Management in ancient world…

The recorded use of organised management dates back to 5000 B.C.

This was the period of agriculture revolution.It existed in India China and Egypt.Civilization evolved with evolution of managers.They became the priests, the kings, the

ministers.Sumerian civilization contained evidences of

managerial practices.

Pre-existence of Management Principles

Buddha’s order and the Sangha in 530 B.C., provides sufficient evidence in India about the use of the principles of management.

Importance of Management

Optimum utilisation of resourcesCordial industrial relationsMotivates employeesExpansion of businessStability and prosperityTeam spiritEffective use of managers

Henry Fayol’s Principles of Management

Division of workAuthority and responsibilityDisciplineUnity of CommandUnity of DirectionCentralisationEquityEsprit de Corps (Team Spirit)

What is commerce?

Purchase and sale of products for earning profits

Constant part of historyPeople traded their excess goods with others

for needed goodsBefore technological advances, people were

only able to trade with their neighbours

Functions of commerce

It facilitates trade and provides aids to tradeRemove the hindrances of persons, place,

time, exchange and knowledgeCreate contact between producer and

consumerFacilitate storage of goodsAvailability of creditAdvertising

Commerce & Management

When a person engages in the commerce then they deal with the different activities like accounting, financing, management, human resource management and marketing

Management is a part of commerce

Management in epicsRamayana

How to live a good lifeBattle of good over evilDharma : right action, sacred duty according to

one’s social role, status and genderExplores the problem of Authority and ObedienceRam : epitome of virtue, great leaderRavana : authored Ravana Sanhita, a powerful

book on Hindu astrology, also possessed thorough knowledge of Ayurveda and political science

MahabharatPreparation : Pandavas prepared for the war

intensively, Arjun – Divyastras.Leadership : Arjun the supreme commander,

Krishna the counselor and motivator. Allies : Pandavas made powerful allies like

Dwarka, Magadha etc. through marital arrangements.

Team Spirit : Pandavas working towards 1 goal, but Kauravas fighting individual battles.

Commitment : Pandavas were committed towards winning the war, Kauravas not completely committed.

Emperial management

Chanakya : (350-283 BCE) Pioneer in Economics, books : Arthashastra (monetary, fiscal policies, welfare, international relations & war strategies) and Nitishastra (Indian way of life)

Ashoka : (273-232 BCE) a great leader, controlled a huge army, a great strategist, later taught Buddhism and peace. Administration and infrastructure development

Akbar : (1556-1605) Ain-i-Akbari or “Institutes of Akbar” detailed document of Akbar's administration, also had the Navratnas, the jewels of Akbar’s court, all 9 were very intelligent and masters of their field

Management in west

Materialistic, achievement oriented and ambitiousHardworking and Individualistic approachBalanced work culture – blend of formal and

informalPrefer top down approachDevelop Employee skillsLoyalty towards profession and not organization.

Shortcomings of western management

No peace of mind and happiness.Rise in the cases of diseases like Insomnia,

Depression, high blood pressure, and heart attacks.

Rise in the cases of divorces.Atrocities on human being like rape, murder,

suicides are increasing.

Japanese management

Importance OF Education Dedicated service- hard work. ‘Shushin Koyo’-permanent employment Holistic approach – treating employee as a man playing different roles Self – management Long term relationship Emphasizes Spiritualism

Japanese management (contd.)

Business ethics – quality products & services. Joint decision making Professional life kept away from personal life. Informal relationshipToyota’s 14 principles of management are

influenced by Japanese philosophy.

Chinese management

Chinese principles Jen & Yi-Jen means ‘Love, Friendship,

Benevolence’ and Yi means ‘righteousness. Zen – Focusing mind to bring harmony with

nature.Tao – Law of Integration & NatureYing – Yang – Harmonious balance between

positive & negative GUNAXI - Relationship is Important Believe in Thoughts “Thought Counts” Intention

Role of ethics in management

God, Give us Men!God, give us men, A time like this demands strong

mind, great hearts, true faith and ready hands,Men whom the trust of office does not kill;Men whom he spoils of office cannot buy;

Men who possess opinions and a will;Men who have honour; men who will not lie.

-Josiah Gilbert Holland

Meaning

Derived from the Greek word ‘ethos’ which means character.

Refers to code of conduct that guides an individual in dealing with others

Ethics deals more with good than with evil

Definition of EthicsR.M. Kidder defines ethics as “the study of moral obligation involving the distinction between right and wrong”

There are two different standpoints of ethics1. Internal Ethics2. External Ethics

Benefits of Managing Ethics in the Workplace

Ethics programs help maintain a moral course in turbulent times

Ethics programs cultivate strong teamwork and productivity Ethics programs support employee growth and meaning Ethics programs are an insurance policy -- they help ensure

that policies are legal Ethics programs help avoid criminal acts “of omission” and

can lower fines Ethics programs help manage values associated with quality

management, strategic planning and diversity management -- this benefit needs far more attention

Ethics programs promote a strong public image

Ethical standards at various levels

1. Individual Level: Ethics at individual level is normally the end result of personal upbringing, schooling, religious affiliations and organizational group dynamics

2. Organizational Level: The management should decide goals that are within the reach of employees

3. Societal Level :All unethical practices are not covered by law. Hence the people should possess adequate knowledge to discourage such unethical practices

4. International Level: Different countries have different laws, customs and traditions. Hence there is bound to be difference in ethical practices. It is important that agreements between foreign organizations or governments must follow certain universally accepted standards of ethics

Origin & history of accountancy

Ancient accountancy- Existence in 8500 B.CMiddle ages- In 13th & 15th century - advancement in

accountancy. In 1211 A.D, a Florentine banker kept books of

accountancy. In 1340 A.D, double entry system was

introduced In 1494 A.D introduction of first systematic

record by Luca Pacioli.

What is accountancy?

Accounting has been defined by the AICPA as

"The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.“

Importance of accountancy

To determine whether the business has earned profit or not.

To determine the financial strength of the business

To enable you to exercise control over your future progress.

To assist your decision making.

What is auditing?

Auditing- “ A systematic examination of financial or

accounting records by a specialized inspector, called an auditor, to verify their accuracy and truthfulness. A hearing during which financial data are investigated for purposes of authentication.”

Importance of auditing

To ascertain whether the Profit & Loss A/c & Balance Sheet is true & fair.

To ascertain errors & frauds, if any.

Companies Auditors Report Order(CARO )

Introduction Introduced in 2003 by replacing MAOCARO Changes towards more corporate disclosures and Investor

protection New clauses towards corporate disclosures Clauses increase the protection of interest of depositors/

lenders Enhancement of limits/ coverage of reporting Not applicable to Banking, Insurance, and specific private

Ltd. companies

Matters to be reported?

Maintenance of proper records of fixed assetsProper inventory records being maintained.Money raised through public issueTerms & rate of interest of loan given and takenDealing in various types of securities Related party transactionsPublic Deposits Internal control & internal audit systemGuarantee for loan

Balanced scorecard

The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action

strategic planning and management system that is used extensively in business and industry.

Four perspectives- Learning & Growth, Business Process, Customer & Financial perspectives

Financial perspectives-Profitability, Growth, cost –effective operation

Why implement a balanced scorecard?

Increase focus on strategy and results Improve organizational performance by measuring what matters Align organization strategy with the work people do on a day-to-day basis Focus on the drivers of future performance Improve communication of the organization’s Vision and Strategy Prioritize Projects / Initiatives

Management Accounting

Meaning – Interpretation of Financial StatementsPreparation of financial reports for

management and non-management groupsPurpose – Form strategies of the company.Planning business activitiesOptimal utilization of resources.

Cash flow statement

Traces changes in cash and cash equivalentsReflects company’s ability to pay.Consists three heads : Operating, Investing,

Financing activities.Operating – Purchase of raw material, building

inventory, etc. Investing – Purchase and sales of assets,

investments, Loans obtainedFinancing – Issue & redemption of shares,

payment of dividends.

Fund flow statement

Summary of inflows and outflows of the fundShows how funds are obtained and used for

various activitiesDetermines utilization of company resourcesIndicates how profits have been invested

Ratio analysis

Crucial tool for management, investor, shareholders for evaluation of company.

Profitability Ratio – Net Profit Ratio, Gross Profit Ratio, ROI

Liquidity Ratio – Current Ratio, Quick RatioGearing Ratio – Debt- Equity, Capital Gearing

RatioFinancial Ratio – Asset Turnover, Debtors

Turnover, Stock Turnover.

Role of IT in management

Information Technology

Manufacturing SectorAgricultural

Sector

Service Sector

Role of IT in Management

Manufacturing sectorDesigningSupply Chain ManagementAutomated machines

Agricultural sectorImproved productivityReliable information to farmers

Role of IT in Management

Service sectorHotel AirlinesBankingTelecommunicationMedia

Some Successful Innovations

E-Commerce E-Business Social Media Marketing SAP Tally Oracle ERP

Benefits of IT in Management

• Reduce cost• Compare performance • Better working environment • Better customer relationship

Reduce costHelps in planning & decision-makingHelps to compare performance Better storage of dataBetter working environment Better customer relationshipSaves time

Thank You!