FCM4
UNIT 1Introduction to Basic Management Concepts Q1) What do you understand by the term management.A1) In the modern times one of the most important human activities is managing group of people. Ever since people began forming groups to accomplish aims they could not achieve as individuals, managing has been essential to ensure the coordination of individual efforts. As society has come to rely increasingly on group effort and as many organized groups have become large the task of managers has been rising in importance. Management is the process of designing and maintaining an environment in which individuals working together in groups efficiently accomplish selected aims.The basic definition of Management explain that As managers, people carry out the managerial functions of planning organizing, staffing, leading and controlling. Management applies to any kind of organization. It applies to managers at all organizational levels. The aim at all managers is the same to create a surplus. Managing is concerned with productivity, which implies effectiveness and efficiency. Q2) What are the objectives of management.A2) 1. Optimum utilisation of resources-The most important objectives of the management are to use various resources of the enterprise in a most economic way.The proper use of men, materials, machines, and money will help a business to earn sufficient profits to satisfy various interests i.e. proprietor, customers, employees and others. All these interests will be served well only when physical resources of the business are properly utilised.2. Growth and development of business-By proper planning, organisation and direction etc., management leads a business to growth and development on sound footing. It helps in profitable expansion of the business. It provides a sense of security among the employers and employees.3. Better quality goods-The aim of the sound management has always been to produce the better quality products at minimum cost. Thus, it tries to remove all types of wastages in the business.4. Ensuring regular supply of goods- Another objective of management is to ensure the regular supply of goods to the people. It checks the artificial scarcity of goods in the market. Hence, it keeps the prices of goods within permissible limits.5. Promotion of research and development- Management undertakes the research and development to take lead over its competitors and meet the uncertainties of the future. Thus, it provides the benefits of latest research and technology to the society.6. Minimise the element of risk- Management involves the function of forecasting. Though the exact future can never be predicted yet on the basis of previous experience and existing circumstances, management can minimise the element of risk. Management always keeps its ears and eyes to the changing circumstances. Q3) What are the levels of management explain them in detail.A3) Most organizations have three management levels:Low-level managers; Middle-level managers; and Top-level managers. These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid.Top-level managersThe board of directors, president, vice-president, and CEO are all examples of top-level managers.These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business.In addition, top-level managers play a significant role in the mobilization of outside resources.Middle-level managersGeneral managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the top management for their department’s function.Middle-level managers devote more time to organizational and directional functions than top-level managers. Their roles can be emphasized as:Executing organizational plans in conformance with the company’s policies and the objectives of the top management; Defining and discussing information and policies from top management to lower management; and most importantly Inspiring and providing guidance to low-level managers towards better performance. Low-level managersSupervisors, section leads, and foremen are examples of low-level management titles. These managers focus on controlling and directing.Low-level managers usually have the responsibility of:Assigning employees tasks; Guiding and supervising employees on day-to-day activities; Ensuring the quality and quantity of production; Making recommendations and suggestions; and Upchanneling employee problems. Q4) Describe in detail the principles of management.A4) Division of Work - According to this principle the whole work is divided into small tasks. The specialization of the workforce according to the skills of a person, creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour. Authority and Responsibility - This is the issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give enhance order to his subordinates; responsibility means obligation for performance. Discipline - It is obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations. Unity of Command - This principle states that each subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict. Unity of Direction - All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager. Subordination of Individual Interest to Mutual Interest - The management must put aside personal considerations and put company objectives firstly. Therefore the interests of goals of the organization must prevail over the personal interests of individuals. Remuneration - Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort. The Degree of Centralization - The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. Line of Authority/Scalar Chain - This refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. Order - Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the company. Equity - Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees, giving equal attention towards all employees. Stability of Tenure of Personnel - Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization. Initiative - Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization. Esprit de Corps/Team Spirit - This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps to finish the task on time. Q5) Distinguish between Administration and management.A5) The major differences between management and administration are given below: 1. Management is a systematic way of managing people and things within the organization. The administration is defined as an act of administering the whole organization by a group of people. 2. Management is an activity of business and functional level, whereas Administration is a high-level activity. 3. While management focuses on policy implementation, policy formulation is performed by the administration. 4. Functions of administration include legislation and determination. Conversely, functions of management are executive and governing. 5. Administration takes all the important decisions of the organization while management makes decisions under the boundaries set by the administration. 6. A group of persons, who are employees of the organization, is collectively known as management. On the other hand, administration represents the owners of the organization. 7. Management can be seen in the profit making organization like business enterprises. Conversely, the Administration is found in government and military offices, clubs, hospitals, religious organizations and all the non-profit making enterprises. 8. Management is all about plans and actions, but the administration is concerned with framing policies and setting objectives.
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