Management is the process of getting things done with the aim of
achieving goals effectively
and efficiently.
Effectiveness
versus Efficiency
1.Effective but not efficient:-
completing the work on time but at higher cost.
2.Efficient but not
effective:-Work Done within the framework of given cost structure without
achieving the target.
For example, it is easier to be effective
and ignore efficiency i.e., complete the given task but at a high cost. Suppose,
a company’s target production is 5000 units in a year. To achieve this target
the manager has to operate on double shifts due to power failure most of the
time. The manager is able to produce 5000 units but at a higher production
cost. In this case, the manager was effective but not so efficient, since for
the same output, more inputs (labour cost, electricity costs) were used.
Characteristics of Management
1.Goal oriented
Process: It is a goal oriented process, which is undertaken
to achieve already specified and desired objectives by proper utilization of
available resources.
2.Pervasive: Management is
universal in nature. It is used in all types of organizations whether economic,
social or political irrespective of its size nature and location and at
every level.
3.Multidimensional: It is
multidimensional as it involves
management of work, people and operations.
4.Continuous: It consists of a series
of function and its functions are being performed
by all managers simultaneously. The process of management continues
till an organization exists for attaining its objectives.
5.Group Activity: It is a group
activity since it involves managing and coordinating activities of different
people as a team to attain the desired objectives.
6.Dynamic function: It is a
dynamic function since it has to adapt according to need, time and situation of
the changing environment. For example, McDonalds made major changes in
its ‘Menu’ to survive in the Indian market.
OBJECTIVES OF
MANAGEMENT
Management
seeks to achieve certain objectives which are derived
from the basic purpose
of the business. Objectives of management can be
classified into three major categories :
·Organizational or Economic Objectives:
The main objective of any organization should be to utilize human and material
resources to the maximum possible advantage, i.e., to fulfil the economicobjectives
of a business. These are:
1.Survival: Management
must ensure the
survival of the organization.
In order to survive, an organization must earn enough
revenues to cover costs.
2.Profit: Management
has to ensure that the organization makes a profit, which is an incentive for
the continued successful operation of the enterprise.
3.Growth:
Management must exploit fully the growth potential of the organization. Indicators
of growth of a business are –(i) increase in sales turnover (ii) increase in
the number of products andemployees (iii) increase in capital investment, etc.
·Social Objectives : These objectives
involve the creation of benefits for the society. This includes :
1.Supply of good
quality products and services at reasonable prices.
2.Using friendly
methods of production
3.Generating employment
opportunities to the
disadvantaged sections of the
society.
·Personal Objectives: These
objectives are related
to the employees
of the organizations. Management
should satisfy their diverse needs such as :-
1.Competitive salary
and perks
2.Peer recognition
3.Personal growth and
development
IMPORTANCE OF
MANAGEMENT
·Management helps in achieving goals bygiving
a common direction to the individual efforts.
·Management increases
efficiency by reducing
the costs and
increasing the productivity.
·Management helps individuals to develop
team spirit, cooperation and commitment
to group success.
·Management helps in the development of
the society
·Management helps
people adapt to
changes so that
the organization is
able to maintain its competitive
edge.
IMPORTANCE OF
CO-ORDINATION
·Coordination helps
the enterprise present
a picture of
unified approach to the
problems of the enterprises.
·Coordination helps in achieving the
commonness of purpose.
·Coordination helps in
avoiding conflict between
the specialists and
the other members of the
organization.
·Coordination helps to ensure unity of
action among interdependent departments.
·Coordination helps to integrate efforts
of people in the organization.
Co-Ordination (Essence)
Meaning
:- The process of organizing people or groups so that they work together
properly and well.
Features:-
COORDINATION INTEGRATES GROUP EFFORTS
·Coordination is applied to the
group efforts and not to an individual.
·If only
an individual is
working, the question
of coordination does
not arise.
·Coordination helps to integrate
the efforts of all individuals who may have their personal goals in their
minds, are directed towards the goals of the organization.
(2) COORDINATION ENSURES UNITY OF ACTION
·The managers working at the
different levels ensure that efforts of the individuals are focused towards
achieving the organizational goals.
·It is the force that bids the
working of individuals and departments and eliminates overlapping of
activities.
(3) COORDINATION IS A CONTINUOUS PROCESS
·Coordination is not a one-time
process.
·It begins at planning function
and continues till controlling.
(4)
COORDINATION IS A PERVASIVE FUNCTION
·Coordination is required throughout
the organization at different levels, among different divisions, among
different departments, different groups and individuals.
·There may be some common
functions between different divisions and departments and functioning of one
department affects the functioning of other departments.
Conclusions
:-So, to
eliminate overlapping and
wastage of resources,
coordination is necessary.
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As per time Period:-It may be a) Current Liability or b) Non- Current Liability
Current Liability:-1. Expected to be paid within one year.
2. Examples Creditors, Bills Payable, Outstanding Expenses etc.
Non Current Liability also called fixed liability:- Those liability which are to be repaid after one year.
Examples are:- Public Deposits, Long term loans etc.
As per the party to whom our firm owes:-
a.) Internal Liabillity or b) External Liability
Internal Liability:-Means the liability of the business towards its owners also called capital.
External Liability:- Means what amount our firm owes to outsiders.Examples Creditors, Bank Loans, Outstanding Payment etc.
By the end of this lecture you will be able to understand the various types of liability mainly in the form of internal v/s external liability and current v/s non-current liability.
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As per Physical structure assets may be a) Tangible or b) Intangible
Tangible Assets:-which can be seen by naked eyes & can be touched(in short have some physical existence). Eg. Land and Building, Computers< Motor Vehicles, Stock etc.
Intangible Assets:- We can't touch but still has its monetary value. For eg.:-Copyright, trademark, Patent, Geographical location Rights etc.
As per Time factor assets may be :- a) Non-Current Assets or b) Current Assets.
Current Assets :- a) Those which are meant for sale
b)Purpose:-Purpose to hold these kind of assets is to make these assets converted into cash within an accounting year. Examples:- cash, debtors, stock, B/R etc.
Non Current Assets or Fixed Assets :- a) which are held for the continuous use into the business.
b) Purpose :- By the help of these assets we will produce goods and services.
c) these are not meant for resale purpose.
Examples :- Land and Building, Computer, Plant and Machinery Vehicles etc.
By the end of this lecture you will be able to understand the following topics:-
1.)Difference between tangible and intangible assets.
2.)Difference between Current and Non-current assets.
3.)Trading activity and non trading activity.
