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Introduction to
Management
Dr. Ravinarayana K.S.
What is management?
• In today’s tough and uncertain economy, a company needs
strong managers to lead its staff toward accomplishing
business goals.
• But managers are more than just leaders — they’re problem
solvers, cheerleaders, and planners as well.
many
each
roles and have many different
level of management within an
• Managers fulfill
responsibilities at
organization.
• Through this presentation we will discover those roles and
functions, but you also find out the truth about several
common misconceptions about management.
Concept of management
• In simple the process of collecting the
different types of resources, coordinating
them and implementing them in the proper
way to achieve the predetermined goals of
the organization is known as management.
• It can be describe Manage+men+t which
means managing the men tactfully to achieve
the goals.
Concept of Management
• Management is the attainment of organizational goals
in an effective and efficient manner through planning,
organizing, staffing, directing and controlling
organizational resources.
• Organizational resources include men(human beings),
money, machines and materials.
Definition
• Management is the creation and maintenance of an internal
environment in an enterprise where individuals, working in
groups, can perform efficiently and effectively towards the
attainment of group goals.
—Harold Koontz and Cyrill O’Donnell
• Management is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way.
—F.W
. Taylor
• To manage is to forecast and to plan, to organize, to command, to
coordinate and to control.
—Henry Fayol
Concept of Management
“ Management is the art of getting things done
through and with the people in formally
organized groups.”
_ Koontz H.
Management is the process of Planning,
Organizing, Staffing, Directing and
Controlling to accomplish organizational
objectives through the coordinated use of
human and material resources.
Management
• Management refers to the tasks and activities involved in directing an
organization or one of its units: planning, organizing, leading, and
controlling.
• The process of reaching organizational goals by working with and
through people and other organizational resources.
Management
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
Resources {Assets}
7 categories of resources:
⚫ People
⚫ Money
⚫ Time
⚫ Work Procedures
⚫ Energy
⚫ Materials
⚫ Equipment
Goals
• Profit Levels or Maximum cost levels
• Maintenance or growth of financial strength
• Quality standards
• Guest employee & management concerns
• Professional obligations
• Societal concerns (setting up a plant)
CONCEPTS OF MANAGEMENT
The term management has been interpreted in several ways;
• Management as an Activity
• Management as a Process
• Management as an Economic Resource
• Management as a Team
• Management as an Academic Discipline
• Management as a Group
Management as an Activity
• Management is defined as the art of getting things done
through the efforts of other people. Management is a group
activity wherein managers do to achieve the objectives of the
group.
• The activities of management are:
o Interpersonal activities
o Decisional activities
o Informative activities
Management as a Process
• Management consists of getting the objectives of an
organisation and taking steps to achieve objectives. The
management process includes planning, organising, staffing,
directing and controlling functions.
• Management as a process has the following implications:
(i) Social Process: Management involves interactions among
people.
(ii)Integrated Process: Management brings human, physical
and financial resources together to put into effort so as to
maintain harmony among them.
(iii)Continuous Process: Management involves continuous
identifying and solving of problems.
Management Process and Goal Attainment
Management and Organizational
Resources
Management as an Economic
Resource
Management as a Team/Group
• As a group of persons, management consists of all those
who have the responsibility of guiding and coordinating
the efforts of other persons in order to achieve their
goals
Management as an Academic Discipline
• Management has emerged as a specialised branch of
knowledge. It comprises principles and practices for
effective management of organisations. Management
offers a very rewarding and challenging career.
Nature and Characteristics of
Management
• Management is goal-oriented: It is a group goals or
organisational goals. The basic goal of management is to
ensure efficiency and economy in the utilisation of
human, physical and financial resources.
• Management is universal: All types of
organisations,e.g., family, club, university, government,
army, cricket team or business.
• Management is an Integrative Force: It
integrates and coordinates human and other
resources to achieve the goals.
• Management is a Social Process:
Management is done by people, through people and for people. It
is a social process because it is concerned with interpersonal
relations.
• Management is multidisciplinary:
Management depends upon wide knowledge derived from several
disciplines like engineering, sociology, psychology, economics,
anthropology,etc. The vast body of knowledge in management
draws heavily upon other fields of study.
• Management is a continuous Process:
Management is a dynamic and an on-going process. The cycle of
management continues to operate so long as the organization
exists.
• Management is dynamic: Management tries to visualise
problems before they turn into emergencies.
According to Drucker, Managers do not wait for the future,they
make their future.
• Management is Intangible: Management is an unseen or
invisible force. It cannot be seen but its presence can be felt
everywhere in the form of results. However, the managers who
perform the functions of management are very much tangible and
visible.
• Management is an Art as well as Science:
It contains a systematic body of theoretical knowledge and it also
involves the practical application of such knowledge.
Objectives Of Management
Organizational objectives:
• Reasonable profits so as to give a fair return on the capital
invested in business
• Survival and solvency of the business, i.e., continuity.
• Growth and expansion of the enterprise
• Improving the goodwill or reputation of the enterprise.
Objectives Contd..
Personal objectives: Employees
• Fair remuneration for work performed
• Reasonable working conditions
• Opportunities for training and development
• Participation in management and prosperity of the enterprise
• Reasonable security of service.
Objectives Contd..
• Social objectives: Society
• Quality of goods and services at fair price to
consumers.
• Honest and prompt payment of taxes to the
Government.
• Conservation of environment and natural resources.
• Fair dealings with suppliers, dealers and
competitors.
• Preservation of ethical values of the society.
ROLE AND IMPORTANCE OF
MANAGEMENT
• According to Peter Drucker,“ management is a dynamic life
giving element in an organisation, without it the resources of
production remain mere resources and never become
production”.
ROLE AND IMPORTANCE CONTD…
• Achievement of goals:
Management is goal oriented. In order to achieve the
goals, management reconciles the objectives of the
group with those of its members so that each one of
them is motivated to make his best contribution
• Optimum utilisation of resources:
Managers forecast the need for materials, machinery,
money and manpower. Ensures adequate resources plus
no idle resources. They create and maintain an
environment conducive to highest productivity.
• Minimisation of cost:
In the modern era of cut-throat competition no business can
succeed unless it is able to supply the required goods and services
at the lowest possible cost per unit. Managers ensures no wastage.
Reduces costs, improving efficiency, managers enable an enterprise
to be competent to face competitors and earn profits.
• Survival and growth:
An enterprise has to adapt and update itself to the changing
demands of the market and society. Management takes steps in
advance
to meet the challenges of changing environment. SWOT analysis is
conducted. Managers enable the enterprise to minimise the risks
and maximise the benefits of opportunities.
• Generation of employment:
By setting up and expanding business enterprises, managers create
jobs for the people. Managers also create such an environment that
people working in enterprise can get job satisfaction and happiness
which satisfies the economic and social needs of the employees.
• Development of the nation:
Efficient management and quality resources are the most crucial
factors in economic and social development. By producing wealth,
management increases the national income and the living
standards of people. That is why management is regarded as a key
to the
economic growth of a country.
MANAGEMENT AND ADMINISTRATION
• Oliver Sheldon in his “The Philosophy of Management”
defines
‘Administration as a function is concerned with the
determination of the corporate policy, the coordination
of finance, production and distribution,the settlement of
the structure of the organisation, under the ultimate
control of the executive.’
Management is concerned with the execution of the
policy, within the limits set up by administration and the
employment of the organisation for the particular
objects before it.
MANAGEMENTANDADMINISTRATION
MANAGEMENTANDADMINISTRATION
-Difference
SCOPE OF MANAGEMENT
• Production Management:
Planning, organizing, directing and controlling the production
function so as to produce the right goods, in right quantity, at
the right time and at the right cost. It includes the following
activities:
(a) designing the product
(b) location and layout of plant and building
(c) planning and control of factory operations
(d) operation of purchase and storage of materials
(e) repairs and maintenance
(f) inventory cost and quality control
(g) research and development etc.
PRODUCTION MANAGEMENT
• Marketing Management:
Refers to the identification of consumers needs and supplying
them the goods and services which can satisfy these wants. It
involves the following activities:
(a)marketing research to determine the needs and
expectation of consumers
(b) planning and developing suitable products
(c) setting appropriate prices
(d) selecting the right channel of distribution, and
(e)promotional activities like advertising and salesmanship to
communicate with the customers
MARKETING MANAGEMENT
• Financial Management:
Seeks to ensure the right amount and type of funds to business at
the right time and at reasonable cost. It comprises the following
activities:
(a) estimating the volume of funds required for both long-term
and short-term needs of business
(b) selecting the appropriate source of funds
(c) raising the required funds at the right time
(d) ensuring proper utilisation and allocation of raised funds so
as to maintain safety and liquidity of funds and the creditworthiness and
profitability of business, and
(e) administration of earnings
Thus, financial management involves the planning, organising and
controlling of the financial resources.
FINANCIAL MANAGEMENT
• Personnel Management:
Involves planning, organising and controlling the procurement,
development, compensation, maintenance and integration of
human resources of an organisation. It consists of the following
activities:
• (a) manpower planning
• (b) recruitments,
• (c) selection,
• (d) training
• (e) appraisal,
• (f) promotions and transfers,
• (g) compensation,
• (h) employee welfare services, and
• (i) personnel records and research, etc.
Management and
Organizations
Organizations –
• Groups of individuals constantly join forces to accomplish common
goals.
• Sometimes, the goals of these organizations are for profit, such as
franchise restaurant chains or clothing retailers.
• Other times, the goals are more altruistic, such as nonprofit
churches or public schools.
• But no matter what their aims, all these organizations share two
things in common:
• They’re made up of people, and
• certain individuals are in charge of these people.
Requirement of managers
• Managers appear in every organization — at least in organizations
that want to succeed.
• These individuals have the sometimes unenviable task of making
decisions, solving difficult problems, setting goals, planning
strategies, and rallying individuals.
• Managers administer and coordinate resources effectively and
efficiently to achieve the goals of an organization.
• In essence, managers get the job done through other people.
The Intricacies of
management
• No matter what type of organization they work in, managers are generally
• responsible for a group of individuals’ performance.
• As leaders, managers must encourage this group to reach common business
goals, such as bringing a new product to market in a timely fashion.
• To accomplish these goals, managers not only use their human resources, but
they also take advantage of various material resources as well, such as
technology.
• Think of a team, for example. A manager may be in charge of a certain
department whose task it is to develop a new product. The manager needs to
coordinate the efforts of his department’s team members, as well as give them
the material tools they need to accomplish the job well. If the team fails,
ultimately it is the manager who shoulders the responsibility.
Greater the authority and higher the responsibility.
Levels of management differ from one organization to another, depending on the size of
business activity, philosophy of management, span of control and other related factors.
Management Level and Skills
Levels of management
• Two leaders may serve as managers within the same
company but have very different titles and purposes.
• Typical management levels fall into the following
categories:
• Managers at this level ensure that major performance
objectives are established and accomplished.
• Middle managers report to top managers and are in
charge of relatively large departments or divisions
consisting of several smaller units.
• The initial management job that most people attain is
typically a first-line management position, such as a
team leader or supervisor
Top Level
Middle Level
Low Level
Functions of Managers
Planning
Organizing
Staffing
Leading
Controlling
• This step involves mapping out exactly how to
achieve a particular goal.
• After a plan is in place, a manager needs to
organize her team and materials according to her
plan. Assigning work and granting authority are
two important elements of organizing.
• After a manager discerns his area’s needs, he
may decide to beef up his staffing by recruiting,
selecting, training, and developing employees.
• Leading involves motivating, communicating,
guiding, and encouraging.
• He needs to continuously check results against
goals and take any corrective actions necessary
to make sure that his area’s plans remain on
track.
Roles performed by
managers
• A manager is not only a team leader, but he is also a planner,
organizer, cheerleader, coach, problem solver, and decision
maker — all rolled into one.
• These roles fall into three categories:
• Interpersonal: This role involves human interaction.
• Informational: This role involves the sharing and analyzing of
information.
• Decisional: This role involves decision making.
CATEGORY ROLE ACTIVITY
Informational Monitor Seek and receive information; scan periodicals and reports;
maintain personal contact with stakeholders.
Disseminator Disseminator Forward information to organization members
via memos, reports, and phone calls.
Spokesperson Transmit information to outsiders via reports,
memos, and speeches.
Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting
visitors and signing legal documents.
Leader Direct and motivate subordinates; counsel and communicate
with subordinates
Liaison Maintain information links both inside and outside
organization via mail, phone calls, and meetings.
Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate
idea responsibility to others.
Disturbance
Handler
Take corrective action during disputes or crises; resolve
conflicts among subordinates; adapt to environments.
Resource
Allocator
Decide who gets resources; prepare budgets; set schedules
and determine priorities.
Negotiator Represent department during negotiations of union contracts,
sales, purchases, and budgets.
Mintzberg’s
set of ten
roles
Skills needed by managers
• Not everyone can be a manager. Certain skills, or abilities to
translate knowledge into action that results in desired
performance, are required to help other employees become more
productive. These skills fall under the following categories:
Technical
Human
Conceptual
 This skill requires the ability to use a special proficiency or
expertise to perform particular tasks.
 This skill demonstrates the ability to work well in
cooperation with others..
 This skill calls for the ability to think analytically. Analytical
skills enable managers to break down problems into
smaller parts, to see the relations among the parts, and to
recognize the implications of any one problem for others.
Managerial skill
The ability to make business decision and lead
subordinate within a company.
Three most common skill include:
1)Conceptual-the ability to understand concept, develop idea
and implement strategy. Competencies include
communication ability, response behaviour, negotiation
tactics.
2) Human skills - the ability to interact and motivate;
3) Technical - the knowledge and proficiency in the trade.
Managerial skills
Human skills
• The ability to work well with other people
• The ability to motivate, facilitate, coordinate, lead,
communicate and resolve conflicts.
Technical skills
• Knowledge and proficiency in a specific field
• Includes mastery of the methods, techniques and
equipment involved in specific functions such as
engineering, manufacturing or finance.
Robert L. Katyz’s three essential skills
Skills Needed at Different Management
Levels
Basic types of Management Skills
1. Technical Skill – ability to use tools, procedures &
techniques in a specialized area.
2. Human Skill – ability to work with, understand &
motivate people as individual or groups.
3. Conceptual Skill – mental ability to coordinate &
integrate all of an organization’s activities,
especially in the long-term decisions affecting the
organization. It is needed to see the organization
as a whole & recognize how the various factors in
a situation are interrelated so actions taken are in
the best interests if the organization.
26
What is a Role?
A role is a set of responsibilities organised (or
a pattern of behaviours used) to produce
specific outputs related to a specific function/
position.
27
The Managerial R
-
HeonrlyeMsintzberg
28
A. Interpersonal Roles arise directly from the formal authority the
manager has and involve interpersonal relationships.
1. Figurehead role
The manager performs ceremonial and symbolic duties by virtue
of his position. They include: receiving dignitaries, attending
parties, visiting the sick employees, etc.
2. Leadership role
This role is particularly performed by heads of units or
departments. As heads managers are responsible for the work of
people in that unit. As a leader he gives directions, appraises
performance, correct mistakes, disciplines staff, motivates
subordinates, determines rewards and punishments, etc.
3. Liaison role
The manager ensures contacts with other units and outside
agencies on behalf of own unit. He works more as a public
relations officer.
B. Informational Roles. Due to his status and contacts the
manager gets to know a lot of information which may not be
available to his subordinates. This information he uses in a
variety of ways for the effective functioning of his unit.
4. Monitor
As a monitor of information, the manager scans his environment for
information. As a monitor of information he is continuously keeping
his ears open for all sources. Typically, this is done by reading papers
and talking with others.
5. Disseminator
After having acquired information, the manager also passes this
information relatively to his subordinates, superiors and colleagues.
6. Spokesman role
The manager represents his unit and its problems in different
forums. As a spokesman, the manager presents the problem of his
unit to others, and presents information to others who control his
unit and so on.
29
30
C. Decisional Roles. By virtue of the position and authority vested
in him, a manager is continuously making decisions dealing with
the unit's strategy, allocation of resources, solving problems,
etc.
7. Entrepreneurial role
The manager seeks to respond to the changing conditions of
environment. He is constantly looking for new ideas and initiating
development projects.
8. Disturbance handler
He responds to pressures and crisis situations.
9. Resource allocater
This role involves the allocation of resources: human, physical, financial
and other forms of resources to get things done. Allocation of his own
time and powers are important dimension
10. Negotiator
The manager is carrying on negotiations with external as well as
internal agents. The negotiator role is very important as the manager's
capability to negotiate determines the unit's performance.
Category Role Activity Examples
Informational
(managing by
information)
Monitor Seek and acquire
work-related
information
Scan/read trade press,
periodicals, reports; attend
seminars and
training; maintain personal
contacts
Disseminator Communicate/
disseminate
information to
others within the
organization
Send memos and reports;
inform staffers and
subordinates of decisions
Spokesperson Communicate/tra
nsmit information
to outsiders
Pass on memos, reports and
informational materials;
participate in
conferences/meetings and
report progress 31
Interpersonal Figurehead
(managing through
people)
Perform social
and legal
duties, act as
Greet visitors, sign legal
documents, attend
ribbon cutting
symbolic leader ceremonies,
host receptions, etc.
Leader Direct and
motivate
subordinates,
select and train
employees
Includes almost all
interactions with
subordinates
Liaison Establish and
maintain
organization
Business
correspondence,
contacts within participation in meetings
and outside the with representatives
of other divisions or
organizations.
32
Decisional
(managing
through action)
Entrepreneur Identify new Implement innovations;
ideas and initiate Plan for the future
improvement
projects
Disturbance
Handler
Deals with
disputes or
problems and
takes corrective
action
Settle conflicts between
subordinates; Choose
strategic alternatives;
Overcome crisis
situations
Resource
Allocator
Decide where to
apply resources
Draft and approve of
plans, schedules,
budgets; Set priorities
Negotiator Defends
business
interests
Participates in and
directs negotiations
within team,
department, and
organization 33
• A manager does not perform each of these roles
in isolation. In fact all these roles are linked and
in reality it may become difficult to separate
them. Some managers may be performing more
of one set of roles than others. Most managers
irrespective of their levels and nature perform, to
a little degree at least, all these roles.
• In the real world, these roles overlap and a
manager must learn to balance them in order to
manage effectively. While a manager’s work can
be analyzed by these individual roles, in practice
they are intermixed and interdependent.
34
Managerial Skills
• Skill is the knowledge and ability that
enables one to do a job very well.
• Managers need to develop different
skills in order to perform their duties
effectively. There are some basic
skills, which all managers should
possess.
36
Exercise: Managerial Skills
•What skills you require to
perform the role of a
manager?
37
38
Managerial Skills
Robert Katz identified three types of skills to make a manager
effective: technical, human and conceptual.
1.Technical skills involve an understanding of, and proficiency in a
specific kind of activity particularly one involving methods,
processes, procedures and techniques.
2.Human skills reflect the ability of a manager to work effectively
as a team member and build cooperative effort within the team he
heads. Human skills deal with working with people.
3.Conceptual skills involve the ability to see the enterprise as a
whole. It includes recognising how the various functions of an
organisation depend on one another and how changes in one part
affect all the other parts and it extends to visualising the
relationship of the individual business to the organisation, the
community and the political, social and economic forces of the
nation as a whole.
39
Management Skills
40%
30%
10%
50%
45%
40%
10%
25%
50%
- Robert Katz
Managerial Skills
• Communication
• Leadership
• Listening
• Delegation
• Critical Thinking
• Trustworthy
• Decision Making
• Time Management
• Managing Discipline
• Motivation
• Managing conflict
• Managing meeting
• Managing diversity
• Maintaining integrity
40
Books for reference
• Principles of Management – Thomas N Duening and
John.M.Wancevich.
• Management - V.S.P Rao and V.Hari Krishna.

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1. Introduction to Management (1).pptx

  • 2. What is management? • In today’s tough and uncertain economy, a company needs strong managers to lead its staff toward accomplishing business goals. • But managers are more than just leaders — they’re problem solvers, cheerleaders, and planners as well. many each roles and have many different level of management within an • Managers fulfill responsibilities at organization. • Through this presentation we will discover those roles and functions, but you also find out the truth about several common misconceptions about management.
  • 3. Concept of management • In simple the process of collecting the different types of resources, coordinating them and implementing them in the proper way to achieve the predetermined goals of the organization is known as management. • It can be describe Manage+men+t which means managing the men tactfully to achieve the goals.
  • 4. Concept of Management • Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing and controlling organizational resources. • Organizational resources include men(human beings), money, machines and materials.
  • 5. Definition • Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. —Harold Koontz and Cyrill O’Donnell
  • 6. • Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. —F.W . Taylor • To manage is to forecast and to plan, to organize, to command, to coordinate and to control. —Henry Fayol
  • 7. Concept of Management “ Management is the art of getting things done through and with the people in formally organized groups.” _ Koontz H. Management is the process of Planning, Organizing, Staffing, Directing and Controlling to accomplish organizational objectives through the coordinated use of human and material resources.
  • 8. Management • Management refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling. • The process of reaching organizational goals by working with and through people and other organizational resources.
  • 9. Management 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
  • 10. Resources {Assets} 7 categories of resources: ⚫ People ⚫ Money ⚫ Time ⚫ Work Procedures ⚫ Energy ⚫ Materials ⚫ Equipment
  • 11. Goals • Profit Levels or Maximum cost levels • Maintenance or growth of financial strength • Quality standards • Guest employee & management concerns • Professional obligations • Societal concerns (setting up a plant)
  • 12. CONCEPTS OF MANAGEMENT The term management has been interpreted in several ways; • Management as an Activity • Management as a Process • Management as an Economic Resource • Management as a Team • Management as an Academic Discipline • Management as a Group
  • 13. Management as an Activity • Management is defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group. • The activities of management are: o Interpersonal activities o Decisional activities o Informative activities
  • 14. Management as a Process • Management consists of getting the objectives of an organisation and taking steps to achieve objectives. The management process includes planning, organising, staffing, directing and controlling functions. • Management as a process has the following implications: (i) Social Process: Management involves interactions among people. (ii)Integrated Process: Management brings human, physical and financial resources together to put into effort so as to maintain harmony among them. (iii)Continuous Process: Management involves continuous identifying and solving of problems.
  • 15. Management Process and Goal Attainment
  • 17. Management as an Economic Resource
  • 18. Management as a Team/Group • As a group of persons, management consists of all those who have the responsibility of guiding and coordinating the efforts of other persons in order to achieve their goals Management as an Academic Discipline • Management has emerged as a specialised branch of knowledge. It comprises principles and practices for effective management of organisations. Management offers a very rewarding and challenging career.
  • 19. Nature and Characteristics of Management • Management is goal-oriented: It is a group goals or organisational goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. • Management is universal: All types of organisations,e.g., family, club, university, government, army, cricket team or business. • Management is an Integrative Force: It integrates and coordinates human and other resources to achieve the goals.
  • 20. • Management is a Social Process: Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. • Management is multidisciplinary: Management depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology,etc. The vast body of knowledge in management draws heavily upon other fields of study. • Management is a continuous Process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as the organization exists.
  • 21. • Management is dynamic: Management tries to visualise problems before they turn into emergencies. According to Drucker, Managers do not wait for the future,they make their future. • Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible. • Management is an Art as well as Science: It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge.
  • 22. Objectives Of Management Organizational objectives: • Reasonable profits so as to give a fair return on the capital invested in business • Survival and solvency of the business, i.e., continuity. • Growth and expansion of the enterprise • Improving the goodwill or reputation of the enterprise.
  • 23. Objectives Contd.. Personal objectives: Employees • Fair remuneration for work performed • Reasonable working conditions • Opportunities for training and development • Participation in management and prosperity of the enterprise • Reasonable security of service.
  • 24. Objectives Contd.. • Social objectives: Society • Quality of goods and services at fair price to consumers. • Honest and prompt payment of taxes to the Government. • Conservation of environment and natural resources. • Fair dealings with suppliers, dealers and competitors. • Preservation of ethical values of the society.
  • 25. ROLE AND IMPORTANCE OF MANAGEMENT • According to Peter Drucker,“ management is a dynamic life giving element in an organisation, without it the resources of production remain mere resources and never become production”.
  • 26. ROLE AND IMPORTANCE CONTD… • Achievement of goals: Management is goal oriented. In order to achieve the goals, management reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution • Optimum utilisation of resources: Managers forecast the need for materials, machinery, money and manpower. Ensures adequate resources plus no idle resources. They create and maintain an environment conducive to highest productivity.
  • 27. • Minimisation of cost: In the modern era of cut-throat competition no business can succeed unless it is able to supply the required goods and services at the lowest possible cost per unit. Managers ensures no wastage. Reduces costs, improving efficiency, managers enable an enterprise to be competent to face competitors and earn profits. • Survival and growth: An enterprise has to adapt and update itself to the changing demands of the market and society. Management takes steps in advance to meet the challenges of changing environment. SWOT analysis is conducted. Managers enable the enterprise to minimise the risks and maximise the benefits of opportunities.
  • 28. • Generation of employment: By setting up and expanding business enterprises, managers create jobs for the people. Managers also create such an environment that people working in enterprise can get job satisfaction and happiness which satisfies the economic and social needs of the employees. • Development of the nation: Efficient management and quality resources are the most crucial factors in economic and social development. By producing wealth, management increases the national income and the living standards of people. That is why management is regarded as a key to the economic growth of a country.
  • 29. MANAGEMENT AND ADMINISTRATION • Oliver Sheldon in his “The Philosophy of Management” defines ‘Administration as a function is concerned with the determination of the corporate policy, the coordination of finance, production and distribution,the settlement of the structure of the organisation, under the ultimate control of the executive.’ Management is concerned with the execution of the policy, within the limits set up by administration and the employment of the organisation for the particular objects before it.
  • 32. SCOPE OF MANAGEMENT • Production Management: Planning, organizing, directing and controlling the production function so as to produce the right goods, in right quantity, at the right time and at the right cost. It includes the following activities: (a) designing the product (b) location and layout of plant and building (c) planning and control of factory operations (d) operation of purchase and storage of materials (e) repairs and maintenance (f) inventory cost and quality control (g) research and development etc.
  • 34. • Marketing Management: Refers to the identification of consumers needs and supplying them the goods and services which can satisfy these wants. It involves the following activities: (a)marketing research to determine the needs and expectation of consumers (b) planning and developing suitable products (c) setting appropriate prices (d) selecting the right channel of distribution, and (e)promotional activities like advertising and salesmanship to communicate with the customers
  • 36. • Financial Management: Seeks to ensure the right amount and type of funds to business at the right time and at reasonable cost. It comprises the following activities: (a) estimating the volume of funds required for both long-term and short-term needs of business (b) selecting the appropriate source of funds (c) raising the required funds at the right time (d) ensuring proper utilisation and allocation of raised funds so as to maintain safety and liquidity of funds and the creditworthiness and profitability of business, and (e) administration of earnings Thus, financial management involves the planning, organising and controlling of the financial resources.
  • 38. • Personnel Management: Involves planning, organising and controlling the procurement, development, compensation, maintenance and integration of human resources of an organisation. It consists of the following activities: • (a) manpower planning • (b) recruitments, • (c) selection, • (d) training • (e) appraisal, • (f) promotions and transfers, • (g) compensation, • (h) employee welfare services, and • (i) personnel records and research, etc.
  • 39. Management and Organizations Organizations – • Groups of individuals constantly join forces to accomplish common goals. • Sometimes, the goals of these organizations are for profit, such as franchise restaurant chains or clothing retailers. • Other times, the goals are more altruistic, such as nonprofit churches or public schools. • But no matter what their aims, all these organizations share two things in common: • They’re made up of people, and • certain individuals are in charge of these people.
  • 40. Requirement of managers • Managers appear in every organization — at least in organizations that want to succeed. • These individuals have the sometimes unenviable task of making decisions, solving difficult problems, setting goals, planning strategies, and rallying individuals. • Managers administer and coordinate resources effectively and efficiently to achieve the goals of an organization. • In essence, managers get the job done through other people.
  • 41. The Intricacies of management • No matter what type of organization they work in, managers are generally • responsible for a group of individuals’ performance. • As leaders, managers must encourage this group to reach common business goals, such as bringing a new product to market in a timely fashion. • To accomplish these goals, managers not only use their human resources, but they also take advantage of various material resources as well, such as technology. • Think of a team, for example. A manager may be in charge of a certain department whose task it is to develop a new product. The manager needs to coordinate the efforts of his department’s team members, as well as give them the material tools they need to accomplish the job well. If the team fails, ultimately it is the manager who shoulders the responsibility.
  • 42. Greater the authority and higher the responsibility. Levels of management differ from one organization to another, depending on the size of business activity, philosophy of management, span of control and other related factors. Management Level and Skills
  • 43. Levels of management • Two leaders may serve as managers within the same company but have very different titles and purposes. • Typical management levels fall into the following categories: • Managers at this level ensure that major performance objectives are established and accomplished. • Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller units. • The initial management job that most people attain is typically a first-line management position, such as a team leader or supervisor Top Level Middle Level Low Level
  • 44. Functions of Managers Planning Organizing Staffing Leading Controlling • This step involves mapping out exactly how to achieve a particular goal. • After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing. • After a manager discerns his area’s needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. • Leading involves motivating, communicating, guiding, and encouraging. • He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area’s plans remain on track.
  • 45. Roles performed by managers • A manager is not only a team leader, but he is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. • These roles fall into three categories: • Interpersonal: This role involves human interaction. • Informational: This role involves the sharing and analyzing of information. • Decisional: This role involves decision making.
  • 46. CATEGORY ROLE ACTIVITY Informational Monitor Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders. Disseminator Disseminator Forward information to organization members via memos, reports, and phone calls. Spokesperson Transmit information to outsiders via reports, memos, and speeches. Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents. Leader Direct and motivate subordinates; counsel and communicate with subordinates Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings. Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others. Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments. Resource Allocator Decide who gets resources; prepare budgets; set schedules and determine priorities. Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets. Mintzberg’s set of ten roles
  • 47. Skills needed by managers • Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories: Technical Human Conceptual  This skill requires the ability to use a special proficiency or expertise to perform particular tasks.  This skill demonstrates the ability to work well in cooperation with others..  This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others.
  • 48. Managerial skill The ability to make business decision and lead subordinate within a company. Three most common skill include: 1)Conceptual-the ability to understand concept, develop idea and implement strategy. Competencies include communication ability, response behaviour, negotiation tactics. 2) Human skills - the ability to interact and motivate; 3) Technical - the knowledge and proficiency in the trade.
  • 49. Managerial skills Human skills • The ability to work well with other people • The ability to motivate, facilitate, coordinate, lead, communicate and resolve conflicts. Technical skills • Knowledge and proficiency in a specific field • Includes mastery of the methods, techniques and equipment involved in specific functions such as engineering, manufacturing or finance.
  • 50. Robert L. Katyz’s three essential skills Skills Needed at Different Management Levels
  • 51. Basic types of Management Skills 1. Technical Skill – ability to use tools, procedures & techniques in a specialized area. 2. Human Skill – ability to work with, understand & motivate people as individual or groups. 3. Conceptual Skill – mental ability to coordinate & integrate all of an organization’s activities, especially in the long-term decisions affecting the organization. It is needed to see the organization as a whole & recognize how the various factors in a situation are interrelated so actions taken are in the best interests if the organization.
  • 52. 26 What is a Role? A role is a set of responsibilities organised (or a pattern of behaviours used) to produce specific outputs related to a specific function/ position.
  • 54. 28 A. Interpersonal Roles arise directly from the formal authority the manager has and involve interpersonal relationships. 1. Figurehead role The manager performs ceremonial and symbolic duties by virtue of his position. They include: receiving dignitaries, attending parties, visiting the sick employees, etc. 2. Leadership role This role is particularly performed by heads of units or departments. As heads managers are responsible for the work of people in that unit. As a leader he gives directions, appraises performance, correct mistakes, disciplines staff, motivates subordinates, determines rewards and punishments, etc. 3. Liaison role The manager ensures contacts with other units and outside agencies on behalf of own unit. He works more as a public relations officer.
  • 55. B. Informational Roles. Due to his status and contacts the manager gets to know a lot of information which may not be available to his subordinates. This information he uses in a variety of ways for the effective functioning of his unit. 4. Monitor As a monitor of information, the manager scans his environment for information. As a monitor of information he is continuously keeping his ears open for all sources. Typically, this is done by reading papers and talking with others. 5. Disseminator After having acquired information, the manager also passes this information relatively to his subordinates, superiors and colleagues. 6. Spokesman role The manager represents his unit and its problems in different forums. As a spokesman, the manager presents the problem of his unit to others, and presents information to others who control his unit and so on. 29
  • 56. 30 C. Decisional Roles. By virtue of the position and authority vested in him, a manager is continuously making decisions dealing with the unit's strategy, allocation of resources, solving problems, etc. 7. Entrepreneurial role The manager seeks to respond to the changing conditions of environment. He is constantly looking for new ideas and initiating development projects. 8. Disturbance handler He responds to pressures and crisis situations. 9. Resource allocater This role involves the allocation of resources: human, physical, financial and other forms of resources to get things done. Allocation of his own time and powers are important dimension 10. Negotiator The manager is carrying on negotiations with external as well as internal agents. The negotiator role is very important as the manager's capability to negotiate determines the unit's performance.
  • 57. Category Role Activity Examples Informational (managing by information) Monitor Seek and acquire work-related information Scan/read trade press, periodicals, reports; attend seminars and training; maintain personal contacts Disseminator Communicate/ disseminate information to others within the organization Send memos and reports; inform staffers and subordinates of decisions Spokesperson Communicate/tra nsmit information to outsiders Pass on memos, reports and informational materials; participate in conferences/meetings and report progress 31
  • 58. Interpersonal Figurehead (managing through people) Perform social and legal duties, act as Greet visitors, sign legal documents, attend ribbon cutting symbolic leader ceremonies, host receptions, etc. Leader Direct and motivate subordinates, select and train employees Includes almost all interactions with subordinates Liaison Establish and maintain organization Business correspondence, contacts within participation in meetings and outside the with representatives of other divisions or organizations. 32
  • 59. Decisional (managing through action) Entrepreneur Identify new Implement innovations; ideas and initiate Plan for the future improvement projects Disturbance Handler Deals with disputes or problems and takes corrective action Settle conflicts between subordinates; Choose strategic alternatives; Overcome crisis situations Resource Allocator Decide where to apply resources Draft and approve of plans, schedules, budgets; Set priorities Negotiator Defends business interests Participates in and directs negotiations within team, department, and organization 33
  • 60. • A manager does not perform each of these roles in isolation. In fact all these roles are linked and in reality it may become difficult to separate them. Some managers may be performing more of one set of roles than others. Most managers irrespective of their levels and nature perform, to a little degree at least, all these roles. • In the real world, these roles overlap and a manager must learn to balance them in order to manage effectively. While a manager’s work can be analyzed by these individual roles, in practice they are intermixed and interdependent. 34
  • 61. Managerial Skills • Skill is the knowledge and ability that enables one to do a job very well. • Managers need to develop different skills in order to perform their duties effectively. There are some basic skills, which all managers should possess. 36
  • 62. Exercise: Managerial Skills •What skills you require to perform the role of a manager? 37
  • 63. 38 Managerial Skills Robert Katz identified three types of skills to make a manager effective: technical, human and conceptual. 1.Technical skills involve an understanding of, and proficiency in a specific kind of activity particularly one involving methods, processes, procedures and techniques. 2.Human skills reflect the ability of a manager to work effectively as a team member and build cooperative effort within the team he heads. Human skills deal with working with people. 3.Conceptual skills involve the ability to see the enterprise as a whole. It includes recognising how the various functions of an organisation depend on one another and how changes in one part affect all the other parts and it extends to visualising the relationship of the individual business to the organisation, the community and the political, social and economic forces of the nation as a whole.
  • 65. Managerial Skills • Communication • Leadership • Listening • Delegation • Critical Thinking • Trustworthy • Decision Making • Time Management • Managing Discipline • Motivation • Managing conflict • Managing meeting • Managing diversity • Maintaining integrity 40
  • 66. Books for reference • Principles of Management – Thomas N Duening and John.M.Wancevich. • Management - V.S.P Rao and V.Hari Krishna.