• Process of leading consists of three major functions:
  • Leadership
  • Motivation
  • Communication

• Any type of professional relations between the two parties of employees and employers are known as industrial relations.

Benefits of good labour relations 

• Enhancing the employee productivity of the institute
• Due to lack of industrial disputes the affairs of the firm flow smoothly
• Minimizing the wastage of resources
• Decreasing the absenteeism of employees
• Creating a motivated team of workers
• Decreasing the labour turnover

Consequences of bad labour relations 

• Weakens the business process due to strikes, and labour crisis
• Declining the employee productivity
• Diminishing the morale of the employees
• Wasting of resources
• Dropping the efficiency and effectiveness of the entire firm

Industrial Disputes 

• Job-related disputes arisen between employers and employees are known as industrial disputes.

 

• Organizing is the process of arranging and allocating work, authority and resources
  among an organizations members so as to achieve the organizations goals.

Importance Of Organizing 

• Necessity of formal organizing in order to achieve the objectives of an institute.
• To implement the plans successfully.
• To get the maximum use of the resources.
• To co-ordinate the tasks among the individuals, groups and departments.

Steps Of Organizing

• Recognizing of the tasks
• Division of work
• Departmentalization
• Delegation of authority and responsibility
• Determining the standards of work
• Allocation of resources
• Co-ordination

Bases Of Departmentalization

• Functional basis
• Product basis
• Consumer basis
• Geographical basis
• Mixed basis

Power Sources

• Legitimate power (Authority)
• Expert power
• Charismatic power
• Reward power
• Coercive power (power to punish)
• Personality power
• Information power
• Dominance

Various Ways Of Organization Chart

• Circular organizational chart
• Vertical organizational chart
• Horizontal organizational chart

Following elements are depicted through an organizational structure:

• Centralization or decentralization
• Departmentalization
• Unity of command
• Span of control
• Job specialization
• Rules & regulations and procedures
• Co-ordination
• Hierarchy

 

 

 

• Planning is a process of establishing goals of an organization and deciding
  the ways and means to be followed to achieve those goals.

Main activities of the  process of planning

• Deciding the goals and objectives.
• Deciding appropriate ways and means to achieve the goals and objectives.
• Presentation of those methods and strategies in writing.

Steps Of Planning

• Analysis of environment
• Identification of the strengths, weaknesses, opportunities and threats
• Establishment of the Vision, Mission, Goals and Objectives
• Identification of strategies
• Implementation of the plans
• Measuring the success and controlling

Principles Of Planning 

• Based on goals and objectives
• Practicability
• Flexibility
• Easy to understand
• Specific time duration
• Prepared prior to other managerial functions in an integrated manner

Importance Of Planning

• To face the uncertainty and dynamic environments successfully
• To get the maximum use of the scarce resources
• Planning facilitates controlling. Plans are supportive to determine whether the
  organization has fulfilled its objectives, and if not what should be done to rectify
  them
• Planning gives managers an opportunity to think about the future of the organization
• Planning is essential for other functions of management
• Planning is required for the continuity and growth of the organization

Problems and Limitations Of  Planning

• Application of out dated and incorrect information
• Planning based on the previous trends and data available at present
• Planning beyond the ability and capacity
• Insufficient interest and dedication
• Not receiving the co-operation of the employees at each level in the organization
• Plans not being integrated to the entire management system
• Believing that the plan will work as expected after being implemented

• A decision means the selection of the most appropriate alternative from among
  many alternatives.
• Accordingly, decision making is the process of identifying an alternative course of
  action to solve a specific problem and selecting the most suitable alternative.

Steps Of Decision Making

• Identifying the problem
• Developing alternative solutions
• Evaluating alternatives
• Selecting the best alternative
• Implementing

• Managers can be categorized into 3 levels based on authority as follows:
  • Top managers
  • Middle managers
  • First – line managers
• Top managers are the managers who are responsible for the overall management
  of the organization, establishment of goals, strategies operating policies and supervising
  the activities of middle managers
• Middle managers are the managers who direct and control the activities of first line
  managers and implement the policies, strategies and plans developed by the top
  managers
• First-line managers are the managers who supervise and control the activities of non
  managerial employees.

• The management functions related to planning and control of financial resources in an institute is known as financial management.
• The main goal of financial management is to maximize the business related value (wealth) of the proprietors of the business.

Sources of funds can be classified on various criteria 

• As internally and externally

• As direct and indirect

• As direct and indirect

• Two types of vital decisions are made in financial management:
  • Investment decisions
  • Financing decisions

 

Investment decisions 

• Decisions made to invest funds in fixed assets and current assets are investment decisions.

Financing decisions

• Decisions regarding how to provide the funds for investing in fixed and current assets are financing decisions.

Cash budget

• The cash budget is prepared considering the expected cash receipts and cash payments in a particular future period.
• Cash budget can be identified as an internal financial estimate used in planning and decision making.
• Uses of preparing a cash budget:
  • Ability to make effective cash investments, if any future cash excess can be identified in advance
  • Ability to prepare for possible cash shortages successfully in any future shortage can be identified in advance
  • Facilitating planning and control of cash by comparing with actual cash transactions

Capital budget

• Planning to invest the funds currently available in a business in long term assets or long term projects with the purpose of gaining future benefits is known as capital budgetting.
• Capital budgetting decisions made by the finance manager are known as long term investment decisions.
• Eg;
  • Constructing a new building with the purpose of expanding business affairs.
  • Purchasing a new machine.
  • Long term expenses incurred for advertising programmes.

• The Manager is the person who involves in planning, organizing, leading and controlling
  in order to achieve the goals and objectives of the business.
• The roles of a manager can be categorized under the following headings according
  to Henry Mintzberg
  • Interpersonal roles
  • Informational roles
  • Decisional roles

Stakeholders relevant to a Business

• Owners
• Government
• Managers
• Community
• Employees
• Competitors
• Suppliers
• Creditors
• Customers
• Potential investors

Reasons for them to be interested in  the business

• Owners
  • Profit
  • Growth
  • Market share
• Managers
  • Profit
  • Growth
  • Success of decisions
  • Promotion of position
• Employees
  • Salary
  • Bonus
  • Job satisfaction
  • Job security
  • Promotions
• Suppliers
  • Continuous orders
  • Repayments of loans
• Customers
  • Quality goods and services
  • Existence of the business
  • Discharging of responsibilities.
• Government
  • Taxes
  • Employment opportunities
  • Economic development
• Community
  • Environment protection
  • Employment opportunities
• Competitors
  • To decide on marketing strategies
  • To be aware of information
• Creditors
  • Security
  • Ability to recover loans
  • Safety of securities
• Potential investors
  • To invest their resources in the future

 Reasons  for the  business to be interested in them 

• Owners
  • To ensure existence
• Employees
  • To increase the productivity of employees, to increase the satisfaction
    of employee’s
• Creditors
  • To obtain the required funds continuously
• Government
  • To get special reliefs, To get Infrastructure facilities
• Customers
  • To secure market share of certain goods or services

• Management is 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.
• This process consists of the functions of,
  • Planning
  • Organizing
  • Leading
  • Controlling
• The resources used in an organization are known as inputs and those inputs consist
  of land, labour, capital, entrepreneurship, time, information and knowledge.

 Importance of Management

• To achieve the organizational goals and objectives successfully
• To utilize the limited resources efficiently and effectively
• To respond successfully to the dynamic business environment
• To assure the long term existence of the business by facing the competition
  successfully
• To face successfully the the complex situations created due to expantion
• To fulfill the expectations of the interested parties of the organization at a maximum
  satisfactory level
• To face the problems successfully and make correct decisions
• To act so as to fulfil the social responsibilities of business