Management involves designing and maintaining an environment where individuals work together efficiently to achieve goals. The document discusses the changing role of CEOs, key characteristics of management, major contributors to management thought, and describes management as both a science and an art. It also outlines the five main managerial functions of planning, organizing, staffing, leading, and controlling.

1. Management
 Management is the process of designing and maintaining an environment in which individuals,
working together in groups, efficiently accomplish selected aims.
Present context
 Corporate environment moved from a closed, planned economy into global, wired and
turbulent economy
 CEOs – Required to know domestic market , know the government, make short term plans , able
to handle diversified businesses, implement the vision of the “BABU”
 Harsh Mariwala – Chairman, MARICO : The Indian CEO is facing competition not from MNCs but
from local CEOs.The job of CEO has become more complex
 Tarun Das – CII : Industry needs CEOs who are technologically proficient, analytical and willing to
face challenges head-on
 AzimPremji – Not many indian CEOs have ‘ fire in the belly’
Present context ( contd …)
 AshwinDani, MD of Asian Paints – CEOs should have wide project implementation skills,
international exposure, good communication skills
 Kumaramangalam Birla, AV Birla Group – CEO should be friendly and flexible, but firm and
decisive
 CEO should be young and restless , but unemotional. He is a hands-on manager , but thinks long-
term. He is a techie ,but people oriented. He is multi skilled , experienced and a visionary
 If you deliver ,you are a target for competition. If you don’t , you are asked to leave. Either way ,
you go.
What is “Management”?
 Management as a noun
 Management as a Process
 Management as a group/ team
 Management as a Discipline
 Management as an activity

2. Characteristics
 Intangible
 Goal oriented
 Universal
 A social process
 A Group activity
 A system of authority
 Is an activity
 Dynamic
 Science ( Based on principles that can be generalised) as well as an Art ( application of
knowledge to achieve results)
 Multidisciplinary
Science and Art
Science Art
Advances by knowledge Advances by practice
Proves Feels
Predicts Guesses
Defines Describes
Measures Opines
Impresses Expresses
Management as a “Profession”
 Well defined body of knowledge
 Formal education and training
 Minimum qualification
 Representative body
 Service above self

3.  Ethical code of conduct
Functions of Management
 The five managerial functions around which managerial knowledge are organized: planning,
organizing, staffing, leading, controlling.
External Environment
 The external elements that affect operations can be grouped into:
 – Economic factors
 – Technological factors
 – Social factors
 – Ecological factors
 – Political/legal factors
 – Ethical factors
Time Spent in Carrying Out
Managerial Functions
Managerial Skills
The four skills required of administrators:
 Technical skills
 Human skills
 Conceptual skills
 Design skills
Skills and Management Levels

4. Goals of All Managers
 The aim of all managers should be to create a surplus.
 To establish an environment in which people can accomplish group goals with the least amount
of time, money, materials, and personal dissatisfaction
Top 10 companies in America’s Fortune list, 2010
1. Apple
2. Google
3. Berkshire Hathaway
4. Johnson & Johnson
5. Amazon.com
6. Procter & Gamble
7. Toyota Motor
8. Goldman Sachs
9. Wal-Mart
10. Coca-Cola
Adaptations of companies to 21st Century
 Take advantage of the new information technology—Internet
 Embracing Globalization
 Encouraging entrepreneurship
Entrepreneurship
 Entrepreneurship is a creative process that is centered in the notion of identifying market
opportunities and unmet needs. It is building solutions that meet these needs and bring value to
customers

5. Five Fast Growing Companies 2010
 Google
 Apple
 Facebook
 GE
 IDEO
Productivity
 The output-input ratio within a time period with due consideration for quality.
Effectiveness & Efficiency
 Productivity implies effectiveness and efficiency in individual and organizational performance.
 Effectiveness is the achievement of objectives.
 Efficiency is the achievement of the ends with the least amount of resources (time, money,
etc.).
Managing: Science or Art?
 Managing as a practice is an art; the organized knowledge underlying the practice may be
referred to as a science.
Mintzberg’sManagerial Roles Approach
 3 interpersonal roles
- Figurehead ,Leader , Liaison
 3 informational roles
- Monitor , Disseminator , Spokesperson
 4 decision roles
- Entrepreneur, Disturbance handler,
Resource Allocator , Negotiator

6. Evolution of Management Thought
 Frederick Taylor and Scientific Management
 Fayol, the Father of Modern Operational Management Theory
 Elton Mayo’s Hawthorne Studies
 Recent Contributors to Management Thought, includes Peter Drucker
Hawthorne Studies.
 The improvement in productivity was due to social factors such as morale, satisfactory
interrelationships between members of a work group (a "sense of belonging")
 Effective management—a kind of managing that would understand human behavior.
Recent Contributors to Management Thought
 Peter F. Drucker
 Keith Davis
 W. Edwards Deming
 Joseph M. Juran
 Laurence Peter
 William Ouchi
 Thomas Peters and Robert Waterman
Patterns of Management Analysis: A Management Theory Jungle?
1. The empirical or case approach
2. The managerial roles approach
3. The contingency or situational approach
4. The mathematical or management science approach
5. The decision theory approach

7. 6. The reengineering approach
7. The systems approach
8. The socio technical systems approach
9. The cooperative social systems approach
10. The group behavior approach
11. The interpersonal behavior approach
12. McKinsey's 7-S framework
13. The total quality management approach
14. The management process or operational, approach
The Management Process or Operational Approach

8. Management Process or Operational Approach
 This approach draws together the pertinent knowledge of management by relating it to the
managerial job—what managers do.
 It tries to integrate the concepts, principles, and techniques that underlie the task of
managing.
A Basic Input-Output Model

9. The Five Managerial Functions
 Planning :Selecting missions and objectives and the actions to achieve them, which requires
decision making.
 Organizing: involves establishing an intentional structure of roles for people to fill in an
organization.
 Staffing: involves filling, and keeping filled, the positions in the organization structure.
 Leading: is influencing people so that they will contribute to organization and group goals.
 Controlling : Controlling is measuring and correcting individual and organizational
performance to ensure that events conform to plans
Key concepts:
1. Management

10. 2. Managerial functions
3. Managerial skills in the organizational hierarchy
4. The goal of all managers
5. Characteristics of excellent and most admired companies
6. Three major trends: Advances in technology, globalization, and entrepreneurship
7. Productivity, effectiveness, and efficiency
8. Managing: science or art?
9. Managerial roles
10. Major contributors to management thought
11. Contributors to scientific management
12. Fayol’s operational management theory
13. Elton Mayo’s Hawthorne Studies
14. Management theory jungle : Patterns of management analysis
15. Management process, or operational approach
16. Systems approach to the management process
17. Five managerial functions