The document outlines basic concepts of management, including definitions of management terms, roles, and the historical evolution of management as a discipline. It distinguishes between managers and operatives, highlights the difference between managers and entrepreneurs, and discusses various management approaches such as classical, quantitative, behavioral, and contemporary. Key managerial skills, processes, and the importance of resource optimization and organizational objectives are also emphasized.

1. Lecture Notes
on
Basic Concepts of Management
by
Chandra P. Rijal, PhD in Leadership
Vivek Dhakal, MBA
Nepal College of Management
Nepal
March 11, 2015 1

2. Perspectives of Management
This session will help you to --
understand the management terms like
managers, employees, efficiency and effectiveness,
and management,
learn management process, managerial roles and
essential skills,
understand the various evolutionary concepts of
management as a discipline, and
learn essentials of high performing managers.
March 11, 2015 2

3. ORGANIZATION
 The term ‘organization’ may be referred to as a
systematic arrangement of resources brought
together to accomplish some specific purpose of
an institution.
 These resources are people dominant in an
organizational process climate.
 In addition to people arrangement, efficient and
effective allocation of other resources is also
equally important in management of an
institution.March 11, 2015 3

4. An institution is distinct by its …
* Vision
* Mission
* Objectives
* Goals
* Strategy, and
* Tactics
March 11, 2015 4
An institution
may have its
goal
structure
and
people

5. Operatives
• People who work directly on a job or task
and have no responsibility for overseeing
the work of others.
• Known as employees.
• Operatives in a university college?
March 11, 2015 5

6. Managers …
Individuals in an organization, who direct
the activities of others (operatives)
Questions for discussion:
1. How are managers different from operatives at
schools?
2. How operatives and managers contribute for the
betterment of the institution as a social entity?
March 11, 2015 6

7. MANAGERS Vs. ENTREPRENEURS
¤ Entrepreneurs are the people who pursue business
opportunities, fulfilling needs and wants through
innovation.
¤ Entrepreneurs are the innovative people who give
birth to the new businesses regardless small or big
in size. They are the creators.
¤ All entrepreneurs are managers but all managers
may not be entrepreneurs.
¤ Can you identify five successful entrepreneurs of
Nepal?
March 11, 2015 7

8. Manager Characteristics
Administers
Makes a copy or imitates
Maintains
Focuses on systems and structures
Relies on controls
Short-range view
Asks how and when
Eyes on the bottom line
Accepts the status quo
Classic good soldier
Does things right
March 11, 2015 8
Manager Vs. LeaderManager Vs. Leader
Leader Characteristics
Innovates
Creates original or innovates
Develops
Focuses on people
Inspires trust
Long-range perspective
Asks what and why
Eyes on the horizon
Challenges the status quo
Own person
Does the right things
Warren G. Bennis, Managing the dream: leadership in 21st century, journal of
Organizational Change Management, vol. 2, No. 1, 1989, p. 7

9. Leadership
Influencing people by providing the purpose,
direction, and motivation while operating to
accomplish the mission and improving the
organization.
March 11, 2015 9

10. ORGANIZATIONAL LEVELS & MANAGERS
March 11, 2015 10
Top Managers
Chair, President,
MD, GM
Middle Managers
HODs, Sr. Managers
First-Line Managers
Supervisors
Operatives
Line staff
What do
these people
do?
How can you
relate these
levels in
an institution?

11. MANAGEMENT
The process of getting things done - effectively and
efficiently - through and with other people.
Efficiency: doing something rightly.
Effectiveness: doing something right.
Management: getting done right thing in a right way.
March 11, 2015 11
Example?

12. Efficiency vs. Effectiveness
Means Ends
Efficiency Effectiveness
Goals
Low High
wastage attainment
March 11, 2015 12
Resource
Usage Goal
Attainment

13. Efficiency Vs. Effectiveness
March 11, 2015 13
1Optimalutilizationofresources
2Controlovercostofproduction
3Controloverdefectiveproduction
4Minimizedlevelofidletimeortimelags
5Continuoussystemstandardization
6Continuousprocessimprovement
7Ethicalandenvironmentfriendlyoperations
Management of means of operation Attainment of ends or results of operation
1Lowercostofproduction
2Higherlevelofoperationalproductivity
3Satisfiedemployeesandstakeholders
4Increasedemployeeretention
5Reducedemployeeabsenteeism
6Improvedqualityofworklife
7Enhancedinstitutionalcitizenship
Reduction of wastage Increment of outputs

14. Features of an Effective Management System
March 11, 2015 14
1. Goal
attainment and
maximization
2. Development of
resourcefulness
4. Stakeholder
satisfaction
3. Process
improvement
Bases of
measuring
management
effectiveness

15. MANAGEMENT PROCESS
 The processes aimed at the achievement of the
organization’s stated objectives.
 The French industrialist Henri Fayol wrote that all
managers perform FIVE management activities; planning,
organizing, commanding, coordinating, and controlling.
 In the 1950s, two professors at UCLA recognized FIVE
terms planning, organizing, staffing, directing and
controlling as the framework of management.
 Now condensed to FOUR; Planning, organizing, leading
and controlling.
March 11, 2015 15

16. Management Process Activities
March 11, 2015 16
1. Planning1. Planning
1. Define goals
2. Establish strategy
3. Develop tactics/subplans
3. Leading3. Leading
1. Direct the people
2. Motivate the people
3. Resolve the conflicts
2. Organizing2. Organizing
Determine:
1. What to be done
2. How to be done
3. Who is to do
4. Controlling4. Controlling
Motivate activities
to ensure that they
are accomplished
as planned.
Achieving the
organization’s
stated purpose

17. Mintzberg’s Managerial Roles
Source: Robbins, S. P., Judge, T. A., & Sanghi, S. (2009). Organizational Behavior (13th
ed.). PHI.
Managerial Roles
1. Interpersonal
Figurehead
Leader
Liaison
2. Informational
Monitor
Disseminator
Spokesperson
3. Decisional
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
March 11, 2015 17

18. MANAGERIAL SKILLS COMPETENCIES
A. General Skills
1. Conceptual skills 2. Human skills
3. Technical skills a. Interpersonal skills
b. Political skills
B. Specific Skills
1. Controlling the organization’s environment and resources
2. Organizing and coordinating
3. Handling information
4. Providing for growth and development
5. Motivating employees and handling conflicts
6. Strategic problem solving
CATZ’s Skills
March 11, 2015 18

19. Management as an Integrated Function
March 11, 2015 19
Management
Human Resources Management
R&D and Productions
Management
Financial Management
Marketing Management

20. WHY STUDY MANAGEMENT?
General Reason
1. Gain conceptual insights in general management of
any institution
Specific Reasons
1. To improve organization’s overall management
2. To develop career
March 11, 2015 20

21. Universality of Management
Management is a universal discipline.
Application of management may be modified as per
the contexts and environments but the main essence
of management principles remains same worldwide.
For example, employee motivation is a universal
tool of productivity but the factors considered for
motivation may be different from country to country
and context to context.
March 11, 2015 21

22. Universality of management should be studied in the
following basis
1. Levels in the organizationLevels in the organization: lower, upper, middle
2. Organizational objectivesOrganizational objectives: profit or not-for-profit
3. SizeSize: big or small
4. National bordersNational borders: similar management concepts
5. Decision makingDecision making: synonymous to management
6. Dealing with changeDealing with change: main challenge worldwide
7. Competencies and skillsCompetencies and skills: required worldwide
March 11, 2015 22

23. Evolution of Management as a DisciplineEvolution of Management as a Discipline
March 11, 2015 23
Such a study should be distinctively grouped
into two sections:
1.Historical background
2.Evolution of different approaches to the
evolution of management as a discipline

24. Historical BackgroundHistorical Background
Adam SmithAdam Smith published ‘the wealth of nations’ in 1776
where he argued the economic advantages that the
organizations and society would gain from
implementing the idea of division of labor or job
specialization (breakdown of jobs into narrow and
repetitive tasks)
For example, the way the different people work in a
tailoring shop, or the way different people work in a
building construction site.
March 11, 2015 24

25. Historical Background …Historical Background …
 Industrial revolutionIndustrial revolution started in late eighteenth
century when machine power overtook the human
power and proved to be became more economical
to manufacture goods in factories than at homes
as a result of system standardization and mass
production.
 Such a revolution took place in absence of anySuch a revolution took place in absence of any
universally accepted management principles.universally accepted management principles.
 Only after early 1900s, the initial steps were taken
towards developing management theories.
March 11, 2015 25

26. 2. Evolution of Management Approaches2. Evolution of Management Approaches
March 11, 2015 26
The scholars happen to agree on as many as
fourfour distinctive approaches to assess the
evolution of management as a universal
discipline.
1.1.Classical approachesClassical approaches
2.2.Quantitative approachesQuantitative approaches
3.3.Behavioral approachesBehavioral approaches
4.4.Contemporary approachesContemporary approaches

27. March 11, 2015 27
1. Mr Vivek, follow the same pattern and revise the
remaining slides accordingly and email me ASAP.
2. I am sorry to tell you that I am not convinced to
consider it to circulate among the graduates at this
level of purity. Please make it good enough, ok.
And I am sure you can do it…
3. Please make sure the content does not only look
impressive in presentation, but also has good
scope for the students to learn from it.
4.4. While talking about the approaches, discuss theWhile talking about the approaches, discuss the
contributor, key emphasis, merits and demeritscontributor, key emphasis, merits and demerits
of each approach and also talk with example theof each approach and also talk with example the
present day relevance of such approaches.present day relevance of such approaches.

28. 1. Classical approach
The first studies of management, which
emphasized rationality and making
organizations and workers as efficient as
possible
A. Scientific management
• Born in 1911 when Frederick Winslow
Taylor’s ‘Principles of Scientific Management’
was published
March 11, 2015 28

29. Contd…
• FW Taylor was the father of scientific
management
• Its contents were widely embraced by
managers around the world
• book described theory of scientific
management: use of scientific methods to
define “one best way for a job to be done”
March 11, 2015 29

30. B. General Administrative Theory (GAT)
• An approach to management that focuses on
describing what managers do and what
constitutes good management practice
• Two most prominent individuals behind GAT:
Henri Fayol and Max Weber
• Henri Fayol: first identified five managerial
functions: planning, organizing, commanding,
coordinating and controlling
March 11, 2015 30

31. Contd…
• Max Weber: A German sociologist, developed
a theory of authority structures and relations
based on an ideal type of organization he
called a bureaucracy
• Bureaucracy: a form of organization
characterized by division of labor, a clearly
defined hierarchy, detailed rules and
regulations and impersonal relationships, see
exhibit 2-4, page nu. 29, basic text book
March 11, 2015 31

32. 2. Quantitative approach (QA)
• QA or management science is the use of
quantitative techniques to improve decision
making
• evolved from mathematical and statistical
solutions developed for military problems
during World War II
• After the war was over many of these
techniques used for military problems were
applied to business
March 11, 2015 32

33. Contd…
• one group of military officers, nick named the
Whiz Kids, joined Ford Motor Company in mid
1940s and immediately began using statistical
methods and quantitative models to improve
decision making
• QA???
- Involves applying statistics, optimization
models, information models, computer
simulations and other quantitative techniques
to management activities
March 11, 2015 33

34. 3. Behavioral Approach
A. EARLY ADVOCATES OF ORGANIZATIONAL
BEHAVIOR (OB)
B. HAWTHRONE STUDIES
C. ORGANIZATIONAL BEHAVIOR
March 11, 2015 34

35. A. EARLY ADVOCATES OF
ORGANIZATIONAL BEHAVIOR
• OB: field of study that researches the actions
(behavior) of people at work
• Four stand out as early advocates of the OB
approach: Robert Owen, Hugo Munsterberg,
Mary Parker Follett and Chester Barnard
• Though their contributions were varied and
distinct, all believed that people were the
most important asset of the organization and
should be managed accordingly
March 11, 2015 35

36. B.HAWTHRONE STUDIES
• Most important question to the field of OB
came out of the Hawthorne studies
• It is a series of studies conducted at the
Western Electric Company, Cicero, Illinois
• These studies, started in 1924, were initially
designed by Western Electric industrial
engineers as a scientific management
experiment
March 11, 2015 36

37. Contd…
• wanted to examine the effect of various
lighting levels on worker productivity
• experimental group (exposed to various
lighting intensities) and control group ( under
a constant intensity)
• individual output in the experimental group
would be directly related to the intensity of
light……….
• read about its final conclusion and Elton
Mayo’s workMarch 11, 2015 37

38. 4. Contemporary approach
• Two contemporary management
perspectives- systems and contingency
Systems Theory
• A basic theory in physical science but never
been applied to organized human efforts
• A system is a set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole
March 11, 2015 38

39. • Two basic types: Closed and open systems
• Closed: systems that are not influenced by
and do not interact with their environment
• Open: systems that interact with their
environment
• Today when we describe organizations as
systems, we mean open systems, see exhibit
2-7, page nu. 36, basic text book (organization
as an open system)
March 11, 2015 39

40. Contd…
Contingency approach: or situational approach
which says that organizations are different,
face different situations (contingencies), and
require different ways of managing
• a good way to describe contingency is “ if……
then………..”
• This approach is intuitively logical because
organizations and even units within the same
organization differ
March 11, 2015 40