BUSINESS

AND
MANAGEMENT
(COMPILATION OF REPORTS)
 TABLE OF CONTENTS
Types and nature of business organization
Principles of Organization
Economic Development
Social Development
Industry and Structure that exist in our Economy
Theories of Management
Meaning and Basic Functions of Management
Types of Organizational Structure
How to Identify Business Opportunities
The Basic Functional Areas of Management in each
type of Business
Operation
Functional Area
Social Technology Applied in Business
Strategic Planning and processes
Career Options in the Different Functional Areas of
Management
The Concept of Synergy Collaboration and
Teamwork
Social Enterprises
 TYPES OF BUSINESS ORGANIZATION

1. Services- to do with offering services instead of products

Example: accounting firms
2. Merchandising- is a type of business that buys finished products and
generally sells them at a higher price than they were originally purchase
3. Manufacturing- buying of raw materials
Example: cars

NATURE OF BUSINESS ORGANIZATION

1. Sole Proprietorship- business owned and managed by only one

person
2. Partnership- business owned and operated by two or more
persons who bind themselves to contribute money, property, or
industry to a common fund with the intention of dividing the profits
among themselves.
3. Corporation- an artificial being created by operation of law,
having the rights of succession and the powers, attributes and
properties expressly authorized by law or incidents to its existence
- owned by the stockholders
 Principles of Organization
1. Consideration of Objectives
What the organization wants to achieve through the organization should be clearly kept in
mind. Aside, from defining the organization, the organizer must also define the objective
of each position in the organization.
2. Division of Work or Specialization
Organizing by dividing or organizing into specialized areas (by the purpose it serves, by
the process used, by the person dealt with, and by the place where the work is done) enables
the person to concentrate on a limited range of duties, understand these duties thoroughly
and learn them well and thereby be in a better position to improve his work.
3. Delegation of Authority
In an organization, this authority to take action or make decisions should be delegated to
individuals who have the necessary knowledge and ability to take intelligent action. For
example, a manager may have the authority to fire people in his department, but he must
adhere to a myriad or restrictive legal procedures.
4. Parity of Responsibilities and Authority
Responsibility or accountability is the obligation of a subordinate to a superior to perform
assigned activities to the best of his ability. When a subordinate is made responsible for
reaching a given objective, he should be given enough authority to take steps to reach it.
5. Span of Control
Refers to the number of subordinates a manager can effectively control. Span of control
tends to, be short at top organization levels, especially if the work has non-recurring
problems.
6. Unity of Command
States that each member of an organization should be accountable to, and receive directions
from only one supervisor, his immediate superior.
7. Short Chain of Command
This principle states that there should be a few levels of supervision between the highest
authority in an organization and the rank and file as possible. It minimizes distortion in the
downward and upward communication.
8. Coordination
This principle states that all individual activities in an organization must be synchronized
with respect to their amount, time and direction to avoid duplication of work that resulted
in wasted efforts and to obtain consolidated action toward a common goal.
Coordination is often achieved through clearly written objectives and job description.
9. Efficiency
It specifies that “the organization should be planed that the objectives can be attained with
the lowest possible cost, which may mean either money cost or human cost or both.”
10. Separation of Line and Staff Functions
This principles states that where separation of functions is possible, no individual or
department should be given both line and staff functions. Combining both functions in an
individual or department often leads to a confusion of authority.
11. Consideration of Policies, Procedures, and Rules
 Policies are general principles that indicate the intentions of those who guide the
organization and declare the attitude its executives must adopt toward major issues.
Procedures define in step-by-step fashion in the manner in which a recurring activity must
accomplished. Rules are fixed sets of regulations that determine conduct, habit or custom.
Written policies, procedures and rules represent the law of organization.
12. Job Groupings
Jobs must be logically grouped into sections, sections into departments, and so on until all
functions of the organization are covered.
13. Flexibility
An organization must be flexible if it is to cope with the changes. Without flexibility, the
organization will not be able to withstand pressures from within and without, nor give way
to the demands of genuine changes thereby impairing its organizational structure.
14. Communication
Aside from reducing the number of levels of authority to help in the smooth flow of
communication, the organizer must design and install an honest-to-goodness
communication system in the organization to help provide both manager and the employees
the information they need, promptly, and accurately.
15. Balance
A reasonable balance should also be struck between standardization of procedures and
flexibility and between centralization and decentralization of decision making. Without
this reasonable balance, the objective of the organization cannot be realized economically
and effectively.

7 Important Functions of Organization

1. To define the role of the individual
Employee should know his/her role, relationship with other personnel in his department
with others. It is through the organization that one can know his/ her position and role in
the unit.
2. Determination of authority
Each role proposes the granting of certain authority. Organization is necessary to define
the authority the rights and powers of men in different positions which would help them to
discharge their assigned roles.
3. Fixation of responsibility
Each individual should be assigned in a certain duty. Organizational structure defines what
performance is expected of a member to a particular enterprise. Absence will lead to
irresponsible functions, behaviors, and attitudes.
4. Specialization
 Performance of different parts of a job by persons should be specifically suited for them.
Efficient and smooth functioning is possible when different elements of a job are performed
by experts.
5. Coordination
“Division of Labor”. They perform diverse, activities and these have to be woven into main
fabric.
6. Proper utilization of human resources
Important things for enterprise are to make the best possible use of its human resources to
avoid wastage or misapplication of human efforts.
7. Efficient Functioning
It is a watchword of an enterprise. Organization avoids all duplication in jobs and over
tapping and wastage.

Economic Development

Economic Development- is the process of improving the quality of life of a nation, region, or
community. This typically involves objectives such as social well-being, economic growth and
sustainability.
Difference between Economic Growth and Economic Development
Economic growth- defined as the rise in money value of goods and service produced by all the
sectors of the economy per head during a particular period. It is a quantitative measure that shows
the increase in the number of commercial transactions in an economy.
Economic development- defined as the process of increase volume product along with the
improvement in the technology, a rise in the level of living, institutional changes, etc. In short, it
is the progress in the socio- economic structure of the economy.
Types of Economic Development
Infrastructure
Education
Health and Wellness
Justice
Safety
Human Rights
Consumer Protection
Fair Competition
Markets
Finance
Political Stability
 Culture
Transportation
Energy
Water
Food
Information Technology
Research
Industrial Base
Service Economy
Knowledge Economy
Experience Economy
Public Space
Community
Sustainability and Resilience

Three Major Areas of Economic Development

Policies that governments undertake to meet the broad economic objectives such as
price stability, high employment, expanded tax base, and sustainable growth.

Policies and programs to provide infrastructure and services, such as highways,

parks affordable housing, crime prevention, and educational programs and projects.

Policies and programs explicitly directed at job creation and retention through
specific efforts in business finance, marketing, neighborhood development, small
business start-up and development, business retention and expansion, technology
transfer, workforce training and real estate development.

Social development

Social development is about improving the well-being of every individual in society so they
can reach their full potential. The success of society is linked to the well-being of each and
every citizen.

Social development means investing in people.

It requires the removal of barriers so that all citizens can journey toward their dreams
with confidence and dignity. It is about refusing to accept that people who live in poverty will
always be poor. It is about helping people so they can move forward on their path to self-
sufficiency.
Learning must start early in life.
 By investing in early learning initiatives, we can ensure a greater degree of success amongst
our citizens. Making sure that children get a good start in their education goes a long way to
increasing their success later in life.
An affordable, high quality child care system’
Is also needed for society to succeed. When people know that their children are being well
taken care of, they can be more productive in their jobs. When employers have good
employees their business is more likely to succeed. When businesses succeed, the economic
situation of a community is improved. An investment today in good child care programs can
provide many long term economic benefits for society.

In addition, a safe affordable place to live is very important in helping people achieve self-
sufficiency. It is the focus of family life; where families can live safely, nurture their
children, build community relationships and care for aging parents. Without a decent place
to live, it is difficult to function as a productive member of society.
Other investments in people that contribute to the economic prosperity of society.
Include youth programs and services, post-secondary education, job creation, promotion
of healthy, active living and safe and secure communities
To reduce poverty we need to take a social development approach and invest in our people. By
investing in people we can reduce poverty. We need to go beyond looking at government to
find ways to develop our most valuable resources, our people. We need to share responsibility
with community organizations, businesses, universities and municipalities in the task of
improving the well-being of all New Brunswickers and preventing and reducing poverty

INDUSTRY STRUCTURE THAT EXIST IN OUR ECONOMY

Types of Industry
Primary Industries
are directly involved with natural resources.
Example:
Fishing Industry
Farming Industry
Forestry Industry
Mining Industry
Secondary Industry
involves the processing and transforming of raw materials obtained from primary
activities or packaging of manufactured. They are also known as manufacturing
industries.
Light and Heavy Industries
Light Industries
Use few raw materials to produce relatively light weight goods.
Example:
Manufacture Garments
Heavy Industries
Use bulky machinery and large quantities of raw materials to produce large and
heavy goods.
Example:
Steel Industries

Labor intensive and Capital intensive Industries

Labor-refers to people in an industry.
Example:
Shoe Factory
Capital refers to money used to set up and maintain a business.
Example:
Oil Refinery
Tertiary Industries
are also known as service industries.
Example: Banking Entertainment
Education Tourism
Tertiary Industries may be classified as those providing:
Basic service(Medical Service at a polyclinic)
Premium Service(Specialist Clinic and Private Hospitals)
Quaternary Industries
involves handling and processing of information and knowledge.
Example:
Research and Development
 INDUSTRY STRUCTURE THAT EXIST IN OUR ECONOMY

2 TYPES OF INDUSTRY:
1. ON THE SIDE OF THE BUSINESS
INDUSTRY COMPETITORS: Companies competing for the same business
CUSTOMERS: The target market of the company in the industry
SUPPLIERS: The one who supply needed materials that is needed for
production or giving services to the customers of the company
NEW ENTRANTS: Same with industry competitors. This are the companies
who might enter the industry to compete with the existing companies.
SUBSTITUTES:Companies that provide a substitute to the product the industry
competitors are selling.
Ex.: Canned corn beef can be substitute for ground pork
COMPLEMENTORS: Companies that produce complementary products
Complementary products – are products that can make a thing as a whole or
something that can make a thing complete.
Ex.: Zipper, buttons, and many more

2. ON THE SIDE OF GOODS AND SERVICES BEING OFFERED

OIL AND GAS
EX.: Petron, Shell, Pryse Gas and others
BASIC MATERIALS
EX.: Food, clothes, etc.
INDUSTRIALS
EX.: steels, metals, aluminums
HEALTH CARE
EX.: Paanakan, Clinics, Private Hospitals
CONSUMER SERVICES
EX.: Salon, Spa
TELECOMMUNICATIONS
EX.: PLDT, Smart, Globe, Cable
UTILITIES
EX.: Water, Electricity
FINANCIALS
EX.: Loans, Insurance
TECHNOLOGY
EX.: Computers, appliances (tv, dvd player, refrigerator, etc.)
 BEHAVIORAL MANAGEMENT
From a production orientation to a leadership style focused on the workers human need for work-
related satisfaction and good working conditions.
Treat employees as important assets to achieve goals and makes them feel like part of a part of a
special group.
ELTON MAYO – he was a founder of human research movement. The management started
looking at employee satisfaction and working condition as a way to increase productivity.
MAYO’s Hawthorne experiment – the telephone line workers
Freedom to leave the workstations
Changes in pay rates
Company sponsored lunch
Defined as the way a person conduct themselves towards others
When workers are treated as human rather than machines, they respond to their particular work
situation in a positive way-by increasing productivity.
BMT is normally called the Human Relations movement because it addresses the human
dimensions of work.
BMT theories, a business organization as a psycho-social system with much emphasis on the
human side.
The Human Relations Experts believe that management should recognize the needs of employees
for recognition and social acceptance.
Notes: Versatile Managers need not have only technical skills but also human relation skills to
interact with their subordinates as human beings.

CLASSICAL THEORY OF MANAGEMENT

Planning, organizing, recruiting, directing and controlling etc. everything comes under the
responsibilities of Managers.
In early 90’s, when industrialization got boom, managers realized that there should some
scientific methods to increase productivity.

The Viewpoint of the Managers

Classical Management Theory

Scientific Bureauratic Administrative

Scientific Management also known as Tayrolism
FREDERICK W. TAYLOR (1859-1915) as a father of Scientific Management
First management thinker, taylor did the different experiment from which the event of
Bethlehem Steel Companies is well known.
The experiment was named as “Pig Iron”
Described managers function to plan and control and workers functions to do as they are
instructed.

Managers Workers

Plan and Control Follow Instructions

FRANKLIN (1868-1924) & LILIAN GILBERTH (1878-1972) – followed the concept of F.W
Taylor
Focused to cut unnecessary factors for the process of productivity and decrease the fatigue
in each part of the task.
“Therbligs” that is referred to hand, arm, body motions used at work.
The Psychology of Management was 1st published book by Liliab
Frank proved that the productivity can be increased up to three times by understanding the
motion studies
HENRY L. GANTT (1861-1919) is known as closest associated and is famous for his work of
Gannt Chart, used scientific tools or modern form of the GC. Helps Managers to control and
schedule every portion of the task.
Bureauratic Management
Public and private sectors Others posts
President V-President Managers Assistant that lies under a
Supervisor
Managers higher authority

HENRI FAYOL & MAX WEBER

Fayol a director in large French Coal Mining Firm, described the distinctive functions of
management that makes it different from other functions of business. However,
Max Weber a German Sociologist, described how authorities work and how an organization
should operateby dividing authorities. He was 1st focus on the Division of Labor in a clearly
defined hierarchy. All job descriptions, rules and regulations must be clearly defined at very initial
stage,
 Characteristics of Weber’s Ideal Bureauracy
1. Specialized Labor
2. Rules & procedures should be formalized
3. Application of rules & regulation sanctions must be impersonal
4. Authorities should be formalized into a hierarchical structure
5. The career advancement process should be totally or merit

Administrative Management
Organized things in a systematic matter.
Clearly defined task, division of labor and hierarchical structure of the organization.

HENRI FAYOL (1891-1925) he gave to perspective that planning, organizing, commanding,

coordinating, & controlling are the train functions of the administration.
14 Guidelines or Principles of Management
1. Division of Labor
2. Authority and Responsibilities
3. Discipline
4. Unity of Command
5. Subordination
6. Unity of Direction
7. Remuneration
8. Centralization
9. Scalar Chain
10.Order
11.Equity
12.Esprit de Corps
13.Initiative
14.Stability of Tenure

MEANING AND BASIC FUNCTIONS OF MANAGEMENT

MANAGEMENT
The process of dealing with or controlling things or people.
 FOUR BASIC FUNCTIONS OF MANAGEMENT

PLANNING
Creates a detailed action plan aimed at some organizational goal.

ORGANIZING
Determining how to distribute resources and organize employees according to the
plan.

LEADING
Motivating members of the organization to work in the best interests of the
organization.

CONTROLLING
Monitoring and correcting ongoing activities to facilitate goal attainment.

Functional
The functional structure is based on an organization being divided up into smaller groups with specific tasks
or roles. For example, a company could have a group working in information technology, another in marketing
and another in finance.
Divisional
This type of structure offers greater flexibility to a large company with many divisions, allowing each one to
operate as its own company with one or two people reporting to the parent company’s chief executive officer or
upper management staff.
One example of this is a company like General Electric. GE has many different divisions including aviation,
transportation, currents, digital and renewable energy, among others.
Matrix
A hybrid organizational structure, the matrix structure is a blend of the functional organizational structure
and the projectized organizational structure.
 The matrix structure is challenging because it can be tough reporting to multiple bosses and knowing what
to communicate to them. That’s why it’s very important for the employees to know their roles, responsibilities
and work priorities.

ADMINISTRATIVE SRUCTURE
An administrative organizational structure is a typically hierarchical arrangement of lines of authority. It
determines how the roles, power and responsibilities are assigned, and how the work process flows among
different management levels.

Four ways to identify more business opportunities

To be successful entrepreneurs we need to be continually innovating and looking for opportunities to

grow our business.

But how do you find new opportunities to take your business to new markets and growth levels? Here
are four ways to identify more business opportunities.

1. Listen to your potential clients and past leads

When you’re targeting potential customers listen to their needs, wants, challenges and frustrations with
your industry. Have they used similar products and services before? What did they like/dislike? Why did they
come to you? What are their objections with your products or services?

This will help you to find opportunities to develop more tailored products and services, hone your target
market and identify and overcome common objections.

2. Listen to your customers

When you’re talking to your customers listen to what they saying about your industry, products and
services. What are their frequently asked questions? Experiences? Frustrations? Feedback and complaints?

This valuable customer information will help you identify key business opportunities to expand and
develop your current products and services.
3. Look at your competitors

Do a little competitive analysis (don’t let it lead to competitive paralysis though!) to see what they doing and
more importantly not doing? Where are they falling down? What are they doing right? What makes customers
go to them over you?

Analysing your competitors will help you identify key business opportunities to expand your market reach and
develop your products and services.

4. Look at industry trends and insights

Subscribe to industry publications, join relevant associations, set Google alerts for key industry terms and news
and follow other industry experts on social media. Absorb yourself in your industry and continually educate
yourself on the latest techniques and trends.

How do you identify additional business opportunities?

Defining Vision, Mission, Goals and Objectives of an Organization

VISION- Big picture of what you want to achieve.

Ex: A vibrant rural economy driven by new and growing business.
MISSION- General statement of how you will achieve the vision.
Ex: To create new business and help existing businesses expand.
GOALS- General statement of what you want to achieve.
Goals shoul meet the following criteria.
•Understandable: Is it stated simply and easy to understand?
•Suitable: Does it assist in implementing a strategy of how the mission will achieve the vision?
•Acceptable: Does it fit with the values of the organization and its members/employees?
•Flexible: Can it be adapted and changed as needed?
Ex: Recruit local lenders interested and experienced in business creation.
OBJECTIVE- An objective turns a goal’s general statement of what is to be accomplished
into a specific, quantifiable, time-sensitive statement of what is going to be achieved and when
it will be achieved.
Objectives should meet the following criteria:
•Measurable: What specifically will be achieved and when will it be achieved?
•Suitable: Does it fit as a measurement for achieving the goal?
•Feasible: Is it possible to achieve?
•Commitment: Are people committed to achieving the objective?
•Ownership: Are the people responsible for achieving the objective included in the objective-
setting process?
Ex: Create a list of 20 individuals by Jan . 1

The Basic Functional Areas of Management in each Type of

Business Operation

Human Resource Management

Human resource management or personnel management or manpower management is concerned
with obtaining and maintaining of a satisfactory and satisfied workforce i.e., employees.
The recruitment, placement, induction, orientation, training, promotion, motivation, performance
appraisal, wage and salary, retirement, transfer, merit-rating, industrial relations, working
conditions, trade unions, safety and welfare schemes of employees are included in personnel
management.

Production Management
It refers to planning, organization, direction, coordination and control of the production function.

Office Management
Can be defined as “the organization of an office in order to achieve a specified purpose and to
make the best use of the personnel by using the most appropriate machines and equipment, the
best possible methods of work and by providing the most suitable environment”.

Financial Management
Can be looked upon as the study of relationships between the raising of funds and the deployment
of funds.

Marketing Management
“Process of planning and executing the conception, pricing, promotion and distribution of ideas,
goods and services to create exchange that satisfy individual and organizational objectives”.

Functional Area
Functions and information needed for functional areas:
Human Resource
 - The main functions of this functional area are recruitment, training, payroll etc. The
information needed for this functional area are the information about the employees, their
salary, about new vacancies, about new applications, employees in payroll, attendance, absence
and overtime details...etc.
Financial Area
- The main functions of Financial area are calculate the salary of employees, checking
payrolls, recording money received, produce invoices, checking the payments received and
chasing the overdue payments etc. In this functional area should have the information about
income of company, expense of the company, salary of each and every staff,times sheet of
work, attendance and overtime details...etc. They also need to have the customer's bills details,
payment received and bills payable details to the vendors.
Marketing and Sales
- The main functions of this functional area are Market the products through different
channels like radio, mail television, producing publicity materials of their products such as
catalogues etc., designing and promoting the website of company. This functional area should
have the information about new trend of market, in what way the company can get maximum
product, which is the good way to publish their product in market, in what way the company
can improve their sales etc.
Production
- The main functions of this functional area are buying raw materials, storing the raw
materials, planning the production schedule, Checking quality of product throughout the
production, packing the items cleanly and beautifully, storing the items very safely. The
information needed for this functional area are list of available raw materials, Combination
formula, Machinery and manpower availability, Quantity of each product to be manufactured
which in turn is reported by the feedback from sales and marketing area, product details like
batch number, packing...etc.
Customer Service
-The main functions of this functional are answering client's enquiries about products,
solve client's problems, dealing with the problems of customer, analysis the problems of
customer and store these problems etc. This functional area should have the information about
what range of customer they have, the customers are satisfied with their product or not, what are
the customer's need for a particular product etc.

SOCIAL TECHNOLOGY APPLIED IN BUSINESS

Social networks
  Keep connected through personal and business profile

Blogs/microblogs
 Publish and discuss opinions and experience

Ratings and reviews

 Rate and evaluate products, services, and experiences; share opinions

Social commerce
 Purchasing in groups, on social platforms, and sharing opinions

Wikis
 Search, create and adopt articles; rapidly access stored knowledge

Discussion forums
 Discuss topics in open communities; rapidly access expertise

Shared Work-spaces
 Co-create content; coordinate joint projects and tasks

Crowdsourcing
 Harness collective knowledge and generate collectively derived answers

Social Gaming
 Connect with friends and strangers to play games

Media and file sharing

 Upload, share, and comment on photos, videos, and audios

STRATEGIC PLANNING AND PROCESSES

STRATEGIC PLANNING:
Are the steps that you go through as an organization. It determines the direction of your business, what your
going to do and for whom, and someway measure it and guide you to reach your goal.

1. PASSION
One should be passionate enough to understand the business in order to solve some problems in an
organization. This will serve as your weapon towards your competitors. He should have complete
knowledge of all the things which determines the success of the business.
2. VISION
It is the picture of your business you ought to achieve. It is like a blueprint of the house. It becomes the
foundation of the business. This will help you determine the direction of your future. A vision statement is
a declaration of an organization's objectives, intended to guide its internal decision-making.
3. MISSION
It is your way of achieving your mission, your HOW. Your mission is the key driver of your success. A
mission statement is a short statement of an organization's purpose, identifying the goal of its operations:
what kind of product or service it provides, its primary customers or market, and its geographical region of
operation.
4. CLEAR GOALS
Refers to the setting up of goals to achieve the mission.
Collaborative (Goals should encourage employees to work together collaboratively and in teams)

Limited (Goals should be limited in both scope and duration)

Emotional (Goals should make an emotional connection to employees, tapping into their energy and passion)

Appreciable (Large goals should be broken down into smaller goals so they can be accomplished more quickly and easily
for long-term gain)

Refinable (Set goals with a headstrong and steadfast objective, but as new situations or information arise, give yourself
permission to refine and modify your goals)

5. WINNING STRATEGIES

After setting up of goals proceed with your winning strategies. Identify your strength, weaknesses,
opportunities and threats(SWOT analysis).

Strengths

 What advantages does your organization have?

 What do you do better than anyone else?

 What unique or lowest-cost resources can you draw upon that others can't?

 What do people in your market see as your strengths?

 What factors mean that you "get the sale"?

 What is your organization's Unique Selling Proposition (USP)?

Consider your strengths from both an internal perspective, and from the point of view of your customers and people in your
market.

Also, if you're having any difficulty identifying strengths, try writing down a list of your organization's characteristics. Some
of these will hopefully be strengths!

When looking at your strengths, think about them in relation to your competitors. For example, if all of your competitors
provide high quality products, then a high quality production process is not a strength in your organization's market, it's a
necessity.

Weaknesses

 What could you improve?

 What should you avoid?

 What are people in your market likely to see as weaknesses?

 What factors lose you sales?

Again, consider this from an internal and external perspective: do other people seem to perceive weaknesses that you don't
see? Are your competitors doing any better than you?

It's best to be realistic now, and face any unpleasant truths as soon as possible.
Opportunities

 What good opportunities can you spot?

 What interesting trends are you aware of?

Useful opportunities can come from such things as:

 Changes in technology and markets on both a broad and narrow scale.

 Changes in government policy related to your field.

 Changes in social patterns, population profiles, lifestyle changes, and so on.

 Local events.

Threats

 What obstacles do you face?

 What are your competitors doing?

 Are quality standards or specifications for your job, products or services changing?

 Is changing technology threatening your position?

 Do you have bad debt or cash-flow problems?

 Could any of your weaknesses seriously threaten your business?

6. MEASURABLE OBJECTIVES
A measurable business objective is something that can be quantitatively described.Measurable
objectives are statistically tabulated and can help a business determine how effective a particular approach,
product or service is performing from a number of different standpoints.
7. DEVELOPMENT OF TACTICS
This includes the different ways to achieve the set objectives. Setting upof targets and ways for efficient
functioning and management.
8. ACTION PLAN

An action plan is a document that lists what steps must be taken in order to achieve a specific goal. The purpose of
an action plan is to clarify what resources are required to reach the goal, formulate a timeline for when specific tasks need
to be completed and determine what resources are required. An action plan is a detailed plan outlining actions needed to
reach one or more goals. Alternatively, businessdictionary.com defines an action plan as a "sequence of steps that must be
taken, or activities that must be performed well, for a strategy to succeed". Implementation

CAREER OPTIONS IN THE DIFFERENT FUNCTIONAL AREAS OF MANAGEMENT

1. Human resource management:
Human resource development or personnel management or manpower management is concerned with
obtaining and maintaining of a satisfactory and satisfied work force i.e., employees. It is a specialized branch of
management concerned with ‘man management’.
The recruitment, placement, induction, orientation, training, promotion, motivation, performance appraisal, wage
and salary, retirement, transfer, merit-rating, industrial relations, working conditions, trade unions, safety and
welfare schemes of employees are included in personnel management. The object of personnel management is to
create and promote team spirit among workers and managers.
 Human Resources Career Options
The field of human resources management offers a rich set of potential career options. These include:
Recruiting and Placement Managers
Search for promising job candidates through advertisements, employment agencies, search firms, college
campuses, and even from competing firms. Recruiters tend to be more involved with the search process, while
interviewers talk to job applicants and administer and interpret tests. Some make the final hiring decisions. Others
are involved with internal placement, transfers, promotions and firings. Jobs include: recruiter, college recruiter,
interviewer, headhunter, test administrator, employment manager.
Development and Training Specialists
Analyze, plan, develop, coordinate, and conduct training and orientation for all levels in the organization.
Trainers help educate employees in necessary job skills and for advancement. They also create training manuals,
procedures, and training aids for the organization. Training programs can range from sales techniques to safety
issues, and from computer skills to team building. Jobs include: counselor, career planner, recruiter, junior training
specialist, senior training specialist, technical recruitment specialist, orientation specialist.
Compensation specialists
Develop and administer job evaluation systems; write job descriptions; manage wage and salary systems;
design and administer incentives, stock options, and deferred compensation; and conduct executive programs.
Jobs include: compensation analyst, salary administrator, executive compensation manager, compensation
manager, EEO administrator.
Benefit specialists
Benefit specialists provide information and counseling to employees concerning fringe benefits offered.
They also analyze benefit plan costs and effectiveness. Jobs include: benefits administrator, benefits planning
analyst, group insurance manager, employee assistance program manager.
Employee and Labor Relations Supervisors
Establish and maintain employee-management relationships. Employee relation specialists deal with
quality of work life programs and employee grievances; while labor relations specialists deal with union contracts,
negotiate collective bargaining agreements, and handle formal union-negotiated grievance procedures. Jobs
include: labor relations specialist, employee counselor, mediator, arbitrator, director of industrial relations.
Health, Safety, and Security Specialists
Develop health and safety programs; conduct safety inspections; collect accident data and report safety
records; prepare government reports; maintain contacts as needed with government security agencies like local
police and the federal Department of Homeland Security. Jobs include: safety specialist, security specialist,
industrial nurse, employee welfare managers.
Other HR Specialists
Work for private employment agencies, governmental agencies, executive search firms, outplacement
firms, HR consulting firms. Jobs include: human resource information system specialist, employee assistance
counselor, employee assistance program manager, employee communications director, equal employment
opportunity representative, affirmative action coordinator, outplacement consultant.

2. Production management:
Production management refers to planning, organization, direction, coordination and control of the
production function in such a way that desired goods and services could be produced at the right time, in right
quantity, and at the right cost. Some authors treat material, purchase and inventory management as part of
production management.
(a) Product planning and development,
(b) Plant location, layout and maintenance,
(c) Production systems and machines,
(d) Management of purchase and storage of materials,
(e) Ensuring effective production control.
Careers in Production Management
There are a wide variety of career options in the field of operations management. Some key opportunity areas are:
 Operations Manager
The operations manager is focused on optimizing general corporate infrastructure by monitoring and changing
the work environment, vendor selection, supply chain management, real estate and budgets.
Materials Manager
Stores a product through all phases from production to finished goods, shipping between departments,
transportation to distribution centers, warehouses, and customers. Materials mangers must insure that the firm has
the right item, at the right time, for the right price. This holds for both good and services. For services, the
emphasis is on ordering, receiving, storing and distributing any resources required to perform the service. Jobs
include: traffic manager, warehouse manager, logistics manager, materials manager.
Purchasing Manager
Buys the goods and services, raw materials, and supplies required by the firm for its operation. They
coordinate the quantity, quality, price, and timing delivery appropriate for the firm's needs. Every firm makes
certain purchases each day. Basically every sector deals with purchasing: public and private. Purchasing people
spend on average, half of the income of the firm for which they work. Jobs include: expediter, buyer, purchasing
agent, purchasing manager.
Industrial Production Manager
Coordinates the activities of production departments of manufacturing firms. They are responsible for the
production scheduling, staffing, quality control, equipment operation and maintenance, inventory control, and
coordinating the unit's activities with that of the other departments. Jobs include: line supervisor, manufacturing
manager, production planner, production manager.
Operations Research Analyst
Decides on the best allocation of resources within an organization or system. Resources include time,
money, people, space, and raw materials. They might also compare competing research projects to determine
what one performs best on time, results, and cost given a fixed set of resources and recommend what project to
keep and what project to drop. Jobs include: industrial engineer, systems analyst, office manager, and forecaster.
Quality Assurance Manager
Works on the prevention of product deficiencies through prevention, detection, and correction. They
ensure that production goals and quality are met. They might sample, inspect, and test operations and set
standards. With the advent of the Malcolm Baldridge Award many of these manager are part of a firm's total
quality management strategic initiatives. Jobs include: quality assurance manager, inspector, and technician.
Facilities Coordinator
Designs the physical environment of a company. Work on building design, furniture and associated
equipment.
Logistics Manager
Responsible for supply chain management in a key area of the corporation. Focused on efficiency and accuracy
in receiving and shipping goods. Highly process focused.

3. Office management:
Office management can be defined as, “the organization of an office in order to achieve a specified purpose and
to make the best use of the personnel by using the most appropriate machines and equipment, the best possible
methods of work and by providing the most suitable environment.”
The main topics of office management are: office accommodation, layout and environment, communication,
handling correspondence and mail, typing and duplicating, record management and filing, indexing, forms and
stationary, machines and equipment, O & M, office reporting, work measurement and office supervision.
Career options in Office Management
Receptionist
Receptionists manage the front of an office, greeting clients, suppliers and visitors as well as directing
phone calls, emails and mail. Other responsibilities may include managing appointments and meeting room
bookings, keeping the front desk tidy, providing administrative support, creating documents or reports, data entry,
arranging travel, managing stationery and other stock, and ad hoc tasks.

Administration assistant
Administration assistants cover a wide variety of tasks and responsibilities depending on the business’s
requirements. Administration assistants may be required to prepare, file or archive documents, sort the mail, send
mail or other communication to clients, answer phones or manage stock, as well as fulfil general office and ad
hoc tasks. Administration assistants may also be required to organize and manage events for staff or external
stakeholders.
Office manager
Generally, office managers are responsible for organizational and other office duties necessary to
effectively and efficiently run a business. Tasks include filing and integrating information to be used by staff and
clients, managing internal staff and external client communications, maintaining office equipment and supplies,
taking care of mail and banking, and managing invoicing and payroll. IT skills are also highly regarded as office
managers are often required to provide IT support to other staff members.

Virtual assistant
Virtual assistants (VAs) provide remote freelance or contract administration or personal assistance support
to small businesses. This job is perfect for experienced administration staff who want to run their own business
from home. Virtual assistants usually manage tasks such as invoicing and processing payments, distribution of
products, creating documents and reports, handling email enquiries and any other administrative tasks that can be
managed by email or online.
.
Specialist areas
There are also specialist administration roles such as legal or medical administration staff. These roles
require specialized knowledge of terminology and procedures unique to the law firm or medical center
environment. Legal secretaries may be required to prepare correspondence and legal papers such as motions,
complaints, summonses and subpoenas under the supervision of an attorney. Administration staff in medical
practices need to be familiar with hospital or laboratory procedures, record-keeping, insurance rules and billing
practices.

Executive Secretary
Executive secretaries provide many types of support to corporate executives and other high-ranking
managers. Their duties are similar in nature to those carried out by traditional administrative assistants or
secretaries, but executive secretaries do less clerical work. Instead, they may carry out such tasks as conducting
research, preparing reports, creating spreadsheets and managing schedules.

4. Financial management:
Financial management can be looked upon as the study of relationship between the raising of funds and
the deployment of funds. The subject matter of financial management is: capital budgeting cost of capital,
portfolio management, dividend policy, short and long term sources of finance. Financial management involves
mainly three decisions pertaining to:
1. Investment policies:
It dictates the process associated with capital budgeting and expenditures. All proposals to spend money are
ranked and investment decisions are taken whether to sanction money for these proposed ventures or not.
2. Methods of financing:
A proper mix of short and long term financing is ensured in order to provide necessary funds for proposed ventures
at a minimum risk to the enterprise.
3. Dividend decisions:
This decision affects the amount paid to shareholders and distribution of additional shares of stock.
Career options in Financial Management
Branch Managers
Branch managers of financial organizations administer all the functions of a branch office, from hiring
personnel to assisting customers with accounts, approving loans and lines of credit, and establishing a rapport
with the community to build business.
Cash Managers
Cash managers supervise the flow of cash receipts and disbursements to meet the investment and business
needs of their company.
Financial Controllers
Controllers oversee the preparation of financial reports that review and preview the organization's
financial position. They also prepare special reports required by regulatory authorities. Often, controllers oversee
the accounting, audit, and budget departments.
Credit Managers
Credit managers are in charge of their firm's issuance of credit, and all policies and procedures surrounding
it.
Directors and Managing Directors
Directors and managing directors (MDs) focus on corporate finance. MDs develop and cultivate
relationships with various companies in order to generate corporate business for the firm. MDs typically specialize
in one specific industry, to develop relationships among management teams of companies.
International Finance Managers
Managers specializing in international finance develop financial and accounting systems for the banking
transactions of multinational organizations.
Risk and Insurance Managers
Risk and insurance managers work to reduce risks and losses that may arise from business operations and
financial transactions undertaken by their company. They also manage the organization's insurance budget.
Treasurers and Finance Officers
Treasurers and finance officers manage the investment of funds and handle associated risks, oversee cash
management activities, carry out capital-raising strategies to support a firm's expansion, and supervise mergers
and acquisitions.
Some companies may hire financial managers on a temporary basis or hire financial management consultants for
all their accounting and financial operations.

5. Marketing management:
American Marketing Association defines marketing management as the “process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy
individual and organizational objectives.”
The course content of marketing management generally includes: marketing concept, consumer behaviour,
marketing mix, market segmentation, product and price decisions, promotion and physical distribution, marketing
research and information, international marketing etc.

Marketing Career Opportunities:

Marketing Specialist
 One of the most common types of marketing jobs is Marketing Specialist. The Marketing Specialist designs
and creates marketing campaigns that support the growth of a company’s products and services. They are
responsible for researching current marketing trends and determining which types of products or services are in
demand by the consumer. Marketing Specialists develop sales presentations and provide reports based on
information collected such as marketing trends, competition, new products, and pricing.

Social Media Manager

The Social Media Manager manages a company’s social media marketing campaign. This involves
ensuring that social media accounts are updated on a regular basis with relevant content and posts. The goal of
the Social Media Manager is to develop brand awareness as well as generate leads or sales. They are responsible
for actively engaging social media followers and influencers within the social media channel. Social Media
Managers track and report social media trends and engagement, and adjust their efforts accordingly.

Search Engine Optimization Specialist

 The Search Engine Optimization Specialist is responsible for improving search engine rankings for
websites. They select appropriate keywords to target in their search engine optimization efforts, and optimize
websites using a variety of SEO tactics. The website optimization process primarily consists of writing keyword-
centric content, as well as optimizing page titles, header tags, alt tags, and meta tags. They also ensure that the
overall design of a website enhances the user experience. SEO Specialists then analyze the effectiveness of the
SEO campaign, and adjust their strategy accordingly.

Email Marketing Manager

The Email Marketing Manager is responsible for marketing a product or service via email marketing
campaigns. They are also responsible for managing the list of email contacts for a company, as well as creating
the marketing materials that will be sent to a customer. Once an email campaign has begun, the Email Marketing
Manager must assess its effectiveness and adjust future campaigns accordingly.

Web Content Writer

 Web Content Writers specialize in providing relevant content for websites. They write blog posts,
marketing copy, and other forms of content for the web. The goal of a Web Content Writer is to increase the
number of website visitors by targeting specific keywords related to the products or services their company offers.

Web Producer

A Web Producer is responsible for creating and implementing the digital content of a website. They often
work with a content writing team to decide which content will appear on the website. The content they are
responsible for isn’t limited to copy; they are also typically responsible for creating and implementing graphics,
audio, and video. The goal of the Web Producer is to improve user experience for website visitors.
Product Manager

Product Managers oversee the development of a product from start to finish. They build products from
existing ideas, and develop new ideas based on industry experience and contact with customers and prospects.
The Product Manager is responsible for ensuring that a product is completed on schedule and within budget. Their
primary goal is to increase the profitability of existing products and develop new products for a company.

Marketing Analyst
 The Marketing Analyst is responsible for analyzing an organization’s marketing campaigns. They study
and evaluate market trends, and report their findings to the marketing team. They gather information and examine
buying trends to help create marketing plans for companies. The Marketing Analysts main goal is to determine
which products or services to sell and how to sell them.
Advertising Coordinator

Advertising Coordinators support marketing efforts and assist with marketing projects for print and
electronic media. They are responsible for devising and coordinating advertising campaigns that entice consumers
to purchase the goods or services of their company or client. They coordinate the scheduling of ads and product
promotions, maintain and update a customer database, and offer support to the sales staff.
hinge session

WHAT IS SYNERGY
▶ Synergy is the concept that the value and performance of two companies combined will be
greater than the sum of the separate individual parts.
▶ The english word "synergy" may sound like an overwrought business, buzzword but its actually
classical in origin. It comes from the Greek roots "sun" (meaning "together") and "ergun" (
meaning "work").
MERGERS AND ACQUISITIONS (M&A)
▶ Are made with the goal of improving the company's financial performance for the shareholders.

TYPES OF SYNERGY

OPERATING SYNERGY
▶ When the combined value of two firms is greater than the sum of separate firms apart and, when
the combined firm allows for the firm to increase their operating income and achieved higher
growth it is termed as "Operating Synergy".
FINANCIAL SYNERGY
▶ Financial synergies are most often appraised in the context of mergers and acquasition, but
latest strategic alliances include strategic partnerships.

MARKETING SYNERGY
▶ Marketing synergy implies that the marketing-mix makes for overall effectiveness.
SYNERGY BIAS
▶ The quest of synergy often distracts managers' attention from the nuts and bolts of their
businesses.

TEAMWORK
When everyone in the workplace works together to accomplish goals, everyone achieves more.
The ability to work as part of a team is one of the most important skills in today’s job market.

Teamwork involves building relationships and working with other people using a number of
important skills and habits:

• Working cooperatively

• Contributing to groups with ideas, suggestions, and effort

• Communication (both giving and receiving)

• Sense of responsibility
• Healthy respect for different opinions, customs, and individual preferences
• Ability to participate in group decision-making

WHAT IS COLLABORATION?
▶ Collaboration is a working practice whereby individuals work together to a common purpose to
achieve business benefit.

SYNCHRONOUS
▶ Where everyone interacts in real time, as in online meetings, through instant messages or via
Skype.
ASYNCHRONOUS
▶ Where the interaction can be time-shifted, as when uploading documents or annotations to
shared workspaces or making contributions to a wiki.

Collaboration at the Conceptual Level, involves:

Awareness - We become part of a working entity with a shared purpose.

Motivation - We drive to gain consensus in problem solving or development.

Self-synchronization - we decide as individuals when things need to happen.

Participation - We participate in collaboration and we expect others to participate.

Mediation - We negotiate and we collaborate together and find a middle point.

Reciprocity - We share and we expect sharing in return through reciprocity.

Reflection - We think and we consider alternatives.

Engagement - We proactively engaged rather than wait and see

What is Competitive Advantage?

- a competitive advantage is an advantage over competitors gained by offering consumers
greater value, either by means of lower prices or by providing greater benefits and service that
justifies higher prices.
To create a competitive advantage, you've got to be clear about these three determinants:
1. BENEFIT- What is the real benefit your product provides? It must be something that your
customers truly need and that offers real value. You must know not only your products features,
but also its advantages how they benefit your customers.
2. TARGET MARKET- Who are your customers? What are their needs? You've got to know
exactly who buys from you, and how you can make their life better.
3. COMPETITION- Have you identified your real competitors? That's more than just similar
companies or products. It includes anything else your customer could do to meet the need you
can fulfil.
To be successful, you need to be able to articulate the benefit you provide to your target market
that's better than the competition.
Just because a company is the market leader now, doesn't mean it will be forever. A company
must create clear goals, strategies, and operations to build sustainable competitive advantage.
Porter outlined the three primary ways companies achieve a sustainable advantage. They are
cost leadership, differentiation, and focus. Porter identified these strategies by researching
companies.
PORTER'S GENERIC STRATEGIES
COST LEADERSHIP
-means companies provide reasonable value at a lower price. Firms do this by continuously
improving operational efficiency. That usually means paying their workers less.
DIFFERENTIATION
-means companies deliver better benefits that anyone else. A firm can achieve differentiation by
providing a unique or high-quality product. A company with a differentiation strategy can
charge a premium price. That means it usually has a higher profit margin.
FOCUS
-means the company's leaders understand and service their target market better than anyone
else. They either use cost leadership or differentiation to do that. The key to focusing is to
choose one specific target market. They target local small businesses or high net worth
individuals.

Social Responsibility
Social responsibility is the idea that businesses should balance profit-making activities with activities
that benefit society. It involves developing businesses with a positive relationship to the society in which
they operate. The International Organization for Standardization (ISO) emphasizes that a business's
relationship to its society and environment is a critical factor in operating efficiently and effectively.

Social responsibility means that individuals and companies have a duty to act in the best interests of
their environments and society as a whole. Social responsibility, as it applies to business, is known as
corporate social responsibility (CSR). Many companies, such as those with "green" policies, have made
social responsibility an integral part of their business models.

In general, social responsibility is more effective when a company takes it on voluntarily, as opposed to
being required by the government to do so through regulation. Social responsibility can boost company
morale, and this is especially true when a company can engage employees with its social cause.

The key features of Carroll's CSR Pyramid are that:

CSR is built on the foundation of profit – profit must come first
Then comes the need for a business to ensure it complies with all laws & regulations
Before a business considers its philanthropic options, it also needs to meet its ethical duties

Carroll's CSR Pyramid

 The four responsibilities displayed on the pyramid are:

 ECONOMIC

This is the responsibility of business to be profitable

Only way to survive and benefit society in long-term

 LEGAL

This is the responsibility to obey laws and other regulations

E.g. Employment, Competition, Health & Safety

 ETHICAL
This is the responsibility to act morally and ethically
With this responsibility, businesses should go beyond narrow requirements of the law
E.g. Treatment of suppliers & employees

 PHILANTHROPIC

This is the responsibility to give back to society

The responsibility is discretionary, but still important
E.g. charitable donations, staff time on projects

Responsibility of a Business towards Different Sections of Society

Major responsibility of business towards different sections of society is as: Employees, Owners, Consumers,
Government, Shareholders, Community, and Environment.

Business depends on society for inputs like money, men, and skills and also for market where products have to
be sold to the customers. The business depends on society for existence, sustenance and encouragement.
Being so much dependent on society, business also has a definite responsibility towards different segments of
society. Though profit making is one of main objectives of business but it has to satisfy employees, consumer,
government, community, shareholders also.

1. Employees:
No Enterprise can succeed without the whole-hearted cooperation of the employees. Responsibility of
business towards employees is in the form of training, promotion, proper selection, fair wages, safety,
health, worker’s education, comfortable working conditions, participation management etc.
 The employees should be taken into confidence while taking decisions affecting their interests. The
workers should be offered incentives for raising their performance. Mental, physical, economic and
cultural satisfaction of employees should be taken care of. If business looks after the welfare of
employees then they will also work whole heartedly for the prosperity of business.

2. Owners:
Business is accountable towards owners as well as managing business profitably, ensuring fair and
regular return on capital employed, consolidating financial position of business, guaranteeing capital
appreciation so as to enable the owners to withstand any business contingencies.

3. Consumers:
Responsibility of business towards consumer extends to:

 Product:
Quality goods should be produced and supplied. Distribution system should make goods easily
available to avoid artificial scarcities and after sales service should be prompt. Buying capacity and
consumer preferences should be taken into consideration while deciding the manufacturing policies.
The care must be exercised in supplying the goods of quality which has no adverse effect on the
health of consumers.

 Marketing:
To avoid being misled by wrong claims about products through improper advertisements or
otherwise, the consumer should be provided full information about the products including their
adverse effects, risks and care to be taken while using the products.

Consumers all over the world are, by and large, dissatisfied because the performance of
businessman is far from satisfactory. Consumer is not the king in our country but a vehicle used by
businessmen for driving towards the goal of profit maximisation.

As a result of which the concept of ‘consumerism’ has come up to protect the rights of consumers.
Even the government is interfering in a big way to protect the interests of consumers.

4. Government:
A number of legislatives are formed from time to time by the government for proper regulation and
control of business. Businessmen should comply with all legal requirements, execute government
contracts, pay taxes honestly and in time, make services of executives available for government, suggest
measures and send proposals to enact new laws for the business.

A number of taxes are imposed on business for collecting revenue. Businessmen should pay various
taxes in time and help government in collecting funds. They should not resort to tax evasions rather
declare their incomes honestly and correctly.
But series of raids conducted on business houses clearly show that businessmen have failed to discharge
their responsibility towards government.

5. Shareholders:
Shareholders who are the owners of business should be provided with correct information about
company to enable them to give them true and fair position of the company to enable them to decide
about further investments.

Company should provide a fair return on the investment made by shareholders. If shareholders do not
get proper dividend then they will hesitate to invest additional funds in the concern. Shareholders should
 be kept fully informed about the working of the company for healthy growth of the business. The
Companies Act 1956 also requires company to give full disclosure in the published statements.

Company should strengthen the share prices by its growth, innovation and diversification. At the same
time shareholders shall also offer wholehearted support and co-operation to the company to protect their
own interests.

6. Community:
Responsibility of business towards community and society includes spending a part of profits towards
civic and educational facilities. Every industrial undertaking should take steps to dispose of Industrial
wastes in such a way that ecological balance is maintained and environmental pollution is prevented.

Rehabilitating the population displaced by business units should also De part of responsibly of business?
Business houses should set up units at those places where sufficient space is available for housing
colonies of workers. The promotion of small scale industries will help not only nation but will also help
in building up a better society.

7. Environment:
Business should protect the environment which has acquired great importance all over the world.
Business can discharge the responsibility of protecting environment in following way:

 Preservation of Natural Resources:

Scarce natural resources should be used very carefully as these are depleting at a very fast rate.
The alternative sources can also be found out to save natural resources like to save forests
alternative to wood and pulp can be found, the use of coal can be reduced by alternative source
of energy.

 Pollution Control:
Appropriate steps should be taken to prevent environmental pollution and to preserve ecological
balance. The industrial waste should be disposed off carefully or if possible can be recycled to
minimise pollution. The toxic wastes, excessive noise, chemical pesticides, automobile exhaust
etc. need to be checked from time to time.

Social Enterprise
Organization (non-profit or for-profit) that imbed both social purpose and business purpose into
their organization.

7 Principle of Social Business

Cause-driven - a social enterprise is a business without a profit maximization purpose where the
objective and purpose is to overcome or alleviate a global or local issue such as poverty
education, health, technology, access or the environment.
Financial economic sustainability - as any other business, financial numbers cash flow must be
in line with what is expected an sustainable in the long-term.
Investor return - investors will receive a return on their investment amount only on dividend.
Investor must only receive back what they put in.
The profit generated stays in the company - once the investment are paid back, profit will stay
with the company for expansion and improvements.
Gender sensitivity and environmentally conscious - tackling gender discrimination an inclusion
is vital as well as intergrating environment impact actions.
Workforce will receive market wage an better working conditions - more emphasis on well-
being at the workplace is given, fostering long-term relationships with employees and striving
for their business.
Joy in theirwork - business that work for a purpose of helping a cause or it with joy