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A Creative Study

Management in the

twenty 1st century

Levels of

management

Importance of

management

Features of

management

Functions of

management

Nature of

management

Coordination

Objectives of management

NATURE AND

SIGNIFICATION

OF MANAGEMENT

In the capacity of ‘country manager’

In the capacity of ‘functional manager’

In the capacity of ‘business leader’

Top management

Middle management

Supervisory or operational management

Helps in achieving group goals

Essential for prosperity of society

Establishes sound organization

Reduces cost

Optimum utilisation of resources

Key element of coordination

Nature of coordination

Importance of coordination

Organizational objectives

Social objectives

Personal objectives

Planning

Organizing

Staffing

Directing

controlling

Goal oriented process

Pervasive

Inter related & interdependent function

Continuous process

Group activity

Dynamic

Intangible

Management As An Art

Management As An Science

Management As An Profession

P

Existence of theoretical knowledge

Personalized application

Based on practice and creativity

Systematized body of knowledge

Principles based on experimentation

Universal validity

Well defined body of knowledge

Restricted entry

Professional association

Ethical code of conduct

Service motive

Integration

Balancing

Timing

Integrates group efforts

Ensures unity of action

A continuous process

All pervasive function

Responsibility of all managers

A deliberate function

Size of the organization

Functional differentiation

Specialization

Coordination is the essence

of management

The challenging role of a global

manager

Maintains equilibrium

Reduces cost

BODMAS CAREER ACADEMY

Principles of management

Fayol’s Principles

of Management

Significance of

Management Principles

Taylor’s scientific

management principles

Techniques of

Scientific Management

Nature of

Management Principles

Division of work

Authority & Responsibility

Discipline

Unity of command

Unity of direction

Subordination of individual

interest to general interest

Remuneration of employees

Centralization & decentralization

Scalar Chain

Order

Equity

Stability of personnel

Initiative

Espirit De Corps

Universal applicability

General guidelines

Practice & experimentation

Flexible

Mainly behavioural

Cause & effect relationship

Contingent

Science not rule of thumb

Harmony, Not Discord

Cooperation, Not individualism

Development of Each and

every person to his or her

greatest efficiency &

prosperity

Providing managers with useful

insights into reality

Optimum utilization of resources

and effective administration

Meeting changing environment

requirement

Management training, education

& research

Fulfilling social responsibility

Scientific decisions

Functional foremanship

Standardization & simplification of work

Differential piece wage system

Work study

Method study

Motion study

Time study

Fatigue study

BODMAS CAREER ACADEMY

Business

environment

Characteristics of

business environment

Importance of

business environment

Dimensions of

business environment

Economic environment

in India

Impact of govt. policy

changes on business

& industry

Managerial responses

to changes in business

environment

Totality of external forces

Specific & general forces

Inter relatedness

Dynamic nature

Uncertainty

Complexity

Relativity

Enabling the identification of opportunity

& getting the first mover advantages

Helping in the identification of

threats & early warning signals or

Rader effect

Tapping useful resources

Coping with the rapid changes

Assisting in planning & policy

formulation

Improvement in performance

Image building

Economic environment

Social environment

Technological environment

Political environment

Legal environment

Liberalization

Privatization

Globlization

Strategic alliance, mergers and

consolidation of business

Diversification spree

Consolidation of Multinationals

Brand building

Labour

Increasing competition

More demanding customers

Rapidly changing technological

environment

Necessity for change

Need for developing human

resources

Market orientation

Loss of budgeting support to the

public sector

Threat from multinational corporation

Corporate vulnerability

Enhanced focus on exports

BODMAS CAREER ACADEMY

Reduce

wasteful

activities

Planning

Importance

of planning

Planning

process

Characteristics

of a good plan Limitations of

planning

Features of

planning

Types of plan

Reduces the

risks of

uncertainty

Promotes

Innovative

Ideas

Provide

Direction

Facilitates

decision making

Est.

standard

for Control

Goals Policy

Objectives

Procedure Rules

Method Programme

Flexible

Clear &

specific

Logical &

practical

Participation

Periodic

review

Simple &

comprehensive

Flexible

Primacy of

Planning

Mental

Exercise

Continuous

Futuristic

in Nature

May not work

in Dynamic

Environment

Involves

huge costs

Creates

Rigidity

Time

consuming

process

Reduce

Creativity 1. Setting

objectives

6. Implement

the Plan

2. Establishing

the planning

premises

4. Evaluating

alternatives

7. Follow up

action

5. Selecting an

Alternative

Focus on

Achieving

Objectives Pervasive

Purposeful

activity

Budget

Success Not

Guaranteed

3. Identify

alternative

courses of action

BODMAS CAREER ACADEMY

ORGANISATION

Functional structure

Merits Demerits

Specialization

Coordination

Economical

Effective

training

Increasing

managerial

efficiency

Conflicts

Ineffective

coordination

Hindrance in

organizational

objectives

Divisional structure

Merits Demerits

Development

of skills

Accountability

Conflicts

Duplication of

activities Quick decision

making

Easy

expansion

Organizational

interest

ignored

Formal organisation

Merits Demerits

Specified

duties

Stability

Fulfils

organizational

Objectives

Unity of

command

Responsibilities

are fixed

Delay in work

Back of

initiative

Emphasis on

work only

Importance of Organisation

Benefits of specialization

Clarity in working relationship

Optimum utilization of resources

Adaption to change

Effective administration

Development of personnel

Expansion and growth

Process of Organisation

Identification and division of work

Departmentalization

Assignment of duties

Establishing reporting relationship

Organizational structure

Informal organisation

Merits Demerits

Fulfills social

needs

Influence on

productivity

Resistance to

change

Creates

rumours

Fast

communication

Fulfills

organizational

objectives

Lack of

specialization

Delegation

Elements of

delegation

importance of

delegation

Accountability

Responsibility

Authority

Effective

management

Employee

development

Motivation of

employee

Facilitation of

growth

Better

coordination

Basic of

management

hierarchy

Importance of

decentralization

Develops initiative among

subordinates

Develops managerial talent for

the future

Quick decision making

Relief to top management

Facilitates growth

Better control

BODMAS CAREER ACADEMY

RELAX ……You Deserve a BREAK

Importance of staffing 1. Ensure availability of most suitable persons 2.Better performance 3.Ensures continuous growth 4.Avoid over manning & under utilisation of manpower 5.Job satisfaction 6.Advancement of Technology

Staffing process 1. Estimate Manpower Requirement 2.Recruitment 3.Selection 4.Placement & orientation 5.Training 6.Performance appraisal 7.Promotion & career orientation 8.Compensation 9.Separation

External sources 1. Direct recruitment

2. Casual callers

3. Advertisement

4. Employment exchange

5. Placement agencies

6. Management consultants

7. Campus recruitment

8. Recommendations

9. Labour contractors

10. Telecasting

11. Web publishing

Advantages of External

sources 1. Qualified personnel

2. Wider choice

3. Fresh talent

4. Competitive spirit

Disadvantages of

External sources 1. Dissatisfaction among

existing staff

2. Lengthy process

3. Costly process

Selection process of selection 1. Preliminary Screening 2. Selection Tests 3. Employment Interview 4. Reference & background Check 5. Selection Decision 6. Medical check-up 7. Contract of Employment

Needs for training

1.Essential for new employees 2.Improves performance 3.Improve employee attitude 4.Reduced supervision 5.Coping with changes in techniques 6.Benefits to employees

RECRUI TMENT

STAFFING

Recruitment Source of Recruitment :

Internal sources

1. Transfers

2. Promotions

Advantages of Internal

sources 1. Simple & economical

2. No need of training

3. Motivation

4. Promotional avenues

5. Cheaper

6. Transfer facilitates

Disadvantages of

internal sources 1. Fresh & more talented stock

2. Promotion

3. Lack of competition

4. Not suitable for new

enterprises

Training methods

On the job method 1. Apprenticeship programmes

2. Coaching

3. Internship training

4. Job rotation

Off the job method 1. Class room lectures /

conferences

2. Films

3. Case study

4. Computer modelling

5. Vestibule training

6. Programmed instruction

BODMAS CAREER ACADEMY

Role of Supervision

Characteristics of directing

Elements of directing

Importance of directing

Principles of directing

Direct contact with the worker

Unity among workers Motivation workers Analysis of work performed

Provides a link between workers and management

Training of workers

Avoidance of conflicts and misunderstanding Leadership qualities

Maximum individual contributation

Harmony of objectives

Unity of command

Appropriateness of direction technique

Managerial communication

Use of informal organisation

Leadership

Takes place at every level of management

Initiates action

Continuous process

Flows from top to bottom

Brings stability & balance

Integrates employees’ efforts

Initiates action

Means of motivation

Facilitates changes

Communication

Leadership

Motivation

Supervision

DIRECTING

Follow through

Balance in the organisation

BODMAS CAREER ACADEMY

Formal & Informal Communication

Elements of communication process

Sender

Message

Encoding

Media

Decoding

Receiver

Feedback

Noise

Importance of communication

Acts as basis of coordination

Helps in smooth working of an enterprise

Acts as basis of decision making

Increases managerial efficiency

Promotes cooperation and industrial peace

Establish effective leadership

Boosts moral and provides motivation

Communication

Single chain

Formal

communication

Informal

communication

Wheel

Circular

Free flow

Inverted V

Single strand

Gossip

Probability

Cluster

Advantage of

Formal

communication

Maintenance of authority

Orderly flow of authority

Secrecy

Easy knowledge of source of information

Disadvantage

of Formal

communication

Overload of work

Distortion of information

No personal touch

Advantage of

Formal

communication

Speedy & spontaneous

Free environment

Social relations

Supplementing

Disadvantage

of Formal

communication

No responsibility

Unreliable information

Leakage of information

Barriers to communication

Semantic barriers

1. Badly expressed message 2. Symbols with different meanings 3. Faulty transaction 4. Unqualified assumption 5. Technical jargon 6. Body language & gesture decoding

Psychological barriers

1. Premature evaluation 2. Lack of attention 3. Loss by transmission & poor

retention 4. Distrust

Organizational barriers

1. Organizational policy 2. Rules & regulation 3. Status 4. Complexity in organization structure 5. Organizational facilities

Personal barriers

1. Fear of challenge to authority 2. Lack of confidence of superior on

his subordinates 3. Unwillingness to communicate 4. Lack of proper incentives

Improving communication

effectiveness

1. Clarify the ideas before communication 2. Communicate according to the needs of

receiver 3. Consult others before communicating 4. Be aware of language, tone and content of

message 5. Convey things of help and value to listener 6. Ensure proper feedback 7. Be a good listener

BODMAS CAREER ACADEMY

MOTIVATION

LEADERSHIP

Internal feeling

Goal directed behaviour

Both positive and negative

Complex process

Features of motivation

Importance of motivation

Changes the negative attitude to positive attitude

Helps in satisfying needs of the employees

Reduces labour turnover

Helps in introducing changes

Reduces absenteeism

Maslow’s need hierarchy theory of motivation Types of needs

Organizational climate

Status

Career advancement opportunity

Job enrichment

Employee recognition programme

Job security

Employee participation

Employees empowerment

Safety and security needs

Affiliation / belonging needs

Esteem needs

Physiological needs

Self actualization needs

Non financial incentives

Financial incentives

Productivity linked wage incentives

Profit sharing

Co – partnership / stock option

Retirement benefits

Bonus

Pay and allowances

Perquisites

Importance of leadership

Handles conflicts

Maintains coordination

Introduces changes

Influences the behaviour of people

Provides training

Integrity

Empathy

Communication skills

Motivation skills

Self confidence

Initiative

Knowledge

Decisiveness

Social skills

Qualities of good leader

BODMAS CAREER ACADEMY

Difficulty in setting quantitative standards

No control on external factors

Resistance from employees

Costly affair

CONTROLLING

Importance of

controlling

Process of controlling

Accomplishing organizational goals

Judging accuracy of standards

Making efficient use of resources

Improving employee motivation

Ensuring order and discipline

Facilitating coordination in action

Step 1: Setting performance standards

Step 2: Measurement of actual performance

Step 3: Comparing Actual performance with standards

Step 4: Analyzing deviations

Step 5: taking corrective action

Limitations of

controlling

BODMAS CAREER ACADEMY

To ensure availability of funds whenever these are required Objectives of

financial Planning

Role of financial management

Current assets & their break up into cash, inventories & receivable

Size & composition of fixed assets of business

Long term & short term financing to be used

Items in profit & loss a/c

Financial decision

Stability of dividends

Earning

Cash flow position

Shareholder preference

Taxation policy

Growth opportunity

Stability of earnings

Stock market reaction

Dividend decision

Financing decision

Investment decision

DIVIDEND DICISION Factors affecting dividend decision

Importance of financial planning

Coordination among different functional areas

Avoid wastage & confusion

Reduce s financial uncertainties

Base for financial control

Optimum utilization of funds

Detailed plans for future

Objectives of financial Management

Profits maximization

Safety of funds

Efficient utilization of resources

Wealth maximization

Meeting financial commitments

Cash flow position of the business

Risk

Level of fixed operating costs

Control consideration

State of capital market

Flotation costs

Cost

Financial decision Factor affecting financial decision

Financial

management

To see that the firm does not raise resources unnecessarily

Break up of long term financing into debt, equity etc.

Access to capital market

Legal constraints

Contractual constraints

INVESTMENT DECISION Factors affecting capital budgeting

Cash flows of the project

Rate of return

Investment criteria involved

BODMAS CAREER ACADEMY

Fixed

capital

Capital

structure

Working

capital

Long term

investment

Liquidity

Return

Flexibility

Economy

Risk

Capital

structure of

other

companies

Debt service

coverage

ratio

Cash flow

position

Return on

investment

Interest

coverage

ratio

Cost of

debt

Features of

capital structure

Factors affecting the

choice of capital structure

Stock

market

condition

Flotation

cost

Control

Cost of

equity Tax rate

Flexibility

Risk

consideration

Regulatory

frame work

Factors affecting the

working capital

requirement

Nature of

business Scale of

operations

Production

cycle

Business

cycle

Seasonal

factors Credit

allowed Availability of

raw material Credit

availed Operating

efficiency Level of

competition Growth

prospects Inflation

Importance of

fixed capital

Heavy

investment

Risk

involved

Irreversible

decision

Factors affecting the fixed

capital requirements

Nature of

business

Size of

business

Choice of

technique

Technology

up

gradation

Expansion

of

business

Type of

product

Financing

alternative

Level of

collaboration Efficiency in

management

of fixed assets

Manufacturing

/ trading firm

BODMAS CAREER ACADEMY

Mobilization of saving & channeling them into the most productive Functions of

Financial market

Classification of financial markets

Money market

All India level stock exchange

NSEI & OTCEI

Money market Instruments of money market

Objectives of SEBI

Competitive & professional

Prevention of Malpractice

Balancing

Orderly functioning

Protection

Functions of SEBI Regulatory function

Notification of rules & regulation

Levying of fees

Regulator of investment schemes

Registration of brokers & agent

Prohibits unfair trade practices

Promotion of fair trade

Research

Training to intermediaries Functions of SEBI development function

Facilitate price discovery

Functions of SEBI protective function

Prohibits fraudulent & unfair trade practice

Promotes fair practice

Education investors

Provide liquidity to financial assets

Reduce the cost of transactions

Capital market

Treasury Bill

Commercial paper

Call money

Certificate of deposit

Commercial Bill

Capital Market Primary market Secondary Market

Methods of flotation in primary market

Rights issue

Offer through prospectus

Offer for sale

Private placement

E-IPOs

Secondary market (stock exchange) Total 24; oldest BSE

Inspection & enquiries

Performing & exercising powers

Financial market

Common Feature of NSEI & OTCEI

Prevents insider trading

Screen based training

Nationwide coverage

Transparency

Promoters

Ringless

BODMAS CAREER ACADEMY

A.

Sh

op

pin

g e

ffo

rt in

vo

lved

•Convenie

nce P

roducts

•Shoppin

g p

roducts

•Specia

lty p

roducts

B. D

ura

bilit

y o

f p

rod

ucts

•Non d

ura

ble

pro

ducts

•Dura

ble

pro

ducts

•Serv

ices

Marketing

Role of

marketing

Objectives of

marketing

management

Feature of

marketing

Marketing

management

philosophies

Classification

of products

Elements

of

marketing N

eed a

nd w

ants

Cre

atin

g a

mark

et o

fferin

g

Custo

mer v

alu

e

Exchange m

echanis

m

Role in a firm

Role in the economy

Product

Price

Place

Promotion

Function of

marketing

Consumer

product

BODMAS CAREER ACADEMY

Branding

Labelling

Pricing

Place /

physical

distribution

mix

Brand name

strategies

Advantage to the

marketers

Advantage to the

customers

Features of a

good brand name

•Individual branding •Blanket family branding •Separate family brand name •Company name combined with individual brand

•Enable marketing product differentiation •Helps in advertising & display programmes •Differential pricing •Ease in introduction of new product

•Helps in product identification •Ensures quality •Status symbol

•Short & simple •Indicates the qualities •Unique •Adaptable •Versatile •Capable

Functions of

distribution

channel

Type of channels

Factors

determining

choice of

channels

Components of

physical

distribution

•Sorting •Accumulation •Allocation •Assorting product promotion •Negotiation •Risk taking

•Order processing •Transportation •Warehousing •Inventory control

•Product related factors •Company characteristics •Competitive factors •Market factors •Environmental factors

1. Direct channel (Zero level) 2. Indirect channel a. manufacturer retailer consumer (1 level channel) b. manufacturer wholesaler retailer consumer (2 level channel) c. retailer consumer (3 level channel)

•Complete description of a product •Identification of product •Grading of product •Promotion of product •Legal information

Factors of

labelling

•Primary Package •Secondary Package •Transportation Package

Levels of

packaging

Importance

of packaging

Function of

packaging

•Rising standards of health & sanitation •Self service out lets •Innovational opportunity •Product differentiation

•Product identification •Product protection •Facilitate use of product •Product promotion

Factors

affecting

Strategies

•Product cost •The utility & demand •Extent of competition in the market •Government & legal regulations •Pricing objectives •Marketing methods used

•Price skimming •Penetration pricing

Packaging

BODMAS CAREER ACADEMY

Promotion

mix

advertising

Personal

selling

Sales

promotion

Publicity

Undermines social values

Confuses the buyers

Some advertisement are in bad taste

Encourages sale of inferior products

Paid form

Impersonality

Identified sponsor

Mass reach

Enhancing customer

Satisfaction

expressiveness

Economy

Less forceful

Lack of feedback

Inflexibility

Low effectiveness

Adds to cost

Features of

advertising

Merits of

advertising

demerits of

advertising

Objections

of

advertising

Media

selection

Selectivity

Flexibility

Cost

Editorial environment

Coverage of the media

Permanence

Merits of

sales

promotion

Attention Value

Useful in new product Launch

Synergy in total promotion efforts

Limitation

of sales

promotion

Reflects crisis

Spoils product image

Commonly

used sales

promotion

activities

Rebate

Discount

Refunds

Product combination

Quantity gift

Luck draw

Usable benefits

Full finance @ 0%

Samples

Contests

Instant draws &

assigned gifts

Advantages

of publicity

More credibility

Mass reach

Disadvantages

of publicity

No control

Limited information

Features

of personal

selling

Personal form

Development of

relationship

Merits of

personal

selling

Flexibility

Direct feedback

Minimum wastage

Personal selling

importance to

businessmen

Effective promotional tools

Flexible tools

Minimizes wastage of effort

Consumer attention

Lasting relationship

Personal rapport

Role in introduction stage

Link with customer

Personal selling

importance to

customers

Personal selling

importance to

society

Helps in identifying

needs

Latest market

information

Expert advice

Induces customers

Converts latest demand

Employment opportunities

Career opportunities

Mobility of sales people

Product standardization

BODMAS CAREER ACADEMY

Consumer Protection

Importance

of consumer

From consumer’s

point of view

Consumer ignorance

Unorganized consumer

Widespread exploitation of Consumers

From the point of

view of business

Long term interest of business

Business use society’s resources

Social responsibility

Moral justification

Government intervention

Poverty & Unemployment

Illiterate consumer

consumer are not organized

The consumer protection Act, 1986

The contract Act, 1982

The sale of good Act, 1930

The essential commodities Act, 1955

The agriculture produce Act. 1937

The prevention of food adulteration Act, 1954

The standards of weights and measures Act, 1976

The trade marks Act, 1999

The competition Act, 2002

The bureau of Indian standers Act, 1986

Need for consumer

protection in

developing

countries like India

Legal protection

to consumers

Right to safety

Right to be informed

Right to choose

Right to be heard

Right to seek Redressel

Right to consumer education

Right to basis need

Right to healthy environment

Consumer Right

Consumer

Responsibility

Awareness of right

Quality conscious

Ready to lodge complaint

Not to be misled by false advertisement

Must obtain cash memo

Cautious consumer

Consumer organisation

Environment

Availability goods & services

Selection of goods

Self regulatory by business

Business associations

Consumer awareness

Consumer organisation

Government

Ways & means

of consumer

protection

Redressal

agencies

District forum

State commission

National commission

Role of consumer

Organisations &

NGOs

Important consumer

Organisations &

NGOs

Creating consumer awareness

Encouraging the consumers

Filing complaints

Protesting against traders

Focus on consumer problems

Provide legal assistance

Consumer coordination council, Delhi.

Common cause

Voluntary organizational in interest of

consumer education (VOICE) Delhi.

Consumer education & research centre

(CERC) Ahmedabad .

Consumer association kolkata

Consumer guidance society of India,

Mumbai etc.

BODMAS CAREER ACADEMY