Principles of Management

Chapter-1
Management: A set of activities (including planning and decision making, organizing, leading and
controlling) directed at an organization resources (human, financial, physical and information) with
the aim of achieving organizational goals in an efficient and effective manner.
Manager: Someone whose primary responsibility is to carry out the management process.

The Management Process: Planning and decision making, organizing, leading and controlling.
Planning: Setting an organization's goals and deciding how best to achieve them.
Decision Making: Part of the planning process that involves selecting a course of action from a set of
alternatives.
Organizing: Determining how activities and resources are to be grouped.
Leading: The set of processes used to get members of the organization to work together to further the
interest of the organization.
Controlling: Monitoring organizational progress toward goal attainment.
Kinds of manager:
Level of Management: Top managers, Middle managers & First line managers,
Areas of Management: Marketing, Finance, Operation, Human resources, Administration & Other.
Managerial Roles: Interpersonal, Informational, And Decisional.
Managerial Skills: Technical, Interpersonal, Conceptual, Diagnostic, Communication, Decision
making, Time management.
Chapter-2
Steps in Scientific Management:
 Develop a science for each element of the job to replace old rule of thumb methods.
 Scientifically select employees and the train them to do the job as described in step 1.
 Supervise employees to make sure they follow the prescribed methods for performing their jobs.
 Continue to plan the work, but use workers to get the work done.
Chapter-3
Organizational Environment:
Internal: Owners, Board of directors, Employees, Physical environment, Culture.
External: (Task & General)
Task: Competitors, Customers, suppliers, Strategic partners, Regulators.
General: Technological, Economical, Socio-cultural, Political, International.
Chapter-9
Decision Making: The act of choosing one alternative from among a set of alternatives.
Types of Decisions: Programmed Decisions, & Non programmed Decisions
Forms of Group Decision Making:
 Interacting group or team
 Delphi groups
 Nominal groups
Chapter-11
Organizing: Deciding how to best group organizational activities and resources.
Departmentalization:
 Rationale for Departmentalization
 Product Departmentalization
 Customer Departmentalization
 Location Departmentalization
 Other Forms of Departmentalization
 Chapter-16
Motivation: The set of forces that cause people to behave in certain ways. The goal of managers is
to maximize desired behaviors and minimize undesirable behaviors.
Maslow’s Hierarchy of Needs:
 Physiological—basic survival and biological function.
 Security—a safe physical and emotional environment.
 Belongingness—love and affection.
 Esteem—positive self-image/self-respect and recognition and respect from others.
 Self-actualization—realizing one’s potential for personal growth and development.
The ERG Theory:
Needs are grouped into three overlapping categories:
 Existence needs—physiological and security needs.
 Relatedness needs—belongingness and esteem by others.
 Growth needs—self-esteem and self-actualization.

Others:
Team:
A group of workers who function as a unit, often with little or no supervision, to carry out work-
related tasks, functions, and activities.

Management By Objectives (MBO) Process:

1. Setting Objectives:
2. Developing Action Plans.
3. Periodic Review Or Monitoring the Progress:
4. Performance Appraisal:

Henry Fayol’s 14 Principles of Management:

1. Division of Work: 
2. Authority: 
3. Discipline: 
4. Unity of Command: 
5. Unity of Direction: 
6. Subordination of individual interest: 
7. Remuneration: 
8. Centralization (Or Decentralization): 
9. Scalar chain (Line of Authority) : 
10. Order: 
11. Equity: 
12. Stability of Tenure of Personnel: 
13. Initiative: 
14. Esprit de Corps: 
 Principles of Accounting

Chapter-1
Accounting: Accounting is an information system that identifies, records, and communicates the
economics events of an organization to interested users.
The activities of Accounting Process:
Identification Recoding (Book keeping) Communication
Accounting User:
Internal User: Marketing Manager, Production Supervisor, Finance Directors, Company Officers etc.
External User: Investor, Owners, Creditors, Taxing authorities, Regulatory agencies, Customer etc.
GAAP = Generally Accepted Accounting Principles.
Accounting Two Main Assumptions:
Monetary Unit Assumption
Economic Entity Assumption
Financial Statement:
Income Statement
Owner's Equity Statement
Balance Sheet
Statement of Cash flows
The basic Accounting equation is:
Assets = Liabilities + Owner's Equity
The Expanded accounting equation is:
Assets = Liabilities + Owner's Capital -Owner's Drawing + Revenues - Expenses.

Chapter-2
The Account: An account is an individual accounting record of increases and decreases in a specific
asset, liability, or owner’s equity item.
Three Basic steps in recording process:
 Analyze each transaction for its effects on the accounts.
 Enter the transaction information in a journal,
 Transfer the journal information to the appropriate account in the ledger.
Journal: Companies initially record transactions in chronological order.
Journalizing: Entering transaction data in the journal is known as journalizing.
The Ledger: The entire group of accounts maintained by a company is the ledger.
Posting: Transferring journal entries to the ledger accounts is called posting.
Trial Balance: A trial balance is a list of accounts and their balances at a given time.

Types of Adjusting Entries:

Deferrals: Prepaid Expenses & Unearned Revenues
Accruals: Accrued Expenses & Accrued Revenues
Three Cash flow methods:
 FIFO
 LIFO
 Average cost
FIFO = First in first out
LIFO = Last in first our
FOB = Free on board
FOB Shipping Point:
Goods delivered to shipping point by seller. Buyer pays freight costs from shipping point to
destination.
FOB Destination: Goods delivered to destination by seller. Seller pays freight costs
Accounting Information Systems: A system that collects and processes transaction data, and
communicates financial information to decision makers.
 Business Communication:

Business communication: Business communication is a term that can be defined as the contact
between the people in an organization for the intention of carrying out the business activities.
Mass communication: Mass communication is a process of transmitting messages quickly to a large
number of scattered audiences of different characteristics by using various intermediary channels like
radio, television, newspapers, cinema slide etc.
Media of Mass Communication:
 Print media
 Audio media
 Audio – visual media
 Printed & visual media
 Traditional media
Classification of Reports:
 Formal Reports and Informal Reports
 Information Reports
 Analytical Reports
 Recommendation Reports
Anatomy of a Report:
 Cover Page
 Title Page
 Letter of Transmittal
 Table of Contents
 List of Illustrations
 Executive Summary
 Report Body
Business Letter:
A business letter is a letter written in formal language, usually used when writing from one business
organization to another, or for correspondence between such organizations and their customers,
clients and other external parties.
Types of Business Letters:
1) Letter of Transmittal
2) Letter of Thanking
3) Letter of Complaint
4) Response to a Letter of Complaint
5) Letter of Request
6) Response to a Letter of Request

Introduction to Business
Now I have no book. So, No short note.
Follow the text book and sheet & General Knowledge.

Mathematics
Follow the text book and sheet & General Knowledge
 Principles of Finance

Finance: Finance can be defined as the art & science of managing money.

Goals of Finance: Profit maximization & Wealth maximization.

Profit maximization: Profit maximization means maximizing the profit of the firms.
Wealth maximization: Wealth maximization means maximizing the net present value (or wealth) of
course of action to shareholders.

Short term sources financing: Short term sources financing is that form of financing which
includes borrowing or lending of funds for a short period of time.

Short-term sources of financing:

Spontaneous financing: (Trade credit, advance payment & accrued expenses)
Money market: (Commercial Paper & Banker's Acceptance)
Bank loan: (Loans and advances, cash credit, overdraft & Discounting of bills)

Long term sources financing: Long term sources financing is that form of financing which includes
borrowing or lending of funds for a long period of time.

Long-term sources of financing:

Internal Sources: (Owners Capital, Retained Earnings, Provident Funds, Sales of Unused Fixed
Asset, Bad Debt provision)
External sources (Non Institutional sources: (Common stock, preferred stock, Bond/Debenture,
Warrants, Convertible Security, Money market lender)

Time value of money: Time value of Money is the value of a unit of money at different time
intervals.
Techniques of TVM: Present & Future value techniques.
Patterns of cash flow: Single amount, Annuity & Mixed stream
Annuity: Annuity ordinary & annuity due.

Risk: Risk can be defined as the chance that some unfavorable events will occur.
Two types of Risk of Return: Expected & Realized Return.

Cost of Capital: Cost of capital is the rate of return that a firm must earn on the project in which it
invest to maintain the market value of its stock.

Capital Budgeting: Capital Budgeting is the process of identifying, analyzing & selecting
investment projects whose returns are expected to extend beyond one year.
 Principles of Marketing

Marketing: Marketing is managing profitable customer relationships.

Market: The set of all actual and potential buyers of a product or service.
Needs: States of felt deprivation.
Wants: The form human needs take as shaped by culture and individual personality.
Demands: Human wants that are backed by buying power.

and Follow the text book and sheet

Commercial Law

Large syllabus. No short note. So, follow the text book

and General Knowledge.

Microeconomics
Follow the text book and sheet & General Knowledge.

Introduction to Computer

Follow the text book and sheet & General Knowledge

[General Knowledge must Essential]

Azim Uddin Khan

Mgt Std.. 8th batch.
Jagannath University