Unit-1 Introduction to ManagementScience , Theory & Practice, Environment of Management, Managers and Entrepreneurs , Managerial Roles & Skills , Managers Social & Ethical Responsibilities

Introduction With the increasing of complexities , managing

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business is becoming more and more difficult. Management is not only essential to business concerns but also essential to Banks , Schools, Colleges, Hospitals etc. Management applies to any kind of organization. Management is all about maximizing results with the utilization of minimum resources. The need of existence of management has increased tremendously. Business objectives can be achieved with the cooperative efforts of several individuals.

Management is the Process of getting things done Effectively and Efficiently, through and with other people.3

Efficiency and Effectiveness in ManagementEfficiency (Means) Effectiveness (Ends)

Resource Usage

Goal Attainment

Low Waste

High Attainment

Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness)

GJ - IMT

Ashpillai

Meaning & Definition Management

has been defined by different people in several ways such as plan of action, the art of maximizing efficiency, a social process, method of getting things done through the efforts of other people, direction of action by a co-operative group towards a common goal, art and science of decisionmaking and executive leadership, etc.

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Meaning & Definition Management is the coordination of all resources

through the processes of planning, organizing, directing and controlling , motivating in order to attain the specific objectives. Management

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is process of designing and maintaining an environment in which individuals work together in group efficiently accomplishing selected aims and objectives. Managers carry out various managerial functions such as Planning Organizing Staffing

PlanningPlanning includes defining goals, establishing strategy, and developing plans to coordinates activities. The process of planning consists of Establishing objectives Making forecasts Formulating policies, Procedures and rules Drawing programmes, schedules, budgets, etc.

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OrganizingOrganizing includes what tasks are to be done , who is going to perform them , how the tasks are to be grouped, who reports to whom, and where decisions are to be made. The process of organizing consists of Identifying the activities necessary to achieve the 8

objectives Grouping the activities into manageable units Assigning duties or tasks to appropriate individuals Delegating necessary authority to individuals and fixing responsibilities for results Defining authority-responsibility relationships among individuals

StaffingStaffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function. It is concerned with human resources. Staffing consists of the following activities: Manpower Planning, i.e., determining the quantity and quality of employees required in organization Recruitment, Selection and Placement Training and Development Appraisal, Promotion and Transfer 9 Employee Remuneration, etc.

DirectingDirecting is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives. Directing is concerned with the execution of plans. Directing is also known as management in action. It involves: Influencing, guiding and motivating the subordinates for the achievement of organizational objectives.

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Controlling Controlling is a four-step process of establishing

performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary. The essence of control is in determining whether the activity is achieving the desired results.

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Controlling

The process of control consists of the following steps: Setting standards or norms for the desired performance Measuring the actual performance Interpreting and comparing actual performance with the set standards Analyzing deviations to fix responsibility Taking corrective actions

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Summary Planning: It includes defining goals, establishing

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strategy, and developing plans to coordinates activities. Organizing: It includes what tasks are to be done , who is to do them , how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Leading : It includes motivating employees, directing the activities of others, selecting the most effective communication channel , and resolving conflicts. Controlling: The process of monitoring performance, comparing it with goals, and

Definitions F.W. Taylor - Art of knowing what you want to do and then

seeing that it is done the best and cheapest way. organize, to command, to co-ordinate and to control. its own skills, its own tools and its own techniques.

Henry Fayol To Manage is to forecast, to plan, to Peter F. Drucker Management is work and as such it has

Management is the art of getting things done through and

with people

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Concept of Management from different viewpoints: Productivity : Art of securing optimum productivity Human Relations : Art of getting things done through people Decision Making : Art of correct decision making Leadership : Art of executive leadership Coordination: Manager is what a manager does

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Nature of Management Multidisciplinary

Dynamic Relative Principles Universal principles but adaptive interpretation A science and an art A profession

Management Management focuses on the entire organization from

both a short and a long-term perspective. Management is the managerial process of forming a strategic vision, setting objectives, crafting a strategy and then implementing and executing the strategy. Management goes beyond the organizations internal

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operations to include the industry and the general environment. The key emphasis is on issues related to environmental scanning and industry analysis, appraisal of current and future competitors, assessment of core competencies, strategic control and the effective allocation of organizational

Art and Science Management has its rules, principles and laws

having universal applicability. But the result of all managerial policies always depends upon the personal skill of the manager. Besides being a science, it very much takes the form of an art. Management is both art and science. It is the art of making people more effective than they would have been without you. The science is in how you do that. With the growth and development in the principles and techniques of management, it is now very much becoming a profession.18

Management as Science As a science: Science is a systematized body

of knowledge based on certain principles, capable of general application. This knowledge is obtained through the process of observation, experimentation and testing. Key elements are ;Systematic body of knowledge, universal principles, scientific experiments, cause-andeffect relationship, validity and predictability.

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Management as Science Like other sciences Management too has a set

of internal hypotheses, though approximate. Measurement and definitions are exact in science, in Management exact they vary. Cause effect relationships Empirical testing and replication of the results is the hallmark of science. In Management this is lacking.

Management as an Art Management

involves application of skill like in any other art form.

Management is creative. Creativity in

application of the principles of mgt and carrying out the processes differentiates a great manager from an ordinary one. Management is personalized. There is

no single best way to manage.

Management as a Profession As

a profession: Specialized body of knowledge, formal education and training, service motive, representative association, and code of conduct. It is an (a) occupation for which specialized knowledge, skills and training are required and (b) these skills are used for larger interests of the society and (c) the success of these skills is not measured in monetary terms always.

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Is Management Universal??NO It is situational &

YEAH It is a process

circumstantial Fundamentals, It is culture bound techniques and practices are similar. Depends on objectives of the organization Every org. and every manager has a different philosophy

Management and Administration

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Management & AdministrationThree Views Admin & Management are same: Same principles, functions and objectives. So is most popular. Admin

is Above Management: formulation and decision making.

Policy

Admin is part of Management: Management

is the wider discipline and admin is just a part of it.

Points of Distinction 1. 2. 3. 4.Nature Type of Work

AdministrationA determinative or thinking function Concerned with the determination of major objectives and policies A top-level function Administrative decisions are influenced mainly by public opinion and other outside forces

ManagementAn executive or doing function Concerned with the implementation of policies Largely a middle and lower level function Managerial decisions are influenced mainly by objectives and policies of the organization

Level of Authority Influence

5.6. 7. 8. 9.26

Direction of Human EffortsMain Functions Skills Required Usage Illustrations

Not directly concerned with direction of human effortsPlanning and control are the main functions Conceptual and human skills Used largely in government and public sector Minister, Commander, Commissioner, Registrar, Vicechancellor, Governor, etc

Actively concerned with direction of human efforts in the execution of plansDirecting and organizing are the main functions Technical and human skills Used mainly in business organizations Managing Director, General Manager, Sales Manager, Branch manager, etc.

Management & Administration

Board of Directors CEO GMAdministration

SuperintendentSupervisors

Management

Importance of Management Maximum Production at Minimum Cost

Coordination of human efforts & Team Spirit Optimum Utilization of Resources : 8 M in business- man,

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money, materials, machines, methods, motivation, markets and management. Management has control over all other Ms. Management meet the Challenge of Change , Maintains dynamic equilibrium Sound Organization Structure Management directs the organization Innovation Stability

Levels of Management It refers to a line of demarcation between various

managerial positions. In every organization there is a chain of superiors and subordinates from the highest level to the lowest. This chain is known as chain of command .Top Level Management

Middle Level Management

Front Line Management29

Top Level Managers Top Level Managers are responsible for

Laying down the overall objectives and broad policies of the enterprise. Organizing the business into various departments and divisions. Provides guidance and direction. Coordinating the work of different departments. Monitoring business environments Maintaining good public relations30

Middle Level ManagersMiddle Level Managers are responsible for Setting objectives consistent with top management goals, planning, strategies, etc. Issues detailed instructions. Coordinating and linking groups, departments, and divisions. Monitoring and managing the performance of subunits and managers who report to them. Implementing the changes or strategies generated by top managers 31

First-Line/Supervisory ManagersFirst-Line Managers Responsible for Managing the performance of entry-level employees Teaching entry-level employees how to do their jobs Making schedules and operating plans based on middle managements intermediate-range plans Team Leaders are Responsible for.. Facilitating team performance Managing external relationships

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Environment of Management All organizations draw the inputs from the

environment, convert the inputs into outputs and send them back to the environment. The environment of the business consists of two componentsinternal(systems inside the organization such as, technology, structure, processes and people) and external environment. The external environment affecting the organization is divided into two major categories Direct action and indirect 33 action environment.

Environment of Managementand are affected by the organizations operations. These factors would include suppliers, labor unions, the various laws of land, customers and competitions. The indirect environment consists of those factors that may not have an immediate, direct effect on operations but nevertheless influence the activities of the firm. These include such as technology, socio-cultural and political factors, general economic conditions etc. The managers success lies in understanding the trend in the environment. The trends contain 34 signals and give clues about the potential Direct consists of those factors that directly affect

Managers & Entrepreneurs

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Managers & Entrepreneurs An

entrepreneur is a person who establishes a business unit and utilizes the other factors of production like land , labor & capital with a aim to earn profit. The manager is a person who utilizes the factors of production like land , labor & capital under a system i.e Organization on behalf of the entrepreneur.36

Points of Distinction1.Innovation

Entrepreneur

Manager

Finds new ways to do status quo

Maintains the status quo

2.3. 4. 5.

Type of PerformancePolicy Uncertainty Risks

Increases the productivityFrame the policy Converts uncertainty into certainty Aviods riskd

Achieves the production targetsImplements the policy Encounters uncertainty Minimizes risks

6.7. 8. 9.37

SkillsGoals Status Reward

Creative ThinkingDetermines the Goals Self-employed Increased Profit

Better Human RelationsAchieves the Goals Salaried Person Bonus

What are Managerial Roles ?Managers work for Definite Objectives with the help of their Administrative Skills(Planning, Organizing, Motivating, Directing, Controlling , Coordinating) and Technical Skills (Production, Marketing, HR, Finance etc.) to satisfy the interest of business, employees , consumers and community at large.

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What are Managerial Roles ?

Interpersonal - Involve people and duties that are ceremonial /official and symbolic in nature collecting, and disseminating information making choices

Informational - Receiving,

Decisional - Revolve aroundGJ - IMT Ashpillai

Mintzbergs Managerial Roles

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Management Skills

Technical - knowledge of and proficiency in a certain specialized field

Human - ability to work well with

other people both individually and in a group Conceptual - ability to think and toGJ - IMT

conceptualize about abstract andAshpillai

Skills Needed at Different Management Levels

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Systems

System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole

Closed system - not influenced by

and do not environment

interact

with

their

Open system - dramatically interact

with their environmentGJ - IMT Ashpillai

The Organization As An Open SystemEnvironment

System

Inputs Raw materials Human resources Capital Technology Information

Transformation Employees work activities Management activities Technology and operations methods Feedback

Outputs Products and services Financial results Information Human results

EnvironmentGJ - IMT Ashpillai

Universal Need for Management

GJ - IMT

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Managements Connection to Other Fields Anthropology - work on cultures and social

environments Economics - concern about the allocation and distribution of scarce resources Philosophy - examines the nature of things Political Science - effect of political environment on individuals and groups Psychology - seeks to measure, explain, and change human behavior Sociology - studies people in relation to their fellow human beings

The External EnvironmentGeneral Environment

Suppliers

Customers

The Organization Public Pressure Groups Competitors

Specific Environment

Environmental Uncertainty Matrix

Organizational Stakeholders

What Is Social Responsibility? Classical View - managements

only social responsibility is to maximize profits Socioeconomic

View businesses are not just economic institutions, they have a responsibility towards protecting and creating social welfare

What Is Social Responsibility? Social Responsibility - a businesss obligation to

pursue long-term goals that help society goes beyond legal and economic requirements views business as a moral agent Social Obligation - obligation of a business to meet its economic and legal responsibilities pursues social goals only when they contribute to economic goals Social Responsiveness - capacity of a firm to adapt to changing societal conditions tries to satisfy social needs in line with social norms

Levels of Social Involvement

Social Responsibility

Social Responsiveness

Social Obligation

To Whom is Management Responsible?Lesser Social Responsibility Greater

Stage 1

Stage 2

Stage 3

Stage 4

Owners and Management

Employees

Constituents in the Specific Environment

Broader Society

Managers Social & Ethical Responsibilities

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Towards the CustomersEvery manager in order to serve the customers in an effective way should restrain from: Making misleading advertisements aimed at deceiving the consumer Giving wrong or false information about the ingredients, quality, origin, etc., of the product. Entering into collusive agreements with other firms to exploit the customers Making false claims of being an authorized dealer/importer of certain goods; and Giving misleading names to the products, etc.55

Towards the Employees Proper election, training and promotion

Recognition of the value of human resource Maintaining cordial relations with employees Recognition and encouragement of constructive 56

unionism Fair wage in relation to the cost of living Better working conditions Initiating appropriate measures for the development of human resource and Increase in productivity and efficiency by recognition of merit, by providing opportunities for creative talent and incentives.

Towards the Shareholders Security to their funds

Fair rate of return on their investment Correct information about the operations of the

company Proper appreciation of the value of their investment in the company by identifying new opportunities that contributes for the growth of business.

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Towards the Creditors/Suppliers Realizing the importance of maintaining good

business relations with them Meeting the payment obligations timely Providing true and correct picture about the financial aspects of the company Helping them grow along with the growth of the company, etc.

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Towards Government Business enterprises should act like law-abiding

citizens Taxes and other duties should be paid timely and honestly Compliance with the rules and regulations as stipulated by various laws of the land, and Supplementing the governments efforts in the developmental activities, etc.

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Towards the Society at Large Properly deciding the product policies in line with

the national priorities Preventing the creation of monopolies Ensuring hygienic disposal of smoke and waste and other effluents Providing to the community accurate information about its working; Preserving the national resources of the nation by not indulging in reckless exploitation of the resources, etc.

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Case Study

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Case Study: Function of ManagementThe Personal Manager of Bharti Steels, an engineering unit based at Jaipur, has been banging the executive conference table of the company for some months asserting that the true function of management is to take care of the needs of the staff and let the staff take care of the goals of the organization. The Marketing Manager has, on the other hand, been expressing the view that the real function of management is to take care of the market and staff must fall in line with the objectives, plans and priorities of the company. Question Which of these views is correct and why?

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The End

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