Batch: BBA LLB -1st year/1st sem

Faculty: Dr. Shweta Vats

Fundamentals of Management
Module 1 – Part 1
 Module 1 - Nature of
Management
Part 1

• Management: Concept, Significance, Role & Skills, Levels of

Management, Concepts of POSDCORB, Managerial Grid.
 MANAGEMENT

• Getting the task done through others.

• Using available resources effectively to accomplish certain

goals/Objectives.

• The person responsible for doing this is called a “Manager”

 Management Concept

• Management is a process of planning, decision making, organizing,

directing, leading, motivating and controlling the resources (human
resources, financial, physical, & information resources) of an organization
to reach its goals efficiently and effectively.
 OBJECTIVES?

• Goals defined by an organization

 Objective
• Kan Khajura Tesan by #HUL
• https://www.youtube.com/watch?v=qHTY7C-YyM0

• FEVICOL KUMBH MELA AD - HOW FEVICOL HELP DEVOTEES

• https://www.youtube.com/watch?v=wAr9CMUsCPM

• Lifebuoy Help A Child Reach 5 - Chamki

• https://www.youtube.com/watch?v=VsnP_6kdtDY
 Objective?
• Sanifresh - 700 se 7 kadam
• https://www.youtube.com/watch?v=I2GtWjbF0aY

• Tata Tea Jaago Re 45 sec

• https://www.youtube.com/watch?v=M5ECJrnqPcI
 Functions of Management

1. Planning –

• Determining course of action for accomplishing objectives

• Requires managers to be good decision makers
• Involves Human resource management
• Allocating resources to employees
• Delegating responsibilities
• Setting realistic timelines & standards for task completion
• Regular checks on team progress & make amendments where required
 1. Planning

Action
Plan

to achieve
 Planning
Ansoff Matrix
EXAMPLE

A business is Planning
for future growth

How?
What course of action
should be chosen
 Planning
Market Penetration
This focuses on increasing sales of existing products to an existing market

Can be done in the following ways:

1. Decreasing prices to attract new customers (Jio for datapack, Availability of low
cost Ac to penetrate different segments, ecommerce, Netflix )
2. Increasing promotion and distribution efforts (stock clearing sale, end of year
sale, diwali sales, great Indian festival of Amazon & big billion day sales of
Flipkart, availability of simcards in grocery stores, availability of chocolates with
paan vendors)
3. Merger & Acquisition of competitors in the same marketplace – Idea & Vodafone
merger, Facebook & whatsapp)
 Planning
Product Development
• firm develops a new product to cater to the existing market

Can be done in the following ways:

1. Investing in R&D to develop new products to cater to the existing market (Alto,
Swift, Baleno, DTH to OTT, from basic feature phone to smart phone, hybrid &
electric cars)
2. Forming partnerships with other firms to gain access to their distribution
channel or brand(Acquisition of Indulekha by HUL, acquisition of savlon by ITC, )
 Planning
Market Development
• firm enters a new market with its existing product(s)

Can be done in the following ways:

1. Catering to a different customer segment (Baby dove)

2. Entering into a new domestic market (expanding regionally) – Asian
paints utsav, sachets of shampoo & conditioner
3. Entering into a foreign market (expanding internationally) – Nike,
Addidas, HUL
 Planning
Diversification
• firm enters a new market with a new product

Can be done in the following ways:

1. Related diversification: There are potential synergies to be realized

between the existing business and the new product/market - leather
shoe maker diversifies into leather purse for ladies, smart phone maker
introduces smart watches, mi, sony
2. Unrelated diversification: There are no potential synergies to be realized
between the existing business and the new product/market – TATA, ITC
 Planning
• Dabur CEO Mohit Malhotra in an exclusive conversation with ET Now | Exclusive
• https://www.youtube.com/watch?v=lxsR6iKvF2k
 Functions of Management

2. Organising –

• Involves “Organisational design” decisions – developing organizational structure/chart &

allocating human resources to ensure the accomplishment of objectives.

• Organisational structure / chart - is a graphic representation of chain of command within an

organization.

• Also involves “job design decisions” design - Decisions about the duties & responsibilities of
individual jobs, as well as the manner in which the duties should be carried out.

•  job design is based on principles of division of labor and specialization, which assumes that the
more narrow the job content, the more proficient the individual performing the job could
become.

• Departmentalization - involves dividing jobs into departments to coordinate effort effectively.

 Function based – HR, Marketing, Finance, Operations, IT, …..
 Product/Service based – IPR, Taxation, RTI, Corporate law, …
 Functions of Management

2. Organising –

MD & Chairman
CEO/EVP

CMO CFO CTO

ORGANISATIONAL Marketing Finance

IT Head
DESIGN/CHART Head Head

SVP SVP SVP

VP VP VP

Senior Senior Senior

Manager Manager Manager

Assistant Assistant Assistant

Manager Manager Manager

Executive Executive Executive

 Functions of Management

2. Organising –
Chairman

MD

Production Marketing
Finance Dept
Dept Dept
ORGANISATIONAL
DESIGN/CHART
GM GM GM

AGM AGM AGM

Senior Senior Senior

Manager Manager Manager

Manager Manager Manager

Accountant Executive Executive

 Functions of Management

2. Organising –

Chairman

MD

ORGANISATIONAL Finance Head

Production Marketing
DESIGN/CHART Head Head

GM GM GM

AGM AGM AGM

Accountant Manager Manager

Executive Executive
 Functions of Management

2. Organising

i. Identifying the tasks that must be performed and grouping them wherever
necessary

ii. Assigning these tasks to the personnel while at the same time defining their
authority & responsibility

iii. Coordinating these activities

 Functions of Management
3. Leading
• Providing direction & guidance

 For daily tasks

 during significant change or challenge.

 When setting goals

 When communicating new processes, products and services, or internal policy.

 Encourage & coordinate individuals & groups so that they work towards organisational
goals.
 communication (both ways), motivation, conflict resolution, supporting, encouraging,
grievance redressal, fighting of the rights of team members
 Functions of Management - Leading
(leadership)
Directing – some authors use directing instead of leading

Directing
• It is the function of the management which involves leading, communicating,
motivating & supervising so that employees perform their work in the most
efficient manner possible.

i. Leadership or leading element – involves issuing of instructions and guiding the

subordinates about procedures & methods
ii. Communication – must be open both ways so that the information can be passed on
to the subordinates and feedback received back from them
iii. Motivation is important- as highly motivated employees perform better
iv. Supervision – Overseeing subordinates gives continuous progress report & assures the
superiors that directions are being properly followed
 Functions of Management
4. Controlling
• Monitoring & evaluating activities

• Evaluate how well the organisation is achieving goals & take action to maintain, improve &
correct performance

• Control is a function of management which helps to check errors in order to take corrective
actions.

• Process of devising ways to ensure that planned performance and result is actually achieved

• This is done to minimize deviation from what is planned and ensure that organizational
objectives are accomplished.

• Managers should consistently monitor employee performance, quality of work, and the
efficiency and reliability of completed projects.
 Functions of Management
4. Controlling

• Controlling involves :

i. Setting up standards for performance

ii. Determining methods for measuring such performance

iii. Measuring the actual performance using these methods

iv. Comparing these measurements with the pre-established standards

v. Taking corrective action, when necessary to correct any deviations between the measured
performance and expected performance
 Other functions of Manager
Resource a. Physical resources - raw material, buildings, vehicles, transportation, storage
Management facility, machines and factory
b. Human resources, or staff
c. Intellectual resource - brand, patents, copyrights, partnerships & customer
databases
Budgeting Defining the budget for various operations/tasks
Problem Solving Manager should solve the problems brought by subordinates.
Motivation The workers have to be motivated to do their work – by cash, kind reward, award,
appreciation, promotion.
Setting Target Target is fixed on the basis of the organisational objectives.
Guiding Subordinates Like a friend
Conflict Resolution Conflict amongst workers
Training & Measuring https://www.youtube.com/watch?v=k_YWFCu06o0
performance against
defined standards
 Module-1
Management Skills
1. Technical Skills

• Skills that help perform a job more efficiently

• E.g. – doctor, engineer, accountant, computer programmer, Advocate etc.

• These skills are acquired through formal education & training (MBBS, Btech,
LLB, LLM) – difference between a doctor & quack; difference between a
lawyer & a person having knowledge of law without formal education.

• It is highly necessary at lower level of management but as one moves to

higher level the importance of technical skill diminishes
E.G – An engineer after Btech prefers to pursue MBA and not go for Mtech because at
higher managerial level the importance of MBA is more than Mtech. As at the
managerial level the manager will not be expected to solve the problem directly
rather s/he can get it done through some technical person
 Module-1
Management Skills
2. Human Skills

• Ability to work with other people in a cooperative manner

• Also called people management skills or interpersonal skills
• Important at all levels of management

E.G
 Team work – Team member, Team leader,
 IT projects requires people to work in dynamic & changing teams
 All the departments require members to collaborate and work in a synergistic
relationship
 Human skills also help improve EQ
 Module-1
Management Skills
3. Conceptual Skills

• The ability to view the organisation as a whole and as a total entity and also
as a system comprised of various parts & subsystem integrated into a single
unit

• Especially crucial for top level excutives to have a control over the
organisation

• They should understand the complexity of the organisation including how

each unit contributes towards the overall success of the organisation

• It deals with the understanding of the various functions of the organisation,

their inter-relationship and the relationship of the organisation with the
outside environment in terms of threat & opportunities
 Module-1
Management Skills
4. Diagnostic Skills

• It refers to the analytical skill of a manager – logical investigation and

analysis of a problem

• The ability to get to the root cause of a problem to find solutions

• This skill overlaps with other skills as a manager needs other skills like
technical, human management, conceptual and communication skill to
diagnose a problem
 Module-1
Management Skills
5. Communication Skills

• Important component of interpersonal skill

• Important at all levels of management
• Proper and timely communication saves many problems
 Management Skills
6. Political Skills

• Getting one’s way out without seeming selfish or self oriented

• Being Diplomatic or manipulative

Kalam plays ghost prank on Pitobash Tripathy

https://www.youtube.com/watch?v=V73DWTjCF54

Kalam makes fun of Pitobash Tripathy with his scary prank 

https://www.youtube.com/watch?v=68_ghZ0a26Q

The Wolf of Wall Street 2013 selling thru phone scene

https://www.youtube.com/watch?v=MJXLV_DMKa0
Management Levels

MD
TOP LEVEL
Chairman
CEO
Board of
Directors
GM
Department Heads
Marketing manager, HR manager MIDDLE LEVEL
Production manager, Purchase
manager, Public relations
manager, Finance manager, IT
manager

Supervisor, Salesman, Clerk, Foreman, junior managers,

LOWER LEVEL
Team leader, executives,
Management Levels
TOP
Set objectives
Policy
formulation
Scan
environment
Long term
planning
Decision making
Oversee the
entire
organization
Protect the
interest of
stakeholders
MIDDLE LEVEL
Responsible for
Allocateentire
resources
organization
Oversee low level managers
Report to top management
Develop & implement activities & programs
LOWER LEVEL
Coordinate work of their employees
Supervise employees
Report to middle managers
Plan day to day operations
Assign jobs to workers
Link between middle level management & workers
Management Levels
 Managerial Roles
• Managerial roles are adopted by managers to accomplish the basic functions of
management—planning, organizing, controlling, and leading and coordinating.

• Dr. Henry Mintzberg a prominent management researcher conducted a research

to find out the duties & responsibilities of a manager

• For this Mintzberg studied the daily activities of five executives by observing
them for one week. They all were from 5 different types of organizations- a
consulting firm, a school, a technology firm, a consumer goods manufacturer
and a hospital. He kept track of all there activities and analyzed them.

• He identified 10 roles played by a manager in an organization and grouped them

into 3 basic categories:
Managerial Roles
 Managerial Roles – Interpersonal Category

• Managers have to interact with following different people from inside and outside the
organisation on a regular basis:-
 Superiors
 Subordinates
 Peers
 Government
 Community
 Media

• These interactions involve the following three interpersonal roles

• Figurehead – Ceremonial head. A manager, has social, ceremonial and legal responsibilities. S/he is
expected to be a source of inspiration. People look up to them as people with authority, and as a
figurehead. Signing imp docs, attending subordinate’s wedding, launching a new product/business unit,
• Leader – Managers provide leadership for their team, their department or perhaps the entire
organization; and it's where they manage the performance and responsibilities of everyone in the group.
• Liaison – Managers must communicate with internal and external contacts. They need to be able to
network effectively on behalf of the organization.
 Managerial Roles – Informational Category

• Monitor – Managers seek out information related to the organization and

industry, looking for relevant changes in the environment. They also
monitor their team, in terms of both their productivity, and their well-
being.

• Disseminator – Managers in this role communicate potentially useful

information to their colleagues and team.

• Spokesperson – Managers represent and speak for their organization. In

this role, they are responsible for transmitting information about the
organization and its goals to the people outside it.
 Managerial Roles – Decisional Category

• Entrepreneur – Managers are constantly involved in improving their units and

are constantly on the lookout for new ideas for product improvement or product
addition or new business area. They initiate feasibility studies, arrange for
capital f or new products and ask for suggestions from the employees for ways
to improve the organization.
• Disturbance/Conflict Handler – Managers solve the conflicts or differences
amongst subordinates or their conflict with the management. Other disputes
may be related to labour disputes, customer complaint, employee grievances,
machine breakdown, shortage of cash
• Resource Allocator – Managers need to determine where organizational
resources are best applied. This involves allocating funds, as well as assigning
staff and other organizational resources.
• Negotiator – Managers need to negotiate with on a regular basis with
employees, customers, vendors, management, own department, other
departments, government employees, partners, Media etc.
 Managerial Roles

• Rajiv Bajaj Good Speech on Manager and

Management
• https://www.youtube.com/watch?v=ekmGSVCJWhI
 Managerial Grid
Also called leadership grid

• Proposed by Robert Blake and Jane Mouton in 1960s

The Blake Mouton Managerial Grid is based on two behavioral dimensions:

1. Concern for People: this is the degree to which a leader considers team members' needs, interests and
areas of personal development when deciding how best to accomplish a task.
2. Concern for Results: this is the degree to which a leader emphasizes concrete objectives, organizational
efficiency and high productivity when deciding how best to accomplish a task.

Robert Blake & Jane Mouton identified five

different leadership styles based on the above
mentioned two dimensions (concern for people &
concern for production)
Managerial Grid
 Managerial Grid
The five different leadership styles

1. Impoverished Management: Low result/low people

• The Impoverished or "indifferent" manager is mostly ineffective.
• They have low regard for creating systems that get the job done, and with little interest in
creating a satisfying or motivating team environment,
• Result - disorganization, dissatisfaction and disharmony.
• They are termed ineffective & their action is merely aimed at preserving job & seniority.

2. Produce or perish management: High result/Low people

• Also called dictatorial or perish style.
• leaders are more concerned about production & have less concern for people.
• The employees’ needs are not taken care of and they are simply a means to an end.
• Emphasis on strict work rules, policies and procedures, punishment is viewed as an
effective way of motivating team members.
• This approach can drive impressive production results at first, but low team morale and
motivation will ultimately affect people's performance, and this type of leader will struggle
to retain high performers.
 Managerial Grid
The five different leadership styles

3. Middle-of-the-Road: medium result/medium people

• This is basically a compromising style - leader tries to maintain a balance between goals of company
and the needs of people.
• The leader does not push the boundaries of achievement resulting in average performance for
organization. Here neither employee nor production needs are fully met.
• Through continual compromise, s/he fails to inspire high performance and also fails to meet people's
needs fully. The result is that the team will likely deliver only mediocre performance.

4. Country Club: high people/low result

• This is characterized by low result and high people orientation where the leader gives thoughtful
attention to the needs of people thus providing them with a friendly and comfortable environment.
• Also called "accommodating" style and the leader assumes that, as long as the team is happy  and
secure, it will work hard.
• What tends to be the result is a work environment that is very relaxed and fun, but where
productivity suffers because there is a lack of direction and control.
 Managerial Grid
The five different leadership styles

5. Team Management: high people/high result 

• According to the Blake Mouton model, Team management is the most effective leadership style.

• It reflects a leader who is passionate about his/her work & does best for the team.

• They commit to their organization's goals and mission, motivate their team/subordinates and work hard
to get people to stretch themselves to deliver great results. At the same time, they look after their team.

• The team feels respected and empowered, and is committed to achieving the goals.

• The leader prioritizes both organization's production needs and people's needs. They do this by making
sure that their team members understand the organization's purpose , and by involving them in
determining production needs.

• This creates an environment based on trust and respect, which leads to high satisfaction, motivation and
excellent results.
 Managerial Grid
• The Blind Side
• https://www.youtube.com/watch?v=pPjYhPGkhGA
• https://www.youtube.com/watch?v=TipOwV7y_q4
• https://www.youtube.com/watch?v=bQzBPo2qRuk
• https://www.youtube.com/watch?v=agidYAqGOl8

• The Devil Wears Prada

• https://www.youtube.com/watch?v=2PjZAeiU7uM
• https://www.youtube.com/watch?v=b2f2Kqt_KcE
• https://www.youtube.com/watch?v=Ja2fgquYTCg

• Munna Bhai MBBS

• https://www.youtube.com/watch?v=qXJnAahozXo
• https://www.youtube.com/watch?v=uIeyowU-kG8
• https://www.youtube.com/watch?v=Mvw1qWddMd0

• The Pursuit Of Happyness: Job interview

• https://www.youtube.com/watch?v=UUDKEbX5OQw

• The Pursuit of Happyness: The Time Machine HD CLIP

• https://www.youtube.com/watch?v=8tNpIKC9WKE
 Exercise 1 – Managerial grid
• Step One: Identify Your leadership Style
 List three recent situations where you were the leader.
 For each situation, place yourself on the grid according to where you believe you
fit (depending on whether you showed more concern for people or result).

• Step Two: Identify Areas Where You Can Improve and Develop Your
Leadership Skills
 Look at your approach. Are you settling for "Middle-of-the-Road" because it's
easier than reaching for more?
 Think about whether your style suits the situation you are in.
 If you feel that you are too task-oriented, then you can try to involve your team
members in creative problem solving , improve how you communicate with them,
or work on your mentoring skills . Or, if you tend to focus too much on people, it
may mean becoming clearer about scheduling  and monitoring project progress ,
or improving your decision making .
 Managerial grid
• Key takeaways

 The Blake Mouton Managerial Grid helps you to think about your leadership style and its
effects on your team's productivity and motivation.

 By plotting "concern for results" against "concern for people," the grid highlights how
placing too much emphasis on one area at the expense of the other leads to poor results.
It also discourages a vague Middle-of-the-Road compromise.

 The model proposes that, when concern for both people and results are high, employee
engagement and productivity will likely be excellent.

 No one leadership style is best for all situations.

 It's unwise to neglect either tasks or people. But, equally, a compromise between the two
approaches will likely result in only average team performance, because you neither meet
people's needs nor inspire excellent performance.
 Depending on what situation demands one should adapt to the different leadership styles.
 Exercise 2- Managerial Grid

• When you recruit a new team member, what's your priority?

 Is it to focus on tasks by explaining the first year's objectives to the new employee?
Or,
 do you spend time understanding the strengths and interests of the employee &
helping the employee acclimatize ?
 POSDCORB - Concept
The concept of PODSCORB was developed by Luther Gulick and Lyndall Urwick 

• Henry fayol the famous management expert defined management as “ To manage is to forecast and to plan,
to organise, to command, to co-ordinate and to control.

• While elaborating Henry Fayol’s definition of management Luther Gullick and Lyndall Urwick coined a
keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for
Co-ordination, R for reporting & B for Budgeting.

• For theoretical purposes, it may be convenient to separate the function of management but practically
these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the
other & each affects the performance of others.

1. Planning,
2. Organizing,
3. Staffing -process of hiring eligible candidates in the organization or company for specific positions. In management, the
meaning of staffing is an operation of recruiting the employees by evaluating their skills, knowledge and then offering
them specific job roles accordingly.
4. Directing,
5. Coordinating,
6. Reporting - Reporting involves regularly updating the superior about the progress or the work related activities. The information dissemination can be through
records or inspection.
7. Budgeting
 PODSCORB
Staffing
• process of hiring eligible candidates in the organization or company for specific
positions. In management, the meaning of staffing is an operation of recruiting the
employees by evaluating their skills, knowledge and then offering them specific job
roles accordingly.

Staffing involves:
1. Manpower Planning (estimating man power in terms of searching, choose the
person and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.
 Management Challenges

1. Internationalization of business

2. Transition from Industrial to knowledge based system

3. Technological changes

4. Diversity in the workforce – more heterogeneous workforce (pressure

to ensure no discrimination)

5. Ethics & Social responsibility – transparency, accountability through

triple bottom line, responsibility for stakeholders, fair practices…