BBA- 1 year, Unit -1, POM

1. UNIT 1

2.  To Business And Industry:
- Protect interest of shareholders
- Use resources of the firm effectively
- Produce standard and quality products
- Charge customers reasonable prices
- Provide customer satisfaction
- Provide customer satisfaction
- Avoid dishonest trade practices

3.  To Society:
- Serve people who are affected by natural
and unnatural calamities
- Provide employment opportunities for
educated and needy job seekers
- Conserve natural resources by protecting
environment
- Hygienic disposal of waste to prevent
industrial pollution

4.  To Nation:
- Pay fines, duties, taxes to government on
time
- Carry on business as per government rules,
policies and practices
- Help government in economic planning and
administration

5.  To Consumer:
- Provide products of right quality at right
place, time and price
- Smooth after sales service
- Avoiding exploitation of customers
- Formation of associations of consumer
satisfaction and welfare

6.  To Consumer:
- Provide products of right quality at right
place, time and price
- Smooth after sales service
- Avoiding exploitation of customers
- Formation of associations of consumer
satisfaction and welfare

7.  Universally accepted principles
 Experimentation & Observation
 Cause and Effect relationship
 Test of validity and predictability

8. • Specialized body of knowledge and skills
A person who knows to apply his skills and
expertise in taking independent decisions can
run business effectively.
• Formal training
An untrained but qualified person needs on the job
training .
• Social responsibility
An efficient manager keeps social responsibility in
mind while carrying on his business.

9. • Code of conduct
Managers are supposed to run their business by
strictly maintaining the business secrets and
without misuse of any resources.

10. • Practical knowledge
Managers have to apply the knowledge about the
environment surrounding the business to it.
• Application is personalized
Every manager uses his skills in his own way while
running the business.
• Result oriented approach
Successful managers carry business by keeping the
business goals in mind.

11. • Employee motivation
Managers motivate employees to get the best
results.
• Perfection through practice
Every manager becomes perfect in dealing
with different situations through his day to
day experiences.

12. • Administration involves thinking .
Management involves doing
• Administration includes planning, making
policies, setting goals whereas management
includes carrying out the plans, policies to
achieve the set goals.
• Administration has the authority which it
hands over to the lower levels to get work
done whereas management uses the
authority and gets the work done.

13. • Administration is not involved in directing
people efforts to achieve goals which is done
by management.

14. • Top
Includes chairman, managing director, directors,
CEO’s , CFO’s etc.
They plan, set goals and policies, review and co-
ordinate activities.
• Upper middle
Includes departmental heads.
Co-ordinate and are responsible for activities and
results related to their departments.
Supervise middle and lower levels of their
department.

15. • Middle
Includes office, area managers etc of
departments
They handle daily operational activities of
their departments.
• Lower
Includes supervisors
They manage the workers and clerical level
employees and carry out routine operational
activities.

16. • Interpersonal roles
Manager interacts with different people within and
outside the organization.
He guides and motivates his employees as well.
Through his interactions he tries to take care of his
strengths, weaknesses, opportunities and
threats.
• Informational roles
Manager collects information from within and
outside his business and tries to analyze and
creates a link between the world within and
outside the business.

17. • Decisional roles
Manager takes important decisions which are
for the overall success and stability of the
business.
For this he takes decisions to handle conflicts,
to properly handle resources and to
successfully negotiate between the world
inside and the world outside the business.

18. • Conceptual skills
Managers should know the basic s of any skills that
they use to operate the business. If it is related
to leadership skill, managers should guide and
control.
• Diagnostic or analytical skills
Sunil B Mittal, Chairman of Bharti Enterprises has
many ‘firsts’ to his credit. He was the first to
import diesel generators to manufacture telecom
equipment in the private sector, to export basic
telecom services and to begin laying overseas
cable between Singapore and Chennai.

19. • Human skills
Managers should know to deal and interact
with the human resources effectively taking
the goals of the business into consideration.
• Technical skills
The manager should know to carry out the job
of all levels of the business. He should be
able to know the basic techniques and
operations as well which includes skilled and
unskilled jobs.

20.  Increasing production efficiency to lower
costs, raise profits but also to have increase
in pay for workers by increasing their
productive efficiency.

21. Taylor’s Four Principles:
• Have scientific study of tasks
• Select, train, teach and develop the
workman scientifically
• Provide detailed instruction and supervision
of each worker while reviewing his work.
• Divide work equally between managers and
workers for managers to perform and plan
work applying scientific management and to
ensure performance of tasks by workers.

22. Five Contributions by Taylor:
Time and Motion study – each motion of a job
is timed with the help of a stop watch and
shorter and fewer motions were to be
developed.
Differential Payment – a new payment plan
under which incentives are linked with
production. A worker received low piece rate
if he produced standard number of pieces
and high rate if he rose above the standard.

23. Drastic Reorganization of Supervision – separation
of planning and doing and functional
foremanship. Work should be planned by
foreman not worker. The number of foreman
should depend on the number of special
functions and the foremen should give orders to
the workers depending on their specialty
Scientific Recruitment and Training – this brings
out the best in the workers by enabling him to
do a higher, interesting and profitable class of
work than he has done in the past.

24. Intimate friendly cooperation between
management and workers – management and
labor have a common interest in increasing
productivity

25. He is the father of management
Developed general theory of management
Administrative Theory of Management:
Business activities have been classified into 6
categories;
Technical – relating to production or
manufacturing
Commerce – related to buying. Selling and
exchange

26. Financial – optimum utilization of resources
Security – related to protection of property
and assets
Accounting – related to maintenance of
accounts
Managerial – related to planning, organizing,
controlling, coordinating and commanding
Merely on the basis of the managerial activities
the other five activities can be analyzed.

27. 14 Principles of Management:
Division of work – different tasks should be
given to those who are experts in performing
them.
Authority and Responsibility – the former is the
process of getting work done through others
and the latter is obligation of person to
perform the tasks assigned to him.

28. Discipline – observance of rules of service
Unity of command – subordinates should
receive orders, instructions from superiors
only. One person accountable to one boss
otherwise there can be chaos.
Unity of direction – for every category of work
there should be one plan of action and
should be executed under the supervision of
one head only.

29. Subordination of individual interest to general
interest – individual interest should not be of
importance than common interest to fulfill
organizational goals.
Fair remuneration to workers – maximum
satisfaction to both employers and
employees through fair pay to workers.
Centralization – balance must be maintained
between centralization and decentralization
to ensure optimum use of all employees.

30. Scalar chain – when in an organization if F
wants to talk to Q normally the
communication will flow up the ladder from
F to A and then come down the ladder from A
to Q through M, N, O and P which is lengthy
and time consuming when there is a
requirement for swift action. In such case a
gang plank should be used where F and Q are
allowed to have direct contact to settle
matters. Scalar chain suggests that
communication should pass through proper
channels of authority along the scalar chain.

31. Order – material order (refers to right place for
every occasion)
social order (refers to a fixed place for every
worker and the worker will be available at
his workplace during working hours and also
right man for right job.
Equity – equal treatment to all employees in
the organization.
Stability to staff – employees should be assured
security of job by management.

32. Initiative – employees must be motivated to
make suggestions and take initiative.
Esprit-de-crops – management should create
team spirit among employees

33. Analysis of Hawthorne experiments which
Mayo made are;
• Workers are motivated by more self interest
• There is a psychological contract or
understanding between worker and employer
regarding what is expected of the
employees.
• Workers motivation can be increased by
showing interest in them
• Team work can increase workers motivation
• Workers socializing during and outside work
and subsequent increase in motivation.

34. • Workers are motivated by recognition,
security and a sense of belonging
• Communication between workers and
management affects the employees morale
and productivity.