Chapter 01 introduction to management
Transcript of Chapter 01 introduction to management
INTRODUCTION TO MANAGEMENT
AUTHORS:DR. K IRAN NERKARDR. VILAS CHOPDE
CHAPTER-1
Management consists in guiding human and physical resources into dynamic, hard-hitting organization unit that attains its objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the service. --- Lawrence A. Appley
Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform effi ciently and eff ectively towards the attainment of group goals. --- Harold Koontz and Cyrill O’ Donnell
DEFINE MANAGEMENT
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•Lead the employees in an inspiring way to work harder for the achievement of individual and organizational goals.
Achievement of Goals
•Helps an organization to make the best possible use of limited and scarce resources.
Optimum Utilization of Resources
•Results from cost saving and profit maximization techniques applied by the management.
Cost Minimization
•Implies that an organization needs effective management to cope with dynamic business environment and adapt changes in the market.
Survival and Growth
•Results from the expansion of business, which is decided and implemented by the top management of an organization.
Employment Generation
•Implies that management of any organization aims at making an efficient use of its resources, such as labor, capital, and land to generate profit
Development of the Nation
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NEED FOR MANAGEMENT
Objectives of
Management
Towards Organizati
on
Towards Workforce
Towards Society
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OBJECTIVES OF MANAGEMENT
Generating sound profi t to provide a fair return on capital invested in business
Getting maximum output with minimum eff orts and resources
Combining various resources, such as capital, labor, and materials in the best possible way, so that various costs are reduced
Utilizing the factors of production in such a manner that all the wastages and damages are reduced up to the minimal level
Ensuring the survival and solvency of the organizationGrowing and expanding the organization Improving the goodwill of the organization
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OBJECTIVES OF MANAGEMENT: TOWARDS ORGANIZATION
Providing fair remuneration in exchange of services rendered by employees
Developing employees through continuous training and development programs
Taking the participation of employees in the management and prosperity of the organization
Developing a sense of job security in the mind of employees
Coordinating and motivating employees to perform their level best
Sustaining good working conditions
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OBJECTIVES OF MANAGEMENT: TOWARDS WORKFORCE
Providing goods and services at reasonable prices
Conserving environment and natural resources
Dealing fairly with suppliers, dealers, and competitors
Preserving ethical values of the society
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OBJECTIVES OF MANAGEMENT: TOWARDS SOCIETY
Classical School of Thought Believed in having a set of guidelines for managing a complex structure and
functioning of an organization. Main contributors were Henri Fayol, Max Weber, Mary Parker Follet, and
Chester. I. Barnard. Scientifi c School of Thought
Founded as a result of increasing need of productivity and focused on increasing worker’s effi ciency.
Main contributors were Frederick W. Taylor, Henry L. Gantt, and The Glibreth. Behavioral School of Thought
Emerged when the need for harmony at workplace and understanding human nature was realized.
Main contributors were Hawthrone Studies, Abraham Maslow and Douglas McGregor.
Modern Approach to Management Discussed the modern management theories that refine, extend, and combine
all the classical and neo-classical approaches to management. It includes quantitative approach to management, contingency approach to
management, and systems approach to management.
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EVOLUTION OF MANAGEMENT
Planning Organizing Staffing
Directing Controlling
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STEPS IN MANAGEMENT PROCESS
Planning Involves determining the goals and objectives that an organization aspires
to achieve within a given time period, developing alternatives, and selecting the best course of action among the available alternatives to accomplish the set objectives.
Organizing Refers to the arrangement of work, processes, authority, and resources and
employees in the right order, so that all organizational activities can take place in a defined and orderly manner.
Staffi ng Involves employing the right number of people at the right place with right
skills and abilities. Directing
Involves influencing, motivating, encouraging, counseling, mentoring, and guiding the employees to work toward the accomplishment of organizational goals and objectives.
Controlling Refers to the function through which the actual and desired output is
measured.
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MANAGEMENT PROCESS
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DISTINCTION BETWEEN MANAGEMENT AND ADMINISTRATION
Differences Administration Management
Nature of function Determinative or thinking Executive or doing
Type of Work Concerned with the determination of major objectives and policies
Concerned with the implementation of policies
Levels of Authority Top-level function Middle and lower-level
Influence Administrative decisions are influenced mainly by public opinion
Influenced by objectives and policies of the organization
Direction of Human Efforts
It is not directly concerned with the direction of human efforts
It is actively concerned with the direction of human efforts
Main Functions Involved Planning and controlling Directing and organizing
Skills Required Conceptual and human Technical and human
Usage Usage largely in government and public sector
Used mainly in business organizations
Top managers
• A group of individuals who are responsible for the whole management process of an organization.
Middle managers
• A group or individuals who are responsible for monitoring the performance of first line managers, also called supervisors.
Lower managers
• A group or individuals who are involved in the day-to-day activities of an organization and directly report to middle level managers.
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TYPES OF MANAGERS: ON THE BASIS OF ORGANIZATIONAL LEVELS
Functional Manager
• A manager, who is responsible for a particular function of an organization.
General Manager
• Managers, who are responsible for all the activities being carried out in all organizational functions.
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TYPES OF MANAGERS: ON THE BASIS OF SCOPE OF MANAGERS
Entrepreneur Style
• Managers who create something unique on the basis of their self-analysis without going through prescribed policies and procedures.
Conservative Style
• Managers who believe in classical school of management.
Scientific Style
• Managers, who believe in solving the problems in a logical way.
Professional Style
• Managers, who apply modern management techniques and devices.
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STYLES OF MANAGERS
Making timely and accurate decisions Coordinating with diff erent levels in the organization Administering and managing the performance of employees Analyzing the performance of subordinates and providing
feedback Striving to achieve business goals and departmental
objectives Contributing in various organizational activities, such as
selection, career management, and training and development of employees
Determining the compensation and reward systems Ensuring adherence to quality standards Following the rules and regulations of the organization Focusing on wealth maximization
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ROLES AND RESPONSIBILITIES OF MANAGERS
According to a research carried out by Robert L. Kats, there are three main types of skills that every manager must either possess or develop to carry out the management function.
These skills are as follows: Technical skills: Refer to know how about a specific field of
study Conceptual skills: Include abstract reasoning ability Human skills: Refer to the communication skills,
coordination skills, leadership skills, which are required to maintain sound interpersonal relationship in an organization
Managers have to continually update and sharpen their skills as per the need of the organizational environment.
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DEVELOPING MANAGERIAL SKILLS
Qualifi cation A manager must have both general and specifi c education in business administration.
Leadership The ability of a manger to infl uence employees to work in the desired manner.
Personal i ty A manager should be of sound health, attitude, and behavior.
Scientifi c Approach A manager should make fair and unbiased decisions.
Self-confi dence The quality of managers that enable them to be confi dent about their decisions.
Honesty A manager must be honest and possess good moral character, so that he/she can
positively infl uence the subordinates to follow the same traits. Technical Profi ciency
The technical knowledge of managers should be sound enough to understand the systems, procedures, and the methodology used in the organization for the production purpose.
Humanitar ian Approach Managers should treat their subordinates on the humanitarian ground, rather than
treating them on utilitarian ground.
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QUALITIES OF A GOOD MANAGER
Management can be defined as a universal phenomenon that involves making optimum utilization of available resources to achieve predetermined goals.
The functioning of today’s modern organizations is influenced by the effi ciency of managers to a large extent.
The main role of managers is to encourage, guide, and supervise employees to work toward the fulfi llment of organizational goals and objectives.
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RECAP