Principles of Management

Introduction to
Management
and
Organizations
CHAPTER-1
AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

 Define Business and describe the characteristics of

Organization.
 Differentiate between managerial and non-
managerial employees.
 Describe Management.
 Explain the functions, roles, and skills of managers
and how the manager's job is changing.
 Recognize the value of studying Management
SOME IMPORTANT TERMS
TO KNOW
 a. Business
 The term “Business” signifies individual &
group activities directed towards wealth
generation through goods & services
(recognized by the law).

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 b. Organization
A group of people working together in a
structured and coordinated fashion to achieve
a set of goals is called organization.
Structure

Goals B

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 c. Goals
Goals are the end results towards which all the activities
are directed. Different organizations may have different
goals. e.g. Profitability, Growth, Market Penetration,
Productivity, Leadership, Client Satisfaction etc.

d. Objectives
Objectives are sub goals.

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 What is
Management?

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Management...

Coordination and oversight of the work

activities of others so that their activities are
completed efficiently and effectively.

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 Effectiveness VS Efficiency

Doing the right things , or completing activities

so that organization goals are attained, called
Effectiveness.

Doing the things right, or getting the most

output from the least amount of inputs,
called Efficiency.

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Why Efficiency & Effectiveness are
important to Management
 What are the functions
of Management?

OR

What is Management
Process?
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 1-8

Four Functions of Management

Planning
Choose Goals

Controlling Organizing
Monitor & measure Working together

Leading
Coordinate

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 1-Planning

A Management function that Planning Process consists

involves defining goals, of five steps
establishing strategies for ◼ Objective-setting
achieving those goals, and ◼ Forecasting
developing plans to integrate ◼ Strategy formation
and coordinate activities. ◼ Setting specific
standards
◼ Continual review and
revision

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 2-Organizing
Organizing is the establishment of
relationship between:
Function of Organizing
 Activities involves:
 Persons
 Physical factors 1. Division of Labor
or 2. Departmentalization
Structuring working relationships in a
3. Staff positioning
way that allows organizational members 4. Assigning authority or
to achieve organizational goals. Delegation of power
5. Equalizing authority
and responsibility

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3-Leading
Management function that
involves working with and
through people to accomplish
organizational task.
Components involve in
leading function are:
In leading functions
subordinates are guided, 1. Supervision
supervised and motivated by 2. Motivation
managers 3. Communication
4. Bringing about change
5. Managing conflict

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4-Controlling

Management function that

involves monitoring actual
performance ,comparing
Process consist of:
standards, and taking corrective
1. Measuring
actions if necessary.
2. Comparing

3. Correcting

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Controlling Process

SET MEASURE
DETERMINE
PERFORMANCE PERFORMANCE COMPARE
STANDARDS DEVIATION

WITHIN
STANDARDS
LIMITS

TAKE
CORRECTIVE
NO YES
ACTION

CONTINUE
WORK
PROGRESS
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Management Functions
Management as Systematic Approach

Inputs
i. Human Resources
ii. Financial Resources
iii. Physical Resources
Effectively
iv. Information Resources
Goals
+
ORGANIZING
Completion
of Goals

MANAGEMENT
PLANNING
PROCESS Leading

19 CONTROLLING
 Manager

Managers are those people who work with

and through other people for getting activities
completed in order to accomplish
organizational goals.

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Difference between Managers and Operatives

 Operatives are people who work

directly on a job or task & have no
responsibility for overseeing the work
of others.
In contrast
 Managers direct the activities of
other people in the organization.

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What are their Objectives?

To achieve the organizational goal, managers pursue the

following objectives.
◼ Efficient use of resources
◼ Customer satisfaction
◼ Adequate return on capital
◼ Satisfied workforce
◼ Improved work conditions
◼ Building supplier relationship
◼ Contribution to national goal

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 Kinds of Managers
Basically there are three
levels of managers TOP
LEVEL

MIDDLE
i. Top Managers LEVEL

ii. Middle Managers

FIRST-LINE
iii. First-line Managers MANAGER

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 Top Managers
Managers at or near the top of the organization
who are responsible for making organizational-
wide decisions and establishing the goals and
overall strategy are called Top Managers.

Titles found in this group include President, Vice

President, CEO, Chairman of the Board etc.

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 Middle Managers

Middle Level Managers are primarily responsible for

implementing policies and the plans developed by the top
managers and for supervising and coordinating the
activities of lower level mangers.
Titles found in this group are Plant Manager, Operational
manager, Branch Manager or Departmental Head etc.

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 First-line Manager

First-line Managers supervise and coordinate the

activities of operating employees.

Titles found in this group are supervisors,

Coordinator, Shift and Office Managers.

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 Basic
Managerial
Roles & Skills
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 Managerial Role.
The managerial roles are divided into three
basic categories identified by Henry
Mintzberg.

1. Interpersonal Role
2. Informational Role
3. Decisional Role

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Managerial Skills

There are number of skills that a Manager

needs but three of them are pre-requisite
to their success

◼ Technical Skills
◼ Interpersonal Skills
◼ Conceptual Skills

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 Technical Skills
Job specific Knowledge and techniques in a
specialized field is termed as Technical
Skills.
Technical skills are specially input for first line
managers. These manager spend much of their
time in training subordinates and answering
questions about work related problems. They
must know how to perform the task assigned to
those they supervise if they are to be effective
managers.

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 Interpersonal Skills
The ability to communicate, with understand and motivate

both individual and groups is called Interpersonal

Skills or human skills.
Manager spend considerable time in interacting with people
both inside and outside the organization. e.g. Workers,
customers, suppliers, investor. Manager with good
communication skills are able to get the best out of their
people. They know how to communicate, motivate, lead and
inspire. These skills are equally important at level of
managers.
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Conceptual Skills
The manager’s ability to think and to conceptualize
about abstract and complex situations are called
Conceptual Skills.
Using these skills manager must be able to see the
organization as a whole, understand the relationship
among various subunits, and visualize how the
organization fits into its broader environment, these
skills are most important at top level management.

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Skills Needed at Different
Management Levels
 HOW THE
MANAGER’S JOB IS
CHANGING

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The Universality of
Management

The reality that management is needed in all

types and sizes of organization, at all
organizational levels, in all organizational
areas, and in organization no matter where
located.

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Universal Need for Management
 The Reality of Work
CHHALLANGES FACED REWARDS OF BEING
AS A MANAGER. MANAGERS.

Satisfaction of creating a winning team.

Keeping pace with a continuous
changing business environment.
Making a difference in developing the
careers of your junior reportees.
Energizing and motivating the
team and managing ambitions Ability to turn around an organization
and idiosyncrasy of star through difficult situation.
performance.
Create an impact among all
Meeting deadlines and targets stakeholders.
and walking the talk (read
promises & commitments made) Recognition & incentives both monetary
and nonmonetary.
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 Effectiveness
Equalizing authority &
Review & Revision Responsibility
Efficiency
Standard Setting Delegation of Power

Strategy Formation Staff Positioning

Forecasting Departmentalization Components of

Management
Goal setting Division of labor

PLANNING ORGANIZING All sizes of Organizations

All Types of Organizations

Functions
Universality of
Management All Organizational Levels
MANAGEMENT
LEADING CONTROLLING

Motivation Measuring
Communication
Comparing Changes and
Bringing Change
Management
Correcting

Managing Conflicts
Manager
Supervision
Digitization
Levels
Interpersonal Roles
Skills Changing security threats
Top Level
Informational
Figure Head
Technical Skills Organizational & Managerial Ethics
Decisional Middle Level
Leader Monitor

Entrepreneur Interpersonal skills First level Increased Competitiveness

Liaison Disseminator

Resource Allocator Conceptual Skills

Spokes person
Negotiator
Diagnostic Skills
Disturbance Handler