Management involves planning, organizing, staffing, directing and controlling organizational resources to achieve goals. The document discusses the meaning and functions of management, as well as management information systems, skills, and levels. It also covers topics such as organizational structure, motivation, planning, decision making, leadership and power.

1. MANAGEMENT
Ms. Romita De Silva

2. CONTENTS
 Meaning of management
 Functions and process of management
 Management information system
 Management skills
 Levels of management
 Planning and Decision making
 Leadership and power
 Organization structure
 Motivation

3. ORGANISATION
 Group of people works together to achieve a
common goals.
OR
 A social unit of people
that is structured and
managed to meet a need
or to pursue collective goals.

4. WHY MANAGEMENT

5. Definitions
 Management is the process of setting and
achieving goals of an organisation by effectively
utilizing human, finance, and material resources.

6. “Management is an attainment of an organizational
goals in an effective and efficient manner through
planning, organizing, directing, controlling the
organizational resources.”
Richard L Draft

7. FUNCTIONS OF MANAGEMENT

8. MANAGEMENT PROCESS
Input Transformation
process Output
Feed back
Organisation as a system receives input , transforms it through a
process for output and operate in an environment

9. INPUT
Inputs are the resources which help to operate the
organisation. It can be: ( 5 Ms in management)
1. Men
2. Money
3. Machinery
4. Method
5. Material

10. PROCESS (FUNCTIONS OF
MANAGEMENT)
 Planning
 Organizing
 Staffing
 Directing
 Controlling

11. OUTPUT
Outputs are the goals and objectives of an
organization.
 It includes:
 Profit
 Productivity
 Increased sales
 Quality
 Expansion
 Customer satisfaction

12. Management information
system (MIS)
MIS is a computer based information system which
is concerned with processing data into information.

13. MIS
Management Information System

14. Information
• The processed data that helps the management in
planning, controlling, operations and decision
making.

15. System
• Data is processed into information with the help
of a system.
• System is grouping of interdependent components
to accomplished a specific objective.

16. BENEFITS OF MIS
 Integrated information can be stored and
retrieved when necessary.
 Data can be easily accessed and analyse.
 Provide accurate data.
 Reduce operational cost.
 Help in quick decision making.

17. MANAGEMENT SKILLS
Management skills
Conceptual
skills
Human
skills
Technical
skills
Diagnostic
skills
Political
skills

18. CONCEPTUAL SKILL
Conceptual skill is the cognitive ability to see the
organization as a whole and the relationship among
its parts.
Managers need mental capacity to understand
 How various functions of the organization
complement one another and relates to its
environment.
 How changes in one part of the organization
affect the rest of the organization.

19. HUMAN SKILLS
The manager needs human skills as,
 Ability to communicate
 Understand
 Motivate both individuals and groups.

20. TECHNICAL SKILLS
Technical skills are skills necessary to accomplish
specialized activities e.g., engineering, computer
programming, and accounting.

21. DIAGNOSTIC SKILLS
 Diagnostic skills include the ability to determine,
by analysis and examination, the nature of a
particular condition.
 A manager should identify a problem in the
organization by studying its symptoms.

22. POLITICAL SKILLS
Political skill is the ability to acquire the power
necessary to reach objectives and to prevent others
from taking power.

23. CEO,MD
(Set & plan the long term goals,
objectives, product, market and make
decision etc)
Regional, plan manager
(Interprets plan and set action, report to
top management, Develop and
implement activities)
Team leader, shift boss, subordinate
(Implement plans, report to middle
management, coordinate activities)
Top
management
Middle management
Lower management
LEVELS OF MANAGEMENT

24. TOP LEVEL MANAGEMENT
 The top level management determines the
objectives, policies and plans of the organisation.
 They mostly the work of thinking, planning and
deciding. Therefore, they are also called as the
Administrators and the Brain of the organisation.
 They prepare long-term plans of the organisation
which are generally made for 5 to 20 years.

25. MIDDLE LEVEL MANAGEMENT
 They executes the policies and plans which are
made by the top level management and co-
ordinate the activities of all the departments.
 They spend more time in co-coordinating and
communicating.
 They prepare short-term plans of their
departments which are generally made for 1 to 5
years.

26. LOWER LEVEL MANAGEMENT
 The lower level management maintain a link with
the middle level about the decisions which are
taken by the top management and regularly report
and are directly responsible to the middle level
management.
 They spend more time in directing and
controlling.

28. PLANNING

29. PLANNING
 Planning means identifying and setting goals and
objectives, deciding how to achieve them and within what
time frame. It is the act of determining the organization's
goals and the means for achieving them.

30. It includes
vision, mission, goals and objectives.
 What do we need to achieve? (Goals and
objectives)
 How do we achieve it ? ( Strategies)
 Where are we now? ( SWOT)
 By when do we achieve it? ( Time frame)

31. PLANNING PROCESS
1.Establish Goals of
planning
2. Identify the planning
premises
3.Reviewing
Limitations
4.Deciding the
planning period
5.Formulation of policies
and strategies
6.Preparing operating
plans
7.Integration of
plans
8.Implement plan
PLANNING PROCESS

32. ESTABLISH GOALS / OBJECTIVES
 Plans are the means to
achieve certain objectives.
 Establishment of goals is
influenced by the values
and beliefs of executives,
mission of the
organization, and
resources, etc.
 Therefore, the objectives
must be clear, specific and
informative.

33. IDENTIFY THE PLANNING
PREMISES
 Before plans are prepared, the assumptions and
conditions underlying them must be clearly
defined. These assumptions are called planning
premises .
 Analysis the internal (controllable) and external
(uncontrollable) forces which is essential for
sound planning .

34. REVEWING LIMITATION
In practice, several limitations affect the ability of an
organization to achieve its objectives.
The key areas of Limitation are:
 Finance
 Human resources
 Materials
 Power and machinery
Therefore, strong and weak points of the enterprise should be
correctly assessed.

35. DECIDING THE PLANNING PERIOD
The planning period should be long enough to permit the
fulfillment of the commitments involved in a decision. This is
known as the principle of commitment.

36. FORMULATION OF POLICIES AND
STRATEGY
 After the goals are defined and planning premises are
identified, management can formulate policies and
strategies for the accomplishment of desired results.
 Alternative plans of action should be developed and
evaluated carefully so as to select the most appropriate
policy for the organization.

37. PREPARING OPERATING PLANS
 After the formulation of overall operating plans, the
derivative or supporting plans are prepared. Several
medium range and short-range plans are required to
implement policies and strategies.
 These plans consist of procedures, programmers,
schedules, budgets and rules. Such plans are required for
the implementation of basic plans.

38. INTEGRATION OF PLAN
 Different plans must be properly balanced so that they
support one another.
 Established plans should be reviewed periodically to
identify any shortcomings of the plans and also to modify
and change whenever necessary.

39. IMPLEMENTATION OF PLAN
Implement the selected best plan to achieve the goals and
objectives.
 It clarifies the roles and responsibilities of everyone in the
organization.
 It ensures that necessary tasks are assigned to the
appropriate staff members, and creates a time schedule to
get them accomplished.

40. DECISION MAKING

41. DECISION MAKING
Decision making can be defined as the process of
choosing the best alternative among possible
available alternatives (two or more alternatives) for
reaching objectives.

42. STEPS IN DECISION MAKING PROCESS
1. Recognition
Of Decision
Requirement
2.Gather
Relevant
Information
4.Selection Of
Alternatives
5.Implement
ation of
Chosen
Alternative
3.Developmen
t Of
Alternatives
6.Evaluation
And Feedback

43. IDENTIFICATION OF DECISION
REQUIREMENT
 The decision making process begins when
manager recognize or identify the requirement of
decision making.
 Therefore, it is necessary to identify the real
problems which help to take the correct decision
as well as to find the solutions of the problems.

44. GATHER RELEVANT INFORMATION
 All the manager want to take the best decision.
 Therefore, collect as many relevant information
before make decision.

45. DEVELOPMENT OF ALTERNATIVES
 Manager or Decision maker should think through,
investigate and identify several alternative
solutions among the listed available alternatives to
a single problem before making a quick decision.
 Therefore, analyze the strength and weakness, of
each alternative.

46. SELECTION OF ALTERNATIVES
After a manager has analyzed all the alternatives, he
or she much decide on the best one. The best
alternative is the one that produces the most
advantages and the fewest disadvantages.

47. IMPLEMENTATION OF CHOSEN
ALTERNATIVE
 Placed the chosen alternative into action.
 Positive results much follow decisions. Everyone
involve with the decision much know his / her role
in ensuring a successful outcome.

48. EVALUATION AND FEEDBACK
An evaluation system should provide feedback on
how well the decision is being implemented, what
are the results , and what adjustments are necessary
to get the results that were intended when the
solution was chosen.

49. Exercise
Patient Waiting List
• 31 year old male; brain surgeon at the height of his career; no
children
• 12 year old female; accomplished violinist; blind
• 40 year old male; teacher, 2 children
• 22 year old female; unmarried, 6 months pregnant
• 35 year old male; priest
• 17 year old female; waitress; high school dropout; supports/cares
for a brother who is severely disabled
• 38 year old female; AIDS researcher; no children

50. Exercise
• What is your decision?
• How did you arrive at your decision?
• Who provided leadership in your group?
• Is any disagreement on the taken decision by any
group member? Why?

51. ORGANIZING

52. ORGANIZING
Organizing is the process of arranging and
allocating work, authority, resources among an
organization’s members so that activities can be
accomplished as planned which helps to achieve the
organizational goals.

53. AUTHORITY
 Right to give orders, command ,direct, advise and
supervise the work
 Every managers possessed authority according to
his designated position.

54. TYPES OF AUTHORITY
LINE
AUTHORUTY
STAFF
AUTHORITY
FUNCTIONAL
AUTHORITY

55. Line authority
 Employees are directed with the help of line
authority.
 Relationship move from top to bottom.
 Hierarchical form of authority.
 Chain of command.
 Channel of communication.

56. Staff authority
 Staff authority is generated for the staff whose
main purpose is to assist, support, advise and
decrease the work burden of the line managers.
 Example: Marketing manager can support
production manager to forecast and generate
product or service.

57. Functional authority
 Functional authority is given to a line or staff
manager to do a specific job.
 The authority is taken back when the assigned
functional authority task is completed.

58. ORGANISATIONAL STRUCTURE
 Organizational structure means the way in which
positions, job tasks are formally divided, group
and coordinated. It is the formal arrangement of
jobs within an organisation.

59. TYPES OF ORGANIZATIONAL
STRUCTURES
 Simple structure
 Line structure
 Line and staff structure
 Functional structure
 Divisional structure

60. SIMPLE STRUCTURE
 A single person is at the
top and follow by small
group of employees under
him or her .
 This structure is common
in small business with few
workers.
Head
Employee 1 Employee 2 Employee 3

61. LINE ORGANISATIONAL
STRUCTURE
Chairman
G.M
Production
Manager
Marketing
Manager
Finance
Manager
Work Manager
Supervisor
Workers
Sales team
Accounting
Asst Mkg Mang.
Taxes

62.  The line structure model of organization is a
direct linear relationship of command and
deference between superiors and their
subordinates.
 The subordinates are directly responsible to their
superiors, and the superiors are in charge of giving
orders to their subordinates.

63. LINE AND STAFF ORGANISATIONAL
STRUCTURE
CEO
Marketing
manager
Finance
manager
Production
manager
Legal advisor
Accounting
Production
supervisor
Line Authority
Staff Authority

64. LINE AND STAFF ORGANISATIONAL
STRUCTURE
• It is a combination of the simple line organization
with further support from staff departments.
• Organizations begin as line-only, with line
managers having direct control over all activities.
Later, as organizations grow in size, add staff
positions.

65. FUNCTIONAL STRUCTURE
R & D Production Marketing Finance HR
CEO

66. FUNCTIONAL STRUCTURE
 In a functional organizational structure, a
business goes vertical hierarchy and horizontal
levels.
 Departmentation by functions .
 The departments are vertical under their
department head, but horizontal with other
divisions in the company.

67. DIVISIONAL STRUCTURE
CEO
Division product
(project) X
Division product
(project) Y
Division product
(project) Z
H.R Finance
Production
Marketing
H.R Finance H.R
Finance
Marketing Production Marketing Production

68. DIVISIONAL STRUCTURE
 Positions are grouped according to the similarity
of product, service, project.
 Fast response to environment change.
 Simplified coordination across the functions.
 Strong customer orientation.
 Broad training in management skills.

69. LEADERSHIP
BY

70. LEADERSHIP THEORETICAL
FOUNDATION
What is Leadership
“Leadership is the activity of influencing
people to strive willingly for group
objectives” - George Terry
Contd…

71. “Leadership is influencing people to follow in
the achievement of common goals”
- Knoontz & O’ Connel
Contd…

72. LEADER
A person who holds a dominant or
superior position within its field, and is able to
exercise a high degree of control or influence over
others.

73. LEADERSHIP BEHAVIOUR
STYLES
FREE-REIN
PARTICIPATIVE
AUTOCRATIC
AFFILIATIVE

74. AUTOCRATIC (AUTHORITARIAN)
STYLE
 Leader has complete command over their employees.
 This style gives employees clear direction and
motivates by influence and feedback on task
performance.
 Leader/Manager retain as much power & decision
making.
 Does not consult subordinates, nor allowed to give any
input.
 Subordinates obey orders.
 Structure set of punishment or reward.

75. AFFILIATIVE STYLE
 People first, task second
 Avoids conflict and emphasizes good
personal relationships between employees
 Motivates by trying to keep people happy
 Leader establishes warm interpersonal
relationships with the members

76. PARTICIPATIVE (DEMOCRATIC)
STYLE
 Encourages employee input in decision making
 Leader maintains the final decision making
ability
 Help to make better decision
 Motivates by rewarding team effort

77. Laissez-faire or Free-rein
leadership
 Free-rein leaders avoid power and responsibility.
 Very little guidance from leaders
 Leaders provide the tools and resources needed
 Leader gives full freedom to his subordinates to
act on their own.
 It is also known as delegative leadership

78. Employee – oriented leader
 Employee orientation or Blake and Mouton's
concern for people, is a trait of a leader or manager
who cares about the people who work for him.
 These leaders focus on the satisfaction,
motivation and the general well-being of the team
members.

79. Production – oriented leader
 These leaders focus on the tasks that need to be
performed in order to meet certain goals, or to
achieve a certain performance standard.
 Those leaders maintain strong discipline to task
completion and deadlines.

80. MANAGER
Manager is an individual who manages certain
group of people, to achieve the organization goals
and objectives.

81. DIFFERENCES BETWEEN MANAGER
AND LEADER
Manager Leader
 Do things right
 Short term
 Problem solving
 Manager give answers
 Manager focus on
maintaining
 Manager manage people
 Managers have employees
 Managers react to change
 Do the right things
 Long term
 Inspiring & Motivating
 Leader ask questions
 Leader focus on
developing
 Leader lead people
 Leaders win followers
 Leaders create change

82. POWER
Power is the potential ability to influence other
people. It refers to the capacity to affect the
behavior of the subordinate with the control of
resources.

83. BASES/ CATAGORIES OF POWER
1. Coercive power (punishment power)
2. Legitimate power
3. Referent power
4. Expert power
5. Reward power

84. Coercive power Power that is based on fear. E.g Fear for
suspension, demotion at work
Legitimate power A person receives power as a result of his/
her position in the hierarchy . E.g Manager
controls workers
Referent power Power based on interpersonal attraction,
admiration. People consider he/she is a
ideal person
Expert power Power based on specific skill or knowledge
Reward power Power based on rewards that are seen as
valuable

85. MOTIVATION

86. Definitions
• Motivation means a process of stimulating people to
action to accomplish desired goals.
W. G. Scott
Motivation is a general inspiration process which gets
the members of the team to pull their weight
effectively, to give their loyalty to the group, to carry
out properly the tasks that they have accepted and
generally to play an effective part in the job that the
group has undertaken”.
E.F.L. Breach

87. MASLOW’S NEED HIERARCHY
MOTIVATION THEORY

88. 1. Basic/ Physiological needs - air, food, drink,
shelter, warmth, sleep, etc.
2. Safety needs - protection from elements,
security, order, law, limits, stability, etc.
3. Social needs - work group, family, affection,
relationships, etc.
4. Esteem needs - self-esteem, achievement,
mastery, independence, status, dominance,
prestige, managerial responsibility, etc.
5. Self-Actualization needs - realizing personal
potential, self-fulfillment, seeking personal
growth and peak experiences.

89. MOTIVATION – HYGIENE/TWO FACTOR/
FREDERICK HERZBERG THEORY
1. Achievement
2. Recognition
3. Responsibility
4. Advancement
5. Growth
6. Job Challenge
1. Working
condition
2. Pay
3. Benefits
4. Supervision
5. Security
6. Organisation
policies
7. Relationship
Motivators Hygiene
(Job satisfaction) (Job dissatisfaction)

90. COMPARISION
MASLOW
 Hierarchy of needs
 Relevant for all workers
 It is a descriptive theory
 Financial reward can
motivate behaviour.
 All needs are motivators at
various times.
HERZBERG
 No Hierarchy
 Probably more relevant to
white collar employees
 It is a prescriptive theory.
 Financial reward cannot
motivate behaviour.
 Only some needs are
motivators.