ORGANIZATION AND

MANAGEMENT
Er. Rajesh Bhattarai
Pashchimanchal Campus
Class: BME /BAME III/I
2080/02/11 Thrusday 3rd Class
 1.2 Management – course outline
 Functions of Management
 Levels of Management
 Managerial Skills
 Importance of Management
 Models of Management

‘There are no underdeveloped countries, there are undermanaged

countries.’
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 1.2 Management
• Management may be defined as the planning, organizing, leading,
and controlling of human and other resources to achieve
organizational goals effectively and efficiently.
- Resources include people, skills, know-how and experience, machinery,
raw materials, computers and IT, patents, financial capital, and loyal
customers and employees
- Goals include profit Levels or maximum cost levels, maintenance or
growth of financial strength, quality standards, guest employee &
management concerns, professional obligations, societal concerns

• A precise definition of management can be stated as:

“Management is a social process involving co-ordination of human
and material resources through the functions of planning,
organizing, staffing, leading and controlling in order to accomplish
stated objectives.”
• Management as an activity is getting things done through others.

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Management

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•Universal: All the organizations, whether it is profit-making or not, they require
management, for managing their activities. Hence it is universal in nature.
•Goal-Oriented: Every organization is set up with a predetermined objective and
management helps in reaching those goals timely, and smoothly.
•Continuous Process: It is an ongoing process which tends to persist as long as the
organization exists. It is required in every sphere of the organization whether it is
production, human resource, finance or marketing.
•Multi-dimensional: Management is not limited to the administration of people only, but it
also manages work, processes and operations, which makes it a multi-disciplinary activity.
•Group activity: An organization consists of various members who have different needs,
expectations and beliefs. Every person joins the organization with a different motive, but
after becoming a part of the organization they work for achieving the same goal. It
requires supervision, teamwork and coordination, and in this way, management comes
into the picture.
•Dynamic function: An organization exists in a business environment that has various
factors like social, political, legal, technological and economic. A slight change in any of
these factors will affect the organization’s growth and performance. So, to overcome these
changes management formulates strategies and implements them.
•Intangible force: Management can neither be seen nor touched but one can feel its
existence, in the way the organization functions.

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1.2 Management
Is management an art or Management
science ?
ART: Because it depends Process
on the skills, aptitude & Planning
creativity of the manager

SCIENCE: Because there is Organizing

Evaluating Coordinating
considerable knowledge
Staffing
in the field of
management with basic
principles for guidance of Directing
basic activities. Controlling

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 Administration Vs Management
• Administration: Concerned with laying down of
corporate policy, obtaining finance, production &
distribution.

• Management: Concerned with actual execution

of policies within limits set by administration.

• Organization: Combines the work in such a way

with individuals/groups that duties formed
provide best possible application of available
effort.

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 1.2.1 Functions of Management
Management is an ongoing activity consisting of
number of functions. These are:
A. Planning
B. Organizing
C. Staffing
D. Directing
E. Controlling
F. Motivating
G. Co-ordinating
H. Communicating

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A. Planning
Planning is the most basic of all management
functions. Planning means thinking before doing. In
other words, planning is the preparation for action.
Planning includes forecasting, formulation of
objectives, policies, programs, schedules, procedures
and budget.

“Planning is deciding in advance what to do, how to do

it, when to do it and who is to do it. Planning bridges
the gap from where we are, to where we want to go. It
makes it possible for things to occur which would not
otherwise happen” - Koontz and O’Donnell

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 A. Planning
Objectives of Planning
a. To help in effective forecasting.
b. To provide certainty in the activities.
c. To provide performance standards.
d. To give a specific direction to the
organization.
e. To help in tuning organization with the
environment.
f. To provide economy in the management.

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 A. Planning
Advantages of Planning
a. Maximum utilization of resources.
b. Reduces uncertainty.
c. Basis for managerial action.
d. Basis for control.
e. Encourages innovation and creativity.

Limitations of Planning
a. Limitations of forecast.
b. Costly affair.
c. Influence of external factors.
d. Resistance to change.
e. Rigidity and inflexibility.

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 A. Planning
Elements/Components of Planning
a. Goals: relatively long run targets.
b. Objectives: ends towards which the activities of an
organization are targeted.
c. Policies: provides the framework for executive action.
d. Rules: simplest type of plan chosen from alternatives.
e. Procedures: means of implementing a policy.
f. Programs: step by step approach to guide action.
g. Schedule: when each of series of action should take
place.
h. Budget: projection defining anticipated costs.

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 B. Organizing
Organizing involves identification and grouping the
activities to be performed and dividing them among
the individuals and creating authority and
responsibility, relationship among them. Organization,
in fact is a back bone of management, which
establishes relationship between people, work and
resources.
Steps in Organizing
a. Determination of activities.
b. Division of activities.
c. Fitting individuals into jobs.
d. Developing relationships in terms of authorities and
responsibilities.

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 C. Staffing
Staffing involves filling the positions needed in
the organization structure by appointing
competent and qualified persons for the jobs.
Steps in Staffing
a. Recruitment
b. Selection
c. Placement
d. Training
e. Development of personnel
f. Developing system for remuneration of
personnel and evaluating their performance.

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 D. Directing
Directing involves motivating, guiding and supervising
subordinates towards company objectives. Only giving
orders is not directing. Good planning may ensure the
achievement of the predetermined objectives only when
the human efforts, largely diverse are co-ordinated, guided
and directed for the accomplishment of the objectives.
Directing is that part of the management process which
actuates the organizational members to work effectively
and efficiently for the attainment of organizational
objectives.
Steps in Directing
a. Issue of orders and instructions.
b. Guidance and training of subordinates.
c. Supervision of subordinates’ work.

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 E. Controlling
It management literature, the word “Control” has a special meaning. It means
setting standards, measuring actual performance, and taking corrective action.
“Controlling implies measurements of accomplishment against the standard and
the correction of deviations to ensure attainment of objectives according to plans.”
- Koontz and O’Donell
Steps in Controlling
a. Setting standards.
b. Checking and reporting on performance.
c. Taking corrective action.

Types of Control: based on objectives

a. Physical Control: quantity and quality of products
b. Financial Control: cost per unit production, cost of material, labor expenses etc.
c. Budgetary Control: physical and financial standards for future are determined
and results are compared against these pre-determined standards.

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 F. Motivating
Motivation means inspiring people to intensify their desire and
willingness to perform their duties effectively and co-operate for
the achievement of common objectives of the business.
“Motivation is the act of stimulating some one or oneself to get a
desired course of action, to push the right button to get desired
action.”

Fundamentals of Motivation
The first fundamental thing is that a person wants to exist and
survive and for this he needs basic necessities of life e.g. food,
cloth, shelter, education and medical aid etc.
The second fundamental of motivation is the desire to achieve a
goal, for satisfaction or bliss. Basically, people are motivated to put
in sincere efforts if they are assured of fulfilling their needs. Such as
psychological needs, social needs, security needs, ego (needs for
self-respect) etc.

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 E. Motivating
Classification of Motivation
a. Internal Motivation: E.g. Interests, emotional attachments,
burning desires, fighting spirits for noble cause etc.
b. External Motivation: E.g. Attractive salary, bonus, praise,
incentive, punishment, fear of loss of job etc.

Essentials of Sound Motivation System

a. Good wages.
b. Good financial incentive scheme.
c. Opportunities for achievement, growth, motivation.
d. Human relations.
e. Good working conditions.
f. Job satisfaction.
g. Job security.

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 G. Co-ordinating
Co-ordination may be defined as on-going process whereby
a manager develops an integrated, orderly and
synchronized pattern of group effort among his
subordinates and tries to attain unity of effort in the pursuit
of a common purpose.
“Co-ordination is the orderly management of group effort,
to provide unity of action in the pursuit of common
purpose” – Alan C. Reiley and James D. Mooney

Types of Co-ordination
a. Internal Co-ordination
b. External Co-ordination
c. Vertical Co-ordination
d. Horizontal Co-ordination

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 H. Communicating
Communication is the process by which instructions, ideas,
thoughts or information are transmitted, received and understand,
by the persons working in organization.
Components of Communication
a. Sender
b. Message
c. Receiver
d. Feedback
The sender must appropriately prepare the message to be
transmitted to the receiver. The receiver must understand the
message clearly. Communication is never complete until the
sender knows that the message has been received and
understood either through feedback or observation of the
receiver’s behavior.
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 H. Communicating
Process of Effective Communication
For every communication, at least two persons are required
i.e. a sender and a receiver. The various steps involved in
communication are as given in the communication model
as shown below.
Idea
Encoding Transmission
Creation
Feedback

Action Decoding Receiving

Figure: Process of Effective Communication

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ORGANIZATION AND
MANAGEMENT
Er. Rajesh Bhattarai
Pashchimanchal Campus
Class: BME /BAME III/I
2080/02/16 Tuesday 4th Class
1.2.2 Levels of Managemnet

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 1.2.2 Levels of Management
Top level Management:
• Responsible for the performance of all departments
and have cross-departmental responsibility.
• Establish organizational goals and monitor middle
managers
• Decide how different departments should interact
• Ultimately responsible for the success or failure of an
organization
• Includes Board of Directors, CEO, Chairman, Officer etc.

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 1.2.2 Levels of Management

Middle level Management:

• Responsible for finding the best way to organize human and
other resources to achieve organizational goals
• Establish organizational goals and monitor middle managers
• Includes Head of Department, Section officer etc.

Lower level Management:

• Responsible for daily supervision of the non-managerial
employees who perform many of the specific activities
necessary to produce goods and services.
• Includes Foreman, Supervisor, Inspector, Superintendent,
Workers

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1.2.2 Levels of Management
Relative Amount of Time That Managers Spend on
the Four Managerial Functions

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1.2.2 Levels of Management

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1.2.2 Levels of Management

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 1.2.3 Managerial Skills
Managerial skills is the ability of a manager to make a
smooth functioning team of people working under
him. It involves obligation to make effective utilization
of human and material resources. It requires sound
judgment to handle complex situations.

The skills required of a successful manager, whether he

is working in a business organization, an educational
institute or a hospital can be classified as under:
a. Technical Skills
b. Conceptual Skills
c. Human Relation Skills

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 1.2.3 Managerial Skills
• Conceptual skills: The ability to analyze and diagnose a situation
and distinguish between cause and effect.
- Decision making skills: ability to take timely and accurate
decisions.
- Organizational skills: ability to place right men for the right job.
• Human skills: The ability to understand, alter, lead, and control
the behavior of other individuals and groups.
- Communicating skills: ability to pass on information.
- Motivating skills: ability to inspire the subordinates.
- Leadership skills: ability to inspire confidence and trust in the sub-
ordinates.
• Technical skills: Job-specific skills required to perform a particular
type of work or occupation at a high level.
- ability to use methods, processes, tools, equipment, techniques
and knowledge of a specialized field.

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1.2.3 Managerial Skills

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Managerial Roles

Interpersonal Role Informational Role Decisional Roles

Figurehead Role Monitor Role Entrepreneur Role
Liaison Role Disseminator Role Disturbance Handler Role
The leader Role Spokesperson Role Resource Allocator Role
Negotiator Role

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 1.2.4 Importance of Management
• Helps achieve company’s goals/
helps in achieving personal • .
objectives
• Optimum utilization of resources:
• Provide guidance and direction to
employees
• To maintain an efficient work
culture/Encourages Team work
• Cost reduction/improves
efficiency/Reduces wastage
• Organizational growth and
development:
• Creates dynamic organization
• Helps in development in society
• Development of resources
(Human/Nonhuman)
• Motivates employees

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 1.2.5 Models of Management

Based on the different practices, there are

seven different models of management.
1. Hierarchical management Model
2. Task oriented management model
3. Allocational management model
4. Transactional management model
5. Team effort management model
6. Knowledge oriented management model
7. Goal concentrates management model

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 Models of Management
1. Hierarchical Management
Model
- Emphasizes responsibility
and authority.
- Managers receives
authority from superior to
control the work of sub-
ordinates in return of
responsibility.
Limitations: It cannot
explain leadership or role
of charisma & it does not
account for information
connections &
communications.

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 Models of Management

2. Task oriented Planning

management model
- Managers performs 5
major tasks (planning, Controlling Organizing
organizing, coordinating,
directing and
controlling.
- The process is not linear Co-
Directing
and can have cycles and ordinating
can create arbitrary and
possesses artificial links
between managers and
workers.

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 Models of Management
3. Allocational management
model
- A resource manager obtains,
allocates, shares, monitors
consumption and return
resources keeping the ‘cup
topped up’ as necessary.
- It does not provide a true
process view of
management.
- It distinguishes among the
type of resources and stages
of resources and recognizes
the nature of the
organization.

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 Models of Management
4. Transactional management
model
- It views management as a
stage in value added chains
of organizational efforts.
- It stress the role in adding
value to the raw resources,
an organization uses to
produce it products or
services.
- It closely examines the
process through which
management adds value.
- It sees management as
integral to the organization
rather than just a control.

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 Models of Management
5. Team effort management
model
- Managers are concerned with
group development and
functioning.
- As team leaders, managers are
expected to embody the typical
characteristics of group in order
to motivate the group.
- Complex set of interlocking
teams in which managers
concentrates on co-operation,
leadership and coordination.
- Team must work on three
effectiveness factors: skills,
accountability, and
commitment , team mindset

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 1.2.5 Models of Management
6. Knowledge oriented
management model
- Concentrates on the
development and use of
management knowledge.
- Management develops
knowledge and this
knowledge is diffused to the
monitoring relationship,
teaching, coaching and active
training.
- Advantages: Organization
must learn to adapt and win
in changing environment.

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 1.2.5 Models of Management

7. Goal concentrates
management model
- Focuses on role management
and goals in actions.
- Views management as a
control function, incorporates
resource management.
- Managers receive information
from internal and external
environment & order
adjustments so that an
original plan can be adhered
to goals in actions.

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 Qualities of Good Manager
1. Transparent
2. Excellent Communicators
3. Listening Skills
4. Appreciating &
Encouraging Teamwork
5. Stable and Reliable
6. Expert in goal setting
7. Making fast & good
decision
8. Dynamic
9. Motivator
10. Fair

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 Home Assignment Chapter 1.2
1. What is management? Explain the functions of
management.
2. Explain the different levels of management with their own
specific tasks.
3. State and describe different managerial roles and skills.
What are the qualities of good manager?
4. An executive director needs more technical skills than
conceptual skills. Do you agree with this statement?
5. Describe the importance of management. Comment on
management is both art and science.
6. What are the different models of management? Explain any
three of them in detail.

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