BASIC MANAGEMENT

(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
1. Concept
Scope
Principles
Functions
Theories
 • Organize
MANAGEMENT KEY • Organizations
CONCEPTS • Goal,
Objectives,
Strategy,
Tactics
• Management
• Effectiveness
• Efficiency
• Manager
• Leader
• Leadership
• Administrator

3
 • Management etymology:
• Managgaire (italian, 1555–1565): means to handle or train
horses
• Manus (latin): handling
MANAGEMENT
• Mesnagement (french) and later menagement: management
during 17th and 18th
• The word ‘management’ was first popularized by Frederick
Winslow Taylor” In 1911
“Management is the art of getting things done through
and with people”.
“The process of getting things done effectively and
efficiently, with and through people”.

• Management can be defined under following orientations.

• Productivity orientation
• Human relation orientation
• Process orientation
• Decision-Making orientation
• Systems approach
 • Production Orientation
– Management is to conduct the affairs of a business, moving
towards its objectives through a continuous improvement and
optimization of resources via the essential management
functions. – Henri Fayol (1917)
MANAGEMENT :

• Human Relation Orientation

– Management is the art of getting things done through and with
DEFINITIONS

informally organized groups, and it is the art of creating the

environment in which people can perform and individuals
could cooperate towards attaining group goals.
• Process Orientation
– Management is the process by which managers create, direct,
maintain and operate purposive organizations through
systematic coordinated cooperative human efforts. – Dalton
McFarland (1976)
• Decision-Making Orientation
– The management quality is judged by the quality of decision in
diverse situation in the economic front and surrounded risks
and uncertainties. – Banerjee (1996)
• Systems Approach
– Management is defined as the process of planning, organizing,
directing and controlling to accomplish the predetermined
objectives effectively through the coordinated use of human
and material resources.
NATURE OF MANAGEMENT • Multidisciplinary • Goal Oriented
• Dynamic nature of • Process
principles
• Supreme in Thought
• Relative, not absolute and Action
principles
• Group Activity
• Management: Science &
Art • Important Organ of
Society
• Management as
profession • System of Authority
• Universality of
management
• Factor of Production
 EFFICIENCY &
EFFECTIVENESS
Goal Achievement: Managerial Efficiency versus
Effectiveness
 MANAGER
• The terms management or manager come from a number of
sources.
• In 1555–1565, the word ‘maneggiare’ (to handle or train horses)
from the Latin word mano (means hand) i.e. manus.
• “one who manages”, 1588
• “one who conducts a house of business or public institution in
1705.
• The word ‘management’ was first popularized by Frederick Winslow
Taylor” In 1911
 BASIS FOR
LEADER MANAGER
COMPARISON
Meaning A leader is a person who A manager is a person who
influences his subordinates to manages the organisation
achieve a specified goal. and is responsible for
LEADER VS.

planning, direction,
MANAGER
coordination and control

Approach Sets Direction Plans details

Create circle of Influences Power
Subordinate Followers Employees
Style Transformational Transactional
Decision Facilitates decision Makes decision
Aim Growth and development. Attainment of the required
result.
Focus People Process and Procedure

Change Leaders promotes change. Mangers react to change.

Conflict Uses conflict as an asset Avoid conflict

People Aligns people Organizes people

Strives For effectiveness For efficiency
 WHO MANAGED BEST
• Mark Hurd, CEO of HP (Hewlett Packard): By
controlling cost, improving efficiency and focusing on
innovation
• Takeo Fukui, CEO of HONDA in Tokyo: continued to
focus on fuel-efficient small cars with his efforts on
innovation & research
• Jeroen Van Der Veer, CEO of Royal Dutch Shell in
the Netherlands, based on the philosophy of:
Eliminate, Simplify, Standardize and Automate.
MANAGEMENT VS
ADMINISTRATION
 BASIS FOR
MANAGEMENT ADMINISTRATION
COMPARISON
Meaning An organized way of managing people and The process of administering an
things of a business organization is called the organization by a group of people is known
Management. as the Administration.

Authority Middle and Lower Level Top level

Role Executive Decisive
Concerned with Policy Implementation Policy Formulation
Area of operation It works under administration. It has full control over the activities of the
organization.
Decides Who will do the work? And How will it be What should be done? And When is should
done? be done?
Work Putting plans and policies into actions. Formulation of plans, framing policies and
setting objectives
Focus on Managing work Making best possible allocation of limited
resources.
Key person Manager Administrator
Represents Employees, who work for remuneration Owners, who get a return on the capital
invested by them.
Function Executive and Governing Legislative and Determinative
LEADERSHIP: TRAITS • Intelligence
• Self-confidence
• Determination
• Integrity (honesty and
trustworthiness)
• Sociability
 14 principles of management asgiven by Henry Fayol (Administrative
PRINCIPLES OF MANAGEMENT management theory) are:
• Division of Work
• Authority and Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of Individual to General Interest
• Remuneration of Personnel
• Centralization
• Scalar Chain (hierarchy, or chain of command)
• Order (arrangement of things and placement of people; Everything should have
its place)
• Equity
• Stability of Tenure (period of service in a position)
• Initiatives
• Esprit de Corps (promote team spirit and unity)
 IMPORTANCE OF
MANAGEMENT
The importance of management may be traced in the
following contexts:
• Effective Utilisation of Resources
• Development of Resources
• To incorporate Innovations
• Integrating Various Interest Groups
• Stability in the Society
MANAGEMENT

Planning
PROCESS

Organizing
Controlling Coordinating
Staffing

Leading
MANAGEMENT

Top
Management
LEVELS

Middle
Management

Lower Management
 WHAT MANAGERS
DO??
3 ways/approaches to look at what
Managers Do?
1. Four Function Approach
2. Management Role Approach
3. Skills and Competencies Approach
1. FOUR FUNCTION • First time Proposed by Henri Fayol & according to him
managers engaged in five management activities (i.e. plan,
organize, command, coordinate & control).
• POLC Cycle (Planning, Organizing, Leading and
APPROACH
Controlling)

Planning

Organizing
Controlling Coordinating
Staffing

Leading
SKILLS APPROACH
2. MANAGERIAL

Conceptual Human Technical

Skills Skills Skills

Political Skills
22
 Mintzberg’s Management Roles Approach, 1960,
3. ROLES APPROACH Empirical study of 5 chief executives
MANAGEMENT THEORIES
 Scientific Management Theory
By F.W. Taylor (Father Of Scientific Management)

Principles of Scientific Management

• Science, not rule of thumb
• Harmony, no conflict or disagreement
• Cooperation, not individualism
• Maximum output, not restricted output
• Development of each man to his greatest efficiency
• Equitable division of work & responsibility
Four Principles to increase efficiency:
1. Study the way the job is performed now & determine new ways to do it.
–Gather detailed, time and motion information.
–Try different methods to see which is best.
2. Codify the new method into rules.
–Teach to all workers.
3. Select workers whose skills match the rules set in Step 2.
4. Establish a fair level of performance and pay for higher performance.
–Workers should benefit from higher output.
 Scientific Management Theory

Key Concepts of Scientific Management

1. Scientific task planning and Doing
2. Functional foremanship
3. Job Analysis
4. Standardization
5. Scientific selection and training of workers
6. Differential piece rate system
7. Time & Motion studies (By Gilbreth; 18 basic hand motions-
Therbligs)
8. Mental Revolution (sound relationship between management
and workers)
Taylor’s emphasized on five basic
concepts to improve theory of
management and efficiency

1.Research
2.Standardization
3.Planning
4.Cooperation &
5.Control
Ford and Frederick Taylor’s scientific
management

https://www.youtube.com/watch?v=8PdmNbqtDdI
HOW TODAY’S MANAGERS
USE SCIENTIFIC
MANAGEMENT ???
 2. Administrative Theory
Henri Fayol’s 14 Principles
• Henri Fayol: ( Father of Administrative management OR Father of Modern Management)
– Believed that the practice of management was distinct from other organizational functions.
– Developed principles of management that applied to all organizational situations.
 2. Administrative Theory
Henri Fayol’s 14 Principles

The activities of an Industrial organization could be divided

into 6 groups:
• Technical (production & maintenance)
• Commercial (Buying, selling & exchange)
• Financial (Capital formation & utilization)
• Security (Protection of property & human being)
• Accounting (Accounting & Statistics)
• Managerial (Planning, organizing, commanding,
coordinating & control)
 Studying Management: By Fayol

Managerial General Elements of

Qualities Principles of Management
Management
• Physical Ability • Planning
14 Principles of
• Mental Ability Management • Organizing
• Moral Ability • Commanding
• Educational • Coordination
Ability • Controlling
• Technical
Ability
• Experience
 HOW TODAY’S MANAGERS
USE GENERAL
ADMINISTRATIVE THEORY???
3. The systems school of management
Ludwig von bertalanffy
1937
(general systems theory)
 • Defines a system as a set of interrelated and interdependent parts arranged in a
manner that produces a unified whole
– Closed system : a system that is not influenced by and does not interact with
3. Systems approach
its environment
– Open system: a system that dynamically interacts with its environment
– Stakeholders: any group that is affected by organizational decisions and
policies
– Emergent System: the effects emerge as an outcome of interactions among
systems/sub-systems.

The Management System

• It is an open system comprising parts such as organizational resources (capital,
raw materials, workers), the production process, information systems, finished
goods, that are needed to achieve the organization’s goals.
 3 types of sub-systems in
organizations

Technical Power
Sub-System Social Sub-System
Sub-System

• Represents the formal • Provides Social • Individuals display

part of the security and Social
Organization. satisfaction to its
members
• All Organizational
• Emergence of social
structure elements
groups to meet social
needs of people
power behaviour
based on the ability
to influence others,
dominant nature,
skills, importance of
the job, the
proximity to decision
making authority etc.

Emergent
System
 HOW RELEVANT IS THE
SYSTEM APPROACH TO
TODAY’S MANAGEMENT???
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
2. PLANNING
 – To understand the importance of
planning
– To know what plan and planning mean
OBJECTIVES
– To learn about steps involved in planning
LEARNING

– To learn about different types and levels

of planning
– To understand SWOT analysis as a tool
for business strategies development
– To understand the use of BCG matrix
(Boston Consulting group’s) in
categorization of businesses
– To understand concept of MBO and its
relevance to planning
 • Planning
– A primary managerial activity that involves:
• Defining the organization’s goals
• Establishing an overall strategy for achieving those goals
• Developing plans for organizational work activities
• Planning refers to a systematic approach towards making
PLANNING

decisions about goals and objectives and the associated activities

that need to be carried out along with various resource
requirements.
• “Planning is deciding in advance what to do, how to do, when to do and
who is to do it. Planning bridges a gap between from where we are to
where we want to go”
-Harold, Koontz and O’Donnel
 • Purposes of Planning
– Provides direction
WHY DO MANAGERS
– Reduces impact of
changes
– Minimizes waste and
PLAN?

redundancy
– Sets the standards to
facilitate control
 • Elements of Planning
HOW DO MANAGERS
– Goals (Strategic, Financial, Stated & Real Goals)
– Objectives
– Strategies (Systematic plan of action)
– Plans (Actions/Means)
PLAN?

– Policies (Broad statements/set of guidelines; define

frameworks)
– Procedures (methods or processes:
Series of acts)
– Rules (Principles/conditions to
govern behaviour)
– Program (combination of goals,
policies, procedures, rules, set of
activities, resources etc. for
accomplishment of a purpose)
Linking performance to planning

• The Relationship Between

Planning and Performance
– Formal planning is
associated with:
• Higher profits and
returns on assets.
• Positive financial
results.
– The external
environment can
reduce the impact of
planning on
performance.
– Formal planning must
be used for several
years before planning
begins to affect
performance.
THE DOWNSIDE OF TRADITIONAL
GOAL SETTING
TYPES OF PLANS
FACTORS AFFECTING THE
CHOICE OF PLANS
• Organizational level
• Degree of environmental uncertainty
– For High uncertainty: Plans in advance &
flexible in nature
• Length of future commitments
LEVELS OF PLANNING
GOAL SETTING SMART Goals
 Goals And Plans
• Steps in Goal Setting • Developing Plans

1. Review the organization’s mission Contingency Factors in a Manager’s Planning

statement. 1. Manager’s level in the organization
Do goals reflect the mission? Strategic plans at higher levels
2. Evaluate available resources. Operational plans at lower levels
Are resources sufficient to accomplish 2. Degree of environmental uncertainty
the mission?
Stable environment: specific plans
3. Determine goals individually or with
others. Dynamic environment: specific but
flexible plans
Are goals specific, measurable, and
timely? 3. Length of future commitments
4. Write down the goals and communicate Commitment Concept: current plans
them. affecting future commitments must
be sufficiently long-term to meet
Is everybody on the same page? those commitments.
5. Review results and whether goals are
being met.
What changes are needed in mission,
resources, or goals?
 PLANNING PROCESS

Identify problems and needs

Develop goals and objectives

Feedback

Develop alternative strategies

Select strategies and develop a detailed plan

Design a monitoring and evaluation plan

PLANNING PROCESS
CRITICISMS OF PLANNING
– Planning may create rigidity.
– Plans cannot be developed for dynamic
environments.
– Formal plans cannot replace intuition and
creativity.
– Planning focuses managers’ attention on
today’s competition not tomorrow’s survival.
– Formal planning reinforces today’s success,
which may lead to tomorrow’s failure.
– Just planning isn’t enough.
Identify problems and Needs
 DEVELOPING GOALS, OBJECTIVES AND
STRATEGIES

SWOT analysis helps in identification of possible strategies based on the

following criteria:

• Build and develop on strengths

• Resolve and overcome weaknesses
• Exploit and avail opportunities
• Avoid or minimize the effect of threats

BCG (Boston Consulting Group) has developed a tool that enables the
mapping of all the organization’s businesses based on the criteria of
market growth and relative competitive position vis-à-vis competitors.
BCG MATRIX—A TOOL FOR MAPPING BUSINESSES
OF ORGANIZATION
BCG MATRIX
• BCG matrix
• (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand
portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of
market growth (vertical axis) axis to evaluate the potential of business brand portfolio and
suggest further investment strategies. These two dimensions reveal likely profitability of the
business portfolio in terms of cash needed to support that unit and cash generated by it.
• The Brand Portfolio refers to an umbrella under which all the brands or brand lines of a
particular firm functions to serve the needs of different market segments.
• The general purpose of the analysis is to help understand, which brands the firm should invest
in and which ones should be divested.
• Relative market share (RMS). Higher corporate’s market share results in higher cash returns.
This is because a firm that produces more, benefits from higher economies of scale and
experience curve, which results in higher profits.
• Market growth rate (MGR). High market growth rate means higher earnings and sometimes
profits but it also consumes lots of cash, which is used as investment to stimulate further
growth. Therefore, business units that operate in rapid growth industries are cash users and
are worth investing in only when they are expected to grow or maintain market share in the
future.
• Stars
– High Growth, High Market Share
– Star units are leaders in the category. Products located in this quadrant
are attractive as they are located in a robust category and these
products are highly competitive in the category.
– Strategic choices: Vertical integration, horizontal integration, market
penetration, market development, product development

• Question Marks
– High Growth, Low Market Share
– Like the name suggests, the future potential of these products is
doubtful. Since the growth rate is high here, with the right strategies and
investments, they can become Cash cows and ultimately Stars. But they
have low market share so wrong investments can downgrade them to
Dogs even after lots of investment.
– Strategic choices: Market penetration, market development, product
development.
• Cash Cows
– Low Growth, High Market Share
– These products or services generate interesting profits and cash but need
to be replaced because the future growth will be lower. If they are
profitable, they can finance other activities in progress (including stars
and question marks).
– Strategic choices: Product development, diversification

• Dogs
– Low Growth, Low Market Share
– Dogs hold low market share compared to competitors. Neither do they
generate cash nor do they require huge cash. In general, they are not
worth investing in because they generate low or negative cash returns
and may require large sums of money to support. Due to low market
share, these products face cost disadvantages.
– Strategic choices: Retrenchment (the reduction of costs or spending in response to
economic difficulty), liquidation (the conversion of assets into cash (i.e. by selling them.)
PRODUCT LIFE CYCLE
AND BCG MATRIX
 WHY BCG MATRIX
• To asses
– Profile of product /business
– Cash demands of products
BCG MATRIX

– The development cycle of product

• Resource allocation & divestment decisions

MAIN STEPS OF BCG MATRIX

• Identifying & dividing a company into SBU
• Assessing & comparing the prospects of each SBU
according to two criteria 1) SBU’s relative market share
2) Growth rate of SBU’s industry
• Classifying the SBU’s on the basis of BCG matrix
• Developing strategic objective for each SBU
 • BENEFITS
– BCG matrix is simple & easy to understand
– It helps to quickly & simply screen the opportunity
open to you, & help you think about how you can
BCG MATRIX

make the most of them.

– It is used to identify how corporate cash resources
can best be used to maximize company’s future
growth & profitability.
• LIMITATION
– BCG matrix uses only two dimensions relative
market share & market growth rate.
– Problem of getting data on market share & market
growth
– High market share does not mean profits all time.
– Business with market share can be profitable too.
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D. (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
3. Organizing: Organizational
Structure and Design
 Learning Outcomes

 After completion of this chapter, students will be

able to:
 Describe six key elements in organization
structure,
 Compare and contrast traditional and
contemporary organizational designs,
 Discuss the design challenges faced by today’s
organizations.
 Introduction
Organizing
 The function of management that creates the
organization’s structure

Organization Structure
 The formal arrangement of jobs within an organization

Organization design
 A process in which managers develop or change their
organization’s structure
 Purposes of Organizing

• Divides work to be done into specific jobs and departments.

• Assigns tasks and responsibilities associated with individual jobs.
• Coordinates diverse organizational tasks.
• Clusters jobs into units.
• Establishes relationships among individuals, groups, and
departments.
• Establishes formal lines of authority.
• Allocates and deploys organizational resources.
 Strategic
Apex
Mintzberg’s Five
Basic Parts of
an Organization

Middle
Line

Operating Core
6 Key elements of Organization Structure
 Work specialization
 Departmentalization
 Chain of command
 Span of control
 Centralization and decentralization
 Formalization
 1. Work Specialization
 The degree to which tasks in the organization are divided into separate
jobs with each step completed by a different person; also known as
division of labor.

 Overspecialization
can result in human
diseconomies from
boredom, fatigue,
stress, poor quality,
increased
absenteeism, and
higher turnover.
 2. Departmentalization
 How jobs are grouped together.

 Types of Departmentalization:
 Functional
 Product
 Customer
 Geographic
 Matrix
 Process
The Five Common Forms of Departmentalization
Geographical Departmentalization
Product Departmentalization
 Process Departmentalization

+ More efficient flow of work activities

– Can only be used with certain types of products
 Customer Departmentalization

+ Customers’ needs and problems can be met by specialists

- Duplication of functions
- Limited view of organizational goals
Matrix Departmentalization
 3. Authority and Responsibility
 Authority:
 The rights inherent in a managerial position to give orders and expect them to be
obeyed
 Line Authority: Authority the entitles manager to direct the work of employees
 Staff Authority: Position with some authority that have been created to support,
assist and advice those holding line authority
 Power
 An individual’s capacity to influence decisions
 Responsibility
 An obligation to perform assigned activities
 Unity of Command
 The concept that a person should have one boss and should report only to that
person.
 Chain of command
 The management principle that no person should report to more than one boss
Line and Staff Authorities
 Authority versus Power
 4. Span of Control
 Span of control
 The number of subordinates a manager can direct efficiently
and effectively supervised by a manager
 5. Centralization & Decentralization
 Centralization
 The degree to which decision making is concentrated at upper
levels in the organization.
 Organizations in which top managers make all the decisions and lower-
level employees simply carry out those orders.
 Decentralization
 Organizations in which decision making is pushed down to the
managers who are closest to the action.
 Employee Empowerment
 Increasing the decision-making authority (power) of employees.
 Factors that Influence the Amount of
Centralization and Decentralization

• More Centralization
 Environment is stable.
 Lower-level managers are not as capable or experienced at
making decisions as upper-level managers.
 Lower-level managers do not want to have a say in decisions.
 Decisions are relatively minor.
 Organization is facing a crisis or the risk of company failure.
 Company is large.
 Effective implementation of company strategies depends on
managers retaining say over what happens.
 Factors that Influence the Amount
of Centralization and Decentralization

• More Decentralization
 Environment is complex, uncertain.
 Lower-level managers are capable and experienced at making
decisions.
 Lower-level managers want a voice in decisions.
 Decisions are significant.
 Corporate culture is open to allowing managers to have a say in
what happens.
 Company is geographically dispersed.
 Effective implementation of company strategies depends on
managers having involvement and flexibility to make decisions.
 6. Formalization
 Formalization
 The degree to which jobs within the organization are
standardized and the extent to which employee behavior is
guided by rules and procedures.
 Highly formalized jobs offer little choice over what is to be done.
 Low formalization means fewer constraints on how employees do their
work.
 Mechanistic Versus Organic Organization

• Rigid & Tightly controlled • Highly adaptive & flexible

structure structure; Allows rapid
adjustments to change
• High specialization
• Cross-functional teams
• Rigid departmentalization
• Cross-hierarchical teams
• Clear chain of command
• Free flow of information
• Narrow spans of control
• Wide spans of control
• Centralization
• Decentralization
• High formalization
• Low formalization
Contingency Factors: Affect Structural
choice
 Structural decisions are influenced by:
 Overall strategy of the organization
 Based on work of Alfred Chandler
 Innovative Vs. Cost Minimization Strategies
 Size of the organization
 Large Vs. Small Sized organizations
 Technology used by the organization
 Routine technology Vs. Non routine Technology
 Degree of environmental uncertainty
 Stable Vs. Dynamic environment
Woodward’s Findings on Technology,
Structure, and Effectiveness
 Horizontal Diversification of Firms: It means adding parallel products or services to the
existing product/service line. The existing technical, marketing and financial expertise is applied to
new products also. The ‘related’ approach to diversification is concentric diversification, the
‘unrelated’ approach is conglomerate diversification.
 Ex: Tata industries have followed conglomerate diversification by diversifying into unrelated areas
such as automobiles, iron and steel, telecommunication, consumables (salt) etc.
 Horizontal integration is the acquisition of a related business: a fast-food restaurant chain
merging with a similar business in another country to gain a foothold in foreign markets.
 Vertical diversification is also known as vertical integration. In this growth strategy, a
company expands its business in the forward or backward direction. Firms add new products (or
services) complementary to the existing products. Vertical diversification defines whether to
perform some or all
 Backward Integration: It is a form of vertical integration where firms integrate backwards to
produce the inputs or raw materials. Rather than buying inputs from outside, firms manufacture
their own inputs. If sugar mills own sugarcane farms, they are said to have diversified through
backward integration. It helps in reducing selling price and increases turnover and profits.of these
functions.
 “Forward integration is a type of diversification strategy which involves the entry of a firm into
the business of finishing, distributing, or selling of some of its present outputs.” It refers to “moves
altering the nature of the distribution of the firm’s output (toward end users).”
 Common Organizational Designs
A. Traditional Designs
 Simple structure
 Low departmentalization, wide spans of control, centralized authority, little
formalization
 Functional structure
 Departmentalization by function
 Operations, finance, marketing, human resources, and product research
and development
 Divisional structure
 Composed of separate business units or divisions with limited autonomy
under the coordination and control the parent corporation.
Strengths and Weaknesses of Traditional
Organizational Designs
B. Contemporary Organizational Designs
 Removing External Boundaries
 Virtual Organization
 An organization that consists of a small core of full-time employees and that
temporarily hires specialists to work on opportunities that arise.
 Network Organization
 A small core organization that outsources its major business functions (e.g.,
manufacturing) in order to concentrate on what it does best.
 Modular Organization
 A manufacturing organization that uses outside suppliers to provide product
components for its final assembly operations.
Today’s Organizational Design Challenges

 Keeping Employees Connected

 Widely dispersed and mobile employees
 Building a Learning Organization
 To design efficient and effective flexible work arrangemets
 Managing Global Structural Issues
 Cultural implications of design elements
The six coordination mechanisms are:
1. Mutual adjustment : Coordination of work is made possible by a process of informal
communication between people conducting interdependent work.
2. Direct supervision : Coordination is achieved by one individual taking responsibility for the
work of others.
3. Standardisation of work processes : Coordination is made possible by specifying the work
content in rules or routines to be followed. Coordination occurs before the activity is
undertaken. Mintzberg adopted Taylorism: procedures are usually specified by work-study
analysis.
4. Standardization of output : Coordination is obtained by the communication and clarification of
expected results. The individual actions required to obtain a goal are not prescribed. This goal
setting method is closely related to Drucker's Management by Objectives.
5. Standardization of skills and knowledge : Coordination is reached through specified and
standardised training and education. People are trained to know what to expect of each other
and coordinate in almost automatic fashion.
6. Standardisation of norms : Norms are standardized, socialization is used to establish common
values and beliefs in order for people work toward common expectations. Mintzberg added this
cultural based mechanism at a later stage.
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
LEADING & LEADERSHIP

 Leading is that management function which “Involves

influencing others to engage in the work behaviors
necessary to reach organizational goals”.

 Leadership is the art or process of influencing people so

that they will strive willingly and enthusiastically toward
the achievement of group goals.

 Leading refers to the function while, leadership refers

to the process.
 HOW LEADERS INFLUENCES
OTHERS/ ROLES OF LEADERS
 Managers are expected to maintain effective workforces.
To be able to do so, they are required to perform
leadership roles.
 Leaders are said to be able to influence others because of
the power they possess. Power refers to the ability
of a leader to exert (apply) force on another.
 POWER BASES
 Power is one’s capacity to influence others, while Authority is the
right to direct others.
TRAITS OF EFFECTIVE LEADERS
 A high level of personal drive
 The desire to lead

 Personal integrity (Honesty & Strong moral

principles)
 Self-confidence

 Analytical ability or judgment

 Knowledge of the company, industry or

technology (for problem solving)
 Charisma (Personal power & Talent)

 Creativity

 Flexibility

 Emotional Intelligence
WHO IS A GREAT LEADER?
MANAGERS VS. LEADERS ROLES
LINK BETWEEN MANAGEMENT AND
LEADERSHIP
TYPES OF LEADERS
LEADING
 LEADING
 "Leading is the use of influence to motivate employees to
achieve organizational goals" (Richard Daft).
 Managers must be able to make employees want to participate
in achieving an organization's goals. Three components make
up the leading function:
 Motivating employees
 Influencing employees (with Power And other influencing tactics)
 Forming effective groups.

 The leading process helps the organization move toward goal

attainment.
 LEADING CONTD...
 Studies of motivation and motivation theory provide
important information about the ways in which workers
can be energized or influenced to put forth productive
effort.
 Studies of communication provide direction as to how
managers/leaders can effectively and persuasively
communicate.
 Studies of leadership and leadership style provide
information regarding questions, such as, “What makes a
manager a good leader?” and “In what situations are
certain leadership styles most appropriate and effective?”
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
Communication
Communication
• Communication is the transmission of an idea or
feeling so that the sender and receiver share the
same understanding.

• It is a process of exchanging –
• Information
• Ideas
• Thoughts
• Feelings
• Emotions
Through –
• Speech
• Signals
• Writing
 Features

• Interactive process
• Two way process
• Dynamic process
• Social process
• At least two person
• Exchange of information
• Pervasive (Common) function
• Formal or informal function
 Types of Communication

On the basis of On the basis of On the basis of mode

Organization Structure Directions of expressions

Formal
Horizontal
Written

Informal
Upward
Verbal

Downward
Gestural
Diagonal
Types/Forms Of Communication (Contd….)
•Verbal Communication
• Oral Communication On the basis of
• Written Communication means, kinds,
manners, forms
•Non-Verbal Communication

•Intrapersonal Communication
•Interpersonal Communication
On the basis of
•Extrapersonal Communication Types/Parties
Involved
•Mass Communication
(forms: Broadcast; Mobile; Radio; Film
•Media Communication
Significance of Communication

Facilitates planning
Facilities decision making
Facilitates coordination
Facilitates changes
Effective Control
Effective Staffing
Smooth functioning of enterprise
 Why is Body Language important?
Body language plays a big role in intuition as it
gives us messages about the other person, that
we can interpret at an intuitive level.

55%
7%

38%

Source: www.google.com
 Communication Channels
•Communication Channels types:
–Face-to-Face or Personal Communication
–Broadcast Media Communications (TV, radio and loud speakers)
–Mobile Communications Channels
–Electronic Communications Channels (email, Internet, intranet and social
media platforms)
–Written Methods of Communication (Policies, letters, memos, manuals,
notices and announcements)
•Channels vary in their “information-richness.” Information-rich channels
convey more nonverbal information.

Research shows that effective managers tend to use more information-rich

communication channels than less effective managers (Allen, D. G., &
Griffeth, R. W., 1997; Yates, J., & Orlikowski, W. J.,1992; Fulk, J., & Boyd,
B., 1991)
Communication : Process
 Approaches to overcome
Barriers
• Proper Language
• Consistent Behaviour
• Gesture and Tone
• Proper Medium
• Feedback
 Effective Communication
• “The process of Sending a message in such a way that the
message received is as close in meaning as possible to the
message intended”.
 Tips to become effective
communicator
•Don't Show Negative Body Language
•Do Not Interrupt the Other Person
•Send the data only to the people who require that
•Ensure clarity in message and look for a real feedback
•Understand other’s emotions, cultures and language etc.
•Think Before You Speak
•Speak with clarity and judgement
•Listen effectively
•Don't be Defensive or Attacking – Be Neutral
•Don't Divert
•Be Confident of Your Ideas
•Be Open to Receiving Feedback
•Use the Right Communication Method
Effective communications techniques and
stratégies

• The silent treatment • Language choices

• Listening  Keep a sense of
• Feedback humour
• Observation  Smile
• Stress management  Honesty
• Empathy  Speak equally
• Enthusiasm  Never stop learning
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
Managerial
Control
LEARNING OBJECTIVES • Understand the importance
of control as a management
function
• Understand how control is
an essential function for
achieving goals
• Learn about important
features and characteristics
of controlling
• Understand about steps
involved in controlling
• Learn about importance of
budgeting as a tool of
control
• Learn about balanced
scorecard as a strategy
management control tool

3
CONTROLLING
• Controlling
– The process of
monitoring
activities to ensure
that they are being
accomplished as
planned and of
correcting any
significant
deviations.
• The Purpose of
Control
– To ensure that
activities are
completed in ways
that lead to
accomplishment of
organizational
goals.
 The final phase of the management process is controlling.
"Controlling means monitoring employees' activities,
determining whether the organization is on target toward its
CONTROLLING
goals, and making correction as necessary (Richard Daft ).
• Controlling ensures that, through effective leading, what has
been planned and organized to take place has in fact taken
place. Three basic components constitute the control
function:
• Elements of a control system
• Evaluating and rewarding employee performance
• Controlling financial, informational, and physical
resources.
• Controlling is ongoing process. An affective control function
determines whether the organization is on target toward its
goals and makes corrections as necessary.
• These all managerial functions are necessary and are related
and interrelated to each other.
Control functions & Features
• Control functions:
– Strengthening Planning
– Empowering employees
– Protecting the workplace
The Control Process
CONTROLLING: PROCESS Steps involved in Controlling:
• Set Standards of Performance
– Standards need to be simple, specific, practical,
measurable and achievable with allocated
resources- time, money and efforts.
• System and Processes to measure Performance
• Identifying Variations in Performance and Corrective
Measures
– Before taking corrective actions, communication is
required.
• Taking Corrective Actions
– Reset the goals & standards,
– Reassign roles & duties,
– Reallocate required resources
– Developing new skills
The types of controls organizations and managers use

Control that takes

Monitoring
It is intelligent place after a work
ongoing activities
anticipation of the activity is done to
to ensure they are
problem and improve
consistent with the
timely prevention. performance in
standards.
future
COMMON TECHNIQUES TO CONTROL
• Budgets
• “Budgetary control is a process of comparing the
actual outcomes with the pre-set budget data to
establish achievements and accomplishments and to
take necessary actions for overcoming the
variations by either making corrections in the
budget estimates or by taking corrective steps to
overcome the differences”, By G. R. Terry (1974).
• Types of Budgets (Sales Budget, Selling &
Distribution Cost Budget, Production Budget, Cost of
Production Budget, Purchase & Raw-material
Budget, Budget for Profit and Loss Account etc.)
COMMON TECHNIQUES • BALANCED SCORECARD AS A STRATEGIC MANAGEMENT
CONTROL TOOL

• Introduced by: Kaplan and Norton, 1992

TO CONTROL
• Multi-dimensional and multi-stakeholder approach to
measure performance.
• Its objective is to translate an organization’s mission
and vision into actual (operational) actions (strategic
planning).
• A performance metric
• This performance measurement system includes
financial measures and nonfinancial drivers for
future financial outcomes. The non-financial drivers
are related to customer, internal processes, learning,
and growth. It is a framework that considers both
outcome and processes, and internal and external
perspectives of different stakeholders’ interests.
BALANCE SCORE CARD

Objectives: continuous improvement activities

Measures: or key performance indicators, or KPIs, which track strategic
performance
Targets: our desired level of performance
Initiatives: projects that help you reach your targets
BALANCE SCORE CARD
 CONTEMPORARY ISSUES IN CONTROL

• Cross-Cultural Issues
– The use of technology to increase direct corporate control of local operations
– Legal constraints on corrective actions in foreign countries
– Difficulty with the comparability of data collected from operations in different
countries
• Workplace Concerns
– Workplace privacy versus workplace monitoring:
• E-mail, telephone, computer, and Internet usage
• Productivity, harassment, security, confidentiality, intellectual property
protection
– Employee theft
• The unauthorized taking of company property by employees for their
personal use.
– Workplace violence
• Anger and violence in the workplace is affecting employee productivity.
CONTEMPORARY ISSUES IN CONTROL (CONTD…)

• Customer Interactions
– Service profit chain
• Is the service sequence from employees to customers to profit.
– Service capability affects service value which impacts on customer satisfaction
that, in turn, leads to customer loyalty in the form of repeat business (profit).

• Corporate Governance
– The system used to govern a corporation so that the interests of the corporate
owners are protected.
• Changes in the role of boards of directors
• Increased scrutiny of financial reporting
– More disclosure and transparency of corporate financial information
– Certification of financial results by senior management
BASIC MANAGEMENT
(BMT 499)

By:-Dr. Sundeep Kumar

BE(IT),MBA, Ph.D., (MNIT Jaipur)
Department of Management Studies
MNIT, Jaipur
 What is Motivation?
Motivation is a psychological
Feature that induces an individual
to act towards a desired goal.
It is the processes that account for
an individual’s intensity, direction,
and persistence of effort towards
attaining a goal.

Key Elements
1. Intensity: how hard a persontries
2. Direction: toward beneficial/avoidance goal
3. Persistence: how long a persontries
 Types of Motivation.
•Extrinsic Motivation.
1. Salary.
2. Bonuses.
3. Organized activities.
4. Fear of failure/punishment
5. Promotion/Grades.
6. Punishment/Layoffs

•Intrinsic Motivation:
1. Learning and Growth opportunity.
2. Social contact and status.
3. Curiosity
4. Respect and Honour.
5. Love
Motivation Process
OR
 Theories of Motivation.
•Content Theories of Motivation:
1. Mc Gregor’s Theory X& Theory Y(1960)
2. Maslow’s Hierarchy of Needs (1943, 1954)
3. Hertzberg’s Motivator-Hygiene Theory (1968)
4. Alderfer’s ERGTheory (1972)

•Process Theories of Motivation.

1. Expectancy Theory, Vroom (1964)
2. Equity Theory , Adam (1963)
3. Goal Setting Theory, Edwin A Locke (1968)
4. Reinforcement Theory, Skinner(1953)
Maslow’s Hierarchy of Needs
 Maslow’s Hierarchy of Needs

• Accordingly to Maslow’s Theory there are four types of

need that must be satisfied before an individual can act
unselfishly.
• Maslow referred the lower needs as “deficiency needs”
because their lack causes tension.
• We are driven to satisfy the lower needs but are drawn to
meet the higher ones.
• A satisfied need motivates people.
 Physiological Needs

Physiological needs are those required to sustain life, suchas:

– Air
– Water
– Food
– Sleep
 Safety Needs
Once physiological needs are met, one's attention turns to
safety and security in order to be free from the threat of
physical and emotional harm. Such needs might be fulfilled by:
–Living in a safe area
–Medical Facilities
–Job security
–Law and Order
 Social Needs
Once a person has met the lower level physiological and safety
needs, higher level needs awaken. The first level of higher level
needs are social needs.
Social needs are those related to interaction with others and may
include:
–Friendship
–Belonging to a group
–Giving and receiving love
 Esteem Needs
Esteem needs may be classified as internal or external.
Internal esteem needs are those related to self-esteem such as
self respect and achievement
External esteem needs are those such as social status and
recognition. Some esteem needs are:
–Self-respect
–Achievement
–Attention
–Recognition
–Reputation
 Self-Actualization
Self-actualization is the top of Maslow's hierarchy of needs. It
is the quest of reaching one's full potential as a person.

Self-actualized people tend to have needs such as:

–Peace
–Truth & Justice
–Knowledge
–Meaning of life
 Vroom’s Expectancy Theory
This theory was proposed by Victor. H. Vroom in 1964, who believed that people are
motivated to perform activities to achieve some goal to the extent they expect that certain
actions on their part would help them to achieve the goal.
Vroom’s Expectancy Theory is based on the assumption that an individual’s behavior
results from the choices made by him with respect to the alternative course of action,
which is related to the psychological events occurring simultaneously with the behavior.
This means an individual selects a certain behavior over the other behaviors with an
expectation of getting results, the one desired for.
Thus, Vroom’s Expectancy Theory has its roots in the cognitive concept, i.e. how an
individual processes the different elements of motivation.
 Vroom’s Expectancy Theory
This theory is built around the concept of valence, instrumentality, and
Expectancy and, therefore, is often called as VIE theory.

•The algebraic representation of Vroom’s Expectancy theory is:

•Motivation (force) = ∑Valence x Expectancy

•Expectancy – a person’s belief that more effort will result in success. If you work harder, it
will result in better performance.
•Instrumentality – the person’s belief that there is a connection between activity and goal.
If you perform well, you will get reward.
•Valence – the degree to which a person values the reward, the results of success.
Vroom’s Expectancy Theory
 Equity Theory.
1. By Adam (1963)
2. People value fair treatment.
3. The Adam’s Equity Theory posits that people maintain a
fair relationship between the performance and rewards in
comparison to others.
4. The structure of equity in the workplace is based on the
ratio of inputs to outcomes.
 It's hard for an employee to feel motivated in the
workplace if he or she feels they were treated unfairly.
 Goal Setting Theory.
• By Edwin A Locke (1968)
• Goal setting involves establishing
SMART goals.
• On a personal level, setting goals helps
people work towards their own
objectives.
• Goals are a form of motivation that
sets the standard for self-satisfaction
with performance.
• It is considered an “open” theory, so as
new discoveries are made it is modified.
 Goal Setting Theory.
Goal setting and Feedback go hand in hand. Without
feedback, goal setting is unlikely to work. Properly-delivered
feedback is also very essential, and the following should be
followed for good feedback:
•Create a positive context for feedback.
•Use constructive and positive language.
•Focus on behaviours and strategies.
•Tailor feedback to the needs of the individuals.
•Make feedback a two-way communication process.