Management 1 MEANING Management is the process of

Management 1 � 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

Management 2 � 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 � 1. 2. 3. LIMITATION It is not possible to formulate definite principle Dynamism reduce the effectiveness of planning and forecasting Uniform principle cannot be applicable for all type of organization Prepared by Ghanshyam M. Bhuva

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

Management 4 � MANAGEMENT AS A PROCESS Ø “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 Ø Ø Ø Prepared by Ghanshyam M. Bhuva

Management 5 � MANAGEMENT IS SCIENCE OR AN ART � Management is Science: “science is specialized & systematic knowledge based on principle” Ø Science teaches Principles Ø To think: Determine the Goal, Planning, method, Strategies. Ø Characteristics: 1. 2. 3. Systematic body of knowledge Management is social science Management is an inexact science Prepared by Ghanshyam M. Bhuva

Management 6 � Management is an Art: Ø Ø 1. 2. 3. � Ø Ø Ø “Art is application of knowledge & skill to achieve the results: The function of Art like Achievement of Goal, Implementation of Planning Characteristics Use of knowledge Creative Art 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

Management 7 � 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

Management 8 � 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

Management 9 � FREDERICK TAYLOR’S PRINCIPLES OF MANAGEMENT � Fraderick Taylor’s is the father of scientific management � Two classes are engaged in business like Owner • Demanded high profit Employee/workers • Demanded high wages � 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 capacity 2. To give incentive up to 30% to 100% Prepared by Ghanshyam M. Bhuva

Management 10 � Scientific Principle of Taylor’s 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

Management 11 � HENRY FAYOL’S PRINCIPLE OF MANAGEMENT Ø Henry fayol’s is the father of Modern Management Ø Taylor suggested new standard of work like piece- rate system. This system is well organized but Fayol Presented the same more effectively. Ø Henry Faloy concentrated on the Top and Bottom level management also. Ø 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

Management 12 � Henry Fayol’s 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

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

Management 14 � 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

Management 15 � BOTTOM LEVEL 1. Get instructions & order 2. Plan for the daily routine 3. Maintain proper human resources 4. 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 Specialized skill is needed skill Prepared by Ghanshyam M. Bhuva Large No.

Planning 16 � 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

Planning 17 � 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 � 1. 2. 3. 4. 5. 6. LIMITATION Planning is Time consuming Planning is Costly Planning is unnecessary Planning is an attack on the freedom of the employee Incomplete information: Ex: -Credit card Uncertainty of external factors Prepared by Ghanshyam M. Bhuva

Planning 18 �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 Prepared by Ghanshyam M. Bhuva

Planning 19 � TYPES OR ELEMENTS OR COMPONENTSOF PLANS 1. 2. 3. 4. 5. 6. � A. 1. 2. 3. B. c. Objectives: Mission, Vision Policies : Strategies are decided for achievement of goal is called Policies. Strategies: Set of Action or tactic are called Strategies Rules : Rules establish order for getting discipline, Coordination, how to work for fulfilling a Programs: Policies and Plan are called Program(They guides to action or Sequence of activities) Budgets TYPES OF PLANNING On the basis of objectives Planning of the Existing business Reform Oriented planning Developmental planning On the basis of time Long range and Short Range Other types of Planning Prepared by Ghanshyam M. Bhuva

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

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

Planning 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. C. Scope of the Plan D. E. F. Accuracy and 1. Cost Objectivity Comprehensiven Accountability Timeliness Effectiveness 2. Unity 3. Consistency Prepared by Ghanshyam M. Bhuva

Planning Premises 23 � Meaning: “Premises are assumptions providing a background against which estimated events affecting the planning will take place” � Types of Premises: Internal Premises and External Premises B. Controllable and Non Controllable Premises C. Tangible and Intangible Premises A. Prepared by Ghanshyam M. Bhuva

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

Planning Premises 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 Prepared by Ghanshyam M. Bhuva

Forecasting 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 � 1. 2. 3. 4. Procedure for Determining Premises/Elements of Forecasting Developing the Groundwork Estimating future demand Comparing actual with Estimated results Modifying the Forecast Process Prepared by Ghanshyam M. Bhuva

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

Paper 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. Planning b. organization c. Staffing d. Controlling 2. Management structure has……………. . Levels a. One b. two c. three d. four 3. In large units what is used as effective medium of planning? a. Reporting b. Budget c. Planning d. Directing 4. The pre-thinking for future in present is called……………. a. Planning b. Management c. Directing d. Control 5. The statement of future income and expenditure is called…………… a. Planning b. Organization c. Budget d. Program 6. The arrangement for carrying out Programs is…………. a. Objective b. Policy c. Method d. Rules 7. Who was the promoter of the concept of scientific management? a. Mr. George R. Terry c. Mr. F. W. Taylor b. Mr. Henry Fayol d. Mr. Luther Gulick Prepared by Ghanshyam M. Bhuva

Paper 29 8. The winner of title “Father of modern management” is …………………. . a. Frederick Taylor b. George Terry c. Henry Fayol d. Harold Kuntzand 9. The easy method to put knowledge into practice is………………. a. Science b. Art c. Profession d. Employment 10. 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. Prepared by Ghanshyam M. Bhuva