Module 1- Introduction to Management

What is management?
- Management refers to overseeing and co-ordinating the work of others so that their
work is completely effectively and efficiently.
- Efficiency- most output from least inputs,
- Since the managers deal with scarce inputs like labout, raw materials etc it is their
duty to use them in a way that they produce the best possible results with the given
inputs.
- “Doing things right”
- Not wasting resources
- Eg- the hero honda showroom at Guragoaon, using CAD/CAM managerial systems,
automatic material handling, robotics, giving importance to environmental issues and
integrating IT in the workings. The use of these techniques has led to labour
productivity and efficient capital utilisation.
- It is not enough to just be efficient the manager also needs to be effective
- Effective-
- “Doing the right thing”
- Doing those activities that will help the organsation reach its goals
- Eg: Hero honda showroom at Guragaon, there is achievement of goals
Efficiency is concerned with the means of getting things done, effectiveness is concerned
with the end goal.
In successful organisation efficiency and effectiveness go hand in hand.
Efficiency resource usage
Effectiveness  goal attainement
The organisation strives on low resource waste (high efficiency) and high goal attainment
(high effectiveness)
Efficiency Effectiveness

Resource use Goal attainment

Means of getting things done Concerned with the end goal

Doing things right Doing the right thing

Less inputs high output Activities that help in goal achievment

This is the case study given in class
The points to consider in this case study
- Effectiveness and efficiency
- What were the managerial problems- the main problem was the shift cashless
economy and lack of adaption of the management
- Management skills
- Organisation
- What are the goals of the organisation
Who are managers?
- A manager is someone who coordinates and oversees the work of other people so that
organisational goals can be fulfilled.
- The job of manager is not for personal achievement but for helping others do their
work.
- Examples of co-ordinating duties of the manager: coordinating different department,
supervising a department or individual employee etc
- Examples of non-co-ordinating and supervising duties of manager- an insurance
claims supervisor may also be vigilant regarding insurance claims and other related
matter rather than just supervising the people of his department.
- There are no set criteria for managers they can be people of the age 18 or 80, men or
women, they can be found in start-ups as well as MNCs, some are first line managers
some are top level managers, managers are found in every country and place
Classification of Managers
Initially it was easy to separate the managers and the non managerial workers, but it is not so
simple anymore since the changing nature of work has blurred the difference between the two
- Indian coffee house – there is not much difference between the employees and the
managers since it is run by a 400 employee co-operative.
- This ambiguous managerial organisational structure is not consistent and may
sometimes give results and some time not provide success.

Traditionally structured organisations are said to shaped like a pyramid because more
employees are at the lower level of the organisation.
- This pyramid can also be divided into 4 parts
- Top managers Middle managers First line managers  non managerial employee
The first line managers
- manage the work of the non-managerial employees (according to the class taught ppt
the lower level managers manage the work of the workers)
- the first line managers are thus called supervisors but may also be called shift
managers, district managers, dept. managers etc
Middle managers
- those between the top and lower-level managers, they manage the work of the lower
level or front-line managers, and may have titles like regional managers, project
leader, store manager or division manager.
Upper level
- the managers are called top managers, they are responsible for the entire organisation
and their work affects the entire organisation.
 - They are responsible for make organisational decisions, establishing plans and goals
- They individually hold the title of president, executive VP, managing director, CEO,
COO
Not all organisations work in a pyramid structure and there are certain organisation with a
loose structure done by ever changing employee teams and not designated or specific work
outlines.
Given cases study in Robbins and Coulter L&T chairman
-
HIERARCHY OF MANAGEMENT AND SKILLS NEEDED

Technical skills- job specific knowledge, techniques needed to proficiently perform the work
tasks
Human skills- the ability to work well with others individually as well as in a group
Conceptual skills – the ability to think and conceptualise about the abstract and complex
situations.
The human skills are equally required by all the 3 level of managers since they are all dealing
with humans
The technical skills are required the most by the frontline managers and the least by the top
management since they will mostly be working on the planning and organisational aspects of
it, moreover the top manager is not working in the factory but he should have certain
technical knowledge
The conceptual skills are required the most by the top line since he is to plan and organise the
entire organisation, and needs to be able to steer the organisation through various complex
situations.

MANAGEMENT FUNCTIONS

1. Planning – If you have no goal in mind, then any road will suffice but if you have a goal in
mind you need to plan on how to get there
2. Organising- arranging and structuring the organisation to achieve goals of the organisation
3. Leading- every organisation has people and a manager’s job is to work with the people and
help them achieve the goals, help resolve conflicts is also a part of this function.
4. Controlling- evaluate whether things are going as planned or not, ensure work is being
done and goals are being met.

MANAGERIAL COMPETENCIES
1. Communication Competency
2. planning and administration competency
3. strategic action competency
4. teamwork competency
5. global awareness competency
6. self management competency

BAJAJ AUTO CASE STUDY (add to this from Class notes)

1. declining market share

The 59- year old institution, which is one of the country’s largest two- wheeler and
three wheeler manufactures for a long time was accused of using obsolete
technology that was polluting the air. They had lost their dominance in the scooter
market. Although they were still the largest selling brand in the country, they did not
have that overwhelming brand presence anymore. They lost their position because
they failed to convince the consumers that they had environment friendly, stylish,
sleek products.

A viewer at the Auto Expo2000 exhibition asked Mr. Rajeev Bajaj- ”Mr. Bajaj, why are
you still making these old, ugly scooters and polluting three-wheelers?” There was a
shift in the market preference from scooters to motorbikes. Now, they had an
overwhelming share of the scooter market, but were very nascent in the motorcycle
market. They yet had to make a major dent in the motorcycle market. Hence, their
total market-share in the two-wheeler segment fell. The company failed to anticipate
the consumer behavior. They thought they were going in the right direction, but they
were not. “We are to be blamed for our market dominance slipping because we did
not see it coming”- Mr. Rajeev Bajaj

In the late 1990s, Bajaj Auto faced an identity crisis. With stagnating scooter market
and increased competition from the local and MNC players, Baja Auto had to quickly
adapt to the evolving market or be rendered obsolete. Urban as well as Rural market
was patronizing motorbikes and ignoring scooters. It also failed miserably in the
overseas market. To make a dent in the overseas market it needed, the brand needed
to command a certain image

2. Cost cutting

Considerations while changing the businesss model

- What do the customers want

- Who is the change directed at

The first objective for bajaj was to change the customer perception of the company

- The VRS scheme adopted to restructure the employee composition

- The cost cutting was done by involving people of all levels of the organisation
- Management has the role of adaptability, foreseeing and restructuring

Vrs schemes

(look into bajaj and reliance case studies)

- When you attain a certain age after 50 the bank offers you retirement and pays you a
certain amount till retirement and then the pensions are paid

UNIVERSAL NEED FOR MANAGERS

- Management is needed in all types and sizes of organisation, at all organisational
levels and in all organisational work areas
 - This phenomena is known as universality of management
- All the managers irrespective of the level they function at will plan organise, lead and
control only the degree of this will vary.
- Management is needed in all types of organisations ( NFPO or profit making)
- All sizes of organisation need mngt.
- All areas of organisation need management
- It is required at all level ( lower  top)
- If management is poor it will lead to loss of business and customer base
- If management is not done well there will be issues ( Delhi bureaucratic style of
management)
REWARDS AND CHALLENGES OF MANAGEMENT
Management can be a tough and often selfless job,
- Sometimes job of manager may become more clerical than managerial
- Challenging to motivate workers
Rewards challenges
Create and environment where Do hard work
orgnisational members can work to the
best of their capabilities
Think creatively and use imagination More clerical duties
Help other find meaning and fulfilment
Support and nurture others Deal with variety of personalities
Work with variety of people Motivate workers in chaotic times
Receive recognition and status Blend the knowledge of diverse group
of people
Influence organisational outcomes Success depends on other people
Have appropriate bonus, compensation, Often a thankless job
stock options
They are needed by org. for success

-
CHANGING ORGANISATION

HOW THE ROLE OF MANAGERS IS CHANGING

1. digitalisation- virtual work, shift in orgnanisational boundaries, more mobile workforce,
work life balance, flexible work
2. security threats- risk mngt., uncertainity of future, restructure in work place,
discrimination concern, globalisation and employee assistance
3. increase in emphasis on ethics – redefine values, rebuild trust, increase accountability
4. increase in competiveness- customer service, innovation , globalisation and efficiency

IRL examples
- Tanishq rolled out the pay linked to performance even at the worker level for justified
pay to the employees
- The railway and postal departments result oriented pay rather than time oriented
- The loss of jobs of surat and groundnut workers due to global conditions and
globalisation
- The managers work of the Oberoi and Taj to bring back workers to work after the
2008 bomb blast.
*the importance of customers and innovation to the manager
CASE STUDY 1- NATIONAL BANK CHANGE AND CRISIS MANAGEMENT
CASE STUDY 2- MIND YOUR ATTITUDE
(NEED TO FIND THESE CASE STUDIES)