Complete revising glimpses and notes for Introduction of Business Management., Lecture notes of Introduction to Business Management

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BUSINESS MANAGEMENT

& ETHICS

INTRODUCTION

• (^) An Organisation is a set of people working together to achieve common goals.
• (^) No Organisation can run successfully unless there is someone to manage its activities.
• (^) Management is a must to accomplish desired goals through group action.
• (^) It is essential to convert the disorganized resources of men, machines, materials and methods into a useful and effective enterprise.
• (^) management is the function of getting things done through people and directing the efforts of individuals towards a common objective.
• (^) Thus, it is the management which makes the people realise the objectives of the group and direct their efforts towards the achievement of these objectives.

Management

Meaning of Management It is an art of getting work done by others. It is the art and science of decision making and leadership. Deep Co-ordination of human resources and factors of production. Management is what a manager does.

DEFINITIONS

According to F.W. Tylor “ Management is the art of knowing

what you want to do in the best and cheapest way"

According to Henry Fayol “ To manage is to forecast and

plan, to organize, to command, to co-ordinate, and to

control .”

According to Rose Moore “ Management means decision-

making .”

4. MANAGEMENT IS A FACTOR OF PRODUCTION – Management is not an end in itself but a means to achieve the group objectives. Just as land, labor and capital are factors of production and are essential for the production of goods and services, management is a factor of production that is required to co – ordinate the other factors of production for the accomplishment of pre- determined goals. 5. MANAGEMENT IS UIVERSAL IN CHARACTER – Management is applicable in all types of organisations. Wherever there is human activity, there is management. The basic principles of management are of universal application and can be applied in all organisations whether they are business, social, religious, cultural, sports, educational, politics or military. 6. MANAGEMENT IS A SOCIAL PROCESS – Management consists of getting things done through others. This involves dealing with people. The efforts of the human beings have to be directed, co – ordinated and regulated by management in order to achieve the desired results. It is in this sense that management is regarded as a social process.

7. MANAGEMENT IS A SYSTEM OF AUTHORITY – Since management is a process of directing men to perform a task, authority to accomplish the work from others is implied in the very concept of management. Authority is power to get the work done from others and to compel them to work in a certain manner. Management cannot perform in the absence of authority. In real sense, management is a rule – making and rule – enforcing body. 8. MANAGEMENT IS A DYNAMIC FUNCTION – Management is a dynamic function and it has to be performed continuously. It is constantly engaged in the molding of the enterprise in an ever changing business environment. In real sense, it is never- ending function. 9. MANAGEMENT IS AN ART AS WELL AS A SCIENCE – Management is a science because it has developed certain principles which are of universal application. But the results of management depend upon the personal skill of managers and in this sense management is an art. The art of the manager is essential to make the best use of management science. Thus, management is both science and art.

Functions of Management

FUNCTIONS OF MANAGEMENT

1. PLANNING - It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

3. STAFFING - It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:

• (^) Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).
• (^) Recruitment, Selection & Placement.
• (^) Training & Development.
• (^) Remuneration.
• (^) Performance Appraisal.
• (^) Promotions & Transfer.

4. DIRECTING - It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

• (^) Supervision
• (^) Motivation
• (^) Leadership
• (^) Communication

MANAGERIAL SKILLS

Skills are defined widely as overt responses and controlled stimulation. It can be categorized as either generic or technical, or entry

• level or advanced. There are four general types of skills:

1. Technical: It relates to concepts, methods, and tools specific to an organisation.
2. Supervisory: It enables one to effectively supervise others.
3. Interpersonal: It enables people to communicate and interact effectively.
4. General Business: It helps in business and support infrastructure.

LEVELS OF MANAGEMENT

An Organisation may have various levels of management. The term ‘level’ involves persons arranged in the series. The number of levels of management in an organisation depend upon its size, technology and the range of production. Broadly speaking, there are 2 levels of management. They are Administrative Management and the Operative Management.

Modern school designates the levels of management as under:

1. Top Management
2. Middle Order Management
3. Lower Level Management
4. Supervisory Management J. Batty has suggested five levels of management. These levels are: 1. Top Management – President (Board of Directors) Managing Director General Manager

2. Top Middle Management – Departmental Heads i.e. General Sales Department Purchase Department Materials Department Production Department Finance Department 3. Middle Order Management – Regional Managers Departmental Superintendents General Accountant Cost Accountant