Module 1

INTRODUCTION TO MANAGEMENT
DEFINITION OF MANAGEMENT
Management is the process of designing and maintaining an
environment in which individual, working together in groups,
efficiently accomplishes stated aims.
It is defined as the art of getting things done through people
both efficiently and effectively.
Efficiency
- ability to do things in the right way
Effectiveness - ability to do right things.
According to: - Peter. F. Drucker:
Management makes work productive and the worker achieving.
One true and meet important resource in the organization is the
human resource. Managers must work effectively with their subordinate to achieve maximum performance.
According to F.W. TaylorManagement is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way
According to Lawrence. A. Appley_
Management is the accomplishment of results through efforts of
other people

NATURE OF MANAGEMENT.
Following are the characteristics of nature of management.
1. It is the art of getting things done through people both
efficiently and effectively.
2. It is a science, a systematic body of knowledge, pertaining to
a field of activity having concepts, hypotheses, theories,
equipments, principles and techniques.
3. It is the art of application of skills to achieve desired results.
4. It is the art of application of skills to achieve desired results.
5. It is a process consisting of planning, organizing, staffing,
leading (or influencing) or directing and controlling functions
performed to determine and accomplish the objectives of an
organization, by the use of people and resources.
6. It refers to a social group of people, who direct the activities
of other people towards common objective.
7. It is a profession which demands artistic application of
scientific theories for efficient functioning of any
organization.
8. Management is concerned with the attitude of mind to
problems, risks, opportunities and changes and also the
ability to forces, adapt, innovate, motivate, guide and inspire.
9. Management makes work productive and the worker
achieving.

Importance or purpose of Management:

1. Management isa) An economic resource and a critical element in the
economic growth of a country.
b) Essential in all organizational efforts.
c) Dynamic life giving element of any organization.
d) A system authority.
e) A class or elite.
f) Concerned with technical skill, human skills, concept
ional skills, analytical skills and decision making
activities.
2. Management aims to create surplus.
3. Managerial resources determines productively and
profitability of an organization.
4. Management is considered as a means to an end and not an
end by itself.

Functions of Management:
1. Planning:
A management function that involves the process of
defining goals, establishing strategies for achieving those
goals and developing plans to integrate and co-ordinate
activities.
2. Organizing:
The process of presenting formal relationships among
people and resources to accomplish goals, or the process of
grouping activities and resources in a logical or systematic
manner.
3. Staffing:
The process of ensuring that the organization has
qualified employed available at all levels to meet its short
and long term objectives or goals.
4. Directing:
The process of talking a person what to do. It is better
known as leading or influencing.
5. Leading:
Influencing others to do what the leader wants get
members of the organization to work together to achieve the
organization goals or objectives.
Influencing: The process determining or affecting the
behavior of others.

6. Coordinating:
The process of transferring information ideas, understanding
or forcing among people.
The process of ensuring that process who
perform inter
dependent activities work together in a way that contributes
to the achievement of overall objectives of goals.
7. Motivating:
It is the willingness to put forth effort in prevent of
organizational objectives. It is the force that energies
behavior gives direction to behavior and underlies the
tendency to persist.
8. Reporting:
The process of transferring information to people in the
higher level in the management hierarchy (from ordinate to
superior)
9. Controlling:
The process of comparing actual performance with standards
and taking any necessary corrective action.
10. Budgeting:
The process of preparing a statement of planned allocation
of resource expressed in financial or numerical terms.
11.Decision making:
The process of generating and evaluating alternatives and
making chains among them.

Management: Science or Art or Profession.

Managing like all other practices whether medicine music
composition, engineering, accountancy or even baseball is an art it
is know how. It is doing thing in light of the realities of a situation.
Yet managers can work better by using the organized knowledge
about management it is knowledge that constitutes a science. Thus,
managing as practice is an art, organized knowledge underlying the
practice.
However, it is felt that management is more an art than science
becausea. It involves application of know how and skills.
b. It directed towards achievement of connect results.
c. It deals with a variety of human being.
d. It is evasive in nature.
e. It is personalized which means there no one is that way
of managing for everybody.

Management as a ProfessionA profession is based on a systematic body of

knowledge which enquires formal training for example profession
of doctors, engineers, lawyers, and the like requires formal training
and a set of code of ethics for practice likewise Management is
also a profession and management practice requires formal training
and code of ethics.
In conclusion, we can say that management is a profession which
demands artistic application of its scientific theories of the efficient
functioning of any organization.

Systems approach to operational management.

The system approach other that organization must be viewed as
total system with such part linked to every other part.
Concept:
1. System: is an organization of things it is goal oriented organ
ion composed of part that are inter related in such a way that the
total system is greater than the sum of its parts
2. Synergy: It is the co-operative action of two or more person
working together to accomplish more than what they could
working separately.
3. Systems approach: The viewing of an organizations or entity
as an arrangement of inter related parts that interact in ways that
can be specified and to some extent predicted.
4. Open system: System that affects and is affected by outside
events (external environment)
5. Closed system: A system that neither affects nor is affected by
outside events( external environment)
6. Super Ordinate system: A larger system in which every system
can be seen as a part.

Known as administrative management and he is known as

father of administrative management.

Fayols principles of management are

1. Division of work:
Work specialization increase output by making employees
more efficient.
2. Authority and responsibility:
Authority is the right to give and the power to extract
obedience. Whenever authority is exercised, responsibility
exists.
3. Discipline:
Employees must obey and respect the rules that govern the
organization. Discipline is absolutely necessary for running
the organization smoothly
4. Unity of command:
An employee should receive order from one superior only
5. Unity of direction:
Activities aimed at the same objective should be organized so
that there is one plan and one person in charge.
6. Subordination of individual interest to general interest:
The interest of one employees or group should not prevail
over the goal of the organization
7. Remuneration:
Compensation should be fair to both the employee and
employer.
8. Centralization:
The proper amount of centralization or de-centralization of
authority depends on the situation.
9. Scalar chain:
The hierarchical chain of authority from top to bottom of an
organization.

10.
Authority:
Giving orders
11.
Equity:
Employees should be treated with kindness and justice
without any bias.
12.
Stability of tenure:
The employee turnover from job should be prevented
13.
Initiative:
Manager should encourage and develop subordinates initiative
to the fullest
14.
Espirit de corps:
Unity

FACTORS RESPONSIBLE FOR INCREASING

SIGNIFICANCE OF MANAGEMENT
1) DEFINIG THE FIRM:
The firm is an integration of markets and products, having basic
socio-economic purposes and long range objectives
2) ESTABLISHING SYSTEMS GOALS:
The goals of a business system include profit, market share, return on
investment and firms external environment.
3) CREATING FORMAL SUB SYSTEMS:
Subsystems are work groups, committees, task forces etc.
4) SYSTEM INTEGRATION:
System integration enables management to maintain some degrees of
consistency between the demands of the various sub systems. it
consists of two activities
Integration of system hierarchy
Integration of system models

Systems Approach To Management

Just as the human body is formed of different interdependent systems
so is also an organization. A change in any of the systems may affect all or
some other systems to varying degrees. This ripple effect influences the
effectiveness of the organization.
To understand the interactions and the consequences between the
various systems of the organization the managers should possess the ability
to get a perspective view. Treating an organization as formed of different
systems is known as systems approach. Systems theory was first applied in
the fields of science and engineering.
It also has found wide acceptance in the practice of management. A
system can be defined as essentially a set or assemblage of things
interconnected or independent, so as to form a complex unity. Cars,
computers, television and radio sets are some of the examples of systems.
A system is a set of interrelated but separate parts working towards a
common purpose. The arrangement of elements must be orderly and there
must be proper communication facilitating interaction between the elements
and finally this interaction should lead to achieve a common goal.
There are two major types of systems: closed and open. A closed
system has definite boundaries; it operates relatively independently and is
not affected by the environment outside the system. Stand by the generator is
an example of closed system. With its different systems working together in
perfect harmony the generator continues to supply power as long as it has
sufficient fuel supply without much regard to the external environment.
An open system as the name implies, is characterized by its
interaction with the external environment. Clearly, any business or
organization must be described by an open-system model that includes
interactions between the enterprise and its external environment.

External
Environment

Input:
Human
Capital
Materials

Output:
Transformation

Products
Services

Feedback

Key concepts of systems approach

Subsystem: Subsystems are those parts which make the whole system. Each
system in turn may be of a still larger system. Thus, a department is a
subsystem of a factory, which is a subsystem of a firm, which is a subsystem
of a industry, which is a subsystem of a national economy, which is a
subsystem of the world economic system.
Synergy: Synergy is a situation which the whole is greater than the sum of
its parts. In organizational terms, synergy means, that departments that
interact co-operatively are more productive than they would be, if they
operated in isolation.
System Boundary: It is the boundary that separates each system from its
environment. It is rig in a closed system while flexible in an open system.

Flows: A system has flows of information, materials and energy. These enter
the system from the environment as inputs (like raw materials), undergo
transformation process within the system (like production process) and exist
in the system as outputs (like production process) and exist in the system as
outputs (like products/services).
Feedback: It is the part of the system control in which the results of action
are returned to the individual, allowing work procedures to be analyzed and
corrected.
Systems approach helps the dynamic and interrelated nature of the
organizations to plan for actions and anticipate consequences and mutual
effects. It helps the general managers too maintain balance among various
subsystems and the organization. Thus a major contribution of the systems
approach results from its strong emphasis on the interrelations or mutuality
of various subsystems of the organization. Treatment of the organization as
an open system is another contribution to the systems approach.
Based on the systems approach, Talcot Parsons has suggested three
meaningful levels in the hierarchy of complex organizations: Technical,
Organizational, and Institutional.
The Technical Level is concerned with the actual production and
distribution of products and services. It also includes activities like
research and development, operation research and accounting.
The Organizational Level coordinates and integrates work
performance at the technical level. It is concerned with obtaining the
continued flow of inputs into the system and maintaining the markets
for the outputs from the system.
The Institutional Level is concerned wit relating activities of the
organization to environmental system. It involves relating the
organization to the need of the environment.

MANAGERIAL ROLES
MANAGER:
A manager is one, who contributes to the organizational goals
indirectly, by directing the efforts of others and not by performing the task
himself.
Role is defined as the pattern of behavior, which is, defined for different
position. it depend on formal authority.
Managerial roles are under 3 types.
1.INTERPERSONAL ROLES:
a) Figure head: performs symbolic duties of a legal head or social
nature.
b) Leader: builds relationship with subordinates and communicate
with, motivates and coach them.
c) Liaison: maintains networks of contacts outside work unit that
provide help and information.
2.INFORMATION ROLES:
a) Monitor; seeks internal and external information about issues
that can affect organization.
b) disseminator: transmits information internally, that is obtained
from either internal or external sources.
c) Spokesperson: transmits information about organization to
outsiders.
3.DECISIONAL ROLES:

a) Entrepreneur: acts as a initiator, designer and

encourager of change and innovation.
b) Disturbance handlers: takes corrective action when
organization faces unexpected major difficulties.
c) Resource allocation: distributes resources of all types,
including time, finding equipment and human resources.
d) Negotiator: represent the organization in major
negotiations affecting the managers areas of
responsibility.

LEVELS OF MANAGEMENT:
It refers to a line of demarcation between various managerial positions
in an organization. there are three levels of management, namelya. Top level management:
The managers responsible for the organization ,they establish
operating policies and guide the organizations interaction with its
environments . it consists of top manager are chief executive
officer, president and vice president.
b. Middle level management:
Manger in the mid range of organizational hierarchy they are
responsible for other managers and some times for some operating
employs; they also report to more senior managers. Middle managers
principle responsibilities are to direct the activities that implement
their organization policies and to balance the demands of their
managers with the capacities of their employers.
c. Low level management:
Managers who are responsible for the work of operating employs only
and do not supervise other managers ,they are the lowest level of
managers in the organizational hierarchy low level managers are
called as supervisors.

Functions of managers
Manager as a planner
manager must be imaginative to plan ahead and create
new ideas
manager must have capability of managing people
his function is to set objectives and to adopt corrective
measures.
manager must take necessary measures to train workers
manager must make arrangement for incentives to his
workers
he must create proper environment for work
discipline among people is essential

 manager must function as a leader