Principles Of Business Management PDF

PRINCIPLES OF BUSINESS MANAGEMENT Dr. Madhukumar K , Ph.D. Faculty of Law PRINCIPLES OF BUSINESS MANAGEMENT Unit -1 Introduction to Management Dr. Madhukumar.K Faculty of Law.  PRINCIPLES OF BUSINESS MANAGEMENT Cha...

PRINCIPLES OF BUSINESS MANAGEMENT Dr. Madhukumar K , Ph.D. Faculty of Law PRINCIPLES OF BUSINESS MANAGEMENT Unit -1 Introduction to Management Dr. Madhukumar.K Faculty of Law.  PRINCIPLES OF BUSINESS MANAGEMENT Chapter Overview 1.1 Introduction to Management ❖ Meaning & Definition ❖ Features/ Nature / Characteristics of Management. ❖ Management – Art, Science & Profession. ❖ Scope / Importance of Management ❖ Manager ❖ Levels of Management/ Managers. ❖ Role & Skills of Managers 1.2 Evolution of Management Thought  PRINCIPLES OF BUSINESS MANAGEMENT Class Agenda # 1 Learning Objective ✓ To understand the meaning & definition of term management.  PRINCIPLES OF BUSINESS MANAGEMENT Introduction MANAGEMENT CONCEPTS AND FUNDAMENTALS  PRINCIPLES OF BUSINESS MANAGEMENT Management Key Concepts Organizations: People working together and coordinating their actions to achieve specific goals. Goal: A desired future condition that the organization seeks to achieve. Management: The process of using organizational resources to achieve the organization’s goals.  PRINCIPLES OF BUSINESS MANAGEMENT Management Key Concepts Resources are organizational assets and include: Man, Machinery, Materials, Money Managers - to meet its goals. “Managers use resources effectively and efficiently to satisfy customers and to achieve goals”.  PRINCIPLES OF BUSINESS MANAGEMENT Management Key Concepts Managers are the indispensable resources, the priceless assets of an organisation. “Unbeatable Corporates Heroes”. “Prized possessions of a country”.  PRINCIPLES OF BUSINESS MANAGEMENT Managerial Levels – Vertical Dimension Top-management: e.g. Board of Directors, CEO, President, Vice President Middle-management: e.g. branch manager, department head First-line management: e.g. supervisor, team leader  PRINCIPLES OF BUSINESS MANAGEMENT Meaning of Management “Management is the process of reaching organizational goals by working with and through people and other organizational resources”. Management has the following 3 characteristics: 1. It is a process or series of continuing and related activities. 2. It involves and concentrates on reaching organizational goals. 3. It reaches these goals by working with and through people and other organizational resources.  PRINCIPLES OF BUSINESS MANAGEMENT Management Term MANAGE MANAGE + ME MANAGE + MEN MANAGE+ MENT= MANAGEMENT  PRINCIPLES OF BUSINESS MANAGEMENT Meaning of Management According to Theo Heimann, management has three different meanings, viz., Management as a Noun : refers to a Group of Managers. ( resources, a system of authority or a class or elite) Management as a Process : refers to the Functions of Management i.e. Planning, Organising, Directing, Controlling, etc. Management as a Discipline : refers to the Subject of Management.  PRINCIPLES OF BUSINESS MANAGEMENT Definition According to Mary Parker Follet, "Management is the art of getting things done through people." According to Harold Koontz, "Management is the art of getting things done through and with people in formally organised groups." According to Henri Fayol, "To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control."  PRINCIPLES OF BUSINESS MANAGEMENT Definition - Management The process of achieving company goals effectively and efficiently by engaging in the four major functions of planning, organizing, leading, and controlling of company’s resources. Planning Resources include: Human resources e.g. employees Financial resources e.g. bank loan or Controlling Organizing investment from shareholders Physical resources e.g. machinery, inventory Information resources e.g. knowledge Leading  PRINCIPLES OF BUSINESS MANAGEMENT Introduction Every company has its company goals. E.g. The basic goal of Walt Disney is to promote the happiness and well-being of kids and families by inspiring them to join the company’s activities in creating a brighter tomorrow. (sources: http://thewaltdisneycompany.com/citizenship) Other examples of company goals include: Maintain growth of 10% net profit for each year. Provide reliable products to customers. Establish favorable image with public Manager therefore makes use of a company’s resources to efficiently and effectively achieve the company goals.  PRINCIPLES OF BUSINESS MANAGEMENT Implications Management is thus a continuous effort aimed at shaping an organization and contributing to its overall growth. The functions of managers include planning, organizing, staffing, leading and controlling. These functions are essential to any kind of organization. It applies to managers at all hierarchical levels. The aim of managers is to increase productivity, effectiveness and efficiency.  PRINCIPLES OF BUSINESS MANAGEMENT Class Agenda # 2 Learning Objective ✓ To understand the Features & Importance of management.  PRINCIPLES OF BUSINESS MANAGEMENT Features of Management Features of Management  PRINCIPLES OF BUSINESS MANAGEMENT Features of Management Features of Management Getting things Levels of Goal- Group Systematic Social Universal done Managem Oriented Activity Process Process Intangible through ent Activity people  PRINCIPLES OF BUSINESS MANAGEMENT Features of Management Features of Management Inter- Management Good Economic Science and disciplinary Dynamic need not be Leadership Activity Profession Art approach owners  PRINCIPLES OF BUSINESS MANAGEMENT Management: Science or Art? Science is a collection of systematic knowledge, collection of truths and inferences after continuous study and experiments. It has fundamental principles discovered. Art uses the known rules and principles and uses the skill, expertise, wisdom, experience to achieve the desired result. Management has got two faces like a coin; on one side it is art and on the other it is science. Management has got scientific principles which constitute the elements of Science and Skills and talent which are attributes of Art. Management is both art and science.  PRINCIPLES OF BUSINESS MANAGEMENT Functions of Management Functions of Management Planning Controlling Management Organizing Leading  PRINCIPLES OF BUSINESS MANAGEMENT Four Key Management Functions Planning The process of setting goals, and determining the appropriate action to achieve the goals of the company. Organizing The process of allocating and arranging both human and other resources through a formal structure of tasks and authority so that plans can be carried out successfully. Leading The process of guiding and motivating employees to accomplish company’s goals. Controlling The process of regulating company’s activities so that actual performance conforms to the goals and standards set at the planning stage.  PRINCIPLES OF BUSINESS MANAGEMENT Importance of Management Scope / Importance of Management  PRINCIPLES OF BUSINESS MANAGEMENT Importance of Management Achieving Goals Optimum utilisation of Importance of Resources management Reduces Costs Establishes Sound Organisation Effective Leadership & Motivation Prosperity of Society  PRINCIPLES OF BUSINESS MANAGEMENT Class Agenda # 4 Learning Objective ✓ To identify the managers & Levels of management.  PRINCIPLES OF BUSINESS MANAGEMENT Managers Who Are Managers? Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals.  PRINCIPLES OF BUSINESS MANAGEMENT Managers What Managers Do? Managers (or administrators) Individuals who achieve goals through other people. Managerial Activities Make decisions Allocate resources Direct activities of others to attain goals  PRINCIPLES OF BUSINESS MANAGEMENT Managers Where Managers Work? Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.  PRINCIPLES OF BUSINESS MANAGEMENT Managers Managers A Manager is responsible for planning and directing the work of group of individuals, monitoring their performance and taking corrective action when necessary for the accomplishment of organizational goals and objectives  PRINCIPLES OF BUSINESS MANAGEMENT Managers Managers A manager’s title reflects what he/she is responsible for. 1. An Accounting Manager supervises the Accounting function. 2. The Production Manager developed a staffing plan for the factory. 3. The Manager of Design Engineering supervises engineers and support staff engaged in design of a product or service.  PRINCIPLES OF BUSINESS MANAGEMENT Managerial Levels Managerial Levels Top Managers Middle Managers First-Line Managers Nonmanagerial Employees  PRINCIPLES OF BUSINESS MANAGEMENT Managers Types of Managers First-line Managers Are at the lowest level of management and manage the work of non-managerial employees Middle Managers Manage the work of first-line managers Top Managers Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization  PRINCIPLES OF BUSINESS MANAGEMENT Types of Managers Top-Level Management Also known as senior management or executive management, this level comprises the highest-ranking executives in the organization. Top-level managers typically include roles like Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), and other C-suite executives. Responsibilities: Formulating the organization's mission, vision, and long-term objectives. Developing and implementing strategic plans and policies. Allocating resources and making major financial decisions. Establishing relationships with stakeholders and representing the organization to external parties. Overseeing the performance of the organization as a whole.  PRINCIPLES OF BUSINESS MANAGEMENT Types of Managers Middle-Level Management Middle-level managers bridge the gap between top-level management and lower-level employees. Responsibilities: Implementing the strategies and policies set by top management. Creating departmental or divisional goals and plans. Assigning tasks and responsibilities to lower-level employees. Monitoring and evaluating performance within their units. Serving as a communication link between top management and front-line employees.  PRINCIPLES OF BUSINESS MANAGEMENT Types of Managers First-Level Management: Also known as supervisors, lower-level managers. Responsibilities: Oversee employees' day-to-day operations and activities directly involved in producing goods or delivering services They are responsible for ensuring that tasks are carried out efficiently and effectively to achieve departmental goals. Assigning specific tasks and work schedules to employees. Providing training, guidance, and supervision to ensure tasks are completed accurately and on time. Addressing employee concerns and resolving conflicts. Reporting progress and challenges to middle-level management. Maintaining a productive and motivated workforce.  PRINCIPLES OF BUSINESS MANAGEMENT Class Agenda # 6 Learning Objective To understand the functions of Managers Four Key Manager’s Functions Planning The process of setting goals, and determining the appropriate action to achieve the goals of the company. Organizing Planning The process of allocating and arranging both human and other resources through a formal structure of tasks and authority so that plans can be carried out successfully. Controlling Management Organizing Leading The process of guiding and motivating employees to accomplish company’s goals. Leading Controlling The process of regulating company’s activities so that actual performance conforms to the goals and standards set at the planning stage. 2  PRINCIPLES OF BUSINESS MANAGEMENT Class Agenda # 7 Learning Objective ✓ To identify the roles performed by managers  PRINCIPLES OF BUSINESS MANAGEMENT Henry Mintzberg’s Roles of Managers Henry Mintzberg was one of the first and most enduring writers to describe the role of the manager. He observed what managers did during the day by shadowing them. He grouped the roles into three categories: interpersonal roles, informational roles, and decisional roles  PRINCIPLES OF BUSINESS MANAGEMENT Role of Managers  PRINCIPLES OF BUSINESS MANAGEMENT Role of Managers Mintzberg’s Managerial Roles  PRINCIPLES OF BUSINESS MANAGEMENT Role of Managers Mintzberg’s Managerial Roles (cont’d)  PRINCIPLES OF BUSINESS MANAGEMENT Role of Managers Mintzberg’s Managerial Roles (cont’d)  PRINCIPLES OF BUSINESS MANAGEMENT Role of Managers  PRINCIPLES OF BUSINESS MANAGEMENT Skills of Managers Skills Approach  PRINCIPLES OF BUSINESS MANAGEMENT Skills of Managers Robert Kartz Skills Approach Technical skills Human / Interpersonal skills Conceptual skills  PRINCIPLES OF BUSINESS MANAGEMENT Skills of Managers Skills Approach  PRINCIPLES OF BUSINESS MANAGEMENT Skills of Managers Management Skills Technical skills The ability to apply specialized knowledge or expertise. Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations.  PRINCIPLES OF BUSINESS MANAGEMENT Skills of Managers THANK YOU Madhukumar.K Faculty of Law [email protected] +91 80 2672 9559 Extn: 377