Management
Management
Management
Definition :
Definition Marketing: “The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational
objectives.” American Marketing Association “official” old definition
Nature of Marketing :
Nature of Marketing Marketing is an economic function of exchange. It is a legal process by which
ownership is transferred. It is a system of interacting business activities. It is a managerial function of
organizing and directing business activities that facilitates the movement of goods from producers to
consumers.
(cont.) :
(cont.) It is a philosophy based on consumer orientation and satisfaction . It has dual objectives – profit
making & consumer satisfaction . It is a social process by which the society gets goods and services for
the satisfaction of needs .
Scope Of Marketing :
Scope Of Marketing Study of consumer wants and needs. Study of buyer behavior. Product planning
and development. Pricing policies. Distribution. Promotion. Consumer satisfaction . Marketing control.
CONSUMER SATISFACTION :
CONSUMER SATISFACTION In the modern world consumer is the king. The consumers determine
what should be the business and where it should be prosper. Thus every marketer should importance to
consumer satisfaction. In other words consumer satisfaction is one of the major goals of marketting
MARKETING CONTROL Marketing also covers marketing control through marketing audit and
annual reports.
APPROACHES OF MARKETING :
APPROACHES OF MARKETING
TRADITIONAL APPROACH :
TRADITIONAL APPROACH The objective of traditional marketing is profit maximisation Traditional
marketing was sales-oriented and not consumer oriented. It gave emphasis to products. It was
concerned with the transfer of ownership. It gave emphasis to physical movement of goods.
Modern Approach :
Modern Approach Modern marketing is consumer oriented. Modern marketing starts and end with the
consumer Modern marketing starts before production Modern marketing is the guiding element of
business.
OBJECTIVES:- :
OBJECTIVES:- After this presentation you will be able to define – Management Nature of
Management Scope of Management Functions Of Management Role Of Managers
What is Management? :
What is Management? There is no precise definition of management. Management has decision
oriented definition, people oriented definition, function oriented definition and production or efficiency
oriented ect. But in general we define the management as follow; “ Management is the process
involving planning, organizing, staffing, directing and controlling human efforts to achieve stated
objectives in an organization.”
Nature of Management :
Nature of Management The study and application of management techniques in managing the affairs of
the organization have changed its nature over the period of time . Various contributions to the field of
management have changed its nature. Therefore the nature of management can be described as follow;
Multidisciplinary Dynamic nature of principles Relative, not absolute principles Management: Science
or Art Management as Profession Universality of Management
1-Management as Disciplinary :
1-Management as Disciplinary Management is basically multidisciplinary. This implies that, although
management has been developed as a separate discipline, it draws knowledge and concepts from
various discipline. It draws freely ideas and concepts from psychology, sociology, anthropology,
economics, ecology ect. Management integrates the ideas and concepts taken from these disciplines
and presents newer concepts which can be put into practice for managing the organization. In fact the
integration of knowledge of various discipline is the major contribution of management and this
integrated discipline is known as management.
Cont… :
Cont… MANAGEMENT AS PROFESSION 1 Existence of knowledge: 2 Acquisition of Knowledge 3
Profession Association 4 Ethical Codes: 5 Service motive Management as Emerging profession
Profession of Management in India
Cont… :
Cont… Universality of Management arguments for universality Management as a process Distinction
between management fundamental and techniques. Distinction between management fundamental and
practice Arguments against universality
SCOPE OF MANAGEMENT :
SCOPE OF 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) repairs and maintenance (f) inventory cost and quality control (g) research
and development etc.
Slide 17:
Management Functions Planning Organizing Staffing Directing Controlling
Planning :
Planning planning is the first function which is basically a logical thinking process that decides what
needs to be done in order to achieve organization's goals and objectives. It focuses on the broader
perspective of the business as well as taking into consideration, the tactical methods to get the desired
results.
Organizing :
Organizing Organizing is about setting up and maintaining the internal organizational structure in
accordance with objectives mentioned in planning stage. It also involves assigning tasks to various
individuals for the larger goal of organization's missions and objectives.
Staffing :
Staffing Staffing is the process of choosing right people for organization. It can be associated with
human resource management and involves recruitment, hiring, training and compensating the
workforce.
Directing :
Directing Directing is guiding people in the organization through the means of counseling, instructing,
motivating
Controlling :
Controlling The process of leading and influencing the task related activities of group members or an
entire organization
Slide 23:
Leader or Manager? Innovate Develop Inspire Long-term view Originate Challenge status-quo
Administer Maintain Control Short-term view Imitate Accept status-quo
Slide 24:
How This Class Works STUDENT + CLASSROOM + Instructor Guests Activities/Discussions
Videos... OUTSIDE RESOURCES Book Internet Reference Materials = KNOWLEDGE
5 M’s of Management :
5 M’s of Management Money Manpower Material Machinery Methods
Slide 26:
Managerial Roles Interpersonal figurehead leader liaison Informational monitor disseminator
spokesperson Decisional entrepreneur disturbance handler resource allocator negotiator
Roles Functions :
Roles Functions Interpersonal Informational Decisional Planning Organizing Staffing Directing
Controlling
RELIANCE GROUP :
RELIANCE GROUP The Reliance group founded by Dhirubhai H. Ambani “1932-2002”. India
provides largest sector enterprise, with business in the energy and materials value chain Group’s annual
revenues in excess of USD 22 Billion the flagship company. Reliance industries limited Fortune global
500 companies and it is largest private sector company in India.
Slide 29:
Late Dheeru Bhai Ambani
Slide 30:
Born : December 28, 1932 Died : July 6, 2002 Achievements: - Dhiru Bhai Ambani built India’s largest
private sector company. Created an equity cult in the Indian capital market. Reliance is the first Indian
Company to feature in Forbes. Dhirubhai Ambani alias DhirajLal Hirachand Ambani was born on
December 28, 1932 at chorwad, Gujarat into a modh family. His father was a school teacher. Dhirubhai
Ambani started his entrepreneurial career by selling “bhajias” to pilgrims in Mount girnar over the
weekends.
Management is the process of reaching organizational goals by working with and through people and
other organizational resources.
Management has the following 3 characteristics:
1. It is a process or series of continuing and related activities.
2. It involves and concentrates on reaching organizational goals.
3. It reaches these goals by working with and through people and other organizational resources.
MANAGEMENT FUNCTIONS:
The 4 basic management functions that make up the management process are described in the
following sections:
1. PLANNING
2. ORGANIZING
3. INFLUENCING
4. CONTROLLING.
PLANNING: Planning involves choosing tasks that must be performed to attain organizational goals,
outlining how the tasks must be performed, and indicating when they should be performed.
Planning activity focuses on attaining goals. Managers outline exactly what organizations should do to
be successful. Planning is concerned with the success of the organization in the short term as well as in
the long term.
ORGANIZING:
Organizing can be thought of as assigning the tasks developed in the planning stages, to various
individuals or groups within the organization. Organizing is to create a mechanism to put plans into
action.
People within the organization are given work assignments that contribute to the company’s goals.
Tasks are organized so that the output of each individual contributes to the success of departments,
which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the
organization.
INFLUENCING:
Influencing is also referred to as motivating,leading or directing.Influencing can be defined as guiding
the activities of organization members in he direction that helps the organization move towards the
fulfillment of the goals.
The purpose of influencing is to increase productivity. Human-oriented work situations usually
generate higher levels of production over the long term than do task oriented work situations because
people find the latter type distasteful.
CONTROLLING:
Controlling is the following roles played by the manager:
1. Gather information that measures performance
2. Compare present performance to pre established performance norms.
3. Determine the next action plan and modifications for meeting the desired performance
parameters.
Controlling is an ongoing process.
Nature and Scope of Management Accounting :
Nature and Scope of Management Accounting PRESENTED BY:- RITU GUPTA Asst. Prof.
Commerce, PGGC-11
Slide 2:
The maintenance and creation of economic value or wealth.
Management accounting :
Management accounting It measures and reports financial and non-financial information that helps
managers make decisions to fulfill the goals of an organization.
TRADITIONAL VIEW :
TRADITIONAL VIEW PRE- 1930s 1. EMPHASIS ON FINANCIAL MARKETS AND
SECURITIES. 2. LITTLE ATTENTION ON ASSET MANAGEMENT.
MODERN VIEW :
MODERN VIEW 1950s INCREASED EMPHASIS ON ASSET MANAGEMENT. 1960s
APPLICATION OF MATHEMATICAL MODELS. THEORATICAL DEVELOPMENTS IN COST
OF CAPITAL, DIVIDEND POLICY AND RISK ANALYSIS.
DIFFERENCE :
DIFFERENCE TRADITIONAL VIEW FOCUS ON THE ACQUISITION OF FUNDS. MODERN
VIEW EXPANDS THE FOCUS ON BOTH USE AND ACQUISITION OF FUNDS.
Slide 12:
1) Profit Maximization? This Goal Ignores: a) Timing of Returns b) Uncertainty of Returns
Slide 13:
2) Shareholder Wealth Maximization? this is the same as: a) Maximizing Firm Value b) Maximizing
Stock Price
INVESTMENT DECISIONS :
INVESTMENT DECISIONS DETERMINIG THE TOTAL AMOUNT OF ASSETS NEEDED TO BE
HELD BY THE FIRM. (ASSETS SIDE OF THE B/S) INVESTMENT CAN BE: 1. INVESTMENT
IN FIXED ASSETS 2. INVESTMENT IN WORKING CAPITAL DECISIONS RULE:
INVESTMENT IN A PARTICULAR ASSET CAN BE ACCEPTED ONLY IF THE RETURN ON
INVESTMENT IS MORE THAN THE MINIMUM ACCEPTABLE RATE
INVESTMENT DECISIONS :
INVESTMENT DECISIONS THE MAIN TYPES OF INVESTMENT DECISIONS CAN BE: 1.
FIXED ASSETS TO BE ACQUIRED. 2. INVESTMENT IN CURRENT ASSETS. 3. BUY OR
LEASE DECISIONS. 4. ASSET REPLACEMENT DECISIONS. 5. RESTRUCTURING, MERGER
AND ACQUISITION DECISIONS
FINANCE DECISIONS :
FINANCE DECISIONS RELATED TO THE PROCUREMENT OF FUNDS. (LIABILITY SIDE OF
THE B/S). DECISIONS ABOUT DEBT AND EQUITY MIX. THE LONG TERM ASSETS SHOULD
BE FINANCED WITH LONG TERM FUNDS AND SHORT TERM ASSETS SHOULD BE
FINANCED WITH SHORT TERM FUNDS.
FINANCE DECISIONS :
FINANCE DECISIONS THE MAIN TYPES OF FINANCE DECISIONS CAN BE: 1.
DETERMINING THE DEGREE OF LEVERAGE 2. DETERMINIG THE FINANCING PATTERN
OF LONG, MEDIAM AND SHORT TERM FUNDS. 3. ARRANGING FINANCE FOR WORKING
CAPITAL. 4. DECISION ABOUT THE INTEREST BURDEN ON THE FIRM.
DIVIDEND DECISION :
DIVIDEND DECISION CONCERNED WITH HOW MUCH PROFITS TO BE DISTRIBUTED AS
DIVIDEND AND HOW MUCH TO BE RETAINED IN THE BUSINESS. IF PROFIT IS PAID AS
DIVIDEND IT INFLUENCE THE SHARE PRICE. IF PROFIT IS NOT PAID AS DIVIDEND IT
MAXIMISES THE WEALTH OF THE SHAREHOLDER.
Importance :
Importance Increases efficiency Proper planning Measurement of performance Maximising
profitability Improve service to customers Effective management control