FMM1- Module-1 (1) PDF - Amity Fashion Marketing & Merchandising

Name of Institution Amity School of Fashion Technology (ASFT) Fashion Marketing & Merchandisng -I 1  Management : Meaning, Characteristics, Name of Institution Objectives, and Impor...

Name of Institution Amity School of Fashion Technology (ASFT) Fashion Marketing & Merchandisng -I 1  Management : Meaning, Characteristics, Name of Institution Objectives, and Importance A universal concept that is needed in every organisation whether it is a business organisation or a non-business organisation such as hospital school, etc., is known as Management. An organisation’s success depends on the successful functioning of its management and is always required whenever human and non-human resources of an organisation work together for the accomplishment of any objective. In present times, with an increase in the size and complexities of modern organisations. the concept of management has gained immense importance. The definition of Management varies with the context in which it is used. In a broader sense, Management can be defined as per Traditional Approach and Modern Approach. 2  Name of Institution Traditional Definitions of Management “Management consists of getting things done through others. A manager is one who accomplishes objectives by directing efforts of others.” – C.S. George “Management is the art of getting things done through others.” – Follett 3  Name of Institution The traditional definitions of Management were vague as they were unable to identify the functions, a manager has to perform to get things done through others. Besides, these definitions gave an impression of the manipulative practice of management and ignored the needs of workers and treated them as a means for getting results in any way. 4  Modern Definitions of Name of Institution Management “Management is the creation of an internal environment where individuals working in a group can perform effectively and efficiently for the achievement of organisational goals.” – Koontz and Donnell “Management is defined as the process of planning, organising, actuating, and controlling of an organisation’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.”– Trewelly and Newport 5  Name of Institution “Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.”– Kreitner 6  Modern Concept of Name of Institution Management Management is a process through which an organisation designs and maintains an environment in which individuals work together with the motive of achieving organisational goals effectively and efficiently. The three essential elements that come under the modern concept of Management are as follows: 7  Name of Institution 1. Management is a ‘Process’: Management involves a series of int-related functions like planning, organising, staffing, directing, and controlling, which makes it a process. Every manager performs these functions to achieve goals. 2. Management requires Effective Performance: Effectiveness in Management means achieving goals on time. In simple terms, it aims at end result. For example, if an organisation achieves its sales target within time, it is said to be effective. 8  Name of Institution 3. Management needs Efficiency: Efficiency in Management means doing tasks correctly and with minimum cost. It is not enough to just complete the task on time, it should be accurate also. Besides, management also aims at using its resources efficiently as it reduces the cost of the firm ultimately resulting in higher profits. 9  Name of Institution Characteristics of Management 10  1. Continuous Process: Management is a continuous Name of Institution process. It means that the process of business management goes on until the company exists, as it helps in achieving the organisational goals. Every manager of an organisation has to perform the different functions of management in a series planning, organising, staffing, directing, and controlling. 2. Goal-oriented: Every organisation has a set of predetermined goals or objectives that it aims to accomplish during its existence. Every organisation has different goals. Hence, management helps these organisations in fulfilling their goals by utilising the given limited resources in the best optimum manner. For example, If the objective of Airtel is to add a billion Airtel Xtreme customers in a year, then all of its managerial activities will be directed toward the achievement of this objective. 11  Name of Institution 3. All Pervasive: The process of business management is universal in nature. Every organisation, whether small scale, large scale, economic, social, etc., uses the process of management at every level or stage. Besides, the activities involved in the management of an organisation are common for all whether it is a social, political, or economic enterprise. 4. Multidimensional: Management is a multidimensional process as it does not involve only one activity. The three main activities involved in management are Management of Work, Management of People, and Management of Operations. 12  Name of Institution Management of Work: Every organisation is set up to perform some work or goal, and the management aims at achieving these goals or tasks. The work of an organisation depends upon the nature of Business; for example, work to be fulfilled in a hospital is treating patients, in a university is educating students, etc. Management of People: People are the most essential assets of an organisation and refer to human resources. It is the duty of the management to get the work completed through human resources/people by making their strengths effective and weaknesses irrelevant. Managing people have two dimensions; viz., Taking care of a group of people and Taking care of employees’ individual needs. 13  Name of Institution Management of Operations: Operations are the activities of an organisation’s production cycle, like purchasing inputs, converting them into semi-finished goods, and finished goods. Simply put, Management of operations consists of a mix of Management of Work and Management of People, and decides what work has to be done, how it has to be done, and who will do it. 5. Dynamic Function: There are different internal and external factors that affect the working of an organisation. An organisation has to change and adapt itself on the basis of changing environment to accomplish the organisational goals and objectives. Hence, management is a dynamic function. 14  Name of Institution 6. Management is a Group Activity: Management involves a group of people performing managerial activities. The functions of management can be executed only when every individual performs his/her role their respective status and department. And as the result of management affects every individual and every department of an organisation, it always refers to a group effort. 7. Management is an Intangible Force: Management is a function that cannot be physically seen but its presence can be felt by watching the orderliness and coordination in work environment and happy faces of the employees when the task is completed. 15  Name of Institution Objectives of Management 1. Social Objectives: These refer to the objectives which are desired to be achieved for the benefit of society. Every organisation has a social responsibility to fulfill during its existence. Some of the social obligations of an organisation include implementing environment friendly practices in the production process, providing basic amenities to employees such as healthcare, education, etc., and providing the unprivileged sections of society with employment opportunities. 16  Name of Institution 2. Organisational Objectives: With the help of management, every organisation sets and achieves organisational goals. The three major organisational objectives are survival, profit, and growth. Survival: One of the basic objectives of every organisation is survival. It does so by making positive decisions for the organisation with the help of the business management process. Profit: Survival is not enough for an organisation; it has to earn profits to grow and expand in the future. Hence, every organisation has to ensure its profit so that it can cover its costs and risks. Growth: Besides earning a profit, an organisation has to grow in order to remain in the industry. For this purpose, the management of an organisation has to exploit its resources effectively and efficiently. 17  Name of Institution 3. Personal or Individual Objectives: As discussed earlier, people are the main asset of an organisation having different goals, backgrounds and personalities. It is the duty of the managers to ensure that the personnel objectives are aligned with the organisational objectives. Individual or Personal Objectives of an organisation consist of satisfying needs like Social Needs, Financial Needs, Good and Healthy Working Conditions, and Higher Level Needs. 18  Name of Institution Importance of Management 1. Increases Efficiency: The management process of an organisation increases its efficiency by reducing cost and increasing productivity by utilisation of the available resources in the best possible and optimum way. 2. Helps in Achieving Group Goals: Effective management process creates teamwork and builds coordination among the members of an organisation. The managers provide a common path or direction to their employees for the accomplishment of the overall objectives of the organisation. 19  Name of Institution 3. Creates a Dynamic Organisation: Every organisation works in a changing environment. The managers of an organisation have to help their members adapt to the changing environment, which ultimately helps them ensure the survival and growth of the organisation. Besides, the management convinces the employees that the changes brought in the organisation will benefit their future prospects. 4. Development of Society: Every organisation has various objectives toward different groups of society. Along with the development of the organisation, its management has to develop the society too. To do so, the management helps the organisation produce good quality products, adopt new technologies, and provide employment opportunities to the weaker sections of society. 20  Name of Institution 5. Helps in Achieving Personal Objectives: Every individual or employee of an organisation has different objectives or goals they wish to accomplish while doing their jobs. Management helps these employees in fulfilling their personal objectives along with the organisational objectives. 21  Name of Institution Henri Fayol's 14 Principles of Management Henry Fayol, also known as the Father of Modern Management Theory, gave a new perception on the concept of management. He introduced a general theory that can be applied to all levels of management and every department. He envisioned maximising managerial efficiency. Today, Fayol’s theory is practised by the management to organise and regulate the internal activities of an organisation. 22  Name of Institution The fourteen principles of management created by Henri Fayol are explained below. 1. Division of Work Henri believed that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level. 23  Name of Institution 2. Authority and Responsibility These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership. 3. Discipline Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees’ good behaviour also helps them smoothly build and progress in their professional careers. 24  Name of Institution 4. Unity of Command This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion. 5. Unity of Direction Whoever is engaged in the same activity should have a unified goal. This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. 25  Name of Institution 6. Subordination of Individual Interest This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organisation. This refers to the whole chain of command in a company. 7. Remuneration This plays an important role in motivating the workers of a company. Remuneration can be monetary or non- monetary. Ideally, it should be according to an individual’s efforts they have put forth. 26  Name of Institution 8. Centralization In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power. 9. Scalar Chain Fayol, on this principle, highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed. 27  Name of Institution 10. Order A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity. 11. Equity All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. 28  Name of Institution 12. Stability An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees. 13. Initiative The management should support and encourage the employees to take initiatives in an organisation. It will help them to increase their motivation and morale. 29  Name of Institution 14. Esprit de Corps It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment. In conclusion, the 14 Principles of Management the pillars of any organisation. They are integral for prediction, planning, decision-making, process management, control and coordination. 30