Basics of Management

Foundation Course
EGMF003
LEARNING OBJECTIVES
After completion of this course you should be able to:

•1. Comprehend the role of a manager

•2. Understand the significance of management functions
•3. Draw inferences from the management theories
•4. Apply suitable management theory to effectively
perform managerial role
• Management is generally referred to the group of
people in an organization who direct the use of
resources to achieve the defined mission.

• It is the process of planning, organizing, leading and

controlling the resources to achieve goals of the
organization.
ROLE OF A MANAGER

LO1
Levels of Management and
Managerial Role
Drucker’s Functional Approach
to Managerial Role
• (1) Sets objectives

• (2) Organises

• (3) Motivates and communicates

• (4) Measures

• (5) Develops people

Mintzberg’s Management Roles
Approach
Managerial Efficiency and
Effectiveness
• Efficiency is described as delivering more benefits with
same resources or same benefits with less resources,
wastage and spending.

• Effectiveness refers to achievement of end-result.

• “Efficiency is doing things right” and “effectiveness is

doing the right things.”
MANAGEMENT FUNCTIONS

LO2
Management Functions
What is Planning?
• Planning is the process of:
• deciding the goals and objectives of the organization,
• establishing the strategy to achieve these objectives,
and
• developing actions to be taken to achieve the goals
What is Organising?
• Organising refers to division of work, assigning of
responsibility to people with formal lines of authority
and allocation of resources for smooth operations of
the organisation. To execute the business plan tasks
are:
• defined
• classified
• delegated
Dimensions for designing
organizational structure
• Specialisation of work – Degree to which tasks are divided in separate activity
• Departmentalisation – Refers to grouping of tasks basis functions performed,
product line, process, customer segments and geographic region.
• Standardisation - The degree to which performance of activities is in a routine
manner.
• Hierarchy of authority – Reporting relationships from top to bottom and span
of control
• Centralisation – Whether there is of concentration of decision-making
authority to top management. or decision-making rests with the managers
who are closest to action.
• Formalisation – Extent to which role of an employee is defined by formal
documentation like job description, manual and regulations
What is Leading?
Leading is the process of directing the people to work
towards the goals of the organization. It involves:
•Communication
•Leadership
•Motivation
•Supervision
What is Controlling?
Controlling involves monitoring of the execution of the
business plan to achieve goals and make corrective
action as required.
(a) setting up of standards
(b) measurement of progress of work
(c) comparing the actual performance with the standards
(d) taking corrective actions for deviations, if any.
MANAGEMENT THEORIES

LO3
LO4
Classical Management Period
(1)Scientific Management
Frederick W.Taylor (1911)
Classical Management Period
(1)Scientific Management

Main Features

(i) Scientific Planning

(ii) Standardisation of work
(iii) Differential Piece Rate System
(iv) Functional Foremanship
Classical Management Period
(2) Bureaucratic Management
Max Weber (1920)
Main Features
(i) Hierarchy of management structure
(ii) Division of work
(iii) Qualification based hiring
(iv) Formal rules and procedures
(v) Separation of managers and owners
(vi) Impersonal relationships
Classical Management Period
(3) Administrative Management
Henry Fayol (1916)

Fayol’s 14 Principles of
Management
1. Division of Work 8. Centralisation
2. Authority and Responsibility 9. Scalar Chain
3. Discipline 10. Order
4. Unity of Command 11. Equity
5. Unity of Direction 12. Stability of Tenure
6. Subordination of Individual 13. Initiative
Interest
14. Espirit de Corps
7. Remuneration
Neo-classical Management Period
Modern Management Period
(1) Quantitative Management

• Operations Management

• Information Management
Modern Management Period
(2) Systems Management
Modern Management Period
(3) Contingency Management
• The best theory depends on the existing situation and
differs with different situations.

• Single theory may not be applicable in all situations.

• Selection of an appropriate theory should be basis the

type of work performed in an organisation, size of
organization, technology employed, capabilities of
employees and the prevailing external environment.
Modern Management Period
(4) Theory Z
Main Features:
1)Moderate work specialization
2)Formal authority relationships complemented by
mutual trust
3)Individual performance within a group
4)Long-term employment
5)Collective decision-making
6)Holistic approach.