introduction to management

18-Feb-15Prepared by- Binu Samuel M com(Finance), Mcom(marketing), B.Ed 1

INTRODUCTION TO
MANAGEMENT
18-Feb-15
Prepared by- Binu Samuel M com(Finance), Mcom(marketing), B.Ed
2

Different Meaning
Management is an art of getting
things done
Management is a process of
planning, organizing, staffing,
directing and controlling
Management is a distinct activity
of any organization
Management is a discipline
which represents a body of
knowledge.
Management denotes a group of

Definition
‘Management is a distinct
process consisting of
planning, organizing,
actuating and controlling
performed to determine
and accomplish the
objectives by the use of
people and resources’
- George .R. Terry

Management is
principally the task of
planning,
coordinating,
motivating and
controlling the efforts
of others towards a
specific objective

Features of management
1.Management is getting
things done
2.Management is an activity
3.Management is purposeful
4.Management is a process
5.Management is a profession
6.management involves
decision making
7.Management is a science
and Art

Levels of
management
Levels of management
refers to the
arrangement of
managerial positions in
an organization
1.Top management
2.Middle management

BO
BOD
CHAIRMA
NCEO
TOP
MANAGEMENT

MIDDLE
MANAGEMENT
DEPARTMENT
HEADS
DIVISIONAL
HEADS
SECTIONAL
HEADS

LOWER
MANAGEMENT
SENIOR
SUPERVISOR
INTERMEDIATE
SUPERVISOR
FRONT LINE
SUPERVISOR

FUNCTIONS OF
MANAGEMENT
“To manage is to
forecast and plan, to
organize o command,
to co-ordinate and
control”
Henri Fayol

p PLANNING
O ORGANISING
D DIRECTING
S STAFFING
CO CO-ORDINATING
R REPORTING
B BUDGETING
PODSCORB

Organization structure
 A formal pattern of interactions and
coordination designed by
management to link the tasks of
individuals and group in achieving
organisational goals
 A formal framework by which jobs
tasks are divided, grouped and
coordinated.
 When managers develop or change an
organisation’s structure thy engage in

• How job tasks are formally
divided, grouped and
coordinated.
(Robbins, 1996).
• The established pattern of
relationships between the
component parts of an
organisation, outlining both
communication, control and
authority patterns.
(Wilson and Rosenfeld, 1990).

Why Do Businesses Need to be Organised?
• Small businesses (particularly sole traders)
have an informal organisational structure
• As a business gets bigger then it starts to form
some kind of organisation
• An organisation structure is required as soon as
there are several people working in the
business
• The structure determines:
– Who is responsible for what job and
– Who is responsible to whom.

Definition of terms
• Responsibility – Area of work for a person or
group is accountable for. E.g. discipline of staff or
sales of product.
• Duties – Work or job requirements arising from
responsibilities. E.g. Writing a warning letter for late
coming or to meet clients or customers to persuade
then to buy products or services.
• Authority – the right to make decisions and take
action. E.g. secretary is given the authority to sign
orders up to RM500.
– Failure to coordinate between departments result in
duplication of work, stress, communication breakdown
and therefore frustrated staff

• Responsibility is defined as “a
particular burden of obligation upon
a person who is
responsible.” Responsible is defined
as “answerable or accountable, as
for something within one’s power or
control.” Therefore, a leader is
responsible and has
responsibility for the operation for
which she has been given
authority.

• Authority is defined as “a power
or right, delegated or given.” In
this sense, the person or
company that hires a leader
vests him with the authority to
manage or direct a particular
operation. It is expected that this
individual will exercise the full
scope of his authority to properly,
profitably, and professionally
manage the operation.

ORGANIZATIONAL CHART

• A chart Shows;
– The business divided into areas where
employees have responsibilities.
– States relationships between staffs e.g.
Supervisor, subordinate, peer.
– Shows the number of people working in the
organisation.
– Historical record – organisation changes makes
the chart become out of date.
– As information to new employees and special
group.
– Main lines of communication.

Span of Control
The number of subordinates a supervisor
has reporting to him/her.
It is recommended that a supervisor has
about 5/6 subordinates for effective
management.
2 types of span of Control;
◦ Narrow
◦ Wide
Narrow
◦ Closer and more contact with subordinate
◦ Tight control and tight supervision
◦ More time for other duties – planning,
decision making

• WHAT IS THE SPAN OF CONTROL?
• THE NUMBER OF PEOPLE WHO REPORT TO
ONE MANAGER IN A HIERARCHY
• THE MORE PEOPLE UNDER THE CONTROL OF
ONE MANAGER - THE WIDER THE SPAN OF
CONTROL
• LESS MEANS A NARROWER SPAN OF
CONTROL
• EXAMPLE BELOW SHOWS A SPAN OF
CONTROL OF 4 FOR THE MARKETING
MANAGER
Marketing
Manager
Marketing
Assistant
Market
Researcher
Telesales
Supervisor
Customer
Care
Assistant

SPAN OF CONTROL
Narrow Span of Control
Manager
Wide Span of Control
Manager

ProductionFinance R&D Accounting
Sales &
Marketing
Human
Resource
Chief Executive Officer
Functional Structure

FUNCTIONAL ORGANIZATION
STRUCTURES

PRODUCT STRUCTURE
Washing Machine
Division
Lighting
Division
Television
Division
Corporate
Managers
CEO
Corporation

GEOGRAPHIC STRUCTURE
Northern
Region
Western
Region
Southern
Region
Eastern
Region
Corporate
Managers
CEO
Corporation

MATRIX ORGANIZATIONAL
STRUCTURE

CHAIN OF COMMAND (COC)
• UNBROKEN LINE OF AUTHORITY FORM THE
TOP TO THE BOTTOM OF THE ORGANISATION.
• EVERYONE IS ACCOUNTABLE TO SOMEONE.
• WHEN THE COC IS TOO LONG;
• COMPLEXITY IN COMMUNICATION
• MESSAGE GETS DISTORTED
• DEPERSONALISED EMPLOYEE RELATIONS
• TOO MUCH ‘RED TAPE’
• BORDERLESS ORGANISATION
• TEAM WORK

CHAIN OF COMMAND
• LINE ON WHICH ORDERS AND DECISIONS ARE
PASSED DOWN
• FROM TOP OF HIERARCHY TO BOTTOM
EXAMPLE
Managing
Director
Production
Director
Production
Manager
Factory
Supervisor
Machine
Operators

CENTRALISATION
• AMOUNT OF AUTHORITY DELEGATED TO
DIFFERENT POSITIONS IN THE ORGANISATION
STRUCTURE.
• DECISION MAKING IS FOCUSED AT THE TOP OF
THE ORGANISATION HIERARCHY AND LOWER
LEVEL JUST CARRY OUT DECISIONS MADE.
• AUTHORITY AND WORK IS NOT / LITTLE
DELEGATED.
• ADVANTAGES
• TOP MANAGEMENT IS AWARE OF THE HAPPENINGS AND
OVERALL NEEDS, BETTER CONTROL OVER ACTIVITIES
• BETTER STANDARDISED PROCEDURES AND POLICY
• EASIER TO MAINTAIN SECRECY

DECENTRALISATION
• DECISION ARE MADE AT ALL MANAGEMENT
LEVELS.
• LOWER LEVEL MANAGEMENT PROVIDE INPUT IN
DECISION MAKING.
• AUTHORITY AND WORK IS DELEGATED
• ADVANTAGES
• REDUCES WORK LOAD FOR TOP MANAGEMENT
• FASTER DECISIONS
• BETTER DECISIONS
• EMPLOYEES LEARN TO MAKE DECISIONS
• IMPROVES STAFF MORALE
• ORGANISATION BECOMES FLEXIBLE

CENTRALISED ORGANISATIONS
• WHAT ARE THEY?
• ORGANISATIONS WHERE IMPORTANT DECISIONS ARE TAKEN AT
THE CENTRE AND THEN PASSED OUT TO THE VARIOUS
DEPARTMENTS / LOCATIONS
• ADVANTAGES
• TIGHT CONTROL OF DECISIONS
• DECISIONS MADE BY SENIOR MANAGEMENT
• HELPS DECISIONS TO BE CONSISTENT ACROSS THE BUSINESS
• AVOIDS REPETITION OF FUNCTIONS (E.G. ONLY ONE PURCHASING
DEPARTMENT)
• DISADVANTAGES
• LACK OF MOTIVATION FOR MANAGERS
• CENTRAL MANAGEMENT MAY BE “OUT OF TOUCH”
• MAY BE SLOW TO MAKE DECISIONS THAT NEED TO TAKEN
QUICKLY

DE-CENTRALISED ORGANISATIONS
• WHAT ARE THEY?
• ORGANISATIONS WHERE IMPORTANT DECISIONS ARE
DELEGATED TO MANAGERS IN OTHER DEPARTMENTS /
LOCATIONS
• ADVANTAGES
• INCREASED MOTIVATION OF MANAGERS
• ENCOURAGES LOCAL INITIATIVES
• DECISIONS BASED ON MORE UP-TO-DATE
INFORMATION
• DECISIONS MADE QUICKER
• DISADVANTAGES
• MANAGERS MAY LACK EXPERIENCE
• LOCAL DECISIONS MAY BE INCONSISTENT WITH THE

TALL & FLAT STRUCTURES (continued)
Flat Structure / Decentralised Wider span of control
Shorter lines
Of authority
Tall Structure / Centralised
Narrower span of control
Taller
Lines of
authority

Authority
it is the right to give orders.
It is institutional and
originates because of
structural relationships. It
exists in the context of
organizational relationship.
It is a downward flowing
concept.

Responsibility
Responsibility means obligation to
perform a task. It refers to the mental
and physical activities which should be
performed to carry out a task
It develops from the superior sub
ordinate relationship and can not
delegated or transferred
Responsibility is the obligation of a
subordinate to perform the assigned
and implied duties-
Koontz and O’ Donnel

Accountability
Accountability is the obligation
to perform responsibility and
exercise authority in terms of
performance standards
established by the superior.
When a subordinate is assigned
some duties to be performed, he
will be accountable to his
superior for doing or not doing

introduction to management

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