Useful for Management Students

1. Introduction to ManagementIntroduction to Management

2. 1. What is management?
Principles of Management
2. What are the principles of management?

3. • A manager’s primary challenge is to solve
problems creatively, and view management as “the
art of getting things done through the efforts of
other people.” (individual, group or organization)
Mary Parker Follett (1868–1933)
Principles of Management
Mary Parker Follett (1868–1933)
(She had introduced phrases such as: “conflict
resolution,” “authority and power,” and “the task of
leadership.”)

4. • Formally defined, the principles of management are
the activities that
“plan, organize, and control the operations of the
basic elements of people, materials, machines,
methods, money and markets, providing direction
Principles of Management
methods, money and markets, providing direction
and coordination, and giving leadership to human
efforts, so as to achieve the sought objectives of
the enterprise.”

5. • French management theorist Henri Fayol (1841–1925)
developed the fundamental notion of Principles of
Management, with original framework of planning-
organizing-leading-controlling framework (P-O-L-C),
• Managers are required in all the activities of
organizations: budgeting, designing, selling,organizations: budgeting, designing, selling,
creating, financing, accounting, and artistic
presentation.
• Everyone in an organization is affected by
management principles, processes, policies, and
practices as they are either a manager or a
subordinate, and usually both.

6. • S. Ghoshal and C. Bartlett (1999). In contrast to the
hierarchical relationship among layers of
management and managers and employees, in the
contemporary view, top managers support and serve
other managers and employees (through a process
called empowerment), just as the organization
Who are Managers?
called empowerment), just as the organization
ultimately exists to serve its customers and clients.
• Empowerment is the process of enabling or
authorizing an individual to think, behave, take
action, and control work and decision making in
autonomous ways.

7. Both the traditional and contemporary views of
management, feel need for different types of managers:
1. Top managers are responsible for developing the
organization’s strategy and being a steward for its
vision and mission.
Type of Managers?
vision and mission.
2. Functional managers are responsible for the efficiency
& effectiveness of area such as accounting/marketing.
3. Supervisory or team managers are responsible for
coordinating a group of particular function or a team
composed of members of the organization.

8. 4. Line manager leads a function that contributes
directly to the products or services the organization
Eg, Line manager, often called a product/service
manager, is responsible for the production, marketing,
and profitability of product line. (Tide detergent).
Type of Managers?
5. Staff manager, in contrast, leads a function that
creates indirect inputs.
Eg, finance and accounting are critical organizational
functions but do not typically provide an input into the
final product or service a customer buys; instead, they
serve a supporting role.
• (Above is also the distinctions between line & staff managers).

9. 6. A project manager has the responsibility for the
planning, execution, and closing of any project.
Eg, In construction, architecture, consulting,
computer networking, telecommunications, or
software development.
Type of Managers?
7. A general manager is someone who is responsible
for managing a clearly identifiable revenue -
producing unit, such as a store, business unit,
or product line. General managers typically must
make decisions across different functions and have
rewards tied to the performance of the entire unit
(i.e., store, business unit, product line, etc.).

10. • General managers take direction from their top
executives first understanding the executives’
overall plan for the company.
• Then they set specific goals for their own
departments to fit in with the plan.
Type of Managers?
departments to fit in with the plan.
Eg. Increase product lines and phase-out the other.
• General managers must describe their goals clearly
to their support staff.
• The supervisory managers ensure that the goals are
met.

11. Changing roles of Mgt & Managers?

12. • Managers are responsible for the processes of
getting activities completed efficiently with and
through other people and setting and achieving the
firm’s goals through the execution of:
Nature of Managerial work
Four basic management functions:
planning, organizing, leading, and controlling.
Both sets of processes utilize human, financial, and
material resources.
• (Of course, some managers are better than others at
accomplishing this!)

13. • H. Mintzberg (1973): The nature of managerial
work has not changed much except empowering
relationship between top managers and other
managers and employees, and other obvious -
changes in technology, and the increase in
information.
Nature of Managerial work
information.
• He concluded that to meet the many demands of
performing their functions, managers assume
multiple roles – identified in ten roles (common to
the work of all managers) and divided into three
groups: interpersonal, informational, and
decisional.

14. • The informational roles ensure that information is
provided. The interpersonal roles link all managerial
work together. The decisional roles make significant
use of the information.
Nature of Managerial work
• The performance of managerial roles and the
requirements of these roles can be played at
different times by the same manager and to
different degrees, depending on the level and
function of management.
• The ten roles form an integrated whole.

15. The Managerial Roles

16. • Three interpersonal roles concerned with
interpersonal relationships.
1. In figurehead role, the manager represents the
organization in all matters of formality.
Top-level manager represents the company legally
and socially to those outside of the organization.
Nature of Managerial work
The supervisor represents the work group to higher
management.
2. The leader role defines the relationships between
the manager and employees.
3. In liaison role, the manager interacts with peers and
people outside the organization and uses liaison role
to gain favors and information, while the supervisor
uses it to maintain the routine flow of work.

17. The Managerial Roles

18. • The direct relationships with people in the
interpersonal roles place the manager in a unique
position to get information
3 informational roles are primarily concerned with
the information aspects of managerial work.
1. In monitor role, receives and collects information.
Nature of Managerial work
1. In monitor role, receives and collects information.
2. In role of disseminator, transmits special information
into the organization. The top-level manager receives
and transmits more information from people outside
the organization than the supervisor.
3. In role of spokesperson, the manager disseminates
the organization’s information into its environment.

19. The Managerial Roles

20. • The unique access to information places the manager at
the center of organizational decision making.
Four decisional roles managers play.
1. In entrepreneur role, initiates change.
2. In disturbance handler deals with threats to the
Nature of Managerial work
2. In disturbance handler deals with threats to the
organization.
3. In resource allocator role, chooses where the
organization will expend its efforts.
4. In negotiator role, negotiates on behalf of the
organization.

21. The Ten Managerial Roles

22. So what do Mintzberg’s conclusions about the nature
of managerial work?
• On one hand, managerial work motivates individuals to
do amazing & exciting things.
Nature of Managerial work
do amazing & exciting things.
• On the other hand, managerial work is necessarily fast-
paced and fragmented, where managers at all levels
express the opinion that they must process much more
information and make more decisions than they could
have ever possibly imagined.

23. • So, just as the most successful organizations seem to
have well-formed and well-executed strategies, there is
also a strong need for managers to have good
strategies about the way they approach their work.
Nature of Managerial work
• This is exactly what is to be learned through principles
of management

24. • Interpersonal roles include figurehead, leadership,
and liaison activities.
• Informational roles include monitoring,
disseminating, and spokesperson activities.
(Henry Mintzberg) study of managers at
work…10 interrelated roles…in 3 categories
disseminating, and spokesperson activities.
• Decisional roles include entrepreneur, disturbance
handler, resource allocator, and negotiator.
• Some additional work is also done by managers which
are not purely managerial

25. • Technical skills are job-specific knowledge and
techniques needed to proficiently perform specific tasks.
• Human skills are the ability to work well with other
people individually and in a group.
(Robert Katz ) managers need 3 skills
• Conceptual skills are the ability to think and to
conceptualize about abstract and complex situations.
These skills reflect a broad cross-section of the important
managerial activities that are elements of the 4
management functions

26. Classification of Managers:
• First-line managers
• Middle managers
• Top managers
Managers
Management activities:
• Coordinating
• Efficiency
• Effectiveness

27. Management Functions
• Planning
• Organizing
• Leading
• Controlling
Managers
Management Roles
• Interpersonal roles
• Informational roles
• Decisional roles

28. Management Skills
• Technical skills
• Human skills
• Conceptual skills
Managers

29. • All managers perform certain functions which are
endorsed in their roles and display a set of skills in
their jobs.
Management functions
• They functions can be classified as – Planning,
Organizing, Leading and Controlling.
• These functions are integrated into the activities of
managers throughout the day; its is an ongoing
process and they need not be done in the above
sequence.

30. • Planning involves defining goals, establishing
strategies for achieving those goals, and developing
plans to integrate and coordinate activities.
• Organizing involves arranging and structuring work
to accomplish the organization’s goals.
Management functions
to accomplish the organization’s goals.
• Leading involves working with and through people
to accomplish organizational goals.
• Controlling involves monitoring, comparing, and
correcting work performance.

31. Two historical events are significant to the study of
management:
1) Work of Adam Smith, in book, ‘The Wealth of Nations’,
argued brilliantly for the economic advantages of
division of labor (the breakdown of jobs into narrow,
Management
division of labor (the breakdown of jobs into narrow,
repetitive tasks).
2) Industrial Revolution: The introduction of machine
powers with the division of labor made large, efficient
factories possible.
• Planning, organizing, leading, and controlling became
necessary activities.

32. 1) Globalization
2) Ethics
3) Workforce diversity
Current trends and issues
4) Entrepreneurship
5) Managing an e-business
6) Knowledge management & learning organization
7) Quality management

33. 1. Globalization: Organizational operations are no
longer limited by national borders.
• Managers throughout the world must deal with new
opportunities and challenges inherent in the
Current Trends
opportunities and challenges inherent in the
globalization of business.

34. 2. Ethics:
• Cases of corporate lying, misrepresentations, and
financial manipulations have been widespread in recent
years.
• Managers of firms such as Enron, have placed their own
self-interest ahead of other stakeholders’ welfare.
Current Trends
self-interest ahead of other stakeholders’ welfare.
• While most managers continue to behave in a highly
ethical manner, abuses suggest a need to “upgrade”
ethical standards.
• Ethics education is increasingly emphasized in college
curricula today.
• Organizations are taking a more active role in using
codes of ethics, ethics training programs, and ethical
hiring procedures.

35. 3. Workforce diversity:
• It refers to a workforce that is heterogeneous in
terms of gender, race, ethnicity, age, and other
characteristics that reflect differences.
Current Trends
characteristics that reflect differences.
• Accommodating diverse groups of people by
addressing different lifestyles, family needs, and
work styles is a major challenge for today’s
managers.

36. 4. Entrepreneurship: It is the process whereby an
individual or group of individuals use organized
efforts to pursue opportunities to create value and
grow by fulfilling wants and needs through
innovation and uniqueness, no matter what resources
the entrepreneur currently has.
Current Trends
the entrepreneur currently has.
• Three important themes stand out (in definition):
Pursuit of opportunities
Growth
Innovation

37. 5. Managing in an E-Business World:
• E-business is a comprehensive term describing the
way an organization does its work by using
electronic (Internet-based) linkages with its key
constituencies in order to efficiently and effectively
Current Trends
constituencies in order to efficiently and effectively
achieve its goals.

38. 6. Knowledge Management and Learning
• Organizations: Change is occurring at an
unprecedented rate. To be successful, today’s
organization must become a learning
Current Trends
organization must become a learning
organization—one that has developed the capacity
to continuously learn, adapt, and change.
• Knowledge management involves cultivating a
learning culture where organizational members
systematically gather knowledge and share it with
others in the organization so as to achieve better
performance.

39. 7. Quality Management:
• Quality management is a philosophy of management
that is driven by continual improvement and response
to customer needs and expectations.
Current Trends
to customer needs and expectations.
• The objective of quality management is to create an
organization committed to continuous improvement
in work

40. E-commerce & E-
businessbusiness

41. LET US LOOK AT HOW SOCIAL MEDIA FARED IN 2014

42. • E-commerce covers outward-facing processes
that touch customers, suppliers and external
partners, including sales, marketing, order
taking, delivery, customer service, purchasing of
raw materials and supplies for production andraw materials and supplies for production and
procurement of indirect operating-expense items
like office supplies.

43. • E-business includes e-commerce but also covers
internal processes such as production, inventory
management, product development, risk
management, finance, knowledge managementmanagement, finance, knowledge management
and human resources.

44. among e-commerce horizontally:
enterprise resource planning (ERP),
customer relationship management (CRM),
knowledge management and
supply-chain management systems;
among e-commerce downward:
integration of new technologies with radically
redesigned business processes

45. • E-BUSINEESS – CONCEPETUAL ANAYSIS
• Information needs of a business are organized
into management information system (MIS)
consists of interconnected sub-systems.

46. • E-auctioning: The goods offered on web and quote a
price customers would like to offer. The auctioneer
waits till a certain value is reached or a time limit is
passed. Goods are given to the highest bidder
• E-banking: It allows customers to access their
accounts and execute orders through a simple – to –
use website – pay bills, transfer funds, view accounts
and ATM.

47. • E-Marketing: Internet allows companies to react
immediately to individual customer’s demand with
any loss of time
• E-trading: It can log on to on-line portal – a perfect
solution to investors needs. Also known as
e-broking. Viz. buy and sell stocks

48. • Voice over internet protocol: optimizes the
transmission of voice through internet or other
packet switched network.
• Voice Mail: It is a centralized system of managing
telephone messages for a large group of peopletelephone messages for a large group of people
Eg, Yahoo voice mail, Skype
• Web Conferencing is used to conduct live
meetings or presentations over the internet