The document defines management as planning, organizing, commanding, coordinating, and controlling work. It discusses the key functions of management including planning, organizing, leading, controlling, staffing, and motivating. Finally, it explains the basic forms of organizational structure as line organizations with a clear chain of command, and line-and-staff organizations that combine line departments with supporting staff functions.
FUNDAMENTALS OF MANAGEMENT ON ACCOUNTING - IFM2.pptx
Management Functions and Principles
1. Definition of management
To manage is to forecast ,to plan, to organize ,to
command coordinate and control
Management is knowing exactly what you want
your men to do, and then seeing that how
they do it in a cheapest way
Management is knowing how to get things done
by the people
2. • Summing it up all we can say management is
The process of various functions like planning
managing coordinating and controlling in such
a way so we can achieve the objectives,
since from beginning to survival.
4. Formation of organization
Every business has to form an organisation for
accomplishment of targeted objectives.
With the existence of business, there is
existence of organisation.
Organisation should be flexible so as to adapt to
the changing time and circumstances.
6. • Determining organizational goals and a
means for achieving them
• Planning: Deciding what needs to happen in
the future (today, next week, next month,
next year, over the next five years, etc.) and
generating plans for action
Planning
7. • Deciding where decisions will be made
• Who will do what jobs and tasks
• Who will work for whom
• Organizing: (Implementation)pattern of
relationships among workers, making
optimum use of the resources required to
enable the successful carrying out of plans
Organizing
10. The Control Process
Set standards to
achieve goals
Compare actual
performance to
standards
Make changes
to return
performance to
standards
11. Motivation:
Motivation is also a kind of basic function of
management, because without motivation, employees
cannot work effectively.
If motivation does not take place in an organization,
then employees may not contribute to the other
functions
(which are usually set by top-level management).
12. General Administrative Theorists
• Henri Fayol
– Believed that the practice of management was distinct from
other organizational functions
– Developed fourteen principles of management that applied to
all organizational situations
• Max Weber
– Developed a theory of authority based on an ideal type of
organization (bureaucracy)
• Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism
13. Administrative Management:
Henri Fayol
1. Division of work
2. Authority and
responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
of personnel
13. Initiative
14. Esprit de corps
14. Operations, Information, Systems,
and Contingency Management
Information Management
Operations Management
Contingency Management
Systems Management
Nature of Management
15. Operations Management Tools
Quality control
Forecasting techniques
Capacity planning
Productivity measurement and improvement
Linear programming
Scheduling systems
Inventory systems
Work measurement techniques
Project management
Cost-benefit analysis
16. Information Management
Milestones in information management:
1500-1700 Creation of paper and the printing press
1850 Manual typewriter
1860s Vertical file cabinets and the telegraph
1879 Cash registers
1880s Telephone
1890s Time clocks
1980s Personal computer
1990s Internet
17. Systems management
• System is a set of interrelated elements or
parts that function as a whole
• Closed systems can sustain themselves
without interacting with their
environments
• Open systems sustain themselves by
interacting with their environments
23. Impact of Technology
• Technology can be
a great benefit or
a daunting threat.
MP3 players have
created a
tremendous new
business
opportunity for some, like Apple, Creative, and
other manufacturers. But record labels have
suffered from the rapid acceptance of digital
music and persistent file swapping.
24. Sociocultural Component
• Sociocultural Components
Demographic changes
Changes in behavior, attitudes, and beliefs
The sociocultural component of the general environment refers to the demographic
characteristics and general behavior, attitudes, and beliefs of people in a particular
society
Sociocultural changes in behavior, attitudes, and beliefs also affect the demand for a
business’s products and services. Today’s harried worker/parent can find services that
have all the supplies you need for kids’s birthday parties. These services are a direct
result of the need for more efficient time management, which is a result of the
sociocultural changes, associated with a much higher percentage of women in the work
place.
25. Customer Component
Reactive customer monitoring
responding to problems,
trends, and events
Proactive customer monitoring
anticipating problems,
trends, and events
Monitoring customer
wants and needs
is critical for
business success
28. Environmental Scanning
Environmental scanning:
searching the environment for
events or issues that might
affect an organization
keeps companies current
on industry factors
reduces uncertainty
alters organizational strategies
contributes to organizational performance
30. Adaptability is the ability to notice and respond to changes in the organization’s
environment.
In cultures that promote higher levels of employee involvement in decision making,
employees feel a greater sense of ownership and responsibility.
A company’s vision is its purpose or reason for existing.
In organizational cultures in which there is a clear organizational vision, the organization’s
strategic purpose and direction are apparent to everyone in the company.
Finally, in consistent organizational cultures, the company actively defines and teaches
organizational values, beliefs, and attitudes.
Consistent organizational cultures are also called strong cultures, because the core beliefs
are widely shared and strongly held.
31. Types of organisation
1) Line Organization
2) Line and Staff Organization
Organizational structure involves. There are
numerous ways to structure jobs within an
organization, but two of the most basic forms
include simple line structures and line-and-
staff structures.
32. Line Organization:
• In a line organization, top management has
complete control
• The chain of command is clear and simple.
• Examples of line organizations are small
businesses in which the top manager, often
the owner, is positioned at the top of the
organizational structure and has clear "lines"
of distinction between him and his
subordinates
33. The line-and-staff organization
• This combines the line organization with staff
departments that support and advise line
departments.
• Most medium and large-sized firms exhibit line-
and-staff organizational structures.
• The distinguishing characteristic between simple
line organizations and line-and-staff organizations
is the multiple layers of management within line-
and-staff organizations.
34. • Therefore, staff authority gives staff personnel
the right to offer advice in an effort to
improve line operations