BMS- 1st module Business Management & Startups | Principles & Functions of Management

visit website sugarybloom.blogspot,com

Module 1 

Principles & Functions of Management 

Management – Meaning and Scope

Meaning of management

Management involves both acquisition and application of knowledge. It does not go by rule of thumb or intuition alone even though it is considered to be an extension of common sense. Hence, management is a combination of both an art and a science. The scientific approach lies in decision-making, planning and in the appropriate use of technology. The artistic approach to management can be found in the tasks of communicating, leadership and goal-setting. 

Management is essential for all organisations big or small, profit or non-profit, services or manufacturing. Management is necessary so that individuals make their best contribution towards group objectives. Management consists of a series of interrelated functions that are performed by all managers. 

BMS-Module 2 Leadership and Motivation as per new NEP Syllabus

PM - Unit 2 Consumer Behaviour and Market segmentation New

PM- Unit 3-Product and Pricing strategy New

 Definitions of management 

(Note-Students can write any one or two of the given below definitions)

The commonly used definitions of management are :

• Management is defined as the process of planning organising, actuating and controlling an organisations operations in order to achieve coordination of the human and material resources essential  in the effective and efficient attainment of resources.
• Managing is an art or process of getting things done through the efforts of other people.
• Managing is the art of creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals. 
• Management is the process of setting and achieving goals through the execution of five basic management functions (i.e. Planning, Organising, Staffing, Directing and Controlling) that utilise human, financial and material resources.
•  Management is a process or an activity that brings together several varied resources like persons, materials, techniques and technologies to accomplish a task or tasks.
•  Management, as a distinct field of study, is also the body of organised knowledge which underlies the art of management. 

PM - Unit 2 Consumer Behaviour and Market segmentation New

Principles of marketing unit-1  notes as per NEP syllabus 2021-22 click here

Unit 3-Product and Pricing strategy New

Importance of management

The reasons that have made management so important are 

(i) Management helps in achieving group goals: 

Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation. 

(ii) Management increases efficiency: 

The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation. 

(iii) Management creates a dynamic organisation: 

All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change as it often means moving from a familiar, secure environment into a newer and more challenging one. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge. 

(iv) Management helps in achieving personal objectives: 

A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership the management helps individuals to develop team spirit, cooperation and commitment to group success.

 (v) Management helps in the development of society: 

An organisation has multiple objectives to serve the purpose of the different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of society. It helps to provide good quality products and services, creates employment opportunities, adopts new technology for the greater good of the people and leads the path towards growth and development. 

Scope of management

Management is an all pervasive function since it is required in all types of organised endeavour. Thus, its scope is very large.

Clearly defined responsibilities, concepts, theories and principles related to managerial functions define the scope of management. Here are the various aspects of this.

1.Scope in Financial management

Every enterprise gives high priority to financial management because effective financial management ensures there are fair returns to stakeholders, proper estimation of capital requirements and laying down optimal capital. 

2. Scope in Marketing Management

The scope of management in marketing extends to planning, organising, directing and controlling activities in the marketing department. Identifying customer requirements is crucial for providing business solutions.Marketing management ensures that available resources are properly utilized and the best possible outcomes are achieved.

3.Scope in Personnel management

This aspect of management is extremely important as employees form teams and teams drive an organisation's goals. Individual productivity also contributes to overall efficiency. Without attending to employee needs and wants, an organization is likely to struggle.

4.Scope in Production Management

When raw materials are converted to finished products and oversee the planning and regulation, you’re engaging in production management. Without production,  organizations can’t generate interest or profits as the  final product must fulfil customer requirements. 

5.Scope in Office Management

This includes controlling and coordinating all office activities to achieve an organization’s goals and targets. For example, an administration’s efficiency impacts a business significantly. The more organised the departments and responsibilities are, the more effective an organization is.

Principles of management

General Principles of Management

The basic principles of management are provided by F.W Taylor, Henry Fayol and Charles Barnard,respectively 

i)Taylor’s Principles

The fundamental principles that Taylor saw underlying the scientific approach to management may be summarised as follows: 

• Replacing rules of thumb with science (organised knowledge); 

• Obtaining harmony in group action, rather than discord; 

• Achieving cooperation of human beings, rather than chaotic individualism;

 • Working for maximum output, rather than restricted output; and

 • Developing all workers to the fullest extent possible for their own and their company’s          highest prosperity. 

ii) Fayol’s Principles

Fayol listed fourteen principles based on his experience. They are summarised below: 

• Division of work: Specialisation allows workers and managers to acquire an ability, sureness, and accuracy which will increase output. More and better work will be produced with the same effort.

 • Authority: The right to give orders and the power to exact obedience are the essence of authority. Its roots are in the person and the position. It cannot be conceived of apart from responsibility. 

• Discipline: Discipline is composed of obedience, application, energy, behaviour and outward marks of respect between employers and employees. It is essential to any business. Without it no enterprise can prosper. It is what leaders make it. 

• Unity of command: For any action whatsoever, an employee should receive orders from one superior only. One person, one boss. In no case is there adaptation of a social organism to a duality of command. 

• Unity of direction: One head and one plan should lead a group of activities. It is necessary that all sing the same objective and that is one head, one plan. 

• Subordination of individual interest to general interest: The interest of one person or group in a business should not prevail over that of the organisation.

 • Remuneration of personnel: The price of services rendered should be fair and should be satisfactory to both employees and employer. A level of pay depends on an employee’s value to the organisation and on factors independent of an employee’s worth - such as cost of living, availability of personnel and general business conditions

• Centralisation: Everything that serves to reduce the importance of an individual subordinate’s role is centralisation. Everything that increases the subordinate’s importance is decentralisation. All situations call for a balance between these two positions. 

• Scalar chain: The chain formed by managers from the highest to the lowest is called a scalar chain or chain of command. Managers are the links in the chain. They should, communicate to and through the links. Links may be skipped or circumvented only when superiors approve and a real need exists to do so. 

• Order: This principle is the simple advocacy of a place for everyone, and everyone in her/his place; a place for everything, and everything in its place. The objective of order is to avoid loss and waste. • Equity: Kindliness and justice should be practised by persons in authority to extract the best that their subordinates have to give. 

• Stability of tenure of personnel: Reducing the turnover of personnel will result in more efficiency and fewer expenses.

 • Initiative: People should be allowed the freedom to propose and to execute ideas at all levels of an enterprise. A manager who is able to permit the exercise of initiative on the part of subordinates is far superior to one who is unable to do so. 

• Esprit De Corps: In unity there is strength. Managers have the duty to promote harmony and to discourage and avoid those things that disturb harmony.

 iii) Barnard’s Principles 

In determining that the task of executives (by which he meant all kinds of managers) was one of maintaining a system of cooperative effort in a formal organisation, Barnard addressed herself/himself first to the reasons for, and the nature of, cooperative systems.  Physical and biological limitations of individuals lead them to cooperate, to work in groups; while the basic limitations are physical and biological, once people cooperate, psychological and social limitations of individuals also play a part in inducing cooperation. The act of cooperation leads to the establishment of a cooperative system in which physical, biological, personal, and social factors or elements are present

• A managerial principle is a broad and general guideline for decision making and behaviour. 
• For example while deciding about promotion of an employee one manager may consider seniority, whereas the other may follow the principle of merit. 

• Principles of management deal with human behaviour  and must be applied creatively according to the situation
•  all the principles have to keep pace with the changing human behaviour

• Principles are guidelines to take decisions or actions while practising techniques. They are  guidelines for behaviour. 
• Principles of management are formed after research in work situations, which are technical in nature. But while practising principles of management, businesses have to fulfil social and ethical responsibilities towards society

Managerial  Functions

Experts have identified several managerial functions as important elements of management. Henry Fayol has recommended five basic managerial functions namely, planning, organising, commanding, coordinating and controlling

1.Planning 

Planning is a bridge taking us from where we are to where we want to reach. It is the process of determining in advance what should be accomplished and how to do it. In other words, it is an analytical process of establishing goals, objectives and targets, assessing the future, premising, generating and evaluating alternatives, selecting programs, projects or courses, estimating resources, preparing the plan document with derivative plans and implementing the plan. 

Four important characteristics of planning are 

• (i) The purpose of every plan and all derivative plans is to facilitate the accomplishment of enterprise purposes and objectives; 

• (ii) Planning is the “first” function and logically precedes the execution of all other managerial functions; 

• (iii) Managers at all levels are involved in planning; 

• (iv) The efficiency of a plan is measured by the amount it contributes to the purpose and objectives as offset by the costs of other unsought consequences required to formulate and operate. In other words, planning is characterised by its primacy, efficient contribution to purpose and objectives and all pervasiveness. 

2.Organising 

Organising is the process of prescribing formal relationships among people and resources (i.e., personnel, raw materials, tools, capital, etc.) to accomplish the goals. 

Organising involves: 

• analysing the entire activities of an organisation into homogeneous types of works and jobs; 

• sorting and grouping the resulting works and jobs into a logical structure; 

• assigning these activities to specific positions and persons; and 

• providing a means for coordinating the efforts of individuals and groups

3.Staffing

Staffing deals with providing the right type of persons to man them. Indeed persons are the key to the effective functioning of any organisation. In fact, the real strength of an organisation is its personnel; they can make or mar the organisation. Staffing is the formal process of ensuring that the organisation has qualified workers available at all levels to meet its short and long term objectives. 

This function includes 

(i) Human resource planning

(ii) Recruitment and selection 

(iii) Training and development

(iv) Rewards and compensations

(v) Health and safety

(vi) Career planning and management

(vii) Employee assistance, coaching and orientation

(viii) Performance appraisal.

4.Directing

Directing  is aimed at getting the members of the organisation to move in the direction to understand and contribute effectively and efficiently to the attainment of enterprise objectives . In other words, directing is the managerial function that enables managers to get things done through persons, both individually and collectively. Directing deals with leading and motivating the human resources to give out the best. It is the most interpersonal aspect of management

5.Controlling

Controls are guidelines for the organisation to perform according to set standards of efficiency and quality. Control implies accountability, and the obligation of the staff at all levels, of reporting to a higher authority on their productivity both in terms of quality and quantity. In simple terms, controlling can be defined as the process of comparing actual performance with standards and taking any necessary corrective action. 

Hence, the control process consists of 

(i) establishment of standards 

(ii) measurement of performance, and

(iii) correction of deviations. 

Task & Responsibilities of Professional Manager. 

A professional manager always has the company’s overall perspective in mind and all the actions are guided by the company’s objectives irrespective of the managerial level one is working at. The most important characteristic of a professional manager is that he or she is responsible for performance. Managing involves collecting and utilising resources (money, men, materials and machines) in the most optimal manner for achievement of some pre-determined objectives or results. It is the professional manager’s responsibility to utilise resources to produce the required results. Responsibility and performance are really the key words in defining a manager’s role. Performance implies action, and  action necessitates taking specific steps and doing certain tasks. 

The various tasks which a manager is expected to do to produce results are :

 1. Providing  Purposeful Direction 

A manager has to first set objectives which the firm must achieve. Objectives provide the direction in which the firm must move. Having decided upon the objectives, the manager must constantly monitor the progress and activities of the firm to ensure that it is moving in the desired direction. This is the first and foremost task of every manager. 

All actions and decisions must be evaluated on the basis of their contribution towards achievement of the company’s objectives. All movements and actions must be consistent with achievement of the objectives. To ensure consistency it is important that the manager carefully thinks through each alternative course of action and evaluates its potential to contribute towards attainment of objectives. 

 2. Managing Survival and Growth 

Ensuring survival of the firm is a critical task of the manager.  The manager has also to actively seek growth. No matter how big or powerful a firm may be today, it is sure to be left behind in the race by newer, healthier and more efficient firms if it is does not pursue growth . 

Two sets of factors impinge upon the firm’s survival and growth: i) The first is the set of factors which are internal to the firm and are largely controllable. These internal factors are choice of technology, efficiency of labour, competence of managerial staff, company image, emphasis on customer care, financial resources, etc. ii) The second set of factors influencing the firm’s ability to ensure survival and growth are those which are external to the firm and over which it has little or no control.

 These external, environmental factors refer to government policy, laws and regulations, changing customer tastes, attitudes and values, increasing competition or even natural calamities. 

 3. Maintaining Firm’s Efficiency in Terms of Profit Generation 

A manager has to perform and produce results, in the most efficient manner possible. To produce results a manager requires inputs in the form of money, men, materials and machines. The more output that the manager can produce with the same input, the greater will be the profit generated. 

 Profit is essential for the survival and growth of any business.  Business activity is undertaken to satisfy a need of the society in a manner which yields profits. A business is not a philanthropic or charitable activity which is run merely to provide some goods and services irrespective of whether it is making a profit. Profit generated can be used for expansion, upgrading of technology, growth or paying dividends. 

A profitable firm can turn unprofitable because of obsolete technology, inability to meet high fixed cost structures, high levels of wastage, or simply because the product or service is no longer in demand by customers. 

4.Meeting the Challenge of Increasing Competition

In today’s fast changing world, one of the very critical tasks of every manager is to prepare for the increasing competition. Competition is increasing in terms of more competitors, more products and services, wider variety of products, better quality of products and a customer who is, today, better informed and more aware than ever before. The increasing reach and popularity of electronic media as a means of information has also contributed to the increasing competition. The manager today has more potential customers to sell to and easy access to these customers. Yet the market is crowded with many competitors wooing the same customers

5.Managing for innovation

In the context of business, innovation has to be defined in terms of the additional value it imparts to the existing products or services. Value is not expressed in terms of increased cost or price but in terms of the difference it makes to the customer.

The manager who has his or her finger on the pulse of the market can quickly find out under the surface changes and shifts taking place and accordingly modify the product or service to match the customer requirement. 

It is not the absolute amount of money and effort which a firm invests in research and development but its ability to quickly adapt and place in the market the improved product, which accounts for its innovativeness. This calls for flexibility in organisational structure to accommodate the necessary changes. In the final analysis, it is that manager who inculcates and nurtures curiosity and an open mind, and combines it with market feedback, who will emerge as winner in the race in which innovation is at a premium. 

6. Building human organisation

 Humans are by far the most critical resource of an organisation. No amount of money, materials, and machines can produce results by themselves. Machines can be programmed to take over routine, repetitive jobs but only a human brain can design the machines and again you need humans to manage them.

7.Maintaining balance between creativity and conformity

Developing a new idea, concept, product or service can be very creative, challenging, and exciting and  to translate this idea into a successful business requires detailed planning and organising of finance, marketing, administration, etc. 

While new product development involves a high degree of creativity, its transformation into a successful business reality involves carrying out relatively more and more repetitive tasks.  A manager is lucky if elements of both creativity and conformity can be found in the same individual. 

8.Postponing managerial obsolescence 

Managers and executives, after many years of work experience, often find themselves having reached a plateau where, the prospect of enhanced status, increased pay and perks are no longer motivators enough to work hard; and on the other, they find they are unable to relate to the latest managerial knowledge and skills and feel totally lost.

 The problem of managerial obsolescence occurs when managers become unproductive, or out of date, or both. In the situation where lack of motivation seems to be the cause, the solution lies in redesigning their job content to make it more meaningful. For example, an aerospace company designates its senior engineering managers as consultants to its groups of young engineers, thus providing the right outlet for their rich experience.

9.Meeting the challenge of change 

One of the important tasks which every manager has to perform is that of a change-agent. The social, political, economic, technical and cultural environment in which the firm operates is always changing. The company must keep pace with these developments and change accordingly. Similarly, within the organisation, new types of production technology may be introduced, the existing product lines may be phased out, formal procedures and techniques for planning, resource allocation, job appraisal, etc. may be introduced. All these imply a change. 

10.Coping with growing public criticism and political opposition

Large business groups are often the target of political and public criticism because of their apparent power and clout arising out of concentration of economic power. 

 The criticism is not always evoked by facts but because of ideological, political or personal reasons. But sometimes the criticism may be founded on facts. For example environmental laws are often floated by resort developers particularly in coastal areas or in the hills.

 The best way to avoid political and public criticism is to keep all activities absolutely legal and above board. Secondly, the manager should keep a low profile of his or her company to avoid drawing unnecessary attention to the firm’s activities. And finally, the manger should feed correct information to the media and political parties to ensure that they view the firm in the right perspective. 

11. Coping with increasing levels of aspiration

Improvement in information technology is resulting in an increasing trend towards democratisation of the society. People in one part of the world know more about people and events in other parts of the world. Similarly, people belonging to one socio-economic segment of society know more than ever before the life styles of people in higher socio-economic segments. 

A manager must bear this fact in mind while dealing with blue-collar workers because there is bound to be a vast gap between their levels of aspirations and reality. If the manager is ignorant and insensitive to this gap, the workers’ resentment and frustration is bound to spill over in ways which can prove disruptive and destructive to the firm’s working.

12.Maintaining relations with various society segments 

A firm fulfils a need or needs of the society and has a two way interaction with it. It seeks inputs in the form of money, men, materials, machines and technology from the society and processes them to produce goods and services for consumption by the society. 

In course of this interaction the manager has to deal with various society segments, such as the labour market from which it recruits its people, suppliers of machines and technology, banks and financial institutions who supply money, the government which defines the scope and parameters within which the company has to operate, the retail outlets or agencies which stock and sell the products and the customers who buy the product. The manager’s attempt should always be to create positive impacts and  minimise any negative  impacts during interaction with the segments listed above.

Additional English first sem

First sem The Imp and the crust

First sem Sweets for Angels

1st sem Business Management and Startups as per new NEP syllabus 2021-22

BMS-Module 1 Principles and functions of management new NEP syllabus

BMS-Module 2 Leadership and Motivation as per  B.com new NEP SYLLABUS

PM- Principles of Marketing as per new NEP Syllabus 2021-22

Principles of marketing Unit 2 Consumer behaviour and market segmentation

Principles of marketing unit-1  notes as per NEP syllabus 2021-22 click here

First semester English Chapter 1 The Last Leaf

First semester English Chapter 2 All creatures great and small

First semester English Chapter 3 The Heart of a Tree

First semester English Chapter 4 Daughter

First semester English Chapter 5 The Ploughman

First semester English Chapter 6 My Teacher

First semester English Chapter 7 A conversation with a reader

click here ICHR solved previous question paper part 1

Click here ICHR solved previous question paper part 2

Go to Home page

Syllabus of module 1

 Module No. 1: Principles & Functions of Management (12 Hrs)

Introduction – Meaning – Definitions – Importance & scope of management - Principles of Management. Managerial Functions: Meaning, Definition, Characteristics, benefits & Limitations of Planning, organizing, Directing, Coordinating & Controlling - Task & Responsibilities of Professional Manager.