Technical innovation

Management and Dr. Madhura Gangaiah

entrepreneurship Asst. Prof, Dept. of EIE, RNSIT
 Technical Innovation
Management and
Course Learning Objectives Entrepreneurship
CO1 Understand basic skills of Management ■ Sub Code: 18ES51
CO2 Understand the need for Entrepreneurs and their skills ■ Credits : 3

CO3 Identify the Management functions and Social

responsibilities
Understand the Ideation process, creation of Business
CO4 model, Feasability study and sources of funding
 MODULE 1 MODULE 2 MODULE 3 MODULE 4 MODULE 5

• Manageme • Organising • Social • Family • Business

nt and Responsibil Business Model
• Planning Staffing ities of • Idea • Financing
• Directing Business Generation and how to
and • Entreprene and start a
Controlling urship Feasibility Business?
Analysis • Project
Design and
Network
Analysis
Course Objectives
■ Understand the fundamental concepts of Management and
Entrepreneurship and opportunities in order to setup a business
■ Describe the functions of Managers, Entrepreneurs and their
social responsibilities
■ Understand the components in developing a business plan
■ Awareness about various sources of funding and institutions
supporting entrepreneurs
 Text Books
■ Principles of Management – P.C Tripathi, P.N Reddy, McGraw Hill
Education, 6th Edition, 2017. ISBN-13:978-93-5260-535-4.
■ Entrepreneurship Development Small Business Enterprises- Poornima
M Charantimath, Pearson Education 2008, ISBN 978-81-7758-260-4.
■ Dynamics of Entrepreneurial Development and Management by
Vasant Desai. HPH 2007, ISBN: 978-81-8488-801-2.
■ Robert D. Hisrich, Mathew J. Manimala, Michael P Peters and Dean A.
Shepherd, “Entrepreneurship”, 8th Edition, Tata Mc Graw Hill
Publishing Co. ltd – New Delhi, 2012
MODULE 1
MANAGEMENT AND PLANNING
 Management
• Management is a critical element in the economic growth of a
country
• Without management, a country’s resources of production
remain resources and never become production People Money

• Management is essential in all organised efforts, be it a business

activity or any other activity. Machines
Material
• Management is the dynamic, life giving element in every
organisation.
 DEFINITIONS
OF
MANAGEMENT
This Photo by Unknown Author is licensed under CC BY
George R Terry
Management as a process “consisting of planning, organising, actuating and
controlling, performed to determine and accomplish the objectives by the use of
people and resources”

Four Management Activities

Planning Organising Actuating Controlling

 Mary Parker Follett
“art of getting things done through people”

Two weaknesses of this definition are

• Art deals with the application of knowledge. Management

also involves acquisition of knowledge i.e science.
Management based on rules of thumb or intuition is not
correct management

• This definition does not throw light on the various functions

of a manager.
 Management Activities
Organisin Controllin
Planning Actuating
g g
Managers
think of their Managers Managers
actions in coordinate the attempt to
Managers
advance, their human and ensure that
motivate and
actions are material there is no
direct
usually based resources of deviation
subordinates
on some the from the norm
method, plan organisation. or plan
or logic
Management Functions
Newman and Summer - organising, planning, leading and controlling.

Henri Fayol- planning, organising, commanding, coordinating and

controlling.
Luther Gulick - “POSDCORB”, planning, organising, staffing, directing,
coordinating, reporting and budgeting.

Warren Hayens and Joseph Massie- decision making, organising, staffing,

planning, controlling, communicating and directing.

Koontz and O’ Donell - planning, organising, staffing, directing and

controlling.
Management
Functions
Planning
Organizing
Staffing
Directing(leading)
Controlling
Innovation
Representation
Planning
function performed by managers at all levels- top, middle and
supervisory.

Plans made by top management for the organisation as a whole

may cover periods as long as five or ten years.

Plans made by middle or first line managers, cover much shorter

periods(next day’s work or a two hour meeting)
Organizing
To organise a business is to provide it with
everything useful to its functioning:
personnel, raw material, tools, capital

Human Material
Organisation Organisation
Staffing
Find the right person for each job

Selection and training of the future

managers and encouraging highly
disciplined approach to work

Suitable system of compensation.

Directing
Financial

Motivation

Non financial

Directing Manager guides

Leadership
and influences

Passing
Communication information and
understanding
 Controlling
Manager must ensure that
■ Everything occurs in conformity
to plans adopted.
■ Whether instructions are used
correctly
■ Whether principles are
established as planned.
Controlling Functions
■ Establishing the standards of
performance
■ Measuring current performance and
comparing against the established
standards.
■ Taking action to correct any
performance that does not meet the
standards.
Innovation
Creating new ideas which may
either result in the development of
new product or finding new uses of
old ones. It is not for an organisation
to grow bigger, but it is necessary
that it constantly grows better.
 REPRESENTATION

 Manager has to represent his organisation

to the stake holders, government
officials, labour unions, financial
institution, supplier, customer etc.
 Manager must win their support by
effectively managing the social impact of
his Organisation.
■ Top management: consists of Board chairman, the company Presidents,
and the Executive Vice- Presidents. Top Mangers require conceptual
skills.
■ Middle management: consists of vast and diversified group consisting
plant managers, personnel managers and department heads. Middle
managers need human relations skill.
■ First-line (Lower) management: is made up of foreman and white
collared supervisors. They require technical skills.

LEVELS OF MANAGEMENT
ROLES OF A MANAGER

Interpersonal Informational Decisional

Roles Roles Roles
Interpersonal Roles
■ Figure head: performs duties of ceremonial nature such
as greeting the touring dignitaries, attending the
wedding of an employee, taking an important customer
to lunch etc.
■ Leader: every manager must motivate and encourage
their employees, try to reconcile their individual needs
with the goals of the organization.
■ Liaison: in this role, every manager must develop
contacts outside the vertical chain of command to
collect information useful for the organization.
Informational Roles
■ Monitor: must perpetually scan his environment for
information, interrogates his liaison and subordinates to
get any solicited information useful for the organization.
■ Disseminator: manager passes the privileged
information directly to the subordinates who otherwise
would not have access to it.
■ Spokesman: may require spending a part of the time in
representing the organization before various outside
groups having some stake in the organization such as
government officials, labour unions, and financial
institutions.
Decisional Roles
■ Entrepreneur: in this role the manager proactively looks out
for innovation to improve the organization by means of creating
new ideas, development of new products or services or finding
new uses for the old ones.
■ Disturbance handler: assume responsibility for handling an
unexpected event or crisis. Manager must act like a fire-fighter
to seek solutions to various unanticipated problems.
■ Resource allocator: must divide work and delegate authority
among his subordinates. Assign resources between functions
and divisions, set budgets of lower managers.
■ Negotiator: must spend considerable time in negotiations.
seeks to negotiate solutions between other managers, unions,
customers, or shareholders.
MANAGERIAL SKILLS
 Conceptual Skills – deals with ideas
 Human Relation Skills – deals with people
 Technical Skills – deals with things
Management as a Science, Art or Profession
Science Art Profession
 Methods of the enquiry are  Practical Knowledge  Existence of organized and systematic
systematic and empirical  Personal Skills knowledge.
 If the information can be  Creativity  Formalized methods of acquiring training
ordered and analyzed and experience.
 Results are cumulative and  Existence of an association with the
communicable professionalization as a goal.
 Existence of an ethical code to regulate the
behaviour of the members of the
profession.
 Charging of fees based on service.
PLANNING – NATURE, IMPORTANCE and PURPOSE
Planning involves selecting missions and objectives and deciding on the
actions to achieve them, it requires decision making that is, choosing a
course of action from among alternatives.

A primary functional managerial activity that involves:

•Defining the organization’s goals
•Establishing an overall strategy for achieving those goals
•Developing a comprehensive set of plans to integrate and coordinate
organizational work.
NATURE OF PLANNING
NATURE OF PLANNING
■ Decision Making
■ Planning

Flexibility

Market Personnel Organisation

IMPORTANCE OF
PLANNING
■ Minimizes risk and uncertainty
■ Leads to success.
■ Focus attention on the
organizations goals
■ Facilitates control
■ Trains executives
 PURPOSE OF PLANNING
■ To give direction and bring clarity
■ To set up the goals of an enterprise in perspective, within
the environment.
■ To focus the vision on the objectives and goals.
■ To direct all other functions of management and to reduces
the impact of change
■ To select from many available alternatives so as to achieve
the objectives of the enterprise,
■ economically, effectively and efficiently.
■ Minimizes wastes and reduces uncertainty
■ Enhances efficiency
■ To form the basis for the budget and to set the standards
■ To provide effective control.
■ To minimize the cost of performance and eliminate
unproductive efforts.
 VISION - brief, focused, clear and
inspirational

TYPES OF
MISSION unique aim of an
organisation

PLANS
OBJECTIVES aims which the
management wishes organisation to
achieve

STRATEGIES opportunities, threats,

strengths and weakness

OPERATIONAL PLANS standing

plans, Single use plans
OBJECTIVES

Characteristic Requirement Advantages

s s
• Multiple number • Clear and acceptable • Basis for planning
• Priority • Support one another • Act as motivators
• Tangible or intangible • Precise and measurable • Basis of managerial
• Arranged in hierarchy • Should always remain control
• Sometimes clash with each valid • Lessen misunderstanding
other • Provide legitimacy
STRATEGIES
■ ENVIRONMENTAL APPRAISAL
 Political and legal factors
 Economic factors
 Competitive factors
 Social and cultural factors
 CORPORATE APPRAISAL
 outstanding leadership & excellent product design low-cost manufacturing skill
efficient distribution & efficient customer service personal relationship with customers
 efficient transportation and logistics
 effective sales promotion
 high turnover of inventories, and/or capital
 ability to influence legislation, ownership of low- cost
Operational Plans

Standing Plans Single Use Plan

 Policies  Programmes
 Procedures  Budgets
 Methods
 Rules
FORMS OF PLANS

Strategic Planning Tactical Planning

■ Decides major goals and policies of ■ Decides the detailed use of resources
allocation of resources
■ Done at lower levels of management
■ Done at higher levels of management
■ Short term
■ It is long term
■ Based on performance of the
■ Based on long term forecasts about organization
technology, political environment…
■ Based on day to day operations of the
organization.
STEPS IN PLANNING

Establishing
verifiable goals or Establishing Deciding the Finding alternative
set of goals to be planning premises planning period. course of action
achieved.

Evaluating and Establishing and Measuring and

Developing
selecting course of deploying action controlling the
derivative plans
action plans progress.
  Tangible and
Internal and
intangible
external premises
premises
Establishing
Planning
 Controllable and
Premises
 Constant and
non-controllable
variable premises
premises
Limitations of Planning

■ Planning is costly
■ Planning is time consuming
■ Scope of planning is limited in the case of
organisations for rapidly changing situations
■ Formulating accurate premises is difficult
■ Managers are often frustrated in instituting a new plan
simply by unwillingness or inabilbity of people to
accept it.
■ managers of any organization decide what to
do, when to do, how to do and who has to do.
■ integral part of planning.
■ Decision making and choosing the best
alternative is probably the most important
activity of the planning process.
■ In organizing, the managers decide on the
choice of structure, type of organization,
work allocation, delegation of authority and
responsibility etc.
■ In directing, managers decide the course of
action, the instruction to be given, providing
directions etc
■ In controlling the managers decide on fixing
the standards, how to control, what to control
etc.
 TYPES OF DECISIONS

■ Programmed and non-programmed or Pragmatic & non Pragmatic decisions

■ Individual & group (Collective) decisions
■ Minor & Major decisions
■ Strategic & Routine decisions
■ Simple & Complex decisions
■ Temporary & Permanent Decisions
STEPS IN
DECISION
MAKING