Introduction to management

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Introduction to management

  1. 1. Introduction to Management
  2. 2. Definition Management is the art of getting things done through and with people in formally organized group. Management is defined for conceptual, theoretical and analytical purpose as that process by which manager create, maintain, direct and operate purposive organization through systematic, co- operative and coordinated human efforts.
  3. 3. Features of Management Organized activities Existence of objectives Working with and through people Relationships among resources Decision making
  4. 4. Nature of Management Multidisciplinary Dynamic nature of principles Relative but not absolute Science Art Profession Universality of management
  5. 5. Management and Administration – A Terminological Conflict These controversies have resulted into three different approaches: 1) Administration is above management 2) Administration is a part of management 3) Administration and Management are same
  6. 6. F. W. Taylor’s contribution in Management Taylor developed scientific management based on his experience. His contributions can be described in two parts : 1) Main features of scientific management 2) Principles of scientific management.
  7. 7. Features of Scientific Management Separation of planning and doing Functional foremanship Job analysis Standardization Scientific selection and training of workers Financial incentive Economy Mental revolution
  8. 8. Workshop Manager Planning incharge Production incharge Route Clerk Instruction card clerk Time and cost clerk Disciplinarian Speed boss Inspector Maintenance foreman Gang boss Worker
  9. 9. Principles of Scientific Management Replacing the rule of thumb with science Harmony in Group action Co-operation Maximum output Development of workers
  10. 10. Contribution of Henry Fayol Fayol observed in certain activities of an industrial organization which could be divided into six groups: Technical, Security, Financial, Commercial, Accounting and Managerial He has divided his approach of studying management in to 3 parts: 1) Managerial qualities and training 2) General principles of management 3) Elements of management
  11. 11. Managerial Qualities Physical (health, vigour) Mental (judgment and adaptability) Moral (energy, initiative loyalty) Educational Technical Experience
  12. 12. General principles of Management Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual to general interest Remuneration of personnel Centralization
  13. 13. Continue.. Scalar chain Order Equity Stability of tenure Initiative Esprit de corps A GB C H D I JE KF
  14. 14. Elements Of Management Planning Organizing Staffing Directing Controlling
  15. 15. Fundamentals of Planning
  16. 16. Introduction Definition : “Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result.’
  17. 17. Importance of planning Primacy of planning To offset uncertainty and change To focus attention on objective To help in coordination To help in control To increase the organizational effectiveness
  18. 18. Planning process Perception of opportunities Establishing objectives Planning premises Identification of alternatives Evaluation of alternatives Choice of alternative plans Formulation of supporting plans Establishing sequence of activities
  19. 19. Types of Plans
  20. 20. Objectives and MBO
  21. 21. Introduction Objectives may be defined as the end results which an organization tries to achieve. It also defines as the goals, purposes or aims that organizations wish to achieve over varying periods of time.
  22. 22. Hierarchy of Objective Top Level Middle Level Lower Level
  23. 23. Functions and Contributions Defines organization Direction for decision making Performance standard Basis for decentralization Integrating individual, group and organization
  24. 24. MBO (Management by Objectives Introduction MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner, consciously directed towards the effective and efficient achievement of organizational objectives.
  25. 25. MBO Process Organizational Purpose and objectives Planning Premises Key Result Areas (KRA) Superior’s objectives Superior’s recommendation for subordinate’s objectives Subordinate’s statement to his objectives Subordinate’s agreed objectivesMatching resources Subordinate’s Performance Performance appraisal and Review Recycling
  26. 26. Benefits of MBO Better managing Clarity in organizational action Personnel satisfaction Basis for organizational change
  27. 27. Decision Making Process Specific objectives Identification of problems Search for alternatives Evaluation of alternatives Choice of alternatives ActionResults Diagnosis Analysis Experience Experiments R & D
  28. 28. LEADERSHIP
  29. 29. Definition “Leadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals.” Terry has defined leadership as a “ continuous process of influencing behaviour.”  Simply defined as “ Leadership is the process of influencing and supporting others to work enthusiastically towards achieving objectives.”
  30. 30. Difference between a Leader and a Manager Manager  Appointment  Formal authority  Focus on the organizational objectives  About efficiency i.e doing things right  About coping with complexity, about brining order and consistency to organizational life  Authority is depends on his position Leader  Emerges  Informal power  Focus on the followers  About effectiveness i.e. doing right things  About coping with change, about bringing a sense of purpose and direction  Power is depends on the leader’s ability
  31. 31. Importance of Leadership 1) Motivating Employees 2) Creating Confidence 3) Building Morale
  32. 32. Leadership Approach Behavioural Approach - Autocratic Leadership - Participative / Democratic Leadership - Free-rein Leadership (Laissez-faire) Situational Approach
  33. 33. Theories of Leadership Trait Theory - Personal qualities : Physical & Intelligence - Acquirable qualities :Emotional Stability, Empathy, Motivating, Communication, Human Relations, Social, Technical Skills Behavioural Theory - Task oriented behaviour or problem oriented - Group oriented behaviour
  34. 34. Theories of Leadership Situational theory
  35. 35. Motivation  Definition  Maslow’s Need Hierarchy Theory - Lower Needs : Physiological need (hunger etc.,) Safety and Security - Higher Needs : Social (Belongingness) Self-esteem ( recognition and attention) Self-Actualisation (maximizing the use of abilities, skills and potential) Needs of Individuals Providing Satisfactory environment for need fulfillment Engagement in work
  36. 36. A. H. Maslow’s hierarchy of needs PHYSIOLOGICAL OR SURVIVAL NEEDS SAFETY NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS ESTEEM NEEDS SELF- ACTUALIZATION
  37. 37. ATTITUDE  Meaning  Features  Functions  Factors affecting to Attitude formation
  38. 38. Job Satisfaction Introduction Factors affecting Job Satisfaction : 1) Personal : Age, Education , Gender, other 2) Organizational : Occupational Level, Job Content, Considerate Leadership, Pay & Promotion, Work Group
  39. 39. Types of Business Organization Private Sector Organization Public Sector Organization Joint Sector Organization – Venture captial company
  40. 40. Private Sector Organization Sole Proprietorship Partnership Joint Stock companies Co-operative Societies
  41. 41. Public Sector Organization Government Departments Public organization Government Companies
  42. 42. Definition “Leadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals.” Terry has defined leadership as a “ continuous process of influencing behaviour.”  Simply defined as “ Leadership is the process of influencing and supporting others to work enthusiastically towards achieving objectives.”
  43. 43. Difference between a Leader and a Manager Manager  Appointment  Formal authority  Focus on the organizational objectives  About efficiency i.e doing things right  About coping with complexity, about brining order and consistency to organizational life  Authority is depends on his position Leader  Emerges  Informal power  Focus on the followers  About effectiveness i.e. doing right things  About coping with change, about bringing a sense of purpose and direction  Power is depends on the leader’s ability
  44. 44. Importance of Leadership 1) Motivating Employees 2) Creating Confidence 3) Building Morale
  45. 45. Leadership Approach Behavioural Approach - Autocratic Leadership - Participative / Democratic Leadership - Free-rein Leadership (Laissez-faire) Situational Approach
  46. 46. Theories of Leadership Trait Theory - Personal qualities : Physical & Intelligence - Acquirable qualities :Emotional Stability, Empathy, Motivating, Communication, Human Relations, Social, Technical Skills Behavioural Theory - Task oriented behaviour or problem oriented - Group oriented behaviour
  47. 47. Theories of Leadership Situational theory
  48. 48. Motivation  Definition  Maslow’s Need Hierarchy Theory - Lower Needs : Physiological need (hunger etc.,) Safety and Security - Higher Needs : Social (Belongingness) Self-esteem ( recognition and attention) Self-Actualisation (maximizing the use of abilities, skills and potential) Needs of Individuals Providing Satisfactory environment for need fulfillment Engagement in work
  49. 49. A. H. Maslow’s hierarchy of needs PHYSIOLOGICAL OR SURVIVAL NEEDS SAFETY NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS ESTEEM NEEDS SELF- ACTUALIZATION
  50. 50. ATTITUDE  Meaning  Features  Functions  Factors affecting to Attitude formation
  51. 51. Job Satisfaction Introduction Factors affecting Job Satisfaction : 1) Personal : Age, Education , Gender, other 2) Organizational : Occupational Level, Job Content, Considerate Leadership, Pay & Promotion, Work Group
  52. 52. Types of Business Organization Private Sector Organization Public Sector Organization Joint Sector Organization – Venture captial company
  53. 53. Private Sector Organization Sole Proprietorship Partnership Joint Stock companies Co-operative Societies
  54. 54. Public Sector Organization Government Departments Public organization Government Companies
  55. 55. FINANCIAL MANAGEMENT
  56. 56. Introduction Broadly concerned with the acquisition and use of funds. Scope: 1) How large should be firm be and how fast should it grow? 2) What should be the composition of the firm’s assets? 3) What should be the mix of the firm’s financing? 4) How should the firm analysis, plan and control its financial affairs?
  57. 57. Evolution of Financial Management Three broad phases : A.Traditional phase B.Transitional phase C.Modern phase
  58. 58. Goals  Main Goal  Alternative Goal
  59. 59. Key Activities of Financial Management A. Financial analysis, planning and control B. Management of the firm’s asset structure C. Management of the firm’s financial structure
  60. 60. Overview of Financial activities Financial Analysis, Planning and Control Balance Sheet Long-Term Financing Fixed Assets Short-Term Financing Current Assets Management of Firm’s Financial Structure Management of Firm’s Asset Structure
  61. 61. Organization of Financial Function Chief Finance Officer Treasurer Controller Cash Manager Credit Manager Capital budgeting Manager Fund raising Manager Portfolio Manager Financial Accounting Manager Cost Accounting Manager Tax Manager Data processing Manager Internal Auditor
  62. 62. Functions of Financial System  Payment system  Pooling of funds  Transfers of resources  Risk management  Price information for decentralized decision making  Coping with informational asymmetry
  63. 63. Financial Instruments Money Demand deposit Short-term debt Intermediate-term debt Long-term debt Equity stock
  64. 64. Financial Institutions
  65. 65. Financial Markets Money Market Capital Market Government Securities Market Primary Market Secondary Market
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