Business Management

Unit - I

Dr.N.Balakrishnan
Associate Professor / MCA
Sona College of Technology
 Definition
To manage is to forecast and plan, to organize, to
command, to co-ordinate and to control”
…….Henry Fayol
“Management is the art of knowing what you want
to do” and then seeing that it is done in the best
and cheapest way.
……F.W.Taylor
Management is the art of getting things done
through people
………Mary Parker Follet
 IMPORTANCE OF MANGEMENT
• Systematic Approach to work – planning, …
• Mobilization of the necessary resources - men,
machines, materials, and money.
• Division of work
• Selection of the right man for the right job
• Manpower development – practical exposure
• Inducement of workers
• Stability of tenure
• Integration of business activities
• Performance of control
• Fulfillment of social obligation – benefits - societies
 IMPORTANCE OF MANGEMENT
• Management is critical element in the
critical growth of the country.
• Management is essential in all organized
effort, be it business activity or any other
activity.
• Management is the dynamic, life giving
element in every organization.
 Nature of Management
• Management is Goal-oriented.
• Management is Universal.
• Management is an Integrative Force.
• Management is a Social Process.
• Management is Multidisciplinary.
• Management is Continuous Process.
• Management is Intangible.
• Management is an Art as well as Science.
 Nature of Management (contd.)
Management is Goal-oriented
• Management goals are called group goals or
organizational goals.
• The basic goal - efficiency and economy in
the utilization of human, physical and
financial resources.
• The success of management - established
goals one achieved.
 Nature of Management (contd.)
Management is Universal
• Management is an essential element of every
organized activity irrespective of the size or
type of activity.
Management is an Integrative Force
• The essence of management lies in the
coordination of individual efforts in to a team.
 Nature of Management (contd.)
Management is a Social Process
• Management is a social process because it is
concerned with interpersonal relations.
• Human factor is the most important element
in management
Management is Multidisciplinary
• wide knowledge derived from several
disciplines like engineering, sociology,
psychology, economic s, anthropology, etc.
 Nature of Management (contd.)
Management is Continuous Process
• the achievement of group goals.
Management is Intangible
• Management is an unseen or invisible force. It
cannot be seen but its presence can be felt
everywhere in the form of results.
Management is an Art as well as Science
• ethical code arising out of its social obligations
 Scope of Management
• The scope of management hovers around the
following functional areas
– Production management
– Marketing management
– Financial management
– Personal management
 Production Management
a) Designing the product
b) Location and layout of plant and building
c) Planning and Control of factory operations
d) Operation of purchase and storage of
materials
e) Inventory cost and Quality Control
f) Research and Development etc
 Marketing Management
a) marketing research to determine the needs and
expectation of consumers
b) planning and developing suitable products
c) setting appropriate prices
d) selecting the right channel of distribution, and
e) promotional activities like advertising and
salesmanship to communicate with the customers
 Financial Management
a) Selecting the appropriate source of funds
b) Raising the required funds at the right time
c) Administration of earnings
d) Estimating the volume of fund.
 Personal Management
a) manpower planning
b) recruitments,
c) selection,
d) training
e) appraisal,
f) promotions and transfers,
g) compensation,
h) employee welfare services, and
i) personnel records and research, etc.
 Functions of Management
• Planning:- It is a process of deciding the
business objectives and charting out the
plan/ method for achieving the same.
• This includes determination of what is to be
done, how, and where it is to be done, who will
do it and how result are to be evaluated.
• This function expected to be carried out
throughout the organization.
• It should be performed by the manager at all
levels.
 Organizing
• According to Allen, the organizing refers to “ the
structured which results from identifying and grouping
the work, defining and delegating responsibility and
authority and establishing relationships.”

• To organize a business is to provide it with everything

useful to its functioning i.e. personnel, raw materials,
machineries, capital etc.

• Once objectives are established, manager has to

develop plan to achieve them with help of human
resources as well as material resources.
 Directing
• Directing involves communication,
leadership and motivation.

• Communication is the process of passing the

information and understanding it from one
person to other person.

• Leadership is the function whereby the person

or manager guides and influences the work of
his subordinates.

• Motivation is to motivate the employee to give

their best to the organization.
 Controlling
• The controlling involves-

1. Establishing standards of performance.

2. Measuring current performance and comparing it
against the established standard.
3. Taking corrective action that does not meet the
standard.

• Control compels the events to confirm to plans.

 Innovation and Representation
• These are also two important additional
managerial functions.

• Innovation means creating new ideas which

may either result in the development of new
products or finding new uses for older ones. It is
necessary to grow better.

• The manger has to represent himself for the

organization. A manger must win support
effectively from different groups (either internal or
external).
 Levels of Management
• LOWER LEVEL (FIRST LINE): FOREMEN &
WHITE COLLAR SUPERVISOR

• MIDDLE MANAGEMENT: SALES MANAGERS,

PERSONNEL MANAGERS, OTHER
DEPARTMENTAL HEADS

• TOP MANAGEMENT: COMPANY

PRESIDENTS, EXECUTIVES, VICE
PRESIDENTS
 Managerial Skills

Top Conceptual
Management Skills

Middle Human
Management Relation Skill

Supervisory Technical
Level Skills
Process of Management