WHAT IS MANAGEMENT?

• The verb manage comes from the Italian

maneggiare (to handle — especially a horse)
• Which in turn derives from the Latin manus
(hand)
• The French word mesnagement (later
ménagement) influenced the development in
meaning of the English word management in
the 17th and 18th centuries
8/6/2018 2
 WHAT IS MANAGEMENT?
• Management is the art of getting things done through

people.

• The process of setting and achieving goals through the

execution of five basic management functions –

planning, organizing, staffing, directing and controlling

– that utilize human, financial, and material resources

in an efficient and effective manner.

8/6/2018 3
 • What is this little boy doing?
• Do you know where he is going?
• Can you see where he is going?
• Can you really see what the
consequences are going to be?
• Have you got the big picture in
mind?
• With anything that one does in
life you start with the end in
mind. You decide what you want
to achieve and then you decide
how you will work towards
achieving it. This is what
8/6/2018 management is. 4
 CONT’D
manage the creative tension between current
reality and Future reality

Greatness
NOW Reality Vision FUTURE

Courage

8/6/2018 5
 CONT’D
So That You and Your
Followers Can Reach Our
Vision

Put Stepping Stones

in Place
Chart the Path

8/6/2018 6
 CONT’D

• In general "management" identifies a special

group of people whose job is to direct the
effort and activities of other people toward
common objectives.

8/6/2018 7
 WHY MANAGEMENT?
• The Industrial Revolution brought about the
emergence of large-scale business and its need for
professional managers

• Management became more important as the

developments and complexities of technology and
human relationships get more challenging to those who
perform managerial functions
8/6/2018 8
 CONT’D
Shorter life-cycles for innovative technologies
•Water power •Steam •Electricity •Petrochemicals •Digital networks
•Textiles •Rail •Chemicals •Electronics •Software
•Iron •Steel •Internal-combustion •Aviation •New media
engine
1st Wave 2nd Wave 3rd Wave 4th Wave 5th Wave

1785 1845 1900 1950 1990 1999 2020

60 yrs 55 yrs 50 yrs 40 yrs 30 yrs

Source: The Economist, February 20, 1999

8/6/2018 9
 WHAT MANAGEMENTS STRIVES FOR?

• 'Management strives involving a group of people work

together in the most effective and efficient manner
to achieve stated goals in the best and most
economical way'.

8/6/2018 10
Functions of Management

The
Functions of
Management
 CONT’D

1. Planning
• Planning involves the predetermining of the course of
action to be taken in relation to the known event. It
also includes anticipating the possibilities of future
problems that might appear

“Failing to plan means planning to fail”

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 CONT’D

• It is a systematic activity which determines

when, how and who is going to perform a
specific job. It is rightly said

“Well plan is half done”

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 CONT’D

• The increased importance of planning in a

business enterprise results from various
changes in the environment like
• changes in technology,
• government policy,
• overall economic activity,
• in the nature of competition and
8/6/2018
• in social norms and attitudes. 14
 CONT’D

• There are different planning executed in

different level of an organization
• Strategic planning

• Tactic planning

• Operational planning

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 CONT’D
• In general, the planning process may
systematically be composed of five elements:
I. Setting Primary & Intermediate Goals

II. Search for Opportunities

III.Formulation of Plans

IV. Target Setting

V. Follow-up of Plans
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 CONT’D

2. Leading
• For the same idea, different organizations use
different terms such as
 Directing, Executing, Supervising, Ordering and Guiding

• What ever terms are assigned to it, the idea of

directing is to put into effect the decisions, plans
and programs that have been worked out.

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 LEADERSHIP STYLES

There are four types of leadership styles

• The dictatorial leader maintains a highly critical and

negative attitude in his relation with subordinates
and advocates the accomplishment of tasks through
fear of penalties

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 CONT’D

• The benevolent - autocratic leader assumes a

paternalistic role which forces the workers to rely on
him for satisfaction.

• This type of leader must be exceptionally strong and

wise individual, so that his personality generates
respect and allegiance. The subordinates develop
dependence on the leader to the extent that they have
very little chance of developing leadership qualities.
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 CONT’D

• The democratic leader suggests better methods and

tries to improve the worker's attitude. Unlike the
others, not only he depends on his capabilities but
encourages consultation with subordinates in planning,
decision making and organizing.

• With this type of leadership satisfaction is gained

through a feeling of group accomplishments.

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 CONT’D

• The fourth type of leadership style is a laissez -

faire type where the leader assumes the role of just
another member of the group and depends completely
on subordinates to establish their own goals and make
their own decision.

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 CONT’D

3. Organizing

• Organizing may be defined as the structure

and process by which a group allocates its
tasks among its members, identifies
relationships and integrates its activities
toward common objectives

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 CONT’D

• The organizing function of management brings

together human and physical resources in an orderly
manner and arranges them in coordinated pattern to
accomplish planned objectives.

• Each organizational resource (human, material,

finance etc.) represent an investment from which the
management system must get the return.

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 CONT’D
• Some of the benefits are:
– Good communication between the management and
employees,
– Sound basis to evaluate the performance of
individuals and groups,
– Well defined areas of works for each employee,
– Adequate and effective control, and
– Stimulation of independent, creative thinking and
initiative on the part of the employees.

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 CONT’D

• There are some principles of organization which

are guide lines for thought to operating managers
and researchers in an organization
1. Unity of Command
2. Exception Principle
3. Span of Control
4. Scalar Principle
5. Departmentalization
6. Decentralization
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 CONT’D

• The steps that are important when organizing

an enterprise
Reflecting
on plans
and
objectives

Evaluating
results for Establishing
organizing major tasks
strategy

Allocating
resources Dividing
and major tasks
directives into
for subtasks
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 CONT’D

4. Staffing
• Staffing deals with the workers and is worker-oriented
• This function includes the process of placing the right
person in the right organizational position
• The process of matching the people and the jobs is
done by careful preparation of specifications necessary
for positions and raising the performance of personnel
by training and retraining of people to fit the needs of
the organizational position
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 CONT’D

5. Controlling
• Control is the process that measures current
activities, quantitatively if possible, and guides
it toward some predetermined goal, plan, policy,
standard, norm, decision rule and criterion or
yardstick.
• The essence of control lies in checking and
correcting actions against desired results in the
planning process
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 CONT’D

• Controlling includes ensuring that employees

perform the work allocated to them in the ways
laid down, and with no wastage or duplication of
time, effort or materials.
• That involves much more than simply instructing a
given number of employees to perform work; they
must be supervised and managed so that their
efforts achieve the desired results.
• This requires that they are motivated, checked,
guided, taught and encouraged.
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 CONT’D

• There are seven principles of control.

I. Strategic Point Control
II. Feedback
III. Flexible Control
IV. Organizational Stability
V. Self-Control
VI. Direct Control
VII. Human Factor

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 CONT’D

Planning Organizing Staffing Leading Controlling

Lead to
Defining Determining Locating Motivating, Monitoring
goals, what needs prospective leading, and activities to
establishing to be done, employees to any other ensure that Achieving the
strategy, and how it will be fill the job actions they are organizations
developing done, and created by involved in accomplished stated
plans to who is to do the dealing with as planned purposes
coordinate it organizing people
activities process

8/6/2018 31
 WHO ARE MANAGERS?

◆ Manager
• Someone who coordinates and oversees the work
of other people so that organizational goals can be
accomplished.

8/6/2018 32
 CHARACTERISTICS OF A GOOD MANAGER
The Dual Aspects of any Manager's Job
• The modern 'world of industry' is very complex, and this
very complexity has led to what is called ―specialization‖
and to the "division of labor‖ by which different people
specialize in performing − and become specialists in −
different types of work.
• It follows, therefore, that the ―technical‖ or "functional‖,
i.e. the specific work of different managers can and does
vary enormously.
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 CONT’D

• Nevertheless, all those different types of

managers, and all others, should have considerable
knowledge of the technical aspects of their jobs in
addition to being proficient ‗managers of people‘.

• It is, in any case, not easy to train, supervise and

control the work of others without knowing what
they are or should be doing.
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 CONT’D
• Some estimates show that a managing director may spend between

80% and 90% of his working hours on managerial matters and only

10% to 20% of his time on the technical activities.

• Whilst senior managers may spend approximately 50% of their

work time on managerial activities and 50% on technical activities;

and

• Supervisors and foremen may spend some 70% to 75% of their

time on technical activities and only 25% to 30% of their time at

work on the supervision of their subordinates

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 CONT‘D

♦ How The Manager‘s Job Is Changing

• The Increasing Importance of Customers

– Customers: the reason that organizations exist
• Managing customer relationships is the responsibility of all managers and
employees.

• Consistent high quality customer service is essential for survival.

• Innovation
– Doing things differently, exploring new territory, and taking risks
• Managers should encourage employees to be aware of and act on opportunities
for innovation.
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 CONT‘D

8/6/2018 37
 PERSONAL QUALITIES NEEDED
• Some of the more important personality traits of a
successful manager are the following:

1. Ability to Think Clearly and Logically: A

manager needs to be able, as the result of training,
to approach each situation and problem positively
and objectively, without prejudgment or being
distracted by irrelevancies. This requires him to
think in a clear, orderly fashion and to marshal and
arrange logically in his mind all the facts and
information available to him.
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 CONT’D

2. The Abilities to Make Decisions and to Act

Decisively: These follow on from the
foregoing, and also require a measure of
self-confidence; a belief in one's own ability
to succeed in solving problems in the right
way, and in one's own ability to deal
effectively with different situations and
sets of circumstances.

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 CONT’D
1. Defining as accurately as possible the problem which
needs to be solved.
2. Obtaining all relevant information about the problem
3. Breaking down the problem into parts − very often
the solution to one part is obvious and leads, logically,
to the solving of other parts or the whole problem.
4. Comparing and judging the probability of success of
any possible different solutions to the same problem,
and their possible consequences on other areas.
5. Selecting the most attractive solution − making the
decision
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 CONT’D
• The Ability to Use Initiative: from time to time a manager is
bound to come across problems or situations which are outside his
range of experience or outside the normal scope of his responsibly;
the latter can, perhaps, arise when a senior is away or is unavailable
for some reason. In such circumstances, particularly if action is
urgently needed, the manager must not simply leave the matter until
his senior is available or wait to be told what to do, but must initiate
- that is, lead the action without waiting to be prompted.

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 CONT’D

• Ability to Handle Conflict: A good manager is calm, able

to listen, is positively responsive to criticism and is able
to handle conflicts and differences in a constructive
manner. In order to handle conflicts well, a manager must
be confident, self-assertive, fair and dominant. He
should be highly tolerant of stress, as conflicts generally
lead to stress and tension. This would require a sound
mind in a sound body.
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 CONT’D

• Ability to Adapt Change and be Flexible: Any manager

must be able to adapt to changes and, if necessary, to
cope with changed circumstances, and ensure that his
subordinates also do so.

• Adaptability to different situations and flexibility of

mind are also necessary in the routine, day-to-day
running of a section, department or an entire enterprise.

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 CONT’D
• Ability to Be Emotionally Stable: In dealing with different
problems and situations, some of which might be irritating, annoying,
worrying or heated − or include emotional displays (e.g. tearful
women, angry voices, etc.) by others − a manager must be
sufficiently mature to keep calm and collected. He must be able to
keep control over his own emotions and his temper whatever may the
provocation be, and be able to concentrate his attention on the
matter in hand, thinking clearly, logically, and avoiding hasty
reactions.
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 CONT’D
• Stamina and Concentration: mental fitness to work long and hard
without undue stress or strain.

• Besides mental alertness, a manager needs to be able to concentrate

his mind on the matter in hand even under the most tiring
circumstances and/or when he is under pressure; to focus or keep
one's mind intently fixed over a long period can be tiring,
particularly as there will be many different matters requiring
attention and concentration during a manager's working day.

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 CONT’D

• Drive and Determination: A manager needs the urge and

enthusiasm to stimulate action, not only by himself, but
by other people as well. He also needs the determination
to keep going whatever the difficulties, adapting his
actions and decisions to overcome problems encountered,
and pressing on to a successful conclusion.

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 CONT’D

• Leadership: Leadership is the ability of a person to

exert a positive influence over the thoughts, behavior
and actions of others, and then to direct their thoughts,
behavior and actions towards a common goal or objective.

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 CONT‘D
Skills Needed at Different Management Levels

8/6/2018 48
 ORGANIZATION STRUCTURE
• The stages in the setting up of an effective organizational
structure are
 The activities which will be necessary to achieve the
objectives of the business must be established.

 The various related activities should be grouped together into

departments; the most logical grouping is by 'function', that
is, by type of activity: production, marketing, finance, etc.

 The activities of a particular department will be further

divided, and grouped together into sections;
8/6/2018 49
 CONT’D
 An organization chart should be produced to depict
the proposed organization

 Based on estimates of the volume of work, which will

be performed by each section, the number of staff
required must be determined. Depending on the type
of work to be performed and on other factors, the
numbers of supervisors, junior and middle managers
per section and department must be given thought
8/6/2018 50
 CONT’D
 The special knowledge or talents required by departmental

and sectional managers must be laid down.

 The equipment necessary for the proper functioning of each

section and department must be decided upon, and provision

made for its positioning when considering the layout of the

accommodation for each unit.

 To ensure effective coordination of all parts of the

enterprise, effective procedures and systems of

8/6/2018 communication must be devised and installed. 51
 TYPES OF ORGANIZATIONAL STRUCTURE

• There are four different types of organizations,

namely

I. line,

II. functional,

III.line and staff, and

IV. matrix organization.

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 CONT’D

I. Line organization

• Sometimes called 'military organization', because

it is how the armed forces are organized.

• There is a clear 'line' of responsibility and

authority right through the management
structure from the board to the lowest level of
supervision, and below.
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 CONT’D
• The 'chain of command‗ is direct and so decisions can
usually be made quickly and implemented rapidly, because
of the directness of the control, the coordination of the
activities of all those employed in a department is
simplified.

• The position (and status) of all the different people

working in a department can be easily seen, and so the
extent of their responsibilities, authority and duties can,
be clearly defined and understood.
8/6/2018 54
 CONT’D

8/6/2018 55
 CONT’D

II. Functional Manager

• It is the function (the type of activity), which

determines the areas of authority and responsibility.

• An expert or specialist is placed in charge of each

function, and will have direct control of that function
wherever it is undertaken within the enterprise.

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 CONT’D
• As the functional specialists are not involved in the day-to-day running
of the enterprise (which is the domain of the line managers) they are
free to the concentrate on their particular functions that produce
many benefits for the enterprise.

• However, this form of organization makes control difficult as there are

no clear lines of authority and it is similarly difficult to establish
responsibility when things do not go right.

• Furthermore, staff as well as supervisors and junior managers become

confused at being subject to the authority of more than one superior.

8/6/2018 57
 CONT’D

8/6/2018 58
 CONT’D

III.Line and staff organization

• In such a structure, the line managers control the
primary functions, such as marketing and
production, which are directly concerned with
achieving the objectives of the business; whilst the
staff managers are generally involved with
secondary functions which assist the smooth and
efficient running of the primary functions.
8/6/2018 59
 CONT’D
MANAGING DIRECTOR
DIRECTOR

L WORKS L SALES L ACCOUNTS S PERSONNEL

MANAGER MANAGER MANAGER MANAGER

L L
L SECTION SECTION MANAGERS SECTION
MANAGERS SUPERVISORS & MANAGERS
SUPERVISORS & SALESMEN SUPERVISORS &
OPERATORS CLERKS

S EMPLOYMENT S TRAINING
L – Line relationship: S – staff relationship OFFICER OFFICER
Responsibility and authority shown by
Staff. Advisory relationship shown by ---------- SUPERVISORS SUPERVISORS
& CLERKS & CLERKS
8/6/2018 60
 CONT’D

IV. Matrix organization(Project Organization)

• These are temporary organizational structures formed for

specific projects for a specific period of time and are
dismantled, once the required goal is achieved.

• A typical example for this kind of organizational structure can

be the goal to design and build a new power plant station.

• The specialists are selected primarily on the basis of task-

related skills and expertise rather than decision making
experience or planning ability.
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 CONT’D
• These structures are very useful when:

– The project is clearly defined in terms of objectives to

be achieved and the target date for completion of the
project.

– The project must be separate and unique and not be a

part of daily work routine of the organization.

– The project must be temporary in nature and not

extended into other related projects.
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 CONT’D

• This kind of organization occurs frequently in:

– Construction ( e.g. building a bridge)

– Aerospace engineering ( i.e. designing and launching

weather satellite)

– Marketing( e.g. advertising company for new product)

– Installation of an electronic data processing system,

etc.
8/6/2018 63
 CONT’D

General
Manager

Labor Research Finance Personnel Technical

Services

Project A Manager

Project B Manager

Project C Manager

8/6/2018 64
 CONT’D
• In matrix organization, it is possible for the
individual employee to have two managers. However,
proponents of matrix organization believe that it
provides an agency with the flexibility to work on
critical projects.

• Matrix organization also brings together the

specialized talent that is often necessary to
complete a project
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 CONT’D
Other advantages of matrix organization:

– Decision making is decentralized to a level where information

is processed properly and relevant knowledge is applied.

– Extensive communication networks help to process large

amount of information.

– With decisions delegated to appropriate levels, higher

management levels are not over loaded with operational

decisions.
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 CONT’D

– Resource utilization is efficient, because key

resources are shared across several important
programs or products at the same time.

– Employee learns the collaborative skills needed to

function in an environment characterized by
frequent meeting and more informal interactions.

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 PRODUCTIVITY

8/6/2018 68
 THE BASICS OF PRODUCTIVITY

• In most businesses, competition for the available

market, forces the management of each enterprise to
seek competitive advantage through the use of:
– product improvements
– lower costs
– lower selling prices for the same or better quality and
– better service to customers
• Productivity is defined as the ratio of value of output
to the value of input

8/6/2018 69
 CONT’D

value of output
Productivity =
value of input

8/6/2018 70
 CONT’D

• An increase in production does not necessarily by

itself indicate an increase in productivity.

• If the input of resources goes up in direct

proportion to the increase in output the productivity

remains the same

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 CONT’D

• If input increases by a greater percentage than

output, higher products will be achieved at the
expense of reduction in productivity

• In short higher productivity means to produce

more with the same expenditure, or with a
minimum increase in expense, or the same amount
is produced at less cost in terms of resources.
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 CONT’D

• The outputs may be products or services and the

inputs or resources may be land, materials, plant
machineries, tools and a series of man.

♦ Land Productivity: Better seed, fertilizer and

better method of cultivation may increase the
yield from two quintals to three quintals. Hence
land productivity has increased by 50 percent.
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 CONT’D

♦ Material Productivity: If a skillful worker is able

to produce 300 formworks from 400 pieces of
2m  1m sheet metal, while an unskillful worker
can only produce 250 out of the same material,
then with the skilful worker the material was
used with 20 percent greater productivity

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 CONT’D

♦ Machine Productivity: If a machine tool has

been producing 100 pieces per a working day,
and through the use of improved cutting tool
and/or proper maintenance procedure its
output in the same period is increased to 120
pieces, the productivity of that machine has
been
8/6/2018
increased by 20 percent. 75
 CONT’D

♦ Productivity of Man: If a shoe maker has

been producing 30 pieces of leather parts per
hour, and if improved methods of work enable
him to produce 40 pieces per hour the
productivity of that man has increased by 33.3
percent
8/6/2018 76
 CONT’D

• To sum up, a low level of productivity implies a low

growth of economy.

• A low growth of economy meant, low income leading

to low standard of leaving and a low level of savings,
resulting in low level of investment and low
productivity

8/6/2018 77
 Global

Higher Higher Higher International

Quality productivity competitiveness multinational

Export

8/6/2018 78
 PRODUCTIVITY IMPROVEMENT
• Productivity is affected by many external and internal
factors. Some of the external factors, influencing
productivity to mention are:
 the national and international policies

 infrastructure supports

 cultural practices

 the availability of technology and natural resources

 organizational policies

8/6/2018
 Climate, incentives and information 79
 CONT’D

• Examples of internal factors that are identified

to as hindering the rise of productivity are:
 unsuitable personnel policies leading to a low level of
satisfaction and involvement;

 poor maintenance system and low level of maintenance

awareness;

 improper selection and training of personnel;

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 CONT’D

 inappropriate choice of design,

 tools, material and equipment;
 undefined standardization and quality policies;
 inadequate plant layout and materials handling
systems;
 poor planning, controlling and communication
systems;
 unsafe and unhealthy working environment
8/6/2018 81
PRODUCTIVITY IMPROVEMENT STRATEGIES

A. Short term Strategy

• The first strategy is improving organizational planning
and control, to implement planned maintenance of
machinery and effective production system in plants
would show an increase in machine productivity and
reduction in maintenance cost.

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 CONT’D
• The second action is increasing manpower efficiency and
effectiveness at all levels. Effectiveness and efficiency
are the main tools of productivity.
♦ Efficiency
 ―Doing things right‖
– Getting the most output for the least inputs
♦ Effectiveness
 ―Doing the right things‖
– Attaining organizational goals
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 CONT‘D

Efficiency (Means) Effectiveness (End)

Resource Goal
Usage Attainment

Low Waste High Attainment

Management Strives for:

Low Resource Waste (High Efficiency)
High Goal Attainment (High Effectiveness)

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 CONT’D

• To be able to increase manpower efficiency and

effectiveness at all levels of an organization
what is required is motivation, training and
education. This method has proved itself
successful in Japan.

8/6/2018 85
 CONT’D

• The third short term line of attack is improving

operation methods. The techniques of method
study involve breaking a process into detailed
components.
– The study may result in elimination of an
activity, combination of several activities,
change of sequence of activities, shortening
duration of activities etc.
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 CONT’D

• As Frederik Taylor said "Most of us can do

three or four times as much as we ordinarily do
without lengthening working hours or even
driving ourselves to exhaustion by the day's
end".
• In fact, to achieve this, effective
implementation of method engineering is
required.
8/6/2018 87
 CONT’D

B. Medium Term Strategy

• At this stage the firm may require capital to simplify

and improve the products, and reduce variety.

• The analysis consists of common sense questions to

come up with effective solutions like substitution of
alternative materials, elimination of parts where
special designs have been specified, redesign, etc.
8/6/2018 88
 CONT’D

C. Long Term Strategy

• Properly selected new machineries, well

organized departments and proper layout will
undoubtedly contribute to an increase in
productivity.

• Furthermore, research and development is the

backbone for productivity increment.
8/6/2018 89
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 FUNCTIONS OF AN INDUSTRIAL ENTERPRISE

• Manufacturing functions
– Receiving, Warehousing, Transportation, Production,
Shipping
• Engineering Functions
– Product design, Process design, Plant engineering, Cost
estimation
• Control Functions
– Production control, Quality control, Cost control,
• Support Functions
– Purchasing, Sales, Maintenance, Personnel
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