Chapter (1)

Management Introduction
 Chapter (1)
Management Introduction
Contents
Definitions of management
Evolution of Management
Thought
Nature of management

Objective of management

Importance of management

Levels of Management

Management and Administration

 Definitions of management
⚫ Management is a process of planning, organizing,
motivating, coordinating and controlling the activities of
the enterprise.
⚫ Management is an art of knowing what you want to do
and then seeing that it is done in the best way.(F. W.
Tayler)
⚫ to manage is to forecast, to plan, to organize. To
command to coordinate and control. (Henry Fayol)
⚫ Management is a coordination of resources through the
process of planning, organizing, directing, and
controlling in order to achieve the organizational
goals.(Sisk)
Evolution of Management Thought
❑ What Does Management Thought Means?
Management thought refers to the theory that guides
management of people in the organization.

❑Management theories were developed out of the

practical experience of the managers in the industrial
organization.
❑Later on, managers borrowed ideas from several other
fields of study like science, sociology, anthropology, etc.
The Concept of Evolution of Management Thought
The evaluation of management thought can be studied in
three parts as under.
⚫ 1. Classical approaches:
This represented by scientific management thought,
administrative management and bureaucracy.

⚫ 2 Behavioral Approach: This represented human relation

movement and behavioral approach.

⚫ 3. Modern approaches: This represented quantitative

approach, system approach and contingency approach.
 Scientific Management
(Frederick Taylor)
⚫Develop a science for every job, including
rules of motion, standardized work
implements, and proper working conditions.
⚫Carefully select workers with the right
abilities for the job.
⚫Carefully train these workers and provide
proper incentives.
⚫Provide these workers with the necessary
support.
6
 Administrative Principles
(Henry Fayol)

⚫ Henri Fayal was known as the father of modern

management.
⚫ He gave us the famous 14 principles of management.
⚫ According to him, the 5 main functions of
management are :Planning, Organizing, Commanding,
Coordinating and Controlling.

7
 Fayol's Principles Of Management

2.Authority and 4.Unity of

1. Division of Work 3.Discipline
Responsibility Command

6. Subordination of
5. Unity of Individual 7. Remuneration of
Direction. Interests to personnel . 8.decentralization
General Interest.

12. Stabilityof
9.Scalarchain 10. Order 11. Equity Tenure

13. Incentives 14. Esprit de Corps

 Bureaucratic Organization
(Max Weber)
Principles of bureaucracy:
⚫ Well Defined Hierarchy of Authority
⚫ Clear Division of Labor
⚫ Formal Rules and Procedures
⚫ Impersonality
⚫ Careers Based on Merit

9
Human Resource Approaches
⚫ The Human Relations Movement
⚫ Assertion is that managers who use good
human relations in the workplace will achieve
productivity.
⚫ This movement has evolved as the field of
Organizational Behavior - the study of
individuals and groups in organizations.

10
Modern Approaches
⚫ Modern Approaches to management respect
the Classical, Human Resources, and
Quantitative schools.

⚫ But they recognize that no one approach

applies universally in all situations.

11
Modern Approaches
⚫ 1. Quantitative Management :

❑ Also known as Management Science or Operations

Research.

❑ Focuses on application of scientific tools.

❑ providing a quantitative base for decision making to

managers.

12
 Modern Approaches
2-systems Management :

▪ It says that most units within an organisation interact with each

other and therefore dependent on each other.

▪ The organization is seen as a collection of interrelated parts

that function together to achieve a common purpose.

▪ An Open System interacts with its environment and a Closed

one does not.
3-Contingency Management :

▪ Believes that Management is dependent on environment.

▪ Managers under this approach won’t prescribe a standard

solution rather will ask questions- Which method will be most
appropriate under given situation? 13
Nature of management:
The following are the characteristics of management:
⚫ 1) Management is a universal.
⚫ 2) Management is a social process
⚫ 3) Management is a goal oriented
⚫ 4) Management is an activity based
⚫ 5) Management is an integrative process
⚫ 6) Management is a group activities
⚫ 7) Management is an intangible
⚫ 8) Management is a dynamic
⚫ 9) Management is a science and art.
Objective of management:
⚫ Higher efficiency
⚫ Satisfaction of customers
⚫ Adequate return on capital
⚫ Satisfied work force
⚫ Better working condition
⚫ Relation with suppliers
⚫ Contribution to national goals
Importance of management:
⚫ Determination of objectives
⚫ Accomplishment of objectives
⚫ Efficient use of resources
⚫ Meeting challenges
⚫ Role in national economic
Definition of management levels?
⚫ Levels of management refer to a line of separation
between different positions held by different persons in
an organization .
⚫ The level of management may be divided to three
parts namely:
1) Top level management
2)Middle level management
3) Lower level(supervisory) management
 Top level management
It has an ultimate source of authority .

Hierarchy of top management:

⚫Board of directors, chief executive,
chairman, general managers.
 The role of top Management :
A. It lays down the objectives of the enterprise.
B. Prepares strategic plans.
C. It issues the instructions of the department
budget.
D. Controls the activities of all.
E. Builds and maintains relation with the outside
public.
 Middle level management
It is responsible to the top level management.

Hierarchy of Middle level management

➢ Head of functional departments.

➢ Other executive officers.
 The role of Middle level Management :
1. It executes the plans of the organization.
2. Make plans for the subunits
3. It participates in the employment and training of
the lower level management.
4. It makes coordination between different
departments.
5. It evaluates the performance of different
departments.
6. It sends the progress reports and other important
data to the top level management.
lower level management(supervisory level)
⚫ It is known as supervisory management, because it is
directly concerned control of the performance of the
operative employees.
Hierarchy of the lower level management :
1) Supervisors
2) Foremen
 The role of lower level Management :

1) To plan and organize the activities.

2) To provide training to workers
3) To solve problems of workers
4) To maintain good human relations in the
organization
5) To supervise and guide the subordinates
6) To send periodical reports about
performance.
Management and Administration
⚫ Management can be understood as the skill of
getting the work done from others. It is not exactly
same as administration, which alludes to a process of
effectively administering the entire organization.
⚫ The most important point that differs management
from the administration is that the former is
concerned with directing or guiding the operations of
the organization, whereas the latter stresses on laying
down the policies and establishing the objectives of
the organization.
Distinction between management
and administration:
1 Meaning Management is an art of Administration
getting things done means the
through and with other determination of
persons in a formally objectives targets,
organized group. plans and policies of
an enterprise.

2 Concerned Policy Implementation Policy Formulation

with
3 Nature Management is an Administration is
executive function. a decision making
function.
4 Type of Management decides Administration
decisions who will do the decides what is to
functions and how will be done.
he do.
5 Level The term management The term
is more important at the administration is
middle level and more important at
supervisory level of the top level
management. management.
6 Usage The term management is The term administration
generally used with the is generally used with
reference to business reference to non-
enterprise. business organization
such as military
organizations,
government office, social
and religious
organizations …etc

7 Influence Management decisions are mainly Administration decisions

influenced by the targets of are mainly influenced by
enterprise, opinion of managers government policies and
and profit-motives. rules, social and political
circumstances, and
economic environment.
8 Relation Management is related only with Administration is related
workers and employees of an with the owners and top
enterprise. level managers of an
enterprise.
 Chapter (2)
Functions of Management
 Functions of Management
Classification of managerial functions:

Controlling Planning

Directing Organizing

Elements of Management Process

CLASSIFICATIONOFMANAGERIALFUNCTIONS

Planning is to
determine.
What to do?
When to do?
1-Planning Where to do?
How to do? by
whom it should
be done?
CLASSIFICATIONOFMANAGERIALFUNCTIONS

Is a managerial
functions which
coordinates human
efforts, arranges
2-Organizing resources and
incorporates the
two in such a way
which helps in the
achievement of
objectives.
 Organizingincludesthefollowingactivities:

a) To determine the
activities necessary
for the b) To divide the c) To assign these
accomplishment of activities into sub- activities to the
the Objectives of the activities. workers.
organization.

d) To define the e) To establish

duties and rights of coordination among
every employee. activities..
CLASSIFICATIONOFMANAGERIALFUNCTIONS

to direct,
regulate and
supervise the
activities of all
the employees so
4-Directing
that pre-
determined
Objectives of an
enterprise may
be accomplished
Sub-functionsofthedirectingfunction
Communication

Sub-
Supervision functionsof Leadership
thedirecting

Motivation