UNIT - I

Introduction
to
Management
Perspectives
What is Management?

• It is all about managing men, money, materials and other resources in the
best possible way to achieve the desired goal. It is art of getting things done
through others.

• Is the attainment of organizational goals in an effective and efficient manner

through planning, organizing, staffing, directing and controlling
organizational resources.

• Organizational resources include men(human beings), money, machines and

materials.

Effective

 Effectiveness is the level of results from the actions of employees and

managers.
 Employees and managers who demonstrate effectiveness in the workplace
help produce high-quality results.
 Take, for instance, an employee who works the sales floor. If he’s effective,
he’ll make sales consistently. If he’s ineffective, he’ll struggle to persuade
customers to make a purchase. 

Efficient

• Is achievement of ends with least amount of resources

• A measure of how well or how productively resources are used to achieve a

goal.

• Efficient employees and managers complete tasks in the least amount of

time possible with the least amount of resources possible by utilizing
certain time-saving strategies.

• For example, suppose a manager is attempting to communicate more

efficiently. He can accomplish his goal by using email rather than sending
letters to each employee. 
Definitions

• “To manage is to forecast, to plan, to organize, to command, to co-ordinate

and to control.”  (Henry Fayol)

It attempts to describe management in terms of what a manager does, and

not what management is.

• “Management is a multipurpose organ that manages a business and manages

manager, and manages worker and work.”
( P. Drucker)

• Management is the art of knowing what you want to do and seeing that it is
done in the best and cheapest way.

(F.W.Taylor)

What managers do?

• Individuals who achieve goals through other people.

• Make decisions

• Allocate resources

• Coordinates activities

• Direct activities of others to attain goals

• Manages and controls activities

Initiates new program and activities

Managerial Roles – Mintzberg

Informational Interpersonal Decisional

1. Monitor: Seek and 1. Figurehead: 1. Entrepreneur:

receive information; Perform Initiate
scan web, ceremonial and improvement
periodicals, reports, symbolic duties projects, identify
maintain personal such as greeting new ideas, delegate
contacts. visitors, signing idea responsibility
2. Disseminator: legal documents. to others.
Forward 2. Leader: direct 2. Disturbance
information to other and motivate handler: Take
organization subordinates, corrective action
members, send train, counsel during conflicts or
memos and reports, and crises, resolve
make phone calls. communicate disputes among
3. Spokesperson: with subordinates.
Transmit subordinates. 3. Resource allocator:
information to 3. Liaison: Decide who gets
outsiders through Maintain resources; schedule
speeches and information links budgets, set
reports. inside and priorities.
outside the 4. Negotiator:
organization; use Represent team or
e-mails, phone departments
and meetings. interest, represent
department during
negotiation of
budgets, union
contracts,
purchases.
Scope of Management

An economic Resources

• Like land, labor and capital, management is an important factor of

production. It occupies the center place among productive factors as it
combines and coordinates all other resources.

As a Team

• The team comprises of: the levels of management;

As a Process

• It involves a series of interrelated functions. It consists of getting the

objectives of an organization and taking steps to achieve the objectives.

As a Group

• Less concern with individual efforts.

• More concern with groups to achieve the predetermined goals.

Production Management

• It implies planning, organizing, directing and controlling the production

function so as to produce the right goods, in right quantity at time and at the
right cost.

• Example; designing the product, location and layout of plant and building,
research and development, etc.

Marketing Management

• It refers to the identification of consumers’ needs and supplying them the

goods and services which can satisfy these wants.

Example: marketing research, planning and developing suitable product, setting

appropriate prices, selecting right channels of distribution and promotional
activities.

Financial Management

• It ensures the right amount and types of funds to business at the right time
and reasonable cost.

Example: selecting the appropriate source of fund, raising the required funds,
ensuring proper utilization and allocation of the raised funds so as to maintain
safety and liquidity of funds.

Personnel Management

• It refers to human resources required in an organization to work accordingly

with specific competency level (knowledge, skills and ability).

Example: Man power planning, recruitment and selection, training and

development, employees’ performance appraisal, promotion and transfer,
compensation and incentives, etc.
Importance of Management

• Achievement of group goals

• Optimum utilization of resources

• Minimization of cost

• Survival and growth

• Generation of employment

• Development of the nation

Significance/ Importance of Management

Without the help of management, the input of labor, capital and raw materials
never becomes productive.

The Father of Management Peter Ducker said, “Management is a dynamic life-

giving element in an organization. In its absence the resources of productions
remains resources only and never become production”.

1. Encourage initiatives

• Doing the right things at the right time without being told or influenced by
the superior.

• Employees should be encouraged to make their own plans and implement

that plans.

• Satisfaction and success to organization.

2. Encourage innovation

• It brings new ideas, new technology, new methods, new products, new
services, etc..

• Makes organization more competitive and efficient.

3. Facilitates growth and expansion

• Makes optimum utilization of available resources.

• Reduce wastage and increase efficiency.

• Encourage team work & motivate employees.

• Reduce absenteeism and labor turnover.

• Leads to growth, expansion and diversification of the organization.

4. Improves life of workers

• Share some of its profit with workers.

• Sound working environment.

• Provides financial and non-financial incentives.

5. Improves corporate image

• Producing good quality goods and services.

• Goodwill and corporate image improves.

6. Optimum use of resources

• Make best use of the resources.

• Less no. of waste

• Brings best result in an organization.

7. Motivates employees

• Motivate them by providing financial and non-financial incentives.

• Leads to willingness and efficiency of employees.

• Result in boosting productivity and profitability of organization.

8. Improves relations

• Between individual, groups, department & level of management.

• Better relation leads to better team work which brings success to the
organization

9. Reduce absenteeism and labor turnover

• Increases the cost and causes many problems in smooth functioning.

• Mgt uses techniques to reduce these in org.

10. Encourage team work

• Encourage employees to work as team.

• Develops team spirit in org.

• Unity bring success to the organization

Levels of Management

• In every organization we see these levels of management practices. The Top

Level management is the supreme head and is the Top chain of command
(orders/authority). This Top Level comprises of CEO, Managing Directors.

• Followed by Second Level that is Middle Level Management, comprises of

Departmental Heads and other executives who disseminates or executes the
programs set by the Top Level Management.

• The last level that is lower Level Management that comprises of first line
Supervisors/foreman and other office assistants executes the entire work set
forth by the two upper levels of management.
Levels of Management

Role of Top Level Management

• Determines objectives, policies & plans of the org.

• Mobilizes the available resources.

• Involves in thinking, planning and deciding.

• Spend more time on planning & organization.

• Long term plans i.e. 5 to 20 years.

• Have power of authority and responsibility.

• Directly responsible to the shareholders, govt. and general public.

• Success or failure depends on their efficiency and decision making.

• More conceptual skill and less technical skills.

Role of Middle Level Management

• Gives recommendation to the top level management.

• It executes the policies and plans

• Coordinates the activities of all the departments.

• Spend time on coordinating and communicating.

• Short term plan i.e. 1to 5years

Role of Lower Level Management

• Develops morale in the workers.

• They pass on the instructions of the middle management.

• Have to get the work done through the workers.

• They allot various jobs to the workers, evaluates their performance and
report to middle level management..

• More managerial and technical skills and less conceptual skills.

Skills Required at Different Levels of Management

Levels of Management Skills

Management

Top level Conceptual skills

management The ability to see the whole organization and ability to
visualize the entire picture according to the situation. It
include the competence to understand a problem in all its
aspect and to use the original thinking in solving the
problems.
Such competence is necessary for rational decision making

Middle level Human skills

management The ability to work effectively with other people both as
individual and as a member. Such skills requires sense of
feeling for others and capacity to look at things from others
point of view.
Needs more of convincing skills.

Lower level Technical skills

management The ability and knowledge in using the equipment, technique
and procedures involved in performing specific tasks. Needs
more of specialized training and skills.
Types of Management

• Production management

• Marketing management

• Financial management

• Personnel management

Features of Management

• Management is universal

• Management is purposeful

• Management is a continuous process

• Management is an art as well as a science

Difference between Administration & Management

Points of Distinction Administration Management

1. Nature It is a determinative or It is executive or doing

thinking function function

2. Types of work Determination of major Implementation of policy

objective and policy

3. Levels of authority Top level function Middle and lower level

function

4. Main function Planning and controlling Directing and organizing

5. Skills required Conceptual and human Technical and human skills

skills

6. Usage Used largely in Mostly used in business

government and public organization
sector

Management Functions
Planning:

• Plans give the org its objectives and set up the best procedures for reaching
them. A process that includes defining goals, establishing strategy, and
developing plans to coordinate activities

Organising:

• It is the process of arranging and allocating work, authority and resources

among organization’s members so they can achieve the organizations’ goals.
Determining what tasks are to be done, who is to do them, how the tasks are
to be grouped, who reports to whom, and where decisions are to be made

Staffing:
 • Determining what types of people should be hired, recruiting prospective
employees, selecting employees, setting performance standards,
compensating employees, counseling, training and development of
employees.

Leading:

• It involves directing, influencing, and motivating employees to perform

essential tasks. A function that includes motivating employees, directing
others, selecting the most effective communication channels, and resolving
conflicts

Controlling:

• Process of monitoring performance and taking action to get a desired result.

Monitoring activities to ensure they are being accomplished as planned and
correcting any significant deviations