MANAGEMENT

MANAGEMENT PROCESS
PROCESS
AND
AND ORGANIZATIONAL
ORGANIZATIONAL
BEHAVIOUR
BEHAVIOUR
PGDIB 103
What is Management?
Management is the process of designing
and maintaining an environment in which
individuals, work together in groups to
accomplish their aims effectively and
efficiently.
Or
Management is the art of knowing what you
want to do and then seeing that it is done
in the best and cheapest way.
 What is Management?
• Management is a process. It is a process of carrying out the
essential functions of planning, organize, staffing, leading and
controlling.
• Management applies to every kind of organization, whether it is
government, profit making or non profit making organizations.
• It applies to managers at all levels in the organization.
• The aim of all managers is the same: To create surplus
• Management is concerned with productivity : This implies
effectiveness and efficiency.
 Management
• Our own scriptures- the Bhagavad Gita, the Vedas, the epics
and even the fables speak a lot on management in detail. For
e.g. Sahaviryam Karavavahai (Rig Veda) which means “Let us
get strengthened together by working together”, underline
the true spirit of teamwork in a working environment.
• When things are outside our control , we apply the Indian
concept of actions divorced from desire and thus to de-
stress the self. Niskhama Karma Yoga states that one must
perform one’s own work, without expecting a result(2.47
Sankhya Yoga, Bhagavad-Gita )
 Leadership and Integrity:
A Lesson from the Mahabharata
After the Mahabharata war is over, while Bheeshma is lying on the bed of arrows waiting for an appropriate
time to die, Krishna sends the victorious Yudhishthira to his grandsire to learn about life, about human nature
and about leadership from the dying man who was a master of every major branch of knowledge known to man
then. He tells an ancient story about Narada and Prahlada.
Prahlada the Asura was then emperor of all the three worlds, conquered by the power of his integrity. As it
always happens, Indra becomes jealous of Prahlada’s power and feels shaky – there is the threat of losing his
throne to someone like the mighty Asura. For the throne of Indra belonged to the man who had the highest
character, who performed the most difficult austerities. Indra assumes the form of a Brahmin and goes to
Prahlada and serves him as a disciple, with the desire to learn from him the secret of his success. Indra
continues to serve Prahlada and eventually the Asura emperor, pleased with the devotion shown and the
service rendered, asks his disciple to ask for a boon, not knowing he is Indra.
Initially Indra refuses politely, saying that all his desires have been fulfilled. But when Prahlada insists, he
asks: “If you are pleased with me, Emperor, please give me your character, your integrity.”
Prahlada is shaken by the request, but he grants the boon since he had offered it: after all, that is what a
man of integrity does. Indra accepts the boon and goes away.
Soon Prahlada sees a dazzlingly lustrous being emerging from his body and leaving him.
When Prahlada asks him who he is, the being tells him that he is Sheela [Hindi: Sheel.
Integrity], and he is
Leaving him because Prahlada has given him away. “I shall now happily live,” Sheela
adds, “in the Brahmin to whom you have given me away.”
 Leadership and Integrity:
A Lesson from the Mahabharata
Soon Prahlada sees another radiant being emerging from his body. Asked who he is, the being
introduces himself as Dharma: virtue and righteousness. After Dharma too leaves him, telling
him he is going to join Integrity to live in the body of the Brahmin since he, Dharma, lives only
where Integrity is. Soon Prahlada finds another effulgent being emerging from him, this time
Satya, Truth, and then another, Vritta, Uprightness, and then yet another Bala, Strength, all
leaving him one by one to live in the Brahmin, following Integrity.
Following Bala, it is a splendorous goddess that emerges from Prahlada’s body and when asked
she tells him she is Shree, the goddess of wealth, prosperity, good fortune and all else that is
auspicious. Shree tells Prahlada that she had on her own come and begun living in his body, but
now she had no choice but to leave him, because she always followed Integrity, Virtue, Truth,
Uprightness and Strength.
Answering Prahlada’s question, she also tells him the Brahmin was none other than Indra, Indra
has robbed him of his Integrity and where Integrity is not, there can be no Dharma, no Truth,
no Morality, no Strength and no wealth, prosperity or good fortune.
“dharmah satyam tatha vrttam balam chaiva tathapyaham
sheelabhoota mahaprajna sada nastyatra samshayah.” - Mahabharata 12.124.62
“Learns from this story and practice what it says,” Bheeshma tells Yudhishthira
concluding the story about the importance of integrity to a leader.
Yudhishthira sums up the lesson he has learnt from his grandsire: Sheelam
pradhanam purushe. Integrity is the most important thing in man.
 Concept of Management
• Management as a discipline
• Management as a group of People
• Management as a process
Features of Management
• Organized activities
• Existence of objectives
• Relationship among resources
• Working with and through people
• Decision making
 Functions of Management
• Planning- It involves selecting missions and objectives and the actions to
achieve them.
• Organizing- It involves establishing a structure of roles for people to fill
in an organization and ensuring that all the tasks necessary to
accomplish goals are assigned to people who can do them best.
• Staffing- It involves the process of filling positions in the organization
structure.It involves recruitment, selection,appraisal, training etc.
• Leading- It is influencing of people so that they can contribute to the
organization and group goals.
• Controlling- It is measuring and
• correcting of activities of subordinates to
• ensure their conformity.
 Management and
Administration
Various approaches
1. Administration is above management;
2. Administration is a part of management;
3. Management and Administration are same.
Administration- Administration is that phase of a business enterprise
that concerns with the overall determination of institututional objectives
and the policies necessary to be followed in achieving those objectives.
Management on the other hand is an executive function which is primarily
concerned
with carrying out broad policies laid down by the administration.
 Difference between
Administration & Management
Basis of difference Administration Management

1. Level in org. • Top level • Middle & lower

• Policy formulation & level
2. Major focus
objective • Policy execution
determination for objective
achievement
3. Nature of functions • Determinative • Executive
4. Scope of functions • Broad & conceptual • Narrow &
operational
5. Factors affecting
• External factors • Mostly internal
decisions
• Employees
6. Employer-employee • Entrepreneurs &
owners • Technical
relation
7. Qualities required • Administrative
 Top Managerial Roles
Interpersonal Roles- The leader role, The liaison
role(communicating, particularly with outsiders, The
figurehead role( performing ceremonial and social duties
as the organization's representative.
Decision Roles- The entrepreneurial role, the disturbance
handler role, the negotiator role etc.
 
 Nature of Management
• Multidisciplinary
• Dynamic Nature of principles
• Relative not Absolute Principles
• Management; Science or Art
• Management as profession
• Universality of Management
 Importance of
Management
• Effective utilization of Resources
• Development of Resources
• To Incorporate Innovations
• Integrating Various Interest Groups
• Stability in the society
 Evolution of Management
thought
Though the practice of management can
definitely be traced back to ancient time say during
the era of building huge
structures like pyramids in Egypt or temples in
India or the churches, but the formal
discipline of management as we find it today
evolved only during the later part of
nineteenth century.
 Systems approach to
Management
Every business organization is a part of industry
and has to operate in a given economic system
and society. It receives inputs, transforms
them and exports the output to the
environment. The various inputs are
transformed through the managerial functions
into outputs. So ,any business must be
described as an open system.
System’s approach

Inputs Transformation Process Outputs

External Environment
 Contingency approach
Contingency or situational approach is
that there cannot be a particular
management action which will be
suitable for all situations. Rather, an
appropriate action is one which is
designed on the basis of environment
and internal states.
 What do you mean by
Organizational Behaviour
Organizational Behaviour is a field of
study that investigates the impact that
individuals, groups and structure have on
behaviour within organisations, for the
purpose of applying such knowledge
toward improving an organization’s
effectiveness.
 Contributing disciplines
Organization Behavior. There are
mainly six disciplines that contribute
to the body of organizational
behavior viz. psychology, sociology,
social psychology, anthropology and
economics
 Models of Organizational
Behavior
There are 4 models of OB
• Autocratic - The basis of this model is power with a managerial
orientation of authority. The employees in turn are oriented towards
obedience and dependence on the boss. The employee need that is
met is subsistence. The performance result is minimal.
• Custodial - The basis of this model is economic resources with a
managerial orientation of money. The employees in turn are oriented
towards security and benefits and dependence on the organization.
The employee need that is met is security. The performance result is
passive cooperation.
• Supportive - The basis of this model is leadership with a managerial
orientation of support. The employees in turn are oriented towards
job performance and participation. The employee need that is met is
status and recognition. The performance result is awakened drives.
•
 Models of Organizational
Behavior

• Collegial - The basis of this model is partnership

with a managerial orientation of teamwork. The
employees in
turn are oriented towards responsible behavior
and self-discipline.
The performance result is moderate enthusiasm.
 Organizational behavior –Case
study
Too nice to People
John has graduated from the college of Business administration at
State Universityand has joined his family’s small business, which
employees twenty-five semi skilled workers.During the first week on
the job, his dad called him in and said: “ John, I’ve had a chance to
observe you working with the men and women for the past two days
and,although I hate to, I feel I must say something. You are just too
nice to people. I know they taught you that human relations stuff at
the university, but it just doesn’t work here. I remember when we
discussed the Hawthorne studies when I was in school and everybody at
the university got all excited about them, there is more to managing
people than just being nice to them.
-
If you were John how would you explain to
your father the new perspective that is
needed and how the study of
organizational behavior will help the
business be successful in the new Paradigm?