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Principles of management

Sharath G.M REG No:(S1AA3B91074A)

GREAT EASTERN MANAGEMENT SCHOOL, BANGALORE 2011 - 2012

CERTIFICATE
This is to certify that this project entitled Financial analysis of Tata steel co. by bonafied student SHARATH G.M with Reg no S1AA3B91074A in the completion of his first trimester MBA course for the subject Financial management by the concerned lecturer Mr. Satyanarayan , Great Eastern Management School, Bangalore

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all of them for their time, energy and wisdom. Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to Mr Satyanaryan for her helpful hand in the completion of my project. NAME: SHARATH G.M DATE: 31/10/11

Management: A Competency Base Approach

Chapter 1
Managing in a Dynamic Environment

Learning Objectives

Define Managers And Management. Explain What Managers Do. Describe The Competencies Used In Managerial Work And Assess Your Current Competency Levels.

Introductory Concepts: What Are Managerial Competencies?

Competency a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness
Managerial Competencies sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations

Why are Managerial Competencies Important?


You need to use your strengths to do your best You need to know your weaknesses You need developmental experiences at work to become successful leaders and address your weakness

You probably like to be challenged with new learning opportunities


Organizations do not want to waste human resources

Globalization deregulation, restructuring, and new competitors add to the complexity of running a business

A Model of Managerial Competencies


(adapted from Figure 1.1)
Communication Competency Planning and Administration Competency

Teamwork Competency

Global Awareness Competency

Self-Management Competency

Strategic Action Competency

A Model of Managerial Competencies


(adapted from Figure 1.1)
Communication Competency Planning and Administration Competency

Teamwork Competency

Managerial Effectiveness
Self-Management Competency

Global Awareness Competency

Strategic Action Competency

What Is An Organization?
A formal and coordinated group of people who function to achieve particular goals These goals cannot be achieved by individuals acting alone An organization has a structure, discussed in depth in Chapter 11

Characteristics of an Organization

An organization has a structure.

An organization consists of a group of people striving to reach goals that individuals acting alone could not achieve.

Management
Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals.
Goals Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment

- People responsible for directing the efforts aimed at helping organizations achieve their goals. - A person who plans, organizes, directs and controls the allocation of human, material, financial, and information resources in pursuit of the organizations goals.

Management

Management refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling. The process of reaching organizational goals by working with and through people and other organizational resources.

Function: A classification referring to a group of similar activities in an organization like marketing or operations. Functional Managers: A manager responsible for
just one organizational activity such as accounting, human resources, sales, finance, marketing, or production
Focus on technical areas of expertise Use communication, planning and administration, teamwork and selfmanagement competencies to get work done

(contd)

General Managers: responsible for the operations


of more complex unitsfor example, a company or division
Oversee work of functional managers Responsible for all the activities of the unit Need to acquire strategic and multicultural competencies to guide organization

Many Other types of managers

Basic Managerial Functions


(adapted from Figure 1.2)

Organizing

Planning

Leading

Controlling

Management Process and Goal Attainment

Management and Organizational Resources

Planning involves tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning
Determining organizational goals and means to reach them Managers plan for three reasons
1. Establish an overall direction for the organizations future 2. Identify and commit resources to achieving goals

3. Decide which tasks must be done to reach those goals

Discussed in depth in Chapter 7 & 8

Organizing means assigning the planned tasks to various individuals or groups within the organization and cresting a mechanism to put plans into action.

Organizing

Process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company Includes creating departments and job descriptions

Leading (Influencing) means guiding the activities of the organization members in appropriate directions. Objective is to improve productivity.

Leading
Getting others to perform the necessary tasks by motivating them to achieve the organizations goals Crucial element in all functions Discussed throughout the book and in depth in Chapter 15Dynamics of Leadership

1. Gather information that measures recent performance 2. Compare present performance to pre-established standards 3. Determine modifications to meet pre-established standards

Controlling
Process by which a person, group, or organization consciously monitors performance and takes corrective action

Discussed in depth in Chapter 10

Basic Levels of Management


(adapted from Figure 1.3)

Top Managers
Middle Managers First-Line Managers

Nonmanagers

Top Managers
Responsible for providing the overall direction of an organization

Develop goals and strategies for entire organization


Spend most of their time planning and leading Communicate with key stakeholdersstockholders, unions, governmental agencies, etc., company policies Use of multicultural and strategic action competencies to lead firm is crucial

Levels of Management

First-line Managers: have direct responsibility for


producing goods or services Foreman, supervisors, clerical supervisors

Middle Managers:
Coordinate employee activities Determine which goods or services to provide Decide how to market goods or services to customers Assistant Manager, Manager (Section Head)

Top Managers: provide the overall direction of an


organization Chief Executive Officer, President, Vice President

First-line Managers
Directly responsible for production of goods or services Employees who report to first-line managers do the organizations work

Spend little time with top managers in large organizations


Technical expertise is important Rely on planning and administration, self-management, teamwork, and communication competencies to get work done

Middle Managers
Responsible for setting objectives that are consistent with top managements goals and translating them into specific goals and plans for first-line managers to implement Responsible for coordinating activities of first-line managers Establish target dates for products/services to be delivered Need to coordinate with others for resources Ability to develop others is important Rely on communication, teamwork, and planning and administration competencies to achieve goals

Management Level and Skills

Introductory Concepts: What Are Managerial Competencies?

Competency a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness
Managerial Competencies sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations

Six Core Managerial Competencies: What It Takes to Be a Great Manager


Communication Competency
Planning and Administration Competency

Teamwork Competency Strategic Action Competency


Multicultural Competency Self-Management Competency

Communication Competency
Ability to effectively transfer and exchange information that leads to understanding between yourself and others Informal Communication
Used to build social networks and good interpersonal relations

Formal Communication Used to announce major events/decisions/ activities and keep individuals up to date
Negotiation Used to settle disputes, obtain resources, and exercise influence

Deciding what tasks need to be done, determining how they can be done, allocating resources to enable them to be done, and then monitoring progress to ensure that they are done Information gathering, analysis, and problem solving from employees and customers Planning and organizing projects with agreed upon completion dates Time management Budgeting and financial management

Accomplishing tasks through small groups of people who are collectively responsible and whose job requires coordination Designing teams properly involves people participate in setting goals having

Creating a supportive team environment gets people committed to the teams goals Managing team dynamics involves settling conflicts, sharing team success, and assign tasks that use team members strengths

Strategic Action Competency


Understanding the overall mission and values of the organization and ensuring that employees actions match with them Understanding how departments or divisions of the organization are interrelated Taking key strategic actions to position the firm for success, especially in relation to concern of stakeholders Leapfrogging competitors

Snapshot
Sony must sell off businesses that dont fit its core strategy of fusing gadgets with films, music, and game software. That means selling off its businesses in its Sony Financial Holdings, which are very profitable.

Howard Stringer, CEO, Sony

Multicultural Competency
Understanding, appreciating and responding to diverse political, cultural, and economic issues across and within nations
Cultural knowledge and understanding of the events in at least a few other cultures

Cultural openness and sensitivity to how others think, act, and feel Respectful of social etiquette variations
Accepting of language differences

Self-Management Competency
Developing yourself and taking responsibility

Integrity and ethical conduct


Personal drive and resilience

Balancing work and life issues


Self-awareness and personal development activities

Self-Management Competency
Snapshot
My strengths and weaknesses havent changed a lot in 51 years. The important thing is to recognize the things you dont do well and build a team that reflects what you know the company needs.

Anne Mulcahy, CEO, Xerox

Learning Framework for Managing


Part I: Overview of Management Part II: Managing the Environment Part III: Planning and Control Part IV: Organizing Part V; Leading