Directing Management function...

 Directing...

                             

Directing Management function..

                               

Directing means to show direction to the workers so that they can achieve their goals efficiently and effectively. It is the process in which manager gives instructions about how work should be done and motivates them in achieving organisational goals.

           In Direction those activities are included which guide, encourage the subordinates in their work.Directing is the process of providing direction to reach in the destination (organization goals). Without directing function each worker perfom work in their own way so there is difficulty in maintain discipline.

               In Management managers join hands to achieve organisational goals.,for this purpose they plan,organise,direct, control resources to achieve specific goals that's why directing function is very important in every management,so the work is perform according to organisational plans.

Directing is provided in many ways...

1) Issuing orders

2) Motivating subordinates

3) Supervision in overall manner

4) Time to time communication with subordinates

          Elements of Directing...

a) Supervision-It means see the progress of subordinates in their routine work and if there is any fault guide them for improvement,it is face to face contact between superior and workers.

b) Leadership-It refers to influence others in such a manner to do work what the leader want them to do.Leadership is the process by which an executive can direct guide and influence the behaviour of work of others towards the accomplishment of specific goal.Leadership is the ability of manager to induce the subordinates work with confidence.

c) Motivation- Motivation is also one of the most important element of directing,in Motivation superior encourage subordinates in performing work in best way .They motivates subordinates through monetary and non-monetary incentives.

         
 Highlights of Directing....

  

1) Directing encourage action..

2) Perfom continuously.

3) Perfomed in every level .

4) Directing flow from top to bottom.

5) Performance oriented.

6 ) Facilitate control.

7) Motivate Employees.

8) Effective utilisation of resources.

9) Helps in maintain discipline...

  Business Risk Arises due to Pandemic...

                      

                         Fear of Corona..

                                

Due to Pandemic situation all the business are very much affected, due to this many risks are arises on business these are...

1) Online business is run rapidly-Due to Pandemic situation people not go outside and purchase the goods due to the fear of corona and follow social distance rule they like online business just give order and get their product at home .So other business are very much affected.They have no buyer to buy their products.Online business run rapidly.

2) Risk of Unsold stock of goods-Due to Pandemic buyers not go outside and purchase the goods so the stock of goods remains unsold lying with sellers.

3) Risk of block of capital- Due to not sold of goods risk of block of  capital in stock .So  traders not have sufficient cash in hand to make payment like interest payment of loan , payment for stock purchase, salary payment etc due to insufficient cash trader had to take loan for day to day expenses.Due to Pandemic financial risk are much arises.

4) Risk of No rotation of money-Pandemic leads to decrease sales so their is no cash in traders hand .Due to decrease in sale money rotation is stopped.So every businessmen is in great difficulty,and take heavy stress.

                       

                  Risks Arises due to Pandemic..

महामारी के कारण जोखिम उठा ...

 महामारी की स्थिति के कारण सभी व्यवसाय बहुत अधिक प्रभावित होते हैं, इसके कारण व्यापार पर कई जोखिम उत्पन्न होते हैं ...

 1) ऑनलाइन व्यापार तेजी से चलाया जाता है-महामारी की स्थिति के कारण लोग बाहर नहीं जाते हैं और कोरोना के डर के कारण सामान खरीदते हैं और सामाजिक दूरी के नियम का पालन करते हैं, वे ऑनलाइन व्यापार को केवल ऑर्डर देना चाहते हैं और घर पर अपना उत्पाद प्राप्त करते हैं। अन्य व्यवसाय बहुत हैं।  बहुत प्रभावित हुए। उनके पास अपने उत्पादों को खरीदने के लिए कोई खरीदार नहीं है। व्यापार तेजी से चलता है।

 2) सामानों के अनसोल्ड स्टॉक का जोखिम-महामारी के कारण खरीदार बाहर जाकर सामान नहीं खरीदते हैं, इसलिए सामानों का स्टॉक विक्रेताओं के पास पड़ा रहता है।

 3) पूँजी के ब्लॉक का जोखिम- स्टॉक में पूँजी के ब्लॉक के माल के जोखिम के कारण नहीं बेचा जाता है। कुछ व्यापारियों के पास पर्याप्त नकदी नहीं होती है ताकि वे ऋण का ब्याज भुगतान, स्टॉक खरीद के लिए भुगतान, वेतन भुगतान आदि अपर्याप्त होने के कारण भुगतान कर सकें।  नकद व्यापारी को दिन-प्रतिदिन के खर्च के लिए ऋण लेना पड़ता था। महामारी के कारण वित्तीय जोखिम बहुत अधिक उत्पन्न होते हैं।

 ४) पैसों की कोई रोटेशन के जोखिम-महामारी ने बिक्री को कम करने की ओर ले जाता है, इसलिए व्यापारियों के हाथ में कोई नकदी नहीं है। बिक्री में कमी के कारण पैसे के रोटेशन को रोक दिया जाता है। इसलिए हर व्यवसायी बड़ी मुश्किल में है, और भारी तनाव ले रहा है।

"अच्छा भाग्य, अच्छी योजना का परिणाम है। " Good luck is the result of good planning.."

           "अच्छा भाग्य अच्छी योजना का परिणाम है"

अच्छा भाग्य अच्छी योजना से मिलता है कई लोग बस भाग्य के भरोसे बैठे रहते हैं कि अगर भाग्य में होगा तो मिलेगा कोई मेहनत नहीं करते लेकिन बिना मेहनत के कुछ भी नहीं मिलता किसी भी काम में सफलता हासिल करने के लिए हमें पूरी योजना बनानी पड़ती है उस योजना पर चलना होता है तब हमें अच्छा भाग्य मिलता है अर्थात तात्पर्य यह है कि अच्छा भाग्य बनाने में हमारे खुद का हाथ है हमारी खुद की मेहनत है उदाहरण के लिए जैसे बहुत गरीब लड़का मजदूरी करके जैसे तैसे अपना पेट पालता है फिर योजना बनाकर बहुत मेहनत करता है कठिन परिश्रम करता है पढ़ाई में दिन रात एक करता है और एक दिन एक बड़ा व्यापारी बनकर अपना भाग्य बदल देता है योजना  बनाकर कठिन परिश्रम कर हम अपने भाग्य को बदल सकते हैं बस जरूरत है तो अच्छी योजना की और उस पर अमल करने की.

       "अच्छा भाग्य अच्छी योजना का परिणाम है"


अच्छा भाग्य अच्छी योजना का परिणाम है इसके दो पहलू हैं दूसराा पहलू है की अच्छा भाग्य बुरा भाग्य नसीब से मिलता है अच्छा भाग्य होनेे स मनुष्य बड़े कुल में जन्मम लेता जहां उसे सब सुख सुविधाएं होती हैं इसके विपरीत अगर भाग्य अच्छा नहींं है ,वह गरीब घर मेंं जन्म लेता है जहां उसे दो वक्तत का खाना भी नसीब नहीं होता है, हमाारी आगेे की योजना भाग्य के अनुसार निर्धारित होती है, जैसी बड़े घर में जन्म लेने वाला सब सुख सुविधाओं होने पर उसकी आगेे की योजना उसे उससे और ऊपर उठने की होती है, इसके विपरीत एक गरीब की योजना बस दोो वक्त रोटी की और पक्क्का मकान बनाने की होती है अर्थात योजना भाग्यय के अनुसार निर्धारित होती है, लेकिन भाग्य को अच्छा बनानेे में हमारा खुद का हाथ होता हैअगर हम कर्मशील होकर दिन रात मेहनत करते हैं कठोर परिश्रम करतेे हैं तभी हम अपने भाग्य को सौभाग्य्य में परिवर्तित कर सकते हैं.

Planning process https://commerceclasses86.blogspot.com/2020/05/planning-process.html

Business Planning https://commerceclasses86.blogspot.com/2020/05/business-planning.html

Controlling Management function..

 Controlling...

                       

Controlling..

Controlling is most important function of management.In this function Target results are compared with actual results,it helps in measuring the performance towards achieving organisational goals and highlight the deviations and then take corrective action.In this function check the performance or progress in achieving goal if there is any deviation manager control their actions.

           In order to achieve planned results from the subordinates manager control over the activities of the subordinates.Controlling also ensures that resources of organization are being used efficiently and effectively.

                    Thus Controlling is...

1) Goal Oriented Activity

2) It ensures activities perfom according to our plans.

3)It ensures resources are fully utilised.

4)It evaluates the performance.

5)It helps in find deviation in performance or progress.

6)It helps in future planning.

Steps of Controlling...

a) Establishing standard-First and foremost step is set up target which we want to achieve to meet organisational goals, standard are fixed in qualitative and quantitative terms,in qualitative terms standard are fixed of quality and in quantity.

b) Measuring of actual performance-Next step of controlling is measuring actual performance it means how much we get our target . Manager measures the Performance of every department of organization.

c) Comparison between actual results and standard results-In this step controlling manager compare actual results with standard results ,it means whether we succeed in achieving our target or not,there is any fault in actual quality , quantity etc.

d) Taking corrective action-After doing comparison between standard results and actual results,if there is any deviation manager takes corrective action means makes plan for future improvement.If there is any deviation in quantity of product manager makes improvement by making plan.

Relationship between Planning and Controlling...

Although Planning and Controlling are two different functions but they are closely related with each other.Without planning controlling has no use because first we make standard in planning function and then we make comparisons between standard results and actual results in controlling function.If there is no planning there is no destination ,then controlling function cannot works.

          Thus, planning and Controlling are interrelated function goals of organization are set in planning and performance measure in Controlling, means success and failure decide in controlling but base of measure is set in planning, Planning and Controlling are interdependent on each other.

Controlling measure Performance.

Communication and 7'C of Communication

Communication

"Communication is the act of sharing or exchange information &ideas, feelings."

        Communication is the method to send message from one person to another.Communication is transfer information, emotions and ideas through voice,gestures expression, symbols.Communication involves one sender ,a message and a recipient.

     Thus, Communication means send message in verbal and non verbal.In communication there must be sender,receiver and communication channel .   

Features of Communication...

1) Communication is necessary-communication is as necessary as blood in our life communication is very vital in every field whether it is professional & personal and social life.

2) Pervasive-communication is pervasive because communication is formed in each and every field whether it is social political professional communication is performed in everywhere that's why communication is pervasive.

3) Continous Activity-communication is continuous process because it is continuously running first communication starts with sender he encoding the idea and then he sending it to receiver with the medium of communication after then receiver encoded the message and extract information from it and understand the message and send feedback to sender this process is continous running. 

                        

                      7'C of Communication...

   '7' C of Communication...

1) Complete-Message must be complete it contains all the facts which are required by audience if message is complete it helps in taking decision .Message must be full in such a way that it leaves no question in receiver mind and it not includes a unnecessary words there is answer of who, what ,when ,where ,how and why.

2) Concise-Concise means short possible words. In communication message should be concise means it is in short possible words but it doesn't mean that it will provide less information but in this C of Communication means it does not involve unnecessary words but written in short simple way and avoid needless words and provide essential message .In this C of Communication instead of written long message we use single word but meaning is same for eg.-

3)Clear-In this  'C' of  Communication means clear .If message is clear receivers understand and can taken decision easily.Clarity in message means that it clarify the ideas of sender.

4) Correct-Message must be correct.There is no error in message.If there is any error in message receiver cannot understand message properly.

5) Courteous-Courtesy is the respect that we show to others . Message should be polite,sincere, enthusiastic and reflective.It means we should include courteous words in message for eg- thank you, Excuse me,Yes sir.

6) Consideration- In this C of Communication we should take consideration the reciever problems, emotions education level before we convey our message.It means it cannot hurt audience self respect & emotions,words must be suit the needs of receiver.

7) Concreteness-In this C of Communication means our message should be clear it means it is up to the point and supported with facts and figures.So it brings confidence and easily understandable.

Communication Network techniques

Communication Network means pattern of communication which exists in organisation, pattern of communication depends upon need of organisation & attitude of superior towards subordinates.

1) Chain Network- Chain Network communication is one in which communication flow in a vertical line.It is usually two way communication.In this network communication flow from top to bottom and bottom to top in vertical line.In this network one cannot directly contact with other.

                     

Chain Network

2) Circular Network-Circular Network is that network in which communication flow in a circular way.In this network communication pass through immediate right or left person not any other person.According to figure A can communicate with B and E not C.B can communicate with C and A.etc.In this network communication flow in circular form.

                

Circular Network

3)Wheel Network or Star Network-Wheel or Star Network is that network in which organisation do not communicate directly.they communicate with one superior or manager, Manager act as a central hub of the wheel.for eg- D can  communicate with B with the help of central hub they can not communicate directly ,A can communicate with C with the help of central hub (manager or supperier)..

                

Wheel or Star Network.

4) Free Flow or decentralised Network-In this network communication flow freely,there is no        restriction on the flow of communication.Members can communicate any other member freely.This is informal Network which not flow in formal lines .

Formal &Informal Communication 

Formal Communication
Formal Communication is that communication Network in which communication flow in formally established channels.In formal Communication communication travels in lines of authority like top to bottom & bottom to top.it is established by the Management and whole organisation must follow this formal chain in communication.

Informal Communication

Informal Communication
 Communication is that communication network which is not flow in formally established lines .it is not regulated by the formal rules and procedures.it is flow in any direction it is not establish by management.it is establish by the nature of people to socialise and communicate with others like Grapevine

Financial Planning

Financial Planning...

Financial planning is deciding in advance how much capital should be required to run business and attaining goals.financial planning is the process of estimating the capital required and from where we get capital amount.

         in Financial Planning, we deciding in advance how much total fund is required in future for run business in financial planning these points are taken considered in advance.

               

Financial Planning

🖋️ Determine Capital requirement-In financial planning first we determine how much capital is required in business it is depend upon level of business if our business is high level so we required large amount of capital otherwise we required small amount of capital.

🖋️determine capital structure after determine how much capital required in future we have to determine the capital structure it means what is the composition of the capital structure in the business it means we make a plan of debt and equity means how much amount of own capital we invest and how much amount of debt we should taken in future.

🖋️determine financial policies after making capital structure we have to make financial policies regarding sales borrowings and lending and how much salary we have to pay to employees how much bonus should be paid these all  policies considered in financial planning.

         Thus financial planning is a process of making objective ,policies, procedures,programme and budget of financial activities to attain business goal efficiently and effectively.

    Importance of financial planning..

✏️ Availability of adequate funds-financial planning helps in availability of adequate funds at the time of requirement because in financial planning we  decided in advance how much capital should be required in future.

✏️ Reduce uncertainty-financial planning reduce uncertainty because in financial planning we already plan what will be market changes and what's the market trend in future so we can face easily through our funds.

✏️financial planning helps in making growth and expansion program which helps in growth of Business and stand in competition because we already make arrangements of funds for growth of business.

✏️ Financial planning helps in managing inflation because we already make a plan of market situation what will be the market situation in future that's why we already manage inflation.

✏️ Financial planning helps in maximum utilisation of financial resources.

https://commerceclasses86.blogspot.com/2022/09/financial-planning.html?m=1

Business Environment

Business Environment...
                      

Business environment includes all the external factors and forces which have a certain degree of impact on the business actions and strategies of the firm.Success of every business is depend on its environment.Business are expected to identify, appraise and respond to all the threads and opportunities in their environment.To get success and survive a business must constantly monitor its environment and adapt to it.

Dimensions of Business Environment..

1) Economic environment-It consists of gross domestic product, income at National level ,per capita income ,profit earning rate ,monetary policy ,fiscal policy etc.
           

Business environment

2) Social Environment-It consists of the customs and traditions of the society in which business is existing.It includes taste, preferences, standard of living etc

3) Political Environment-It consists of all the factors of the Government affairs such as type of Government affairs such as type of Government,power,tax system, subsidies etc

4) Legal Environment-It consists of Laws and legislation passed in the parliament like Trade Mark Act ,Essential Commodity Act,Weights and Measures Act etc.

5) Technological Environment-It refers to change taking place in the method of production, use of equipments and the quality of product.

Indifference Curve

Indifference Curve..

An indifference Curve shows the various combinations of two commodities which gives equal satisfaction and utility to the consumer.Consumer remains indifferent between all the combinations because all the combination give him equal satisfaction.

  Indifference schedule and indifference curve..

               

Indifference Curve figure...

According to the figure in ox axis x commodity is shown and in oy axis Y commodity is shown Ram purchase only 1unit of x commodity and purchase 15 units of Y commodity after then he increase the purchase of x units upto 2 units so he give up 5 units of Y because his level of satisfaction remains unchanged whatever combination he choose,again he increase x units by 1 more unit he have to give up Y commodity by 2more ..due to limited resources he cannot able to purchase both the commodity,to increase x commodity he have to give up Y unit.Consumer remains indifferent between all the combinations because all of these combinations give same satisfaction and utility to the consumer.

Indifference Map

When many indifference curves are shown in one figure is called Indifference Map.

In indifference Map every indifference Curve shows the various combinations of two commodities which gives equal satisfaction and utility to the consumer.In Indifference Map higher indifference Curve gives higher satisfaction that's why consumer prefer combinations of higher indifference Curve because in this combination consumer gets higher satisfaction and utility .for eg in fig of Indifference Map the curve IC1gives higher satisfaction and utility compare to IC2and IC3 and second highest satisfaction gets in IC2 curve and third is IC3..

             

Elasticity of Demand

Elasticity of Demand means change in demand due to change in variable factors in which demand depends like change in price,change in income,change in price of substitute or complementary goods .So,the changes in demand is known as Elasticity of demand.Changes in demand is depends on many factors,these are if the demand change due to change in price of product is called Price Elasticity of demand, because changes comes in product due to change in it's price.

Income Elasticity-If the changes in demand comes due to change in  income is called income elasticity of demand.

          Price Elasticity..

When the demand of product is changes due to change in its price is called Price Elasticity of Demand it is calculated as..

Price Elasticity of Demand=

              %change in quantity demanded

                                   %change in price

    Degrees of Price Elasticity of Demand..

1) Perfectly Inelastic Demand Ed=0--When the demand for the product does not change as per price changes is called Perfectly Inelastic Demand.

  

 

According to fig in ox axis price of product is shown and in oy axis quantity demanded is shown when the price rise from op to op1 but quantity demanded is does not change whether price increase or decrease that is called perfectly Inelastic Demand , products like food,water, medicine,salt have Perfectly Inelastic Demand because these are necessary for life so their demand is not change although prices are changes.

2) Unitary Elastic Demand ed=1-When %change quantity demanded is equal to %change in price of product is called Unitary Elastic demand.

According to fig.In ox axis quantity demanded is shown and oy axis price is shown when the price rise from op to op1 quantity demanded is also increase from oq to oq1 .In Unitary Elastic demand quantity demanded is also increase in same proportion as the price is increases.Suppose price of product is increase by 10% , quantity demanded is also increase by 10%. 

3)  Perfectly Elastic demand-In this case there is no change or minor change in price leads to very much rise or fall in quantity demanded.

According to fig price of product op at that price demand rise from oq to oq1  it is said that demand is perfectly Elastic because minor change or no change in price leads very much change in price ..

4) Highly Elastic demand-Where the demand is very much change than it's price,that is highly Elastic demand.

According to fig when price rise from op to op1 quantity demanded rises from oq to oq1 there is very much change in demand that is why it is called highly Elastic demand.

5) Highly Inelastic Demand-When the price of product is very much change but there is little change quantity demanded that is called highly Inelastic Demand.inelastic means no.change or little change.

According to fig when price rise from op to op1 then quantity demanded rise from oq to oq1  there is little change in demand compare to price that is why it is called highly Inelastic Demand.

    

Management by Exception

Management By Exception...

Management by Exception propounded by F.W.Taylor.According to this principle,that everySuperior should set their organisational plan and plan for every subordinates and delegate the authority to perform their work and attain goals.Superior should not be interfere in their work if they work according to plans and within the scope of authority.Superior only interfere when the exceptional situation arises or subordinates not able to control the situation or their is any deviation between in Target results and actual results,that is why it is known as Management by Exception..

                 

Assumptions:-

I)  Managers delegate the authority to their subordinates.

ii)Managers set up the Performance standard.

III)Fix the scope of authority.

iv)Managers interfere when exceptional situation arises.

Advantages of Management by Exception:-

a)It save time and efforts because manager only interfere in exceptional situations.

b) Superior can pay more attention on exceptional matters.

c)It focus on standards which are set by management.

d)It reduce the chances of deviations.

e) Freedom to do their routine activities.

f) Subordinates motivate by giving freedom to perform routine activities without interfere.

Disadvantages of Management By Exception..

1)It requires clear establishment of Performance standards but it is difficult to set.

2)It requires clear reporting system so that report of subordinates Performance delivered to superiors.

3)It is difficult to measure and evaluate the performance of subordinates.

4)It requires delegation of authority without it ,this principle can not work.

5)By delegating authority to subordinates ,they misuse their authority.

Management by Objectives...

Principles of Management

Principles of Management

Principles of Management...

                    

Management

Meaning of Principle-A Principles is a fundamental truth which guides to a thought and actions of people."Principles is a fundamental truth or a statement which guide us in thinking and taken action".

   Management Principles- Principles of Management are general rules of Management which should have to be follow in doing managerial activities.

Henri Fayol who is recognised as the father of modern theory of Management formulated a set of 14 Principles of Management.These are...                   
                                 

1) Division of work-This principle states that every work should be sub divided into small parts and each part of work should be assigned to the employee who is specialized in that work.Every person has specific specialization so according to this principle total work is divided into small parts and then every part is assign to that employee who is expert in that work.

Advantages of Division of work principle..
1)Work is divided into small parts so work become easy.
2)Work is performed efficiently.
3)Cost of work perfom reduce because work performed by specialist so they perform it in a better way.
4) Productivity increases.
                      

2) Authority and Responsibility-Authority -It is a right to give order.Authority is vested in position not in an individual.When a person is in position he have authority to give orders and when he leaves position,he have no right of authority.for eg A school principal have authority to give orders to teachers but when he leaves his principal position he no more have authority to give orders. This is called authority.
   
Responsibility-A duty or obligation to perfom or complete a task assigned by someone or Responsibility is created by own's promise or circumstances to perfom job.
According to this principle , Authority and Responsibility must go together,there must be parity of authority and responsibility.It means proper authority should be delegated to meet the responsibility.

There are two reasons of parity between Authority and Responsibility..
I)If a employee given a responsibility to perfom a work without given sufficient authority he can't perfom his work in better way so the organization goals cannot be achieve.
ii)If a employee is given excess authority he may miss use it.

3) Discipline-This principle states that there should be discipline in every Organisation because discipline is necessary for every Organisation, without it success cannot be
achieved.This states that every subordinate in the Organisation must obey and respect the authority given by his Superior and also obey the rules and policies of Organisation.

4)Unity of Command-This principle states that an employee should receive orders from only one Superior.By this there may be no confusion in receiving and understanding the orders and it can be easily followed.

5) Unity of direction-It states that similar activities must be directed by one leader or one head .By this we can achieve co.ordination and unity in  havingaction.Activitieshaving  same  Objectives should be directed by only one manager under a one plan.

6) Subordination of individual interest to general interests-'Subordination means the act of placing in a lower rank', it means individual should place his interest in lower rank in front of organization interests.
  According to this principal general interest is superior to the individual interests.Every subordinate join organization for his individual Objectives and organization have their own Objectives,but when their is conflicts between them individual should subordinate his interest in front of organization.Manager must try to Integrate individual goal with the organization goals in such a way so that objectives of both can achieve.

7) Remuneration-Remuneration means money paid by employers to his employees for work or services performed.Every employee join organization for earnings,so that he fulfil his basic or other needs of life.
  According to this principle remuneration given to employees should be reasonable.It should not be low or high.Each 
employee get fair remuneration so that employee as well as employer are satisfied.Remuneration should be adequate
which motivates the employees to perfom better and raise standard of living of the employees.

8) Centralisation-Centralisation is when the authority retained by higher level of According to this principle manager should retain final responsibility and give enough authority to do their day to day job so they perform their work properly.There should be balance between Centralisation and decentralisation.Excess Centralisation and ecxess decentralisation is not good ,if there is excess Centralisation (all the authority to managers )in this condition employees not perform work properly.
Excess decentralisation (all authority is given to employees)in this condition employees misuse the authority.

9)Scalar Chain-Scalar chain means a chain in which authority and responsibility flows .Managers use Scalar chain in giving orders and employees use scalar chain for reports and grivences flows to the higher authority.The flow of information between employees and managers through scalar chain,but when the emergency condition arises which need immediate solution at that time we cannot follow scalar chain we make direct contact with the concerned employee.   

Scalar chain

11)Equity-This principle implies that there should be equity in every Organisation.It means manager should be friendly,kind with his subordinates.Mangers should treat his employees equally,because equity treatment is liked by everyone and make good relation between employers with his employees and employees are happy so Organisation goals can be achive easily.

12) Stability of personnel-This Principle implies that there should be Stability in tenure of personnel.No employee must be removed within a short period of time.Stability in personnel of tenure reduce the employee turnover and cost of training and learning of employees.New employees will demotivate by seeing the prior employees removed within a short period .
They feel insecure and cannot work concentrately.

13) Initiative-Initiative means to start,to begin a project,this  principle implies that freedom should be given to subordinates to carry out their plans.Management must taken suggestions from employees at the time of determine plan and then given freedom to initiative plan as they feel these are their own plans and they have to complete it.By doing this they are Motivated and they completely dedicated in their work.This will reduce wastage.

14) Esprit de corps-Esprit de corps means team spirit , according to this principle that there should be team spirit among employees.It means there must be sense of unity among employees so that purpose of Organisation can be achieved easily.

Overview about Organisation..

Organising...

Organisation-The term organisation means group of persons joint together systematically contributing their efforts and use the organisation resources and work under the direction of leader to attain organisation goals .

           

Organisation

"An systematic group of persons joint to work together for achievement of common goals is called organisation."

"The process in which activities are identified and then groping the activities and then assigning the duties , delegating authority and resources are allocating for attaining goals this process is known as organising".

Organisation must have all these...

👉 Group of Persons-Organisation is a group of persons.It may be small or big . Organisation is a systematic group of two or more persons."

👉Common objectives-Organisation is group of person who joint together to achieve Common goals.Success and failure  of Organisation is depends upon how much they able to achieve the Organisation goals.

👉 Division of work-In organisation work is divided among individuals.In Organising activities of Organisation are identified and then groups are made for every activity,and then activities are allocated to every individual according to their ability .

👉Co.operative relationship-Success of every business is depends upon his Organisation.if individuals of Organisation work together co.operatively Organisation get success.

👉 Communication-In Organisation there is communication between members.If they are communicated each other they perform their work coordinately.Absence of coordination brings dissatisfaction among individuals.

👉 Leader-Every group of individuals should have one leader . Group of individuals work under that leader.they get directions from leader and work under the control of their leader.

👉Rules and regulations-Every Organisation has their own rules and regulations which should be followed by every individual of Organisation.

👉 Delegation of Authority-Authority is also delegate to individuals to perform their work,they clearly know to whom they are responsible,who is their boss.

👉 Specialisation-In every Organisation,activities must be divided in such a way so that work can be performed efficiently and effectively,in Organisation activities are divided and assigned according to their skill.

👉 Unity of Command-Every individual should receive orders from only one Superior means every Organisation individual is responsible towards only one Superior.Unity of command avoids conflicts in Organisation and build sound structure.Every individual get command (order)from only one Superior

Organisation notes.

Management by objectives/MBO

Management by objectives/MBO

This model of goal setting was first offers by Peter Drucker in his book ,The Practice of Management,that time this is only used to set up management goals but now MBO is not only used for setting goals but also used as other techniques like planning , directing, motivation,performance appraisal and control technique.MBO goes beyond setting organisational goals ,it setting organisational goals ,departmental goals& employees goals.
       MBO refers to formal procedures that begin with setting organisational objectives, department objectives and employee objectives and continues till performance review.In MBO Managers and superior jointly set the objectives for organisation and then responsibility is also assign to everyone and performance is review periodically less than one year ,months ,quarter.Each person area of responsibility is defined according to objectives and then performance is measure . Performance is measures periodically..
"MBO is a process where superior and subordinate jointly determine their goals (target)which they want to achieve within a year or less than one year(month, quarter or year). "Responsibility is also assign to everyone and authority also given to perform duty at the end of period both manager and subordinate meet again and jointly review their performance.There is direct participation of employees in goals determination.

Company&his employees

          

 Objectives of MBO..

🖋️To set organisation goals and individual goals.

🖋️Active participation of employees.

🖋️ Employees clear about their responsibility.

🖋️Provide base for comparison.

🖋️ Individual performance measurable.

🖋️To Motivate employees.

🖋️ Maintain co.ordination.

🖋️Enhance communication.

🖋️ Performance Appraisal possible.

             

Ratio Analysis (liquidity ratio)

Ratio Analysis..

"Ratio is a simple arithematical expression of the relationship of one number to another.It is obtained by dividing the former by later .It express relationship of items of financial statements."

Classification of Ratios..

1)Liquidity or Short term solvency ratios-These ratio analysis the short term financial position of business.It represents the firm ability to meet it's current financial obligations.

😊Current Ratio-This ratio express the relationship between current assets and current liabilities it is also known as working Capital 

ratio, its ideal ratio  is 2:1.

   Current Ratio=__Current Assets

                               Current Liabilities

Current Assets are those assets which can be converted into cash within a period of one year .

              Current Assets are 👇

I)Cash and Bank balance

ii)Debtors

III)Bills Receivable

iv)Stock

v)Short -term investment or marketable securities

vi) Prepaid Expenses

vii)Advance Payment

viii)Accrued income

    

    Current Liabilities are those liabilities which are to be paid within a period of one year out of current Assets .

              Current Liabilities are👇

I) Creditors

ii)Bills Payable

III)Bank Overdraft

iv)Short term loans

v) Outstanding Expenses

vi) Income Tax payable

vii) Unclaimed Dividend

viii) Provision for Tax

ix) Proposed Dividend

      Current Ratio of a firm measures it's short term solvency means firm ability to pay it's short term obligations which are due.for eg .if current Assets of firm is 40,00000 and its current Liabilities is 20,00000 current Ratio is 2:1 it means firms current assets is double of its current liabilities means firm is able to pay it's current Liabilities in full margin of safety to short term creditors.if the current Ratio is  higher it is good from the Creditors point of view but extremely high current Ratio is not good from management point of view because it indicates •more funds of the firm invested into unproductive uses(inventory)which do not have return.

•it show poor investment Policy.

•poor credit management due to over extended accounts receivable.

   A low &declining current ratio it indicates

• inadequate margin of safety to the Creditors or no sufficient cash available.

• shortage of working Capital in the business for day to day transactions.
    
    

Liquidity or Quick Ratio...

    This ratio show the instant paying capacity of business debts ,it means how  fast can business pay off its current liabilities from their liquid assets within a period of 1-2months ,that is why this also known as acid test ratio, quick ratio.This ratio established relationship between quick/liquid assets and current Liabilities.

     

            

    Liquidity or Quick Ratio=Prepaid Expenses

                         Liquid or Quick Assets

                       Current liabilities

Current Assets

I)Cash and Bank balance

ii)Debtors

III)Bills Receivable

iv)StockPrepaid Expenses

v)Short -term investment or marketable securities

vi) Prepaid Expenses

vii)Advance Payment

viii)Accrued income

    All these current Assets are liquid assets except stock and prepaid expenses because  all these assets except (stock and prepaid expenses) can converted into cash within 1-2months to pay off its current Liabilities but from  Stock and  Prepaid Expenses we cannot get cash quickly because stock may not be sale within 1-2month and we cannot get cash back from our pre paid expenses so these assets are excluded from current assets.Its ideal ratio is 1:1.If business have 1:1 its quick ratio it indicates sound financial position..It means business can easily pay off its current liabilities from its quick Assets without any difficulty.

Absolute Liquidity Ratio..

 Meaning- Absolute Liquidity Ratio show more liquidity than current ratio and quick ratio that is why it is known as Absolute Liquidity Ratio.It shows the relationship between absolute liquid assets to quick liabilities formula..

   

Absolute Liquidity Ratio=

                           =Absolute liquid Assets

                             Quick & Liquid Liabilities

  In Absolute Liquidity Ratio we take those assets which can be converted into cash within few days for pay liquid liabilities and in liquid liabilities we include those all current liabilities which can be paid immediately .

Absolute & Quick Assets are 

😊Cash

😊Bank

😊 Marketable securities.

🖋️ Debtors and receivable are not included in Absolute liquid Assets because these assets take time to converted into cash .

🖋️All current liabilities are liquid liabilities except bank overdraft as it is not to be paid immediately.

 A standard ideal ratio in Absolute Liquidity Ratio is 0.5:1 it means fifty Paisa of absolute liquid assets are sufficient for one rupee worth of liquid liabilities.

Planning Process..

Planning Process..

🖋️ Determine the objectives-First and foremost function of business is deciding objectives which we want to achieve whether we want to earn profit or doing social service & serve society.

🖋️ Establishment of the planning premises-In this step we forecast the future controllingis planning premises.It means base which we determine eg what are the demand of our product in future,which type of tastes of consumers changes in future,what are government policies in future etc these are forecast in planning premises.Success of business depends upon correctly determination of planning premises because we are already prepare for the conditions which will come in future.

🖋️Search of Alternative courses of action-Every work can be complete in many ways ,there are many alternatives ,for completing work in this step we search the available alternatives.

🖋️Evaluate the alternative-After searching alternatives we evaluate the every available alternatives in many ways .

🖋️ Selection of best alternative-After evaluate the various alternatives we select the  best option through which our work is completed in time with the minimum cost.

Planning in present for future.

🖋️ Formulation of sub plans-In this step we formulate the sub plan to fulfill main plan.eg business main plan is to attain profit so for profit we had to make plan for purchase department,sales department etc without these sub plans our main plan cannot be achieve.

🖋️ Sequence the activities-In this step we make sequence of activities in order they perform,after manage in sequence we perform it one by one.

🖋️ Follow up plan-In our last step we follow up our plan and in the end of year we compare our desired performance to actual performance if there are any deviation or failure in it we make changes in our planning.
     

 Types of Plan..

Objectives.

1)

Rules

2)

Strategy

3)

Policies

4)

Procedures

5)

6)

Good luck results of good planning 

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