1. Role and Importance of management

2. Scientific management
F. W. Taylor- father of scientific management
His principles:
Replace the rules of thumb with scientific rules
Obtain a harmony in group action
Achieve co-operation of human beings, rather than chaotic individualism
Work for maximum output
Develop all workers to the fullest possible potential for their own highest possible prosperity
Disciples of Taylor-C. B. Barth, H. L. Gantt, L. Gilberth

3. Principles of Operational Management (Henry Fayol)
Division of work
Authority and responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual to corporate interest
Centralization
Equity
Stability of tenure – controlled turnover of people
Initiative

4. Functions of the Manager
An individual who gets the things done is manager.
The activities which are performed through the managerial functions are:
Planning
Organization
Staffing
Directing
Coordinating
Controlling

5. Planning
Determining the goals and objectives and evolving strategies, policies, programmes and procedures for the achievement of these goals.
Decision making

6. Organization Evolving the structure of the people and their roles
Specifying the authority structure and assigning the activities to the people backed by the delegation of the authority

7. Staffing Manning the positions in the organization structure
Requires defining the manpower needs per position (ex: cadre ratio)
Appropriate selection of the person/persons

8. Directing Implementing the process of management
The manager is required to guide, clarify and solve the problems of the people and their activities
Motivate the people

9. Coordinating
Brings a harmony and smoothness in the various group activities and individual efforts
Synchronizing individual actions and the efforts which may differ because of differences in the personal goals and the common goals, the differences in the interpretation in the methods and directions
Differences in the approach, timing, efforts and interests are needed to be coordinated

10. Controlling
Measurement of an output, comparing it with the goals, the objectives and the targets and taking corrective actions, if necessary
Evaluates the performance, highlights abnormal deviations, guides a manger to take specific corrective actions
Ensures an achievement of the plan
Essence of controlling lies in good planning
The control is central to the managerial function

11. Managers and the environment
All managers work in an environment in which the organization operates
Number of forces are generated in the environment which have an impact on the managerial performance
Forces may be from within or from outside
Internal environment is controllable while external is beyond his control
External environment: 5 classes

12. Economic environment
Capital: required to run the organization, long-term, short-term, internal sources, borrowed (interest charged forms the cost of capital)
Labour: cost of labour is determined every 2-3 years by a union agreement based upon the cost of living index, wage standards, the availability of labour etc.
Price changes: decrease in the demand and supply, changes in the consumer behavior, consumption pattern and the money supply and so on

13. Economic environment
Productivity: result of the capital, labour and technology. Better technology affects the cost and the productivity
Fiscal and monetary policy: announced and controlled by the government. The organizations profit position is affected by this policy
Customers: rules the business in a buyer’s market. Customer behaviour is unpredictable. it is not always possible to predict these changes well in advance in order to take any managerial action to meet the changes situation

14. Technological environment
Has major impact on business
Affects the business prospects, cuts down the profits, and forces the management to change the course of the business operations
Requires changes in product design and promotes new concepts
New business opportunities
Changes the work culture, the methods and the systems
Ex: aviation, electronics, energy, communication, consumer goods industry, medicines etc.

15. Social environment
Built around the attitudes, the desires, the expectations, the degree of intelligence and education, the beliefs and customs, the religion, the caste and creed of the people.
Deeply routed in the society
Ex: use of fertilizers, marketing in rural and urban areas, frozen goods

16. Political environment
Most important factor which affects the business in Indian environment
The unstable political environment brings stagnancy in business development
The changes in ruling party bring economic policy changes
The sectoral preferences and its policies change with ruling party which have a long term impact on business performance

17. Ethical environment
Some business problems arise due to failing in the ethical grounds
The business ethics emerge from the professional conduct, the business norms and codes on confidentiality, the payment and documentation etc.

18. All these factors are beyond the control of the manager
All these factors are beyond the control of the manager. At best he can predict, access, evaluate and take such actions which will help them to control the situation

19. Management as a control system
Establish standards of performance
Measure performance
Corrective action
No action OK
Not OK
Actual vs STD.

20. THANK YOU