Organization, Management and

Management Process
 Organization
• Organization is the structural framework of
duties and responsibilities required of
personnel in performing various
functions with a view to achieve business
goals through organization.
 Manager and Management
• A manager is a person who is responsible for a part of a company, i.e., they
‘manage‘ the company. Managers may be in charge of a department and the
people who work in it.

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

motivation and controlling the human resources, financial, physical, and
information resources of an organization to reach its goals efficiently and
effectively.
 Kinds of Managers by Level and Area
• Levels of Management

• Top managers

• Middle managers

• First-line managers

Areas of Management
 Kinds of Managers by Level
• Top Managers
– The relatively small group of executives who manage
the organization’s overall goals, strategy, and operating
policies.
• Middle Managers
– Largest group of managers in organizations who are
primarily responsible for implementing the policies and
plans of top managers. They supervise and coordinate
the activities of lower-level managers.
• First-Line Managers
– Managers who supervise and coordinate the activities
of operating employees.
 Kinds of Managers by Area
• Marketing Managers
– Work in areas related to getting consumers and
clients to buy the organization’s products or
services.
• Financial Managers
– Deal primarily with an organization’s financial
resources.
• Operations Managers
– Concerned with creating and managing the systems
that create organization’s products and services.
• Human Resource Managers
– Involved in human resource planning, recruiting and
selection, training and development, designing
compensation and benefit systems, formulating
performance appraisal systems.
• Administrative Managers
– Generalists who are familiar with all functional areas
of management and who are not associated with any
particular management specialty.
• Other Kinds of Managers
– Specialized managerial positions directly related to
the needs of the organization.
 Entrepreneur VS Manager
•  

• Entrepreneur
A person who sets up a business or
businesses, taking on financial risks in
the hope of profit.
• Set up their own business
• Role is Owner.
• Take on the financial risks of the business.
• Manager
• A person responsible for controlling or
administering an organization or group
of staff.
• Work in someone else’s business.
• Role is Employees

• Reward is Profit • Does not take on the financial risks of

the business
• Reward is Salary
• Focus on Business startup

• Ongoing operations
 Organization‘s environment
• Organizational environments are composed of
forces or institutions surrounding an organization
that affect performance, operations, and resources.
• Examples include government regulatory agencies,
competitors, customers, suppliers, and pressure
from the public.
Types of Organization Environment

1 . Internal environment:
The internal environment of a business consists of all the factors that are
directly involved with the organization and which have a direct impact on its
business and routine activities.

2. External environment:
External environment refers to all the factors and conditions that are external
to the organization and have an impact on its decisions, objectives and overall
performance. External environment provides input (raw materials, labor,
money, energy) to the organizations, which are then converted into products
or services and returned to the external environment as outputs.
 Changing perspectives on organization
•a. Mechanistic viewpoint on Organization: This perspective states
that organization as a machine. Many classical theories of
organization represent this view. These types of organization ignore
the human aspects and their effectiveness. It does not give priority to
imagination, innovation and creativity.
•
b. Organization as an Open System: Business Organization are
perceive as open adaptive system. Any organism can be considered as
an energy system which has inputs, transformation process and
outputs. E.g. the inputs for a university would be students, teaching
materials, books, money and so on. The transformation process would
consist of lectures, seminars, assignments, research, study, discussion,
counseling etc.
•
c
•
c. Organization as political System:  It states that organizations are not about hierarchies and
structures but also about the internal politics that prevails in them.
•
d. Organization as culture: The organizational cultural perspective states that many
organizational behaviour and decisions are predetermined by the pattern of basic
assumptions (beliefs, rituals, values) held by the members of an organizations.
•
e. Organization as a learning system: From this perspective organization is describe as a
living and thinking open system. Organization continuously learn from their history,
experience and environment and adjust accordingly .Sharing knowledge, experience and
ideas is habit of learning organization.
 Components of management process
• Planning: The planning function of
management involves analyzing the current
situation and anticipating the future.
• Organizing: The organizing function of
management involves assembling and
coordinating the human, financial, physical,
informational, and other resources that the
organization uses to achieve its desired
outcomes.
• Leading: Leading consists of motivating
employees and influencing their behavior to
achieve organizational objectives.
• Controlling: The controlling function of
management involves monitoring employee
progress toward outcome success and making
appropriate changes when necessary.
 Organizational Effectiveness
• Organizational effectiveness is defined as an extent to which an organization
achieves its predetermined objectives with the given amount of resources and
means without placing undue strain on its members.

• Approaches to  Organizational Effectiveness

• 1. Goal Approach:
• In goal approach, effectiveness refers to maximization of profits by providing an
efficient service that leads to high productivity and good employee morale. Several
variables such as quality, productivity, efficiency, profit, turnover, accidents, morale
, motivation and satisfaction, which help in measuring organizational effectiveness.
However, none of the single variable has proved to be entirely satisfactory.
• 2. Functional Approach:
This approach solves the problem of identification of organizational
goals. It has been assumed that an organization is identified in terms
of its goal, focus towards attainment of these goals should also aim at
serving the society.
• 3. System Resource Approach
•
System-resource approach of organizational effectiveness emphasizes
on  inter-dependency  of processes that relate the organization to its
environment. The interdependence takes the form of input-output
transactions and includes scarce and valued resources such as
physical, economic and human for which every organization competes.
 Organization Environment Relationship
• 1. Exchange of Information:
Organizations scan environmental information and use it for planning, decision
making and control.
• Organizations transmit information to several internal and external agencies
like govt., investors, trade unions and professional bodies.
• 2. Exchange of Resources:
• Inputs to a business, like materials, men, money and machines, are drawn from
environment.
• Output in the form of goods and services is supplied to the environment.
• 3. Exchange of Influence and Power:
• (i) Environment transmits opportunities and threats.
• (ii) Government controls the organization through legitimate power;
markets, suppliers, etc., influence the planning and decision making
of the organization.

• (iii) An organization also influences the environment through its

command over internal resources and capacity to provide output.