Buisness management

Subject Coverage

1. Management and Principles
2. Planning
3. Organizing
4. Directing
5. Controlling
6. Total Quality Management
7. Entrepreneurship

Module: 01

Management and
Principles

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)

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

Objectives of Management

1. Proper utilization of resources
2. Improving performance
3. Mobilizing best talent
4. Planning for the future

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

Scope of Management

Activities Operations
- Planning - Production/Operations
Management
- Staffing
- Financial Management
- Coordinating
- Marketing Management
- Organisation
- Personnel Management
- Directing
- Office Management
- controlling
- Management of Information
system

Functions of Management
1. Planning

2. Organizing

3. Coordinating

4. Staffing

5. Directing

6. Controlling


1. Planning 2. Organizing
What to do? - To identify, classify and
assign activities
When to do?
- Delegate authority and fix
How to do?
responsibility
Who is to do?
- Coordinate relationship


3. Staffing 4. Directing
Manpower planning Management in action
Recruitment It involves:
Selection and training leadership,
communication,
Placement, development
motivation
Promotion
Supervision
Transfer, appraisal
Employee remuneratio


5. 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

Difference Administration Management

It is concerned about the
Nature 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.

Basis of Difference Administration Management

It consists of owners who It is a group of managerial
Nature 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 business
Nature of usage military, educational, and enterprises.
religious organizations.

Its decisions are influenced by Its decisions are influenced by
Decision making public opinion, government the values, opinions, and
policies, social, and religious beliefs of the managers.
factors.

1. Division of work

There is an efficient result in the operational level when
tasks are distributed to qualified and competent
workers or when people .

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 to rules is embodied in the
conduct of good life and discipline

4. Unity of Command

Employees must receive instruction only
from one person.
Reporting to more than one manager
results to conflicts in instruction and confusion
of authority

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.

6. Subordination of the Individual
Interest to General interest

Individual interest must be subordinate to
general interest when there is conflict between
the two The agreement between the employers
and the employees should be fair and there
should be constant vigilance and supervision

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 retain their final responsibility, while at
the same time give their subordinates enough
authority to do their jobs properly

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

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.

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

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

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

14. Esprit de corps

• Teamwork is fundamentally important to an
organization Work teams and extensive face
to face verbal communication encourages
team work

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

The Organization as an Open System

2–34

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

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

Meaning of Planning

• A plan is a forecast for accomplishment. It is a
predetermined course of action.
• It is today's projection for tomorrow's 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.

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

Steps in Planning Process
 Establishing objectives

 Developing premises

 Evaluating alternatives and selection

 Formulating derivative plans

 Securing cooperation and participation

 Providing for follow-up

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

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

•
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

The Essentials of Planning
(cont’d)

Types of Planning
Strategic planning: determining how to pursue
long-term goals with available resources.
Intermediate planning: determining subunits’
contribution with allocated resources.
Operational planning: determining how to
accomplish specific tasks with available
resources.

44

Figure 5.2
Types of Planning

45

Other Forms of Planning

1. Long-Range Planning - Short-Range
Planning
2. Formal and Informal Planning
3. Strategic, Tactic and Operational Planning
4. Proactive and Reactive Planning
5. Functional and Corporate Planning

The Planning Process
GOAL SETTING
Identification and formulation of
objectives

Reactive DEVELOPING PLANS
Planning Choices between alternative plans
Revision
of goals
and
plans
IMPLEMENTATION
Execution of the plan

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 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

Management by objectives as an integrated
planning and control framework.

Management 8/e - Chapter 8 50

Essential Steps for MBO
qSet 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?

Essential Steps for MBO
Set Goals
The most difficult step.
Develop Action Plan
For both workgroups and individuals.
Review Progress/ Take corrective action
Periodic during the year.
Appraise Overall Performance.
Review Annual Goals.

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.

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.

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

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

Steps involved in Decision Making

1. Defining the Problem

2. Analysis of Problem

3. Alternative Course of Action

4. Evaluation of Alternatives

5. Experience

6. Experimentation

7. Taking Decision and Follow up

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

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.

Principles of Organization

1. Principle of 8. Principle of
Objective Continuity
Specialization Uniformity
3. Principle of Co- 10. Principle of Unity
ordination of Command
Authority and Exception
Responsibility 12. Principle of

Formal Organization

refers to the collection of work groups that
have been consciously designed by senior
management to maximize efficiency and
achieve organizational goals

formal organization

public relations

job evaluation

safety

Organizational Structure 63
5/6/2003 Laura Hofman Miquel, Hanna Barst, Jörg

Informal organization

• refers to the network of relationships that
spontaneously establish themselves between
members of the organization on the basis of their
common interests and friendships.

informal organization

Organizational Structure 65
5/6/2003 Laura Hofman Miquel, Hanna Barst, Jörg

The formal and informal organization

Formal Informal
organization organization
A structure

(a) origin planned spontaneous

(b) rational rational emotional

(c) characteristics stable dynamic

B position terminology job role

C goals profitability or member satisfaction
service to society
D charting organizational sociogram
chart

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.

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

Delegating Work Assignments

• Centralization: retains decision-making
at the top of the management hierarchy
• Decentralization: locates decision-
making at lower levels
© PhotoDisc

Centralization Decentralization
Advantages Advantages:
1. Tight control 1. Better motivate
2. Standardization of 2.Reducing senior
Procedures and systems managers’ burden
3. Strong leadership 3. Quick decisions
4. Improved communication 4. Facilitates diversification
5 Facilitates evaluation 5. Motivation of
subordinates
6. Sense of competition
7. Division of risk
8. Effective control and
supervision

Centralization Decentralization

Disadvantages Disadvantages:
1. Less participation 1. Risk of losing control
2. incomplete decisions 2. Hard to make decisions
as a whole
3. Destroys individual
initiatives 3. Lack of coordination
4. Overburden on few 4. Difficulty in control
5. Slows down the operations 5. Costly
6. Distance from customers 6. Lack of able managers
7. No scope for specialization

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

Factors influencing the Span of
Control
1. The capacity and ability of the executive
2. Competence and training of subordinates
3. Nature of work
4. Time available for supervision
5. Degree of decentralization and extent of
delegation
6. Effectiveness of communication system

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

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

Nature of Directing

1. It is a dynamic function
2. It initiates action
3. It provides necessary link between various
managerial functions
4. It is a universal function
5. It is concerned with human relationships

Importance of Direction

1. Initiates action
2. Improves efficiency
3. Ensures co-ordination
4. Helpful in implementing changes
5. Provides stability
6. Motivation
7. supervision

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

• 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


• 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


• 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


• Paternalistic:
• Leader acts as a ‘father figure’
• Paternalistic leader makes decision but may
consult
• Believes in the need to support staff

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 introduced
what came to be called the new humanism, Theory 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.

Difference between Theory X and Y

Theory 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

Theory X’s Principles
1. 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.

McGregor’s Remarks on Theory X

It is of "hard" management whose methods involve close supervision, rigid
control and compulsion. It would lead to restriction of output, mutual distrust
and even sabotage.

Theory Y’s Principles
1. 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.

McGregor’s Remarks on Theory Y

It is of "soft" management whose methods as tolerance and need
satisfaction. It can lead to more effective management of employees in the
organization.

McGregor’s Suggestions to Perform
Theory Y
1. 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.

Practice of Theory X and Theory Y

Effects on Management
Theory X:
1. Managers’ leadership styles are autocratic and the communication flow is
downward from managers to the employees. This may cause resistance from
employees.
2. The upper setting of objectives gets little or no participation from
employees.
3. It results in outside, control, with the manager acting as a performance
judge who focuses generally on the past.


Effects on Management
Theory 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.


Criticism of Theory Y
1. 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.


Theory X and Theory Y in the 21st
Century
1. 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.

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

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

Multifactor Productivity Model

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

Creativity Based Techniques

1. Brain Storming
2. Nominal group techniques

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

Module: 06

Total Quality Management

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)

Why TQM?

Ford Motor Company had operating losses of
$3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in 1971
to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.

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?

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.

What does TQM mean?

Total Quality Management means that the
organization's culture is defined by and supports
the constant attainment of customer
satisfaction through an integrated system of
tools, techniques, and training. This involves the
continuous improvement of organizational
processes, resulting in high quality products and
services.


What’s the goal of TQM?

“Do the right things right the first
time, every time.”


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.

Productivity and TQM

• Traditional view:
– Quality cannot be improved without significant
losses in productivity.

• TQM view:
– Improved quality leads to improved productivity.


Basic Tenets of TQM
1. The customer makes the ultimate determination of quality.
2. Top management must provide leadership and support for all
quality initiatives.
3. Preventing variability is the key to producing high quality.
4. Quality goals are a moving target, thereby requiring a
commitment toward continuous improvement.
5. Improving quality requires the establishment of effective
metrics. We must speak with data and facts not just opinions.


The three aspects of TQM

Counting Tools, techniques, and training in their
use for analyzing, understanding, and
solving quality problems

Customers Quality for the customer as a
driving force and central concern.

Culture Shared values and beliefs, expressed by
leaders, that define and support quality.


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.


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

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.”

Value-based Approach
•
Manufacturing Service Dimensions
Dimensions Reliability
–
Performance Responsiveness
–
Features Assurance
–
Reliability Empathy
–
Conformance Tangibles
–
Durability
–
Serviceability

The TQM System
Objective Continuous
Improvement

Principles Customer Process Total
Focus Improvement Involvement

Leadership
Elements Education and Training Supportive structure
Communications Reward and recognition
Measurement


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

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

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

Why do people take up
entrepreneurial challenge
1. Opportunity
2. Profit
3. Independence
4. challenge

Barriers to Entrepreneurship

1. Lack of a viable
2. lack of market knowledge
3. Lack of technical skills
4. Lack of capital
5. Lack of business know-how
6. Complacency – lack of motivation
7. Social stigma

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

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)

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

• 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

• Activities

• Evolving effective training strategies and
methodology
• Standardising model syllabi for training
various target groups
• Formulating scientific selection procedure
• Developing training aids, manuals and

• 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

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.

• 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 Graduate Diploma in Information
Management
– Post Graduate Diploma in Business Management

• 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.

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

Functions of SISIs

a. Interface between central & state Govt.
b. Render technical support services.
c. Conduct E.D.P's.
d. Initiate Promotional Programmes.

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.

Buisness management

More Related Content

What's hot

Viewers also liked

Similar to Buisness management

More from Cibin Mathew

Recently uploaded

Buisness management

Editor's Notes