Class 28: Entrepreneur Process

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From concept to market, the entrepreneurship process takes places in the following phases.

• Identifying an opportunity
• Establish a vision
• Persuade Others
• Gather resources- financial, Human, others
• Create new venture
• Change and adapt with time

Challenges faced by entrepreneurs

• Planning - technical feasibility and economic viability
• Implementation
• Production
• Labour Management
• Marketing Management
• Financial Management
• Administrative Management

Scope of Entrepreneurship in India

India is on the brink of economic explosion. With globalization process on and supporting liberalization followed by Indian government- it is opening up a range of entrepreneurial opportunities for young generation. Even FDI entering India and venture capitalist willing to invest in new businesses, now is the best time for any entrepreneurial venture

Class 27: Entrepreneurship..

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Concept of Entrepreneurship
The process of creating a new Enterprise is called "entrepreneurship". It is the propensity of the mind to calculate risks with confidence to achieve predetermined business or industrial objectives.
Entrepreneurship may be defined as a process of action an entrepreneur undertakes to establish an enterprise
More specifically, entrepreneurship is a function of

• foreseeing investment and production opportunity,
• organizing an enterprise to undertake a new production process,
• raising capital, and hiring labour,
• arranging for the supply of raw material, and selecting managers for day-today operations of the enterprise

Entrepreneur
An individual who bears the risk of operating a business in the face of uncertainty about the future conditions

Characteristics of an entrepreneur

• Creativity
• Innovation
• Dynamism
• Leadership
• Team Building
• Achievement motivation
• Problem solving ability
• Goal orientation
• Risk taking
• Commitment

Class 25: Entrepreneurship: Introduction

Entrepreneurship is gaining imporatance these days. With the advent of global economy and supporting liberalization process, this is one of the best time for entrepreneurial ventures. Engineering students need to know about this becasue combined with thier technical education and contemporary economic atompshere, they represent one of the best category to consider entrepreneurship as a professional choices
Entrepreneurship is a processing of undertaking a risky venture for an anticipated economic reward. Entrepreneurship has been existing in human business for long time although in different forms and degrees. Broadly we can identify the elements of entrepreneurship in the followings

• Trades who is to buy at certain prices and hope to sell at uncertain, higher prices. e.g. buy grains from farmers and sell in markets
• Inventors seeking financial support to establish business based on their inventions. Thomas Edison commercialising his phone invention
• Wealth creators who used to adopt existing technologies to create a value chain. Iron and oil industrialists of 19th century
• Innovators who create an entirely new business such as Hot mail and Google Founders

BENIFITS of Entrepreneurships

• every successful industry set up by an entrepreneur acts as a "seed of economic growth" resulting in economic fruits
• creates jobs- enhances standards of living
• Earns revenue for Government
• Helps regional development
  

Class 24: PART -B : Entrepreneurship

Management and Entrepreneurship consists of two parts. Part A is about Management, and Part B is about Entrepreneurship.

In Part B we have the following Units

UNIT-5: Entrepreneurship: In this unit we shall study the phenomenon of entrepreneurship, its process, entrepreneur, importance of entrepreneurship and also characteristics of entrepreneurs.

UNIT -6 : covers small scale industries- entrepreneurial activity takes some organizational form- small scale industries are usually one of them

UNIT-7: Institutional Support- covers various institutions such as EDI and financial one which are supporting entrepreneurs.

UNIT 8: deals with all stages concerned with concept to market of a business idea and preparing a business project plan

Class 22: Leadership

Leadership in one of the way to influence people behaviour in organizations.
Definition of Leadership by Drucker
"Leadership is the lifting of man's vision to higher sights, the raising of man's performance to a higher standard, the building of man's personality beyond its normal limitations "

Functions of leader

• Goal-setting
• Planning
• Execution

Approaches to leadership

• Traits approach- qualities of a leader
• Behavioural Approach
• Contigency Approach

Class 21: Coordination

Modern enterprises use " division of labor", "specialization" and "departmentalization" as organizing principles. This leads to the scattering of activities needed to produce one product- say car into many departments. One department produces Chassis, the next paints it and the third fits wheels and tyres and so on. In other words, departments depend on each other to complete production.

Coordination is the process of managing the interdependence in work situations

Need for Coordination

• Division of labour
• Interdependence of units- pooled, sequential and reciprocal

Techniques of coordination

• Rules, procedures and policies
• Planning
• Hierarchy
• Direct contact
• Task force
• committe

Requisites for Cordination

• Direct contact
• Early start
• continuity
• Dynamism
• Clear cut objectives
• Simplified organiztion

Difficulties in Cordination

• Differences in Goal orientation
• Differences in Time orientation
• Differences in Interpersonal orientation
• Differences in Formality of structure

Class 20: Communication

Communication is a process of exchanging information. This information can be of any form and format and may included - data, fact, suggestions, opinion and even emotion. Communication is important because it the mechanism through an organization is channelises orders and feedback

Uses of Communication

Communication is used in the following processes.

• Recruitment
• Orientation
• Performance
• Evaluation
• Projecting image- brand building
• Decision process

Forms of Communication
Communication can be classified based on the following.

• Formal or informal - official or through informal networks
• Directions- Downward- from higher up to subordinates, upward- from subordinates to higher ups, Horizontal - between equal ranking employees and external - with outside agencies
• Media - Oral and written

Communication process

Communication process consists the following steps

• sender ( who has a message to send)
• encoding ( idea into language form)
• transmission- using channel to send message
• receiver
• decoding
• feedback- acknowledgement and seeking clarification

Class 19: Motivation Theories

Motivation theories explain why and how of motivation. They try to uncover the factors that motivate people and also degree to which people get motivated. Understanding of motivation theory is essential both as a manager and employee.

There are six major motivation theories.

• Maslow's Hierarchy of needs theory
• Herzberg's Two factor theory
• McClelland's Achievement theory
• Victor Vroom's Expectancy theoy
• Adam's Equity Theory
• Skinner's Behavior Modification Theory


• Maslow's Hierarchy of needs theory -identifies six basic needs- basic physiological needs,security needs,social, esteem and self actualisation needs
• Herzberg's Two factor theory - identifies two factors - maintainance or hygiene needs and motivator
• McClelland's Achievement theory- identifies three major needs- affiliation needs, achievement needs, power needs
• Victor Vroom's Expectancy theory- identifies expectancy of the individual as the basic motivating factor- someone will be motivated enough provided he is interested in the task given and plus has some expectancy of success associated with it
• Adam's Equity Theory - This theory suggest that people want them to be treated on par with others- for works that demand similar efforts- they want to be rewarded equally
• Skinner's Behavior Modification Theory - This theory states that people repeat those behaviour that are awarded and discard those set of behaviours that are punished. It consists of positive reinforcement (repetition), negative reinforcement ( avoid) , punishment

Class 18: Motivation, its nature and determinants

Definition of Motivation
Motivation is the process of channelizing a person's inner drives so that he wants to accomplish the goals of the organization.

Nature of Motivation

• Individuals differ in their motivation
• Sometimes the individual himself in unaware of his motivation
• Motivation change
• Motivations are expressed differently
• Motivation is complex

Determinants of Motivation

• The Individual
• Organizational climate
• Exogenous variables

Class 17:(13.03.09) Directing & Controlling

Planning and Organising functions represent preparation stage. Planning provides agenda- ie plans and Organizing provides structure and staffing to match that agenda. Now is the time to implement the plans.
Implementation of plans starts with Directing and Controlling Function. Directing the process and techniques of issuing order in order to carry out work to realise business objectives stated in plans.
Directing consists of

• Issuing orders
• Motivating and Leading people towards goals

In order to be successful in directing function , here are the following requirements.

• Harmony of objectives
• Unity of command
• Communication
• Direct supervision
• Follow up

To be effective orders must be

• clear and complete
• compatible with organizational objectives
• Compatible with group and individual objectives
• operational

Methods to ensure compliance to order

• Force
• Paternalism
• Bargain
• Cooperation

class 16: Making Committes effective

Committes are extensively used in organizations. They have highest frequency of usage both in business and government.
Advantages of Committes are

• Representations- all HOD's take part
• Pooling of Knowledge and experience- diversity of committes members
• Provide exposure to all other issues
• Impersonal in nature

Making Committes Effective

• Keep number of members to a minimum
• Authority and agenda should be spelt out
• Meeting should be conducted in planned manner
• Periodic review

Class 15: Factors to be considered in organizing

A final decision in choosing an appropriate type of organization depends on the following factors

• Specialisation
• Coordination
• Economy
• Whole task

Type of Organization structure

• Mechanistic organization- formal structure of hierarch
• Organic or behavioural structure - flexible structure
• Collateral organizations
• Virtual organizations- connected by IT
• Committees

Class 14 : Departmentalisation

The process of divinding an organiztion into different working units is called departmentalization. Departmentalization can be done on the following basis

• Functional - production, finance
• Products- consumer products, industrial products
• Customers- civilian, military
• Regions or territory- North, South
• Divisional - Time, process

However in practice the following additional types of organizations are also seen

• Combined- a combination of product and territory
• Matrix- a combination of functional and product

Class 13 : Span of Management

Span of Control

One of the prime objectives of organizing process is to establish hierarchy. In simple terms hierarchy describes reporting structure-who is the superior and who are its subordinates. The next question to be asked in organizing process is determining an appropriate number of people to be reported to any given authority or superior.

The number of people who report to any given authority is called span of control.

For example : The span of control of our Principal is 7 HODs + 4 Deans + One Manager = 12

The span of control of our HOD is 24.

Experts vary in suggesting appropriate number for span of control. Some say the ideal number is 3-6 and some suggest as many as 20. Of course span of control depends on many factors such as nature of work, geograpgical spread of subordinates etc

Graicunus theory of span of control

According to him span of control must be determined by the following factors

• Direct one-to-one relationships
• Direct group relationships
• Cross-relationships