Introduction
Before discussing the principles and activities of management, let us discuss in detail what are the responsibilities of various functional departments or individuals and how they are responsible for their work.
The main responsibility of a manufacturing organization is to deliver the products to their customers or buyers. These products are the output of the manufacturing organization. The inputs required for this are raw material, labor etc. So it can be said that the primary function of a manufacturing company is to convert raw materials into manufactured goods. The inputs or supplies required for this are raw material, machinery or equipment labor etc.
But the question is that, who will supply this raw material to the production department? Who will hire skilled workers for this work?
The answer to the first question is undoubtedly that it requires a warehouse or warehouse of raw materials. The answer to the second question is the Department of Management in Human Resources. Next, the question that arises is whether all the raw materials supplied from the warehouse to the production unit or manufacturing department are as per the design specification or predetermined or not? Of course, it is imperative that the raw materials are of the required quality and size. The question that arises in this context is whether the raw materials are in accordance with the design specification and of the right quality. Who is responsible for checking it? Therefore, it requires an incoming inspection department.
The job of this department is to check the quality of the raw materials supplied to the raw material supplier or the supplier and store the acceptable raw materials and send the rejected raw materials back to the supplier. These shipping companies are called vendors. Those who perform these tasks are called inspectors and their appointment is also the responsibility of the HRM Department.
So far we have familiarized with the functions of Incoming Inspection, Raw Materials Stores and Production Department and learned that it is the responsibility of Incoming Inspection Department to store only acceptable and correct quality raw materials and return the disposable raw materials to the vendor. The question that arises here is on what basis the vendor will supply the raw materials. Or how vendors will know which raw materials to supply, in what quantities and at what time. The document that records the vendor's response to such queries is called a purchase order. The purchase department prepares such orders and dispatches them to the respective suppliers in due time.
How can the purchase department know all this information regarding raw materials?
The document containing all this information available to the operations department is called production plan. Preparation of production plan is the responsibility of Production Planning & Control (PPC) department. Production planning documents contain weekly and monthly production quantities. From that production plan, a bill of materials (BOM) or quantity of raw materials required for production - weekly and monthly - is prepared. Based on this bill of materials, the purchase department creates the purchase order.
The PPC department prepares the production plan from which the bill of materials is subsequently prepared. But how much of a cargo to prepare is determined? That is, the production plan is made based on what?
Yes, the information required by the Production Planning & Control department is how much and at what time the product will be shipped to the market.
The document required for this is called marketing plan. Responsible Marketing Department for this. The marketing department prepares the marketing plan by analyzing the needs of the buyers or buyers. Before marketing the manufactured goods, the overall quality of the material is checked. This process is called Final Inspection. At the time of final examination only acceptable goods are marketed after payment of all government taxes and duties. And it reaches the customer.
From the above discussion we can see that the functions of management are mentioned below –
(i) Production Management
(ii) Material Management
(iii) Quality Management
(iv) Marketing Management
(v) Human Resource Management
(vi) Financial Management
All these areas are an integral part of the organization's activities. But to exercise all these dimensions of management it is absolutely necessary to formulate policies. Those principles will be of universal character i.e. applicable to all situations, subject to minor refinements. The principles of management are discussed in detail –
