PRINCIPLES OF MANAGEMENT

COURSE CODE: - BBX/BBB/BDM/BBACBX1101

BBX-General
BBB-Banking & Finance
BDM- Digital Marketing
BBA- Business Analytics
 UNIT: - 1
NATURE OF MANAGEMENT

CONTENTS: -
*MEANING AND IMPORTANCE
*FUNCTIONS
* ROLE OF MANAGEMENT
* MANAGEMENT AS AN ART, SCIENCE,
PROFESSION & SOCIAL SYSTEM
* CONCEPT OF: -
 MANAGEMENT
 ADMINISTRATION
 ORGANIZATION &
 UNIVERSITY OF MANAGEMENT
 LECTURE: - 1.1

Management
– as how the mind controls the human body and its function similar management (mind) controls
the various activities (human body) in the Organisation.
- Collection of physical equipment’s, 4 Ms in Organisation – Men, Machine, Materials, Money, and
leads to nothing. For efficient and profitable functioning, it is necessary that all these factors are
put to work in a coordinated manner.

Management Definition
Management is the art of getting things done through others.
Harold Koontz Def as “Management is the process of designing and maintaining
an environment in which individuals, working together in groups efficiently to accomplish selected
aims”.

• Managers carry out their managerial function

• Applies to any kind of Organisation
• Applies to managers at all Organisational levels
• Aim is to create a surplus
• Concerned with productivity, implies effectiveness and efficiency
Management of 4 Ms in the Origin – Men, Machine, Materials & money
IMPORTANCE OF MANAGEMENT
 It helps in Achieving Group Goals
 Optimum Utilization of Resources
 Reduces Costs
 Establishes Sound Organization
 Essentials for Prosperity of Society

QUESTIONS

1. What are the four Ms of management? How are they important for the
success of an organization?
2. What are the four functions of management? How do they work
together to achieve organizational goals?

LECTURE: -1.2

FEATURES
Management is an activity concerned with guiding human and physical resources such that
organizational goals can be achieved.
Nature of management can be highlighted as: -
a) Management is Goal-Oriented - The success of any management activity is accessed by its
achievement of the predetermined goals or objective. Management is a purposeful activity.
It is a tool which helps use of human & physical resources to fulfill the pre-determined
goals. For example, the goal of an enterprise is maximum consumer satisfaction by
producing quality goods and at reasonable prices. This can be achieved by employing
efficient persons and making better use of scarce resources.
b) Management integrates Human, Physical and Financial Resources- In an organization,
human beings work with non-human resources like machines. Materials, financial assets,
buildings etc. Management integrates human efforts to those resources. It brings harmony
among the human, physical and financial resources.
c) Management is Continuous Management is an ongoing process- It involves continuous
handling of problems and issues. It is concerned with identifying the problem and taking
appropriate steps to solve it, e.g., the target of a company is maximum production. For
achieving this target various policies have to be framed but this is not the end. Marketing
and Advertising is also to be done. For these policies have to be again framed. Hence this is
an ongoing process.
d) Management is all Pervasive - Management is required in all types of organizations whether
it is political, social, cultural or business because it helps and directs various efforts towards
a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms
all require management. Whenever more than one person is engaged in working for a
common goal, management is necessary. Whether it is a small business firm which may be
engaged in trading or a large firm like Tata Iron & Steel, management is required
everywhere irrespective of size or type of activity.
e) Management is a Group Activity - Management is very much less concerned with individual
‘s efforts. It is more concerned with groups. It involves the use of group effort to achieve
predetermined goal of management of an organisation.
FUNCTIONS OF MANAGEMENT

Management is the process of planning, organizing, staffing, directing, and controlling the
activities of an organization to achieve its goals. The functions of management are
interrelated and depend on each other for effective performance. Here is a brief description
of each function and a flow chart that shows their relationship:

 Planning is the function of setting objectives, determining strategies, and developing

plans to achieve them. Planning involves analysing the current situation, forecasting
the future, and choosing the best course of action. Planning is essential for providing
direction, reducing uncertainty, and increasing efficiency.

 Organizing is the function of arranging and allocating resources, such as people,

money, materials, and equipment, to carry out the plans. Organizing involves
designing the structure of the organization, defining roles and responsibilities, and
 coordinating activities among different units. Organizing is essential for creating a
framework, facilitating communication, and enhancing cooperation.

 Staffing is the function of recruiting, selecting, training, developing, and retaining the
human resources needed to perform the tasks. Staffing involves assessing the skills
and abilities of the employees, matching them with the jobs, and providing them
with feedback and motivation. Staffing is essential for ensuring competence,
enhancing performance, and maintaining morale.

 Directing is the function of leading and influencing the employees to work towards
the goals. Directing involves communicating the vision, mission, and values of the
organization, setting standards and expectations, and resolving conflicts and
problems. Directing is essential for providing guidance, inspiring action, and fostering
teamwork.

 Controlling is the function of monitoring and evaluating the results of the activities
and taking corrective actions if necessary. Controlling involves measuring the
performance against the objectives, identifying deviations and causes, and
implementing changes and improvements. Controlling is essential for ensuring
quality, improving efficiency, and achieving effectiveness.

QUESTIONS

Q What are the features of management? How do they impact the

way managers work?

Q A new manager has just been promoted to head of the marketing

department at a large company. The department is struggling to meet
its goals, and the manager is not sure where to start. What are the
four functions of management that the manager should focus on to
turn the department around?
 LECTURE: - 1.3

MANAGEMENT AS AN ART, SCIENCE, PROFESSION & SOCIAL SYSTEM

Management is a complex and multifaceted phenomenon that can be viewed from different
perspectives. Each perspective highlights a different aspect of management and reveals its
nature and characteristics. Here is a brief explanation of each perspective:

 Management as an art: Art is the skillful and personal application of existing

knowledge to achieve desired results. It can be acquired through education, research
and practice. As an art, management involves the creative use of knowledge and
experience to solve problems and achieve goals. Management as an art requires
some kind of innovation and creativity to follow the basic principles learned.
 The essential characteristics of art are as follows:

o The presence of theoretical knowledge: Art assumes the presence of specific

academic knowledge. Experts in their respective fields have acquired certain
basic principles that are applicable to a particular type of art. For example,
the literature on public speaking, acting or music, dancing is widely accepted.
o Personalized application: The application of this basic knowledge varies from
person to person. Art, therefore, is a highly personalized concept. Based on
custom and creativity: Art is practical. Art involves the creative application of
existing theoretical knowledge.

 Management as a science: Science is an organized body of knowledge that

emphasizes certain universal truths or the operation of general laws.

The main characteristics of science are as follows:

o The organized body of knowledge: Science is a systematic body of

knowledge. Its principles are based on a cause-and-effect relationship.
o Universal validity: Scientific principles have universal validity and application.
o Principles based on experimentation: Scientific principles are originally
derived through research and then tested through repeated experimentation
under controlled conditions.

 Management as a profession: Profession can be defined as an occupation supported

by specialized education and training, in which entry is restricted.

A profession has the following features:

o The well-defined body of knowledge: All professions are based on a well-

defined body of knowledge that can be acquired through education.
o Restricted entry: The entry to a profession is restricted through an
examination or by obtaining an educational degree. For example, to become
a chartered accountant in India one has to clear a comprehensive
examination conducted by the Institute of Chartered Accountants of India
(ICAI).
o Professional association: All professions are affiliated to a professional
association which regulates entry, grants certificate of practice and enforces a
code of conduct.

 Management as a social system: A social system is a network of interrelated and

interdependent parts that function together to achieve common goals. As a social
system, management involves the interaction and coordination of human and non-
human resources to achieve organizational objectives.
 Management as a social system has the following features:

o Interrelatedness: A social system consists of various elements that are

interrelated and influence each other. For example, in an organization,
managers, employees, customers, suppliers, competitors, etc., are
interrelated and affect each other’s behaviour and performance.
o Interdependence: A social system depends on the contribution and
cooperation of its members for its survival and growth. For example, in an
organization, managers depend on employees for their work output,
employees depend on managers for their guidance and motivation,
customers depend on suppliers for their products or services, etc.
o Common goals: A social system has some common goals that are shared by
its members and guide their actions. For example, in an organization, the
common goals may be profitability, customer satisfaction, social
responsibility, etc.

QUESTIONS

Q Which of the following is not a feature of management as a profession?

A) Well-defined body of knowledge B) Restricted entry C) Professional association D)

Universal validity

Q You are a management consultant hired by ABC company, a leading manufacturer of

electronic gadgets. The company has been facing several challenges in recent times, such as
declining sales, high employee turnover, low customer satisfaction, and increasing
competition. The CEO of the company has asked you to analyse the situation and suggest
some recommendations to improve the performance and profitability of the company. How
would you approach this problem using the four perspectives of management as an art,
science, profession and social system? Provide some specific examples and evidence to
support your answer.
 LECTURE: - 1.4

CONCEPT OF MANAGEMENT, ADMINISTRATION, ORGANIZATION AND

UNIVERSITY OF MANAGEMENT

Management is the process of planning, organizing, leading and controlling the activities of
people and resources to achieve the goals of an organization. Management involves setting
the vision, mission, objectives and strategies of the organization, as well as designing the
structure, systems and processes to execute them.
Management also involves motivating, communicating,
coordinating and evaluating the performance of the people and teams who work in the
organization. Management is a skill that can be learned and applied in various fields and
sectors, such as business, education, health, government, etc.
Administration is a subset of management that focuses on the implementation and
maintenance of the policies and procedures of the organization. Administration is concerned
with the details and routine tasks that are necessary for the smooth functioning of the
organization.
Administration includes activities such as record keeping, budgeting,
reporting, staffing, scheduling, etc. Administration is often associated with bureaucracy and
hierarchy, but it can also be flexible and adaptive depending on the context and needs of the
organization.
Organization is the way in which the work and resources of an organization are divided and
arranged to achieve its goals. Organization involves creating a framework of roles,
responsibilities, authority and relationships among the members of the organization.
Organization also involves establishing rules, norms, values and culture that guide the
behaviour and interactions of the members.
Organization can be formal or informal, centralized or
decentralized, mechanistic or organic, depending on the nature and environment of the
organization.
University of management is a type of higher education institution that specializes in
teaching and researching various aspects of management and related disciplines. University
of management offers degree programs in fields such as business administration,
accounting, finance, marketing, human resource management, operations management,
project management, etc.
University of management also conducts research and consultancy
projects that contribute to the advancement of knowledge and practice in management.
University of management aims to produce graduates who are competent, ethical and
innovative managers who can lead and transform organizations in a dynamic and complex
world.

MANAGEMENT Vs ADMINISTRATION Vs ORGANIZATION

Basis Management Administration Organization

Management is Administration is the

the process of process of managing Organization is the
directing and the administrative way in which the
controlling the aspects of an work and resources
Definition
activities of an organization, such as of an organization are
organization to planning, organizing, divided and arranged
achieve its staffing, directing, to achieve its goals.
goals. and controlling.

Management is
Organization
done by both Administration forms
encompasses all
middle and the organization
levels and aspects of
lower-level while management
Scope an organization, from
authority while maintains the
top to bottom and
administration functions of the
from inside to
by top-level organization.
outside.
authority.

Organization
Management
involves creating a
implements Administration is
formal structure of
policies and concerned mainly
roles, responsibilities,
objectives with decision making,
Function authority and
whereas policy making and
relationships that
administration making necessary
enable individuals to
help in policy adjustments.
work together
formulation.
effectively.

Organization can be
Management is
formal or informal,
dynamic and Administration is
centralized or
flexible, as it static and rigid, as it
decentralized,
adapts to the follows the
Nature mechanistic or
changing established rules and
organic, depending
environment and procedures of the
on the nature and
needs of the organization.
environment of the
organization.
organization.
 Basis Management Administration Organization

Management Organization requires

requires Administration does both technical and
Skill technical ability not need technical interpersonal skills to
to function ability. design and maintain
properly. an effective structure.

Management is
Organization is
productive in Administration is not
integrative in
character, as it productive in
character, as it
aims to achieve character, as it only
Character coordinates and
the desired facilitates the
aligns the work and
results and functioning of the
resources of the
outcomes of the organization.
organization.
organization.

QUESTIONS

Q How can management and administration work together effectively to achieve the
goals of an organization? What are some of the challenges and conflicts that may arise
between them?

Q You are a manager of a large retail company that sells clothing, accessories, and
home products. The company has recently expanded its operations to several countries
in Asia and Europe. As a result, the company has to deal with different cultures, laws,
regulations, and customer preferences in each market. How would you design and
organize your company to cope with these challenges? What kind of management and
administration style would you adopt? How would you measure and evaluate the
performance of your company in each market?

*******
UNIT: -2
 EVOLUTION OF MANAGEMENT THOUGHTS

CONTENTS: -
 CONCEPT OF MANAGEMENT THOUGHTS

 CONTRIBUTION OF FEDRICK TAYLOR, ELTON MAYO,

HENRY FAYOL AND PETER DRUCKER.

 INDIAN MANAGEMENT ETHOS AND DIFFERENT STYLES

EXAMPLES (JRD, TATA, DIRUBHAI AMBANI, NR
NARAYANA MURTHY, VERGHESE KURIAN)

LECTURE: - 2.1
CONCEPT OF MANAGEMENT THOUGHTS

Management thoughts are the ideas, theories, and principles that guide the practice of
management. They reflect the evolution of management as a discipline and a profession
over time. Management thoughts are influenced by various factors such as social, economic,
political, technological, and environmental changes.

Management thought refers to the theory that guides management of people in the
organization.

There are many schools of management thoughts that have emerged and developed over
the years. Each school has its own perspective, focus, and contribution to the field of
management. Some of the major schools of management thoughts are:

 Scientific Management: This school emphasizes the application of scientific methods

and techniques to improve the efficiency and productivity of workers and
organizations. It was pioneered by Frederick W. Taylor in the late 19th and early 20th
century. Some of the key concepts of scientific management are time and motion
study, standardization, specialization, division of labour, and incentive system. For
e.g.: - A fast-food restaurant can use scientific management to design efficient work
processes, standardize tasks, train workers, and reward performance.

 Administrative Management: This school focuses on the principles and functions of

management that can be applied to any type of organization. It was developed by
Henri Fayol in the early 20th century. Some of the key concepts of administrative
management are planning, organizing, commanding, coordinating, and controlling.
For e.g.: - A hospital can use administrative management to plan its services, organize
its departments, command its staff, coordinate its activities, and control its quality.
  Bureaucratic Management: This school advocates the establishment of a rational
and legal system of authority and rules to ensure order, stability, and efficiency in
organizations. It was proposed by Max Weber in the early 20th century. Some of the
key features of bureaucratic management are hierarchy, division of labour,
formalization, impersonality, and meritocracy. For e.g.: - A government agency can
use bureaucratic management to establish a clear hierarchy, division of labour, formal
rules, impersonal relations, and merit-based selection.

 Human Relations Management: This school recognizes the importance of human

factors such as motivation, communication, leadership, and group dynamics in
influencing the performance and satisfaction of workers and organizations. It was
influenced by the Hawthorne experiments conducted by Elton Mayo and his
colleagues in the 1920s and 1930s. Some of the key concepts of human relations
management are social needs, informal groups, participative management, and
employee empowerment. For e.g.: - A software company can use human relations
management to motivate its employees, communicate effectively, encourage
leadership, and foster teamwork.

 Behavioural Management: This school builds on the human relations approach and
applies the insights from psychology, sociology, anthropology, and other behavioural
sciences to understand and improve the behaviour of individuals and groups in
organizations. It was developed by various scholars such as Abraham Maslow,
Douglas McGregor, Chris Argyris, Rensis Likert etc. For e.g.: - A school can use
behavioural management to understand its students’ needs, adopt different teaching
methods, facilitate organizational change, and enhance job satisfaction.

 Quantitative Management: This school applies mathematical models, statistical

techniques, and computer simulations to analyse and solve complex problems in
management. It was influenced by the development of operations research during
World War II. Some of the key techniques of quantitative management are linear
programming, network analysis, inventory control, queuing theory, and decision
theory. For e.g.: - An airline can use quantitative management to optimize its routes,
schedule its flights, manage its inventory, reduce its waiting time, and improve its
decision making.

QUESTIONS: -
Q How would you compare and contrast the scientific management and the human
relations management schools of thought? What are the advantages and disadvantages of
each approach? Provide examples of organizations that use or have used these approaches
in practice.

Q XYZ Services is a company that provides various types of consulting, training, and
outsourcing services to its clients. The company was founded in the late 20th century and
adopted the systems management approach to integrate its functions, processes, and
resources. The company viewed itself as an open system that interacted with its
environment and adapted to its changes. The company also used feedback mechanisms to
monitor and evaluate its inputs, outputs, and outcomes.

However, over time, the company realized that the systems management approach was not
sufficient to deal with the complexity and diversity of its situations and contexts. The
company faced different types of challenges and opportunities depending on the nature,
size, scope, and culture of its clients, projects, and markets. The company also had to cope
with uncertainty, ambiguity, and volatility in its environment. The company decided to
adopt the contingency management approach in the early 21st century. The company
recognized that there was no one best way to manage its organization. The company
tailored its management practices according to the specific factors and conditions that
influenced its performance and effectiveness.
How would you evaluate the strengths and weaknesses of XYZ Services’ management
approaches? How would you suggest some improvements or alternatives for the company’s
management practices? What are some of the implications and recommendations for the
company’s future growth and development?

LECTURE: - 2.2
 CONTRIBUTION OF F.W. TAYLOR
Frederick Winslow Taylor (1856-1915) was an American mechanical engineer who is widely
credited with the development of scientific management, which is a systematic approach to
improving efficiency in the workplace. Taylor's work had a profound impact on the way
businesses operate, and his principles are still used today.

Here are some of Taylor's most significant contributions to management: -

 Scientifically study work methods: This involves breaking down tasks into their
component parts and then determining the most efficient way to perform each part.
 Select and train workers carefully: Workers should be selected for their aptitude for
a particular task and then given training in the most efficient way to perform that
task.
 Establish close cooperation between management and workers: Management and
workers should work together to identify and implement improvements.
 Divide responsibility between management and workers: Management should be
responsible for planning and scheduling work, while workers should be responsible
for carrying out the work as instructed.
 The time-and-motion study: Taylor developed a system for measuring the time it
took to perform a task. This information could then be used to identify areas where
time could be saved.
 The differential piece-rate system: This system of pay rewards workers for producing
more output. The more output a worker produces, the more they are paid. This
system was designed to encourage workers to work harder and more efficiently.

Taylor’s scientific management had a significant impact on the development of industrial

engineering, efficiency movement, and modern management practices. However, it also
faced criticism for its dehumanization of the workplace, its disregard for human factors
and motivation, and its potential for exploitation and abuse by management.

CONTRIBUTION OF ELTON MAYO

Elton Mayo (1880-1949) was an Australian-American psychologist who is best known for his
Hawthorne Studies, which had a major impact on the field of management. The Hawthorne
Studies were a series of experiments conducted at the Hawthorne Works of the Western
Electric Company in the 1920s and 1930s. The studies investigated the impact of various
factors, such as lighting, rest breaks, and pay, on worker productivity.
Mayo's findings challenged the prevailing view that worker productivity was primarily
determined by physical factors. He found that social factors, such as group dynamics and
employee morale, also played a significant role in productivity. Mayo's work helped to shift
the focus of management from scientific management to human relations.

Here are some of Mayo's most significant contributions to management:

 The Hawthorne effect: Mayo coined the term "Hawthorne effect" to describe the
phenomenon whereby workers' productivity improves simply because they are being
studied. This effect is often attributed to the fact that workers feel valued and
respected when they are the focus of attention.

 The importance of social factors in the workplace: Mayo's work showed that social
factors, such as group dynamics and employee morale, play a significant role in
productivity. This led to a shift in focus from scientific management to human
relations.

 The importance of employee participation: Mayo believed that employees should be

involved in decision-making and that they should have a sense of ownership over
their work. This led to the development of participatory management techniques.

 The importance of the informal organization: Mayo found that the informal
organization, which is the network of social relationships that exists within a
workplace, can have a significant impact on productivity. This led to a greater
understanding of the importance of employee morale and satisfaction.

Elton Mayo’s work had a significant impact on the theory and practice of management,
and he is widely regarded as one of the pioneers of modern management. He was also a
visionary who foresaw the challenges and opportunities of industrial civilization, and
sought to create a more humane and productive work environment for both managers
and workers.

QUESTIONS: -
Q What are the main differences between Taylor’s scientific management and Mayo’s
human relations approach to management? Explain with examples.

Q You are a manager of a manufacturing company that produces electronic devices. You
have noticed that the productivity and quality of your products have been declining, and
that the workers are dissatisfied and unmotivated. You decide to implement some
changes in your management style and practices, based on the theories of Taylor and
Mayo. What are some of the changes that you would make, and what are the expected
outcomes and challenges of each change? Provide specific examples and evidence to
support your answer.

LECTURE: - 2.3
 CONTRIBUTION OF HENRY FAYOL

Henry Fayol was a French engineer and manager who made significant contributions to the
field of management. He is widely regarded as one of the founders of modern management
theory. Some of his main contributions are:

 He proposed a general theory of business administration called Fayolism, which

emphasized the importance of planning, organizing, commanding, coordinating, and
controlling as the functions of management.
 He identified 14 principles of management that could be applied to any organization,
such as division of work, authority and responsibility, unity of command, unity of
direction, subordination of individual interest to general interest, etc.
 He outlined the qualities and skills that an effective manager should possess, such as
physical, mental, moral, educational, technical, and experiential qualities.
 He analysed the different types of industrial activities and classified them into six
groups: technical, commercial, financial, security, accounting, and managerial 1.
 He advocated for a scientific approach to management and encouraged managers to
experiment and learn from their own experience.

Here are some of the contributions of Henry Fayol to management:

The 14 Principles of Management: Fayol developed 14 principles of management

that are still widely used today. These principles include:

o Division of work: Work should be divided into specialized tasks to improve

efficiency.
o Authority and responsibility: Authority should be matched with
responsibility.
o Discipline: Employees should obey the rules and regulations of the
organization.
o Unity of command: Employees should receive orders from only one
supervisor.
o Unity of direction: All activities that have the same objective should be
directed towards that objective.
o Subordination of individual interests to the general interest: The interests of
the organization should come before the interests of any individual.
o Remuneration of personnel: Employees should be paid fairly for their work.
o Centralization: The degree of centralization should be appropriate for the
organization.
o Scalar chain: There should be a clear chain of command from top to bottom
in the organization.
o Order: Materials and people should be in the right place at the right time.
Equity: Managers should be fair and impartial in their dealings with
employees.
o Stability of tenure of personnel: Employees should have job security.
 o Initiative: Employees should be encouraged to take initiative.
o Espirit de corps: There should be a sense of unity and common purpose in
the organization.
o The Administrative Theory of Management: Fayol also developed the
Administrative Theory of Management, which is a comprehensive framework
for understanding and managing organizations. This theory includes the 14
principles of management as well as other concepts such as functions of
management, elements of management, and types of authority.

Henry Fayol’s contribution to management has influenced many subsequent theories and
practices in the field. His ideas are still relevant and applicable in today’s dynamic and
complex business environment.

CONTRIBUTION OF PETER DRUCKER

Peter Drucker was a renowned Austrian-American economist and author who made
significant contributions to the field of management. He is widely regarded as one of the
founders of modern management theory and practice.

Here are some of the contributions of Peter Drucker to management:

 Management by Objectives (MBO): MBO is a management philosophy that focuses

on setting goals and objectives for employees and then measuring their performance
against those goals. MBO was developed by Drucker in the 1950s and is still widely
used today.

 The Knowledge Worker: Drucker coined the term "knowledge worker" to describe
the growing number of workers whose primary asset is their knowledge. He argued
that knowledge workers need to be managed differently than traditional workers
because they are more independent and motivated.

 The Learning Organization: Drucker argued that organizations need to be constantly

learning and adapting in order to survive and thrive in the 21st century. He
developed the concept of the learning organization, which is an organization that is
constantly creating, acquiring, and sharing knowledge.

 The Age of Discontinuity: Drucker argued that the world is in a state of constant
change and that organizations need to be prepared to adapt to these changes. He
coined the term "Age of Discontinuity" to describe this period of rapid change.

 The Effective Executive: Drucker's book The Effective Executive is considered to be

one of the most influential books on management ever written. In the book, Drucker
outlines the qualities and skills that an effective executive need to have.
Drucker's work has had a major impact on the field of management and his ideas are still
widely used today. He is considered to be one of the most influential management
thinkers of all time.

Peter Drucker’s contribution to management has been recognized and appreciated by

many scholars, practitioners, and leaders. He is considered as one of the pioneers of
modern management thought and action.

QUESTIONS: -
Q What are the similarities and differences between Fayolism and Druckerism as general
theories of business administration? Explain with examples.

Q You are a manager of a software company that is facing a crisis due to a major bug in
your product. You have to decide how to handle the situation and communicate with
your team, customers, and stakeholders. How would you apply the principles and
concepts of Fayolism and Druckerism to solve the problem? Provide a detailed action
plan and justify your decisions.

LECTURE: - 2.4
INDIAN MANAGEMENT ETHOS & DIFFERENT STYLES
EXAMPLES (JRD TATA, DHIRUBHAI AMBANI, NR
NARAYAN MURTHY, VERGHESE KURIAN)

Indian management ethos is a set of values and principles that guide the behaviour and
decision-making of managers and leaders in India. It is influenced by the cultural, social,
religious, and historical context of India, as well as by the personal experiences and beliefs of
individual managers and leaders.

Some of the common features of Indian management ethos are:

 Respect for diversity: India is a country with diverse languages, religions, ethnicities,
and regions. Indian managers and leaders respect and appreciate this diversity and
try to accommodate the needs and preferences of different stakeholders. They also
promote harmony and cooperation among different groups and avoid conflicts and
confrontations.

 Holistic approach: Indian managers and leaders take a holistic view of the business
and its environment. They consider not only the economic, but also the social,
ethical, ecological, and spiritual aspects of their actions. They also balance the
interests of various stakeholders, such as shareholders, employees, customers,
suppliers, government, society, and nature.

 Learning orientation: Indian managers and leaders are open to learning from various
sources, such as ancient wisdom, modern science, best practices, feedback, and
experimentation. They also encourage learning and innovation among their followers
and create a culture of continuous improvement.

 Flexibility and adaptability: Indian managers and leaders are flexible and adaptable
to changing situations and challenges. They are willing to modify their plans and
strategies according to the circumstances and opportunities. They also cope with
uncertainty and ambiguity with resilience and optimism.

 Humanistic values: Indian managers and leaders value human dignity, welfare, and
potential. They treat their followers with respect, trust, empathy, and compassion.
They also motivate them with recognition, rewards, empowerment, and
participation. They also care for the society and the environment and contribute to
their development.

Different styles examples:

 JRD Tata: JRD Tata was a visionary leader who transformed the Tata Group into a
global conglomerate with diverse businesses. He had a democratic style of leadership
that involved consultation, delegation, and consensus-building. He was also a pioneer
of corporate social responsibility in India and initiated several welfare schemes for his
employees and communities.

Dhiru Bhai Ambani: Dhiru Bhai Ambani was an entrepreneurial leader who built
Reliance Industries from scratch into one of the largest private sector companies in
India. He had an autocratic style of leadership that involved risk-taking, decision-
making, and execution. He was also a charismatic leader who inspired his followers
with his vision, passion, and ambition.

NR Narayana Murthy: NR Narayana Murthy was an ethical leader who co-founded

Infosys Technologies and made it one of the leading IT companies in India. He had a
participative style of leadership that involved collaboration, communication, and
empowerment. He was also a role model of integrity, transparency, and excellence
for his employees and the industry.

Verghese Kurien: Verghese Kurien was a transformational leader who revolutionized

the dairy sector in India with his cooperative movement called Operation Flood. He
had a servant style of leadership that involved serving, empowering, and enabling the
farmers to become self-reliant and prosperous. He was also a social leader who
contributed to the nation’s food security, nutrition, and rural development.

QUESTIONS
Q How does Indian management ethos differ from Western management ethos in terms of
values, principles, and practices? Give examples of how these differences affect the
performance and outcomes of organizations in India and abroad.

Q You are a consultant hired by a multinational company that wants to enter the Indian
market with its products and services. You have to advise the company on how to adapt its
management style and strategy to suit the Indian culture and context. How would you apply
the concepts and examples of Indian management ethos and different styles to help the
company succeed in India? Provide a detailed action plan and justify your recommendations .

*********

UNIT: - 3
 MAJOR MANAGERIAL FUNCTIONS
CONTENTS: -
FORECASTING
 MEANING
 NEED
 TYPES
 METHODS
 ADVANTANGES AND ADVANTAGES

PLANNING
 MEANING
 NEED
 TYPES
 METHODS
 ADVANTANGES AND ADVANTAGES

ORGANISING
 MEANING
 CONCEPT
DELEGATION OF AUTHORITY
 MEANING
 IMPORTANCE
DECENTRALISATION
 MEANING & IMPORTANCE
LECTURE: - 3.1
 FORECASTING

 Meaning: Forecasting is the process of predicting future events or trends. It is used in

a variety of fields, including business, economics, and finance.

Forecasting is the process of predicting what will happen in the future by taking into
consideration events in the past and present. Forecasting is valuable to businesses so
that they can make informed business decisions.

Forecasting involves making informed guesses about certain business metrics, such
as sales growth, expenses, cash flow, and investments.

 Need: Forecasting is important for businesses because it allows them to make

informed decisions about the future. For example, businesses can use forecasting to
predict demand for their products or services, which can help them to plan
production and inventory levels. Forecasting can also be used to predict economic
trends, which can help businesses to make decisions about investment and
expansion.

 FORECASTING PROCESS

o Define the goal or objective

o Gather data
o Choose a forecasting method
o Make a forecast

Types:

There are two main types of forecasting:

o Qualitative: - Qualitative forecasting methods rely on expert judgment

o Quantitative: - Quantitative forecasting methods use historical data to make
predictions.

 Methods: There are a variety of forecasting methods, including:

o Time series analysis: This method uses historical data to predict future
trends.

o Causal analysis: This method identifies the factors that influence a particular
event or trend and uses those factors to make predictions.

o Judgmental forecasting: This method relies on the judgment of experts to

make predictions.

 Advantages: The advantages of forecasting include:

 o It can help businesses to make informed decisions about the future.

o It can help businesses to avoid making costly mistakes.

o It can help businesses to improve their efficiency and profitability.

 Disadvantages: The disadvantages of forecasting include:

o It is not always accurate.

o It can be time-consuming and expensive.

o It can be difficult to forecast events that are influenced by human behaviour.

QUESTIONS
Q How can a business use forecasting to improve its inventory management and customer
satisfaction?

Q You are the manager of a small business that sells home appliances. You have been
experiencing a decline in sales over the past few months. You believe that this decline is due
to a number of factors, including the economic recession and the introduction of new
products by your competitors. You decide to use forecasting to help you make decisions
about your business.

What are the steps involved in the forecasting and planning process that you would use to
address the decline in sales?

LECTURE: - 3.2
PLANNING
Meaning: Planning is the process of setting goals and objectives and then developing a
strategy to achieve those goals. It is an essential component of management and is used
in all types of organizations.

Planning is the process of thinking about the future course of action in advance and
deciding what to do, how to do it, when to do it, and who will do it. Planning is essential
for businesses to achieve their goals and objectives, allocate resources efficiently, cope
with uncertainties, and coordinate different activities.

Planning Process

 Define the goal or objective.

 Gather data
 Choose a forecasting method.
 Make a forecast
 Develop a plan.
 Implement the plan.
 Monitor and evaluate the plan

Need: Planning is important because it helps organizations to achieve their goals. It

provides a framework for decision-making and helps to ensure that resources are used
efficiently. Planning can also help organizations to adapt to change and to take advantage
of opportunities.

Types: There are two main types of planning:

 Strategic planning - Strategic planning is concerned with the long-term goals of an

organization
 Operational planning - operational planning is concerned with the short-term goals.

Methods: There are a variety of planning methods, including:

 Top-down planning: This method is used when the goals and objectives of an
organization are set by top management and then communicated to lower levels of
the organization.
 Bottom-up planning: This method is used when the goals and objectives of an
organization are set by lower levels of the organization and then communicated to
top management.
 Mixed planning: This method is a combination of top-down and bottom-up planning.

Advantages: The advantages of planning include:

 It helps organizations to achieve their goals.

 It provides a framework for decision-making.
 It helps to ensure that resources are used efficiently.
 It can help organizations to adapt to change.
  It can help organizations to take advantage of opportunities.

Disadvantages: The disadvantages of planning include:

 It can be time-consuming and expensive.

 It can be difficult to predict the future.
 It can be difficult to implement plans.
 Plans can become outdated quickly.

QUESTIONS
Q What are the different types of planning in management?

Q You are the manager of a new startup company that is developing a new type of software.
You are currently in the planning phase and you need to develop a plan for the next 5 years.
What are the different types of plans that you need to develop?

LECTURE: - 3.3
ORGANISING
  Organizing: Organizing is the process of assigning tasks, responsibilities, and
authority to individuals within an organization. It is the second function of
management, following planning. Organizing is important because it allows
organizations to achieve their goals by dividing work into manageable tasks and
assigning those tasks to individuals who are qualified to perform them.

Organizing is the second function of management, following planning. It is the

process of assigning tasks, responsibilities, and authority to individuals within an
organization. Organizing is important because it allows organizations to achieve their
goals by dividing work into manageable tasks and assigning those tasks to individuals
who are qualified to perform them.

ORGANISING PROCESS

o Defining tasks: The first step is to define the tasks that need to be performed
in order for the organization to achieve its goals.
o Grouping tasks: Once the tasks have been defined, they need to be grouped
into logical units. This is called departmentalization.
o Assigning tasks: The next step is to assign tasks to individuals or groups of
individuals. This is called job assignment.
o Delegating authority: Once tasks have been assigned, authority needs to be
delegated to individuals so that they can carry out their duties.
o Establishing reporting relationships: Reporting relationships are the formal
channels of communication between individuals and groups within an
organization. They need to be established so that everyone knows who they
are accountable to.

IMPORTANCE OF ORGANISING

 It helps to achieve goals: Organizing helps organizations to achieve their goals by

dividing work into manageable tasks and assigning those tasks to individuals who are
qualified to perform them. This ensures that the work is done efficiently and
effectively, and that it is aligned with the organization's goals.
 It improves efficiency: Organizing can help to improve efficiency by reducing
duplication of effort and by ensuring that resources are used effectively. For example,
if two departments are both performing the same task, then organizing can help to
consolidate those tasks into one department. This can save time and resources.
 It improves coordination: Organizing can help to improve coordination by
establishing clear lines of communication and responsibility. This ensures that
everyone knows what they are responsible for and who they need to report to. This
can help to avoid confusion and conflict, and it can help to ensure that everyone is
working towards the same goals.
 It enhances employee morale: Organizing can enhance employee morale by giving
employees a sense of ownership and responsibility. When employees are given the
opportunity to participate in decision-making and to contribute to the organization's
goals, they are more likely to be motivated and engaged in their work.
 It facilitates change: Organizing can facilitate change by making it easier for
organizations to adapt to new circumstances. For example, if an organization needs
to change its product line or its marketing strategy, then organizing can help to
ensure that the change is implemented smoothly and effectively.

DELEGATION OF AUTHORITY

Delegation of authority: Delegation of authority is the process of giving subordinates

the power to make decisions and take actions on behalf of their superiors. It is
important because it allows managers to focus on strategic planning and decision-
making, while subordinates can focus on day-to-day operations. Delegation of
authority can also help to improve employee morale and motivation, as it gives
employees a sense of ownership and responsibility.

DELEGATION OF AUTHORITY PROCESS

 Identifying the tasks that can be delegated: The first step is to identify the tasks that
can be delegated to subordinates. Not all tasks can be delegated, as some require the
expertise or judgment of the superior.
 Selecting the right subordinates: The next step is to select the right subordinates to
whom authority can be delegated. Subordinates should be qualified to perform the
tasks, and they should be willing to accept responsibility.
 Communicating the delegation: Once the subordinates have been selected, the
delegation needs to be communicated to them. This includes explaining the tasks
that have been delegated, the authority that has been granted, and the limits of that
authority.
 Monitoring the delegation: The final step is to monitor the delegation to ensure that
it is working effectively. This includes providing feedback to subordinates, and making
adjustments as needed.

IMPORTANCE OF DELEGATION OF AUTHORITY

 It frees up managers' time: Managers who delegate authority can free up their time
to focus on strategic planning and decision-making. This is important because
managers are often the most important decision-makers in an organization. By
delegating authority, managers can ensure that they are making the most important
decisions and that they are not bogged down in day-to-day operations.
 It develops subordinates: Delegation of authority can help to develop subordinates
by giving them the opportunity to learn new skills and to take on more responsibility.
 This can help subordinates to grow and develop their careers, and it can also make
them more valuable to the organization.
 It improves morale and motivation: Delegation of authority can improve morale and
motivation by giving employees a sense of ownership and responsibility. When
employees are given the opportunity to make decisions and to take on more
responsibility, they are more likely to be motivated and engaged in their work. This
can lead to increased productivity and improved performance.
 It reduces stress: Delegation of authority can help to reduce stress for managers by
allowing them to share the workload. This can be especially helpful for managers
who are responsible for a large number of people or for a large number of projects.
By delegating authority, managers can reduce their workload and can focus on the
most important tasks.
 It improves decision-making: Delegation of authority can improve decision-making
by bringing more perspectives to the table. When managers delegate authority, they
are able to get input from a variety of people who may have different perspectives on
the issue at hand. This can lead to better decision-making and can help to avoid
making mistakes.

QUESTIONS

Q What are the key factors to consider when organizing a company?

Q You are the CEO of a small startup company that is rapidly growing. You are
currently in the process of organizing the company and you are trying to decide how
much authority to delegate to your managers. What factors should you consider
when making this decision?

LECTURE: - 3.4
 DECENTRALISATION

Decentralization is the dispersion of decision-making authority throughout an organization.

It is the opposite of centralization, which is when decision-making authority is concentrated
in the hands of a few individuals. Decentralization is important because it can help
organizations to be more agile and responsive to change. It can also help to improve
employee morale and motivation, as it gives employees a sense of ownership and
responsibility.

DECENTRALISATION PROCESS

 Identifying the decisions that can be decentralized: The first step is to identify the
decisions that can be decentralized. Not all decisions need to be made at the top of
the organization. Some decisions can be made more effectively at lower levels of the
organization.
 Establishing decision-making criteria: The next step is to establish decision-making
criteria. This includes defining the types of decisions that can be made at lower
levels, and the level of authority that subordinates have to make those decisions.
 Communicating the decentralization: Once the decision-making criteria have been
established, they need to be communicated to subordinates. This includes explaining
the types of decisions that can be made at lower levels, and the level of authority
that subordinates have to make those decisions.
 Monitoring the decentralization: The final step is to monitor the decentralization to
ensure that it is working effectively. This includes providing feedback to subordinates,
and making adjustments as needed.

IMPORTANCE

 It can help organizations to be more agile and responsive to change : In a centralized

organization, all decisions are made at the top of the organization. This can make it
difficult for the organization to be agile and responsive to change. Decentralization
can help to address this problem by giving lower-level managers the authority to
make decisions. This can help the organization to adapt to change more quickly and
effectively.

 It can help to improve employee morale and motivation: Employees are more likely
to be motivated and engaged in their work when they have a sense of ownership and
responsibility. Decentralization can help to address this by giving employees the
authority to make decisions. This can help employees to feel like they are part of the
decision-making process and that their contributions are valued.

 It can help to develop leaders: Decentralization can help to develop leaders by giving
employees the opportunity to make decisions and to take on more responsibility. This
can help employees to develop their leadership skills and to prepare them for future
leadership roles.
 It can reduce stress on managers: Decentralization can help to reduce stress on
managers by allowing them to delegate authority and to focus on the most important
tasks. This can be especially helpful for managers who are responsible for a large
number of people or for a large number of projects.

 It can improve communication: Decentralization can help to improve communication

by creating a more open and collaborative environment. When employees have the
authority to make decisions, they are more likely to communicate with each other
and with managers. This can help to improve understanding and can help to avoid
misunderstandings.

QUESTIONS

Q What are the advantages and disadvantages of decentralization?

Q You are the CEO of a large multinational corporation. You are considering
decentralizing some decision-making authority to your regional managers. What
factors should you consider when making this decision?

UNIT: - 4
 FUNCTIONS OF MANAGEMENT

DECISION MAKING
 TYPES
 PROCESS
 TECHNIQUES
 NATURES AND PRINCIPLES
MOTIVATION
 MEANING
 IMPORTANCE
 NATURE
 PRINCIPLES & THEORIES
CONTROLLING
 MEANING
 NEEDS
 PROCESS
 TECHNIQUES

LECTURE: - 4.1
Decision making is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions. It is a cognitive process that involves
weighing the pros and cons of different options and choosing the one that is most likely to
achieve the desired outcome.

Types of decisions

There are many different types of decisions that can be made, each with its own unique set
of factors to consider. Some common types of decisions include:

 Strategic decisions are those that set the direction for an organization or individual.
They are typically long-term in nature and have a significant impact on the future.

 Tactical decisions are those that are made to implement strategic decisions. They are
typically shorter-term in nature and focus on specific tasks or goals.

 Operational decisions are those that are made to keep an organization or individual
running smoothly. They are typically routine in nature and focus on day-to-day tasks.

Decision making process

The decision-making process is a step-by-step approach to making decisions. The steps

involved in the process can vary depending on the type of decision being made, but some
common steps include:

1. Identify the decision. What is the decision that needs to be made? What are the key
issues involved?

2. Gather information. What information is relevant to the decision? Where can you
find this information?

3. Identify alternatives. What are the different options available to you? What are the
pros and cons of each option?

4. Evaluate alternatives. Weigh the pros and cons of each option and decide which one
is the best choice.

5. Make a decision. Once you have decided on the best option, take action and
implement your decision.

6. Review your decision. After you have implemented your decision, take some time to
review it and see if it is working as you had hoped. If not, you may need to make
adjustments to your decision or the way you are implementing it.

Decision making techniques

There are a number of different techniques that can be used to make decisions. Some
common techniques include:

 Brainstorming is a technique for generating ideas. It involves bringing together a

group of people and encouraging them to share their ideas without judgment.
  Decision trees are a visual representation of the decision-making process. They can
be used to map out different options and their potential outcomes.

 Cost-benefit analysis is a technique for comparing the costs and benefits of different
options. It can be used to help you make a decision that is most likely to achieve your
desired outcome.

 Decision making matrix is a table that can be used to compare different options
based on a set of criteria. It can be a helpful tool for making complex decisions.

Natures and principles

There are a number of different natures and principles that can be applied to decision
making. Some common natures and principles include:

 Rational decision making is a process of making decisions based on logic and reason.
It involves gathering all of the relevant information, weighing the pros and cons of
different options, and choosing the option that is most likely to achieve the desired
outcome.

 Intuitive decision making is a process of making decisions based on gut instinct. It

involves trusting your gut feeling and going with the option that feels right.

 Group decision making is a process of making decisions as a group. It involves

gathering input from all members of the group and making a decision that everyone
can agree on.

 Collaborative decision making is a process of making decisions in partnership with

others. It involves working with others to identify the problem, gather information,
and develop solutions.

QUESTIONS
Q What are the different types of decisions that can be made?
Q What are the steps involved in the decision-making process?
Q A couple is deciding whether to buy a house. What factors should they consider
when making this decision?

LECTURE: - 4.2
 MOTIVATION

Meaning of motivation

Motivation is the force that drives us to act. It is what makes us want to achieve our goals
and objectives. Motivation can be internal, such as the desire to succeed, or external, such
as the need for money or recognition.

Importance of motivation

Motivation is essential for success in both personal and professional life. It can help us to
achieve our goals, overcome challenges, and persevere in the face of adversity. Motivation
can also lead to greater happiness and well-being.

Nature of motivation

Motivation is a complex phenomenon that is influenced by a variety of factors, including our

personality, our values, our goals, and our environment. Motivation can be both positive and
negative. Positive motivation can help us to achieve our goals, while negative motivation can
lead to destructive behaviour.

Principles of motivation

There are a number of principles that can help us to understand and motivate ourselves and
others. These principles include:

 Goal setting: Having clear and specific goals can help to increase motivation.

 Self-efficacy: Believing that we are capable of achieving our goals can also increase
motivation.

 Rewards and punishments: Rewards can help to reinforce desired behaviour, while
punishments can help to discourage undesired behaviour.

 Expectations: Our expectations about our ability to achieve our goals can also affect
our motivation.

 Valuing: The value we place on our goals can also affect our motivation.

Theories of motivation

There are a number of theories that have been developed to explain motivation. Some of
the most well-known theories of motivation include:

 Maslow's hierarchy of needs: Maslow's theory suggests that we are motivated to

satisfy our basic needs, such as food and shelter, before we can focus on higher-level
needs, such as self-actualization.
  Herzberg's two-factor theory: Herzberg's theory suggests that there are two types of
factors that motivate us: hygiene factors, such as pay and working conditions, and
motivators, such as achievement and recognition.

Alderfer's ERG theory: Alderfer's theory is similar to Maslow's hierarchy of needs, but it
suggests that there are three levels of needs: existence needs, relatedness needs, and
growth needs.

QUESTIONS
Q What are some of the challenges that managers face in motivating their employees?

Q A new employee at a company is struggling to stay motivated. They are not meeting their
performance goals and they seem to be disengaged from their work. What can the manager
do to help this employee?

LECTURE: - 4.3
CONTROLLING

Meaning of controlling

Controlling is the process of ensuring that an organization's activities are aligned with its
goals and objectives. It involves setting standards, measuring performance, and taking
corrective action when necessary. Controlling is an important management function because
it helps to ensure that resources are used efficiently and effectively, and that the
organization achieves its desired results.

Needs of controlling

There are several reasons why controlling is an important need for organizations. These
include:

 To ensure that the organization is on track to achieve its goals and objectives.

 To identify and correct any deviations from plans.

 To improve efficiency and effectiveness.

 To promote coordination and cooperation among employees.

 To provide feedback to employees on their performance.

 To motivate employees to achieve high standards.

Process of controlling

The controlling process generally involves the following steps:

 1. Establishing standards: The first step in the controlling process is to establish
standards against which performance will be measured. Standards can be set for a
variety of activities, such as production output, costs, customer satisfaction, and
employee safety.

2. Measuring performance: Once standards have been established, the next step is to
measure actual performance. This can be done through a variety of methods, such as
physical observation, sampling, and performance reports.

3. Comparing actual performance with standards: The third step is to compare actual
performance with standards. This will help to identify any deviations from plans.

4. Taking corrective action: If any deviations from standards are identified, corrective
action must be taken. This may involve changing plans, reallocating resources, or
providing training to employees.

5. Re-evaluating standards: The final step in the controlling process is to re-evaluate

standards on a regular basis. This is important because standards may need to be
updated to reflect changes in the organization's environment or goals.

Techniques of controlling

There are a variety of techniques that can be used to control an organization's activities.
Some of the most common techniques include:

 Budgetary control: Budgetary control is a system for planning and controlling

financial resources. It involves setting budgets for different activities and then
comparing actual spending with budgeted spending.

 Standard costing: Standard costing is a system for setting standards for costs. It
involves developing standards for materials, labor, and overhead costs. Actual costs
are then compared with standards to identify any deviations.

 Financial ratio analysis: Financial ratio analysis is a technique for assessing an

organization's financial performance. It involves comparing financial ratios with
industry standards or historical trends.

 Internal audit: Internal audit is a process for evaluating an organization's internal

controls. It involves assessing the effectiveness of the organization's systems for
financial reporting, risk management, and compliance with laws and regulations.

 Break-even analysis: Break-even analysis is a technique for determining the level of

sales at which an organization will break even. It involves calculating the fixed costs
and variable costs of an organization and then dividing the fixed costs by the
contribution margin per unit.

 Statistical control: Statistical control is a technique for identifying and correcting

variations in processes. It involves collecting data on a process and then using
statistical methods to identify any patterns or trends.
 QUESTIONS
Q What are the different types of controlling techniques? What are the advantages and
disadvantages of each technique?

Q The Acme Corporation is a manufacturing company that has been experiencing declining
profits in recent years. The company's CEO has decided to implement a new controlling
system in an effort to improve profitability. The CEO has asked you to recommend a
controlling technique that would be most appropriate for Acme Corporation. In your
recommendation, you should discuss the advantages and disadvantages of the technique
you recommend.

********

UNIT: - 5
 RECENT TRENDS IN MANAGEMENT

 MANAGEMENT OF CHANGE
 MANAGEMENT OF CRISIS
 TOTAL QUALITY MANAGEMENT
o MEANING

o MERITS

o DEMERITS

 STRESS MANAGEMENT
 PRINCIPLES
o CONCEPT

o MERITS

 KNOWLEDGE MANAGEMENT
 MEANING
 MERITS & DEMERITS
 OUTSOURCING
 MEANING
 MERITS & DEMERITS

LECTURE: - 5.1
MANAGEMENT OF CHANGE
Management of Change is the process of helping an organization transition from its current
state to a desired future state. This can involve changes to the organization's structure,
processes, people, or technology. Change management is important because it helps to
ensure that changes are implemented smoothly and effectively, with minimal disruption to
the organization.

The following are the key steps involved in the management of change:

1. Identify the need for change. The first step is to identify the need for change. This
can be driven by a number of factors, such as changes in the market, the introduction
of new technology, or the need to improve efficiency.

2. Assess the impact of change. Once the need for change has been identified, it is
important to assess the impact of the change on the organization. This includes
identifying the people, processes, and systems that will be affected by the change.

3. Develop a change management plan. The next step is to develop a change

management plan. This plan should outline the steps that will be taken to implement
the change, as well as the resources that will be needed.

4. Communicate the change. It is important to communicate the change to all

stakeholders, including employees, customers, and suppliers. This communication
should be clear, concise, and frequent.

5. Support the change. It is important to support employees during the change process.
This can be done through training, coaching, and mentoring.

6. Measure the impact of change. Once the change has been implemented, it is
important to measure its impact. This can be done by tracking metrics such as
employee satisfaction, customer satisfaction, and productivity.

MANAGEMENT OF CRISIS
Crisis management is the process of responding to an unexpected event that
threatens the organization's operations or reputation. This can involve a natural
disaster, a security breach, or a product recall. Crisis management is important
because it helps to protect the organization's interests and minimize the impact of
the crisis.

The following are the key steps involved in the management of crisis:

1. Assess the situation. The first step is to assess the situation and determine the extent
of the crisis. This includes identifying the cause of the crisis, the potential impact of
the crisis, and the resources that will be needed to respond to the crisis.
2. Communicate with stakeholders. It is important to communicate with stakeholders,
such as employees, customers, and the media, as soon as possible. This
communication should be clear, concise, and honest.

3. Take action to mitigate the crisis. This may involve taking steps to contain the crisis,
such as evacuating employees or customers, or taking steps to repair the damage
caused by the crisis.

4. Investigate the crisis. Once the crisis has been mitigated, it is important to investigate
the crisis to determine what went wrong and how it can be prevented from
happening again.

5. Recover from the crisis. This may involve restoring operations, rebuilding damaged
property, or compensating victims of the crisis.

QUESTIONS

Q What are the key steps involved in the management of crisis?

Q In 2017, United Airlines was involved in a major crisis when a passenger was
forcibly dragged off of an overbooked flight. How did United Airlines manage the
crisis? What could they have done differently?

LECTURE: - 5.2
TOTAL QUALITY MANAGEMENT
Total quality management (TQM) is a management approach that seeks to improve the
quality of products and services through a focus on continuous improvement and customer
satisfaction. It is a philosophy that emphasizes the importance of all employees in the
organization being involved in the quality process, from top to bottom.

 Customer focus: TQM is focused on meeting or exceeding customer expectations.

This means that organizations must constantly listen to their customers and get
feedback on their products and services.
 Continuous improvement: TQM is about never being satisfied with the status quo.
Organizations must constantly strive to improve their products, services, and
processes.
 Employee involvement: TQM requires the involvement of all employees in the
quality process. This means that everyone in the organization, from the CEO to the
janitor, has a role to play in improving quality.
 Fact-based decision making: TQM relies on data and facts to make decisions. This
means that organizations must collect and analyse data to identify areas for
improvement.
 Teamwork: TQM requires teamwork and collaboration across all levels of the
organization. This is essential for achieving continuous improvement.

Here are some of the merits of TQM:

 Improved quality: TQM can lead to significant improvements in the quality of

products and services. This can lead to increased customer satisfaction, loyalty, and
market share.
 Reduced costs: TQM can also lead to reduced costs. This is because it can help to
eliminate waste and inefficiencies in the production process.
 Increased employee satisfaction: TQM can lead to increased employee satisfaction.
This is because it gives employees a sense of ownership and responsibility for the
quality of the products and services they produce.
 Improved decision making: TQM can lead to improved decision making. This is
because it relies on data and facts to make decisions, rather than gut instinct.
 Enhanced reputation: TQM can enhance an organization's reputation. This is because
it demonstrates a commitment to quality and customer satisfaction.

Here are some of the demerits of TQM:

 Can be expensive to implement: TQM can be expensive to implement, especially for

large organizations. This is because it requires a significant investment in training,
resources, and infrastructure.
  Can be time-consuming: TQM can be time-consuming to implement and maintain.
This is because it requires a commitment to continuous improvement.
 Can be difficult to sustain: TQM can be difficult to sustain over the long term. This is
because it requires a change in the culture of the organization.
 Not suitable for all organizations: TQM is not suitable for all organizations. It is best
suited for organizations that are committed to quality and customer satisfaction.

Overall, TQM is a valuable management approach that can lead to significant improvements
in the quality of products and services. However, it is important to weigh the merits and
demerits of TQM before implementing it in an organization.

QUESTIONS

Q A company is considering implementing TQM. What are the key factors that the company
should consider before implementing TQM

Q XYZ Company is a manufacturer of automotive parts. The company has been experiencing
declining quality and customer satisfaction in recent years. The company has decided to
implement TQM as a way to improve quality and customer satisfaction. What are the key
steps that XYZ Company should take to implement TQM successfully?

LECTURE: - 5.3
 STRESS MANAGEMENT

Stress management is the ability to control the amount of stress in your life and cope with it
in a healthy way. It is important to manage stress because chronic stress can lead to health
problems, such as heart disease, high blood pressure, and depression.

There are many different principles of stress management. Some of the most important
principles include:

 Identify your stressors. The first step to managing stress is to identify the things that
are causing you stress. Once you know what your stressors are, you can start to
develop strategies for coping with them.
 Change your thinking. The way you think about a stressful situation can have a big
impact on how much stress you feel. If you can change your thinking to be more
positive and optimistic, it can help you to cope with stress more effectively.
 Take control. One of the best ways to manage stress is to take control of your life.
This means setting goals, making decisions, and taking action. When you feel like you
are in control of your life, it can help to reduce stress.
 Learn to relax. Relaxation techniques, such as yoga, meditation, and deep breathing,
can help to reduce stress and improve your overall health.
 Build a support system. Having a strong support system of friends and family can be
invaluable when you are feeling stressed. Talk to your loved ones about how you are
feeling and let them know when you need help.

The merits of stress management are numerous. Some of the benefits of stress management
include:

 Reduced stress levels. Stress management techniques can help to reduce the
amount of stress you feel. This can lead to a number of health benefits, such as
improved sleep, a stronger immune system, and a reduced risk of heart disease and
stroke.
 Improved mood. Stress management can help to improve your mood and reduce
anxiety. This can make you feel more positive and optimistic about life.
 Increased productivity. When you are less stressed, you are better able to focus and
concentrate. This can lead to increased productivity at work and in school.
 Better relationships. Stress management can help you to communicate better with
your loved ones. This can lead to stronger and more fulfilling relationships.
  Improved overall health. Stress management can help to improve your overall health
and well-being. This is because stress can have a negative impact on your physical
and mental health.

QUESTIONS

Q What are some of the physical and psychological symptoms of stress?

Q A 35-year-old woman named Sarah has been feeling increasingly stressed at work
lately. She has been having trouble sleeping, she is irritable with her family and friends,
and she has been feeling more anxious and depressed. She has also been experiencing
physical symptoms such as headaches, stomachaches, and muscle tension. What are
some stress management techniques that Sarah could try to help her cope
with her stress?

LECTURE: - 5.4
KNOWLEDGE MANAGEMENT

Knowledge management is the process of capturing, organizing, and sharing knowledge

within an organization. It is the systematic approach to creating, sharing, using and managing
an organization's knowledge assets.

Merits of knowledge management include:

 Increased efficiency and productivity: Knowledge management can help

organizations to become more efficient and productive by making it easier to find and
reuse information.
 Improved decision-making: Knowledge management can help organizations to make
better decisions by providing access to relevant information and expertise.
 Enhanced innovation: Knowledge management can help organizations to be more
innovative by encouraging the sharing of ideas and best practices.
 Reduced costs: Knowledge management can help organizations to reduce costs by
eliminating duplication of effort and by making it easier to find and reuse
information.
 Improved customer service: Knowledge management can help organizations to
improve customer service by providing employees with access to the information
they need to answer customer questions quickly and accurately.

Demerits of knowledge management include:

 High initial cost: Knowledge management can be a costly investment, especially for
large organizations.
 Lack of buy-in from employees: Knowledge management is only effective if
employees are willing to share their knowledge and expertise. If employees do not
see the value in knowledge management, they may be reluctant to participate.
 Technical challenges: Knowledge management systems can be complex and difficult
to use. This can be a barrier to adoption, especially for organizations with limited IT
resources.
 Security risks: Knowledge management systems can contain sensitive information.
This information must be protected from unauthorized access and disclosure.
OUTSOURCING
Outsourcing is the practice of hiring a third-party company to perform a business function or
process. Outsourcing can be used to improve efficiency, reduce costs, or gain access to
specialized expertise.

Merits of outsourcing include:

 Cost savings: Outsourcing can help organizations to reduce costs by hiring a third-
party company to perform a business function or process at a lower cost than it
would be to perform the function or process in-house.
 Access to specialized expertise: Outsourcing can help organizations to gain access to
specialized expertise that they may not have in-house. This can be especially
beneficial for small businesses or organizations that do not have the resources to hire
and train specialized employees.
 Increased focus on core competencies: Outsourcing can help organizations to focus
on their core competencies and outsource non-core functions or processes. This can
free up resources and allow the organization to focus on what it does best.
 Improved flexibility: Outsourcing can help organizations to be more flexible and
responsive to changes in the market. This is because organizations can contract with
third-party companies to provide services on an as-needed basis.

Demerits of outsourcing include:

 Loss of control: When an organization outsources a business function or process, it

loses some control over that function or process. This can be a problem if the third-
party company does not meet the organization's expectations.
 Security risks: Outsourcing can introduce security risks, as the organization's data and
intellectual property may be transferred to a third-party company.
 Quality concerns: There is always a risk that the quality of services provided by a
third-party company will not meet the organization's standards.
 Communication challenges: Communication challenges can arise when working with
a third-party company, especially if the company is located in a different country.

QUESTIONS
Q What are the key challenges to implementing knowledge management in a large
organization?

Q A large multinational corporation is considering outsourcing its customer service

department to a third-party company. The company is concerned about the potential
loss of control and security risks associated with outsourcing. However, the company also
believes that outsourcing could save money and improve efficiency. What factors should
the company consider when making its decision?

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