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A Creative Study


Management in the
twenty 1
st
century



Levels of
management


Importance of
management


Features of
management


Functions of
management


Nature of
management


Coordination

Objectives of
management
NATURE AND
SIGNIFICATION
OF MANAGEMENT

In the capacity of country manager
In the capacity of functional manager
In the capacity of business leader
Top management
Middle management
Supervisory or operational management
Helps in achieving group goals
Essential for prosperity of society
Establishes sound organization
Reduces cost
Optimum utilisation of resources
Key element of coordination
Nature of coordination
Importance of coordination
Organizational objectives
Social objectives
Personal objectives
Planning
Organizing
Staffing
Directing
controlling
Goal oriented process
Pervasive
Inter related & interdependent function
Continuous process

Group activity
Dynamic
Intangible
Management As An Art
Management As An Science
Management As An Profession
P
Existence of theoretical knowledge

Personalized application
Based on practice and creativity
Systematized body of knowledge
Principles based on experimentation
Universal validity

Well defined body of knowledge

Restricted entry
Professional association
Ethical code of conduct

Service motive

Integration
Balancing
Timing
Integrates group efforts
Ensures unity of action
A continuous process
All pervasive function
Responsibility of all managers
A deliberate function
Size of the organization
Functional differentiation
Specialization
Coordination is the essence
of management
The challenging role of a global
manager
Maintains equilibrium
Reduces cost
BODMAS CAREER ACADEMY
Principles of
management
Fayols Principles
of Management
Significance of
Management Principles
Taylors scientific
management principles
Techniques of
Scientific Management
Nature of
Management Principles
Division of work
Authority & Responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual
interest to general interest
Remuneration of employees
Centralization & decentralization
Scalar Chain
Order
Equity
Stability of personnel
Initiative
Espirit De Corps
Universal applicability
General guidelines
Practice & experimentation
Flexible
Mainly behavioural
Cause & effect relationship
Contingent
Science not rule of thumb
Harmony, Not Discord
Cooperation, Not individualism
Development of Each and
every person to his or her
greatest efficiency &
prosperity
Providing managers with useful
insights into reality
Optimum utilization of resources
and effective administration
Meeting changing environment
requirement
Management training, education
& research
Fulfilling social responsibility
Scientific decisions
Functional foremanship

Standardization & simplification of work
Differential piece wage system
Work study
Method study
Motion study
Time study
Fatigue study
BODMAS CAREER ACADEMY
Business
environment
Characteristics of
business environment
Importance of
business environment
Dimensions of
business environment
Economic environment
in India
Impact of govt. policy
changes on business
& industry
Managerial responses
to changes in business
environment
Totality of external forces
Specific & general forces
Inter relatedness
Dynamic nature
Uncertainty
Complexity
Relativity
Enabling the identification of opportunity
& getting the first mover advantages
Helping in the identification of
threats & early warning signals or
Rader effect
Tapping useful resources
Coping with the rapid changes
Assisting in planning & policy
formulation
Improvement in performance
Image building
Economic environment
Social environment
Technological environment
Political environment
Legal environment
Liberalization
Privatization
Globlization
Strategic alliance, mergers and
consolidation of business
Diversification spree
Consolidation of Multinationals
Brand building
Labour
Increasing competition
More demanding customers
Rapidly changing technological
environment
Necessity for change
Need for developing human
resources
Market orientation
Loss of budgeting support to the
public sector
Threat from multinational corporation
Corporate vulnerability
Enhanced focus on exports
BODMAS CAREER ACADEMY
Reduce
wasteful
activities
Planning
Importance
of planning
Planning
process
Characteristics
of a good plan
Limitations of
planning
Features of
planning
Types of plan
Reduces the
risks of
uncertainty
Promotes
Innovative
Ideas
Provide
Direction
Facilitates
decision making
Est.
standard
for Control
Goals
Policy
Objectives
Procedure
Rules
Method
Programme
Flexible
Clear &
specific
Logical &
practical
Participation
Periodic
review
Simple &
comprehensive
Flexible
Primacy of
Planning
Mental
Exercise
Continuous
Futuristic
in Nature
May not work
in Dynamic
Environment
Involves
huge costs
Creates
Rigidity
Time
consuming
process
Reduce
Creativity 1. Setting
objectives
6. Implement
the Plan
2. Establishing
the planning
premises
4. Evaluating
alternatives
7. Follow up
action
5. Selecting an
Alternative
Focus on
Achieving
Objectives
Pervasive
Purposeful
activity
Budget
Success Not
Guaranteed
3. Identify
alternative
courses of action
BODMAS CAREER ACADEMY
ORGANISATION
Functional structure
Merits Demerits
Specialization
Coordination
Economical
Effective
training
Increasing
managerial
efficiency
Conflicts
Ineffective
coordination
Hindrance in
organizational
objectives
Divisional structure
Merits Demerits
Development
of skills
Accountability
Conflicts
Duplication of
activities
Quick decision
making
Easy
expansion
Organizational
interest
ignored
Formal organisation
Merits Demerits
Specified
duties
Stability
Fulfils
organizational
Objectives
Unity of
command
Responsibilities
are fixed
Delay in work
Back of
initiative
Emphasis on
work only
Importance of Organisation
Benefits of specialization
Clarity in working relationship
Optimum utilization of resources
Adaption to change
Effective administration
Development of personnel
Expansion and growth
Process of Organisation
Identification and division of work
Departmentalization
Assignment of duties
Establishing reporting relationship
Organizational structure
Informal organisation
Merits Demerits
Fulfills social
needs
Influence on
productivity
Resistance to
change
Creates
rumours
Fast
communication
Fulfills
organizational
objectives
Lack of
specialization
Delegation
Elements of
delegation
importance of
delegation
Accountability
Responsibility
Authority
Effective
management
Employee
development
Motivation of
employee
Facilitation of
growth
Better
coordination
Basic of
management
hierarchy
Importance of
decentralization
Develops initiative among
subordinates
Develops managerial talent for
the future
Quick decision making
Relief to top management
Facilitates growth
Better control
BODMAS CAREER ACADEMY
RELAX You Deserve a BREAK
Importance of staffing
1. Ensure availability of most suitable
persons
2.Better performance
3.Ensures continuous growth
4.Avoid over manning & under
utilisation of manpower
5.Job satisfaction
6.Advancement of Technology
Staffing process
1. Estimate Manpower Requirement
2.Recruitment
3.Selection
4.Placement & orientation
5.Training
6.Performance appraisal
7.Promotion & career orientation
8.Compensation
9.Separation
External sources
1. Direct recruitment
2. Casual callers
3. Advertisement
4. Employment exchange
5. Placement agencies
6. Management consultants
7. Campus recruitment
8. Recommendations
9. Labour contractors
10. Telecasting
11. Web publishing

Advantages of External
sources
1. Qualified personnel
2. Wider choice
3. Fresh talent
4. Competitive spirit

Disadvantages of
External sources
1. Dissatisfaction among
existing staff
2. Lengthy process
3. Costly process


Selection
process of selection
1. Preliminary Screening
2. Selection Tests
3. Employment Interview
4. Reference & background Check
5. Selection Decision
6. Medical check-up
7. Contract of Employment


Needs for training

1.Essential for new employees
2.Improves performance
3.Improve employee attitude
4.Reduced supervision
5.Coping with changes in techniques
6.Benefits to employees
R
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C
R
U
I
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M
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N
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STAFFING
Recruitment
Source of Recruitment :
Internal sources
1. Transfers
2. Promotions
Advantages of Internal
sources
1. Simple & economical
2. No need of training
3. Motivation
4. Promotional avenues
5. Cheaper
6. Transfer facilitates
Disadvantages of
internal sources
1. Fresh & more talented stock
2. Promotion
3. Lack of competition
4. Not suitable for new
enterprises





Training methods
On the job method
1. Apprenticeship programmes
2. Coaching
3. Internship training
4. Job rotation


Off the job method
1. Class room lectures /
conferences
2. Films
3. Case study
4. Computer modelling
5. Vestibule training
6. Programmed instruction

BODMAS CAREER ACADEMY
Role of Supervision
Characteristics of directing
Elements of directing
Importance of directing
Principles of directing
Direct contact with the worker
Unity among workers

Motivation workers

Analysis of work performed
Provides a link between workers
and management
Training of workers
Avoidance of conflicts and
misunderstanding

Leadership qualities

Maximum individual contributation
Harmony of objectives
Unity of command
Appropriateness of direction technique
Managerial communication
Use of informal organisation
Leadership
Takes place at every level of
management

Initiates action
Continuous process
Flows from top to bottom
Brings stability & balance
Integrates employees efforts
Initiates action
Means of motivation
Facilitates changes
Communication

Leadership
Motivation
Supervision

DIRECTING

Follow through
Balance in the organisation
BODMAS CAREER ACADEMY
Formal & Informal
Communication
Elements of
communication
process
Sender
Message
Encoding
Media
Decoding
Receiver
Feedback
Noise
Importance of
communication
Acts as basis of coordination
Helps in smooth working of an
enterprise
Acts as basis of decision making
Increases managerial efficiency
Promotes cooperation and
industrial peace
Establish effective leadership
Boosts moral and provides
motivation

Communication

Single chain
Formal
communication
Informal
communication
Wheel
Circular
Free flow
Inverted V
Single strand
Gossip
Probability
Cluster
Advantage of
Formal
communication
Maintenance of authority
Orderly flow of authority
Secrecy
Easy knowledge of source of
information
Disadvantage
of Formal
communication
Overload of work
Distortion of information
No personal touch
Advantage of
Formal
communication
Speedy & spontaneous
Free environment
Social relations
Supplementing
Disadvantage
of Formal
communication
No responsibility
Unreliable information
Leakage of information
Barriers to
communication
Semantic barriers
1. Badly expressed message
2. Symbols with different meanings
3. Faulty transaction
4. Unqualified assumption
5. Technical jargon
6. Body language & gesture decoding
Psychological barriers
1. Premature evaluation
2. Lack of attention
3. Loss by transmission & poor
retention
4. Distrust
Organizational barriers
1. Organizational policy
2. Rules & regulation
3. Status
4. Complexity in organization structure
5. Organizational facilities
Personal barriers
1. Fear of challenge to authority
2. Lack of confidence of superior on
his subordinates
3. Unwillingness to communicate
4. Lack of proper incentives
Improving communication
effectiveness
1. Clarify the ideas before communication
2. Communicate according to the needs of
receiver
3. Consult others before communicating
4. Be aware of language, tone and content of
message
5. Convey things of help and value to listener
6. Ensure proper feedback
7. Be a good listener
BODMAS CAREER ACADEMY
MOTIVATION
LEADERSHIP
Internal feeling
Goal directed behaviour
Both positive and negative
Complex process
Features of
motivation
Importance of
motivation
Changes the negative attitude
to positive attitude
Helps in satisfying needs of the
employees
Reduces labour turnover
Helps in introducing changes
Reduces absenteeism
Maslows need hierarchy
theory of motivation
Types of needs
Organizational climate
Status
Career advancement opportunity
Job enrichment
Employee recognition programme
Job security
Employee participation
Employees empowerment
Safety and security needs
Affiliation / belonging needs
Esteem needs
Physiological needs
Self actualization needs
Non financial
incentives
Financial
incentives
Productivity linked wage incentives
Profit sharing
Co partnership / stock option
Retirement benefits
Bonus
Pay and allowances
Perquisites
Importance of
leadership
Handles conflicts
Maintains coordination
Introduces changes
Influences the behaviour of people
Provides training
Integrity
Empathy
Communication skills
Motivation skills
Self confidence
Initiative
Knowledge
Decisiveness
Social skills
Qualities of good
leader
BODMAS CAREER ACADEMY
Difficulty in setting quantitative standards
No control on external factors
Resistance from employees
Costly affair
CONTROLLING
Importance
of
controlling
Process of
controlling
Accomplishing organizational goals
Judging accuracy of standards
Making efficient use of resources
Improving employee motivation
Ensuring order and discipline
Facilitating coordination in action
Step 1: Setting performance standards
Step 2: Measurement of actual performance
Step 3: Comparing Actual performance with
standards
Step 4: Analyzing deviations
Step 5: taking corrective action
Limitations
of
controlling
BODMAS CAREER ACADEMY
To ensure availability of funds
whenever these are required Objectives of
financial
Planning
Role of financial
management
Current assets & their break up into
cash, inventories & receivable
Size & composition of fixed assets of
business
Long term & short term financing to be
used
Items in profit & loss a/c
Financial decision
Stability of dividends
Earning
Cash flow position
Shareholder preference
Taxation policy
Growth opportunity
Stability of earnings
Stock market reaction
Dividend decision
Financing decision
Investment decision
DIVIDEND DICISION
Factors affecting
dividend decision
Importance
of financial
planning
Coordination among different
functional areas
Avoid wastage & confusion
Reduce s financial uncertainties
Base for financial control
Optimum utilization of funds
Detailed plans for future
Objectives of
financial
Management
Profits maximization
Safety of funds
Efficient utilization of resources
Wealth maximization
Meeting financial commitments
Cash flow position of the
business
Risk
Level of fixed operating costs
Control consideration
State of capital market
Flotation costs
Cost
Financial decision
Factor affecting
financial decision
Financial
management
To see that the firm does not raise
resources unnecessarily
Break up of long term financing
into debt, equity etc.
Access to capital market
Legal constraints
Contractual constraints
INVESTMENT
DECISION
Factors affecting
capital budgeting
Cash flows of the project
Rate of return
Investment criteria involved
BODMAS CAREER ACADEMY
Fixed
capital
Capital
structure
Working
capital
Long term
investment
Liquidity
Return
Flexibility
Economy
Risk
Capital
structure of
other
companies
Debt service
coverage
ratio
Cash flow
position
Return on
investment
Interest
coverage
ratio
Cost of
debt
Features of
capital structure
Factors affecting the
choice of capital structure
Stock
market
condition
Flotation
cost
Control
Cost of
equity
Tax rate
Flexibility
Risk
consideration
Regulatory
frame work
Factors affecting the
working capital
requirement
Nature of
business
Scale of
operations
Production
cycle
Business
cycle
Seasonal
factors
Credit
allowed
Availability of
raw material
Credit
availed
Operating
efficiency
Level of
competition
Growth
prospects Inflation
Importance of
fixed capital
Heavy
investment
Risk
involved
Irreversible
decision
Factors affecting the fixed
capital requirements
Nature of
business
Size of
business
Choice of
technique
Technology
up
gradation
Expansion
of
business
Type of
product
Financing
alternative
Level of
collaboration
Efficiency in
management
of fixed assets
Manufacturing
/ trading firm
BODMAS CAREER ACADEMY
Mobilization of saving & channeling
them into the most productive
Functions of
Financial market
Classification of
financial markets
Money market
All India level stock
exchange
NSEI & OTCEI
Money market
Instruments of
money market
Objectives of
SEBI
Competitive & professional
Prevention of Malpractice
Balancing
Orderly functioning
Protection
Functions of
SEBI Regulatory
function
Notification of rules & regulation
Levying of fees
Regulator of investment schemes
Registration of brokers & agent
Prohibits unfair trade practices
Promotion of fair trade
Research
Training to intermediaries
Functions of SEBI
development
function
Facilitate price discovery
Functions of SEBI
protective function
Prohibits fraudulent & unfair
trade practice
Promotes fair practice
Education investors
Provide liquidity to financial assets
Reduce the cost of transactions
Capital market
Treasury Bill
Commercial paper
Call money
Certificate of deposit
Commercial Bill
Capital Market
Primary market
Secondary Market
Methods of flotation in
primary market
Rights issue
Offer through prospectus
Offer for sale
Private placement
E-IPOs
Secondary market (stock
exchange)
Total 24; oldest BSE
Inspection & enquiries
Performing & exercising powers
Financial
market
Common Feature of
NSEI & OTCEI
Prevents insider trading
Screen based training
Nationwide coverage
Transparency
Promoters
Ringless
BODMAS CAREER ACADEMY
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Marketing
Role of
marketing
Objectives of
marketing
management
Feature of
marketing
Marketing
management
philosophies
Classification
of products
Elements
of
marketing
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Role in a firm
Role in the economy
Product
Price
Place
Promotion
Function of
marketing
Consumer
product
BODMAS CAREER ACADEMY
Branding
Labelling
Pricing
Place /
physical
distribution
mix
Brand name
strategies
Advantage to the
marketers
Advantage to the
customers
Features of a
good brand name
Individual branding
Blanket family branding
Separate family brand name
Company name combined with
individual brand
Enable marketing product differentiation
Helps in advertising & display programmes
Differential pricing
Ease in introduction of new product
Helps in product identification
Ensures quality
Status symbol
Short & simple
Indicates the qualities
Unique
Adaptable
Versatile
Capable
Functions of
distribution
channel
Type of channels
Factors
determining
choice of
channels
Components of
physical
distribution
Sorting
Accumulation
Allocation
Assorting product promotion
Negotiation
Risk taking
Order processing
Transportation
Warehousing
Inventory control
Product related factors
Company characteristics
Competitive factors
Market factors
Environmental factors
1. Direct channel (Zero level)
2. Indirect channel
a. manufacturer retailer consumer (1 level
channel)
b. manufacturer wholesaler retailer consumer
(2 level channel)
c. retailer consumer (3 level channel)
Complete description of a
product
Identification of product
Grading of product
Promotion of product
Legal information
Factors of
labelling
Primary Package
Secondary Package
Transportation Package
Levels of
packaging
Importance
of packaging
Function of
packaging
Rising standards of health
& sanitation
Self service out lets
Innovational opportunity
Product differentiation
Product identification
Product protection
Facilitate use of product
Product promotion
Factors
affecting
Strategies
Product cost
The utility & demand
Extent of competition in the
market
Government & legal
regulations
Pricing objectives
Marketing methods used
Price skimming
Penetration pricing
Packaging
BODMAS CAREER ACADEMY
Promotion
mix
advertising
Personal
selling
Sales
promotion
Publicity
Undermines social values
Confuses the buyers
Some advertisement are in bad taste
Encourages sale of inferior products
Paid form
Impersonality
Identified sponsor
Mass reach
Enhancing customer
Satisfaction
expressiveness
Economy
Less forceful
Lack of feedback
Inflexibility
Low effectiveness
Adds to cost
Features of
advertising
Merits of
advertising
demerits of
advertising
Objections
of
advertising
Media
selection
Selectivity
Flexibility
Cost
Editorial environment
Coverage of the media
Permanence
Merits of
sales
promotion
Attention Value
Useful in new product Launch
Synergy in total promotion efforts
Limitation
of sales
promotion
Reflects crisis
Spoils product image
Commonly
used sales
promotion
activities
Rebate
Discount
Refunds
Product combination
Quantity gift
Luck draw
Usable benefits
Full finance @ 0%
Samples
Contests
Instant draws &
assigned gifts
Advantages
of publicity
More credibility
Mass reach
Disadvantages
of publicity
No control
Limited information
Features
of personal
selling
Personal form
Development of
relationship
Merits of
personal
selling
Flexibility
Direct feedback
Minimum wastage
Personal selling
importance to
businessmen
Effective promotional tools
Flexible tools
Minimizes wastage of effort
Consumer attention
Lasting relationship
Personal rapport
Role in introduction stage
Link with customer
Personal selling
importance to
customers
Personal selling
importance to
society
Helps in identifying
needs
Latest market
information
Expert advice
Induces customers
Converts latest demand
Employment opportunities
Career opportunities
Mobility of sales people
Product standardization
BODMAS CAREER ACADEMY
Consumer
Protection
Importance
of consumer
From consumers
point of view
Consumer ignorance
Unorganized consumer
Widespread exploitation of Consumers
From the point of
view of business
Long term interest of business
Business use societys resources
Social responsibility
Moral justification
Government intervention
Poverty & Unemployment
Illiterate consumer
consumer are not organized
The consumer protection Act, 1986
The contract Act, 1982
The sale of good Act, 1930
The essential commodities Act, 1955
The agriculture produce Act. 1937
The prevention of food adulteration Act, 1954
The standards of weights and measures Act, 1976
The trade marks Act, 1999
The competition Act, 2002
The bureau of Indian standers Act, 1986
Need for consumer
protection in
developing
countries like India
Legal protection
to consumers
Right to safety
Right to be informed
Right to choose
Right to be heard
Right to seek Redressel
Right to consumer education
Right to basis need
Right to healthy environment
Consumer Right
Consumer
Responsibility
Awareness of right
Quality conscious
Ready to lodge complaint
Not to be misled by false advertisement
Must obtain cash memo
Cautious consumer
Consumer organisation
Environment
Availability goods & services
Selection of goods
Self regulatory by business
Business associations
Consumer awareness
Consumer organisation
Government
Ways & means
of consumer
protection
Redressal
agencies
District forum
State commission
National commission
Role of consumer
Organisations &
NGOs
Important consumer
Organisations &
NGOs
Creating consumer awareness
Encouraging the consumers
Filing complaints
Protesting against traders
Focus on consumer problems
Provide legal assistance
Consumer coordination council, Delhi.
Common cause
Voluntary organizational in interest of
consumer education (VOICE) Delhi.
Consumer education & research centre
(CERC) Ahmedabad .
Consumer association kolkata
Consumer guidance society of India,
Mumbai etc.
BODMAS CAREER ACADEMY