MBP Module 1

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INTRODUCTION TO MANAGEMENT

DEFINTION OF MANGAEMENT
According to Henry Fayol “Management is to forecast and
plan, to organise, to command, to co-ordinate and to
control.” It attempts to describe management in terms
of what a manager does and not what management is?

According to Oliver Sheldon, “the term management is


commonly used to cover the formation of policy, its
execution, the designing of the organisation and its
employment.”

According to E.F.L. Breech – “Management can be defined


as a social process entailing responsibility for the effective
and efficient planning and regulation of the operations of an
enterprise,’’
Who Are Managers?
Manager
• Someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished.
NATURE OF MANAGEMENT
•Management as an inborn quality

•Management is social science

•Management in nature is the work done through and with

people

•Management in “as a profession in nature

•Management is an Art

•Management is dynamic

•Management is inter-disciplinary in approach


PURPOSE OR IMPORTANCE OF MANAGEMENT

1.Managing is an essential activity in every aspect of


organised life.
2. Management determines the objectives of the organisation
and takes step to achieve them.
3. Management is brain of an organization.
4. The study of management emphasizes what to do and
to do.
5. Management directs the members of the organization
toward the achievement of its objectives.
6. Management is a critical ingredient in the nation’s economic
and social development.
7. Countries development depends upon good management.
Efficient management is key to national growth.
FUNCTIONS OF MANAGEMENT
FUNCTIONS OF MANAGEMENT

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Leading
6. Co-ordinating
7. Motivating
8. Reporting
9. Controlling
10. Budgeting
11. Decision making
CLASSIFICATION OF LEVELS

1. Top management
2. Middle management
3. Lower or supervisory management
The functions performed by the top management are
stated below-

1.Top management lays down the objectives of the


organisation
2. It prepares strategic plans and policies for the organisation
3. It issues necessary instructions for the preparation of budget,
schedules, procedures, etc.
4. It appoints the executives for the middle level
5. It coordinates the activities of different departments
6. It controls the activities of all departments with the help of
reports, memoranda, etc.
7. It builds and maintains relations with the outside public.
The functions performed by the middle management
are as follows

1.To run the details of the organisation, leaving the top managers
as free as possible of their responsibilities
2.To cooperate in making a smoothly functioning organisation
3.To understand the interlocking of departments in major policies
4.To achieve the coordination between the different parts of the
organisation
5.To build up a contented and efficient staff where reward is given
according to capacity and merit and according to chance or
length of service
6.To develop leaders for the future by broad training and
experience.
7.To build a team spirit where all are working to provide a
product or service wanted by the society.
The function of lower level management

1.To plan and organise the activities of the group.


2.To arrange for necessary materials, machines, tools, etc. for
workers and to provide them the necessary working
environment.
3.To provide training to the workers.
4.To supervise and guide the subordinates.
5.To solve problem of workers.
6.To communicate workers problems to the higher level
management.
MANAGER VERSUS NON MANAGER
 
Subject Non manager Manager

Essence Change Stability

Focus Leading people Managing work

Have Followers Subordinates

Horizon Long-term Short-term

Seeks Vision Objectives

Approach Sets direction  Plans detail

Decision Facilitates Makes

Power Personal charisma Formal authority

Appeal to Heart Head

Energy Passion Control

Dynamic Proactive Reactive

Persuasion Sell Tell

Style Transformational Teansactional

Exchange Excitement for work Money for work

Likes Striving Action

Wants Achievement Results

Risk Takes Minimizes

Rules Breaks Makes

Conflict Uses Avoids

Direction New roads Existing roads

Truth Seeks Establishes

Concern What is right Being right

Credit Gives Takes

Blame Takes Blames


LEVELS OF MANAGER
First-line Managers
Individuals who manage the work of non-managerial
employees.
Middle Managers
Individuals who manage the work of first-line managers.

Top Managers
Individuals who are responsible for making organization-
wide decisions and establishing plans and goals that affect
the entire organization.
TYPES OF MANAGER
LINE MANAGER
Definition
Person who heads revenue generating departments
(manufacturing and selling) and is responsible for achieving
an the organization's main objectives by executing functions
such as policy making, target setting, decision making. Line
manager may have direct control over staff employees.

STAFF MANAGER
Definition
Person who is responsible for the performance of
functions that provide support to line managers and does the
activities that support line functions such as accounting,
maintenance, personnel management. Staff manager may not
have power over line managers.
Other types of managers include types,

1. General Managers
2. Financial Managers
3. Marketing Managers
4. Human Resources Managers
5. Operations Managers
MANAGERIAL ROLES

1.Interpersonal roles
2.Information roles
3.Decisional roles
1. Interpersonal roles
•Figurehead
•Leader
•Liaison

2. Information roles
•Monitor
•Disseminator
•Spokes-person

3. Decisional roles
•Entrepreneur
•Disturbance handlers
•Resource allocation
•Negotiator
MANAGERIAL SKILLS

•Conceptual skills
•Human skills
•Technical skills

Other essential managerial skills

•Interpersonal skills
•Diagnostic skills
•Communication skills
•Time-Management skills
•Decision-Making skills
PRINCIPLES OF SCIENTIFIC MANAGEMENT

1. Replacing rule of thumb with science


2. Harmony in group action
3. Co-operation
4. Maximum output
5. Development of workers
FAYOL’S ADMINISTRATIVE MANAGEMENT
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity if command
5. Unity of direction
6. Subordination of individual to general interest
7. Remuneration of personnel
8. Centralisation
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Espirit de corps
ELTON MAYO AND HAWTHORNE STUDIES

The researchers originally set out to study the


relationship between productivity and physical working
conditions.

They conducted various researches in 4 phases

1. Illumination experiment (1924-27)


2. Relay assembly test room experiment (1927-28)
3. Mass interview programme (1928-30)
4. Bank writing observation room experiments (1931-32)
Criticism of human relations approach

1. Lack of Scientific Validity


2. Limited Focus on Work
3. Over emphasis on group
4. Over stretching of human relations
5. Over-stress on Socio-psychological factors
6. Negative view of conflict
THE LEARNING ORGANIZATION

Learning organizations, where people continually


expand their capacity to create the results they truly
desire, where new and expansive patterns of thinking are
nurtured, where collective aspiration is set free, and
where people are continually learning to see the whole
together.- Senge

Learning organizations are characterized by total


employee involvement in a process of collaboratively
conducted, collectively accountable change directed towards
shared values or principles. Watkins and Marsick
CHARACTERISTICS
1. Provide continuous learning opportunities.
2. Use learning to reach their goals.
3. Link individual performance with organizational
performance.
4. Foster inquiry and dialogue, making it safe for people to share
openly and take risks.
5. Embrace creative tension as a source of energy and renewal.
6. Are continuously aware of and interact with their
environment.

ARGUMENTS
1. Focuses mainly on the cultural dimension
2. Favours individual and collective learning processes
3. Remains rather vague
CHARACTERISTICS OF A 21ST CENTURY MANAGER

1. Characteristics that result in the best performance of executive


and senior level leaders are identified along with the key skills,
knowledge, and attributes of effective and successful leaders
which are then linked to a set of specific behaviours.

2. “Breadth of training is important for the C.E.O. of the year


2000 in functions like marketing, finance, production and
human resource management.”

3. ''Experience in diverse businesses as well as some work


abroad,’’ is equally important for an ambitious executive to
perform his job effectively.

4. As for personal characteristics, the chief executive of


tomorrow will be ''a leader, not a boss,''- Dr. Fredrickson.
5. Unlike the former ITT Corporation chairman, Harold S.
Geneen, an executive SHOULD NOT be tough, autocratic,
abrasive personality, which instill fear in subordinates.
6. The next century’s chief executive will need three
characteristics - creativity, enthusiasms and open-
mindedness, the study said, and will also have a vision
about the company's strategic position in a global
environment.

7. To convey ideas, this leader will have to be a good


communicator, which means he or she must learn the art of
public speaking and develop a talent for dealing with the
news media.

8. The study stressed attitudinal differences among American,


Japanese, European and Latin American chief executives.
SOCIAL RESPONSIBILITIES OF MANAGERS

1.Internal social responsibilities


Are concerned with assuring due process, justice, equity
and morality in the selection of employees, their training and
education.

1.External social responsibilities


Refer to such actions as stimulating minority
entrepreneurship, improving the balance of payment or training
and hiring hard-core unemployed.
The management owes social obligations to two groups of
society. They are
•Insiders: shareholders and employees
•Outsiders: customers, suppliers, government and the society
as a whole.
Obligations and responsibilities towards
Shareholders or Owners

1. Stability and growth of the company


2. Declaration of reasonable dividend
3. Protection of assets of the company
4. Trustee of shareholder
5. Information regarding financial position of a
company
Responsibilities towards customers

1.To meet needs of the consumers


2.To produce right quality of goods
3.To give prompt service to customers
4.To follow fair trade practices
5.True and fair advertisement
6.Proper distribution of goods
Responsibilities and obligation towards
workers and employees

1. Fair wages
2. Paying attention towards the worker’s rights
3. Cooperation
4. Better working conditions
5. Adequate service benefits
6. Opportunities for their growth
Responsibility and obligations towards
society and community

1. To achieve socio-economic objectives


2. Improvement of local environment
3. Help in employment opportunities
4. Welfare activities of the community
5. Efficient use of resources
6. Follow the ethics of business
Responsibilities towards government

1.To abide by the laws of the country


2.To pay government taxes honestly, fully and in time.
3.To avoid giving bribe to the government employees.
4.To encourage fair trade practices.
5.To discourage the concentration of economic power.
6.To discourage activities this is not in accordance with the business.
GLOBAL
AWARENESS
It is a desire to learn about and a willingness to respect
people from other cultures
The understanding that everyone has a culture which affects
the way we view ourselves and the world.
Global Awareness understands cultures, languages &
traditions other than your own.

Why is global awareness important?


College Admissions
Career Success
Help your community and nation stay competitive
Help solve the world’s problems

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