MBA 1st Semester ___________ Ch.

INTRODUCTION TO MANAGEMENT

MANAGEMENT

-A set of activities (including planning and decision making, organizing, leading and
controlling) directed at an organization resources (Human, Physical, Financial, and
information) with the aim of achieving organizational goals in an effective and efficient
manner.

-Management is a process of designing and maintaining an environment in which individuals

working together in groups efficiently accomplish selected aims.

-Management is a process of coordinating and integrating work activities so that they are
completed efficiently and effectively with and through other people.

By Effective we mean, making the right decision and successfully implementing them.
By Efficient we mean achievement of objectives with less use of resources.

MANAGERS:
- The person whose primary responsibility is to carry out the management processes.
- An individual in organization who holds a position of authority and makes decisions
about the allocation of resources
- A manager is someone who works with and through other people by coordinating their
work activities in order to accomplish organizational goals.
Management Functions and Process:
Management involves four basic activities, Planning and decision making, Organizing and
Staffing, Leading, Controlling.
 Planning and Decision Making
Planning means setting an organization’s objectives and deciding how best to achieve them.
Decision making is a part of planning process, involves selecting a course of action from the
set of alternatives.
Planning and decision making help maintain managerial effectiveness by serving as guides for
future activities. In other words the organization’s goals and plans clearly help managers know
how to allocate their time and resources. It helps management to clarify, focus, and research
their business's development and prospects. It provides a considered and logical framework
within which a business can develop and pursue business strategies over the next three to five
years. It offers a scale against which actual performance can be measured and reviewed.
Preparing a satisfactory plan of the organization is essential. The planning knows the business
and those they have thought through its development in terms of products, management,
finances, and most importantly, markets and competition. Planning helps in forecasting the
future, makes the future visible to some extent. It bridges between where we are and where we
want to go. Planning is looking ahead.

Planning includes both the broadest view of the organization, e.g., its mission e.g., a tactic for
accomplishing a specific goal.

 Planning is concerned with the future impact of today's decisions

 The organizing, staffing, leading and controlling functions stem from the planning function

 Planning is important at all levels of management.

Types of Planning

Vision:-Nonspecific directional and motivational guidance for the entire organization Top
managers normally provide a vision for the business

Mission: -An organization's reason for being. It is concerned with scope of the business and
what distinguishes this business from similar businesses. In the process, three basic questions
are answered:

1. Where are we now?

2. Where do we want to be?

3. How do we get there?

Objectives: - refine the mission and address key issues within the organization such as market
standing, innovation, productivity, physical and financial resources, profitability, management
and worker performance and efficiency

Goals:- Goals are specific statements of anticipated results that further define the
organization's objectives. They are expected to be SMART: Specific, Measurable, Attainable,
Rewarding, and Timed.

Strategies:-Strategies are major plans that commit large amounts of the organization's
resources to proposed actions, designed to achieve its major objectives and goals
Polices:- General statement that guide or channelize thinking in decision making
Rules: - Rules spell out specific required actions or non actions allowing no discretion
Program: - It is the complex of goals, policies, procedures, rules, task assignments, steps
taken, resources to used, elements needs to carry out actions

Budgets: - It is the statement of expected results expressed in numerical terms

 Organizing and Staffing:
Organizing is the part of management Function that involves in establishing an intentional
structure of roles for the people. Staffing involves filling and keeping filled the positions in the
organization structure.
Organizing involves determining how activities and resources are to be grouped.

It is establishing the internal organizational structure of the organization. The focus is on

division, coordination, and control of tasks and the flow of information within the organization.
It is in this function that managers distribute authority to job holders.

Organizing is establishing the internal organizational structure of the business. The focus is on
division, coordination, and control of tasks and the flow of information within the organization.
Managers distribute responsibility and authority to job holders in this function of management.

STAFFING

It is the process of filling and keeping filled with qualified people all positions in the business.
Recruiting, hiring, training, evaluating and compensating are the specific activities included in
the function. In the family business, staffing includes all paid and unpaid positions held by
family members including the owner/operators.

 Management teams in successful ways can utilize effectively human resource management
skills.
 Staffing is among the skills that become more important as business grow

 It success depends heavily on the planning and organizing functions of management. In

planning, both farm goals and employees' goals are considered

 Leading: leading is influencing the people so that they will contribute to the
organization and group goals.
It is the set of processes used to get the members of the organization to work together to further
the interests of the organization. Leadership activities involve motivating people and using the
interpersonal skills in the way to get work from others.

It is the art of influencing people's behavior through motivation, communication, group

dynamics, leadership and discipline. The purpose of leading is to channel the behavior of all
personnel to accomplish the organization's mission and objectives while simultaneously
helping them accomplish their own career objectives.

Ingredients of leadership

Leadership is compound of four major ingredients these are:

  The ability to use power effectively and in a responsible manner
 The ability to understand people motivational factors

 The ability to inspire others

 The ability to develop a conducive environment to raise motivation

Leadership Styles

The autocratic leader

The leader commands and expects compliance, leads by ability and give rewards and
punishment

The democratic (participative) leader

The leader who consult with his/her subordinates and encourage their participation in making a
decision

The Free- rein leader

The leader use power very little, if at all giving subordinates a high degree of independence

 Controlling: it is the final phase of management process. Controlling is measuring

and correcting individual and organization performance to ensure that events conform to plan.
- Controlling is monitoring organizational progress toward goal attainment.
Manager must monitor progress to ensure that it is performing in such away as to arrive at its
“Destination” at appointed time.

It is the process of measurement and corrections of the performance in order to make sure that
organizational objective are according to plans

It is a four-step process

 Establishing performance standards based on the firm's objectives

 Measuring and reporting actual performance

 Comparing the two

 Taking corrective or preventive action as necessary.

Each of these functions involves creative problem solving. Creative problem solving is broader
than problem finding, choice making or decision making. It extends from analysis of the
environment within which the business is functioning to evaluation of the outcomes from the
alternative implemented.
Kinds of Managers/ Level of Management
Normally there are three levels of managers in the organization.
 Top managers:
Managers who determine the form of an organization and define its overall character , Mission,
and Direction. Chairperson, CEO, President, Executive are the title for the top management.
They also officially represent the organization to the external environment by meeting with
government officials, executives of other organization, and so forth.
 Middle Managers:
Middle managers are responsible primarily for implementing the policies and plans developed
by top managers and for supervising and coordinating the activities of lower level managers.
Common middle management titles include plant manager, operations manager, and divisional
heads etc. Plant manager for example handle inventory management, quality control,
equipment failure, and minor union problems. They also coordinate the work of supervisors
within the plant. Middle managers are necessary to bridge the upper and lower levels of the
organization and to implement the strategies developed at the top.
 First Line Manager:
First line managers supervise and coordinate the activities of operating employees. They are
responsible for directly managing operating (Non-managerial) Employees and resources.
Common titles for first line managers are Supervisors, Coordinators, office managers,etc.
Managerial Roles:
Managers fulfill a variety of roles. A Role is an organized set of behaviors that is associated
with a particular office or position.
Dr. Hanry Mintzberg,a prominent researcher, says that what managers do can best be described
by looking at the roles they play at work. The term management roles refers to specific
categories of managerial behavior
There are three types of roles which a manager usually does in any organization.

 INTERPERSONAL ROLES:
Interpersonal Roles are roles that involve people (Subordinates and persons outside the
organization) and other duties that are ceremonial and symbolic in nature. The three
interpersonal roles include being a figurehead, leader, and liaison.
o The Figurehead performs symbolic legal or social duties.
o The leader builds relationships with employees and communicates with, motivates, and
coaches them. As a leader they hire, train and motivate the individuals.
o The liaison maintains a network of contacts outside the work unit to obtain
information. This role often involves serving as a coordinator or link among people, groups, or
organization.
 INFORMATIONAL ROLES:
It involves receiving, collecting and disseminating information. The three informational roles
include as a monitor, disseminator, and spokesperson.
o As monitor they actively seeks information that may be of value. The monitor seeks
internal and external information about issue that can affect the organization.
o As Disseminator they transmit information internally that is obtained from either
internal or external source.
o As spokesperson transmit the information about the organization to outsiders.
 DECISIONAL ROLES:
It involves making significant decision that affects the organization. Decisional roles revolved
around making choices. The four decisional roles include entrepreneur, disturbance handler,
resource allocator and Negotiator.

1) The entrepreneur acts as an initiator, designer, and encourager of change and innovation.
2) The disturbance handler takes corrective action when the organization faces important,
unexpected difficulties.
3) The resource allocator distributes resources of all types, including time, funding,
equipment,
and human resources.
4) The negotiator represents the organization in major negotiations affecting the manager’s
areas
of responsibility
MANEGERIAL SKILLS:

• Technical skills FOCUS IS ON WHAT IS DONE

– Skills necessary to accomplish or understand the specific kind of work being

done in an organization. These includes:
• Specialized knowledge and proficiency
• Analytical ability
• Works with things, tools and techniques

• Interpersonal skills FOCUS IS ON HOW SOMETHING IS DONE

– The ability to communicate with, understand, and motivate both individuals and
groups. This includes:
• Works with and through people
• Effective as a group/team member
• Motivates, communicates, & resolves conflicts

• Conceptual skills FOCUS IS ON WHY SOMETHING IS DONE

– The manager’s ability to think in the abstract and to see the “big picture.” To
perceive how all the parts fit together. This includes:
• Sees the “big picture” (how the parts fit together)
• Understands the corporation as a whole
• Future-oriented…thinks strategically

Diagnostic Skills

– The manager’s ability to visualize the most appropriate response to a situation.

 • Communication skills

– The manager’s abilities both to convey ideas and information effectively to others and
to receive ideas and information effectively from others.

• Decision-Making Skills

– The manager’s ability to recognize and define problems and opportunities correctly and
then to select an appropriate course of action to solve the problems and capitalize on
opportunities.

• Time-Management Skills

– The manager’s ability to prioritize work, to work efficiently, and to delegate

appropriately.

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MANAGEMENT BY O B J E C T I V E S ( MBO)

Is a process through which specific goals are set collaboratively for the
organization as a whole and every unit and individual within it; the goals then are used
as a basic for planning, managing organizational activities, and assessing and
rewarding contributions.

In Management by objectives (MBO)

Specific performance goals are jointly determined by employees and their managers,
progress toward accomplishing these goals is periodically reviewed, and rewards are
allocated on the basis of this progress.

1) MBO was first described by Peter Drucker and consists of four elements:

i. Goal specificity
ii. Participative decision making
iii. Clear time period
iv. Performance feedback
2) MBO makes objectives operational through the process by which they flow
down through the organization.
Although there is considerable variation across organizations, MBO processes
typically include the following steps:
1. Organizational goals are developed based on organizational missions.
2. Specific goals are established for departments, subunits, and individuals.
a. In the top-down process, upper-level managers, conferring with their
immediate managerial subordinates, formulate specific objectives for their
areas of responsibility. These in turn enter into the formulation of objectives
for the next level down, and so forth.
b. In the bottom-up process, operational goals are proposed by lower-level
 managers on the basis of what they think they can achieve. These in turn are
developed into tactical and finally strategic plans

3. Action plans are formulated, describing what is to be done, how, when, where,
and by whom in order to achieve a particular goals.

4. Individuals are given the responsibility of reaching their objectives and that goals
will ultimately be met.

5. Performance is appraised at the end of the goal-setting cycle, typically at one-

year intervals.

Praise, recognition, and rewards should be given for effective performance.

The strengths of MBO are that it:

1. Helps coordination of goals and plans.

2. Helps clarify priorities and expectations.

3. Facilitates vertical and horizontal communications.

4. Promote employee motivation.

The weaknesses of MBO are that it:

1. Tends to falter without strong, continual commitment from top

management.

2. Call for considerable training of managers.

The “spirit” of MBO is tremendous. In practice however, MBO has been

successful only about 20 to 25 percent of the time, primarily because of
lack of support from top management and poor goal-setting and
communication skills