Chapter-02 on accounting fundamental course

accounting

1. Chapter-02 Fundamentals of Management

2. Meaning of Management Definition-1 : Management is the art of getting things done through and with people in formally organized groups. Definition-2:   Management is the process of planning, organizing, leading, and controlling people in the organization to effectively use resources to meet organizational goals. It includes the following essential elements: 1. Management is a distinct process. 2. This process consists of : planning, organizing, staffing, leading and controlling 3. It utilizes both the human and other resources. 4. It is followed in order to accomplish predetermined objectives. The people who manage others and oversee tasks and goals are called managers .

3. Principles of Management (page no 191) Division of Work – Specialization improves efficiency and quality. Authority and Responsibility – Clear authority enables responsibility and accountability. Discipline – Essential for coordination; requires proper supervision and fair rules. Unity of Command – One employee should receive orders from one superior only. Unity of Direction – One head and one plan for each group of activities. Subordination of Individual Interest – Organizational goals take priority over personal interests. Remuneration – Fair and fixed compensation for services.

4. Principles of Management (page no 190-191) 8. Centralization – Balance between centralized and decentralized authority. 9. Scalar Chain – Clear line of authority from top to bottom (chain of command). 10. Order – Right person in the right place; everything organized. 11.Equity – Fair and kind treatment for all employees. 12. Stability of Tenure – Job security for employees improves performance. 13. Initiative – Encourage employees to take initiative and contribute ideas. 14. Esprit de Corps – Promote team spirit and unity among employees.

5. Functions of Management (Page-191) Five Functions of Management are as follows: Planning 2. Organizing 3. Staffing 4. Directing and leading 5. Controlling 1. Planning 🔹 Setting goals and deciding the best course of action 🔹 Involves forecasting and strategy development 2. Organizing 🔹 Building the organizational structure 🔹 Defining roles, responsibilities, and authority 3. Staffing 🔹 Recruiting, selecting, and training employees 🔹 Placing the right people in the right roles

6. Functions of Management (Page-191) 4. Directing and Leading 🔹 Motivating and guiding team members 🔹 Encouraging performance and teamwork 5. Controlling 🔹 Monitoring progress and comparing with goals 🔹 Taking corrective actions as needed

7. Levels of Management

8. Levels of Management Top-Level Management 🔹 Includes: CEO, MD, Board of Directors 🔹 Responsible for:  – Setting organizational goals  – Making strategic decisions  – Representing the company externally Middle-Level Management 🔹 Includes: Department Heads, Division Managers 🔹 Responsible for:  – Implementing policies from top management  – Coordinating between top and lower levels  – Supervising departmental operations Lower-Level (Supervisory) Management 🔹 Includes: Supervisors, Team Leaders, Foremen 🔹 Responsible for:  – Overseeing day-to-day tasks  – Directing workers  – Ensuring quality and productivity

9. Roles of Management

10. Roles of Management Managerial roles are categorized into three major areas: Interpersonal (Leadership) Informational Decisional Interpersonal Roles (Leadership): Roles involving interaction with people inside and outside the organization. The purpose is to build relationships, influence others, and represent the organization. For example: Top Managers Act as figureheads , representing the organization in formal settings. 2. Informational Roles: Informational roles involve the receiving and sending of information—whether as a spokesperson, a mentor, a trainer, or an administrator.

11. Roles of Management 3. Decisional Roles: All managers are required to make decisions, but managers at different levels make different kinds of decisions. According to Mintzberg, there are four primary types of management decision roles. Types (Mintzberg): Entrepreneur Disturbance Handler Resource Allocator Negotiator