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PRINCIPLES OF MANAGEMENT PDF FOR MBA NOTES

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Concept based notes. Principles and Practices of Management. MBA-(I Sem). Navleen Kaur. Richa Khunteta. MBA faculty (BISMA). Biyani Institute of Science. Function of Managers Evolution of Management Management definedPerceptive of Managers:There are many definitions of Authority Principles of-management-lecture-notes-for-mba sppn.info conceptual understanding of the management principles and techniques have to words, one need not necessarily possess M.B.A or any other management.


Principles Of Management Pdf For Mba Notes

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Principles of Management Projects & Notes. Know/define what is Principle of Management. R. Sivarethinamohan and P. Aranganathan, “Principles of Management”, 1st Edition, . published a book on “the principles of scientific management” in M.B.A with Diploma in Entrepreneur Development (CBCS Pattern) .. " management is the art of applying the economic principles that underlie the control .. Study in Personality and Innovation (Cambridge: MIT Press, ), notes that he did.

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. Essentials of Directing Directing is that part of management process which actuates the members of an organization to work efficiently and effectively for the attainment of organizational goals.

It includes making assignments, issuing orders and instructions, providing guidance and inspiration to subordinates for the achievement of organizational objectives. Directing is a complex function as it deals with people whose behaviour is unpredictable. Effective direction is an art which a manager can learn and perfect through practice Controlling Control is one of the managerial functions like planning, organizing, staffing and directing.

It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards.

An efficient system of control helps to predict deviations before they actually occur. The Design of a basic system - 23 - Chester Barnard — He president of New Jersey Bell Telephone Company, introduced the idea of the informal organization —cliques exclusive groups of people that naturally form within a company. He felt that these informal organizations provided necessary and vital communication functions for the overall organization and that they could help the organizationaccomplish its goals.

Barnard felt that it was particularly important for managers todevelop a sense of common purpose where a willingness to cooperate is stronglyencouraged. He is credited with developing the acceptance theory of management,which emphasizes the willingness of employees to accept that mangers havelegitimate authority to act.

Barnard felt that four factors affected the willingness ofemployees to accept authority: Peter Ferdinand Drucker November 19, —November 11, His writings have predicted many of the major developments of the late twentiethcentury, including privatization and decentralization; the rise of Japan to economicworld power; the decisive importance of marketing; and the emergence of theinformation society with its necessity of lifelong learning.

Basic ideas: Drucker discounted the command and control model and asserted that companies work best when they are decentralized. According to Drucker, corporations tend to produce too many products, hire employees they dont need when a better solution would be outsourcing , and expand into economic sectors that they should avoid.

Drucker believed that employees are assets and not liabilities. He taught that knowledge workers are the essential ingredients of the modern economy. Central to this philosophy is the view that people are an organizations most valuable resource and that a managers job is to prepare and free people to perform.

This concept of management by objectives forms the keynote of his landmark "The Practice of Management". Profit is not the primary goal, but rather an essential condition for the companys continued existence. William Edwards Deming October 14, — December 20, He was an American statistician, professor, author, lecturer, and consultant.

Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan. There, from onward he taught top management how to improve design and thus service , product quality, testing and sales the last through global markets through various methods, including the application of statistical methods.

Deming made a significant contribution to Japans later-renown-for innovative high-quality products and its economic power. He is regarded as having had more impactupon Japanese manufacturing and business than any other individual not of Japaneseheritage. Despite being considered something of a hero in Japan, he was onlybeginning to win widespread recognition in the U.

Deming philosophy synopsis: The philosophy of W. Edwards Deming has been summarized as follows: Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs by reducing waste, rework, staff attrition and litigation while increasing customer loyalty. The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces. Demings philosophy was summarized by some of his Japaneseproponents with the following a-versus-b comparison: Demings 14 points: Deming offered fourteen key principles for management for transforming businesseffectiveness.

The points were first presented in his book Out of the Crisis. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs. Adopt the new philosophy. We are in a new economic age.

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Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease cost. Institute training on the job. Institute leadership.

The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. Drive out fear, so that everyone may work effectively for the company.

Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

Substitute leadership. Eliminate management by numbers, numerical goals. Substitute workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. This means, inter alia, abolishment of the annual or merit rating and of management by objective. Institute a vigorous program of education and self-improvement. Put everyone in the company to work to accomplish the transformation. The transformation is everyones work.

Every activity and every job is a part of the process. Waterman, Jr. First published in it is one of the biggest sellingand most widely read business books ever, selling 3 million copies in its first fouryears, and being the most widely held library book in the United States from to WorldCat data. The book explores the art and science of management used by - 28 - Peters and Waterman found eight common themes which they argued wereresponsible for the success of the chosen corporations.

The book devotes one chapterto each theme. A bias for action, active decision making - getting on with it. Close to the customer - learning from the people served by the business. Autonomy and entrepreneurship - fostering innovation and nurturing champions. Productivity through people- treating rank and file employees as a source of quality.

Hands-on, value-driven - management philosophy that guides everyday practice - management showing its commitment. Stick to the knitting - stay with the business that you know. Simple form, lean staff - some of the best companies have minimal HQ staff.

Simultaneous loose-tight properties - autonomy in shop-floor activities plus centralized values. What is planning? There are many definitions of planning. Planning may define as: According to Fayol - "The plan of action is, at one and the same time, the resultenvisaged, the line of action to be followed, the stages to go through, and the methodsto use.

It is a kind of future picture wherein proximate events are outlined with somedistinctness It involves the selection ofobjectives, policies, procedures and programmes from among alternatives. A plan is apredetermined course of action to achieve a specified goal. It is a statement ofobjectives to be achieved by certain means in the future. In short, it is a blueprint foraction. According to Louis A Allen - "Management planning involves the development offorecasts, objectives, policies, programmes, procedures, schedules and budgets".

According to Theo Haimann - "Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action, for the future, attempting toachieve a consistent, co-ordinated structure of operations aimed at the desiredresults". Planning is the pre-selection of objectives and outlines the action before starting anybusiness. Planning is decision making in advance. Choosing the alternatives and making the decision is called planning.

The essential nature of planning can be defined by dividing it into four Major aspects. Every plan and all its supporting plans should contribute accomplishment of thepurpose and objectives of the enterprise. This concept an use in organized enterprisewhich try to accomplishment of group purpose through deliberate cooperation. Since managerial functions like organizing, Staffing, Leading and controlling supportto the accomplishment of enterprise objectives, planning logically precedes or helpthe accomplishment of all other managerial functions.

Because Manager must plan onorder to know what kinds f organization relationship and personal qualifications areneeded, which method should be fild by subordinates and what kind of control is toapplied.

All the other Managerial functions must be planned if they are to beeffective. Planning is the function of all Managers, although the character and breadth ofplanning will vary with each Managers authority and with nature of polices and plansoutlined by superiors.

If Managers are not allowed a certain degree of discretion andplanning responsibility they are not truly Managers. However, all managers from presidents to first level supervisors plan. Even the head of a road gang or a factory crew plans in a limited area under fairly - 32 - A principal factor in a success of supervisors at the lowestorganization level is their ability to plan.

Many managers have followed plans whose costs were greater than the revenue thatcould be obtained. For example, one airline acquired certain aircraft with costsexceeding revenues. Companies have also tried to sell products that wereunacceptable to the market. Plan can even make it impossible to achieve objects ifthey make enough people in an organization this satisfied or unhappy.

Thismakes difficulty in making planning effective. Plans are classified as: However, anobjective is the end toward which an activity is aimed. Objectives in other words. Areends toward which organizational and individual activities or directed. Objectives arethe end point toward which all managerial functions, Planning, Organizing, Leading,Staffing, and Controlling are aimed. Objectives form a hierarchy ranging fromindividual objectives to broad aims.

Both gives direction and are closely related. Briefly, procedures guide actions. Rules are those required actions or non-actionsallowing no discretion. Rules are simply called simple plans. It is a statement of plans and expected resultsexpressed in numerical terms or forms. The budget of an enterprise represents thesum total of income and expenses with profit or surplus. All managers should take look atfuture opportunities and see them clearly and completely.

They should know wherethey stand in light of their strengths and weakness, understand what problems theywish to solve and why, and know what they expect to gain. Setting realistic objectivesdepends on this awareness. Objectives specify the expected results andindicate the end points of i What is to be done ii Where the primary emphasis is tobe placed iii What is to be accomplished by the network of strategies, policies,procedures, rules, budgets and programs.

Such as forecasts,applicable basic policies and existing company plan. The are assumptions about theenvironment in which the plan is to be the carried out. It is important for all themanagers involved in planning to agree on the premises. Forecasting is important in premising: What kind of markets will be there?

Whatvolume of sales? What prices? What products? What technical developments? Etc 4. The planner must usually make preliminary examination alternative courses toaccomplish the goal. That which alternative will give the best ofmeeting goals at the lowest cost and highest profit in a given period.

This is the point atwhich the plan is adopted. After identifying and evaluating alternative the managerhas to decide one best alternative or several alternative courses of action. When a decision is madenext step is to formulate a supporting plan, such as to download equipment, materials, hireand train workers and develop a new product.

The overall budgets ofan enterprise represent the sum total of income and expenses with resulting profit. Budgets are important thing in planning process. Settings objectives we Choosing and alternativewant to be and what we selecting the course of actionwant to accomplished and we will pursue.

Considering planning Formulating supporting planspremises in what such as plans to downloadenvironment external or equipment, download materials, hireinternal will our plan and train workers develop aoperates. Numberising plans by makingIdentifying alternatives budgets develops such budgetswhat are the most as; volume and price of sales.

The process can be shown by figure. Here x indicates where weare at to or time zero and y where we want to be at future time at tn. In short, weare at ax and want to go to y. We may even have to start our planning study at x at t-n. If the future work completely certain, the line x y would be relatively easy to draw. Because we cannot forecast or consider everything, we try to develop our path x to yin light of the most critical premises.

The essential logic of planning applies regardless of time interval between TO andTN, weather it is five minutes or twenty years. If the time span is long, premises maybe unclear, goals may be more difficult to achieve and other planning complexitiesmay be great. Yet, despiteits wide applications, it is not always clear what is meant by MBO.

Some says that itis an appraisal tool; other sees it is a motivational technique; still others considerMBO a planning and control device. In other words, definitions and applications ofMBO differ widely. MBO process consists of setting goals at the highest level of theorganization, clarifying the rules of responsible persons for achieving the goals. Somestill define MBO in a very narrow, limited way.

All the objectives of management by objective can be summarized by saying that itresults in greatly improved Management. MBO force Managers to think about planning for results. MBO also requiresthat Managers think about the way from which they will accomplish results.

Theywill think about need of assistance to achieve the objectives. It force managers to delegateauthority according to the results they expect. Because of MBO people can understand theirarea of discretion, there authority, the part in setting their objectives. As MBO guides in setting resultoriented planning. It is also guides people to develop effective control towards theaccomplishment of the goals.

There are severalweakness of MBO. Managers often fail toexplain about MBO that it is? How it works? Why it is being done? What part inperformance appraisal? How participants can benefits? Managers need planning premises and knowledge of major companypolices. People must have some assumptions about future.

They should have someunderstanding about objectives affecting their areas of operations. They should knowabout objectives and programes. MBO fails to give guideline to Managers. MBO difficult and verifiable goals. Emphasis on short term goals lead to danger more expensiveness as of the longerrange.

Principles of Management PDF Lecture Notes, eBook Download for MBA Students

Change in objectivecan affect results. So in MBO managers often hesitate to know flexibility. It is the core of planning. A plan cannot be said to exist unless a decisionhas been made. Managers sometimes see decision making as their central job because they mustconstantly choose what is to be done, who is to do it and when, where and how it willbe done. People acting or deciding rationally are attempting to reach some goal that cannot beattained without action.

They must have a clear understanding of alternatives. Thymust have ability and information to analyze and evaluate alternatives in order toachieve goals. Finally they must have desire to come the best solution by selectingalternative. The first steps of decision making are to develop alternatives. There are almostalways alternatives to any course of action. If we think of only one course of action,clearly we have not thought hard enough. The ability to develop alternatives is often as important as being able to selectcorrectly from among them.

One of the other hand ingenuity research and commonsense will often unearth so many choices that all of them cannot be evaluated. Themanager needs help in this situation, and this help can be solved by decision making. When an appropriate alternative has been found, the next steps in planning one bestalternative to achieve the goals. There are three ways of evaluated decision making. This factor is vary importantbut the success of the venture would be endangered qualitative factors were ignored.

Qualitative factor are those that are difficult to measure numerically such as thequality of labor relations, the risk of technological change etc.

Principles of Management PDF Lecture Notes, eBook Download for MBA Students

Marginal analysiscan be used in comparing factors other then costs and revenue. For example to findthe best output of a machine, inputs could be varied against outputs until theadditional input equals the additional output.

For examplefinding the least costly way of reaching objectiveness is a technique for choosing thebest plan. Experimentation Reliance on past How to select from Choice made among alternatives. Research and analysis Bases for selecting from among alternatives - 41 - The very fact that managers have reached thereposition appears to justify their past decisions. Moreover, the process of thinkingproblems through making decisions and seeing programs succeed or fail.

Experimentation is often used in scientific theory. The experimental technique can bemost expensive, especially if a program requires heavy expenditures firm cannotafford to attempt several alternatives. This approach means solving problems by first comparing it.

Itis pencil and paper approach to decision making - 42 - Organization is the foundation upon which the whole structure of management isbuilt? It is the backbone of management. After the objectives of an enterprise aredetermined and the plan is Prepared, the next step in the management process is toorganize the activities of the Enterprise to execute the plan and to attain the objectivesof the enterprise.

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Embeds 0 No embeds. No notes for slide. For efficient and profitable functioning it is necessary that all these factors are put to work in a co- ordinated manner. Management Definition Management is the art of getting things done through others.

Mastery in Mgt requires a sufficiently long period of experience in, managing. It contains all the essentials of science. It is an inexact science. To increase efficiency 2. To crystallize the nature of Mgt job 3. To improve research in Mgt 4.

To attain social goals 5 6. Levels of Management 1. Roles of a manager Mintzberg 1. Without it the resources of production remain resources and never become production. Sound Management provides the following benefits. Organising Grouping of Functions, Departmentation, delegation, decentralisation, activity analysis, task allocation Staffing Manpower planning, job analysis, Recruitment, Selection, Training, Placement, Compensation, Promotion, appraisal, etc. Directing Supervision, Motivation, communication, Leadership, etc Controlling Fixation of standard, recording, measurement, reporting corrective action.

Division of Work 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 8 9. Subordination of individual interest to general interest 7. Remuneration of personnel 8. Centralisation 9.

Scalar Chain Order Equity Stability of Tenure of Personnel Initiative Mental attitude of the two parties. Techniques of Scientific Management 1. Time Study 2. Motion Study 3. Scientific task Planning 4. Standardization and simplification 5. Differential piece rate system 6. Functional foremanship — According to Taylor, one supervisor cannot be an expert in all aspects of work supervision. In system of Functional Foremanship in which eight supervisors supervise a workers job.

Route Clerk ii. Instruction card clerk iii. Time and cost clerk iv. Shop disciplinarian v. Gang boss vi. Speed boss vii. Repair boss viii. Illumination Experiments illumination affected Productivity 2. Relay assembly Test room Experiments Working conditions and Productivity , piece work, rest pauses, shorter working hours, 3. Mass interviewing Programme Direct Questions , Grievances, deep rooted disturbance, satifactory level 10 These approaches to the study of management may be classified as under: Classical Approach 2.

Behavioral Approach 11 Management Science Approach 4. System Approach 5. The traditional theorists viewed organization as a closed system while modern theorists treat it as open system. The system approach highlights the multidimensional and multidisciplinary nature of management. It takes much wider and overall perspective of organizational functioning.

As business grow in size and power, society expects more from them several forces have led to the development of the concept of social Responsibility. Social Responsibility of Business Ethics in Managing - Ethics is defined as the discipline dealing with what is good and bad, with moral duty and obligation. Business Ethics is concerned with truth and justice and has a variety of aspects such as expectations of society, fair competition, advertising, public relations, Social responsibilities, Consumer autonomy and Corporate behaviour in the home country as well as abroad.

Ethical Theories - Utilitarian Theory suggests that plans and actions should be evaluated by their consequences.

Institutionalizing Ethics This means applying and integrating ethical concepts into daily action. This can be accomplished in 3 ways- 1. By establishing appropriate company policy or a code of Ethics 2. By using a formally appointed ethics committee 3. By teaching ethics in Management development programs A code is a statement of Policies, principles, or rules that guide behaviour. The functions of Ethics Committee includes- 1. Communicating the code to all members of the Organization 4.

Checking for possible violations of the Code 5. Enforcing the Code 6. Rewarding compliance and punishing violations 7. Reviewing and updating the code 8. Public disclosure and publicity 2. The increased concern of a well informed public.

Globalisation Globalization means covering or affecting the whole world. It means integration of the domestic economy of a country with the international economy. Recent developments in information and communication technology have accelerated the pace of globalization.

Particularly product transaction and the integrating of economic and capital markets throughout the world. The term globalization has four parameters: When an Entrepreneur executes his or her business model in more than one country International Business Occurring. Entry into International Business The method of entering or engaging in International Business can be divided into three categories 1.

Non Equity arrangement — Doing international business through an arrangement that does not involve any investments. The management contracts allow the downloading country to gain foreign expertise without giving ownership of its resources to a foreigner.

Globalization in India Some major aspects of the policy of globalization in India are: Most imports has been put under open general licence OGL where automatic permission is granted to import goods. Export oriented units EOUs have been allowed to import freely all types of goods require by the unit for manufacturing, production or processing. Tariff structure refers to the pattern of custom duties levied on the imports of various commodity groups.

The government initiated the process of tariff reduction in , to bring our tariff rates in line with the other developing countries: Nature of Planning 1. Pervasiveness of planning — it is a function of all managers. Varies from level to level 4. Efficiency of plans — Pans are efficient if they achieve their purpose at a reasonable cost Types scope of plans I Purposes or missions: Some are long term and short term. Pester power strategy, social marketing, co-branding, co-marketing.

IV Policies: They take concrete shape when they are put in writing. This will ensure uniformity in application, continuity and greater conformity. Top management provides guidelines to lower level managers.

Gives managers to act at all levels without the need to consult the superiors every time. Better Administrative control. Provides rational basis for evaluating the results. By setting up of policies, the management ensures that the decisions made will be in tune with the objectives and interests of the organization. They save time and effort by pre-deciding problems in repetitive situations. They save the management from the botheration of repeating the expensive analysis required to take the policy decision every time.

They only point out the limits within which the judgment is to be taken. Types of Policies: V Procedures: VII Programs: VIII Budgets: Steps in Planning: Being aware of opportunities. Establishing objectives.

Developing premises - Planning premises are forecasts, applicable basic policies, and existing company plans. What price? Determining alternative courses of action 5. Evaluating alternative course of action - Operation Research — Decision tree 6. Selecting a course of action - Decision making 7.

Formulating Derivative plans - Supporting plans for basic plan 8. Numerating plans by budgeting - Income and expenses 24 Kinds of planning 1. Short term and long term planning 2. Specific or Routine planning 5. Reduces uncertainity and risk 3. Provides sense of direction 4. Helps in coordination 6. Guides decision making 7. Provides a basis for decentralization 8. Provides efficiency in operation 9.

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Facilitates control Features of a good plan 1. Based on clearly defined objectives 2.

Simple, easily understandable 3. Flexible or adaptable to changing conditions 4. It should be economical 7. It should be practicable 8. Prepared with the consultation of concerned persons 9.

Should be clear, specific and logical Should be capable of being controlled 25 Types of Planning Time limit 1. Long term plans Above 5 yrs 2.

Medium term plans Between 2 to 5 Yrs 3. Short term plans Less than 2 yrs Planning can be classified as — 1. Corporate Planning 2. Divisional Planning 3. Strategic Planning S. No Strategic Planning Operational Planning 1 Lays down major goals and Policies of the Organisation Decides the use of resources in day to day operations 2 Done at higher levels of Management Done at lower level of Management 3 Long term in nature Short term in nature 4 Broad and general Detailed and specific 5 Based on long term forecast and appraisal of Environment Based on past experience Obstacles of Effective Planning 1.

Inadequate inputs 2. Lack of ability 3. Sudden emergencies 4. Need for creativity 5. Resistance to Change Ways to Overcome the Obstacles 1. Clear cut Objectives 2. Develop a sound Management Information System 3. Create carefully planning premises 4. Develop a dynamic outlook away manages 5. Undertake a cost benefit analysis of all plans 26 Setting preliminary Objectives 2. Clarifying Organisational roles 3.

Setting subordinates Objectives 4. Recycling Objectives How to set Objectives 1. Setting Objectives in Govt 3. They include assumptions or forecast of the future and known conditions tht will affect the operations of plans. Eg as prevailing policies and existing company plans that control the basic nature of supporting plans.

Premises guide planning. Planning Premises Classification 1. Ranbaxy laboratories — to become a research based international pharma company. Significant influence over decision making process in an organization.

Tangible and Intangible premises Tangible — those which can be quantified. Eg — Money, Units of Production, etc Intangible Premises — refers to the qualitative factors like Public relations, company reputation, Employee morale, etc. Controllable and Uncontrollable Factors Controllable — entirely within the control and realm of management Eg- Policies, programmes, rules of the enterprises 32 Uncontrollable Factors — Enterprises has absolutely no control are uncontrollable premises.

Eg — War, natural calamities, new invention, population trends. Effective premises 1. Selection of premises which bear materially on the programs 2.

Development of alternative premises for contingency planning 3. Verification of the consistency of premises 4. Communication of the premises.

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Weaknesses in areas shown in the box of strength. External Opportunities O Consider risk also. Potentially the most successful strategy, utilizing the Organisation strength to take advantage of opportunities WO Strategy Mini — Maxi Eg. Retrenchment, Liquidation , Joint venture. Time series Analysis — involves decomposition of historical series into its various components.

Viz — trend, seasonal variations, cyclical variations and random variations. A trend can be known over the period of time and projections can be made about future. Historical Analogy — past history records 3. Correlation — to find the relationship between two variables.

Between advertising expenditure and sales volume, Future sales estimated on basis of change in adv expenditure 4. Regression — To measure the relationship between two variables. To find the relative movements of two or more interrelated series.

Delphi Technique — the minds of the experts in the concerned areas are probed systematically. No Planning Forecasting 1 Planning is more comprehensive, it involves many sub processes and elements in order to arrive at decision Forecasting is the estimate of future events and provides parameters to the planning 2 Requires several decision making Forecasting does not involve decision making 3 For planning top management level is involved Forecasting is usually carried by middle or lower level management 4 Commitment of action is the basic motive of planning Forecasting does not require any commitment but helps planning for future actions 35 Decision Making - is the process of choosing a course of action from available alternatives - Def.

Organizational and Personal Decisions 2. Routine and Strategic Decisions 3. Programmed and Non programmed Decision 4. Policy and Operating Decision 5. Individual and Group decision Decision making Process 1.

Defining the problem 2. Analysing the problem 3. Developing alternative solutions 4. Evaluating the Alternatives 5. Selecting the best alternatives 6. Implementing the decision Factors involved in Decision Making 1. Tangible Factors - things which can be measured, Fixed cost, operating cost, profits, machine, etc 2. Intangible factors — Unmeasurable elements. Employee morale, quality of labour relations, Consumer behaviour, etc.

Indecisiveness 2. Time pressure 3. Lack of Information 36 Failure to evaluate correctly 6. Lack of follow through Key to success in Decision Making 1. Be problem oriented not just solution oriented 2. Set decision making goals 3.Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

Views Total views. It has the advantage of the intimate knowledge of local conditions. The budget of an enterprise represents thesum total of income and expenses with profit or surplus. Setting Objectives in Govt 3. It is then managementtools and not an end. Long range needs of manpower 4. Every system is goal-oriented and it must have a purpose or objective to be attained. When an Entrepreneur executes his or her business model in more than one country International Business Occuring.