Management

Prepared by Ghanshyam M.Bhuva

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Management

MEANING:“Management is the process of Planning, organizing, directing & controlling for achievement of Goal”

CHARACTERISTICS:1. Management is Goal Oriented2. Management is Universal3. Management is Continuous Process4. Management is Group activity5. Management is Profession6. Management is art & science 7. Management is dynamic8. Management is decision making


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Management

IMPORTANCE1. Optimum Utilization of Resources2. Achievement of Goal3. Establishment of Sound Industrial Relationship4. Effective Leadership5. Raise the standard of Living6. Accelerate the process of development7. It is universal process

LIMITATION1. It is not possible to formulate definite principle2. Dynamism reduce the effectiveness of planning and forecasting3. Uniform principle cannot be applicable for all type of

organization


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Management

FUNCTION1. Planning2. Organization3. Staffing4. Directing5. Motivation6. Coordinating7. Controlling8. Reporting9. Budget

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Management

MANAGEMENT AS A PROCESS

“Management included the general principle that the reason its called management as a process”

Every function work Sequencly like planning, organization, staffing, directing and controlling

This function are interdepended on each other Dr. Terry says that the management process consist of four

function Planning, Organization, Actuating & Controlling. They distinguish between Manager and Non manager Universal Process- Use by Government, Army, Education

field, Business. Management Applicable in all Level



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Management

MANAGEMENT IS SCIENCE OR AN ARTManagement is Science:

“science is specialized & systematic knowledge based on principle”

Science teaches Principles To think: Determine the Goal, Planning, method, Strategies.

Characteristics:

1. Systematic body of knowledge2. Management is social science3. Management is an inexact science


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Management

Management is an Art:“Art is application of knowledge & skill to achieve the results:

The function of Art like Achievement of Goal, Implementation of Planning

Characteristics1. Use of knowledge2. Creative Art3. Personalization

Management is an Art & Science“Science formulate the principle which is implement by Art that called management is an Art &Science”

Science teaches the Principles, Art teaches how to implement them.

Good Sentence: “Knowledge is power is not completely true. In fact, applied

Knowledge is Power


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Management

MANAGEMENT AS A PROFESSION“Profession is an activity where specialized knowledge is

used after getting the training and experience for the same”Example: Lawyer, C.A, Doctore.

Characteristics1. Specialized skill2. Training3. Ethical standard4. Association of member


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Management

OBJECTIVESA. Economical Objectives1. To earn enough profit2. Production of goods and services3. Creation of market4. Innovation5. GrowthB. Social Objective1. Production of goods & service to satisfy the requirement of society2. Production of goods of good quality3. Supply of goods at a reasonable price4. Provide employment5. Not to create artificial scarcity of goodsC. Human Objective:1. To give fair wages to workers2. To provide good working condition3. To provide for self development and education4. Fair dealing with workers5. Giving them a share in Management


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Management

FREDERICK TAYLOR’S PRINCIPLES OF MANAGEMENT

Fraderick Taylor’s is the father of scientific managementTwo classes are engaged in business like

Taylor’s says that “knowing exactly what you want your men to do, then see to it that they do it in the best and the cheapest way”

Taylor’s gives suggestion:1. To assign work to every workers according to his capacity2. To give incentive up to 30% to 100%

Owner

• Demanded high profit

Employee/workers

• Demanded high wages


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Management

Scientific Principle of Taylor’s1. Separation of planning & doing2. Functional foremanship3. Job analysis4. Standardization5. Scientific selection & training6. Financial incentives7. Mental revolution(mental harmony)


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Management

HENRY FAYOL’S PRINCIPLE OF MANAGEMENT Henry fayol’s is the father of Modern Management Taylor suggested new standard of work like piece- rate system.

This system is well organized but Fayol Presented the same more effectively.

Henry Faloy concentrated on the Top and Bottom level management also.

Theory of management1. Technical activity : Production2. Commercial activity : Sales, Purchase3. Financial activity : Fund management4. Security activity : Protection of Property5. Accounting Activity : recording of Transaction6. Managerial Activity : Management Function


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Management

Henry Fayol’s Principles1. Division of work2. Authority and responsibility3. Discipline4. Unity of command5. Unity of direction6. Subordination of individual interest to general interest7. Remuneration8. Centralization9. Scalar chain10. Order11. Equity12. Stability13. Initiative14. Team spirit


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Management

THREE LEVEL OF MANAGEMENT

Board of Directors, MD,

GMDepartmental heads

1. Production department2. Marketing department3. H.R.Department4. Financial department

Workers, Supervisors, Foremen

Top level

Middle level

Bottom level


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Management

Top Level Function1. Trusteeship2. Determination of objectives3. Selecting the executives4. Approving budget5. Distribution of earning6. To secure long range stability

Bottom Level1. Implement order of the CEO2. Prepared Plan3. Prepared Budget4. Formulate police5. Increase efficiency6. Help top level management in policy decision


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Management

BOTTOM LEVEL1. Get instructions & order2. Plan for the daily routine3. Maintain proper human resources4. Reporting to Middle level

DIFFERENCES

Point Top level Middle level

Bottom level

1. Mng & Adm. M=H, A=L M=Less, A=H

M=Least, A=Most

2. Authority & Responsibility

High Average Lease

3. Managerial Functions Planning Organization

Directing

4. Numbers of member Few More Large No.

5. Qualification All-round skill is needed

Specialized skill

Large No.


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Planning

MEANING:“According to Henry Fayol Planning refers to a Preview of future activity”“Planning is the set of premises for achievement of predetermine goal”

CHARACTERISTICS:1. Planning is goal oriented2. Planning is primary function3. Planning is all pervasive4. Planning is continuous process5. Planning is flexible6. Planning concern with future7. Planning is mental process8. Planning is choice of alternatives


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Planning

IMPORTANCE1. Planning provide direction2. Planning provide framework3. Achievement of goal4. Reduce the wastage5. Reduce uncertainty6. Effective control7. Coordination

LIMITATION1. Planning is Time consuming 2. Planning is Costly3. Planning is unnecessary4. Planning is an attack on the freedom of the employee5. Incomplete information: Ex:-Credit card6. Uncertainty of external factors


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Planning

PROCESS

Establishing Objectives

Building the Premises

Collection, Classification & Analysis of Data

Determining Alternative

Evaluating Alternatives

Selection of Best Alternatives

Preparing Derivative Plans

Providing Follow up


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Planning

TYPES OR ELEMENTS OR COMPONENTSOF PLANS

1. Objectives: Mission, Vision2. Policies : Strategies are decided for achievement of goal is called Policies.3. Strategies: Set of Action or tactic are called Strategies4. Rules :Rules establish order for getting discipline, Coordination, how to

work for fulfilling a Program.5. Programs: Policies and Plan are called Program(They guides to action or

Sequence of activities)6. Budgets

TYPES OF PLANNINGA. On the basis of objectives1. Planning of the Existing business2. Reform Oriented planning3. Developmental planningB. On the basis of time

Long range and Short Rangec. Other types of Planning


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Planning

FACTORS AFFECTING SUCCESS OF PLANNING OR PRINCIPLE OF EFFECTIVE PLANNING

1. Clarity of objectives2. Clarity of alternatives3. Accurate forecasts and data4. Cooperation of staff5. Resources6. Practical and realistic7. Flexible8. Adjustment to environment


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Planning

BARRIERS TO EFFECTIVE PLANNING

Barriers

A. Reluctance to establish

Goal

1. Not willing to give up other Goals2. Fear to failure3. Lack of Knowledge of Organization4. Lack of Knowledge of Environment5. Lack of Confidence

B. Resistance to Change

1. Uncertainty of future2. Economic Reasons3. Weaknesses in Change4. Technical Problem

C. Misunderstandin

g


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Planning

OVERCOMING BARRIERS TO EFFECTIVE PLANNING1. Conduct the management Programmes2. Effective system of Planning3. Employees involved in planning4. Proper Communication system should be developed5. Technical Training

CRITERIA FOR EVALUATING THE EFFECTIVINESS OF A PLAN

A. Usefulness

1. Flexibility2. Stability3. Continuity4. Simplicity

B. Accuracy

and Objectivity

C. Scope of the

Plan1. Comprehensiveness2. Unity3. Consistency

D. Cost

Effectiveness

E. Accountabili

ty

F. Timeline

ss


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Planning Premises

Meaning:“Premises are assumptions providing a background against which estimated events affecting the planning will take place”

Types of Premises:A. Internal Premises and External PremisesB. Controllable and Non Controllable PremisesC. Tangible and Intangible Premises


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Planning Premises

A. Internal Planning Premises1. Sales forecast2. Capital Investments3. Basic Policies4. Supply of Materials and Parts5. Development of Unit6. Capacity of EmployeesB. External Premises1. Relating to general business environment Political stability Government control Government fiscal policy Population trends Employment, productivity and National Income


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Planning Premises

Price level Technological changes International Political system Trade cycles

2. Relating to product Market Industry Demand Individual Demand

3. Relating to factor Market Business Location Labour availability Sources of materials and parts Availability of capital

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Forecasting


Methods of Sales forecasting1. Jury-of-Executive Opinion method2. Survey of buyers intentions3. Trend projection method4. Correlation analysis method5. Economical indicators method6. Controlled experiments7. Econometric model method

Procedure for Determining Premises/Elements of Forecasting

1. Developing the Groundwork2. Estimating future demand3. Comparing actual with Estimated results4. Modifying the Forecast Process


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Planning Premises

Importance of Premises1. For Effective Planning2. For Reducing risk and Uncertainties3. Change in Planning4. Co-ordination


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Paper

Q. A. For the following questions write the correct option selecting from the given option (1 Mark each)1. The first function of management is………………….a. Planning b. organization c. Staffing d. Controlling2. Management structure has………………………..Levelsa. One b. two c. three d. four3. In large units what is used as effective medium of planning?a. Reporting b. Budget c. Planning d. Directing4. The pre-thinking for future in present is called…………….a. Planning b. Management c. Directing d. Control5. The statement of future income and expenditure is called……………a. Planning b. Organization c. Budget d. Program6. The arrangement for carrying out Programs is………….a. Objective b. Policy c. Method d. Rules7. Who was the promoter of the concept of scientific management?a. Mr. George R. Terry c. Mr. F.W.Taylorb. Mr. Henry Fayol d. Mr. Luther Gulick


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Paper

8. The winner of title “Father of modern management” is …………………..a. Frederick Taylor b. George Terry c. Henry Fayol d. Harold Kuntzand9. The easy method to put knowledge into practice is……………….a. Science b. Art c. Profession d. Employment10. The art of getting work done through others staying with them is called…………….a. Planning b. Management c. Administration d. Controlling

Q.B. Answer the following questions- Attain any three (5 Marks Each)1. What is the management? And explain the functions of management.2. Give the Meaning of Planning and Explain the step or Process of Planning.3. “Management is a Science or an Art” Explain Statement.4. Describe the Henry Fayol Principle of management.

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Management