“Companies fail when they

become complacent and imagine

that they will always be
successful. So we are always
challenging ourselves. Even the
most successful companies must
constantly reinvent themselves.
--Bill Gates
Chairman and Chief Software Architect
Microsoft
 What is Management?
• Auto industry managers
– Assembly line: schedule
work shifts, supervise
assembly of vehicles
– Engineering: develop new
product features, enforce
safety standards
– General: plan for the future
– All organizations need
managers!
• Management can also refer to the person or
people who perform the act(s) of management
• The verb manage comes from the Italian
maneggiare (to handle — especially a horse),
which in turn derives from the Latin manus
(hand). The French word mesnagement (later
ménagement) influenced the development in
meaning of the English word management in the
17th and 18th centuries.[1]
 Management
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
The Importance of Business
Management
1.1
 The Business World Today
• Constant change!
– Technology
– Society
– Environment
– Competition
– Diversity
 What is Management?
• The process of deciding how best to use a
business’s resources to produce good or
provide services
– Employees
– Equipment
– Money
– Materials
 Management
• Management refers to the tasks and activities
involved in directing an organization or one of
its units: planning, organizing, leading, and
controlling.
• The process of reaching organizational goals by
working with and through people and other
organizational resources.
• Definitions of management
• Management as an art of getting things
done
• Mary Parker Follet defined management
as “the art of getting things done through
others.”
• It is a sort of one way traffic
• Their position is like cog in the wheel.
• According to Harold Koontz “ the art of
getting things done through and with
people in formally organized groups. It is
the art of creating an environment in which
people can perform as individuals and yet
cooperate towards attainment of group
goals.”
- People responsible for
directing the efforts aimed
at helping organizations
achieve their goals.
- A person who plans,
organizes, directs and
controls the allocation of
human, material, financial,
and information resources
in pursuit of the
organization’s goals.
Management as a process
According to Henri Fayol, “ To manage is to forecast and plan, to organize, to
command , to coordinate, and to control.”
Management is the process of effective utilization of human and material
resources to achieve enterprises objectives.
• In the words of George R.Terry, “
management is a distinct process
consisting of activities of planning,
organizing, actuating and controlling,
performed to determine and accomplish
sated objectives with the use of human
beings and other resources.”
• Management as a group of managers
• Management as a discipline
• Nature of management or characteristics
• Goal oriented
• Economic resource
• Distinct process
• Integrative process
• Intangible force
• Results through others
• A science and an art
• System of authority
• Multidisciplinary subject
• Universal application
• Management : A science and an art
• Objectives of management
• Efficient use of resources
• Satisfaction of customers
• Adequate return on capital
• Satisfied workforce
• Good working conditions
• Good relations with suppliers
• Contribution to national goals
• George R. Terry , “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.”
 Planning

Controlling organizing

Directing staffing
 Management Functions
Classical Updated
Management Functions Management Functions

Planning
Planning
Making
MakingThings
ThingsHappen
Happen
Organizing
Organizing
Meeting
Meetingthe
theCompetition
Competition
Staffing
Staffing
Organizing
OrganizingPeople,
People,
Leading
Leading Projects,
Projects,and
andProcesses
Processes

Controlling
Controlling
• According to Luther Gulick coined the
word ‘PODSCORB’ .
• Within directing / leading
• Communication
• Leadership
• Motivation
• Supervision
• Levels of management
• The term ‘levels of management refers to
a line of demarcation between various
managerial positions in a organization’.
 Levels of Management
• Senior management
– Establishes the goal/objectives of the
business
– Decides how to use the company’s resources
– Not involved in the day-to-day problems
– Set the direction the company will follow
– Chairperson of the company’s board of
directors, CEO, COO, senior vice presidents
The Management Pyramid

President, CEO, VP •Make long-range plans

•Establish policies
Top •Represent the company
Managers

Middle
Managers

First-line
Managers
 Levels of Management
• Middle management
– Responsible for meeting the goals that senior
management sets
– Sets goals for specific areas of the business
– Decides which employees in each area must
do to meet goals
– Department heads, district sales managers
 The Management Pyramid

Sr PM, PM, Controller, Marketing •Implement goals

Manager, Sales Manager •Make decisions
Top •Direct first-line managers
Managers

Middle
Managers

First-line
Managers
Levels of Management
• Supervisory management
– Make sure the day-to-day
operations of the business
run smoothly
– Responsible for the people
who physically produce the
company's products or
services
– Forepersons, crew leaders,
store managers
 The Management Pyramid

Office Manager, •Implement plans

Supervisor, Foreman, •Oversee workers
Department Head Top •Assist middle managers
Managers

Middle
Managers

First-line
Managers
The Management Pyramid
 The Management Process
• Three ways to examine how management
works:
– Tasks performed
• Planning, organizing, staffing, leading, controlling
– Roles played (set of behaviors associated
with a particular job)
• Interpersonal, information-based, decision-making
– Skills needed
• Conceptual, human relations, technical
 The Management Process
• Planning
– Decides company
goals and the actions
to meet them
– CEO sets a goal of
increasing sales by
10% in the next year
by developing a new
software program
 The Management Process
• Organizing
– Groups related
activities together and
assigns employees to
perform them
– A manager sets up a
team of employees to
restock an aisle in a
supermarket
 The Management Process
• Staffing
– Decides how many and what kind of people a
business needs to meet its goals and then
recruits, selects, and trains the right people
– A restaurant manager interviews and trains
servers
 The Management Process
• Leading
– Provides guidance
employees need to
perform their tasks
– Keeping the lines of
communication open
• Holding regular staff
meetings
 The Management Process
• Controlling
– Measures how the
business performs to
ensure that financial
goals are being met
– Analyzing accounting
records
– Make changes if
financial standards not
being met
Relative Amount of Emphasis
Placed on Each Function of
Management
 Management Roles
• Managers have authority within
organizations
– Managers take on different roles to best use
their authority
• Interpersonal roles
• Information-related roles
• Decision-making roles
 What Skills Do Managers Need? (Katz
1955)

 Interpersonal skills
 Sensitivity
 Persuasiveness
 Empathy
 Technical skills  Conceptual skills
 Specialized knowledge  Logical reasoning
 (Including when and  Judgment
how to use the skills)  Analytical abilities

Adapted from Exhibit 1.5: Managers’ Skills

Conceptual, Human Relations, and
Technical Skills
Conceptual Human Relation
Skills Skills
•Need to work well
•Decision making planning,
together
and organizing
• Understanding how •Resolving conflicts
different business
•Forming
relate
partnerships

Technical Skills
•Abilities used to perform their job
•Training people to use a new system
 Management Skills
• Conceptual skills
– Skills that help managers understand how different
parts of a business relate to one another and to the
business as a whole
– Decision making, planning, and organizing
 Management Skills
• Human relations skills
– Skills managers need to understand and work well
with people
– Interviewing job applicants, forming partnerships with
other businesses, resolving conflicts
 Management Skills
• Technical skills
– The specific abilities that people use to perform their jobs
– Operating a word processing program, designing a
brochure, training people to use a new budgeting system
 Management Skills
• All levels of management require a
combination of conceptual, human
relations, and technical skills
– Conceptual skills most important at senior
management level
– Technical skills most important at lower levels
– Human relations skills important at all levels
Specific skills
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
EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT
MANAGEMENT LEVELS

1-46
 Management Roles

Mintzberg concluded that managers perform 10 different but

highly interrelated roles. These 10 roles can be grouped under
three primary headings:
• Interpersonal relationship
• The transfer of information
• Decision making
 Interpersonal Relationship
This part encompasses three roles:
Role Description Identifiable
Activities
Figurehead Symbolic head; obliged to perform a Greeting visitors;
number of routine duties of a legal or social signing documents
nature
Responsible for the motivation and Performing virtually all
activation of employees; responsible for activities that involve
Leader
staffing, training, and associated duties subordinates
Maintains self-developed network of Acknowledging mail;
outside contacts and informers who provide performing other
Liaison activities that involve
favors and information
outsiders
 Management Roles
• Interpersonal roles
– A manager’s relationships with people
• Providing leadership with the company
• Interacting with others outside the organization
• Senior managers spend much of their time on
interpersonal roles
– Represent the company in its relations with people
outside the company, interacting with those people, and
providing guidance and leadership to the organization
– Determine a company’s culture
» Sears, Roebuck and Co.
The transfer of information

The informational roles also include three roles:

Role Description Identifiable

Activities
Emerges as nerve center of internal Reading periodicals and
Monitor
and external information about reports; maintaining
Information. personal contact.
Disseminator Transmits information received from Holding informational
other employees to members of meeting; making phone
the organization. calls to relay information.
Spokesperson Transmit information to outsiders on Holding board
organization’s plan, policies, meeting; giving
actions, results, etc. information to the media.
 Management Roles
• Information-related roles
– Provide knowledge, news or advice to employees
• Holding meetings
• Finding ways of letting employees know about important
business activities
• Decision-making roles
– Makes changes in policies, resolves conflicts, decides
how to best use resources
• Middle and supervisory managers spend more time resolving
conflicts than senior managers
 Decision Making

The decisional roles include four roles:

Role Description Identifiable
Activities
Searches for development opportunities in the Designing and initiating
Entrepreneur dynamic environment and initiates changes within the
“improvement projects” to bring about organization.
change.
Disturbance Responsible for corrective action when Taking corrective action in
handler organization faces important disturbances. nonroutine situations.
Performing any activity that
Resource Responsible for the allocation of involves budgeting and the
organizational resources of all kinds. programming of
allocator employees’ work.
Responsible for representing the organization Participating in negotiations
with other parties.
 Women and Minorities
in Management
• In the last three decades, an increased number of
women and minorities have joined the workforce
– They’ve attained positions as managers in companies
of all sizes
• Women and minorities now serve as the CEOs of
prestigious businesses
– Avon, eBay, Lucent, Icici,Pepsi,Biocon
 Women and Minorities
in Management
• Workers and managers
must be sensitive to
challenges presented by
a multicultural workplace
– Religious holidays that are
celebrated at different
times throughout the year
by Muslims, Christians,
Jews and other religious
groups
 Women and Minorities
in Management
• Workers and managers
must be sensitive to
challenges presented by
a multicultural workplace
– Religious holidays that are
celebrated at different
times throughout the year
by Muslims, Christians,
Jews and other religious
groups
• Managerial levels and hierarchy
• The management of a large organization may have three levels:
• Senior management (or "top management" or "upper management")
• Middle management
• Low-level management, such as supervisors or team-leaders
• Foreman
• Rank and File
• Top-level management
• Require an extensive knowledge of management roles and skills.
• They have to be very aware of external factors such as markets.
• Their decisions are generally of a long-term nature
• Their decisions are made using analytic, directive, conceptual and/or
behavioral/participative processes
• They are responsible for strategic decisions.
• They have to chalk out the plan and see that plan may be effective in the future.
• They are executive in nature.
• Middle management
• Mid-level managers have a specialized understanding of certain managerial tasks.
• They are responsible for carrying out the decisions made by top-level management.
• Lower management
• This level of management ensures that the decisions and plans taken by the other
two are carried out.
• Lower-level managers' decisions are generally short-term ones
• Foreman / lead hand
• They are people who have direct supervision over the working force in office factory,
sales field or other workgroup or areas of activity.
• Rank and File
• The responsibilities of the persons belonging to this group are even more restricted
and more specific than those of the foreman.
 Principles of Management
• A principle is a basic truth or law
• Managers often use certain rules when
deciding how to run their business
• Most management principles are
developed through observation and
deduction
 Principles of Management
• Deduction is the process of drawing a
general conclusion from specific examples
– Observe that employees in 15 companies
work more efficiently when their supervisors
threat them well
– Deduce/conclude that a pleasant work
environment contributes to productivity
– Conclusion becomes a management principle
 Principles of Management
• Management principles are best viewed as
guides to action rather than rigid laws
• If a principle does not apply to a specific
situation, an experienced manager will not
use it
– Important to recognize when a principle
shouldn’t be followed
– Being able to change and adapt is an
important management skill
Principles of Management
• Do all employees
need to arrive at work
at the same time?
• Do people who work
in offices need to
dress in a certain
way?
• Management as a process
• According to Henri Fayol, “ To manage is
to forecast and plan, to organize, to
command , to coordinate, and to control.”
• Management is the process of effective
utilization of human and material
resources to achieve enterprises
objectives.