MANAGEMENT PROCESS & CONCEPTS

UNIT-1

INTRODUCTION
 TOPICS

Management-Definitions
Types of Managers
Managerial Roles and Functions
Management - Science or Art ?
Administration Vs Management
External Environment-Managing People and
Organizations in the Context of New Era; Managing for
competitive advantage
The Challenges of Management-Corporate Social
Responsibility-Managerial Ethics
Management- Definitions
Management- Definitions
Management- Definitions
Management- Definitions
Management- Definitions
Management- Definitions
 Management- Definitions

Management is the function of Executive

Leadership anywhere

Ralph Davis
 Management- Definitions
Management is the process of designing and
maintaining an environment in which Individuals
Working together in groups accomplish their aims
effectively and efficiently.
 It’s a Process carrying out
Planning, Organizing,Staffing,Leading and Controlling
 Applies to all Organizations
 Applies to all levels
 Aims to create surplus
 Effectiveness / Efficiency
 Types of Managers
Dr. Kurt Levin

Democ Autocr Laissez

ratic atic -Faire
●
Collaborative ●
High ●
Delegative
Decision
Orders/Results ●
No Criticism
Maker ●
Emphasis on ‘’
●
Emphasis on”
You and I’’
●
Responsibili
WE” ties for all
●
Punitive
●
Constructive
Criticism Objectives
Criticism
Levels of Management
 Managerial Roles
-Henry Mintzberg

Interpers Information
onal al
1. Recipient Role
1.Figurehead
2. Disseminating
2.Role Leader Role
Role 3. Spokes Person
3. Liaison Role Role
Managerial Functions
Henry Fayol

Planning
Controlli
ng

Organizi
ng

Leading
 Managerial Skills
Robert L. Katz

TECHNICAL HUMAN CONCEPTUAL DESIGN

SKILLS SKILLS SKILLS SKILLS

Knowledge Ability to Ability to see Ability to

 Methods understand The Big Picture Solve the
 Technique Motivate Vision Problems
Get along (added by
with people Koontz
&
Weihrich)
 Management
Science or Art ?

●
Universally accepted Principles
●
Experimentation & Observation
Science ●
Cause & Effect Relationship
●
Test of Validity & Predictability

●
Practical Knowledge
●
Personal Skill
Art ●
Creativity
●
Perform through Practice
 Management
Science or Art ?
Goal
Formulation

Philosophy

Science
Go al Accomplishment &
Evaluation

Art
Implementation
 Management
As a Profession

Formal
Education &
Training

Service Motto

Conduct
Code of
ative Body
Represent
 Management
Administration Vs. Management
Administration is the overall determination of Policies,
setting up of Major Objectives and laying of broad plans

Administration is broader than Management

Administration is part of Management

Administration and Management are identical

 Management
Administration Vs. Management
Differences between Administration & Management

Points of discussion Administration Management

Nature Thinking function Doing function
Scope Broad objectives/policies Implements
Level Top Middle/Lower
Skills Conceptual/human Technical/Human
Represents Owners/Investors Salaried
Usage Govt./Military Business Orgns.
 Management
External Environment

• Organizations exchange resources with and are

dependent on External Environment.
• External Environment is defined as all elements
outside an Organization that are relevant to its
operations.
• Organizations take Inputs from the External
Environment, transform them into Products or
Services, and then send them back to External
Environment as Outputs.
 Management
External Environment

The External Environment has both

A) DIRECT-ACTION ELEMENTS:
1. External Stakeholders- Customers, Suppliers, Government,
Special Interest Groups, Consumer Advocates, Labor Unions
Financial Institutions, Competitors
2. Internal Stakeholders- Employees, Shareholders and Board
of Directors
B) INDIRECT-ACTION ELEMENTS:
Social, Economic, Technological, Political Variables
 Management
Natural Environment

• Current Environmental Concerns :

1. Pollution
2. Climate Changes
3. Ozone Depletion
• Frameworks for evaluation actions for control
1. Cost – Benefit Framework
2. Sustainable Development Framework
 Management
Managing for Competitive advantage

Competitive advantage is something that places a person or an

organization above competition
 An organization that is capable of outperforming its competitors over
a long period of time has sustainable competitive advantage.
 Competitive advantages are attributed to a variety of factors, including
cost structure, brand, quality of product offerings, distribution
networks, intellectual property and customer support.
 Management
Managing for Competitive advantage
 Management
Managing for Competitive advantage
 Management
Challenges of Management
Corporate Social Responsibility

“Corporate Social Responsibility is a term describing a

company’s obligations to be accountable to all of its
stakeholders in all its operations and activities.

Socially responsible companies consider the full scope of

their impact on communities and the environment when
making decisions, balancing the needs of stakeholders
with their need to make a profit.”
 Management
Challenges of Management

 Corporate Social Responsibility

 Ministry of Corporate Affairs has recently notified Section 135
and Schedule VII of the Companies Act(CRS Rules) which has
come into effect from 1 April 2014.
 Applicability: (a) net worth of the company to be Rs 500 crore
or more; (b) turnover of the company to be Rs 1000 crore or
more; (c) net profit of the company to be Rs 5 crore or more.
 CSR Committee and Policy: Every qualifying company requires
spending of at least 2% of its average net profit for the
immediately preceding 3 financial years on CSR activities
 Management
Challenges of Management
Corporate Social Responsibility
Activities under CSR:
1. eradicating extreme hunger and poverty
2. promotion of education
3. promoting gender equality and empowering women
4. reducing child mortality and improving maternal health
5. combating human immunodeficiency virus, malaria and other diseases
6. ensuring environmental sustainability
7. employment enhancing vocational skills
8. social business projects
9. contribution to the Prime Minister's National Relief Fund
10.relief and funds for the welfare of the Scheduled Castes, the Scheduled
Tribes, other backward classes, minorities and women.
 Management
Corporate Social Responsibility- Topics List
BUSINESS ETHICS Global Ethics ,Ethical Marketing , Pricing, Billing,
Contracting Product Quality and Safety Consumer
Privacy
CORPORATE CONTRIBUTIONS Partnerships in the Community Involvement

HUMAN RIGHTS Child Labor Policies, Discrimination Policies, Health and

Safety, Codes of Conduct ,Living Wage ,Working Hours
CORPORATE GOVERNANCE Shareholder Engagement
COMMUNITY ECONOMIC Recruitment & selection in Underserved Communities
DEVELOPMENT Minority and Women
WORKPLACE Diversity , Benefits, Health and Safety, Childcare,
Workplace Culture
ENVIRONMENT Alternative Energy Sources ,Climate Change ,Energy
Efficiency and Conservation “Forest Friendly” Practices
Green Building or Product Design, Recycling Efforts
Sustainable Business Practices ,Water Conservation and
Quality
 Management
BUSINESS ETHICS
 Principles of behavior that distinguishes between
good and bad; Right and Wrong.
 Ethics are principles of personal & professional
conduct
 Ethics are broader than law
 Differs from society to society
 Ideals of human conduct- complex
 deals with applications of moral principles to business
problems
 Management
BUSINESS ETHICS
Ethical Guidelines
 Obey the Law
 Tell the truth
 Show respect to people
 stick to golden rule “ do unto others as you would have them
do unto you”
Institutionalizing ethics
1. Ombudsman : Person outside the normal chain of command
2. Whistleblower : Employee eho reports unethical practices
to outside authorities as press, govt, public interest groups
 Management
BUSINESS ETHICS
Determinants of Ethics
1. Family, school and Religion
2. Peers, colleagues, superiors
3. Experiences in life
4. Values and morals
5. Threatening situations
6. Organizational demands
7. Govt. rules and regulations
8. Social pressures