UNIT – 1
A system is an organized grouping of persons, methods, machines materials and the like that collectively set to accomplish some specified objectives. Systems are basically of two types: (i) Physical System (ii) Conceptual System. Generally, all systems have the following common Characteristics (i) Specific objective (ii) Components (iii) Structure (iv) Behavior (v) Self – regulation (vi) Life cycle
A system is component of a no. of inter – related and inter – dependent sub– system, which are element of supra system.
System has many objectives like performance, reliability cost and timing. Performance, Reliability, Cost and Schedule are the main objective of systems.
Generally, all systems have the following common Characteristics.
A wide variety of groupings will come under the scope of the term system e.g. a human body, computer, a motor car, a factory and even the universe. Unlike in the case of certain types of machine operation, corrective action cannot be automated in business systems. The feed backs generated by actual performances, are usually, of negative type, and are termed as exception reports, to form basis of corrective action.
Law of Requisite variety: - Law of requisite variety is control theory to obtain variety control based on available technology
System Coupling: - Coupling means two Sub Systems are inter-dependent with or tightly linked with each other.
Stresses: - When a supra system imposes stress on a system, the system will change to accommodate the stress or it will decay and terminate.
Entropy: - It is a universal property of systems and refers to their tendency to run down and die. If a system does not receive fresh inputs and energy from its environment, it will eventually cease to exist.
Function and cross Functional System: - Many businesses are organized around the functional area because specific functional area provides professionalism and expertise. After recognizing the disadvantages of functional system, many firms have moved towards organizing around cross-functional system or customer-oriented processes.
Steven Alters’ nine elements Work System Model: - These are as follows
(i) Customers (ii) Products & Services (iii) Business Process (iv) Participants (v) Information (vi) Technology (vii) Strategies (viii) Environment (ix) Infrastructure.
Work System Model and its Comparison with IPO: - IPO (Input-Processing-Output model is simple. It does not consider other important factors like customer satisfaction and other external factors, where as in work system model there are four elements business process, participants, information and technology.
Systems leading to Customer delight: - Customers use and receive benefits directly from end products and services produced by a work system. Work is a useful tool and it is used for targeting customer.
UNIT – 2
Management: - Management is the brain of an enterprise. The following points explain the importance of management:
It makes the people realize the objectives of the group.
It is a tool which utilizes the resources optimally and reduces cost.
It provides imagination and vision to the organization.
It helps in developing suitable wage incentive plans.
It looks after the social responsibility of the society.
It helps in developing incentives.
Definition: - Management is the complex of continuously coordinated activity by means of which any undertaking or any administration or any other service, public or private conducts its business.
Management Theories: - Various theories as mentioned below have emerged:-
(a) Classical management theory
(b) Behavioral management theory
(c) Quantitative management theory
(d) System theory
(e) Contingency theory.
Functions of management: - There are five managerial functions, which are as follows:
e- business: - e-business can re analyzed in three phases: pre purchase, purchase and post purchase.
Environment: - It is the environment of the company as a pattern of all external influences that affects its life and development.
Corporate Culture: - Corporate Culture has seven primary characteristic: - (i) Innovation & Risk taking (ii) Attention to detail (iii) outcome orientation (iv) Performance-reward (v) Team-orientation (vi) Aggressiveness (vii) Stability.
Difficulties & Levels of Planning: - Levels of planning are as follows: - Strategic/Corporate, strategic/division ABC and operational plan-marketing,
Operation plan: – Sales, operational plan-sales person. Advantage of planning being numerous, no doubt, but planning has certain difficulties/limitation.
BCG Matrix: BOSTON CONSULTING GROUP (BCG) model is meant for product portfolio management.
SWOT Analysis: - SWOT Analysis indicates study of strength, weakness, opportunities & threat of an organization.
Steps in decision making: - The sequential set of steps in decision making may be as follows:-
Identification and diagnosing the problem
Analyzing the problem
Searching alternative solution
Evaluation of alternatives
Selecting the best alternatives
Implementation of putting the decision into effect
Follow-up the decision
Structured and unstructured decision: - Structured decisions are repetitive & routine, where as unstructured decisions are dealt for special problem. / sitrations
OrganizationTyeps: - There are five types of organization:
Line and staff organization
Project or Matrix organization.
Organization behavior is directly concerned with the understanding, prediction and control of human behavior in organization. As business functions are done by a large no. of person, it is essential that business activities be organized as :
Selection of person, allocation of duties and delegation of authority
Providing necessary working condition.
Mintzberg has given very specific type of organization giving techno-operating core, middle line, strategic apex and support staff.
Generally, three types of organization are very much in use for all types of working i.e. line, staff and matrix organization. Where as in line organization the authority and responsibility moves from top to bottom and vice-versa, in staff function organization it moves in both direction and in matrix function it is combination of both.
Business Process Reengineering means the fundamental rethinking and radical redesign of business procedure to achieve dramatic improvement in critical contemporary measures of performance. change being a permanent thing everywhere, so in any organization also it implies the same which may be gradual, drastic, minor & partial or whole which are needed in portfolio strategy, competitive strategy, function strategy and organization culture.
The process by which management determines how an organization should move from its current manpower strength to its desired manpower strength for making proper matching between the requirement of the job and the qualities of the selected candidate, placement is done.
Training is the systematic development of knowledge skill and attitude required by an individual to perform adequately a given task or job.
MIS (Management Information System) is a system designed to provide information required for efficient and effective management of an organization.
Personality of an individual is unique and is a major determinant of his or her behavior. Leadership is a part of management function and management is above leadership. Leader can be formal or informal but management is for formal and organized groups only.
Motivation It refers to the forces that arouse enthusiasm and persistence to pursuea certain course of action. It represents an unsatisfied need which creates a state of disequilibrium, causing the individual in a goal, directed pattern toward restoring a state of equilibrium by satisfying the need. Maslow’s need hierarchy theory tells that human beings have a variety of needs, and form a particular structure hierarchy. Herzberg’s two factor theory says that the factors related to their jobs make them happy or unhappy; sources of satisfaction are found in doing of work.
EXPECTATION THEORY: - Expectancy theory developed by Victor Vroom has given a formula which is Motivation force = Valence x Expectancy. Where valance means a person’s interaction towards a goal and expectancy means the individual’s confidence on his competence to achieve the desired goal.
Learning Process can be viewed as a process of conditioning i.e. modifying the behavior. It can be defined as a “relatively permanent change in behavior that occurs as a result of prior experiences”.
Team is a unit of two or more people who interact and coordinate their work to accomplish a specific goal. Team work effectiveness is based on three outcomes productive output, personal satisfaction and the capacity to adapt and learn.
Stress is an individual’s physiological and emotional response to external stimuli that place physical or psychological demands on the individual and create uncertainly and lack of personal control when important outcomes are at stake. A variety of techniques can help individuals to manage stress.
UNIT – 3
Marketing is one of the terms in business which is the major functional area that deals with the activities related to the consumer goods and services that are offered by a business enterprise.
A human need is a state of felt deprivation of some basic satisfaction.
Wants are the ways in which we choose to satisfy our needs, and also to gain a level of satisfaction and enjoyment.
Demands are wants for specific products that are backed up by an ability and willingness to buy them.
Exchange is the act of obtaining a desired product from someone by offering something in exchanger.
Product is anything that can be offered to someone to satisfy a need or want. Consumer will consider the product’s value.
Value is the consumer’s estimate of the product’s overall capacity to satisfy his or her needs.
The marketing environment consists of the following components:-
(i) Customers (ii) Competitors (iii) Social and cultural change (iv) Political fiscal, economic and legal policies. (v) Technology (vi) Demographic Changes.
There is varied difference between selling & marketing in the area of Product, Customer, Demand, Want, Seller & buyer.
The societal marketing concept holds that the organizational task is to determine the needs, wants and interests of target market and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and society well-being.
Marketing on one hand deals with the activities related to the consumer goods and services that are offered by business enterprises, on the other it also deals with the activities related to the industrial goods and services.
Market targeting:- is one of the marketing management process under which analyzing market opportunities, selecting target market, developing the marketing mix and managing the marketing effort do come.
Advertising:- is a paid form of non-personal presentation of goods or ideas by an identified sponsor and publicity is non-personal stimulation of demand for a product service, Both of them are used for the promotional objectives.
Customer Relationship Management (CRM):- In CRM system, collection and management of data about customer is done and made available to employees enabling superior customer service. It is related to pre-sales and post sales activities
Marketing research:- is one of the components of marketing information system and their broad applications are sales and market analysis, product, advertising and consumer behavior analysis.
FINANCE NATURE AND SCOPE: -
The objective of financial management is profit maximization.
FORMS OF BUSINESS OWNERSHIPS:-
There are various form of business ownerships e.g. sole ownership, partnership, private limited companies, public limited companies, etc.
The balance sheet is a Financial Statement of a business as on particular date.
Profit and loss account is one of income statement that shows net business result i.e. profit or loss for a certain period.
Fund Flow Statement is a statement showing sources and application of fund for a particular period.
Cash Flow Statement is a statement that describes the movement of cash from one date to the other.
Break-Even Period (BEP) indicates the quantity of output where profit and loss happen to be equal.
Net Present Value (NPV) is the difference between the total present value of future cash overflows and the total present value of the future cash inflows.
Pay-Back Period (PBP) is the period in which the project will generate the necessary cash to recoup the initial investment. Financial Ratio (FR) is calculated by dividing by one financial numeral with another. There are many advantages of financial ratio in making analysis for different accounts.
Capital Budgeting: - The plan to purchase plant, machinery and equipments becomes a capital budget and the decision making process necessary to develop a wise plan is called capital budgeting.
UNIT – 4
PRODUCTIVITY AND OPERATIONS
Productivity is the elimination of waste in all forms. Standard of living and happiness in a country is measured by quality and extent of housing food, clothing, education and recreation that the country’s people can provide for themselves, productivity and standard of living are directly connected.
Productivity (which is output/input) can be Categorized as:- (I) Partial Productivity (ii) Material Productivity (iii) Labour Productivity (iv) Machine Productivity (v) Capital Productivity (vi) Land Productivity (vii) Total Productivity.
Operations Management focuses on the management of resources to produce or deliver the products or service provided by an organization.
Project Management is an exciting management activity which covers a project initiated for achieving a mission that gets completed as soon as the mission is fulfilled.
Layout broadly known as plant layout is referred to the arrangement and location of different department and the machinery within a department to utilize optimum the space available with a view to enable plant to function in an effective manner through different production processes to give maximum production at the maximum cost.
For method improvement in the working work study which is a combination of method study and work measurement is used in the maximum of human work in all its contexts. Method study, in different steps, covers various aspects of method improvement such as martial, man, working method, work holding device, working conditions, plant layout, movement of men & machines etc.
Work measurement establishes the time for a qualified worked to carry out a specified job at defined level of performance. It answers the big question “How long should it take someone to do something”.
Rating is the assessment of the worker’s rate of working relative to observer’s concept of the rate corresponding to standard rate.
The standard time for a job or an operation is determined by PMTS i.e. Pre-determined motion time analysis.
Total Quality Management is the maximum user satisfaction at minimum cost. It is a management function, involving direction by top management and Co-ordination all quality related activities throughout the company.
Cost of Quality is a significant part of overall product cost, so it is to be assessed accurately.
Just in Time :- The basic aim for any product or item is to store for Just in time. All the necessary parts are received, delivered promptly only when they are needed eliminating non-productive time, storing inventory and work space unnecessarily.
Quality Function Deployment (QFD) is a powerful new planning technique suitable for large scale products such as aero planes, automobiles, shipbuilding & major appliances.
Total Productive Maintenance (TPM) has objective of zero break – downs and zero defects. This in other words can be considered as medical science of equipments, plants & machineries.
Six Sigma Quality stands for six standard deviation. To achieve six sigma quality, a process must not produce more than 3.4 defects per million opportunities, The six sigma DMADV (Define opportunities, measure performance, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma Quality levels.
UNIT – 5
Definition: - “An entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain prices in future”
There are many definitions given by different people but in nut shell, the concept of entrepreneur is described as a person who tries to create something new, organizes production and undertakes risks of uncertainty and the act of bearing such risk of uncertainty is termed as “Entrepreneurship”.
The following are the important characteristics of entrepreneurship:-
(i) Innovation (ii) Risk bearing (iii) Building organization (iv) Decision making (v) Foresightedness (vi) Accepting Challenges (vii) Optimum utilization of resources (viii) Hard working (ix) Skillful management.
Sometimes, the term entrepreneur is considered synonym with a manager, but in reality the two term are completely different in their meaning. The major points of difference are in innovation, Risk bearing, motive, and status and reward areas. In global scenario, there are various types of entrepreneurship, but broadly, this is classified in four categories:-
(i) Innovative Entrepreneur (ii) Imitative or adapting Entrepreneur (iii) Fabian Entrepreneur (iv) Drone Entrepreneur.
There are various theories on entrepreneurship, which can be categorized as :-
(i) Sociological Theory (ii) Economic Theory (iii) Cultural theory (iv) Psychological Theory.
An ideal entrepreneur possesses some outstanding qualities which distinguish him among the ordinary ones. Essential qualities of a successful entrepreneur are (i) Risk bearer (ii) Organizer (iii) Innovator (iv) Optimist (v) Exploiter of opportunities (vi) Desire for high achievement (vii) Independence lover (viii) Marginal Skill.
Following are two important theories of entrepreneurial behavior:
(i) Maslow’s need hierarchy theory (ii) McClellana’s need achievement theory.
An entrepreneur plays an important role in economic growth of a country. His role in the economic growth of the countries is done through.
(i) Creates new ideas (ii) Promotes value engineering (iii) Adopts new methodology and techniques.
Entrepreneur helps in generation employment in many ways right from establishing firms small and medium scale manufacturing and marketing enterprises to exporting of the items.
An entrepreneurial plan cannot be formed and finalized for its implementation without social cost benefit or social stability analysis.
The government continues to encourage entrepreneur in export promotion in the small and medium sectors, which are extensively looked after by them. For increasing export promotion, following agencies have been established: - (i) Export processing zone (ii) The Federation of Indian export organization (iii) Indian institute of Foreign trade (iv)Export inspection council. (v) State Trading Corporation (vi) Minerals & Metals trading corporation (vii) 100% Export oriented units (viii) Agricultural and processed food products export development authority.
The role of an entrepreneur in import substitution is very vital. The entrepreneur adopts different measures in promoting indigenous manufacturing.
Creating a venture requires following analysis:- (i) Opportunity analysis (ii) Technological environment analysis (iii) Competitive Factor analysis.
SOURCES OF FUNDS, ENTREPRENEUR DEVELOPMENT PROGRAMME.
Sources of fund can broadly be classified into two sections:-
(1) Internal Sources (2) External Sources
Whereas in internal sources, funds are raised from within the enterprise itself, in external sources funds are raised from other than internal sources.
Entrepreneur Development Program (EDP) is designed to guide and help properly to a person in strengthening and fulfilling his entrepreneurial motive and in acquiring required skills and capabilities for playing the entrepreneurial role effectively. EDP is a tool for developing human recourses.