Part - I

Introduction -1
 CHAPTER OUTLINE…
1. Introduction to Management
2. Concepts of Management
As an art of getting things done
As a process
As a discipline
As a science and an art
As an emerging profession
3. Meaning & Definitions
4. Nature of Management/ Salient features of Management
5. Management Vs. Administration
6. Objectives of Management
7. Importance of Management/ Significance of Management
CONTINUES…

8. Levels of Management
9. Functions of Management & Interrelationship between
them
10. Management skills and importance of it at different level
11. Roles of Managers
12. Contributions from Classical, Behavioral,
Quantitative, Contingency, Systems and Modern
theories
1. Introduction to Management
We are all managers of our own lives, and the practice of management is found in every
facet of human activity. And we always deal with setting, seeking and reaching
objectives.
Your mother’s role as a manager: -
 She forecasts the needs of the household
 She takes stocks of her resources
 She plans and organizes her resources so that to get maximum
benefit out of it.
 She monitors and controls the household budgets
 She divides the work among other members of the family and
coordinate their activities
 She is always in search for improvements of the objectives in household.
All these are management by your mother.
The term MANAGEMENT conveys different meanings depending upon the context in
which it is used.
The performance of organizations depends to
a large extent on how their resources are
allocated and their ability to adapt to changing
conditions.
Successful organizations know how to
manage people and resources efficiently to
accomplish organizational goals and to keep
those goals in tune with changes in the
external environment.
 2. Concepts of Management
 Some of the important concepts of management are as follows-
Management as an art of getting things done
Management as an art of getting things done through others, defined by
Mary Parker Follett-, which means that managers achieve organizational
objectives by getting work from others, but by their own they do nothing.

However, the above definition speaks that workers are termed as a factor of
production only. They have no social and psychological needs. They are
supposed to do what they are told and they have no say in the organization.
And this misleading the definition.

Thus management is certainly more than just getting work done through
others. Harold Koontz defined management that- the art of getting things
done through and with people, in formally orgaised groups; which is most
appropriate.
Management as a process
Management is called as a process, because it comprises a series of functions
(such as-planning, organizing, staffing, directing and controlling) that lead to
the achievement of certain objectives.
Again as a process, management has two broad features,
like- Management is a continuous process and
The functions of management are interrelated and interdependent.
Management as a discipline
As management implies a field of study or branch of knowledge, it is known
as a discipline. It comprises concepts, theories, principles, skills and problem
tackling techniques.
Management as a science and an art

Science is a systematic body of knowledge based on proper findings

and verification through different experiments. Here the principles are
universally accepted. As management consists of all these activities, it is
called up as a science.
Again art means to bring a desired result through the application of
skills. Which is nothing but the application of knowledge and skills. And the
process of management involves these activities, so called as an art.
Thus management is both as a science and an art.

Management as an emerging profession

A profession is
 an occupation backed by specialized body of knowledge,
 educational requirement and training,
 having an ethical code of conduct for self regulation,
 which is duly recognized by the national body & society.
As management covers all the above dimensions, it is widely accepted
as a profession.
 3. Meaning and Definitions
 Management is a distinct social process- consisting of activities like
planning, organizing, staffing, directing, coordinating and controlling; to
determine and accomplish the stated objectives with the proper utilization
of human beings and other resources.
FUNDAMENTAL FUNCTIONS
STATED
BASIC OBJEECTIVES
Planning Organising
RESOURCES
Staffing
MAN
MACHINE
MATERIALS
METHODS
MONEY
Controlling

Directing Coordinating

And from this it is clear that MANAGEMENT is an activity that converts

disorganized human and physical resources into useful and effective results.
Management in the New
Millennium
A firm can be efficient by making
the best use of people, money,
physical plant, and technology.

 Itis ineffective if its goals do not provide

a sustained competitive advantage.

A firm with excellent goals would fail

if it hired the wrong people, lost key
contributors, relied on outdated
technology, and made poor investment
decisions.
 Basic Purpose of Management

EFFICIENTLY
Using resources wisely and in a cost-effective way

And

EFFECTIVELY
aking the right decisions and successfully implementing the
 4. Nature of Management/
Salient features of Management
 Management is a social process: - Because it is concerned with
interpersonal relations. It is done by people, through people, with people and
for people. It is the development of people not the direction of things.

 Management is a distinct process: - As all the function sin Management are

interwoven that one can’t lay down the exact sequence and their relative
significance.

 Management is a continuous process: - When one starts from the first

function in management i.e. planning, he has to go for planning again on the
basis of his first observation after controlling of the first activity. It’s a
never- ending process.

 Management is an intangible force: - But its presence can be felt

everywhere in the form of results. During operation of the functions
management is intangible but after the results everybody is feeling it.
 Management is goal oriented/ purposeful: - Management means/exists
toward the accomplishment/achievement of specific goals. The success of
management is measured by the extent to which the desired objectives are
achieved.

 Management is an integrative force: - The essence of management lies in

the coordination of individual efforts into a team. Management reconciles the
individual goals with organizational goals.

 Management is an economic resource: - As management is a factor of

production together with land, labour and capital.

 Management is situational: - Because there is no one best way of doing

things. A successful manager must take into account situational differences.

 Management is a system of authority: - Management is a team of managers;

represent a system of authority, a hierarchy of command and control.
Authority enables the managers to perform their functions effectively.
  Management is a multidisciplinary subject: - Management is grown as a
field of study taking the help of so many other disciplines such as
engineering, sociology and psychology, etc. Much of the management
literature is the association of the se disciplines.

 Management is essentially an executive function: - As it deals with active

direction and control of the activities of people to attain predetermine
activities.

 Management is both science and art: - already defined

 Management is universal in nature: - Management is required in every

form of group activity. The approach/ style of management may differ from
one organization to other, but in each case it involves the marshalling of
human and physical resources for the attainment of common objectives. The
fundamental principles of management are applicable in all areas of
organized efforts. Managers at all levels perform the same basic functions.
 5. Management Vs. Administration

Points of Distinction Administration Management

Administration is
Management is a distinct
concerned with the
social process- consisting of
formulation of objectives, activities like planning,
plan and policies of the organising, staffing,
1. MEANING organization. directing, coordinating and
controlling; to determine
and accomplish the stated
objectives with the proper
utilization of human beings
and other resources.

2. NATURE It is a determinative or It is an executive or doing

thinking function. function.
 It is concerned with the It is concerned with the
3. SCOPE determination of major implementation of
objectives and policies. policies.

It is mainly a top-level It is largely a middle level

4. LEVEL function. or lower level function.

Administrative functions Management decisions

5. INFLUENCE are influenced mainly by are influenced by the
public opinion and other objectives and policies of
outside forces. the organisation.
Administration determines Management decides who
6. DECISION- what is to be done and shall implement the
MAKING when is it to be done. decisions made.

It is concerned with It is concerned with leading

7. DIRECTION OF leading and motivation of and motivation of operative
HUMAN middle level executives. workforce for execution of
RESOURCE It is not directly concerned plans.
It is actively concerned with the
with direction of human direction of human efforts in the
efforts. execution of plans.
8. MAIN Planning and control Directing and
FUNCTIONS are the main functions organising are the
of it. main functions of it.

Administration has direct Management is

interaction with external
9. ENVIRONMENT manly concerned with
environment of business,
which enables it to make internal forces, i.e.,
strategic plans to deal objectives, plans and
effectively with the policies of the
environmental forces.
organisation.

Conceptual and human Technical and

10. SKILLS skills are required in human skills are
REQUIRED administration. required in
management.
Used largely in
11. USAGE government, public Used mainly in private
sector firms and non- organizations/
business organizations. business
organizati
ons.
 6. Objectives of Management

 The main objective of any business is to go for profit

maximization, in the competitive environment. And in order to
achieve all this, management has to pursue the following
objectives-
Efficient use of resources.
Satisfaction of customers.
Adequate return on Capital.
Satisfied workforce.
Good working condition.
 7. Importance of Management/
Significance of Management
1. The management determines the objectives of any organization. No
organization succeeds, unless its objectives are clearly identified and defined.

2. Again management is an essential activity to accomplish the objectives of an

organization, by perfect coordination of human and non-human resources.

3. Management is no more restricted to the mere exercise of authority; it also

involves scientific thinking, deciding & thoughtful organization, direction &
control to ensure better results.

4. Management keeps itself in touch with the current changing environment and
supplies foresight to the organization. It helps in predicting what is going to
happen in future, which will influence the working of the organization.

5. Management reconciles the personal interest of people (attached with the

organization) with the organizational objectives.
8. Levels of Management

TOP LEVEL
Strategic Managers

Tactical Managers MIDDLE

LEVEL

Operational Managers LOWER

LEVEL
 Strategic Managers

 Thefirm’s senior executives with

overall responsibility for the
firm.
 Developing the company’s goals
 Focus on long-term issues
 Emphasize the growth and
overall effectiveness of the
organization

 Concerned primarily with the

interaction between the
organization and its external
environment.
 Tactical Managers

 Responsible for translating the

general goals and plans developed
by strategic managers into specific
objectives and activities.
 Shorter time horizon
 Coordination of resources
 put the top management plans into
practice
 coordinate the functioning of their
respective departments
These are middle managers
 Operational Managers

 Lower-level managers who supervise the

operations of the organization.

 Directly involved with non-management

employees
 Implementing the specific plans
developed with tactical managers.
 This is a critical role to the organization.
 Operational managers are the link
between management and non-
management staff
 Plan day-to-day activity within the goals lay
down by the higher levels managements
 9. Functions of Management &
Interrelationship between them
Planning

Organizing Staffin
g

Leading
Controlling
 Planning
 The management function that assesses the
management environment to set future
objectives and map out activities necessary to
achieve those objectives.

 To be effective, the objectives of individuals,

teams, and management should be coordinated
to support the firm’s mission.
 It involves deciding in advance –
What to do?
When to do?
Where to do?
How to do?
Who is to do?
And how the results are evaluated?
 Organizing
 The management function that determines
how the firm’s human, financial,
physical, informational, and technical
resources are arranged and coordinated
to perform tasks to achieve desired
goals.
 The deployment of resources to achieve
strategic goals.
 Determining and define the activities
required for the achievement of planned
goals.
 Grouping the activities into logical and
convenient units.
 Staffing
 Itmeans the process of filling all positions in the organization
with adequate and qualified personnel.

 In management, staffing means, -

 Manpower planning- involving determination of the number and the

kinds of personnel required.
 Recruitment for attracting suitable personnel to seek jobs in the
enterprise.
 Selection of the most suitable persons for the jobs under
consideration.
 Placement and orientation of employees.
 Transfer and promotion of employees.
 Training and development of employees.
 Leading
 The management function that energizes
people to contribute their best individually
and in cooperation with other people.
 It means to guide, supervise, motivate and
lead people in organization towards the
attainment of stated objectives.
This involves:
 Clearly communicating organizational goals
 Inspiring and motivating employees
 Providing an example for others to follow
 Guiding others
 Creating conditions that encourage
management of diversity
 Controlling
 The management function that measures
performance, compares it to objectives, implements
necessary changes, and monitors progress.
 It means checking actual performance with the
agreed standard that has planned to satisfy the
satisfactory performance.

 In management, controlling means-

 Establishing standards for measuring works
performance.
 Measurement of actual performance and
comparing it with the standards
 Finding the variances between the two and the
reason therefore, and
 Taking corrective action for correcting
deviations so as to ensure attainment of
objectives.
Functions and Levels of
Management
 10. Management skills and
importance of it at different level
Technical Skills

Interpersonal

Skills Conceptual
Fundamental
Skills
Management
Skills
Diagnostic Skills

Communication

Skills

Decision-Making Skills
Time-Management Skills
 Fundamental Management Skills
 Technical
 Skills
necessary to accomplish or understand the specific kind of
work being done in an organization.

 Interpersonal
 The ability to communicate with, understand, and motivate both
individuals and groups.

 Conceptual
 The manager’s ability to think in the abstract.

 Diagnostic
 The manager’s ability to visualize the most appropriate response to
a situation.
Fundamental Management Skills
(cont’d)
 Communication
 The manager’s abilities both to convey ideas and information
effectively to others and to receive ideas and information
effectively from others.

 Decision-Making
 The manager’s ability to recognize and define problems and
opportunities correctly and then to select an appropriate course of
action to solve the problems and capitalize on opportunities.

 Time-Management
 Themanager’s ability to prioritize work, to work efficiently, and to
delegate appropriately.
Skills & Levels of Management
 11. Role of Managers

Informational Roles

Interpersonal Roles Decisional Roles

These include:

Interpersonal roles - communication with superiors, peers,

subordinates, and people from outside the organization.
Information Roles - obtaining, interpreting, and giving out
information.
Decisional Roles - choosing among competing alternatives.
Sl. TYPICAL
No ROLES SUB ROLES DESCRIPTION ACTIVITIES
.
Symbolic head; performs Ceremony
routine duties of a legal and status
Figurehead
or social nature. requests.

Responsible for Almost all

motivation of manageri al
subordinates and for activities
Leader
staffing and training. involving
INTERPERSONAL
1. ROLES
subordina tes
.
Maintains network of Handling
outside contacts to mail,
obtain favours and external
Liaison information. Board work,
and
telephone
calls.
 Seeks and receives Reading
information to obtain periodicals
Monitor through understanding and
of organization and observational
environment. tours.

Transmits information Forwarding

INFORMATIONAL received from outsiders mail, review
2.
Disseminator or insiders to other sessions with
ROLES

organization and subordinates.

environment.

Transmits information Board

to outsiders on meetings,
Spokesman
organization plans, handling
policies and actions. mail.
 Initiates and supervises Strategy and
design of organizational review
Entrepreneur improvement projects sessions
as opportunities arise. regarding
change
efforts.
Responsible for Strategy and
corrective actions when review
Disturbance
organization faces sessions
DECISIONAL Handler
3. ROLES unexpected crises. regarding
disturbances.
Responsible for Scheduling,
Resource allocation of human, requests for
allocator monetary and material authorization,
resources budgeting.
Negotiator Responsible for Collective
representing the bargaining,
organisationin purchasing.
bargaining and
negotiations.