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Week 01: Lecture Notes

INTRODUCTION OF MANAGEMENT
vManagement is the art of getting things done through
others
vManagement is concerned with ideas, things, and people
vManagement is the effective utilization of human and
material resources to achieve the enterprise's objectives
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CONCEPT OF MANAGEMENT

Manpower
1. Management as a process
2. Management as an economic
resource
3. Management as a group of people
Money Management Materials 4. Management as a system of authority
5. Management as a separate discipline

Machinery
Planning Organising Staffing Directing Controlling
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DEFINITION OF MANAGEMENT
“Management is the process by which managers create, direct, maintain, and
operate purposive organizations through systematic, coordinated, cooperative
human efforts”
-Dalton E. McFarland

“Business management is a human activity which directs and controls

the organization and operations of a business enterprise. Management
is centered in the administrators or managers of the firm who integrate men,
material, and money into an effective operating unit.”
-B.O. Wheeler
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CHARACTERISTICS OF MANAGEMENT

1. Management is a goal-oriented process.

2. Management is a universal process.
3. Management is multidimensional.
4. Management is a group phenomenon.
5. Management is a continuous process.
6. Management is an integrative force.
7. Management is an intangible force.
8. Management is a social process.
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IMPORTANCE OF MANAGEMENT

1. Management helps in achieving organizational goals.

2. Management increases efficiency.
3. Management helps in achieving personal objectives.
4. Management creates a dynamic organization.
5. Management helps in the development of society.
Week 01: Lecture Notes

MANAGEMENT VS ADMINISTRATION
Ø Administration is above management:
• Administration is a higher-level activity, while management is a lower-level function.
• Administration is a determinative function, and management is an executive function.
• This view is largely endorsed by American experts in management.

Ø Administration is a part of management:

• The British School of Thought considers administration as a subset of management.
• Management, according to this perspective, encompasses administration.

Ø Administration and Management as same:

• “Administration" is commonly used in government departments, while "management" in private
sectors.
• Every manager performs both sets of functions, with variations depending on management
level.
 DISTINCTION BETWEEN ADMINISTRATION AND
MANAGEMENT
Basis Administration Management

Nature Deterministic function Executive function

Scope Determination of major objectives and Implementation of policies
policies
Level Top level function Largely middle and lower level function

Direction of human Directly not concerned with direction of Actively concerned with direction of
efforts human efforts. human efforts.

Main function Planning and controlling Directing and organizing

Skills required Conceptual and human skills Technical and human skills
Usage Government and public sector Business organizations
Influence Decisions are mainly influenced by public Decisions are mainly influenced by
opinions objectives of the organisation
 MANAGEMENT- ART, SCIENCE OR
PROFESSION?
Management as a Science: How Management is
Science is a body of systematized knowledge,
acquired through observation and Science?
experimentation, that explains certain general
truths or the operation of general laws.
1. Management has well-
Features of Science: established principles.
1. Systematized body of knowledge. 2. Principles of management have
2. Principles based on observation and been developed through
experimentation.
3. Verifiable principle. continuous observations and
4. Universal application. empirical verifications.
 MANAGEMENT AS AN ART
How Management is an Art?
Art is defined as skillful and personal 1. Management involves knowledge and
application of systematic knowledge to skills that every manager has to apply
bring desired result. conceptual, human, and technical skills.
2. Like any other art, management is creative
Features of Art: in nature. It brings out new situations and
makes resources productive.
1. Existence of theoretical knowledge.
3. Like any other art, management is a
2. Personalized application of knowledge. personalized process. Every manager has
3. Based on practice and creativity. his own approach and techniques.
4. Situational application. 4. As an art, management required
judgement and skills.
 MANAGEMENT AS A PROFESSION
A profession is a specialized occupation backed by specialized knowledge and
training with restricted entry.

Feature of Profession:
1. Well-defined body of knowledge.
2. Minimum qualification.
3. Professional association.
4. Ethical code of conduct.
5. Service motive.
Management is seen as a profession due to:

1. A well-established body of knowledge, crucial for effective managerial skills.

.

2. Supportive managerial associations aiding professional development.

3. Existence of ethical codes of conduct promoted by management associations.
4. Emphasis on service motive within management practices.

However, management may not be considered a profession because:

1. Entry into management lacks restrictions.

2. Presence of numerous management associations leads to a lack of a unified representation.
3. Absence of universally accepted code of conduct in management.
Week 01: Lecture Notes 12

INTRODUCTION TO LEVELS OF MANAGEMENT

In an organization, there exists a chain of command from the ultimate
authority to lower rank

Chain is formed of superior-subordinate relationships.

It determines the authority and status of managers.

No fixed number of management levels: depends on the organization’s size

and complexity.
Number of levels in management increases with increase in size and work
force of business and vice-versa.
Understanding these levels is crucial for grasping the dynamics and
functioning of an organization.
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MANAGEMENT LEVELS
Board of Directors, Chief
Executives Top

Departmental Divisional Heads

Plant Superintendents, Branch
Managers
Middle

Foreman Supervisors Lower

Figure: Levels of Management

 TOP MANAGEMENT
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Top-level management consists of executives such as Board of

Directors, CEOs, Presidents, Vice Presidents, and Directors.

It is ultimate source of management authority.

It is accountable for overall management to the shareholders of

company.

Top-level managers are focused on long-term planning and guiding the

organization towards its vision and mission.
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KEY FUNCTIONS OF TOP MANAGEMENT

1. Formulation of long-term objectives, strategies, and policies of

organization.
2. Analyze and address external environmental forces.
3. Allocation of resources to different business units and departments.
4. Establishes organizational structures and authority-responsibility
relationships.
5. Appoints key executives and departmental heads.
6. Represents the company externally.
7. Coordinating the operations of various departments for cohesive
functioning.
8. Conducts comprehensive review and control of company operations.
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MIDDLE MANAGEMENT

Middle management comprises of departmental or divisional heads –

such as plant managers, sales managers, office managers etc.

Each functional manager is responsible for the efficient functioning of

their departments.

Transmit orders, decisions and guidance downwards; and problems,

difficulties, and suggestions upwards

It can be put into three categories: upper, middle, and lower middle
management.
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KEY FUNCTION OF MIDDLE MANAGEMENT

1. Interprets and explains the policies framed by top management.

2. Formulate tactical plans for short-term based on overall long-term
organization’s plans.
3. Recruit supervisory personnel.
4. Allocates resources to various sections and departments.
5. Participates in operating decisions
6. Coordinate functions of various divisions or departments.
7. Motivates the supervisory personnel.
8. Trains the supervisory and operative personnel.
9. Reviewing and controlling departmental functioning.
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LOWER MANAGEMENT
Lower management is also known as supervisory or operational management
and it consist of plant superintendents, senior foreman, sales officer etc.

Directly deals with operatives.

Acts as a link between management and operatives.

Operative managers are expected to get work done from staffs under their
control

The largest no of people is at the bottom of organizational level.

 KEY FUNCTIONS OF 19

SUPERVISORY MANAGEMENT

1. To plan day-to-day performance within the goals laid down by

higher authorities.
2. Supervise and guide workers.
3. Arrange materials and tools and to maintain machinery.
4. Provide training to operatives.
5. Maintain discipline, morale and good human relations among
workers.
6. Provide safe working condition.
7. Conveying feedback information and workers problems upward.
8. Reviewing and controlling performance of operatives.
 COMPARISON OF THREE MANAGERIAL LEVELS 20

Characteristics Top Management Middle Supervisory

Management Management
Number of Persons Very few Moderate number Many
Nature of Functions Broad and creative Less broad and Routine and
creative detailed
Role Strategic Tactical Operational
Level of Very high Medium Very low
Complexity
Job Difficulty Very difficult Less Difficulty Easy
Time Dimension Long term Medium term Day-to-day
Week 01: Lecture Notes 21

WHO IS A MANAGER?
A manager is a person responsible for the work performance of group members.
A manager is a professional who takes a leadership role in an organization and
manages a team of employees
Planning and Training
Leading
Organizing Employees

Role of a Decision Conflict Managing

manager Making Management Budget

Performance
Hiring Staff Communicating
Review
 SKILLS OF MANAGERS 22

Ø Technical skill (Mastery of ‘things’)

• It is the ability and knowledge to use the tools, equipment, processes,
techniques, and procedures involved in performing specific tasks.
• Managers need technical skills to guide and train subordinates.
• The manager should know: which skill should be employed and Inter-
relationship between skills. Technical skills deals with
job
Ø Human skill (Mastery of understanding ‘people’)
• It consists of the ability to work effectively with, understand and motivate other
people both as individual and as member of group. Human skills deals with
• Communicating, motivating, mentoring and delegating. person
• Win Cooperation
• Build an effective work team.
Conceptual skills deals with
ideas
Ø Conceptual skill (Mastery of ‘ideas’)
• Ability to see the organization as a whole and inter-relationship between its
parts.
• Mental ability to coordinate and integrate all of the organization’s interests and
activities
• Manager needs higher conceptual skills to recognize the various factors in
varied situation
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Technical Skills: Human Skills: Conceptual Skills:

•Planning Skills •Leadership Skills •Administrative Skills

•Technical Skills •HR Management •Organizational Skills
•Time Management Skills •Resource Allocation
Skills •Communication Skills Skills
•Cost Management •Decision Making •Management
•Forecasting Skills Skills Support Building
•Quality Management •Managing Health & Skills
Skills Safety
•Risk Management •Motivation Skills
Skills •Conflict Resolution
Skills
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Source: Managerial Skills according to Robert L. Katz

Technical skills - competencies important, particularly for lower management

Human skills - competencies needed for all levels of management
Conceptual skills - competencies with a substantial importance, particularly for top management
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ROLE OF A MANAGER
Henry Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our
Strange World of Organizations," in 1990. He divided them into 3 categories.
Manager's
Role

Interpersonal Informational Decisional

Role Role Role

Figurehead Monitor Enterpreneur

Disturbance
Leader Disseminator Handler

Resource
Liaison Spokesperson Allocator

Negotiator
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Mintzberg’s Managerial Roles

.

Category Role Description Example

Interpersonal Figurehead Acting as a symbolic leader and A CEO attending a ribbon-cutting

Roles: representing the organization. ceremony for a new office building,
symbolizing the organization's
expansion.

Leader Motivating, guiding, and directing A team manager providing

subordinates. guidance and support to team
members, setting goals, and
motivating them to achieve
objectives.
Liaison Building and maintaining An HR manager building
networks both inside and outside relationships with local universities
the organization. to establish internship programs
and recruit top talent.
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Mintzberg’s Managerial Roles

.

Category Role Description Example

Informational Roles: Monitor Collecting and disseminating A marketing manager tracking

relevant information. market trends, competitor activities,
and customer preferences to inform
strategic decisions.

Disseminator Transmitting information A department head sharing updates

internally. on company policies and procedures
during a staff meeting.

Spokesperson Representing the organization A public relations manager giving

externally. interviews to the media to
communicate the company's stance
on a recent industry development.
 Mintzberg’s Managerial Roles 28

Category Role Description . Example

Decisional Roles: Entrepreneur Initiating change and innovation. A product manager identifying a
gap in the market and proposing a
new product idea to the executive
team.
Disturbance Managing conflicts and crises. A crisis management team led by
Handler the operations manager addressing a
manufacturing issue that threatens
production schedules.
Resource Allocates human, material, and A finance manager determining
Allocator monetary resources efficiently. budget allocations for various
departments based on their strategic
priorities and performance.
Negotiator Bargaining and representing the A procurement manager
organization's interests in negotiating contracts with suppliers
negotiations. to secure favorable terms and
pricing for raw materials.
Source: Based on Mintzberg, Henry, The Nature of Managerial Work
Week 01: Lecture Notes
CONCEPT OF COORDINATION
Coordination implies an orderly pattern or arrangement of group efforts to ensure
unity of action in the pursuit of common objectives.

• Henry Fayol – “to coordinate is to harmonize all the activities of a concern so as to

facilitate its working and its success”.
• McFarland – Coordination is the process whereby an executive develops an
orderly pattern of group efforts among his subordinates and secures unity of action
in the pursuit of common purpose”.
• E.F.L Brech – “Coordination is balancing and keeping together the team by
ensuring a suitable allocation of tasks to the various members, and seeing that the
task are performed with due harmony among the members themselves”

Balancing Timing Integrating

 CHARACTERISTICS OF COORDINATION
1. Coordination is integral to management, not a separate function.
2. Coordination is a fundamental duty of every manager.
3. Coordination is not spontaneous.
4. Coordination is an ongoing and dynamic process.
5. Coordination is present in every organization.
6. Coordination is essential for group efforts.
7. Coordination aims for unity of purpose among group members.
8. Coordination focuses on achieving organizational goals.
9. Coordination is necessary at all levels.
 COORDINATION VS COOPERATION
Basis Coordination Cooperation
Meaning It is an orderly arrangement of group efforts in It means mutual help willingly.
pursuit of common goals.

Scope It is broader than co-operation as it harmonizes It is a part of co-ordination.

the group efforts.

Process The function of co-ordination is performed by The functions of co-operation are prepared by
top management. persons at any level.

Requirements Co-ordination is required by employees and Co-operation is emotional in nature because it

departments at work irrespective of their work. depends on the willingness of people working
together.

Relationship It establishes formal and informal relationships. It establishes informal relationship.

Freedom It is planned and entrusted by the central It depends upon the sweet will of the individuals
authority, and it is essential. and therefore it is not necessary.

Support It seeks wholehearted support from various Co-operation without co-ordination is fruitless &
people working at various levels. therefore it may lead to unbalanced developments.

Source: Prachi Juneja, Management Study Guide

 NEED FOR COORDINATION

Coordination is required whenever and wherever a group of persons works

together to achieve a common goal through unified actions.

1. Increase in size and complexity of operations

2. Specialization
3. Different outlook
4. Clash of interests
5. Independence of units
6. Conflicts
 ADVANTAGES OF COORDINATION

Higher efficiency and economy.

Good human relations.

Unity of direction.

Quintessence of management.

Organization effectiveness.
 TYPES OF COORDINATION

Internal Coordination

External Coordination

Vertical Coordination

Horizontal Coordination
 TECHNIQUES OF COORDINATION

Simplified Effective
Sound Planning
Organization Communication

Effective Liaison
Incentives
Leadership Departments
 COORDINATION AS ESSENCE OF MANAGEMENT
Coordination is a hidden force that binds all the functions of management.

Planning

Controlling Organizing

Coordination

Directing Staffing