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
Prepared by Ghanshyam M.Bhuva
Prepared by Ghanshyam M.Bhuva
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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
Prepared by Ghanshyam M.Bhuva
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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
Prepared by Ghanshyam M.Bhuva
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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