Management

Chapter-01

Introduction to Management

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 Chapter-01
Introduction to Management
Chapter Outline:
1. Introductory remarks on management
2. Meaning of management
3. Characteristics of management
4. How does management is being seen
5. Functional areas of management
6. Basic managerial roles.
7. Various levels and areas of management
8. Basic managerial skill Vis- a Vis various levels
of management
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 Chapter-01 (Contd.)
Introduction to Management
Chapter Outline:

9. Principles of management
10. The process of management
I. Setting up the objectives
II. Functions of management and its nature
III. Working under resource constraints and ensuring its best use
IV. Balancing effectiveness and efficiency
V. Adaptation with various environments which are ever
changing by character
11. Styles of management
12. Scope of management

Source: Management by Griffin and Management by Kreitner

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 Slide-02
Introductory Remarks on Management
1. Management is an old discipline
2. Management is a natural instinct.
3. Management is a wisdom or strong commonsense
(some people have, others do not have).
4. Management need to be learnt very seriously,
though no learning is enough.
a. Management is very wide and complex: It
is a cross-cutting discipline
b. Today’s world is very competitive.
c. Management is no more a job of special
type of people only.
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 Slide-03
Definitions of Management
“Management is what a manager does”
“Management is managing six M’s-men, money, machines,
materials, methods and market”
“Management is an art of getting things done by others”
“Management is the art of getting things done working with and
through others”
“Management is knowing exactly what you want men to do, and
then seeing that they do it in the best and the cheapest way”
F. W. Taylor.
“Management is a distinct social process consisting of planning,
organizing, leading and controlling designed to accomplish the
objectives by the use of people and resources.” George R. Terry
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 Slide-03 (Contd.) I
Definitions of Management
7. “Management is the process of working with and through others, to
effectively achieve organization’s objectives by efficiently using limited
resources in a changing environment ”
Robert Kreitner
8. “Management is the attainment of organizational goals in an effective
and efficient manner through planning, organizing, leading, and
controlling organizational resources.”
Richard. L. Draft
9. Management is a distinct social process consisting of planning,
organizing, directing, motivating, coordinating and controlling applied
to the efforts of employees to utilize efficiently men, money, materials,
machines, methods and market with a view to achieving predetermined
objectives.
Harold Koontz
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 Slide-03 (Contd.) II
Definitions of Management

“Management is a distinct social process consisting of

planning, organising, directing, motivating, co-
ordinating, and controlling applied to the efforts of
employees to utilize efficiently men, money, materials,
machines, methods and market with a view to
achieving predetermined objectives ”
Harold Koontz

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 Slide-04
Characteristics of Management
1. Management is a purposeful activity.
2. Management is a process and not a one
step job.
3. Management is doing things or getting
things done in a desired manner.
4. It relates to decision – making.
5. It is a dynamic concepts that adapts
itself to changing business conditions.

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 Slide-05
How Does Management is Being Seen

1. As noun
2. As verb
3. As a distinct skill – technical, conceptual,
inter-personal and diagnostic.
4. As a social process.
5. As an art
6. As a science

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 Slide-06
Functional Areas of Management

a. Four major areas: Personnel/HRM,

production/procurement, financial
and marketing.
b. Two minor areas: office management
and maintenance management.

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 Slide-07
Basic Managerial Roles
1. Interpersonal role:
a. The figure head role
b. The leader role
c. The liason role
2 Informational role:
a. The monitor role
b. The disseminator role
c. The spokes person.
3. Decisional role:
a. The entrepreneurial role
b. The disturbance handler role
c. The resource allocator role
d. The negotiator role

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 Slide-08
The Various Levels of Management

Levels of management:
Top management, middle management, first-
line management.

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 Slide-09
Basic Management Skill Vis-a-Vis Various
Levels of Management
Basic Management Skills: Technical, conceptual,
interpersonal and diagnostic.
Various Levels of Management: Top, middle and first line
management.
Top Management: Should have more of conceptual and
diagnostic skills and less of technical and interpersonal
skills.
Middle Management: Should have all the four skills equally.
First – Line Management: Should have more of technical
and interpersonal skills and less of conceptual and
diagnostic skill.
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 Slide-09(cont.)

Technical skill:
A skill which deals with conversion process.
Transferring inputs into outputs.
Conceptual skill:
It is the ability to develop ideas and solve
problems constructively.
It is the ability to see things in a big canvass.
It is a holistic approach and not partial.

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 Slide-09(cont.)

Interpersonal skill:
It is the ability to interact effectively with
people and earn their confidence.
Diagnostic skill:
It is the ability to identify the problem.
(Of course in diagnosing, manager may
take/ need the help of technical, conceptual
and interpersonal.)

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 Slide-10
Principles of Management
1. Division of labor.
2. Authority and responsibility.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination of individual interest to general interest.
7. Remuneration of personnel.
8. Centralization.
9. Scalar chain.( unbroken chain of command)
10. Order (sequence).
11. Equity.
12. Stability of tenure.
13. Initiative.
14. Esprit de corps (Team work).
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 Chapter 1
Slide 10 A (Contd) I

 Division of work/Division of labor Work is divided into parts and each part (unit)
is assigned to individual employees on the basis of right man for the right job
principles. Economists call this principle ‘specialization. Division of work promotes
efficiency because it permits an organization member to work in a limited area,
reducing the scope of the job. Division of work permits all types of work to be
performed more effectively with greater knowledge and skill because the tasks are
more familiar. (men are selected on the basis of his/her specialization)
 2. Authority and responsibility. Authority and responsibility go together ie should
be equal. The right and power to give orders is balanced by the responsibility for
performing necessary function.
 3. Discipline. Fayol saw discipline in terms of "obedience, application, energy, and
respect." People in the organization must respect the rules that govern the
organization.
 4. Unity of command. A subordinate should take orders from only one superior.
Here is one of the most popular of Fayol's principles. Fayol claimed that if the unity of
command is violated, “authority is undermined, discipline is in jeopardy, order
disturbed and stability threatened.“
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 Chapter 1
Slide 10 A (Contd) II

 5. Unity of direction. Directions coming from a boss should be harmonious and

not conflicting. The boss should be consistent in giving order. More importantly
direction should not conflict with the broader objectives of the organization.
 6. Subordination of individual interest to general interest. The interests of
the organization ought to come before the interest of the individual
 7. Remuneration of personnel. Personnel should be remunerated for their
jobs and the payment should be fair. Time, job, piece rates, bonuses, profit
sharing, and other methods should be used to arrive at the best scheme of
payment. It needs to be noted that remuneration should be based on knowledge,
skill, experience and expertise.
 8. Centralization. There should be one central point in the organization which
exercises overall directional control of all the parts, In larger organizations some
decentralization is necessary, but the need for a central point cannot be ignored.
 9. Scalar chain. There is an unbroken chain of command from the bottom to the
top. This chain describes the flow of authority. Unbroken chain is sometimes
criticized for being slow. But this may be overcome.

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 Chapter 1
Slide 10 A (Contd) III
 10. Order. Order means sequence, breading this into material and social order, Fayol
follows the simple adage of "A place for everyone and everyone in one's place" An
organization ought to be based on an orderly, rationally thought-out plan
 11. Equity. Kindliness and justice on the part of managers will evoke loyalty and
devotion from employees. Manager should be fair and kind when dealing with
subordinates.
 12. Stability of tenure of personnel; The tenure of personnel should be reasonably
stable. Efficiency will be promoted by a stable work force.
 13. Initiative. Initiative is conceived of as thinking out and execution of a plan ie being
proactive. To ensure success, plans should be well formulated before they are executed.
Subordinates should have the freedom to take initiative. Initiative should not be the
monopoly of top-bosses only. It should be noted that initiative leads to innovation.
 14. Esprit de corps Fayol said that in union there is strength. The organization ought
to function as team, and every team member should work to best accomplish
organizational goals. Fayol emphasized the importance of good communication in
achieving teamwork. It needs to be mentioned that team work, creates synergy effect
which means additional productivity.
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 Slide-11
The process of Management
1. Setting up objectives.
2. Performing the typical functions of
management following the basic
principles of management .
3. Getting the most out of limited
resources.
4. Balancing effectiveness and efficiency.
5. Adopting changing environment.

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 Exhibit-12
Objectives of Management
1. To provide goods and services to the society.
2. To provide jobs to the citizens of the country.
3. To maintain optimum level of effectiveness.
4. To perform all activities in an efficient manner.
5. To ensure fairness and justice to employees.
6. To ensure a surplus/profit for the owners.
7. Finally to increase the value of the common
stock/assets of the organization.

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 Slide-13
Functions of Management

1. Planning and decision making

2. Organizing.
3. Leading.
4. Controlling.

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 Slide-14
Features of Managerial Functions
1. Inherently open ended (endless):
Managerial works are continuous.
2. Universal in nature: Works every
where.
3. Iterative in nature (inclusive): All
functions are contained within each
other.

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 Slide-15
Understanding the Constraints of Resource

Resources available to a manager be it

human, material, or financial is always
limited. Therefore, manager should make
the best use of these limited resources.

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 Slide-16
Meaning of Effectiveness, Efficiency and
Productivity
1. Effectiveness is the achievement of
objective. It is result oriented.
2. Efficiency means doing things with
least amount of resources without
sacrificing quality. It is a cost saving
idea.
3. Productivity is an output – input
ratio.
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 Slide-17
Environments of Management
1. The socio – cultural environments:
Demographic and cultural characteristics of
the society.
2. The political – legal environments:
Government regulations and legal system.
3. The economic environments: Overall health
of the economy.
4. The technological environments: The state
and status of technology available in the
country.
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 Slide-18
Styles of Management
1. Autocratic management.
2. Democratic management.
3. Laissez – faire or free rein.

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 Slide-19
Scope of Management
1. Management in profit-seeking
organizations.
2. Management in not for profit
organizations.

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Thank You.

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