[Music] one i am sure all the participants have their codes outlined and what they will be the process i'm going to talk for about 15 minutes try to cover maximum and during that i will try to share my experience and then probably 10 minutes we can devote for question and answer uh coordinator will go through chat box and ask me questions and this will be the methodology for next 14 sessions so let me thank the management for giving me this opportunity to share my experience and whatever this particular subject principles and practices of management is
a very very close to my heart and i like this particular segment i've been teaching for last almost 35 to 36 years so let's start it's not that i'm going to refer only these slides but in between i'm going to talk a lot of other things as well so what are we going to learn throughout this 14 section i think this is what is a plan we'll start with the introduction of management and then i think you do have all these course groups but certainly we're going to talk about planning that organizing directing these are
the functions of management that we'll see later and uh today's session i intend to cover these topics plus two subjects which is mentioned in your unit that is factors affecting uh the establishment of business and nature and scope so let's start and we will go a little quickly because time is quite limited now firstly when we talk about business management so let's understand what is business because we are going to study business organization during this entire course business may be identified as any activity which leads to the creation of utilities of goods and services for
the satisfaction of human wants in return of price the three factors in these definitions are very important creation of utilities of goods or services for what for the satisfaction of human wants and in return for the price so we are trying to satisfy human wants by giving service or by selling a product and in return the total transaction we either get a profit or loss nowhere in this particular definition profit or loss is mentioned so what one gets at the end of that activity decides whether you're doing business profitably or a loss your organization normally
we show organization like a bilabial like structure the top management effects body corporate at the top then senior level management middle level management supervisors and down below grassroot workers is normally in a manufacturing organization so what is definition talks about which is given by not cut arrangement by which tasks are assigned to men and women so that their individual efforts contribute effectively to some more or less clearly defined purpose for which they have been brought together i repeat arrangement by which tasks are assigned to men and women so that their individual efforts contribute effectively to
some more or less clearly defined purpose for which they have been brought together so when we start a business we have to have an organization as i said that normally organization we we show like a pyramid like structure and then we hire people we recruit people we and for that that is the function of staffing we are going to see during our course staffing basically human resource but then the individuals are joining organizations with some aspiration they also do have their goals so as the organization also having goals so all individual goals as well as
the organizational boards are required to be coordinated properly but somewhere in this definition it is returned the purpose is not so clearly defined in some companies it is observed that actually the purpose by far we are in the business it's required to be cleared there has to be a clarity but in some organizations i'll say private organizations at times at times nowadays i think things are changing yes uh even the seniors or the managements are sharing the purpose but still still there is a little secrecy what i have observed in my experience here comes the
definition of administration that we saw business administration so we have seen business we have seen organization organization full of people and then comes administration there are three elements of this first formulation of goals second the choice of ways and means to achieve these goals and three direction of people in some group purpose this is what is administration so every organization when they start they do have their goals their target their objectives and that's why we always say we use this particular term predefined objectives or predefined tasks so whatever is happening in the organization say management
fine we don't move into that we will cover this point little later during our course i am going to share this so we do have targets and then that is formulation of goals second we have to decide the choice and uh ways and means to achieve this book that is what is the strategy we talk about especially when we divide our yearly business into a budget the budget stations are very important for any organization normally starting in our country the budgets to march right now we are in april 20 from april 21 to march 22
is a financial year and we are right now in the first quarter of business that is april may june most of the organizations have formulated their budgets sometime in december four five months in advance because they have to divide decide in advance what they are what they intend to do and how are they going to do and for that they have required to give direction of people those who are working for them this is very important why do we require management because we require management because the people working over there should work as per the
expectations of the top management nobody works individually that is the beauty of balance we have to work in team and the teams are given targets there are individual targets there are targets there are group targets and all are required to synchronize to achieve the final targets of the organize normally we consider these are the eight different aims english letter m eight aims of management what are the main money maintenance maintenance women working in organizations men money materials machines methods markets milieu and minutes the qualities these are the eight different resources now when you concentrate on
a particular resource that becomes a professionalized branch professional branch of management men and women working in the organization becomes human resource management then money management financial money materials management machines and methods put together becomes a production management marketing manner minutes time management and mini you meaning of this word will you is environment so there are two types of environment one what is happening in the organization that is a pyramid internal environment and external environment so all business organizations are operating in two different environments internal what is happening and the factors of external environment acting on
any organization now when we talk about is pre-selected objectives or pre-selected targets very important aspect i'll cover a little later let me see okay let us consider what is management and then i'll come survival part of it because for any organization survival is a main key because whatever business you are doing you have to do that business profitably you have to generate surplus and for that survival the strategy is growth and development growth in terms of for a commercial organization profit or surplus because the moment somebody is doing profits profits can be invested in the
new project because one cannot just depend upon a particular business you have to keep on thinking some alternatives because you can get the result for a particular business for a period but at the same time you have to have alternative uh businesses as well you have to plan for so what is management now the simple definition of management if you divide this world into three parts manage men t stands for tactful men and women now here are what's human issues so managed people tactfully managed very simple definition manage people tactfully another definition is to get
the work done is managed to get an extraordinary work done from an ordinary person is a management simple definition simple definition earlier i just said these are the eight different resources these two words when we use these resources two words talks about management optimum utilization of these resources is money say optimum utilization of people optimum utilization of capital money optimum utilization of material is managed right so what exactly management is management is an artful science it's a direction of people towards predetermined goals i'll be mentioned because we all are working for achieving those predetermined goals
because in commercial organization in professional organization or an organization where they are managed properly we don't move into dark we have to have your objectives little later we are going to see that the principles of managements are universally applicable right now the formula which i given it for administration i remember in my first lecture already communicated that you must know your administration as an individual as a student as a teacher as an individual you have to have your objectives that is goals then you have to decide your choice and ways to achieve those and over
here direction you don't have any subordinate to achieve your opportunities so you have to direct yourself so this principle or this formula of administration is applicable for individuals so direction of people towards pre-determined goals that is in the organization direction of self towards achieving your individual goals that becomes your own administration there is accomplishment of desired objectives by establishing an environment available in to performance by people operating in the organized groups we have seen organization there are different groups there are different departments normally marketing human resource materials finance so on and so forth in a
manufacturing there are many not many plants what we call plants or shops where the actual manufacturing activity is going on we are going to see the departmentation when we talk about organization in our subsequent sessions but then all this grouping is done but what is very important which i was referring to internal environment there's a beautiful line beautiful sentence in a book called fools order name he talks that is a duty of manager please listen this is a duty of manager to create and design an internal environment in which people working in different groups can
work together as a team the manager is required to create condition environment in which people work as a team to achieve of course organizational objectives this line is quite simple easy to understand but in reality i don't think getting work done is that easy this is what is normally that's why we require management that's why you're doing management once you do that probably you will definitely uh you are going to get a good job and in your career you are going to promise you may join as assistant manager maybe after 10 years will be general
manager or you may be a ceo that should be the aim that should be the career path which i referred last night the point is how to create that condition environment that depends upon manager to manager or management to management i will not talk about that right now but then if the people are not working why why we require management why we require managers normally there are three types of people we have studied the first at a lower rank is leisure ethics this depends upon three ethics leisure work and work i will explain one by
one leisure ethics people are in discipline they come late for the office they while a lot of time if uh half an hour lunch they spend little more time if there is a recreation room they take full advantage of that recreation road and then if they get time they work happy lucky that type of people because we just call them passengers they are just sitting in organization not bother what are the objectives of the organization what are their own objectives bother their indiscipline now these people can be given a training probably and then they can
be developed leisure ethics just passenger the next upper group is worth ethics wrth worth now these people are disciplined as compared to the first group they come on time start their work do their job but they have some calculation in their mind they know their salary per month say x rupees x because this worth changes from person to person employed to employee normally in organization we work for about 25 or 26 days for weekly offs normally so they calculate their per day's worth and this is the differential because it differs from person to person so
what happened in this group they start they man their table they do their job but during the day at some time they get a feeling that their worth of that day is over and this is very dangerous it may happen suppose nine o'clock is office it may happen at ten o'clock or it may happen at two o'clock or twelve o'clock thereafter they just sit there and don't contribute little dangerous i call them dangerous because for leisure ethics people you can check them you can control them but these people are there they have done their job
but they stop at some stage getting a feeling if my work is over then they don't control they are performers as compared to passengers they are performers but what we need to develop in the organization is the last third topmost major that is work ethics so i explained leisure ethics i explained worth ethics and now we are talking about work ethics work these are the people who are achieving this achievers means yes they are there to achieve something for themselves as well as for the organization and what we need to develop future generations are these
achievers you are when you are doing this management course trying to be achiever i think i already give a reference of four motifs need for achievement need for affiliation need for power and need for competence we'll receive that again during leadership but then achievement motivation is very important and these people work ethics we require so that's why getting the things done is not that easy in one of the style of leadership we are going to see that or say blanchards situation or leadership the maturity on the part of follower makes the difference a manager is
required to study the maturity accordingly difficult because you cannot have a uniform style for all the people the beauty of leadership next it's a multiple organ managers business managers managers and managers worker and work when we'll see nature of management this point will be good it's a multi-problem they have to manage business because they are to be profit they have to be surplus they have to manage managers they have to manage workers and work it's a process of getting things done through the people for the successful accomplishment through and i mean that through the people
means creative conducive environment internal environment we have to create a conducive environment we have to motivate people here comes motivation communication leadership this becomes a function of direction we are also going to see in detail later is always the art of possible art of acceptable and art of fruit some definitions are many i'll given you a simple definition but we just read through management is an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration it is that function of an enterprise which concerns itself with the direction
of direction and control of various activities to attend business objective again and again we are talking about attaining business objectives management consists of getting things done through others manager is one who accomplishes the objective by directing the efforts of others objective why we require management the main objective of any management is to make profit or surplus the logical and publicly desirable aim of management should be surplus as i told you that when we start a business we never start a business to close down that we want our business to be a continuous activity whether you
make a loss of profit depends upon how you manage your business if there is a proper management there are less chances of creating loans i'm saying again less chances because the external environment environment and other factors are not covered so far but if there is no proper management then there will be a chaos you see management when we are getting the voter just take a example of an orchestra musical so there is a band master and then there are 40 50 musicians sitting in front of him they are playing different instruments and this director of
that orchestra by his stick he directs those different musicians to play their musical instruments not the way they like is coordinating that music and therefore what happens is a good music good symphony is created you remove that director of orchestra and ask those 50 musicians to play there won't be a proper coordination and there there will be a chaotic music this exactly happens in the organization we require manager basically he controls everything he is coordinating these are all functions now we already started talking about different functions his controlling his coordinating why again to achieve pre-determined
targets let's go first we already talked about internal environment there are certain factors of external environment act on any business these are the economic conditions or government rules regulations social cultural conditions legal technological conditions environmental conditions and ethical factor these are the factors act on any business and every manager have to scan that external environment that is what we always talk about you will come across one word one concept called world first time also i think volatility uncertainty complexity and ambiguity manager has to take us take a start what is happening what is going to
happen in future and accordingly we have to act i think you are having one subject called change because we have to be ready to accept the change before that change takes over you you have to be prepared for that particular change and as i said growth and development is the strategy for survival i will skip this does not it's a good in our time i mean i was a student this is a very famous book in search of excellence thomas peters and robert waterman has given about their success stories then about 25 30 years back
if you google it you will find lot of discussion on this because the successful company then today they are not successful and this is very important a company may be successful today but you cannot say whether the same successful company will remain successful after 10 years no because business is dynamic we all are going through this pandemic situation and you must be reading every day what is happening in this business plan when especially the operations are not full screen we all know that this is what is the external factor pandemic acting on a business whether
it is a taxi owner or even the international flight so hotel business tourism all are affected manufacturing to some extent beyond managing but not through the full extent with a lot of restrictions a lot of restrictions fine for us about 30 days in our country in our state most of the shops are closed total lockdown except some shops or hotels giving uh take away uh the medical fine otherwise all shops are closed what must be happening so we have to see the uncertainty now there's one in the chapter one i think you have some factors
affecting establishment of business organization i just read through this what are the factors the nature of business that is the first factor nature of beginners means whether you are going to start proprietorship or partnership or a company organization these are the reasonableness you will study all the data in some other course size and area of operation scale of operation scale of operation basically uh a selection of a suitable form of ownership organization is an important entrepreneurial decision because it influences the success and growth of a business for example it determines the decision of profits and
risk associated with the business and so on different forms of private ownership organization differ from differ from each other in respect of division of profit control risk and legal formality then one more factor is degree of control desire basically a person who desires direct control over the business appears prefers proprietary rather than company because he can control that particular business because there is a separation of ownership and management in the latter case in company though we say yes shareholders are in a big firms we say shareholders are the owners of the company but they don't
have say in day-to-day business there's a board of directors there's a chairman and managing director they manage the business of course they are accountable responsible to the shareholder because shareholders are interested in how much dividend they are getting at the end of the year fine this is what in big company happens the owners they don't talk i have a share of some company i can't say i'm owner of sorts no i'm a shareholder right but this is what proprietorship partnership and uh big company division of surplus as i said has sold trader this is all
the profit of his business but he also bears there is if he is a sole trader then he has to bear the risk of the business you need to bear the unlimited personal life if a person is ready to bear unlimited personal liability it desires maximum share of profits proprietorship and partnership are preferable such companies duration of business how long you are going to conduct it said that temporary or adopt ventures can be organized as a proprietorship and partnership as they are easy to form and dissolve they can easily dissolve also but they lack continuity
in stability enterprises of a formal nature can be better organized as a joint stock companies and cooperatives because they enjoy perpetual succession government rules and regulations a lot of government's rules and regulations i need not talk about that i think if they declare chemical zone then a chemical company is required to be established over there you cannot go in other uh industrial state and start there will be a lot of opposition by local source we have seen that but there is one thing we should study ease of doing business please go through different parameters given
in this ease of doing this ease of doing business index was for given namely michael clean carolee and simon they have formulated certain factors and on that particular factor ease of doing business is accepted today our country india is 63 amongst 109 i think ease of doing business new zealand is number one with 86.8 score then singapore 86.2 hong kong 853 denmark and india is 71. it is our 190 country he's a businessman how easy for an entrepreneur for a business to start a business in that country and there are there are various factors on
which this particular ease of business is uh ascended i think in last two years we have moved up by 14 points so this is what is the uh theory talks about okay after now talking all this let's talk about these two efficiency and effectiveness very important words in management efficiency doing things right ability to do things right an effectiveness is doing the right thing setting the right goals a person may be efficient but not that all the time is effective because effectiveness depends upon various other factors as well i'll give a simple example a pilot
of a jumbo the fellow has to be a captain has to be efficient no doubt because he has gone up to that level by various process but every time amen when he lands on a particular airport that landing will differ and decide whether he was effective in lighting or not i have experience in frankfurt once when i was in jumbo whenever normally jumbo is a very smooth line normally but that day what happened i don't know there were two three jerks even for a jumbo because that particular activity depends upon external factors like speed of
wind his judgment about about the runaway and temperature outside very various factors if he goes wrong then very even last year there was a very serious accident in our country then then very difficult to control so every field efficiency and effectiveness matters efficiency is doing the right things ability to do the things right i'll give you a formula this is a very important formula again universally applicable it's not only for managerial effectiveness but if you just take out the word manage daily food teachers effectiveness this holds good if you put student effectiveness this formula holds
good this formula is basically three points information skills and vision what type of information you have to have functional information organizational information and environmental information functional information what is expected out of you organization information probably when you get a job during induction program their hr people will definitely take you through induction they will tell you the organizational information and the environmental information the points which are already given the external environment points like government economic factor ethical factor and all those factors right environmental information one must know that's why we say now the manager is required
to scan through external environment he has to see what is happening around what is going to happen in future or forcing the things very important then come different skill interpersonal skills and functional skills now you find this word functional in the first factor as functional information and the second factor is functional skill there has to be difference the first factor is theory the second factor skill factor is practice and that's why the subject is principles and practices of money one can learn books and books of management theory but how to do it in the faculties
and that's why it is expected that the students or even a teacher they are required to go on field for students we do have projects they are supposed to go and work those who are not working in the industry i'm sure there are a lot of people working in the industrial organization for them it is good because they are already on the practical ground they are learning now they can correlate theory to practice but those who are not working whenever they get a chance to do a project they must they must experience that particular culture
of any organization whatever every one is fact organization simple example a non-swimmer if you give a diploma swimming but you never allow him to go to cool what will happen he will get a diploma because he has read the books he has read the theory of swimming but when he is learning that theory that fellow is required to go and jump you know cool swimming pool under some guidance because initially that fellow is required to learn how to grow slowly slowly then he will move power maybe after a couple of months practice and then different
strokes in swimming once he start practicing then yes they may he may represent his school or college once he still developed competency and uh expertise he may represent the state and the nation this is what happens in swimming the same thing is required to happen in management so when you are learning theory you should always search for a practical approach how to manage that is very important the last point is vision and this point is visual is basically there are two aspects inside and forcing inside the understanding of how his job his her job contributes
to the objective of the organization inside why i'm doing the job how it is contributing to the objectives of the organization once you start putting inside and once you start applying your mind probably the process of occasion start continuous improvement that is what is the process what it means just ask can you save some time can you save some effort can you save some money these three factors can you save some time can you say some efforts and can you save some money i think you can you can create such a procedure what in management
we talk about simplification and slowly slowly use both towards kaizen continuous improvement and continuous improvement when you save time when you save money naturally it adds to your profit margins that is what is again fine forcing the thing how the job is likely to likely to develop in future as the businesses are not static the jobs are also going to change 35 years ago when i was in a company when computers entered i remember our hr organized our tools to visit computer how it looks like today every table has a computer or a laptop new
versions and lot of uh technology so this is all now one should be worried about how my job is going to change and how am i equipped to take on that particular job with this i will not show you the slides i think 10 minutes are there i will talk about nature and scope of management this is something in your module firstly it is universal universal common and crucial to all organizations irrespective organization whether business organization manufacturing sector social organization government organization teaching everything you can apply principles in all situations regardless of the nature location
and size of the enterprise principle we are going to see later and if you all and many many people are given a lot of principles in the history of management thought which will be the third module i am going to change it a bit i'll cover that as a third module i will cover this principle it is a social nature social organization what is social why social managing people and groups because an organization is a part of society there are people working in different groups and you are required to manage people individually as well as
working in groups there is a subject in organization very important subject how to resolve conflict there are going to be conflicts interpersonal intra personal inter group content how to resolve because we cannot afford to have conflicts that's why management various levels of dynamism understanding and sensitivity when we deal with people intangible beauty i mean what is interest why it is intangible management is intangible it is not a thing or object which you can touch but you can feel the presence you cannot tell this is management you cannot do that but you can feel the presence
through the results of the efforts as adequate orderly work output and employee satisfaction this is intangible you cannot see management but once you enter into an organization just by look in the reception or some office one can one can test one can analyze what's sort of this organization you know when this iso series started all procedures are defined fine normally i tell my students the way you park your scooters and ovular outside an institution talks about whether you're really learning management or not the way you upkeep your inside that particular campus talks you feel the
difference you feel the presence of man that is and you can you can judge by results it is a dynamic nature as it must remain equipped to force various changes in the corporate environment caused by social economic technological political and human factors as we have seen the external factors right all these factors we have to look into and keep on changing our processes our methodology goal oriented needless to say because we have to have a goal they all focus on achieving specific goals management processes aim to achieve organization goal that are practical and realistic very
important that are practical and realistic in goal setting we have seen that goal has to be smart specific measurable achievable realistic and time bound even the organization yes we put a little harder goal we press people not out because unless and until you press people you don't get a good output at the same time we give some incentives also for them right production factors managers are vital to utilizing capital and labor and therefore significant factor of production because when we do business we produce something or we offer service that is what we have seen earlier
so the first main money material these are the three basic factors you have to use all these factors for production purposes right coordinating between groups of people all physical and hr resources require efficient coordination to achieve optimum level physical and hr issues what we are seeing those eight names of management except people men all other resources are materials resources if you are having a knowledge how to use a material no issue if you have a knowledge of how to do marketing no issue you can do it how to utilize time no issue but then the
people are dynamic to get the work done i already explained to get the work done you require an art you require that tact because they are thinking people they are thinking animals that is what somebody is saying and you're dealing with those thinkers so you require a lot of coordination lots of scottish very important function we are going to see as a different function we are going to see this coordination it's a crucial part of society so society has a great impact on management and vice versa management similarly management has a great impact on society
managers are responsible for contributing to society through charity organization and growth nowadays there is a rule in our country that i think two percent of profit is required to be given as csr is the rule and many companies are involved in good csr next is professional nature professionals manager must have proper knowledge and managerial training knowledge and training they must also confirm the code of conduct and be conscious of their human and social responsibilities so first they should not have a knowledge at the same time they are having a they should have a training you
will find in an organization there is a learning and development department responsible for training at various levels like from workers needing hand supervisor development program junior level management program senior level management program and even some directors are sent to harvard for their programs this is seen because the human resources are required to be trained for future changes because management is dying and last is management process management consists of sequence of action that we conduct towards an end we are doing sequence of action ultimately we have to achieve our objective so friends for the first part
first schedule whatever i've designed i have covered most of the topics i've shared some of my experience also i think it's almost 49 minutes so i will stop you can get a little two minutes extra to ask some questions and let me share i'm told that these topics are going to be covered by other teachers also in details in details so don't worry even if i miss something don't thank you
