FOM

Introduction
Management is the integrating force in all organized
activity.
Whenever two or more people work together to attain a
common objective , they have to coordinate their
activities.
Definition of Management
 Management is the process of designing and
maintaining an environment in which individuals,
working together in groups, efficiently accomplish
selected aims.
 Management is simply the process of decision
making and control over the action of human beings
for the express purpose of attaining predetermined
goals. (Stanely Vance)
Organization
An organization is a group of people working
together to create a surplus. In business
organizations, this surplus is profit. In non-profit
organizations, such as charitable organizations, it may
be satisfaction of needs. Universities also create a
surplus through generation and dissemination of
knowledge as well as providing service to the
community or society.
Enterprise
The term Enterprise refers to a business,
government agencies, hospital, university, and any
other type of organization since almost everything is
either a business or a non-business organization.
Characteristics of Management
Goal Oriented
Economic Resources
Distinct process
Integrative Force
Intangible Force
Result through others
A Science and an Art
System of authority
Characteristics of management
Multi Disciplinary Subject
Universal Application
LEVELS OF MANAGEMENT
Top management
Develops and reviews long-range plans and strategies.
Evaluates overall performance of various departments
and ensures cooperation.
Involves in selection of key personnel.
Consults subordinate managers on subjects or
problems of general scope.
Middle management
 Makes plans of intermediate- range and prepares long
range plans for review by top management.
 Analyzes managerial performance to determine
capability and readiness for promotion.
 Establishes departmental policies.
 Reviews daily and weekly reports on production or sales.
Counsels subordinate on production on production,
personnel or other problems.
 Selects and recruits personnel.
Supervisory Management
 Makes detailed, short-range operational plans.
 Reviews performance of subordinates.
 Supervises day-to-day operations.
 Makes specific task assignments.
 Maintains close contact with employees involved in
operations.
The Role of management
 In the late 1960s , Henry Mintzberg devised a new
approach – the managerial roles approach.
 He did a careful study of five chief executive at work and
found that they are involved in number of varied ,
unpatterned activities of short duration.
 Using a method called structured observation ,
Mintzberg isolated ten roles which he believed were
common to all managers.
 Mintzberg’s 10 managerial roles
INTERPERSON Figurehead Performs ceremonial and symbolic duties
AL such as greeting visitors , signing legal
documents
Leader Direct and motivate subordinates , training ,
counseling , and communicating with
subordinates.
Liaison Maintain information links both inside and
outside organization ; use mail , phone calls ,
meetings.
INFORMATIO Monitor Seeks and receive information , scan
NAL periodicals and reports , maintain personal
contacts.
Disseminato Forward information to other organization
r members ; send memos and reports , make
phone calls.
Spokesperso Transmit information to outsider through
n speeches , reports , memos
Mintzberg’s 10 managerial roles

DECISIONAL Entrepreneur Initiate improvement projects , identify new

ides , delegate idea responsibility to others.
Disturbance Take corrective action during disputes or
Handler crises ; resolve conflicts among subordinates ;
adapt to environment al crises.
Resource Decide who gets resources , scheduling ,
Allocator budgeting , setting priorities
Negotiator Represents department during negotiation
of union contracts, sales , purchases ,
budgets; represent departmental interests.

Source: Mintzberg’s 10 mangerial roles

Key Aspects of the management
process
Planning
 Planning is the most fundamental and the most
pervasive of all the managerial functions.
 It includes :
(i) determination of long and short – range objectives.
(ii) development of strategies and courses of actions for
the achievement of these objectives
(iii) formulation of policies , procedures, rules, etc , for
the implementation of strategies and plans.
Organizing
It involves:
(i) identification of activities required for the
achievement of objectives and implementation of plans;
(ii) grouping of activities so as to create self-contained
jobs;
(iii) assignment of jobs to employees;
(iv) delegation of authority ; and
(v) establishment of coordinating relationships.
 Staffing
Staffing process comprises:
(i) manpower planning;
(ii) recruitment;
(iii) selection, induction, and orientation;
(iv) transfer, promotion, termination and lay-off;
(v) employee training and development.
Directing
It is the function of leading the employees to perform
efficiently and effectively, and contribute their
optimum to achievement of organizational goals.
It includes the sub-functions of leadership,
motivation and communication.
Coordinating
 Coordinating is the integrating function.
 It is the process of tying together all the parts of
organization so that they all pull in the direction of
organizational objectives.
 It includes the following sub-functions:
(i) keeping authority and responsibility relationships
clearly defined,
(ii) unity of direction,
(iii) unity of command,
(iv) effective communication and effective leadership.
Control
Control is the function of ensuring that actual
performance results conform to predetermined
standards.
It involves:
(i) measurement of performance against
predetermined goals;
(ii) identification of deviation from these goals;
(iii) corrective action to rectify deviations.
Management and Administration
Administration is concerned with the determination
of objectives , laying down plans and policies and
ensuring that achievement are in conformity with the
objectives.
Management is the process of executing the plans
and policies for the achievement of objectives
determined by the administration.
All mangers perform administrative as well as
managerial functions.
Responsibility of a manager
Responsibility towards customer
Responsibility towards shareholders
Responsibility towards employees
Responsibility towards suppliers
Responsibility towards industry and competition
Responsibility towards unions
Responsibility towards Government
Responsibility towards society
Management
Henri Fayol – Father of Modern management.
1) Authority and Responsibility are Related.
- Authority is defined as “the right to give orders and the
power to exact obedience”.
-Authority can be formal and personal. - Formal
authority is derived from one’s official position and
personal authority is derived from factors like
intelligence and experience .
-Authority and responsibility go hand in hand.
Fayol’s principles of Management
2) Unity of command
- One employee should have only one boss and
receive instruction from him only.
3) Unity of Direction
-Activities should be organized in such a way that
they all come under one plan and are supervised by
only one person.
Fayol’s principles of Management
4) Scalar Chain of Command
- Chain of superiors and subordinate running
throughout the organization from top to bottom
linked in a relationship.
- The scalar chain defines the communication path
in an organization.
 Fayol’s principles of Management
5) Division of Work
-Work specialization results in improving efficiency of
operations.
- This concept applies to all kinds of work , managerial
as well as technical.
Fayol’s principles of Management
6) Discipline
- Discipline is vital for running an organization
smoothly.
- It involves obedience to authority , adherence to
rules , respect for superiors and dedication to one’s
job.
Fayol’s principles of Management
7) Subordinate of Individual Interest to General
Interest
- the interest of the organization is above the
interests of the individual and the group.

8) Remuneration
- Employees should be paid fairly and equitably.
Fayol’s principles of Management
9) Centralization
- Depending on the situation , an organization should
adopt a centralized or decentralized approach to make
optimum use of its personnel.
10) Equity
- All employees should be treated fairly. A manager
should treat all employees in the same manner without
prejudice.
Fayol’s principles of Management
11) Order
- This refers to both material and social order in
organizations.
- Material order indicates that everything is kept in
the right place to facilitates the smooth coordination
of work activities.
-Similarly , social order implies that the right person
is placed at the right job.
Fayol’s principles of Management
12) Stability of tenure of personnel
- A high labor turnover should be prevented and
manger should motivate their employees to do a
better job.
13) Initiative
- Employees should be encouraged to give suggestions
and develop new and better work practices.
Fayol’s principles of Management
14) Esprit de corps
- This means ‘ a sense of union.” management must
inculcate a team spirit in its employees.
Management thoughts
Management theory may be classified into six schools
of thought:
1) The classical school
2)The human relation school
3) The decision theory school
4)The management science school
5)The system theory school
6)The contingency theory school
Classical approach
The classical school includes three school of
management thought :
Approach Rationale Focus

Scientific management One of the best way to Job level

do each job

Administrative One best way to put an Organizational level

principles organization together

Bureaucratic Rational and impersonal Organizational level

organization organizational level