Principles of Management

Introduction to Management and Organizations

CHAPTER-1

AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

Define Business and describe the characteristics of Organization. Differentiate between managerial and nonmanagerial employees. Describe Management. Explain the functions, roles, and skills of managers and how the manager's job is changing. Recognize the value of studying Management

SOME IMPORTANT TERMS TO KNOW

a. Business
The term Business signifies individual &
group activities directed towards wealth generation through goods & services (recognized by the law).

b. Organization
A group of people working together in a structured and coordinated fashion to achieve a set of goals is called organization.
Structure

Goals

A
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c. Goals
Goals are the end results towards which all the activities are directed. Different organizations may have different goals. e.g. Profitability, Growth, Market Penetration, Productivity, Leadership, Client Satisfaction etc.

d. Objectives
Objectives are sub goals.

What is Management?

Management...
Coordination and oversight of the work activities of others so that their activities are completed efficiently and effectively.

Effectiveness VS Efficiency

Doing the right things , or completing activities so that organization goals are attained, called Effectiveness. Doing the things right, or getting the most output from the least amount of inputs, called Efficiency.
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Why Efficiency & Effectiveness are important to Management

What are the functions of Management? OR What is Management Process?

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1-8

Four Functions of Management

Planning
Choose Goals

Controlling
Monitor & measure

Organizing
Working together

Leading
Coordinate
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1-Planning
A
Management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.

Planning Process consists of five steps Objective-setting Forecasting Strategy formation Setting specific standards Continual review and revision

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2-Organizing
Organizing is the establishment of relationship between:
Activities Persons Physical factors

or
Structuring working relationships in a way that

allows organizational members to achieve organizational goals.

Function of Organizing involves: 1. Division of Labor 2. Departmentalization 3. Staff positioning 4. Assigning authority or Delegation of power 5. Equalizing authority and responsibility

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3-Leading
Management function that involves working with and through people to accomplish organizational task.

Components involve in leading function are: 1. Supervision 2. Motivation In leading functions 3. Communication subordinates are guided, supervised and 4. Bringing about motivated by managers change 5. Managing conflict
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4-Controlling
Management function that involves monitoring actual performance ,comparing Process consist of: 1. 2. Measuring Comparing

standards, and taking

corrective actions if necessary.

3.

Correcting

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Controlling Process
SET PERFORMANCE STANDARDS MEASURE PERFORMANCE

COMPARE

DETERMINE DEVIATION

STANDARDS TAKE CORRECTIVE ACTION

WITHIN LIMITS

NO

YES

CONTINUE WORK PROGRESS

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Management Functions

Management as Systematic Approach

Inputs

i.
ii.

Human Resources
Financial Resources

iii. Physical Resources iv. Information Resources

Goals

Effectively Completion of Goals

ORGANIZING

PLANNING

MANAGEMENT PROCESS

Leading

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CONTROLLING

Manager
Managers are those people who work with and through other people for getting activities

completed in order to accomplish

organizational goals.

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Difference between Managers and Operatives

Operatives are people who work directly on a job or task & have no responsibility for overseeing the work of others. In contrast Managers direct the activities of other people in the organization.

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What are their Objectives?

To achieve the organizational goal, managers pursue the following objectives. Efficient use of resources Customer satisfaction Adequate return on capital Satisfied workforce Improved work conditions Building supplier relationship Contribution to national goal
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Kinds of Managers
Basically there are three levels of managers
TOP LEVEL MIDDLE LEVEL FIRST-LINE MANAGER

i. Top Managers ii. Middle Managers iii. First-line Managers

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Top Managers
Managers at or near the top of the organization who are responsible for making organizationalwide decisions and establishing the goals and overall strategy are called Top Managers. Titles found in this group include President, Vice

President, CEO, Chairman of the Board etc.

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Middle Managers
Middle Level Managers are primarily responsible for
implementing policies and the plans developed by the top managers and for supervising and coordinating the activities of lower level mangers. Titles found in this group are Plant Manager, Operational manager, Branch Manager or Departmental Head etc.

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First-line Manager
First-line Managers supervise and coordinate the activities of operating employees. Titles found in this group are supervisors, Coordinator, Shift and Office Managers.

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Basic Managerial Roles & Skills

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Managerial Role.
The managerial roles are divided into three basic categories identified by Henry Mintzberg.

1. 2. 3.

Interpersonal Role Informational Role Decisional Role

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Managerial Skills
There are number of skills that a Manager needs but three of them are pre-requisite to their success
Technical Skills Interpersonal Skills Conceptual Skills
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Technical Skills
Job specific Knowledge and techniques in a specialized field is termed as

Technical

Skills.
Technical skills are specially input for first line managers. These manager spend much of their time in training subordinates and answering questions about work related problems. They must know how to perform the task assigned to those they supervise if they are to be effective managers.
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Interpersonal Skills
The ability to communicate, with understand and motivate both individual and groups is called

Interpersonal

Skills or human skills.

Manager spend considerable time in interacting with people both inside and outside the organization. e.g. Workers, customers, suppliers, investor. Manager with good communication skills are able to get the best out of their people. They know how to communicate, motivate, lead and inspire. These skills are equally important at level of managers.
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Conceptual Skills
The managers ability to think and to conceptualize about abstract and complex situations are called

Conceptual Skills.
Using these skills manager must be able to see the organization as a whole, understand the relationship among various subunits, and visualize how the organization fits into its broader environment, these skills are most important at top level management.
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Skills Needed at Different Management Levels

HOW THE MANAGERS JOB IS CHANGING

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The Universality of Management

The reality that management is needed in all types and sizes of organization, at all organizational levels, in all organizational areas, and in organization no matter where located.

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Universal Need for Management

The Reality of Work

CHHALLANGES FACED AS A MANAGER.
Keeping pace with a continuous changing business environment.

REWARDS OF BEING MANAGERS.

Satisfaction of creating a winning team. Making a difference in developing the careers of your junior reportees.

Energizing and motivating the team and managing ambitions and idiosyncrasies of star performance.

Ability to turn around an organization through difficult situation. Create an impact among all stakeholders. Recognition & incentives both monetary and nonmonetary.

Meeting deadlines and targets and walking the talk (read promises & commitments made)
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Review & Revision Standard Setting Strategy Formation Forecasting Goal setting PLANNING

Equalizing authority & Responsibility

Effectiveness Efficiency

Delegation of Power
Staff Positioning Departmentalization Division of labor ORGANIZING Components of Management

All sizes of Organizations

All Types of Organizations

Functions MANAGEMENT

Universality of Management

All Organizational Levels

LEADING Motivation Communication

Bringing Change

CONTROLLING
Measuring Comparing Correcting Manager

Changes and Management

Managing Conflicts

Supervision
Levels Interpersonal Informational Roles Skills Figure Head Leader Liaison Top Level

Digitization

Changing security threats

Monitor

Decisional
Entrepreneur Resource Allocator Negotiator

Technical Skills

Middle Level First level

Organizational & Managerial Ethics

Disseminator
Spokes person

Interpersonal skills

Increased Competitiveness

Conceptual Skills Diagnostic Skills

Disturbance Handler