Principles of Management and

Organizational Behaviour
MBAHM101
MODULE I
Management Definition:

 Management can be defined as a process of getting the work or the task done that is
required for achieving the goals of an organisation in an efficient and effective manner.

 Process implies the functions of the management. That is, planning, organising, staffing,
directing and controlling.

 Thus, management can be defined as the process of planning, organising, staffing,

directing and controlling such that the goals of the organisation are achieved successfully
with minimum cost and resources.
Management Definition:

 According to Harold Koontz “ Management is the art of getting things done through and
with formally organized groups “.

 According to Peter F. Drucker. “ A Multipurpose organ that manages a business and

manages managers and manages workers and works “.

 According to Lawrence Appley “ Management is the development of people and not the
direction of things “.
Management Definition:

 Management refers to the process of coordinating and overseeing the activities of

individuals and resources within an organization to achieve specific goals and objectives
effectively and efficiently.

 It involves planning, organizing, leading, and controlling various elements to ensure the
smooth operation of the organization.

 Here are some examples of management in different contexts:

Examples of management in different contexts

 Business Management: In a business setting, managers are responsible for ensuring the
company's success.

 They plan the company's strategic direction, organize resources, lead employees, and
control operations to achieve profitability and growth.

 For example, a marketing manager may plan and execute a marketing campaign to
promote a new product, allocate the marketing budget efficiently, lead a team of
marketing executives, and measure the campaign's success through various performance
metrics.
 Examples of management in different contexts

 Project Management: Project managers are responsible for planning, executing, and closing
projects to achieve specific objectives.

 They define project scope, set timelines, allocate resources, and manage risks.

 For instance, a construction project manager may oversee the building of a new office
building.

 They will plan the construction stages, allocate labor and materials, coordinate with
contractors, and ensure the project stays on schedule and within budget.
 Examples of management in different contexts

 Educational Management: School administrators and educational managers

ensure the effective operation of educational institutions.

 They set academic goals, manage budgets, hire and train staff, and oversee
student development.

 For example, a school principal may plan curriculum changes, organize

teacher training workshops, lead faculty meetings, and ensure a safe and
conducive learning environment for students.
 Importance of Management

 Management is overall the most important factor because

no business runs on itself, even with no momentum.
Importance of Management :
 Every business needs repeated stimulus which can only
be provided by management. Thus, management is a
dynamic, life-giving element
Importance of Management

 Determination of objectives: Objectives are determined by management

 Achievement of objectives: Management is an important force for the accomplishment of the

objectives. Managers direct and coordinate the activities of the individuals in the use of resources
for the achievement of pre-determined goals.

 The brain of an enterprise: Management is the brain of any enterprise. All the policy decisions
are taken by it. Management predicts what is going to happen in the future based on current
environmental situations.

 Economic development: Efficient management is equally important at the national level.

According to Peter Drucker, “Management is the crucial factor in the economic and social
 Some coordination mechanisms used in the organization

 1- Mutual Adjustment is a coordination System used in small companies and it is a process of grapevine
communication. It is useful when nobody knows forward time of what to do and what they are doing.

 2- Direct Supervision coordination refers to when one person takes responsibility for issuing instruction and
observing actions of the work done by the other people in the organization and it is used in large-scale
organizations.

 3- Standardization coordination mechanism includes work processes, work outputs, and worker skills. Work
processes mean work programmed is specified, work outputs are standardized when results of work are
specified and worker skills and knowledge are specified.
Coordination mechanism
 Fitting Coordinating Mechanisms to Tasks

 Simple tasks are easily coordinated by mutual adjustment.

 As organizational work becomes more complicated, direct supervision tends
to be added and takes over as the primary means of coordination.
 When things get even more complicated, standardization of work processes
(or, to a lesser extent, of outputs, or of skills) takes over as primary, but in
combination with the other two.
 Then when things become really complicated, mutual adjustment tends to
become primary again, but in combination with the others.
Fitting Coordinating Mechanisms to Tasks
Management Thought - Transition
Functions of Management

 The functions of management are the essential activities that

managers perform to achieve organizational goals and ensure
the smooth operation of an organization.

 These functions were initially identified by Henri Fayol, a

prominent management theorist, and they continue to serve as
a fundamental framework for managerial activities.
 Functions of Management

The five primary functions of management are:

Planning:

 This function involves setting organizational goals, defining strategies to

achieve those objectives, and developing detailed action plans.
 Planning provides a roadmap for the organization's future, enabling
managers to anticipate potential challenges and make informed decisions.
 It involves analyzing the current situation, setting specific and measurable
goals, and allocating resources effectively to accomplish the desired outcomes.
Organizing:

 Organizing entails structuring the organization's resources, including human resources,

financial capital, and materials, to achieve the defined objectives.

 Managers must establish a formal structure with clear lines of authority and responsibility,
creating departments and teams to handle specific tasks.

 Efficient organizing ensures that the right people are assigned to the right roles and that
tasks are coordinated to maximize productivity.
Staffing:

 The function of staffing is a critical aspect of management that involves acquiring, developing, and
retaining a competent and motivated workforce to accomplish the organization's goals.

 Staffing encompasses various activities related to managing human resources within an

organization.

 The primary function of staffing are: manpower planning, recruitment and selection, training and
development, performance management, employee relationship, retention and succession planning,
compliance and legal responsibilities.
Leading:

 Leadership is about guiding and motivating employees to work towards the organization's
goals.
 Managers must inspire their teams, provide direction, and create a positive work
environment that fosters collaboration and employee development.
 Effective leadership involves effective communication, coaching, mentoring, and resolving
conflicts.
 The goal is to create a motivated and engaged workforce that performs at its best.
Controlling:

 The controlling function involves monitoring progress, measuring performance, and

comparing actual results against the established objectives.

 By identifying deviations and variances, managers can take corrective actions to keep
the organization on track.

 Controlling ensures that plans are executed as intended and helps prevent potential
issues from escalating.

 Regular feedback and evaluation are essential in the controlling process.

Managerial skills
Conceptual Skill

 Conceptual skills refer to the ability to visualize the entire picture of an organization’s
environment i.e. internal and external.

 It is the ability to analyze and diagnose complex situations or problems.

 This skill especially needs at the top level of management because this skill helps the top-
level managers to be properly identified, analyzed, diagnose, anticipated, and managed the
situation which is helpful to make plans, policies, and strategies.
Human Skill

 Human skills involve the ability to understand, lead, communicate, coordinate, and control
the behavior of other individuals and groups.

 As we know all the levels of human resources help to bring an organization into action.

 So, the manager needs knowledge and skills in the field such as communication, motivation,
conflict management, etc.

 Therefore, every level of management requires the same level of human skills.
Technical Skills

 Technical skills refer to the ability and knowledge in using the equipment,
techniques, and procedures involved in specific tasks.

 The first-line supervisors need technical skills the most because they have to
see that goods and services are produced and delivered.
Role of Manager
Interpersonal Role

 Managers perform an interpersonal role in order to coordinate and interact with organizational
members. through this role, the manager provides direction and instruction to the employees. And
also build relationships inside and outside of the organization.

1. Figurehead role
 A manager should perform a figurehead role.
 Figurehead’s role means participating in ceremonies such as greeting and receiving visitors,
chairing board meetings, and symbolically representing the organization.
2. Leader role
 The leader role refers to directing, coordinating, motivating, staffing, and controlling the subordinates.
 In other words, managers are responsible to bring human resources into action.

3. Liaison role
 The liaison role refers that maintaining good relationships outside the organization.
 It helps to build a good image in the market which also contributes to increasing the market share.
 Managers have also to build a good relationship with other organizations, groups, suppliers, etc.
 Informational Role

 Managers have to develop a network of contact and the relation both within and outside the organization for
the collection, procession, and dissemination of information.

 The informational role is sub-classified into three types;

1. Monitor role

 These roles state that the manager should monitor all the activities of the organization and collect
information about the work performed.
2. Disseminator role

 These roles state that the manager should collect the information from the employee and also from outsiders and
transmits it to the members of the organization.

 They should provide the information to the subordinates also and keep them informed of what is going on in the
organization and precautions to be taken.

3. Spokesperson role

 The spokesperson’s role says that the manager should transmit the information about the organization`s plan, policies,
action, and result to the outsider and serves as an expert on the organization`s industry.
 Decisional Role

 Decision-making is a vital function of every manager.

 These roles represent the manager’s power or authority to take decisions.

 Managers have to take the right decision at the right time for the smooth performance of the organization.

The decisional role is sub-classified into four types;

1. Entrepreneurship

 This role is concerned with planning and initiating change within the organization. The manager initiates changes,
2. Disturbance handler role

 This role is concerned with maintaining a good working

environment for the smooth performance of an organization
and also deals with threats to the organization.

 The manager takes corrective action during disputes among

subordinates or environmental crises.
3. Resources allocator role:

 This role is concerned with dealing with the managerial function of allocating resources (money,
people, time, equipment, etc.) to different units and also to different levels of subordinates.

4. Negotiator Role:

 This role involves representing as well as protecting the organization`s interest in dealing with
insiders and outsiders to add value to work.
Management as SCIENCE:

 Science: Management is considered a science because it involves systematic study, analysis, and application
of principles, theories, and empirical evidence to understand and improve managerial practices.

 Scientific management approaches use data-driven techniques to optimize processes, enhance efficiency,
and predict outcomes.

 Research in management disciplines, such as organizational behavior, operations management, and strategic
management, contributes to the body of knowledge that informs managerial decision-making.

 By using scientific methods, management aims to identify patterns, causality, and best practices, making it a
scientific discipline.
 Management as an ART:

 Art: Management is often regarded as an art because it requires creativity, intuition, and judgment to handle the
unique challenges and complexities of different situations.
 Just like artists, managers need to use their skills and experience to adapt to ever-changing circumstances and
find innovative solutions to problems.
 Effective management often involves balancing multiple variables and making decisions that are not solely based
on data or scientific evidence but also on the manager's insights and instincts.
 Managers' ability to inspire, motivate, and lead teams also reflects the artistic aspect of management.
Management as a PROFESSION

 Profession: Management is considered a profession due to its specialized knowledge, ethical responsibilities,
and the application of expertise to achieve specific goals.

 Professional managers are expected to possess formal education, training, and experience in various
management disciplines.

 They adhere to ethical codes of conduct and are accountable for the outcomes of their decisions and actions.

 Professional associations and certifications, such as the Project Management Institute (PMI) or the
Chartered Institute of Management Accountants (CIMA), provide recognition and further enhance the
professional status of managers.
Universality of Management

 The ideas, principles, concepts, and practices of management are applicable across different organizations,
industries, and geographical locations.

Several factors contribute to the universality of management:

1. Basic Functions: The core functions of management - planning, organizing, leading, and controlling - are
essential elements of managing any organization, whether it is a small startup, a large multinational
corporation, a non-profit organization, or a government agency.

 These functions provide a common framework for managers to achieve objectives and ensure the
organization's success.
 Universality of Management:

2. Hierarchy and Authority:

Most organizations have a hierarchical structure with various levels of management and clearly defined lines of
authority.

While the specifics of the organizational structure may vary, the concept of hierarchical (graded) authority and
accountability is a universal aspect of management.
Universality of Management:

3. Decision-Making Process:

 Managers in all organizations are required to make decisions to address challenges,

allocate resources, and set priorities.

 The decision-making process involves gathering information, analyzing options, and

choosing the best course of action, which is a universal aspect of management.
Universality of Management:

4. Change Management:

 Adapting to change is a constant aspect of organizational life. Managers need to navigate

change effectively, whether it is related to market shifts, technological advancements, or
internal restructuring.

 Change management principles are universally relevant to all organizations facing

dynamic environments.
Universality of Management:

5. Ethical Considerations:

 Ethical decision-making is an essential aspect of management in any organization.

 Managers must consider the ethical implications of their actions and ensure that business
practices align with ethical standards and societal expectations.
Universality of Management:

6. Goal-Oriented Approach:

 All organizations have specific goals and objectives they aim to achieve.

 Effective management involves aligning the efforts of individuals and teams towards
achieving these objectives.