Syllabus Chapter – 2 : Marketing Marketing & Selling concept Advertising Material management Inventory Control
Syllabus Chapter – 3 : Costing Elements of Cost, Cost estimation Entrepreneurship Starting of SSI Units Forms of Business organizations Social responsibilities and Business ethics in India
Introduction to management
Definition of management S. George : Management is getting things done through others George Terry : Management is a distinct process consisting of planning, organizing, actuating and controlling performance to determine and accomplish the objectives by the use of people and resources. Henry Sisk : Management is the co-ordination of all resources through the process of planning, organising, directing and controlling in order to attain stated goals.
What is Process of management Management is a process. This process uses the resources and using these resources it tries to attain Goals. Resources are : Men, material, machine, money, method and Information Goals are : Producing products, Offering services, Profit maximization and Social responsibility.
Nature & Characteristics of Management Management is an organised activity Management is purposeful activity It involves efforts of groups It works as a catalyst It’s a decision making process It co-ordinates activities and various resources It is an integrated process Management is both science and art Management is multidisciplinary Management is a Continuous process
Functions of management Planning Organising Staffing Directing Controlling
Planning : Planning is a most basic and primary function of management Planning is a function determines in advance what should be done, how it is to be done, by whom it is to be done etc It is a determination of objectives & goals Formulation of policies, rules and budgets Laying down procedures and standards of performance
Organising : Organising involves identification and classification of required activities and grouping the activities to attain objectives Work is assigned to the people according to their knowledge. Organising involves classifying who will do what task and who is responsible for what results.
Staffing : Determination of manpower requirement in terms of number and skill required Recruitment and interviewing candidates Selection of suitable candidates Placement, induction and orientation Training and development of employees Transfer, promotion and demotion of employees Compensation and performance appraisal
Directing : Issuing orders and instructions to the subordinates. Supervising subordinates at work Motivating them for effective work Effective communication
Controlling : Establishing standards of performance Measuring current performance and comparing it against the established standards Finding out reasons of difference between standard performance and current performance Taking corrective measures if there is any difference to ensure attainment of objectives
Scope of management : Scope of management is very vast Every field needs management Management is interdisciplinary Management principles are universal in nature
Importance or Significance of management : Effective utilization of resources Development of resources To incorporate innovations Integrating various groups Stability in the society
Levels of Management Management Top Level Management Middle level management Lower Level Or Supervisory level
Top Level Management It Consists of Board of Directors, Chairman, CEO, MD or GM, President, VP etc It is the highest authority It decides the objectives of Organisation It is responsible for policy formation It control the organisational operations
Middle level management It includes departmental, divisional or sectional heads It implements policies chalked out by top management Act as mediator or connector between top management and lower lower level management It is responsible for creating work spirit among workers It trains employees and co-ordinates other departments
Lower level management It consists of senior supervisors, line supervisors etc The executives at this level are in direct contact with workers Their main responsibility is to see that the work is carried out properly Workers look towards supervisors for orders, policies, instructions, guidance, encouragement etc They are responsible for maintaining descipline among workers
Difference between Management and Administration Some authors say management and administration are say Some say Administration is above management And some say Administration is part of management
Difference between Management and Administration AdministrationManagement 1.It is a thinking process 2.It is mainly top level function 3.Administrative decisions are mainly influenced by public opinion and external environment 4.Planning and control are main functions 5.Conceptual skills are required 6.It is mainly used in government and public sector 7.Ex : Ministers, commissioner, registrar, governor etc 1.It is a doing process 2.It is mainly middle and lower level function 3.Management functions are mainly influenced by objectives and policies of organizations 4.Directing and organising are main functions 5.Technical and human skills are required 6.It is mainly used in business organisations 7.Ex : MD, GM, Sales manager
Management & Social responsibility Every organisation uses social resources. So it has certain responsibilities towards society.
Social responsibility towards its workers : Organization should protect interest of workers Organization must pay fair wages and other financial benefits Organization should provide growth opportunities Organizational climate should be such that workers will feel like working in home
Social responsibility towards Consumers : Consumers are those because of whom organization make profits. So it should have social responsibilities towards consumers Consumer should be charged with fair and reasonable prices Product should not be harmful to health Management should not misguide consumer with false advertisement Organisation should not create scarcity of product for profit It should provide proper service
Social responsibility towards Society Organisation should provide healthy environment by controlling pollution It should not take decision which will harm to society as a whole It should maintain fair business policies and practices.