Technical Innovation Management

and Entrepreneurship
 Technical Innovation Management and Entrepreneurship
Sub Code: 22BEC501
Credits : 3

Course Learning Objectives

1 Understand basic skills of Management
2 Understand the need for Entrepreneurs and their skills

3 Identify the Management functions and Social

responsibilities
4 Understand economic development,creativity and
Innovation
Understand the Ideation process, creation of Business
5 model, Feasability study and sources of funding
MODULE 1 MODULE 2 MODULE 3 MODULE 4 MODULE 5

• Manage • Organisi • Social • Busines

ment ng and Respons • Modern s Model
• Plannin Staffing ibilities Small • Financin
g • Directin of Busines g and
g and Busines s How to
Controll s Enterpri start a
ing • Entrepr se Busines
eneursh • Idea s?
ip generati • Project
on and Design
Feasibili and
ty Networ
Analysis k
Analysis
 Course Outcomes
• Understand the fundamental concepts of Management
and Entrepreneurship and opportunities in order to
setup a business
• Describe the functions of Managers, Entrepreneurs and
their social responsibilities
• Understand the components in developing business plan.
• Describe the importance of small scale industry in
economic development and institutional support to start
a small scale industry.
• Awareness about various sources of funding and
institutions supporting entrepreneurs
 Text Books
• Principles of Management – P.C Tripathi, P.N Reddy, McGraw
Hill Education, 6th Edition, 2017. ISBN-13:978-93-5260-535-4.
• Entrepreneurship Development Small Business Enterprises-
Poornima M Charantimath, Pearson Education 2008, ISBN
978-81-7758-260-4.
• Dynamics of Entrepreneurial Development and
Management by Vasant Desai. HPH 2007, ISBN: 978-81-8488-
801-2.
• Robert D. Hisrich, Mathew J. Manimala, Michael P Peters and
Dean A. Shepherd, “Entrepreneurship”, 8th Edition, Tata Mc
Graw Hill Publishing Co. ltd – New Delhi, 2012
 MODULE 1
MANAGEMENT AND PLANNING
 Management
• Management is a critical element in the
economic growth of a country
• Without management, a country’s resources of
production remain resources and never
People Money

become production
l Machines
• Management is essential in all organised Materia
efforts, be it a business activity or any other
activity.
• Management is the dynamic, life giving
element in every organisation.
 DEFINITIONS
OF
MANAGEMENT
This Photo by Unknown Author is licensed under CC BY
George R Terry
Management as a process “consisting of planning, organising,
actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources”

Four Management Activities

Planning Organising Actuating Controlling

 Mary Parker Follett
“Art of getting things done through people”

Two weaknesses of this definition are

• Art deals with the application of

knowledge. Management also involves
acquisition of knowledge i.e science.
Management based on rules of thumb or
intuition is not correct management

• This definition does not throw light on the

various functions of a manager.
 Management Activities

Planning Organising Actuating Controlling

Managers
think of their Managers Managers
actions in coordinate attempt to
Managers
advance, their the human ensure that
motivate and
actions are and material there is no
direct
usually based resources of deviation
subordinates
on some the from the
method, plan organisation. norm or plan
or logic
 Management Functions
Newman and Summer - organising, planning, leading
and controlling.

Henri Fayol- planning, organising, commanding,

coordinating and controlling.
Luther Gulick - “POSDCORB”, planning, organising,
staffing, directing, coordinating, reporting and
budgeting.
Warren Hayens and Joseph Massie- decision making,
organising, staffing, planning, controlling,
communicating and directing.
Koontz and O’ Donell - planning, organising, staffing,
directing and controlling.
 Management
Functions
Planning
Organizing
Staffing
Directing(leading)
Controlling
Innovation
Representation
 Planning
Function performed by managers at all levels- top, middle and supervisory.

Plans made by top management for the organisation as a whole may cover
periods as long as five or ten years.

Plans made by middle or first line managers, cover much shorter periods(next day’s
work or a two hour meeting)
 Organizing

To organise a business is to provide it

with everything useful to its functioning:
personnel, raw material, tools, capital

Human Material
Organisation Organisation
 Staffing

Find the right person for each job

Selection and training of the future

managers and encouraging highly
disciplined approach to work

Suitable system of compensation.

 Directing
Financial

Motivation

Non financial

Directing
Manager guides
Leadership
and influences

Passing
Communication information and
understanding
 Controlling
Manager must ensure Controlling Functions
that • Establishing the standards
• Everything occurs in of performance
conformity to plans • Measuring current
adopted. performance and
• Whether instructions comparing against the
are used correctly established standards.
• Whether principles are • Taking action to correct
established as planned. any performance that does
not meet the standards.
 Innovation
Creating new ideas which may
either result in the
development of new product
or finding new uses of old ones.
It is not for an organisation to
grow bigger, but it is necessary
that it constantly grows better.
REPRESENTATION

 Manager has to represent his

organisation to the stake holders,
government officials, labour
unions, financial institution,
supplier, customer etc.
 Manager must win their support
by effectively managing the
social impact of his Organisation.
 LEVELS OF MANAGEMENT
• Top management: consists of Board chairman, the
company Presidents, and the Executive Vice- Presidents.
Top Mangers require conceptual skills.
• Middle management: consists of vast and diversified
group consisting plant managers, personnel managers
and department heads. Middle managers need human
relations skill.
• First-line (Lower) management: is made up of foreman
and white collared supervisors. They require technical
skills.
 ROLES OF A MANAGER

Interpersonal Informational Decisional

Roles Roles Roles
 Interpersonal Roles
• Figure head: performs duties of ceremonial nature
such as greeting the touring dignitaries, attending the
wedding of an employee, taking an important
customer to lunch etc.
• Leader: every manager must motivate and encourage
their employees, try to reconcile their individual needs
with the goals of the organization.
• Liaison: in this role, every manager must develop
contacts outside the vertical chain of command to
collect information useful for the organization.
 Informational Roles
• Monitor: must perpetually scan his environment for
information, interrogates his liaison and subordinates to
get any solicited information useful for the organization.
• Disseminator: manager passes the privileged
information directly to the subordinates who otherwise
would not have access to it.
• Spokesman: may require spending a part of the time in
representing the organization before various outside
groups having some stake in the organization such as
government officials, labour unions, and financial
institutions.
 Decisional Roles
• Entrepreneur: in this role the manager proactively looks out for
innovation to improve the organization by means of creating
new ideas, development of new products or services or finding
new uses for the old ones.
• Disturbance handler: assume responsibility for handling an
unexpected event or crisis. Manager must act like a fire-fighter
to seek solutions to various unanticipated problems.
• Resource allocator: must divide work and delegate authority
among his subordinates. Assign resources between functions
and divisions, set budgets of lower managers.
• Negotiator: must spend considerable time in negotiations.
seeks to negotiate solutions between other managers, unions,
customers, or shareholders.
 MANAGERIAL SKILLS

 Conceptual Skills – deals with ideas

 Human Relation Skills – deals with
people
 Technical Skills – deals with things
Management as a Science, Art or Profession
Science Art Profession
 Methods of the  Practical  Existence of organized and
enquiry are Knowledge systematic knowledge.
systematic and  Personal Skills  Formalized methods of
empirical  Creativity acquiring training and
 If the information experience.
can be ordered  Existence of an association
and analyzed with the professionalization as
 Results are a goal.
cumulative and  Existence of an ethical code to
communicable regulate the behaviour of the
members of the profession.
 Charging of fees based on
service.
Planning involves selecting missions and objectives and
deciding on the actions to achieve them, it requires
decision making that is, choosing a course of action from
among alternatives.

A primary functional managerial activity that involves:

•Defining the organization’s goals
•Establishing an overall strategy for achieving those goals
•Developing a comprehensive set of plans to integrate and
coordinate organizational work.
NATURE OF
PLANNING
 NATURE OF PLANNING
• Decision Making
• Planning

Flexibility

Market Personnel Organisation

 IMPORTANCE OF PLANNING
• Minimizes risk and uncertainty
• Leads to success.
• Focus attention on the organizations goals
• Facilitates control
• Trains executives
 VISION - brief, focused, clear and
inspirational

MISSION unique aim of an organisation

TYPES OF PLOBJECTIVES aims which the

management wishes organisation to
achieve

STRATEGIES opportunities, threats,

strengths and weakness

OPERATIONAL PLANS standing plans,

Single use plans
 OBJECTIVES

Characteri Requirem Advantag

stics ents es
• • • Basis for planning
Multiple number Clear and acceptable
• • • Act as motivators
Priority Support one another
• • • Basis of managerial
Tangible or intangible Precise and measurable
• • control
Arranged in hierarchy Should always remain • Lessen misunderstanding
• Sometimes clash with each valid
• Provide legitimacy
other
 STRATEGIES
• ENVIRONMENTAL APPRAISAL
 Political and legal factors
 Economic factors
 Competitive factors
 Social and cultural factors
 CORPORATE APPRAISAL
 outstanding leadership & excellent product design low-cost
manufacturing skill
efficient distribution & efficient customer service personal
relationship with customers
 efficient transportation and logistics
 effective sales promotion
 high turnover of inventories, and/or capital
 ability to influence legislation, ownership of low- cost
 Operational Plans
Standing Plans Single Use Plan
 Policies  Programmes
 Procedures  Budgets
 Methods
 Rules
 FORMS OF PLANS
Strategic Planning Tactical Planning
• Decides major goals and • Decides the detailed use of
policies of allocation of resources
resources • Done at lower levels of
• Done at higher levels of management
management • Short term
• It is long term • Based on performance of
• Based on long term the organization
forecasts about • Based on day to day
technology, political operations of the
environment… organization.
 STEPS IN PLANNING
Establishing
verifiable goals or Establishing Deciding the
set of goals to be planning premises planning period.
achieved.

Evaluating and
Finding alternative Developing
selecting course of
course of action derivative plans
action

Establishing and Measuring and

deploying action controlling the
plans progress.
 Tangible and
Internal and
intangible
Establishing
external premises
premises

Planning
Constant and
variable premises
Controllable and
non-controllable Premises
premises
 Limitations of Planning
• Planning is costly
• Planning is time consuming
• Scope of planning is limited in the case of
organisations for rapidly changing situations
• Formulating accurate premises is difficult
• Managers are often frustrated in instituting a
new plan simply by unwillingness or inabilbity
of people to accept it.
 Decision Making

• managers of any organization decide

what to do, when to do, how to do
and who has to do.
• integral part of planning.
• Decision making and choosing the
best alternative is probably the most
important activity of the planning
process.
• In organizing, the managers decide
on the choice of structure, type of
organization, work allocation,
delegation of authority and
responsibility etc.
• In directing, managers decide the
course of action, the instruction to be
given, providing directions etc
• In controlling the managers decide
on fixing the standards, how to
control, what to control etc.
 TYPES OF DECISIONS

• Programmed and non-programmed or Pragmatic &

non Pragmatic decisions
• Individual & group (Collective) decisions
• Minor & Major decisions
• Strategic & Routine decisions
• Simple & Complex decisions
• Temporary & Permanent Decisions
STEPS IN
DECISION
MAKING