Introduction to Management

Click to edit Master subtitle style J Renuka Peters

Faculty Finance IIPS Coimbatore

4/15/12

Definition

Accomplishment of results through the efforts of other people of getting things done through and with the people in formally organized groups is a process of planning, organizing, actuating, and controlling to attain the goal. is a process by which managers create, direct, maintain and operate purposive organization through systematic, coordinated, cooperative human effort.
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Art It It

Process of Management

Planning Organizing Staffing Directing Input Output

Producti vity Goods Services Profit Custome r Satisfact ion

Men Material Machine ry Money

Controlling

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Characteristics of Management
Management Management Management Management Management Management Management Management Management Management

is Intangible is Goal-Oriented is universal is a social process is a group activity is a System of Authority is an activity of dynamic is a science and art
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Who are Effective Managers?

Have Are

vision, think long-term, set direction operations

good communicators and good listeners where to spend time and how to prioritize well

Understand Know Do

not resist change confidently responsibility and admit mistakes

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Delegate Act

Accept Are

motivating, curious, honest, credible and decisive

Importance of Management
1. 2. 3. 4. 5. 6.

Optimum use of resources Effective leadership and motivation Establishes sound industrial relations Achievement of goals Change and growth Improves standard of living

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Management Vs. Administration

Management

is broader than management is part of management and administration are identical

Administration Management

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Distinction between Administration & Management

Administration Management
1. 2. 3. 1. 4. 2. 5. 3. 6. 4.

Doing function Thinking function Implements plans Determines objectives & policies Top Level Middle & Lower Level Conceptual & human skills Technical Owners & human skills Paid in govt., educational, military and social Usedindividuals organization Used in Business organization
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Management as a Science
Systematized Management Management Manager

body of knowledge is a social science is an inexact science

Vs Scientist Management

Scientific

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Management is an Art
Use

of knowledge art practice

Creative

Personalized Constant

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Management as a Profession
Well

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defined body of knowledge education and training body

Formal

Representative Code

of conduct motto

Service

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Functions of Managers
1. 2. 3. 4. 5.

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Planning Organizing Staffing Leading Controlling

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Roles performed by Managers

Interpersonal Informational Decisional

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Interpersonal
Figure Leader Liaison

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head or symbolic head

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Informational
Monitor Disseminator Spokesperson

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Decisional
Entrepreneur Disturbance Resource

15

handler

allocator

Negotiator

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Skills needed by Managers

1. 2. 3.

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Technical Human Conceptual

Leadership influence others Self objectivity ability to evaluate oneself Analytic thinking- ability to interpret and explain Behavioral flexibility adjust personal behavior Oral communication Written communication Personal impact - ability to create good impression Resistance to stress
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History of Management Thoughts

1. 2. 3. 4. 5. 6.

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Classical Schools of Management Behavioral Management Theory Quantitative School of Management Contingency School of Management Quality School of Management Management in the Future

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Classical Schools of Management

Organizations Workers

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were viewed as machines

behave predictably knows what to expect operating outside expectations are

Management Workers

replaced

Industrial

Revolution Period

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Classification of Classical Schools of Management

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1.

Classical Scientific School

Objective: increase productivity and efficiency An attempt to create a mental revolution in the workplace

2. Classical Administrative School

Objective: productivity of Individuals

[Division of work, authority & responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralization, scalar chain, order, equity & Espirit de corps]

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Behavioral Management Theory

Focus:

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Human dimensions of work Productivity is strongly influenced by social factors (informal organization, work group norms & work place)

[personality, attitudes, values, motivation, group behavior, leadership, communication, conflict]

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Abraham Maslows Need Theory

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Quantitative School of Management

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It

is a body of management thought that seeks to combine classical management theories and behavioral science through the use of complex mathematical models of quantitative techniques simulations to enhance decision making

Use

Statistics Computer

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Contingency School of Management

It

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all depends approach. is not a set criteria for management actions is no one best or prescribed way to manage is a flexible approach

There It

There

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Quality School of Management

Organization Quality

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make up

of goods and services improvement working teams openness and trust

Continuous Employees Developing

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Management in the Future

Modern We

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management approach identify the people are complex and variable. are in a global economy meet the customer requirement should not ignore human resources must retain employees

Must

Organization Organization Managers

must outshine in their leadership responsibilities

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Organizational Objectives
These

are the purposes, missions, goals of units established through administrative processes. of Objectives: (SMART)

Characteristics

Specific Measurable Achievable Realistic Time bound

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Important organization goals

1. 2. 3. 4. 5. 6.

Maximize profit Increase market share Corporate growth Survive in dynamic business environment Social objectives (reputation) Maximizing benefits to consumers

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Management By Objectives (MBO)

MBO

is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. of MBO: All managers should participate in the strategic planning Implement a range of performance systems, so that the organization stay on the right track.

Purpose 1.

2.

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Process of MBO
1.

Aligning goals of the organization and subordinate objectives (employees get strong input to achieve their objectives) Determine the time lines for completion Tracking and give them feedback

2. 3.

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Importance of MBO
It It

is a valuable intervention clarifies what is expected of employees role conflict and ambiguity

Reduced It

improves job performance by providing knowledge of results are adequately coached and counseled by the managers is an open communication and discussion between employees and managers
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Employees There

Six Steps of MBO

1. 2.

Formulate organizational goals Set specific objectives for various departments and individuals Formulate action plans Implement and maintain self-control Assess progress periodically Review performance

3. 4. 5. 6.

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Benefits of MBO
Clear

goals planning control appraisal force

Better

Facilitates Objective

Motivational Better Result

morale oriented philosophy

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MBO Limitations
1. 2. 3. 4. 5.

Pressure-oriented Time consuming Increases paperwork Goal setting problems Organizational problems

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Suggestions for improve the Effectiveness of MBO

Organizational Training Adequate Take

commitment

time and resources

care of the necessary mechanics feedback

Timely Very

sensitive to the policies of implementing MBO

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