Introduction to Management

What is management?

• In today’s tough and uncertain economy, a company needsstrong managers to lead its staff toward accomplishingbusiness goals.

• But managers are more than just leaders — they’re problemsolvers, cheerleaders, and planners as well.

• Managers fulfill many roles and have many differentresponsibilities at each level of management within anorganization.

• Through this presentation we will discover those roles andfunctions, but you also find out the truth about severalcommon misconceptions about management.

Definition

• Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals.

—Harold Koontz and Cyrill O’Donnell

• Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.

—F.W. Taylor

• To manage is to forecast and to plan, to organize, to command, to coordinate and to control.

—Henry Fayol

Management

• Management refers to the tasks and activities involved in directing an

organization or one of its units: planning, organizing, leading, and

controlling.

• The process of reaching organizational goals by working with and

through people and other organizational resources.

Management

Organization

Two or more people who work together in a structured way to achieve a specific goal or set of goals.

Goals

Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization.

The Role of Management

To guide the organizations towards goal accomplishment

Resources {Assets}

7 categories of resources:

People

Money

Time

Work Procedures

Energy

Materials

Equipment

Goals

• Profit Levels or Maximum cost levels

• Maintenance or growth of financial strength

• Quality standards

• Guest employee & management concerns

• Professional obligations

• Societal concerns (setting up a plant)

CONCEPTS OF MANAGEMENT

The term management has been interpreted in several ways;

• Management as an Activity

• Management as a Process

• Management as an Economic Resource

• Management as a Team

• Management as an Academic Discipline

• Management as a Group

Management as an Activity

• Management is defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group.

• The activities of management are:

o Interpersonal activities

o Decisional activities

o Informative activities

Management as a Process

• Management consists of getting the objectives of anorganisation and taking steps to achieve objectives. Themanagement process includes planning, organising, staffing,directing and controlling functions.

• Management as a process has the following implications:

(i) Social Process: Management involves interactions amongpeople.

(ii) Integrated Process: Management brings human, physicaland financial resources together to put into effort so as tomaintain harmony among them.

(iii) Continuous Process: Management involves continuousidentifying and solving of problems.

Management Process and Goal Attainment

Management and Organizational Resources

Management as an Economic Resource

Management as a Team/Group• As a group of persons, management consists of all those

who have the responsibility of guiding and coordinatingthe efforts of other persons in order to achieve theirgoals

Management as an Academic Discipline• Management has emerged as a specialised branch of

knowledge. It comprises principles and practices foreffective management of organisations. Managementoffers a very rewarding and challenging career.

Nature and Characteristics of Management

• Management is goal-oriented: It is a group goals ororganisational goals. The basic goal of management is toensure efficiency and economy in the utilisation ofhuman, physical and financial resources.

• Management is universal: All types oforganisations,e.g., family, club, university, government,army, cricket team or business.

• Management is an Integrative Force: Itintegrates and coordinates human and otherresources to achieve the goals.

• Management is a Social Process:

Management is done by people, through people and for people. It

is a social process because it is concerned with interpersonalrelations.

• Management is multidisciplinary:

Management depends upon wide knowledge derived from severaldisciplines like engineering, sociology, psychology, economics,anthropology,etc. The vast body of knowledge in managementdraws heavily upon other fields of study.

• Management is a continuous Process:

Management is a dynamic and an on-going process. The cycle ofmanagement continues to operate so long as the organizationexists.

• Management is dynamic: Management tries to visualiseproblems before they turn into emergencies.

According to Drucker, Managers do not wait for the future,theymake their future.

• Management is Intangible: Management is an unseen orinvisible force. It cannot be seen but its presence can be felteverywhere in the form of results. However, the managers whoperform the functions of management are very much tangible andvisible.

• Management is an Art as well as Science:It contains a systematic body of theoretical knowledge and it alsoinvolves the practical application of such knowledge.

Objectives Of Management

Organizational objectives:

• Reasonable profits so as to give a fair return on the capital invested in business

• Survival and solvency of the business, i.e., continuity.

• Growth and expansion of the enterprise

• Improving the goodwill or reputation of the enterprise.

Objectives Contd..

Personal objectives: Employees

• Fair remuneration for work performed

• Reasonable working conditions

• Opportunities for training and development

• Participation in management and prosperity of the enterprise

• Reasonable security of service.

Objectives Contd..

• Social objectives: Society

• Quality of goods and services at fair price to consumers.

• Honest and prompt payment of taxes to the Government.

• Conservation of environment and natural resources.

• Fair dealings with suppliers, dealers and competitors.

• Preservation of ethical values of the society.

ROLE AND IMPORTANCE OF MANAGEMENT

• According to Peter Drucker,“ management is a dynamic life giving element in an organisation, without it the resources of production remain mere resources and never become production”.

ROLE AND IMPORTANCE CONTD…

• Achievement of goals:

Management is goal oriented. In order to achieve thegoals, management reconciles the objectives of thegroup with those of its members so that each one ofthem is motivated to make his best contribution

• Optimum utilisation of resources:

Managers forecast the need for materials, machinery,money and manpower. Ensures adequate resources plusno idle resources. They create and maintain anenvironment conducive to highest productivity.

• Minimisation of cost:In the modern era of cut-throat competition no business can

succeed unless it is able to supply the required goods and servicesat the lowest possible cost per unit. Managers ensures no wastage.Reduces costs, improving efficiency, managers enable an enterpriseto be competent to face competitors and earn profits.

• Survival and growth:An enterprise has to adapt and update itself to the changingdemands of the market and society. Management takes steps in

advanceto meet the challenges of changing environment. SWOT analysis isconducted. Managers enable the enterprise to minimise the risksand maximise the benefits of opportunities.

• Generation of employment:

By setting up and expanding business enterprises, managers createjobs for the people. Managers also create such an environment thatpeople working in enterprise can get job satisfaction and happinesswhich satisfies the economic and social needs of the employees.

• Development of the nation:

Efficient management and quality resources are the most crucial

factors in economic and social development. By producing wealth,management increases the national income and the livingstandards of people. That is why management is regarded as a keyto the

economic growth of a country.

MANAGEMENT AND ADMINISTRATION

• Oliver Sheldon in his “The Philosophy of Management” defines

‘Administration as a function is concerned with the determination of the corporate policy, the coordination of finance, production and distribution,the settlement of the structure of the organisation, under the ultimate control of the executive.’

Management is concerned with the execution of the policy, within the limits set up by administration and the employment of the organisation for the particular objects before it.

MANAGEMENT AND ADMINISTRATION

MANAGEMENT AND ADMINISTRATION-Difference

SCOPE OF MANAGEMENT

• Production Management:

Planning, organizing, directing and controlling the productionfunction so as to produce the right goods, in right quantity, atthe right time and at the right cost. It includes the followingactivities:(a) designing the product

(b) location and layout of plant and building

(c) planning and control of factory operations

(d) operation of purchase and storage of materials

(e) repairs and maintenance

(f) inventory cost and quality control

(g) research and development etc.

PRODUCTION MANAGEMENT

• Marketing Management:

Refers to the identification of consumers needs and supplyingthem the goods and services which can satisfy these wants. Itinvolves the following activities:

(a) marketing research to determine the needs andexpectation of consumers

(b) planning and developing suitable products

(c) setting appropriate prices

(d) selecting the right channel of distribution, and

(e) promotional activities like advertising and salesmanship tocommunicate with the customers

MARKETING MANAGEMENT

• Financial Management:

Seeks to ensure the right amount and type of funds to business atthe right time and at reasonable cost. It comprises the followingactivities:

(a) estimating the volume of funds required for both long-term

and short-term needs of business

(b) selecting the appropriate source of funds

(c) raising the required funds at the right time

(d) ensuring proper utilisation and allocation of raised funds so

as to maintain safety and liquidity of funds and the creditworthiness andprofitability of business, and

(e) administration of earnings

Thus, financial management involves the planning, organising andcontrolling of the financial resources.

FINANCIAL MANAGEMENT

• Personnel Management:

Involves planning, organising and controlling the procurement,development, compensation, maintenance and integration ofhuman resources of an organisation. It consists of the followingactivities:

• (a) manpower planning• (b) recruitments,• (c) selection,• (d) training• (e) appraisal,• (f) promotions and transfers,• (g) compensation,• (h) employee welfare services, and• (i) personnel records and research, etc.

Management and OrganizationsOrganizations –• Groups of individuals constantly join forces to accomplish common

goals.• Sometimes, the goals of these organizations are for profit, such as

franchise restaurant chains or clothing retailers.• Other times, the goals are more altruistic, such as nonprofit

churches or public schools.• But no matter what their aims, all these organizations share two

things in common:• They’re made up of people, and• certain individuals are in charge of these people.

Requirement of managers

• Managers appear in every organization — at least in organizationsthat want to succeed.

• These individuals have the sometimes unenviable task of makingdecisions, solving difficult problems, setting goals, planningstrategies, and rallying individuals.

• Managers administer and coordinate resources effectively andefficiently to achieve the goals of an organization.

• In essence, managers get the job done through other people.

The Intricacies of management• No matter what type of organization they work in, managers are generally• responsible for a group of individuals’ performance.• As leaders, managers must encourage this group to reach common business

goals, such as bringing a new product to market in a timely fashion.• To accomplish these goals, managers not only use their human resources, but

they also take advantage of various material resources as well, such astechnology.• Think of a team, for example. A manager may be in charge of a certain

department whose task it is to develop a new product. The manager needs tocoordinate the efforts of his department’s team members, as well as give themthe material tools they need to accomplish the job well. If the team fails,ultimately it is the manager who shoulders the responsibility.

Greater the authority and higher the responsibility.Levels of management differ from one organization to another, depending on the size of business activity, philosophy of management, span of control and other related factors.

Management Level and Skills

Levels of management

• Two leaders may serve as managers within the samecompany but have very different titles and purposes.

• Typical management levels fall into the followingcategories:• Managers at this level ensure that major performance

objectives are established and accomplished.• Middle managers report to top managers and are in

charge of relatively large departments or divisionsconsisting of several smaller units.

• The initial management job that most people attain istypically a first-line management position, such as ateam leader or supervisor

Top Level

Middle Level

Low Level

Functions of Managers

Planning

Organizing

Staffing

Leading

Controlling

• This step involves mapping out exactly how toachieve a particular goal.

• After a plan is in place, a manager needs toorganize her team and materials according to herplan. Assigning work and granting authority aretwo important elements of organizing.

• After a manager discerns his area’s needs, hemay decide to beef up his staffing by recruiting,selecting, training, and developing employees.

• Leading involves motivating, communicating,guiding, and encouraging.

• He needs to continuously check results againstgoals and take any corrective actions necessaryto make sure that his area’s plans remain ontrack.

Roles performed by managers• A manager is not only a team leader, but he is also a planner,

organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one.

• These roles fall into three categories:

• Interpersonal: This role involves human interaction.

• Informational: This role involves the sharing and analyzing of information.

• Decisional: This role involves decision making.

CATEGORY ROLE ACTIVITY

Informational Monitor Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders.

Disseminator Disseminator Forward information to organization membersvia memos, reports, and phone calls.

Spokesperson Transmit information to outsiders via reports,memos, and speeches.

Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents.

Leader Direct and motivate subordinates; counsel and communicate with subordinates

Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings.

Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others.

Disturbance Handler

Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments.

ResourceAllocator

Decide who gets resources; prepare budgets; set schedules and determine priorities.

Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets.

Mintzberg’sset of ten

roles

Skills needed by managers

• Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories:

Technical

Human

Conceptual

This skill requires the ability to use a special proficiency orexpertise to perform particular tasks.

This skill demonstrates the ability to work well incooperation with others..

This skill calls for the ability to think analytically. Analyticalskills enable managers to break down problems intosmaller parts, to see the relations among the parts, and torecognize the implications of any one problem for others.

Books for reference

• Principles of Management – Thomas N Duening and John.M.Wancevich.

• Management - V.S.P Rao and V.Hari Krishna.