Managerial competencies are sets of knowledge, skills, behaviors, and attitudes that contribute to personal and managerial effectiveness. They include communication, planning and administration, teamwork, strategic action, multicultural awareness, and self-management abilities. Understanding managerial competencies is important for organizations to develop successful leaders, address weaknesses, and improve performance. Material management aims to obtain the right quality and quantity of materials at the right time, place, and cost through techniques like forecasting, purchasing, storage, inventory control, and supplier relationship management. It helps organizations achieve goals in a cost-effective manner.

1. Principles of Management

2. Introductory Concepts: What Are
Managerial Competencies?
 Competency – a combination of knowledge,
skills, behaviors, and attitudes that contribute to
personal effectiveness
 Managerial Competencies – sets of knowledge,
skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations

3. Why are Managerial Competencies
Important?
 You need to use your strengths to do your best
 You need to know your weaknesses
 You need developmental experiences at work to become
successful leaders and address your weakness
 You probably like to be challenged with new learning
opportunities
 Organizations do not want to waste human resources
 Globalization deregulation, restructuring, and new
competitors add to the complexity of running a business

4. A Model of Managerial Competencies
Teamwork
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Self-Management
Competency
Communication
Competency
Managerial
Effectiveness

5. What Is An Organization?
 A formal and coordinated group of people who
function to achieve particular goals
 These goals cannot be achieved by individuals acting
alone

6. Characteristics of an Organization
• An organization has a structure.
• An organization consists of a group of people striving
to reach goals that individuals acting alone could not
achieve.

7. Management
Organization
Two or more people who work together in a structured way
to achieve a specific goal or set of goals.
Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals, goals are
fundamental elements of organization.
The Role of Management
To guide the organizations towards goal accomplishment

8. - People responsible for directing the efforts aimed
at helping organizations achieve their goals.
- A person who plans, organizes, directs and
controls the allocation of human, material,
financial, and information resources in pursuit of
the organization’s goals.

9. Management
• Management refers to the tasks and activities
involved in directing an organization or one of
its units: planning, organizing, leading, and
controlling.
• The process of reaching organizational goals by
working with and through people and other
organizational resources.

10. Functional Managers: A manager responsible for
just one organizational activity such as accounting,
human resources, sales, finance, marketing, or
production
 Focus on technical areas of expertise
 Use communication, planning and
administration, teamwork and self-
management competencies to get work
done
Function: A classification referring to a group of
similar activities in an organization like marketing or
operations.

11. General Managers: responsible for the operations
of more complex units—for example, a company or
division
 Oversee work of functional managers
 Responsible for all the activities of the unit
 Need to acquire strategic and multicultural
competencies to guide organization
(cont’d)
Many Other types of managers

12. Basic Managerial Functions
Organizing
Planning
Controlling
Leading

13. Management Process and Goal Attainment

14. Management and Organizational
Resources

15. Planning involves tasks that must be performed to attain
organizational goals, outlining how the tasks must be
performed, and indicating when they should be performed.
 Determining organizational goals and means to reach them
 Managers plan for three reasons
 Establish an overall direction for the
organization’s future
 Identify and commit resources to achieving
goals
 Decide which tasks must be done to reach those
goals

16. Organizing means assigning the planned tasks to
various individuals or groups within the
organization and cresting a mechanism to put plans
into action.
 Process of deciding where decisions will be made, who will
perform what jobs and tasks, and who will report to whom in
the company
 Includes creating departments and job descriptions

17.  Leading (Influencing) means guiding the
activities of the organization members in
appropriate directions.
 Objective is to improve productivity.
 Getting others to perform the necessary tasks by
motivating them to achieve the organization’s goals
 Crucial element in all functions

18. 1. Gather information that measures recent performance
2. Compare present performance to pre-established
standards
3. Determine modifications to meet pre-established
standards
 Process by which a person, group, or organization
consciously monitors performance and takes corrective
action

19. Basic Levels of Management
Top
Managers
Middle Managers
First-Line Managers
Nonmanagers

20. 1. Top Managers
 Responsible for providing the overall direction of an
organization
 Develop goals and strategies for entire organization
 Spend most of their time planning and leading
 Communicate with key stakeholders—stockholders,
unions, governmental agencies, etc., company policies
 Use of multicultural and strategic action competencies to
lead firm is crucial
 Top Managers: provide the overall direction of an
organization Chief Executive Officer, President, Vice
President

21. Levels of Management
2. First-line Managers: have direct responsibility for
producing goods or services Foreman, supervisors, clerical
supervisors
3. Middle Managers: (Assistant Manager, Manager Section
Head)
Coordinate employee activities
Determine which goods or services to provide
Decide how to market goods or services to customers

22. 4. First-line Managers
 Directly responsible for production of goods or services
 Employees who report to first-line managers do the
organization’s work
 Spend little time with top managers in large organizations
 Technical expertise is important
 Rely on planning and administration, self-management,
teamwork, and communication competencies to get work done

23. Middle Managers
 Responsible for setting objectives that are consistent with top
management’s goals and translating them into specific goals and
plans for first-line managers to implement
 Responsible for coordinating activities of first-line managers
 Establish target dates for products/services to be delivered
 Need to coordinate with others for resources
 Ability to develop others is important
 Rely on communication, teamwork, and planning and
administration competencies to achieve goals

24. Management Level and Skills

25. Six Core Managerial Competencies:
What It Takes to Be a Great Manager
 Communication Competency
 Planning and Administration Competency
 Teamwork Competency
 Strategic Action Competency
 Multicultural Competency
 Self-Management Competency

26. Communication Competency
 Ability to effectively transfer and exchange information
that leads to understanding between yourself and others
 Informal Communication
 Used to build social networks and good
interpersonal relations
 Formal Communication
 Used to announce major events/decisions/
activities and keep individuals up to date
 Negotiation
 Used to settle disputes, obtain resources,
and exercise influence

27.  Deciding what tasks need to be done, determining how they can
be done, allocating resources to enable them to be done, and
then monitoring progress to ensure that they are done
 Information gathering, analysis, and problem solving from
employees and customers
 Planning and organizing projects with agreed
upon completion dates
 Time management
 Budgeting and financial management

28.  Accomplishing tasks through small groups of
people who are collectively responsible and
whose job requires coordination
 Designing teams properly involves having
people participate in setting goals
 Creating a supportive team environment gets
people committed to the team’s goals
 Managing team dynamics involves settling
conflicts, sharing team success, and assign tasks
that use team members’ strengths

29. Strategic Action Competency
 Understanding the overall mission and values of
the organization and ensuring that employees’
actions match with them
 Understanding how departments or divisions of the
organization are interrelated
 Taking key strategic actions to position the firm for
success, especially in relation to concern of
stakeholders
 Leapfrogging competitors

30.  Understanding, appreciating and responding to
diverse political, cultural, and economic issues
across and within nations
 Cultural knowledge and understanding of the
events in at least a few other cultures
 Cultural openness and sensitivity to how others
think, act, and feel
 Respectful of social etiquette variations
 Accepting of language differences
Multicultural Competency

31. Self-Management Competency
 Developing yourself and taking responsibility
 Integrity and ethical conduct
 Personal drive and resilience
 Balancing work and life issues
 Self-awareness and personal development
activities

32. Learning Framework for Managing
Part I: Overview of Management
Part II: Managing the Environment
Part III: Planning and Control
Part IV: Organizing
Part V; Leading

33. MATERIAL MANAGEMENT

34. Definition
 It is concerned with planning, organizing and controlling the flow of
materials from their initial purchase through internal operations to
the service point through distribution.
OR
 Material management is a scientific technique, concerned with
Planning, Organizing &Control of flow of materials, from their initial
purchase to destination.
MATERIAL MANAGEMENT

35. AIM OF MATERIAL MANAGEMENT
To get
1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost

36. PURPOSE OF MATERIAL MANAGEMENT
 To gain economy in purchasing
 To satisfy the demand during period of replenishment
 To carry reserve stock to avoid stock out
 To stabilize fluctuations in consumption
 To provide reasonable level of client services

37. Primary
•Right price
•High turnover
•Low procurement
•& storage cost
•Continuity of supply
•Consistency in quality
•Good supplier relations
•Development of personnel
•Good information system
Objective of material management
Secondary
•Forecasting
•Inter-departmental harmony
•Product improvement
•Standardization
•Make or buy decision
•New materials & products
•Favorable reciprocal
relationships

38. Economy in material management
•Containing the costs
•Instilling efficiency in all activities

39. Four basic needs of Material
Management
1. To have adequate materials on hand when needed
2. To pay the lowest possible prices, consistent with quality and value
requirement for purchases materials
3. To minimize the inventory investment
4. To operate efficiently

40. Basic Principles of Material
Management
1. Effective management & supervision
It depends on managerial functions of
2. Sound purchasing methods
3.Skillful & hard poised negotiations
4.Effective purchase system
5.Should be simple
6.Must not increase other costs
7.Simple inventory control programme
• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Reporting
• Budgeting

41. Elements of
material
management
1. Demand estimation
2. Identify the needed items
3. Calculate from the trends
in Consumption during
last 2 years
4. Review with resource
constraints
Functional Areas
of Material
Management
1. Purchasing
2. Central service supply
3. Central stores
4. The print shops
5. The pharmacy
6. Dietary & Linen services

42.  Review selection
 Determine needed quantities
 Reconcile needs & funds
 Choose procurement method
 Select suppliers
 Specify contract terms
 Monitor order status
 Receipt & inspection
Procurement cycle

43. Objectives of procurement system
 Acquire needed supplies as inexpensively as possible
 Obtain high quality supplies
 Assure prompt & dependable delivery
 Distribute the procurement workload to avoid period of idleness &
overwork
 Optimize inventory management through scientific procurement
procedures

44. Open tender
•Public bidding, resulting in low prices
•Published in newspapers
•Term - 4 weeks
•Quotations must be sent in the specific forms that are sold,
before the time &date mentioned in the tender form

45. •In technical items, ‘two packets or two bins’ system is followed.
Offers are given in two separate packets.
•Technical bid
•Financial bid
•First technical bid is opened & short listed
•Then financial bid of selected companies are opened & lowest is
selected

46. •Delayed tenders & late tenders are not accepted. But if, in case of
delayed tenders, if the rate quoted is very less, then it can be
accepted.
•Quotations are opened in presence of indenting department,
accounts & authorized persons of party
•Validity of tenders – generally 90 days

47. Points to remember while purchasing
1. Proper specification
2. Invite quotations from reputed firms
3. Comparison of offers based on basic price, freight &
insurance, taxes and levies
4. Quantity & payment discounts
5. Payment terms
6. Delivery period, guarantee
7. Vendor reputation
8. (reliability, technical capabilities, Convenience, Availability,
after-sales service, sales assistance)
9. Short listing for better negotiation terms
10. Seek order acknowledgement

48. Storage
 Store must be of adequate space
 Materials must be stored in an appropriate place
 in a correct way
 Group wise & alphabetical arrangement helps in
 identification & retrieval
 First-in, first-out principle to be followed
 Monitor expiry date
 Follow two bin or double shelf system, to avoid
 Stock outs
 Reserve bin should contain stock that will cover
 lead time and a small safety stock
 Issue & use
 Can be centralized or decentralized

49. Inventory control
It means stocking adequate number and kind of stores, so
that the materials are available whenever required and
wherever required. Scientific inventory control results in
optimal balance
Functions of inventory control
•To provide maximum supply service, consistent with
maximum efficiency & optimum investment.
•To provide cushion between forecasted & actual demand
for a material

50. Economic order of quantity(EOQ)
EOQ = Average Monthly Consumption X Lead Time [in months] +
Buffer Stock – Stock on hand
CARRYING
COST
PURCHASING
COST
ECONOMIC ORDER OF
QUANTITY(EOQ)

51. ABC ANALYSIS
(ABC = Always Better Control)
This is based on cost criteria.
It helps to exercise selective control when confronted with large
number of items it rationalizes the number of orders, number of items
& reduce the inventory.
About 10 % of materials consume 70 % of resources
About 20 % of materials consume 20 % of resources
About 70 % of materials consume 10 % of resources

52. ‘A’ ITEMS
 Small in number, but consume large amount of resources
 Tight control
 Rigid estimate of requirements
 Strict & closer watch
 Low safety stocks
 Managed by top management
‘C’ ITEMS
Larger in number, but consume lesser amount of resources
 Ordinary control measures
 Purchase based on usage estimates
 High safety stocks
ABC analysis does not stress on items those are less costly but
may be vital
‘B’ ITEM
 Intermediate
Must have:
•Moderate control
•Purchase based on rigid requirements
•Reasonably strict watch & control
•Moderate safety stocks
•Managed by middle level management

53. 200000
500
20
199500
500
19
199000
500
18
198500
500
17
198000
500
16
197500
500
15
197000
500
14
196500
500
13
196000
1500
12
194500
1500
11
193000
1750
10
191250
2750
9
188500
4000
8
184500
4500
7
180000
5000
6
175000
7500
5
167500
7500
4
160000
20000
3
140000
50000
2
90000
90000
1
CUMMULATIVE
CUMMULATIVE
COST
COST [Rs.]
ANNUAL COST
ANNUAL COST
[Rs.]
ITEM
ITEM COST %
COST %
ITEM %
ITEM %
70 %
70 %
20 %
20 %
10 %
10 %
10 %
10 %
20 %
20 %
70 %
70 %
ABC
A
N
A
L
Y
S
I
S
WORK
SHEET

54. VED ANALYSIS
• Based on critical value & shortage cost of an item
–It is a subjective analysis.
•Items are classified into:
1.Vital:
•Shortage cannot be tolerated.
2. Essential:
•Shortage can be tolerated for a short period.
3. Desirable:
Shortage will not adversely affect, but may be using more
resources. These must be strictly Scrutinized
V E D ITEM COST
A AV AE AD CATEGORY 1 10 70%
B BV BE BD CATEGORY 2 20 20%
C CV CE CD CATEGORY 3 70 10%
CATEGORY 1 - NEEDS CLOSE MONITORING & CONTROL
CATEGORY 2 - MODERATE CONTROL.
CATEGORY 3 - NO NEED FOR CONTROL

55. SDE ANALYIS
Based on availability
Scarce
Managed by top level management
Maintain big safety stocks
Difficult
Maintain sufficient safety stocks
Easily available
Minimum safety stocks
FSN ANALYSIS
Based on utilization.
Fast moving.
Slow moving.
Non-moving.
Non-moving items must be periodically reviewed to prevent
expiry
& obsolescence
HML ANALYSIS
Based on cost per unit
Highest
Medium
Low
This is used to keep control over consumption
at departmental level for deciding the frequency of physical verification.

56. PROCURMENT OF EQUIPMENT
Points to be noted before purchase of an
equipment:
 Latest technology
 Availability of maintenance & repair facility, with
minimum down time
 Post warranty repair at reasonable cost
 Upgradeability
 Reputed manufacturer
 Availability of consumables
 Low operating costs
•Installation
•Proper installation as per guidelines

57. HISTORY SHEET OF EQUIPMENT:
History sheet
Name of equipment
Code number
Date of purchase
Name of supplier
Name of manufacturer
Date of installation
Place of installation
Date of commissioning
Environmental control
Spare parts inventory
Techn. Manual / circuit
diagrams / literatures
After sales arrangement
Guarantee period
Warranty period
Life of equipment
Down time / up time
Cost of maintenance
Unserviceable date
Date of condemnation
Date of replacement

58. Maintenance sheet:
Annual maintenance contract [AMC]
 Starting date
 Expiry date
 Service / repair description
 Materials / spares used
 Cost of repairs
In-house
Outside agency
EQUIPMENT MAINTENANCE &
CONDEMNATION
Maintenance & repairs:
 Preventive maintenance
 Master maintenance plan
 Repair of equipment

59. PREVENTIVE MAINTENANCE
 Purchase with warranty & spares.
 Safeguard the electronic equipments with: (as per
guidelines)
 Voltage stabilizer, UPS
 Automatic switch over generator
 Requirement of electricity, water, space, atmospheric
conditions, etc. Must be taken into consideration
 Well equipped maintenance cell must be available
 All equipment must be operated as per instructions with
trained staff
 Monitoring annual maintenance contracts. (AMC)
 Maintenance cell
 Communications between maintenance cell & suppliers
of the equipment.
 Follow-up of maintenance & repair services
 Repair of equipment
 Outside agencies
 In-house facility

60. CONDEMNATION & DISPOSAL
Criteria for condemnation:
The equipment has become:
1. Non-functional & beyond economical
repair
2. Non-functional & obsolete
3. Functional, but obsolete
4. Functional, but hazardous
5. Functional, but no longer required
PROCEDURE FOR CONDEMNATION
1. Verify records.
2. History sheet of equipment
3. Log book of maintenance & repairs
4. Performance record of equipment
5. Put up in proper form & to the proper authority
DISPOSAL
1. Circulate to other units, where it is needed
2. Return to the vendor, if willing to accept
3. Sell to agencies, scrap dealers, etc
4. Auction
5. Local destruction

61. CONCLUSION
 Material management is an important management tool which
will be very useful in getting the right quality & right quantity
of supplies at right time, having good inventory control &
adopting sound methods of condemnation & disposal will
improve the efficiency of the organization & also make the
working atmosphere healthy any type of organization, whether
it is Private, Government ,Small organization, Big organization
and Household.
 Even a common man must know the basics of material
management so that he can get the best of the available
resources and make it a habit to adopt the principles of
material management in all our daily activities