Management Unit-1 Intoduction

Management: An Overview
Syllabus
Organization
 Organization is a system which operates through
human activity.
 Organizations are very complex social formations,
their links can’t be described with only one theory.
 Organization Theories concerns 3 levels:
 Macro: cooperation among different organization
 Mezzo: structures of the organizations, and influencing
factors
 Micro: behavior of the members of the organizations,
motivation, conflict etc.
MANAGMENT
 M-Motivation
 A-Aim
 N-Nature
 A-Art
 G-Goal
 M-Matrix
 Evaluation
 N-Nuture
 T-Time
What is Management?
 Definition: Management is a process of
getting work done by others with aim of
achieving goals Effectively and Efficiency.
 Efficiency: getting the most output from
the least input
 Effectiveness: completing activities so that
the organization’s goals are attained.
What is Management?
 Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.
 To forecast,plan,organise and to evaluate.
 An art of getting things done through others
through and with the people in formally
organizational groups.
Management is…
Efficiency
Getting work
done through
others Effectiveness
Efficiency and Effectiveness in
Management
Efficiency (Means) Effectiveness
(Ends)
Resource Goal
Usage Attainment
Low Waste High Attainment
Management Strives for:

Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Efficiency and Effectiveness
Efficiency Effectiveness
 Efficiency = getting work  Effectiveness =
done with a minimum accomplish tasks that help
effort, expense, or waste fulfill organizational
 (use resources – people, objectives
money, raw materials–  (make the right decisions
wisely and cost-effectively) and successfully carry
them out to accomplish the
org. goal)
Manager = ?
Who managers are?
 Someone who coordinates and oversees the
work of other people in order to accomplish
organizational goals.
Core skills and their use in the
different levels
Managerial levels
Lower Middle Top
Conceptual skills
Human skills
Technical skills
Characteristics of Management
 Multi-Disciplinary
 Group Activity
 Factors of Production
 Social Process
 Human Fcator
 Interpersonal Relation
 Dynamic Function
 Profession
Characteristics of Management
 Situational
 Intangible Force
 Art as well as Science
What Companies Look for in
Managers
Technical Skills Human Skill
Conceptual Skill Design Skill

How many level of
managers can we
classify?
How to classify managers in
organizations?
Traditional Pyramid Form of Management Level
Top
Managers
Middle Managers
First-Line Managers
Non-Managerial
Employees
Functional R&D Marketing Finance Production HR
Areas
I. Lowest Level of Management
 First-line managers: Manage the work of
non-managerial employees who typically are
involve with producing the organization’s
products or servicing the organization’s
customer
 They are often called: Supervisor, shift

manager, district manager, department
manager, office manager
II. Middle Level of Management
 Middle managers: Manage work of first-line
managers
 They are often called: Regional manager,

project leader, store manager, division
manager
III. Upper Level of Management
 Top managers: are responsible for making
organization wide decisions and establishing
the plans and goals that affect the entire
organization.
 They are often called: Executive vice

president, president, managing director, chief
operating officer, chief executive officer
Functional Areas of Business
 R&D
 Marketing
 Finance
 Production
 HR
Functional Area of Business
 R&D = Research & Development
 New product design and development
 Marketing
Planning and executing the conception,
pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that
satisfy individual and organizational
objectives
 Finance
 Revenue, expenses, budget, financial records and
financial statements
 Production
 Extraction and cultivation (products are obtained
from nature or grown using natural resources)
 Processing (changing and improving the form of
product)
 Manufacturing (combines raw materials and
processes goods into finished products)
 HR = Human Resources
 People who work for a business/organization
 Involves in planning & staffing, performance
management, compensation & benefits, and
employee relations
Management Functions
Classical Updated
Management Functions Management Functions
Planning
Making Things Happen
Organizing
Meeting the Competition
Staffing
Organizing People,
Leading Projects, and Processes
Controlling
Management Functions
PLANNING ORGANIZING
MANAGER
LEADING CONTROLLING
1. PLANNING
 Identifying the broad objectives of
organization.
 Establish strategies for achieving those goals.
 Develop plans to integrate and coordinate
activities
 WHAT to do..
 HOW to do..
 WHERE is to done
 WHEN
 BY WHOM
Setting goals and plans (how to achieve them)

2. ORGANIZING
 Determine
 What tasks are to be done ?
 Who is to do them ?
 How tasks are to be grouped ?
 Who reports to whom ?
 Where decisions are to be made ?
Arrange tasks and other resources to accomplish

organization’s goals
3. STAFFING
 Motivate subordinates(lower positions)
 Help resolve group conflicts
 Influence individuals or teams as they work
 Select the most effective communication
channel
 Deal with employee behavior issues
Hire, train, motivate(lead) people

DIRECTING
 Leading and motivating employees to work
towards the fulfillment of the organizational
goals.
 Communication,Supervision,leadership,Coord
ination,Motivation
What you want your employees to do & to
do it in a best possible way..
4. CONTROLLING
 Monitor activities’ performance
 Compare actual performance with the set goals
 Evaluate activities’ performance whether things
are going as planed
 Correct any disturbance to get work back on
track and achieve the set goals
Ensure all activities are accomplished as

planned
Management Theory
 Pre-Classical
 Classical Approaches
 Frederick Taylor: Scientific Management (1886)
 Frank and Lillian Gilbreth: Time/motion studies (later 1800s)
 Henri Fayol: 14 Principles of Management (1880s-1890s)
 Max Weber : Bureaucracy (1920s)
 Behavioral Approaches
 The Hawthorne Experiment (1927)
 MacGregor’s Theory X and Theory Y (1960)
 Quantitative Approaches
 Contemporary Approaches
 Ouchi’s Theory Z (1981)
 Contingency Management
HENRI FAYOL’s
FOURTEEN PRINCIPLES OF MANAGEMENT
Henri Fayol
 First came up with the five basic functions of
management—Planning, Organizing, Staffing,
Directing, Communicating, and Controlling
 First wrote that management is a set of
principles which can be learned.
 Developed Fourteen Principles of
Management
HENRI FAYOL’s
1. Division of work & Specialization: Specializing encourages
continuous improvement in skills and the development of
improvements in methods.
2. Authority & Responsibility: The right to give orders and the power
to exact obedience.
3. Discipline. No slacking, bending of rules.
4. Unity of command: Each employee has one and only one
boss.
5. Unity of direction: A single mind generates a single plan and

all play their part in that plan.
HENRI FAYOL’s
6. Subordination of Individual Interests: When at work, only work things

should be pursued or thought about.
7. Remuneration: Employees receive fair payment for services, not what the
company can get away with.
8. Centralization & De-Centralization Consolidation of management functions.
Decisions are made from the top.
HENRI FAYOL’s
9. Scalar Chain (line of authority): Formal

chain of command running from top to bottom
of the organization, like military.
10. Order: All materials and personnel have a

prescribed place, and they must remain there.
HENRI FAYOL’s
11. Equity: Equality of treatment (but not necessarily identical

treatment)
12. Personnel Tenure: Limited turnover of personnel. Lifetime

employment for good workers.
13. Initiative:Thinking out a plan and do what it takes to make it
happen.
14. Esprit de corps: Harmony, cohesion among personnel.
Classical Approaches
 Frederick Taylor: Scientific Management
(1886)
 Frank and Lillian Gilbreth: Time and motion
studies (later 1800s)
 Henri Fayol: Fourteen Principles of
Management (1880s-1890s)
 Max Weber : Bureaucracy (1920s)
Frederick W. Taylor
 Developed Scientific Management
 Laid foundation for the study of management
 Key ideas:
 Science ,Not a rule of THUMB
 Harmony-Not Discord
 Cooperation-not Individualism
 Development of each and every person to his
greatest efficiency
 Standardisation & Simplification
Techniques for Scientific Management

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Management: An Overview

Low Waste High Attainment

Management Strives for:

Technical Skills Human Skill

Conceptual Skill Design Skill

 They are often called: Supervisor, shift

 They are often called: Regional manager,

 They are often called: Executive vice

Setting goals and plans (how to achieve them)

Arrange tasks and other resources to accomplish

Hire, train, motivate(lead) people

Ensure all activities are accomplished as

5. Unity of direction: A single mind generates a single plan and

6. Subordination of Individual Interests: When at work, only work things

9. Scalar Chain (line of authority): Formal

10. Order: All materials and personnel have a

11. Equity: Equality of treatment (but not necessarily identical

12. Personnel Tenure: Limited turnover of personnel. Lifetime

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