Course Material of ESDP on Food Processing in Hindi + English

MANAGEMENT OF SMALL ENTERPRISESThe goal <strong>of</strong> a business enterprise is generally to earn more and more pr<strong>of</strong>it for longterm survival and growth. This goal is achieved by blending the resources or input elementsnamely:MEN, MACHINE, MATERIAL, MONEY, MARKET, METHOD and MANAGEMENT. Ofthese elements, “ Management” stands at the apex <strong>of</strong> the enterprise pyramid.Management is defined as the process <strong>of</strong> getting things done through the utilisation <strong>of</strong>resources. It is that function <strong>of</strong> an enterprise which concerns itself with the direction andcontrol <strong>of</strong> various activities to attain the business objectives.Management’s primary function is to make decisions that determine the future course<strong>of</strong> actions and to see that the desire goal is achieved as per decisions planned.Due to competitive market conditions, the sales price <strong>of</strong> a product having a particularquality is fixed. Hence, in order to earn more and more pr<strong>of</strong>it, the entrepreneur should reducethe cost <strong>of</strong> production and overheads. This will require application <strong>of</strong> modern tools andtechniques <strong>of</strong> management in the field <strong>of</strong> production, finance, personnel etc.In case <strong>of</strong> small enterprises, the entrepreneur is his own manager. He can not afford toengage expert in specific fields like large scale industries. One should be very watchful on hisown performance. He should constantly compare his performances and motivate himself forbetter and better performance. Some <strong>of</strong> the managerial qualities may be learn and others to bedeveloped. To be a successful manger, the entrepreneur must utilise all his resources in themost efficient manner so that the sum <strong>of</strong> the outputs is larger than the sum <strong>of</strong> the inputs.Management is both science and an art. while scientific techniques <strong>of</strong> managementare applied to materials governed by known physical laws, the techniques <strong>of</strong> management areapplied to people and must rely on people to ensure that they are properly applied. Hence, itis also regarded at an art.DUTIES AND RESPONSIBILITIES OF MANAGEMENT:1. To organise managerial and supervisory function.2. To develop highly efficient plant layout and equipment.3. To establish most simple and economic methods <strong>of</strong> production.4. To arrange proper division <strong>of</strong> work and responsibility to individuals and groups.5. To regulars internal transport, material, tools, stores, movement and routing <strong>of</strong> operations.6. To develop a system for planning production ahead.7. To standardize, simplify the machinery, tools, equipment, materials and processes.8. To maintain discipline and to keep control <strong>of</strong> the employees.9. To suggest new ideas and improveness.10. To keep coordination among the staff at various levels.11. To keep proper records.FUNCTION OF MANAGEMENT:The wisdom with which a manager acts or performs his functions may well decide thefuture <strong>of</strong> the enterprise. The functions <strong>of</strong> management are outlined below.1. PLANNING: Planning is essentially dealing in advance what is to be done. To plan is topropose a forward programme for guiding the future affairs <strong>of</strong> an enterprise. A plan52