Unit 1

Management Functions of management Authority and responsibility Social responsibility of a manager Social responsibility and social responsiveness Ethics and management

INTRODUCTION

Economic system is a complex system of activities that must form the background of management. Goods and services that consumers need must be supplied and the means by which they can purchase these goods and services must be provided. Managements role must therefore be to provide this in the most efficient manner by combining factors of production and distribution and directing the efforts of the people concerned to the given purpose. Enterprises need plans, direction and control and all these will function only with effective organization. These elements, planning, directing, controlling, staffing, 2 and organizing are called managerial functions.

5 Ms of Management
1. 2. 3.

4.
5.

Money Manpower Materials Machinery Methods

DEFINITIONS OF MANAGEMENT:

F.W. Taylor - Art of knowing what you want to do and then seeing that it is done the best and cheapest way. Henry Fayol To Manage is to forecast, to plan, to organize, to command, to co-ordinate and to control. Peter F.Drucker Management is work and as such it has its own skills, its own tools and its own techniques.

Management is the art of getting things done through and with people.

CHARACTERISTICS Management is a distinct process. Management is an organized activity Management aims at the accomplishment predetermined objectives. Management is both a science and an art. Management is a group activity Management principles are universal in nature

of

Why study management?

1. The more efficient and effective use of scarce resources that organizations make of, the greater will be the relative wellbeing and prosperity of people in that society

Why study management?

2. Helps people deal with their bosses and coworkers 3. Opens a path to a well-paying job and a satisfying career.

FUNCTIONS OF MANAGEMENT
PLANNING: Plans give the org. its objectives and set up the best procedures for reaching them.

ORGANISING: It is the process of arranging and allocating work, authority & resources among organizations members so they can achieve the organisations goals.

STAFFING or HRM: In staffing we recruit, select, train and appraise personnel required by the organization

LEADING/DIRECTING: It involves directing, influencing, and motivating employees to perform essential tasks.

CONTROLLING: There are FOUR main elements of controlling: 1. establishing standard of performance 2. measuring current performance 3. Comparing these performance to the established standards 4. taking corrective action

 PLANNING:-

Planning is deciding in advance, what is to be done. - M.H.Newman A plan is a trap laid to capture the future. - Allen Planning is deciding in advance the objectives of the organisation in the short as well as long run, and the means for attaining them.

In simple words, planning is deciding in advance what is to be done, what resources will be required, when, where, how and by whom it is to be done.

In short, during planning one needs to ask oneself the following: What am I trying to accomplish i.e. what is my

objective? What resources do I have and do I need to accomplish the same? What are the methods and means to achieve the objectives? Is this the optimal path?

 Nature

of Planning:-

Planning is a continuous and flexible process. Planning concerns all management:-

Time span of planning: Long: Top Management Medium: Middle Management Short: Lower Management Plans are arranged in a Hierarchy:CORPORATE PLANS DEPARTMENTAL PLANS SECTIONAL PLANS

UNIT PLANS

 Planning commits an organisation into the future Planning contributes to the objective. Planning is a selective process Planning is directed towards efficiency Planning is forward - looking.

 Importance

of Planning:Planning offsets future uncertainty and change Planning helps in management by objectives It helps in coordination Economy in operation Helps in control Helps in Executive development

Organising: It is a process of defining and grouping the activities of the enterprise and establishing the authority - responsibility relationship among them . - Prof. Haimann This is the identification and classification of the required activities, the grouping of activities necessary to attain objectives, the assignment of each grouping to a manager with authority and the provision of coordination. . In organizing, structures are created, relationships established and resources are allocated for the accomplishment of activities

In organizing, plans are reviewed, tasks to be performed are listed, tasks are grouped into jobs that can be done by an individual, departments are created, work is assigned to individuals and authority is delegated

Process of Organising:1. Determination of specific activities required for

the implementation of plans. 2. Logical grouping of these activities into jobs, and regrouping of jobs into functions and departments. 3. Assignment of jobs to specific people and positions 4. Linking them through a network of authorityresponsibility relationships.

Significance of Organising:

Clear-cut authority - responsibility relationships Pattern of communication Location of Decision centers Balancing of activities Stimulating Creativity Encouraging Growth Making use of technological improvements

Authority
Formal

and legitimate right of a manager to make decisions and issue orders Allocate resources to achieve organizationally desired outcomes Authority is distinguished by three characteristics Authority is vested in organizational positions, not people Authority is accepted by subordinates Authority flows down the vertical hierarchy
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Responsibility
The

duty to perform the task or activity an employee has been assigned are assigned authority commensurate with responsibility

Managers

Accountability

Mechanism through which authority responsibility are brought into alignment

and

People are subject to reporting and justifying task outcomes to those above them in the chain of command Can be built into the organization structure

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Delegation
Process managers use to transfer authority and responsibility Organizations encourage managers to delegate authority to lowest possible level
Ethical Dilemma: A Matter of Delegation

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Delegation
Give thorough instructions Maintain feedback Evaluate and reward performance

Techniques for Delegation

Delegate the whole task

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Ensure that authority equals responsibility

Select the right person

STAFFING Staffing involves manning the organizational structure through proper and effective selection, development and appraisal of people to fill the roles designed into the structure.

Staffing is also known as Human Resource Management. In other words, it is the management function devoted to acquiring, training, appraising, and compensating employees Staffing process involves: 1)-Development of organizational structure. 2)-Assessment of manpower required and available. 3)-Assessment of their quality, qualification and skills for the job. 4)-Appraisal Strength and shortcomings 5) -Conduct development programs

DIRECTING:Directing involves the initiation of action and it entails three elements that are action oriented innature. These are: Motivation, Communication Leadership. Leading is the process of influencing and motivating people so that they will contribute to organization and group goals. .

Control: It is the process of checking actual performance against the agreed standards of plans with a view to ensuring adequate progress and satisfactory performance. The managerial function of controlling is the measurement and correction of the performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

Characteristics of Control: Review of Past Events Forward Looking Action-Oriented Continuous Process Flexible Process Control does not curtail the rights of individuals.

 Relationship

between Control &

PERFORMANCE CONTROL

Planning:PLANNING

Process

of Control:1. Establishment of standards 2. Measurement of standards 3. Comparison of Performance with standards 4. Taking corrective action

Managerial Role A manager is a person who performs the function of planning, organising, staffing, directing and controlling for the accomplishment of the objectives of an undertaking. Social Responsibility of Business Social responsibility of business means obligation to act in a manner which will serve the best interest of the society . Being Socially Responsible means that people and organisations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues Social Responsibility towards Different interest groups

Reasons behind being socially responsible: Innovation Social entity Self interest Moral justification Public image Avoidance of government intervention Consumers awareness Balance of responsibility and power Social Responsibility helps to cut your business costs: Environmental initiatives such as recycling and conserving energy increase in-house efficiency and cut costs. Introducing a corporate social responsibility program gives you a good reason to examine and improve on your spending! But all in all, corporate social responsibility makes financial sense, adds meaning to your work and makes everyone feel good!

Two important tips :Before you rush into your own corporate social responsibility program remember:

You must implement your program strategically. Just giving a donation is not enough. The best corporate social responsibility programs are based on a two-way relationship with you and each of the organisations you are involved with. This allows both parties to be challenged and grow together.
Your corporate social responsibility commitments should be in line with the values of your company, customers and staff. Most importantly, they must be based on a genuine concern for people and the community. You do not want the program to back-fire; making you seem hypocritical. A poor strategy will cause people to become cynical and distrustful of your company.

 Tisco setup Tata steel Rural Development society which has launched community development project in 600 villages spread over Bihar, Orissa etc.. Microsoft corporation donated two million for the control of AIDS in India. Finolex industries started the Hope foundation in 1979 for the detection and treatment of cancer. Lupin Laboratories launched lite for life program in 1973 to control tuberculosis in India.

Values, Morals/Beliefs and Ethics morals refers to any generally accepted customs of conduct and right living in a society. These are customs having high degree of social acceptance which indicate what people do, while ethics represent what people should do. Values are our fundamental belief. Values are convictions and a framework of philosophy of an individual on the basis of which he judges what is good or bad, desirable or undesirable, ethical or unethical. Values do not encompasses all beliefs, but only those beliefs that define importance and worth. Values are global beliefs that guide actions and judgments across a variety of situations. Ethics and management Business ethics refers to the moral principles which should govern business activities. They are concerned with determining what is right and what is wrong while doing the business from the point of view of the society.

 Attitude:the way a person feels about something a person, a place, a commodity etc. Beliefs:a belief reveals what one supposes to be true. Values:it reveals basic idea about what is good or bad, what is right or wrong etc.. workers should be honest to their work is a statement of value. Morals:are values that we attribute to a system of beliefs that help the individual define right v/s wrong, good v/s bad. Ethics:it is the study of how people make those judgments about what is good and right behaviour .

Nature of ethics Business ethics is an umbrella term which covers all business practices which are desirable from the point of view of the society. ethics coexist with law, but has a much broader coverage. concept of equity is implied ethics emphasize on making a business honest, fair and responsible citizen. ethics create self-imposed discipline on the part of the business firm. Examples of ethical business practices are : To charge fair prices from the customer . to use fair weights for measurement of commodities. To pay taxes to the govt. honestly. To give fair treatment to the workers.

Determinants of business / managerial ethics

Social Factors Economic Factors Cultural Factors Political Factors Organisational Factors Institutional Codes

 Some examples of values followed by top management of companies include the following: Service to customers Innovation and creativity Safety of product and processes Honesty Loyalty to company Achievement Gender Equality