Department of Mechanical & Aerospace Engineering

Pulchowk Campus, Institute of Engineering

Tribhuvan University

ORGANIZATION AND MANAGEMENT

Management

Dr. Shree Raj Shakya

2022

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 Management
Management is the process of getting things done with and
through others. It consists of several activities and tasks like
planning, organizing, directing and controlling.

Some Definitions of Management

Joseph Massie - "Management is defined as the process by

which a cooperative group directs action towards common
goals".

George R Terry - "Management is a distinct process consisting

of planning, organizing, actuating and controlling
performed to determine and accomplish the objectives by
the use of people and resources"
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 Management

James L Lundy - "Management is principally the task of

planning, coordinating, motivating and controlling the
efforts of others towards a specific objective".

Henry Fayol - "To manage is to forecast and to plan, to

organize, to command, to co-coordinate and to control".

Peter F Drucker - "Management is a multi-purpose organ

that manages a business and manages managers and
manages worker and work".

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 Management

J.N. Schulze - "Management is the force which leads,

guides and directs an organization in the accomplishment
of a pre-determined object".

Ordway Tead - "Management is the process and agency

which directs and guides the operations of an organization
in realizing of established aims".

Stanley Vance - "Management is simply the process of

decision-making and control over the actions of human
beings for the express purpose of attaining predetermined
goals".

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Functions of Management

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 Function of Management

Planning
Planning means “thinking before doing”. Planning involves
establishing goals and formulating strategies, policies,
programs and fixing procedures to achieve those goal.

Organizing
After planning next step is to arrange man, machine,
material, money and method for the actual execution of
the work. It involves determining the structures, roles and
activities to achieve the goals of an organization.

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 Function of Management

Directing
It involves the actual implementation of the work as per
the plan. It involves leading and motivating the
subordinates to execute the plan and achieve the
organizational goals.

Controlling
Controlling involves measuring the work performance and
correcting the activities of subordinates to assure that the
jobs conform as per the objective and plan of organization.

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 Function of Management

Coordinating
Coordination involves the integration of the function of planning,
organizing, directing and controlling to make effective decision
making. Managers must coordinate the functions of different
departments, resources and personnel of their firm so that the
organization goals can be achieved efficiently and effectively.

Decision Making
Decision making is choosing the best alternatives to achieve
organizational goal.

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 Levels of Management

• Levels of Management refers to the hierarchy

between various managerial positions in an
organization.
• The number of levels in management increases
when the size of the organization increases and vice
versa.
• The level of management determines a chain of
command, the amount of authority & status
enjoyed by any managerial position.

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 Levels of Management

• The levels of management can be classified in three

broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line
managers

• Managers at all these levels perform different

functions.

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Levels of Management

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 Levels of Management
Top Level Management
• It consists of board of directors, chief executive or managing
director.
• The top management is the ultimate source of authority and
it manages corporate goals, policies and strategy.
• It devotes more time on planning and coordination and
strategic functions.
Major functions are:
1. Top management lays down the mission, vision, objectives
and broad policies of the enterprise.
2. It issues necessary instructions for preparation of
department budgets, procedures, schedules etc.
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 Levels of Management

3. It prepares strategic plans & policies for the enterprise.

4. It appoints the executive for middle level i.e.
departmental managers.
5. It controls & coordinates the activities of all the
departments.
6. It is also responsible for maintaining a contact with the
outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the
shareholders for the performance of the enterprise
(corporation).
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 Levels of Management
Middle Level Management
• The branch managers and departmental managers
constitute middle level.
• They are responsible to the top management for the
functioning of their department.
• They devote more time to organizational and directional
functions.
• In small organization, there is only one layer of middle level
of management but in big organization, there may be senior
and junior middle level management.
Their roles are:
1. They execute the plans of the organization in accordance
with the policies and directives of the top management.
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 Levels of Management
2. They make plans for the sub-units of the organization.
3. They participate in employment & training of lower level
management.
4. They interpret and explain policies from top level management
to lower level.
5. They are responsible for coordinating the activities within the
division or department.
6. It also sends important reports and other important data to
top level management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers
towards better performance.

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 Levels of Management
Lower Level Management
• Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section
officers, superintendent etc.
• According to R.C. Davis, “Supervisory management refers to
those executives whose work has to be largely with personal
oversight and direction of operative employees”. In other
words, they are concerned with direction and controlling
function of management.
Their activities include :
1. Assigning of jobs and tasks to various workers.
2. They guide and instruct workers for day to day activities.

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 Levels of Management
3. They are responsible for the quality as well as quantity of
production.
4. They are also entrusted with the responsibility of maintaining
good relation in the organization.
5. They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher
level goals and objectives to the workers.
6. They help to solve the grievances of the workers.
7. They supervise & guide the sub-ordinates.
8. They are responsible for providing training to the workers.
9. They arrange necessary materials, machines, tools etc for
getting the things done.

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 Levels of Management

10. They prepare periodical reports about the

performance of the workers.
11. They ensure discipline in the enterprise.
12. They motivate workers.
13. They are the image builders of the enterprise
because they are in direct contact with the workers.

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 Managerial Skills

• It is the ability to make business decisions and lead the

subordinates in an organization.
• Managers need to possess a specific set of skills in order to
effectively perform their jobs.
• Managerial skills are what the manager uses to get the job
done with and through others in the organization to achieve
goals.
• A manager uses his/her own abilities, knowledge base,
experiences, and perspectives to increase the productivity of
those with whom they manage.
• A manager should have five major skills to perform their job
effectively: technical skills, conceptual, and human skills
(interpersonal, diagnostic and political) skills.
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 Managerial Skills

Technical
Skills

Conceptual Interpersonal
Skills Skills
Managerial
Skills

Political Diagnostic
Skills Skills

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 Managerial Skills

Technical skills
• These skills are needed to accomplish a specific task.
• It helps the manager to complete his or her job.
• These skills are the combination of formal education,
training, and on-the-job experience.
• Most employees expect their manager to have a technical
skill set above their own so that, when needed, an employee
can come to their manager to find out how to do something
specific to their individual job.

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 Managerial Skills
Conceptual Skills
• It is a manager's ability to see the organization as a whole and
understanding how organizational units work together and how
the organization fits into its competitive environment.
• It is crucial for top managers, whose ability to see “the big
picture” can have major repercussions on the success of the
business. However. conceptual skill is still necessary for middle
and lower/supervisory managers, who must use this skill to
envision their scope of work. For example, how work units and
team are best organized.
• Decision making skill: ability of a person to take timely and accurate
decisions using mental ability and presence of mind
• Organizational skill: help to select and assign different people to different
works. There is always a right person for the right job.

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 Managerial Skills

Interpersonal skills
• involves human relations, or the manager’s ability to
interact and communicate effectively with organizational
members and helps avoid creating confusion and
annoyance.
• A manager with excellent technical skill but poor
interpersonal skill is unlikely to succeed in their job.
• Motivation is also a part of interpersonal skill. Motivating skill
inspires people to do what the manager wants them to do.
• Another interpersonal skill is the leadership skill which helps
to inspire confidence and trust in the subordinates in
order to have maximum cooperation from them and lead
them for getting the work done.
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 Managerial Skills
Diagnostic skills
• used to investigate problems, decide on a remedy and
implement a solution.
• involves other skills-technical, interpersonal, conceptual and
political.
• Lower-level managers may deal primarily with issues of
motivation and discipline, such as determining why a particular
employee's performance is flagging and how to improve it.
• Middle level managers are likely to deal with issues related to
larger work units, such as a plant or sales office. For instance, a
middle-level manager may have to diagnose why sales in a retail
location have dipped.
• Top level managers diagnose organization-wide problems, and
may address issues such as strategic position, the possibility of
outsourcing tasks, or opportunities for overseas expansion of a
business etc.
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 Managerial Skills
Political skills
• It involves obtaining power and preventing other employees
from taking away one's power.
• Managers must use power to achieve organizational
objectives. This skill can often reach goals with less effort than
others who lack political skill.
• using political skill without appropriate Ievels of other skills
can lead to promoting a manager's own interest rather than
reaching organizational goals. Managers at all levels require
political skill.
• Top managers need political skill in order to successfully
operate in their organizational and external environments.
Examples: interacting with competitors, suppliers, customers,
shareholders, government and the public may require political
skill at all levels of management.
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 Importance of Management
• In order to achieve the organizational goal, an effective
management is very important because it brings together basic
resources popularly known as 6 M’s – Men, Material, Machines,
Methods, Money and Market and makes use of these resources
efficiently.
• Management moves an organization towards its purposes or
goals by assigning activities that organization members perform.
• If Management ensures that all the activities are designed
effectively, the production of each individual worker will
contribute to the attainment of the organizational goals.
• Management strives to encourage individual activity that will
lead to reaching organizational goals and to discourage
individual activity that will hinder the accomplishment of the
organization objectives.
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Importance of Management

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 Importance of Management
Helps in Achieving Goals
• It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective
manner to achieve goals.
• It directs group efforts towards achievement of pre-
determined goals.
• By defining objective of organization clearly there would be
no wastage of time, money and effort.
• Management converts disorganized resources of men,
machines, money etc. into useful enterprise.
• These resources are coordinated, directed and controlled in
such a manner that enterprise work towards attainment of
goals.
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 Importance of Management

Optimum Utilization of Resources

• Management utilizes all the physical & human resources
productively. This leads to efficacy in management.
• Management provides maximum utilization of scarce
resources by selecting its best possible alternate use in
industry from out of various uses.
• It makes use of experts, professional and these services
leads to use of their skills, knowledge, and proper utilization
and avoids wastage.
• If employees and machines are producing its maximum
there is no under employment of any resources.

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 Importance of Management

Reduces Costs
• It gets maximum results through minimum input by proper
planning and by using minimum input & getting maximum
output.
• Management uses physical, human and financial resources in
such a manner which results in best combination. This helps
in cost reduction.

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 Importance of Management

Establishes Sound Organization

• To establish a sound organizational structure is one of the
objective of management which is in tune with objective of
organization
• and for fulfillment of this, it establishes effective authority &
responsibility relationship i.e. who is accountable to whom,
who can give instructions to whom, who are superiors & who
are subordinates.
• Management fills up various positions with right persons,
having right skills, training and qualification. All jobs should
be cleared to everyone.

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 Importance of Management

Organizational Changes
• It enables the organization to survive in changing
environment.
• It keeps in touch with the changing environment.
• With the change is external environment, the initial co-
ordination of organization must be changed.
• So it adapts organization to changing demand of market
/changing needs of societies.
• It is responsible for growth and survival of organization.

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 Importance of Management

Essentials for Prosperity of Society

• Efficient management leads to better economical production
which helps in turn to increase the welfare of people.
• Good management makes a difficult task easier by avoiding
wastage of scarce resource.
• It improves standard of living.
• It increases the profit which is beneficial to business and
society will get maximum output at minimum cost by creating
employment opportunities which generate income in hands.
• Organization comes with new products/services and
researches beneficial for society.

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 Importance of Management
Effects of Poor Management

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 Thank you !
Email: shreerajshakya@ioe.edu.np

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