Principles of Management unit notes which can be used for MBA
- 1. UNIVERSITY : ALAGAPPAUNIVERSITY COURSE : BSCCHA SUBJECT : PRINCIPLESOFMANAGEMENT SEMESTER : V UNIT : I
- 2. UNIT – 1 INTRODUCTION TO BUSINESS AND MANAGEMENT Meaning, definition, characteristics, objectives, functions and scope of business Meaning, definition, nature and characteristics, scope and functional areas of Management, Process of management Levels of management Management a Science or art or profession Management and administration Principles of Management Social responsibility of business and ethics
- 3. Meaning of Business • A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non- profit organizations.
- 5. Characteristics of Business (1) An Economic Activity (2) Manufacturing or Procurement of Services and Goods (3) Exchange or Sale of Goods and Services for the Satisfaction of Human Needs (4) Dealings With Goods and Services on a Daily Basis (5) Profit Earning (6) Uncertainty of Return
- 8. Meaning of Management Management can be defined as a process of getting the work or the task done that is required for achieving the goals of an organisation in an efficient and effective manner. Process implies the functions of the management. That is, planning, organising, staffing, directing and controlling.
- 9. Definition of Management Louis E Boone & David L Kurtz- The use of people and other resources to accomplish objectives. Mary Parker Follet- the act of getting things done through people. Frederick Taylor defines Management as the art of knowing what you want to do in the best and cheapest way Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co- ordinate and to control.” J.N. Schulze – “Management is the force which leads, guides and directs an organisation in the accomplishment of a pre- determined object.
- 13. PROCESS AND FUNCTIONS Management process/functions involve 5 basic activities; • PLANNING • ORGANIZING • STAFFING • DIRECTING • CONTROLLING
- 16. CONCLUSION SUCCESSFUL MANAGERS are made, not born. They are self- made, through continuous and never-ending work on themselves. Everyone starts at the bottom and then works his or her way up through hard, hard work, sustained over a long period of time.
- 18. MEANING The term Levels of Management refers to the line of division that exists between various managerial positions in an organization. As the size of the company and workforce increases, the number of levels in management increases along with it, and vice versa. DEFINATION Management levels are the divisions between degrees of authority and responsibility in a company. The typical management levels are top-level management, mid-level management and first-line management. These levels determine the duties of various manager positions, including who they report to and who reports to them.
- 20. Top Level Management Top-level management includes managers who work at the highest level of the organizational standard or position. In this level, the number of members is low according to their other levels. Following are the main designations assigned to individuals working at this level: • Managing Director • Board of Directors • Chairperson • Chief executive Officers • Chief product Officers • Chief technology Officers
- 21. Functions performed at top level of management are : • Making strategies and goals for the organisation. • Taking decisions regarding activities to be performed. • Framing policies for the organisation. • Responsible for welfare and survival of the organisation.
- 22. Middle-Level Management • Middle-level management includes departmental heads or individuals. • It is the connection between top and lower level managers. • Middle management is accountable for executing and regulating systems and manoeuvrings generated by the top management. They consist of: • Divisional heads and sub-divisional heads. • Departmental heads like purchase manager, sales manager, finance manager, personnel manager etc. • Plant superintendent.
- 23. Functions performed at the middle level of management are • Explain the policies to lower management. • Taking decisions regarding the number of personnel in the department. • Assigning duties and responsibilities to employees in their department. • To act as a link between the lower level and the management.
- 24. Lower level management • This level of management is also known as operational level management. • They create a link between middle-level managers and non-managerial employees. • They monitor the activities of non-managerial employees and coordinate their work for better achievement. • They train, motivate or inspire the workers. These managers are ‘foreman’, ‘supervisors’, ‘operating managers’, and so on. This level consists of: Supervisors Foremen Inspectors
- 25. Functions performed at the lower level of management are: • Providing on the job training to the workers • Ensuring the good performance of the workers • Giving feedback to the workers • Influence others to work more by setting an example • Responsible for group unity • Act as a link between the management and the workers
- 26. Management a Science or art or profession Meaning It is considered a science because it has an organized body of knowledge which contains certain universal truths. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides knowledge & art deals with the application of knowledge and skills.
- 29. MEANING Management is a systematic way of managing people and things within the organization. The administration is defined as an act of administering the whole organization by a group of people. Management is an activity of business and functional level, whereas Administration is a high- level activity.
- 30. Management decides who should do it & how should he do it. Administration decides what is to be done & when it is to be done
- 31. BASIS FOR COMPARISON MANAGEMENT ADMINISTRATION Meaning An organized way of managing people and things of a business organization is called the Management. The process of administering an organization by a group of people is known as the Administration. Authority Middle and Lower Level Top level Role Executive Decisive Concerned with Policy Implementation Policy Formulation Area of operation It works under administration. It has full control over the activities of the organization.
- 33. MEANING • Formally defined, the principles of management are the activities that “plan, organize, and control the operations of people, materials, machines, money and markets, providing direction and coordination. • Principles of management serve as guidelines for managerial decision-making and their course of action. It is through principles that management predicts the result of their actions.
- 34. Definition • Principles of management are broad and general guidelines for decision making and behaviour. Division of work, discipline etc. Developed and applied in business. Basic truths or guidelines. Formed after research at the workplace.
- 36. WHAT ARE THE ADVANTAGES OF PRINCIPLE OF MANAGEMENT • Managers can focus on optimum use of available resources • To achieve productive results at minimum cost and maximum profits • What are the Disadvantages of principle of management? • Neglects the most important aspect of the businesses, i.e., the customer and customer satisfaction.
- 37. Social responsibility of business and ethics
- 38. Introduction • Social responsibility is a business's duty to make ethical decisions that positively impact society. • to create long-lasting trusting relationships. In order to be socially responsible, companies must strictly follow their codes of ethics
- 39. Social responsibility has become increasingly important to investors and consumers who seek investments that not only are profitable but also contribute to the welfare of society and the environment MEANING
- 41. Over all view of social responsibility
- 42. CONCLUSION