Chapter-1
NATURE AND SIGNIFICANCE OF
MANAGEMENT
1- Management Helps In Achieving Group Goal
2- Management Increases Efficiency
3- Management Create a Dynamic Organisation
4- Management Helps In Achieving Personal Objective
5- Management Helps In the Development of Society
CHARACTERISTICS / FEATURES OF MANAGEMENT :
IMPORTANCE OF MANAGEMENT :
NATURE OF MANAGEMENT :
1- Management is Goal Oriented Process.
2- Management is All Pervasive
3- Management is Multidimensional
a) Management of Work.
b) Management of People.
c) Management of Operations.
4- Management is A Continuous Process
5- Management is A Group Activity.
6- Management is A Dynamic Function.
7- Management is A Intangible Force.
1- Management Is an Art :
2- Management As Science :
3- Management As a Profession :
i) Existence of the Theoretical Knowledge
ii) Personalised Application
iii) Based on Practice and Creativity
i) Systematic Body of Knowledge
ii) Principles are Based of Repeated Experiments.
iii) Universal Validity
i) Well Defined Body of Knowledge
ii) Restricted Entry
iii) Professional Association
iv) Ethical Code of Conduct
v) Service Motive
OBTECTIVES OF MANAGEMENT :
1- Organisational Objetive
Survival Profit Growth
2- Social Objective
a) Lawful Business
b) Environmental Friendly
c) Fair Trade Practices
3- Personal Objective
a) Financial Needs of Personnel
b) Recognition and Appericiation
c) Healthy Working Environment
FUNCTION OF MANAGEMENT :
1- Planning 2- Organising 3- Staffing 4- Directing
5- Controlling
LEVELS OF MANAGEMENT
TOP LEVEL MANAGEMENT
MIDDLE LEVEL MANAGEMENT
LOWER LEVEL MANAGEMENT
1- Determine the Obtectives for the Organisation
2- Framing of Plan and Policies
3- Co-Ordinate and Control the Performance
4- Analyse the Business Environment
5- Setting up an Organisational Framework
6- Assemble the Resources
1- Interpret the Policies Framed by Top Management
2- Selecting Suitable Operative and Supervisory Personnel
3- Assign Duties and Responsibilities to Lower Level
Management
4- Motivate Personnel to Achieve Desired Objectives
5- Co-Operate with Entire Organisation.
1- Issue Orders and Instruction
2- Prepare Plan for Activities
3- Assign and Assist In Work
4- Represent Worker's Grievances
5- Safe and Proper Working Environment
6- Encourage Initiative of Employees.
1- Co-Ordination Integrates Group Efforts
2- Co-Ordination Ensures Unity of Action
3- Co-Ordination is a Continuous Process
4- Co-Ordination is all Pervasive Function
5- Co-Ordination is the Responsibility of all Managers
6- Co-Ordination is a Deliberate Function.
NATURE / FEATURES OF CO-ORDINATION :
1- Growth in Size
2- Functional Differentiation
3- Specialisation
IMPORTANCE OF CO-ORDINAITON:
PRINCIPLES OF MANAGEMENT
Chapter-2
CHARACTERISTICS / FEATURES OF
MANAGEMENT OF PRINCIPLE :
1- Universal Application
2- General Guidelines
3-Formed by Practice and Experiments
4- Flexible
5- Mainly Behavioural
6- Cause and Effect Relationship
7- Contingent
1- Provide useful Insights to Managers.
2- Optimum Utilisation of Resources & Effective Administration
3- Scientific Decisions
4- Meeting Changing Environment Requirements
5- Fulfilling Social Responsibility
6- Management Training Education and Research
1- FUNCTIONAL FOREMANSHIP
Route Clerk Gang Boss
Instruction Card Clerk Speed Boss
Time And Cost Clerk Repair Boss
Disciplinarian Inspector
Planning Incharge Production Incharge
2- WORK STUDY
Method Study Motion Study
Time Study Fatigue Study
3- STANDARDISAITON AND SIMPLIFICATION OF WORK
4- DIFFERENTIAL PIECE WAGE SYSTEM
Chapter-3
BUSINESS ENVIRONMENT
1- Totality of External Forces 2- Specific and General Forces
3- Inter-Relatedness 4- Dynamic Nature
5- Uncertainty 6- Complexity
7- Relativity
1- It Enables the Firm to Identify Opportunities and Getting the
First Mover Advantage
2- It Helps The Firm To Identify Threats & Early Warning Signals
3- It Helps In Tapping Useful Resources
4- It Helps In Coping with Rapid Changes
5- It Helps In Assisting in Planning and Policy Formulation
6- It Helps In Improving Performance
1- Liberalisation 2- Privatisation 3- Globalisation
1- Increase in Competition
2- More Demanding Customers
3- Market Orientation
4- Rapidly Changing Technological Environment
5- Necessity for change
6- Need for Developing Human Resource
7- Loss of Budgetory Support to The Public Sector.
1- Science Not Rule of Thumb
2- Harmony Not Discord
3- Cooperation Not Individualism
4- Development of each and every person to his/her Greatest
Efficiency and Prosperity.
TAYLOR'S PRINCIPLES OF SCIENTIFIC
MANAGEMENT
IMPORTANCE OF PRINCIPLES OF
MANAGEMENT :
1- Division of Work
2- Authority and Responsibility
3- Discipline
4- Unity of Command
5- Unity of Direction
6- Subordination of Individual Interest to General Interest
7- Remuneration of Personnel
8- Centralisation and Decentralisation
9- Scalar Chain
10- Order
11- Equity
12- Stability of Tenure of Personnel
13- Initiative
14- Espirit De Corps
FAYOL'S PRINCIPLES OF MANAGEMENT :
FEATURES OF BUSINESS ENVIRONMENT :
IMPORTANCE OF BUSINESS ENVIRONMENT :
GOVERMENT POLICY CHANGES
(NEW INDUSTRIAL POLICY IN JULY, 1991)
IMPACT OF GOVERNMENT POLICY CHANGES
ON BUSINESS AND INDUSTRY :
1- Economic Environment 2- Social Environment
3- Technological Environment 4- Political Environment
5- Legal Environment
DIMENSIONS / ELEMENTS OF BUSINESS ENVIRONMENT :
MANAGERIAL RESPONSES TO CHANGES IN
BUSINESS ENVIRONMENT:
1- Diversification Spree
2- Joint Venture / Consolidation of Multinationals
3- Brand Building
4- Use of Latest Technology
5- Sharply Improved Compensation Levels
6- Customer Focus
Chapter - 4
PLANNING
1- Planning Focuses on Achieving Objectives
2- Planning is a Primary Function of Management
3- Planning is Pervasive
4- Planning is Continuous
5- Planning is Futuristic
6- Planning involves Decision Making
7- Planning is a Mental Exercise
CHARACTERISTICS / FEATURES OF PLANNING:
IMPORTANCE OF PLANNING
1- Planning Provides Direction
2- Planning Reduces The Risk of Uncertainty
3- Planning Reduces Overlapping and Wasteful Activities
4- Planning Promotes Innovative Ideas
5- Planning Facilitates Decision Making
6- Planning Establishes Standards for Controlling
I- STANDING PLANS
II- SINGLE USE PLANS
1-Objectives 2- Strategy
3- Policy 4- Procedure
5- Rule 6- Method
1- Programmes 2- Budget
LIMITATION OF PLANNING :
1- Planning Leads to Rigidity
2- Planning May not work in dynamic environment
3- It Reduces Creativity
4- Planning Involves Huge Costs
5- It is a Time Consuming Process
6- Planning does not Guarantee Success
EXTERNAL LIMITATION OF PLANNING :
1- Natural Calamities
2- Technological Changes
3- Changes In Government Policies
4- Strategies of Competitors
5- Changes In Fashion, Taste, etc
Chapter-5
ORGANISING
CONSIDERATION WHILE DESIGNING
ORGANISATIONAL STRUCTURE :
1- Job design 2- Departmentation
3- Span of Management 4- Delegation of Authority
NEED FOR ORGANISATIONAL STRUCTURE :
1- Growth in Size of Organisation
2- Overcoming Communication Problems
3- Overcoming Co-Ordination Problems
4- Need for Control
PROESS OF ORGANISING :
1- Identification and Division of Work
2- Departmentalisation
3- Assignment of Duties
4- Establishing Reporting Relationships
IMPORTANCE OF ORGANISING :
1- Benefits of Specialisation
2- Clarity In Working Relationships
3- Optimun Utilisation of Resources
4- Adoptation To Change
5- Effective Administration
6- Development of Personnel
7- Expansion and Growth
(i) FUNCTIONAL STRUCTURE
ADVANTAGES :
DISADVANTAGES :
1- Specialisation 2- Effective Control and
Co-Ordination
3- Emproves Efficiency 4- Avoids Duplication
5- Ease in Training 6- Supervision
1- Functional Empire 2- Difficulty In Co-Ordination
3- Difficult to Hold Accountable
4- Conflict of Interest 5- Inflexibility
(ii) DIVISIONAL STRUCTURE :
ADVANTAGES :
DISADVANTAGES :
1- Product Specialisation 2- Greater Accountability
3- Flexibility & More Initiative 4- Growth and Expansion
1- Departmental Conflicts 2- Costly
3- Ignores Organisational Interest
ELEMENTS OF DELEGATION :
1- Authority 2- Responsibility 3- Accountability
IMPORTANCE OF DELEGATION OF AUTHORITY :
1- Effective Management
2- Employee Development
3- Motivation Of Employees
4- Facilitates Organisational Growth
5- Basis of Management Hierarchy
6- Better Co-Ordination
(i) FORMAL ORGANISATION :
FEATURES :
ADVANTAGES :
DISADVANTAGES :
1- Formation 2- Purpose 3- Reporting Relationship
4- Stability 5- Chain of Command & Communication
6- Flexibility 7- Coordination
1- Fixation of Responsibility 2- Clarity of Duties
3- Unity of Command 4- Helpful In Achieving Objectives
5- Provides Stability
1- Delay In Action 2- Lack of Initiative
3- Ignore Human Element
(ii) INFORMAL ORGANISATION :
FEATURES :
ADVANTAGES :
DISADVANTAGES :
1- Formation 2- Purpose
3- Reporting Relationship 4- Stability
5- Chain of Command & Communication
6- Flexibility 7- Structure
1- Speed 2- Fulfillment of Social Needs
3- Fills Inadequacies
1- Create Rumours 2- Resistance to Change
3- Pressure of Group Norms
IMPORTANCE OF DECENTRALISATION :
1- Develops Initiative Amongst Subordinates.
2- Develops Managerial Talent for the Future.
3- Relief to Top Management
4- Quick Decision Making
5- Facilitates Growth
6- Better Control
TAYLOR'S TECHNIQUES OF SCIENTIFIC MANAGEMENT :
TYPES OF ORGANISATION :
ORGANISATION STRUCTURE :
CO-ORDINATION
TYPES OF PLANS :
Demonetisation
FEATURES OF DEMONETISATION
1- As tax administration measure
2- As a shift on the part of the government
3- Channelizing savings into the formal financial system
4- Creation of a less-cash or cash-lite economy
1. Money/Interest rates: * Decline in cash transactions.
* Bank deposits increased.
* Increase in financial savings.
2. Private wealth : Some high demonetised notes were not
returned to the depositors leading to fall in the prices of real
estate.
3. Public sector wealth: There had been no effect on public
sector wealth.
4. Digitisation: Digital transactions amongst new users
(RuPay/AEPS-Aadhar enabled payment system) have increased.
5. Real estate: Prices of real estate have declined.
6. Tax collection: There has been rise in income tax collection
because of increased disclosure.
OBJECTIVES OF DEMONETISATION IN INDIA
1- To Control Circulation of Fake Currency.
2- To Restrict and Reduce the Supply of Money, Used for
Anti-Social Activities.
3- To Run Cashless Economy in the Country.
4- To Reduce or Eliminate Tax Evasion .
5- To Eliminate Black Money and Black Marketing.
6- To Curb Corruption.
IMPACT OF DEMONETISATION
