Sahas Institute :- 11-12 Comm / FY ~ SY - TY B.com /CA & CS Page [1 11' 12" (Eng. Med) F.Y S.Y. T.Y. B.COM Institute of Commerce __C.A. &C.S (All levels ) E-107, Vrundavan Township, Harni Road, Near Sangam, Vadodara. M : 99989 84152, 82384 48020 FF 9—Sharnam Complex , Opp. Bahurani Restaurant , Near Crystal School , Waghodia Road. F.Y.B.Com [Sem2] F.M = Functional Management Unit - 1 Topic 1 :- Definition & Basic Information of Management :- s ! T Concept of Management :- -- The term “management” Is used in SPCSSITSPERRISS, (a) Management as a Process (b) Management as a Group of people (c) Management as a Discipline. # management is a process of = Planning, Organizing, Directing, and Controlling # Management is a group of people, Who have to Manage the organization. # Management includes different Concepts & Principles, Which can be used in managing the organization. Definitions of Management :- # nn “To manage is to Forecast and to plan, to organize, to co-ordinate and to control” #So, according to this definition, “Management is a Process of ownioad Planning, Organizing, Staffing, Directing, and Controlling s Human efforts to get decided objectives in an organization.” # ncn tne mapia ested Dafiotion to Bl ne “Management is the getting things done through & with People in formally organized group” - It is the process of giving direction to people. a “Management is simply the process of decision making and control over the actions of human beings for the expressed purpose of attaining pre-determined goals” = So, according to this definition =Management is a process of decision-making a Join SAHAS Institute Today H.O - Sangam Cross Rd, Karelibaug. + Branch—WaghodiaRoad. + “Sahas Smart Studies” App - 99989 84152Sahas Institute :- 11-12 Comm / FY —- SY —- TY B.com /CA & CS Page |2 # According to = “Management is the art of knowing what you want to do & then seeing that it is done in the best and cheapest way” - So, management is related with increasing efficiency in the organization. This defntion Ges welghton the efforts and the resus Crone > :» Management a (widely spread) all over the world, where people are working in a group, for the achievement of predetermined goals. i Management is either it is business unit or a social, religious or a political institute. itis require in the army, education, sports & even agriculture, all over the world. Therefore it is said that Management is a universal process. = Management is a (completion/end), Every business unit is established to achieve certain objectives / goals. These goals should be simple & clearly stated. in a competent (satisfactory/acceptable) & economical way. s Hence management is a goal oriented activity. ‘An organization is a collection of diverse individuals with different needs. | Topic 2 :- Characteristics / Nature of Management for the accomplishment of pre-decided objectives. = This requires team work & co-ordination of individual effort, in a defined direction. Hence, management is a collective/group activity, carried out by two or more persons. :* Management is a continuous process. Even though, management is a goal oriented activity, ° The cycle of Defining objectives - Achieving them - Redefining new objectives, goes on a continuous basis. Management process sR Una Se, because we can give orders & instructions to the human beings & not to the non-living things. Since, Mai is the most significant (important) element, he is in th Other means of production are useless without his presence. = Thus, management is alhuman process which is done by the human beings & for the human beings. = Many problems are faced & opportunities are created, while managing the business, according to the situation, :- No work is done without as decisions. Download S (sj = Thus decision-making process is a function of the management. ‘+ Management is considered as a i Oat Be ‘Science! because it also has its one Management is known as ‘Art! because it is the which requires proficiency, intelligence, cleverness & insight (vision/deep understanding). H.0 ~ Sangam Cross Rd, Karelibaug. + Branch—Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas Institute :- 11-12 Comm / FY - SY ~ TY B.com /CA & CS Pag Hence management is a ‘Profession’ like lawyers, doctors, chartered accountant etc., Topic 3 :- Importance of Management Management is not the monopoly of any business unit, but it can be # Such as..religious, social, political, cultural, institutional, educational, sports, defence, agriculture etc., + All the functions of management like planning, organizing, direction & controlling, are required in all the above activities. An efficient management by making the best possible use of the available business resources, like land, capital, raw material, personnel & machinery. It avoids wastage of resources. Management is Ithelps in the optimum utilization of resources, which results into the accomplishment of business objectives. (2) sel for the success ofbusines: Downlnd + The success or failure of a business unit is more dependent, = ‘on the management as compared to other elements. s (5) Increase in job opportunities : oe + In-efficient management is responsible for the closure of any business unit, & increases the problem of unemployment. + Against which, & thus job opportunities are also exist for long term. | ‘The Primary motive of a business unit is to earn the profit. x Therefore, Every business is carried out as a part of the society & for the interest of the society. = Effective management assists in the maximum utilization of resources of the society, & it works in favour of the society. + Business units provide goods at reasonable rates, which results in the welfare of the entire soc. + Management is as well as other factors of production, for the economical, social & national development of an economy. +» Thus, national motive can be achieved through proper management. oO Cel ng CR Rae es MeL MeN} H.0 ~ Sangam Cross Rd, Karelibaug. + Branch~Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas Institute CA & CS Page |4 science means = Sitamatie@ spedalized rowed, = Science is a subject, where : i) Rules & principles are derived _and (i) Cause & effect, relationship can be established. OR Download + According to Dr.George Terry, "Management teaches one to Know." (is z= (i) Systematized body of knowledge; (i) Universality; (ii) Cause & effect relationship; (iv) Itis based on the collection of facts; (v) Analysis & experiments; and (vi) Verifiability of the principles etc. a ke science, management has its own specific principles, Due to these principles, management co-ordinates proper use of, human resources, machinery, capital & various methods. Thus, management is a Science. Topic 5 :- Management as an “Art’ As in Art, management needs implementation & expertise of an individual. But to implement the skill, one should also have theoretical knowledge. + During the practical application of management rules & principles, only theoretical knowledge is not sufficient, but personal skill, insight & cleverness, plays an important role .- For the implementation of knowledge, technical art is also necessary. - Manager makes necessary changes as per his personal skills & proficiency. = Hence we can conclude that management is an Art, as it aims at using the available skills, knowledge & experience for solving the problems of an enterprise. Topic 6 :- Management as a Profession :- Meaning of Profession :- Profession is an activity :- (i) where in specific field is acquired (ii) it is used for providing to the society (iii) in return, a s charged. # Eg. Doctors, Lawyers, Chartered Accountant, Engineers, Teachers etc. Characteristics of Management as a Profession > Download 2, is’ to work as professionals. ( s Eg. LLB degree is necessary for the profession of lawyer, MBBS, MD or MS degrees are necessary for doctors, Q1eat BBA/MBA degrees are necessary for the specialized knowledge of management. | SMART STUDIES H.0~Sai jam Cross Rd, Karelibaug. + Branch—Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas Imstitute :- 11-12 Comm / FY - SY ~ TY B.com /CA & CS Page |S => om [si in management also. Seat All SMART STUDIES = Like other professions, In the same way, management has its own association too. It Gives education & training of management. # Eg. IIM [Indian Institute of Management] imparts (teaches) management education in India. + Itis working at national & international levels. + This institute works for the development of the profession in management. rofessional association (rules) for its members. of conduct. 2 & need to full ther moral responsibilty # Eg. A chartered accountant must be loyal to his clients & should not disclose any information. of his client. # Conclusion :- From the above characteristics, itis clear that, management is developing as an independent profession. = To complete a particular job or work, the This method Defines work specifically & analyses the work scientifically. = The function of - Whatever plan whi Job analysis means = The following in job analysis = (i) Time study; (ii) Motion study; (movement study) & (iii) Fatigue (tiredness) study = These studies help to increase productivity & eventually decrease the cost of production. is decided by the experts, should be followed by the workers. = Itmeans like, equipment, time, working condition, resources. are scientific processes, which are to be decided welll in advance. by taking into consideration their education, s guts, physical strength, trai ious methods of training should be used to increase the efficiency of the workers. Different types of Scientific tests should be conducted to know the worker's work interest. has also been recommended. H.0 ~ Sangam Cross Rd, Karelibaug. + Branch -Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas Institute :- 11-12 Comm / FY ~ SY ~ TY B.com /CA & CS Page [6 + This wage system must be adopted on the basis of, individual productivity of an employee. es = Wage rate should be decided not as per the speculation (rumour), 1 but it should be on the basis of scientific study. nen SMART STUDIES In the scientific management, importance is given not only to the scie! but also to the + For this, ific & technical base, deviation should be found & corrective action should be taken. Mental revolution means, a Taylor suggested which will create a feeling of co-operation among them. + Mental revolution IIIEERRERRIE between the owners & the workers, and hence goals can be achieved easily. Topic 8 :- TECHNIQUES of Scientific Principles of Mgt. by F.W.Taylor =C aPoins > # Taylor has given the following techniques for practically implementing the principles of scientific management based on the various experiments he conducted during his career : Time study means, to Determine the standard time required to complete a well-defined job. - Standard time defines the time required to finish the work, in normal circumstances by an average worker. ‘= As per the Taylor, a task should be finished within decided time and then its careful analysis, is known as time study. s- Time study is useful for making optimum use of production equipments & achievement of targets on time. - Hence, the = Motion study = t of = Motion study is a Science of eliminating (removing) unnecessary movement in the work - It aims at increasing the productivity of workers by eliminating unnecessary movements, and thereby remove the industrial fatigue (tiredness) of workers. The of the motion study is to find out & implement a scheme, for the : Unnecessary movements should be eliminated (removed), to complete the job efficiently, in lesser time. + Taylor has advised the As per this system, Work efficiency of every employee is different. So, an efficient worker gets more wages, whereas an inefficient worker gets less wages = According to Taylor, this system would motivate workers to produce more, and thus help the business unit to perform better. Downdoed > Qezt SMART STUDIES in order to motivate the employees. H.0- Sangam Cross Rd, Karelibaug. + Branch -Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas Institute :- 11-12 Comm / FY - SY ~ TY B.com /CA & CS Page |7 | Topic 9 :- Henry Fayol’s Principles of Scientific Management :- (cia Points >) The Distribution of work amor onthe - The Main purpose of this principle = is and through that, optimum use of production equipment to be achieved. Specialization is also possible through division of work. Dhvsion of work shout be appleable at managerial x walla BASF Org ev = Itwill increase the efficiency of both employees & managers. various individuals, is known as division of work. They are Two sides of the same coin. When a person is assigned a responsibility, he is given authority too. While assigning authority to an employee, factors like Position, knowledge, qualification, experience, leadership, maturity etc. should be considered. Discipline ereates Harmonious (sweet/tuneful) environment among people. Optimum use of equipment & consistency of activities, are very much necessary for industrial discipline. = Industrial discipline can be established by certain kind of RUI@S & Code Of COAdUct (regulation). If every worker observes this rule, discipline will be established. Discipline will have positive results like, (i) Governance (power/authority) takes place in an unit; (ii) Control becomes easy; (ii) Employee's interest in the job increases; & (iv) Manager can take work from subordinates easily. To maintain discipline, certain factors are necessary like, {i) Supervision; (li) Contact between owners & workers; & (ii) Implementation of punishment at every level. As per this principle, It means that the employee is responsible to only one superior for a particular job. = If employees get order from more than one superior, then there can be adverse effects which leads to: (i) confusion among employees with regards to instructions given; (ii) difficulties in maintaining discipline; & (iii) duplication of workete. 4 +» Planning is an outline (plan) for future. - If deviations are found during planning, then direction-guidance is provided. S\ Directions are given by the superior authority to the subordinates. +» Direction assures the success of the plan & makes control eas ‘As per this principle, there should be Download Management is a collective activity. | s 2 Hence there should be This results in an easy achievement of goals of the entire unit. = However, at times, feeling of competition, narrow mindedness, laziness, ambition, etc. SMART STUDIES H.0~Sangam Cross Rd, Karelibaug. + Branch-Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas institute :- 11-12 Comm / FY - SY - TY B.com /CA & CS Page |8 overlook the interest of the organization. This attitude is very harmful to the organiz: So this .- Remuneration means returns given to employees against the services provided by them. i.e. Salary, Wages, Commission etc., = Efficient employees of the business unit should be compensated as per their efficiency. It will Awa. ;- Promotional schemes like bonus, profit sharing, representation in managerial committee, should be implemented for the skilled workers. 8) Centralization & Decentralization : - There must be a good balance between centralization & decentralization of power. - Generally power is centralized in small units & decentralized in large units. = This eta sian ‘on SERCE eee, = The scalar chain of authority, responsibility & communication, from higher administrative officer to bottom level employees should not be broken. = Authority & epee should be assigned as se their respective level so that employees working in a unit should be aware of who is responsible to whom. Principle of order emphasizes two things ei any ‘ 7 Material order Social order [Raw material arrangement] {Social arrangement] Social order means employees. = Material order means raw material, tools & nr It means scientific selection of employees = It means every material should be used properly & economically. should be done for every job. - If both these arrangements are properly implemented, every employee will know his work, as well as from where he will get the material he needs 11) Equality : Download :- Employees are a part of the managerial system. => Since the employees are human beings, actical approach should be adopted by the management to handle them. ‘SMART Sx. - Efforts should be made by the management to establish equality in the unit, through informal ways instead of legal or traditional ways. = The overall behavior of an employee is based on faithfulness, attitude, uniformity & justice. H.0- Sangam Cross Rd, Karelibaug. + Branch — Waghodia Road. + “Sahas Smart Studies” App - 99989 84152Sahas Institute :- 11-12 Comm / FY - SY - TY B.com /CA & CS Page |9 ee ‘= Permanent & stable employees are asset of any organization. Ineo :- An employee can develop himself by remaining in one unit, Coomteree 11" 12" (Eng. Med.) F.Y.-S.Y.-T.Y. B.Com. 7 hh A a) & contributing to the achievement of business ma :- Labour turnover rate also remains low. This way, a stable employee can contribute, towards the achievement of the goals of the business unit. :- Management should make special arrangements for the promotion & training of stable and permanent employees. lar to the quality of entrepreneurship in the industrialists. mpl who have been working on specific job since long, discover better method of work. he nen hd rie ite pe ote mg 1 efficient management provides an opportunity to its employees, to suggest their new ideas, experience & better method of work. - Due to initiation, strength of independent working, develop in an employee, which in turn increases his leadership quality. Esprit de corps is a French word which means = ——— ++ Success of an industrial unit lies in mutual relations of managers & employees, hence there should be harmony in both classes. - sana should Eon be ut ot nes ferent Study Options Offered by SAHAS Institute 1] Classroom Study Programme 2] Sahas E Classes — Virtual — Live — Interactive Sessions 3] “Sahas Smart Studies” App Learning .Y—T.Y — B.Com M = 82384 48020, 99989 84152 A & CS LAll Levels } SMART STUDIES LOWEST FEES = HIGHEST VALUE EDUCATION ( Download “Sahas Smart Studies” App From Google Play Store ) 1] You Tube = Sahas Institute of Commerce. 2] Instagram = Commerce_ke_kings. 3] Facebook = Sahas Institute of Commerce H.0 Sangam Cross Rd, Karelibaug. + Branch-Waghodia Road. + “Sahas Smart Studies” App - 99989 84152