class-12 (introduction to management) chapter-1

 

BUSINESS NOTES

 

 

CLASS-12

INTRODUCTION TO MANAGEMENT

 

 

Management is a process of getting  a work done efficiently and effectively.

FEATURES

·       Goal oriented

·       Continuous process

·      Management is pervasive function

·       Management is multi-dimensional

·       Management is an intangible force

·       Management is a dynamic process

·       Management is a group activity

1.    Goal oriented:  Goal oriented means the approach to achieve the goal i.e. the prime motive the management is to accomplish the organizational goal.  Regarding that the management must ensure that the goal must be clearly stated to all levels and departments of the organization.

2.    Continuous process: Management is a never ending process as it simultaneously all the other functions of management i.e. planning, organizing, staffing, directing and controlling on continuous basis. Also after achieving the goal it again establish new goals and directs them to achieve over a particular period of time.

3.    Pervasive function:  Pervasive means universal (connected with everyone).So management is pervasive function as it is required and connected with every level and department in the organization. Also, it can be applied in all type of organization whether it is big or small etc.

 

 

4.    Management is multi-dimensional: Management is very complicated to understand as it requires a lot of activities and parts in it.

Mainly, it includes three parts i.e.

·       What to do?  Is called management of work.

It includes understanding of work, needs and translating them into goal to achieve it.

·       Who is to do? Is called management of human.

It includes directing, regulating human resource to use their skills and capabilities effectively and efficiently.

·        How to do? Is called management of operations.

It is a combination of both what operation is to do and who is to do the operation.

 

5.    Management is an intangible force: As work of the management cannot be seen and touched, it is an intangible force. It efficiency and presence can only be considered at the time, when the goal is achieved.

6.    Management is a dynamic function: Dynamic means which keeps on changing. Every Management has to deal with outer world, where factors that affect organization keep on changing. So, to survive and grow in the changing environment management adapts the unstable situations by examining it.

7.    Management is a group activity:  An organization consist of various people with their own interest, management provides directions and integrate their diverse efforts due to which they work together towards achievement of goal.

OBJECTIVES OF MANAGEMENT
 

·       ECONOMIC OBJECTIVE:    According to this objective business should earn profit in order to overcome its cost of production for survival and to grow in the competitive market.

 

·       SOCIAL OBJECTIVE:  This objective deals with the welfare of the society. A business must fulfill some of the under listed social work:

1.    Avoid pollution

2.    Provide employment

3.    Avoid unfair trade practices

4.    Provide good quality products at reasonable price

 

1.    INDIVIDUAL OBJECTIVE: This feature deals with the employees of the Organization. It must fulfill some important responsibilities toward Employees and workers. Like:

       a)  Providing competitive salary

       b) Safe working conditions

       c)  Benefits after retirement

       d) Personal development

 

 

               // OBJECTIVES OF MANAGEMENT ARE SAME AS BUSINESS

NATURE OF MANAGEMENT

 

                                                                                                                                      

 

1.   Management as science:

       What is science? (Features of science)

·       Science is a systematic body of knowledge which has been acquired from continuous observation and experimentation.

·       Principle of science have been continuously observed and then tested through experimentation under controlled situation.

·       Science has universal validity as it connected and required in all situations.

 

 Note:   Now, if management satisfies all three features of science then management is said to science.

a. Does management has a systematic body?

Yes, management satisfies this factor as it also has a systematic body of knowledge which has been developed by practitioner over a period of time.

b. Does its principle are based on observation and experimentation?

Although principle of management have been developed through observation and experimentation, but management doesn’t satisfies this feature as it deals with human behavior which is uncertain and diverse (different).

C. Does it have universal validity?

No, it doesn’t has universal validity as it interact with external environment which is dynamic in nature means it keeps on changing time to time so, in order to survive and grow in the business, management has to analyze and adapt itself accordingly.

 

          Conclusion: management is an inexact science.

2.   Management as an Art:

Art is a personal application and skillful knowledge used to get the desired result.

 

·       It includes theoretical knowledge.

·       It based on practice and hard work.

·       It is a personal application.

a.     Management has a theoretical knowledge like theory for commencement of business, principle of management, business environment etc.

b.    Management is an art because managerial skills can be developed through practice and hard work which leads to creativity.

c.     Management is a personal application as everyone uses their own tricks, strategies and methods to handle various dynamic environments and show their skills uniquely.

 

Conclusion: management is art.

 

        

3.   Management as profession:

 

Profession refers to an economic activity which requires specialized skills and knowledge from professional institutions.

 

·       It has well defined body.

·       It restricts entry.

·       It is acquired through professional institutions.

·       It provides ethical code of conduct.

·       It has service motive.

                                                    

                  

1.   Top level management:

 

It is the main level of management which consists of 

·       Board of directors

·       Chief executive officer

·       Chief financial officer

·       President

·       Vice –president

·       General Manager Etc.

                  

           a.     It setup goals and makes a plan for the achievement of goal.

b.    It frames policies for the organization.

c.     Arranges man power, machinery and various resources required for that.

d.    To take actions for bringing unity in the organization.

 

 

2.    Middle level management:

 

 

It consists of

·       Finance manager

·       Sales manager

·       Production manager Etc.

                 

                                       

a.     To interpret the policies framed by top level management.

b.    To motivate employees to achieve the organizational goal.

c.     To ensure the necessary personnel in the departments.

d.    To establish a link between top and middle level management.

e.     To assign duties to those employees.

 

 

 

3.    Operational level of management:

 

It consists of

·       Supervisor

·       Foremen

·       Superintendent Etc.

            

a.     To oversee the work force.

b.    To ensure the quality of output.

c.     To hear the grievances and report the complaints to middle level management.

d.    To provide safe working condition.

 •FUNCTIONS
          OF 
MANAGEMENT

 

                                  

 There are five functions of management:

 Planning: It is process of thinking in advance, what to do to achieve the organizational goal.

Organizing: It is process of implementing the plan by clarifying the jobs and work to attain the Objective.

Staffing: It is process of selecting right person, at the right time, for the right position.

Directing: It is a process of guiding, instructing, motivating employees to achieve the goal.

Controlling: It is a process of comparing the standard performance with the actual performance to take corrective measure to remove any deviation.

 

 

                                 

Coordination is a process of synchronizing various efforts of diverse department towards achievement of the goal. It is the essence of management means it is not done separately and required at all levels and in every function.

 AT ALL THE LEVELS:

·       In the top level management, it is required to coordinate all the efforts of middle and operational level management towards achievement of goal.

·       In the middle level management, it is required to coordinate with other departments in the organization.

·       In the operational level management, it is required so as to bring uniformity in the activities of workers to ensure the output is as per plan.

IN ALL THE FUNCTIONS:

·       Planning: At this stage coordination is required in, 

a.     Between organizational and departmental plans.

b.    Between objective and available resources.

·       Organizing:  At this stage coordination is required,

a.     Between resources and activities to be performed.

b.    Between assigning duties and responsibilities.

·       Staffing: At this stage coordination is required,

a.     Between jobs available and qualification of personnel.

b.    Between efficiency and remuneration.

·       Directing: At this stage coordination is required,

a.     Between orders, instructions and suggestions.

b.    Between superior and subordinate.

·       Controlling: At this stage coordination is required,

a.     Between actual performance and standard performance.

b.    Between correction of deviation and achievement of goal.

                           Nature of Coordination

 

 

                   

1.    Coordination brings uniformity:  It unifies efforts of diverse departments in the organization and brings harmony in the organization.

2.    Continuous process: As it is continuously and simultaneously performed in the whole organization.

3.     Pervasive function: It is a pervasive function as it is required in all the levels and in all the organization.

4.    Manager’s responsibility: It is the responsibility of all the managers. No one can ignore and avoid it.

5.    Deliberate function: (Deliberate means knowingly) Each person in the organization must perform this function deliberately as it doesn’t occur on its own or force fully.

 

             Importance of coordination