INDUSTRIAL MANAGEMENT (V Semester ... - …

MECHANICAL ENGINEERING - 15ME51T

Department of Collegiate and Technical Education

UNIT I : BASICS OF MANAGEMENT

SESSION 4: Cooperative Society , Advantages and disadvantages

Functions of Management

INDUSTRIAL MANAGEMENT (V Semester)

MECHANICAL ENGINEERING

1

Business Organisation Forms (Types)

2MECHANICAL ENGINEERING - 15ME51T

1. Sole Trader Or Proprietorship Or

individual ownership

2. Partnership

3. Joint stock companies

i. Private Limited Company (Ltd)

ii.Public Limited Company (Plc)

Business Organisation Forms (Types)


4. Co-operatives

5. Joint Hindu Family firm

Overview

4

• Cooperative Society ,

• Advantages and

disadvantages and

• Functions of ManagementMECHANICAL ENGINEERING - 15ME51T

Cooperative society• Previous types of organisations have profit making as the

major motive• Cooperative societies try to reduce inequality of wealth• Co-operative society is an association of individuals formed

for the purpose of obtaining goods, especially, the articles of daily use at rates lower than that of market.


Cooperative society• It is a voluntary association that started with the aim of the

service of its members. • Individuals belonging to the same class join their hands for the

promotion of their common goals• These are generally formed by poor people or weaker

sections of people in society


“all for each and each for all”.

Cooperation work

with the feeling of

helping others

Characteristics of Cooperative Society• voluntary association• Separate Legal entity• Democratic Management• Service Motive• Utilization of Surplus

• Cash trading• Government control• Fixed rate of return


Cooperative society - Objectives• It is a voluntary organisation. • There is no limit to its membership.

(Face value of shares is kept small to encourage membership)

• Its management is based on democratic basis of equality. (one person one vote, not one share one vote)

• Its object is to serve the members and instead of maximizing the profit.8MECHANICAL ENGINEERING - 15ME51T

Cooperative society - Types

• Producers' or Manufacturers’ co-operative society.

• Consumers' co-operative society.

• Housing co-operative society.

• Co-operative farming.• Co-operative credit society.


Cooperative society - AdvantagesC It sells the products cheaper as advertisement and publicity

is not needed.C Less expense on accounting – Honorary service from

membersC It offers to its employees better wages and reasonable

conditions of service.


Cooperative society - AdvantagesC There is no question of profiteering, hoarding and black

marketing C It tries to equalise money distribution:C It benefits general public.C It promotes a sense of co-operation among the members.


Cooperative society - DisadvantagesD Capacity to raise capital is limited.

D Due to limited financial resources services of

highly qualified persons cannot be utilized.

D Mostly inefficient management and sometimes

found that management is inexperienced and

corrupt.

D Members usually try to make undue advantage.

D It requires better and strict supervision.

D There are chances of excess officialization.12MECHANICAL ENGINEERING - 15ME51T

Joint Stock v/s Partnership

13

Joint Stock company Partnership1 Has separate legal entity No separate legal existence4 Business as per the MOU Business as per the will of partners5 Liability is limited Liability is unlimited6 Property of the firm belongs to

companyBelongs to partners

7 Management by board of directors

Management by the partners

9 Death or retirement of any share holder will not affect company

Death or retirement of a partner may adversely affect

10 Large capital can be collected Only small capital can be collectedMECHANICAL ENGINEERING - 15ME51T

Cooperative Society v/s Joint Stock

14

Cooperative society Joint stock company1 Basic objective Service Profit making2 Membership Limited to specific group Open to all3 Minimum

membersTen Private limited 2

Public limited 74 Shares Not transferable Transferable5 Voting right One man one vote One share one vote6 Privileges Exemption from stamp duty

and cheaper financeNo such benefits

7 Disposal of profit

as bonus or used for welfare of members

Divided without limit as dividendMECHANICAL ENGINEERING - 15ME51T

Functions of ManagementFrom functional view, an effective is

Management is the process of planning, organising, directing and controlling activities of and using resources of an organisation for accomplishing the goals efficiently and effectively in ever changing environment.


Definition?

Functions of Management1. Forecasting 2. Planning 3. Organizing 4. Directing 5. Motivating 6. Coordinating 7. Controlling 8. Communication 9. Leadership 10. Decision Making 16MECHANICAL ENGINEERING - 15ME51T

Planning

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• In an industrial situation, questions

like what is to be produced, when

is to be produced, where is to be

produced, how and how much is

to be produced are asked.

• Systematically answering these

questions involve planning MECHANICAL ENGINEERING - 15ME51T

Planning• Planning is the process of establishing

goals

– Setting the 'right' goals

– choosing the 'right' means

• Deciding suitable courses of action for

achieving those goals.

• Making proper resource allocations

(men, materials and machines. 18MECHANICAL ENGINEERING - 15ME51T

Objectives planning1. To adjust for changes and

uncertainties2. To forecast the future action3. To utilize the resources effectively4. To avoid bottlenecks in production5. To take correct decisions


ORGANISING• Making men, machine and materials available• Defining relationships

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Organising is that part of managing that

involves establishing an intentional

structure of role for people to fill in an

organisation. Intentional means to assign

the tasks, to accomplish the goals, and to

the people who can do their best.MECHANICAL ENGINEERING - 15ME51T

Steps in Organizing• Determination of objectives • Identification and grouping of activities • Assignment of duties • Developing Authority – responsibility relationships



• Cooperative Society ,

• Advantages and disadvantages

• Functions of Management


Documents

INDUSTRIAL MANAGEMENT (V Semester ... - …