Chapter 1 : Nature and Significance of Management

NATURE AND SIGNIFICANCE OF MANAGEMENT

Importance II I • I

• Process • Top • Planning

• Effectiveness Management • Organising
• Etliciency • Middle • Stalling
Management • Directing
• Systematised • Existence of • Well Defined • Supervisory • Controlling • Coordination • Growth in size
• Conservation Body of Theoretical Body of Management Integrates • Functional
• Survival • Financial Needs
of Natural • Social Needs Knowledge Knowledge Knowledge Group Etlorts Differentiation
• Profit • Personalised • Restricted • Coordination • Specialisation
Resources • Higher Level • Principles
• Growth Application Entry Ensures Unity
• Using Needs Based on
Environment Experiments • Based on • Professional of Action
Friendly and Practice and Association • Coordination is
Methods of Observations Creativity • Service a Continuous
• Management is a Goal • Management helps Motive Process
Production, etc. • Universal
Oriented Process in Achieving G10up Validity • Ethical Code • Coordination
• Management is all Goals of Conduct is a Pervasive
Pervasive • Management
Function
• Management is Increases Efficiency
• Coordination
Multidimensional- • Management is the
Management ot Work, Crea!es a Dynan11r.
Responsibility
People and Operations Orgarn, at1Gn
ot All Managers
• Management is a • Management Helps
• Coordination
Continuous Process in Achieving Pr.rsonal
is a Deliberate
• Management is a Group Dbjr.1.t1vcs Function
Activity • Management Helµs in
• Managemijnt is a the Development of
Oynamic Function Society
• Management is a
Intangible Force

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 Chapter 2 · Principles of Management

PRINCIPLES OFMANAGEMENT
I I

,,
..
Nature of Principles of Management
..
ISignificance of Principles of Management I I •
Henri Flemy Fayol's Principles I
''
..
IF.W. Taylor Scientific Management I
+
• Universal Applicability
• General Guidelines
i
• Providing Managers with
Useful Insight into Reality
•
•
i
Division of Work
Authority and Responsibility
I
.. I
• • I I
..
Principles Techniques
• Formed by Practice and • Discipline
Experimentation
• Flexible
• Optimum Utilisation of
Resources
• Scientific Decisions
•
•
Unity of Command
Unity of Direction • Science, not
+ • Functional
• Mainly Behavioural • Meeting Changing Environment • Subordination of Individual Rule of Thumb Foremanship
• Cause and Effect Relationships Requirements Interest to General Interest • Harmony, not • Standardisation
• Contingent • Fulfilling Social Responsibility • Remuneration of Employees Discord and
• Management Training, • Centralisation and • Cooperation, Simplification of
Education and Research Decentralisation not Work
• Scalar Chain Individualism • Method Study
• Order • Development of • Motion Study
• Equity Each and Every • Time Study
• Stability of Personnel Person to His • Fatigue Study
• Initiative or Her Greatest • Differential
• Espirit de Corps Efficiency and Piece Wage
Prosperity System

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 Chapter 3 : Business Environment

I BUSINESS ENVIRONMENT
I
•r
+
I Characteristics l
+ +
Ihnportance of Business Environment I IDimensions of Business Environment •
I LPG Policy I
+
IFeatures of Demonetisation I
+Policy Changes I IManagerial Responses
IImpact ofonGovernment + to Change in I
•
~
Totaity of External Forces
+
• It Enables the Firm to Identify •
~
Economic Environment
+
• Liberalisation
+
• Demonetisation is Viewed as a
Business and Industry
i
Business Environment

• Specific and General Forces Opportunities and Getting the
• Inter-Relatedness First Mover Advantage.
• Dynamic Nature • It Helps the Finn to Identify
• Uncertainty Threats and Early Warning
• Complexity Signals.
• Relativity • It Helps in Tapping Useful
Resources.
• It Helps in Coping with Rapid
Changes.
• It Helps in Assisting in Planning
and Policy Formulation.
• It Helps in Improving
Performance.
• Social Environment
• Technological Environment
• Political Environment
• Legal Environment
• Privatisation Tax Administration Measure.
• Globalisation • Tax Evasion will no Longer be
Tolerated.
• Demonetisation Led to Tax
Administration Channelising
Savings into the Formal
Financial System.
• Demonetisation Creates a
Cashless or Cash Lite Economy.
+
• Increasing Competition • Diversification Spree
• Mora Demanding Customers • Joint Venture
• Rapidly Changing Technological • Brand Building
Environment • Use of Latest Technology
• Necessity for Change • Sharply Improved
• Need for Developing Human Compensation Levels
Resource • Customer Focus
• Market Orientation
• Loss of Budgetary Support to
Public Sector

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• Planning Focuses on Achieving
Objectives
• Planning is a Primary Function
of Management
• Planning is Pervasive
• Planning is Continuous
• Planning is Futuristic
• Planning Involves Decision
Making
• Planning is a Mental Exercise
• Planning Provides Directions
• Planning Reduces the Risk of
Uncertainty
• Planning Reduces Overlapping
and Wasteful Activities
• Planning Promotes Innovative
Ideas
• Planning Facilitates Decision
Making
• Planning Establishes Standards
for Controlling
Chapter 4 : Planning
PLANNING
Types of Plans
• Planning Leads to Rigidity • Setting Objectives
• Planning may not Work in • Developing PremiSl!s
Dynamic Environment • Identifying Alternative Courses
• Planning RJduces Creativity of Action
• Planning Involves Huge Costs • Evaluating Alternative Courses • Policies • Budget
• Planning is a Time Consuming • Selecting an Alternative • Procedures • Programmes
Process • Implementing the Plan • Methods
• Planning does not Guarantee • Follow-up Action • Rules
Success
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 Chapter 5 : Organising

ORGANISING

Types of Organisation Structure Types of Organisation Delegation of Authority

• Benefits of • Identification and

Specialisation Division of Work
• Clarity in Working • Departmentalisation Formal
Relationship • Assignment of Duties
• Optimum Utilisation • Establishing Reporting
Disadvantages Importance
of Resources Relationships
• Expensive Responsibility Accountability • Develops
• Adaptation to Change Advantages Advantages Disadvantages
• Conflicts Initiative Among
• Effective • Product • Faster Spread of • Spreads
Advantages • Organisational Authority Subordinates
Administration Specialisation Advantages Information Rumours
• Functional Interest • Develop
• Development of • Greater • Fixation of • Fulfils Social • Resistance to
Specialisation Ignored Managerial
Personnel Accountability Responsibility Needs Change
• Better Talent for the
• Expansion and • Flexibility and • Clarity of Duties • Fills • Priority to
Control and Inadequacies of Future
Growth • Unity of Group Interests
Coordination Initiative • Effective • Quick-Decision
Command Formal Structure
• Efficiency • Expansion and Management Making
• Minimises Growth • Accomplishment • Employee • Relief to Top
Costs of Organisational Development Management
• Facilitates Objectives • Motivation of • Facilitates
Training • Stability Employees Growth
• Proper • Facilitation of • Better Control
Attention Disadvantages Disadvantages Growth
• De-emphasis on • Procedural Delays • Basis of
Organisational • Lack of Initiative Management
Objectives • Difficult to Fully Hierarchy
• Problems in Understand • Better
Coordination Human Coordination
• Inter-Departmental Relationships
Conflicts
• Inflexibility
• Difficulty in Fixing
Accountability

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• Directing Initiates
Action
• Directing Takes Place
at Every Level of
Management
• Directing is a
Continuous Process
• Directing Flows from
Top to Bottom
Motivation
• Maintains Day-to-Day
Contact
• Link between Workers
and Management
• Helps in Maintaining
Group Unity
• Ensures Performance
of Work
• Provides on the Job
Training
• Builds High Morale
Amongst the Workers
• Gives Feedback
Chapter 7 : Directing
DIRECTING MOTIVATION
Elements L - - ---"T_ ___, Maslows' Need
Hierarchy Theory
• Initiates Action • Internal Feeling
• Integrates Employees • Goal Directed • Basic Physiological
Efforts Behaviour Needs Financial Incentives Non-Financial Incentives
• Guides Employees • Motivation can be • Safety/Security
• Facilitates either Positive or Needs
Introduction of Change • Pay and Allowances • Status
Negative • Social Needs
• Brings Stability • Productivity Linked • Organisational
• Motivation is a • Esteem Needs
and Balance in the Wage Incentives Climate
Complex Process • Self Actualisation
Organisation • Bonus • Career Advancement
• Profit Sharing Opportunity
• Co-partnership • Job Enrichment
• Retirement Benefits • Employee Recognition
• Perquisites Programmes
Communication Leadership • Job Security
• Employee
Participation
Features • Employee
Emplowerment
• Indicates the Ability • Autocratic Style
of an Individual to • Democratic Style
Influence Others • Laissez Faire
• Tries to Bring Change
in the Behaviour of
People
• Indicates Interpersonal
Relations Between
Leaders and Followers
• Aims to Achieve
Common
Organisational Goals
• Continuous Process
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 COMMUNICATION _ ]

~
i
sures to Improve Co~ munica1ion-\

- + -·- -
• Sender I-Clarity the Ideashe lore
Communication

I
• Message
Informal Psychological Barriers Organisational Barriers Personal Barriers
• Encoding • Communicate According
• Media lo the Needs of Receiver
• Decoding • Consult Others before
• Badly Expressed Message • Premature Evaluation • Organisational Policy • Fea, o! Challenge to Communicating
• Receiver
• Words or Symbols with • Lack of Attention • Rules and Regulations Authority • Be Aware of Language,
• Feedback • Loss by Transmission and
Different Meanings • Status • Lack of Confidence Tone and Content of
• Noise Poor Retention
• Faulty Translations • Complexity in of Superior on his Message
• Unclarified Assumptions • Distrust Organisation Structure Subordinates \ • Convey Helplul and
• Upward
• Technical Jargon • Organisational Facilities • Unwillingness to Valuable lhings
• Downward
• Body language and Gesture Communicate • Consistency of Message
Decoding • Lack of Proper Incentives

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Nature
• Goal Oriented
• Pervasive Function
• Continuous Process
• Controlling is Both a
Backward Looking as Well
as Forward Looking Function
Chapter 8 Controlling
CONTROLLING
Planning and Controlling Relationship Process
• Accomplishing • Controlling is Blind or • Setting Performance
Organisational Goals Aimless without Planning Standards
• Judging Accuracy of • Planning without • Measurement of Actual
Standards Controlling is Meaningless Performance
• Making Efficient Use of or Useless • Comparing Actual
Resources • Planning is Prescriptive and Performance with
• Improving Employee Controlling is Evaluative Standards
Motivation • Planning and Controlling • Analysing Deviations
• Ensuring Order and both are Forward Looking • Taking Corrective Action
Discipline • Planning and Controlling
• Facilitating Coordination in both are Backward Looking
Action
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 Chapter 9 : Financial Management

FINANCIAL MANAGEMENT FINANCIAL PLANNING

Twin Objectives factors Affecting factors Affecting factors A!feeling

Capital Structure fixed Capital Requirements Working Capital Requirements

• Determinationof Wealth Maximisation • To Ensure Timely • Prepare for future

fixed Assets Availability of fund • Helps to Avoid • Cash flow Position • Nature of Business • Nature of Business
• Determination of • To See that the Shocks and Surprises • Risk Consideration • Scale of Operations • Scale of Operations
Current Assets firm does not Raise • Helps to Coordinate • Interest Coverage • Choice of Technique • Business Cycle
• Determination of Unnecessary Finance • Reduces Wasteful Ratio IICR) • Technology • Seasonal Factors
Factors Affecting factors Afleeting Factors Affecting
Long-Term and Short- Efforts • Debt Service Upgradation • Production Cycle
Investment Decision financing Decision Dividend Decision
Term finance • Links Present with Coverage Ratio • Growth Prospects • Credit Allowed
• Determination of Future (DSCR) • Diversification • Credit Availed
Proportion of Various • Cash flows of the • Links Investment and • Cost of Debt • financing • Operating Efficiency
• Cost • Amount of Earnings
Sources of Long-Term Project Financing Decisions • Cost of Equity Alternatives • Availability of Raw
• Risk • Stability of Earnings
finance • Tackle the • floatation Costs • Level of Material
• Rate of Return • floatation Costs • Stability of Dividend
• Determination of • Investment Criteria • Cash flow Position Uncertainty in • Tax Rate Collaboration • Growth Prospects
Various Items of • Growth Opportunities
Involved • Level of Fixed • Cash flow Position Respect of the • Control • Level of Competition
Profit and Loss Operating Costs Availability and • flexibility • Inflation
Account • Shareholder's
• Control Preference Timing of the funds • Regulatory
• State of Capital • Taxation Policy • Makes Evaluation of framework
Market • Stock Market Actual Performance • Stock Market
Reaction Easier Conditions
• Access to Capital • Capital Structure of
Market other Companies
• Legal Constraints
• Contractual
Constraints

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 Chapter 10 · Financial Markets

FINANCIAL MARKETS

Advantages of Electronic Steps in Trading and Securities and Exchange

Trading Systems Settlement Procedure Board of India iSEBII

• Mobilisation Functions of Stock Exchange

of Savings and • Ensures • Selection of a
Money Market
Channeling them into Transparency Broker
Objectives
the Most Productive • Providing Liquidity • Increases • Opening a Demat
Uses Money Market Instruments and Marketability to Efficiency of Account
• Facilitating Price Existing Securities Information • Placing the Order • To Regulate
Primary Market • Regulatory
Discovery • Pricing of Securities • Increases the • Executing the Stock Exchanges Functions
• Providing Liquidity to • Treasury Bills • Safety of Efficiency of Order
• To Protect, Guide • Protective
Financial Assets • Commercial Transaction Operations • Settlement
Methods of Floatation • Deals in Sale/ and Educate Functions
• Reducing the Cost of Paper • Contributes to • Improves the
Purchase Investors • Development
Transactions • Call Money Economic Growth Liquidity of the
of Existing • To Regulate and Functions
• Certificate of • Spreading to Equity Stock Market
• Offer through Securities Develop a Code
Deposit Cult • Provides a Single
Prospectus of Conduct for
• Commercial • Providing Scope for Trading Platform
• Offer for Sale Intermediaries
Bill Speculation
• Private
Placement
• Right Issue
• e-lPO

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 Chapter 11 · Marketing Management

MARKETING MANAGEMENT PRODUCT MIX

• Gathering and • Production • Product

Analysing Market Concept • Price
Information • Product Concept • Place • Describe the
• Market Planning • Selling Concept • Promotion Product and
• Product Designing • Marketing • Primary • Rising • Product Specify its
and Development Concept • Easy to Packaging Standards of Identification Contents
• Standardisation • The Societal Pronounce • Secondary Health and • Product • Identification of
and Grading Marketing • Suggestive Packaging Sanitation Protection the Product
• Packaging and Concept • Distinctive • Transportation • Self-Service • Facilitating Use • Grading of
Labelling • Satisfies Needs and • Constant Outlets
To Marketers To Customers Packaging of the Product Products
• Branding Wants of People
• Enables Making • Helps in • Capable of • lnnovational • Product • Helps in
• Pricing of • Creates a Market Opportunity
Product Product Registration Promotion Promotion of
Products Offering
Differentiation Identification and Legal • Product Products
• Physical • Customer Value Protection Differentiation
• Helps in • Ensures • Providing
Distribution • Exchange Mechanism
Advertising Quality • Consider the Information
• Promotion and Display • Status Symbol Meaning of Required by
• Customer Support Programmes Brand Name Law
Services • Differential in Other
• Tansportation Pricing Languages and
• Storage • Ease in Cultures also.
Introduction of
New Products

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 PRICE MIX PROMOTION MIX --,
L - - - - - - - - - -- - ir - - - - - - - 1
l
Factors Affecting Price of a Product l
l Sales Promotion Public Relations
• Pricing Objectives
- Obtaining Market Share Leadership
- Surviving in a Competitive Market
- Attaining Product Quality Leadership Qualities of a Salesman Tools
• Product Cost • Press Release
• The Utility and Demand • Press Kits
• Extent of Competition in the Market • Paid Form • Adds to Cost • Personal • Physical • Brochure
• Government and Legal Regulations • Non-Personal • Encourages Sale of Interaction Qualities • News Letters
• Marketing Methods Used • Identified Sponsor Inferior Products • Development • Mental Qualities • Annual
• Confuses the of Relationship • Social Qualities Reports
PLACE/PHYSICAL DISTRIBUTION MIX Buyers rather than • Oral • Communication • Conference
Helps • Two-Way Skills and Seminars

l • Undermines Social
Values
• Some
Communication
• Narrow
Coverage
Events

Advertisements
Channels of Distribution Factors Affecting Choice of Physical Movement of Goods are in Bad Taste
Channels of Distribution
Role
• Order Processing Techniques • Press Relations
• Product Related • Transportation • Rebates • Product
Factors • Warehousing • Discount Publicity
- Nature of Product • Inventory Control • Refunds • Corporate
- Perishability • Product Combination Communication
- Unit Value of the • Quantity Gift • lobbying
Product • Instant Draws and • Counselling
• Own Retail Outlets • One Level - Product Complexity Assigned Gift
• Door to Door Selling • Two Level • · Company • Lucky Draw
• Mail Order Selling • Three Level Characteristics • Usable
• Tele-Marketing - Financial Strength • Full Finance @0%
• Internet Selling - Degree of Control • Sampling
Desire • Contests
• Competitive Factors
• Market Factors
- Size of Market
- Geographical
Concentration
- Size of Order
• Environmental Factors

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 Chapter 12 Consumer Protection

CONSUMER PROTECTION
I

1,
I •+
Importance I I •+
Remedies I J
+
Consumer Rights

i
I +
IConsumer Responsibility I +
Reasons for
Complaints I
I •+
Redressal Agencies I
+
Role of Consumer
Organisation I
From Consumer's
Point of View
• To Remove the
Defect in Goods or
•
•
Right to Safety
Right to be informed
*
• Consumer Must Buy Only
Standardised Goods
+
• Hazardous Goods/
• District Consumer Dispute Redressal Forums (District
Forum) {claim < 20 lakh/
+
• Educating the
• Consumer Ignorance Deficiency in Service • Right to be Heard • Consumer Must see the Price, Services • State Consumer Disputes Redressal Commissions General Public about
• Unorganised • To Replace the • Right to Seek Manufacturing and Expiry Dates • Deficient Service (State Commission) (Claim more than 20 lakh but Consumer Rights
Consumers Defective Product Redressal • Consumer Must Follow the • Excess Price less than 1crore/ • Publishing
• Widespread with a New Non- • Right to Choose Instructions and Use the Product • Unfair and Restrictive • The National Consumer Dispute Redressal Periodicals and other
Exploitation of Defective Product • Right to Consumer Safely Trade Practices Commission (National Commission) (Claim > 1 Publications
Consumers • To Refund Amount Education • Consumer Must Ask for Cash crore) • Carrying out
From the Point of Paid by the Memo Comparative Testing
View of Business Complainant of Consumer
• Long-Term Interest • To Pay Compensation .Products
of Business if the Consumer has • Encouraging
• Business Uses Suffered any Loss or Consumers to
Society's Resources Injury Strongly Protest
• Social Responsibility • To Pay Punitive and take an Action
• Moral Justification Damages in Against Unfair Trade
• Government Appropriate Practices of Sellers
Intervention Circumstances • Providing Legal
• To Discontinue the Assistance to
Unfair/Restrictive Consumers.
Trade Practices and • Filing Complaints
not to Repeat them in in Appropriate
the Future. Consumer Courts on
Behalf of Customers.

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