SYLLABUS B.Com. (Hons.): Semester - 1 Paper DSC 1.1: Management Principles and Applications "| Credit distribution of the course | | Course title & |Credit| Lecture | Tutorial | Practical’ | Eligibility | Pre-requisite of | Code Practice | criteria _| the course (if any) Management 4 3 1 0 | Pass in XIT NIL Principles and | | ‘Applications | | BCH: DSC 1.1 | Learning Objectives The course aims to familiarize the learner with extant and emerging management theories and practices for reflective and holistic thinking on management principles and practices. Learning Outcomes The Learning Outcomes of this course are as follows: 1. Describe the various levels of management and applicability of management principles. 2. Evaluate a company’s competitive landscape as per Porter's Five-force model 3. Demonstrate various types of authority, delegation and decentralization in authority 4. Demonstrate various types of leadership styles and identify the motivation techniques used by leaders. Discuss the impact of emerging issues in management. Unit 1: Introduction (8 hours) Meaning and importance of management; Coordination mechanisms in organisations; Management theories- classical, neo-classical and modem constructions of management; Managerial functions; Managerial roles (Mintzberg); Managerial competencies. Indian Ethos for Management: Value-Oriented Holistic Management; Learning Lessons from Bhagavat Gita and Ramayana.Unit 2: Planning Business-level strategic planning. Unit 3: Organising Decentralization and Delegation; Factors affecting organisational design; Depart ‘Organisational structures and Onganograms: traditional and modem compar and changes over time: formalinformal organisations’ interface Unit 4: Directing and Controdting Motivation- meaning. importance and factors al importance and factors affecting leadership. leadership sty Controlling- Principles of controlling: Measures of controlling and accountability for performance, Unit 5: Salient Developments and Contemporary Issues in Management (8 hours) Management challenges of the 2st Century purpose. performance and reward pe Entrepreneurship & Innovation Values & Bhilwara Group. IOC and Godrej. Workplace diversity. Democ' ‘management ideas from India. (16 hours) p> meaning Practical Exercises: The leamers are required to: CONTENTS UNIT-4: INTRODUCTION + Concept, Nature and Scope of Management it, Science or Profession? id importance of Management Operative Functions Managerial Functions and Manageri f Deserip3.4 Need for Coordination 3.5. Advantages of Coordination 3.6. Typesof Coordi 3.7 Principles of Coordination 3.8 Techniques or Mechanisms of Coordination 3.9 Why Coordination is the Essence of Management? ‘Test Questions Practical Exercises 4. Evolution of Management Thought 4.1 Management as an Eclectic Modern Discipline 42. The Classical Approach 4.3, Neo-Classical or behavioural Approach 44 Systems Approach 4.5 Contingency Approach Test Questions Practical Exercises 5. Contemporary Management Thinkers 5.1 Management by Objectives (Drucker) 5.2. Five Forces Analysis (Michael E. Porter) 5.3 Leaming Organisation (Peter Senge) 5.4. Fortune at the Bottom of the Pyramid (C.K. Prahalad) 55 Ree ing (Michael Hammer and James Champy) Test Questions Practical Exercis 6. Indian Ethos for Management 6.1 Indian Ethos 6.2. Indian Ethos for Management 6.3. Value-Oriented Holistic Management 6.4 Management Lessons from Bhagavat Gita 6.5. Management Lessons from Ramayana Test Que Practical Exercises s 4-4. \_ % Strategic 71 Planning: Nature, Characteristics and Importance 72. Principles of Planning, Test Questions Practical Exercises, 8. Setting Organisational Objectives 8.1. Definition of Objectives 8.2. Nature of Objectives 83. Need and Importance of Objectives BA Setting Objectives 55" Management by Objectives: The Modern Approach to Setting Objectives 86 Key Areas for Setting Objectives ‘Test Questions 9.1 Levels of Strategy 9.2. Concept and Nature of Strategic Planning 93. Importance of Strategy/Strategic Planning 9.4 Limitations of Strategic Planning, 9S Business Level Strategic Planning ‘Test Questions ‘Analysis and Diagnosis 10.1” The Coneept of Business Environment 192. Components of Business Environment 103 Environmental Analysis and Diagnosis 10.4 SWOT Analysis 4-7rel 6 Be Th 5 1 ass 9 2 36 ; 10 \_BIS- Decision Making Environment (Certainty, Risk, Uncertainty) 3 13.7. Centralisation of Authority 2 11.4 Importance of Decision-Making . 13.8 Decentralisation of Authority B 115 Typesof Managerial Decisions é ion between Delegation and Decentralisation B LS. Process of Rational Decision-making 7 the Degree of Decentralisation 4 71.7 Individual and Group Decision-Making ii and Disadvantages of Decentralisation 1s 6 “6 5 19 ATO. Qualitative Techniques of Dec » | Management Information System (MIS) a | 12. Decision Support System (DSS) 2 Test Questions » | ORGANISING | D7 Concept, Process and Principles of Organising - An Overview 21247 | 12,1 Concept of Organising 122. Nature and Characteristics of Organisation 12.3. Purpose and Importance of Organising 12.4. Steps in the Process of Organising, 12.5. Principles of Organising 12.6 Organising and Division of Labour 12.7 Span of Management ‘Test Questions Practical Exercises 13. Delegation and Decent 13.1. Authority, Res 13.2. Line, Staffand Functional Authority Relationship ov Badr Csene Cg orb on Poca ° 15 Sstgo ner Depa | Test Questions ic 16 ypc of rnc Sate (une Oman 162 Feo Orpen ion of Authority lity and Accountability '@ 16.3. Line and Staff Oraganisation 16:4. Project Oraganization 21.19.26 6 » 128" How 19 Handle Informal Groups 3 Test Questions 20.1-20.17 Practical Exercises 1 UNIT-IV: DIRECTING AND CONTROL 203 3 204 Relationship between Planing, Organizing Diesting and Control a 18. Motivation sual 20.5 Importance of Control 7 (Concept of Motivation ! 20.6. Limitations of Control 8 2 u 7 B 7 “ Herzberg’s Two Factor Theory 10 16 Comparison berween Maslow and Herzberg Models 2 8 Megregor’s Theory X and Theory Y B 21, Major Techniques of Controt : ‘Test Questions 16 21.1 Budgetary Control! 1 Practical Exercises ” 21.2. Balanced Scorecard (BSC) (Stakeholders’ Approach) 8 21.3 Integrated Ratio Analysis (Accounting Measures) 10‘21.4 Economic and Financial Measures ' 21.5 PERTICPM e ‘Test Questions UNIT-V: SALIENT DEVELOPMENTS AND CONTEMPORARY ISSUES IN MANAGEMENT FiveseeeeeseesesseeSheP 2241-22. 1 6 22, Management Challenges of the 21st Century 22.1. Challenges of the 21st Century 22.2 Overcoming the Challenges: Management Tasks ‘Test Questions i 23. Contemporary Issues in Management 23.1-23.33 23.1 Factors Reshaping and Redesigning Management Purpose, 1 Performance and Reward Perceptions 23.2. Intemationalisation 3 INTRODUCTION 23.3, Digitalization 8 234 Entrepreneurship & Innovation " 235, Values & Ethics in Business 15 23.6 Holistic Purpose and Measures of Firm Performance 18 a 23.7 Workplace Diversity | 23.8 Democracy and Sociocracy 6 23.9 Subaltern Management Ideas from India 30 Test Questions 32 Practical Exercises 32 AAAS - Concept, Nature and Scope of Management . Managerial Functions — An Overview . Coordination - The Essence of Management . Evolution of Management Thought . Contemporary Management Thinkers . Indian Ethos for Management ee Appendix—Case Studies (including ease studies on Tata, Bhilwara Group, Indian Oil Corporation, Godrej Q.1-Q.2 Question Papers AarneChapter Concept, Nature and 1 Scope of Management OO CHAPTER OUTLINE 1.1. Meaning of Management 1.2. Concepts of Management 1.3, Characteristics of Management 1.4 Management Vs. Administ 1.5 Management-Art, Science or Profession 1.6 Need and Importance of Management is made up of organisations and human beings accomplish most of their h organised endeavour. Organised effort can be effective only when ciently. Wherever people work together ina group to achieve common objectives, and hur become amob that is capable of and coordination is known as 1.1 MEANING OF MANAGEMENT tions. Some of the meanings of the term are Management is a term that has several conn given below: Management is the Art of Get ne Through Other People 1¢ Thing mn of managem inderstand, Secondl eo This has become a very popular det s very simple and easymanagement is much wider people, Soe the People refers to the procurement, development, ‘offuman beings workingin the organisation. tis the mostimportant Inthe reals people as mere ‘equally important. ‘This definition is of maniy (») This definition does not reveal that a formal organisational set up isneeded for geting | things done, 1.1.2 Management is Concerned with Ideas, Things-and-People _and information into action. ‘organisations. Management theory is the maj EE ‘management of ideas has three main impli of management to regard management as a di ‘manager gets things done through other people. These | Maman and materia enue“Management: Principles and Appi e 7 iples and Appication, material res people (human resources) use suc reer asi of manager to ensure that he Mica (optimum) manner. When reSOwrCES are ‘Binimum possible one. There sian nthe investment made in the resources. Si an enterprise spends considerable among the employes work ae re ve uinaion of mei resources. Therefore the ef resources is even more important. Management is said-o be effect tlsing is Puman and materia resources effectively ands thereby achiving its objectives ‘Whatever, managers do, they doit in order to achieve enterprise objectives through the effective utilisation of human and material resources. Therefore, it appears t that management $c enerprisgobjecve si cece plo: ging on a wide perspec rfaiersccietee which the enterprise is functioning. 1.2, CONCEPTS OF MANAGEMENT Quite often the term management is used to refer to both the persons who occupy managerial ‘which managers perform. In fat, there can be five di concepts of management 1, Management as an economic resource:(According to an econ thor factors being land the owner may hinsel orc between tment and efacior of production because assemble tum governed by management. Management coordin: methods, markets, materials, machinery and money) of an organi it occupies a unique place among the productive factors\as can be set Ld Treeline of management fctorcanbe inproved ugh raining and development of executives. The importance of management the tempo Concept, Nature and Seope of Management ey . Management as a class or group: Soci (ES wy ‘The M’s of Management Fig. logists look upon management as a distinet class in society with its own status system With the growing importance of organisations land the need for their efficient management, managers have become a very powerful ives through the direction of others. These pe jown as “managers’) Any person who performs the managerial various types of managers ¢g., family managers, professional managers, civil servants who manage public enterprises, eic] The management team of an organisation is ‘comprised of all executives right from the chief executive upto the supervisor. For instance, the statement that the management of X company is very good refers to the managers of that company] As a competent class, managers strike a balance among diverse interests, Management as a system of authority: Experts in the field of administration consider ‘managements a system of authority{ According to Harbison and Myers, “management is ‘rule-making and rule-enforcing bod), and wi ‘is bound together by a web of rarchy of authority among ‘goals and policies ofthe enterprise while those atthe lower level are authorised to executeManagement: Principle learin Valised courses have been dk discipline is a part of soc Frinciples and practices and a person m™ manager. Yodsy. management is a-very ‘admissioi into management co thas been described as “Manageri discipline and its status to increase inthe times 5. Management as a process {As a process, management by which managers determine and accomplish go: rational, intellectual, dynamic and continuous process, co people) and controling (Keeping onthe right tack) of human ef mmenabjeciveis ithe mst popular interpretation ofthe term manager same therrenatsdanagers do, The tue character of management canbe Seen asa process aGgmposed of several elements or functions. Management is what ma “The different concepts of management deseriped above are not c They are merely different ways of looking at management is synthesis ofall these viewpoints Definitions of Management Different experts have defined management in different ways. Some ofthe popular def given below, -B.O. Wheeler T._ Peter F. Drsker The Practice of Management, p17 agers rene, dts, and opertepuponive coopera ‘human effort” me Lawrence A.Appley former President of American Management Association 1.3. CHARACTERISTICS OF MANAGEMENTManageme les and Application, 18 fanagement & 2. Management is purposefe No get Kiongencn mas tings happen hich would otehevigg re ers sk to secure the objectives with highest ellcleney the onimum lsaen ofrree petemas ‘er. The basic purpose of management -yardsticks against which coordination 4 isan integrative forces The essence of managemer ‘Management reconciles the individual goals with organisational goals. As a unifyingforce, management creates a whole that is more than the sum of ini integrates hi is an integrated process as its elements are 5. Management is a group phenom 6 ae and application of the knowledge and analytical approaches developed by numerous disilines} _8.-Managerient isa continuous process: Mi action for the achievement of group _30- Management is both a science science. It is an art because it involves the appl body of knowledge consisting of generally appli of management are not hard and fast rules snagement js an unseen oF seen but its presence can be felt everywhere in the form of result ‘who perform the functions of management are very much tangible and visi rd an art: Management is a combinat jon of knowledge and sce as it contains a systematised ble principles. However, the pit mn of managerial problems, Management isa s and on- is organised consists of several interrelated elements le force. It eannot be However, the managers of art and ls for the 1.4 MANAGEMENT VS. ADMINISTRATION hhas been a controversy on the use ation, ions, Many experts make‘organisation, mana inistration defines the goal, management strives ; si eC of na toward it. Organisatic | a essentially executive". Thus, administration isthe det Imanagement is execuing of done en St ering orihnkngfnton wile Administration is a part of manager ‘management is a wider term includ ‘management is conec a te Ordway Tad, oministration s “te process and agency which is responsible According! , forthe determination fhe ims 7 which establishes the broad 8 igvespeneral oversight tothe continuing eetiveness oft the objectives sou. Management ithe process. and agency wh the operations of an organisation inthe realising of established a Inthe words of JN. Schultze,“ - which lays down the objet for which an organi programme is laid down and cor snc appl) "Rina Kina eek “ios Even Sildon hs meno atone pesto a a fecal snc inchoestet admin ese “Thus. the Bris siewpointsenactly- oppo - i" e force ‘Management, on the other hand, is th - . ‘and the same: ization inthe accomplishment of a predetermined object 3. and the same: Many wit ise that concems ‘same principles and functions. According to Newman, 1 ent or istration is “te gan kndip and cn te ets ota wrtasone somone) hog Fo Tacoma mn omerte sane el reper: Tete onccnmon srs wichcanbccin | private affairs. Therefore, the distinet Soprano em malin ice, the two terms are used interchangeably. government or public organisations while the Used in the business world where economic broad programmes; active direction of human efforts. The former is largely determiand Appi Management: Pri _ manager spends & part i on ‘on operative management) This cay administra as be seen from Fig. 1.2. Top ----- ‘Management Middle Management ee Operating Management Fig. 1.2: Administration and Management Cacao se ah nner shih evel pend reine on airstte zeae neon managerial function) As one descends the organisation hierarchy. the emphasis menceution of plans increases This approach o administration and management appear to temore realistic because of two easons. Fisly two separate ses of people are not required to discharge admini and every a ‘and doing are (vo ive and operative management functions. Ea ‘Management Basis of Dist Administration 1 Nature It is a determinative or thinking is an executive or doing funtion 2. Scope the determina- ves and 3.Level is mainly atop level function. rgely a middle and lower tion, 4 Influence Adm ive decisions are decisions are influenced mainly by influenced mai and other outside forces, and po Concept. Nature and Scope of Management 5. Direction of human fons ‘ornecll¥ concerned with | It is actively concerned wi Fhuman efor, Aireetion of human effort in the ‘execution of pans 6 Main functions Directing and organising are the ‘main funetions involved ‘Conceptual and human skills. ‘Technical and human sk {Used largely in goverment and pubic | Used mainly in business ‘Managing Director, General Manage. ‘Sales Manager, Branch Manager, ee ‘A.question is often raised as to whether management is an art, a science, a profession or all the ‘three. This question has been discussed here to explain the nature of management Management as an Art ‘wood and a goldsmith shaping gold into prescribes how to do things and it ean be improved through involving practical way of doing specific things. It ough the use of skills. Art involves practical amples of art uous practice) Ai a lowing reasons use of knowledge and Every manager (b) Management secks to achieve cont According ‘employer and employee and give the public the best possible service.” ike any other art_sapagement is creative. It brings resources productive fa fac manager‘and Applications P Management ‘7 pit gone sng ia nets Sem caso Oe manage tas his ovn ragement is a personal procs wnmental conditi mgr ec ioe = hte went pet oa ba Te As a a gts pratie of anager i The art of management I ize and complexity of organisations, Tt preased wih rap owt inthe um the art of securing Science 1.52 Management 25 2 ig. When generalisations or hypotheses are emp eer praugh continuous observation and experimentation they become Pi ‘a number of principl 1gan effective organisation tructur. Simi in the field of management. Bud .W. Taylor the advancement of science of managem ‘management science’ which is used to refer ‘managerial problems, ive as perfect as natural sciences like PhYs study and predict human beings under cont ever changing and unpredictable. Therefore, we cannot have the same kind of experimentation Concept, Nature and Scope of Management las ae ea erased ie eal Fence ey Te awe eon Mion, Faris and the youngest of sciences. CGaience and art are not mutually exclusive but complementary to each other Thy are two serge of the same coin. Science without artis sterile and art without science is bing According, to Barnarc ‘concrete ends, effect results, produce ‘Stoations that could not come about without the aitat be mastered and applied by those who deal in the concrete and for the future. the ‘on the other hand, ito explain the phenomena, the events, the situations 's not to produce specific events, effects or situations but to provide [Every artis based on an underlying body of snce, artis improved by reducing dependence the knowledge of medical science 1¢s a “witch doctor’ of "quack" , an executive jut principles of management has to depend on luck or inti los) Bu ledge and training in management, he has a better guide to design” sfknowledge jays born. They can be made fheory cannot lead to success gree in management cannot th a merely cookery book cannot be 12, books on medical knowledge myst be st ‘supplement each othes) Use of judgement and experience is ess F science. The art and science of management go hand in hand. ion, judgement and experience while as a successful manager must not only acquire s on thi the science of management but Tearn to apply this knowledge. Competence ‘management requires mastery of scientific knowledge as well as practice in the use of knowledge) jeory of manager Koontz and © Donn 2. C1. Bamard: Futie Management: Principles and Applications 1.5.3. Is Management a Profession? ‘define the term “profession” because the roles of a manager are very no universally accepted definition of profession. However, the chiet characteristics of a profession are as follows: ised and systematised body of (Body of knowledge: Every profession has an organised “ Proce Tne unteryingbay ofknoedescnimonay expanding ou eplr interchange of ideas, information and research 1B} Formal education and training: There exist formalised methods of acquiring knowledge and skills, Specialisation is found in all professions. A profession requires intellectual raining. so-mi onthe basis of examinato finimum qualifications{Entry oa profession is restricted on the bas : ‘or education. An ca ‘can enter a profession only after passing the prescribed 1um standard of education examination and acquiring a degree or diploma)Such is considered essential for judicious or competent app! the profession. It regulates the behaviour ofits members, For examy Chartered Accountants of India regulates the aceountaney profession in India (OSéFvice above self: Service to society is given precedence over e ‘considerations. professional is inspired bythe mative of ser. and financial reward i not the measure of sucess. Remunc: by a professional should be reasonable. Tat is why a professi respect from the community. _ D-Code of conduct: A code of ethical standard is establishes professionals. Every member ofthe profession is expected Code of ethical conductin daily routine Ciudged on this erteria,managementcannot yt be described asa though thas aoquired many professional overton expanding body of knowledge inthe form of managerial body of knowiedgeis transferable 1 canbe mastered and practised jereasngly important Concept, Nature and Scope of Management se i an abeoad In nd, hr AL Inia ar couty her et ‘to the AIMA. There is an increasing, anager and ve oe conduct hasbeen omulta, Consunceatene caine ons ng the comport code of con the_ management cadre is not restricted associations have been set up both in Management Association management assocTations which ‘emphasis on the social responsi ions, to administer oath to members f the AIMA is not compulsory for thies and a person cannot be professionals, managers do not have asingle homogeneous group of cients. Asense of jon and selfless service are not widespread. Even the underlying body of knowledge mature and inexact. gers, According to Drucker, han senor proesion hough containing elements ter damage could be done to economy and society than to attempt o agers ory intng ace fo management "Gh good manager is one wh ean achive nanacalemi dees or dioma) 1.6 NEED AND IMPORTANCE OF MANAGEMENT. and joint efforts have become rnagement is required Wherever two or more peo s, The success in group efforts depends upon mutual up. Managem lispensable 1, aclub, ete Management p-9f) Ls 1.6.1 Importance of Management Management is important because ofthe Following 1 Optimum uilization of resources{ Manag ‘optimum uilisation of resourc the disorganised resources of gn, money, ene Dik: ‘management every busines. Withput it the resources ‘pecome production!.] Management isthe survive and grow “Management performs vital functions: Management is required 10 “irect and control group efforts. Management provides leadership and mot individuals. There is continuous need for management in an ore 3. Management is instrumental 10 coordinationAs an innovative force, management performs the same role in an organization which rain does in the human body. [tis the fundamental coordinating mechanism that underlies organised endeavour]The importance ‘of management has increased tremendously in recent years duc to increase in the size and complexity of organisations, turbulent environment and growing responsibilities of business. end otro mann is i ain _S= Developme? resource development and in developing the intel ‘. e management is consideration not Aly profits Bt aso savironmens) J/eatering a customer needs; The management most develop and of cater to customer neds. They ty the custom products and services since customer -6.2 Need for Management (Bosines environment is becoming more c eed to study management becau 1. Peter. Drucker op. cit, p 3 Nature and Scope of Management irowing size and complexity of business Need for research and development 2) Turbuler (3) Need for recor ronment of business, ing the interests of various groups, e.g, owners, workers, customers. 3 A vel, It is an agent of change and ge ofa nation depends upon the mn of its managers and adn f Coa lent energy of people i business management enables usand Applicat Management: Princip! e 's * Management is thy key for unlocking the Fore anagers are the custodians ofthe hopes and aspirations of and socal developer “management is one and at the we the determiner of our the masses. In fact, cascat et of our resources, the P xe employer of our educate economic progres the employer of ou ees the moulder of ‘managed’ and tie forefegive govern a erg eveloped and underdeveloped cee ‘countries. Management aims of resources. They also develop hume Sut management. Therefore the dpelomen ent masreceive top priori under ut development last Viout an siege ply ofan gnc and specised managers econoie developmen Steed Aevordigtothe ate este John Kened. he ole of management in Inhaman popes sores to prove standards of ing of al reseurces By designing job cour society is er people through effective structures that provide opy provides human satisfaction) Management makes between nations. Thus, management is an essenti keystone of modern. 1 TEST QUESTIONS 1 1. Define management and discuss its essential characteristics. in how management is an economic resource, a system of authority and a class or the force which leads, guides and direct predetermined objectives”. Discuss thi definition of managem: organi -ment and give a sui 1 Peter F Drucker: Management-Tasks, Responsibilities and Practices, p. 9. Nature and Scope of Management 4. Areadministration and mana, conflict between them? | ‘Mangement ung unananpysa xue whichatanobetnentnaesacaer et ani ea clearly the nature and scope of management, ae 6, “Managements tguiedesan a prone sacecety aterm by many more. The truth seems to be ok eer ee eee ee Comment on the 1 "Bement different? How will you resolve the terminological ct somewhere in between”. In the light of this vanagement. llowing statements: (2) “Management is the development of people not the direction of things” (6) “Management is both an art and a science”. scuss clearly the significance of management from the point of view of modem business 9. (a) “Managementis the effective wilisation of human and material resources to achieve the enterprise's objectives.” Comment, (2) Ismanagementa profession’ Give arguments for and against the professionalisation of management. 10. “Management is concerned with ideas, things and people. Comment, 1, “Management is the art of geting things done by others," Crit ‘analyse this statement. (Delhi, 2016 CBCS) ' PRACTICAL EXERCISES 1 CASE STUDY Mr Harbhajan, owns a small business, His son Mehul has just joined the business and plans to expand it, Mehul wants to hire a professional manager and short listed 2 candidates for the job. + Ms Ziva, who is a fresh MBA graduate from a reputet ion I organisation. He is a simple + Mr Venu, who has an experience of 10 years in as graduate from a small town college. Mehul favours Ms Ziva who is professionally qualified. en he talks about this with his father; Mr Harbhajan says, “Why do we need a manager at all? Things have been going fine without any manager. { have run the business without any professional qualifications since the last 24 years. Ifa all, we hie someone, we should employ12 ‘Management: Principles and Applications Mr Venu because of his experience, Experience is more important as management is an an Ie ate believes that in the modern times a professional manager is more suitable. (On the basis of the above situation, answer the followi . Do you agree with the statement made by Mr Harbhajan about there being no need for a manager? Give suitable reasons to support your answer. 2, Is Mehul correct in his belief that Ziva should be employed because she has a professional degree? If you were the owner of Ms Ziva or Mr Venu? business, would you Managerial Functions- 2 An Overview —— ee CHAPTER OUTLINE> ‘Some writers have also functions of management. ing to Koontz and to group them, Accord venison eis ace etl et i ing, stat jerstanding."* ance ete sfallows : {Ae 21 AClassteation of Managerial Function Eve Function ‘Sub-funetion| Planning Organising Saating 1. Principles of Management pp. 7-18 lanning provides standards for con and directing sets the tone f structure must provide for effective direction and cont and provides input forthe other functions. Thus, the anagem functions) is a composite and cirewlar eee = ‘shown in Figure 2. TS) Dieting Suafing — = 4 Fig 2.1: The Management Process ‘The process of management i continuous, Plans beget subordinate plan rroditfed and new ones have tobe developeg/ Logical ‘amanager performs various functions sim rol organising helps to determine who on a particular sequence of managem start from any point not necessarily from planning and end: time several ms may be performed simultaneously) Many writers point out that planning, organising and cont staffingand ingot and staffing; and (i) Executive functions or management in action which it and controlling) Managerial functions are universal in nature, They have to he pe lerespective oFthe size and ature of the organisation oF the evel of management They are ‘managers are supposed to develop new de: ive. to find new and better ways of doi planning. Planning for change is an elemé24 been cited as a separate function keeping in mind the exe hhis company to influence the extemal environment. A manager represents a firm to various ‘elements of the society and negotiates to acquire resources and support sas See es of business. In uthori ly. Non-executives also government, consumer orgar fact, representation is a coml ‘every manager does né influence the corporate image. Moreover, 2.2: MANAGERIAL AND OPERATIVE FUNCTIONS janagerial functions should be differentiated from the operat ‘Operative functions include production marketing, financing, personne retail store. On the other hand, manag of their nature and size. Every operative function of busins ig and controll "s Each manager in charge of a functional area performs agement may be described by an analogy. If management is a human body. pl system, direction makes up the respiratory organ, and cont ‘Table 2.2 Managerial and Operat Operative Functions ‘Managerial Funetions 1. Planning 1 Pure 2 Organisi 2. Financ 3 2 P 4 4. Production 5 Marketing 2.3 MANAGERIAL FUNCTIONS AND MANAGERIAL LEV. ‘Though the managerial functions are necessary significance of different fur spent on various functions di are more significant at higher levels of managen a greater part of their likely to divide i levels of organisati ons-An Overview Top Management vig oem om [mm ioe Operating “Management Onpaising {Dieting | Contoting 2.4 BRIEF DESCRIPTION OF DIFFERENT FUNCTIONS OF MANAGEMENT Planning Planning is the most basic or primary function of management, Gepresetes other functions because a manager plans before he acts. Planning involves dete™Mining the obj selecting courses of action that will lead to the achievement of predetermined ol implies looking ahead and deciding in advance what eee istobe done, how and by whom itis to be done, It involves thinking before acti problems and developing their solution. According to Henry Fayol, Planning provides answers to the following questions: ‘What actions are necessary to achieve the desired obj Why are these act ms necessary: Se for these actions; performance. PI short term. Planning is a pervasive function and managers ata Management: Principles and Applications Planning is always goal-oriented and it involves choice among alternative courses of a Planning is also a continuous or on-going process, Planning enables us to do ti orderly and efficient manner. It is helpful in more effective achievement of goals. I ‘enables an organisation to face uncertainty and change. It coreelates the organisation with its future. Planning is a prerequisite to every effective action. vework within which people can work together ment ture serves as the fram inet of common objectives. Organising isan important organise a business is to provid oo * According to Oliver Sheldon “organi ve to perform wi ing the work which in and groups have to per for its execution that the duties so performed provide the best ha systematic, positive and coordinated application of available effo helps to avoid duplication of work and overlapping of eff isnot an end in itself. It should, therefore, be designed to particular enterprise. ‘The process of organising consists of the following steps: ; required for the achievement of organisatio 4a) determining and det 4 ing the acti PP ass af delegating authority to these p “Ge¥_ fixing responsibility for performance: and PF coordinating horizontal and vertical “Thus, organising isthe process by which thes Staffing (Gating te procs of ing persone) cstding ta Koontz and O'Donnel Fecrutmen ection, compensa compensation, promotion and maintenance of managerial personi ‘right person forthe right job, having him int lace, doing the right job at ‘The objective of staffing function isto obtain competent employees and to provide th Managerial Functions-An Overview a hich wil be most conducive ospeir pertmane. Stat ity oe Tanga. Unes te manage fills tncionofsesasats born: Imaragersis recited, clesed trained, developedandosoneted jgone ofhis ities Efficient staffing helps to avoid under-utlisation of personne as wellas shortages of personnel ‘helpful in discovering talented people and developing them to move up the corporate ladder. Every organisation is coneemed about the quality ofits manpower, especialy its lent isthe most valuable asset ofan organisation and therefore, staffing js one of the most important functions of management. Inthe absence of competent managers and operatives, an organisation isa mere skeleton tht has no life and no frutful activity. An important body of knowledge and experience has been developed in the area of staing, Stafing isan ongoing activity of manages. Hicult as it deals withthe human factor where completely objective judgement is not always possible. Staffing isthe comerstone of management because no manager ean be effect i approach tothe staffing job. Human beings ae the29 -veals bottlenecks so that suitable action may be others to a of management andi is performed by managers at interpersonal performance, ‘Supervision, com (@) Supervision ‘understand and simple to operate. It must be flexible and patter}, Besides reporting deviations promptly it must assure operating level ‘workers and re standards for measuring work performance; theory and practice. development of maans ystems approach? Give {upon this statement (Delhi 2019, CBCS) PRACTICAL EXERCISES CASE sTUDY handicrafts, Sharad is responsible Comment, (Delhi, 2012, 2017) +n behavioural Distinguish bervect base * Pinuman relations approach 8 ‘examine the Human Rel duties and decides to give some Sharad and Neha, She asks Sharad to handle production along, is assigned the resp ty saying that he is act ns Approach to management rent isthe art of mod ae he fexurs of continge 11. State the contributions rejects thou ‘snot interested in dealing with, wed to create a new line of product with jute. Sargam. dea on the grounds of additional investment required for the same. Neha on the other hand feels that she is being given additional work without any increase her [Neha takes up the additional work but does not take much interest in procurement. This has wthore Studi the systems approach to managemet efficiencies and increased costs. Sargam hites another person Dinesh 28 a 13. Explain the main features of systems approach to manage! inesh was a retired person who had spent many years in a similar line of work ly wanted to take up 14, Explain the significance and limitations of systems approach to manages In context of Fayol's Administ are being fe theory which principles of management lowed by Sargam? 2. Which Prine Explain the systems approach to management. Des es are being violated inthe above case? 3. What suggestions would you give to improve the situation of Nea, Sharad and Dinesh? 7 Explain he System approach to Managment, How sit diferent es (Delhi, 2016 CBC) 18, Compare and contrast Seine management and Adm management (Delhi, 2016 CBCS)_ Chapter Contemporary 5 Management \\ Thinkers EO CHAPTER OUTLINE siggsted MBO tem hate visor and eflers flames ‘a common goal. hy of management. It rests on the concepts of the job of (What must be achieved) rather than on work methods (What n the assumption that the conversion of broad organisational personalised objectives results in higher commitment and improved performance and enables managers to exercise self-control,) ccountabilty Management by mance Results ang This topic is further disc 5.2 FIVE FORCES ANALYSIS (MICHAEL E. PORTER) i Harvard Busi ng been professor of Strategie Management at ess Michae! E. Porter as for long been pro Sing Manger at a Ds hundred research papers. “Compe wey fe Advantage: Crea saiaig Superior Performan oy acon as books whch ea must ean anagem’ cous oF univers institutes throughout the world. Porter has been awarded honorary doctorates from several universities and is the recipient of several awards and prizes. Five Forces Analysis' . Porter has developed a model describing the forees which shape competition in an industry, This model isa follow: Petia nts Sips Fig 5.1: Forces Driving Industry Competition 1. Threats of entry: New entrants to an industry bring new capa‘ ‘market share, When barriers to entry are high and a new retaliation from thee sources of barriers to en 1. Michel, Porte, Competitive Advantage Tecnigues or Free Press, New York, 1988, mnporary Management Economies of se ‘airy by forcing the aspirant ay bf ANY A of bina, « gS dsadranage. Thee eames resources, ete, © pro + marketing, financing, human (b) Product difere a eee ie existing firm is able to overcome such loyalty entiation may act as powerful oa high suchas incon eS thing soaps and other personal car produce © S Cost disadvantages: The existing firms avilable to potential rivals irespec due to learning, proprie favourable location and soon, According ‘may have cost advantages which are not of ther size. These advantages may accrue 8s tothe best sources of raw material, learning curve, cost per unit declines as rants with no experience face higher arming ot experience curve can work as a {o create an entirely new distribution channel as Timex dg ict or even foreclose entry to an ular product exceeds through controls over control, product safety regulations, etc. power of customers: When customer group is powerful there may be rket, Powerful customers can shape product qual (c. Bargaining power of customers is high in the fallow ry has heavy fixed costs, ited and therefore buyerscan find alternativeSa mis ian industry ated than the industry i, @) sells. ‘The product is unique or differentiated. (©) Itsells products having no substitutes. (a) It poses a threat of forward integration. (e) The industry to which the group supplies is not an important customer ofthe supplier ‘group. degree of competition in that indi the growth of industry. For example, credi than travellers cheques, Light Emitting Di E-mail is quicker than a letter. one di match, “The following factors determine how strong isthe competitive pressure from substitute products: (a) The substitute product is readily available and attractively priced. (8) The buyer views/perceives the substitute product as being better in terms of quality, performance, among other rele (©) The costs of end prod Who are the major competitors and what are their current market shares? 2 Oo i) What are the main strengths and weaknesses of the competi low are their products positioned in terms of market segmen }) What are the pricing policies, di channels and promot competitors? ymer group’ vels of ate and sustain entry barriers in 5.3 LEARNING ORGANISATION (PETER SENG; ‘Thinking, learning and knowledge that ean e b wowledge. Learning is lopment of knowledge and skill, A learning, Ale the old one. Peter Senge suggests five ingredientsnemtary. they ‘distinguish be ‘Senge’s basic premise can be of thinking (mental how the company ‘organisational problems (the system archetypes). This process-mapping tool can help employees to work out how complex systems interact, and to develop t ‘mental models’ ofthe organisation. The “beer game” described in The Fifth Diseip isa simulation based .on these models. (0) Left—and right-hand columns: by writing down in The steps on the ladder are as follows: take ACTIONS based on my be! adopt 'LIEFS about the world I draw CONCLUSIONS I make ASSUMPTIONS based on the meanings added to my mental models add MEANINGS (cultural and personal) that eatameeting ened Very efetv (i a expleively thoughteanr gare StCOUABEA Lo imagine one 00d f to discus, i labs and igh; wan Probably essential, 108€ who wish to des hook provides useful references the easivenes of se influent concepts kone ts sellmanaped dev canbeone ad adn quality mosses ‘The Fifth Discipline has. proved id the debate and acceptance of ment, empowerment, and creativity. sman resource management strategie highly 54 FORTUNE AT THE BOTTOM OF THE PYRAMID (C.K. PRAHALAD) C.K. Prahalad was born in 194 he top five manag and died in 2010. He was a man of inkers ofthe world, Prahalad was a great professor, speaker research papers and books. Bottom of the Pyramid, Prahalad suggests the world’s top is, known as Bottom of the Pyramid markets, aspiring poor. BOP markets consist of four billion ic two-third ofthe world population.Four 4's of Anderson and The produ and g ICICI Bank’s microfinance. Arvind Ey markets. BOP markets offer a huge pote , prosperity both for companies and countries. Innovations in technology eae models will create millions of new entrepreneurs atthe grass loot level. People bottom of the pyramid are under served. They are low on awareness an them on a longtime basis. inan inclusive manner. AND JAMES CHAMP usiness Process Reengineering % “Recugineering the ignores what the notion of 'Band abandoning the outdated rules and fundamental the current business operations ‘means getting tothe root of things. tiv structures and procedures and inventing completely new stays work, Re-engineering is about busines envio nat business improve orenhancement. should be, inkine— identifying isregarding all ‘of accomplishing ment, modification is means companies and their employees must unlear the principles. ‘ought them success for so long. More innovative. flexible and + focused organisation structures will be required, improvements: The main purpose of BPR is to secure quantum leap in ce rather than marginal improvements. The old ways of doing business need ed by new ways due to more demanding customers, growing competition ing environment. Three types of companies undertake re-engineering. First mpanies that are in deep trouble and must re-engineer in order to su cond are companies which foresee and are ambi ion of work principle, managers focus on individual tasks order forms, is different from orga nd ge ing out of non-core areas,[are] Fig. £2: Typical BPR Efforts best in industry (Bennet: Piao i san pn Pe: resins ae 010208 = the following types of changes take place. ss Key proces a ‘When a comany’re-engineers its business processes. (@) Work units change from functional departments to process te simplified and integrated. (i) Jobs change from specialised tasks to multidim collectively responsible for process reports. Jobs become more chal People are empowered and not merely controlled. Education to improve understanding of task and training to inerease skills. Constant learning is encouraged. to results. 2) Focus of appraisal and compensation shift from a (vi) Values change from protective to productive. (vii). Managers act as coaches and mentors rather than superiors. ion structures change from hierarchical to flat Organ (é) Checks and balances are reduced. Re-engineering was the buzzword of the 90s. The concept of reengineer the idea of simplifying and reorganising business processes for greater e productivity. So popular was reengineering asa business transformation t in the 90 revealed it was adopted by almost 80% of fortune 500 compani however, criticised as it involved downsizing. The human costs of re-engineering are sat strikes harder than ever. But obs and Structures Values and Beliefs ee 4 Measurement system Fig. 53 : Business System redesigning the key business processes for improvement in quality and reduction of cost flaticning the organisation and encouraging teamwork. les and processes of business, identifying core competencies and managing environmental changes to develop ‘competitive strength with a clear focus on the goals to be achieved. TEST QUESTIONS ' Discuss MBO as described by Peter F. Drucker. Explain the concept of “Fortune at the Bottom of the Pyramid’ as propounded by C.K. (Delhi, 2006, 2007) Prahalad, Explain briefly the learning Organisation by Peter Senge. Why is Michael Hammer called the father of Business Process Re-engineering? Express 2011) his ideas on management (Deli ee eee