Introductory Module for Training

By: Dr. Ashok Chopra

Management: is the process of 5 important functions in an organization
 Planning ----- Setting objective or goals, establishing an overall strategy, and developing a comprehensive hierarchy of plans to
integrate and coordinate a) It is concerned, with ends (what is to be done) and with means (how it is to be done)

 Organizing --- Organization structure required and suitable to achieve the above objectives
 Staffing --- HRM (Planning, selecting, inducting, compensating, training & Dev, Motivating, handling grievances, abiding &
reporting to law prevailing in the country.

 Leading --- Leadership/Managership.

 Controlling --- Setting systems, rules, regulations & procedures.
The efficient and effective use of Resources of an organization to achieve its objectives.
In the last 3 decades, 4 important things have happened which has changed the
business world and these are:
1. Globalization.
2. Communications
3. Technology &
4. Trade
This has made world a small village and brought fierce competition to the core.
 Strategy: is a long term plan keeping in mind business environment & the
competitor. (Business environment is to understand your PESTELE which stands for Political,
Economic, Social, Technological, Environmental, Legal & Ethical, these are Macro Economic parameters
which individual and organizations can’t control)
 Tactics: Series of short term plans deployed to achieve strategy (these are
Micro Economic parameters which are broadly under the control of
organization)
COMPARING BUSINESS AND MILITARY STRATEGY
A Strong Military Heritage Underlies the Study of Strategic Management
1. Term such as objectives, mission, strengths, and weaknesses were first formulated to address problems on
the battlefield. In many respects, business strategy is like military strategy, and military strategists have
learned much over the centuries that can benefit business strategists today.
2. Both business and military organizations must adapt to change and constantly improve to be successful.
Too often, firms do not change their strategies when their environment and competitive conditions dictate
the need to change.
3. Strategic management must not become a self-perpetuating bureaucratic mechanism. Rather, it must be a
self-reflective learning process that familiarizes managers and employees in the organization with key
strategic issues and feasible alternatives for resolving those issues.
4. Strategic decisions require trade-offs such as long-range versus short-range considerations or maximizing
profits versus increasing shareholders’ wealth.
 Comprehensive Strategic Management Model

External
Audit

Chapter 3

Vision Strategy Implement

Strategies Implement Measure &
& Analysis Strategies:
In Strategies: Evaluate
Mission & Marketing, Performance
Statements Action Mgmt Issues
Fin/Acct,
Choice
R&D, CIS

Internal
Audit

Ch.
6-4
What is the Span of Control?
 The number of people who report to one manager in a hierarchy
 The more people under the control of one manager - the wider the span of
control
 Less means a narrower span of control
Factors Affecting the Span of Control
 Capacity Of Superior.
 Capacity Of Subordinate.
 Nature Of Work.
 Degree Of Decentralization.
 Degree Of Planning.
 Communication Technique.
 Use Of Staff Assistance.
 Supervision From Others.
 Line Function.
 Staff Function.
 Line Manager & Staff.
 “Line functions are those functions which have direct responsibility for accomplishing
the objectives of the enterprise”
 while staff “refers to those elements of the organization that help the line to work
most effectively in accomplishing the primary objectives of the enterprise.” (Those who
accept this definition of line authority, immediately consider production and sales or marketing as line
functions whilst accounting, personnel purchasing and quality control are considered as staff functions.
Purchasing and quality control become an auxiliary functions.)
 The Line manager have the following objections against the staff people:
 (1)Undermining the Line Authority: Line official frequently feel that the existence of staff authority
undermines line authority. It is presumed by the top management that line officers lack knowledge,
competence and development attitudes. It creates frustration in the minds of line officers.
 (2) Staff tends to Assume Line Authority: Line executives frequently feel that the staff people encroach
upon their rights and prerogatives. It creates discontent in their minds.
 (3)Advice not Always Sound: It is also a general complaint from the managers that the advice of staff is
only theoretical and unrealistic. It is not balanced and practicable.
 (4) Credit goes to Staff Personnel: It is also a general complaint that there is a tendency of staff to assume
credit of successful programs & to lay the blame on line executive in case they are not successful
 Line managers have total authority over those who report directly
to them,
 But staff workers have primarily advisory authority.
 Their function is to create, develop, collect and analyze shop
information, which flows to line workers in the form of advice.
What is Marketing?
Process of identifying human needs & wants,
converting them into products, goods,
services & ideas. Further creating demand for
these Products, goods, services & ideas
through customer satisfaction.

Simply put: Marketing is the delivery of

customer satisfaction at a profit.

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 Goods  Places
 Services  Properties
 Events  Organizations
 Experiences
 Information
 Persons
 Ideas

What is Marketed?
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 Marketing Mix and the Customer
Four Cs
Four Ps
 Customer solution
 Product
 Customer cost
 Price
 Convenience
 Place
 Communication
 Promotion
 Three Ps of Services
 People
 Process
 Physical Evidence
 Packaging (Silent P)

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 Core Marketing Concepts
(Fig. 1-1)
Needs, wants,
and demands

Markets Products
and services

Exchange, Value,
transactions, satisfaction,
and relationships and quality
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What are Consumer’s Needs, Wants and Demands?
 Needs - state of felt deprivation for basic items such as
food and clothing and complex needs such as for
belonging. i.e. I am hungry.
 Wants - form that a human need takes as shaped by
culture and individual personality. i.e. I want a
hamburger, French fries, and a soft drink.
 Demands - human wants backed by buying power. i.e. I
have money to buy this meal.

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 If the SP of Product SP = 100 (What would be its manufacturing Cost)
 MFC = 20
__________________
Distribution = 80
____________________
20 20 20
Manufacturing Cost Reg. Distributor National Whole seller
MFC = 20
20 GM/GP = 20
Local Retail Customer FC = 10-11
VC = 2-3
BD = 2-3
_________________
20 – 14 & 20 – 17 = 3-6% is NP/N< = 14-16
___________________
 If MFC = 20
 RMC = 4 – 6
 ______________

SCC = 14-16
_________
 11.00
 11.90
_______
22.90 = 23.00 100 – 23 = 77% of 20 = 15.40