2. Management is the process of achieving goals and
objectives effectively and efficiently through and with the
people.
Management Defined
"Management is a process of designing and maintaining
an environment in which individuals work together in
groups to effectively and efficiently accomplish selected
aims".
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3. Management Defined Cont’d
Management is the process of achieving organizational goals and
objectives effectively and efficiently by using management functions
i.e. (Five Essential Functions)
– Planning
– Organizing
– Staffing
– Directing (Leading)
– Controlling (POSDC)
Management is a set of activities directed at an organization's
resources with the aim of achieving organizational goals in an efficient
and effective manner.
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7. Planning – Principles, process, MBO, Strategies, policies,
planning premises, strategic management and decision
making.
Organizing – Nature, entrepreneuring, reengineering,
organization structure, departmentation, line staff authority,
power, empowerment, decentralization, effective organization
culture.
Staffing and Leading – Human Resource Management,
process of recruitment, selection, performance appraisal,
career strategy, managing change and organization
development, leading, human factor and motivation,
leadership committees, teams, group decision making and
communication.
Controlling – System and process of controlling, controlled
techniques, productivity, operations management and Total
Quality Management.
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9. Functions of management
Planning
1
Planning is the process of setting goals, and charting the best way of action for achieving the
goals.
Organizing
2
Organizing is the process of allocating and arranging work, authority and resources, to the
members of the organization so that they can successfully execute the plans.
Staffing
3
Staffing is the process of recruiting /selecting the right person for the right job at the right time in
the right place.
Leading/
Directing
4 Leading involves directing, influencing and motivating employees to perform essential tasks.
Controlling
5
Controlling is the process of devising various checks to ensure that planned performance is
actually achieved. It involves ensuring that actual activities conform to the planned activities.
10. These definitions when expanded have these implications:
• Management is thus a continuous effort aimed at shaping an organization and
contributing to its overall growth.
• The functions of managers include planning, organizing, staffing, leading and
controlling.
• These functions are essential to any kind of organization.
• It applies to managers at all hierarchical levels.
• The aim of managers is to increase productivity, effectiveness and efficiency.
11. Elements of definition
• Process - represents ongoing functions or primary activities engaged in by managers.
• Efficiency - getting the most output from the least amount of inputs.
• “doing things right”.
• concerned with means.
• Achieving the objectives in time.
• Effectiveness - completing activities so that organizational goals are attained
• “doing the right things” .
• concerned with ends.
• Achieving the objectives on time.
15. Management: Science or Art?
study and experiments. It has
systematic knowledge, collection of truths and
fundamental
• Science is a collection of
inferences after continuous
principles discovered.
• Art uses the known rules and principles and uses the skill, expertise, wisdom,
experience to achieve the desired result.
Management is both Art and Science.
Management has got scientific principles which constitute the elements of Science.
Skills and talent which are attributes of Art.
17. Planning
Process of defining goals
Establishing strategies for achieving
those goals
Develop plans to coordinate activities
E.g.: Business plan
Marketing plan
18. Organizing
Prescribing formal relationship among
people and resources.
Process of grouping activities in
systematic manner.
19. Staffing
Ensure qualified employees available at
all levels
Finding the right people with right skill
for the right job
27. Forecasting
• An essential preliminary to effective planning is foreseeing, or
forecasting—what the future will be like.
• Planning provides the strategies, given certain forecasts, and
forecasting estimates the results, given the plan.
• Planning is what the organization ought to do, and forecasting relates
to what happens if the firm tries to implement given strategies in a
possible environment.
28. Qualitative Methods
• Jury of Executive Opinion
• Delphi Method
• Sales Force Composite
• Users’ Expectation
• Choice of Method
29. Jury of Executive Opinion
• The simplest method, executives of the organization (typically,
the vice presidents of the various divisions) provide an
estimate of future volume.
• The president provides a considered average of these
estimates.
• This method is inexpensive and quick and may be entirely
acceptable if the future conforms to the assumptions the
executives have used in estimating.
30. Delphi Method
• Begins with the present state of technology and extrapolates
into the future, assuming some expected rate of technical
progress.
• A common forecasting method is the use of a panel of
experts in the technical field involved.
• Each expert is asked independently when some future
technical breakthrough will occur, if ever.
• Averages of the estimates are then reported back to panel
members to modify their estimate or explain why they hold
their belief.
• A final value is adopted after several such iterations.
• One of the advantages of this technique is that it eliminates
31. Sales Force Composite
• The members of the sales force estimate sales in their own territory.
• Regional sales managers adjust these estimates for their opinion of the
optimism or pessimism of individual salespeople, and the general sales
manager massages the figures to account for new products or factors,
of which individual sales people are unaware.
• Since the field sales force is closest to the customer, this method has
much to recommend it.
• However, if there is any suggestion that the estimate a salesperson
provides will become a minimum goal they must achieve, the sales
force may find it in their own best interest to play games with the
32. Users’ Expectation
• When a company sells most of its product to a few customers, the
simplest method for forecasting budgets is to ask the customers to
project their needs for the future period.
• The customers depend for their own success on reliable sources of
supply, and so communication is in the best interest of both parties.
This might be done by market testing or market surveys.
• For consumer goods, though, not only is such information expensive
to obtain, but consumers often do not know what they will purchase in
the future.
33. Choice of Method
• Companies with effective planning will combine a variety of methods to
arrive at the best sales forecast.
• Qualitative estimates from the sales force and customer surveys may
be compared against quantitative estimates obtained from moving
average or regression models
• Finally, the chief executive, with the assistance of other top officers,
will establish a sales forecast to be used in future planning.
35. Simple Moving Average
Where the values of a parameter show no clear trend with time, a
forecast Fn+1 for the next period can be taken as the simple average of
some number n of the most recent actual values At:
36. Weighted Moving Average
Simple moving average method has the disadvantage that an earlier
value
(2008, for example) has no influence at all, but a value n years in the
past (2009) is weighted as heavily as the most recent value (2012).
We can improve on our model by assigning a set of weights wt that
total unity (1.0) to the previous n values:
38. Exponential Smoothing
• The weighted moving average techniques have the
disadvantage that you (or your computer) must record and
remember n previous values and n weights for each
parameter being forecast, which can be burdensome if n is
large.
• The simple exponential smoothing method continuously
reduces the weight of a value as it becomes older, yet
minimizes the data that must be retained in memory.
• Here forecast value for the next period Fn+1 is taken as the
sum of
the forecasted value Fn for the current period, plus
some fraction α of the difference between the actual An and
41. Regression Models
• Regression models are a major class of explanatory forecasting
models, which attempt to develop logical relationships that not only
provide useful forecasts, but also identify the causes and factors
leading to the forecast value.
• Regression models assume that a linear relationship exists between
a variable designated the dependent (unknown) variable and one or
more other independent (known) variables.
• The regression problem is to identify a line
46. Multiple Regression
• In multiple regression, the dependent variable D is assumed to be a
function of more than one independent variable Ij, such as
• The dependent variable can be assumed to be proportional directly or
inversely, proportional to a power or a root, or proportional in some other
way to the independent variables, as is suggested in the preceding
equation.
• Past values of dependent and independent variables are then used in
regression analysis to reduce the independent variables to the most
important ones and to find the values for the constants ci that give the
