MANAGEMENT

CHAPTER 1 NATURE & SIGNIFICANCE OF

When India had hardly 250 computers across nation, Shiv Nadar and his passionately driven young team believed that there is huge potential in IT industry. The vision came into in existence in 1976, today HCL is 4 bn US $ company having almost 50k employees and having corporate offices in countries like US, Europe and Japan. HCLs main business is IT hardware manufacturing, system integration and soft wares. HCLs basic plan was to develop Microcomputers which started in 1978 same as the time of Apple. The observers of IT industry believed that this is the birth of an Indian Computer Industry. Shiv was very much known for his risk taking abilities. In 1988 when software industries were booming he foresaw the huge potential in the area of IT education & give birth to NIIT. All credit goes to Mr Shiv Nadar for his strong convictions. Being a CEO of this company, he gives all the credit to the management of the company who handled all the challenges of rapidly changing environment and converted into opportunities.

Management - intro
Management is the process of working with and through others to effectively achieve organizational objectives by efficiently using limited resources in the changing environment. Kreitner Process means various management functions like POSDC Effectively means doing the right task, completing all the activities related to that task and achieving goals. Efficiently means doing the task with minimum cost.

Effectiveness VS Efficiency:
EFFICIENCY EFFECTIVENESS

It refers to doing things with It refers to doing the right minimum cost things or tasks It involves continuous cost- It involves in identifying the benefit analysis right tasks for achieving the goal in stipulated time. The main aim behind efficiency The main aim behind is to minimize the cost and effectiveness is to achieving there by increasing the profit end state result in given time frame.

Characteristics of Management:
1. MANAGEMENT IS GOAL ORIENTED PROCESS: An organization always have set of goals and these goals are the actual reason because of which management is existing. Goal should be clearly stated and it has to be simple. Different org have different goals. E.g. goals of a Reliance fresh and goals of Nature club India. The job of management is to unite the effort of all individual towards achieving these goals. 2. MANAGEMENT IS ALL PERVASIVE: Management activities are common to all type of organizations whether they are economic, social or political. Either managing petrol pump or managing school, management is essential in both the aspect.

3. MANAGEMENT IS MULTIDIMENSIONAL: A. Management of work: All org perform some work. E.g. factories a product is produced, hospitals a patient is cured. So producing the product or curing the person is nothing but a work. Mgmt translates this work is goals and assigns the way of dong it. B. Management of people: This aspect states that Human Resources is an asset of an organization Organization can have all the technologies, but, getting work done through people is always a major task. Mgmt of people have two broad dimensions (i) Dealing with employees as an individuals with diverse needs and (ii) Dealing with employees as a group. C. Management of operations: Every organizations has some basic product and services. This requires production of input materials and making output for consumption. Mgmt of operation is totally incomplete without mgmt of work and mgmt of people.

4. MANAGEMENT IS A CONTINUOUS PROCESS: Management process consist of continuous but separate management functions. [POSDC] Managers perform this functions simultaneously. E.g. Suhasini : one day in planning for future, other day sorting problems with employees, or at some other day giving new instruction of directing to all rural artisans etc. One functions end, the other one starts automatically. 5. MANAGEMENT IS A GROUP ACTIVITY: Organization is collection of many individuals who are having diverse needs. Every member has different purpose of joining the organization, but as the member of the organization they have to work towards achievement of common goals. Achievement of common goals leads to increased team work and coordination and there by achieving individual goals.

6. MANAGEMENT IS DYNAMIC FUNCTION: The functions of mgmt is bound to change with the changing need of an environment. Organization is always connected with social, economic and political factors. Such factors do have significant impact on the working of an organization. Thus for a organization to be successful, they have to change according to the changing needs of an envt. E.g. heavy changes made by McDonalds for surviving Indian markets. In terms of tastes, quality and distribution pattern. 7. MANAGEMENT IS INTANGIBLE FORCE: Management cant not be seen or touched but its presence can be felt in the organization. The effect of mgmt is noticeable when plans are properly executed, employees are happy in terms of their work and responsibilities and complete orderliness is maintained.

Management Objectives:
1. ORGANIZATIONAL OBJECTIVES: A. Survival obj: Its the most basic obj of the organization to survive. Mgmt must ensure that organization atleast covers basic cost so as to survive in the market. B. Profit obj: Only surviving is not enough. Earning profit is also very important, management also has to ensure that org also earns profit. Profit is essential for long term and successful operation of business.

C. Growth obj: Business must add new prospective opportunities so as to grow. Mgmt has to make sure that new ventures are timely taken under consideration Growth of an organization can be measured by increased sales volume, new products introduced, etc. 2. SOCIAL OBJECTIVES: Envt friendly methods of production, employment to disadvantaged sections of the soc, providing basic amenities such as school colleges etc. 3. PERSONAL OBJ: Org is a set of people who have diverse needs. They join org to satisfy their own needs. These may vary from handsome salaries + perks to personal growth and development. Mgmt has to make sure that achieving common goals would complete personal or individual goals.

Importance of Management
1. MANAGEMENT HELPS IN ACHIEVING GROUP GOALS: The main aim behind establishing management is to achieve common goals. To make this happen, a manager, gives common direction to all the individuals for accomplishing common goals. 2. MANAGEMENT INCREASES EFFICIENCY: By doing better P O S D C, a manager would be in a better situation to reduce the maximum cost. Reduction in cost always leads to increased efficiency.

3. MGMT CREATES DYNAMIC ORGANIZATION: All organization always operate in an envt which is constantly changing, because of this management also has strong belief in creating such organization which is flexible and dynamic. If resistance found among employees than it is the duty of mgmt to explain that why the change is necessary and what sort of benefits can be reaped from the change. 4. MGMT HELPS IN COMPLETING PERSONAL GOALS: A manager must motivate and lead his team in such a way that while contributing to the org goal, they are also able to achieve their own individual goals. A manager must ensure proper use of motivational and leadership skills. 5. MGMT HELPS IN DEVELOPING THE SOCIETY: By providing good quality products and services, creating employment opportunities, adopting new technologies etc.

Mgmt as ART

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Art means practical knowledge of the subject Art is an application of knowledge or know how: Mgmt also involves application of certain managerial skills or managerial know how. Art is directed towards concrete results through deliberate efforts: Mgmt is also resulted oriented which involves great amount of human efforts. E.g. maximizing sales, increasing profit, minimizing the cost etc. Art involves creativity: Mgmt is also creative that converts raw material or input into final goods or output. Art is highly personalized: Likewise art, mgmt is also highly personalized because every manager has different and personal approach towards given situation based on their perception. Imp to understand that artist are born rather than made, while in case of mgmt, mangers are always made they do not born.

Mgmt as SCIENCE

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Science refers to systematic body of knowledge acquired through observation and experimentation. Science has systematic body of knowledge: Mgmt also has systematic body of knowledge. Mgmt has its own principal and theory which are developed over a period of time from various theories of ecology, sociology, psychology and mathematics. Science principals are based on experimentation: Mgmt principals are also developed over a period of time by doing continuous experimentation and observation in various organizations. Scientific principals are universally valid: Mgmt principals are not exact as science so they do not stand for universal validity but mgmt principals act as a guidelines so they can be mold in any given mgmt situation.

Mgmt as Profession:

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Profession is an occupation which posses skills in specialized area. Profession has a well defined body of knowledge: Same as profession mgmt also has well defined body of knowledge, which is developed from various principals. Restricted entry: Unlike profession as such there is not restriction of entry in mgmt. Anyone can be called manger irrespective of his educational qualification. Professional association & Ethical code of conduct: There are several association such as AIMA [All India Mgmt Association] but its not compulsion for any manager to join such body. There is no such specific list for the code of conduct Service motive: The basic motive of mgmt is to help its organization achieve stated objectives.

Levels of Management Functions performed by TOP LEVEL MGMT.

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They are senior most executives of the company referred as chairman, COO, CFO, CEO, MD, VP To establish and describe overall objective of the company. To plan (policy formulation), organize (determining the structure) and exercise control over middle and lower levels of management. To decide the overall budget of the organization and budget of the various departments. To decide that how the corporate earnings will be distributed and how much would be retained as re investment of profit. To maintain cordial relations with outside party such as financial institutions, suppliers, govt departments, media etc.

Second level mgmt functions

1. 2. 3. 4. 5.

2nd level mgmt is the link between top mgmt and operative level mgmt. They are subordinates for the top level mgmt and superiors for operative level mgmt. Designation they hold such as Divisional Head, Departmental Head, Operation Manger, Development Manager etc. This 2nd level managers are responsible for implementing strategies of 1st level mgmt and they are also responsible for all the activities performed by operative level mgmt. Functions: Interpreting policies framed by top level management. Ensuring that department has proper amount of personnel. Assigning necessary duties & responsibilities to them Motivating employees to achieve their objectives. Co operating with other departments for the smooth functioning of the business.

Operational level mgmt functions:

These are the managers who have lowest rank in the hierarchy. It consist of foreman, supervisor etc. 1.Translating the plans of middle level mgmt into operation plans. 2. Directing the lower level employees by assigning jobs and thereby evaluating and correcting their work performance. 3. Arranging for necessary tools, materials and other facilities. 4. Ensuring implementation of work as per instruction. 5. Sending information and progress reports to higher level of mgmt. 6. Creating better human relation and conducive work envt.

Mgmt functions
Planning Organizing Staffing Directing Controlling

Co-ordination The Essence of Mgmt

The main job of the manager is to link the diverse group towards the achievement of common goals. The process by which, a manager synchronizes the activities of different departments, is known as Coordination. It is the force that binds all other functions of mgmt. Because of this common thread all the activities such as purchase, production, distribution, sales, finance, collection ensures their continuity in the org. Coordination may be termed as yet another separate function of mgmt but actually it is essence of mgmt bcoz It is inherently available in all the function of the mgmt.

Characteristics of Coordination:
1. IT INTEGRATES GROUP EFFORTS: Coordination unifies diverse activities into purposeful work activity. It gives common focus to group efforts. 2. IT ENSURES UNITY OF ACTION: The main purpose for having coordination is to secure unity of action for the realization of common purpose. It generally act as a binding force and ensures that actions of all the departments are in the direction of achieving common goal. 3. IT IS A CONTINUOUS PROCESS: Its not one time functions. It generally initiates at planning stage and lasts till controlling.

4. COORDINATION IS ALL PERVASIVE: Co ordination is applicable to all the levels as well as all the department of the organization. If co ordination is not made applicable at all the levels than it would always results in over lapping of activities. 5. COORDINATION IS THE RESPONSIBILITY OF MANAGERS: It is the function of every manager in the org. Top mgmt has to coordinate with 2nd level mgmt. 2nd level mgmt interacts with top level as well as 3rd level subordinates. 3rd level coordinates with 2nd level of mgmt. 6. COORDINATION IS DELIBERATE FUNCTION: The function of co ordination is being executed with the deliberate efforts of the manager. Whether the people in the organization cooperate or not but its the duty of the manager to coordinate with them.

Importance of Coordination:
1. Growth in the size of the organization: When organization grows in terms of increased numbers of activities as well as numbers of people than requirement of coordination is must. Other wise integrating the activities of all individuals becomes really difficult. 2. Functional Differentiation: The activity of the organization is always divided into several specialized functions such as purchase, production, finance, sales, marketing etc. Coordination synchronizes the activates of all the department in uniform direction. 3. Specialization: Specialization is a vital important for any organization to survive in competitive world. With the help of coordination organization would in a better situation to achieve specialization in an organization.