Welcome

Unit –I
. Introduction to management concepts and managerial

skills
 1.1.1 Definitions of management
Management is the art of getting things done through and with people
in formally organized groups.
• Management is a process of planning, leading, organizing, and
controlling the human resources, financial, physical, and information
resources of an organization to reach its goals efficiently and
effectively.
• Henri Fayol (1841-1925)-He is regarded as the ‘Father of Modern
Management Theory’, for he was the first to suggest the functions of
management
1.1.2 Role of management
 1.1.3 Importance of management
Management is the total of all the activities that ensure the smooth and
efficient running of a business or non-profit organization.
• Management is important because of the following reasons:
• 1. Encourages initiative
2. Encourages innovation
3. Facilitate Growth & Expansion
4 .Improve Life of worker
5. Improve corporate image
6. Motivates Employee
7. Optimum use of Resources
8. Reduce Absenteeism & Labour Turnover
9. Encourage Team Work
10. Establishes Equilibrium
11. Essential for prosperity of society
 1.2.1 Management characteristics
Management aims at reaping rich results in economic terms.
Management also implies skill & experience in getting things
done through people.
Management is process.
Management is universal activity.
Management is science as well as art.
Management is profession.
• Management is an effort to achieve predetermined
objectives
Management is group activity.
Management is system of authority.
Management involves decision making
Management indicates Group leadership.
• Management need not to be owners.
 1.2.2 Principles of Management
• 14 principles of Management serve as a guideline for decision making
and management actions.
 1.2.3 levels of management and their
functions
There are three Different Levels of Management
Administrative or Top Level of Management.
• Executive or Middle Level of Management.
• Supervisory or Lower Level of Management.
 1.2.3 Management, Administration and
Organization
 1.2.4 Relation between management &
administration
• The Figure below clearly shows the degree of administration & management
performed by the different levels of management.
Practically, there is no difference between management &
administration. Every manager is concerned with both –
administrative management function and operative
management function as shown in the figure.
• However, the managers who are higher up in the hierarchy
denote more time on administrative function & the lower
level denote more time on directing and controlling worker’s
performance i.e. Management.
 1.3 Functions of management
• The most widely accepted are functions of management is
• Planning
• Organizing
• Staffing
• Directing
• Controlling.
Planning
It is the basic function of management. Planning is deciding in
advance – what to do, when to do & how to do.
It bridges the gap from where we are & where we want to be”
Planning is a systematic thinking about ways & means for
accomplishment of pre- determined goals
• Planning is necessary to ensure proper utilization of human
& non-human resources.
• Organizing
• It is the process of bringing together physical, financial and
human resources and developing productive relationship
amongst them for achievement of organizational goals.
• According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. Raw
material, tools, capital and personnel’s”
Organizing as a process involves:
•Identification of activities.
•Classification of grouping of activities.
•Assignment of duties.
•Delegation of authority and creation of responsibility.
•Coordinating authority and responsibility relationships
Staffing :-
It is the function of manning the organization structure and keeping it
manned.
Staffing has assumed greater importance in the recent years due to
advancement of technology, increase in size of business, complexity of
human behavior etc.
• The main purpose o staffing is to put right man on right job.
• Staffing involves:-
• •Recruitment, Selection & Placement.
• •Training & Development.
• •Remuneration.
• •Performance Appraisal.
•Promotions & Transfer.
• Directing:-
• Direction function of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals.
• Direction has following elements:-
• Supervision- implies overseeing the work of subordinates by their
superiors. It is the act of watching & directing work & workers.
• Motivation- means inspiring, encouraging the sub-ordinates. Positive,
negative, monetary, non-monetary incentives may be used for this
purpose
Leadership- may be defined as a process by which manager
guides and influences the work of subordinates in desired
direction.
• Communications- is the process of passing information,
experience, opinion etc from one person to another. It is a
bridge of understanding.
Controlling
Controlling is the process of checking weather or not proper progress is being
made towards the objective and goals and acting if necessary, to correct any
deviation
• The purpose of controlling is to ensure that everything occurs in conformities
with the standards
• Controlling has following steps:-
• Establishment of standard performance.
• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out
deviation if any.
• Corrective action.
1.4 Types of planning and steps in planning
 Steps in planning
• Planning is the fundamental process in management which moves
gradually and a step-by-step.
 1.5 Organizational Structure
Every organization has its own typical management structure that defines and
governs the relationships between the various employees, the tasks that they perform,
and the roles, responsibilities and authority provided to carry out different tasks.
Organizational structure defines the manner in which the roles, power, authority, and
responsibilities are assigned and governed, and depicts how information flows
between the different levels of hierarchy in an organization.
• Managements need to seriously consider how they wish to structure the
organization. Some of the critical factors that need to be considered are
• The size of the organization
• Nature of the business
• The objectives and the business strategy to achieve them
 Functional Organization Structure
Functional Organization Structure
The functional structure is the most common model found in most
organizations.
• Organizations with such a structure are divided into smaller groups
based on specialized functional areas, such as operations, finance,
marketing, Human Resources, IT, etc.
Steps in Organising Process or
Organisation as a Process
Step1:- Fixing the objectives.
Step 2:- Identifying activities (work) required for achieving the objectives.
Step 3:- Grouping the similar (related) activities.
• Step 4:-Defining responsibilities of each employee.
• Step 5 :-Delegating authority to employees.
• Step 6:- Defining authority relationship between superiors and
subordinates.
• Step 7:-Providing employees all requirements for achieving the objectives.
• Step 8:- Coordinating efforts of all for achieving the objectives
 1.6 Functional areas of Management
There are four main functional areas of management namely finance,
production, marketing and HR management.
• 1)Finance and Accounting-take care of all finance requirement of
organization. The several sub function are:
• Management Accounting
• Financial Accounting
• Investment Management
• Taxation
2)Production- production manager responsible for all production
related activities of organization.
Purchasing
Material Management
• R &D
 1.7 Managerial skills.
• Three types of skills that are essential for a successful management
process:
1. Technical Skills:-
Technical skills involve skills that give the managers the ability and
the knowledge to use a variety of techniques to achieve their
objectives.
• These skills not only involve operating machines and software,
production tools, and pieces of equipment but also the skills
needed to boost sales, design different types of products and
services, and market the services and the products.
2. Conceptual Skills:-
These involve the skills managers present in terms of the
knowledge and ability for abstract thinking and formulating
ideas.
The manager is able to see an entire concept, analyze and
diagnose a problem, and find creative solutions.
• This helps the manager to effectively predict hurdles their
department or the business as a whole may face.
3. Human or Interpersonal Skill:-
The human or the interpersonal skills are the skills that
present the managers’ ability to interact, work or relate
effectively with people.
• These skills enable the managers to make use of human
potential in the company and motivate the employees for
better results
Thank you