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Management MEANING: Management is the process of Planning, organizing, directing & controlling for achievement of Goal CHARACTERISTICS: 1. Management is.

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Presentation on theme: "Management MEANING: Management is the process of Planning, organizing, directing & controlling for achievement of Goal CHARACTERISTICS: 1. Management is."— Presentation transcript:

1 Management MEANING: Management is the process of Planning, organizing, directing & controlling for achievement of Goal CHARACTERISTICS: 1. Management is Goal Oriented 2. Management is Universal 3. Management is Continuous Process 4. Management is Group activity 5. Management is Profession 6. Management is art & science 7. Management is dynamic 8. Management is decision making Prepared by Ghanshyam M.Bhuva 1

2 Management IMPORTANCE 1. Optimum Utilization of Resources 2. Achievement of Goal 3. Establishment of Sound Industrial Relationship 4. Effective Leadership 5. Raise the standard of Living 6. Accelerate the process of development 7. It is universal process LIMITATION 1. It is not possible to formulate definite principle 2. Dynamism reduce the effectiveness of planning and forecasting 3. Uniform principle cannot be applicable for all type of organization Prepared by Ghanshyam M.Bhuva 2

3 Management FUNCTION 1. Planning 2. Organization 3. Staffing 4. Directing 5. Motivation 6. Coordinating 7. Controlling 8. Reporting 9. Budget Prepared by Ghanshyam M.Bhuva 3

4 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 4

5 Management MANAGEMENT IS SCIENCE OR AN ART Management 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 knowledge 2. Management is social science 3. Management is an inexact science Prepared by Ghanshyam M.Bhuva 5

6 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 Characteristics 1. Use of knowledge 2. Creative Art 3. 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 Prepared by Ghanshyam M.Bhuva 6

7 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. Characteristics 1. Specialized skill 2. Training 3. Ethical standard 4. Association of member Prepared by Ghanshyam M.Bhuva 7

8 Management OBJECTIVES A. Economical Objectives 1. To earn enough profit 2. Production of goods and services 3. Creation of market 4. Innovation 5. Growth B. Social Objective 1. Production of goods & service to satisfy the requirement of society 2. Production of goods of good quality 3. Supply of goods at a reasonable price 4. Provide employment 5. Not to create artificial scarcity of goods C. Human Objective: 1. To give fair wages to workers 2. To provide good working condition 3. To provide for self development and education 4. Fair dealing with workers 5. Giving them a share in Management Prepared by Ghanshyam M.Bhuva 8

9 Management FREDERICK TAYLORS PRINCIPLES OF MANAGEMENT Fraderick Taylors is the father of scientific management Two classes are engaged in business like Taylors 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 Taylors gives suggestion: 1. To assign work to every workers according to his capacity 2. To give incentive up to 30% to 100% Owner Demanded high profit Employee/workers Demanded high wages Prepared by Ghanshyam M.Bhuva 9

10 Management Scientific Principle of Taylors 1. Separation of planning & doing 2. Functional foremanship 3. Job analysis 4. Standardization 5. Scientific selection & training 6. Financial incentives 7. Mental revolution(mental harmony) Prepared by Ghanshyam M.Bhuva 10

11 Management HENRY FAYOLS PRINCIPLE OF MANAGEMENT Henry fayols 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 management 1. Technical activity: Production 2. Commercial activity: Sales, Purchase 3. Financial activity: Fund management 4. Security activity: Protection of Property 5. Accounting Activity: recording of Transaction 6. Managerial Activity: Management Function Prepared by Ghanshyam M.Bhuva 11

12 Management Henry Fayols Principles 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to general interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability 13. Initiative 14. Team spirit Prepared by Ghanshyam M.Bhuva 12

13 Management THREE LEVEL OF MANAGEMENT Board of Directors, MD, GM Departmental heads 1. Production department 2. Marketing department 3. H.R.Department 4. Financial department Workers, Supervisors, Foremen Top level Middle level Bottom level Prepared by Ghanshyam M.Bhuva 13

14 Management Top Level Function 1. Trusteeship 2. Determination of objectives 3. Selecting the executives 4. Approving budget 5. Distribution of earning 6. To secure long range stability Bottom Level 1. Implement order of the CEO 2. Prepared Plan 3. Prepared Budget 4. Formulate police 5. Increase efficiency 6. Help top level management in policy decision Prepared by Ghanshyam M.Bhuva 14

15 Management BOTTOM LEVEL 1. Get instructions & order 2. Plan for the daily routine 3. Maintain proper human resources 4. Reporting to Middle level DIFFERENCES PointTop levelMiddle levelBottom level 1. Mng & Adm.M=H, A=LM=Less, A=HM=Least, A=Most 2. Authority & ResponsibilityHighAverageLease 3. Managerial FunctionsPlanningOrganizationDirecting 4. Numbers of memberFewMoreLarge No. 5. QualificationAll-round skill is needed Specialized skill Large No. Prepared by Ghanshyam M.Bhuva 15

16 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 oriented 2. Planning is primary function 3. Planning is all pervasive 4. Planning is continuous process 5. Planning is flexible 6. Planning concern with future 7. Planning is mental process 8. Planning is choice of alternatives Prepared by Ghanshyam M.Bhuva 16

17 Planning IMPORTANCE 1. Planning provide direction 2. Planning provide framework 3. Achievement of goal 4. Reduce the wastage 5. Reduce uncertainty 6. Effective control 7. Coordination LIMITATION 1. Planning is Time consuming 2. Planning is Costly 3. Planning is unnecessary 4. Planning is an attack on the freedom of the employee 5. Incomplete information: Ex:-Credit card 6. Uncertainty of external factors Prepared by Ghanshyam M.Bhuva 17

18 Planning PROCESS Establishing ObjectivesBuilding the PremisesCollection, Classification & Analysis of DataDetermining AlternativeEvaluating AlternativesSelection of Best AlternativesPreparing Derivative PlansProviding Follow up Prepared by Ghanshyam M.Bhuva 18

19 Planning TYPES OR ELEMENTS OR COMPONENTSOF PLANS 1. Objectives: Mission, Vision 2. Policies: Strategies are decided for achievement of goal is called Policies. 3. Strategies: Set of Action or tactic are called Strategies 4. 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 PLANNING A. On the basis of objectives 1. Planning of the Existing business 2. Reform Oriented planning 3. Developmental planning B. On the basis of time Long range and Short Range c. Other types of Planning Prepared by Ghanshyam M.Bhuva 19

20 Planning Prepared by Ghanshyam M.Bhuva 20 FACTORS AFFECTING SUCCESS OF PLANNING OR PRINCIPLE OF EFFECTIVE PLANNING 1. Clarity of objectives 2. Clarity of alternatives 3. Accurate forecasts and data 4. Cooperation of staff 5. Resources 6. Practical and realistic 7. Flexible 8. Adjustment to environment

21 Planning Prepared by Ghanshyam M.Bhuva 21 BARRIERS TO EFFECTIVE PLANNING Barriers A. Reluctance to establish Goal 1. Not willing to give up other Goals 2. Fear to failure 3. Lack of Knowledge of Organization 4. Lack of Knowledge of Environment 5. Lack of Confidence B. Resistance to Change 1. Uncertainty of future 2. Economic Reasons 3. Weaknesses in Change 4. Technical Problem C. Misunderstanding

22 Planning Prepared by Ghanshyam M.Bhuva 22 OVERCOMING BARRIERS TO EFFECTIVE PLANNING 1. Conduct the management Programmes 2. Effective system of Planning 3. Employees involved in planning 4. Proper Communication system should be developed 5. Technical Training CRITERIA FOR EVALUATING THE EFFECTIVINESS OF A PLAN A. Usefulness 1. Flexibility 2. Stability 3. Continuity 4. Simplicity B. Accuracy and Objectivity C. Scope of the Plan 1. Comprehensive ness 2. Unity 3. Consistency D. Cost Effectiveness E. Accountability F. Timeliness

23 Planning Premises Prepared by Ghanshyam M.Bhuva 23 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 Premises B. Controllable and Non Controllable Premises C. Tangible and Intangible Premises

24 Planning Premises Prepared by Ghanshyam M.Bhuva 24 A. Internal Planning Premises 1. Sales forecast 2. Capital Investments 3. Basic Policies 4. Supply of Materials and Parts 5. Development of Unit 6. Capacity of Employees B. External Premises 1. Relating to general business environment Political stability Government control Government fiscal policy Population trends Employment, productivity and National Income

25 Planning Premises Prepared by Ghanshyam M.Bhuva 25 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

26 Forecasting Prepared by Ghanshyam M.Bhuva 26 Methods of Sales forecasting 1. Jury-of-Executive Opinion method 2. Survey of buyers intentions 3. Trend projection method 4. Correlation analysis method 5. Economical indicators method 6. Controlled experiments 7. Econometric model method Procedure for Determining Premises/Elements of Forecasting 1. Developing the Groundwork 2. Estimating future demand 3. Comparing actual with Estimated results 4. Modifying the Forecast Process

27 Planning Premises Prepared by Ghanshyam M.Bhuva 27 Importance of Premises 1. For Effective Planning 2. For Reducing risk and Uncertainties 3. Change in Planning 4. Co-ordination

28 Paper Prepared by Ghanshyam M.Bhuva 28 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. Planningb. organizationc. Staffingd. Controlling 2. Management structure has………………………..Levels a. Oneb. twoc. threed. four 3. In large units what is used as effective medium of planning? a. Reporting b. Budgetc. Planningd. Directing 4. The pre-thinking for future in present is called……………. a. Planningb. Managementc. Directingd. Control 5. The statement of future income and expenditure is called…………… a. Planningb. Organizationc. Budgetd. Program 6. The arrangement for carrying out Programs is…………. a. Objectiveb. Policyc. Methodd. Rules 7. Who was the promoter of the concept of scientific management? a. Mr. George R. Terryc. Mr. F.W.Taylor b. Mr. Henry Fayold. Mr. Luther Gulick

29 Paper Prepared by Ghanshyam M.Bhuva The winner of title Father of modern management is ………………….. a. Frederick Taylorb. George Terryc. Henry Fayold. Harold Kuntzand 9. The easy method to put knowledge into practice is………………. a. Scienceb. Artc. Professiond. Employment 10. The art of getting work done through others staying with them is called……………. a. Planningb. Managementc. Administrationd. 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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