Plant &

Machinery

?
Marketing
Strategy
All of
them
 But the most
important are

Employees of the Management of the

organization company
 People performs lot of activities

Finance Production

Handling finance Look after production and quality

Marketing

Looking after the sales and advertisement

 Management ??

Management integrates
the efforts of these
individual to achieve a
common goals.
 With the Aim of

Market leadership Increasing Profits

Introduction of new products Maxizing Sales

Increases customer base

Narayan murthi
Indra Noyee

MANGERS

Sunil Mittal Ratan Tata

Meaning Of Management
Defined as a process of getting things
done with the

aim of achieving goals

Effectively

And

Efficiently
Process
Means the activities that management
performs to get things done are

Planning

Controlling Organising

Directing Staffing,
 Deciding in advance what is to be
Planning done in future.

Organizing the human resources, in

Organising the best possible manner.

Staffing, Positioning right people right jobs at

right time.

Communicate and coordinate with

Directing people to work effectively together

Controlling Evaluating the progress against the

plans and making corrections.
Effectiveness

Concerned with doing the right task and

achieving goals.

Doing the right things

Efficiency

Means doing the task correctly and with

minimum cost , materials, Equipment and
persons required.

Doing things rightly

Effectiveness

• Finishing the given task.

• Effectiveness in management is concerned with

doing the right task, completing activities and
achieving goals.

In other words, it is concerned with the end

result.
Efficiency

• Means doing the task correctly and with minimum

cost.

• If by using less input resources (money, materials,

equipment and persons) more benefits are derived
(i.e., the outputs) then efficiency has increased.

• Efficiency is also increased when for the same

benefit or outputs with fewer resources are used and
less cost are incurred.
Effective but not efficient Suppose, a
company’s target production is 5000 units in a year.
To achieve this target the manager has to operate
on double shifts due to power failure most of the
time. The manager is able to produce 5000 units but
at a higher production cost. In this case the manager
was effective but not so efficient, since for the same
output more inputs (labor cost, electricity costs)
were used
Efficient but not effective: - business may
concentrate more on producing goods with
fewer resources i.e., cutting down cost but
not achieving the target production. Due to
which the goods do not reach the market and
hence the demand for them declines and
competitors enter the market this is a case of
being efficient but not effective since the
goods did not reach the market
Case Study
Your this month
sales target is
Rs 2 Cr

Yes boss
 Great
I have made the
sales

but
in 35 days
 HEY MONA
YOU ARE effective but not
efficient
 Difference
Basis Effective efficient
Emphasis Doings right Doing things rightly
things

Direction Goal achievement Input-output related

Focus Doing the work Doing the work with

correctly minimum cost
PROBLEM

Hero ltd target is to produce 10000 shirts per month

at a cost of Rs 150 per shirt. The production manager
could achieve this target at a cost of Rs 160 per shirt.
Do you think the production manager is effective? Give
one reason in support of your answer

Solution
Yes he is an effective manager as he has achieved the
target
 Level Of Management

Every individual in the hierarchy is

responsible for successful completion
of a particular task.

Authority-responsibility relationship
binds individuals as superiors and
subordinates

Gives rise to different levels in an

organisation
Level Of Management

Top Management

Middle Management

Operational Management
 Top Level Management Consists Of

President Chairman

Chief Operating Officer

 Function of Top Level Management

Complex and stressful, demanding long hours and

commitment to the organisation

Analyze the business environment and its

implications for the survival of the firm.

Responsible for the welfare and survival of the

organization

Decide long term goals of the organization and

strategies for their achievement.
 Middle Level Management Consists Of

Production Heads

Production Heads Financial Heads

 Function Of Middle Level Management

Making manpower planning to see that their

department has the necessary personnel,

Assign necessary duties and responsibilities to them,

Co-operate with other departments for smooth

functioning of the organisation.

Responsible for all the activities of first line

managers

Responsible for all the activities of first line

managers
 Operational Management Consists Of

Superintended

Section Officers Supervisors

 Function of operational management

Solving workers’ problems and complaints, ensuring

proper working environment and safety of workers,
inviting

Link between workers and middle level managers,

creating better human relations with workers.

Instructions of the middle management to the workers

are passed

Maintain Quality of output , wastage of materials is

minimized and safety standards are maintained
 Question to be discuss in the class

1. What is meant by ‘Doing things Right’ in management?

2. What is the meaning of ‘Doing the Right Things’ in
management?

1. Mr. pawan is working at the post of Sales Manager in

Suman Ltd. Last year, the targeted sales increased to
20,00 units from earlier target of 18,00 units. This he
achieved very easily. To achieve this, he increased the
expenditure on advertisement to almost double.
1. Did sales manager perform his duty efficiently and
effectively?
2. If not, then how?
 Management
As A

Art Science Profession

Management Is
Art Or Not
Managers Vs Artist
Art
Skillful and personal application of existing
knowledge

To achieve desired results

 Features of Art

P
Personalized Application of Personal knowledge

E
Existence of theoretical knowledge

P
Practice and Creativity
Application of Personal Skill
Each artist has his own style and
approach towards his job

For example:-

Two dancers, two actors will always

differ in representing their art

Marketer Perfectionist
Practical Knowledge
To become a good singer,

The person may not only be knowing

different ragas , instruments

But

Different pitch, variety to use them

appropriately.
Existence of theoretical knowledge
Literature on dance or music is widely
recognized and can be learned
Practice and Creativity
Every artist has an component of
creativity which requires

• Intelligence,
• Imagination and
• Constant practice

Most versatile singer

 Let Us See

Whether

Management is Art or not

Application of Personal Skill
Two managers use theoretical knowledge of management
in totally different ways, like two singers or two painters.
Like in any art, in management too, a manager applies
his acquired knowledge in a personalized and unique
manner.
Students of management also apply these principles
differently depending on how creative they are after long
practice

Yes
Practice and Creativity
Based on continuous practice and Creativity.
Like any other art, a manager after studying various
situations, formulates his own theories for use in a given
situation.

This gives rise to different styles of management

Management satisfies these criteria as a manager gains

experience through regular practice and becomes more
effective

Yes
Existence of theoretical knowledge
For example, literature on dancing, public
speaking, acting or music is widely recognized

As in art, in management too, there is a lot of

literature available in various areas of
management which the manager has to
specialize in like marketing, HRM etc

Yes
Conclusion
All the features of art are present in
management.

Therefore management is an art of getting the

thinks done by others
Management Is
Science Or Not
Science
Systematized body of knowledge

that explains certain general truths or the

operation of general laws

 Features of science

B
Based On Experimentation

U
Universal Applicability

S
Systematized Body Of Knowledge
Based on experimentation
Developed through observation and then
tested through repeated experimentation.

Example:-
Warer boiled at 100’ converts into
vapours.
Universal Validity
Applicability of scientific results shows
same result under given condition

Example:-
H2 + O2 = HO2
Systematized body of knowledge
Principles are based on a Cause And
Effect relationship.

For example:-
When metals are heated, they are
expanded
 Let Us See

Whether

Management is science or not

Based on experiment and observation

Like science, management principles are derived

through observation and repeated experimentation.

However since management deals with human whose

behavior is difficult to understand and are not
capable of being accurately predicted.

Therefore, management can be called an inexact

science or a social science

NO
No Universal Applicability
Principles of management like principles of science
provide managers with certain standardized techniques
that can be used in different situations.

However, since the principles of management have to be

modified according to a given situation, their
application and use is not universal.

So, this feature of science is not fully present in

management

NO
Systematized body of knowledge
Like science, management is a systematic body of
knowledge with its own theories and principles that have
developed over a period of time.

So, this feature of science is present in management.

Yes
 Conclusion

Inexact science / Social science

Not as exact as that of sciences as

it deals with human beings which keep
on changing and it is very difficult to
predict their behavior accurately

Soft Science /Flexible science

Its theories and principles may

produce different results at different
times and therefore it is a behavior
science.
 Management Is
Profession Or Not
Profession
• Profession includes those activities, which require
special knowledge and skill to be applied by
individuals. Example

Layers Doctor
 Features of Profession

S
Service motive

W
Well-defined body of knowledge

E
Ethical code of conduct

A
Association of Professional

R
Restricted entry
Service Motive
The basic motive is to

serve their
client’s interests and society

by giving better services

Well-defined body of knowledge
All professions are based on a

Well-defined Body Of Knowledge

that can be acquired through instruction.

Ethical code of conduct
All professions are

Bound By A Code Of Conduct

which guides the behavior of its members.

Example:-
Bar council of India for lawyers
IIMA for doctors
ICAI:- for chartered accountant
Association of Professional
All professions are requires

affiliation from a professional association

which award certificate of practice

and impose a code of conduct

Restricted Entry
The entry to a profession

is restricted through

acquiring an educational degree

 Let Us See

Whether

Management is Profession or not

Management not considered a full fledged
profession like law or medicine?
Well-defined body of knowledge
All professions are based on a

Well-defined Body Of Knowledge

that can be acquired through instruction.

Not obligatory for registration
Registration or membership

is not compulsory

to practice management.
Not subject to any formal code of conduct
A code of conduct

by a management association cannot

have an

effect beyond an advisory status

No prescribed educational qualifications
Anyone Can Be

Called A Manager

Irrespective Of The

Educational Qualifications Possessed.

Profit motive
The basic purpose of management

is to help the organisation achieve profit

not social welfare

Is management becoming a
profession?
 Yes, management is becoming a
profession. This can be seen emerging
trends in business:

All big companies appoint

professional managers at all
levels.

Many Indian companies take

initiative to replace family
members by professional
mangers
 Nature of Management

Multidimensional

Continuous process

Group activity

Dynamic function

Goal-oriented process

Intangible force

All pervasive
 Multidimensional
Management of work
Translates the work(purchase ,sales, finance)
in terms of goals and provides the guidance
to achieve it.

Management of people
Motivates people work towards achieving the
organization’s goals.

Management of operations

Provides process which involves conversion

of Input Into Output.
Continuous process
Series of continuous but separate functions
(planning, organizing, directing, staffing and
controlling ) which are together performed by
all managers all the time

Planning

Controlling Organising

Directing Staffing,
Group activity
In organisation different individuals have
different needs. like

Higher salary, promotion , learning

Common goal can met through team work

and coordination
Dynamic Function
Management is a dynamic function and has to
adapt itself to the changing environment

consists of various social, economic and political

factors

MCDONALDS TIKKI chat in indian context

Goal-oriented Process
Different organization have different goals’

Efforts of different individuals in the

organisation are directed towards achieving
these goals

School to Mobile company to

provide quality increase the
education, customer base
Intangible Force
Cannot be seen

But its presence can be felt when organization

achieve goals, targets are met

According to plans and employees are happy and

satisfied
• Search Engine Giant 32,467
Full-time Employees,.
• Highest Earners With A
Reported Salary Of $141, 00
• Receives Over One Million
Resume
All Pervasive
The activities involved in managing an enterprise are
common to all organizations whether

• Economic(Tata motors, Hdfc)

• Social (Red Cross, NGO’S)
• Political.(Govt in different country)

Applicability is
difference is due to
the differences in
culture, tradition and
history
 Objectives of Management

Social objectives

Personal Organizational
objectives Objectives
 Organizational Objectives

Survival
To survive, an organisation must earn
enough revenues to cover costs, by
reducing wastage

Profit
Essential incentive for the successful
operation of the enterprise and the
reward for bearing the risks.

Growth
Increasing sales volume, increase in the
number of employees, the number of
products or the increase in capital etc.
 Social objectives

Giving Employment opportunities

to the Needy Sections of
society

Providing Basic Amenities like

schools and HOSPITAL to
employees

Using Environmental Friendly

methods of production,
Personal objectives

Giving the employee ….

Good Working Environment

Chances Of Growth And Promotion Good Salary And Perks

 Importance Of Management

G
Group goals

U
Useful in dynamic organisation

I
Increases efficiency

D
Development of society

E
Enhance personal objectives
Group Goals
Management gives a

common direction to the individual

departments

(like finance, production, purchase)

for achieving the overall goal of the

organisation.
Useful in dynamic organisation
Organizations function in an changing
environment.

Management helps people adapt to these

changes to survive and growth. Example
Nokia launches new brands after some
time.
Increases efficiency
Manager Try To

Reduce Costs
And
Increase Productivity

Through Better Planning, Organizing, Directing,

Staffing And Controlling The Activities Of The
Organisation
 Development of society
Helps the society by providing…

• Good Quality Products And Services

• Creates Employment Opportunities,

• Reducing the cost of production

For the benefit of the people

Enhance Personal Objectives
Through motivation and leadership the
management helps individuals growth,
better remuneration, through

• Team Spirit,
• Cooperation
• Commitment

For organizational success

Coordination
The process that ensures the….

….orderly arrangement of individual and

group efforts to ensure…..

… unity of action in the…..

..realization of common objectives.

 Difference
Basis Co Ordination Cooperation.
Planned and implemented Depends upon the will
by the administrative of the employees.
Freedom authority. It is obligatory They may or may not
cooperate
to honor it

Considered part
Wider term covering all
Priority of cooperation
areas of business

Whole-hearted support May lead to

Support unbalanced
of the employees and
departments development

Establishes formal and Establishes

Relationship informal
informal relationships
relationship only
 Planning

Controlling Organzing

Coordination

Directing Staffing
 Nature of Coordination

P
Pervasive function

R
Responsibility of all managers

I Integrates group efforts

C
Continuous process

E
Ensures unity of action

D
Deliberate function
Pervasive function
Required at all levels of management and all
different departments as

Activities of various departments and are

inter-related and inter dependent
Responsibility Of All Managers
Top level managers coordinate with middle
level to ensure that the overall policies are
suitably carried out

Middle level coordinates with both the top

level and operative level

Operational level coordinates with its

workers to ensure work Proceeds according
to plans
Integrates group efforts

Coordination unites diverse interests

into purposeful

work activity and gives a common focus

to group effort
Continuous Process
Coordination is all time process

Which begins at the planning stage

And continues till controlling

Ensures Unity Of Action
Secure unity between departments and

Ensures that all action is aimed at

achieving the goals of the organisation
Deliberate function
Manager Coordinates The Efforts

Of Different People In A Careful And

Planned Manner

So That The Members Of Departments

Work Willingly.
 Coordination is an essence of management

Coordination is not a separate function of

management but essence of management.

Like a thread in garland coordination is a part of

all management functions.

Process of coordinating the activities of an

organisation begins at the planning stage
itself
 Required between the master plan
Planning and supportive plans of different
departments

Required between different

Organising resources of an organization and
also between authority ,
responsibility and accountability

Required between skills of a person

Staffing,
and job assigned to him.

Required between superior and

Directing subordinates between orders
instructions guidelines suggestion.

Controlling Required between established

standards and actual performance
Importance of coordination

Growth in size

Functional differentiation

Specialization
Growth in size
As organizations grow in size, the number
of people employed also Increases.

Necessary that all individuals work

towards the common goals through
coordination
Functional differentiation
Functions of an organisation are divided into
departments, divisions like

• Finance,

• Production,

• Marketing

Coordination link the separate activities of

various departments .
Specialization
Big organizations have high degree of
specialization due to the complexities of
modern technology and the diverse work

Coordination is required by an independent

person to settle the differences in opinion of
the specialists