Juraz -Enhance Your Commerce Skills With Us Management as science School of management thoughts

Management is not an exact science like physics, chemistry etc. The Classical Theory Neo classical Modern approach
Business Management (B.Com) main reason of that is it deals with human being. Human behaviour approach
are unpredictable. The application of management principles does Increase productivity It is an attempt to Consider both micro
MODULE I not give same result. and efficiency improve classical and macro forces
theory. It argues impacting the
CONCEPT OF MANAGEMENT Management as an art employee organisation in order
Art is the application of personal skill in a particular situation to satisfaction as well to improve
Management as economic productivity.
achieve a desired result. The features of art are
According to Lawrence A Appley "Management is getting things done effectiveness are the
a) It involves acquisition of skill and ability. goal of the
through the efforts of other people."
b) It is the application of personal skill. organisation.
Characteristics / Importance of management This theory emphasis The organisation is a It is based on system
c) It aims to achieve concrete results. on rationality. social system. theory and
1. It is a process.
d) Continuous practice. contingency theory.
2. It is a social process. The main content of This theory focused Managers use
e) It is creative. this theory is more on structure quantitative analysis
3. Existence of objectives.
On the basis of above fact, we can say that management is an art. It scientific and physical aspect and tools to solve
4.Decision making management, of worker. complex problems.
is the art of getting things done through and with the help of others.
5. Integration of organisational resources. administration and
Management as a profession bureaucratic
6. Leadership. management.
Profession should possess the following characteristics:
7. It helps to achieve organisational objectives. It was introduced in The main source of It is also called
1. Existence of body of knowledge. the late 19th century. neo classical theory management science
8. It provides new ideas and imagination. are human relation approach.
2. Formalised method of acquiring training.
Nature and Scope of Management movement and
3. Code of ethics. behavioural
Nature of Management Scope of management movement.
4. Service motto.
Goal oriented Management principles
Human activity Financial management On the basis of above facts, we cannot fully recognise management
Profession Personnel management as a profession. Levels of management and functions
Art as well as science Materials management Top level Medium level Lower level
Intangible Production management Determine the Plan the department Plan for day to day
Distinct process Marketing management objective of the operations. works.
organisation.

Define the goal. Collect report from Motivates 7. Remuneration Scientific management
lower level. employees
Remuneration should be fair, and it should be satisfied by the According to F.W. Taylor, “Scientific management means exactly
Establishes the policies. Evaluate performance of Issue instructions.
employees. what you want meant to do and seeing that they do it in the best and
subordinates
8. Centralisation and decentralisation cheapest way.”
Prepare strategic plans. Coordinating Allot works to
department activities. workers. Features / Principles of scientific management
Centralisation means decision making power with the top
Judge the results. Cooperation and Give guidance to
management. Decentralisation means powers are given to lower 1. Separation of planning and doing.
coordination with other workers.
departments. level. An organisation should be strive to achieve balance between
2. Functional foremanship.
centralisation and decentralisation.
3. Scientific work study.
General principles of Management 9. Scalar chain
4. Scientific training and selection of workers.
1. Division of work It is the line of authority. It is a chain of superior ranging from the
ultimate authority to the lower ranks. 5. Financial incentives.
Work is divided into small jobs; it leads to specialisation and
10. Order 6. Mental revolution.
efficiency.
There should be material and social order in an organisation. Difference between management and administration
2. Authority and responsibility
Arrangement of things is called material order. Arrangement of Management Administration
Authority is the right of superior to give orders. Responsibility is the people is called social order. It is a middle level activity. It is a top level activity.
obligation to perform a duty. It is used mainly in business It is mainly used in government
11. Equity
3. Discipline organisation. organisations.
Equity results from kindliness and justice. Everybody should treated It is a doing process It is a thinking process.
Discipline means sincerity, obedience and respect of rules and as equal. Decisions are influenced by Decisions are influenced by
regulations of the organisation. values and beliefs. public opinion.
12. Stability of tenure and personnel
4. Unity of command Key person is manager Key person is administrator
Frequent changes in the positions held by employees deteriorate
worker should receive orders from one superior only. It will reduce their standard of performance.
confusion and conflicts. MBO (Management By Objectives)
13. Initiative
5. Unity of direction It is a managerial system that aims to improve organisational
Employees should be given adequate freedom to think and execute performance by clearly defining the objectives.
The entire organisation should be moving towards a common their ideas.
objective in a common direction. Features of MBO
14. Espirit de corps
6. Subordination of individual interest to group interest 1.Focuse on goals and achievement.
It means union is strength. The entire organisation should be treated
Importance should be given to interest of the organisation. 2. It gives emphasis on effective performance.
as one unit.

3. Periodic review of performance. Workers Participative Management (WPM) Management By Exception (MBE)
4. Universally applicable. It means participation of non-managerial employees in the decision It is an employee empowerment and management style where in
making process of the organisation. managers intervene only when their employees fail to meet their
5. It provides guidelines for appropriate systems, procedure etc…
Objectives of WPM performance standard.
Benefits of MBO
Management By Motivation (MBM)
1. subordinates participate and cooperate in setting goals. 1.To establish industrial democracy.
MBM is the process through which managers encourages employees
2.To build dynamic human resources.
2.Systematic evaluation of the performance. to be productive and effective.
3.To strengthen labour management cooperation.
3.It provides definite performance standards. Methods for motivating employees
4.Delegation of authority is done. 4.To promote increased productivity.
1.Rewards and incentives
5.It is a tool for organisation control. Merits and demerits of participative management
2.Non monetary incentives
6. It encourages motivation. Merits Demerits
Increased productivity Decision making slows down Job security
7. It envisages planning. Job satisfaction Security issues Promotion
8. Periodic review of performance. Motivation Time consuming
Challenging jobs
Improved quality
Weakness or Limitations of MBO Reduced cost Suggestion scheme
1. It is a time-consuming process. Attain self esteem
Recognition
2. It is costly. Functions / Process of management
Forms of WPM
3. Difficult in setting objectives. PODSCORB
1.Collective bargaining
4. It creates frustration among managers. Planning
2.Suggestion scheme
5. More emphasis on short term objectives. Organising
3.Workers council
Process of MBO Directing
4.Workers committee
1. Setting of objectives. Staffing
5.Joint decision model
2. Development of action plans. Coordinating
6.TQM
3. Periodic review. Reporting
7.Quality circle
4. Performance appraisal. Budgeting
Planning 3. It offset uncertainty. 2. Policies
According to Haimann "Planning means deciding in advance. What is 4. It facilitate co ordination. A policy is a standing plan. It guides management in all levels in
to be done." decision making.
5. It helps in control.
Features of planning 3. Procedures
6. It helps in motivation.
1. It is done on the basis of objectives. 7. It enhances efficiency. Procedures are operational guides to action.
2. It is futuristic. 4. Rules
Limitations of planning
3. It is a mental activity. It is a specific action to be taken or not to be taken with respect to a
1. It is expensive.
situation.
4. It is the primary function of management. 2. It is time consuming.
5. Strategies
5. It is a continuous process. 3. Limitations of forecasting.
It is a plan made in the light of plans of competitors
6. It is dynamic.
4.False sense of security.
7. It is pervasive. 6. Programmes
5. Technological changes.
It is a sequence of action to accomplish objectives.
8. It should be flexible. Barriers of effective planning
7. Budgets
Planning process/ Steps
1. Uncertainty
1. Determination of objectives. It is a statement of expected results expressed in quantitative terms
2. Technical problems for a definite period of time.
2. Construction of planning premises. 3. Psychological problems Planning premises
3. Collection and classification of information.
4. Lack of knowledge in forecasting techniques. It means all the assumption about future.
4. Identification of alternatives.
5. Substandard information. Organising
5. Evaluation of alternatives. 6. Reluctance of managers. Organising is a managerial function of arranging people and
6. Selection of best alternative. resources to work towards a goal.
7. Lack of appropriate planning climate.
7. Preparation of subsidiary plan. Steps / Elements / Functions of organising
Elements or Types of plans
8. Implementation. 1. Objectives 1. Defining objectives.
Advantages of planning 2. Determining activities.
Objectives are the goals of the organization wish to achieve varying
1. It helps in achieving objectives. over a period of time. 3. Grouping of activities.
2. It helps in coordination. 4. Assigning duties.

5. delegation of authorities. It is created by top It is created by personal Difference between line and line & staff organisation
management. relationship.
6. Coordinating activities. Line organisation Line and staff organisation
It has a long life. It does not last long.
Expert advice are not available. Expert advice are available.
7. Provision of physical facilities and good environment Official communication. Unofficial communication.
There is strict discipline. There is loose discipline.
8. Establishment of structural relationship. It is governed by specific rules There is no specific rules and
It is less elastic. It is more elastic.
and regulations. regulations.
Principles of organisation IT is less expensive. It is expensive.
It is fairly large. It is small.
It not based on specialisation. It is based on specialisation.
1. Principle of organisation Types of organisation structure

2. Division of labour. 1. Line organisation

3. Functional Organisation
3. Scalar chain This is the simplest type of organisation. Under this type of
This is an organisation structure in which employees are arranged by
organisation, line of authority flows vertically from top most
4. Unity of command functions performed by them in the organisation.
executive to lowest subordinates.
5. Unity of direction Merits and demerits of functional organisation
Merits and demerits of line organisation
6. Span of control Merits Demerits
Merits Demerits
Specialization Conflicts
7. Flexibility Simple Lack of specialisation
Standardisation Lack of coordination
Quick decision Overloading of work
8. Delegation of authority. Higher efficiency Delay in decision making
Unity of command Difficult communication
Mass production Violation of unity of command
Formal organisation Discipline Difficult coordination
Flexibility Complex relationship.
Economical Not suitable for large business.
It is a type of organisation which is created by top management to
2. Line and staff organisation
achieve objectives in this structure, authority, responsibility and
Difference between line organisation and functional organisation
accountability are well defined. It is a combination of line and staff officers. The line function directly
responsible for achieving organisational objectives. The staff function Line organisation Functional organisation
Informal organisation
supports line in achieving organisational objectives. Authority flows from top to Authority is functional.
It is a type of organisation which is created through personal bottom.
Merits and demerits of line and staff organisation Direct chain of command. No direct chain of command.
relationship in the organisation.
Merits Demerits No specialisation Specialization
Difference between formal and informal organisation
Sound managerial decisions. Conflicts Strict discipline. Loose discipline
Formal organisation Informal organisation Flexibility Confusion about position Better coordination. Difficult to attain coordination.
It is based on formal relationship It is based on interpersonal Unity of command Lack of accountability Suitable to small business. Suitable to large business.
relationship. Reduction of burden Increased cost administration
The structure is well defined The structure is not well defined. Planned specialisation Chance of misinterpretation.

Span of management Importance / Advantages of delegation Centralization

It refers to number of subordinates who can be managed effectively 1. Quick decision Centralisation refers to concentration of authority of decision making
by a superior. It is also called span of control. at top level management.
2. Reduces burden of superiors.
Factors determining span of control Decentralisation
3. Better coordination.
1. Capacity of superior. 4. Improved job satisfaction. Decentralisation refers to the centres of decision making are
dispersed through out the organisation.
2. Capacity of subordinates.
5. development of executives.
3. Nature of work. Difference between delegation and decentralisation
Authority
4. Degree of decentralisation. Delegation Decentralisation
Authority is the right to initiate command and issue orders. It refers to transfer of authority. It refers to systematic delegation
5. availability of staff assistance. Types of Authority of authority
6. Communication techniques It is must for management It is optional
1. Legal authority: Authority passed by law Good result in all type of Effective in big organisation.
Delegation of authority organisation
2. traditional authority: Authority passed from father to son.
It means granting of authority to subordinates to operate within It is a process. It is the end result.
3. Charismatic authority: Authority passed on personal charisma.
prescribed limits.
4. Technical authority: Based on knowledge and skill. Departmentation
Steps in delegation of authority
5. Position authority: It is based on position enjoyed by a person. It is a process of grouping of activities into units and sub-units for the
1. Determination of responsibility.
Responsibility purpose of administration.
2. Delegation of authority.
It is the obligation to perform an assigned work. Need and importance of departmentation
3. Creation of accountability.
Difference between authority and responsibility 1. Increases the operating efficiencies of the employees.
Principles of delegation
Authority Responsibility 2. increases the prestige of the department head.
1. Principles of delegations by results expected. It is the right to command It is the obligation to perform a
3. Further expansion of the organisation.
2. Unity of command. orders. duty.
Delegation is possible. It cannot be delegated. 4. Attaining specialisation.
3. Authority.
It is a stable. It ends performance. 5. Helps to achieve better coordination.
4. Scalar chain It flows downward. It does not flow.
It can be withdrawn. It cannot be withdrawn.
5. Communication.
6. Principle of functional definition.
Methods of departmentation Merits and demerits of Territorial departmentation Sources of recruitment
1. Functional departmentation Merits Demerits Internal sources External Sources
Cater the need of different More employees are required. Transfer Advertisement
It refers to grouping of activities of an enterprise on the basis of
region. Promotion Employment exchange
functions such as production, sale, purchase, etc.
Cost reduction. Maintenance cost is more. Demotion Campus recruitment
Merits and demerits of functional departmentation Decentralisation of authority. Difficult to coordinate different Present employees Labour union
area. Gate hiring
Merits Demerits
Quick and prompt decision. Conflict between head office Selection
Specialisation. Chance for conflict.
and zonal office.
Standardisation. Delay in decision making. It is a process of selecting adequate number of persons who are fit
4. Customer wise departmentation
Higher efficiency. Difficult to coordinate various for the job.
departments. In this type, the whole enterprise is divided in to number of
Training
Scope for expansion. departments on the basis of customers.
Facilitate coordination. It is an act of increasing knowledge and skill of an employee for doing
Staffing : According to Hiemann, “Staffing function pertains to the
a particular job.
recruitment, selection, development, training and compensation of
2. Product wise departmentation subordinates.
Grouping of activities on the basis of product is called product wise Need and importance of staffing
departmentation.
Merits and demerits of product wise departmentation
1. key to other managerial function.
MODULE II
2. Adaptation of later technology
Merits
Standardised products.
Demerits
Chance for conflict.
3. Higher productivity. Functions of Management
Better coordination. Delay in decision making. 4. Maintaining good human relation. Motivation
Specialisation on product. Difficult to coordinate various
Manpower planning According to William G Scott, “ Motivation means a process of
departments.
It is a process of putting right number of people at right place at right stimulating people to action to accomplish desired goals.”
Effective control.
Development of overall time for the achievement of organisation goal. Characteristics of motivation
managers.
Recruitment 1. It is a continuous process.
3. Territorial departmentation
It is the process of finding apt candidates and applies for jobs in the 2. It is a psychological process.
Grouping of activities on the basis of location or geographical area is
organisation.
called territorial departmentation. 3. It is dynamic.
4. It is goal oriented process.

5. It is a complex process. Types of Needs provides two factors that affect motivation in the work place which is
6. It is based on motives. 1. Physiological Needs motivational factors and hygiene factors.

Importance / Advantages of motivation These needs are related to the survival and maintenance of life. It Motivational Factors Hygiene Factors
Achievement Salary
includes food, drink, oxygen, sleep and sex.
1. It makes employees quality oriented. Recognition Job security
2. It is a basis for cooperation. 2. Safety or Security Needs Advancement Personal life
These consist of physical safety against murder, fire accident, Possibility of personal growth Work condition
3. It maintains good human relations. Responsibility Status
security against unemployment etc.
4. It create better image of organisation.
3. Social or Love Needs
5. It facilitates effective utilisation of human resources. 3. Mc Gregor’s Theory X and Theory Y
These consist of need for love, affection, belonging or association
6. It leads to low turnover and absenteeism. This theory was propounded by McGregor. Theory X and theory Y are
with family, friends and other social groups.
theories of human work motivation and management.
Theories of Motivation 4. Esteem or Ego Needs
Assumptions / Difference between Theory X and Theory Y
1. Maslow’s Need Hierarchy Theory The esteem needs are concerned with self respect, self confidence,
Theory X Theory Y
2. Herzberg’s Two Factor Theory feeling of personal worth, feeling of being unique and recognition.
Workers hate work. Workers like work.
3. Mc Clelland’s Achievement Theory 5. Self Actualization Needs Workers are motivated by Workers can enjoy work.
It is the desire to become everything that one is capable of money.
4. Mc Gregor’s Theory X and Theory Y
becoming. It is considered as the mission of the life of a person. Workers avoid responsibility. Workers accept responsibility.
5. Theory Z (William G Ouchi) Workers lacks self motivation. Workers are self motivated.
1. Maslow’s Need Hierarchy Theory Lack of creativity and resist to Creativity widely spread.
change.
This theory was propounded by Abraham Herold Maslow. It is the Centralisation of authority. Decentralisation of authority.
most simple and widely accepted theory of motivation.
Assumptions of Maslow’s Theory 4. Mc Clelland’s Achievement motivation theory
a. Wants of human being are unlimited. This theory was propounded my David C Mc Clelland and his
b. Unsatisfied need act as a motivator. associate. According to them, there are three important human
needs such as power, affiliation and achievement.
c. Needs are arranged in an order.
2. Herzberg’s Two Factor Theory Need for affiliation Need for power Need for achievement
d. One needs are satisfied, another set of needs arise. It reflects a desire to It reflects a desire to It reflects a desire to do
This theory was propounded by Frederick Herzberg. This theory is
interact socially with obtain and exercise something better or
also called two factor theory or dual factor theory. This theory
people. power and authority. more.

5. Theory Z (William G Ouchi) 2. Better utilization of human resources. 2. Benevolent autocrat

This theory was given by William G Ouchi. This theory describes 3. It create confidence. Leader influences his subordinates through positive motivation.
major picture of Japanese management practices. Theory Z focuses
4. It builds morale. 3. Manipulative autocrat
increased employees loyalty to the company by providing the job like
wit the strong focus on the well being of the employees both on the 5. Develop good human relationship. Leader try to make workers participation but actually there is not.
job and off the job. 6. Promoting coordination. Free rein style
Leadership Functions of leadership It means leaders giving complete freedom to his subordinates. In this
It is the activity of influencing people to strive willingly for group of style leader play a minor role. Leader passes power of responsibility
1. Integration
objectives. to his subordinates. This style is also known as Laissez faire style.
2. Communication
Characteristics of leadership Participative style
3. Production
1. It is a personal quality. This style is also called democratic style. In this style leader
4. Team spirit decentralizes his decision making process.
2. It is the process of influence.
5. Initiation Paternalistic style
3. It ensure absolute justice.
Leadership styles In this style leader assumes that his function is paternal or fatherly.
4. A leader should have followers. The relationship with leader and followers like father and his family.
1. Autocratic style
5. It is the function of simulation.
2. Free rein style Charismatic style
6. It is related to a particular situation.
3. Participative style In this style leaders follow his subordinates through dint of
Leadership traits/ Qualities of a successful leader personality and charm.
4. Paternalistic style
Personal Qualities / Traits Managerial Qualities / Traits Communication
5. Charismatic style
Intelligence Technical Knowledge
Communication is the process of passing information from one
Self confidence Organising ability Autocratic style
person to another.
Sound physique Ability to deal with others
In this style manager centralize decision making power. Manager
Dynamic personality Need and characteristics of communication
gives orders to subordinates and obey them.
Empathy 1. It involves at least two persons.
Responsibility Types of autocratic leaders
Tact 2. Message is must for communication.
1. Strict autocrat
Emotional stability 3. It may be written or oral.
Importance of leadership Leader follow autocratic style in a very strict sense.
4. It is a two-way process.
1. It motivates employees.
5. It maybe formal or informal. Steps to overcome communication barriers Features/Importance of control
6. It is an integral part of the process of exchange. 1. Uses of simple language 1.It is a continuous process.
Importance of communication 2. Avoid noise level 2.It is a corrective process.
1. It is a basis for communication. 3. Active listening 3.It is forward looking.
2. It is a basis for co ordination 4. Emotion control 4.It is a basis for future actions.
3. It promotes cooperation and human relations. 5. Avoid information overload 5.It helps in delegation of authority.
4. It increases managerial efficiency. 6. Proper media selection 6.It shows weakness of management.
5. It emphasis effective leadership. Types of communication Steps in control
6. It facilitate smooth functioning of organization. 1. According to organisation structure 1. Establishing standard.
Communication process/ steps Formal communication Informal communication 2. Measurement of performance.
It is associated with formal There is no formal channel for
1. Sender: He is a person who send messages. 3. Appraisal of performance.
organisation structure. It is the communication. The informal
2. Message: It is a key idea that a sender wants to covey. official communication. channel of communication is 4. Determining the reason for deviation.
also called grape wine.
3. Medium: It is a means used to exchange message. Control Techniques
2. According to direction
4. Decoder: He is the person to whom the message is intended. A) Traditional
Downward communication Upward communication
5. Feedback: sender analysis the efficiency of messages. Communication which flows Communication which flows 1. Budgetary control
Barriers of communication from the superior to subordinate position to superior It is a device for managerial and accounting control.
subordinates is called downward position is called upward
1. Physical barriers communication. communication. 2. Cost control
2. Cultural barriers 3. According to way of expression 3. Cost accounting.
3. Socio psychological barriers Oral communication Written communication 4. Break even analysis
Communication with the help of Communication by using written
4. Poor listening spoken words is called oral words, graphs, charts, etc. is It establishes relationship of cost, volume and profit.
5. Information overload communication. called written communication. 5. standard costing.
Control
6. Semantic problems 6. Financial control
It is a continuous process of evaluating actual performance with
7. Poor retention B) Modern techniques
predetermined performance.
8. Time pressure 1. Management audit

It is a systematic and critical examination of overall performance of Specialization Well defined goals Professional ethics
the organisation. Survival of the organisation Effective communication
It refers to ethics that a person must adhere in dealing their
Accomplishment of objectives Cooperation
2. PERT professional life.
Differential perceptions Incentives
Programme evaluation and review technique Cooperation Theories of ethics
3. CPM It refers to collective effort of people who associate voluntarily to Teleological theory
Critical Path method. achieve specified objectives. This theories are concerned with the consequences of actions which
means the basic standards for our actions being morally right or
4. Quality control. MODULE III
wrong.
Direction BUSINESS ETHICS Forms of teleological theories
It means issuing directives, order, instructions and commands to Ethics
subordinates. 1. Ethical egoism
According to Peter F Drucker, “Ethics deals with the right actions of The theory that the morality right action is the one that produces the
Principles of direction individuals.” most favourable balance of good over evil for oneself.
1. Unity of command. Features of ethics 2. Utilitarianism
2. Direct supervision. 1. It deals with human beings. The right action is that which produces the greatest happiness for
3. Communication. 2. It is a social science. the greatest number.
4. Unity of direction. 3. It is about what is right and what is wrong. 3. Eudaimonism
5. Intelligibility. 4. It serve and guard business interest. This theory states that an action is good. It results in fulfilment of
6. Direct communication. goals along with welfare of human being.
Branches of ethics
Supervision Types of Teleological theories
1. Meta ethics- It is the study of meaning of ethics.
It means control and direction of subordinate’s activities. 1. Theory of utilitarianism
2. Normative ethics – It is the study of moral duties, rules within its
Co ordination social context. This theory states the right action is that which produces the
greatest happiness for the greatest number.
It is the achievement of orderly group efforts and unity of action in 3. Applied ethics – It is the application of ethical principles.
the pursuit of a common purpose. 2. Theory of virtue
4. Moral ethics – It is the study of human behaviour, beliefs, etc.
Importance / Features and Techniques of coordination The virtue ethics approach emphasize the virtuous character of
Personal ethics
individuals who makes the choices. It is the specific character traits.
Importance of coordination Techniques of coordination It refers to ethics that person identifies with in respect to people and
Unity of action Sound planning Eg: Courage, truth telling, honest, kindness
situations that they deal with in everyday life.

Strength and weakness of virtue ethics Characteristics of business ethics 5. Publicity.

Strength Weakness 1. Discipline 6. Equivalent price.
Character traits Without focus
2. It is an art, science and both. 7. Service motto.
Better people Self centeredness
Broad and holistic Misguidedness 3. Dynamic 8. Universal value.
Agent centred 4. Ancient concept. Factors influencing business ethics
Sense of community
Preservation of goodness 5. Study of goals and means. 1. Personal code of ethics.
6. Universal application. 2. Government rules and regulations.
3. Theory of justice and fairness 7. Relating to human aspects. 3. Ethical code of the company.
Justice as fairness is Rawls theory of justice for a liberal society. The Scope of business ethics 4. Social pressures.
aim of a theory of justice is to propose principles to guide the
Ethical problems in functional areas are: 5. Ethical climate of the industry.
political and social institution in such a way that each individual
receives a fair share of social benefits and burdens. Ethics in finance Ethics in Human Ethics in Ethics in Importance of business ethics
resource marketing production
Deontological theory 1. Increased goodwill.
Window dressing. Discrimination Misleading Defective
This theory asserts that the rightness of actions is determined partly issues. advertisement. products. 2. Helps in professionalism of management.
or entirely by their intrinsic value. Misleading Sexual Black markets. Dangerous 3. Release from tension.
financial analysis. harassment. products.
It includes 4. Perpetual succession.
Fake Occupational Grey markets. Problems arising
a) Duty theory reimbursements. safety and health. out of new 5. Management credibility.
technologies.
b) Right theory 6. Helps in decision making.
Inside trading. Affirmative Manipulation Environmental
c) Kantian theory of duty based ethics. action. of supply. issues. 7. Helps in face challenges.
d) Rossian theory of duty based ethics. Bribery and Price
kickbacks. discrimination. Arguments in favour and against business ethics
Moral standards Principles of business ethics Arguments in favour of ethics Arguments against ethics
It refers to the norms which have about the type of actions to be 1. Sacredness means and ends. Ethics applies to all human Profit will ensure maximum
morally acceptable and unacceptable. activities. social benefit, so no need for
2. Not to do any evil. business ethics.
Business Ethics Business cannot survive without Ethical company cannot be
3. Principle of proportionality.
According to Rogene A Buchholz, “Business ethics refers to right or ethics. competitive and viable.
4. Cooperation with others.
wrong behaviour in business decisions.”
Ethics is consistent with profit Profit maximisation ensure the Corporate citizenship 6. It increases profit.
seeking. efficient use of society’s 7. It increase customer retention and loyalty.
Corporate citizenship may be defined as the way a company
resources.
exercises its rights, obligations, privileges and overall corporate
Business ethics enhance Business already has enough CSR towards different sections of the society or different
responsibility within the neighbouring and global environment.
business performance power. stakeholders
Business ethics promotes It creates conflict between
Corporate Governance
personal morality. profitability and ethics. 1. Responsibility towards owners and shareholders
Corporate governance may be defined as a broad range of policies
Globalisation 2. Responsibility towards employees
and ethical practices which are adopted by an organisation in its
3. Responsibility towards consumers
It refers to integration of economies and societies all over the world. dealings with the stake holders.
4. Responsibility towards creditors
Globalisation and business ethics 5. Responsibility towards community
Features of CSR 6. Responsibility towards inter-business relation
Globalisation refers to integration of economies and societies all over
7. Responsibility towards government.
the world. 1. Voluntary.

Business transactions in different countries in different languages 2. Internalizing or managing externalities. 1. Responsibility towards Owners and shareholders:
and different cultures force companies to revisit ethical principles. a. It must ensure the safety of the funds invested.
3. Various stakeholder orientations.
b. It provide reasonable return on investment.
Some of the ethical issues faced by the countries are 4. Configuration of social and economic responsibilities. c. It ensure effective utilisation of fund.
a) Discrimination of women. d. It provide honest report of business operation.
5. Practices and values.
b) Unfair treatment of workers. 6. Beyond philanthropy. 2. Responsibility towards employees
c) Unfair treatment of opposite sex. Need and Importance of CSR a. To ensure job security.
b. To provide recreation, sanitation and medical facilities.
d) Language barriers. 1. It aims at consumer protection. c. To recognise social need of workers.
2. It aims at protection of local and global environment. d. To ensure fair treatment of workers.
MODULE IV 3. It ensures respect for human rights. e. Provision of genuine trade union rights of workers.
4. It results in avoiding bribery and corruption. f. To maintain good relationship with employees.
CORPORATE SOCIAL RESPONSIBILITY 5. It gives employees a feeling of unparalleled happiness. g. To ensure no discrimination of workers.
Corporate Social Responsibility h. To ensure protection of workers from occupational hazards.
CSR refers to the moral responsibility of the business by virtue of Advantages of CSR
1. It creates a favourable public image. 3. Responsibility towards consumers
being a part of society and resourceful to serve the society.
2. It enhance positive relationship. a. To offer good quality of goods.
Corporate Philanthropy 3. It encourage professional and personal growth. b. to follow suitable price policy.
4. Good public image secured by an organisation. c. Exploitation of consumers should be avoided.
It refers to activities which companies voluntarily initiate that aims to
5. It helps to achieve sustainability. d. Prompt services to customers must be ensured.
manage their impact on society at large.

e. Provide proper after sale services. 3. Proper use of resources. Objectives of Kaizen:
4. Capability and competence.
1. To eliminate waste or activities that add cost and not value.
4. Responsibility towards suppliers / creditors 5. Corporate should return a part of wealth.
a. To provide accurate information related to financial health of the 6. It creates a better impression. 2. Just in time delivery
organisation. 7. Company can avoid many legal complications.
3. Production load levelling of amount and types.
b. To ensure a reasonable price for the articles supplied.
c. To inform about changes in market. Arguments against CSR 4. Standardised work.
d. To inform supplier about future developments. 1. Violation of profit maximisation.
5. Paced moving lines and right sided equipment.
2. Lack of accountability.
5. Responsibility towards community 3. Increase in the price of product and services. Kaizen Benefits:
a. To develop a good relationship with community. 4. Social action cannot be measured.
1. It reduces wastes.
b. To minimise all kinds of pollution. 5. Lack of regulation of CSR.
c. to ensure development of backward areas. 6. Social issues are the concern of government, not business. 2. It results in higher employee morale.
d. Organise cultural and religious functions for the community. 7. Can reduce business public image. 3. It results in job satisfaction.
e. To create employment opportunities.
4. Quality improvement.
6. Responsibility towards inter-business relation
MODULE V
5. Faster delivery.
a. To maintain good relationship. EMERGING CONCEPTS IN MANAGEMENT
b. To avoid unilateral price fixation. 6. Improvement in customer service.
c. To co-operate to form the forum of trade association, chamber of Kaizen
7. Improvement in customer relations.
commerce etc. Kaizen means bring continuous small improvements in the overall
d. To have fair trade practices with other firms. 8. Improving system and processes.
process and eventually aims towards organisation success.
9. Achieving maximum efficiency and quality.
7. Responsibility towards government Features of Kaizen:
a. To obey laws passed by the local, state or central government. 10. Improvement in production aids.
1. Big results come from many small changes.
b. Firms should pay tax in time. Advantages of Kaizen:
c. It should invest their surplus funds in infrastructure bonds, 2. It aims at continuous improvement of process.
government bonds etc. 1. It facilitates improved efficiency.
3. It is process oriented.
d. They should not try to indulge in malpractices. 2. Improved employee satisfaction.
e. It must not allow unfair trade practices. 4. Every employee contributes his own suggestions to improve work.
3. it facilitates waste reduction.
5. Implementing Kaizen involves every member of the organisation.
Arguments in favour of CSR 4. Delegation of responsibility.
1. Long run survival of business concern. 6. Kaizen is a philosophy that focuses both on the process and
2. Corporate should have some moral and social obligation to results. 5. Improved employees morale.
undertake welfare of the society. 6. It is a method for active problem solving.

7. It encourage team work. 2. It helps in developing an adequate system of communication. 4. Reduce manufacturing cost by 30%.
5. Customer satisfaction.
8. It builds leadership skills. 3. Assures better quality performance in every sphere of activity.
6. Pollution control measures.
Total Quality Management (TQM) 4. Helps in checking non-productive activities. 7. Improve problem solving capabilities of workers.
TQM is a management approach through long term success through 5. Helpful in meeting the competition.
Principles of TPM
customer satisfaction. It is a combination of quality and management 6. Customer satisfaction. 1. Autonomous Maintenance
tools.
7. Improves employees Morale. 2. Focused Improvement
TQM Tools
8. It leads to cost effectiveness. 3. Planned Maintenance
1. Process Maps:
Disadvantages of TQM: 4. Quality management
2. Poke-A-Yoke:
1. Quality is expensive to implement. 5. Early equipment management
3. Statistical tools:
2. Discourages creativity. 6. Education and Training
4. Force field Analysis:
3. Production disruption. 7. Safety Health Environment
5. Root cause analysis:
4. Reduce workers output. 8. Administrative & office TPM
6. Fishbone Diagram (Ishikawa Diagram):
5. Employee Resistance. Management Information System (MIS)
7. Loss functions.
Total Productive Maintenance (TPM) MIS is a system that aids management in making, carrying out and
8. The Plan-Do-Study-Act (PDSA) Cycle:
TPM is a process of maximising equipment effectiveness through the controlling decisions.
9. Benchmarking:
active involvement of all supporting departments. Features of MIS
10. Brainstorming: Objectives of TPM: 1. Management Oriented.
11. Affinity Diagram:
1. Avoid wastage. 2. Management directed.
12. Interrelation Diagraph: 2. Reduce cost.
3. Integrated concept.
3. Produce a low batch quantity at the earliest possible time.
13. Tree Diagram:
4. Achieve zero defects, zero breakdown, zero accidents. 4. Common data base.
14. Prioritisation matrices. 5. Involve people in all levels of organisation. 5. Avoid redundancy in data storage.
15. Activity network diagram. Advantages of TPM 6. Heavy planning.
Advantages of TQM: 1. Increase in productivity. 7. Subsystem concept.
1. Eliminates defects and waste. 2. Increase in Overall Plant Efficiency.
3. Reduce accidents. 8. Common data flow.
9. Flexibility. 5. Lack of flexibility to update itself. Stress Management
10. Information as a source. 6. Effectiveness decreases due to frequent changes in top Stress management refers to changes to our life in a constant
management. stressful situation by practicing self-care and relaxation.
11. Need based.
ISO-International Organisation for Standardisation
12. Exception based. Causes of Stress at work:
It is a specialised agency for standardisation. The primary objective 1. Maltreatment or harassment.
13. Future oriented.
of ISO is codification and unification of international standards. 2. Feeling powerless.
Objectives of MIS 3. Continuous unreasonable performance demands.
Change Management 4. Lack of effective communication.
1. Data capturing
Change management is a systematic approach to dealing with 5. Lack of job security.
2. Processing of data. change both from the perspective of an organisation and individual. 6. Long working hours.
7. Excessive time away from home and family.
3. Storage of information. Levels Of Change Management: 8. Office politics.
4. Retrieval of information. 1. Individual change management.
5. Dissemination of information. Stress Management Techniques:
2. Organisation change management. 1. Meditation.
Advantages of MIS 3. Enterprise change management. 2. Exercise.
1. It facilitates planning. 3. Breathing exercise.
Resistance to Change 4. Yoga.
2. It minimises information overload. Resistance to change is a natural reaction when employees are 5. Healthy diet
3. MIS encourages decentralisation. asked, well, to change. 6. Assertive communication.
7. Socialisation.
4. It brings coordination. Reasons for resistance to change

5. It makes control easier. 1. Misunderstanding about the need for change. Fishbone Diagram
Fishbone diagrams are causal diagrams. It was created by Kaoru
6. MIS assembles, process, stores, retrieves, evaluates and 2. Fear of the unknown. Ishikawa in 1968. The diagram is also known as Ishikawa diagram.
disseminates the information. 3. Lack of competence.
Disadvantages of MIS Types of Fishbone diagram:
4. Connected to the old way. 1. Simple fishbone: In its basic form, the Ishikawa diagram has no
1. Highly sensitive 5. Low trust. predetermined affinities or categories of causes, so we can decide
2. Implementation is costly. affinities that may be unique to our organisation.
6. Poor communication. 2. 4S Fishbone: It classifies information about physical about
3. Budgeting of MIS is extremely difficult. 7. Changes to routine. potential causes into four common categories- Suppliers, Systems,
4. Quality of outputs is governed by quality of inputs. Surroundings and Skills.
8. Change in the status.

3. 6M Fishbone: This variation, enable us to organise causes logically Advantages of Rank and Yank 4. Compressed hours.
into 6 categories- Man, Materials, Machine, Methods, 1. It leads to increased productivity. 5. Flexi-time.
Measurements, and Mother Nature. 2. It encourages competition. Benefits of flexi working
4. 8P Fishbone: This variation divides causes into 8 categories- 3. It helps to building great teams through consistency, transparency 1. Flexibility to meet family needs and personal obligations.
Procedures, Policies, Place, Product, People, Processes, Price, and and honesty. 2. Reduced consumption of employee commuting time and fuel
Promotion. 4. It establish a standard for ell employees. costs.
Disadvantages 3. Avoids traffic and the stresses of rush hours.
Advantages of Fishbone Diagram: 1. It creates an unhealthy cut of star culture. 4. Increased feeling of personal control
1. Display relationship clearly and logically. 2. It encourages unhealthy competition. 5. Reduces employee burnout due to overload.
2. It helps in maintain team focus. 6. Reduced absenteeism and lateness.
3. It facilitate brain storming. 20% of Time 7. Increased employee morale.
4. It show all causes of problem simultaneously. 20% Of Time is a policy which allows employees to work on whatever
5. It stimulates problem solving. they want for 20 percent of their time on the job. Business Ecosystem
6. It allow for prioritisation of relevant causes. It is a strategic planning model whereby a network of suppliers,
7. It helps to identify root cause of a problem. Gamification distributors, competitors and customers all work through
It is a process for integrating game mechanics into something that competition and cooperation to advance sales of products.
Holacracy already exists to motivate participation, engagement and loyalty”.
Holacracy is a method of decentralised management and Benefits of gamification Characteristics of Business Ecosystem:
organisational governance, which claims to distribute authority and 1. Good learning experience. 1. Ecosystem are dynamic.
decision making through a holacracy of self-organising team. 2. High levels of engagement. 2. Diversity and their collective ability.
3. Managerial Insights. 3. Creates and capture new value.
Features / Advantages of Holacracy: 4. Instant feedback. 4. Collaboration and competitive.
1. It is flexible and adaptable. 5. Better learning environment. 5. it aims at innovations and commercial success.
2. It is a lively organisational structure. 6. Versatile. 6. Large number of participants.
3. It is a unique decision-making process. 7. Increase in recall and retention. 7. Cooperation and competition.
4. It is highly adjustable. 8. Gamification motivates everyone. 8. Ecosystem creates new ways to address fundamental human
5. Increased transparency. 9. It increases teamwork. needs.
6. It enables speedy decision making.
7. It enables organisations innovation and accountability. Flexi working
Flexible working is a way of working that is adapted to suit the
Rank and Yank employee’s needs.
It is a process by which a company ranks its employees and Types of flexible working:
terminates the employment of the people at the lowest end of the 1. Part time working.
ranking. 2. Working from home.
3. Job sharing.

LOGISTICS MANAGEMENT 3. Procurement.

4. Material Handling.
It is the process of planning, implementing and controlling the 5. Inventory Management.
physical flows of materials and finished goods from point of origin to 6. Packaging and Labelling
point of use to meet customer needs at a profit. 7. Warehousing.
8. Transportation.
Objectives of Logistics:
1. Reduction of inventory.
2. Economy of freight.
3. Reliability and steadiness in delivery performance. This is just a theory short notes from all the modules. You need to
4. Minimum damage to products.
refer all the available materials covering your syllabus.
5. Quicker and faster response.
ALL THE BEST
Functions of logistics:
1. Order Processing.
2. Inventory planning and management.
Prepared By:
3. Warehousing.
4. Transportation. RAHUL MURALI
5. Packaging.
JUBAIR MAJEED
Classification of Logistical Activities: For Juraz study materials, Please Contact
1. Inbound Logistics
2. Process Logistics 8089778065 (whatsapp only)
3. Outbound Logistics

Significance or Objectives of Logistics management:

1. Cost reduction and Profit maximisation.
2. Efficient flow of manufacturing operations.
3. Competitive Edge.
4. Effective communication system.
5. Sound Inventory management.

Key Activities involved in the logistics management:

1. Network design.
2. Order Processing.