Tag: Learned

Learned!

To learn new things is beneficial at any age, and any kind of learning can benefit other aspects of your life. For instance, taking music lessons can increase your language skills. If you’re interested in a topic, study it. If you’d like a new skill, practice it. Your life is ever-changing and infinitely complex, and your ability to experience it depends on your willingness the learn. The more you learned, the more you live.

Embrace failure and confusion. When you are learning a new thing, you are entering into unknown territory. Allow yourself to experience the confusion of unanswered questions and unfamiliar parameters. When you study a new topic, don’t look up answers to your questions right away. Instead, spend some time trying to figure the answers out on your own. This kind of trying (and failing) helps you better understand what you are learning.

  • Explain, What is NSE (National Stock Exchange)?

    Explain, What is NSE (National Stock Exchange)?

    Learn, Explain, What is NSE (National Stock Exchange)?

    The National Stock Exchange of India Limited (NSE) was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices, and procedures. Also learned, Corporate Planning, Explain, What is NSE (National Stock Exchange)?

    Explain What is NSE (National Stock Exchange) - ilearnlot
    Image: #NSE (National Stock Exchange).

    The National Stock Exchange of India Limited has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices, and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen-based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology.

    The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

    The National Stock Exchange of India Limited’s mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the following objectives:
    • Establishing a nation-wide trading facility for equities, debt instruments, and hybrids,
    • Ensuring equal access to investors all over the country through an appropriate communication network,
    • Providing a fair, efficient and transparent securities market to investors using electronic trading systems,
    • Enabling shorter settlement cycles and book-entry settlements systems, and
    • Meeting the current international standards of securities markets.

    The standards set by The National Stock Exchange of India Limited in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It’s that force which is guiding the industry towards new horizons and greater opportunities.

    Till the advent of The National Stock Exchange of India Limited, an investor wanting to transact in a security not traded on the nearest exchange had to route orders through a series of correspondent brokers to the appropriate exchange. This resulted in a great deal of uncertainty and high transaction costs. One of the objectives of NSE was to provide a nationwide trading facility and to enable investors spread all over the country to have an equal access to NSE.

    NSE has made it possible for an investor to access the same market and order book, irrespective of location, at the same price and at the same cost. NSE uses sophisticated telecommunication technology through which members can trade remotely from their offices located in any part of the country. NSE trading terminals are present in 363 cities and towns all over India.

    The National Stock Exchange of India Limited has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries NSE is one of the first demutualized stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policymakers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country.

    From day one, NSE has adopted the form of a demutualized exchange – the ownership, management, and trading is in the hands of three different sets of people. NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework.

    The NSE model, however, does not preclude, but in fact accommodates involvement, support, and contribution of trading members in a variety of ways. Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full-time executive of the Exchange.

    While the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to various committees constituted by it. Such committees include representatives from trading members, professionals, the public and the management. The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.

    The National Stock Exchange replaced open outcry system, i.e. floor trading with the screen based automated system. Earlier, the price information can be accessed only by few people but now information can be seen by the people even in a remote location. The paper-based settlement system was replaced by electronic screen-based system and settlement of trade transactions was done on time. NSE also created National Securities Depository Limited (NSDL) which permitted investors to hold and manage their shares and bonds electronically through a demat account.

    An investor can hold and trade in even one share. Now, the physical handling of securities eliminated so the chances of damage or misplacing of securities reduced to the minimum and to hold the equities become more convenient. The National Security Depository Limited’s electronically security handling, convenience, transparency, low transaction prices and efficiency in trade which is affected by NSE, has enhanced the reach of Indian stock market to domestic as well as international investors.

    #Promoters of National Stock Exchange of India (NSE):

    Following financial institutions were the promoters of National Stock Exchange :

    • Industrial Development Bank of India(IDBI).
    • Industrial Finance Corporation of India(IFCI).
    • Industrial Credit and Investment Corporation of India(ICICI).
    • Life Insurance Corporation of India(LIC).
    • General Insurance Corporation of India(GIC).
    • SBI Capital Markets Limited.
    • Stock Holding Corporation of India Limited.
    • Infrastructure Leasing and Financial Services Limited.

    #Market Segments of National Stock Exchange of India (NSE):

    The National Stock Exchange of India Limited was intended to establish a viable and vibrant debt market which was in an underdeveloped stage. Now, it provides the traditional retail market for securities and also operates a Wholesale Debt Market (which may be termed as money market segment).

    The NSE consists of three mutually exclusive segments :

    1. Wholesale debt market segment, started operations in June 1994.
    2. The capital market segment started operations in November 1994, and
    3. Derivatives (Futures and Options) Trading, started operations in June 2000.

    The Wholesale Debt Market segment of The National Stock Exchange of India Limited is a facility for institutions including subsidiaries of banks engaged in financial services and corporate bodies including companies to enter into high value transactions in instruments such as Public Sector Undertakings (PSUs) bonds, Treasury Bills (T-BilIs), Governments Securities, Units of UTI, Commercial Papers (CPs), Certificate of Deposits (CDs), Floating yields bonds, etc. Members of the Wholesale Debt Market segment can trade on their own behalf and on behalf of their clients. NSE trading system facilitates making two ways quotes in a highly flexible manner.

    The Capital Market segment covers trading in equities and retail trade in the convertible or non-convertible debentures and hybrids. This particular segment comprises the securities of medium and large companies with nation-wide investors base. These will also include securities which are being traded on their stock exchanges. By virtue of equal access nationwide, such securities can be traded at the same price from any part of the country. This provides good trading and investment opportunities, increases the volume of the trade and increases the liquidity considerably.

    Besides the capital market segment, The National Stock Exchange of India Limited also provides the opportunity to the investors to deal in the derivative products, i.e., futures and options. At present, NSE provides facility to trade in Nifty Futures, Nifty Options, Individual Stock Options and Individual Stock Futures.

  • What is the Concept of Corporate Planning?

    Learn and Explain, What is the Concept of Corporate Planning?

    A plan is a predetermined course of action to be taken in the future. It is a document containing the details of how the action will be executed and it is made on a timescale. The goals and the objective that a plan is supposed to achieve are the prerequisites of a plan. The setting of the goals and the objective is the primary task of the Management without which planning cannot begin. Also learned, Management As a Control System! What is the Concept of Corporate Planning?

    Planning means taking a deep look into the future and assessing the likely events in the total business environment and taking a suitable action to meet any eventuality. It further means generating the courses of action to meet the most likely eventuality. Planning is a dynamic process. As the future becomes the present reality, the course of action decided earlier may require a change. Planning, therefore, calls for a continuous assessment of the predetermined course of action versus the current requirements of the environment. The essence of planning is to see the opportunities and the threats in the future and predetermine the course of action to convert the opportunity into a business gain and to meet the threat to avoid any business loss.

    Planning involves a chain of decisions, one dependent on the other since it deals with a long-term period. A successful implementation of a plan means the execution of these decisions in a right manner one after another.

    Planning, in terms of future, can be long-range or short-range. Long-range planning is for a period of five years or more, while short-range planning is for one year at the most. The long-range planning is more concerned about the business as a whole and deals with the subject like the growth and the rate of growth, the direction of the business, establishing some position in the business world by way of a corporate image, a business share and so on. On the other hand, short-range planning is more concerned with the attainment of the business results of the year. It could also be in terms of action by certain business tasks, such as the launching of a new product, starting a manufacturing facility, completing the project, achieving intermediate milestones on the way to the attainment of goals. The goals relate to long-term planning and the objective related to the short-term planning. There is a hierarchy of objectives which together take the company to the attainment of goals. The plans, therefore, relate to the objectives when they are short-range and to goals when they are the long-range.

    Long-range planning deals with resource selection, its acquisition, and allocation. It deals with the technology and not with the methods or the procedures. It talks about the strategy of achieving the goals. The right strategy improves the chance of success tremendously. At the same time, a wrong strategy means a failure in achieving the goals.

    Corporate business planning deals with the corporate business goals and objectives. The business may be a manufacturing or a service; it may deal with the industry or trade; may operate in a public or a private sector; may be a national or an international business. Corporate business planning is a necessity in all cases. Though the corporate business planning deals with a company, its universe is beyond the company. The corporate business plan considers the world trends in the business, the industry, the technology, the international markets, the national priorities, the competitors, the business plans, the corporate strengths and the weaknesses for preparing a corporate plan. Planning, therefore, is a complex exercise of steering the company through the complexities, the difficulties, the inhibitions and the uncertainties towards the attainment of goals and objective.

    #Dimensions of Planning:

    The corporate business plan has five dimensions. These are time, entity, organization, elements and characteristics.

    #Time:

    The plan may either be long-range or short-range, but the execution of the plan is, year after year. The plan is made on a rolling basis where every year it is extended by one year, keeping the plan period for the next five years. The rolling plan provides an opportunity to correct or revise the plan in the light of any new information the planner may receive.

    #Entity:

    The planning entity is the thing on which the plan is focused. The entity could be the production in terms of quantity or it could be a new product. It could be about the finance, the marketing, the capacity, the manpower or the research and development. The goals and the objectives would be stated in terms of these entities. A corporate plan may have several entities.

    #Organization:

    The corporate plan would deal with the company as a whole, but it has to be broken down for its subsidiaries, if any, such as the functional groups, the divisions, the product groups and the projects. The breaking of the corporate business plan into smaller organizational units helps to fix the responsibility for execution. The corporate plan, therefore, would be a master plan and it would comprise several subsidiary plans.

    #Elements:

    The plan is made out of several elements. The plan begins with the mission and goal which the organization would like to achieve. It may provide a vision statement for all to understand as also the purpose, focus, and direction the organization would like to move towards. It would at the outset, place certain policy statements emerging out of management s business philosophy, culture and style of functioning followed by policy statements. Next, it would declare the strategies in various business functions, which would enable the organization to achieve the business objectives and targets. It would spell out a program of execution of plan and achievements. It provides support for rules, procedures, and methods of plan implementation, wherever necessary. One important element of the plan is a budget stipulated for achieving certain goals and business targets. The budgets are provided for sales, production, stocks, resources, expenses which are monitored for the time in execution period. The budgets and performance provide meaningful measure about success and failure of the plan designed to achieve certain goals.

    #Characteristics:

    There are no definite characteristics of a corporate plan. The choice of characteristics is a matter of convenience helping to communicate to everybody concerned in the organization and for an easy understanding in execution. The features of a plan could be several and could have several parts. The plan is a confidential written document subject to the charge and known to a limited few in the organization. It is described in the quantitative and qualitative terms. The long-term plan is normally flexible while the short-term one is generally not. The plan is based on the rational assumptions about the future and gives weight age to the past achievements and corporate strength and weal messes. The typical characteristics of a corporate plan are the goals, the resources, the important milestones, the investment details and a variety of schedules.

    #Concepts of Corporate Planning:

    Corporate planning is the process of creating a path to profitability for the enterprise, including determining how and where to market the company’s products and services. When preparing a business plan the small business owner also forecasts financial results for the upcoming year — revenues, expenses and the resulting profit. Planning has its own terminology, concepts, and techniques that must be understood in order for the business owner to be able to create a realistic plan that can be implemented successfully.

    • Mission Statement: In defining his mission statement, the small business owner states the value he wants to provide his customers, employees or society as a whole. He articulates why he decided to go into business — what he wants to accomplish through building the company.
    • Business Model: The concept of a business model has two components: how the company is going to generate sales and why the company will be profitable. The business may have several revenue streams, such as selling products, offering service contracts for the products and selling subscriptions to premium content on the company’s website. The company also has factors related to its operations that will cause it to be able to earn a profit. Lower production costs, relative to other companies in its industry, is a positive factor for the company.
    • Goals: Goals, or objectives as they are also called, describe the end result the business owner seeks to achieve. During the planning process, the business owner and his management team set numerous goals — major goals, such as revenues and profit margin percentage, as well as goals for each department and sometimes each individual — to ensure that all members of the organization put forth their best efforts and work as a cohesive team.
    • Strategies and Tactics: Strategies describe how the company’s resources will be directed to accomplish the goals. A strategy could be, for example, to sell the company’s products through independent sales reps and in-house salespeople. Tactics are specific steps taken to implement each of the strategies, showing who is responsible for implementing them and when each step needs to be completed.
    • Competitive Advantage: Companies succeed over the long term because they create and maintain competitive advantages — aspects of their products or service levels that deliver greater value to customers than those of competitors. The customers perceive this greater value and continue to do business with the company becoming loyal, repeat customers.
    • Financial Forecast: The forecast is created using spreadsheet software. The business owner builds revenue models that calculate the expected sales — units and dollars. He then estimates what the expenses for the company will be — what will it cost to create products or services, market them and fund the company’s operations including facilities costs and staff salaries.
    • Risk Factors: All businesses, including small ones, face risks — environmental factors that may cause the company to not perform as well financially as anticipated. It is important for the small business owner to recognize these risks and plan ways to change his business strategy if necessary in response to the risks. These planned responses are called contingency plans.
    • Exit Strategy: A business owner may have a long-term goal of selling the company someday. How he intends to divest the business is termed his exit strategy. Although larger companies’ shareholders sometimes exit through selling their shares to the public through an initial public offering — IPO — a small business owner commonly exits the business through selling it to another individual who wants to operate it, or to a larger company.

  • Explain Management As a Control System!

    Learn and Study, Explain Management As a Control System!

    Planning, organizing, staffing, coordinating, directing and controlling are various! Steps in a management process. All the steps prior to a control are necessary but are not necessarily self-assuring the results unless it is followed by a strong control mechanism. The management experts have viewed these steps as Management Control System. They postulate the hypothesis that unless a control is exercised on the process, the goals will not be achieved. They advocate a system of effective control to ensure the achievement of the business objectives. Also learn, Management as, What? As an Art…As a Process! Explain Management As a Control System!

    A definition of control is the process through which managers assure that actual activities conform to the planned activities, leading to the achievement of the stated common goals. The control process measures a progress towards those goals and enables the manager to detect the deviations from the original plan in time to take corrective actions before it is too late. Robert J Mockler defines and points out the essential elements of the control process.

    The management is a systematic effort to set the performance standards in line with the performance objectives, to design the information feedback systems, to compare the actual performance with these predetermined standards, to identify the deviations from the standards, to measure its significance and to take corrective actions in case of significant deviations. This systematic effort is undertaken through the management control system.

    The control system is essential to meet the environmental changes discussed earlier, to meet the complexity of today s business, to correct the mistakes made by the people, and to effectively monitor the delegation process. A reliable and effective control system has the following features.

    Early Warning Mechanism:

    This is a mechanism for predicting the possibility of achieving the goals and the standards before it is too late and allowing the manager to take corrective actions.

    Performance Standard:

    The performance standard must be measurable and acceptable to all the organization. The system should have meaningful standards relating to the work areas, responsibility, and managerial functions and so on. For example, the management would have standards relating to the business performance, such as production, sales, inventory, quality, etc.  The operational management would have standards relating to the shift production, rejections, downtime, utilization of resources, sale in a typical market segment and so. On. The chain of standards, when achieved, will ensure an achievement of the goals of the organization.

    Strategic Controls: 

    In every business there are strategic areas of control knows the critical success factors. The system should recognize them and have controls instituted on them.

    Feedback: 

    The control system would be effective; it continuously monitors the performance and sends the information to the control center for action. It should not only highlight the progress but also the deviations.

    Accurate and Timely: 

    The feedback should be accurate in terms of results and should be communicated in time for corrective action.

    Realistic: 

    The system should be realistic so that the cost of control is far less than the benefits. The standers are realistic and are believed as achievable. Sufficient incentive and rewards are to be provided to motivate the people.

    The Information Flow:

    The system should have the information flow aligned with the organization structure and the decision makers should ensure that the right people get the right information for action and decision making.

    Exception Principle:

    The system should selectively approve some significant deviations from the performance standards on the principle of management by exception.

    A standard is control system has a set of objectives, standards to measure, a feedback mechanism and an action center as elements of the system. They need to be properly evolved and instituted in the organization with due recognition to the internal and the external environment. The system as a whole should be flexible to change with ease so that the impact of changed environment is handled effectively.

  • Management Features Functions Importance Levels Objectives

    Management Features Functions Importance Levels Objectives

    Before starting Studying Management Features, Functions, Importance, Levels, and Objectives! What is it? After that, we can Be Discussing the Features of Management, Functions of Management, Importance of Management, Levels of Management, and Objectives of Management! Also learned, Discuss the Subsidiary Functions of Management: Features, Functions, Importance, Levels, and Objectives!

    Learn More, Explain Management Features, Functions, Importance, Levels, and Objectives!

    Do you want to know, What is a Management? Management is the administration of an organization, whether it is a business, a not-for-profit organization, or a government body. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources.

    The main points of discussion of Management follow are:

    • Features of Management.
    • Functions of Management.
    • Importance of Management.
    • Levels of Management, and.
    • Also, Objectives of Management.
    Management_ Features Functions Importance Levels and Objectives - ilearnlot
    Management Features, Functions, Importance, Levels, and Objectives!

    Now Explain Each one of the Upper Contents:

    #Features of Management!

    Management is an activity concerned with guiding human and also physical resources such that organizational goals can be achieved. Nature and features of management can exist highlighted as: –

    Management is Goal-Oriented: 

    The success of any management activity is assessed by its achievement of predetermined goals or objectives. Management is a purposeful activity. It is a tool that helps users of human & physical resources to fulfill pre-determined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods at reasonable prices. This can be achieved by employing efficient persons and also making better use of scarce resources.

    Management integrates Human, Physical, and Financial Resources: 

    In an organization, human beings work with non-human resources like machines. Also, Materials, financial assets, buildings, etc. Management integrates human efforts into those resources. It brings harmony to human, physical and financial resources.

    Management is Continuous: 

    Management is an ongoing process. Also, It involves the continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. E.g. the target of a company is maximum production. For achieving this target various policies have to frame but this is not the end. Marketing and Advertising are also to exist done. For this policies have to exist again framed. Hence this is an ongoing process.

    Management is all-pervasive: 

    Management exists required in all types of organizations whether it is political, social, cultural, or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. Whenever more than one person exists engaged in working for a common goal, management is necessary. Whether it is a small business firm that may engage in trading or a large firm like Tata Iron & Steel, management exists required everywhere irrespective of size or type of activity.

    Management is a Group Activity: 

    Management is very much less concerned with individual efforts. Also, It is more concerned with groups. It involves the use of group effort to achieve the predetermined goal of management of ABC & Co. is good refers to a group of persons managing the enterprise.

    #Functions of Management!

    Above you may understand the features of management; Now, Management has stood described as a social process involving responsibility for economical and effective planning & regulation of the operation of an enterprise in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, finance, purchase, etc. Rather these activities are common to every manager irrespective of his level or status.

    Different experts have classified functions of management. According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”.

    According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and O’DONNELL i.e. Planning, Organizing, Staffing, Directing, and Controlling.

    For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.

    five basic functions;

    According to Fayol, management operates through five basic functions: planning, organizing, coordinating, commanding, and controlling.

    • Planning: Deciding what needs to happen in the future and generating plans for action (deciding in advance).
    • Organizing (or staffing): Making sure the human and non-human resources are put into place.
    • Coordinating: Creating a structure through which an organization’s goals can be accomplished.
    • Commanding (or leading): Determining what must be done in a situation and also getting people to do it.
    • Controlling: Checking progress against plans.

    Management refers to the activities, and often the group of people, involved in the four general functions:

    1. Planning.
    2. Organizing.
    3. Staffing.
    4. Directing, and.
    5. Also, Controlling.

    Now Explain it to them:

    #Planning:

    It is the ongoing process of developing the business’s mission and also objectives and determining how they will exist accomplished. Planning includes both the broadcast view of the organization, e.g. its mission and the narrowest, e.g. a tactic for accomplishing a specific goal.

    #Organizing:

    Organizing is an essential function of management. Also, It is the process of accumulating resources from different sources to work according to the plans laid out by the management.

    #Staffing:

    It functions in which qualified people exist appointed to different posts relating to their skills and strengths. The activities included in this function are recruiting, hiring, training, evaluating, and compensating.

    #Directing:

    Directing is a function that comes after staffing of the organization, it is the function in which the management exists supposed to lead, direct to a specific goal and also motivate the employees for the achievement of any objective, big or small.

    #Controlling:

    It is a function in which the performance of the organization exists measured and then evaluated after which the standard observed exists determined to be either good or bad, which, in turn, leads to taking preventive and corrective measures.

    #Importance of Management!

    It helps in Achieving Group Goals: 

    You have to study and understand the above functions and features of management; It arranges the factors of production, assembles and also organizes the resources, effectively integrates the resources to achieve goals. Also, It directs group efforts towards the achievement of pre-determined goals. By defining the objective of the organization clearly, there would be no wastage of time, money, and effort. Management converts disorganized resources of men, machines, money, etc. into a useful enterprise. These resources exist coordinated, directed, and controlled in such a manner that enterprises work towards the attainment of goals.

    Optimum Utilization of Resources: 

    Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services lead to the use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing their maximum there is no under the employment of any resources.

    Reduces Costs: 

    It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Also, Management uses physical, human, and financial resources in such a manner that results in the best combination. This helps in cost reduction.

    Establishes Sound Organization: 

    No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objectives of management that is in tune with an objective of the organization and for the fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Also, Management fills up various positions with the right persons, having the right skills, training, and qualification. All jobs should be cleared for everyone.

    Establishes Equilibrium: 

    It enables the organization to survive in changing an environment. It keeps in touch with the changing environment. With the change in an external environment, the initial coordination of the organization must be changed. So it adapts organizations to changing demand for market / changing needs of societies. Also, It is responsible for the growth and survival of an organization.

    Essentials for Prosperity of Society: 

    Efficient management leads to better economic production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding the wastage of scarce resources. Also, It improves the standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities that generate income in hands. Organization comes with new products and likewise research beneficial for society.

    #Levels of Management!

    Levels of Management is a kind of demarcation between different managerial positions in an organization. The number of levels in management depends on the size of the business and workforce and increases when there’s an increase in both these determinants.

    The levels of management can be classified into three broad categories:

    • Top level / Administrative level.
    • Middle level, and.
    • Also, Low level/ First-line managers.

    Managers at the various levels enjoy various roles and responsibilities that are discussed below:

    1. Top Level of Management:

    The top management, which includes the board of directors, managing director, or chief executive, is the ultimate source of authority. It is responsible for managing the overall goals and policies for an organization and devotes its time to planning and synchronizing functions.

    The main functions of the top management are:

    • Issues important instructions to carry out various procedures.
    • Lays down the enterprise’s objectives and also policies.
    • Prepares strategic plans for the enterprise.
    • Also, Appoints the subordinates for middle level.
    • Coordinates and controls the activities of all the departments.
    • Maintains contact with the external world.
    • Guides and directs people at other levels.

    2. Middle Level of Management:

    Middle Level comprises the branch managers and departmental managers, who are responsible for the functioning of their department. They devote more time to organizational and also directional functions.

    Their functions can be emphasized as:

    • Implement the plans of the enterprise in accordance with the directives and policies of the top management.
    • Make plans for the sub-units of the enterprise.
    • Participate in employing & training the lower level management.
    • Interpret policies from top-level management to the lower level.
    • Also, Coordinates the activities within the division or department.
    • Delivers important reports and other crucial data to the top level management.
    • Evaluate performance of subordinate managers.
    • Inspires lower level managers towards better performance.

    3. Lower Level of Management:

    Also known as the supervisory or operative level of management, the lower level management comprises supervisors, section officers, foremen, superintendent, etc. Also, They are responsible for directing and controlling functions of management.

    Their functions and roles include:

    • Assigning tasks to various employees.
    • Guiding and instructing workforce for day to day activities.
    • Responsible for the quality and quantity of production.
    • Responsible for maintaining good relation in the company.
    • Interacts with the workforce directly and listen to their problems, offers them the valuable suggestion. Also, recommends their appeals to the higher level, if needed.
    • Provides training to the peers.
    • Prepare periodical reports about the workers’ performance.
    • Ensure discipline in the enterprise and motivates the workers.
    • Also, proper coordination between the people at various managerial levels is a must for any enterprise to run well and prosper.

    #Objectives of Management!

    The main objectives of management are:

    Getting Maximum Results with Minimum Efforts: 

    The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is concerned with thinking & utilizing human, material & financial resources in such a manner that would result in the best combination. Also, This combination results in the reduction of various costs.

    Increasing the Efficiency of factors of Production: 

    Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages, and breakage of all kinds, this, in turn, leads to saving of time, effort, and money which is essential for the growth & prosperity of the enterprise.

    Maximum Prosperity for Employer & Employees: 

    Management ensures the smooth and coordinated functioning of the enterprise. This, in turn, helps in providing maximum benefits to the employee in the shape of the good working condition, a suitable wage system, incentive plans on the one hand, and higher profits to the employer on the other hand.

    Human betterment & Social Justice: 

    Management serves as a tool for the upliftment as well as the betterment of society. Through increased productivity & employment, management ensures better standards of living for society. Also, It provides justice through its uniform policies.

  • Management as, What? As an Activity…as a Profession!

    Learn and Study, Management as, What? As an Activity…as a Profession!

    Before You Start Studying, let’s want to know, what you going to learn it. Management can be defined in detail in following categories: Management as an Art, as a Science, as a Process, as an Activity, as a Discipline, as a Group, and as a Profession. Is Management an as Profession? Also learned, the Subsidiary Functions of Management!  Continuously Studying – After, Management as, What? As an Art…As a Process! Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

    First, define, Management is a universal phenomenon. It is a very popular and widely used term. All organizations – business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards the attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do when to do and see that it is done in the best and cheapest way”.

    Management is a purposive activity. It is something that directs group efforts towards the attainment of certain predetermined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching new products by conducting market surveys and for other, it may be profit maximization by minimizing cost.

    Management involves creating an internal environment: – It is the management which puts to use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc.

    Management can be defined in detail in following categories :

    • Management as an Art!
    • Management as a Science!
    • Management as a Process!
    • Management as an Activity!
    • Management as a Discipline!
    • Management as a Group, and!
    • Management as a Profession!

    Now Explain it:

    Continuously Studying – After, Management as, What? As an Art…As a Process! Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

    #Management as an Activity!

    Like various other activities performed by human beings such as writing, playing, eating, cooking etc, management is also an activity because a manager is one who accomplishes the objectives by directing the efforts of others. According to Koontz, “Management is what a manager does”.

    Management as an activity includes:

    Informational activities: In the functioning of the business enterprise, the manager constantly has to receive and give information orally or in writing. A communication link has to be maintained with subordinates as well as superiors for the effective functioning of an enterprise.

    Decisional activities: Practically all types of managerial activities are based on one or the other types of decisions. Therefore, managers are continuously involved in decisions of different kinds since the decision made by one manager becomes the basis of action to be taken by other managers. (E.g. Sales Manager is deciding the media & content of advertising).

    Inter-personal activities: Management involves achieving goals through people. Therefore, managers have to interact with superiors as well as the subordinates. They must maintain good relations with them. The inter-personal activities include the subordinates and taking care of the problem.

    #Management as a Discipline!

    Management as a discipline refers to that branch of knowledge which is connected to study of principles & practices of basic administration. It specifies the certain code of conduct to be followed by the manager & also various methods for managing resources efficiently.

    Management as a discipline specifies the certain code of conduct for managers & indicates various methods of managing an enterprise. Management is a course of study which is now formally being taught in the institutes and universities after completing a prescribed course or by obtaining degree or diploma in management, a person can get employment as a manager.

    Any branch of knowledge that fulfills following two requirements is known as the discipline:

    • There must be scholars & thinkers who communicate relevant knowledge through research and publications.
    • The knowledge should be formally imparted by education and training programmes.

    Since management satisfies both these problems, therefore it qualifies to be a discipline. Though it is comparatively a new discipline it is growing at a faster pace.

    #Management as a Group!

    Management as a group refers to all those persons who perform the task of managing an enterprise. When we say that management of ABC & Co. is good, we are referring to a group of people those who are managing. Thus as a group technically speaking, management will include all managers from chief executive to the first – line managers (lower-level managers). But in common practice management includes only top management i.e. Chief Executive, Chairman, General Manager, Board of Directors etc. In other words, those who are concerned with making important decisions, these persons enjoy the authorities to use resources to accomplish organizational objectives & also the responsibility to for their efficient utilization.

    Management as a group may be looked upon in two different ways:

    1. All managers have taken together.
    2. Only the top management

    The interpretation depends upon the context in which these terms are used. Broadly speaking, there are three types of managers:

    • Patrimonial / Family Manager: Those who have become managers by virtue of their being owners or relatives of the owners of the company.
    • Professional Managers: Those who have been appointed on account of their specialized knowledge and degree.
    • Political Managers / Civil Servants: Those who manage public sector undertakings.

    Managers have become a part of elite group of society as they enjoy the higher standard of living in the society.

    #Management as a Profession!

    Over a large few decades, factors such as growing size of the business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally qualified managers. The task of manager has been quite specialized. As a result of these developments, the management has reached a stage where everything is to be managed professionally.

    A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body.

    The essentials of a profession are:

    1. Specialized Knowledge – A profession must have a systematic body of knowledge that can be used for development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly, a manager must have devotion and involvement to acquire expertise in the science of management.
    2. Formal Education & Training – There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.
    3. Social Obligations – Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Similarly, a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society.
    4. Code of Conduct: Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure itself-discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.
    5. Representative Association: For the regulation of the profession, the existence of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA, however, does not have any statuary powers to regulate the activities of managers.

    From above discussion, it is quite clear that management fulfills several essentials of a profession, even then it is not a full-fledged profession because: –

    • It does not restrict the entry in managerial jobs for the account of one standard or other.
    • No minimum qualifications have been prescribed for managers.
    • No management association has the authority to grant a certificate of practice to various managers.
    • All managers are supposed to abide by the code formulated by AIMA,
    • Competent education and training facilities do not exist.
    • Managers are responsible for many groups such as shareholders, employees, and society. A regulatory code may curtail their freedom.
    • Managers are known for their performance and not mere degrees.
    • The ultimate goal of business is to maximize profit and not social welfare. That is why Haymes has rightly remarked, “The slogan for management is becoming – ’He who serves best, also profits most’.”

    Is Management an as Profession?

    The corporate form of organization with separation of ownership from management, growing complexities in managing the activities of the organization, and development of an organized body of systematic knowledge of management are essential factors responsible for raising management to the status of a distinct profession.

    A field is normally characterized as a profession when it exhibits the following special features:

    • The systematic body of knowledge.
    • Need for learning and proper organization.
    • Entry restricted on the basis of examination or education, and.
    • The dominance of service motive over the profit motive.

    Except for restricted entry, management qualifies all the other tests of a profession. It is now backed by a systematic body of knowledge. A number of management principles have been developed, which need proper learning and education. Besides, in a number of countries, management institutes, associations, and universities are now imparting knowledge related to management.

    Moreover, the present-day social and moral climate has created new challenges for management. The present-day management must be creative rather than adaptive and must be conscious of their ethical and social responsibilities to the society. Another important development in the field of management has been the rapid increase in the number of professional management consultants, whose quality is also improving by the day. But management fails to qualify the test of professionalism relating to restricted entry.

    Though there is a growing awareness in the society to prefer properly educated and trained people for managing business enterprises, yet self-made managers cannot altogether be eliminated. Thus, management may not be a profession strictly similar to the legal or medical professions, yet professional overtones are very much present in management.

  • Management as, What? As an Art…As a Process!

    Learn and Study, Management as, What? As an Art…As a Process!

    Before You Start Studying, let’s want to know, what you going to learn it. Management can be defined in detail in following categories: Management as an Art, as a Science, as a Process, as an Activity, as a Discipline, as a Group, and as a Profession. Is Management an as Profession? Also learned, the Subsidiary Functions of Management! Management as, What? As an Art…As a Process! Continuously Studying – Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

    First, define, Management is a universal phenomenon. It is a very popular and widely used term. All organizations – business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards the attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do when to do and see that it is done in the best and cheapest way”.

    Management is a purposive activity. It is something that directs group efforts towards the attainment of certain predetermined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching new products by conducting market surveys and for other, it may be profit maximization by minimizing cost.

    Management involves creating an internal environment: – It is the management which puts to use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc.

    Management can be defined in detail in following categories :

    • Management as an Art!
    • Management as a Science!
    • Management as a Process!
    • Management as an Activity!
    • Management as a Discipline!
    • Management as a Group, and!
    • Management as a Profession!

    Now Explain it:

    #Management as an Art!

    Art implies the application of knowledge & skill to trying about desired results. An art may be defined as the personalized application of general theoretical principles for achieving best possible results. Art has the following characters –

    • Practical Knowledge: Every art requires practical knowledge, therefore, learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person may not only be knowing different color and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations by functioning in the capacity of manager.
    • Personal Skill: Although theoretical base may be same for every artist, each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly, management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience, and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
    • Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires the combination of intelligence & imagination. Management is also creative in nature like any other art. It combines human and non-human resources in a useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner.
    • Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly, managers learn through an art of trial and error initially but an application of management principles over the years makes them perfect for the job of managing.
    • Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards the accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to promote the growth of an organization.

    Thus, we can say that management is an art, therefore, it requires an application of certain principles rather it is an art of highest order because it deals with molding the attitude and behavior of people at work towards desired goals.

    #Management as a Science!

    Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explain a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through the scientific method of observation and verification through testing.

    Science is characterized by following main features:

    Universally acceptance principles:

    Scientific principles represent the basic truth about a particular field of inquiry. These principles may be applied in all situations, at all time & at all places. E.g. – law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization – business or non-business.

    Experimentation & Observation:

    Scientific principles are derived from scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes around the sun has been scientifically proved.

    Management principles are also based on scientific inquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied workforce.

    Cause & Effect Relationship:

    Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion.

    The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. ineffectiveness. Similarly, if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces the productivity of the organization.

    Test of Validity & Predictability:

    The validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give the same result. Moreover, future events can be predicted with reasonable accuracy by using scientific principles. E.g. H2 & O2 will always give H2O.

    Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons – one having the single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

    It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavioral science. Ernest Dale has called it a Soft Science.

    #Management as both Science and Art!

    Management is both an art and a science. The above-mentioned points clearly reveal that management combines features of both sciences as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills. A manager to be successful in his profession must acquire the knowledge of science & the art of applying it.

    Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for the manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.). The old saying that “Manager is Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.

    #Management as a Process!

    As a process, management refers to a series of inter-related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and co-operated human efforts, according to George R. Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources”.

    As a process, management consists of three aspects:

    Management is a social process: Since human factor is most important among the other factors, therefore management is concerned with developing the relationship among people. It is the duty of management to make the interaction between people – productive and useful for obtaining organizational goals.

    Management is an integrating process: Management undertakes the job of bringing together human physical and financial resources so as to achieve an organizational purpose. Therefore, is an important function to bring harmony between various factors.

    Management is a continuous process: It is a never-ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

    Continuously Studying – Management as, What? Now, Learning next part of Management as, What? As an Activity…as a Profession!

  • Discuss the Subsidiary Functions of Management!

    Discussing the Subsidiary Functions are follow – Decision making, Innovation, Representation, Reporting, Budgeting, and Forecasting. After that discussing the Functions of a Finance Manager. The functions are – 1) Financial Forecasting and Planning, 2) Acquisition of Funds, 3) Investment of Funds, 4) Helping in Valuating Decisions, and 5) Maintain Proper Liquidity. Also learned, The Features of Directing Function of Management! Discuss the Subsidiary Functions of Management!

    Learn and Study, Discuss the Subsidiary Functions of Management!

    Besides the primary functions of management, below are some of the important subsidiary functions:

    #Decision making:

    Joseph L. Massie regards decision-making as the first important separate function of management. An important job of a manager is decision-making. Every day he has to decide about doing or not doing specific work. Decision-making is the process of choosing the best from among alternatives courses- of action, evaluation of alternatives and choosing the best. However, it may be. Appropriate to cover the function of decision-making under the planning function of management.

    #Innovation:

    Ernest Dale has given innovation as a separate function of- management. According to him, management involves the introduction of new systems, procedures, methods, techniques, products, and services. However, it is not right to regard innovation as a separate function of management. Because innovation is very much a part of planning function.

    #Representation:

    Ernest Dale has regarded representation also as a separate function of management. According to him, a manager has to represent his organization to outsiders, financial institutions, government, and others. He has to keep good relations with these agencies with a view to attaining the enterprise objectives. However, this function falls under organizing and directing functions of management.

    #Reporting:

    Luther Gulick has suggested reporting as a separate function of management. The process of giving information to the management/shareholders is considered as reporting. The reports are regularly sent to various levels of management for judging the effectiveness of different responsibility centers. These reports also become a base for taking corrective actions, if necessary. However, it may not be appropriate to consider reporting as a separate function. Because it is very much a part of controlling function of management.

    #Budgeting:

    Luther Gulick has also given budgeting as a separate function of management. A budget is a future plan represented in a numerical form. Budgeting is preparing various budgeted figures for the enterprise for the future period. Then comparing the actual results with the budgeted and taking corrective action in the future so as to achieve the optimum results. Nowadays, budgeting has become a very important function of management but it is only a technique of planning and controlling.

    #Forecasting:

    Lyndall Urwick regards forecasting as a separate function of management. According to him, forecasting is involved to some extent in every business decision. The management has to forecast while preparing plans for the future. According to Henry Fayol, the entire plan is made of a series of separate plans called forecasts. Forecasting provides a logical basis for preparing the plans. However, it will be proper to cover forecasting under the planning function of management.

    #The Functions of a Finance Manager:

    Now Explain it:

    #Financial Forecasting and Planning:

    A financial manager has to estimate the financial needs of a business. How much money will be required for acquiring various assets? The amount will be needed for purchasing fixed assets and meeting working capital needs. He has to plan the funds needed in the future. How these funds will be acquired and applied is an important function of a finance manager.

    #Acquisition of Funds:

    After making financial planning, the next step will be to acquire funds. There are a number of sources available for supplying funds. These sources may be shares, debentures, financial institutions, commercial banks, etc. The selection of an appropriate source is a delicate task. The choice of a wrong source for funds may create difficulties at a later stage. The pros and cons of various sources should be analyzed before making a final decision.

    #Investment of Funds:

    The funds should be used in the best possible way. The cost of acquiring them and the returns should be compared. The channels which generate higher returns should be preferred. The technique of capital budgeting may be helpful in selecting a project. The objective of maximizing profits will be achieved only when funds are efficiently used and they do not remain idle at any time. A financial manager has to keep in mind the principles of safety, liquidity, and soundness while investing funds.

    #Helping in Valuating Decisions:

    A number of mergers and consolidations take place in the present competitive industrial world. A finance manager is supposed to assist management in making valuation etc. For this purpose, he should understand various methods of valuing shares and other assets so that correct values are arrived at.

    #Maintain Proper Liquidity:

    Every concern is required to maintain some liquidity for meeting day-to-day needs. Cash is the best source for maintaining liquidity. It is required to purchase raw materials, pay workers, meet other expenses, etc. A finance manager is required to determine the need for liquid assets and then arrange liquid assets in such a way that there is no scarcity of funds.

  • Discuss the Compare of Coordination and Cooperation

    Discuss the Compare of Coordination and Cooperation

    Before Discuss the Compare of Co-Ordination and Co-Operation, first looking at their definition of Coordination and Cooperation. Coordination refers to the organization of all the activities in an orderly manner, to achieve unanimity of individual efforts in the pursuit of group goals. On the flip side, cooperation is a discretionary action of individuals to work together or help one another, for a mutual benefit. It is a joint effort of the members working in the organization for accomplishing a defined target. Also Learned, Essay on the Co-ordination of an Organization, Discuss the Compare of Coordination and Cooperation.

    Here are Learn, Discuss the Compare of Coordination and Cooperation.

    Definition of Coordination:

    By coordination, we mean a cycle, utilized by the administration to synchronize different exercises in the association. The power connects the wide range of various capacities performed by the administration, for example arranging, coordinating, putting together, controlling, staffing, driving, and so forth association, to make the most ideal utilization of the association’s assets.

    Coordination assumes a critical function in keeping up routineness in tasks, for example, buy, creation, deals, human asset, showcasing, account, and so forward, as it is the consistent idea that associates all the exercises. It is something, which is natural in all administrative capacities. The cycle focuses on the efficient administration of individual or collective endeavors to guarantee unanimity in real life, in the achievement of normal destinations.

    Definition of Cooperation:

    We characterize cooperation as an optional action in which at least two people consolidate and work in the quest for shared objectives. In this cycle, the individuals from the association put forth joined attempts, for inferring common advantages. Along these lines, each member is required to effectively partake in the gathering movement, really at that time they can be in an ideal situation.

    Cooperation is available in all the degrees of the association and happens between the individuals from the association. Aside from business, cooperation likewise happens at the public and worldwide level, for example between various states and nations of the world.

    Through cooperation, the data can share among members effectively, which builds the information base, work performed, and assets, in a skilled way.

    Differences between Coordination and Cooperation:

    Basis Coordination Cooperation
    Meaning It is an orderly arrangement of group efforts in pursuit of common goals. It means mutual help willingly.
    Scope It is broader than co-operation which includes as well because it harmonizes the group efforts. It is termed as a part of coordination.
    Process The function of coordination is performed by top management. The functions of co-operation are prepared by persons at any level.
    Requirements Co-ordination is required by employees and departments at work irrespective of their work. Co-operation is emotional in nature because it depends on the willingness of people to work together.
    Relationship It establishes formal and informal relationships. It establishes an informal relationship.
    Freedom It is planned and entrusted by the central authority & it is essential. It depends upon the sweet will of the individuals and therefore it is not necessary.
    Support It seeks wholehearted support from various people working at various levels. Co-operation without co-ordination is fruitless & therefore it may lead to unbalanced developments.

    Therefore, the existence of co-operation may prove to be an effective condition or requisite for co-ordination. But it does not mean that co-ordination originates automatically from the voluntary efforts of the group of members. It has to be achieved through conscious & deliberate efforts of managers, therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination without co-operation has no root.

    Discuss the Compare of Coordination and Cooperation Image
    Discuss the Compare of Coordination and Cooperation; Image from Pixabay.

    The Main Key Differences Between Coordination and Cooperation:

    The following points are noteworthy so far as the difference between coordination and cooperation is concerned:

    • The methodical game plan and synchronization of various components of the executives to guarantee, smooth working, know as coordination. The demonstration of working together or following standards, for the acknowledgment of shared objectives, calls cooperation.
    • Coordination is a basic action of the board; that helps in accomplishing agreement in real life among different related exercises and branches of the association. Actually, cooperation relies upon the desire of any individual, for example, to work with or help somebody willfully, for achieving regular destinations.
    • Coordination of a devise cycle performed to incorporate various exercises of the association. Then again, cooperation is a characteristic cycle, which isn’t arranged however happens precipitously, out of shared regard.
    • Coordination is a persistent capacity of the board. Thus, it is as long as possible. As against this, the cooperation of people is needed for achieving an errand or movement, consequently, it is for the momentary as it were.
    • Coordination may bring about the foundation of formal and casual connections. Dissimilar to, cooperation offers to ascend to the casual connection between people.
    • In coordination, there is open correspondence between all the individuals from the association. As restricted, implicit correspondence happens between people in cooperation.
    • Coordination of exercises performs at high-level administration, though cooperation performs at each level.

    Relationship Between Coordination and Cooperation:

    Co-ordination is a systematic plan of collective endeavors to give solidarity of activity in the quest for common destinations. It implies uniting the endeavors of various components of the association to give them the solidarity of direction. While cooperation indicates the collective endeavors of individuals working in the association intentionally to accomplish a specific reason.

    The presence of co-operation among the individuals from a gathering encourages co-ordina­tion. In any case, coordination doesn’t start from the deliberate endeavors of the gathering individuals. It must accomplish by the conscious endeavors of the administration.

    For example, five people occupied with pushing a taxi out of the mud have a solid demeanor of co-operation. Be that as it may, they may not be effective except if one of them gives leader­ship and coordinates the exercises of all. Similarly, the ensemble conductor coordinates the endeavors of the individuals from his gathering to delivering fine music.

    So, co-operation without co-ordination has no organic product, and coordination without co-operation has no root. Co-operation and co-ordination go hand in hand and one is the venturing stone of the other. A decent chief attempts to accomplish both because just through cooperation and coordination he can complete things through others.

  • Explain essay on the Co-Ordination of an Organization!

    Learn, Explain essay on the Co-Ordination of an Organization!

    Before start studying, you must know what common question types asked around the place. Essay for Articles: What is the Essay on the Meaning of Co-Ordination? What is the Essay on the definition of Co-Ordination? What is the Essay on the Need for Co-Ordination? What is the Essay on the Techniques of Co-Ordination? What is the Essay on the Nature of Co-Ordination? and What is the Essay on the Importance of Co-Ordination? Also Learned, Explain essay on the Direction of an Organization! That is similar to Explain essay on the Co-Ordination of an Organization!

    Now Explain it:

    #The Essay on the Meaning of Co-Ordination:

    Co-ordination is the process of synchronization and harmonization of the different activities within the enterprise with reference to time, the progress of work, performance standards, etc. If the objectives of the business are to be realized with a minimum of friction and a maximum of cooperation, a system of coordination through the establishment of the formal relationship among different individuals and departments has to be instituted.

    #The Essay on the Definition of Co-Ordination:

    Henri Fayol, Louis A. Allen, and Ordway Tead considered coordination as a separate managerial function. James D. Mooney considered coordination as the first principle of organization. According to Mooney and Railey, “Co-ordination is the achievement of orderly group effort and unity of action in the pursuit of a common purpose.”

    It is that process whereby an executive develops an orderly pattern of the group effort among his subordinates and secures unity of action in the pursuit of common purpose. “It is the orderly synchronization of efforts to provide the proper amount, timing and quality of execution resulting in harmonious and unified actions towards a stated objective.”

    George R. Terry and Theo Haimann regard coordination as a permeating function of management passing through the managerial functions of planning, organizing, staffing, directing and controlling.

    #The Essay on the Need for Co-Ordination:

    It is a pervasive function. The managers seek to achieve co-ordination through planning, organizing, staffing, commanding and controlling. Performance of any of these functions is an exercise towards coordination. When all these functions are related to each other harmoniously into a unified whole, co-ordination is achieved.

    In fact, managers at all levels, preside over the “nerve centers” of co-ordination in respect of their own spans of control. This means that coordination is the function of all levels of management and not merely of the top management.

    #The Essay on the Techniques of Co-Ordination (How to Achieve Co-Ordination?):

    #Clearly Defined Goals:

    The goals of the enterprise should be laid down clearly. Every individual in the enterprise should understand the overall objectives and the contribution of his job to these objectives.

    #Precise and Comprehensive Programmes and Policies:

    Laying down well-defined programmes and policies is another measure for achieving effective coordination. This brings uniformity of action because everybody understands the programmes and policies which act as guides for taking decisions.

    #Clear Lines of Authority and Responsibility:

    An enterprise is composed of several vertical and horizontal authority relationships. Authority flows from the top through various positions down to the level of operative workers. There is a line of authority in every enterprise which indicates that who is accountable to whom. This line of authority and responsibility should be clearly defined to achieve co­ordination.

    #Effective Communication:

    Effective communication is key to proper coordination. The channel of communication used in the enterprise should be reliable so that they are able to create proper understanding in the mind of the receiver. As advised by Mary Follett, personal contacts should be encouraged as it is the most effective means of communications for achieving coordination.

    #Effective Leadership and Supervision:

    Management can achieve better coordination through effective leadership and supervision. Effective leadership ensures coordination both at the planning and the implementing stage. Effective supervision is also necessary to guide the activities of individuals in the proper direction. This will bring unity of action which is essential to coordination.

    #The Essay on the Nature of Co-Ordination:

    Co-ordination means an orderly synchronization of efforts of the people working in the organization for the achievement of organizational objectives. It is a continuous process of achieving unity of purpose in the organization.

    It includes all such deliberate efforts on the part of management whereby efforts of various parts of the enterprise are so blended that they move harmoniously towards the accomplishment of an organizational objective.

    Where a number of persons are working for the achievement of a common purpose, coordination is essential to achieve the purpose and synchronize their efforts. Co-ordination is an all-inclusive principle of organization. It is also the all-inclusive function of management and not just one of its functions.

    Management seeks to achieve co-ordination by performing various functions like planning, organizing, directing and controlling. When all these functions are related to each other harmoniously, co-ordination is achieved. As a matter of fact, coordination is the essence of managing.

    #The Essay on the Importance of Co-Ordination:

    In order to achieve coordination among the subordinates and sub-units, the management performs the functions of planning, organizing, staffing, directing and controlling. Coordination is required in every function of management. Plans of different departments and divisions must be properly coordinated, otherwise, the objectives of the organization as a whole cannot be accomplished,

    Co-ordination is equally important in organizing. All activities required to achieve the desired objectives must be properly grouped and assigned to the right people. In staffing, a balance must be attained between job requirements and the qualities of the personnel who are placed on different jobs.

    The direct function of management is an attempt at achieving coordination. Supervision, motivation, leadership, and communication are designed to secure unity of action in a group. Co-ordination is also involved in controlling. Corrective measures must be synchronized with the cause and time of deviations from the desired performance.

    Thus, coordination is the silken thread running through the entire process of management. That is why it is called the essence of management.

    Co-ordination results in the creation of a true whole that is larger than the sum total of its parts. The analogy of the conductor of a symphony orchestra is appropriate here. The conductor by his coordinating skills of vision, leadership and simultaneous attention to the totality of the orchestra group and its individual instrument players, creates a living musical performance and not mere noise.

    In any case, management has no alternative but to perform mediating, moderating and motivating roles in securing coordinated action. Mediation with the external environment, moderation while controlling internal environment and motivation of individual organizational members are integral coordinating functions of management.

  • Explain essay on the Direction of an Organization!

    Learn, Explain essay on the Direction of an Organization!

    Before start studying, you must know what common question types asked around the place. Essay for Articles: What is the Essay on the Meaning of Direction? What is the Essay on the definition of Direction? What is the Essay on the Elements of Direction? What is the Essay on the Importance of Direction? What is the Essay on Written VS Oral Directives? What is the Essay on the Techniques of Direction? and What is the Essay on the Principles of Direction? Also learned, The Importance of Directing in an Organization! Explain essay on the Direction of an Organization!

    Now Explain it:

    #The Essay on Meaning of Direction:

    Direction involves communication and providing leadership to the subordinates and motivating them to contribute to the best of their capability for the achievement of organizational objectives. It is concerned with influencing the behavior of human resources for the accomplishment of organizational objectives.

    Directing concerns the total manner in which a manager influences the actions of his subordinates. It is the final act of a manager getting others to act after all preparations have been completed. It starts with issuing orders and instructions to the subordinates and ends with getting the work done. Related question – Explain Principles for Achieving Effective Direction in Management!

    #The Essay on the Definition of Direction:

    In the words of Ernest Dale, “Direction is telling people what to do and seeing that they do it to the best of their ability. It includes making assignments. Corresponding procedures, seeing that mistakes are corrected, providing on-the-job instructions and, of course, issuing orders.”

    According to Theo Haimann, “Directing consists of the processes and techniques utilized in issuing instructions and making certain that operations are carried out as originally planned.”

    According to Koontz and O’Donnell, “Directing is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise objectives.”

    #The Essay on Elements of Direction:

    These are four elements of direction discussed below:

    #Supervision:

    It is the process by which conformity between planned and actual results is maintained. Effective supervision ensures greater output of high quality. It reaches the subordinates the way their tasks are to be performed.

    #Leadership:

    It is the process by which a manager guides and influences the work of others in choosing and attaining specified goals. According to Chester Barnard, “Leadership is the quality of the behavior of the individuals whereby they guide people and their activities in the organized effort.”

    #Communication:

    A manager has to tell the workers what they are required to do how to do and when to do it. He has to create an understanding in the minds of the subordinates of the work to be done. This is done by the process of communication.

    #Motivation:

    Motivation is the function of a manager to motivate the people working under him to perform the work assigned. A successful manager has made proper use of motivation to enthuse the people to work harmoniously for the attainment of desired objectives.

    #The Essay on Importance of Direction:

    These are some of the importance of direction discussed below:

    The direction is the function of management which follows planning, organizing, and staffing. Once objectives have been formulated and plans have been drawn, it is necessary to implement the plans. This can be accomplished by directing the people and their activities.

    It is through directing that managers get the work done through people. The direction is the process of guiding, supervising, leading and motivating the subordinates to work in a way that is beneficial to the enterprise. The manager not only shows the right path but also leads the subordinates to achieve the objectives of the enterprise. He creates a sense of belongingness, faith, and loyalty among the subordinates.

    The importance of direction in an organization can be viewed by the fact that every action is initiated through direction. Since, human, beings in the organization handle the physical resources that are men, money, material, machinery, etc. to accomplish certain functions by which organizational objectives are to be achieved. This necessitates the importance of the direction function as an important factor for achieving organizational efficiency and effectiveness.

    In this context, the importance of direction is discussed as follows.

    #Direction Initiates Action:

    Through direction, management conveys and motivates individuals in the organization to function in the desired way in order to achieve organizational objectives. Without direction, other managerial activities like planning, organizing, and staffing become ineffective.

    #Direction Integrates Group Efforts:

    Management uses various techniques of direction to integrate the efforts of different individuals in the organization. Since their actions are inter-related in such a way that each individual’s performance affects the performance of others in the organization. Direction integrates the activities of the employees by supervision, guidance, and counseling.

    #Direction Facilitates Changes:

    As we all know, organizations exist as a part of the ever-changing environment, the dynamic nature of environment often require changes in the business enterprise. Direction helps the management to incorporate and implement these changes through better communication and leadership.

    #Direction Improves Efficiency through Motivation:

    Direction deals with an essential and sensitive factor of production that is the human factor. Every individual in the organization has a potential which can be utilized optimally only through motivation, leadership and effective communication which are essential elements of direction.

    #Direction Provides Stability and Balance in the Organization:

    Effective leadership, communication, and motivation provide stability and maintain balance in individual and organizational interest. The organization with the help of direction expands and grows in the right direction in order to achieve a stable existence.

    “Direction Helps Initiating Action and Integration”:

    The human resources available to management in an organization must be properly activated. It is through the combined efforts of people that various resources are utilized for the achievement of organizational objectives. Therefore, the direction of human efforts is a central responsibility of management everywhere.

    The effectiveness with which human resources are led, motivated and utilized determines the success in achieving organizational objectives. The need for direction arises to deal effectively and efficiently with the human factor for the accomplishment of goals of the enterprise.

    People working in the enterprise have to be told what they should do and they have also to be guided and induced to accomplish this. Moreover, individuals have their own goals which they expect to fulfill through the enterprise. These goals may be entirely different from those of the enterprise.

    The effective direction is a must to achieve congruency in the goals of the enterprise and those of the individuals. It will lead to replacing the existing behavior patterns of the individuals by those which are in conformity with the requirements of the organization.

    #The Essay on Written VS Oral Directives:

    The directives may be either written or oral.

    Some of the advantages of written directives are as follows:

    • Written orders are comparatively more intelligible and the chances for misunderstanding and duplication of effort will be minimized.
    • Written orders lead to clarity of thought and the quality of directive is, thus improved considerably.
    • A written order can be consulted readily to maintain accuracy.
    • The subordinate also gets an ample opportunity to study directive carefully.
    • The written order also makes it possible to communicate it to all interested parties simultaneously.
    • In case of written orders, every member of the organization is certain of his job. This improves the accountability aspect of management.

    In spite of numerous advantages, written directives suffer from the following disadvantages:

    • Written instructions are expensive and more time-consuming.
    • Written instructions might lead to an undesirable degree of inflexibility. Revision of written instructions is difficult. But it is not so difficult to revise an oral order.

    According to Theo Haimann, “Oral orders are almost invariably used when the action required is relatively simple in character. Also in times of emergency oral orders are almost always used. In order to strike a happy medium between the advantages and disadvantages of a written instruction, it is often expedient to put merely the important points of the instruction in writing and to give additional information orally.”

    #The Essay on Techniques of Direction:

    The main techniques of direction are given below:

    • Consultative Direction.
    • Free Rein Direction, and.
    • Autocratic Direction.

    Now Explain it:

    #Consultative Direction:

    Under this technique of direction, the executive consults with his subordinate concerning the feasibility, the workability, and the extent and the content of a problem before the superior makes a decision and issues a directive. It does not weaken the manager’s formal authority because the right to decide still remains with him. Here participation can occur at every level of organization.

    To make this technique a success, it is essential that the subordinate must be in favor of it. If the subordinate is the kind of a person who believes that the boss knows best and that making decisions and giving directives is none of his concern then there is a little likelihood that the opportunity to participate induces better motivation and better morale.

    One of the clear disadvantages of this technique is that the directive emerging from this consultation does not appear to the subordinate as an order, but as a solution which came directly from him or in which he participated. This assures the subordinate’s best cooperation and enthusiasm in carrying it out.

    Some other disadvantages of this technique are as follows:

    (i) There is a danger that the executive, in his desire to consult with his subordinates, might give them the impression of being not able to come to a decision.

    (ii) At times the subordinates consider it their right and prerogative to be consulted before a directive is given to them by their superior.

    #Free Rein Direction:

    This technique of direction encourages and enables the subordinate to contribute his own initiative, independent thought, drive perspicacity and ingenuity to the solution of the problem. This does not mean no- rein technique. He assigns the task not in a specific way but in general terms.

    In this technique, the initiative remains with the subordinate. The subordinate will have to select the solution and carry it out. This technique of direction will probably show the best and quickest results if the subordinate is the brilliant young man, highly educated, who has a sincere desire to become a top-level manager.

    #Autocratic Technique:

    The antithesis of free rein technique is the autocratic method where the executive substitutes command for the more informal methods and hands down detailed and precise orders in connection with the close supervision of subordinates.

    When the autocratic technique is adopted, the manager gives direct, clear and precise orders to his subordinates with detailed instructions as to how and what is to be done. The most democratic manager will find himself forced into issuing autocratic commands.

    #The Essay on Principles of Direction:

    The basic principles of direction are discussed below:

    • Harmony of Objectives.
    • Unity of Command.
    • Direct Supervision.
    • Effective Communication, and.
    • Effective Leadership.

    These are explained in brief as follows:

    #Harmony of Objectives:

    Every individual is assigned a particular job and he himself is responsible to complete that. He can do it in a better way only when he thinks that it is going to attain his personal objectives which may be different from the organizational objectives. So, the manager must try to reconcile the personal objectives of his subordinates with those of organizational objectives.

    #Unity of Command:

    This principle of direction states that a subordinate should get orders and instruction from one boss. He is responsible to one boss only. It is the best principle if it is not affected by the dual command.

    #Direct Supervision:

    Supervision refers to the direct and immediate guidance and control of subordinates in the performance of their task. Direct supervision by the boss and his direct advice to the subordinates boosts their morale resulting into renewed and vigorous effort. It also increases loyalty among the subordinates which is better for effective direction.

    #Effective Communication:

    Effective communication fosters mutual understanding, secures greater efforts from the subordinates and helps in co­ordinating the activities of an organization. Effective communication is an instrument of direction.

    Communication is complete only when the receiver receives and accepts the message intended. Two-way communications give the subordinates a chance to express their feelings and the boss to know the feelings of the subordinates. Misunderstanding, if any, can be removed through effective communication. Participation of subordinates in decision-making and responsibility is essential to make communication really effective and meaningful.

    #Effective Leadership:

    The success of an organization depends upon the quality of leadership exhibited by its managers at every level. Subordinates are happy if they get effective leadership from their boss. The boss must possess the qualities of a good leader if he is to get the work done with and through subordinates.

    The style of leadership adopted by a manager may be directive or democratic depending upon the needs of the situation, In any case, the manager cannot afford to overlook the interests of the subordinates. A person can exercise leadership over his subordinates only when he can fulfill their aspirations, and when they are satisfied with the type of leadership provided.