5. The other managerial tasks are “those designed to make the most effective use of the enterprise’s financial, material and human resources”. The term ‘organisation’ refers to sub-division and delegation of the overall management task by allocating responsibility and authority to carry out defined work and by defining the relationships that should exist among different functions and positions. /Filter [/FlateDecode] The existence of management courses and training programmes indicates that there are certain depend­able management principles. That each should have its due and that there should be the strictest attention to ensuring that these basic functions are coordinated is the chief executive’s priority. Mary Parker Follett has suggested a simple definition which is very popular. Writing in the 1980s, Tom Peters defined it as ‘organisational direction based on sound common sense, pride in the organisation and enthusiasm for its works’. The implication is that managers of any organisation — be a profit-seeking firm, a hospital, a government department or a sports club — must try to attain specific ends. From this point of view, management is clearly an art. Type. The process is essential to the functioning of all types of organisations — profit and non-profit; the necessary resources (human and material) must be acquired and combined in some way to produce a useful goods or to generate a valuable service. Whenever a group of people work together to achieve results, a manager is usually present. This point is illustrated in Fig. And staffing obviously cannot be done once and for all, since people are continually leaving, getting fired, retiring and dying. If Reliance is really serious about increasing its market share by 10% in 2004, managers might decide that the increase would come, in increments of 2% per year, beginning in 1999. Enrollment limited; early enrollment advised. In controlling, he determines how well the pre-fixed jobs are being performed and what progress is being made towards the goals. In fact, “budget is not only a plan. MGMT1000 - Fundamentals of Management Notes Subject notes for Curtin MGMT1000. Once management attains the status of science, its field will reliably inform or instruct managers what to do in a particular situation and enable them to predict the consequences of their actions”. Then the manager has to play a strong leadership role in first selecting the right people for the firm and then motivating them to work both efficiently and effectively. To quote R. Falk- ”Management can undoubtedly derive much from a calm appreciation of possibly not more than four basic points which, if constantly borne in mind, can help towards the creation of the sort of conditions in which effective management can function. This approach instructs the manager “to avoid the un­thinking application of any schemes but rather keep out minds open to the pragmatic question of what works best in a particular situation”. Identify the three levels of management and the responsibilities at each level. Enrollment limited; early enrollment advised. Word count. Entrepreneurship and Small Business Management Notes by the same play a considerable role in the development of nation. Detailed notes from the topics that could have been examined. It is a means of control, too. A manager is not a manager if he works alone, i.e., unless involved in the process of getting things done through others. The goals do differ — to win a trophy, to entertain an audience, or to sell a product profitably. The following are the most widely recognised management principles: (a) span of control — there is an optimum number of subordinates an executive can control; (b) levels of management — too many levels of management reduce the effectiveness of communication and control; (c) unity of command — each man should report only to one manager or superior; (d) delegation — there is need to delegate work to subordinates who should be given sufficient authority so that they can discharge their responsibility properly. Finally, the manager is a controller, auditor and adapt­er. Still Gulick would admit that “for the foreseeable future and, perhaps, even beyond, the practice of management will remain in many ways an art”. stream Disclaimer 8. In a broad sense, a manager’s activity falls into three categories: Firstly, the manager is a designer but as a manager, he designs inter-relationships among systems and resources. Or, in other words, theory and practice of management are mutually helpful inasmuch as art is totally practical and science is theoretical in character to some extent. He or she is the individual in charge and is expected to get results and to see that things happen as they should”. I've worked with a number of global organizations plus, via YouTube, I've introduced millions of people to the world of supply-chain management. In fact, management is a distinct process, consisting of planning, organising, actuating and controlling performance to determine and accomplish objectives by the use of people and resources. “This is true from the vocational understanding of the functions of business, the general core disciplines found in typical schools of business, the graduate programmes where function organisations, social institutions, social responsibilities and policy are emphasised”. It is concerned with recruitment, or, selection of the right type of people as also proper manpower planning, it is also concerned with job evaluation and merit rating (performance appraisal). The co-ordination of resources is achieved through the primary functions of the manage­ment process. We'll discuss the very foundation of business. They have more education, stronger desires for individual identity and recognition and less patience for seemingly meaningless work. Management can well be described as a science. These ends, of course, do vary from organisation to organisation. It is interesting to note that at present there is hardly any unified, comprehensive theory of management. After developing the strategic plans, the manager has to implement then in the next step, i.e., he has to put them into effect. Human resources are your company’s greatest asset and how you lead, motivate and inspire your employees can have a huge impact on the success of your company. However, in today’s world of uncertainty, managers are engaged in the continuous process-of charting new courses of action into hazy horizons. Explain how managers direct others and motivate them to … 3. Confused orders and delayed actions are signs of a management that is incapable of decisive thought.”. Planning and organising functions do focus, at least partly, on more abstract aspects of the management process. “The acceleration in the rate of innovation has altered the requirements for managerial success. 8. Every social science has developed its own principles. In the final analysis management is nothing but “the co-ordination of all resources through the processes of planning, organising, leading and controlling in order to attain stated objectives”. Different types of organisations pervade our society. The business as well as the entrepreneur contributes in some or other way to the economy, may be in the form of products or services or boosting the GDP rates or tax contributions. Curtin. In truth, the total organisation is an important part of systems analysis. Finally, managers must also cope with rapid inflation, energy crisis, growing commission, changing social and cultural trends as well as with scientific and technological innovation (See Fig. This function goes by various names: ‘leading’, ‘directing’, ‘motivating’ or ‘actuating’. Organisations must continually monitor changes in the chief economic indicators to minimise threats and capitalise on opportunities. Managerial processes, functions, skills and rules in an organization, social responsibilities of Business. 2. In fact, whatever be the role of the manager and how formal it may be, all managers in all organisations have the same basic responsibility: to help other members of the organisation set and reach a set of objectives and goals. Management - as how the mind controls the human body and its function similar management (mind) controls the … In conclusion it may be noted that the contingency theory harmonise with systems theory. As Richard Pettinger has rightly put it, “management is partly the process of getting things done through people; and partly the creative and energetic combination of scarce resources into effective and profitable activities, and the combination of the skill and talents of the individuals concerned with doing this”. Content Guidelines 2. Su­pervisory managers are those persons who directly oversee the efforts of those who actually per­form the work. It is the man (or woman) at the head of an operation who must set the people working in a vacuum quickly get but of touch. In other words, what is demanded of a manager is that he creates a work-atmosphere that will encourage and enthuse people to lend their efforts and participate in activity in the undertaking. We hope that self learners will not find much difficulty in understanding the lessons by themselves and will need only a little help from the tutor. Explain how managers direct others and motivate them to achieve … Rather than do this, the officer in question should be supplanted. The crisis point is simply emphasised to underscore the point that top management should not allow itself to go off the track. Key leadership and communication skills are necessary to be a successful leader and build a strong organization. /BitsPerComponent 8 Definition of Management 2. Controlling helps ensure the effectiveness and efficiency needed for successful management. E. F. L. Brech called it ‘the social process of planning, coordination, control and motivation’. The basic focus of this activity is on what the man­ager does to encourage organisa­tional performance (rather than on management activities directed to­ward fulfilling employee needs and expectations). Learning Objectives. The business performed modestly well and soon grew to nine stores, all in the Seattle area. 30 0 obj Management is basically concerned with ideas, things and people. The justification of the above view lies in the fact that ‘all human behaviour involves, by conscious and unconscious means, the selection of particular actions out of all those that are available to the individual and to those over whom it exercises influence and authority.’. This is the policy-working group responsible for the overall direction and success of all company activities. In order to survive, business enterprises must achieve their objectives. STUDY NOTES FOUNDATION : PAPER - 4 FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS The Institute of Cost Accountants of India CMA Bhawan, 12, Sudder Street, Kolkata - 700 016 . This monitoring and corrective function is known as controlling. Now the question is: Is it a profession? Every industrial or commercial organisation requires the making of decisions, the coordination of diverse as well as interrelated activities, the handling of people and the evaluation of performance directed towards group objectives or goals. In others, some other coordinating machinery, less cumbersome and time-consuming than the committee method, works better. Human resources are your company’s greatest asset and how you lead, motivate and inspire your employees can have a huge impact on the success of your company. Important staff functions may also be assigned to this group. 101 Business Organization, 102 Business Mathematics, 103 Principles of Economics, 104 Book Keeping & Basic Accounting, 105 Business Laws, 106 Fundamentals of Management, 107 Business Ethics, 201 Organizational Behavior, 202 Business Communication, 203 Indian Economy, 204 Business Statistics 205 Business Environment, 206 Principles of Accounting, 301 Advertising Management, 302 … These organisations do differ from one another in more ways that one. Another major responsibility of many middle managers is to supervise the activities of the third level — the first-line managers. Henri Fayol has emphasised the point that management principles are universal. Reports are made in such a fashion that the manager, his superiors or his subordinates may have a look at what is happening and, in case of necessity, may change their courses of action. Finally, an organisation must be endowed with leaders, managers responsible for helping organisations achieve their goals. A manager is someone whose primary activities are part of the management process. A closer scrutiny reveals that there are three aspects to a such a definition: 1. Controlling is necessary for various reasons. Accg 200 review - Summary Fundamentals of Management Accounting ACCG Homework - decent information hd ACCG200 Formula Sheet WK1 - Intro & Basic Cost Concepts and terms (CH WK2 - Cost Volume Profit Analysis (CH ACCG2000 Lecture 1 notes A related point may be noted in this context. Planning. Challenge to Management 9. 40. regu­late almost all major aspects of organisational policy and behaviour. Says R. Falk – “Management is largely a question of decision, and decisions cannot properly be taken unless the mind is clear about objectives and priorities, to achieve that clarity of mind calls for a form of concentration which is in itself a vital discipline. And, in still other cases, it refers to a system for getting things done”. However, there are discrepancies between the two. Determining the best method for grouping activities and resources in the overall interest of the organisation is the organising process. In short, corporate planning is nothing other than a systematic approach to strategic decision making. Solution to Examination Question of FUNDAMENTALS OF MANAGEMENT - A N COLLEGE, Patna - 2016 By Hariom Sharma. It involves the following three elements: 1. The term ‘organisation’ is defined as a group of two or more people working together in predetermined fashion to attain a set of goals such as profits, the discovery of knowledge, national defence, or social welfare (manag­ing a charitable trust or dispensary). Corporate planning, however, lays stress on a regular review of strategy. Notes on the Organisation and Management: 11. Identify the three levels of management and the responsibilities at each level. 31 0 obj This is a trinity of interests. endobj Management as an Art, […] The job of managing is likely to become more and more challenging in the 21st century for a number of reasons – rapid growth of the service sector, foreign competition, large number of corporate mergers and acquisitions, restructurings, business process engineering, downsizing, flattening of the pyramid, empowerment and core competencies. 1.1 which enables us to suggest the following definition: Management is essentially the process of planning and decision-making, organising, leading and controlling an organisation’s human, financial, physical and information resources with a view to attaining organisational goals in the best possible way, i.e., in an efficient and effective manner. Furthermore, in such organisations, the role of the manager will be clear-cut and directly visible. (1) Determining what activities need to be done to fulfill the goals of the firm, (2) Grouping and-assigning these activities to subordinates and. And we cannot conduct the same kind of experiments in management as we can in natural sciences like Physics or Chemistry. The fourth and final component of leading is communication, not communication for its own sake, but communication with a purpose, i.e., achievement of organisational goals. It is widely recognised that a manager must organise — organise people, organise materials, organise jobs, organise time. The summaries are written by students themselves, which gives you the best possible insight into what is important to study about this book. In the words of Koontz and O’Donnell: “principles are fundamental truths which are believed to be truths at a given time, expressing relationship between two or more sets of variables”. Many managers today do not view success as an expression of profits for several reasons; profits are considered the reward for successful mission; profits indicate success because a loss was avoided; profit is only a long-term concept needed for the enterprise to survive and attract sufficient capital to enable it to fulfill its prime mission. The major purpose of this title is to enable the reader understand how managers accomplish this task. In fact, the process of management is as important to the functioning of Calcutta Medical College or a fire department as it is of Tata Iron and Steel Company. Taylor’s influential book- Shop Management in 1903, which brought into focus the scientific character of the subject. Management scientists and writers on organisations have developed certain management principles which may be regarded as general statements of organisational and management behaviour. The managers and their organisational system need flexibility and openness to change in order to cope with change, meet society’s demand and exploit the opportunities presented to it”. They suggest “paying too much attention to them increases the rigidity of organisations and hence reduces their effectiveness, particularly in rapidly changing conditions”. And throughout the entire process, he imposes an appropriate control system to optimise the use of all the four resources. A principle is a fundamental truth and is generally stated in the form of cause and effect relationship. On the contrary, a departmental supervisor directs the operative personnel in one department and is responsible for the amount and quality of work produced. Describe the … True enough, “systems theory is a powerful concept for the analysis of organisations and organisation behaviour as well as for the design of organisation from the standpoint of technology or engineering or from a behavioural point of view”. Robbins.S.P., Fundamentals of Management, Pearson, 2003. His definition; “Managing is the process of planning, organising, leading and controlling the efforts of organisational members and the use of other organisational resources in order to achieve stated organisational goals”. One of the most exciting yet challenging ways to live your life is to start your own business or work for someone who has their own startup. This is no doubt a complex task. And so long as the art of applying basic management, principles in practice is important to the job of manager, management is surely an art. All enterprises are responsible to certain groups such as shareholders for their performance. Fundamentals of Business. The following factors have contributed to this increase in the challenge to management: As the size of the organisation expands and as business firms go international in search of raw materials and markets for finished goods the task of managing such complex organisation also grows in difficulty. These organisations will also have some programme or method for achieving their goals — to win a certain number of games, to manufacture and advertise a profitable product. The most common element of an organisation seems to be a goal or a purpose. Discuss various options for organizing a business, and create an organization chart. 5,284 words. A major portion of a manager’s time is spent setting objectives and designing plans, programmes, systems and procedures. It refers to ‘planning systematically the total resources of the company for the achievement of quantified objectives within the relation of corporate planning to strategy. Managing these may require skills other than just issuing verbal orders. (PART 1,2) March 2017; Publisher: Pablisher house „Universal“ ISBN: ISBN 978-9941-17-778-1; Authors: Temur Shengelia. (Sundar) Balakrishnan Balakrishnan S #2 What is Marketing? Perhaps the most widely accepted definition of management is the following one suggested by H. Koontz and C. O’donnel- “The creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals. A closed system is one that cannot be affected by any external influence or force beyond the control of its management (or outside its direct influence). By performing the controlling function, the manager can keep the organisation on the right track before it markedly deviates from its goals. Earlier we have noted that controlling refers to the process of measuring and monitoring actual performance in comparison with predetermined objectives, plans, standards and budgets and taking any correc­tive action required. Rather they get others to perform essential tasks. Leading: Motivating and Managing Employees: Once the organisation process is complete, different people are to be given different assignments and put at appropriate places. To quote C. S. George, Jr. “The ultimate objective of these managerial acts is to create an environment in which individuals will willingly participate in order to achieve objectives. These people who are respon­sible for providing the overall direction of the firm usually include the chairperson of the board and the president, along with vice-presidents who are responsible for major subdivisions of the organ­isation. Business enterprises, for example, are not operated on a seat-of-the pants basis but are involved in research, long-range planning, as also sophisticated use of the latest computer and mathematical technology. It may include assistance to middle management positions and staff functions of lesser nature than those in the two upper management groups.”. Top managers also officially represent the organisation to the external environment by meeting government officials, executives of other organisations, and so forth. MGMT1000: Fundamentals Of Managenent. /Length 55271 The implication of this statement (or definition) is simple enough. Planning involves deciding aims and objectives, selecting the correct strategies and programmes to achieve the aims, determining and allocating the resources required and ensuring that plans are communicated to all concerned. In other cases, it suggests the professional career path aspired to by most business administration students. In People Management, learn the key leadership and communication skills that you need to be a successful leader and build a strong organization.People Management Fundamentals of Business, 3rd edition. Schedule. 25300 Fundamentals of Business Finance 6cp Requisite(s): 26100c Integrating Business Perspectives The lower case 'c' after the subject code indicates that the subject is a corequisite. “The purpose of scientific theory is to provide a framework for the explanation and interpretation of the facts, so that phenomena can be explained, understood, predicted and controlled. In fact, there are various definitions of management. Portfolio Managers: manage money for investors. As David R. Hampton argued: “In an organisation, people, tasks and management are interdependent just as the nerves, digestion and circulation are interdependent in the human body. As president, you are a member of top management, and you’re responsible for the overall performance of your company. The general process in the manufacture of a motor car, an audit of accounting records, the insurance of a government regulation, or the education of student. 3. Leading (directing) means that managers direct and influence the ‘activities’ of subordinates. As we will see throughout this text, however, management is actually a very complex process — much more complex than this definition would seem to suggest. The term first-line or first-level (top) man­agement refers to the lowest level in the organisation at which people are in an automobile plant, or the head clerk of a big office or supervisory or even office manager. (iv) No executive or employee occupying a single position in the organisation should be subject to definite orders from more than one source. But the study of the subject, in the true sense, started with the publication of Peter Drucker’s Practice of Management in 1954. 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