Chap1 Introduction to Management

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1

Management: Science or Art?

Science is a collection of systematic knowledge, collection of truths and

inferences after continuous study and experiments. It has fundamentalprinciples discovered.

Art uses the known rules and principles and uses the skill, expertise, wisdom,

experience to achieve the desired result.

Management is both art and science.

Management has got two faces like a coin; on one side it is art

and on the other it is science. Management has got scientific

principles which constitute the elements of Science and Skills

and talent which are attributes of Art.


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2

Principles of Management


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3

Fayols rinciples of Management

!enri Fayol "#$%#'()*

e has proposed that there are six primary functions

of management and 1! principles of management,

"orecasting, Planning, #rgani$ing, %ommanding,

%oordinating, controlling&here are 1! Principles of Management descri'ed 'y

enri "ayol.


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#. +i,ision of -aborork of all kinds must be di,ided / subdi,ided and allotted to ,arious persons accordingto their e0pertise in a particular area.

(. Authority / 1esponsibilityAuthority refers to the right of superiors to get e0actness from their sub&ordinates.

1esponsibility means obligation for the performance of the 2ob assigned.

3ote that responsibility arises where,er authority is e0ercised

#% rinciples of !enri Fayol


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#% rinciples of !enri Fayol 4ontd

5. 6nity of 4ommandA sub&ordinate should recei,e orders and be accountable to one and only one boss at a time.

!e should not recei,e instructions from more than one person

%. 6nity of +irection

eople engaged in the same kind of business or same kind of acti,ities must ha,e the same

ob2ecti,es in a single plan.

ithout unity of direction7 unity of action cannot be achie,ed.


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)

). 89uity89uity means combination of fairness7 kindness / 2ustice.

he employees should be treated with kindness / e9uity if de,otion is e0pected of them.

.


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=. +iscipline+iscipline means sincerity7 obedience7 respect of authority / obser,ance of rules and

regulations of the enterprise.

Subordinate should respect their superiors and obey their order.

$. >nitiati,e>nitiati,e means eagerness to initiate actions without being asked to do so.

Management should pro,ide opportunity to its employees to suggest ideas7

e0periences/ new method of work.



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'. 1emuneration

1emuneration to be paid to the workers should be fair7 reasonable7 satisfactory /rewarding of the efforts.

>t should accord satisfaction to both employer and the employees.

#. Stability of enure 8mployees should not be mo,ed fre9uently from one 2ob position to another i.e. the

period of ser,ice in a 2ob should be fi0ed.



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##. Scalar 4hainScalar chain is the chain of superiors ranging from the ultimate authority to the

lowest.

4ommunications should follow this chain. !owe,er7 if following the chain

creates delays7 cross&communications can be allowed if agreed to by all

parties and superiors are kept informed.

#(. Sub&ordination of >ndi,idual >nterest to common

goalAn organi@ation is much bigger than the indi,idual it constitutes therefore

interest of the undertaking should pre,ail in all circumstances.

he interests of any one employee or group of employees should not take

precedence o,er the interests of the organi@ation as a whole.



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#5. 8spirit +e 4orps>t refers to team spirit i.e. harmony in the work groups and mutual understanding among

the members.

8spirit +e 4orps inspires workers to work harder.

#%. 4entrali@ation4entrali@ation refers to the degree to which subordinates are in,ol,ed in decision making.

hether decision making is centrali@ed "to management* or decentrali@ed "to

subordinates* is a 9uestion of proper proportion. he task is to find the optimum

degree of centrali@ation for each situation.



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heory

verage worker is la$y

/islikes work

0ill try to do as little as possi'le ave little am'ition and avoid

responsi'ility

heory B

0orkers are not inherently la$y

/o not naturally dislike work

If given the opportunity, will do what

is good for the organi$ation.

heory and B+ouglas McCregor


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asics of Management


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Manager

manager is someone whose primary responsi'ility is to carry out themanagement process within an organi$ation to achieve the organi$ational

goals.

%hanging nature of organi$ations and work has 'lurred the clear lines of

distinction 'etween managers and nonmanagerial employees


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Managerial skills

Managerial Skills

Primary 4kills

5 %onceptual 4kill

5 &echnical 4kill5 uman 4kill

4econdary 4kills

5 /esign 4kill

5 %ommunication 4kill5 6eadership 4kill


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Managerial skills 4ontd

4onceptual skills: &his refers to the a'ility to think and conceptuali$e a'stract

situations. &hese a'ilities are re7uired for making complexdecisions.

In short it is8 &he mental capacity to develop plans, strategies and vision

!uman or interpersonal skills: &his includes the a'ility to understand other people and interact

effectively with them. &he human skills are also important increation of an environment in which people feel secure and free to

express their opinions.In short it is8 &he a'ility to work with other people in teams


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echnical skills: &hese skills include the knowledge, a'ilities of and proficiency in

activities involving methods, processes and procedures in therelevant fields as accounting, engineering, manufacturing etc.

#r in short8 &he a'ility to use the knowledge or techni7ues of a particular

discipline to attain ends

+esign skills: &hese skills ena'le a manager to handle and solve any kind of

unforeseen or actual pro'lems, that may crop up in theorgani$ation. 4uch pro'lems could arise due to internal factors or

external factors and9or 'oth.In short it is8 &he pro'lem solving skill


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4ommunication skills: &he a'ilities of exchanging ideas and information effectively. &o

understand others and let others understand comprehensively.

-eadership skills &he a'ilities to influence other people to achieve the common

goal.


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Skill distribution at ,arious management le,els


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1oles of managerole8 a set of expectation for one:s 'ehavior

In 1)-, enry Mint$'erg conducted a study to understand a'out the managerial

roles. e identified 1- managerial roles that are common to all managers.&hese 1- managerial roles are grouped under8 Interpersonal, decisional, and

informational roles.

1oles of Manager

Interpersonal5 "igurehead5 6eader5 6iaison

Informational

5 Monitor5 /isseminator5 4pokesperson

/ecisional

5 ;ntrepreneur5 /istur'ance handler5 esource allocator5


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1oles of manager 4ontd

A: >nter&personal 1ole

#. Figurehead: epresents the company on social occasions. ttending the flaghosting ceremony, receiving visitors or taking visitors for dinner etc.

(. -eader: In the role of a leader, the manager motivates, encourages, and'uilds enthusiasm among the employees. &raining su'ordinates to work underpressure, forms part of the responsi'ilities of a manager.

5. -iaison: %onsists of relating to others outside the group or organi$ation.4erves as a link 'etween people, groups or organi$ation. &he negotiation ofprices with the suppliers regarding raw materials is an example for the role of

liaison.


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D: +ecisional 1ole:

#. 8ntrepreneur: ct as an initiator and designer and encourage changes andinnovation, identify new ideas, delegate idea and responsi'ility to others.

(. +isturbance handler: &ake corrective action during disputes or crises=

resolves conflicts among su'ordinates= adapt to environmental crisis.

5. 1esource allocator: /ecides distri'ution of resources among variousindividuals and groups in the organi$ation.

%. 3egotiator:


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>nformational role:

#. Monitor: ;merges as nerve center of internal and external informationa'out Information.

(. +isseminator: &ransmits information received from other employees to

mem'ers of the organi$ation.

5. Spokesperson: &ransmits information to the people who are external to theorgani$ation, i.e., government, media etc. "or instance, a manager addressesa press conference announcing a new product launch or other ma>or deal.


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2!

Functions of management

lanning

1Planningis the process of setting goals, and charting the 'est way of action for

achieving the goals. &his function also includes, considering the various steps to

'e taken to encourage the necessary levels of change and innovation.


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2(

-e,els of management

#. op -e,el:

&op management sets the mission and goals, develops policies, evaluates theoverall performance of various departments, responsi'le for the 'usiness as a

whole and is concerned mainly with longterm planning

(. Middle -e,el:

Middle level management develops departmental goals, executes the policies,

plans and strategies determined 'y top management , develops medium termplans and supervises and coordinate lowerlevel managers: activities

(. -ower "Super,isory7 frontline* -e,el:

6ower level management takes charge of daytoday operations, is involved in

preparing detailed shortrange plans, is responsi'le for smaller segments ofthe 'usiness, executes plans of middle management , guides staff in their own

su'sections and keep close control over their activities


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2)

First-Line Management

Foreman, Supervisors, Office Managers

Middle Management

Plant Managers, Division Managers,

Department Managers

Top

Management

President, CEO,

ExecutiveVice Presidents

-e,els of management


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Planning

Planning

Planning

Organizing

Organizing

Organizing

Staffing

Staffing

Staffing

Directing

Controlling

Directing

Directing

Controlling

Controlling

TopManagers

MiddleManagers

First!ineManagers

!east

"mportant

Most

"mportant

>mportance of management functions to managers in

each le,el

Chap1 Introduction to Management

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