Introduction (Managing and Managers)

What is Management:
Management is the process of getting things done through other people by
utilizing human and non-human resources in an organization in order to attain
some pre-determined goals. This is done through the process of planning,
organizing, leading and controlling.

The process of Management:

Planning:
Planning is the process of setting goals, and charting the best way of action for
achieving the goals. This function also includes, considering the various steps to
be taken to encourage the necessary levels of change and innovation.
Organizing:
Organizing is the process of allocating and arranging work, authority and
resources, to the members of the organization so that they can successfully
execute the plans.
Leading:
Leading involves directing, influencing and motivating employees to perform
essential tasks. This function involves display of leadership qualities, different
leadership styles, different influencing powers, with excellent abilities of
communication and motivation.
Controlling:
Controlling is the process of devising various checks to ensure that planned
performance is actually achieved. It involves ensuring that actual activities
conform to the planned activities. Monitoring the financial statements,
checking the cash registers to avoid overdraft etc., form part of this process.

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Levels of management:
 Top level:
Top management sets the mission and goals, develops policies, evaluates
the overall performance of various departments, responsible for the
business as a whole and is concerned mainly with long-term planning.

 Middle Level:
Middle level management develops departmental goals, executes the
policies, plans and strategies determined by top management , develops
medium- term plans and supervises and coordinate lower-level managers’
activities.

 Lower Level:
Lower level management takes charge of day-to-day operations, is involved
in preparing detailed short-range plans, is responsible for smaller segments
of the business, executes plans of middle management , guides staff in their
own subsections and keep close control over their activities .

Skills of Management:
Technical skills:
As the name of these skills tells us, they give the manager’s knowledge and
ability to use different techniques to achieve what they want to achieve.
Technical skills are not related only for machines, production tools or other
equipment, but also they are skills that will be required to increase sales,
design different types of products and services, market the products and
services. Technical skills are most important for the first-level managers.
Social skills:
Social skills present a manager’s knowledge and ability to work with people.
One of the most important management tasks is to work with people. Without
people, there will not be a need for existence of management and managers.
Conceptual Skill:
Conceptual skills present knowledge or ability of a manager for more abstract
thinking. That means he can easily see the whole through analysis and
diagnosis of different states. In such a way they can predict the future of the
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business or department as a whole. Conceptual skills are vital for top
managers, less important for mid-level managers, and not required for first-
level managers.

Roles of Management:
a) Interpersonal Roles:
(i) Figure head: Represents the company on social occasions. Attending the flag
hosting ceremony, receiving visitors or taking visitors for dinner etc.
(ii)Leader: In the role of a leader, the manager motivates, encourages, and
builds enthusiasm among the employees. Training subordinates to work under
pressure, forms part of the responsibilities of a manager.
(iii)Liaison: Consists of relating to others outside the group or organization.
Serves as a link between people, groups or organization. The negotiation of
prices with the suppliers regarding raw materials is an example for the role of
liaison.

b) Informational Roles:
(i)Monitor: Emerges as nerve center of internal and external information
about Information.
(ii)Disseminator: Transmits information received from other employees to
members of the organization.
(iii)Spokes Person: Transmits information to the people who are external to the
organization, i.e., government, media etc. For instance, a manager addresses a
press conference announcing a new product launch or other major deal.

c) Decisional Roles:
(i)Entrepreneur: Act as an initiator and designer and encourage changes and
innovation, identify new ideas, delegate idea and responsibility to others.
(ii)Distribution Handler: Take corrective action during disputes or crises;
resolves conflicts among subordinates; adapt to environmental crisis.

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(iii)Negotiator: Negotiates with subordinates, groups or organizations- both
internal and external. Represents department during negotiation of union
contracts, sales, purchases, budgets; represent departmental interests.

Principles of Management(Henri Fayol):

1. Division of work: Work of all kinds must be divided & subdivided and
allotted to various persons according to their expertise in a particular
area.
2. Authority: The right to issue commands, along with which must g the
balanced responsibility for its function.
3. Discipline: Employees must obey, but this is two-sided: employees will
only obey orders if management play their part by providing good
leadership.
4. Unity of command: Each worker should have only one boss with no
other conflicting lines of command.
5. Unity of direction: People engaged in the same kind of activities must
have the same objectives in a single plan. This is essential to ensure unity
and coordination in the enterprise. Unity of command does not exist
without unity of direction but does not necessarily flows from it.
6. Subordination of individual interest to common goals: Management
must see that the goals of the firms are always paramount.
7. Remuneration: Payment is an important motivator although by analyzing
a number of possibilities, Fayol points out that there is no such thing as a
perfect system.
8. Centralization: This is a matter of degree depending on the condition of
the business and the quality of its personnel.
9. The hierarchy: A hierarchy is necessary for unity of direction. But lateral
communication is also fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the number of
levels in the hierarchy from the ultimate authority to the lowest level in
the organization. It should not be over-stretched and consist of too-many
levels.
10.Order: Both material order and social order are necessary. The former
minimizes lost time and useless handling of materials. The latter is
achieved through organization and selection.
11.Equity: In running a business a ‘combination of kindliness and justice’ is
needed. Treating employees well is important to achieve equity.
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 12.Stability of tenure: Employees work better if job security and career
progress are assured to them. An insecure tenure and a high rate of
employee o turnover will affect the organization adversely.
13.Initiative: Allowing all personnel to show their initiative in some way is a
source of strength for the organization. Even though it may well involve a
sacrifice of ‘personal vanity’ on the part of many managers.
14.Spirit de corps: Management must foster the morale of its employees.
He further suggests that: “real talent is needed to coordinate effort,
encourage keenness, use each person’s abilities, and reward each one’s
merit without arousing possible jealousies and disturbing harmonious
relations.”

The Challenges of Management

1. The need of vision
2. The need of Ethics
3. The need for responsiveness of cultural diversity

Managerial Efficiency vs. Managerial Effectiveness

BASIS FOR EFFICIENCY EFFECTIVENESS
COMPARISON
Meaning The virtue of being The magnitude of
efficient is known as nearness of the actual
efficiency. result with the intended
result, is known as
effectiveness.

What is it? Work is to be done in a Doing accurate work.

correct manner.
Emphasis on Inputs and Outputs Means and Ends
Time Horizon Short Run Long Run
Approach Introverted Extroverted
Ascertainment Strategy Strategy Formulation
implementation
Orientation Operations Strategies
The universal nature of management
1. Management is an activity
2. Management is a purposeful activity.

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3. Management is concerned with the efforts of a group.
4. Management applies economic principles.
5. Management involves decision making.
6. Management is getting things done through others.
7. Management is an integrating process.
8. Management co-ordinates all activities and resources.
Most of the principles and techniques of management are universal in nature.
They can be applied to government organization, military, educational
institutes, religious institutes etc. They provide working guidelines which can
be adopted according to situations.
Profit seeking organization:
a) Large business
b) Small business
c) International business
Non-profit organization
a) Govt. organizations
b) Educational institutions
c) Health care

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