Session 1 –Part 1 - Basics in Management

Part 2 - Evolution in Management

Refer Chap 1 & 2

What is an Organization?

Organization is “a group of people working together

over a period of time to achieve a common goal”

Managers

Executives (Non-managers – potential

managers)

Other operations staff (Non-managers)

Size

Volumes

Small Medium Large

Ownership

Equity holding

Private Public

Profit

Intention

Orientation

Profit Charities

Scope

Business scope

Local International

Output

Business scope

Product Service

In order to achieve common goals, an organization needs to

utilize various RESOURCES

However, RESOURCES ARE SCARE

Therefore, we need to carefully utilize them for that we need

a proven disciplinary approach i.e. Management

Why we need ‘Management’?

The term management has originated in the

Italian language called ‘maneggiare’

Maneggiare Management

Defining of Management

“Management is the attainment of

organisational goals in an effective and an

efficient manner through planning,

organising, leading, and controlling

organisational resources”

(R. A. Daft, Principles of Management, 11th Edition, Page 1)

Refer Page 6

Fundamentally, there are 04 Managerial Functions

managers are responsible in carrying them out

Managerial Functions

Efficient and Effective

Focus

Efficient

Optimum usage of resources - no wastage

(doing things in the right way)

Effective

Achieving results

(doing the right thing)

Approach Performance

Managers’ Challenge Today!

Efficient

Effective

Ineffective

Inefficient

To be a star performer, manager needs to be efficient as well as effective

Perform

Approach

Technology helps organizations to be

more and more efficient through

automation

ManualSemi-

automationFully-

automation

Additional Reading 1 - Innovative way Page 10

Managerial Functions

Functions of Management

Planning: Establishment of targets (goals and objectives) and

deciding how to achieve them (strategy)

Target

• Increase business revenue by 25% within the next two years

How to increase revenue by 25%?

What to achieve? How to achieve?

Refer Page 7

Targ

ets Numeric Targets E.g. Increase revenue by 10%

Non-numeric Targets To be the most popular place to work

Goals

Objectives Strategies are

needed to achieve

goals and objectives

Functions of Management

Planning : Establishment of goals and objectives (targets) and

deciding how to achieve them

Organizing : Designing the structure of the organization

(arranging people and work)

Who will do what?

Functions of Management

Planning : Establishment of goals and objectives (targets) and

deciding how to achieve them

Organizing : Designing the structure of the organization (People

and work)

Leading : Process of influencing and inspiring (motivating) the

members to achieve objectives

Controlling : Process of ensuring whether actual performance

conforms to plan (i.e. regulating)

Managerial Types

Two directional perspectives in a hierarchy

Horizontal

Vertical

Non-managers (Executives and Operational Staff)

Managerial Types

Vertical classification

Top Managers are responsible to

drive the entire organisation

Middle Managers are holding

responsibilities to run departments,

business units, divisions, etc.

First-line Managers are responsible

for production of goods /services

and training lower staff – directly

responsible for the tasks of people

under them

Managerial Types

Horizontal classification

Functional managers are responsible

for departments that perform specific

tasks (e.g. Marketing Manager – all

marketing functions)

General managers are responsible for

several departments (e.g. GM

Production – Held the responsibility of

the entire production)

Managing Director

Operations Manager

Marketing Manager

Finance Manager

IT ManagerHR

Manager

Managing Director

GM -Operations

Manager –Plant 1

Team leaders

Manager –Plant 2

Team leaders

Stores Manager

Head of Engineering

GM –Marketing

Marketing Manager

Brand Manager

Head of Research

Managerial Skills

Managerial Skills

Three categories of skills are needed for a manager

to carryout his or her managerial activities:

Conceptual

Managerial Skills

Conceptual Skills - Ability to see the organization as a whole system and

the relationships among its parts

HR

Fin

Admin

IT

Prod

Mkt

Admin

Managerial Skills

Conceptual Skills - Ability to see the organization as a whole system and

the relationships among its parts

Human Relations Skills - Ability to work effectively with people (ability

to get the work done by others)

Technical Skills - Ability to use tools, machines and knowledge in

techniques

Relationship of Skills to Management

Refer Page 11

Additional Reading 2

When skills fail, Page 13

Managerial Roles

Refer Page 22

“Managers Play 10 different roles in an organization”

- Mintzberg

Roles are organized set of behaviour or actions carried out by

managers

There are 10 different roles identified by Mintzberg and sorted into

03 key categories

Planning Organizing

LeadingControlling

Informational

Decisional

Interpersonal

Managerial Roles Managerial Functions

Managers Roles

Informational

Monitor – Seek, scan and receive information from

business environment

Disseminator – Forward information internally to other members of the organization

Spokesperson – Transmit information to outsiders through speeches, reports and memos

Interpersonal

Figurehead – Perform ceremonial and

symbolic duties such as greeting visitors,

signing legal documents

Leader – Direct and motivate subordinates,

train, counsel, and communicate with

others

Liaison – Maintain information links both

inside and outside organization

Decisional

Entrepreneur – Initiate improvement projects, identify new ideas,

delegate idea responsibility to others

Disturbance handler –Take corrective actions

during disputes and crisis

Resource allocator –Decide who gets

resources, schedule budget and set

priorities

Negotiator – Represent department during negotiation of union

contracts, sales, purchases, etc.

Manager has

to deal with

information

and use them

best

Managers Roles

Interpersonal

Figurehead – Perform social, ceremonial and symbolic duties such as greeting visitors,

signing legal documents, etc.

Leader – Direct and motivate subordinates provide leadership to the team

Liaison – Maintain information links and maintain relationships (networking) with both

inside and outside stakeholders

Manager

has to deal

with other

people

Managers Roles (10 roles 3 categories)

Decisional

Entrepreneur - Create and control change within the organization. This means generating new ideas,

and implementing them

Disturbance handler – Take corrective actions during disputes and crisis

Resource allocator – Decide who gets resources, schedule budget and set priorities

Negotiator – Represent department during negotiation of union contracts, sales, purchases, etc.

Manager

has to arrive

at various

challenging

decisions

Managers Roles (10 roles 3 categories)

Monitoring

Disseminator

Spokesperson

Figurehead

Leader

Liaison

Entrepreneur

Disturbance handler

Resource allocator

Negotiator

Informational

Interpersonal

Decisional

Additional reading 3

State-of-the-art management, Page 27

Activity: Apply your skills, Page 29

MANAGEMENT

FUNDAMENTALS

Management perspectives/concepts added over time

The nature and scope of

management has changed

over time

Different theories got added to organizational

management time-to-time

Management perspectives/concepts added over time

Classical Perspective

Classical Perspective

Three Gurus namely, Fredrick Taylor, Max

Weber and Henri Fayol taught the early lessons

in management

Scientific management

Bureaucratic organisations

Administrative principles

Fredrick Taylor

Max Weber

Henri Fayol

Scientific Management

Frederick Winslow Taylor

proposed that workers “could be

re-tooled like machines”

Frederick Taylor

1856-1915

Scientific Management

Frederick Winslow Taylor

proposed that workers “could be

re-tooled like machines”

Focus Improve individual

efficiency and productivity

Frederick Taylor

1856-1915

Characteristics of Scientific Management –

How it was practiced by managers?

Developing standard methods for performing each job

Selecting workers with appropriate abilities for each job

Training workers in standard methods

Supporting workers by planning their work and eliminating interruptions

Providing wage incentives (monetary) to workers to increase their output

Management as a bureaucratic process

Max Weber, a

German sociologist,

considered

bureaucracy as a key

element of

management

Max Weber

1864-1920

“A company should have rules

and procedures in managing”

Characteristics of Weberian Bureaucracy

Division of labor

Organization hierarchy

/ structure

Coded decisions

Promotions/Selections on

technical qualifications

Administrative Principles

Henri Fayol, a French mining engineer, was a major contributor

Focused on the entire organisation

Identified five functions of management: planning,

organising, commanding, coordinating, and controlling

4 general principles of management; many still used today:

Unity of command – Each subordinate receives orders

from one superior

Division of work – Work is subdivided among employees

Unity of direction (Departmentalization) – Similar

activities are grouped together under one manager

Scalar chain – Chain of authority flows from top to bottom

of the organisation

Henry Fayol

1864-1920

Henry Fayol

Activity

Sort the words into three concepts as

explained in the classical perspective

Scientific principle

Bureaucratic principles

Administrative principles

1. Have rules and

procedures

7. Standard method of

doing for each job

2. Treat employees like

machines

8. Focus on entire

organization

3. Functions of management 9. Unity of command

4. Organizational structure 10. Scalar chain

5. Departmentalization 11. Improve individual

efficiency

6. Encourage people by

giving money for their

increasing output

12. Promotions to be given

based on technical

performance

Humanistic Perspective: Early Advocates

“Employees performed better when they are

treated them as humans and not machines”

Understand human behaviours, needs, and

attitudes in the workplace and highlighted

the importance of people

Empowerment and facilitating (instead of

rigid controlling) were some of the other

aspects emerged through this approach

Humanistic perspective

Quantitative Perspective

Classical perspective

Humanistic perspective

Quantitative Perspective

Use of mathematics and statistics to aid management decision making

Enhanced by development and growth of the computer

There are three subsets of the quantitative approach

Operations research consists of building mathematical models

Operations management focuses on the physical production of goods

and services

Information technology focuses on technology and software to aid

managers

Recent Perspectives in

Management

Classical perspective

Humanistic perspective

Quantitative perspective

Systems Thinking

Organization is perceived as a system which includes a

combination of many sub-systems (i.e. departments and

functions)

The relationship among the parts (i.e Departments) and

how they form the whole system

Managers must understand subsystem interdependence

and synergy Focus on the big picture

Contingency View

Every situation is unique; there is no universal

management theory A theory which works well at

company A will not be a good fit for company B

Managers must determine what method will work after

identifying key contingencies for the current situation

Need to focus on environmental changes

Classical perspective

Humanistic perspective

Quantitative perspective

Systems perspective

Total Quality Management

Quality movement is strongly associated with Japan

Total Quality Management (TQM) became popular in the 1980s and 1990s

Integrate high-quality values in every activity

Elements of Quality Management

Employee involvement

Focus on the customer

Benchmarking

Continuous improvement

Classical perspective

Humanistic perspective

Quantitative perspective

Systems perspective

Contingency perspective