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The Concept of Management
1
Why Organizations?
 An indl. is unable to fulfill his needs and desires
alone (because of lack of strengths, ability, time,
potential) and so seeks the co-operation of others
in achieving his goals.
 The purpose of organization is to enable managers
and workforce to carry out their responsibilities
efficiently.
2
Organizations
• Organization is a group of people in which
activities are carried out in order to accomplish a
particular goal.
• An organization is the rational co-ordination of
the activities of a number of people for the
achievement of some common explicit purpose
or goal, thro’ division of labour and functions
and thro’ a hierarchy of authority and
responsibility – Edgar H Schein 3
Organizationscntd…
For practical purpose an organization can be defined as
a process of:
• Determining what must be done if a given aim is to be
achieved
• Dividing the necessary activities into segments small
enough to be performed by one person
• Providing means of co-ordination so that there is no
wasted effort
Important characteristics of an orgn. are
1) Communication 2) Co-operative efforts
3) Common objectives 4) Rules and regulations
4
Characteristics of Excellent & Most
Admired Companies
• Were oriented towards action
• Learned customer needs
• Promoted managerial autonomy & entrepreneurship
• Achieved productivity thru need satisfaction of HR
• Were driven by a co philosophy based on leaders’ values
• Focused on the business they knew best
• Had a simple org str. with lean staff
• Were centralized/decentralized based on appropriateness
In Search of Excellence-Thomas Peters & Robert
Waterman
5
Organizations as Technical/Social Systems
• Administrative/Structured subsystem
• Informational/Decision making subsystem
• Economic/Technological subsystem
• Human/Social subsystem
Human Organizations:
• It is a dynamic entity consisting of indls.
• Its basic pillars are indls, group and the work
(workplace is one of the most important institutions
for providing human satisfaction)
• Relationships among indls. are crucial
6
Management & Environmental Forces
Environmental Forces:
General:
Technological, social, economical, legal-
political, marketing, financial etc.
Specific:
Govt., owners, shareholders, competitors,
labour unions, public, customers etc.
7
Business as a System
• Business ecology deals with the study of
business in relation to its environment
• Co-operative system/Complex system of
decision making process/Dynamic system
(internal & external pressures)/Social (man-
machine system)/Socio-technical system
• System-closed/open: Business as an open
system
Input Process
Output
Environment 8
Who is a Manager?
• Those members of the organization whose
primary responsibility is to carry out the
managerial process
9
Framework of Management
A Manager
• Performs certain functions
- Organizing, planning, controlling, staffing and
directing
• Utilizes certain resources
- Human, physical, financial
• Applies certain techniques
- Standards, appraisals, controls etc.
• Aware of results by using certain concepts
- Communication, leadership, motivation, conflicts
10
Framework of Management cntd…
• In order to obtain certain goals
- Individual, departmental, corporate
• In a manner that encourages growth
- Individual, corporate
• To the satisfaction of consumers and members of the
organization
11
Levels of Management
12
Top
Mgmt
Middle
Mgmt
Middle
Mgmt
Superv
Mgmt
Superv
Mgmt
Superv
Mgmt
Superv
Mgmt
Levels of Management cntd…
Top Management
• Develops and reviews long range plans and strategies
• Evaluates overall performance of various departments
and ensures co-operation
• Involves in selection of key personnel
• Consults subordinate managers on subjects or
problems of general scope
13
Levels of Management cntd…
Middle Management
• Makes plans of intermediate range and prepares long-
range plans for review by top management
• Analyzes managerial performance to determine
capability and readiness for promotion
• Establishes departmental policies
• Reviews daily and weekly reports on production or
sales
• Counsels subordinates on production, personnel or
other problems
• Selects and recruits personnel
14
Levels of Management cntd…
Supervisory Management
• Makes detailed, short-range operating plans
• Reviews performance of subordinates
• Supervises day-to-day operations
• Makes specific task assignment
• Maintains close contact with operative employees
15
Basic Managerial Roles – Henry Mintzberg
Category Role Sample activities
Interpersonal Figurehead Attending inaug ceremony of new plant
Leader Encouraging employees to increase prodvty
Liaison Coordinating activities of two project groups
Informational Monitor Scanning industry reports to be abreast of dev
Disseminator Sending memos on new initiates
Spokesperson Making a growth plan speech
Decisional Entrepreneur Developing new innovation ideas
Disturbance handler Resolving conflicts bet two subordinates
Resource allocator Reviewing/revising budget requests
Negotiator Reaching agreements with supplier/TU
16
Managerial Responsibilities
• Responsibilities to self: Involves carrying out the
duties and responsibilities of the managerial job to
the best of one’s ability
• Responsibility to subordinates: Developing
subordinates for future responsibilities and helping
them to perform adequately in their current jobs
• Responsibilities to the organization:
Strengthening the organization for continued growth
while working towards the established goals
• The basic function of a manager is to get results
thro’ the efforts of others
• The manager should lead a team to achieve planned
objectives
17
• The word “management” comes from the French word
“manege” ( Italian “maneggio”) which means to train
horses in obedience and deportment.
• Give a comprehensive definition for Management
18
Management Defined
• Management is the process of efficiently getting
activities completed with and thro’ other people
- Goals/activities completed
- Limited resources/efficiently
- People/other people
• Management is the study of overseeing activities and
supervising people in organizations
• Management is the process of working with and thro’
individuals and groups and other resources to
accomplish organizational goals
19
Management Defined cntd…
• Management is guiding physical and human
resources into dynamic organizational units that
attain their objectives to the satisfaction of those
served and with a high sense of morale and sense of
commitment on the part of those rendering the
service
• Management function calls for co-ordination all
resources
20
Effectiveness vs. Efficiency
Productivity
• The output-input ratio within a time period with due
consideration for quality
Effectiveness
• The achievement of objectives
Efficiency
• The achievement of the ends with the least amount of
resources
21
Management as a Profession
• Well defined body of knowledge
• System of imparting training
• Professional association
• Ethical code of conduct
• Service motive
22
Management as an art
• Art - skillful and personal application of existing
knowledge to achieve desired results; can be acquired thru
study, observation and experience; requires ingenuity and
creativity to practice the basic principles learnt.
1) Existence of theoretical knowledge
E.g.; literature on dance, public speaking, acting or music
2) Personalized application
Use of the basic knowledge varies from indl to indl –
personalized concept
3) Based on practice and creativity
Art is practical and involves creative practice of existing
knowledge 23
Management as an art cntd…
1) Mgmt is also based on study, observation and
experience
• Existence of theoretical knowledge
2) Applies the acquired knowledge in a
personalized and skillful manner
3) A manager applies scientific method and
body of knowledge in his own unique manner
- combination of practice, creativity,
imagination, initiative and innovation
24
Management as a science
1) Science-systematised body of knowledge
• Mgmt has its own theory and principles & vocabulary
of terms and concepts
2) Principles based on experimentation
• Have evolved over a period of time based on repeated
experimentation and observation in different types of
orgns
3) Universal validity
• Since mgmt principles are not as exact as the
principles of science, they need to be modified and
standardized for universal application 25
Management – Art or Science?
As an Art:
• Existence of theoretical knowledge
• Personalized application
• Based on practice and creativity
As a Science:
• Systematized body of knowledge
• Principles based on experimentation
• Universal validity
26
Manager vs. Specialist
Job content
27
Top Management
Middle Management
First Line Management
Specialist
Managerial Task
Specialist task
Skill Sets for Managers - Robert L. Katz
28
I Line Mgmt Middle Mgmt Top Mgmt
Conceptual
Human
Technical
Conceptual
Human
Technical
Human
Conceptual
Technical
Skills of a Manager
Technical skills:
• Ability to use knowledge, methods, techniques, and equipment
necessary for the performance of specific tasks acquired from
experience, education and training
Human skills:
• Ability and judgment in working with and thro’ people, including an
understanding of motivation and an application of effective
leadership
Conceptual skill:
• Ability to understand the complexities of the overall orgn. and where
one’s own operation fits into the orgn. This knowledge permits one to
act according to the objectives of the total orgn. rather than only on
the basis of the goals and needs of one’s own immediate group.
29
Emphasis on Human Skills
John D. Rockfeller (great entrepreneur)-
“I will pay more for the ability to deal with people
than any other ability under the sun”.
A study by the American Management Association:
Managers rated the ability to get along with people
higher than intelligence, decisiveness, knowledge or
job skills.
30
Ingredients for Effective Human skills
• Understanding past behavior
(What motivates people? What produces the pattern
of behaviors that are characteristics of individuals or
groups?)
• Predicting future behavior
(How individuals are going to behave?)
• Directing, changing and controlling behavior
-Control does not mean to manipulate others
A hammer won’t always do the job!
• Leadership and management use different tools
31
Management Process/Managerial
Functions
• A process is a systematic way of doing things
• It is a systematic method of handling activities
Basic Managerial Functions
• Planning
• Organizing
• Directing (Motivating/Leading)
• Controlling
• Coordinating
• Decision Making
32
Planning
• Planning means the steps taken in determining a
course of action
• It is a blue-print for action
• Plans are necessary to give the orgn its goals and
direction and to establish the best procedure for
reaching them
1. The policies that will help to achieve the objectives
2. The programs that a manager will carry out
3. The procedures that a manager will utilize
4. The time schedules that a manager will have to
meet
5. The budgetary considerations that will be involved 33
Organizing
• Once managers have established the objectives and
developed plans and programs to reach them, they
must design and develop an orgn to carry out those
programs successfully
1. Grouping of activities logically into functions or
positions
2. Assignment of different groups of activities to
different individuals
3. Delegation of authority to carry out the activities
4. Coordination of authority relationships horizontally
and vertically in the organization structure
34
Directing/Motivating
• Involves guiding and supervising the personnel in
order to put the plans into effect by the them
1. The degree to which the employee feels his goals
and those of the organization are similar
2. The employee’s relationships with his co-workers,
and especially with his supervisor
3. The way in which his job helps him meet his
personal needs in a manner that seems fair
4. The extent to which it enables him to feel adequate
to his tasks, and to gain a sense of accomplishment
for jobs well done
35
Controlling
• The process of controlling is essentially one of
measuring actual performance and comparing it
with pre-established standards
1. Comparing actual events with the forecasts
2. Comparing results achieved with the objectives,
programs and schedules
3. Measuring actual costs against budgeted costs
36
Coordinating
• Just as organizations need to divide and specialize
their operations and activities, so also they need to
bring them together in some coordinated working
relationship
• Managers seek a balance in the use of resources to
attain objectives
• Coordination is needed both up and down the
organization structure and laterally as well
• In some organizations, special staff services are
utilized to secure coordination
37
Decision Making
• Making decisions is not just an element of a
manager’s job; it is his job
• It is not enough just to make decisions, he must make
correct decisions
• The manager constantly seeks to make correct
decisions involving the use of various types of
resources at his disposal to attain the various
objectives
38

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Management basics

  • 1. The Concept of Management 1
  • 2. Why Organizations?  An indl. is unable to fulfill his needs and desires alone (because of lack of strengths, ability, time, potential) and so seeks the co-operation of others in achieving his goals.  The purpose of organization is to enable managers and workforce to carry out their responsibilities efficiently. 2
  • 3. Organizations • Organization is a group of people in which activities are carried out in order to accomplish a particular goal. • An organization is the rational co-ordination of the activities of a number of people for the achievement of some common explicit purpose or goal, thro’ division of labour and functions and thro’ a hierarchy of authority and responsibility – Edgar H Schein 3
  • 4. Organizationscntd… For practical purpose an organization can be defined as a process of: • Determining what must be done if a given aim is to be achieved • Dividing the necessary activities into segments small enough to be performed by one person • Providing means of co-ordination so that there is no wasted effort Important characteristics of an orgn. are 1) Communication 2) Co-operative efforts 3) Common objectives 4) Rules and regulations 4
  • 5. Characteristics of Excellent & Most Admired Companies • Were oriented towards action • Learned customer needs • Promoted managerial autonomy & entrepreneurship • Achieved productivity thru need satisfaction of HR • Were driven by a co philosophy based on leaders’ values • Focused on the business they knew best • Had a simple org str. with lean staff • Were centralized/decentralized based on appropriateness In Search of Excellence-Thomas Peters & Robert Waterman 5
  • 6. Organizations as Technical/Social Systems • Administrative/Structured subsystem • Informational/Decision making subsystem • Economic/Technological subsystem • Human/Social subsystem Human Organizations: • It is a dynamic entity consisting of indls. • Its basic pillars are indls, group and the work (workplace is one of the most important institutions for providing human satisfaction) • Relationships among indls. are crucial 6
  • 7. Management & Environmental Forces Environmental Forces: General: Technological, social, economical, legal- political, marketing, financial etc. Specific: Govt., owners, shareholders, competitors, labour unions, public, customers etc. 7
  • 8. Business as a System • Business ecology deals with the study of business in relation to its environment • Co-operative system/Complex system of decision making process/Dynamic system (internal & external pressures)/Social (man- machine system)/Socio-technical system • System-closed/open: Business as an open system Input Process Output Environment 8
  • 9. Who is a Manager? • Those members of the organization whose primary responsibility is to carry out the managerial process 9
  • 10. Framework of Management A Manager • Performs certain functions - Organizing, planning, controlling, staffing and directing • Utilizes certain resources - Human, physical, financial • Applies certain techniques - Standards, appraisals, controls etc. • Aware of results by using certain concepts - Communication, leadership, motivation, conflicts 10
  • 11. Framework of Management cntd… • In order to obtain certain goals - Individual, departmental, corporate • In a manner that encourages growth - Individual, corporate • To the satisfaction of consumers and members of the organization 11
  • 13. Levels of Management cntd… Top Management • Develops and reviews long range plans and strategies • Evaluates overall performance of various departments and ensures co-operation • Involves in selection of key personnel • Consults subordinate managers on subjects or problems of general scope 13
  • 14. Levels of Management cntd… Middle Management • Makes plans of intermediate range and prepares long- range plans for review by top management • Analyzes managerial performance to determine capability and readiness for promotion • Establishes departmental policies • Reviews daily and weekly reports on production or sales • Counsels subordinates on production, personnel or other problems • Selects and recruits personnel 14
  • 15. Levels of Management cntd… Supervisory Management • Makes detailed, short-range operating plans • Reviews performance of subordinates • Supervises day-to-day operations • Makes specific task assignment • Maintains close contact with operative employees 15
  • 16. Basic Managerial Roles – Henry Mintzberg Category Role Sample activities Interpersonal Figurehead Attending inaug ceremony of new plant Leader Encouraging employees to increase prodvty Liaison Coordinating activities of two project groups Informational Monitor Scanning industry reports to be abreast of dev Disseminator Sending memos on new initiates Spokesperson Making a growth plan speech Decisional Entrepreneur Developing new innovation ideas Disturbance handler Resolving conflicts bet two subordinates Resource allocator Reviewing/revising budget requests Negotiator Reaching agreements with supplier/TU 16
  • 17. Managerial Responsibilities • Responsibilities to self: Involves carrying out the duties and responsibilities of the managerial job to the best of one’s ability • Responsibility to subordinates: Developing subordinates for future responsibilities and helping them to perform adequately in their current jobs • Responsibilities to the organization: Strengthening the organization for continued growth while working towards the established goals • The basic function of a manager is to get results thro’ the efforts of others • The manager should lead a team to achieve planned objectives 17
  • 18. • The word “management” comes from the French word “manege” ( Italian “maneggio”) which means to train horses in obedience and deportment. • Give a comprehensive definition for Management 18
  • 19. Management Defined • Management is the process of efficiently getting activities completed with and thro’ other people - Goals/activities completed - Limited resources/efficiently - People/other people • Management is the study of overseeing activities and supervising people in organizations • Management is the process of working with and thro’ individuals and groups and other resources to accomplish organizational goals 19
  • 20. Management Defined cntd… • Management is guiding physical and human resources into dynamic organizational units that attain their objectives to the satisfaction of those served and with a high sense of morale and sense of commitment on the part of those rendering the service • Management function calls for co-ordination all resources 20
  • 21. Effectiveness vs. Efficiency Productivity • The output-input ratio within a time period with due consideration for quality Effectiveness • The achievement of objectives Efficiency • The achievement of the ends with the least amount of resources 21
  • 22. Management as a Profession • Well defined body of knowledge • System of imparting training • Professional association • Ethical code of conduct • Service motive 22
  • 23. Management as an art • Art - skillful and personal application of existing knowledge to achieve desired results; can be acquired thru study, observation and experience; requires ingenuity and creativity to practice the basic principles learnt. 1) Existence of theoretical knowledge E.g.; literature on dance, public speaking, acting or music 2) Personalized application Use of the basic knowledge varies from indl to indl – personalized concept 3) Based on practice and creativity Art is practical and involves creative practice of existing knowledge 23
  • 24. Management as an art cntd… 1) Mgmt is also based on study, observation and experience • Existence of theoretical knowledge 2) Applies the acquired knowledge in a personalized and skillful manner 3) A manager applies scientific method and body of knowledge in his own unique manner - combination of practice, creativity, imagination, initiative and innovation 24
  • 25. Management as a science 1) Science-systematised body of knowledge • Mgmt has its own theory and principles & vocabulary of terms and concepts 2) Principles based on experimentation • Have evolved over a period of time based on repeated experimentation and observation in different types of orgns 3) Universal validity • Since mgmt principles are not as exact as the principles of science, they need to be modified and standardized for universal application 25
  • 26. Management – Art or Science? As an Art: • Existence of theoretical knowledge • Personalized application • Based on practice and creativity As a Science: • Systematized body of knowledge • Principles based on experimentation • Universal validity 26
  • 27. Manager vs. Specialist Job content 27 Top Management Middle Management First Line Management Specialist Managerial Task Specialist task
  • 28. Skill Sets for Managers - Robert L. Katz 28 I Line Mgmt Middle Mgmt Top Mgmt Conceptual Human Technical Conceptual Human Technical Human Conceptual Technical
  • 29. Skills of a Manager Technical skills: • Ability to use knowledge, methods, techniques, and equipment necessary for the performance of specific tasks acquired from experience, education and training Human skills: • Ability and judgment in working with and thro’ people, including an understanding of motivation and an application of effective leadership Conceptual skill: • Ability to understand the complexities of the overall orgn. and where one’s own operation fits into the orgn. This knowledge permits one to act according to the objectives of the total orgn. rather than only on the basis of the goals and needs of one’s own immediate group. 29
  • 30. Emphasis on Human Skills John D. Rockfeller (great entrepreneur)- “I will pay more for the ability to deal with people than any other ability under the sun”. A study by the American Management Association: Managers rated the ability to get along with people higher than intelligence, decisiveness, knowledge or job skills. 30
  • 31. Ingredients for Effective Human skills • Understanding past behavior (What motivates people? What produces the pattern of behaviors that are characteristics of individuals or groups?) • Predicting future behavior (How individuals are going to behave?) • Directing, changing and controlling behavior -Control does not mean to manipulate others A hammer won’t always do the job! • Leadership and management use different tools 31
  • 32. Management Process/Managerial Functions • A process is a systematic way of doing things • It is a systematic method of handling activities Basic Managerial Functions • Planning • Organizing • Directing (Motivating/Leading) • Controlling • Coordinating • Decision Making 32
  • 33. Planning • Planning means the steps taken in determining a course of action • It is a blue-print for action • Plans are necessary to give the orgn its goals and direction and to establish the best procedure for reaching them 1. The policies that will help to achieve the objectives 2. The programs that a manager will carry out 3. The procedures that a manager will utilize 4. The time schedules that a manager will have to meet 5. The budgetary considerations that will be involved 33
  • 34. Organizing • Once managers have established the objectives and developed plans and programs to reach them, they must design and develop an orgn to carry out those programs successfully 1. Grouping of activities logically into functions or positions 2. Assignment of different groups of activities to different individuals 3. Delegation of authority to carry out the activities 4. Coordination of authority relationships horizontally and vertically in the organization structure 34
  • 35. Directing/Motivating • Involves guiding and supervising the personnel in order to put the plans into effect by the them 1. The degree to which the employee feels his goals and those of the organization are similar 2. The employee’s relationships with his co-workers, and especially with his supervisor 3. The way in which his job helps him meet his personal needs in a manner that seems fair 4. The extent to which it enables him to feel adequate to his tasks, and to gain a sense of accomplishment for jobs well done 35
  • 36. Controlling • The process of controlling is essentially one of measuring actual performance and comparing it with pre-established standards 1. Comparing actual events with the forecasts 2. Comparing results achieved with the objectives, programs and schedules 3. Measuring actual costs against budgeted costs 36
  • 37. Coordinating • Just as organizations need to divide and specialize their operations and activities, so also they need to bring them together in some coordinated working relationship • Managers seek a balance in the use of resources to attain objectives • Coordination is needed both up and down the organization structure and laterally as well • In some organizations, special staff services are utilized to secure coordination 37
  • 38. Decision Making • Making decisions is not just an element of a manager’s job; it is his job • It is not enough just to make decisions, he must make correct decisions • The manager constantly seeks to make correct decisions involving the use of various types of resources at his disposal to attain the various objectives 38