Introduction

to

Management

Course: MBA

Subject: Introduction to Management

Unit: I

Unit 1Chapter:1- Concept of management:

• Development of management thoughts

• Levels of management

• Role of a manager

• Management hierarchy

What is Management ?

• Where this word is used?

• What is the meaning?

-Manage Men

- Old French ménagement.: ‘the art of conducting ,directing ‘

-Latin Manuagere : ‘to lead by the hand’

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DEFINITION:

• Management in all business areas andorganizational activities are the acts of gettingpeople together to accomplish desired goalsand objectives. Managementcomprises planning, organizing, staffing, leading or directing,and controlling an organization (a group of oneor more people or entities) or effort for thepurpose of accomplishing a goal.

• Mgt is all about PODSCORB

• “Management is an art of getting things done

through and with people”.

• “The process by which execution of given

purpose put into operation and supervise”.

• “Management is the art of securing maximum

results with the minimum of efforts so as to get

maximum prosperity and happiness for both

employer and employee”

Applicability of Mgt. in life and job

• Management in life:

- Daily planning, future planning

- Various occasions i.E, marriage, parties

- To achieve any goal i.e., 80% in FYBBA

• Management at job:

- proper authority and

responsibility

- achieving targets

- stress management

- measuring deviation

- smooth functioning

- co-ordination/ communication

- employee satisfaction

Scope of management :(Relation with other subjects/Sectors )

Marketing

• - Deciding promotional activities/ strategies/ setting targets – planning

• - Recruiting/training sales exe. – staffing

• - Giving targets by manager – Directing

• - Why targets are not achieved – Controlling

Finance

• - Preparing budget – Planning and controlling

• - Recruiting/training executives – staffing

• - Maximum result with min. efforts/resources

H.R.

• - How many employees will be required? -Planning

• - Recruiting/training executives – Staffing

• - Performance appraisal – Controlling

• - which task given to whom? - Organising

What Managers Do

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Managerial Activities

•Making decisions

•Allocating resources

•Directing activities of others to attain goals

Managers

Individuals who achieve goals through other people.

Where Managers Work

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Organization

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

The Four Functions of Management

Planning

Select goals & ways to

attain themOrganizing Assign responsibility for

tasks

Leading Use influence to

motivate

Controlling

Monitor activities &

make corrections

Planning

– defining goals and objectives

– deciding what type of activities the company will engage in

– determining the resources needed to achieve the organization’s goals & objectives.

Organizing

– Grouping of activities

– Conflict resolution.

– Authority and responsibility

– delegation

– Allocation of resources

Directing/ leading

– Leading for better work

– Stimulating to work more

– Giving motivation

– Specifying job responsibilities

– Creating good working conditions

– Giving guidance

– Showing path

Controlling Checking performance

Comparing actual targets with performance

Finding deviation

Taking corrective action

Monitoring performance of people & units.

• Identification of performance problems & actions to correct problems

2

Management hierarchy/ Levels of management

3

• Top level Posts/job title:

Chief Executive Officer (CEO), Chief Financial Officer (CFO), ChiefOperational Officer (COO), Chief Information Officer (CIO),Chairperson of the Board, President, Vice president, Corporate head

• Middle level Posts/job title:

General manager, Plant manager, Regional manager, and Divisional manager

• Lower level Posts/job title:

• Office manager, Shift supervisor, Department manager, Foreperson, Crew leader, Store manager

4

Skills at managerial levels

Skills at managerial levels

5

MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS

Plan. Organ. Lead. Control.

Top 28% 36% 22% 14%

Middle 18% 33% 36% 13%

Lower 15% 24% 51% 10%

Roles of a manger

– Set of expectations for one’s behavior

– Diverse activities --10 roles

Category Role

Informational Monitor

Disseminator

Spokesperson

Interpersonal Figurehead

Leader

Liaison

Decisional Entrepreneur

Disturbance handler

Resource allocator

negotiator

Management Roles1. INFORMATIONAL• Monitor- Seek and receive information, scan periodicals and reports,

maintain personal contacts

• Disseminator- Forward information to other organization members, send

memos and reports, make phone calls

• Spokesperson- Transmit information to outsiders through speeches,

reports, memos- ex. Mr. Ratan Tata announces about his new car in a press

conference

Management Roles2. INTERPERSONAL• Figurehead- Performs formal and symbolic duties such as greeting

visitors, signing legal documents.ex. College dean awarding degree to convocation ceremony• Leader- Direct and motivate subordinates, training, counseling, and

communicating with subordinates.- Liaison- Maintain information links both inside and outside

organization, use mail, phone calls, meetingsEx. Manager interacting inside and outside of the

organization.

3. DECISIONAL• Entrepreneur- Initiate improvement projects, identify new ideas, delegate idea

responsibility to others

• Disturbance Handler- Take corrective action during disputes or crises; resolve conflicts among

subordinates; adapt to environmental crises

• Resource Allocator- Decide who gets resources, scheduling, budgeting, setting priorities- Allocating money, time, material etc.

• Negotiator- Represent department during negotiation of union contracts, sales,

purchases, budgets, represent departmental interests

Approaches in Mgt. thought

• Classical - scientific

- bureaucratic by Max Weber (considered hierarchy of the decision making process)- administrative

• Behavioral- Human relation school- Hawthorne experiments(Western Electric Hawthorne plant in

Chicago) ,Maslow,McGregor, Chris,Elton Mayo, Mary Parker

• Quantitative and Modern- Contingency theory (based on situation)

- Theory Z (job security, job loyalty) (mix of US and Japanese)

Taylor and scientific management(Frederick Winslow Taylor (1856-1915)

• The concept emerged in early 1900s.

• “SM is concerned with knowing exactly thatyou want men to do and then see in that theydo it in the best and cheapest way”

• Taylor experimented and found –how humanbeings could be made more efficient bystandardizing the work and better method ofdoing the work.

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Elements of scientific management

1. Separation of planning and doing:

• Supervisor- Planning

• Worker – doing, operational work

2. Functional foremanship:

- work divided acc. To functions

2. Functional foremanship:

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3. job analysis:

- to find a best way of doing the things

- Time study

- Motion study

- Fatigue study

4. Standardization:- Standardization is a means of achieving

economics of production.• It seems to ensure –

– The line of product is restricted to predeterminedtype, form, design, size, weight, quality. Etc

– There is manufacture of identical parts andcomponents.

– Quality & standards have been maintained.– Standard of performance are established for workers

at all levels.

5. Scientific selection and training of workers.

- based on education, exp, aptitude, physical strength

- training to be more effective and efficient

6. Financial incentives- Piece rate system

7. Economy & Profit

-cost estimation and cost control

8. Mental revolution

- co-operation and co-ordination

H.Fayol’s Administrative Management (29 July 1841,

(29 July 1841 ,19 November 1925)

• French industrialist

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Fayol’s 14 principles of management

1. Division of work2. Unity of Command3. Order4. Equity5. Initiative6. Esprit de corps7. Stability of tenure8. Scalar chain9. Centralization10. Remuneration of

employees

11. Subordination of individual interest to general interest

12. Unity of direction13. Discipline14. Authority and

Responsibility

Fayol’s 14 principles of MGT.

1. Unity of Command:instructions/orders from only one boss. Ex. peon

Fayol’s 14 principles of MGT.

2. Division of Work:job /work is divided into specialized/small tasksi.e., departments

Fayol’s 14 principles of MGT.3. Order:• Arrangement of things and people

• All materials and personnel have a prescribed place, and they must remain there.

Fayol’s 14 principles of MGT.

4. Initiative:• Workers should be encouraged to develop

and carry out their plans for improvements

Fayol’s 14 principles of MGT.

5. Equity:• Fairness to all employees

• No favoritism

Fayol’s 14 principles of MGT.

6. Authority and Responsibility: “Authority is the right

to give orders & obtain obedience, and responsibility is

the effect of authority”

-should be divided properly

ex. Sales exe., Vodafone cust. care

7. Discipline: Rules and regulations

8. Unity of Direction: same objective for all with coordinated efforts

9. Subordination of Individual Interest to General Interest:

10. Remuneration of Employees: Employees receivefair payment for services

11. Centralization and Decentralization: ex. GTU, Panchayat

12. Scalar Chain: Formal chain of command running from top to bottom of the organization, like military

13. Stability of Personnel: Limited turnover of

personnel. Lifetime employment for good workers.

14. Espirit De Corps: team spirit of unity and harmony

among employees

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References/Sources 1. http://4.bp.blogspot.com/_16N-uuTISQo/TRO-JllSdCI/AAAAAAAAaDM/ALK06S44Yvc/s640/ghg.jpg

2. http://www.shareyouressays.com/wp-content/uploads/hindi/4-Different-Levels-of-Management-in-the-_6FF4/clip_image002.jpg

3. http://2.bp.blogspot.com/-wHomNVBHk4c/U7izx8E955I/AAAAAAAAAVY/_X__AEQRD1A/s1600/Levels+and+skills.png

4. http://sites.psu.edu/leadership/wp-content/uploads/sites/8069/2012/09/x012.jpg

5. http://3.bp.blogspot.com/-fgAqyPP8sjM/ToeuLD83RqI/AAAAAAAABns/4T6FG1COba4/s1600/frederick_taylor.gif

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7. http://www.managementstudyguide.com/images/functional_foreman.jpg

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9. http://www.managementstudyguide.com/images/functional_foreman.jpg

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