● Introduction

● Management and managers

● The evolution of management
theory.
● Ethics, social responsibility,
and the external environment

Course Outline of organizations.

● Planning and decision making.
 Organizing for stability and
change.
● Leading.
● Controlling,
● Information Systems
● International management.
Objectives of this
Class
What is Management?
Introduction - Management Defined
● Management has been defined by various authors/authorities in various ways. Following
are few often-quoted definitions:
● “Management is a multipurpose organ that manages a business and manages managers,
and manages workers and work” - Peter Drucker.
● “The art of getting things done through and with people in formally organized groups.”-
Harold Koontz.
● Management is the process of planning, organizing, leading, and controlling an
organization’s human, financial, physical, and information resources to achieve
organizational goals in an efficient and effective manner
Introduction - Principles of Management/FOM
● The principles of management are the means by which a manager actually manages, that is,
get things done through others—individually, in groups, or in organizations.

● Def: “The principles of management are the activities that “plan, organize, and control the
operations of the basic elements of [people], materials, machines, methods, money and
markets, providing direction and coordination, and giving leadership to human efforts, so as
to achieve the sought objectives of the enterprise.”

Is Management an Art or Science?

● Management, when practiced, is definitely an art but its underlying applications, methods
and principles are a science. It is also opined that management is an art struggling to
become a science.
Management as an Art
● The personal ingenious and imaginative power of the manager lends management the
approach of an art.
● This creative power of the manager enriches his performance skill.
● In fact, the art of managing involves the conception of a vision of an orderly whole, created
from chaotic parts and the communication and achievement of this vision.
● Managing can be called "art of arts" because it organizes and uses human talent, which is
the basis of every artistic activity.

Management as a Science
● Management is a body of systematized knowledge accumulated and established with
reference to the practice and understanding of general truth concerning management.
● It is true that the science underlying managing is not as accurate or comprehensive as
physical sciences (such as chemistry or biology) which deal with non-human entities.
● The involvement of the human angle makes management not only complex but also
controversial as pure science.
● Nevertheless, the study of the scientific elements in management methodologies can
certainly improve the practice of management.

Management as a Science and Art

● Science urges us to observe and experiment a phenomenon, while art teaches us the
application of human skill and imagination to the same.
● In order to be successful, every manager needs do things effectively and efficiently.
● This requires a unique combination of both science and art.
● We can say that the art of managing begins where the science of managing stops.
● As the science of managing is imperfect, the manager must turn to artistic managerial
ability to perform a job satisfactorily.

Management : The Role of Managers

● Every organization has ‘Managers’ who are entrusted with the responsibility of guiding and
directing the organization to achieve its goals.
 ● Managers administer and coordinate
resources effectively and efficiently to
channelize their energy towards successful
accomplishment of the goals of the
organization.
● Managers are required in all the activities
of organizations. Their expertise is vital across
departments throughout the organization.

The Role of Managers

● Managers are the primary force in an organization's growth and expansion.
● Larger organizations are particularly complex due to their size, process, people and nature
of business.
● However, organizations need to be a cohesive whole encompassing every employee and
their talent, directing them towards achieving the set business goals.
● This is an extremely challenging endeavor, and requires highly effective managers having
evolved people management and communication skills.

Top Management
● The top level executives direct the organization to achieve its objectives and are
instrumental in creating the vision and mission of the organization.
● They are the strategic think-tank of the organization.
Senior Management
● The General Manager is responsible for all aspects of a company.
● S/He is accountable for managing the P&L (Profit & Loss) statement of the company.
● General managers usually report to the company board or top executives and take
directions from them to direct the business.
● The Functional Manager is responsible for a single organizational unit or department within
a company or organization.
● S/He in turn is assisted by a Supervisor or groups of managers within his/her
unit/department.
● S/He is responsible for the department’s profitability and success.
Line and Staff Managers
● Line Managers are directly responsible for managing a single employee or a group of
employees.
● They are also directly accountable for the service or product line of the company. For
example, a line manager at Toyota is responsible for the manufacturing, stocking,
marketing, and profitability of the Corolla product line.
● Staff Managers often oversee other employees or subordinates in an organization and
generally head revenue consuming or support departments to provide the line managers
with information and advice

Project Managers
● Every organization has multiple projects running simultaneously through its life cycle.
● A project manager is primarily accountable for leading a project from its inception to
completion.
● S/He plans and organizes the resources required to complete the project.
● S/He will also define the project goals and objectives and decide how and at what intervals
the project deliverables will be completed

Changing Roles of Management and Managers

● Every organization has three primary interpersonal roles that are concerned with
interpersonal relationships:
● The manager in the figurehead role represents the organization in all matters of formality.
● The top-level manager represents the company legally and socially to the outside world
that the organization interacts with.
● In the supervisory role, the manager represents his team to the higher management. He
acts as a liaison between the higher management and his team. He also maintains contact
with his peers outside the organization.
Mintzberg’s Set of Ten Roles

● Professor Henry Mintzberg, a great management researcher, after studying managers

for several weeks concluded that, to meet the many demands of performing their
functions, managers assume multiple roles

● He propounded that the role is an organized set of behaviors. He identified the following
ten roles common to the work of all managers. These roles have been split into three
groups as illustrated in the following figure.
Mintzberg’s Set of Ten Roles
Mintzberg’s Set of Ten Roles

Interpersonal Role

❏ Figurehead – Has social, ceremonial and legal responsibilities.

❏ Leader – Provides leadership and direction.
❏ Liaison – Networks and communicates with internal and external contacts.

Informational Role

❏ Monitor – Seeks out information related to your organization and industry, and
monitors internal teams in terms of both their productivity and well-being.
Mintzberg’s Set of Ten Roles

❏ Disseminator – Communicates potentially useful information internally.

❏ Spokesperson – Represents and speaks for the organization and transmits

information about the organization and its goals to the people outside it.
Decisional Role

❏ Entrepreneur – Creates and controls change within the organization - solving

problems, generating new ideas, and implementing them.
❏ Disturbance Handler – Resolves and manages unexpected roadblocks.
Mintzberg’s Set of Ten Roles

❏ Resource Allocator – Allocates funds, assigning staff and other organizational

resources.
❏ Negotiator – Involved in direct important negotiations within the team, department,
or organization.
Managerial
Skills
● Henri Fayol, a famous management theorist also called as the Father of Modern
Management, identified three basic managerial skills - technical skill, human skill and
conceptual skill
1. Technical Skill
○ Knowledge and skills used to perform specific tasks. Accountants, engineers, surgeons
all have their specialized technical skills necessary for their respective professions.
○ Managers, especially at the lower and middle levels, need technical skills for effective
task performance.
○ Technical skills are important especially for first line managers, who spend much of
their time training subordinates and supervising their work-related problems.
Managerial
Skills
2. Human Skill

○ Ability to work with, understand, and motivate other people as individuals or in

groups. According to Management theorist Mintzberg, the top (and middle)
managers spend their time: 59 percent in meetings, 6 percent on the phone, and 3
percent on tours.
○ Ability to work with others and get co-operation from people in the work group. For
example, knowing what to do and being able to communicate ideas and beliefs to
others and understanding what thoughts others are trying to convey to the
manager.
Managerial
Skills
3. Conceptual Skill

○ Ability to visualize the enterprise as a whole, to envision all the functions involved in a
given situation or circumstance, to understand how its parts depend on one
another, and anticipate how a change in any of its parts will affect the whole.
○ Creativity, broad knowledge and ability to conceive abstract ideas. For example, the
managing director of a telecom company visualizes the importance of better service
for its clients which ultimately helps attract a vast number of clients and an
unexpected increase in its subscriber base and profits.
Other Managerial Skills
4. Diagnostic Skill

○ Diagnose a problem in the organization by studying its symptoms. For example, a

particular division may be suffering from high turnover. With the help of diagnostic
skill, the manager may find out that the division’s supervisor has poor human skill in
dealing with employees. This problem might then be solved by transferring or
training the supervisor.
○ Diagnostic skill enables managers to understand a situation, whereas analytical skill
helps determine what to do in a given situation.
Other Managerial Skills
5. Analytic Skill

○ Ability to identify the vital or basic elements in a given situation, evaluate their
interdependence, and decide which ones should receive the most attention. This
skill enables the manager to determine possible strategies and to select the most
appropriate one for the situation.
○ For example, when adding a new product to the existing product line, a manager may
analyze the advantages and risks in doing so and make a recommendation to the
board of directors, who make the final decision.
The P-O-L-C Framework
● The primary challenge faced by organizations and managers today is to creatively solve
business problems.
● The principles of management are guidelines using which managers can tackle business
challenges.
● The principles of management have been categorized into the four major functions of
planning, organizing, leading, and controlling popularly known as the P-O-L-C framework.
The P-O-L-C Framework
1. Planning
● Planning is the first and the most important function of management that involves setting
objectives and determining a course of action for achieving those objectives.
● Planners are essentially the managers who are best aware of environmental conditions
facing their organization and are able to effectively analyze and predict future conditions.
It also requires that managers should be good decision makers.
● Planning involves selecting missions and objectives and the actions to achieve them, it
requires decision making, i.e. choosing future courses of action from among alternatives.

Planning
● Planning means determining what the organization’s position and situation should be at
some time in the future and deciding how best to bring about that situation. It helps
maintain managerial effectiveness by guiding future activities.
 ● Planning as a process typically involves the following steps:
○ Selection of goals for the organization.
○ Establishment of goals for each of the organization’s sub-units.
○ Establishment of programs for achieving goals in a systematic manner.

Types of Planning
1. Strategic planning involves analyzing competitive opportunities and threats, as well as the
strengths and weaknesses of the organization. It also involves determining how to
position the organization to compete effectively in their environment.
2. Tactical planning is creating the blueprint for the lager strategic plan. These plans are
often short term and are carried out by middle-level managers.
3. Operational planning generally covers the entire organization’s goals and objectives and
put into practice the ways and action steps to achieve the strategic plans. They are very
short terms usually less than a year.
2.
Organizing
● Once a manager has created a work plan, the next phase in management cycle is to
organize the people and other resources necessary to carry out the plan. Organizing
should also consider the resources and physical facilities available, in order to maximize
returns with minimum expenditure.
● Organizing may be referred to as the process of arranging and distributing the planned
work, authority and resources among an organization’s members, so they can achieve
the organization’s goals.
● Organizing involves the following steps:
2.
Organizing
○ Creating the organizational structure - The framework of the organization is created
within which effort is coordinated allocating human resources to ensure the
accomplishment of objectives. This structure is usually represented by an
organizational chart, which is a graphic representation of the chain of command
within an organization.
○ Making organizational design decisions - Decisions are made about the structure of
an organization.
○ Making job design decisions – Roles and responsibilities of individual jobs, and the
process of carrying out the duties is defined.
2.
Organizing
● Organizing at the level of a particular job involves how best to design individual jobs so as
to most effectively utilize human resources.
● Traditionally, job design was based on principles of division of labor and specialization,
which assumed that the more narrow the job content, the more proficient the individual
performing the job could become.
3. Leading
● Organizations as they grow, develop complex structures with an increasing need for
coordination and control. To cope and manage such situations, leadership is necessary to
influence people to cooperate towards a common goal and create a situation for
collective response.
● Leading entails directing, influencing, and motivating employees to perform essential
tasks. It also involves the social and informal sources of influence to inspire others.
Effective managers lead subordinates through motivation to progressively attain
organizational objectives.
● Personality research and study of job attitudes in Behavioral Science provides important
insight on the need for coordination and control. Thus it becomes important for
 leadership to create harmony among individual efforts to collectively work towards
organizational goals.

4. Controlling
● Managers at all levels engage in the managerial function of controlling to some degree.
● Two traditional control techniques are budget and performance audits.
● An audit involves a physical examination and verification of the organization’s records
and supporting documents.
● A budget audit provides information about where the organization is with respect to
procedures followed for financial planning and control, whereas a performance audit
might try to determine whether the figures reported are a reflection of actual
performance.
4. Controlling
● Controlling involves measuring performance against goals and plans, and helping correct
deviations from standards. As a matter of fact, controlling facilitates the accomplishment
of plans by ensuring that performance does not deviate from standards.
● Controlling is not just limited to organization’s financial state, but also spans across areas
like operations, compliance with company policies and other regulatory policies,
including many other activities within the organization.
● The management functions thus most effectively cover the broad scope of a manager’s
duties and responsibilities. Though the nature and complexities faced by businesses have
undergone a vast change over the years, the functions of management remain the same.