ITB Module 1 PDF

Introduction to Business Module 1 Management A set of functions directed at the efficient and effective utilization of resources in the pursuit of organizational goals. Management is the process of designing and maintaining an environment in which individuals working together in groups,...

Introduction to Business Module 1 Management A set of functions directed at the efficient and effective utilization of resources in the pursuit of organizational goals. Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. What are the functions managers carry out? Is management relevant to all types of organizations? Enterprise – Enterprise refers to a business, government agency, hospital, university and any other type of organization. Nature and Purpose of Business Nature – – An economic activity – Involves the production / procurement of goods and services – Sale or exchange of goods and services – Dealings in goods and services on a regular basis – Profit earning – Element of risk Contd. Purpose – – To meet the objectives (goals established to guide the efforts of the company and each of its components). Objectives are the ends towards which the activities of an organization are directed and the standards against which the performance is assessed. – Organizations will not survive if they emphasize only on profit objective – Market standing – Innovation – Productivity – Manager performance and development – Worker performance and attitude – Social responsibility Business Structure Sole proprietorship Joint Hindu Family Business Partnerships Cooperative societies Joint Stock Company  Sole Proprietorship A business owned, managed and controlled by a single individual is known as a sole proprietorship organization. Joint Hindu Family Business The business carried out by the male members of a Hindu undivided family is known as Joint Hindu Family Business. Partnership is an association of two or more persons who have agreed to share the profits of the business carried on by all or any of them acting for all. Co-operative Society A co-operative form of business enterprise. In this form the main motive is not earning profit but the main motive of co-operative organisation is mutual help. Definition by Prof Honey. “Joint Stock Company is a voluntary association of individual for profit, having a capital divided into transferable shares, the ownership of which is the condition of membership”. Business and the Environment Environment of Business – the forces (economic, social, political, technological) and institutions (suppliers, consumers, competitors) outside the firm with which its members must deal to achieve the organization’s purpose. – Economic Environment – Non economic environment Constraints and opportunities are present Lets see how much you have understood!!!! Identify the business environment of SAINTGITS Institute of Management v Evolution of Management Thought  Evolution of Management Thought Frederick Taylor and Scientific Management – Taylor is considered the ‘Father of Scientific Management’ – Credited with the early development of management – Published ‘Principles of Scientific Management’ in 1911 – Replacing rule of thumb with science – Obtaining harmony in group action – Working for maximum output rather than restricted output – Piece rate incentive system – Time study Frank & Lillian Gilbreth Elimination of unwanted motion  Henry Laurence Gantt Gantt chart and Incentive system Bonus is paid at a fixed rate to those workers only who attain or exceed the 100 per cent efficiency  Bureaucratic – Max Weber – Function on a rational basis – Highly structured, formalized and impersonal organization – Set of rules and regulations – Work specialization, division of labour, impersonality of managers, hierarchy of organization structure  Henri Fayol – French industrialist – Business operations can be divided into 6 activities – Technical – Commercial – Financial – Security – Accounting – Managerial – 14 principles of management  Behavioural School of Thought – Mary Parker Follet : Power sharing – Elton Mayo : Hawthorne Experiment – Abraham Maslow : Maslow’s need hierarchy – Douglas McGregor : Theory X and Y – Chris Argyris : Employees set of values (maturity – immaturity theory)  Elton Mayo, F. J. Roethlisberger – The Hawthorne Studies conducted at the Hawthorne Plant of the Western Electric Company, Cicero, Illinois – Conducted between 1927 and 1932 – To determine the effect of illumination and other conditions on workers and their productivity – Factors like illumination, rest periods, shortening workdays, varying incentive pay systems did not affect productivity – Social factors – morale, positive relationships between workers, motivation, counselling – improved productivity Maslow’s hierarchy of Needs Modern Approaches of Management  Recent Contributors to Management Thought – Peter F. Drucker – W. Edwards Deming – Joseph M. Juran – Laurence Peter – William Ouchi – Thomas Peters and Robert Waterman Functions of Management/Managers The functions of management / managers are the same regardless of the type of organization. Planning – The first function – Before accomplishing anything of a long term nature, it is important to determine in advance what is to be done. Organizing – Once plans are in place, the next is to establish an organisation structure. Staffing – The manager seeks people to staff the organization.  Directing / Leading – Directing the efforts of the organization – Influencing people so that they will contribute to organizational and group goals Controlling – Whether the activities of the enterprise are moving ahead as planned – Eg. Budget Coordination – Synchronisation of efforts and sequence of execution – Development of unity of purpose – Implementation of plans for achievement of desired results – The force that binds all other functions of management  Three Management Perspectives International – Requires an understanding of the social, political, legal and environmental forces – Managers should develop knowledge, attitude and skills necessary for international environment – Need to understand forces in developed, developing and emerging countries Innovation – Driver for succeeding in today’s competitive environment – Creating more effective and efficient processes, products and services Leadership – Art or process of influencing people – Striving for the achievement of group goals  Top Management – Responsible persons for systematic conduct of the enterprise along the right lines in order to achieve the organization’s objectives. – Determining the objectives of the enterprise, framing of policies, organizing activities to be performed, assembling the required resources, controlling and monitoring the planned performance. Middle Management – Concerned with the task of implementing the policies and plans chalked out by the top management – Departmental heads and other executives Supervisory or Operational Management – Foremen, supervisors and sub-departmental executives – Carry out the actual operations as per schedule – Authority and responsibility is limited Management Skills What types of skills do managers need? According to Robert L. Katz, managers need 3 skills: – Technical skills – Job specific knowledge and techniques needed to proficiently perform work tasks – Conceptual skills – Ability to think and conceptualize about abstract and complex situations – Human skills – ability to work well with other people individually and in a group Planning Involves defining the organization’s goals, establishing strategies for achieving those goals, and developing plans to integrate and co-ordinate work activities. Concerned with “what” and ”how” Process of charting out the path for attaining the overall purpose of a business undertaking. It involves anticipating consequences of a decision and predicting events that may have effects on a business. Deciding in the present what to do in the future. Why do managers plan? Planning provides direction to managers Planning reduced uncertainty Planning minimizes waste and redundancy Planning establishes the goals or standards used in controlling. Nature Types Types of Plans  Identify major premises that in your judgment, Federal Bank would need in order to plan for its growth for the next 2 years. Create a short term plan for Federal Bank in order to increase their reach across the country Strategy Plans for how an organization will do what it’s in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals. Strategic management – what managers do to develop an organization’s strategy – Make a difference in how well an organization performs – Managers in any industry continuously face changes – Organizations are complex and diverse SWOT ANALYSIS TOWS –4 strategic alternatives  Nike, Inc. is a multinational corporation that was established in 1964 The firm specializes in designing, developing, and manufacturing apparel, footwear, and accessory products Currently, Nike, Inc. is renowned as the largest manufacturer and supplier of athletic shoes and sports equipment in the world. The firm distributes its products through independent distributors, retail accounts, and company-owned retail stores. The firm has also adopted the concept of online marketing.  Mission – Nike, Inc. intends to provide athletes around the world with innovative and inspiring products. Business Objectives – Nike, Inc. focuses on maximizing its shareholders’ wealth Products – Basketball, Football, Men’s training, Women’s training, Running, Action Sports, Nike Sportswear – Diversified further  SWOT Analysis – Strengths – Market recognition, Cost Management, Competitiveness, R&D, CSR – Weaknesses – Labor practices, Working environment – Opportunities – Product development, Internationalization, Marketing, Technology – Threats – Competition, Change in consumer tastes, Economic changes  Key strategies – Geographical market expansion – Leveraging on emerging technologies – Product Quality Strategy Implementation – Market expansion – Product differentiation – E – Commerce Measurement and Control – Continuously evaluate its annual sales revenue – Conducting geographical assessment – Evaluate the size of its customer base and market share https://ivypanda.com/essays/strategic-plan-nike-incorporation/ Thank You