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UNIT I
INTRODUCTIONTO
MANAGEMENT
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MANAGEMENT KEY CONCEPTSMANAGEMENT KEY CONCEPTS
Organizations: People working togetherand coordinating their actions to achievespecific goals.
Goal: A desired future condition that theorganization seeks to achieve.
Management:The process of using
organizational resources to achieve theorganizations goals by... Planning, Organizing, Leading, and
Controlling
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ADDITIONAL KEY CONCEPTSADDITIONAL KEY CONCEPTS
Resources are organizational assets andinclude:
People, Machinery, Raw materials, Information, skills, Financial capital.
Managers are the people responsible forsupervising the use of an organizationsresources to meet its goals.
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ACHIEVING HIGH PERFORMANCEACHIEVING HIGH PERFORMANCE
o Organizations can be defined as group of people
working together to create a surplus. In business organizations, this surplus is profit.
In nonprofit organizations, such as charitableorganizations, it may be the satisfaction of needs.
Organizations must provide a good or service desiredby its customers. Eg.
David Johnson of Campbell Soup manages hisfirm to provide quality food products.
Physicians, nurses and health care administratorsseek to provide healing from sickness.
McDonalds restaurants provide burgers, friesand shakes that people want to buy.
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ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCE
Measures how efficiently and effectively managers
use resources to satisfy customers and achievegoals.
Efficiency:A measure of how well resourcesare used to achieve a goal.
Usually, managers must try to minimize theinput of resources to attain the same goal.
Effectiveness:A measure of the
appropriateness of the goals chosen (are thesethe right goals?), and the degree to which theyare achieved.
Organizations are more effective when
managers choose the correct goals and then
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MANAGEMENT
Management is the process of designing &maintaining an environment in whichindividuals, working together in groups,efficiently accomplish selected aims.
As managers, people carry out the managerialfunctions of planning, organizing, staffing,leading, & controlling.
Management applies to any kind oforganization.
It applies to managers at all organizationallevels.
The aim of all managers is the same: to createa surplus.
Managing is concerned with productivity, this
implies effectiveness & efficiency.
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Features of Management : Organized activities
Existence of objectives Relationship among resources
Working with & Through people
Decision- Making
Importance of Management :
Effective Utilization of Resources
Development of Resources
To Incorporate Innovations Integrating Various Interest Groups
Stability in the Society
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MANAGEMENT & ADMINISTRATION :
Administration is above management
Administration is part of management Management & administration are same
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ADMINISTRATION IS ABOVE MANAGEMENT :
Administration is that phase of businessenterprise that concerns itself with the overalldetermination of institutional objectives & thepolicies necessary to be followed in achieving
those objectives.
Management on the other hand, is an executivefunction which is primarily concerned withcarrying out broad policies laid down by the
administration.
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ADMINISTRATION IS PART OF MANAGEMENT
Management is a generic name for the totalprocess of executive control in industry orcommerce.
It is a social process entailing responsibility for theexecutive & economic planning & regulation of theoperation of an enterprise, in the fulfillment of agiven purpose or task.
Administration is that part of management which isconcerned with the installation & carrying out theprocedures by which it is laid down &communicated, & the process of activitiesregulated & checked against plans.
MANAGEMENT & ADMINISTRATION ARE
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MANAGEMENT & ADMINISTRATION ARESAME
Management & administration are synonymous;the difference between the two terms lies mostly intheir usage in different countries or different fieldsof human organizations.
The distinction between the two terms issuperfluous and meaningless.
The government often uses the word administrator,instead of manager, to handle & manage its affairs
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DIFFERENCE BETWEEN ADMINISTRATION &MANAGEMENT
Basis of difference Administration Management
1 Level in organization Top level Middle & lower
2 Major focus Policy formulation &objectivedetermination
Policy execution forobjective achievement
3 Nature of functions Determinative Executive
4 Scope of functions Broad & conceptual Narrow & operational
5 Factors affecting decisions Mostly external Mostly internal
6 Employer-employee relation Entrepreneurs &owners
Employees
7 Qualities required Administrative Technical
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FUNCTIONS OF MANAGEMENTFUNCTIONS OF MANAGEMENT
PlanningPlanningChooseChoose GoalsGoals
OrganizingOrganizingWorkingWorking togethertogether
LeadingLeadingCoordinate
ControllingControllingMonitor & measureMonitor & measure
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PLANNINGPLANNING
Planning is the process used by managers to
identify and select appropriate goals andcourses of action for an organization.
3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines howeffective and efficient the organization isand determines the strategy of theorganization.
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ORGANIZINGORGANIZING
In organizing, managers create the structure ofworking relationships between organizationalmembers that best allows them to worktogether and achieve goals.
Managers will group people into departmentsaccording to the tasks performed.
Managers will also lay out lines of authorityand responsibility for members.
An organizational structure is the outcome oforganizing. This structure coordinates andmotivates employees so that they worktogether to achieve goals.
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LEADINGLEADING
In leading, managers determine direction,state a clear vision for employees to follow,and help employees understand the role theyplay in attaining goals.
Leadership involves a manager using power,influence, vision, persuasion, andcommunication skills.
The outcome of the leading function is a high
level of motivation and commitment fromemployees to the organization.
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CONTROLLINGCONTROLLING
In controlling, managers evaluate how well theorganization is achieving its goals and takescorrective action to improve performance.
Managers will monitor individuals,
departments, and the organization todetermine if desired performance has beenreached.
Managers will also take action to increaseperformance as required.
The outcome of the controlling function is theaccurate measurement of performance and
regulation of efficiency and effectiveness.
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TopTop
ManagersManagers
MiddleMiddle
ManagersManagers
First-line ManagersFirst-line Managers
Non-managementNon-management
Three Levels of ManagementThree Levels of Management
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MANAGEMENT LEVELSMANAGEMENT LEVELS Organizations often have 3 levels of managers:
First-line Managers:responsible for day-to-dayoperation. They supervise the people performingthe activities required to make the good or
service.
Middle Managers:Supervise first-line managers.They are also responsible to find the best way touse departmental resources to achieve goals.
Top Managers:Responsible for the performance ofall departments and have cross-departmentalresponsibility. They establish organizational goalsand monitor middle managers.
FUNCTIONS AT VARIOUS LEVELS OF
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FUNCTIONS AT VARIOUS LEVELS OFMANAGEMENT
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FUNCTIONS OF TOP MANAGEMENT
To analyze, evaluate & deal with the externalenvironmental forces
To establish overall long-term goals strategy & policiesof the company including the master budget toallocate resources.
To create an organizational framework consisting of
authority responsibility relationships. To appoint departmental & other key executives.
To provide overall leadership to the company.
To represent the company to the outside world, e.g.
trade associations, government, trade unions, etc. To exercise overall review & control on the companys
operations &
To coordinate the activities & efforts of differentdepartments.
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FUNCTIONS OF MIDDLE MANAGEMENT
To interpret & explain the policies framed bytop management .
To compile & issue detailed instructionsregarding operations.
To maintain close contacts with operatingresults so as to evaluate performance.
To participate in operating decisions
To cooperate among themselves so as to
integrate or coordinate various parts of adivision or a department
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FUNCTIONS OF SUPERVISORY MANAGEMENT
To plan day-to-day production within the goals laiddown by higher authorities.
To assign jobs to workers to make arrangementsfor their training & development.
To supervise & control workers & maintainpersonal contact with charge hands.
To arrange materials & tools & to maintainmachinery.
To advise & assist workers by explaining workprocedures, solving their problems, etc
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RESTRUCTURINGRESTRUCTURING
Top Management have sought methods torestructure their organizations and save costs.
Downsizing:eliminate jobs at all levels ofmanagement.
Can lead to higher efficiency.
Often results in low morale and customercomplaints about service.
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NATURE OF MANAGEMENT
Management as an activity (or a process )Planning
Organizing
Staffing
Directing &
Controlling
Management as a disciplineManagement education is gaining popularity in the present
day times.
Scholars are interested in study of management discipline, forpurposes of conducting research studies & making new
& valuable contributions to this disciplinePractitioners of management are much interested in a study of
management discipline
Management discipline is growing into specialized branches ofmanagement like production, marketing, personnel,
finance & several others
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Management as a group ( class or team or society)
Micro-level : the economic results, in terms of theattainment of common objectives, of the group-
endeavorMacro-level : the survival, growth & prosperity of the
economy would be determined by the integrity,competence & efforts of the total managementclass
Management as an economic resource (or a factor ofproduction) .
The economist has been all the time been speaking
of 4 factors viz , land, labour, capital & enterprise.
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MANAGEMENT SCIENCE OR ART
Management science or art differ in the following
ways : Commonsense is vague as compared to scientific
knowledge
Flagrant inconsistency often appears in
commonsense whereas logical consistency is thebasic of science
Science systematically seeks to explain the eventswith which it deals, commonsense ignores theneed for explanation
The scientific method deliberately exposes claimsto the critical evaluation of experimental analysis,commonsense method fails to test conclusions inany scientific fashion
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MANAGEMENT AS PROFESSION
Profession is an occupation for which specialized
knowledge, skills & training are required & theuse of these skills is not meant for self-satisfaction but these are used for largerinterests of the society & the success of the use
of these skills is measured not in terms ofmoney alone.
Characteristics of profession :
Existence of knowledge
Acquisition of knowledge Professional association
Ethical codes
Service motive
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Micro level
Enterprise level1. Maximum results with minimum inputs
Securing results in terms of production, sales, employeesatisfaction
Maintaining a balance between the internal environment of
the enterprise & the external environment
2. Ensuring maximum prosperity for both employers &employees
Stability of employment
Satisfactory working conditionsFair remuneration
Job-satisfaction
Justice & human treatment
3. Ensuring survival, growth & prestige of the enterprise
OBJECTIVES/ ADVANTAGES OR SIGNIFICANCE OF MANAGEMENT
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Macro level
To further the process of economic growth To ensure social welfare
Generation of employment opportunities
Helping maintain healthy industrial relations
Conversion of challenges into opportunities
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ROLE OF MANAGEMENT PRINCIPLES
To increase efficiency
To crystallize the nature of Management
To carry on Researches
To attain social objectives
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NATURE OF MANAGEMENT FUNCTIONS
Management functions are universal Management functions have interactive
quality
Although management process suggests a
sequential arrangement of functions its notalways possible in the performance ofmanagerial functions strictly in a sequence
Since there are many managerial functionsoften a question arises which managementfunction is more important so that managersdevote more time to that
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MANAGERIAL ROLESMANAGERIAL ROLES
Described by Mintzberg.A role is a set of specific tasks a person performs
because of the position they hold.
Roles are directed inside as well as outside the
organization. There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
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ROLES OF A MANAGER
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INTERPERSONAL ROLESINTERPERSONAL ROLES
Roles managers assume to coordinate andinteract with employees and provide directionto the organization.
Figurehead role:symbolizes the organizationand what it is trying to achieve.
Leader role:train, counsel, mentor andencourage high employee performance.
Liaison role:link and coordinate people insideand outside the organization to help achievegoals.
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INFORMATIONAL ROLESINFORMATIONAL ROLES
Associated with the tasks needed to obtainand transmit information for management ofthe organization.
Monitor role:analyzes information from both
the internal and external environment.Disseminator role:manager transmits
information to influence attitudes and behaviorof employees.
Spokesperson role:use of information topositively influence the way people in and out ofthe organization respond to it.
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DECISIONAL ROLESDECISIONAL ROLES
Associated with the methods managers use toplan strategy and utilize resources to achievegoals.
Entrepreneur role:deciding upon new projectsor programs to initiate and invest.
Disturbance handler role:assumeresponsibility for handling an unexpected eventor crisis.
Resource allocator role: assign resourcesbetween functions and divisions, set budgets oflower managers.
Negotiator role:seeks to negotiate solutionsbetween other managers, unions, customers, orshareholders.
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MANAGERIAL SKILLSMANAGERIAL SKILLS
There are three skill sets that managers needto perform effectively.
1. Conceptual skills:the ability to analyze anddiagnose a situation and find the cause and
effect.2. Human skills:the ability to understand, alter,
lead, and control peoples behavior.
3. Technical skills:the job-specific knowledge
required to perform a task. Common examplesinclude marketing, accounting, andmanufacturing.
All the three skills are enhanced through
formal training, reading, and practice.
SKILL TYPE NEEDED BY MANAGERSKILL TYPE NEEDED BY MANAGER
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SKILL TYPE NEEDED BY MANAGERLEVEL
SKILL TYPE NEEDED BY MANAGERLEVEL
Top
Managers
Middle
Managers
Line
Managers
Conceptual Human Technical
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MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
Increasing number of global organizations.
Building competitive advantage throughsuperior efficiency, quality, innovation, and
responsiveness. Increasing performance while remaining
ethical managers.
Managing an increasingly diverse work force.
Using new technologies.
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MANAGEMENT TRENDSMANAGEMENT TRENDS
Empowerment:expand the tasks andresponsibilities of workers.
Supervisors might be empowered to make some
resource allocation decisions. Self-managed teams:give a group of employees
responsibility for supervising their own actions.
The team can monitor its members and the
quality of the work performed.