MANAGEMENT AND ECONOMICS(18ME51)

MANAGEMENT AND ECONOMICS

Course Code:18ME51
CIE Marks:40
SEE Marks:60
Teaching Hours/Week (L:T:P):2:2:0
Credits:03
Exam Hours:03

Course Learning Objectives:

 To help the students to understand the fundamental concepts and principles of management; the basic roles, skills, functions of management, various organizational structures and basic knowledge of marketing.
 To impart knowledge, with respect to concepts, principles and practical applications of Economics, which govern the functioning of a firm/organization under different market conditions.

Module-1

Management: Introduction - Meaning - nature and characteristics of Management, Scope and Functional areas of management - Management as a science, art of profession - Management & Administration - Roles of Management, Levels of Management, Development of Management Thought- early management approaches – Modern management approaches. Planning: Nature, importance and purpose of planning process Objectives -Types of plans (Meaning Only) - Decision making Importance of planning - steps in planning & planning premises - Hierarchy of plans.

Module-2

Organizing and Staffing: Nature and purpose of organization Principles of organization - Types of organization - Departmentation Committees Centralization Vs Decentralization of authority and responsibility - Span of control - MBO and MBE (Meaning Only) Nature and importance of staffing--Process of Selection & Recruitment (in brief). Directing & Controlling: Meaning and nature of directing Leadership styles, Motivation Theories, Communication - Meaning and importance - coordination, meaning and importance and Techniques of Co Ordination. Meaning and steps in controlling - Essentials of a sound control system - Methods of establishing control (in brief).

Module-3

Introduction: Engineering and economics, Problem solving and decision making, Laws of demand and supply, Difference between Microeconomics & Macroeconomics, equilibrium between demand & supply, elasticity of demand, price elasticity, income elasticity. Law of Returns, Interest and interest factors, simple and compound interest, Cash flow diagrams, personal loans and EMI payment calculation with flexible interest rates, Discussion and problems.

Module-4

Present, future and annual worth and rate of returns: Basic present worth comparisons, Present worth-equivalence, Assets with unequal lives and infinites lives, future worth comparisons, payback comparisons, Equivalent annual worth comparisons, situations for annual worth comparisons. Asset life, Rate of return, minimum acceptable rate of return, IRR anomalies and misconceptions, Cost of capital, comparisons of all present future and annual worth with IRR, product costing, Discussions and problems.

Module-5

Costing and depreciation: Components of costs, estimation of selling price, marginal cost, first cost, all kinds of overheads, indirect cost estimation with depreciation, mensuration and estimation of material cost, cost estimation of mechanical process, idling time. Product costing (approaches to product costing), causes of depreciation, methods of computing depreciation charges, straight line method, declining balance method, sum of years method, sinking fund method, service output methods, taxation concepts, personal income taxes and corporate taxes, Discussions and problems.

Course outcomes: At the end of the course, the student will be able to:

 CO1: Understand needs, functions, roles, scope and evolution of Management 
CO2: Understand importance, purpose of Planning and hierarchy of planning and also56nalyse its types. 
CO3: Discuss Decision making, Organizing, Staffing, Directing and Controlling. 
CO4: Select the best economic model from various available alternatives.
CO5: Understand various interest rate methods and implement the suitable one. 
CO6: Estimate various depreciation values of commodities.
CO7: Prepare the project reports effectively.

Question paper pattern:

 The question paper will have ten full questions carrying equal marks.
 Each full question will be for 20 marks.
 There will be two full questions (with a maximum of four sub- questions) from each module.
 Each full question will have sub- question covering all the topics under a module.
 The students will have to answer five full questions, selecting one full question from each module.