Subject Name Management Entrepreneurship Development Subject Code 17

Subject Name : Management & Entrepreneurship Development Subject Code : 17 ES 51/15 ES 51 Module Name : Module 1 : Management & Planning, Part 1 – Management Faculty Name : Sasindran Prabhu Faculty Designation : Associate Professor College & Department : KSSEM, ECE, V Semester, Jul-Dec 2019

15 ES 51/17 ES 51 : Management & Entrepreneurship Development Module 01 Part A : Management

What is Management? • According to Mary Parker Follett: “the art of getting things done through people”. • According to George R Terry “a process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources”. • Ross Moore states “Management means decision-making”.

Characteristics of Management • Management is a continuous process • Management is an art as well as science • Management aims at achieving predetermined objectives • Management is a factor of production • Management is decision-making • Management is needed at all levels • Management aims at maximum profit • Management is a dynamic function • Management is a profession • Management as a career

Importance of Management • Management is a critical element in country’s growth • Management enables a country’s economic development by bringing the 4 factors of production (men, materials, money and machines) together. • Without management, the country’s resources will remain resources and never become production • Not only in business, it is applied in education, social, military and Govt. • It follows the same pattern irrespective of the size of the organization. • Management is dynamic and life giving element in every organisation. • It co-ordinates current activities, plans future ones, arbitrates disputes and provides leadership. • Adapts to environment, determine success, also the very survival.

MANAGEMENT FUNCTIONS OR THE PROCESS OF MANAGEMENT

Planning • Planning is the primary function of management. • It is looking ahead and preparing for the future. • It determines in advance What, How, When should be done. • It involves determination of specific objectives, programs, setting policies, strategies, rules and procedures and preparing budgets. • Planning is a function which is performed by managers at all levels – top, middle and supervisory. • Plans made by top management for the organization may cover periods as long as five to ten years, whereas plans made by low level managers cover much shorter periods.

Organizing • It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. • Organizing involves dividing work into: Ø Identification of activities. Ø Classification of grouping of activities. Ø Assignment of duties. Ø Delegation of authority and creation of responsibility. Ø Coordinating authority and responsibility relationships • According to Koonz O’Donnel, “Organization consists of conscious coordination of people towards a desired goal”. E. g. an organization for scientific research will have to be very different from one manufacturing automobiles.

Staffing • Staffing involves managing various positions of the organizational structure. • It involves selecting and placing the right person at the right position • Staffing involves: ØManpower Planning (estimating man power in terms of searching, choose the person and giving the right place). ØRecruitment, selection & placement. ØTraining & development. ØRemuneration. ØPerformance appraisal. ØPromotions & transfer

Directing • The actual performance of the task starts with the function of direction. • It is also called by various namely “leading”, “motivating”, “activating”. • Directing involves these sub functions: (a) Communicating: It is the process of passing information from one person to another. (b) Leading: It is a process by which a manager guides and influences the work of his subordinates. (c) Motivating: It is arousing desire in the minds of workers to give their best to the enterprise.

Controlling • Control is the process of checking to determine whether or not proper progress is being made towards the objectives and goals and acting if necessary to correct any deviations. • Control involves three elements: (a) Establishing standards of performance. (b) Measuring current performance and comparing it against the established standards. (c) Taking action to correct any performance that does not meet those standards.

FUNCTIONAL AREAS OF MANAGEMENT Production: 1. Purchasing: It involves procuring right quantity of materials at the right quality, at the right time and at the right price from the right supplier 2. Materials management: This involves storing of materials, issue of materials to various departments. 3. Research and Development: It deals with improving the existing products and process and developing new products and process.

Contd…. • Marketing: This area involves the distribution of organizations’ products to the buyers. The sub-activities are: (1) Advertising: Involves giving information about products to buyers. (2) Marketing research: It is related with the systematic collection, analysis of data relating to the marketing of goods and services. (3) Sales management: It involves management efforts directed towards movement of products and services from producers to consumers.

Contd…. • Personnel: It deals with the management of human resources with the following sub-activities: (1) Recruitment and Selection: It deals with recruitment and selection of employees. (2) Training and Development: It deals with training of employees and making them more efficient. (3) Wage and Salary Administration: Deals with fixing of salaries, job evaluation, promotion, incentives etc. (4) Industrial Relations: Deals with maintenance of good employee relations.

. Roles of Management - According to Henry Mintz Berg

Management Roles

Interpersonal Role There are three types of interpersonal roles: (1) Figure head role: In this role, manager has to perform duties of traditional nature such as attending social functions of employees, taking an important customer to lunch and so on. (2) Leader role: Manager’s leader role involves leading the subordinates motivating and encouraging them. (3) Liaison: In liaison role, manager serves as a connecting link between his organization and outsiders. Managers must cultivate contacts outside his vertical chain to collect information useful for his organization.

Information Role There are three types of informational roles: (1) Monitor: In his monitoring role, manager continuously collects information about all the factors which affects his activities. Such factors may be within or outside organization. (2) Disseminator: In the disseminator role, manager possesses some of his privileged information to his subordinates who otherwise not be in a position to collect it. (3) Spokesperson: As a spokesperson, manager represents his organization while interacting with outsiders like customers, suppliers, financers, government and other agencies of the society.

Decisional roles Manager performs three roles 1. Entrepreneur: As an entrepreneur, a manager assumes certain risks in terms of outcome of an action. A manager constantly looks out for new ideas and seeks to improve his unit by adopting it to dynamic environment. 2. Disturbance handler: In this role, manager works like a fire-fighter manager contains forces and events which disturb normal functioning of his organization. The forces and events may be employee complaints and grievances, strikes, shortage of raw materials etc. 3. Resource Allocator: In this role, the manager divides work and delegates authority to subordinates 4. Negotiator: In his role of negotiator, manager negotiates with various groups in the organization. Such groups are employees, shareholders and other outside agencies

LEVELS OF MANAGEMENT

Levels of Management Top management : which consists of owners, BOD, managing Directors, Chief Executive and General Mangers, The main functions of it are: 1) Determining the objectives or goals of the enterprise 2) Framing policies and making plans to achieve the objectives laid 3) Setting up an organizational framework 4) Assembling the resources of money, men , materials, machines and methods 5) Exercising effective control 6) Providing overall leadership

Levels of Management Middle management: It acts as a necessary link between the top and the lower level management or operating level. It is concerned with the task of implementing the policies and plans laid down by the top management. It can be further classified as Senior middle management, Functional Heads The important functions of it are: a) Interpreting the policies framed by top management. b) Preparing the organizational set up in their respective departments. c) Selecting suitable operative and supervisory personnel. d) Assigning duties and responsibilities for timely execution of the plans.

Levels of Management Lower or operating management: It is the lowest level in the hierarchy of management and actual operations are the responsibility of this level of management. It consist of supervisors, and foremen who are in direct touch with the workers. The function are: a) To plan day to day working within the goal prescribed by the higher management b) To issue orders and instructions for executing the work c) To arrange material and equipment for the work force. d) Providing on the job training to workers. e) To supervise and control the work of workers and maintain personal contact with them.

Management Skills

MANAGEMENT: A SCIENCE OR ART? Management as a science Ø Science is a systematized body of knowledge. ØIt comprises of: (1) Methods of inquiry are systematic and empirical. ü‘Systematic’ means, being orderly and unbiased. üEnquiry must be empirical (experimental) and not merely an armchair speculation. (2) Information can be ordered analyzed üScientific information collected in the raw form is finally ordered analyzed with statistical tools.

(3) Results are cumulative and communicable. üScience is also cumulative in that what is discovered is added to that which has been found before. üIt is communicable which permits repetition of study. When study is replicated then the second try produces the results similar to the original. üScience denotes two types of systematic knowledge; natural or exact and behavioral or inexact. v. Systematic knowledge means studying of any one of the parameters like velocity, humidity , pressure etc. , (physics and chemistry). v. In behavioral or in exact science means study of person and number of factors affecting him. v. E. g. We cannot study the effect of monetary incentives on workers productivity.

Management is an art • Art implies application of knowledge & skill to trying about desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. • A manager has to coordinate various resources against several constraints to achieve predetermined objectives in the most efficient manner. • Art has the following characters – 1. Practical Knowledge. 2. Personal Skill- personalized nature. 3. Creativity- requires innovation & Creativity. 4. Perfection through practice. 5. Goal-Oriented.

Comparison between science and Art Science Art Advances by knowledge Advances by policies Process Feels Predicts Guesses Defines Describes Measures Lectures

MANAGEMENT: A PROFESSION • It has become a profession & organizations are developing professional managers who can contribute to their growth. • The success of a manager is depending upon his professionalism. • Main Features of a profession are as follows: 1. Existence of organized & systematic body of knowledge. 2. Formalized method of acquiring knowledge & skill. 3. Existence of an association with professionalism at its goal 4. Existence of ethical code of conduct to regulate the behavior of members of profession. 5. Charging of fees based on service, but with a due regard for the priority of service over the desire of the monetary reward.

MANAGEMENT AND ADMINISTRATION • Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programs and projects”. • It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.

Development of Management Thought (or) Evolution of Management The evolution of Management can be divided into 2 Parts: • Early Management Approach. • Modern Management Approach. Early Management Approaches • F. W Taylor’s Scientific Management • F. W. Taylor started his career as an apprentice in a steel company in USA and finally became Chief Engineer. • He launched a new movement in 1910 which is known as scientific management. • Taylor is known as Father of Scientific Management

Continued………. • The following are the principles of scientific management: • Separation of planning and doing: In the pre-Taylor era, a worker himself used to decide or plan how he had to do his work and what machines and equipment's would be required to perform the work. But Taylor separated the two functions of planning and doing, he emphasized that planning should be entrusted to specialists. • Functional foremanship: Taylor introduced functional foremanship for supervision and direction. Under eight-bossscheme of functional foremanship, four persons: (i) route clerk, (ii) instruction card clerk, (iii) time and cost clerk and (iv) disciplinarian are related with planning function, and the remaining four: (vi) speed boss, (vii) inspector, (viii) maintenance foreman, and (ix) gang boss are concerned with operating function.

Continued………. • Elements of scientific management: The main elements of scientific management are: (a) Work study involving work method and work measurement using method and time study. (b) Standardization of tools and equipment's for workmen and improving working conditions. (c) Scientific Selection, placement and training of workers by a centralized personal department. • Financial incentives: In order to motivate workers for greater and better work Taylor introduced differential piece-rate system. According to Taylor, the wage should be based on individual performance and on the position which a worker occupies.

Continued………. • Economy: Maximum output is achieved through division of Labor and specialization. Scientific Management not only focuses on technical aspects but also on profit and economy. For this purpose, techniques of cost estimates and control should be adopted.

Henry Fayol’s Administrative Management • Henry Fayol was a French Mining Engineer turned into a leading industrialist and successful manager. • Foyal focused on general administrative and managerial functions and processes at the organizational level. • Foyal divided activities of business enterprise into six groups: Technical, Financial, Accounting, Security, and Administrative or Managerial. • He defined management in terms of five functions: Planning, Organizing, Commanding, Coordinating and Controlling.

• Henri Fayol in his book titled "Industrial and General Administration" published in 1916, gave following 14 principles of management : 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. Union is strength/ Centralization, 8. Initiative, 9. Equity, 10. Scalar Chain 11. Order 12. Stability of Tenure 13. Remuneration, 14. Esprit De Corps,

Human Relations Approach • Elton Mayo emphasize that organization is a social system and the human factor is the most important element within it. • Elton Mayo and others conducted experiments(known as Hawthorne experiments) and investigated informal groupings, informal relationships, patterns of communication, patterns of internal leadership etc. • Elton Mayo is generally recognized as Father of Human Relations School.

Modern Mgmt. Approach There are 4 Important Modern Mgmt Approaches: • Behavioral Approach: It of concerned with the applications of methods & findings of psychology & sociology for the purpose of understanding the organizational behavior. • Quantitative Approach: An approach that focuses on the use of quantitative tools for managerial decision making. The quantitative management viewpoint focuses on the use of mathematics, statistics and information aids to supports managerial decision making and organizational effectiveness. Three main branches have evolved: operations research, operations management and management information systems.

Contingency Approach: § A view point which believes that appropriate managerial action depends on the peculiar nature of every situation. § This approach is a viewpoint which argues that there is no best way to handle problems. § Managerial action depends on the particular situation. Hence, rather than seeking universal principles that apply to every situation, this theory attempts to identify contingency principles that prescribe actions to take depending on the situation. Systems Approach: § A system is a set of interdependent parts which form a unit as a whole that performs some function. § An organization is also a system composed of four independent parts namely, task, structure, people and technology. § The central to the system approach is ‘holism’ which means that each part of the system bears relation of interdependence with other parts and hence no part of the system can be accurately analyzed and understood apart from the whole system. .

Link to “ 14 Principles of Management” https: //www. youtube. com/watch? v=RIoz. YN_rhk. A

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