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INTRODUCTION
TO
MANAGEMENT
CHAPTER 1
Objectives of the chapter
Understanding management concepts
Characteristics of management
Functions of management
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.
Definitions
Louis E Boone & David L Kurtz- The use of people and other
resources to accomplish objectives.
Mary Parker Follet- The act of getting things done through
people.
Frederick Taylor defines Management as the art of
knowing what you want to do in the best and cheapest
way.
Characteristics
Management is a distinct process.
Management is an organized activity
Management aims at the accomplishment of
predetermined objectives.
Management is both a science and an art.
Management is a group activity
Management principles are universal in nature
Management integrates human and other resources.
Concept of management-
Raymond G. Leon
Management by Communication
Management by Systems
Management by Results
Management by Participation
Management by Motivation
Management by Exception
Management by Objectives
Steps in MBO
To establish long-term and short-tem organizational goals
To establish long-term and short-term objectives for each
manager, clarifying the key performance standards
Periodic review of performance
Encouraging managers to accept responsibility
Benefits of MBO
The need for planning will be recognized
It provides for objectives and accountability for
performance
It encourages participative management
It helps in job enrichment
It provides for a good feedback system
FEATURES
Management involves five functions
These functions are organised to achieve organisational
goals.
Management involves effective and efficient use of
resources
FUNCTIONS OF
MANAGEMENT
FUNCTIONS OF
MANAGEMENT
PLANNING
ORGANIZING
STAFFING
DIRECTING
CONTROLLING
PLANNING
• Planning is determining the objectives and formulating the methods
to achieve them. It is more simply said than done. A job well planned
is half done. During planning one needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my objective?
• What resources do I have and do I need to accomplish the same?
• What are the methods and means to achieve the objectives?
• Is this the optimal path?
Types of Planning
•Purposes or missions,
•Objectives-It is the ultimate goal towards which the activities of the
organization are directed
•Strategies-general program of action and deployment of resources
•Policies-general statement or understanding which guide or channel thinking
in decision making
•Procedures-states a series of related steps or tasks to be performed in a
sequential way
•Rules-prescribes a course of action and explicitly states what is to be done
•Programs-comprehensive plan that includes future use of different resources
•Budgets-statement of expected results expressed in numerical terms
Principles of Planning
Take Time to Plan
Planning can be Top to Down or Bottom to Top
Involve and Communicate with all those Concerned
Plans must be Flexible and Dynamic
Evaluate and Revise
Steps in Planning
1. Determining the goals or objectives for the entire
organization.
2. Making assumptions on various elements of the
environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
Types of Managerial Decisions:
Programmed
Non programmed.
Mechanistic-It is one that is routine and repetitive in nature
Analytical-It involves a problem with a larger number of
decision variables
Judgmental-It involves a problem with a limited number of
decision variables, but the outcomes of decision
alternatives are unknown
Adaptive-It involves a problem with a large number of
decision variables, where outcomes are not predictable
Process of Organizing
Determine what is to be done/ Division of Work:
Assign Tasks: Departmentalization:
Link Departments: Hierarchy Development:
Decide how much Authority to Designate/ Authority,
Responsibility and Delegation:
Decide the Levels at which Decisions are to be made /
Centralization vs. Decentralization:
Decide how to Achieve Coordination:
Techniques for achieving
coordination.
Coordination by Rules or Procedures
Coordination by Targets or Goals:
Coordination through the Hierarchy
Coordination through Departmentalization
Using a Staff Assistant for Coordination:
Using a Liaison for Coordination:
Using a Committee for Coordination
Using Independent Integrators for Coordination:
Coordination through Mutual Adjustment:
STAFFING
Definition 1
Selecting and training individuals for specific job functions, and
charging them with the associated responsibilities.
Definition 2
Number of employed personnel in an organization or program.
Also called workforce.
DIRECTING/LEADING
Provides positive and dynamic leadership
Provides maximum opportunities
Provides proper motivation of personnel
Ability to command people
CONTROLLING CONCEPTS
Feed Forward Control-Control that attempts to identify and
prevent deviations before they occur is called feed forward
control, sometimes called preliminary or preventive control.
Concurrent Control-Control that monitors ongoing
employee activities during their progress, to ensure they are
consistent with quality standards, is called concurrent
control.
Feedback Control-In this case, the control takes place after
the action. Sometimes called post-action or output control
Steps in the Control Process
Establish Standards of Performance
Measure Actual Performance
Compare Performance to Standards:
Take Corrective Action
Principles of Effective Control
Effective controls are timely.
Control standards should encourage compliance.
Setting effective standards is important
Use management by exception.
Employees should get fast feedback on performance.
Do not over rely on control reports.
Fit the amount of control to the task.
MANAGERIAL SKILLS
HUMAN
TECHNI
CAL
CONCEPTUAL
TECHNICAL SKILLS
A persons’ knowledge and ability to make effective use of
any process or technique constitutes his technical skills.
For eg: Engineer, accountant, data entry operator, lawyer,
doctor etc.
HUMAN SKILLS
An individuals’ ability to cooperate with other members of
the organization and work effectively in teams.
For eg: Interpersonal relationships, solving people’s problem
and acceptance of other employees.
CONCEPTUAL SKILLS
Ability of an individual to analyze complex situations and to
rationally process and interpret available information.
For eg: Idea generation and analytical process of
information.
MANAGER’S ROLES
Interpersonal role
Informational role
Decisional role
INTERPERSONAL ROLE
Figurehead- ethical guidelines and the principles of
behavior employees are to follow in their dealings with
customers and suppliers
Leader- give direct commands and orders to subordinates
and make decisions
Liaison-coordinate between different departments and
establish alliances between different organizations
INFORMATIONAL ROLE
Monitor- evaluate the performance of managers in different
functions
Disseminator-communicate to employees the organization’s
vision and purpose
Spokesperson- give a speech to inform the local community
about the organization’s future intentions
DECISIONAL ROLE
Entrepreneur- commit organization resources to develop
innovative goods and services
Disturbance handler- to take corrective action to deal with
unexpected problems facing the organization from the
external as well as internal environment
Resource allocator- allocate existing resources among
different functions and departments
Negotiator- work with suppliers, distributors and labor
unions
TYPES OF MANAGERS
FIRST-LINE MANAGERS- often called supervisors stand at
the base of the managerial hierarchy
MIDDLE MANAGERS- heads of various departments and
organise human and other resources to achieve
organizational goals
TOP MANAGERS- set organizational goals, strategies to
implement them and make decisions
WHAT MAKE MANAGERS
SUCCESSFUL?
Hard work
Smart work
Patience
Out of box thinking
Reading and acquiring knowledge
Ethical consciousness
Collaborative relationship
Perseverance
Thank you

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MGT unit 1.ppt Introduction to management concepts and managerial

  • 2. Objectives of the chapter Understanding management concepts Characteristics of management Functions of management
  • 3. 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.
  • 4. Definitions Louis E Boone & David L Kurtz- The use of people and other resources to accomplish objectives. Mary Parker Follet- The act of getting things done through people. Frederick Taylor defines Management as the art of knowing what you want to do in the best and cheapest way.
  • 5. Characteristics Management is a distinct process. Management is an organized activity Management aims at the accomplishment of predetermined objectives. Management is both a science and an art. Management is a group activity Management principles are universal in nature Management integrates human and other resources.
  • 6. Concept of management- Raymond G. Leon Management by Communication Management by Systems Management by Results Management by Participation Management by Motivation Management by Exception Management by Objectives
  • 7. Steps in MBO To establish long-term and short-tem organizational goals To establish long-term and short-term objectives for each manager, clarifying the key performance standards Periodic review of performance Encouraging managers to accept responsibility
  • 8. Benefits of MBO The need for planning will be recognized It provides for objectives and accountability for performance It encourages participative management It helps in job enrichment It provides for a good feedback system
  • 9. FEATURES Management involves five functions These functions are organised to achieve organisational goals. Management involves effective and efficient use of resources
  • 12. PLANNING • Planning is determining the objectives and formulating the methods to achieve them. It is more simply said than done. A job well planned is half done. During planning one needs to ask oneself the following: • What am I trying to accomplish i.e. what is my objective? • What resources do I have and do I need to accomplish the same? • What are the methods and means to achieve the objectives? • Is this the optimal path?
  • 13. Types of Planning •Purposes or missions, •Objectives-It is the ultimate goal towards which the activities of the organization are directed •Strategies-general program of action and deployment of resources •Policies-general statement or understanding which guide or channel thinking in decision making •Procedures-states a series of related steps or tasks to be performed in a sequential way •Rules-prescribes a course of action and explicitly states what is to be done •Programs-comprehensive plan that includes future use of different resources •Budgets-statement of expected results expressed in numerical terms
  • 14. Principles of Planning Take Time to Plan Planning can be Top to Down or Bottom to Top Involve and Communicate with all those Concerned Plans must be Flexible and Dynamic Evaluate and Revise
  • 15. Steps in Planning 1. Determining the goals or objectives for the entire organization. 2. Making assumptions on various elements of the environment. 3. To decide the planning period. 4. Examine alternative courses of actions. 5. Evaluating the alternatives. 6. Real point of decision making 7. To make derivative plans.
  • 16. Types of Managerial Decisions: Programmed Non programmed. Mechanistic-It is one that is routine and repetitive in nature Analytical-It involves a problem with a larger number of decision variables Judgmental-It involves a problem with a limited number of decision variables, but the outcomes of decision alternatives are unknown Adaptive-It involves a problem with a large number of decision variables, where outcomes are not predictable
  • 17. Process of Organizing Determine what is to be done/ Division of Work: Assign Tasks: Departmentalization: Link Departments: Hierarchy Development: Decide how much Authority to Designate/ Authority, Responsibility and Delegation: Decide the Levels at which Decisions are to be made / Centralization vs. Decentralization: Decide how to Achieve Coordination:
  • 18. Techniques for achieving coordination. Coordination by Rules or Procedures Coordination by Targets or Goals: Coordination through the Hierarchy Coordination through Departmentalization Using a Staff Assistant for Coordination: Using a Liaison for Coordination: Using a Committee for Coordination Using Independent Integrators for Coordination: Coordination through Mutual Adjustment:
  • 19. STAFFING Definition 1 Selecting and training individuals for specific job functions, and charging them with the associated responsibilities. Definition 2 Number of employed personnel in an organization or program. Also called workforce.
  • 20. DIRECTING/LEADING Provides positive and dynamic leadership Provides maximum opportunities Provides proper motivation of personnel Ability to command people
  • 21. CONTROLLING CONCEPTS Feed Forward Control-Control that attempts to identify and prevent deviations before they occur is called feed forward control, sometimes called preliminary or preventive control. Concurrent Control-Control that monitors ongoing employee activities during their progress, to ensure they are consistent with quality standards, is called concurrent control. Feedback Control-In this case, the control takes place after the action. Sometimes called post-action or output control
  • 22. Steps in the Control Process Establish Standards of Performance Measure Actual Performance Compare Performance to Standards: Take Corrective Action
  • 23. Principles of Effective Control Effective controls are timely. Control standards should encourage compliance. Setting effective standards is important Use management by exception. Employees should get fast feedback on performance. Do not over rely on control reports. Fit the amount of control to the task.
  • 25. TECHNICAL SKILLS A persons’ knowledge and ability to make effective use of any process or technique constitutes his technical skills. For eg: Engineer, accountant, data entry operator, lawyer, doctor etc.
  • 26. HUMAN SKILLS An individuals’ ability to cooperate with other members of the organization and work effectively in teams. For eg: Interpersonal relationships, solving people’s problem and acceptance of other employees.
  • 27. CONCEPTUAL SKILLS Ability of an individual to analyze complex situations and to rationally process and interpret available information. For eg: Idea generation and analytical process of information.
  • 29. INTERPERSONAL ROLE Figurehead- ethical guidelines and the principles of behavior employees are to follow in their dealings with customers and suppliers Leader- give direct commands and orders to subordinates and make decisions Liaison-coordinate between different departments and establish alliances between different organizations
  • 30. INFORMATIONAL ROLE Monitor- evaluate the performance of managers in different functions Disseminator-communicate to employees the organization’s vision and purpose Spokesperson- give a speech to inform the local community about the organization’s future intentions
  • 31. DECISIONAL ROLE Entrepreneur- commit organization resources to develop innovative goods and services Disturbance handler- to take corrective action to deal with unexpected problems facing the organization from the external as well as internal environment Resource allocator- allocate existing resources among different functions and departments Negotiator- work with suppliers, distributors and labor unions
  • 32. TYPES OF MANAGERS FIRST-LINE MANAGERS- often called supervisors stand at the base of the managerial hierarchy MIDDLE MANAGERS- heads of various departments and organise human and other resources to achieve organizational goals TOP MANAGERS- set organizational goals, strategies to implement them and make decisions
  • 33. WHAT MAKE MANAGERS SUCCESSFUL? Hard work Smart work Patience Out of box thinking Reading and acquiring knowledge Ethical consciousness Collaborative relationship Perseverance