
3. Job Specialization
4. Managerial Planning & Control of Work
5. Worker Selection & Training
6. Incentives
ASSUMPTIONS: Productivity is a workplace problem, Managers should plan & direct
the work to others, Individuals are economically motivated.
CONTRIBUTIONS:
“Scientific” study of work (Time & Motion), Setting of work standards, Use of
incentives, Careful selection & training of workers, Division of labor---managers &
workers, Productivity & efficiency increased
LIMITATIONS:
Social “needs” of workers overlooked, Many studies weren’t very scientific, Loss of
self-control alienated workers ( Unfriendly/ Hostile / Withdrawn / Unresponsive/
Isolate/ Dissociate emotionally), Group dynamics were ignored.
Lessons from the Operational Approach
A dedication to finding a better way is still important.
Using scientific management doesn’t dehumanize workers.
Quality advocates, inspired by the scientific approach, have been right all
along about the importance of quality and continuous improvement
The operational approach fostered (To bring up/ nurture / promote the
growth & development / cultivate) the development of operations
management.
The Behavioral Approach
•The Human Relations Movement
1. An effort to make managers more sensitive to their employees’ needs.
2. Arose out the influences of
1. the threat of unionization.
2. the Hawthorne studies.
3. the philosophy of industrial humanism.
•Elton Mayo
Believed emotional factors were more important determinants of productive
efficiency than physical and logical factors.
Outcomes of Elton Mayo’s Study
Workers working in a group develop bond of relationships
Behavior at workplace depends on their mental state, emotions and
prejudices
Emotional factors are very important.
Human and liberal attitude of supervisor helps in improving performance
Managerial skills and technical skills are not necessary to be a successful
leader.
Business Organizations
Business Organizations
The three main types of business organizations are
1.Public sector
2.Private sector
3.Voluntary sector
1. The Public sector is owned and run by the government for the people. Tax
collection is used to finance most of the public sectors with the aim to provide
essential public services for the benefit of the community.
The public sector use to be a provider, producer as well as buyer.
2. Private sector businesses viz.
1.Sole traders,
2.Partnerships,
3.Private & public companies,
4.Franchises
are owned and run by private individuals with the aim in mind as
1.Profit
2.Growth
3.Increased market share
4.Maximize sales
Voluntary sectors
These are not owned by any individual people, however a representative ensures
proper working with respect to targets and budgets.
The purpose of volunteer groups is to run activities for helping people in particular
and the society at large.
These are no profit no loss organizations and do not spend more than they collect
through fundraising, grants, donations etc.
Characteristics based on which types of business organizations are determined:
1.Ownership
2.Lawfulness
3.Separate entity & management
4.Continuity
5.Risk
Different types of business organizations :
1.Sole proprietorship
2.Partnership
3.Joint stock company
4.Co-operative society
5.Joint Hindu family business
6.Government companies
Classification of Management
CLASSIFICATION OF MANAGERS/Level
of Mgmt
1. Top level Managers
2. Middle level Managers
3. Low level Managers
1.Top-level management:
These include company president, vice-presidents, CEO’s, Board of directors,
MD, and owners.
They are responsible for analyzing, evaluating, dealing and controlling entire
organization’s environmental forces.
They develop goals, strategic plans, company policies, and make decisions.
In addition, top-level managers play a significant role in the mobilization of
outside resources and are accountable to the shareholders and general public.
Middle-Level Managers
These include, general managers, branch managers and department
managers, Sales & Production executives.
They are accountable to the top management for their department's function
to interpret & explain policies framed by TLM and devote more time to
organizational & directional functions.
MLM emphasize for execution of organizational plans in conformance with the
company's policies and the objectives of the top management.
They define & discuss information & policies with top management and pass it
on to lower management.
They inspire & provide guidance to lower level managers for better
performance.
First/low -Level Managers
These include supervisors, foremen, section leads, superintends, branch
managers etc. and focus on controlling and directing.
They usually have the responsibility of
1. Assigning tasks employees,
2. Guiding and supervising employees on day-to-day activities,
3. Ensuring quality & quantity production,
4. Making recommendations, suggestions, and,
5. Up channeling employee problems.
MANAGEMENT STRUCTURE
Effective Management Structure is
of paramount importance to any
successful business organization.
This applies to small, medium-
sized, and large companies alike.
The development of an effective
management structure represents,
a critical management
responsibility of every business
owner.
The development of a management
structure is usually based on the
company’s operational activities &
organizational goals.
Globalization
Globalization
Globalization refers to the shift towards a more integrated and
interdependent world economy that means covering/ affecting the whole
world. It also means integration of the domestic economy of a country with
the international economy.
•The term globalization has four parameters viz.
1.Reduction of trade barriers, so as to permit free flow of goods across
national frontiers.
2.Free flow of capital among nations.
3.Free flow of technology among nations.
4.Free movement of labor among different countries of the world.
Two main key facets of globalization are
1.Globalization of markets,
2. Globalization of production.
Globalization of markets -The merging of historically distinct and separate
national markets into one huge global marketplace. (Coca Cola, McDonald’s
hamburgers etc. are the examples of result of this class.)
Globalization of production-The sourcing of goods & services from locations
around the globe to take advantage of national differences in the cost and
quality of factors of production e.g. labor energy, land, and capital. (Boeing,
Lenevo etc. are the examples of result of this class.)
The Emergence of Global Institutions
Manage, regulate, and police the global market place.
Promote the establishment of multinational treaties to govern the global business
system.
World Trade Organization (WTO) that polices world trading system and ensures
nations adhere to the rules established in WTO treaties
In 2010, its 154 members accounted for 97% of world trade
International Monetary Fund (IMF) that maintains order in the international
monetary system.
World Bank that promotes economic development.
United Nations (UN) that maintains international peace and security, develops
friendly relations among nations, cooperates in solving international problems and
promotes respect for human rights, and is a center for harmonizing the actions of
nations.
The Emergence of Global Institutions
“Declining trade & investment barriers” and “technological change” are
known to be the deriving forces to greater globalization.
Implications of technological change for the globalization of Production and
Market:
Lower transportation costs make a geographically dispersed production
system more economical and allow firms to better respond to international
customer demands.
Low cost communications networks help create electronic global
marketplaces.
Low cost transportation enable firms to create global markets, and facilitate
the movement of people from country to country promoting a convergence of
consumer tastes and preferences.
Two main key facets of globalization are
1.Globalization of markets
2. Globalization of production.
Globalization of markets -The merging of historically distinct and separate
national markets into one huge global marketplace. (Coca Cola, McDonald’s
hamburgers etc. are the examples of result of this class.)
Globalization of production-The sourcing of goods & services from locations
around the globe to take advantage of national differences in the cost and
quality of factors of production e.g. labor energy, land, and capital. (Boeing,
Lenevo etc. are the examples of result of this class.)
Globalization Debate
Globalization has resulted in a decline in the dominance of U.S. firms in the
global marketplace.
In 1973, 48.5 % of the world’s 260 largest Multi National Enterprises were U.S.
firms.
By 2008, just 19 of the world’s 100 largest non-financial MNEs were from the U.S.,
13 were from France, 13 from Germany, 14 were from Britain, and 10 were from
Japan.
Many experts believe that globalization is promoting greater prosperity in the
global economy, more jobs, and lower prices for goods and services. Others
feel that globalization is not beneficial.
Benefits & Drawbacks of Globalization
Improves efficiency, Improves factor Income (income derived from selling the
services of factors of production i.e. inputs to the production process),
Improves finance, Gains from Migrations.
Globalization increases the problems of unemployment
Domestic Industries finds difficulty in survival.
Only group of people who participate in the process of Globalization will be
benefited, this creates income inequality within the country
Control on domestic economy becomes more difficult
Developing country suffers from the problem of brain-drain.
