Basic Concepts: Prof Antre Ganesh

Basic Concepts
Manager, Managing, Workplace, Organization, Management Functions,

Mintzberg’s Managerial Roles, The Universality of Management,
Approaches to Management - Early Management, Classical Approach,
Behavioral Approach, Quantitative Approach, Contemporary Approaches.
Managerial Competencies: Communication, team work, planning and
administrative, strategic and global competencies; Managerial Skills; How
Isthe Manager’s Job Changing?, Importance of Customers to the Manager’s
Job, Importance of Innovation to the Manager’s Job, Importance of
Sustainability to the Manager’s Job.
Prof Antre Ganesh 7-1

Managing, Workplace, Organization,
7-2
Organization
Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.
Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals, goals are
fundamental elements of organization.
The Role of Management

To guide the organizations towards goal
accomplishment 7-3
4
Definition of Management
• Management :
On expanding : Manage – men – tactfully
Manage – Men – technology
Manage – men – as team
Manage – competencies
Manage – objectives (MBO)
Manage – men and things (resources – physical,
inanimate)
MANAGE – f ( RISKS, REWARDS)
Competencies = f (SKATE)
(Men/Women- no discrimination)
Norway will have by 2007, 40% women in all fields, in govt orgs, in corporates
and also in NGOs. This is now made as a law.
Dr.R. Krishna - Management Principles 7-4

5
• MANAGEMENT IS A FUNCTION OF :
M = f(RESULTS, FEEDBACK,
RESULTS……)
MANAGING THE INTERNAL AND EXTERNAL ENVIRONS
IN THE BIO-ECOSYSTEMS, THROUGH VARIOUS
EFFECTIVE AND EFFICIENT PROCESSES, WITH THE
OBJECTIVE OF ACHIEVING LAID DOWN EXPECTED
RESULTS.
Dr.R. Krishna - Management Principles 7-5

6
Definition of “Management”
• By Griffin:
“A set of management functions directed at the
efficient and effective utilization of resources in
the pursuit of organization goals.”
• By Koontz and Weihrich:

“Management is the process of designing and
maintaining an environment in which
individuals working together in groups,
efficiently accomplish selected aims.”
7-6
7
Peter F. Drucker-Father of Modern Management

• Management is an organ, organs can be
described and defined only through their
functions
Terry & Franklin…
• Management is a distinct process consisting of
activities of planning, organizing, actuating,
and controlling, performed to determine and
accomplish stated objectives with the use of
human beings and other resources.”
7-7
Management Functions
7-8
The Functions of
Management
7-2
Managers
Planning Organizing Staffing Directing Controlling

activities to resources and the employees’ the
achieve the activities to organization activities organization’s
organization's achieve the with qualified toward activities
organization’s people achievement to keep it
objectives
objectives of objectives on course
7-9
Planning
• Def : A systematic process of reaching a desired
state by establishing goals and formulating
strategies to achieve them.
• Planning involves selecting missions and

objectives and the actions to achieve them.
• Planning precedes any other managerial function
• Plans need to be made utilizing the least of the
resources.
• Planning is required in each and every job
7-10
How does a manager Plan?
Establish objectives
Develop Strategies
Determining
planning premises
Establish policies
Coordinate Develop program

throughout the for
planning accomplishments
Develop preventive Establish schedules

&/or contingent and budgets
action
Identify potential Establish
problems procedures
7-11
Organising
• Def : The process of structuring and
coordinating an organization’s resources to
carry out the strategies formulated in the
planning phase effectively and efficiently
• Stated simply, determining what needs to be
done and who is to do it
7-12
Organising Process
Step:1 Step: 2
Division Coordination
Step: 4 Step: 3
Flow of Control of
information tasks
7-13
Within Organising we have…
• Division of work
• Line and staff
• Levels of authority
• Organisation charts
• Decentralisation
• Job description
7-14
Staffing
Staffing is defined as filling and keeping

filled positions in the organisation structure
through :
1.Identifying work force requirements
2.Recruiting, selecting, placing
3.Induction and Orientation
4.Training/developing
5.Promoting,appraising,planning the
careers, compensating
6.To accomplish their tasks efficiently
and effectively.
7-15
Directing
• Def : The process of directing and motivating all
involved parties to help achieve the organization’s
goals effectively and efficiently
7-16
• Guidelines on Directing
• Do not make it a struggle for power
• Avoid an offhand manner
• Watch out for your words
• Do not assume that the worker understands
• Be sure to get feedback right away
• Do not give too many orders
• Provide just enough detail
• Watch out for conflicting instructions
• Do not choose only the willing worker
• Try not to pick on anyone
• ABOVE all do not play the “BIG SHOT” 7-17
Controlling
• Def: The process of monitoring activities to
ensure they are being accomplished as planned
and of correcting any significant deviations
• Controlling is the measurement and correction of

performance in order to make sure that
enterprise objectives and the plans devised to
attain them are accomplished.
• Planning and Controlling are closely related. 7-18

Controlling Process
• Establish Performance
standards
• Monitor actual
performance
• Measure performance
• Correct deviations from
standards
7-19
Controlling Techniques
• Budget
• Statistical Data
• Reports and Analysis
• Time Budgeting
• Program Procedural
Planning & Control.
7-20
Controlling Decisions
• Evaluates the performance of an organization
and its units to see whether the organization is
progressing in the desired direction, and taking
corrective action when and where necessary
• Making sure what you want to happen does
indeed happen!
• The quality an quanity of controlling decisions
depends a great deal on the quality of previously
made planning, organizing and directing decisions
• The better the planning, organizing and directing,
the better will be controlling! 7-21
2
2
Henry Mintzberg…Managerial Roles

• He has categorized Managerial roles into
three groups
 Interpersonal Roles
 Informational Roles
 Decisional Roles
7-22
2
3
Interpersonal Roles
• As Manager serves as a figurehead – a symbol; as a
leader, ie., hires, trains, encourages, fires,
remunerates, judges; signing documents required
by law, and officially receiving visitors.
• As Leaders the mangers perform all managerial
activities involving subordinates including hiring,
training and firing. As leaders they are responsible
for motivation and direction of subordinates.
• Liaison Persons Serving as liaison between outside
contacts (community, suppliers etc) and the
organization 7-23
2
4
Informational roles
• Mintzberg pointed out that managers function as
nerve centers in which they obtain information
about the environment and their own organization
by monitoring them. The three informational roles
are:
• Monitor
• Disseminator
• Spokesperson
7-24
2
5
Informational roles
• Montiors: As monitors, managers seek and are presented
with information about the operations for which they are
responsible and bout the environment
• Disseminators: they are disseminators of information
flowing from both external and internal sources;
Managers pass information from outside their units to
inside and also from one subordinate to another
• Spokesperson: mangers speak on behalf of their units to
outsiders. They transmit information to outsiders on
organization’s plans, policies, actions and results and
serve as experts on organization's industry
THESE INFORMATIONAL ROLES PROVIDE A
COMMUNICATIONS NETWORK FOR THE ORGANIZATION.
7-25
2
6
Decisional Roles
• A manager serves as an entrepreneur by being:
An initiator
Innovator
Problem discoverer
Designer of improvement projects
As a disturbance handler of unexpected situations
As a resource allocator and
As a negotiator
7-26
2
7 As ENTREPRENUEURS : managers are initiators, innovators, problem-
discoverers and designers of improvement projects that direct and control
change in the organization. Thus, entrepreneurial work refers to mangers’
efforts to improve the functioning and accomplishments of their
organizations
AS DISTURBANCE HANDLER: managers take corrective action in
response to unforeseen problems such as resignation of subordinates,
breakdown of productive equipment, etc. It is worthwhile to mention that
while entrepreneurs, managers voluntarily take initiative to improve
performance, as disturbance handler
AS RESOURCE ALLOCATOR: they are responsible for allocating human,
physical, and monetary resources. MAKING DECISIONS ABOUT HOW
LIMITED TIME, MONEY, MATERISALS, LABOR HOURS AND OTHER
RESOURCES WILL BE APPLIED TO MULTIPLE AND COPETING
CLAIMS UPON THEM IN THE WORK OF RESOUCRCE ALLOCATION
ROLE
MANGERS AS NEGOTIATORS: they discuss issues and bargain with
other units to gain advantages for their own units. Mintzberg opines : that
7-27
“negotiation is resource trading in real-time.”
2
8
• ALL THE THREE ROLES PUT TOGETHER IS
CALLED AS:
THE MANAGERIAL WORK ACTIVITY APPROACH
• The whole management process is actually an

integration of the work activity (Mintzberg) and the
management functions.
7-28
APPROACHES TO MANAGEMENT
I. Early Classical Approach
•F.W. Taylor’s scientific Management
•Principles of scientific management
•Henry Fayol’s Contribution
•Fourteen principles of management
7-29
II. NEO- CLASSICAL APPROACHES
• A.THE HUMAN RELATIONS MOVEMENT
• B. BEHAVIOURAL APPROACH
7-30
III. MODERN APPROACH
•A. QUANTITATIVE APPROACH

•B. SYSTEM APPROACH
•C. CONTINGENCY APPROACH:
7-31
DIFFERENT APPROACHES TO THE
ANALYSIS OF MANAGEMENT
• EMPIRICIAL OR CASE APPPROACH
• INTERPERSONAL BEHAVIOR APPROACH
• GROUP BEHAVIOR APPROACH
• COOPERATIVE SOCIAL SYSTEMS APPROACH
• SOCIO- TECHNICAL SYSTEMS APPROACH
• DECISION THEORY APPROACH
• SYSTEMS APPROACH
• MATHEMATICAL OR “ MANAGEMENT SCIENCE “ APPROACH
• CONTINGENCY OR SITUATIONAL APPROACH
• MINTZBERG’S MANAGERIAL ROLES APPROACH
• McKINSEY’S 7-S FRAMEWORK APPROACH
• OPERATIONAL APPROACH
• CONTINGENCY APPROACH:
7-32
Copyright © 2004 Prentice
1–33 7-33
Hall, Inc. All rights reserved.
The Pre-modern Era
• Ancient massive construction projects
– Egyptian pyramids
– Great Wall of China
• Michelangelo the manager

1–34 7-34
Adam Smith’s Contribution To The
Field Of Management
• Wrote the Wealth of Nations (1776)
– Advocated the economic advantages that
organizations and society would reap from the
division of labor:
• Increased productivity by increasing each worker’s
skill and dexterity.
• Time saved that is commonly lost in changing tasks.
• The creation of labor-saving inventions and
machinery.

1–35 7-35
The Industrial Revolution’s Influence
On Management Practices
• Industrial revolution
– Machine power began to substitute for human power
• Lead to mass production of economical goods
– Improved and less costly transportation systems
became available
• Created larger markets for goods.
– Larger organizations developed to serve larger
markets
• Created the need for formalized management practices.

1–36 7-36
Classical Contributions
• Classical approach
– The term used to describe the hypotheses of the
scientific management theorists and the general
administrative theorists.
• Scientific management theorists
– Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt
• General administrative theorists
– Henri Fayol and Max Weber

1–37 7-37
Scientific Management
• Frederick W. Taylor
– The Principles of Scientific Management (1911)
• Advocated the use of the scientific method to define the
“one best way” for a job to be done
– Believed that increased efficiency could be achieved by
selecting the right people for the job and training them
to do it precisely in the one best way.
– To motivate workers, he favored incentive wage plans.
– Separated managerial work from operative work.

1–38 7-38
Taylor’s Four Principles of Management
• Develop a science for each element of an individual’s work, which

replaces the old rule-of-thumb method.
• Scientifically select and then train, teach, and develop the worker.
(Previously, workers chose their own work and trained themselves as best
they could.)
• Heartily cooperate with the workers so as to ensure that all work is done
in accordance with the principles of the science that has been developed.
• Divide work and responsibility almost equally between management and
workers. Management takes over all work for which it is better fitted than
the workers. (Previously, almost all the work and the greater part of the
responsibility were thrown upon the workers).

1–39 7-39
Scientific Management
Contributors
• Frank and Lillian Gilbreth
– Bricklaying efficiency improvements
– Time and motion studies (therbligs)
• Henry Gantt
– Incentive compensation systems
– Gantt chart for scheduling work operations

1–40 7-40
Administrative Management
• General administrative theorists
– Writers who developed general theories of what
managers do and what constitutes good management
practice
– Henri Fayol (France)
• Fourteen Principles of Management: Fundamental or
universal principles of management practice
– Max Weber (Germany)
• Bureaucracy: Ideal type of organization characterized by
division of labor, a clearly defined hierarchy, detailed rules
and regulations, and impersonal relationships
1–41 7-41
Fayol’s Fourteen Principles of Management
• Division of work • Centralization

• Authority • Scalar chain
• Discipline • Order
• Unity of command • Equity
• Unity of direction • Stability of tenure of
personnel
• Subordination of the
individual • Initiative
• Remuneration • Esprit de corps

1–42 7-42
Weber’s Ideal Bureaucracy
• Division of Labor
• Authority Hierarchy
• Formal Selection
• Formal Rules and Regulations
• Impersonality
• Career Orientation

1–43 7-43
Human Resources Approach
• Robert Owen
– Claimed that a concern for employees was
profitable for management and would relieve
human misery.
• Hugo Munsterberg
– Created the field of industrial psychology—the
scientific study of individuals at work to maximize
their productivity and adjustment.

1–44 7-44
Human Resources Approach
• Mary Parker Follett
– Recognized that organizations could be viewed
from the perspective of individual and group
behavior.
• Chester Barnard
– Saw organizations as social systems that require
human cooperation.
– Expressed his views in his book The Functions of
the Executive (1938).
1–45 7-45
Hawthorne Studies
• A series of studies done during the 1920s and
1930s that provided new insights into group
norms and behaviors
– Hawthorne effect
• Social norms or standards of the group are the key
determinants of individual work behavior.
• Changed the prevalent view of the time that
people were no different than machines.

1–46 7-46
Human Relations Movement
• Based on a belief in the importance of
employee satisfaction—a satisfied worker was
believed to be a productive worker.
• Advocates were concerned with making
management practices more humane.
– Dale Carnegie
– Abraham Maslow
– Douglas McGregor

1–47 7-47
The Quantitative Approach
• Operations research (management science)
– Evolved out of the development of mathematical
and statistical solutions to military problems
during World War II.
– Involves the use of statistics, optimization models,
information models, and computer simulations to
improve management decision making for
planning and control.

1–48 7-48
Social Events That Shaped
Management Approaches
• Classical approach
– Desire for increased efficiency of labor intensive
operations
• Human resources approach
– The backlash to the overly mechanistic view of
employees held by the classicists.
– The Great Depression.
• The quantitative approaches
– World War II
1–49 7-49
The Process Approach
• Management theory jungle (Harold Koontz)
– The diversity of approaches to the study of
management—functions, quantitative emphasis,
human relations approaches—each offer
something to management theory, but many are
only managerial tools.
• Planning, leading, and controlling activities are
circular and continuous functions of
management.
1–50 7-50
The Systems Approach
• 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 its environment
– Open system: a system that dynamically interacts
with its environment
– Stakeholders: any group that is affected by
organizational decisions and policies
1–51 7-51
The Organization and
its Environment

1–52 7-52
The Contingency Approach
• The situational approach to management that
replaces more simplistic systems and
integrates much of management theory
• Four popular contingency variables
– Organization size
– Routineness of task technology
– Environmental uncertainty
– Individual differences

1–53 7-53
Introductory Concepts: What Are
Managerial Competencies?
 Competency – a combination of knowledge,

skills, behaviors, and attitudes that contribute to
personal effectiveness
 Managerial Competencies – sets of knowledge,

skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations
7-54
Why are Managerial Competencies
Important?
 You need to use your strengths to do your best

 You need to know your weaknesses
 You need developmental experiences at work to become
successful leaders and address your weakness
 You probably like to be challenged with new learning
opportunities
 Organizations do not want to waste human resources
 Globalization deregulation, restructuring, and new
competitors add to the complexity of running a business
7-55
A Model of Managerial
Competencies
(adapted from Figure 1.1)
Communication
Competency
Planning and
Teamwork
Administration
Competency
Competency
Global Strategic
Awareness Action
Competency Self-Management Competency
Competency
7-56
A Model of Managerial
Competencies
(adapted from Figure 1.1)
Communication
Competency
Planning and
Teamwork
Administration
Competency
Managerial Competency
Effectiveness
Global Strategic
Awareness Action
Competency Self-Management Competency
Competency
7-57
Introductory Concepts: What Are
Managerial Competencies?
 Competency – a combination of knowledge,

skills, behaviors, and attitudes that contribute to
personal effectiveness
 Managerial Competencies – sets of knowledge,

skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations
7-58
Six Core Managerial Competencies:
What It Takes to Be a Great Manager
 Communication Competency
 Planning and Administration Competency
 Teamwork Competency
 Strategic Action Competency
 Multicultural Competency
 Self-Management Competency
7-59
Communication Competency
 Ability to effectively transfer and exchange information
that leads to understanding between yourself and others
 Informal Communication
 Used to build social networks and good
interpersonal relations
 Formal Communication
 Used to announce major events/decisions/
activities and keep individuals up to date
 Negotiation
 Used to settle disputes, obtain resources,
and exercise influence
7-60
 Deciding what tasks need to be done, determining
how they can be done, allocating resources to enable
them to be done, and then monitoring progress to
ensure that they are done
 Information gathering, analysis, and problem solving
from employees and customers
 Planning and organizing projects with agreed
upon completion dates
 Time management
 Budgeting and financial management
7-61
 Accomplishing tasks through small groups of
people who are collectively responsible and
whose job requires coordination
 Designing teams properly involves having
people participate in setting goals
 Creating a supportive team environment gets

people committed to the team’s goals
 Managing team dynamics involves settling

conflicts, sharing team success, and assign tasks
that use team members’ strengths
7-62
Strategic Action Competency
 Understanding the overall mission and values of

the organization and ensuring that employees’
actions match with them
 Understanding how departments or divisions of

the organization are interrelated
 Taking key strategic actions to position the firm

for success, especially in relation to concern of
stakeholders
 Leapfrogging competitors
7-63
Snapshot
“Sony must sell off businesses that don’t fit

its core strategy of fusing gadgets with films,
music, and game software. That means
selling off its businesses in its Sony Financial
Holdings, which are very profitable.”
Howard Stringer, CEO, Sony

7-64
Multicultural Competency
 Understanding, appreciating and responding to
diverse political, cultural, and economic issues
across and within nations
 Cultural knowledge and understanding of the

events in at least a few other cultures
 Cultural openness and sensitivity to how others

think, act, and feel
 Respectful of social etiquette variations
 Accepting of language differences

7-65
Self-Management Competency
 Developing yourself and taking responsibility
 Integrity and ethical conduct
 Personal drive and resilience
 Balancing work and life issues
 Self-awareness and personal development

activities
7-66
Self-Management Competency
Snapshot
“My strengths and weaknesses haven’t

changed a lot in 51 years. The important
thing is to recognize the things you don’t do
well and build a team that reflects what you
know the company needs.”
Anne Mulcahy, CEO, Xerox

7-67
Skills Needed by Managers
•Leadership
•Technical expertise
•Conceptual skills
•Analytical skills
•Human relations skills
7-68
General Skills for Managers
• Conceptual skills
– A manager’s mental ability to coordinate all of the organization’s
interests and activities
• Interpersonal skills
– A manager’s ability to work with, understand, mentor, and motivate
others, both individually and in groups
• Technical skills
– A manager’s ability to use the tools, procedures, and techniques of a
specialized field
• Political skills
– A manager’s ability to build a power base and establish the right
connections

1–69 7-69
Specific Skills for Managers
• Behaviors related to a manager’s effectiveness:
– Controlling the organization’s environment and its
resources.
– Organizing and coordinating.
– Handling information.
– Providing for growth and development.
– Motivating employees and handling conflicts.
– Strategic problem solving.

1–70 7-70
Managerial Skills
Seven Tips for Successful Leadership
7-71
Managerial Skills
• Judgment • Fairness
• Initiative • Ambition
• Integrity • Emotional stability
• Energy • Co-operation
• Foresight • Objectivity
• Decisiveness • Human Relations skills
• Dependability
Fortune (American business

journal)
7-72
Managerial Skills
• Strength and willingness to work hard
• Perseverance and determination
• An understanding of the market place and
finances
• Audacity and willingness to take risks
• Ability to inspire enthusiasm and co-operation
• Toughness
7-73
Is The Manager’s Job Universal?
• Level in the organization
– Do managers manage differently based on where they are in the
organization?
• Profit versus not-for-profit
– Is managing in a commercial enterprise different than managing in a
non-commercial organization?
• Size of organization
– Does the size of an organization affect how managers function in the
organization?
• Management concepts and national borders
– Is management the same in all economic, cultural, social and political
systems?

1–74 7-74
THE MANAGER’S JOB IS CHANGING
• The Increasing Importance of Customers
• Customers: the reason that organizations exist
• Managing customer relationships is the responsibility of all
managers and employees.
• Consistent high quality customer service is essential for
survival.
• Innovation
• Doing things differently, exploring new territory, and taking
risks
• Managers should encourage employees to be aware of and
act on opportunities for innovation.
7-75
CHANGES IMPACTING THE MANAGER’S JOB
7-76
REWARDS AND CHALLENGES OF BEING A MANAGER
7-77
7-78

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Basic Concepts

Manager, Managing, Workplace, Organization, Management Functions,

Prof Antre Ganesh 7-1

The Role of Management

Dr.R. Krishna - Management Principles 7-4

Dr.R. Krishna - Management Principles 7-5

• By Koontz and Weihrich:

Peter F. Drucker-Father of Modern Management

Planning Organizing Staffing Directing Controlling

• Planning involves selecting missions and

Coordinate Develop program

Develop preventive Establish schedules

Staffing is defined as filling and keeping

• Controlling is the measurement and correction of

• Planning and Controlling are closely related. 7-18

Henry Mintzberg…Managerial Roles

THE MANAGERIAL WORK ACTIVITY APPROACH

• The whole management process is actually an

•A. QUANTITATIVE APPROACH

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

• Develop a science for each element of an individual’s work, which

Copyright © 2004 Prentice

Copyright © 2004 Prentice

• Division of work • Centralization

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

Copyright © 2004 Prentice

 Competency – a combination of knowledge,

 Managerial Competencies – sets of knowledge,

 You need to use your strengths to do your best

 Competency – a combination of knowledge,

 Managerial Competencies – sets of knowledge,

 Planning and Administration Competency

 Strategic Action Competency

 Creating a supportive team environment gets

 Managing team dynamics involves settling

 Understanding the overall mission and values of

 Understanding how departments or divisions of

 Taking key strategic actions to position the firm

“Sony must sell off businesses that don’t fit

Howard Stringer, CEO, Sony

 Cultural knowledge and understanding of the

 Cultural openness and sensitivity to how others

 Respectful of social etiquette variations

 Accepting of language differences

 Developing yourself and taking responsibility

 Integrity and ethical conduct

 Personal drive and resilience

 Balancing work and life issues

 Self-awareness and personal development

“My strengths and weaknesses haven’t

Anne Mulcahy, CEO, Xerox

Copyright © 2004 Prentice

Copyright © 2004 Prentice