Principles of Management for BBA

Principles of Business Management

1. Module-I Introduction to Management

2. Man a geme n t is the ar t o f gettin g thin g s do n e thro u g h others’’. "To manage is to forecast and to plan, to organize, to command, to c o - or dinate an d to co n tro l .“ Man a geme n t Includes 1) . Pl a nni ng Organising Staffing Directing Controlling Co-ordination Management

3. Components of Management Management consists of following: Organizational Activity Goal formation Goal accomplishment and evolution Implementation

4. Characteristics or features of management 1. Management is goal oriented process: Management always aims at achieving the organisational objectives . The functions and activities of manager lead to the achievement of organisational objectives ; for example, if the objective of a company is to sell 1000 computers then manager will plan the course of action , motivate all the employees and organise all the resources keeping in mind the main target of selling 1000 computers.

5. Continued… 2. Management is Pervasive: Management is a universal phenomenon . The use of management is not restricted to business firms only rather it is applicable in profit-making , non profit-making , business or non-business organisations ; even a hospital, school, club and house has to be managed properly. Concept s of management are used across the globe .

6. 3. Management is Multidimensional: Management does not mean one single activity but it includes three main activities: Management of work Management of people Management of operations Continued…

7. (a) Management of work: All organisations are set up to perform some task or goal. Management activities aim at achieving goals or tasks to be accomplished . The task or work depends upon the nature of Business for example, work to be accomplished in a school is providing education, in hospital is to treat patient s , in industry to manufacture some product. Management makes sure that work is accomplished effectively and efficiently . Continued…

8. (b) Management of people: Here “Management of People " refer s to Management of Human resources . Human resources are the most important assets of an organisation. An organisation can win over its competitor s with efficient employees only because two organisations can have same physical, technological and financial resources but not human resources. Management has to get task accomplished through people only. Managing people has two dimensions: Taking care of employee’s individual needs Taking care of group of people Continued…

9. 4. Management is a continuous process: Management is a continuous or never ending function. All the functions of management are performed continuously . F or example ; planning, organising, staffing, directing and controlling are performed by all the managers all the time. Sometimes, they are doing planning, then staffing or organising etc. Managers continuously perform an ongoing series of functions in an organization. Continued…

10. 5. Management is a group activity: Management always refers to a group of people involved in managerial activities . The management functions cannot be performed in isolation. Each individual performs his/her role at his/her status and department . Even the result of management affects every individual and every department of the organization ; hence, it always refers to a group effort and not an individual effort . Continued…

11. 6. Management is a dynamic function: Management has to make changes in goal s , objectives and other activities according to the changes taking place in the environment. The external environment such as social, economical, technical and political environment has great influence over the management. As changes take place in these environments, same are implemented in organisation to survive in the competitive world. Continued…

12. 7. Intangible: Management function cannot be physically seen but its presence can be felt . The presence of management can be felt by seeing the order and coordination in the working environment. It is easier to feel the presence of mismanagement as it leads to chaos and confusion For example; if the inventory of finished products is increasing day by day it clearly indicates mismanagement of marketing and sales. Continued…

13. 8. Composite process: Management consists of series of functions which must be performed in a proper sequence. These functions are inter-dependent on each other. T he main functions of management are planning , organi z ing , staffing , directing and controlling . O rgani z ing cannot be done without doing planning, S imilarly , directing function cannot be executed without staffing and planning and it is difficult to control the activities of employees without knowing the plan. All the functions inter-dependent on each other that is why management is considered as a composite process of all these functions.

14. 9. Balancing effectiveness and efficiency: Effectiveness means achieving targets and objectives on time by ensuring the optimum utilization of resources. Managers always try to balance both and get the work done successfully.

15. Functions of Management Planning – Planning is first function performed by every Manager. Planning refers to “deciding in advance what to do, how to do, when to do, and who is going to do it. Planning bridges the gap between where we stand today and where we want to reach”. Every manager starts with deciding in advance the objectives of an enterprise and how to accomplish these objectives. Planning is the base of all other function of management.

16. Functions of Management - Planning Planning - “ Thinking before action ” In brief , Planning is mental exercise done by a manager, through which a line of thinking and a course of action is pointed out in Advance before using the existing resources of organisation.

17. Functions of Management O r g ani s i n g - After setting up of plans next function of every manager is to organise the activities and establishing an organisational structure to execute the plan. Setting up organisational structure means deciding the framework of working how many units and sub-units or department are needed, how many posts or designations are needed in each department, how to distribute the authority and responsibility among different people. Once these decisions are taken an organisational structure gets set up.

18. Functions of Management - Organising Organising- In organising function, “The management is concerned with the determination of the total work-load which is necessary for the attainment of objectives and a suitable division of such work among individuals”.

19. Functions of Management Staffing- Staffing is the third step or function of a manager. It Refers to recruiting, selecting, appointing the employees, assigning them duties, maintaining fair relations and taking care of grievances of employees. It also includes training and developing the employees, deciding their Remuneration, promotion, increment, etc., evaluating the performance, maintaining personal records of records of employees .

20. Functions of Management - Staffing Staffing- “Staffing implies the selection and placement Of most able and competent person on each position provided in the organisational Structure. Staffing means placement of the r ig h t m a n o n t h e r i g h t j o b a t t h e r ig h t ti m e . ” .

21. Functions of Management Directing - Once the employees are appointed there is need to instruct them and get the work done. Directing refers to giving instructions to employees by motivating them, supervising the activities of employees, communicating with them. Managers acts as leader and guide them to right direction, so directing function includes, supervising, motivating, communicating and leadership.

22. Functions of Management - Directing Directing- “It is the stage where the manager guides his subordinates towards best attainment of common objectives”.

23. Functions of Management - Directing There are four aspects of Directing Function. Leadership Motivation Comm u nication Supervision

24. Functions of Management Controlling – This the last function of managers. In this function managers try to match the actual performance with the planned performance and if there is no match between both then managers try to find out the reasons of deviation and suggest corrective measures to come on path of plan. Controlling functions refer to all the performance measurements and follow up actions that Keep the actual performance on the path of plan.

25. Functions of Management - Controlling Controlling – “It implies that the actions of people working throughout the enterprise are according to plan or not”.

26. Level of Management There are three Levels of Management Top level management Middle level management Supervisory level, operational level or Lower level management.

27. Level of Management Top Level Management Top level management consists of Chairman, Board of Directors, Managing Directors, General Manager, President, Vice President, Chief Executive Officer(C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer etc. It includes group of crucial persons essential for leading and directing the efforts of other people.

28. Level of Management - Top Level Management Main functions of top level management are : Determining the objectives of enterprise. Framing of plans and policies. Organising activities to be performed by persons working at middle level. Assembling all the resources such as finance, fixed assets. Responsible for welfare and survival of the organisation. Affair with outside world such as meeting government officials etc.

29. Level of Management Middle Level Management This level of management consists of department heads such as purchase department head, sales department head, finance manager, marketing manager, executive officer, plant superintendent, etc. People of this group are responsible for executing plans and policies made by top level. They act as a linking pin between top and lower level management.

30. Level of Management - Middle Level Management Main functions of middle level management are : Interpretation of policies made by top level management. Organising the activities of their department. Finding out or recruiting/selecting and appointing the required employees. Motivating the persons to perform their best ability. Controlling and instructing the employees. Cooperate with other departments for smooth functioning. Implementing the plans formed by top level.

31. Level of Management Lower Level Management This level of management consists of supervisors, superintendent, foreman, sub-department executives; Clerk, etc. managers of this group actually carry on the work or perform the activities according to the plans of top and middle level management. Their authority is limited. The quality and quantity of output depends upon the efficiency of this level of managers. They pass on the instruction to workers and report to the middle level management.

32. Level of Management - Lower Level Management Main functions of Lower level management are : Representing problems of workers. Maintaining good working condition and developing healthy relations between superior and subordinate. Looking for safety of workers. Helping the middle level management in recruiting, selecting and appointing the workers. Communicating with workers and welcoming their suggestion. They try to maintain precise standard of quality. They are responsible for boosting the morale of the workers

33. MANAGEMENT AND ADMINISTRATION It is said that there is no exact difference between management and administration. There is another school that asserts management is quite different from administration. The third school is of the opinion that management includes administration. According to Horence and Tead, Administration is the process of thinking , and Management is the process and agency of actual operation

34. Basis Management Administration Meaning Management is the art of getting things done through others by directing their efforts toward achieving pre-determined goals. It is concerned with formulation of broad objectives, plans & policies. Nature Management is an executing function. Administration is a decision making function. Process . Management decides who should do it & how should he do it. Administration decides what is to be done & when it is to be done Function Management is a doing function because managers get work done under their supervision. Administration is a thinking function because plans & policies are determined under it. Level Middle & lower level function. Top level function.

35. Management as a Profession “ Profession can be defined as an occupation backed by specialised knowledge and training, in which entry is restricted. "

36. Management as a Profession The main features of profession are: 1. Specialized Knowledge and Expertise: Just as professionals in fields like medicine or law acquire specialized knowledge and expertise through formal education and experience, managers also develop specific skills, techniques, and knowledge related to organizational dynamics, leadership, decision-making, and more. Example: A manager in a technology company possesses a deep knowledge of software development methodologies, project management techniques, and the latest programming languages. They use this expertise to guide their team in developing innovative software products.

37. Management as a Profession - Features 2- Continuous Learning and Development: Similar to professionals in other fields, managers need to engage in continuous learning to stay updated with the latest trends, best practices, and advancements in management theories and techniques. Examples: An HR manager attends workshops, and conferences to stay updated with evolving labor laws, employee engagement strategies, and diversity and inclusion practices, ensuring their organization maintains a progressive workplace environment.

38. Management as a Profession - Features 3. Accountability and Responsibility: Professionals are often held accountable for their actions and decisions. In management, accountability is essential as managers are responsible for achieving organizational goals, managing resources, and guiding teams to success. Example: An operations manager is accountable for ensuring the timely delivery of products to clients. When a supply chain disruption occurs, they take responsibility by collaborating with suppliers and their teams to find alternative solutions, minimizing the impact on clients.

39. 4. Autonomy and Decision-Making: Like professionals who are granted a certain level of autonomy in their decision-making, managers also have the authority to make decisions that affect their teams and organizations. Example: A marketing manager has the autonomy to decide which advertising channels to allocate the budget to for an upcoming product launch. They make data-driven decisions based on market research and target audience preferences.

40. Management as a Profession - Features 5. Critical Thinking and Problem-Solving: Both professionals and managers require strong critical thinking and problem-solving skills. Managers regularly face complex challenges and need to analyze situations, consider options, and make informed decisions. Example: An operations manager faces a production delay due to equipment malfunction. They quickly analyze the situation, allocate resources effectively, and collaborate with maintenance and production teams to resolve the issue and minimize production downtime.

41. 6 . Ethical Standards: Professionals are expected to adhere to a set of ethical standards and codes of conduct. Managers also face ethical dilemmas and are expected to make decisions that align with the best interests of their organizations and stakeholders. Example: A manager in a pharmaceutical company faces a decision about whether to prioritize the company's profit margins or the well-being of patients when launching a new drug. Adhering to ethical standards, they choose to delay the launch until additional safety testing is conducted.

42. 7. Certification and Education: While there isn't a universally recognized certification for managers, many organizations offer management-related certifications, and educational programs are available to help individuals develop the necessary skills and knowledge for effective management. Example: A project manager obtains a Project Management Professional (PMP) certification from the Project Management Institute. This certification validates their knowledge and expertise in project management, enhancing their credibility in the field.

43. Significance of Management 1. Accomplishment of goals: It is the management that determines the goals of the organization and of various departments and functional groups. The goals are communicated to the employees to seek their cooperation. All organizational activities are directed toward the organizational objectives. Clear-cut definition of goals is essential for the success of every organization.

44. 2. Effective Utilization of Resources: Management ensures optimum utilisation of resources. Through planning and organisation, management eliminates all types of wastages and achieves efficiency in all business operations. Management motivates workers to put in their best performance. This would lead to the effective working of the business.

45. 3. Order to Endeavour or Efforts: Management deals with integration of human and non- human resources in order to achieve organizational objectives. It directs and coordinates the activities of individuals and groups in the use of materials, methods and machines. It, thus, brings order to endeavors of different groups.

46. 4. Sound Organization: Management establishes sound organisation for the accomplishment of the desired objectives. It clarifies authority-responsibility relationships among various positions in the enterprise. It fills various positions with persons having the right qualification and training. Management also provides the workers with proper environment and encourages the spirit of cooperation.

47. 5. Provides Vision and Foresight: Management keeps itself in touch with the external environment and supplies vision and foresight to the enterprise. It helps in predicting what is going to happen in future which will influence the working of the enterprise. It also takes steps to ensure that the enterprise is able to meet the demands of changing environment.

48. 6. National Growth and Prosperity: Efficient management of resources is equally important at the national level. According to Peter Drueker , “ Management is the crucial factor in economic and social development .” The development of a country virtually depends on the quality of management of its resources. Efficient management of resources is a key to growth of the economy and prosperity and better standard of living of the general public.

49. Roles Performed by Managers Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision-making. ( Henry Mintzberg - The Nature of Managerial Work)

50. Mintzberg’s Set of Ten Roles Category Role Activity Interpersonal Figurehead  Leader  L iaison  Perform ceremonial & symbolic duties. Direct and motivate subordinates. Maintain information links. Informational Monitor  Disseminator  Spokesperson  Seek and receive information. Forward information to members. Transmit information to outsiders. Decisional Entrepreneur  Disturbance  handler Resource  Allocator Negotiator  Initiate improvement projects. Take corrective action during disputes or crises. Decide who gets resources; prepare budgets; determine priorities. Represent department during negotiations.

51. Skills Needed by Managers Managerial skills fall under the following three categories: Technical: Technical skills involve understanding and proficiency in a specific area of expertise. Interpersonal: Interpersonal skills, also known as soft skills, are essential for effective communication, collaboration, and building relationships within and outside the organization. Conceptual: Conceptual skills involve thinking abstractly, analyzing complex situations, and making informed decisions that align with the organization's goals.