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Unit 1
U
N
I
T
O
N
E
INTRODUCTION
Organization
Two or more people who work together in a
structured way to achieve a specific goal or set of
goals.
Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals,
goals are fundamental elements of organization.
The Role of Management
To guide the organizations towards goal
accomplishment
DEFINITIONS F.W.Taylor
“Management is the art of knowing what you want
to do in the best & cheapest way”
Harold Koontz & Heinz Weihrich
“Management is the process of designing &
maintaining an environment in which individuals
work with such performance for optimizing
efficiency in reaching goals”
A.F. Stoner
“ The process of planning, organizing, leading and
controlling the work of organization members and
of using all available organizational resources to
reach stated organizational goals”
CHARACTERISTICS
Management is a continuous
process
Management aims at the
accomplishment of
predetermined objectives
Management is both a
science and an art
Management is a group
activity
Management principles are
universal in nature
CHARACTERISTICS
Management is an organized
activity
Management is essential at
different levels of organizations
Management principles are
dynamic in nature
Management utilizes a multi-
disciplinary approach
Management integrates
human and other resources
ConceptsofManagement
Management as
an Art
Management as a
Science
• It is the practical way of doing
specific things!
• Main reasons –
1. Application of knowledge & skills
for coordination
2. Management is creative
3. Personalized process
4. Result oriented
5. Constant practice lead to
perfection
• The elements of science –
1. Systematized body of knowledge
2. Contains use of principles &
theories
3. Universal acceptance of principles
• Management is an inexact
science or soft science.
ConceptsofManagement
Management as a
Profession
• Features of a profession –
a) Well defined and organized body
of knowledge
b) Learning and experience
c) Entry restricted by qualification
d) Recognized national body
e) Ethical code of conduct
• Management is a Partial
profession because of-
1. No universally acceptable criteria
for the evaluation of performance
2. Theory of the management is still
evolving
ConceptsofManagement Management by
Objectives
Meaning: Defining objectives within an organization so that
management and employees agree to the objectives and
understand what they need to do in the organization in
order to achieve them.
Benefits of MBO
a) The need for planning will be recognized
b) It provides attainable objectives and accountability for
performance
c) It encourages participative management
d) Help in job enrichment (increasing level of responsibility)
e) It provides good feedback system
Steps in MBO
a) Set organizational goals
b) Set departmental goals
c) Discuss departmental goals
d) Define expected results
e) Performance Reviews
f) Provide feedback
ManagerialLevels
RoleofaManager The Manager performs traditional and
symbolic duties as head of the
organization
Fosters a proper work atmosphere
and motivates and develops
subordinates
Develops and maintains a network of
external contacts to gather information
Gathers internal and external information
relevant to the organization
Transmits factual and value based
information to subordinates
RoleofaManager
Communicates to the outside world on
performance and policies
Designs and initiates change in the
organization!
Participates in negotiation activities with
other organizations and individuals.
Deals with unexpected events and
operational breakdowns
Controls and authorizes the use of
organizational resources
ManagerialSkills
ManagementVs.Administration Basis Administration Management
Nature Thinking Executive
Scope/Focus Determination of major
objectives and policies
Policies execution or
implementation
Level in the
organization
Top level Middle and lower
level function
Main Function Planning and control Directing and
organizing
Skills required Human and conceptual
skills
Technical and human
skills
Applicability Largely in government
and public sector
Business
organizations
Examples Minister, commander,
vice-chancellor,
registrar,etc
Managing Director,
General manager,
Branch Manager, etc
Significance
Objective
Determin
a-tion
Effective
Resource
s
utilization
Meeting
Challenge
s
Economic
Developm
ent
Objective
achievem
e-nt
ManagementProcess
PLANNING
 Determining organizational goals and
means to reach them
 Managers plan for three reasons
1. Establish an overall direction for the
organization’s future
2. Identify and commit resources to achieving
goals
3. Decide which tasks must be done to reach
those goals
ORGANIZING
CEO
Sales
manager
Purchase
manager
Advertising
manager
HR
manager
Leave
manager
 Process of deciding where decisions will be made, who will
perform what jobs and tasks, and who will report to whom in
the company
 Includes creating departments and job descriptions
 Organizing means assigning the planned tasks to various
individuals or groups within the organization
LEADING/DIRECTING
Leading (Influencing) means guiding the activities of the
organizational members in appropriate directions. Objective
is to improve productivity.
Getting others to perform the necessary tasks by motivating
them to achieve the organization’s goals
CONTROLLING
 Process by which a person, group, or organization consciously
monitors performance and takes corrective
action
 It ensures that actual activities conform to planned activities!
 Three step process under controlling -
1. Gather information that measures
recent performance
2. Compare present performance to
pre-established standards
3. Determine modifications to meet
pre-established standards
COORDINATION
Planning
Laying down of common
objectives!
Organizing
Staffing
Grouping of activities into
homogenous departments!
Assigning task to various
individuals!
COORDINATION
Directing
Integration of humans with
economic and technical
resources!
Controlling
Actual output matches with
expected or planned output!
“ The central task of the manager is to reconcile the difference
in approach, efforts or interest and to harmonize the individual
goals and actions !”
- Koontz & O’Donnell

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Unit 1 Introduction to Management Concepts

  • 2. INTRODUCTION Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals. Goals Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment
  • 3. DEFINITIONS F.W.Taylor “Management is the art of knowing what you want to do in the best & cheapest way” Harold Koontz & Heinz Weihrich “Management is the process of designing & maintaining an environment in which individuals work with such performance for optimizing efficiency in reaching goals” A.F. Stoner “ The process of planning, organizing, leading and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals”
  • 4. CHARACTERISTICS Management is a continuous process Management aims at the accomplishment of predetermined objectives Management is both a science and an art Management is a group activity Management principles are universal in nature
  • 5. CHARACTERISTICS Management is an organized activity Management is essential at different levels of organizations Management principles are dynamic in nature Management utilizes a multi- disciplinary approach Management integrates human and other resources
  • 6. ConceptsofManagement Management as an Art Management as a Science • It is the practical way of doing specific things! • Main reasons – 1. Application of knowledge & skills for coordination 2. Management is creative 3. Personalized process 4. Result oriented 5. Constant practice lead to perfection • The elements of science – 1. Systematized body of knowledge 2. Contains use of principles & theories 3. Universal acceptance of principles • Management is an inexact science or soft science.
  • 7. ConceptsofManagement Management as a Profession • Features of a profession – a) Well defined and organized body of knowledge b) Learning and experience c) Entry restricted by qualification d) Recognized national body e) Ethical code of conduct • Management is a Partial profession because of- 1. No universally acceptable criteria for the evaluation of performance 2. Theory of the management is still evolving
  • 8. ConceptsofManagement Management by Objectives Meaning: Defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them. Benefits of MBO a) The need for planning will be recognized b) It provides attainable objectives and accountability for performance c) It encourages participative management d) Help in job enrichment (increasing level of responsibility) e) It provides good feedback system Steps in MBO a) Set organizational goals b) Set departmental goals c) Discuss departmental goals d) Define expected results e) Performance Reviews f) Provide feedback
  • 10. RoleofaManager The Manager performs traditional and symbolic duties as head of the organization Fosters a proper work atmosphere and motivates and develops subordinates Develops and maintains a network of external contacts to gather information Gathers internal and external information relevant to the organization Transmits factual and value based information to subordinates
  • 11. RoleofaManager Communicates to the outside world on performance and policies Designs and initiates change in the organization! Participates in negotiation activities with other organizations and individuals. Deals with unexpected events and operational breakdowns Controls and authorizes the use of organizational resources
  • 13. ManagementVs.Administration Basis Administration Management Nature Thinking Executive Scope/Focus Determination of major objectives and policies Policies execution or implementation Level in the organization Top level Middle and lower level function Main Function Planning and control Directing and organizing Skills required Human and conceptual skills Technical and human skills Applicability Largely in government and public sector Business organizations Examples Minister, commander, vice-chancellor, registrar,etc Managing Director, General manager, Branch Manager, etc
  • 16. PLANNING  Determining organizational goals and means to reach them  Managers plan for three reasons 1. Establish an overall direction for the organization’s future 2. Identify and commit resources to achieving goals 3. Decide which tasks must be done to reach those goals
  • 17. ORGANIZING CEO Sales manager Purchase manager Advertising manager HR manager Leave manager  Process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company  Includes creating departments and job descriptions  Organizing means assigning the planned tasks to various individuals or groups within the organization
  • 18. LEADING/DIRECTING Leading (Influencing) means guiding the activities of the organizational members in appropriate directions. Objective is to improve productivity. Getting others to perform the necessary tasks by motivating them to achieve the organization’s goals
  • 19. CONTROLLING  Process by which a person, group, or organization consciously monitors performance and takes corrective action  It ensures that actual activities conform to planned activities!  Three step process under controlling - 1. Gather information that measures recent performance 2. Compare present performance to pre-established standards 3. Determine modifications to meet pre-established standards
  • 20. COORDINATION Planning Laying down of common objectives! Organizing Staffing Grouping of activities into homogenous departments! Assigning task to various individuals!
  • 21. COORDINATION Directing Integration of humans with economic and technical resources! Controlling Actual output matches with expected or planned output! “ The central task of the manager is to reconcile the difference in approach, efforts or interest and to harmonize the individual goals and actions !” - Koontz & O’Donnell