Management and Entrepreneurship module one

Module one

1. Technical innovation Management and entrepreneurship

2. Technical Innovation Management and Entrepreneurship Sub Code: 21EC61 Credits : 3 Course Learning Objectives CO1 Understand basic skills of Management CO2 Understand the need for Entrepreneurs and their skills CO3 Identify the Management functions and Social responsibilities CO4 Understand the Ideation process, creation of Business model, Feasability study and sources of funding

3. Course Objectives Understand the fundamental concepts of Management and Entrepreneurship and opportunities in order to setup a business Describe the functions of Managers, Entrepreneurs and their social responsibilities Understand the components in developing a business plan Awareness about various sources of funding and institutions supporting entrepreneurs

4. Text Books Principles of Management – P.C Tripathi, P.N Reddy, McGraw Hill Education, 6th Edition, 2017. ISBN-13:978-93-5260-535-4. Entrepreneurship Development Small Business Enterprises- Poornima M Charantimath , Pearson Education 2008, ISBN 978-81-7758-260-4. Dynamics of Entrepreneurial Development and Management by Vasant Desai. HPH 2007, ISBN: 978-81-8488-801-2. Robert D. Hisrich , Mathew J. Manimala , Michael P Peters and Dean A. Shepherd, “ Entrepreneurship ”, 8 th Edition, Tata Mc Graw Hill Publishing Co. ltd – New Delhi, 2012

5. MODULE 1 Management and planning

6. Management Management is a critical element in the economic growth of a country Without management, a country’s resources of production remain resources and never become production Management is essential in all organised efforts, be it a business activity or any other activity. Management is the dynamic, life giving element in every organisation.

7. Definitions of Management This Photo by Unknown Author is licensed under CC BY

8. George R Terry Management as a process “consisting of planning, organising, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources ” Four Management Activities

9. Mary Parker Follett “art of getting things done through people” Two weaknesses of this definition are Art deals with the application of knowledge. Management also involves acquisition of knowledge i.e science. Management based on rules of thumb or intuition is not correct management This definition does not throw light on the various functions of a manager.

10. Management Activities

11. Management Functions Newman and Summer - organising, planning, leading and controlling. Henri Fayol- planning, organising, commanding, coordinating and controlling. Luther Gulick - “POSDCORB”, planning, organising, staffing, directing, coordinating, reporting and budgeting. Warren Hayens and Joseph Massie- decision making, organising, staffing, planning, controlling, communicating and directing. Koontz and O’ Donell - planning, organising, staffing, directing and controlling.

12. Management Functions Planning Organizing Staffing Directing(leading) Controlling Innovation Representation

13. Planning

14. Organizing

15. Staffing

16. Directing

17. Controlling Manager must ensure that Everything occurs in conformity to plans adopted. Whether instructions are used correctly Whether principles are established as planned. Controlling Functions Establishing the standards of performance Measuring current performance and comparing against the established standards. Taking action to correct any performance that does not meet the standards.

18. Innovation Creating new ideas which may either result in the development of new product or finding new uses of old ones. It is not for an organisation to grow bigger, but it is necessary that it constantly grows better.

19. Representation Manager has to represent his organisation to the stake holders, government officials, labour unions, financial institution, supplier, customer etc. Manager must win their support by effectively managing the social impact of his Organisation .

20. LEVELS OF MANAGEMENT Top management: consists of Board chairman, the company Presidents, and the Executive Vice- Presidents. Top Mangers require conceptual skills. Middle management: consists of vast and diversified group consisting plant managers, personnel managers and department heads. Middle managers need human relations skill. First-line (Lower) management: is made up of foreman and white collared supervisors. They require technical skills.

21. ROLES OF A MANAGER

22. Interpersonal Roles Figure head: performs duties of ceremonial nature such as greeting the touring dignitaries, attending the wedding of an employee, taking an important customer to lunch etc. Leader: every manager must motivate and encourage their employees, try to reconcile their individual needs with the goals of the organization. Liaison: in this role, every manager must develop contacts outside the vertical chain of command to collect information useful for the organization.

23. Informational Roles Monitor: must perpetually scan his environment for information, interrogates his liaison and subordinates to get any solicited information useful for the organization. Disseminator: manager passes the privileged information directly to the subordinates who otherwise would not have access to it. Spokesman: may require spending a part of the time in representing the organization before various outside groups having some stake in the organization such as government officials, labour unions, and financial institutions.

24. Decisional Roles Entrepreneur : in this role the manager proactively looks out for innovation to improve the organization by means of creating new ideas, development of new products or services or finding new uses for the old ones. Disturbance handler: assume responsibility for handling an unexpected event or crisis. Manager must act like a fire-fighter to seek solutions to various unanticipated problems. Resource allocator: must divide work and delegate authority among his subordinates. Assign resources between functions and divisions, set budgets of lower managers. Negotiator: must spend considerable time in negotiations. seeks to negotiate solutions between other managers, unions, customers, or shareholders.

25. MANAGERIAL SKILLS Conceptual Skills – deals with ideas Human Relation Skills – deals with people Technical Skills – deals with things

26. Management as a Science, Art or Profession Science Art Profession Methods of the enquiry are systematic and empirical If the information can be ordered and analyzed Results are cumulative and communicable Practical Knowledge Personal Skills Creativity Existence of organized and systematic knowledge. Formalized methods of acquiring training and experience. Existence of an association with the professionalization as a goal. Existence of an ethical code to regulate the behaviour of the members of the profession. Charging of fees based on service.

27. PLANNING – NATURE, IMPORTANCE and PURPOSE Planning involves selecting missions and objectives and deciding on the actions to achieve them, it requires decision making that is, choosing a course of action from among alternatives. A primary functional managerial activity that involves: Defining the organization’s goals Establishing an overall strategy for achieving those goals Developing a comprehensive set of plans to integrate and coordinate organizational work .

28. NATURE OF PLANNING

29. NATURE OF PLANNING Decision Making Planning

30. IMPORTANCE OF PLANNING Minimizes risk and uncertainty Leads to success. Focus attention on the organizations goals Facilitates control Trains executives

31. PURPOSE OF PLANNING To give direction and bring clarity To set up the goals of an enterprise in perspective, within the environment. To focus the vision on the objectives and goals. To direct all other functions of management and to reduces the impact of change To select from many available alternatives so as to achieve the objectives of the enterprise, economically, effectively and efficiently. Minimizes wastes and reduces uncertainty Enhances efficiency To form the basis for the budget and to set the standards To provide effective control. To minimize the cost of performance and eliminate unproductive efforts.

32. OBJECTIVES

33. STRATEGIES ENVIRONMENTAL APPRAISAL Political and legal factors Economic factors Competitive factors Social and cultural factors CORPORATE APPRAISAL outstanding leadership & excellent product design low-cost manufacturing skill efficient distribution & efficient customer service personal relationship with customers efficient transportation and logistics effective sales promotion high turnover of inventories, and/or capital ability to influence legislation, ownership of low- cost

34. Operational Plans Standing Plans Policies Procedures Methods Rules Single Use Plan Programmes Budgets

35. FORMS OF PLANS Strategic Planning Decides major goals and policies of allocation of resources Done at higher levels of management It is long term Based on long term forecasts about technology, political environment… Tactical Planning Decides the detailed use of resources Done at lower levels of management Short term Based on performance of the organization Based on day to day operations of the organization.

36. STEPS IN PLANNING

37. Establishing Planning Premises

38. Limitations of Planning Planning is costly Planning is time consuming Scope of planning is limited in the case of organisations for rapidly changing situations Formulating accurate premises is difficult Managers are often frustrated in instituting a new plan simply by unwillingness or inabilbity of people to accept it.

39. managers of any organization decide what to do, when to do, how to do and who has to do. integral part of planning. Decision making and choosing the best alternative is probably the most important activity of the planning process. In organizing, the managers decide on the choice of structure, type of organization, work allocation, delegation of authority and responsibility etc. In directing, managers decide the course of action, the instruction to be given, providing directions etc In controlling the managers decide on fixing the standards, how to control, what to control etc.

40. TYPES OF DECISIONS Programmed and non-programmed or Pragmatic & non Pragmatic decisions Individual & group (Collective) decisions Minor & Major decisions Strategic & Routine decisions Simple & Complex decisions Temporary & Permanent Decisions

41. STEPS IN DECISION MAKING