Business management ppt

Principles of Management ppt

1. WELCOME TO THE BUSINESS MANAGEMENT AND PRACTICES CLASS

2. 19UCO102-BUSINESS MANAGEMENT AND PRACTICES COURSE OUTCOME K1 CO1 To understand the functions in management as applied in practice. K2 CO2 To evaluate organizational decision. K3 CO3 To get the idea about training and development. K4 CO4 To analyze the key issue related to administering.

3. SYLLABUS Unit-1 Introduction to Management: Management –Definition – Nature – Scope and Functions – Principles of Management -Evolution of Management – Thoughts – Contribution of F.W. Talyor – Henry Fayol – Elton Mayo – Hawthorne Experiment – Management by Objective(MBO) – Management by Exception (MBE) – Management by Participation (WPM) Unit-2 Functions of Management: Planning – Importance – Advantages – Steps in Planning – Types of Plans – Decision Making – Planning – Types of Decision – Process of Decision Making. Organizing: Nature and Purpose of Organizing – Principle of Sound Organization –Types of Organization – Factors Unit-3 Human Resource Management: Measures - Definition – Need – Evaluation – Importance- HR Planning – Factors Governing Planning.   Unit-4 Performance Appraisal and Sustaining Employee: Methods of Performance - Staffing – Sources of Recruitment - Selection Process – Training - Evaluation. Modern Methods of Control - The Control Process – Importance, Techniques – Methods – Requirement of Effective Control Systems Grievances – Causes – Implications – Redressed Methods – Collective    Unit-5 Motivation of Employee’s: Motivation – Types of Motivation – Theories of Motivation – Morale – Measures to Improve Morale – Job Satisfaction – Determinants of Job Satisfaction - Steps to Improve Job Satisfaction – Stress Management – Causes – Steps

4. UNIT-I- INTRODUCTION TO BUSINESS MANAGEMENT What is management? Management is the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way. - F . W . Taylor

5. Levels of management

6. Functions of various levels of management

7. Nature of Business Management Management is an activity It is an purposeful activity It is concerned with the effort of a group Management is getting things done through It applies economic principles Involves decision making Co-ordinates all activities and resources It is a universal activity It is intangible It is profession

8. Scope of Business Management Subject matter of management Functional areas of management Management is an interdisciplinary approach Principles of management Scientific management

9. Functions of management

10. Functions of management

11. H. Fayol 14 Principles of management

12. Frederick Winslow Taylor

13. MBO- Management By Objective Definition MBO is "a process whereby superior and subordinate managers of an Organization jointly define its common goals, define each individual's major areas of responsibility in terms Of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members." George Odiorne

14. MBO Strategy: Three Basic Parts All individuals within an organization are assigned a special set of objectives that they try to reach during a normal operating period. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives. Rewards are given to individuals on the basis of how close they come to reaching their goals .

15. Objectives or purposes T r anslat e main s t a t eme n t i n t o ope r a t i onal terms. T o g i ve di r ections a n d s e t s t a nda r d s f o r t h e measurement of performance. To measure and judge performance T o r e l a t e indivi d ua l per f ormanc e to organizational goal T o f o s t er inc r easi n g c ompe t en c e and g r ow t h of subordinates

16. T o enhance c ommuni c a tion b e t w e en superiors and subordinates To serve as a basis for judgments about salary and promotion To stimulate subordinates motivation To serve as a device for organizational control and integration To set long term and short term objectives

17. The MBO Process Define O r ganiz a tion al Goals Define Employee O bjecti v es Continuous Monitoring Of Employee Performance And Progress P er f o r mance Evaluation / R eviews Providing F eedba c k Performance Appraisals

18. Advantages Develops result-oriented philosophy Formulation of dearer goals Facilitates objective appraisal Raises employee morale Facilitates effective planning . Acts as motivational force . Facilitates effective control Facilitates personal leadership . Basis for organizational change

19. Limitations Time-consuming Failure to teach MBO philosophy Reward-punishment approach Increases paper-work Creates organizational problems Develops conflicting objectives Problem of co-ordination Lacks durability

20. MBE- Management By Exception Definition

21. MBP- Management By Participation Definition Type of management in which employees at all levels are encouraged to contribute ideas towards identifying and setting organizational-goals, problem solving, and other decisions that may directly affect them. Also called consultative management . Participatory management is the practice of empowering members of a group, such as employees of a company or citizens of a community, to participate in organizational decision making.

22. UNIT-II - PLANNING

23. What is planning? Meaning of planning The first and foremost function of management is planning. Simply, planning is deciding in advance what should be done. Definition Planning is deciding the best alternative among others to perform different managerial operations in order to achieve the predetermined goal. - Henry fayol

24. Importance of planning-Merits-Advantages It focuses on objective It helps to avoid “no work” or “work pressure” situation. It helps to avoid wastage of resources It ensures efficiency as well as effectiveness It reduces risk and uncertainty It provides for co-ordination It facilitates control Planning also provide scope for decentralization

25. Limitations-Demerits-Disadvantages Uncertain nature Expensive Rigidity Loss of initiative Ignorance of subordinates interest Complacent attitude

26. Process of planning Identifying business opportunities Establishment of objectives Determination of planning premises Identifying the alternative course of action Evaluation the alternative course of action

27. Types of plans Classification of plans according to time Long-term planning- Medium- term planning Short-term planning

28. Decision making Meaning Decision making is the process of selecting one alternative from among a number of alternatives available. Definition decision making is a process of selection from a set of alternative course of action which is thought to fulfill the objective of the decision problem more satisfactory than others. - Haynes and Massie

29. Process of decision making Identifying and understanding the problem Making an analysis of the problem Identifying alternative solution Evaluating the alternative solution Selecting the best solution Implementing the decision Review

30. Types of decision -making Organizational decisions Personal decisions Strategic or basic decision Routine or repetitive decisions Policy decisions Operating decisions Programmed or structured decisions Non-programmed or unstructured decisions Individual decisions Group decisions

31. organizing Definition Organizing is the structural framework of duties and responsibilities required of personnel in performing various functions within the company. - Wheeler

32. Principles of sound organizing 1. Objective 2. Division of work 3. Authority and responsibility 4. Delegation 5. Balance 6. Responsibility is absolute 7. Unity of command 8. Unity of direction 9. Simplicity 10. Flexibility

33. Types of organization Line organization Line and staff organization Functional organization Committee organization Project organization Matrix organization

34. Line Organization The line organization, also known as the military organization, is the oldest form of organization. In such an organization the superior at the top makes decision and communicates his decision and assign certain work to his subordinate. The subordinate in turn makes certain decisions within the scope of his authority and assign duty to his subordinate and so on.

35. Line Organization-chart

36. Advantages and Disadvantages of Line Organization Advantages of line organisation Disadvantages of line organisation 1. Simplicity 1. Lack of specification 2. Division of authority and responsibility 2. Over loading 3. Unity of control 3. Lack of initiative 4. Speedy action 4. Scope for favoritism 5. Discipline 5. Dictatorial 6. Economical 6. Limited communication 7. Co-ordination 7. United administration 8. Direct communication 8. Subjective approach 9. Flexibility 9. Instability 10. Lack of co-ordination

37. Functional Organization Meaning This type of organization is suitable for large scale establishment. There will be separate departments to look after different line of activities .

38. Functional Organization Board of directors Managing director Production manager marketing manager Foreman 1 Foreman 2 Sales off-1 sales off-2 Workers Workers

39. Advantages and Disadvantages of Functional Organization Advantages of functional organisation Disadvantages of functional organisation Benefit of specialization Application of expert knowledge Reducing the work load Efficiency Adequate supervision Relief to line executive Co-operation Economy Flexibility Mass production Complex relationship Discipline Over specialization Ineffective co-ordination Speed of action Centralization Lack of responsibility Increasing the overhead expenses Poor administration Suitability of functional organisation

40. line and staff o rganization The organization structure, in which specialist are added to the line managers to provide guidance and support, is called line and staff organization.

41. line and staff o rganization-chart

42. Advantages and disadvantages of line and staff o rganization Advantages of line and staff organisation Disadvantages of line and staff organisation Facilitates to work faster and better If powers are not defined then get confusion Specialization is attained Line officers may reject advice without any reason for their action Enables to utilize experience and advice Staff officers are not responsible if favorable results are not obtained. Officers can take sound advice Difference between line and staff officers will defeat the very purpose of specialization New technology or procedure can be introduced without any dislocation Line officers blame staff officers for unfavorable results and want to get rewards for favorable results Promotes efficient functioning of line officers Very good opportunity is made available to young person to get training

43. Committee organization A number of persons may come together to take a decision, decide a course of action, advise line officers on some matters, it is a committee form of organization. It is a method of collective thinking, corporate judgment and common decision. A committee may be assigned some managerial functions or some advisory or exploratory service may be expected from it.

44. Committee organization-chart Merits Demerits Pooling of opinions Time and cost Improved cooperation Compromise Motivation Strain on interpersonal relations Representation Lack of effectiveness Dispersion of power Personal prejudice

45. Project organization Definition A project organization is a preferred means whenever a well defined project must be dealt with or the task is bigger than anything, the organization is accustomed to. - George R. Terry

46. Project organization-chart

47. Merits and Demerits of project o rganization Merits Demerits Concentrated attention on project work Accentuated problems of co-ordination Advantages of team specialization Unclearly defined relationship Ability to cope with environmental influences Feeling of insecurity among personnel Timely completion of the project Duplication of efforts

48. Matrix organization Definition A matrix organization is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organization have more than one boss!

49. Matrix organization- chart

50. Merits and Demerits of Matrix o rganization Merits of Matrix organization Demerits of matrix organization Achievement of objectives Best utilization of resources Appropriate structure Flexibility Motivation Personal development Complex relationship Struggle for power Excessive, emphasis on group decision-making Arising conflict resolution Heterogeneous

51. UNIT-III-HRM

52. UNIT-I-Introduction to HRM

53. What is HRM? It describes the process of planning and directing the application, development and utilization of human resources in employment. - Dale Yoder

54. Evolution of HRM

55. Human Resource Planning What is human resource planning? Human resource planning is the process of determining the manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. - Coleman

56. Importance of human resource planning It helps the organisation to procure the required manpower. It further helps to replace employees It helps in expansion programmes It ensure optimum investment in human resource It is indispensable to give effect to reservation policy It is essential in view of the problem of labour turnover It helps to tackle the problem of surplus and shortage of manpower It becomes necessary to meet the needs of changing technology

57. Factors governing HRP Internal factor External factor Recruitment policy Reservation policy of Govt Availability of fund Availability of manpower job requirements Willingness of job seeker scale of operation Trend in the industry Trade union influence Level of technology

58. UNIT-IV-Performance appraisal

59. What is performance appraisal? Performance appraisal is the process of making an assessment of the performance and progress of the employees of an organization.

60. Methods of performance appraisal

61. Training and Development What is training? Training is the act of increasing the knowledge and skills of an employee for doing a particular job. - Edwin B. Flippo What is Executive development? It is a planned program for developing the conceptual, decision making and leadership abilities of managers .

62. Methods of training & development

63. Methods of training & development

64. Introduction to recruitment What is recruitment? Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. -Edwin B Flippo

65. INTERNAL SOURCES SOURCES OF RECRUITMENT Recommendation by existing employee Transfer Promotions

66. INTERNAL SOURCES ADVANTAGES DISADVANTAGES Time saving Reliable method Reduced training cost Better motivation Improved loyalty Reduces turnover Better relation High productivity Limited scope Partiality Hinder fresh thinking Less choice Talent ignored Lethargic attitude Conflict Might affect growth Difficult to turnaround

67. EXT E RNAL SOURCES

68. EXTERNAL SOURCES ADVANTAGES DISADVANTAGES Availability of suitable person Brings fresh thinking Economical Initiate turnaround Avoids politics Enables growth Improved diversity Higher turnover Lack of co-operation Lack of adjustment Affects initiative Affects motivation Clash of ideas Chance of failure

69. Selection What is Selection? Selection is the process in which candidate for employment are divided into two classes, those who are to be offered employment and those who are not to be. - Dale Yoder

70. Stages involved in selection

71. Stages involved in selection-cont.,

72. Control Control is the continuing process of measuring the actual results of the operations of an organization to the results which were planned. - Brech

73. Control process

74. Importance of Control It ensures attainment of enterprise objective It highlights the quality of plans It ensures successful implementation of plan It ensures that employees work with commitment It provides scope for delegation It facilitates co-ordination It promotes efficiency

75. Characteristics of Good control system

76. Important techniques Budgetary control Cost control Inventory control Break-even point Profit and loss control Statistical analysis External and internal audit Return on investment control Management information system

77. UNIT-V-Motivation

78. What is motivation? Motivation is the desire within an individual that stimulates him or her to action. - George R. terry

79. Types of Motivation

80. Theories of Motivation 1. Maslow’s need hierarchy theory

81. 2. McGregor’s X and Y theory

82. 3. Herzberg’s Two factor theory

83. 4. Vroom’s expectancy theory

84. Job satisfaction Any combination of psychological and physiological and environmental circumstances that cause a person to truthfully say I am satisfied with my job. - Hoppock

85. Factors influencing job satisfaction

86. Morale Morale is a mental condition of groups and individuals which determine their attitude. - Davis

87. Factors to improve morale

88. Steps to improve job satisfaction Firms should be guided by human values. They should treat their employees fairly and with respect. Employees should be provided for growth in their career. There should be opportunities for employees to exhibit their initiative. Job should be made interesting and challenging. Job should be matched with the interest , knowledge and potential of employees. Remuneration and incentives should be according to employee contribution.

89. Steps to improve job satisfaction Working condition should be good and the work environment should be convenient. There should be healthy relationship with superior, subordinates and peers Employee should be informed of the importance of their contribution. Opportunities to improve skills and knowledge through training and development. Building a strong company image so that employees feel proud to work in a firm. Job rotation, job enrichment and job enlargement to reduce monotonous and increase the interest.

90. Stress Meaning stress is an adaptive response to an external situation that results in physical, psychological and behavioral deviations for organizational participants. - Fred Luthans

91. Causes of stress Individual stressors Life and career change Personality type Role characteristics 2. Group stressors Group norms Group cohesiveness Group objectives Lack of social support Conflict

92. Causes of stress 3. Organizational stressors Goals Policies and procedures Rules and regulations Working conditions Compensation Job design Organizational structure Performance appraisal

93. Causes of stress 4. Extra organizational stressor Family obligations Economic conditions Financial conditions Cultural conditions Technological conditions

94. Strategies for stress management

95. Thank you