Management
Management  Introduction Definition Nature Characteristics Management Art or Science Management as a profession Types and ...
Management  <ul><li>Introduction : </li></ul><ul><li>Management is as old as human civilization. </li></ul><ul><li>Univers...
Management  <ul><li>Nature of Management : </li></ul><ul><li>Concept is universal and dynamic </li></ul><ul><li>It has dev...
Management  <ul><li>Is a social process </li></ul><ul><li>Is a system of authority </li></ul><ul><li>Is a dynamic function...
Management  <ul><li>Functional Areas of Management : </li></ul><ul><ul><li>Production Management </li></ul></ul><ul><ul><l...
Management  <ul><li>Management as an Art: </li></ul><ul><ul><li>Systematic application of skill( or Knowledge in accomplis...
<ul><li>Management as a  Science : </li></ul><ul><ul><li>Systematic application of knowledge, uses scientific methods for ...
<ul><li>Levels of Management </li></ul>Top –Level Management Middle Level Management Lower Level Management
Administration Vs Management <ul><li>It is concerned with the determination of objectives and policies </li></ul><ul><li>I...
Managerial Skills <ul><li>Technical Skills: Knowledge of and proficiency in activities involving methods, processes & proc...
Managerial skills-Levels of management Conceptual and Decision-making skills Human Skills Technical Skills
Roles of Management:   Henry Mintsberg <ul><li>Interpersonal roles </li></ul><ul><ul><li>Figure Head role </li></ul></ul><...
<ul><li>Planning </li></ul><ul><li>Organizing  </li></ul><ul><li>Staffing </li></ul><ul><li>Leading &  </li></ul><ul><li>C...
Process / Functions of Management  Planning  : involves selecting missions and objectives as well as the actions to achiev...
Process / Functions of Management  contd……. Controling :  is measuring and correcting individual and organsiational perfor...
Evolution of Management Thought <ul><li>Even though it is said that Management is as old as civilization and management da...
Development of Management Thought Classical School Assumption: people are rational Behavioral School As: People are social...
Classical School of Management thought: emerged in the late 1800’s and early 1900’s) <ul><li>The Scientific Management Sch...
The Organisation School <ul><li>Henry Fayol- (1841-1925)-”Father of Administrative management) </li></ul><ul><li>According...
Fayols principles of Management <ul><li>Division of Work </li></ul><ul><li>Authority </li></ul><ul><li>Discipline </li></u...
Other contributors or followers of Henry Fayol: <ul><li>Max Weber(1864-1920): </li></ul><ul><ul><li>Bureaucratic model of ...
Behavioral Management School <ul><li>Elton Mayo(1880-1949): </li></ul><ul><ul><li>Hawthorne Studies” at Western Electric c...
1. Maslows Need –Hierarchy Theory Self Actualization needs Esteem/Status/Ego- Satisfction needs Belonging/Love/affection/s...
Maslows Need –Hierarchy Theory <ul><li>Physiological Needs : These needs are most basic physical needs of human beings suc...
MC Gregors Theory X and Theory Y <ul><li>Philosophy of Human nature </li></ul><ul><li>Emphasized the importance of underst...
MC Gregors Theory X & Theory Y <ul><li>Traditional view was names as: Theory X </li></ul><ul><li>“  The assumptions that p...
MC Gregors Theory X & Theory Y <ul><li>Theory X </li></ul><ul><li>The average person inherently dislikes work and will avo...
Quantitative Management School <ul><li>Management science approach- “is the science devoted for describing, understanding ...
3 Major Applications: <ul><li>Management science or Operations Research : Development of mathematical models for decision ...
Integration School of Mgmt Thought <ul><li>Attempts to integrate the 3 approaches to mgmt </li></ul><ul><li>It resulted in...
<ul><li>Contingency Approach :  View point that argues that appropriate managerial action depends on a particular set of p...
Mckinsey 7-S Model <ul><li>Strategy </li></ul><ul><li>Structure </li></ul><ul><li>Systems </li></ul><ul><li>Staff </li></u...
Continuing management themes <ul><li>Quality and performance excellence: </li></ul><ul><ul><li>ISO-series, TQM, Re-enginee...
Social responsibility of managers: <ul><li>Also known as  Corporate Social Responsibility: </li></ul><ul><li>“  It is the ...
Arguments for and Against CSR <ul><li>For: </li></ul><ul><li>Changed public expectation </li></ul><ul><li>Better environme...
Module 2 PLANNING  PLANNING “  bridges gap from  where we are  to  where we want to go ” “  Planning and controlling are i...
Planning – controlling relationship Planning Implementation  of Plans Controlling: comparing plans with results Corrective...
Planning <ul><li>Planning: defined: </li></ul><ul><li>Planning is the most basic function of managemnt is defined as: </li...
Planning <ul><li>Importance of Planning: </li></ul><ul><ul><ul><li>Minimizes risk & uncertainty </li></ul></ul></ul><ul><u...
Elements or Components of Planning( Forms of Plans) <ul><li>Purpose or mission </li></ul><ul><li>Objectives / goals </li><...
Elements or Components of Planning( Forms of Plans) contd.. Mission or purpose: Identifies the basic purpose or function o...
Elements or Components of Planning( Forms of Plans)  Strategies: The determination of the basic long term objectives of an...
Elements or Components of Planning( Forms of Plans)  <ul><li>Policies: contd.. </li></ul><ul><ul><ul><ul><li>Policies coul...
Elements or Components of Planning( Forms of Plans) Rules: Rules spell out specific required actions or nonactions, allowi...
STEPS IN PLANNING
 
 
 
 
Upcoming SlideShare
Loading in …5
×

Module 1

2,677 views

Published on

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,677
On SlideShare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
134
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Module 1

  1. 1. Management
  2. 2. Management Introduction Definition Nature Characteristics Management Art or Science Management as a profession Types and Levels of Management Administration Vs Management Skills of Managers Roles of Management In this chapter we will be studying:
  3. 3. Management <ul><li>Introduction : </li></ul><ul><li>Management is as old as human civilization. </li></ul><ul><li>Universal necessity in organisation. </li></ul><ul><li>Definitions: </li></ul><ul><li>“ Management is a multipurpose organ that manages a business, manages manager and manages worker and works.” Peter Drucker </li></ul><ul><li>“ Management is knowing exactly what you want men to do and then seeing that they do it in the best and cheap way”. F W.Taylor </li></ul><ul><li>“ Management is the process consisting of planning, organsing, activating and controlling performance to determine and accomplish the objectives by the use of human beings and other resources” George Terry. </li></ul>
  4. 4. Management <ul><li>Nature of Management : </li></ul><ul><li>Concept is universal and dynamic </li></ul><ul><li>It has developed in different dimensions and today it is regarded as a specialised discipline </li></ul><ul><li>The aim of all managers is the same: to create surplus. </li></ul><ul><li>Characteristics of Management : </li></ul><ul><li>Multidisciplinary </li></ul><ul><li>It is a group activity </li></ul><ul><li>It is a goal oriented </li></ul><ul><li>Is a factor of production </li></ul><ul><li>Is universal in nature </li></ul>
  5. 5. Management <ul><li>Is a social process </li></ul><ul><li>Is a system of authority </li></ul><ul><li>Is a dynamic function </li></ul><ul><li>Is an art and science </li></ul><ul><li>Is a profession </li></ul><ul><li>Is an intangible force </li></ul><ul><li>Is situational </li></ul><ul><li>Influences behaviour </li></ul><ul><li>Is an integrative force </li></ul><ul><li>Balances effectiveness and efficiency </li></ul>
  6. 6. Management <ul><li>Functional Areas of Management : </li></ul><ul><ul><li>Production Management </li></ul></ul><ul><ul><li>Marketing Management </li></ul></ul><ul><ul><li>Financial Management </li></ul></ul><ul><ul><li>Personnel/Human Resource Management </li></ul></ul><ul><ul><li>Materials Management </li></ul></ul><ul><ul><li>Office Management </li></ul></ul><ul><ul><li>Is Management ART or SCIENCE: </li></ul></ul><ul><ul><li>“ Management is the oldest of Art and youngest of science” </li></ul></ul>
  7. 7. Management <ul><li>Management as an Art: </li></ul><ul><ul><li>Systematic application of skill( or Knowledge in accomplishment of result) </li></ul></ul><ul><ul><li>Practical and is concerned with creation of something </li></ul></ul><ul><ul><li>Identifies ways of doing specific things and indicates how an objective is to be achieved. </li></ul></ul><ul><ul><li>Essential features of art: </li></ul></ul><ul><ul><ul><li>Personal skill </li></ul></ul></ul><ul><ul><ul><li>Practical knowledge </li></ul></ul></ul><ul><ul><ul><li>Result-oriented approach </li></ul></ul></ul><ul><ul><ul><li>Regular practice </li></ul></ul></ul><ul><ul><ul><li>creativity </li></ul></ul></ul>
  8. 8. <ul><li>Management as a Science : </li></ul><ul><ul><li>Systematic application of knowledge, uses scientific methods for establishing relationships between cause and effect. </li></ul></ul><ul><ul><li>Based on continued observation </li></ul></ul><ul><ul><li>Universal application. </li></ul></ul><ul><ul><li>Creates cause and effect relationship[ </li></ul></ul><ul><ul><li>Validity and predictability. </li></ul></ul><ul><ul><li>Management as a Profession: </li></ul></ul><ul><ul><li>Occupation backed up with specialized knowledge and training </li></ul></ul><ul><ul><li>Formal method of training </li></ul></ul><ul><ul><li>Establishment of representative organization. </li></ul></ul><ul><ul><li>Ethical code of conduct </li></ul></ul><ul><ul><li>Reasonable remuneration </li></ul></ul>
  9. 9. <ul><li>Levels of Management </li></ul>Top –Level Management Middle Level Management Lower Level Management
  10. 10. Administration Vs Management <ul><li>It is concerned with the determination of objectives and policies </li></ul><ul><li>It takes major decisions and is wider term than management </li></ul><ul><li>Function of top mgmt </li></ul><ul><li>Consists of owners of the enterprise </li></ul><ul><li>General term used in government, military educational and regional organisation. </li></ul><ul><li>Decisions are influences by external factor-political, legal and social etc. </li></ul><ul><li>Is concerned with implementation of plans and policies </li></ul><ul><li>Decisions are taken within the framework of administration </li></ul><ul><li>Lower level management function. </li></ul><ul><li>Consists of managerial personnel/specialists </li></ul><ul><li>Used in business firms which have economic motives </li></ul><ul><li>Decisions are influenced by internal factors like values, beliefs, opinions, culture etc. </li></ul>Administration Management
  11. 11. Managerial Skills <ul><li>Technical Skills: Knowledge of and proficiency in activities involving methods, processes & procedures. </li></ul><ul><li>Human Skills: Ability to deal with people </li></ul><ul><li>Conceptual skills: Ability to view situations and coordinate various factors. </li></ul><ul><li>Decision making skills: Ability to solve problems and examine the problems </li></ul>
  12. 12. Managerial skills-Levels of management Conceptual and Decision-making skills Human Skills Technical Skills
  13. 13. Roles of Management: Henry Mintsberg <ul><li>Interpersonal roles </li></ul><ul><ul><li>Figure Head role </li></ul></ul><ul><ul><li>Leadership role </li></ul></ul><ul><ul><li>Liaison role </li></ul></ul><ul><li>Informational roles </li></ul><ul><ul><li>Monitor </li></ul></ul><ul><ul><li>Disseminator </li></ul></ul><ul><ul><li>Spokesperson </li></ul></ul><ul><li>Decisional roles </li></ul><ul><ul><li>Entrepreneur </li></ul></ul><ul><ul><li>Resource allocator </li></ul></ul><ul><ul><li>Disturbance handler </li></ul></ul><ul><ul><li>Negotiator </li></ul></ul>
  14. 14. <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Staffing </li></ul><ul><li>Leading & </li></ul><ul><li>Controlling </li></ul>Process / Functions of Management
  15. 15. Process / Functions of Management Planning : involves selecting missions and objectives as well as the actions to achieve them, which requires decision making. Organising : Establishing an intentional structure of roles for people to fill in an organisation. it also prescribes Formal relationships among people and resources to accomplish the goals/objectives. Staffing : involves Filling, and keeping filled , the positions in the orgn structure. Activities aimed at attracting and selecting individuals for positions to facilitate the achievement of orgl goals. Leading : is influencing people so that they well contribute to the organisational and group goals. Factors influencing Leading are Motivation, Communication, Group dynamics, Synergism or synergy, Power, Politics and Corporate culture.
  16. 16. Process / Functions of Management contd……. Controling : is measuring and correcting individual and organsiational performanmce to ensure that events conform to plans. Ie comparing actual performance with standards and taking necessary corrective action if required. Coordination, the essence of Managership: for achieving harmony among individuals efforts towards the accomplishment of group goals. Each function contributes to coordination.
  17. 17. Evolution of Management Thought <ul><li>Even though it is said that Management is as old as civilization and management dated back to around 5000 BC (sumerian civilisation) and around 3000BC(Egyptian civilization), the real management thought evolved after the industrial revolution in Great Britain during the period 1750 t0 1850 . </li></ul><ul><ul><ul><li>The agricultural economy was changed to an industrial economy in Britain </li></ul></ul></ul><ul><ul><ul><li>Technology development and firms began to increase their output to cope up with the demands of consumer goods of a rapidly growing population. </li></ul></ul></ul><ul><ul><ul><li>Increased mechanization and increase in size of the manufacturing units( to facilitate mass production) led demand for hierarchical system of management </li></ul></ul></ul><ul><ul><ul><li>Mass production techniques evolved during 1900 to 1930’s. </li></ul></ul></ul><ul><ul><ul><li>In post industrial era (from mid 1950’s) –many advancements in technology such as computerization and automation, nuclear poser, growth of electronic industries etc.. </li></ul></ul></ul>
  18. 18. Development of Management Thought Classical School Assumption: people are rational Behavioral School As: People are social and self actualizing. Robert Owen, Elton Mayo, Maslow's, McGregor Quantitative School As: People can use applied maths Mgmt science, operations research, MIS Scientific Mgmt School Charles Babbage, Gilbreths, Gantt, Emerson Organisation School Henry Fayol, Weber, Mooney & Reily, Bernard Simon Integration School As: There is no one best way to manage contingency theory , systems theory Contemporary school As: People are complex Global Perspective, Theory Z, McKinsey 7’S,& Productivity .
  19. 19. Classical School of Management thought: emerged in the late 1800’s and early 1900’s) <ul><li>The Scientific Management School: </li></ul><ul><li>F.W.Taylor-Father of Scientific Mgmt(1792-1871) </li></ul><ul><li>Principles of F.W.Taylor: </li></ul><ul><li>Scientifically select each element of an individuals task and develop the best method for performing the task. This replaces the old rule-of-thumb method. </li></ul><ul><li>Carefully select workers and train them to perform the task by using the scientifically developed method. </li></ul><ul><li>Cooperate fully with the workers to ensure that they use the proper method. </li></ul><ul><li>Divide the work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly. </li></ul><ul><ul><ul><li>Followers of F.W.Taylor: </li></ul></ul></ul><ul><ul><ul><li>Charles Babbage- 1792 – 1871- specialization of labour and time study </li></ul></ul></ul><ul><ul><ul><li>Frank And Lilian Gilbreths(1868-1924)- Time and motion study.- “Therbligs” </li></ul></ul></ul><ul><ul><ul><li>Henry Gantt- (1861-1919)-Gant chart-modern project planning and control techniques </li></ul></ul></ul>
  20. 20. The Organisation School <ul><li>Henry Fayol- (1841-1925)-”Father of Administrative management) </li></ul><ul><li>According to Fayol , all Managerial tasks could be classified under Six headings: i)Technical, ii)Commercial,iii)Financial, iv)Security, v)Accounting and vi)Managerial. </li></ul><ul><li>He developed “ 14 Principles of Management” </li></ul>
  21. 21. Fayols principles of Management <ul><li>Division of Work </li></ul><ul><li>Authority </li></ul><ul><li>Discipline </li></ul><ul><li>Unity of command </li></ul><ul><li>Unity of Direction </li></ul><ul><li>Subordination of individual interest to general interest </li></ul><ul><li>Remuneration </li></ul><ul><li>Centralisation </li></ul><ul><li>Scalar chain </li></ul><ul><li>Order </li></ul><ul><li>Equity </li></ul><ul><li>Stability of tenure of personnel </li></ul><ul><li>Initiative </li></ul><ul><li>Espirit de corps. </li></ul>
  22. 22. Other contributors or followers of Henry Fayol: <ul><li>Max Weber(1864-1920): </li></ul><ul><ul><li>Bureaucratic model of organisation – called as “ Weber’s Ideal Bureaucracy”. </li></ul></ul><ul><ul><ul><li>Principles: </li></ul></ul></ul><ul><ul><ul><ul><li>Division of Labour </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Authority Hierarchy </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Formal Selection </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Career Orientation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Formal rules and controls </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Impersonality </li></ul></ul></ul></ul><ul><li>Chester Bernard: the functions of executives </li></ul><ul><li>Herbert simon: bounded rationality </li></ul><ul><li>Mooney & Reillly: coordination, Scalar chain, functional distinctions </li></ul>
  23. 23. Behavioral Management School <ul><li>Elton Mayo(1880-1949): </li></ul><ul><ul><li>Hawthorne Studies” at Western Electric company.- Experiment conducted by focusing on two groups of workers. </li></ul></ul><ul><ul><li>Hawthorne effect- The productivity increased by providing better working conditions, motivation, rest periods, due to improvement in the group morale. </li></ul></ul><ul><li>Robert Owen(1771-1858): </li></ul><ul><li>Hugo Muntsberg(1863-1916). </li></ul><ul><li>Mary Parker Follet(1868-19333): employee empowerment, cross functional work team, and participative management. </li></ul><ul><li>The Human Relations Movement: </li></ul><ul><li>Abraham Maslow(1908 -1970)- Hierarchy of needs theory. </li></ul><ul><li>Douglas Mc Groegor(1906-1964)- Theory X and Theory Y. </li></ul>
  24. 24. 1. Maslows Need –Hierarchy Theory Self Actualization needs Esteem/Status/Ego- Satisfction needs Belonging/Love/affection/social needs Safety and Security Needs Physiological needs/Basic needs
  25. 25. Maslows Need –Hierarchy Theory <ul><li>Physiological Needs : These needs are most basic physical needs of human beings such as food, water, clothing, shelter, sexual satisfaction and other physical requirements. </li></ul><ul><li>Safety and security needs : When physical needs are adequately met, the next higher level of needs assume importance. Safety and security needs include needs for security and proetection from Physical and emotional harm. Need for safe and secure environment in work place. </li></ul><ul><li>Social needs : These are also known as “ belongingness” needs they include need for love, affection. </li></ul><ul><li>Esteem needs : represent a persons needs for intrnal factors such as self respect, autonomy, and achivement. External factors like staus, power, recognition, and attention. </li></ul><ul><li>Self-actualisation : desire to bcome more and more what one is, to become everything one is capable of becoming. This means individual will realise fully the potentialities of his or her talents and capabilities. These needs include self fulfillment and competency. Personal growth, development and self-respect. </li></ul>
  26. 26. MC Gregors Theory X and Theory Y <ul><li>Philosophy of Human nature </li></ul><ul><li>Emphasized the importance of understanding the relationship between motivation and the managers philosophy of human nature. </li></ul><ul><li>Based on certain set of assumptions about employees </li></ul>
  27. 27. MC Gregors Theory X & Theory Y <ul><li>Traditional view was names as: Theory X </li></ul><ul><li>“ The assumptions that people dislike work and responsibility and creative ability and mainly want security and money”. </li></ul><ul><li>Alternate theory: Theory Y </li></ul><ul><li>“ the assumption that expending physical and mental effort is natural, that people can be self-directed if achievement brings rewards, and that most can exercise imagination, ingenuity and creativity and learn to seek responsibility”. </li></ul>
  28. 28. MC Gregors Theory X & Theory Y <ul><li>Theory X </li></ul><ul><li>The average person inherently dislikes work and will avoid it if possible. </li></ul><ul><li>Most employees must be coerced, directed, closely supervised and threatened with punishment to get them perform effectively. </li></ul><ul><li>The average person lacks ambition, avoids responsibility and seeks job security and economic rewards about everything else. </li></ul><ul><li>Most people lack creativity ability and are resistant to change </li></ul><ul><li>Since most people are self-centered, they are not concerned with the objective of th organisation. </li></ul><ul><li>Theory Y </li></ul><ul><li>The Expenditure of physical and mental effort in work is as natural as play or rest. </li></ul><ul><li>Most people prefer to exercise self-direction and self-control if they are committed to the achievement of objectives. </li></ul><ul><li>Commitment to objectives is a function of the rewards associated with achievement. </li></ul><ul><li>People learn, under proper conditions, not only to accept but also to seek responsibility. </li></ul><ul><li>People want job security but also have other needs such as esteem or ego-satisfaction and also the need for self-actualization. </li></ul><ul><li>People are interested in displaying imagination, ingenuity, and creativity to solve organisational problems. </li></ul>
  29. 29. Quantitative Management School <ul><li>Management science approach- “is the science devoted for describing, understanding & predicting the behavior of complicated system of men& machine operating in natural environment”. </li></ul><ul><li>Mainly provides managers with quantitative basis for decision making </li></ul><ul><li>Developed after world war II </li></ul>
  30. 30. 3 Major Applications: <ul><li>Management science or Operations Research : Development of mathematical models for decision making. </li></ul><ul><li>Operations Management : Application of quantitative methods to the organisation task of production & operations control. </li></ul><ul><li>MIS : is a set of integrated programs for collection, analysis & dissemination of information to support mgmt decision making. </li></ul>
  31. 31. Integration School of Mgmt Thought <ul><li>Attempts to integrate the 3 approaches to mgmt </li></ul><ul><li>It resulted in – 1.)System approach </li></ul><ul><li>2.)Contingency approach </li></ul><ul><li>System Approach to Mgmt : Organisation is viewed as a total system with each part. </li></ul><ul><li>Importance of System approach : </li></ul><ul><li>Ability of the manager to think taking into account vast amount of knowledge that is evolving </li></ul><ul><li>Development of a framework to relate one subsystem with another </li></ul><ul><li>Ability of the manager to focus beyond routine in-house operations & understand how the firm relates to its super-ordinate system. </li></ul>
  32. 32. <ul><li>Contingency Approach : View point that argues that appropriate managerial action depends on a particular set of parameters of the situation . </li></ul><ul><li>Contemporary School of Management : </li></ul><ul><ul><li>Global Perspective: </li></ul></ul><ul><ul><li>Theory Z: Combination of American and Japanese mgmt approaches – proposed by William Ouchi. </li></ul></ul><ul><ul><ul><li>Characteristics: </li></ul></ul></ul><ul><ul><ul><ul><li>Long-time employment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Consensual decision making </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Group responsibility </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Increasing quality </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Broader career path </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Holistic concern </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Establishing gradual advancement policies. </li></ul></ul></ul></ul>
  33. 33. Mckinsey 7-S Model <ul><li>Strategy </li></ul><ul><li>Structure </li></ul><ul><li>Systems </li></ul><ul><li>Staff </li></ul><ul><li>Style </li></ul><ul><li>Skills </li></ul><ul><li>Shared-values </li></ul>
  34. 34. Continuing management themes <ul><li>Quality and performance excellence: </li></ul><ul><ul><li>ISO-series, TQM, Re-engineering, Kaizen. </li></ul></ul><ul><li>Global awareness: </li></ul><ul><ul><li>Culture, managing work-force diversity </li></ul></ul><ul><li>Learning organization </li></ul><ul><li>Characteristics of 21st century Executives </li></ul>
  35. 35. Social responsibility of managers: <ul><li>Also known as Corporate Social Responsibility: </li></ul><ul><li>“ It is the obligation of managers to take actions that protect and improve the welfare of the society along with their own interest”. </li></ul><ul><li>Social Responsiveness : the ability of the corporation to relate its operation and policies to the social environment in ways that mutually beneficial to the company and to society. </li></ul>
  36. 36. Arguments for and Against CSR <ul><li>For: </li></ul><ul><li>Changed public expectation </li></ul><ul><li>Better environment for business </li></ul><ul><li>Balance power and responsibility. </li></ul><ul><li>Business has resources </li></ul><ul><li>Prevention is better </li></ul><ul><li>Moral responsibility </li></ul><ul><li>Against: </li></ul><ul><li>Profit maximization </li></ul><ul><li>Society has to pay the cost </li></ul><ul><li>Lack of social skills </li></ul><ul><li>Business has power </li></ul><ul><li>Social overhead cost </li></ul><ul><li>Lack of accountability </li></ul>
  37. 37. Module 2 PLANNING PLANNING “ bridges gap from where we are to where we want to go ” “ Planning and controlling are inseparable ” Fig:1.1 Close relationship of planning and controlling.
  38. 38. Planning – controlling relationship Planning Implementation of Plans Controlling: comparing plans with results Corrective action Undesirable deviation No undesirable deviations from plans New plans
  39. 39. Planning <ul><li>Planning: defined: </li></ul><ul><li>Planning is the most basic function of managemnt is defined as: </li></ul><ul><ul><ul><ul><ul><li>Intellectual process / continuous process </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Thinking in advance / looking ahead </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Deciding what is to be done , when, how and who to do it. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Involves decision making- choosing among alternative future courses of action. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Involves selecting missions and objectives and action to achive them </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Thinking before action </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Furnishes standard for control. </li></ul></ul></ul></ul></ul>
  40. 40. Planning <ul><li>Importance of Planning: </li></ul><ul><ul><ul><li>Minimizes risk & uncertainty </li></ul></ul></ul><ul><ul><ul><li>Provides rational, fact based procedure for Decision making </li></ul></ul></ul><ul><ul><ul><li>Leads to better chances of Success. </li></ul></ul></ul><ul><ul><ul><li>Focuses attention on orgn’s goals </li></ul></ul></ul><ul><ul><ul><li>Facilitates control </li></ul></ul></ul><ul><ul><ul><li>Helps to cope with changing environment </li></ul></ul></ul><ul><ul><ul><li>Deals with futurity of present decisions. </li></ul></ul></ul><ul><ul><ul><li>Goals and plans become standard against which Performance can be measured. </li></ul></ul></ul>
  41. 41. Elements or Components of Planning( Forms of Plans) <ul><li>Purpose or mission </li></ul><ul><li>Objectives / goals </li></ul><ul><li>Strategies / Tactics </li></ul><ul><li>Policies </li></ul><ul><li>Procedures </li></ul><ul><li>Rules </li></ul><ul><li>Programs </li></ul><ul><li>Budgets </li></ul>
  42. 42. Elements or Components of Planning( Forms of Plans) contd.. Mission or purpose: Identifies the basic purpose or function or tasks of an enterprise or agency or any part of it. Primary role of organisation defined by society- broad aim eg. Production, Service, Education, Health care. Special purpose, unique aim eg. Production of automobiles, providing education, treating heart patients etc. Objectives and Goals: Objectives are specific targets to be achived, in short term, end result of activities. Goals: General, descriptive statement of long term results to be achived.
  43. 43. Elements or Components of Planning( Forms of Plans) Strategies: The determination of the basic long term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals. - Grand designs that describe how a firm should operate to achive its objectives. - Tell managers what to do and how to react to competitors. - consists of programs of action and deployment of resources to achieve it. Tactics are more detailed operational plans for specific allocation. Policies: - are also plans - general statements or understandings that guide or channelise thinking in decision making.
  44. 44. Elements or Components of Planning( Forms of Plans) <ul><li>Policies: contd.. </li></ul><ul><ul><ul><ul><li>Policies could be verbal, written or implied </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Provide limits and direction for decisions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Help to decide issues before they become problems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Enables managers to delegate authority and still maintain control over subordinates. </li></ul></ul></ul></ul><ul><li>Procedures: </li></ul><ul><li>Are plans that establish a required method of handling future activites. </li></ul><ul><ul><ul><ul><li>Guidelines for action rather than thinking </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Detailed guidelines for carrying out the polices </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Details of activities to be accomplished </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Prescribed manner be which work has to be performed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Instructions for sequece of action. </li></ul></ul></ul></ul>
  45. 45. Elements or Components of Planning( Forms of Plans) Rules: Rules spell out specific required actions or nonactions, allowing no discretion. detailed, recorded instructiuons that specify Actions that must be or must not be performed in a given situation. Programs: Complex of goasl, policies, procedures, rules, task assignments, steps to be taken, resources to be employed etc to carry out a given course of action. Programs tell what is to be done and procedures tell how. Programs could be primary and supporting. Budgets : A statement of expected results expressed In numerical terms.
  46. 46. STEPS IN PLANNING

×