Meaning:- Business Environment as such is the total of all external forces which affects the
organisation and its various operations.
Features:-
1. Totality of External Factors:-Business Environment includes all external factors such as
political, economical, legal and technical factors. So, it is aggregative in nature.
2. Specific and General Forces:- It also includes both specific as well as general forces of
environment. Specific forces such as customer base, suppliers, investors which affects
business directly & general forces such as political change or economic changes impacts
business generally to all.
3. Inter Relatedness:- All those above stated forces are inter-related. These forces can’t be
explained in isolation.
4. Dynamic In nature:-Business environment is dynamic in nature. It keeps on changing eg.
Technological or political change.
5. Uncertainty:- Business Environment are uncertain in nature. It is difficult to predict the
changes accurately.
6. Complexity:- Business environment is difficult to understand due to its complex nature.
Importance:-
1. Environment provides Opportunity:- After the thorough understanding of environment , it
provides the various opportunity for businesses.
2. Threats and Warnings:- It provides the early warning signals about various future threats.
3. Helps in successful Implementation of planning :- Proper Implementation of planning can be
easily done after analysing the environment factors.
4. Creates Dynamic Environment:- It helps to create the dynamic environment in an
organisation which further helps the organisation to cope up with the rapid changes into the
organisation.
5. Provides useful Insights about the organisation :- It helps to provide the useful information
about the internal matters of the organisation.
6. Tapping useful resources:- Those resources which can’t be tap by someone, can easily be
found after the proper analysis of environment.
7. Improves work Performance:- It helps to improve the work performance into the
organisation after the scanning of various aspects of businesses on regular basis.
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After watching this video you will be able to understand the following contents :-
Scientific Management Principles :
1.Science, not rule of thumb
2.Harmony not discord
3.Cooperation, not individualism
4.Development of each and every person to his/her greatest efficiency and prosperity.
Scientific Management Techniques :
1. Functional Foremanship
2. Standardisation and Simplification of work
3. Work study( which includes-Fatigue, Time, Motion & Method study)
4. Differential piece wage system.
1.Division of work:- According to Henri Fayol, work should be divided into small specialised tasks,each performed by specialist only. Thus, specialization
promotes efficiency of the workforce and increases productivity. In addition,
the specialization of the workforce increases their accuracy and speed.
2.Authority of work:- In order to get things done in an organization, management has
the authority(rights) to give orders
to the employees. Of course with this authority
comes responsibility. So there
should be a balance between proper authority and responsibility. In other
words, authority and responsibility go together and they are two sides of the
same coin.
3.Discipline:-It is about obedience, good conduct and respectful interactions.
4.Unity of command:-(Orders from one manager) An individual employee should receive
orders from one manager and that the employee is answerable to that manager. If
tasks and related responsibilities are given to the employee by more than one
manager, this may lead to confusion which may lead to possible conflicts for
employees.
5.Unity of direction:- All employees deliver the same activities that can be linked to the
same objectives. All activities must be carried out by one group that forms a
team. These activities must be described in a plan of action. (one
head and one plan)
6. Subordinate(secondary place) of individual(particular
employee) interest:- Personal interests are always
subordinate to the interests of the organization. The primary focus is on the organizational objectives and not on
those of the individual.
7.Remuneration of employees:- The remuneration should be sufficient to keep employees motivated
and productive. There are two types of remuneration namely non-monetary (a
compliment, more responsibilities, credits) and monetary (compensation, bonus
or other financial compensation).
8.Centralisation and decentralisation:-
Centralization implies the concentration of decision
making authority at the top management (executive board). Sharing of
authorities for the decision-making process with lower levels (middle and lower
management), is referred to as decentralization. An organization should strive
for a good balance in these two things.
9.Scalar chain:- There should be a clear line in the area of authority (from top to
bottom and all managers at all levels). Each employee can contact a manager or
a superior in an emergency situation without challenging the hierarchy.
10.Order:-There should be a right place for everything and everything should
be at its right place.
11.Equity:-
Employees must be treated kindly and equally without
partiality.
12.Stability
of tenure(WORKING LIFE) of personnel(GROUP OF EMPLOYEES):- Management strives to minimize employee turnover and to have the right staff in the right
place.
13.Initiative:-
Employees should be allowed to express new ideas. This
encourages interest and involvement and creates added value for the company.
Employee initiatives are a source of strength for the organization. This
encourages the employees to be involved and interested.
14.Esprit
the corps(Union in strength):- Esprit de corps contributes to the development
of the culture and creates an atmosphere of mutual trust and understanding.
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·Gives general guidelines for ‘managerial decision making’
Frederick
Winslow Taylor
·Called Father of scientific
management.
·Concerned about factory
inefficiency due to the reason he developed scientific principles.
·Insist about the application of
scientific principles and adopt
systematic management technique.
·Disregard the rule of thumb and trial and error method.
Management Principles
·A fundamental truth that
provides a guide to thought and action.
·Gives a broad understanding of
general guidelines and decision making.
Nature
1.General guidelines.
2.Contingent or depend upon some external
factor.
3.Formed by intense practice & experimentation.
4.Having cause & effect
relationship.
5.Universal applicability.
6.Flexible (i.e. modified as per
need).
Importance
1.Improves Understanding (about
the internal management of the organisation).
2.Direction for Training of
Managers.(helps to finding out the area that where we find out our futuristic
managers).
3.Role of Management.(just like a
guide tells what a manager is expected to do in a particular situation).
4.Guide to Research in Management
(various research are being possible due to the applicability management
principles).
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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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