Business Management
Subject Coverage1. Management and Principles2. Planning3. Organizing4. Directing5. Controlling6. Total Quality Management7...
Module: 01Management and   Principles
Module Coverage•   Meaning, nature / characteristics•   Scope and functional areas of management•   Management as a scienc...
Definition Of Management• “Management is the art of getting things done through others” –  Mary Parker Follett• “Managemen...
Objectives of Management1. Proper utilization of resources2. Improving performance3. Mobilizing best talent4. Planning for...
Nature/Characteristics of              Management- Multidisciplinary        - Social Process- It is a group activity   - S...
Scope of ManagementActivities              Operations- Planning              - Production/Operations                      ...
Functions of Management1. Planning2. Organizing3. Coordinating4. Staffing5. Directing6. Controlling
Functions of Management1. Planning         2. OrganizingWhat to do?         - To identify, classify and                   ...
Functions of Management3. Staffing              4. DirectingManpower planning        Management in actionRecruitment      ...
Functions of Management5. Coordinating                          6. Controlling- Orderly arrangement of goods,          -Es...
Administration Vs Management
Difference         Administration          Management                          It is concerned about theNature of work    ...
Basis of Difference    Administration         Management                                It consists of owners who       It...
Principles of Management
1. Division of workThere is an efficient result in the operational level whentasks are distributed to qualified and compet...
2. Authority• With formal authority managers have the right  to command and gives order to their  subordinates
3. Discipline• Members in any organization have to respect  the rules and agreements governing it Respect  and obedience t...
4. Unity of Command    Employees must receive instruction onlyfrom one person.    Reporting to more than one managerresult...
5. Unity of Direction• Operations within any organization having the  same objective must be directed by only one  manager...
6. Subordination of the Individual     Interest to General interestIndividual interest must be subordinate togeneral inter...
7. Remuneration• Compensation for the work done should be  fair to the employees and the employers
8. Centralization• We have this approach by decreasing the role  of subordinates in decision making Managers  should retai...
9. Scalar Chain• The line of authority in any organization turns  in the order of rank from top management to  the lowest ...
10. Order• Either material or human resources should be  in the right place at the right time.• People should be in the jo...
11. Equity• Equity is combination of justice and kindness.• Equity in treatment and behaviour is liked by  everyone and it...
12. Stability of Staff• Employees work better if job security and  career progress are assured to them• A high employee tu...
13. Initiative• Managers should encourage their employees  for taking initiative with in limits of authority  and discipli...
14. Esprit de corps• Teamwork is fundamentally important to an  organization Work teams and extensive face  to face verbal...
Management Process
The Systems Approach• System Defined    – A set of interrelated and interdependent parts arranged in a manner      that pr...
The Organization as an Open System        2–34
Implications of the Systems                Approach• Coordination of the organization’s parts is essential for proper  fun...
Module: 02PLANNING
Module Coverage•   Nature and Importance and purpose of Planning•   Planning process•   Objectives, Types of plans•   Natu...
Meaning of Planning• A plan is a forecast for accomplishment. It is a  predetermined course of action.• It is todays proje...
Features of Planning•   Planning has a number of characteristics:   Planning is goal-oriented   Planning is a primary fu...
Steps in Planning Process Establishing objectives Developing premises Evaluating alternatives and selection Formulatin...
Importance of Planning• Planning helps an organisation in the  following ways: Planning provides direction Planning prov...
Principles of Planning Principle of contribution to objectives Principle of primacy of planning Principle of pervasiven...
•                           Limitations of Planning    The limitations of planning can be examined under the following hea...
The Essentials of Planning                    (cont’d)Types of PlanningStrategic planning: determining how to pursuelong-t...
Figure 5.2Types of Planning                    45
Other Forms of Planning1. Long-Range Planning - Short-Range  Planning2. Formal and Informal Planning3. Strategic, Tactic a...
The Planning Process                     GOAL SETTING           Identification and formulation of                       ob...
What Is an Objective?“objective are goals, aims or purposes  that organisation wish over varying  periods of time”
Management by Objectives (MBO)             — • Management by Objectives (MBO)   – A philosophy of management, a planning a...
Management by objectives as an integrated    planning and control framework.          Management 8/e - Chapter 8        50
Essential Steps for MBOqSet Goals                             qDevelop Action Plan  –The most difficult step.             ...
Essential Steps for MBOSet GoalsThe most difficult step.Develop Action PlanFor both workgroups and individuals.Review Prog...
Management By Exceptions• Administrative policy of focusing on those  events deviating from an established standard.• Mana...
Management by walking around• Management method emphasizing the  importance of interpersonal contact.• The objective of MB...
Decision Making• A decision is a choice made from available alternatives.• Decision-making is the process by which individ...
Characteristics of Decision Making   Goal-oriented   Alternatives   Analytical-intellectual   Dynamic process   Perva...
Steps involved in Decision Making1. Defining the Problem2. Analysis of Problem3. Alternative Course of Action4. Evaluation...
Module: 03ORGANIZATION
Module Coverage• Nature and purpose of organization,• Principles of organization• Types of organization – Formal and Infor...
Meaning of Organization A group of people united by a common purpose. An entity, an ongoing business unit engaged in uti...
Principles of Organization1. Principle of       8. Principle of  Objective             Continuity2. Principle of       9. ...
Formal Organizationrefers to the collection of work groups thathave been consciously designed by seniormanagement to maxim...
formal organization                                                               public relations                        ...
Informal organization• refers to the network of relationships thatspontaneously establish themselves betweenmembers of the...
informal organization                        Organizational Structure                 65 5/6/2003               Laura Hofm...
The formal and informal organization                                  Formal               Informal                       ...
Centralization/Decentralization• Centralization is that in which Authority and  responsibility are tightly held by upper l...
Centralization and           decentralization                   • Centralization and decentralization                     ...
Delegating Work Assignments• Centralization: retains decision-making  at the top of the management hierarchy• Decentraliza...
Centralization DecentralizationAdvantages                  Advantages:1. Tight control            1. Better motivate2. Sta...
Centralization DecentralizationDisadvantages                    Disadvantages:1. Less participation            1. Risk of ...
Span of Control- It means “The number of organizational   members who report to a manager”                     Types of Sp...
Factors influencing the Span of                Control1. The capacity and ability of the executive2. Competence and traini...
Module: 04Directing
Module Coverage•   Meaning and nature of directing•   Leadership styles•   Theory X and Y;•   Management of productivity-a...
Meaning of Directing• Directing is the interpersonal aspect of  managing in which subordinates are led to  understand and ...
Nature of Directing1. It is a dynamic function2. It initiates action3. It provides necessary link between various   manage...
Importance of Direction1. Initiates action2. Improves efficiency3. Ensures co-ordination4. Helpful in implementing changes...
Types of Leadership Style
Types of Leadership Style• Autocratic:   – Leader makes decisions without reference to anyone else   – High degree of depe...
Types of Leadership Style• Democratic:• Encourages decision making  from different perspectives – leadership may be  empha...
Types of Leadership Style• Democratic:  – May help motivation and involvement  – Workers feel ownership of the firm and it...
Types of Leadership Style• Laissez-Faire:   – ‘Let it be’ – the leadership responsibilities     are shared by all   – Can ...
Types of Leadership Style• Paternalistic:• Leader acts as a ‘father figure’• Paternalistic leader makes decision but may  ...
Theory X and Theory Y             Douglas McGregor  In 1957, Douglas McGregor (1906-1964), a famous American psychologist,...
Theory X and Theory YTheory X and Theory Y Theory X and Theory Y are two sets of assumptions about human nature and behavi...
Difference between Theory X and YTheory x                Theory Y- Dislikes work and     - Work can be as  attempts to avo...
Theory X and Theory Y          Theory X’s Principles1. Management is responsible for organizing the elements of enterprise...
Theory X and Theory Y  McGregor’s Remarks on Theory X  It is of "hard" management whose methods involve close supervision,...
Theory X and Theory Y            Theory Y’s Principles1. Employees are not by nature passive or resistant to organizationa...
Theory X and Theory YMcGregor’s Remarks on Theory Y  It is of "soft" management whose methods as tolerance and needsatisfa...
Theory X and Theory YMcGregor’s Suggestions to Perform            Theory Y1. Management should have employees’ higher leve...
Practice of Theory X and Theory Y        Effects on ManagementTheory X:1. Managers’ leadership styles are autocratic and t...
Practice of Theory X and Theory Y       Effects on ManagementTheory Y:1. It may lead to cooperative objectives designed wi...
Practice of Theory X and Theory Y             Criticism of Theory Y1. Rather than concern for employees, Theory Y style ma...
Practice of Theory X and Theory Y   Theory X and Theory Y in the 21st                       Century1. McGregor’s works on ...
Management of Productivity• Productivity is the output-input ratio within a  time period with due consideration for qualit...
Measuring Productivity•    Productivity is a measure of how efficiently inputs are converted to    outputs                ...
Multifactor Productivity Model
Productivity and the Service Sector• Measuring service sector productivity is a  unique challenge  – Traditional measures ...
Creativity Based Techniques1. Brain Storming2. Nominal group techniques
Learning Curve• A learning curve is a graphical representation  of the changing rate of learning (in the  average person) ...
Module: 06Total Quality Management
Module Coverage• Importance & relevance in the context of  globalization of Indian economy• Techniques used to inculcate t...
Why TQM?Ford Motor Company had operating losses of$3.3 billion between 1980 and 1982.Xerox market share dropped from 93% i...
TQM: A “Buzzword” Losing           Popularity• For many companies, the term TQM is associated  with corporate programs (mi...
TQM• Total - made up of the whole• Quality - degree of excellence a product or  service provides• Management - act, art or...
What does TQM mean?     Total Quality Management means that theorganizations culture is defined by and supportsthe constan...
What’s the goal of TQM?“Do the right things right the firsttime, every time.”            Total Quality Management
Another way to put it• At it’s simplest, TQM is all managers leading  and facilitating all contributors in everyone’s  two...
Productivity and TQM• Traditional view:  – Quality cannot be improved without significant    losses in productivity.• TQM ...
Basic Tenets of TQM1. The customer makes the ultimate determination of quality.2. Top management must provide leadership a...
The three aspects of TQM Counting      Tools, techniques, and training in their               use for analyzing, understan...
Total Quality Management     and Continuous Improvement• TQM is the management process used to make continuous  improvemen...
Continuous Improvement versus           Traditional Approach          Traditional Approach                      Continuous...
Quality Throughout• “A Customer’s impression of quality begins with  the initial contact with the company and continues  t...
Value-based Approach•    Manufacturing                             Service Dimensions    Dimensions                       ...
The TQM SystemObjective                            Continuous                                     ImprovementPrinciples   ...
MODUEL: 07ENTREPRENEURSHIP
Module Coverage• Introduction - the entrepreneur; Definitions• Emergence of entrepreneurial class;  Characteristics of ent...
Meaning of Entrepreneurship• An entrepreneur is a person who has possession of a new  enterprise, venture or idea and assu...
Who is an Intrapreneur?• A person within a large corporation who takes  direct responsibility for turning an idea into a  ...
Why do people take up       entrepreneurial challenge1. Opportunity2. Profit3. Independence4. challenge
Barriers to Entrepreneurship1. Lack of a viable2. lack of market knowledge3. Lack of technical skills4. Lack of capital5. ...
The Myths of Entrepreneurship• Myth 1: Entrepreneurs Are Doers, Not         Thinkers• Myth 2: Entrepreneurs Are Born, Not ...
The Myths of Entrepreneurship• Myth 7: All Entrepreneurs Need Is Luck• Myth 8: Ignorance Is Bliss For Entrepreneurs• Myth ...
Institutions in Aid of Entrepreneurship Development• Management Development Institute (MDI)• Entrepreneurship Development ...
• Academic Programs  – Post Graduate Programme in Management, PGPM  – National Management Programme, NMP  – Part-Time Post...
• Activities• Evolving effective training strategies and  methodology• Standardising model syllabi for training  various t...
• Assisting and Supporting EDPs• Evolving Model Syllabi for training various  target groups.  Formulation of standardised ...
Small Industries Development Organization (SIDO)                             New Delhi• ACTIVITIES• Advising the Govt. in ...
• Services    Marketing    Technology and Training    Exporting    International Trade Fair    NSIC Exhibition
• Academic Program  – Post Graduate Diploma in Personnel Management  – Post Graduate Diploma in Rural Development  – Post ...
• Services  – Assistance / Consultancy to Prospective Entrepreneurs.  – Assistance / Consultancy to existing Micro and Sma...
Small Industries Service Institutes               (SISIs)• Are set up to provide consultancy and training to small  entrep...
Functions of SISIsa. Interface between central & state Govt.b. Render technical support services.c. Conduct E.D.Ps.d. Init...
Assistance in following areas by                 SISI(a) Economic consultancy/information/ EDP    consultancy.(b)Trade and...
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  • These four major activities must occur for MBO to be successful. MBO seems to me like it would work well for a goal oriented organization.
  • Transcript of "Buisness management "

    1. 1. Business Management
    2. 2. Subject Coverage1. Management and Principles2. Planning3. Organizing4. Directing5. Controlling6. Total Quality Management7. Entrepreneurship
    3. 3. Module: 01Management and Principles
    4. 4. Module Coverage• Meaning, nature / characteristics• Scope and functional areas of management• Management as a science, art or profession• Management & Administration• Management Process• Management Principles• Evolution of-System Approach to management in detail (in domestic & international context) planning, organizing, staffing, Directing, coordination, controlling and innovation (creativity)
    5. 5. Definition Of Management• “Management is the art of getting things done through others” – Mary Parker Follett• “Management is the art of getting things done though and with people in formally organized groups” – Harold Koontz• “Management is the process of optimizing human, material and financial contributions for the achievement of organizational goals” - John A Pearce & R B Robinson
    6. 6. Objectives of Management1. Proper utilization of resources2. Improving performance3. Mobilizing best talent4. Planning for the future
    7. 7. Nature/Characteristics of Management- Multidisciplinary - Social Process- It is a group activity - System of authority- Goal oriented - Dynamic function- Management is a factor - Art as well as science of production - It is a profession- Universal in character
    8. 8. Scope of ManagementActivities Operations- Planning - Production/Operations Management- Staffing - Financial Management- Coordinating - Marketing Management- Organisation - Personnel Management- Directing - Office Management- controlling - Management of Information system
    9. 9. Functions of Management1. Planning2. Organizing3. Coordinating4. Staffing5. Directing6. Controlling
    10. 10. Functions of Management1. Planning 2. OrganizingWhat to do? - To identify, classify and assign activitiesWhen to do? - Delegate authority and fixHow to do? responsibilityWho is to do? - Coordinate relationship
    11. 11. Functions of Management3. Staffing 4. DirectingManpower planning Management in actionRecruitment It involves:Selection and training leadership, communication,Placement, development motivationPromotion SupervisionTransfer, appraisalEmployee remuneratio
    12. 12. Functions of Management5. Coordinating 6. Controlling- Orderly arrangement of goods, -Establishing standards- Effort to provide unity of action in -Measuring actual the pursuit of common objectives performance -Comparing actual with standard -Finding variances -Taking corrective action
    13. 13. Administration Vs Management
    14. 14. Difference Administration Management It is concerned about theNature of work determination of objectives and It puts into action the policies and plans laid down by the major policies of an administration. organization.Type of function It is a determinative function. It is an executive function.
    15. 15. Basis of Difference Administration Management It consists of owners who It is a group of managerialNature of status invest capital in and receive personnel who use their profits from an enterprise. specialized knowledge to fulfill the objectives of an enterprise. It is popular with government, It is used in businessNature of usage military, educational, and enterprises. religious organizations. Its decisions are influenced by Its decisions are influenced byDecision making public opinion, government the values, opinions, and policies, social, and religious beliefs of the managers. factors.
    16. 16. Principles of Management
    17. 17. 1. Division of workThere is an efficient result in the operational level whentasks are distributed to qualified and competentworkers or when people .
    18. 18. 2. Authority• With formal authority managers have the right to command and gives order to their subordinates
    19. 19. 3. Discipline• Members in any organization have to respect the rules and agreements governing it Respect and obedience to rules is embodied in the conduct of good life and discipline
    20. 20. 4. Unity of Command Employees must receive instruction onlyfrom one person. Reporting to more than one managerresults to conflicts in instruction and confusionof authority
    21. 21. 5. Unity of Direction• Operations within any organization having the same objective must be directed by only one manager using one plan in a department• For example there should not be two or more supervisors each having different policy to follow.
    22. 22. 6. Subordination of the Individual Interest to General interestIndividual interest must be subordinate togeneral interest when there is conflict betweenthe two The agreement between the employersand the employees should be fair and thereshould be constant vigilance and supervision
    23. 23. 7. Remuneration• Compensation for the work done should be fair to the employees and the employers
    24. 24. 8. Centralization• We have this approach by decreasing the role of subordinates in decision making Managers should retain their final responsibility, while at the same time give their subordinates enough authority to do their jobs properly
    25. 25. 9. Scalar Chain• The line of authority in any organization turns in the order of rank from top management to the lowest level of the enterprise
    26. 26. 10. Order• Either material or human resources should be in the right place at the right time.• People should be in the jobs or positions they are suited to.
    27. 27. 11. Equity• Equity is combination of justice and kindness.• Equity in treatment and behaviour is liked by everyone and it brings loyalty in the organisation• This brings cordial relation between the management and labour
    28. 28. 12. Stability of Staff• Employees work better if job security and career progress are assured to them• A high employee turnover rate will effect the organization
    29. 29. 13. Initiative• Managers should encourage their employees for taking initiative with in limits of authority and discipline Initiative increases the zeal and energy on the part of human beings• Fayols describes initiative as one of the keenest satisfactions for an intelligent man to experience
    30. 30. 14. Esprit de corps• Teamwork is fundamentally important to an organization Work teams and extensive face to face verbal communication encourages team work
    31. 31. Management Process
    32. 32. The Systems Approach• System Defined – A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.• Basic Types of Systems – Closed systems – Are not influenced by and do not interact with their environment (all system input and output is internal). – Open systems – Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments. 2–33
    33. 33. The Organization as an Open System 2–34
    34. 34. Implications of the Systems Approach• Coordination of the organization’s parts is essential for proper functioning of the entire organization.• Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.• Organizations are not self-contained and, therefore, must adapt to changes in their external environment. 2–35
    35. 35. Module: 02PLANNING
    36. 36. Module Coverage• Nature and Importance and purpose of Planning• Planning process• Objectives, Types of plans• Nature and Hierarchy of Objectives• Management by Objectives• Management by Exceptions• Management by Moving around• Decision making, importance and steps
    37. 37. Meaning of Planning• A plan is a forecast for accomplishment. It is a predetermined course of action.• It is todays projection for tomorrows activity. In other words, to plan is to produce a scheme for future action, to bring about specified results at a specified cost, in a specified period of time.
    38. 38. Features of Planning• Planning has a number of characteristics: Planning is goal-oriented Planning is a primary function Planning is all-pervasive Planning is a mental exercise Planning is a continuous process Planning involves choice Planning is forward looking Planning is flexible
    39. 39. Steps in Planning Process Establishing objectives Developing premises Evaluating alternatives and selection Formulating derivative plans Securing cooperation and participation Providing for follow-up
    40. 40. Importance of Planning• Planning helps an organisation in the following ways: Planning provides direction Planning provides a unifying framework Planning is economical Planning reduces the risks of uncertainty Planning facilitates decision making
    41. 41. Principles of Planning Principle of contribution to objectives Principle of primacy of planning Principle of pervasiveness of planning Principle of flexibility Principle of periodicity Principle of planning premises Principle of limiting factor
    42. 42. • Limitations of Planning The limitations of planning can be examined under the following headings: Rigidity Costly and time consuming Employee resistance False sense of security Managerial deficiencies Planning prevents innovation External Limitations  Difficult to predict  Projected too far into the future  Environmental turbulence  Emergency situations
    43. 43. The Essentials of Planning (cont’d)Types of PlanningStrategic planning: determining how to pursuelong-term goals with available resources.Intermediate planning: determining subunits’contribution with allocated resources.Operational planning: determining how toaccomplish specific tasks with availableresources. 44
    44. 44. Figure 5.2Types of Planning 45
    45. 45. Other Forms of Planning1. Long-Range Planning - Short-Range Planning2. Formal and Informal Planning3. Strategic, Tactic and Operational Planning4. Proactive and Reactive Planning5. Functional and Corporate Planning
    46. 46. The Planning Process GOAL SETTING Identification and formulation of objectivesReactive DEVELOPING PLANSPlanning Choices between alternative plansRevisionof goalsandplans IMPLEMENTATION Execution of the plan
    47. 47. What Is an Objective?“objective are goals, aims or purposes that organisation wish over varying periods of time”
    48. 48. Management by Objectives (MBO) — • Management by Objectives (MBO) – A philosophy of management, a planning and controlling technique, and an employee involvement program in which managers ask workers to join them in deciding what their goals should be. 10—49
    49. 49. Management by objectives as an integrated planning and control framework. Management 8/e - Chapter 8 50
    50. 50. Essential Steps for MBOqSet Goals qDevelop Action Plan –The most difficult step. –Course of action –Concrete –For both workgroups and individuals –Specific target and timeframe –Assign responsibility qReview Progress –Periodicity? –Course corrections qAppraise Overall Performance. –How are we doing? –Do we need to restate our goals?
    51. 51. Essential Steps for MBOSet GoalsThe most difficult step.Develop Action PlanFor both workgroups and individuals.Review Progress/ Take corrective actionPeriodic during the year.Appraise Overall Performance.Review Annual Goals.
    52. 52. Management By Exceptions• Administrative policy of focusing on those events deviating from an established standard.• Management by exception practices are established where it has been determined that only those events that deviate from a standard are significant.
    53. 53. Management by walking around• Management method emphasizing the importance of interpersonal contact.• The objective of MBWA is to achieve harmony in an organization between management and employees through face-to-face contact as well as to keep abreast of current operational developments.
    54. 54. Decision Making• A decision is a choice made from available alternatives.• Decision-making is the process by which individuals select a course of action among several alternatives, to produce a desired result.• Decision making is the selection based on some criteria from two or more possible alternatives – George Terrry
    55. 55. Characteristics of Decision Making Goal-oriented Alternatives Analytical-intellectual Dynamic process Pervasive function Continuous activity Commitment of time, effort and money Human and social process Integral part of planning
    56. 56. Steps involved in Decision Making1. Defining the Problem2. Analysis of Problem3. Alternative Course of Action4. Evaluation of Alternatives5. Experience6. Experimentation7. Taking Decision and Follow up
    57. 57. Module: 03ORGANIZATION
    58. 58. Module Coverage• Nature and purpose of organization,• Principles of organization• Types of organization – Formal and Informal-• Centralization Vs decentralization of authority and responsibility• Span of Control – Organizational Behaviour – nature and significance
    59. 59. Meaning of Organization A group of people united by a common purpose. An entity, an ongoing business unit engaged in utilizing resources to create a result. A process by which employees, facilities and tasks are related to each other, with a view to achieve specific goals.
    60. 60. Principles of Organization1. Principle of 8. Principle of Objective Continuity2. Principle of 9. Principle of Specialization Uniformity3. Principle of Co- 10. Principle of Unity ordination of Command4. Principle of 11. Principle of Authority and Exception Responsibility 12. Principle of
    61. 61. Formal Organizationrefers to the collection of work groups thathave been consciously designed by seniormanagement to maximize efficiency andachieve organizational goals
    62. 62. formal organization public relations job evaluation safety Organizational Structure 63 5/6/2003 Laura Hofman Miquel, Hanna Barst, Jörg
    63. 63. Informal organization• refers to the network of relationships thatspontaneously establish themselves betweenmembers of the organization on the basis of theircommon interests and friendships.
    64. 64. informal organization Organizational Structure 65 5/6/2003 Laura Hofman Miquel, Hanna Barst, Jörg
    65. 65. The formal and informal organization Formal Informal organization organizationA structure(a) origin planned spontaneous(b) rational rational emotional(c) characteristics stable dynamicB position terminology job roleC goals profitability or member satisfaction service to societyD charting organizational sociogram chart
    66. 66. Centralization/Decentralization• Centralization is that in which Authority and responsibility are tightly held by upper levels of the organization and are not delegated.• Decentralization actually refers to the degree to which authority is delegated to lower levels. In decentralization, a great deal of authority is delegated and more decisions are made at lower levels.
    67. 67. Centralization and decentralization • Centralization and decentralization refer to the degree to which Centralization authority is delegated in a business. • Complete centralization means that employees have no authority to make decisions. • Complete decentralization (delegation) means employees have all the authority to make decisions.Decentralization
    68. 68. Delegating Work Assignments• Centralization: retains decision-making at the top of the management hierarchy• Decentralization: locates decision- making at lower levels © PhotoDisc
    69. 69. Centralization DecentralizationAdvantages Advantages:1. Tight control 1. Better motivate2. Standardization of 2.Reducing senior Procedures and systems managers’ burden3. Strong leadership 3. Quick decisions4. Improved communication 4. Facilitates diversification5 Facilitates evaluation 5. Motivation of subordinates 6. Sense of competition 7. Division of risk 8. Effective control and supervision
    70. 70. Centralization DecentralizationDisadvantages Disadvantages:1. Less participation 1. Risk of losing control2. incomplete decisions 2. Hard to make decisions as a whole3. Destroys individual initiatives 3. Lack of coordination4. Overburden on few 4. Difficulty in control5. Slows down the operations 5. Costly6. Distance from customers 6. Lack of able managers7. No scope for specialization
    71. 71. Span of Control- It means “The number of organizational members who report to a manager” Types of Span of Control• Wide span of control means one manager supervises many members• Narrow span of control means one manager supervises a small number of members
    72. 72. Factors influencing the Span of Control1. The capacity and ability of the executive2. Competence and training of subordinates3. Nature of work4. Time available for supervision5. Degree of decentralization and extent of delegation6. Effectiveness of communication system
    73. 73. Module: 04Directing
    74. 74. Module Coverage• Meaning and nature of directing• Leadership styles• Theory X and Y;• Management of productivity-an overview-Concept & application in manufacturing & service industries application in different areas• Measurement of productivity, partial, multifactor & total factor models –• Creativity Based Techniques -– Brainstorming.• Whole brain thinking, Nominal Group techniques,• Use in creative problem solving with practical applications.• Learning Curves -– Concept of learning curve, its applicability, barriers to its application
    75. 75. Meaning of Directing• Directing is the interpersonal aspect of managing in which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise’s objectives
    76. 76. Nature of Directing1. It is a dynamic function2. It initiates action3. It provides necessary link between various managerial functions4. It is a universal function5. It is concerned with human relationships
    77. 77. Importance of Direction1. Initiates action2. Improves efficiency3. Ensures co-ordination4. Helpful in implementing changes5. Provides stability6. Motivation7. supervision
    78. 78. Types of Leadership Style
    79. 79. Types of Leadership Style• Autocratic: – Leader makes decisions without reference to anyone else – High degree of dependency on the leader – Can create de-motivation and alienation of staff – May be valuable in some types of business where decisions need to be made quickly and decisively
    80. 80. Types of Leadership Style• Democratic:• Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation – Consultative: process of consultation before decisions are taken – Persuasive: Leader takes decision and seeks to persuade others that the decision is correct
    81. 81. Types of Leadership Style• Democratic: – May help motivation and involvement – Workers feel ownership of the firm and its ideas – Improves the sharing of ideas and experiences within the business – Can delay decision making
    82. 82. Types of Leadership Style• Laissez-Faire: – ‘Let it be’ – the leadership responsibilities are shared by all – Can be very useful in businesses where creative ideas are important – Can be highly motivational, as people have control over their working life – Can make coordination and decision making time-consuming and lacking in overall direction – Relies on good team work
    83. 83. Types of Leadership Style• Paternalistic:• Leader acts as a ‘father figure’• Paternalistic leader makes decision but may consult• Believes in the need to support staff
    84. 84. Theory X and Theory Y Douglas McGregor In 1957, Douglas McGregor (1906-1964), a famous American psychologist,published his article "The Human Side of Enterprise" in which he introducedwhat came to be called the new humanism, Theory X and Theory Y.
    85. 85. Theory X and Theory YTheory X and Theory Y Theory X and Theory Y are two sets of assumptions about human nature and behavior that are related to the practice of management. Theory X: Representing a negative view of human nature that assumes people generally are naturally irresponsible for their work and require close supervision to do jobs. Theory Y: Indicating a positive view of human nature that assumes people are generally hard-working, creative and responsible for exercising self-control over their jobs.
    86. 86. Difference between Theory X and YTheory x Theory Y- Dislikes work and - Work can be as attempts to avoid natural as play and it. rest.- Has no ambition, - People will be self- wants no directed to meet responsibility, and their work objectives would rather follow if they are than lead. committed to them. - People will be
    87. 87. Theory X and Theory Y Theory X’s Principles1. Management is responsible for organizing the elements of enterprise including production, capital, materials, facilities and employees.2. In terms of employees, management is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization.3. Without effective management, employees would be passive – even resistant – to organizational needs. Hence, they must be advised, rewarded, punished, and controlled. Their activities must be directed.
    88. 88. Theory X and Theory Y McGregor’s Remarks on Theory X It is of "hard" management whose methods involve close supervision, rigidcontrol and compulsion. It would lead to restriction of output, mutual distrustand even sabotage.
    89. 89. Theory X and Theory Y Theory Y’s Principles1. Employees are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations.2. Employees, by nature, have the motivation, potential for development and capacity for assuming responsibility and readiness to direct behavior toward organizational goals. It is the responsibility of management to make it possible for employees to recognize and develop these human characteristics for themselves.3. The essential task of management is to arrange organizational conditions and methods of operation so that employees can achieve their own goals by directing their efforts toward organizational objectives.
    90. 90. Theory X and Theory YMcGregor’s Remarks on Theory Y It is of "soft" management whose methods as tolerance and needsatisfaction. It can lead to more effective management of employees in theorganization.
    91. 91. Theory X and Theory YMcGregor’s Suggestions to Perform Theory Y1. Management should have employees’ higher level needs met in the workplace.2. Close supervision and the threat of punishment are not the proper means for encouraging employees to exercise productive efforts.3. Some opportunities should be provided such as allowing employees to make decisions, redesigning jobs to make them more challenging or emphasizing on good working relations.
    92. 92. Practice of Theory X and Theory Y Effects on ManagementTheory X:1. Managers’ leadership styles are autocratic and the communication flow isdownward from managers to the employees. This may cause resistance fromemployees.2. The upper setting of objectives gets little or no participation fromemployees.3. It results in outside, control, with the manager acting as a performancejudge who focuses generally on the past.
    93. 93. Practice of Theory X and Theory Y Effects on ManagementTheory Y:1. It may lead to cooperative objectives designed with input from both employees and managers, resulting in a stronger responsibility by employees for accomplishing the shared objectives.3. It encourages leadership styles to be more participative and allows employees to seek responsibility for achievement of goals. Theory Y’s leadership is likely to improve communication flow, especially in the upward direction.4. It leads to control processes based on employees’ self-control. The manager is more likely to act as an instructor rather than a judge who focuses on how performance can be improved in the future rather than on who is responsible for past performance.
    94. 94. Practice of Theory X and Theory Y Criticism of Theory Y1. Rather than concern for employees, Theory Y style managers are simply engaged in an attractive form of management.2. Sometimes, managers better match work tasks to basic human motivation through participative management, job enlargement and other programs based on Theory Y.3. Actually, managers still focused on measures of productivity rather than employees’ interests.4. It is a patronizing plan for bringing increased productivity from employees. Unless employees shared in the economic benefits of their increased productivity, they are just fooled into working harder for the same pay.
    95. 95. Practice of Theory X and Theory Y Theory X and Theory Y in the 21st Century1. McGregor’s works on Theory X and Theory Y have had a great impact on management ideology and practice. They have been included in most basic management books. These books are still facing people of management today.2. As for the practice of management, the workplace of the 21st century, which emphasizes on self-managed work teams and other forms of worker involvement programs, generally goes with the principles of Theory Y.
    96. 96. Management of Productivity• Productivity is the output-input ratio within a time period with due consideration for quality Outputs• Productivity = ------------- (Within the time period, quality considered) Inputs
    97. 97. Measuring Productivity• Productivity is a measure of how efficiently inputs are converted to outputs Productivity = output/input• Total Productivity Measure Total Productivity = $sales/inputs $• Partial Productivity Measure Partial Productivity = cars/employee• Multifactor Productivity Wiley 2007 © Measure
    98. 98. Multifactor Productivity Model
    99. 99. Productivity and the Service Sector• Measuring service sector productivity is a unique challenge – Traditional measures focus on tangible outcomes – Service industries primarily produce intangible outcomes – Measuring intangibles is challenging
    100. 100. Creativity Based Techniques1. Brain Storming2. Nominal group techniques
    101. 101. Learning Curve• A learning curve is a graphical representation of the changing rate of learning (in the average person) for a given activity or tool.• Typically, the increase in retention of information is sharpest after the initial attempts, and then gradually evens out, meaning that less and less new information is retained after each repetition
    102. 102. Module: 06Total Quality Management
    103. 103. Module Coverage• Importance & relevance in the context of globalization of Indian economy• Techniques used to inculcate the quality approach in an organization• role of organizational behaviour-Quality Standards-ISO 9000/14000, SQC ERP MRP/MRP II (Brief introduction)
    104. 104. Why TQM?Ford Motor Company had operating losses of$3.3 billion between 1980 and 1982.Xerox market share dropped from 93% in 1971to 40% in 1981. Attention to quality was seen as a way tocombat the competition.
    105. 105. TQM: A “Buzzword” Losing Popularity• For many companies, the term TQM is associated with corporate programs (mid 1980s early 1990s) aimed at implementing employee teams and statistical process control.• Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work. Question: Why were they dissatisfied? Were they justified?
    106. 106. TQM• Total - made up of the whole• Quality - degree of excellence a product or service provides• Management - act, art or manner of planning, controlling, directing,….Therefore, TQM is the art of managing the whole to achieve excellence. Total Quality Management
    107. 107. What does TQM mean? Total Quality Management means that theorganizations culture is defined by and supportsthe constant attainment of customersatisfaction through an integrated system oftools, techniques, and training. This involves thecontinuous improvement of organizationalprocesses, resulting in high quality products andservices. Total Quality Management
    108. 108. What’s the goal of TQM?“Do the right things right the firsttime, every time.” Total Quality Management
    109. 109. Another way to put it• At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: (1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services. Total Quality Management
    110. 110. Productivity and TQM• Traditional view: – Quality cannot be improved without significant losses in productivity.• TQM view: – Improved quality leads to improved productivity. Total Quality Management
    111. 111. Basic Tenets of TQM1. The customer makes the ultimate determination of quality.2. Top management must provide leadership and support for allquality initiatives.3. Preventing variability is the key to producing high quality.4. Quality goals are a moving target, thereby requiring acommitment toward continuous improvement.5. Improving quality requires the establishment of effectivemetrics. We must speak with data and facts not just opinions. Total Quality Management
    112. 112. The three aspects of TQM Counting Tools, techniques, and training in their use for analyzing, understanding, and solving quality problemsCustomers Quality for the customer as a driving force and central concern. Culture Shared values and beliefs, expressed by leaders, that define and support quality. Total Quality Management
    113. 113. Total Quality Management and Continuous Improvement• TQM is the management process used to make continuous improvements to all functions.• TQM represents an ongoing, continuous commitment to improvement.• The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement. Total Quality Management
    114. 114. Continuous Improvement versus Traditional Approach Traditional Approach Continuous Improvement• Market-share focus Customer focus• Individuals Cross-functional teams• Focus on ‘who” and “why” Focus on “what” and “how”• Short-term focus Long-term focus• Status quo focus Continuous improvement• Product focus Process improvement focus• Innovation Incremental improvements• Fire fighting Problem solving Total Quality Management
    115. 115. Quality Throughout• “A Customer’s impression of quality begins with the initial contact with the company and continues through the life of the product.” – Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. – Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale.• “All departments of the company must strive to improve the quality of their operations.” Total Quality Management
    116. 116. Value-based Approach• Manufacturing Service Dimensions Dimensions Reliability – Performance Responsiveness – Features Assurance – Reliability Empathy – Conformance Tangibles – Durability – Serviceability Total Quality Management
    117. 117. The TQM SystemObjective Continuous ImprovementPrinciples Customer Process Total Focus Improvement Involvement LeadershipElements Education and Training Supportive structure Communications Reward and recognition Measurement Total Quality Management
    118. 118. MODUEL: 07ENTREPRENEURSHIP
    119. 119. Module Coverage• Introduction - the entrepreneur; Definitions• Emergence of entrepreneurial class; Characteristics of entrepreneur.• Leadership; Risk taking; Decision-making and business planning. Self-actualization• Management of conflicts, stress & time, Psychology of winning• Entrepreneurial Development Programmes
    120. 120. Meaning of Entrepreneurship• An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome.• The term is originally a loanword from French and was first defined by the Irish economist Richard Cantillon.• Risk taking and Innovation are keys word in entrepreneurship
    121. 121. Who is an Intrapreneur?• A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation• A Person who has all the abilities of an entrepreneur but works for an organization
    122. 122. Why do people take up entrepreneurial challenge1. Opportunity2. Profit3. Independence4. challenge
    123. 123. Barriers to Entrepreneurship1. Lack of a viable2. lack of market knowledge3. Lack of technical skills4. Lack of capital5. Lack of business know-how6. Complacency – lack of motivation7. Social stigma
    124. 124. The Myths of Entrepreneurship• Myth 1: Entrepreneurs Are Doers, Not Thinkers• Myth 2: Entrepreneurs Are Born, Not Made• Myth 3: Entrepreneurs Are Always Inventors• Myth 4: Entrepreneurs Are Academic and Social Misfits• Myth 5: Entrepreneurs Must Fit the “Profile”• Myth 6: All Entrepreneurs Need Is Money
    125. 125. The Myths of Entrepreneurship• Myth 7: All Entrepreneurs Need Is Luck• Myth 8: Ignorance Is Bliss For Entrepreneurs• Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates• Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)
    126. 126. Institutions in Aid of Entrepreneurship Development• Management Development Institute (MDI)• Entrepreneurship Development Institute of India (EDII)• The National Institute for Entrepreneurship and Small Business Development (NIESBUD)• Science and Technology Entrepreneurship Parks (STEPS)• Small Industrial Development Bank of India
    127. 127. • Academic Programs – Post Graduate Programme in Management, PGPM – National Management Programme, NMP – Part-Time Post Graduate Programme in Management – Fellow Programme in Management, FPM – Post Graduate Programme in Human Resource Management, PGP- HRM
    128. 128. • Activities• Evolving effective training strategies and methodology• Standardising model syllabi for training various target groups• Formulating scientific selection procedure• Developing training aids, manuals and
    129. 129. • Assisting and Supporting EDPs• Evolving Model Syllabi for training various target groups. Formulation of standardised procedures of identification and selection of potential entrepreneurs. Preparation of Training Aids Materials ú Manuals
    130. 130. Small Industries Development Organization (SIDO) New Delhi• ACTIVITIES• Advising the Govt. in policy matters concerning small scale sector.• Providing techno-economic and managerial consultancy, common facilities and extension services.• Providing facilities for technology up- gradation, modernization quality improvement & infrastructure.
    131. 131. • Services  Marketing  Technology and Training  Exporting  International Trade Fair  NSIC Exhibition
    132. 132. • Academic Program – Post Graduate Diploma in Personnel Management – Post Graduate Diploma in Rural Development – Post Graduate Diploma in Information Management – Post Graduate Diploma in Business Management
    133. 133. • Services – Assistance / Consultancy to Prospective Entrepreneurs. – Assistance / Consultancy to existing Micro and Small Enterprises . – Preparation / Upgradation of District Industrial Potential Surveys – Preparation of Project Reports / Project Profiles. – Entrepreneurship Development Programmes Motivation Campaigns.
    134. 134. Small Industries Service Institutes (SISIs)• Are set up to provide consultancy and training to small entrepreneurs – both existing and prospective• There are 28 SISIs and 30 branch SISIs set up in the state capital and other places all over the country
    135. 135. Functions of SISIsa. Interface between central & state Govt.b. Render technical support services.c. Conduct E.D.Ps.d. Initiate Promotional Programmes.
    136. 136. Assistance in following areas by SISI(a) Economic consultancy/information/ EDP consultancy.(b)Trade and market information.(c) Project profiles.(d) State industrial potential survey.(e)District industrial potential survey.(f) Modernization and implant studies.
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