3. Management is the process of giving direction
and controlling the various activities of the
people to achieve the objectives of an
organization.
1–3
3/7/2023
7. • Determining the goal of the organization
• Formulating policies, rules, procedures, etc for
the organization
• Forecasting the future based on past and present
activities.
• Developing the alternative courses of action.
• Select the best course of action
3/7/2023 1–7
8. Identification and analysis of activities required
for the attainment of organizational objectives.
Assignment of duties to the individuals
concerned
Follow up the activities
3/7/2023 1–8
9. The selection of candidates for positions,
fixing salary, training and developing them
for the effective organizational functions.
The manager performs the duties of job
analysis, job description etc. which comes
under the staffing function.
1–9
3/7/2023
10. Involves the activities such as guiding,
supervising, communicating and motivating the
subordinates in their job.
Motivation, leadership and communication are
the three important sub functions of directing.
3/7/2023 1–10
11. Establishing standards
Measuring the current performance
Comparing this performance to the established
standards.
Taking the corrective actions of deviations that
are detected.
3/7/2023 1–11
13. As An art As a inexact
Science
Based on principle
into Practice and
creativity.
Implies capacity to
apply accurately
the knowledge to
solve the problems,
to face the situation
and to realize the
objectives fully and
timely..
Every org. human
resources are
different attitudes.
So the standard
results may not be
obtained.
Readymade and
standard solutions
cannot be obtained.
decisions are
influenced by the
environment.
3/7/2023 1–13
15. Top level management
1. To formulate the goals and policies of the
company
2. To formulate the budgets
3. To appoint the top executives
4. To provide the overall direction and leadership
of the company
5. To decide the distribution of the profit
1–15
3/7/2023
16. Middle level managers
1. To train, motivate and develop the supervisory
level.
2. To implement the strategies generated by the
top managers
3. To monitor the performance and control the
operating performance of the individual
managers who report to them.
1–16
3/7/2023
17. Lower level or supervisory managers
1. To train and develop the efficiency of the
workers
2. To assign jobs to the workers
3. To give orders and instructions
4. To maintain discipline and good relations
among workers
5. To report feedback information about
workers.
1–17
3/7/2023
18. 1–18
ADMINISTRATION MANAGEMENT
Higher level function Lower level function
Refers the owner of the organization Refers the employees
Administration is concerned with the
decision making
Management is concerned with
the execution of decision
Administration lays down broad policies
and principles for guidance
Management executes these
policies into practices
Scope of function is broad and conceptual Scope of function is narrow and
operation.
3/7/2023
19. 1–19
ENTREPRENEUR MANAGER
Person who start the business Who run the business for a long
period of time
Refers the owner of the company Refers the person hired for the
company
Considers the various risks associated with
finance and materials.
Does not get all the risks.
Has the rights to implement the changes in
the process according to the changes
required in the product
Can only follow the rules and
procedures to achieve the goal
of the company
Can get all kinds of rewards from the public Can get only fixed rewards in
terms of salary
Full responsible for the accidents and
failures.
Avoids mistakes and failures.
3/7/2023
21. Roles that involve interacting with other people
inside and outside the organization
Interpersonal roles:
Figureheads: Greeting visitors, Represent the company
( signing legal documents).
Leader: who directs and motivates the subordinates,
counsels and communicates with subordinates and is
responsible for staffing and training
Liasion: maintains the information links both inside and
outside organization via mail, phone calls and meetings.
3/7/2023 1–21
22. Roles that involves receiving and collecting
the information.
Informational roles:
monitor: receives the information, scans
periodicals and reports and maintains the
personal contact with stakeholders.
spokesperson: transmit the information to
outsiders via reports, memos and speeches.
Disseminator :forward information to
organizational members via memos,reports,etc
3/7/2023 1–22
23. Decisional roles:
Entrepreneur: Initiates or starts the improvements
in projects, identifies new ideas and delegates
responsibility to others
Disturbance handler: Take corrective action during
disputes, resolves conflicts among subordinates
Resource allocator: How best to allocate resources
and determine priorities
Negotiator: Who represents the department during
negotiations of union contracts, sales, purchases,
budgets.
3/7/2023 1–23
24. Interpersonal roles deal with people
Informational roles deal with knowledge,
Decisional roles deal with action
1–24
3/7/2023
26. Conceptual skills:
Design and problem solving skills (ex: various
parts and functions mesh together)
Human skills:
Understanding of people/employee
Technical skills:
Proficiency in specialized fields such as
engineering, computers, accounting and
manufacturing.
1–26
3/7/2023
28. Pre scientific or pre classical management
period
Classical management period
Scientific management of TAYLOR
Administrative management of FAYOL
Neo classical or Behavioural theory
Modern theory
System approach
Contingency approach
3/7/2023 1–28
29. Robert owen(1771-1858) --- Believed that
workers performance in industry was
influenced by the working conditions and
treatment the workers.
shorter working hours
housing facilities
training of workers in hygiene
education of their children
provision of canteen
1–29
3/7/2023
30. Charles Babbage (1792-1871) – science and
maths could be applied to the solution of
pbm.The use of accurate observations,
measurements and precise knowledge for
taking decisions.
Henry Robinson (1844-1924) --- advised the
combination of engineers and economists as
industrial managers. This combination of
qualities together with at least some skill as an
accountant as an essential to the successful
management of industrial workers.
1–30
3/7/2023
32. Four basic principles are
Study each part of the task scientifically and
develop the best method to perform it
Carefully select the workers and train them to
perform task using the scientifically developed
method
Cooperate fully with workers to ensure they use
the proper method
Divide work and responsibility.
i.e., management responsible for planning
workers responsible for executing the work
1–32
3/7/2023
33. Planning the task
Work study
Scientific selection and training
Standardisation
Specialisation
Financial incentives
Economy
Mental revolution
1–33
3/7/2023
34. Planning the task
Suggest the separation of planning from actual
doing
Supervisor should do the planning
Workers only concentrate on doing the work
1–34
3/7/2023
35. Work study – determined by method, motion,
time and fatigue studies
Method study – ensures that the plant is laid
down in the best manner with best tools and
machinery. Check the possibility for eliminating
or combining certain operations.
Motion study – eliminating useless motion of the
operator or machine.
Time study – determines the proper time for
performing the operations. The movement which
takes minimum time is the best one.
Fatigue study – indicates the amount and
frequency of rest required in completing the job.
3/7/2023 1–35
36. Scientific selection and training
Workers should scientifically be selected by a
central personnel department
The procedure of selection will have to be
systematised
A worker should be physically and technically
most suitable for the selected post
After selection, the workers should be given
proper training which makes them more
efficient and effective.
3/7/2023 1–36
37. Standardisation
Standards must be maintained in the aspect of
equipment's and tools, period of work, amount of
work, working conditions, cost of production,
etc..
Normally, these standards will be fixed in
advance on the basis of various experiments.
3/7/2023 1–37
38. Specialisation – ”functional foremanship”
eight functional foreman were involved to
control and direct the activities of the workers
Route clerk – lay down the sequence of operation
Instruction card clerk – prepare the detailed instructions
regarding different aspects of work
Time and cost clerk – pay of workers and to secure proper
returns of work from them
Shop disciplinarian – teach about discipline and
absenteeism
Gang boss – to assemble and set up tools and machines at
the quickest and best way
Speed boss – to ensure that machines are run at their best
speeds and proper tools are used by the workers
Repair boss – to ensure the workers keeps his machine in a
good order and maintain cleanliness around him and his
machines
Inspector – to show to the worker how to do the work
3/7/2023 1–38
39. Financial incentives
Wages should be based on the individual
performance and not on the position which he
occupies
A worker who completes the normal work gets
wages at higher rate and who does not complete
gets at lower rate
3/7/2023 1–39
40. Economy
economy and profit can be achieved by
making the resources more productive as well as
eliminating the wastages
3/7/2023 1–40
41. Mental revolution
Scientific management is based on cooperation
between management and workers
Mutual conflict should be replaced by mutual
cooperation which is beneficial to both.
3/7/2023 1–41
42. Proper selection and training of workers
Incentive wages to the workers
Elimination of wastages and increase productivity
Standardization of tools, equipments, materials
and work methods.
Detailed instructions and guidance of the workers
3/7/2023 1–42
44. Fayol divided the total industrial activities
into six categories
1. Technical(production, manufacture)
2. Commercial(buying, selling, exchange)
3. Financial(search for optimum use of capital)
4. Security(protection of property and persons)
5. Accounting(balance sheets, cost statistics)
6. Management(planning, organising, coordinating,
directing ,controlling)
3/7/2023 1–44
45. DIVISION OF WORK OR SPECIALIZATION
AUTHORITY AND RESPONSIBILITY
DISCIPLINE
UNITY OF COMMAND
UNITY OF DIRECTION
SUBORDINATION OF INDIVIDUAL TO GENERAL
REMUNERATION OF PERSONNEL
CENTRALIZATION
LINE OF COMMAND/SCALAR CHAIN
ORDER
EQUITY
STABILITY OF TENURE OF PERSONNEL
INITIATIVE
ESPRIT DE CORPS
14 Principles of Henri Fayol
3/7/2023 1–45
46. Division of work makes a man specialist. The
reason is that division of work helps to specialize
in an activity which increases the output with
perfection. It also avoids wastage of time.
Division can be applied to both technical and
managerial kind of work.
3/7/2023 1–46
47. Managers must be able to give orders.
Authority gives them this right. Note that
responsibility arises wherever authority is
exercised.
3/7/2023 1–47
48. Employees must obey and respect the rules
that govern the organization.
3/7/2023 1–48
49. Every employee should receive orders from
only one superior
3/7/2023 1–49
50. Each group of organizational activities that have
the same objective should be directed by one
manager using one plan.
3/7/2023 1–50
51. The employees should give the importance first
to the general interest (development and the
progress of the org) than individual interest
(personal needs).
3/7/2023 1–51
52. Workers must be paid a fair wage for their
services.
Means the wages and salaries paid to employee. It
should be fair & must be paid on time.
It satisfy both employee & employer
It should be decided on-Work allotted.
3/7/2023 1–52
53. The organization is centralized when the power is
concentrated with one person.
If the power is fully distributed to subordinates,
the organization is fully decentralized.
For the effective management, decentralization is
necessary.
Decentralization helps to take a quick decision on
all important problems.
3/7/2023 1–53
54. The line of authority from top management to
the lowest ranks represents the scalar chain.
Communications (instructions and orders) should
follow this chain.
3/7/2023 1–54
55. Foreman and materials should be in the
right place at the right time
3/7/2023 1–55
56. Equity refers the treatment of employees equally
Managers should be kind and fair to their
subordinates.
3/7/2023 1–56
57. High employee turnover rate is not good for the
efficient functioning of any organization
Management should provide orderly personnel
planning and ensure that replacements are
available to fill vacancies.
3/7/2023 1–57
58. The power of thinking out, proposing and
executing of a plan.
Management should encourage employees to
originate and carry out plans.
3/7/2023 1–58
59. It means that create a team spirit or union is
strength.
Developed an atmosphere of mutual trust and
understanding.
3/7/2023 1–59
61. Human behavior in organizations is complex.
The field of organizational behavior draws from
a broad, interdisciplinary base of psychology,
sociology, anthropology, economics, and
medicine.
There are two theories on how employees
behave
2 - 61
3/7/2023
62. Theory X Assumptions:
Employees dislike work.
Employees are
irresponsible.
Employees lack
ambition.
Employees resist
change.
3/7/2023 16-62
63. Theory Y Assumptions:
Employees are willing to
work.
Employees are self
directed.
They accept
responsibility.
Employees are creative.
They are self-controlled.
3/7/2023 16-63
69. A business (also called a company, enterprise or
firm) is a legally recognized organization designed
to provide goods and/or services to consumers.
Two types of business organizations are:
1. Individualistic institutions
Sole trades
partnerships
Joint stack company
Co-operative
Multinational companies
2. Government institutions
Departmental undertakings
Public corporations
Government company
Board organization
3/7/2023
1–69
70. It is a type of business entity which is owned and
run by one individual
CHARACTERISTICS:
One man ownership and control
Enjoyment of entire profit
No separate legal entity
Self employment
secrecy
3/7/2023 1–70
71. • Easy to get established
• Full control over all business decisions
• Owners keep all profit
• Flexibility
• ADVANTAGES :
Easy to form and close
Easy for decision making
Full control of business activity
Easy to expand or reduce the size of the business
Easy to maintain healthy relations with employee.
• DISADVANTAGES:
limited resources
Lack of consultation
Risk of entire loss
3/7/2023 1–71
72. Association of two or more persons
to carry on business and to share
its profit and losses.
Features:
Agreement
Multiplicity of persons
Lawful business
Sharing of profits
Registration
Common management
3/7/2023 1–72
73. Active partner- authorized to manage
Sleeping partner-just investor
Normal partner-just lend his name
Partner in profit only-based on agreement
Sub partner-relation with one of the partner
Secret partner-name is not disclosed
Minor as a partner- guardian appointed by court
3/7/2023 1–73
74. Advantages:
Easy to form
Larger financial resources
Risk of business is shared by more persons
Close supervision is possible
Disadvantages:
Difficulties in expansion and modernization
Lack of public faith
Limitation on transfer of share
3/7/2023 1–74
75. Formation
Statutory company – SBI,RBI,LIC.
Registered company
Government company
Public interest
Private limited company
Public limited company
Control
Holding company
Subsidiary company
Nationality
Indian company
Foreign company
Area
National company
Multinational company
Companies:
3/7/2023 1–75
76. Minimum paid up capital Rs.100000
Minimum members 2
Limited up to 50 members
Not Including present and past employees
Restricts the right to transfer the shares
Prohibits any invitation to the public to
subscribe any share in
3/7/2023 1–76
77. Minimum paid up capital Rs.500000
Minimum members 7
No limitation on maximum members
Including present and past employees
No restriction on the transfer of shares
Must have 3 directors
Send the financial statement to all members
and registrar.
3/7/2023 1–77
78. Dominant role: government
Management: government / govt nominates person
Started with service motive
Complete government control
Departmental undertakings
Post, railway, etc…
Public corporation
Lic, rbi, etc…
Government companies
Coal mines, etc…
3/7/2023 1–78
80. Rituals
Annual award meeting, Rewards, etc
Stories
Stories of outstanding personalities
Languages
Unique term to describe equipment , office, etc
Material symbols
Provide car, bungalow, etc
Conveys to the employees the importance of people
3/7/2023 1–80
85. MANAGEMENT
Individual or group of persons who started the company
Right to change the company policy at any time
ORGANIZATIONAL STRUCTURE
Some time quick/delay
Depends on board of directors, etc
EMPLOYEES
Individual employee and labour union are important
Org must provide positive change to them
ORGANIZATIONAL CULTURAL CHANGE
Collective behaviour of members of org and the values,
habits that they attach to their actions
FINANCIAL CHANGES
Interest rate
3/7/2023 1–85
87. External environment refers to force and
institutions outside organization that potentially
affect an organizations performance
Harder to predict and control
Two types
Task/micro environment
General/macro environment
3/7/2023 1–87
88. Suppliers:
Any party that provides input for the business. E.g
financial institutions are provider of money, colleges
are suppliers of human resources
Managers need to have steady and reliable flow of
inputs to meet the goals
Customers:
customers who absorbs organizational outputs
They represent potential uncertainty to an
organization, Their taste can change, they can
become dissatisfied with organization’s product or
service
3/7/2023 1–88
89. Competitors:
Organizations cannot afford to ignore its
competitors.
Managers must be prepared to respond to
competitors policies regarding pricing new
products, services offered and other incentives it is
giving to customers
Pressure groups:
Managers must recognize the special interest groups
that attempt to influence organization
3/7/2023 1–89
90. Technological Conditions:
The whole area of technology is radically
changing the fundamental ways that
organizations are structured and the way that
managers manage
Economic conditions:
It includes the impact of economic factors like
Interest rates, changes in disposable income and
the stage of general business cycle
e.g : when consumer’s incomes fall their
confidence about job security declines, they will
postpone purchasing any thing that is not
necessary
3/7/2023 1–90
91. Political/legal conditions:
Federal, state and local government influence what
org can and cannot do
Managers must adapt their practices to the changing
expectations of the society and their life style
Demographic Conditions:
Trends in the physical characteristics of population
such as gender, age, level of education, income,
geographical location
Socio-cultural Conditions:
Managers must adapt their practices to the
changing expectations of the society in which they
operate.
3/7/2023 1–91
93. Workforce diversity
Changing employee expectation
International environment
Building organizational capabilities
Job design & organizational structure
Changing psycho-social system
Technological advance
Management of human relations
Changes in legal environment
Expanding globalisation
3/7/2023
1–93
94. 1.Workforce diversity
Changing the Way You Do Business
It refers to the way in which people in a
workplace are similar & different from
one another. in addition to the
characteristics protected by law, other
similarities & differences commonly
cited include background, education,
language skills, personality & work role.
94
3/7/2023
95. Advantages of Workforce
diversity
IMPROVE DECISION MAKING
IMPROVE TEAM PERFORMANCE
BETTER CONSUMER SERVICES
ENHANCE COMMUNICATION SKILLS
CREATIVITY & INNOVATION
95
3/7/2023
96. 2.Changing employee expectation
The managers has then to redraw new
methods of motivation such as job
design.
Ex: motivation of workers to deliver
their contribution towards the
accomplishment of organizational goals.
96
3/7/2023
97. 97
3.INTERNATIONAL ENVIRONMENT
The Environment which
includes all the factors
and forces which are
external to the Business
organization such as
economic, socio-cultural,
legal demographic etc.
are known as
International
environment.
3/7/2023
98. In simple word International
Environment means the growth and
expansion of business to a larger
extent.
i.e. global all over the world.
98
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