Management involves planning, organizing, leading, and controlling organizational resources and activities. The key functions of management include planning, organizing, staffing, leading, and controlling. Planning involves setting goals and determining how to achieve them. Organizing involves structuring work activities and assigning responsibilities. Leading involves motivating and influencing employees. Controlling involves monitoring performance and taking corrective actions when needed. Effective management aims to achieve organizational goals efficiently and effectively through coordinating the efforts of people and other resources.

1. CHAPTER ONE
BASICS OF
MANAGEMENT
1–1

2.  As per George R. Terry: ”Management is a process of planning,
organizing, actuating and controlling performed to determine
and accomplish the objectives by use of people and resources.
 “Management is the art of “knowing what you want to do”
and then seeing that it is done in the best and cheapest way.
 The process of getting things done, effectively and efficiently,
through and with other people
1–2
Introduction to Management

3.  Efficiency
• Means doing the thing correctly; refers to the relationship
between inputs and outputs; seeks to minimize resource costs
 Effectiveness
• Means doing the right things; goal attainment
• A measure of the appropriateness of the goals chosen (are
these the right goals?), and the degree to which they are
achieved.
1–3
Effectively and Efficiently

4.  There are basically three management objectives.
a) Ensuring organizational goals and targets are met – with least
cost and minimum waste.
b) Looking after health and welfare, and safety of staff.
c) Protecting the machinery and resources of the organization,
including the human resource
1–4
Management Objectives

5.  Management functions are the activities that managers are
supposed to perform as result of the position held in the
organization.
 Regardless of the type of firm, all managers have certain basic
functions-planning, organizing, staffing, leading and controlling.
 The scope and nature of these functions vary from one
management level to another and from firm to firm.
1–5
Management functions

6. Management Functions
1–6
Planning
Organizing
Staffing
Leading
Controlling

7. • Planning is the function of management that involves
setting objectives and determining a course of action for
achieving those objectives.
• Planning requires that managers be aware of
environmental conditions facing their organization and
forecast future conditions
1–7
Planning function

8.  Selection of mission and objectives and the course of action to
attain them.
 It is a decision making process that determines what to do, how
to do it, why it is done, when it is to be done, by whom it is to be
done and with what resources.
 It serves as a bridge that connects the present with the future as
in planning what should be done in the future is determined
today.
1–8
Planning function …

9. Organizing function
1–9
Organising Includes determining
• what tasks to be done
• who is to do them,
• how the tasks are to be grouped,
• who reports to whom, and where
decisions are to be made

10.  Organizing is the process of distributing the work among the
group members and establishing the relationships that are
needed to ensure smooth accomplishment of jobs.
 It involves identification of activities to be carried out, grouping
these activities into working units, assignment of responsibilities
to each unit with corresponding authority.
1–10
Organizing …

11.  Staffing is the process of identifying, assessing, hiring, placing,
developing and evaluating individuals at work.
 Staffing includes recruitment, performance appraisal,
promotions and transferring employees to the proper
departments
1–
11
Staffing Functions

12.  Staffing is the process of ensuring that employees are recruited,
selected, trained, and developed, and rewarded for successful
accomplishment of goals.
 It is a continuous and vital function of management which
involves filling and keeping filled positions in a given
organizational structure
1–12
Staffing…

13. Leading Functions
1–
13
Leading/Directing involves influencing employee to engage in the
work, energizing inspiring and motivating them using vision, power,
incentives, and effective communication skills

14.  Leading/Directing is about inducing or motivating individuals and
groups to exert their effort towards organizational goals.
 In short, it is concerned with influencing people to work hard.
 Leading encompasses three essential elements:
• Motivation
• Leadership and
• Communication.
1–14
Leading …

15. Controlling Functions
1–
15
• Controlling involves ensuring that performance does not
deviate from standards.
• Controlling consists of three steps, which include
1) Establishing performance standards
2) Comparing actual performance against standards, and
3) Taking corrective action when necessary.

16.  Controlling is the process of setting standards, measuring actual
performance results, comparing actual versus plan, identifying
deviations and finally taking remedial actions if the deviation
between actual and plan is significant.
 The main objective is to ensure that events conform to plans and
if not, to bring them back to the normal track.
1–16
Controlling …

17.  Level refers to hierarchical arrangements of managerial
positions in an organization.
 They are steps between subordinates and management
organized to achieve organizational goals.
 The number of managerial levels in an organization depends on
the size of the organization. The larger the size, the more will be
the number of levels and the smaller the organization in size, the
fewer will be its levels
1–17
Levels of management and types of managers

18. 1–
18
Levels of management

19.  Encompasses small group of individuals who are at the highest
level of management and responsible for making decisions and
formulating polices that affect all aspects of the organizations.
 In most cases strategies and general guidelines of activities are
going to be set at this level of management.
 Includes: Board of Directors, General Manager, Chief Executive
Officer, President, Vice President Etc
1–19
Top – Level Management

20.  Establishing broad objectives
 Designing major strategies
 Outlining principal policies
 Providing effective organizational structure that insures integration
 Providing overall leadership and direction
 Making overall control of the organization
 Dealing with external parties such as the government, community,
business etc. Analysing the changes in the external environment and
respond to it
Functions of top management

21.  Middle level of management encompasses all management levels
below top level management and above operational level of
management.
 Middle – level management includes heads of the different functional
areas and their assistants: divisional heads, department managers,
section heads, plant managers, branch managements, etc.
 Managers in this level are specialists and their activities are limited to
a particular area of operation or to a section or department.
1–21
Middle – Level Management

22.  Acting as intermediary between top and operating level
management
 Translating long-term plans of top management into medium
range plans
 Developing specific targets in their areas of responsibility
 Develop specific schedules to guide actions and facilitate control
 Coordinating inputs, productivity and outputs of operating level
managements
Middle – Level Management
major functions

23.  This is the last step of the ladder in the hierarchy of management.
 Their subordinates are non- management workers.
 They direct a small team of workers and keep a check on their
performance so that short-term production and work targets are
achieved.
 The typical titles in this level are section chief, office manager,
foreman, supervisor, etc.
1–23
Operating Level Management (First – Level
Management)

24.  Planning daily and weekly activities and accomplishments
based on the monthly, quarterly, and yearly plans
 Assigning operating employees to specific tasks
 Issuing instructions at the work place, following – up,
motivating and evaluating, workers and reporting to their
superiors.
First – Level Management
major functions

25. Types of Managers
1–
25
.
 Manager - someone whose primary responsibility is to carry out the
management process.
 Is someone who plans, makes decisions, organizes, leads, and
controls human, financial, physical, and information resources.
 Managers are those who are responsible for achieving the
organizational goals in an effective and efficient manner through
proper scarce resource utilization

26.  A manager will focus on planning,
organising, and coordinating
resources to manage tasks and
deliver results.
 A leader will inspire, motivate, and
influence those around them
which will drive people to achieve
their goals and objectives whilst
working towards the bigger
picture.
Manager vs leader

27.  Based on the scope of the activities we have 3 types of manger
 Frontline Mangers : are managers who manage employees who
are themselves are not managers. They are found at the lowest
level of the management level.
 Functional Mangers : supervise with specialized skills in a single
area of operation, such as accounting personnel, finance,
marketing, and production. General Mangers
 General Managers are responsible for the overall operations of a
more complex unit, such as a company or a division.
1–27
Types of Managers

28.  Managers perform the basic managerial functions by playing a variety of
managerial roles. A role is an organized set of behaviors.
 Henry Mintzberg studied a variety of managerial jobs and arrived at the ten most
common roles of top managers. The ten roles are classified into three categories:
However:
• Every manager’s job consists of some combination of roles
• Although we describe them separately for simplicity, these roles actually are
highly interrelated
• The relative importance of each role varies considerably by managerial level
1–28
Managerial Roles

29. Managerial Roles
1–
29

30.  Which arise directly from a manger’s formal authority, involves
interpersonal relationships.
 Managers play the following three interpersonal roles.
• Figure head
• Leader
• Liaison
1–30
Interpersonal Roles

31.  The manger represents the organizations at ceremonial and
symbolic functions.
 It is the most basic and the simplest of all managerial roles.
Eg. If the supervisor attends the wedding of the machine operator is
performing ceremonial duties which is important to the
organization’s image and success. He symbolize management’s
concern for employees, customer and the community.
1–31
Figurehead Role

32.  The leadership role involves responsibility for directing and
coordinating the activities of subordinates in order to accomplish
original objectives.
 Some aspects of the leadership role have to do with staffing: hiring,
promoting. Other aspects involve motivating subordinates to meet
the organization’s needs.
 Still other aspects relate to creating a vision that company
employees can identify with.
1–32
Leadership Role

33.  The liaison role refers to dealing with people outside the
organization, such as clients, government officials, customers,
and suppliers.
 It also refers to dealing with mangers in other departments, staff
specialists, and other departments’ employees.
 In the liaison role, the manger seeks support from people who
can affect the department’s and the organization’s success.
1–33
Liaison Role

34.  Managers should collect, disseminate and transmit information both
from internal and external environment of their organization.
 Effective mangers build networks of contacts for sharing information.
 Because of these contacts, managers emerge as the nerve system
centres of their organizations.
 In this regard, monitoring, dissemination, and spokesperson roles are
described below under this category.
1–34
Informational Roles

35.  The Monitor role involves seeking out, receiving, and screening
information.
 Just as a radar unit scans the environment, managers scan their
environments for information that may affect their
organizations.
 Since much of the information received is oral (from gossip and
hearsay, as well as formal meetings), managers must evaluate
and decide whether to use this information.
1–35
Monitor role

36.  In the Disseminator role, the manager shares information with
subordinates and other members of the organization.
 Sometimes the manager passes along special or “privileged”
information to certain subordinates who would not originally have
access to it and who can be trusted not to let it go further.
 In practice passing information along to subordinates is often
difficult and time consuming.
 Therefore, the manager must decide which and how much
information will be useful.
1–36
Disseminator Role

37.  In the spokesperson role managers transmit information other,
especially those outside the organization, as the official position
of the company.
 The manager is the person who speaks for his or her work unit
or organization to people outside the work unit or organization.
1–37
Spokesperson Role

38.  Are roles where managers are responsible for making calculated and
timely decisions for the company's welfare.
Includes
 Resource allocator
 Disturbance handler
 Entrepreneur
 Negotiator
1–38
Decisional Roles

39.  Managers play the disturbance handler role when dealing with
problems and changes beyond their immediate control.
 Is taking corrective action when the organization faces
unexpected difficulties which are important in nature
 Typical problems include strikes by labor, bankruptcy or major
suppliers, or breaking of contracts by customers.
1–39
Disturbance handler Role

40.  This role involves choosing among competing demands for
money equipment, personnel, and other’s demands on
manager’s time.
 Resource Allocator – being responsible for the optimum
allocation of resources like time, equipment, funds, and also
human resources, etc.
1–40
Resource allocator role

41.  Includes representing the organization in negotiations which
affect the manager’s scope of responsibility.
 In this role mangers meet and discuss their difference with
individuals or groups for the purpose of reaching an agreement.
1–41
Negotiator Role

42.  This role involves designing and initiating planned change in
order to improve the organization’s position.
 Involves all aspects associated with acting as an initiator,
designer, and also an encourager of innovation and change.
 Managers play this role when they initiate new projects,
launch a survey, test a new market, or enter a new business.
1–42
Entrepreneurial Role

43.  In order to be effective a manager must possess and develop
several essential skills.
 Skill is Ability to do something expertly and well. I
 It is meant ability related to performance that is not Necessarily
inborn but which can be developed or acquired.
 Managerial skills are classified into three distinct categories:
Technical, Interpersonal, Conceptual,
1–43
Managerial Skills

44.  Technical skills involve the ability to apply specific methods,
procedures, and techniques in a specialized field.
 Is considered to be very crucial to the effectiveness of lower level
(operational) managers because these persons have direct contact
with employees performing work activities within the firm.
 It is easy to visualize the technical skills of design engineers, market
researchers, accountants, musicians, and computer programmers.
1–44
Technical Skills

45.  Interpersonal skills include the ability to lead, motivate, manage
conflicts, and work with others.
 Whereas technical skills emphasize working with things
(techniques or physical objects.)
 Interpersonal skills focus on working with people.
 Interpersonal skills are a vital part of every manager’s job
regardless of level of function.
1–45
Human/Interpersonal Skills

46.  Conceptual skill involves the ability to view the
organization as a whole and recognize its relationships to
the larger environment (business world).
 In other words, conceptual skill involves visualizing the
different parts of an organization as one big whole and to
understand the wholes interaction with its relevant
environment.
1–46
Conceptual Skills

47. Levels of management and skills needed

48.  Management is regarded as a universal activity because of the
following factors:
1) The basic managerial functions applies In all kinds of organization
a) From small to large and complex
b) In profit making and non-profit making
c) In manufacturing and service giving
d) In all political systems socialist, capitalist, etc.
1–48
Universality of Management

49. 2. Mangers in all levels of organizational hierarchy perform the
same basic managerial functions.
 What varies from level to level is that the various
management levels require different amounts of time for each
function, are different. Except for this all mangers perform the
same functions.
1–49
Universality of Management

50. 3. The principles of management are universal.
• The are applicable to any kind of organization wherever there
is the coordinated effort of human beings.
• The type of enterprise is not significant. The managerial
principles are also transferable from department to
department and from level to level.
1–50
Universality of Management

51. 1. It is a process
2. It is a social process
3. Group efforts
4. Attainment of pre determine objective
5. It is a distinct entity
6. It is a system of authority
7. Universality of management
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Feature of management

52. 8. It is needed at all levels
9. It is a discipline
10. It is a integrative process
11. It is an art as well as science
12. It is a profession
Feature of management

53. a) Financial Management: includes forecasting, cost control,
management accounting, budgetary control, statistical control,
financial planning etc.
b) Human Resource Management: covers the various aspects
relating to the employees of the organisation such as recruitment,
training, transfers, promotions, retirement, terminations,
remuneration, labour welfare and social security, industrial
relations etc
1–53
Scope of management

54. 3. Marketing Management: deals with marketing of goods, sales
promotion, advertisement and publicity, channels of
distribution, market research etc
4. Production Management: includes production planning,
quality control and inspection, production techniques etc.
5. Material Management: includes purchase of materials, issue
of materials, storage of materials, maintenance of records,
materials control etc,
Scope of management…

55. 6. Purchasing Management: includes inviting tenders for raw
materials, placing orders, entering into contracts etc.
7. Maintenance Management: relates to the proper care and
maintenance of the buildings, plant and machinery etc.
8. Office Management: is concerned with office layout, office
staffing and equipment of the office.
1–55
Scope of management…

56.  Science may be defined as a systematized knowledge derived
from observation, study, and experimentation carried on in
order determining the nature and principles of the subject under
study.
 Since management has a structured body of knowledge with its
own distinct concepts and principles that are developed with
reference to the general truths underlying the management
practice, management is a science.
1–56
Is management a science or an art?

57.  Art is a system of doing a particular work tactfully, wisely and
creatively.
 It enables one to make decisions when there is insufficient data and
information or when there is a limit to use secondary sources of
information.
 Art is characterized by using common sense, personal feelings,
beliefs, impulses and trial and error method.
 This leads us to the conclusion that management is an art of
1–57
Is management a science or an art?