Buisness management

Business Management

Subject Coverage

1. Management and Principles

2. Planning

3. Organizing

4. Directing

5. Controlling

6. Total Quality Management

7. Entrepreneurship

Module: 01

Management and Principles

Module Coverage

1. Meaning, nature / characteristics

2. Scope and functional areas of management

3. Management as a science, art or profession

4. Management & Administration

5. Management Process

6. Management Principles

7. Evolution of-System Approach to management in detail (in domestic & international context) planning, organizing, staffing, Directing,

coordination, controlling and innovation (creativity)

Definition Of Management

• “Management is the art of getting things done through others” – Mary Parker Follett

• “Management is the art of getting things done though and with people in formally organized groups” – Harold Koontz

• “Management is the process of optimizing human, material and financial contributions for the achievement of organizational goals” - John A Pearce & R B Robinson

Objectives of Management

1. Proper utilization of resources

2. Improving performance

3. Mobilizing best talent

4. Planning for the future

Nature/Characteristics of Management

- Multidisciplinary

- It is a group activity

- Goal oriented

- Management is a factor of production

- Universal in character

- Social Process

- System of authority

- Dynamic function

- Art as well as science

- It is a profession

Scope of Management

Activities- Planning

- Staffing

- Coordinating

- Organisation

- Directing

- controlling

Operations- Production/Operations

Management

- Financial Management

- Marketing Management

- Personnel Management

- Office Management

- Management of Information system

Functions of Management1. Planning

2. Organizing

3. Coordinating

4. Staffing

5. Directing

6. Controlling

Functions of Management

1. PlanningWhat to do?

When to do?

How to do?

Who is to do?

2. Organizing- To identify, classify and

assign activities

- Delegate authority and fix responsibility

- Coordinate relationship


3. StaffingManpower planning

Recruitment

Selection and training

Placement, development

Promotion

Transfer, appraisal

Employee remuneratio

4. DirectingManagement in action

It involves:

leadership,

communication,

motivation

Supervision


5. Coordinating- Orderly arrangement of goods,

- Effort to provide unity of action in the pursuit of common objectives

6. Controlling-Establishing standards

-Measuring actual performance

-Comparing actual with standard

-Finding variances

-Taking corrective action

Administration Vs Management

Difference Administration Management

Nature of workIt is concerned about the determination of objectives and major policies of an organization.

It puts into action the policies and plans laid down by the administration.

Type of function It is a determinative function. It is an executive function.

Scope It takes major decisions of an enterprise as a whole.

It takes decisions within the framework set by the administration.

Level of authority It is a top-level activity. It is a middle level activity.

Nature of statusIt consists of owners who invest capital in and receive profits from an enterprise.

It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise.

Nature of usageIt is popular with government, military, educational, and religious organizations.

It is used in business enterprises.

Decision makingIts decisions are influenced by public opinion, government policies, social, and religious factors.

Its decisions are influenced by the values, opinions, and beliefs of the managers.

Main functions Planning and organizing functions are involved in it.

Motivating and controlling functions are involved in it.

Abilities It needs administrative rather than technical abilities. It requires technical activities.

Basis of Difference Administration Management

Principles of Management

1. Division of work

There is an efficient result in the operational level when tasks are distributed to qualified and competent workers or when people .

2. Authority

• With formal authority managers have the right to command and gives order to their subordinates

3. Discipline

• Members in any organization have to respect the rules and agreements governing it Respect and obedience to rules is embodied in the conduct of good life and discipline

4. Unity of Command

Employees must receive instruction only from one person.

Reporting to more than one manager results to conflicts in instruction and confusion of authority

5. Unity of Direction

• Operations within any organization having the same objective must be directed by only one manager using one plan in a department

• For example there should not be two or more supervisors each having different policy to follow.

6. Subordination of the Individual Interest to General interest

Individual interest must be subordinate to general interest when there is conflict between the two The agreement between the employers and the employees should be fair and there should be constant vigilance and supervision

7. Remuneration

• Compensation for the work done should be fair to the employees and the employers

8. Centralization

• We have this approach by decreasing the role of subordinates in decision making Managers should retain their final responsibility, while at the same time give their subordinates enough authority to do their jobs properly

9. Scalar Chain

• The line of authority in any organization turns in the order of rank from top management to the lowest level of the enterprise

10. Order

• Either material or human resources should be in the right place at the right time.

• People should be in the jobs or positions they are suited to.

11. Equity

• Equity is combination of justice and kindness.

• Equity in treatment and behaviour is liked by everyone and it brings loyalty in the organisation

• This brings cordial relation between the management and labour

12. Stability of Staff

• Employees work better if job security and career progress are assured to them

• A high employee turnover rate will effect the organization

13. Initiative

• Managers should encourage their employees for taking initiative with in limits of authority and discipline Initiative increases the zeal and energy on the part of human beings

• Fayols describes initiative as one of the keenest satisfactions for an intelligent man to experience

14. Esprit de corps

• Teamwork is fundamentally important to an organization Work teams and extensive face to face verbal communication encourages team work

Management Process

2–33

The Systems Approach

• System Defined

– A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

• Basic Types of Systems

– Closed systems

– Are not influenced by and do not interact with their environment (all system input and output is internal).

– Open systems

– Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

2–34

The Organization as an Open System

2–35

Implications of the Systems Approach

• Coordination of the organization’s parts is essential for proper functioning of the entire organization.

• Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.

• Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

Module: 02

PLANNING

Module Coverage

• Nature and Importance and purpose of Planning

• Planning process

• Objectives, Types of plans

• Nature and Hierarchy of Objectives

• Management by Objectives

• Management by Exceptions

• Management by Moving around

• Decision making, importance and steps

Meaning of Planning

• A plan is a forecast for accomplishment. It is a predetermined course of action.

• It is today's projection for tomorrow's activity. In other words, to plan is to produce a scheme for future action, to bring about specified results at a specified cost, in a specified period of time.

Features of Planning

• Planning has a number of characteristics:

Planning is goal-oriented

Planning is a primary function

Planning is all-pervasive

Planning is a mental exercise

Planning is a continuous process

Planning involves choice

Planning is forward looking

Planning is flexible

Planning is an integrated process

Planning includes efficiency and effectiveness dimensions

Steps in Planning Process

Establishing objectives

Developing premises

Evaluating alternatives and selection

Formulating derivative plans

Securing cooperation and participation

Providing for follow-up

Importance of Planning

• Planning helps an organisation in the following ways:

Planning provides direction

Planning provides a unifying framework

Planning is economical

Planning reduces the risks of uncertainty

Planning facilitates decision making

Planning encourages innovation and creativity

Planning improves morale

Planning facilities control

Principles of Planning

Principle of contribution to objectives

Principle of primacy of planning

Principle of pervasiveness of planning

Principle of flexibility

Principle of periodicity

Principle of planning premises

Principle of limiting factor

Limitations of Planning• The limitations of planning can be examined under the following headings:

Rigidity

Costly and time consuming

Employee resistance

False sense of security

Managerial deficiencies

Planning prevents innovation

External Limitations

Difficult to predict

Projected too far into the future

Environmental turbulence

Emergency situations

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The Essentials of Planning (cont’d)

Types of PlanningStrategic planning: determining how to pursue long-term goals with available resources.

Intermediate planning: determining subunits’ contribution with allocated resources.

Operational planning: determining how to accomplish specific tasks with available resources.

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Figure 5.2Types of Planning

Other Forms of Planning

1. Long-Range Planning - Short-Range Planning

2. Formal and Informal Planning3. Strategic, Tactic and Operational Planning4. Proactive and Reactive Planning5. Functional and Corporate Planning

The Planning ProcessGOAL SETTING

Identification and formulation of objectives

DEVELOPING PLANSChoices between alternative plans

IMPLEMENTATIONExecution of the plan

Reactive Planning

Revision of goals and plans

What Is an Objective?

“objective are goals, aims or purposes that organisation wish over varying periods of time”

10—49

Management by Objectives (MBO)—

• Management by Objectives (MBO)

– A philosophy of management, a planning and controlling technique, and an employee involvement program in which managers ask workers to join them in deciding what their goals should be.

Management 8/e - Chapter 8 50

Management by objectives as an integrated planning and control framework.

Essential Steps for MBO

Set Goals–The most difficult step.–Concrete–Specific target and timeframe–Assign responsibility

Develop Action Plan–Course of action–For both workgroups and individuals

Review Progress–Periodicity?–Course corrections

Appraise Overall Performance.–How are we doing?–Do we need to restate our goals?

Essential Steps for MBOSet GoalsThe most difficult step.

Develop Action PlanFor both workgroups and individuals.

Review Progress/ Take corrective actionPeriodic during the year.

Appraise Overall Performance.Review Annual Goals.

Management By Exceptions

• Administrative policy of focusing on those events deviating from an established standard.

• Management by exception practices are established where it has been determined that only those events that deviate from a standard are significant.

Management by walking around

• Management method emphasizing the importance of interpersonal contact.

• The objective of MBWA is to achieve harmony in an organization between management and employees through face-to-face contact as well as to keep abreast of current operational developments.

Decision Making

• A decision is a choice made from available alternatives.

• Decision-making is the process by which individuals select a course of action among several alternatives, to produce a desired result.

• Decision making is the selection based on some criteria from two or more possible alternatives – George Terrry

Characteristics of Decision Making

Goal-oriented

Alternatives

Analytical-intellectual

Dynamic process

Pervasive function

Continuous activity

Commitment of time, effort and money

Human and social process

Integral part of planning

Steps involved in Decision Making

1. Defining the Problem

2. Analysis of Problem

3. Alternative Course of Action

4. Evaluation of Alternatives

5. Experience

6. Experimentation

7. Taking Decision and Follow up

Module: 03

ORGANIZATION

Module Coverage

• Nature and purpose of organization,

• Principles of organization

• Types of organization – Formal and Informal-

• Centralization Vs decentralization of authority and responsibility

• Span of Control – Organizational Behaviour – nature and significance

Meaning of Organization

A group of people united by a common purpose.

An entity, an ongoing business unit engaged in utilizing resources to create a result.

A process by which employees, facilities and tasks are related to each other, with a view to achieve specific goals.

Principles of Organization

1. Principle of Objective

2. Principle of Specialization

3. Principle of Co-ordination

4. Principle of Authority and Responsibility

5. Principle of Definition

6. Span of Control

7. Principle of Balance

8. Principle of Continuity

9. Principle of Uniformity

10. Principle of Unity of Command

11. Principle of Exception

12. Principle of Simplicity

13. Principle of Efficiency

14. Scalar Chain

Formal Organization

refers to the collection of work groups that have been consciously designed by senior management to maximize efficiency and achieve organizational goals

5/6/2003Organizational StructureLaura Hofman Miquel, Hanna Barst, Jörg Petzold

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formal organization

public relations

job evaluation

safety

Informal organization

• refers to the network of relationships that spontaneously establish themselves between members of the organization on the basis of their common interests and friendships.

5/6/2003Organizational StructureLaura Hofman Miquel, Hanna Barst, Jörg Petzold

65

informal organization

Formal organization

Informal organization

A structure

(a) origin planned spontaneous

(b) rational rational emotional

(c) characteristics stable dynamic

B position terminology job role

C goals profitability or service to society

member satisfaction

D charting organizational chart

sociogram

The formal and informal organization

Centralization/Decentralization

• Centralization is that in which Authority and responsibility are tightly held by upper levels of the organization and are not delegated.

• Decentralization actually refers to the degree to which authority is delegated to lower levels. In decentralization, a great deal of authority is delegated and more decisions are made at lower levels.

Centralization and decentralization

• Centralization and decentralization refer to the degree to which authority is delegated in a business.

• Complete centralization means that employees have no authority to make decisions.

• Complete decentralization (delegation) means employees have all the authority to make decisions.

Centralization

Decentralization

Delegating Work Assignments

• Centralization: retains decision-making at the top of the management hierarchy

• Decentralization: locates decision-making at lower levels

© PhotoDisc

Centralization DecentralizationAdvantages1. Tight control

2. Standardization of Procedures and systems

3. Strong leadership

4. Improved communication

5 Facilitates evaluation

Advantages:1. Better motivate

2.Reducing senior managers’ burden

3. Quick decisions

4. Facilitates diversification

5. Motivation of subordinates

6. Sense of competition

7. Division of risk

8. Effective control and supervision

9. Benefiting the middle managers

Disadvantages1. Less participation

2. incomplete decisions

3. Destroys individual initiatives

4. Overburden on few

5. Slows down the operations

6. Distance from customers

7. No scope for specialization

Disadvantages:1. Risk of losing control

2. Hard to make decisions as a whole

3. Lack of coordination

4. Difficulty in control

5. Costly

6. Lack of able managers

Centralization Decentralization

Span of Control

- It means “The number of organizational members who report to a manager”

Types of Span of Control

• Wide span of control means one manager supervises many members

• Narrow span of control means one manager supervises a small number of members

Factors influencing the Span of Control

1. The capacity and ability of the executive

2. Competence and training of subordinates

3. Nature of work

4. Time available for supervision

5. Degree of decentralization and extent of delegation

6. Effectiveness of communication system

7. Quality of planning

8. Degree of physical dispersion

9. Assistance of experts

10.Control mechanism

11.Dynamism or rate of change

12.Need for balance

Module: 04

Directing

Module Coverage

• Meaning and nature of directing

• Leadership styles

• Theory X and Y;

• Management of productivity-an overview-Concept & application in manufacturing & service industries application in different areas

• Measurement of productivity, partial, multifactor & total factor models –

• Creativity Based Techniques -– Brainstorming.

• Whole brain thinking, Nominal Group techniques,

• Use in creative problem solving with practical applications.

• Learning Curves -– Concept of learning curve, its applicability, barriers to its application

Meaning of Directing

• Directing is the interpersonal aspect of managing in which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise’s objectives

Nature of Directing

1. It is a dynamic function

2. It initiates action

3. It provides necessary link between various managerial functions

4. It is a universal function

5. It is concerned with human relationships

Importance of Direction

1. Initiates action

2. Improves efficiency

3. Ensures co-ordination

4. Helpful in implementing changes

5. Provides stability

6. Motivation

7. supervision

Types of Leadership Style


• Autocratic:

– Leader makes decisions without reference to anyone else

– High degree of dependency on the leader

– Can create de-motivation and alienation of staff

– May be valuable in some types of business where decisions need to be made quickly and decisively


• Democratic:

• Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation

– Consultative: process of consultation before decisions are taken

– Persuasive: Leader takes decision and seeks to persuade others that the decision is correct


• Democratic:

– May help motivation and involvement

– Workers feel ownership of the firm and its ideas

– Improves the sharing of ideas and experiences within the business

– Can delay decision making


• Laissez-Faire:

– ‘Let it be’ – the leadership responsibilities are shared by all

– Can be very useful in businesses where creative ideas are important

– Can be highly motivational, as people have control over their working life

– Can make coordination and decision making time-consuming and lacking in overall direction

– Relies on good team work

– Relies on good interpersonal relations


• Paternalistic:

• Leader acts as a ‘father figure’

• Paternalistic leader makes decision but may consult

• Believes in the need to support staff

Douglas McGregor

Theory X and Theory Y

In 1957, Douglas McGregor (1906-1964), a famous American psychologist, published his article "The Human Side of Enterprise" in which he introduced what came to be called the new humanism, Theory X and Theory Y.



Theory X and Theory Y are two sets of assumptions about human nature and behavior that are related to the practice of management.

Theory X:

Representing a negative view of human nature that assumes people

generally are naturally irresponsible for their work and require close

supervision to do jobs.

Theory Y:

Indicating a positive view of human nature that assumes people are

generally hard-working, creative and responsible for exercising self-control

over their jobs.

Difference between Theory X and Y

Theory x

- Dislikes work and attempts to avoid it.

- Has no ambition, wants no responsibility, and would rather follow than lead.

- Is self-centered and therefore does not care about organizational goals.

- Resists change.

- Is gullible and not particularly intelligent

Theory Y

- Work can be as natural as play and rest.

- People will be self-directed to meet their work objectives if they are committed to them.

- People will be committed to their objectives if rewards are in place that address higher needs such as self-fulfillment.

- Under these conditions, people will seek responsibility.

- Most people can handle responsibility because creativity and ingenuity are common in the population

Theory X’s Principles


1. Management is responsible for organizing the elements of enterprise including production, capital, materials, facilities and employees.

2. In terms of employees, management is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization.

3. Without effective management, employees would be passive – even resistant – to organizational needs. Hence, they must be advised, rewarded, punished, and controlled. Their activities must be directed.

McGregor’s Remarks on Theory X


It is of "hard" management whose methods involve close supervision, rigid control and compulsion. It would lead to restriction of output, mutual distrust and even sabotage.

Theory Y’s Principles


1. Employees are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations.

2. Employees, by nature, have the motivation, potential for development and capacity for assuming responsibility and readiness to direct behavior toward organizational goals. It is the responsibility of management to make it possible for employees to recognize and develop these human characteristics for themselves.

3. The essential task of management is to arrange organizational conditions and methods of operation so that employees can achieve their own goals by directing their efforts toward organizational objectives.

McGregor’s Remarks on Theory Y


It is of "soft" management whose methods as tolerance and need satisfaction. It can lead to more effective management of employees in the organization.

McGregor’s Suggestions to Perform Theory Y

1. Management should have employees’ higher level needs met in the workplace.

2. Close supervision and the threat of punishment are not the proper means for encouraging employees to exercise productive efforts.

3. Some opportunities should be provided such as allowing employees to make decisions, redesigning jobs to make them more challenging or emphasizing on good working relations.


Effects on Management

Practice of Theory X and Theory Y

Theory X:

1. Managers’ leadership styles are autocratic and the communication flow is downward from managers to the employees. This may cause resistance from employees.

2. The upper setting of objectives gets little or no participation from employees.

3. It results in outside, control, with the manager acting as a performance judge who focuses generally on the past.

Effects on Management


Theory Y:

1. It may lead to cooperative objectives designed with input from both employees and managers, resulting in a stronger responsibility by employees for accomplishing the shared objectives.

1. It encourages leadership styles to be more participative and allows employees to seek responsibility for achievement of goals. Theory Y’s leadership is likely to improve communication flow, especially in the upward direction.

2. It leads to control processes based on employees’ self-control. The manager is more likely to act as an instructor rather than a judge who focuses on how performance can be improved in the future rather than on who is responsible for past performance.

Criticism of Theory Y


1. Rather than concern for employees, Theory Y style managers are simply engaged in an attractive form of management.

2. Sometimes, managers better match work tasks to basic human motivation through participative management, job enlargement and other programs based on Theory Y.

3. Actually, managers still focused on measures of productivity rather than employees’ interests.

4. It is a patronizing plan for bringing increased productivity from employees. Unless employees shared in the economic benefits of their increased productivity, they are just fooled into working harder for the same pay.

Theory X and Theory Y in the 21st Century


1. McGregor’s works on Theory X and Theory Y have had a great impact on management ideology and practice. They have been included in most basic management books. These books are still facing people of management today.

2. As for the practice of management, the workplace of the 21st century, which emphasizes on self-managed work teams and other forms of worker involvement programs, generally goes with the principles of Theory Y.

Management of Productivity

• Productivity is the output-input ratio within a time period with due consideration for quality

Outputs

• Productivity = ------------- (Within the time period, quality considered)

Inputs

© Wiley 2007

Measuring Productivity• Productivity is a measure of how efficiently inputs are converted to outputs

Productivity = output/input

• Total Productivity Measure

Total Productivity = $sales/inputs $

• Partial Productivity Measure

Partial Productivity = cars/employee

• Multifactor Productivity Measure

Multi-factor Productivity = sales/total $costs

Multifactor Productivity Model

Productivity and the Service Sector

• Measuring service sector productivity is a unique challenge

– Traditional measures focus on tangible outcomes

– Service industries primarily produce intangible outcomes

– Measuring intangibles is challenging

Creativity Based Techniques

1. Brain Storming

2. Nominal group techniques

Learning Curve

• A learning curve is a graphical representation of the changing rate of learning (in the average person) for a given activity or tool.

• Typically, the increase in retention of information is sharpest after the initial attempts, and then gradually evens out, meaning that less and less new information is retained after each repetition

Module: 06

Total Quality Management

Module Coverage

• Importance & relevance in the context of globalization of Indian economy

• Techniques used to inculcate the quality approach in an organization

• role of organizational behaviour-Quality Standards-ISO 9000/14000, SQC ERP MRP/MRP II (Brief introduction)

Why TQM?

Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982.

Xerox market share dropped from 93% in 1971 to 40% in 1981.

Attention to quality was seen as a way to combat the competition.

TQM: A “Buzzword” Losing Popularity

• For many companies, the term TQM is associated with corporate programs (mid 1980s early 1990s) aimed at implementing employee teams and statistical process control.

• Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work.

Question: Why were they dissatisfied? Were they justified?


TQM

• Total - made up of the whole

• Quality - degree of excellence a product or service provides

• Management - act, art or manner of planning, controlling, directing,….

Therefore, TQM is the art of managing the whole to achieve excellence.


What does TQM mean?

Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.


What’s the goal of TQM?

“Do the right things right the first time, every time.”


Another way to put it

• At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives:

(1) total client satisfaction through quality products and services; and

(2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.


Productivity and TQM

• Traditional view:

– Quality cannot be improved without significant losses in productivity.

• TQM view:

– Improved quality leads to improved productivity.


Basic Tenets of TQM1. The customer makes the ultimate determination of quality.

2. Top management must provide leadership and support for all quality initiatives.

3. Preventing variability is the key to producing high quality.

4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement.

5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.


The three aspects of TQM

Counting

Customers

Culture

Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems

Quality for the customer as a driving force and central concern.

Shared values and beliefs, expressed by leaders, that define and support quality.


Total Quality Managementand Continuous Improvement

• TQM is the management process used to make continuous improvements to all functions.

• TQM represents an ongoing, continuous commitment to improvement.

• The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.


Continuous Improvement versus Traditional Approach

• Market-share focus

• Individuals

• Focus on ‘who” and “why”

• Short-term focus

• Status quo focus

• Product focus

• Innovation

• Fire fighting

Customer focus

Cross-functional teams

Focus on “what” and “how”

Long-term focus

Continuous improvement

Process improvement focus

Incremental improvements

Problem solving

Traditional Approach Continuous Improvement


Quality Throughout

• “A Customer’s impression of quality begins with the initial contact with the company and continues through the life of the product.”

– Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale.

– Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale.

• “All departments of the company must strive to improve the quality of their operations.”


Value-based Approach

• Manufacturing Dimensions– Performance

– Features

– Reliability

– Conformance

– Durability

– Serviceability

– Aesthetics

– Perceived quality

Service Dimensions

Reliability

Responsiveness

Assurance

Empathy

Tangibles


The TQM System

CustomerFocus

ProcessImprovement

TotalInvolvement

LeadershipEducation and Training Supportive structureCommunications Reward and recognitionMeasurement

ContinuousImprovement

Objective

Principles

Elements

MODUEL: 07 ENTREPRENEURSHIP

Module Coverage

• Introduction - the entrepreneur; Definitions

• Emergence of entrepreneurial class; Characteristics of entrepreneur.

• Leadership; Risk taking; Decision-making and business planning. Self-actualization

• Management of conflicts, stress & time, Psychology of winning

• Entrepreneurial Development Programmes (EDP)- their role, relevance, and achievements- EDP & Strategic Management

Meaning of Entrepreneurship

• An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome.

• The term is originally a loanword from French and was first defined by the Irish economist Richard Cantillon.

• Risk taking and Innovation are keys word in entrepreneurship

Who is an Intrapreneur?

• A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation

• A Person who has all the abilities of an entrepreneur but works for an organization

Why do people take up entrepreneurial challenge

1. Opportunity

2. Profit

3. Independence

4. challenge

Barriers to Entrepreneurship

1. Lack of a viable

2. lack of market knowledge

3. Lack of technical skills

4. Lack of capital

5. Lack of business know-how

6. Complacency – lack of motivation

7. Social stigma

8. PEST

The Myths of Entrepreneurship

• Myth 1: Entrepreneurs Are Doers, Not Thinkers

• Myth 2: Entrepreneurs Are Born, Not Made

• Myth 3: Entrepreneurs Are Always Inventors

• Myth 4: Entrepreneurs Are Academic and Social Misfits

• Myth 5: Entrepreneurs Must Fit the “Profile”

• Myth 6: All Entrepreneurs Need Is Money

The Myths of Entrepreneurship

• Myth 7: All Entrepreneurs Need Is Luck

• Myth 8: Ignorance Is Bliss For Entrepreneurs

• Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates

• Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)

Institutions in Aid of Entrepreneurship Development

1. Management Development Institute (MDI)

2. Entrepreneurship Development Institute of India (EDII)

3. The National Institute for Entrepreneurship and Small Business Development (NIESBUD)

4. Science and Technology Entrepreneurship Parks (STEPS)

5. Small Industrial Development Bank of India (SIDBI)

6. Science and Technology Parks

7. XISS (Ranchi)

8. Role of development and commercial banks

9. District Industries Centre (DIC)

10.Industrial Estates

11.IIE Guwahati`

• Academic Programs

– Post Graduate Programme in Management, PGPM

– National Management Programme, NMP

– Part-Time Post Graduate Programme in Management

– Fellow Programme in Management, FPM

– Post Graduate Programme in Human Resource Management, PGP- HRM

– Executive Fellow Program In Management

– School of Energy Management

– Post Graduate Programme in Public Policy and Management

– Post Graduate programme in International Management

• Activities

• Evolving effective training strategies and methodology

• Standardising model syllabi for training various target groups

• Formulating scientific selection procedure

• Developing training aids, manuals and tools

• Facilitating and supporting Central / State/ Other agencies in organising entrepreneurship development programmes

• Conducting training programmes for promoters, trainers and enterpreneurs

• Undertaking research and exchange experiences globally in development and growth of entrepreneurship. The Institute is actively involved in creating a climate conducive to emergence of entrepreneurship

• Assisting and Supporting EDPs

• Evolving Model Syllabi for training various target groups. Formulation of standardised procedures of identification and selection of potential entrepreneurs. Preparation of Training Aids Materials ú Manuals ú Handbooks ú Video Films ú Lesson Plans ú Learning Text ú Cases

Small Industries Development Organization (SIDO)New Delhi

• ACTIVITIES

• Advising the Govt. in policy matters concerning small scale sector.

• Providing techno-economic and managerial consultancy, common facilities and extension services.

• Providing facilities for technology up-gradation, modernization quality improvement & infrastructure.

• Human resources development through training and skill up-gradation.

• Providing economic information services.

• Maintaining close liaison and vital linkage with the Central Ministries, Planning Commission, Financial Institutions, State Govts. & similar other developmental organizations/agencies related to the promotion and development of SSI Sector.

• Evolving and coordinating policies for development of ancillaries.

• ServicesMarketingTechnology and TrainingExportingInternational Trade FairNSIC Exhibition

• Academic Program

– Post Graduate Diploma in Personnel Management

– Post Graduate Diploma in Rural Development

– Post Graduate Diploma in Information Management

– Post Graduate Diploma in Business Management

• Services

– Assistance / Consultancy to Prospective Entrepreneurs.

– Assistance / Consultancy to existing Micro and Small Enterprises .

– Preparation / Upgradation of District Industrial Potential Surveys

– Preparation of Project Reports / Project Profiles.

– Entrepreneurship Development Programmes Motivation Campaigns.

– Project Appraisal for Bank / Financial Institutions.

– Management Development Programmes.

– Skill Development Programmes Awareness Programmes on Energy Conservation / Pollution Control.

– Quality Improvement & Technology up gradation.

– Export Promotion.

– Linkage with State Govt.

– Market Surveys.

– Marketing Support through NSIC Enlistment by giving Technical Inspection Report.

– Registration of Micro and Small Enterprises under Ozone Depleting Substances (Regulation & Control) Rules, 2000. Revival of Sick Micro and Small Enterprises

Small Industries Service Institutes (SISIs)

• Are set up to provide consultancy and training to small entrepreneurs – both existing and prospective

• There are 28 SISIs and 30 branch SISIs set up in the state capital and other places all over the country

Functions of SISIs

a. Interface between central & state Govt.

b. Render technical support services.

c. Conduct E.D.P's.

d. Initiate Promotional Programmes.

Assistance in following areas by SISI

(a)Economic consultancy/information/ EDP consultancy.

(b)Trade and market information.

(c) Project profiles.

(d) State industrial potential survey.

(e)District industrial potential survey.

(f) Modernization and implant studies.

(g)Workshop facilities.

(h)Training in various trade/activities.

Buisness management

Business

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