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 Table of Content:
I. Management

• Defining Organization, Management, and Management in Organizations…………......9

• Four Management Functions, Management Roles, Management Skills……………....14
• Organizational Internal-External
Environment……………………………………………...20
• Management Planning, Goal Setting, and Decision
Making……………………………..22
• Strategic Management Process: Strategy Formulation and
Implementation…………..31
• Developing Organizational Structure and
Design………………………………………....33
• Designing Adaptive
Organizations…………………………………………………………..35
• Managing Change and
Innovation……………………………………………………….....38
• Leadership and
Motivation…………………………………………………………………...41

II. HR Management

• Role of Human Resource Management in Organizational Performance……….…....43

• Functions of HRM…..……………………………………………………………………....45
• Process and Methods of Job Analysis…………………………………………………....51
• Planning and Forecasting Personnel Needs……………………………………………..54
• Recruitment and
Selection……………………………………………………………..…..55
• Training and Development…..
• Performance Management and Appraisal: Methods and Processes…………..…….63
• Establishing Strategic Pay Plans…..…………………………………………………..…70
• Compensation and Benefits…………………………………………………………….…71
• Ethics, Justice, and Fair Treatment in HR Management……………………………….74
• Labor Relations and Collective Bargaining…………………………………………..…..77

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III. Financial Management

• An overview of Financial Management Introduction and significance of financial

markets, Differentiation between real assets and financial assets, Types of Financial
Markets, Role of capital and money markets in economic development,
Organizational goals and shareholder wealth maximization
perspective……………………..80

Time Value of Money

Cost of money and the factors effecting the cost, Interest rate fundamentals and
determinants of market interest rate, Role of Time value of money in finance, Concept of
future value and present value, Making timelines, Annuities, Perpetuities and mixed stream of
cash flows, with and without growth, Present value and future value of cash flow streams,
Compounding Interest; discrete and continuous, Loan amortization………………………..95

Analysis and Interpretation of Financial Statements

Reading the financial statements, Horizontal and vertical analysis including common
size, ratio, comparative and index number trend analysis, Forecasting financials for
future decision making, Evaluating credit, management, profitability, risk etc using
financial
statements…..……………………………………………………………………………………110

Risk, Return and Introduction to Pricing

Measures of Risks and return, Investment return and expected rate of return,
Standalone risk: standard deviation and coefficient of variation, Risk aversion and
required rate of return, Portfolio risk: Diversifiable vs. Market risk, Security Market Line and
CAPM, Calculating WACC, Discounting process for price determination, Relevant risk and
return for
valuation….…………………………………………………………………………………….126

Cash flow and Budgeting

Significance of budgeting, Making cash budgets, Making financial forecasts, Difference

between profit and cash flow, Read and analyze Statement of Cash flow.
…………………………..146

Capital Budgeting

Significance of Capital budgeting, Cash flow calculations: incremental cash flows,

Capital budgeting decision rules: NPV, IRR, MIRR, Return, Finding optimal capital
structure, calculating appropriate discount rate, Capital
Rationing….……………………………………….161

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IV. Operations and Supply Chain Management

a. Operations Management

Operations & Productivity

Operations Management (OM) as one of the Three Core Functions in an Organization.

Significance and contributions of OM in the field of management. Future trends in OM
and differences between goods and services.
………………………………………………………...175

Operations Strategy in Global Environment

Developing mission & OM strategies, Critical Success Factors (CSF), Aligning Core
Competencies with
CSF…..…………………………………………………………………………184

Process Strategy

Four Process Strategies, Process Analysis and Design, Process Mapping, Flow
Diagrams, Process Charts, Service process design, Process Re-
engineering…………….……………..190

Capacity Planning

Design & Effective Capacity, Capacity Cushion, Capacity considerations, Managing

demand, Capacity Planning, Leading vs Lagging Strategies, Single & Multiple Product
Break Even Analysis for Capacity Planning…..………………………………………………204

Location Strategies

Factors Affecting Location Decisions, Methods for Evaluating Location Alternatives,

Factor Rating Method, Load-Distance Methods, Center of Gravity Method, Service
location Strategy…..

Layout Strategies

Types of Layout, Layout Design, Fixed Position Layout, Process- Oriented Layouts, Office
Layout, Retail Layout, Assembly Line Balancing…..…………………………………………231

Inventory Management

Role of Inventory in Operations, ABC analysis, Record accuracy, Cycle counting,

Inventory Models, Fixed Period Systems, Continuous Review Systems, Basic EOQ
Inventory Model, Safety Stock, Service Level……………………………………………..240

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b. Supply Chain Management

Introduction to supply chain management and logistics management

What is supply chain management and logistics management, Objectives, Importance,

Examples of supply chain management and logistics management, Decision phases in
supply
chains…..……………………………………………………………………………………272

Supply chain performance

Achieving strategic fit, Challenges in achieving strategic fit, Supply chain cost, Supply chain
quality, Supply chain lead time…..

Supply chain drivers

Facilities as a driver, Inventory as a driver, Information as a driver, Transportation as a driver,

Sourcing as a driver, Pricing as a driver……………………………………………………..287

Balancing supply and demand

Bullwhip effect, Demand collaboration, Information sharing in supply chains, accurate

response
strategy….……………………………………………………………………………………………..2
93

Supply chain coordination

Obstacles in coordination, Vendor managed inventory, Collaborative planning forecasting

and replenishment, Managerial levers to achieve
coordination…………………………………..299

IT in supply chain management

Role of IT in supply chain management, Customer relationship management, Supplier

relationship management, Risk management in IT, Supply chain IT in
practice…………..308

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V. Marketing

• Introduction to
marketing……………………………………………………………………..319
• Developing marketing strategies and
plans………………………………………….…....322
• Scanning the marketing
environment….……………………………………………..…….325
• Analyzing consumer
markets….………………………………………………………..…..327
• Market
segmentation….…………………………………………………………….………..328
• Managing marketing
information……………………………………………….…………...331
• Branding………………………………………………………………………………….…...3
33
• Product life
cycle……………………………………………………………………………...337
• Pricing….………………………………………….……………………………………..……3
39
• Managing distribution
channels……………………………………………………………..340
• Integrated marketing
communications….………………………………………………….341

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Management:
Management in businesses and organizations is the function that coordinates the efforts of
people to accomplish goals and objectives by using available resources efficiently and
effectively.

Management includes planning, organizing, staffing, leading or directing, and controlling an

organization to accomplish the goal or target. Resourcing encompasses the deployment and
manipulation of human resources, financial resources, technological resources, and natural
resources. Management is also an academic discipline, a social science whose objective is
to study social organization.

What is an organization?

An organization that is established as a means for achieving defined objectives has been
referred to as a formal organization. Its design specifies how goals are subdivided and
reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs,
and tasks make up this work structure.

Management in Organization:

Theoretical scope:

Management involves identifying the mission, objective, procedures, rules and

manipulation[7] of the human capital of an enterprise to contribute to the success of the
enterprise.[citation needed] This implies effective communication: an enterprise environment
(as opposed to a physical or mechanical mechanism) implies human motivation and implies
some sort of successful progress or system outcome.[citation needed] As such,
management is not the manipulation of a mechanism (machine or automated program), not
the herding of animals, and can occur either in a legal or in an illegal enterprise or
environment. Management does not need to be seen from enterprise point of view alone,
because management is an essential function to improve one's life and relationships.[citation
needed] Management is therefore everywhere[citation needed] and it has a wider range of
application.[clarification needed] Based on this, management must have humans,
communication, and a positive enterprise endeavor.[citation needed] Plans, measurements,
motivational psychological tools, goals, and economic measures (profit, etc.) may or may not
be necessary components for there to be management. At first, one views management
functionally, such as measuring quantity, adjusting plans, meeting goals.[citation needed]
This applies even in situations where planning does not take place. From this perspective,
Henri Fayol (1841–1925)[8][page needed] considers management to consist of six functions:

• Forecasting
• Planning
• Organizing
• Commanding
• Coordinating

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 • controlling

(Henri Fayol was one of the most influential contributors to modern concepts of
management.[citation needed])

In another way of thinking, Mary Parker Follett (1868–1933), allegedly defined management
as "the art of getting things done through people".[9] She described management as
philosophy.

Critics[which?], however, find this definition useful but far too narrow. The phrase
"management is what managers do" occurs widely,[11] suggesting the difficulty of defining
management without circularity, the shifting nature of definitions[citation needed] and the
connection of managerial practices with the existence of a managerial cadre or of a class.

One habit of thought regards management as equivalent to "business administration" and

thus excludes management in places outside commerce, as for example in charities and in
the public sector. More broadly, every organization must "manage" its work, people,
processes, technology, etc. to maximize effectiveness.[citation needed] Nonetheless, many
people refer to university departments that teach management as "business schools". Some
such institutions (such as the Harvard Business School) use that name, while others (such as
the Yale School of Management) employ the broader term "management".

English-speakers may also use the term "management" or "the management" as a collective
word describing the managers of an organization, for example of a corporation.[12]
Historically this use of the term often contrasted with the term "labor" - referring to those
being managed.[13]

But in the present era[when?] the concept of management is identified[by whom?] in the
wide areas[which?] and its frontiers have been pushed to a broader range.[citation needed]
Apart from profitable organizations even non-profitable organizations (NGOs) apply
management concepts. The concept and its uses are not constrained[by whom?].
Management on the whole is the process of planning, organizing, staffing, leading and
controlling.

Levels

Most organizations have three management levels: first-level, middle-level, and top-level
managers.[citation needed] These managers are classified in a hierarchy of authority, and
perform different tasks. In many organizations, the number of managers in every level
resembles a pyramid. Each level is explained below in specifications of their different
responsibilities and likely job titles.[citation needed]

Top-level management

The top consists of the board of directors (including non-executive directors and executive
directors), president, vice-president, CEOs and other members of the C-level executives.
They are responsible for controlling and overseeing the entire organization. They set a tone
at the top and develop strategic plans, company policies, and make decisions on the
direction of the business. In addition, top-level managers play a significant role in the

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mobilization of outside resources and are accountable to the shareholders and general
public.

The board of directors is typically primarily composed of non-executives which owe a

fiduciary duty to shareholders and are not closely involved in the day-to-day activities of the
organization, although this varies depending on the type (e.g., public versus private), size
and culture of the organization. These directors are theoretically liable for breaches of that
duty and typically insured under directors and officers liability insurance. Fortune 500
directors are estimated to spend 4.4 hours per week on board duties, and median
compensation was $212,512 in 2010. The board sets corporate strategy, makes major
decisions such as major acquisitions,[25] and hires, evaluates, and fires the top-level
manager (Chief Executive Officer or CEO) and the CEO typically hires other positions.
However, board involvement in the hiring of other positions such as the Chief Financial
Officer (CFO) has increased.[26] In 2013, a survey of over 160 CEOs and directors of public
and private companies found that the top weaknesses of CEOs were "mentoring skills" and
"board engagement", and 10% of companies never evaluated the CEO.[27] The board may
also have certain employees (e.g., internal auditors) report to them or directly hire
independent contractors; for example, the board (through the audit committee) typically
selects the auditor.

Helpful skills of top management vary by the type of organization but typically include[28] a
broad understanding competition, world economies, and politics. In addition, the CEO is
responsible for implementing and determining (within the board's framework) the broad
policies of the organization. Executive management accomplishes the day-to-day details,
including: instructions for preparation of department budgets, procedures, schedules;
appointment of middle level executives such as department managers; coordination of
departments; media and governmental relations; and shareholder communication.

Middle-level managers

Consist of general managers, branch managers and department managers. They are
accountable to the top management for their department's function. They devote more time
to organizational and directional functions. Their roles can be emphasized as executing
organizational plans in conformance with the company's policies and the objectives of the
top management, they define and discuss information and policies from top management to
lower management, and most importantly they inspire and provide guidance to lower level
managers towards better performance.

Middle management is the midway management of a categorized organization, being

secondary to the senior management but above the deepest levels of operational members.
An operational manager may be well-thought-out the middle management, or may be
categorized as non-management operate, liable to the policy of the specific organization.
Efficiency of the middle level is vital in any organization, since they bridge the gap between
top level and bottom level staffs.

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Their functions include:

• Design and implement effective group and inter-group work and information systems.
• Define and monitor group-level performance indicators.
• Diagnose and resolve problems within and among work groups.
• Design and implement reward systems that support cooperative behavior. They also
make decision and share ideas with top managers.

Lower-level managers

Consist of supervisors, section leaders, foremen, etc. They focus on controlling and
directing. They usually have the responsibility of assigning employees tasks, guiding and
supervising employees on day-to-day activities, ensuring quality and quantity production,
making recommendations, suggestions, and up channeling employee problems, etc. First-
level managers are role models for employees that provide:

• Basic supervision
• Motivation
• Career planning
• Performance feedback

Four Management Functions:

What Are the Four Basic Functions That Make Up the Management
Process?
In 1916, a French coal mine director named Henri Fayol wrote a book entitled
“Administration Industrielle et Generale,” which set forth five distinct functions of managing
that Fayol insisted were applicable in any industry. In the 1950’s, management textbooks
began to incorporate some of Fayol’s ideas into their content. The process school of
management was born and, today, management courses still use many of Fayol’s ideas to
teach management to business students. Fayol originally set forth five management
functions, but management book authors have condensed them to four: planning, organizing,
leading and controlling. The fifth function was staffing.

Planning

Planning involves deciding where to take a company and selecting steps to get there. It first
requires managers to be aware of challenges facing their businesses, and it then it requires
managers to forecast future business and economic conditions. They then formulate
objectives to reach by certain deadlines and decide on steps to reach them. They re-
evaluate their plans as conditions change and make adjustments as necessary. Planning
helps allocate resources and reduce waste as well.

Organizing

Managers organize by bringing together physical, human and financial resources to achieve
objectives. They identify activities to be accomplished, classify activities, assign activities to

11
groups or individuals, create responsibility and delegate authority. They then coordinate the
relationships of responsibility and authority.

Leading

Leading requires managers to motivate employees to achieve business objectives and goals.
It requires the use of authority to achieve those ends as well as the ability to communicate
effectively. Effective leaders are students of human personalities, motivation and
communication. They can influence their personnel to view situations from their
perspectives. Leading also involves supervision of employees and their work.

Controlling

Controlling is a function of management that involves measuring achievement against

established objectives and goals. It also requires managers to be able to identify sources of
deviation from successful accomplishment and to provide a corrective course of action.
Managers first establish objectives and goals, then measure achievement of them, identify
anything that is keeping the company from achieving them, and provide means of correction
if necessary. Controlling does not necessarily involve achieving only monetary goals and
objectives. It can also relate to nontangible goals and objectives like meeting a production
quota or reducing customer complaints by a certain amount.

Management Roles:
LEARNING OBJECTIVE

Outline the ten management roles under their three categorical headings, as devised by
McGill University professor Henry Mintzberg

KEY POINTS

Mintzberg characterizes management using three categories and ten roles, each of which
exhibits critical managerial skill sets useful for business leaders in a variety of contexts.

• Interpersonal roles include: figurehead, leader, and liason.

• Informational roles include: mentor, disseminator, and spokesman.
• Decisional roles include: entrepreneur, disturbance handler, resource allocator, and
negotiator.

It is important to recognize that no single manager can be all things to all people at once.
Good management requires assessing which role is appropriate when and determining if
new talent is required to complement a skill set.

TERMS

Interpersonal

• Between two or more people.

Decisional

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 • Having the power or authority to make decisions.

Informational

• Designed or able to impart information.

Management is incorporated into every aspect of an organization and involves different roles
and responsibilities. Henry Mintzberg (1973), the Cleghorn Professor of Management
Studies at McGill University, defined ten management roles within three categories:
interpersonal, informational, and decisional.

Each of the three categories embraces the different roles.

Interpersonal

• Figurehead: symbolic head; performs a number of routine duties of a legal or social

nature.
• Leader: motivates and activates subordinates; performs staffing, training, and
associated duties.
• Liaison: maintains a self-developed network of outside contacts and informers who
provide favors and information.

Informational

• Mentor: seeks and receives a wide variety of special information (much of it current)
to develop a thorough understanding of the organization and environment; emerges
as the nerve center of internal and external information for the organization.
• Disseminator: transmits information received from outsiders or from other
subordinates to members of the organization. Some information is factual; some
involves interpretation and integration of diverse value positions of organizational
influences. Disseminating what is of value, and how, is a critical informational role.
• Spokesman: transmits information (plans, policies, results, etc.) within and outside of
the organization; serves as an expert on the organization's industry.

Decisional

• Entrepreneur: searches the organization and its environment and initiates

improvement projects to bring about change; supervises design of certain projects as
well.
• Disturbance Handler: takes corrective action when the organization faces important,
unexpected disturbances.
• Resource Allocator: allocates the organization's resources; makes or approves of all
significant organizational decisions.
• Negotiator: represents the organization at major negotiations.

A manager's job is never static; it is always dynamic. At any given time, a manager may carry
out some combination of these roles to varying degrees, from none of the time to 100

13
percent of the time. Throughout an individual's working life, a person may hold various
management positions that call upon different roles.

No one person can be all things to all people. While these ten roles are highly useful in
framing organizational leadership, to expect one person to fill each role in a large
organization is impractical. Instead, astute hiring managers will hire people with one or two
specific roles in mind, thereby creating a team of managers capable of handling the wide
variety of challenges in the business world today.

Effective Management Skills:

Some managers inspire, some motivate, and others fail miserably to engage their
employees. The entertainment industry seems to have created the ultimate formula for the
“bad manager” character, so why can’t real managers understand how to be effective?
When employees choose to leave a position, it’s often because of their manager or
relationships with people in their working environment.

Some managers inspire, some motivate, and others fail miserably to engage their
employees. The entertainment industry seems to have created the ultimate formula for the
“bad manager” character, so why can’t real managers understand how to be effective?
When employees choose to leave a position, it’s often because of their manager or
relationships with people in their working environment.

Develop Managers

The most productive companies are typically more proactive than their peers when it comes
to identifying and developing effective managers. The six most common managerial success
traits include communication, leadership, adaptability, relationships, development of others,
and personal development.

Teach Communication Skills

A manager with good communication skills is able to instruct as well as he listens. Managers
who can communicate effectively can process information, and then relate it back to their
teams clearly. Effective managers should be able to understand, decipher, and relate the
organization’s vision back to their employees in order to maintain productivity.

Expand Leadership Skills

Leadership is a crucial attribute that many managers lack despite their job title. It is common
practice for companies to promote employees with the best results, but sometimes the best
salesman doesn’t make the best manager. True leaders are able to instill trust, provide
direction, and delegate responsibility amongst team members.

Encourage Adaptability

Adaptability also contributes to a manager’s effectiveness. When a manager is able to adjust

quickly to unexpected circumstances, he is able to lead his team to adjust as well.

14
Adaptability also means that a manager can think creatively and find new solutions to old
problems.

Foster Interpersonal Skills

Effective managers should strive to build personal relationships with their teams. Employees
are more likely to exceed expectations when they trust their manager. When managers
establish a relationship with employees, it builds trust and employees feel valued. Valued
employees are more willing to get the job done right.

The best managers know when their employees need more development, and how to ensure
those developments are successful. Developing others involves cultivating each individual’s
talents, and motivating those individuals to channel those talents toward productivity.

Promote Personal Growth

Finally, an effective manager is aware of their own personal development. In order to

successfully develop and lead others, managers must seek improvement in themselves. A
manager who is willing to learn more and use their natural talents to the best of their ability
will be able to encourage the same behavior in employees.

Effective management skills are comprised of several key components, and are not easily
achieved. Organizations need to recognize the traits associated with successful
management, and then promote employees based on those traits. The highest achieving
employees do not always make the best managers, but employees that naturally exude the
attributes desired by managers are sure to be effective and successful in management roles.

Our Solutions

The Checkpoint 360°™ measures many specific job skills encompassing several universal
management and leadership competencies and a variety of important skill sets. This
information comes from surveys completed by staff members at a variety of levels, both
below and above the manager level. This information can provide revealing insights as to the
individual’s management style and how they are perceived by those around them. The report
also suggests strategies for improving the person’s leadership skills and performance level.

The ProfileXT® is another tool that can be very helpful in developing your managers. This
assessment measures interests, behavioral tendencies and other characteristics that are vital
to effective management performance.

15
External Environment:
An organization must have the ability to examine and make changes based on internal and
external environmental factors that affect its performance. The use of tools to analyze these
environmental factors is the key to a successful organization.

What Are Internal and External Environments?

If there is anything that is steadfast and unchanging, it is change itself. Change is inevitable,
and organizations that don't accept change and that make adjustments to their business
model based on changes are doomed to fail. There are events or situations that occur that
affect the way a business operates, in a positive or negative way. These events or situations
can have either a positive or a negative impact on a business and are called 'environmental
factors.'

There are two types of environmental factors: internal environmental factors and external
environmental factors. Internal environmental factors are events that occur within an
organization. Generally speaking, internal environmental factors are easier to control than
external environmental factors. Some examples of internal environmental factors are as
follows:

• Management changes
• Employee morale

16
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Administration Notes

Call At:
03084293988,
03314019933

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For Complete CSS Business
Administration Notes

Call At:
03084293988,
03314019933

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