INTRODUCTION TO INTRODUCTION TO MANAGEMENTMANAGEMENT

ASST PROF. ASST PROF. JONLEN JONLEN J.R.DESAJ.R.DESA

Introduction

• Getting things done through people by efficiency and effectiveness.

• Managing resources like human resource, Material and Machinery.

• Management is an art of doing things in the best and cheaper way.

Definitions• Management is the process of developing people and

not the direction of things. Then it is personnel administration.

Lawrence A Appley

• Management is the art of getting things done through with in formally organized groups.

Koontz

• Management is science and art of decision making and leadership.

Donald

Continuous Process Intangible Done at all levels Universal Activity Creative activity Purposeful Art and science both Group Activity Pervasive Vast Scope Aims at achieving Pre-Determined Objectives Different from Ownership Decision Making Co-ordination of Activities Work done through People

Achievement of ObjectivesOptimum Utilization of ResourcesFace CompetitionIdentify SWOTSocial BenefitsExpansion, Growth & Diversification of BusinessEmployee MotivationSuccess & Stability of BusinessBuilds a Sound Organization

Functions of Management

Level of Management

Top Mgt ► Board of Directors, CEO, MD, GM

Middle Mgt ► Area and department manager

First line Mgt ► Branch office managers, supervisors

Non Mgt ► Employees

MANAGERIAL ROLES

MANAGEMENT & ADMINISTRATION

• Administration is concerned with the determination of overall corporate objectives, policies & strategies.

• Administration acts as the central controlling authority of an organization.

• It is a legislative Function & entrusted to the top level executives.

• 2 main functions-Planning & Organizing

DEFINITION

“Administration is controlling or running organizations whose prime objective is not making profit.”

Peter Drucker

Higher Level Activity

Part of Management

Integration & Direction

Multiple Responsibilities

Coordination & Control- FPMH

Administrative Activity

Planning & Organizing Function

Thinking & Doing

3 DIFFERENT APPROACHES

Irrespective of distinctions, both Mgmt & Administartion are used synonymously and interchangibly

At present, there are no distictions btwn the 2. Henry Fayol Public & Pvt Sectors

ADMINISTRATION ADMINISTRATION VS VS

MANAGEMENTMANAGEMENT

Functional Areas of Management

• Finance Management

• Production Management

• Personnel Management

• Purchase Management

• Marketing Management

• Inventory Management

PURCHASE MANAGEMENT

• Meaning of Purchases

• Goods well purchased are half sold.

• Purchasing is a major activity for a manufacturing concern.

• What does an organization purchase?

• Definition

OBJECTIVES OF PURCHASING

Procurement of Stock of goods of proper Qty & Qlty

Procurement of Stock at best available price.

Procurement of Stock well in time & at the right place.

Procurement of Stock with minimum wastage, obsolescence or duplication.

Use of Scientific Purchasing to achieve objectives.

SCIENTIFIC PURCHASINGSCIENTIFIC PURCHASING

According to Alford & Beatty, scientific purchasing is, “ the procuring of materials, supplies, machines, tools & services, required for the equipment, maintenance and operation of a manufacturing plant”.

Advantages

Scientific purchasing=Principles of Scientific purchasing

PRINCIPLES OF SCIENTIFIC PURCHASING

Finance and accounting management

Finance and accounting management: Financial and accounting management deals with

managerial activities related to procurement and utilization of fund for business purpose.

Its sub areas are as follows:

Financial accounting: It relates to record keeping of various financial transactions their classification and preparation of financial statements to show the financial position of the organization.

Management Accounting Taxation: This area deals with various direct and indirect

taxes which organization has to pay. Costing: Costing deals with recording of costs, their

classification, analysis and cost control.

Functions of Financial Management

Personnel Management

Personnel Management: Personnel management is the phase of management which deals

with effective use and control of manpower. Following are the sub areas of Personnel management

Personnel planning: This deals with preparation inventory of available manpower and actual requirement of workers in organization.

Recruitment and selection: This deals with hiring and employing human being for various positions as required.

Training and development: Training and development deals with process of making the employees more efficient and effective by arranging training programmes. It helps in making team of competent employees which work for growth of organisation.

Wage administration: It deals in job evaluation, merit rating of jobs and making wage and incentive policy for employees.

Industrial relation: It deals with maintenance of overall employee relation, providing good working conditions and welfare services to employees.

Functions

Procurement of Man-Power (Recruitment & Selection)

Development of Man-Power (Training & Development)Performance AppraisalMotivation & Maintenance of Man-PowerProvision of welfare facilitiesMaintaining Cordial Industrial Relations

Production management

Production management:   Production means creation of utilities by converting raw

material in to final product by various scientific methods and regulations. It is very important field of management.

Various sub-areas of the production department are as follows.

Plant lay out and location: This area deals with designing of plant layout, decide about the plant location for various products and providing various plant utilities

Material management: This area deals with purchase, storage, issue and control of the material required for production department.

Research and Development: This area deals with research and developmental activities of manufacturing department. Refinement in existing product line or develop a new product are the major activities.

Quality Control: Quality control department works for production of quality product by doing various tests which ensure the customer satisfaction.

Importance

Production of useful & good quality products at reasonable prices.

Regular & Continuous supply of goods & services to customers.

Better services to customersOptimum Inventory LevelEmployment OpportunitiesImproves profitability & reputation of a firm.

Marketing management

Marketing management:Marketing management involves distribution of the

product to the buyers. It may need number of steps.

Sub areas are as follows:Advertising: This area deals with advertising of

product, introducing new product in market by various means and encourage the customer to buy thee products.

Sales management: Sales management deals with fixation of prices, actual transfer of products to the customer after fulfilling certain formalities and after sales services.

Market research: It involves collection of data related to product demand and performance by research and analysis of market.

Objectives

To satisfy the customersTo Improve quality of life of peopleTo attain higher salesTo increase business profitsTo work an appropriate marketing mix.

Functions

Inventory Management

The term inventory refers to the goods or materials used by a firm for the purpose of production and sale.

It also includes the items, which are used as supportive materials to facilitate production.

There are three basic types of inventory: raw materials, work-in-progress and finished goods. Raw materials are the items purchased by firms for use in

production of finished product. Work-in-progress consists of all items currently in the

process of production. These are actually partly manufactured products. Finished

goods consists of those items, which have already been produced but not yet sold.

 Importance Of Inventory ManagementInventory management is important from

the view point that it enables to address two important issues:

1. The firm has to maintain adequate inventory for smooth production and selling activities.

2. It has to minimize the investment in inventory to enhance firm's profitability. 

Functions

Efficient use of Production FacilitiesProtection Against Fluctuations in DemandFlexibility in ManufacturingFacilities Quick DeliveryEarns Qty DiscountProvides Hedging Facilities

CONCLUSIONCONCLUSION

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