Management System

Dibakar Bashistha

 Who are Managers? Managers may not who or what you might expect. They may be men or women and Theyre under age 18 to over age 80. People responsible for directing the efforts aimed at helping organization to achieve their goals. They may also be found doing managerial work in every country around the globe.

Management: The process of planning, organizing, leading, and controlling the work of organization. Members and of using all available organizational resources to reach stated organizational goals. To co-ordinate material and Human resources. Mary Parker Follett defined The art of getting things done with and through people.

 Management Functions: Planning :It is a decision in advance,

what to do, when to do, how to do, and who will do a particular task. Hence it is thinking before doing. It involves selecting of goals and strategies, policies, programs and procedures, for achieving them. Planning is a basic managerial function. It is concerned with the determination of goals to be achieved and the course of action be followed to achieve them. It is the structuring of work system. By structuring we mean cocoordinating, establishing relationship and assigning task responsibilities. It is a process of dividing work, assigning it to employees, and then allocating resources for them to use. It is an important function of management. It involves differentiation, integration, job design, departmentation, structure, and authority responsibility relationship.

Organizing :

 Staffing :

Organization needs people and people need organization. It is concerned with the people dimension in the organization. It is an essential function of management. It is a set of organizational activities directed at attracting, developing, and maintaining an effective work force. Staffing is the management function through which managers' recruit, select, train and develop organization members and give them the right job at to right time and compensate them to achieve organizational goal in the most effective way. Controlling: Control is the vital function of management. It is a function that compares achieved results with planed goals. It is the process of ordering, evaluating, and providing feed back to the management it is the process of checking, testing, and regulation, verification, to ensure that the organization's mission and objectives are accomplished as effectively and efficiently as possible.

 Communication Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons. The term communication is derived from the Latin word "Communis". It means to inform, to tell, to show or to spread information. It may be defined as the process of transmitting information in an understandable way. Co-ordination ; It is the process of linking together the activities of various department and people. It integrates work efforts to achieve goals. It is the function of management. Harmonizing the activities of various department and specializes.

 Leading :
It is the heart of management. It involves determining the course giving orders and instruction and providing supervision. According to Stoner, Freeman, and Gilbert "It is the process of directing and influencing the task related activities of group members" Actually it is a process, Property and power. A leader is one who direct and guides followers. His or her success depends on his personal qualities. Motivating It is the important function of management. The Term Motive is derived from the Latin word "movere" "which means to move". Literally it is an inner impulse that induces a person to act in a certain way. It is a human psychological characteristic that contributes to a person's degree of commitment.

 Decision making :
It is the function of management. All levels of Managers make decisions. It may be defined as a choice made from available alternatives. . It is a mental process of selecting one best alternative for doing a work.

 Process of Management: Planning and decision Making: Planning is a Setting an organization 'goals and deciding how best to achieve them. Decision making is the part of planning process that involves selecting a course of action from a set of alternatives. Organizing: Determining how activities and resources are to be grouped. Leading: The set of process use to get members of the organization to work together to further the interest of the organization. It is the process of directing and influencing the task related activities of group members. Controlling: Monitoring organizational progress towards goals attainment.

 Managerial Role: ( Interpersonal role ) : figurehead, leader, liaison. (Information Role) :Monitor, Disseminator, Spokes person. ( Decisional Role ): Entrepreneur, disturbance handler, resource allocator, Negotiator

 Figurehead role: It consists largely of such ceremonial work as greeting and receiving visitors, chairing board meetings and symbolically representing the organization. Leader role: indicates directing, coordination, motivating, staffing and controlling activities. Liaison role: involves maintaining relations internally with different units and externally with the society for building the image gathering resources etc.

 Monitor role: It relates with the assessment and watching over the activities taking place in an around the organization. Disseminator role: It provides information to subordinates and keeps them informed of what is going on around the organization and the precautions to be taken. Spokesperson role: It involves representing the unit of work to explain to organizational members and outsiders about the related issues of their interest.

 Entrepreneurial role: It is concerned with planning and initiating change within the organization. Disturbance handler role: It is related with maintaining good working environment and organizational stability by containing problems of disagreement and conflicts. Resource allocator role: It deals with the managerial functions of allocating resources to different units and subordinates. Negotiator role: It involves representing as well as protecting organizations interest in dealing with insiders and outsiders to add vale to work.

Skills of Manager:
a. Technical Skills: Ability to use the procedures, Techniques and knowledge of specialized field. All have technical skills. For example, Surgeons, Engineers, Musicians, Accountants etc. b. Human Skills: It the ability to work with understands and motivated other people as individual or in groups. c. Conceptual Skills: It is the ability to coordinate and integrate all of an organization interest and activities. Managerial Levels: a. Top Level Management Conceptual skills b. Middle level Management .. Human skills c. Lower Level Management Technical skills

 Ethics and Social Responsibility Ethics refers to the principles of conduct governing an individual or groups. It also always involves morality which is society's accepted standards of behavior. Employee discipline is needed for effective human resource management. No organization can be effective without discipline at all levels of employees. Discipline regulates the behavior of employees.

Concept:
Business ethics is and important issue today. They are being questioned and charged for their unethical behavior. Managers cannot afford to overlook such criticisms and charges. So their role has increased. They have now to encourage employees to adopt ethical behavior and be responsive. The call for better business ethics is clearly a challenge for managers today. Ethics is an reflected is an individual behavior Ethical behavior differs from person to person Ethical behavior confirms to generally accepted social norms Unethical behavior doesn't confirm to generally accept social norms. According to W. Griffin (2000) "Ethics is an individual's personal belief, about whether a behavior, action, or decision is right or wrong"

 Significance of Business Ethics: Ethical behavior enhance the reputation and goodwill of a business An organization violating ethical standards faces criticisms and hostility. Ethical standards of business to economic and social development in the society in which it operates through effective and prudent use of resources free and fair competition. Through ethical standards a business can keep its promises and transparency. By acting ethically, business organization can protect the interest of the wider society. Ethical behavior of business organizations has its impact on the employees and other stakeholders. A climate of justice, freedom, equity and equality is created in an organization though ethical practices.

 Ethical Issues: Attendance : Late for work \ Absenteeism \ leaving work without permission \ Habitual tardiness \ Abuse of leave Job behavior: Insubordination ( refusal to obey orders ) \ Failure to obey safety rules \ Defective work \ Not reporting accident \ Drunk on the job \ Gambling on the job \ Fighting on the job \ Drug use on the job \ Destruction of property \ Carrying firearms at work ( unauthorized weapons ) Dishonesty; Theft \ Information falsification \ subversive activity (Terrorism) \ Punching time card of others \ concealing defective work. Outsides activities: Unauthorized strikes \ working for competing firm's \ outside criminal activities \ embarrassing speeches \ Wage garnishing

 Social Responsibility: Concepts: The term society refers to all those individuals, institutions and other entities that come in contract with a business firm ( like share holders, consumers, employees, government, and general community around the business place ) Social responsibility may be defined as the obligation of an organization to protect and enhance society within which the organizations operate. Every business organization operates in society. It uses society's resources and sells its production to the society and earns profit. There fore fulfilling the responsibilities of society is the social responsibility of Business.

 According to Howard R. Brown (1953) " Social responsibility is the obligation to pursue those policies to make those decisions or to follow those lines of action which are desirable in term of the objective and values of the s society." Above definition indicates why social responsibility is necessary for a business firm. It indicates the various types of social obligations for business. Social responsibility of business can be categorized into four types. Economic responsibility of business, are to produce goods and services that society wants at reasonable prices and to satisfy its obligations to investors. Legal responsibilities are to obey relevant national laws and regulations. Ethical responsibilities include meeting societal expectations. Finally voluntary responsibilities are additional behaviors and activities that society finds desirable.

 Corporate governance: The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community). The corporate governance framework consists of (1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards, (2) procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and (3) procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances. Also called corporation governance. See also Cadbury rules and governance.

 Corporate governance: value of fairness, accountability, responsibility transparency into organizations. Healthy business climate.

 Corporate governance: It involves a set of relationships between a companys management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined."

 In essence we believe that good corporate governance consists of a system of structuring, operating and controlling a company such as to achieve the following: a culture based on a foundation of sound business ethics . fulfilling the long-term strategic goal of the owners while taking into account the expectations of all the key stakeholders, and in particular:
consider and care for the interests of employees, past, present and future

work to maintain excellent relations with both customers and suppliers

maintaining proper compliance with all the applicable legal and regulatory requirements under which the company is carrying out its activities.

 Objectives of Corporate Governance: Transparency and Full Disclosure Good corporate governance aims at ensuring a higher degree of transparency in an organization by encouraging full disclosure of transactions in the company accounts. Full disclosure includes compliance with regulations and disclosing any information important to the shareholders. Accountability corporate governance structure encourages accountability of the management to the company directors and the accountability of the directors to the shareholders. Through hiring independent directors, a company aims to create good corporate governance. The compensation of the chief executive officer has to be approved by the company directors to ensure that the compensation structure is fair and in the best interests of the shareholders. Any discrepancies in the company accounts or malfunctioning of the company is closely watched by the board of directors. The board has a right to question strategic decisions.

 Equitable Treatment of Shareholders A corporate governance structure ensures equitable treatment of all the shareholders of the company. In some organizations, a particular group of shareholders remains active due to their concentrated position and may be better able to guard their interests; such groups include high-net-worth individuals and institutions that have a substantial proportion of their portfolios invested in the company. However, all shareholders deserve equitable treatment, and this equity is ensured by a good corporate governance structure in any organization. Self Evaluation Corporate governance allows firms to evaluate their behavior before they are scrutinized by regulatory bodies. Firms with a strong corporate governance system are better able to limit their exposure to regulatory risks and fines. An active and independent board can successfully point out the loopholes in the company operations and help solve issues internally.

 Increasing Shareholders' Wealth The main objective of corporate governance is to protect the long-term interests of the shareholders. Ira Millstein, in his book, "Corporate Governance: Improving Competitiveness and Access to Capital in Global Markets," mentions that firms with strong corporate governance structures are seen to have higher valuation premiums attached to their shares. This shows that good corporate governance is perceived by the market as an incentive for shareholders to invest in the company.

 Challenges of corporate governance: Family-Owned Companies Easily Corruptible Costs of Monitoring Internal Controls and Risk Management Lack of Disclosure Sound, Universal Accounting System

 Any Questions?