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UNIT I
OVERVIEW OF MANAGEMENT
Definition
• According to Henri Fayol.
• “Management is the process of planning,
organizing, leading and controlling the efforts of
organization members and of using all other
organizational resources to achieve stated
organizational goals”.
• It is defined as the art of getting things done by
others
Nature of Management
1. Multidisciplinary in nature –It draws ideas from
various disciplines as economic , statistics,
mathematics, psychology, sociology,
anthropology.
2. Continuous process – continues till the objective
is achieved.
3. Universal activity- management is not
applicable to business undertakings. It is
applicable to political, education,. Required
when group effort is required.
4. Management is science or art
Definite principles of management –art
Predetermined objectives can be achieved by
application of these principles - science
5. Dynamic not static – adapt itself to social
changes.
6. Profession – Established principles of
management are being applied in practice and
involves specialized training
It is governed by ethical code arising out of
social obligations.
7. Group activity – common objective and group effort
8. Aims at obtaining wealthy results – manager’s primary
job is assure productivity through planning, direction
and control.
Rational utilization of available resources to maximize
the profit is the economic function of manager.
9. Implies skills and experiences in getting things done
through people.
Profitable return cannot be achieved without people
co-operation
10. System of authority- power to make others act in
predetermined manner.
Management formalizes a standard set of rules and
procedure to be followed by the sub-ordinates.
11. Intangible – cannot be seen through eyes
and evidenced by quality of organization and
results.
12. Implies good leadership – manager must
have ability to lead and get desired course of
action from the sub-ordinates.
Scope of management
1. FUNCTIONAL AREAS OF MANAGEMENT
Financial management includes forecasting, cost
control, budgetary management, statistical control,
financial planning.
HR management covers marketing management,
production mgt, material management, purchase
management, maintenance management, office
management.
Marketting management includes marketting of
goods, sales promotion, advertisement and publicity.
Production management includes planning , quality
control and inspection.
Material management includes purchase of materials,
issue of materials, storage and maintanence of
records.
2. Subject matter of management- made up of basic
management functions like planning, organizing,
staffing, directing, controlling.
3. Inter-disciplinary approach- commerce,
economics, sociology
4. Principle of management – universal applications
to achieve common goals
5. Agent of change – technique of management can
be improved by proper research and
development.
6. The essentials of management includes scientific
method, human relations, and quantitative
techniques.
What Is Management?
• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output
for the least inputs
– Effectiveness
• “Doing the right things”
– Attaining organizational
goals
1–9
Exhibit 1–3 Effectiveness and Efficiency in
Management
1–10
Functions of Management
Planning
Defining goals, establishing
strategies to achieve goals,
developing plans to integrate and
coordinate activities.
• Planning involves
1. Determination of goal
2. Formulating policy, rules, procedures
3. Forecasting the future based on the past and
present activities.
Organizing
•Arranging and structuring
work to accomplish
organizational goals.
Process
1. Identification and analysis of goals
2. Assignment of duties to individual
concern.
3. Follow up the activities.
Staffing
• The selection and training of individuals for
specific job functions, and charging them with
the associated responsibilities.
• The act of keeping positions filled in
organization structure
1–16
Leading/Directing
Involves motivating subordinates,
influencing individuals or teams as
they work, selecting the most effective
communication channels
• Motivation, leadership, communication are
three important sub functions of directing
• Communication provides a proper information to
the subordinates for improved and effective
management.
• Leadership is the process by which a manager
guides and it influences the work of his
subordinates.
Controlling
Monitoring,
comparing, and
correcting work.
CONTROLLING
• Checking and verifying the activities against
predetermined standards.
• Process of ensuring the proper activities with
planned activities.
PROCESS
• Establishing standards
• Measuring current performance
• Comparing with established standards
• Taking corrective action if deviation is detected
IS MANAGEMENT A SCIENCE OR
AN ART
• Management is the oldest of science and
youngest of art.
• Science :
It is a systematized body of knowledge which
establishes relationship between cause and
effect
Characteristics of science
1. It is the existence of a systematic body of
knowledge with array of principles
2. Based on scientific enquiry.
3. Principle should be verifiable.
4. It is reliable basis for predicting future events.
• Science is classified as exact and inexact
• Management is inexact
1. HR are different in attitudes aspirations and
perceptions. So standard result are not
obtained.
2. Readymade and standard solutions cannot
be obtained.
3. Mgt is complex and unpredictable.
4. Every organization decisions are influenced
by environment . But the environment is so
complex and unexpected.
• Art : bringing about of desired results through
the application of skills.
• Entirely on the inherent capacity of a persons.
• Learned from practice and experience.
Important characteristics of mgt
• Application of science. Putting principles into
mgt.
• Practice or experiences is needed to become
skilful.
• It is undertaken for accomplishing an end
through deliberate efforts.
Management is the art
• Because
1. Involves the use of practical knowledge and
personal skills.
2. Creative.
3. Implies capacity to apply accurately the
knowledge to solve the problems.
• Management is both science and art
• Science – because contain general principles.
• Art- requires certain personal skills
Management vs Administration
1. Admn is above mgt
• According to Oliver sheldon, Milward Lansberg
• Admn is concerned with decision- making and
policy formulation
• Mgt is concerned with execution laid down by
admn
2. Admn is a part of mgt
• Admn become a subordinate function to
overall mgt function- according to E.F.L. Brech
3. Admn and mgt are same
S.No Admn Mgt
1. Top level function Middle or lower level function
2. Owner Employee
3. Concerned with decision
making
Concerned with execution of decision
4. Acts through mgt Acts through the organisation
5. Lay down board policies and
principles for guidance
Executes these policies into practice
6. Function is broad and
conceptual
Narrow and operation
7. External factors are affecting
the decision
Internal factors affecting the decision
8. Employer – Employee
relation
Entrepreneurs and owners
Between employee
S.No Entrepreneur Manager
1. Starts business Runs the business
2. Considers various risk Does not get any risk
3. Driven by opportunity or
demand in the present market
Uses present available resources to
produce the final product
4. Rights to implement the changes Can only follow the rules
5. Owner Hired
6. All kinds of rewards from public Fixed rewards in term of salary.
7. More risk taker Less risk taker
8. Desire for the control over the
business
Delegation of authority
9. One man army Leader of team
10. Aims to implement creativity and
innovation
Establish and preserve the status of
company
11. Informal and flexible Not informal
12. Sensitive in decision making Collect and wait for advice
13. Full responsible for accident and
failures
Avoids mistakes and failures
Types of Managers/Managerial levels/Types of
Management
Top level
Managers
Middle level Managers
Lower level Managers
Top level management or manager
 Having the authority and ultimately responsible for the
entire organisation
 Titles such as executive vice president,president,managing
director,chief operating officier,chief executive officier or
chairman of the board
 Main functions are
*Formulate the goals, policies & budgets
*Appoint the top executives
*Provide the overall direction & leadership of the company
*Decide the distribution of profits
Middle level managers
• Directly supervise other managers below them
• Titles such as department head, project leader, plant
managers or division manager
• Main functions are
*Monitor & control the operating performance of sub units
and individual managers
*Implement the overall organisational plans
*Train, motivate & develop the supervisory level
*Implement changes or strategies by top managers
*Coordinate among themselves to integrate the various
activities of a department
Lower level or supervisory managers
• Having the least authority
• Responsible for work of operating employees
• Main functions are,
*Train & develop the efficiency of workers
*Assign job to workers
*Give orders & instructions
*Maintain discipline & good human relations among workers
*Report feedback information about workers
Managerial roles or roles of manager
Roles of manager classified into
1.Interpersonal roles
a)Figurehead
b)Leader
c)Liasion
2.Informational roles
a)Monitor
b)Disseminator
c)Spokesperson
3.Decisional roles
a)Entrepreneur
b)Disturbance handler
c)Resource allocator
d)Negotiator
Interpersonal roles
1.Figurehead role
ceremonial and symbolic duties such as
Greeting visitors and signing legal documents
2.Leader
Directs and motivates subordinates
3.Liasion
Maintains the information link both inside &
outside organisation.
Informational roles
1.Monitor
Person who seeks & receives information &
maintains the personal contact with stakeholder.
2.Disseminator
Forward information to organisation members via
memos, reports and phone calls
3.Spokesperson
Transmits the information to outsiders via reports,
memos and speeches
Decisional roles
1.Entrepreneur
Initiates improvement in project & identifies new ideas
2.Disturbance handler
Takes corrective action during disputes
3.Resource allocator
Decides who gets resources and determines priorities
4.Negotiator
person who represents the department during
negotiation
Managerial skills
1.Technical Skill
2.Human Skill
3.Conceptual Skill(design and problem solving)
Technical skills
• Reflects both understanding and a proficiency
in a specialized field such as engineering ,
accounting or manufacturing
• More important at low level mgt.
Human skills
• Ability of the manager to work effectively as a
group member and to build cooperative team.
• Know how to communicate, motivate, lead,
inspire, enthusiasm and trust.
Conceptual skills
• Also called design and problem solving skills.
• To understand how its various parts and
function mesh together.
• To foresee how changes in any one of them
may affect all of the others.
Evolution of Management Theory
Pre-scientific or pre-classical management period
Classical management theory
Administrative management of Fayol
Scientific management of Taylor
Bureaucratic management theory
Neo classical or behavioural theory
Modern theory
Systems approach
Contingency approach
1.Pre-scientific management period
 Certain pioneers tried to challenge the traditional character of
management by introducing new ideas & approaches.
1.Robert Owen (1771- 1858)
 Group Textile mills in lanark,scotland
 He used Ideas of human relations
 Promoter of co-operative and trade union in England
 Worker’s performance based on working condition & treatment the
workers
 Shorter working hours, housing facilities, training workers in
hygiene, education of their children, provision of canteen
 Father of personnel management
Pre-scientific management period
2. Charles Babbage (1792- 1871)
Father of modern computing
Professor of maths at Cambridge university
Manufactures little use of science &
mathematics
Accurate observation, Measurement and precise
knowledge for taking business decision
Profit sharing to improve productivity.
Pre-scientific management period
3. Henry Robinson Towne (1844- 1924)
President of the famous lock manufacturing
company Yale and town
Combination of engineers and economists as
industrial managers
Successful management of industrial workers.
2. CLASSICAL MANAGEMENT THEORY
*Developed industrial revolution when new
problems related to the factory system started to
appear.
*Managers don't know how to train the
employees and don't know how to deal with
labour dissatisfaction.
*As a result classical management theory developed
to find “one best way” to perform and manage
task.
• SCIENTIFIC MANAGEMENT THEORY
• ADMINISTRATIVE MANAGEMENT THEORY
• BUREAUCRATIC MANAGEMENT THEORY
Henri Fayol's administrative management theory
 It concentrates on developing the organisational structure that leads to
high efficiency & effectiveness
 Father of modern theory of general and industrial management
Book-“The general and industrial administration” in which Fayol
divides the industrial activities into 6 categories
 Technical (production, manufacture)
 Commercial (buying, selling, exchange)
 Financial (search for and optimum use of capital)
 Security (protection of property and persons)
 Accounting (balance sheets, cost statistics)
 Management (Planning, Organising, Co-ordinating, Directing,
Controlling)
Henri Fayol's administrative management theory
 DIVISION OF WORK OR SPECIALIZATION(divide the work & already work
allotted)
 AUTHORITY AND RESPONSIBILITY(power & superior)
 DISCIPLINE(all levels – smooth running)
 UNITY OF COMMAND (receive orders and instructions from superior)
 UNITY OF DIRECTION (group of activities having one head and one plan, coordinate
work)
 SUBORDINATION OF INDIVIDUAL TO GENERAL INTEREST (earn money)
 REMUNERATION (employees and employers, satisfy the workers)
 CENTRALIZATION (power is distributed subordinates)
 LINE OF COMMAND/SCALAR CHAIN (instructions & orders from top to bottom)
 ORDER (material & social)
 EQUITY (treatment employees equally)
 STABILITY OF STAFF(turnover equally)
 INITIATIVE (thinking & execution of plan, employees idea also concern)
 ESPRIT DE CORPS (union)
1.Division of work
• Divide the work in proper way with reference to time
• Workers on the same job acquire the sureness and
accuracy which increases the output
2.Authority and responsibility
• Authority- power given to the person to get the work
from the subordinate
• Responsibility –amount of work expected by the
supervisors
3.Discipline
• Essential for smoothing running of organization
• To Fayol discipline will result in good leadership
• Fair agreement and judiciously enforced penalties for violations
4.Unity of command
• Orders and instruction from one supervisor
• Multiple commands-conflict
• Good management should avoid dual command
5.Unity of direction
• Each group of activities having the same objective with one head and
one command.
6.Subordination of individual interest to general interest
• Employee earn money to meet his personal needs
• But employee should give importance to organization interest
• Organization’s interest -should develop and progress
7.Remuneration of personnel
• Wage payment system should satisfy the employee
8.Centralization
• Centralized- power is concentrated with one person
• Decentralization- power is fully distributed
• Effective management
• Quick decision
9.Scalar chain
• Instruction and order should be from top management to bottom
management
10.Order
• Material order- a place for everything and everything in it place
• Social order- a place for every one and everyone has place
11.Equity
• Treatment of employee equally
• Helps to achieve the goal
12.Stability of tenure of personnel
• High employee turnover rate is not good for the effective
functioning of any organization
13.Initiative
• Concern with thinking and execution of plan
• Come forward with new ideas they must be encouraged by
supervisors
14.Esprit- de- corps
• Union is strength
• Employee should be harmony (synchronization) and unity
Scientific management theory
 Developed for - Increase productivity & efficiency
 One best way for a job to be done
 Examining how the work process was actually accomplished
 Scrutinizing the skills of the workforce
1.Frederick W.Taylor (1856-1915)
 Father of scientific management
 Bethlehem steel plant
 Time and motion study – eliminating unnecessary motions
 Shoveling & pig-iron handling
 1898,47.5 ton daily & 12.5 ,500 - 140
Scientific management theory
2.Henry Gantt (1861-1919)
 Bar graph – planned & completed work of each stage
of production
 Based on time instead of quantity, volume or weight,
the visual display chart is used.
 Daily work, bonus
Scientific management theory
F.W.Taylor’s scientific management:
 Labor at Midvale steel company in U.S.A 1878
 Became Chief engineer 1884
 Publised Journal “price rate system” and “ shop management”
 Book “principle of scientific management” in 1911
 Scientific approach four types
1.Study each part of the task scientifically & develop the best
method
2.Carefully select workers & train them
3.Cooperate fully with workers
4.Divide the work and responsibility
Bureaucratic management theory
Max Weber (1864 – 1920)
 German sociologist
 Specific rules were followed was important
 He thought that authority should do something which was the
part of person’s job & passed from individual to individual.
 3 types of authority,
1.Traditional –custom or tradition(king,queen)
2.Charismatic-special personal qualities (gandhi, nehru,
Dr.A.P.J Abdual Kalam)
3.Rational – position held by the supervisor (police officer,
executives, supervisors)
Bureaucratic system of administration
is based on the following characteristics
 A well-defined hierarchy (higher control to lower level)
 Division of labor and specialization (all responsibilities &
particular task)
 System of written rules and regulations
 Impersonal relationship between managers and employees
 Selection and evaluation system
 Records
3.Behavioral management theory
 Pointed out Psychology and sociology in
understanding of individual and group behaviour in
an organisation
1.Mary Parker Follett(1868-1933)
*Management ignores the employee’s contribution to
the organisation.
*managers are needed to coordinate and harmonize
group effort rather than force and compel people.
2.Elton Mayo(1880-1949)
*Conducted experiments known as Hawthorne studies
 Informal groupings
 Informal relationship
 Patterns of communication
 Patterns of informal leadership
3.Hawthorne studies(1924-1932)
(i)Illumination experiment
(ii)Relay assembly test room experiment
(iii)Bank wiring test room experiment
(iv)Mass interview programme-upward communication in an
org creates a positive attitude in the work environment
4.Modern Theory
i)System approach
*Based on belief that organisation can be visualized as system of interrelated
parts or subsystems operate as a whole to achieve common goal.
1.Input 2.Transformation process 3.Output
4.Feedback 5.Environment
The following terminologies important for system approach,
(i)closed system –interacts less with external environment
(ii)Open system - interacts more with external environment
(iii) Entropy-breakdown overtime
(iv)Synergy-making the output is higher
*Managerial levels based on system Approach
1.Technical level 2.organizational level 3. institutional level (activities of
org)
ii) Contingency approach
*Contingency approach/Situational approach
*Depends on experience and judgement of manager in a given
organisational environment.
Task of manager is to identify which technique will be suitable
in particular situation under particular circumstances.
 Characteristics of environment
 Determine the design of an organization’s structure and control
systems
 Organizations in stable environment(centralized authority)
 Organizations in changing environment(decentralized authority)
Types of Business organisation
• Classified into 2 types,
1.Individual organisation
i)Sole trades
ii)partnership
iii)Joint stock company
iv)Co-operative
v)Multinational companies
2.Government organisation
i)Departmental undertaking
ii)Public corporation
iii)Government company state enterprises
1.Sole Trading
• Business unit owned and controlled by a single individual
called sole trading concern
• Use his own savings for his business
• Purchases, sells and maintains accounts on his own
• He alone enjoys all profits & losses in business
• Sole trader-person who contributes capital and manages the
business
• According to Wheeler, The sole proprietorship is that form
of business organisation which is owned & controlled by a
single individual. He receives all the profits & risks all of
his property in the success or failure of the enterprise.
Characteristics of sole proprietorship
1.One man ownership and control
2.Unlimited liability(responsiblity)
3.Enjoyment of entire profit
4.No separate legal entity
5.Simplicity
6.Self employment
7.Secrecy
Advantages
*Easy to form & close the business
*Easy for decision making
*Full control of business activities
*Promotes self employment of individual
*Liberal legal formalities to start the business
*Easy to expand or reduce the size of the business
*Easy to accessibility of consumers
*Easy to maintain healthy relations with employee
Disadvantages:
1.Limited resources
2.Short life
3.Lack of consultation
4.Risk of entire loss
5.Uncertainty
Partnership
• Association of persons who agree to combine their
financial resources & managerial abilities to run a
business & share profits in an agreed ratio
• Need for expansion of business with more capital,better
supervision and control,division of work and spreading
of risk.
• According to Indian partnership act, The relation between
person who have agreed to share the profits of a business
carried on by all or any of them acting for all.
Features of partnership
1.Agreement
2.Multiplicity of person
3.Lawful business-legal
4.Sharing of profits
5.Contractual relations
6.Mutual agency-dual role in orgnisation
7.Unlimited liability
8.Registration
9.Common management
10.Utmost good faith
Kinds of partners
1.Active partner-represents all others in business
orgnisation
2.Sleeping or dormant partner- does not express
his intention
3.Normal partner
4. Partner in profit only
5. Partner by estoppel- for outsiders belief
6.Sub-partner-strange to contact
7.Secret partner- whose name is not disclosed
8.Minor as a partner-below 18 years.
Rights of partner
1.Right to express his option
2.Right of participation
3.Right of access to books
4.Right to share profits
5.Right to get interest on the capital
6.Right of idemnity -protection
Advantages:
*Easy to formation
*Registration is not compulsory
*Larger financial resources
*Promptness in decision making
*Risk of business is shared by more persons
*More possibility of growth & expansion of business
*Close supervision is possible and reduces wastages.
*Easy dissolution
Disadvantages:
*Unlimited liability increases the dissolution of
firm
*Lack of harmony among partners
*Difficulties in expansion & modernization
*lack of public faith
*Limited resources
*Limitation on transfer of share
Joint stock company
• As per the definition, there must a group of persons
who voluntarily agree to form a company.
• Once formed the company becomes a separate legal
entity with a distinct name of its own.
• Its existence not affected by change of members.
• According to lord justice lindleg, By a company,
we mean an association of many persons who
contribute money or money’s worth to a common
stock and employ it in some trade or business and
also share the profit and loss as the case may be
arising there from.
Advantages
*Limited liability
*More stable
*Shares are freely transferable
*Company can easily expand
*Company is charged lesser amount of taxes
*Democratic setup is made
*possible for large financial resources
Disadvantages
*Time consuming legal formalities
*Lack of motivation
*difficult to maintain resources
*Promotion of frauds
*Delayed decisions and actions
Types of companies
(i)On the basis of formation
(a)Statutory company-by special act of parliament
(b)Registered company- companies act
(c)Government company- 51 % is held by the central
government
(ii)On the basis of public interest
(a)Private limited company-minimum paid up capital
(b)Public limited company- large scale
(iii)On the basis of control
(a)Holding company -for ex if company A hold more than
51% of paid up share capital of company B
Then A- holding company, B- subsidiary company
(b)Subsidiary company
(iv) On the basis of Nationality
(a)Indian company
(b)Foreign company
(v) On the basis of Area
(a)National company
(b)Multi national company
Private limited company
• Minimum paid up capital is Rs.1,00,000
• Minimum number of members is 2
• Limits the number of its members to 50
• Restricts the right to transfer the shares
• Prohibits any invitation to the public to
subscribe the shares
Public limited company
• Minimum paid up capital is Rs.5,00,000
• Minimum number member is 7,the maximum
is unlimited
• Capital is collected from the public by issuing
shares
• No restriction on the transfer of shares
• Company should send the financial statement
to members and registrar
• Must have 3 directors
• Necessary to follow certain legal formalities
Public Enterprises
• Form of business organisation owned and
managed by the state government or any other
public authority(departmental undertaking)
• Owned and controlled by local or state or central
government
• Whole or most of the investment is made by the
government
• According to N.N.Mallya, Public enterprises are
autonomous or semi autonomous corporations and
companies established, owned and controlled by the
state and engaged in industrial and commercial
activities
Characteristics of public enterprises
1.Financed by government
2.Financial Independence
3.Government management
4.Public services
5.Legislative control
6.Monopoly enterprises(eg: Railway, post &
energy production enterprises)
Merits:
*Helps in implementing government policy
*Complete government control
*Income for government
*Useful for developing enterprises
*Funds are properly used
Demerits:
*Excessive government interference
*Shortage of competent staff
*Tax burden to public
*Delay
Public corporation
• Created by special act of state or central
government (ONGC,FCI)
• Such act defines the power, duties, privileges
and pattern of management of these organisation
• Power of government but possessed with
flexibility & initiative of private enterprises
Merits:
*Finance from government
*Internal autonomy
*Free from government interference
*Protect public welfare
*Service to society
*Flexibility
Demerits:
*Limited autonomy
*Misuse of power
*Inefficient operation
*Lack of interest
*Government control
Cooperative Organization
• It is a voluntary association of persons for
mutual benefits and it aims are accomplished
through self help and collective effort.
• Every state government has appointed a
registrar of co-operative societies for
registering controlling and supervising the
societies.
Organization culture
• Can be characterized in a similar way we
classify people, for example rigid, friendly.
• Attributes and behavior can be predicated with
the use of these behaviors.
• Organization culture prescribes norms and
procedures for the employee’s actions towards
client’s competitors, supervisors,
subordinates.
• Organization culture is a system of shared
assumptions, values, beliefs which govern how
people behave in organization.
• These shared values have a strong influence on
the people in the organization and dictate how
they dress, act, and perform their jobs.
• This culture provides guidelines and
boundaries for the behavior of the people in
one organization.
• The attributes and behavior of the people in
one org will vary in other organization.
Definition
• A system of informal rules that spells out how
people have to behave most of the time.
- Deal and Kennedy
• Organisational culture is a relatively uniform
perception held by organisation. It has common
characteristics.
- Stephen P. Robbins
Characteristics of organizational
culture
• Risk tolerance- employees are encouraged to
be innovative and risk taking
• Direction – org culture creates clear objective
and performance expectations.
• Unit integration – org culture leads to
coordination
• Management contract – clear communication
assistance and support to sub-ordinates
• Identity – members identify the org as whole
rather than particular work group
• Reward system- salary increase, incentives,
promotions
• Conflict tolerance – conflicts and criticism openly
• Control – rules and regulation to control employ
behaviour
• Communication patterns- org communication are
restricted to the hierarchy of authority
• Individual initiative – resposibility , freedom
Sources of culture
• Rituals
• Language
• Material symbols
• Stories
1.Rituals – are repetitive sequence of activities
which express and reinforce the key values of
organization
• If an organization organizes annual award
meeting, sales persons are awarded for
achieving the targets
• The meeting conveys achieving target and
performing better through hard work is
important
Language
• Org develop unique terms describe
equipment, offices, a key personnel supplies
customers or products that relates to business.
• C2C
Material symbol
• Org may provide car, bungalow, holiday in
foreign etc.
• It conveys to the employee the importance of
people in the organization.
Stories
• Parents tell stories of outstanding personalities
to children and children try to transfer them
into practice
• Organisation are also conveying the stories of
successful organisations through seniors which
have a great influence in building culture
Components of culture
• Support orientation
• Rules orientation
• Innovation orientation
• Co-ordination orientation
Types of org culture
1. Subculture– set of values shared by a minority
2. Dominant culture-
• majority of the organizational members share
the core value.
• This kind of sharing of the core values is the
dominant culture.
• It is macro(general) view of culture
3. Strong culture
Core values of the org are being accepted and followed
with commitment by more numbers of the org.
4. Weak culture
core values of the org are not being accepted and
followed with commitment by more members of the
organization.
5. Authoritarian culture:
leader of the org exercise full control over subordinates
6. Participative culture
superiors motivate their subordinates to attain the goals
7. Normative culture
The employee behave in an ideal way and strictly adhere to
the policies of the organization.
8. Pragmatic culture
customer satisfaction is the main motive of the employee.
9. Academy culture
• Hire skilled individual
• Roles and responsibilities are delegated according to the back
ground , educational qualification and work experiences.
10. Fortress culture
• Employee are not sure about their longevity
• Such organization follows the fortress culture
• The employee are terminated if the organization is not
performing well.

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Unit 1_introduction.pptx

  • 1. UNIT I OVERVIEW OF MANAGEMENT
  • 2. Definition • According to Henri Fayol. • “Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals”. • It is defined as the art of getting things done by others
  • 3. Nature of Management 1. Multidisciplinary in nature –It draws ideas from various disciplines as economic , statistics, mathematics, psychology, sociology, anthropology. 2. Continuous process – continues till the objective is achieved. 3. Universal activity- management is not applicable to business undertakings. It is applicable to political, education,. Required when group effort is required.
  • 4. 4. Management is science or art Definite principles of management –art Predetermined objectives can be achieved by application of these principles - science 5. Dynamic not static – adapt itself to social changes. 6. Profession – Established principles of management are being applied in practice and involves specialized training It is governed by ethical code arising out of social obligations.
  • 5. 7. Group activity – common objective and group effort 8. Aims at obtaining wealthy results – manager’s primary job is assure productivity through planning, direction and control. Rational utilization of available resources to maximize the profit is the economic function of manager. 9. Implies skills and experiences in getting things done through people. Profitable return cannot be achieved without people co-operation 10. System of authority- power to make others act in predetermined manner. Management formalizes a standard set of rules and procedure to be followed by the sub-ordinates.
  • 6. 11. Intangible – cannot be seen through eyes and evidenced by quality of organization and results. 12. Implies good leadership – manager must have ability to lead and get desired course of action from the sub-ordinates.
  • 7. Scope of management 1. FUNCTIONAL AREAS OF MANAGEMENT Financial management includes forecasting, cost control, budgetary management, statistical control, financial planning. HR management covers marketing management, production mgt, material management, purchase management, maintenance management, office management. Marketting management includes marketting of goods, sales promotion, advertisement and publicity. Production management includes planning , quality control and inspection. Material management includes purchase of materials, issue of materials, storage and maintanence of records.
  • 8. 2. Subject matter of management- made up of basic management functions like planning, organizing, staffing, directing, controlling. 3. Inter-disciplinary approach- commerce, economics, sociology 4. Principle of management – universal applications to achieve common goals 5. Agent of change – technique of management can be improved by proper research and development. 6. The essentials of management includes scientific method, human relations, and quantitative techniques.
  • 9. What Is Management? • Managerial Concerns – Efficiency • “Doing things right” – Getting the most output for the least inputs – Effectiveness • “Doing the right things” – Attaining organizational goals 1–9
  • 10. Exhibit 1–3 Effectiveness and Efficiency in Management 1–10
  • 12. Planning Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.
  • 13. • Planning involves 1. Determination of goal 2. Formulating policy, rules, procedures 3. Forecasting the future based on the past and present activities.
  • 14. Organizing •Arranging and structuring work to accomplish organizational goals.
  • 15. Process 1. Identification and analysis of goals 2. Assignment of duties to individual concern. 3. Follow up the activities.
  • 16. Staffing • The selection and training of individuals for specific job functions, and charging them with the associated responsibilities. • The act of keeping positions filled in organization structure 1–16
  • 17. Leading/Directing Involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channels
  • 18. • Motivation, leadership, communication are three important sub functions of directing • Communication provides a proper information to the subordinates for improved and effective management. • Leadership is the process by which a manager guides and it influences the work of his subordinates.
  • 20. CONTROLLING • Checking and verifying the activities against predetermined standards. • Process of ensuring the proper activities with planned activities. PROCESS • Establishing standards • Measuring current performance • Comparing with established standards • Taking corrective action if deviation is detected
  • 21. IS MANAGEMENT A SCIENCE OR AN ART
  • 22. • Management is the oldest of science and youngest of art. • Science : It is a systematized body of knowledge which establishes relationship between cause and effect
  • 23. Characteristics of science 1. It is the existence of a systematic body of knowledge with array of principles 2. Based on scientific enquiry. 3. Principle should be verifiable. 4. It is reliable basis for predicting future events.
  • 24. • Science is classified as exact and inexact • Management is inexact 1. HR are different in attitudes aspirations and perceptions. So standard result are not obtained. 2. Readymade and standard solutions cannot be obtained. 3. Mgt is complex and unpredictable. 4. Every organization decisions are influenced by environment . But the environment is so complex and unexpected.
  • 25. • Art : bringing about of desired results through the application of skills. • Entirely on the inherent capacity of a persons. • Learned from practice and experience.
  • 26. Important characteristics of mgt • Application of science. Putting principles into mgt. • Practice or experiences is needed to become skilful. • It is undertaken for accomplishing an end through deliberate efforts.
  • 27. Management is the art • Because 1. Involves the use of practical knowledge and personal skills. 2. Creative. 3. Implies capacity to apply accurately the knowledge to solve the problems.
  • 28. • Management is both science and art • Science – because contain general principles. • Art- requires certain personal skills
  • 30. 1. Admn is above mgt • According to Oliver sheldon, Milward Lansberg • Admn is concerned with decision- making and policy formulation • Mgt is concerned with execution laid down by admn
  • 31. 2. Admn is a part of mgt • Admn become a subordinate function to overall mgt function- according to E.F.L. Brech 3. Admn and mgt are same
  • 32. S.No Admn Mgt 1. Top level function Middle or lower level function 2. Owner Employee 3. Concerned with decision making Concerned with execution of decision 4. Acts through mgt Acts through the organisation 5. Lay down board policies and principles for guidance Executes these policies into practice 6. Function is broad and conceptual Narrow and operation 7. External factors are affecting the decision Internal factors affecting the decision 8. Employer – Employee relation Entrepreneurs and owners Between employee
  • 33. S.No Entrepreneur Manager 1. Starts business Runs the business 2. Considers various risk Does not get any risk 3. Driven by opportunity or demand in the present market Uses present available resources to produce the final product 4. Rights to implement the changes Can only follow the rules 5. Owner Hired 6. All kinds of rewards from public Fixed rewards in term of salary. 7. More risk taker Less risk taker 8. Desire for the control over the business Delegation of authority 9. One man army Leader of team
  • 34. 10. Aims to implement creativity and innovation Establish and preserve the status of company 11. Informal and flexible Not informal 12. Sensitive in decision making Collect and wait for advice 13. Full responsible for accident and failures Avoids mistakes and failures
  • 35. Types of Managers/Managerial levels/Types of Management Top level Managers Middle level Managers Lower level Managers
  • 36. Top level management or manager  Having the authority and ultimately responsible for the entire organisation  Titles such as executive vice president,president,managing director,chief operating officier,chief executive officier or chairman of the board  Main functions are *Formulate the goals, policies & budgets *Appoint the top executives *Provide the overall direction & leadership of the company *Decide the distribution of profits
  • 37. Middle level managers • Directly supervise other managers below them • Titles such as department head, project leader, plant managers or division manager • Main functions are *Monitor & control the operating performance of sub units and individual managers *Implement the overall organisational plans *Train, motivate & develop the supervisory level *Implement changes or strategies by top managers *Coordinate among themselves to integrate the various activities of a department
  • 38. Lower level or supervisory managers • Having the least authority • Responsible for work of operating employees • Main functions are, *Train & develop the efficiency of workers *Assign job to workers *Give orders & instructions *Maintain discipline & good human relations among workers *Report feedback information about workers
  • 39. Managerial roles or roles of manager Roles of manager classified into 1.Interpersonal roles a)Figurehead b)Leader c)Liasion 2.Informational roles a)Monitor b)Disseminator c)Spokesperson 3.Decisional roles a)Entrepreneur b)Disturbance handler c)Resource allocator d)Negotiator
  • 40. Interpersonal roles 1.Figurehead role ceremonial and symbolic duties such as Greeting visitors and signing legal documents 2.Leader Directs and motivates subordinates 3.Liasion Maintains the information link both inside & outside organisation.
  • 41. Informational roles 1.Monitor Person who seeks & receives information & maintains the personal contact with stakeholder. 2.Disseminator Forward information to organisation members via memos, reports and phone calls 3.Spokesperson Transmits the information to outsiders via reports, memos and speeches
  • 42. Decisional roles 1.Entrepreneur Initiates improvement in project & identifies new ideas 2.Disturbance handler Takes corrective action during disputes 3.Resource allocator Decides who gets resources and determines priorities 4.Negotiator person who represents the department during negotiation
  • 43. Managerial skills 1.Technical Skill 2.Human Skill 3.Conceptual Skill(design and problem solving)
  • 44. Technical skills • Reflects both understanding and a proficiency in a specialized field such as engineering , accounting or manufacturing • More important at low level mgt.
  • 45. Human skills • Ability of the manager to work effectively as a group member and to build cooperative team. • Know how to communicate, motivate, lead, inspire, enthusiasm and trust.
  • 46. Conceptual skills • Also called design and problem solving skills. • To understand how its various parts and function mesh together. • To foresee how changes in any one of them may affect all of the others.
  • 47. Evolution of Management Theory Pre-scientific or pre-classical management period Classical management theory Administrative management of Fayol Scientific management of Taylor Bureaucratic management theory Neo classical or behavioural theory Modern theory Systems approach Contingency approach
  • 48. 1.Pre-scientific management period  Certain pioneers tried to challenge the traditional character of management by introducing new ideas & approaches. 1.Robert Owen (1771- 1858)  Group Textile mills in lanark,scotland  He used Ideas of human relations  Promoter of co-operative and trade union in England  Worker’s performance based on working condition & treatment the workers  Shorter working hours, housing facilities, training workers in hygiene, education of their children, provision of canteen  Father of personnel management
  • 49. Pre-scientific management period 2. Charles Babbage (1792- 1871) Father of modern computing Professor of maths at Cambridge university Manufactures little use of science & mathematics Accurate observation, Measurement and precise knowledge for taking business decision Profit sharing to improve productivity.
  • 50. Pre-scientific management period 3. Henry Robinson Towne (1844- 1924) President of the famous lock manufacturing company Yale and town Combination of engineers and economists as industrial managers Successful management of industrial workers.
  • 51. 2. CLASSICAL MANAGEMENT THEORY *Developed industrial revolution when new problems related to the factory system started to appear. *Managers don't know how to train the employees and don't know how to deal with labour dissatisfaction. *As a result classical management theory developed to find “one best way” to perform and manage task.
  • 52. • SCIENTIFIC MANAGEMENT THEORY • ADMINISTRATIVE MANAGEMENT THEORY • BUREAUCRATIC MANAGEMENT THEORY
  • 53. Henri Fayol's administrative management theory  It concentrates on developing the organisational structure that leads to high efficiency & effectiveness  Father of modern theory of general and industrial management Book-“The general and industrial administration” in which Fayol divides the industrial activities into 6 categories  Technical (production, manufacture)  Commercial (buying, selling, exchange)  Financial (search for and optimum use of capital)  Security (protection of property and persons)  Accounting (balance sheets, cost statistics)  Management (Planning, Organising, Co-ordinating, Directing, Controlling)
  • 54. Henri Fayol's administrative management theory  DIVISION OF WORK OR SPECIALIZATION(divide the work & already work allotted)  AUTHORITY AND RESPONSIBILITY(power & superior)  DISCIPLINE(all levels – smooth running)  UNITY OF COMMAND (receive orders and instructions from superior)  UNITY OF DIRECTION (group of activities having one head and one plan, coordinate work)  SUBORDINATION OF INDIVIDUAL TO GENERAL INTEREST (earn money)  REMUNERATION (employees and employers, satisfy the workers)  CENTRALIZATION (power is distributed subordinates)  LINE OF COMMAND/SCALAR CHAIN (instructions & orders from top to bottom)  ORDER (material & social)  EQUITY (treatment employees equally)  STABILITY OF STAFF(turnover equally)  INITIATIVE (thinking & execution of plan, employees idea also concern)  ESPRIT DE CORPS (union)
  • 55. 1.Division of work • Divide the work in proper way with reference to time • Workers on the same job acquire the sureness and accuracy which increases the output 2.Authority and responsibility • Authority- power given to the person to get the work from the subordinate • Responsibility –amount of work expected by the supervisors
  • 56. 3.Discipline • Essential for smoothing running of organization • To Fayol discipline will result in good leadership • Fair agreement and judiciously enforced penalties for violations 4.Unity of command • Orders and instruction from one supervisor • Multiple commands-conflict • Good management should avoid dual command 5.Unity of direction • Each group of activities having the same objective with one head and one command.
  • 57. 6.Subordination of individual interest to general interest • Employee earn money to meet his personal needs • But employee should give importance to organization interest • Organization’s interest -should develop and progress 7.Remuneration of personnel • Wage payment system should satisfy the employee 8.Centralization • Centralized- power is concentrated with one person • Decentralization- power is fully distributed • Effective management • Quick decision
  • 58. 9.Scalar chain • Instruction and order should be from top management to bottom management 10.Order • Material order- a place for everything and everything in it place • Social order- a place for every one and everyone has place 11.Equity • Treatment of employee equally • Helps to achieve the goal
  • 59. 12.Stability of tenure of personnel • High employee turnover rate is not good for the effective functioning of any organization 13.Initiative • Concern with thinking and execution of plan • Come forward with new ideas they must be encouraged by supervisors 14.Esprit- de- corps • Union is strength • Employee should be harmony (synchronization) and unity
  • 60. Scientific management theory  Developed for - Increase productivity & efficiency  One best way for a job to be done  Examining how the work process was actually accomplished  Scrutinizing the skills of the workforce 1.Frederick W.Taylor (1856-1915)  Father of scientific management  Bethlehem steel plant  Time and motion study – eliminating unnecessary motions  Shoveling & pig-iron handling  1898,47.5 ton daily & 12.5 ,500 - 140
  • 61. Scientific management theory 2.Henry Gantt (1861-1919)  Bar graph – planned & completed work of each stage of production  Based on time instead of quantity, volume or weight, the visual display chart is used.  Daily work, bonus
  • 62.
  • 63. Scientific management theory F.W.Taylor’s scientific management:  Labor at Midvale steel company in U.S.A 1878  Became Chief engineer 1884  Publised Journal “price rate system” and “ shop management”  Book “principle of scientific management” in 1911  Scientific approach four types 1.Study each part of the task scientifically & develop the best method 2.Carefully select workers & train them 3.Cooperate fully with workers 4.Divide the work and responsibility
  • 64. Bureaucratic management theory Max Weber (1864 – 1920)  German sociologist  Specific rules were followed was important  He thought that authority should do something which was the part of person’s job & passed from individual to individual.  3 types of authority, 1.Traditional –custom or tradition(king,queen) 2.Charismatic-special personal qualities (gandhi, nehru, Dr.A.P.J Abdual Kalam) 3.Rational – position held by the supervisor (police officer, executives, supervisors)
  • 65. Bureaucratic system of administration is based on the following characteristics  A well-defined hierarchy (higher control to lower level)  Division of labor and specialization (all responsibilities & particular task)  System of written rules and regulations  Impersonal relationship between managers and employees  Selection and evaluation system  Records
  • 66. 3.Behavioral management theory  Pointed out Psychology and sociology in understanding of individual and group behaviour in an organisation 1.Mary Parker Follett(1868-1933) *Management ignores the employee’s contribution to the organisation. *managers are needed to coordinate and harmonize group effort rather than force and compel people.
  • 67. 2.Elton Mayo(1880-1949) *Conducted experiments known as Hawthorne studies  Informal groupings  Informal relationship  Patterns of communication  Patterns of informal leadership 3.Hawthorne studies(1924-1932) (i)Illumination experiment (ii)Relay assembly test room experiment (iii)Bank wiring test room experiment (iv)Mass interview programme-upward communication in an org creates a positive attitude in the work environment
  • 68. 4.Modern Theory i)System approach *Based on belief that organisation can be visualized as system of interrelated parts or subsystems operate as a whole to achieve common goal. 1.Input 2.Transformation process 3.Output 4.Feedback 5.Environment The following terminologies important for system approach, (i)closed system –interacts less with external environment (ii)Open system - interacts more with external environment (iii) Entropy-breakdown overtime (iv)Synergy-making the output is higher *Managerial levels based on system Approach 1.Technical level 2.organizational level 3. institutional level (activities of org)
  • 69. ii) Contingency approach *Contingency approach/Situational approach *Depends on experience and judgement of manager in a given organisational environment. Task of manager is to identify which technique will be suitable in particular situation under particular circumstances.  Characteristics of environment  Determine the design of an organization’s structure and control systems  Organizations in stable environment(centralized authority)  Organizations in changing environment(decentralized authority)
  • 70. Types of Business organisation • Classified into 2 types, 1.Individual organisation i)Sole trades ii)partnership iii)Joint stock company iv)Co-operative v)Multinational companies 2.Government organisation i)Departmental undertaking ii)Public corporation iii)Government company state enterprises
  • 71. 1.Sole Trading • Business unit owned and controlled by a single individual called sole trading concern • Use his own savings for his business • Purchases, sells and maintains accounts on his own • He alone enjoys all profits & losses in business • Sole trader-person who contributes capital and manages the business • According to Wheeler, The sole proprietorship is that form of business organisation which is owned & controlled by a single individual. He receives all the profits & risks all of his property in the success or failure of the enterprise.
  • 72. Characteristics of sole proprietorship 1.One man ownership and control 2.Unlimited liability(responsiblity) 3.Enjoyment of entire profit 4.No separate legal entity 5.Simplicity 6.Self employment 7.Secrecy
  • 73. Advantages *Easy to form & close the business *Easy for decision making *Full control of business activities *Promotes self employment of individual *Liberal legal formalities to start the business *Easy to expand or reduce the size of the business *Easy to accessibility of consumers *Easy to maintain healthy relations with employee
  • 74. Disadvantages: 1.Limited resources 2.Short life 3.Lack of consultation 4.Risk of entire loss 5.Uncertainty
  • 75. Partnership • Association of persons who agree to combine their financial resources & managerial abilities to run a business & share profits in an agreed ratio • Need for expansion of business with more capital,better supervision and control,division of work and spreading of risk. • According to Indian partnership act, The relation between person who have agreed to share the profits of a business carried on by all or any of them acting for all.
  • 76. Features of partnership 1.Agreement 2.Multiplicity of person 3.Lawful business-legal 4.Sharing of profits 5.Contractual relations 6.Mutual agency-dual role in orgnisation 7.Unlimited liability 8.Registration 9.Common management 10.Utmost good faith
  • 77. Kinds of partners 1.Active partner-represents all others in business orgnisation 2.Sleeping or dormant partner- does not express his intention 3.Normal partner 4. Partner in profit only 5. Partner by estoppel- for outsiders belief 6.Sub-partner-strange to contact 7.Secret partner- whose name is not disclosed 8.Minor as a partner-below 18 years.
  • 78. Rights of partner 1.Right to express his option 2.Right of participation 3.Right of access to books 4.Right to share profits 5.Right to get interest on the capital 6.Right of idemnity -protection
  • 79. Advantages: *Easy to formation *Registration is not compulsory *Larger financial resources *Promptness in decision making *Risk of business is shared by more persons *More possibility of growth & expansion of business *Close supervision is possible and reduces wastages. *Easy dissolution
  • 80. Disadvantages: *Unlimited liability increases the dissolution of firm *Lack of harmony among partners *Difficulties in expansion & modernization *lack of public faith *Limited resources *Limitation on transfer of share
  • 81. Joint stock company • As per the definition, there must a group of persons who voluntarily agree to form a company. • Once formed the company becomes a separate legal entity with a distinct name of its own. • Its existence not affected by change of members. • According to lord justice lindleg, By a company, we mean an association of many persons who contribute money or money’s worth to a common stock and employ it in some trade or business and also share the profit and loss as the case may be arising there from.
  • 82. Advantages *Limited liability *More stable *Shares are freely transferable *Company can easily expand *Company is charged lesser amount of taxes *Democratic setup is made *possible for large financial resources
  • 83. Disadvantages *Time consuming legal formalities *Lack of motivation *difficult to maintain resources *Promotion of frauds *Delayed decisions and actions
  • 84. Types of companies (i)On the basis of formation (a)Statutory company-by special act of parliament (b)Registered company- companies act (c)Government company- 51 % is held by the central government (ii)On the basis of public interest (a)Private limited company-minimum paid up capital (b)Public limited company- large scale (iii)On the basis of control (a)Holding company -for ex if company A hold more than 51% of paid up share capital of company B Then A- holding company, B- subsidiary company (b)Subsidiary company
  • 85. (iv) On the basis of Nationality (a)Indian company (b)Foreign company (v) On the basis of Area (a)National company (b)Multi national company
  • 86. Private limited company • Minimum paid up capital is Rs.1,00,000 • Minimum number of members is 2 • Limits the number of its members to 50 • Restricts the right to transfer the shares • Prohibits any invitation to the public to subscribe the shares
  • 87. Public limited company • Minimum paid up capital is Rs.5,00,000 • Minimum number member is 7,the maximum is unlimited • Capital is collected from the public by issuing shares • No restriction on the transfer of shares • Company should send the financial statement to members and registrar • Must have 3 directors • Necessary to follow certain legal formalities
  • 88. Public Enterprises • Form of business organisation owned and managed by the state government or any other public authority(departmental undertaking) • Owned and controlled by local or state or central government • Whole or most of the investment is made by the government • According to N.N.Mallya, Public enterprises are autonomous or semi autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities
  • 89. Characteristics of public enterprises 1.Financed by government 2.Financial Independence 3.Government management 4.Public services 5.Legislative control 6.Monopoly enterprises(eg: Railway, post & energy production enterprises)
  • 90. Merits: *Helps in implementing government policy *Complete government control *Income for government *Useful for developing enterprises *Funds are properly used Demerits: *Excessive government interference *Shortage of competent staff *Tax burden to public *Delay
  • 91. Public corporation • Created by special act of state or central government (ONGC,FCI) • Such act defines the power, duties, privileges and pattern of management of these organisation • Power of government but possessed with flexibility & initiative of private enterprises
  • 92. Merits: *Finance from government *Internal autonomy *Free from government interference *Protect public welfare *Service to society *Flexibility Demerits: *Limited autonomy *Misuse of power *Inefficient operation *Lack of interest *Government control
  • 93. Cooperative Organization • It is a voluntary association of persons for mutual benefits and it aims are accomplished through self help and collective effort. • Every state government has appointed a registrar of co-operative societies for registering controlling and supervising the societies.
  • 94. Organization culture • Can be characterized in a similar way we classify people, for example rigid, friendly. • Attributes and behavior can be predicated with the use of these behaviors. • Organization culture prescribes norms and procedures for the employee’s actions towards client’s competitors, supervisors, subordinates.
  • 95. • Organization culture is a system of shared assumptions, values, beliefs which govern how people behave in organization. • These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. • This culture provides guidelines and boundaries for the behavior of the people in one organization. • The attributes and behavior of the people in one org will vary in other organization.
  • 96. Definition • A system of informal rules that spells out how people have to behave most of the time. - Deal and Kennedy • Organisational culture is a relatively uniform perception held by organisation. It has common characteristics. - Stephen P. Robbins
  • 97. Characteristics of organizational culture • Risk tolerance- employees are encouraged to be innovative and risk taking • Direction – org culture creates clear objective and performance expectations. • Unit integration – org culture leads to coordination
  • 98. • Management contract – clear communication assistance and support to sub-ordinates • Identity – members identify the org as whole rather than particular work group • Reward system- salary increase, incentives, promotions • Conflict tolerance – conflicts and criticism openly • Control – rules and regulation to control employ behaviour • Communication patterns- org communication are restricted to the hierarchy of authority • Individual initiative – resposibility , freedom
  • 99. Sources of culture • Rituals • Language • Material symbols • Stories
  • 100. 1.Rituals – are repetitive sequence of activities which express and reinforce the key values of organization • If an organization organizes annual award meeting, sales persons are awarded for achieving the targets • The meeting conveys achieving target and performing better through hard work is important
  • 101. Language • Org develop unique terms describe equipment, offices, a key personnel supplies customers or products that relates to business. • C2C
  • 102. Material symbol • Org may provide car, bungalow, holiday in foreign etc. • It conveys to the employee the importance of people in the organization.
  • 103. Stories • Parents tell stories of outstanding personalities to children and children try to transfer them into practice • Organisation are also conveying the stories of successful organisations through seniors which have a great influence in building culture
  • 104. Components of culture • Support orientation • Rules orientation • Innovation orientation • Co-ordination orientation
  • 105. Types of org culture 1. Subculture– set of values shared by a minority 2. Dominant culture- • majority of the organizational members share the core value. • This kind of sharing of the core values is the dominant culture. • It is macro(general) view of culture
  • 106. 3. Strong culture Core values of the org are being accepted and followed with commitment by more numbers of the org. 4. Weak culture core values of the org are not being accepted and followed with commitment by more members of the organization. 5. Authoritarian culture: leader of the org exercise full control over subordinates 6. Participative culture superiors motivate their subordinates to attain the goals
  • 107. 7. Normative culture The employee behave in an ideal way and strictly adhere to the policies of the organization. 8. Pragmatic culture customer satisfaction is the main motive of the employee. 9. Academy culture • Hire skilled individual • Roles and responsibilities are delegated according to the back ground , educational qualification and work experiences. 10. Fortress culture • Employee are not sure about their longevity • Such organization follows the fortress culture • The employee are terminated if the organization is not performing well.