MANAGEMENT

AND
ENTREPRENEURSHIP
 MANAGEMENT
AND
ENTREPRENEURSHIP

N.V.R. Naidu
B.Tech., M.Tech(Indl.Engg)., PhD (Indl.Engg)
Professor and Head
Dept. of Industrial Engineering and Management
M.S. Ramaiah Institute of Technology, Bangalore

T. Krishna Rao
B.E, M.S (Mech) (IIT-M), PhD, M.B.A
(Formerly Deputy General Manager, HMT LTD)
Assistant Professor,
Dept. of Mechanical Engineering
M.S. Ramaiah Institute of Technology, Bangalore

I.K. International Publishing House Pvt. Ltd.

NEW DELHI • BANGALORE
Published by
I.K. International Publishing House Pvt. Ltd.
S-25, Green Park Extension
Uphaar Cinema Market
New Delhi - 110 016 (India)
E-mail : ik_in@vsnl.net

ISBN: 978-81-906757-8-9

© 2008 I.K. International Publishing House Pvt. Ltd.

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted in any form or any means: electronic, mechanical,
photocopying, recording, or otherwise, without the prior written permission from
the publisher.

Published by Krishan Makhijani for I.K. International Publishing House Pvt. Ltd.,
S-25, Green Park Extension, Uphaar Cinema Market, New Delhi - 110 016 and Printed
by Rekha Printers Pvt. Ltd., Okhla Industrial Area, Phase II, New Delhi - 110 020.
 Dedicated to our parents

Shri N. Naraiah Naidu Shri T. Sree Rama Murthy

and
Smt. N. Padmavathi Smt. T. Atchuthamba

N.V.R. Naidu T. Krishna Rao

 PREFACE
This book presents a various topics like management, entrepreneurship, small
scale industry, institutional support, preparation of project at one place.
This book is organized in two parts. Part one deals with management and its
functions like planning, organising, staffing, directing and controlling, marketing
management, product development, sales management and cost accounting. Part
two deals with entrepreneurship, small scale industry, institutional support,
preparation of report and industrial ownership.
Entrepreneurship is a new emerging subject, the details available on it are
limited and scattered. The details of small scale industry, institutional support and
preparation of report help and provide insight and guidelines to the young and
promising entrepreneurs to start an enterprise.
The contents are planned in a systematic and a logical sequence to understand
the subject with ease. It is presented in simple and self learning style; no previous
knowledge of management is required to understand the subject.
This book is meant for engineering and management students of various
universities.
The authors will be very grateful for any suggestions and corrections for the
improvement of this book.

N.V.R. Naidu
nvrnaidu@gmail.com

T. Krishna Rao
krishnaraot@rediffmail.com
 ACKNOWLEDGEMENTS
We express our sincere thanks to the Management and Directors of Gokula
Education Foundation, Bangalore for their support. We extend our hearty thanks
to Dr. K. Rajanikanth, Principal, M.S. Ramaiah Institute of Technology, Bangalore
for his encouragement.
Special thanks to Smt. Devika for DTP work.
Our thanks are also due to our family members for their help and support
without which this book would not have taken this shape.
We thank all those who have directly or indirectly contributed in preparing
this book.

N.V.R. Naidu
T. Krishna Rao
 CONTENTS

MANAGEMENT

Chapter 1 Introduction 1 – 2
1.1 Elements of management 1

Chapter 2 Management 3 – 19
2.1 Meaning 3
2.2 Nature and Characteristics of Management 4
2.3 Scope 4
2.4 Functional Areas of Management 5
2.5 Management as a Science, Art or Profession 7
2.6 Management and Administration 8
2.7 Roles of Management 10
2.8 Levels of Management 11
2.9 Development of Management Thought 12
2.10 Early Management Approaches 12
2.10.1 Psychological Development: (Before 17th century) 13
2.10.2 Scientific Management: (18th – 19th century) 13
2.10.3 Administrative Management 15
2.10.4 Human Relations Movement 16
2.11 Modern Management Approaches 17
2.11.1 Behavioural Approach 17
2.11.2 Quantitative Approach 18
2.11.3 Systems Approach 18
2.11.4 Contingency Approach 19
Review Questions 19

Chapter 3 Planning 20 – 32
3.1 Nature of Planning 20
3.2 Importance of Planning 20
3.3 Purpose of Planning 22
3.4 Objectives 22
3.5 Types of Plans 23
3.5.1 Standing Plans 24
3.6 Decision Making 25
3.7 Steps in Planning and Planning Premises 29
3.8 Hierarchy of Plans 30
Review questions 31
x Contents

Chapter 4 Organizing 33 – 64
4.1 Nature of Organization 33
4.1.1 Formal Organization 33
4.1.2 Informal Organization 33
4.2 Purpose of an Organization 34
4.3 Principles of Organization 34
4.4 Types of Organisation 35
4.4.1 Line Organisation 36
4.4.2 Functional Organization (STAFF organisation) 38
4.4.3 Line and staff Organization 40
4.4.4 Committee Organization 42
4.4.5 Matrix Organization 44
4.5 Departmentation 45
4.6 Committees 48
4.6.1 Principles 48
4.6.2 Types of Committees 49
4.6.3 Designing an Organisational Structure 50
4.6.4 Advantages of Organization Chart 53
4.7 Centralisation Vs Decentralisation 53
4.7.1 Concept of Centralization and Decentralization 53
4.7.2 The Process of Delegation 54
4.7.3 Clarity of Delegation 55
4.7.4 Recovery of Delegated Authority 55
4.7.5 Difficulties in Delegation 55
4.8 Organization Levels and Span of Control 56
4.8.1 Organisation with Narrow Span 57
4.8.2 Organization with Wide Span 57
4.8.3 Factors determining an Effective Span 58
4.8.4 Authority 59
4.8.5 Responsibility 60
4.8.13 Scalar Principle 61
4.9 Management by Objectives (MBO) 61
4.10 Management by Exception (MBE) 62
Review Questions 64

Chapter 5 Staffing 65 – 72
5.1 Nature and Importance of Staffing 65
5.2 Selection 67
5.2.1 Techniques of Selection 67
5.3 Recruitment 70
Review Questions 72
 Contents xi

Chapter 6 Directing 73 – 106

6.1 Meaning and Nature of Directing 73
6.2 Leadership 74
6.3 Leadership Styles 75
6.3.1 Traits Approach 75
6.3.2 Behavioural Approach 75
6.3.3 Contingency Approach to Leadership 79
6.4 Motivation 79
6.4.1 Introduction 79
6.4.2 Characteristics of Motivation 79
6.4.3 Positive and Negative Motivation 81
6.4.4 Human Needs 82
6.4.5 Maslow’s Theory of Motivation 83
6.4.6 Behaviour 84
6.4.7 Goals 84
6.4.8 Motivating Situation 86
6.4.9 Expectancy and Availability 87
6.4.10 Goal Oriented Behaviour 87
6.4.11 Integration of Organizational Goals and Needs of an Employee 89
6.4.12 Needs of an Employee 90
6.4.13 Hawthorne Studies and its Findings 90
6.4.14 Theory X and Theory Y 91
6.4.15 Immaturity – Maturity Theory 92
6.4.16 Motivation-Hygiene Theory 93
6.5 Communication 95
6.5.1 Systems of Communication 95
6.5.2 Barriers to Successful Communication 98
6.5.3 Techniques to Overcome Barriers and Improve Communication 99
6.6 Coordination 99
6.6.1 Meaning 99
6.6.2 Importance of Coordination 100
6.6.3 Techniques of Coordination 102
6.6.4 Principles or Requisites of Effective Coordination 103
6.6.5 Types of Coordination 104
6.6.6 Coordination and Co-operation 104
Review Question 105

Chapter 7 Controlling 107 – 112

7.1 Definition 107
7.2 Steps in controlling 107
7.3 Essentials of a Sound Control System 108
7.4 Methods of Establishing Control 109
Review Questions 112
 Management and Entrepreneurship

25%
OFF

Author : N V R Naidu And T

Publisher : IK International ISBN : 9788190675789
Krishna Rao

Type the URL : http://www.kopykitab.com/product/6784

Get this eBook