Management

Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.

Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals, goals are
fundamental elements of organization.

The Role of Management

To guide the organizations towards goal
accomplishment
According to Harold Koontz, “Management is an
art of getting things done through and with the
people in formally organized groups. It is an art of
creating an environment in which people can
perform and individuals and can co-operate
towards attainment of group goals”.

According to F.W. Taylor, “Management is an art of

knowing what to do, when to do and see that it is
done in the best and cheapest way”.
 Management is a universal phenomenon

 Management is a purposive activity.

 Management involves creating an internal environment

 good management includes both being effective and

efficient
 The process of reaching organizational goals by working
with and through people and other organizational resources.
 Efficiency means doing the task correctly and
refers to the relationship between inputs and
outputs. Management is concerned with
minimizing resource costs.

Effectiveness means doing the right things. In an

organization, that translates into goal attainment.
 Means Ends
Efficiency Effectiveness

Resource Low Goals High Goal

usage attainment
waste attainment
Manager, a person who works in
an organization and he is
responsible to manage the
organization in a better way and
achieved the organization’s
objectives.
An organization is a systematic
arrangement of people to
accomplish some specific
purpose.
- People responsible for
directing the efforts aimed
at helping organizations
achieve their goals.
- A person who plans,
organizes, directs and
controls the allocation of
human, material, financial,
and information resources
in pursuit of the
organization’s goals.
 General skills Specific skills
 Conceptual skills  Controlling the organization’s
environment and its resources
 Interpersonal skills
 Organizing and coordinating
 Technical skills
 Handling information
 Political skills
 Providing for growth and
development
 Motivating employees and
handling conflicts
 Strategic problem solving
 Planning
 The process of setting objectives and determining how to best
accomplish them.
 Objectives
 Identify the specific results or desired outcomes that one
intends to achieve.
 Plan
 A statement of action steps to be taken in order to accomplish
the objectives.

A manager can be compared to an orchestra conductor since

both of them have to create rhythm and unity in the activities
of group members
10
 Mintzberg concluded that managers perform 10 different but highly
interrelated roles. These 10 roles can be grouped under three primary
headings:
 Interpersonal relationship
 The transfer of information
 Decision making
 The core of Mitzberg's Ten Managerial Roles is that
managers need to be both organisational generalists
and specialists. This is due to three reasons:

 External frustrations including operational

imperfections and environmental pressures.
 Authority disputes which upset even basic routines.
 The expected fallibility of the individual and human,
manager.
 This part encompasses three roles:

Role Description Identifiable

Activities
Figurehead Symbolic head; obliged to perform a Greeting visitors;
number of routine duties of a legal or social signing documents
nature
Responsible for the motivation and Performing virtually all
activation of employees; responsible for activities that involve
Leader
staffing, training, and associated duties subordinates
Maintains self-developed network of Acknowledging mail;
outside contacts and informers who provide performing other
Liaison activities that involve
favors and information
outsiders
The informational roles also include three roles:

Role Description Identifiable

Activities
Emerges as nerve center of internal Reading periodicals and
Monitor
and external information about reports; maintaining
Information. personal contact.
Disseminator Transmits information received from Holding informational
other employees to members of meeting; making phone
the organization. calls to relay information.
Spokesperson Transmit information to outsiders on Holding board meeting;
organization’s plan, policies, actions, giving information to the
results, etc. media.
 The decisional roles include four roles:

Role Description Identifiable

Activities
Searches for development opportunities in the Designing and initiating
Entrepreneur dynamic environment and initiates changes within the
“improvement projects” to bring about change. organization.
Disturbance Responsible for corrective action when Taking corrective action in
handler organization faces important disturbances. nonroutine situations.
Performing any activity that
Resource Responsible for the allocation of involves budgeting and the
organizational resources of all kinds. programming of
allocator employees’ work.
Responsible for representing the organization Participating in negotiations
with other parties.
Negotiator at major negotiations.
 A crow was sitting on a tree, doing nothing all day. A
small rabbit saw the crow, and asked him, "Can I also
sit like you and do nothing all day long?"

The crow answered: "Sure, why not."

So, the rabbit sat on the ground below the crow, and
rested.

All of a sudden, a fox appeared, jumped on the rabbit

and ate it.
 Management Lesson:
To be sitting and doing nothing, you must be sitting
very, very high up.
 Management is Goal-Oriented
 Management integrates Human, Physical and
Financial Resources
 Management is Continuous
 Management is all Pervasive
 Management is a Group Activity
 Getting Maximum Results with Minimum Efforts
 Maximum Prosperity for Employer & Employees
 Human betterment & Social Justice
 1. Management as a Process
 2. Management as an Activity
 3. Management as a Discipline
 4. Management as a Group
 5. Management as a Science
 6. Management as an Art
 7. Management as a Profession
 George R. Terry, “Management is a distinct process
consisting of planning, organizing, actuating and
controlling, performed to determine and accomplish
stated objective by the use of human beings and other
resources”.
 Administration means overall determination of
policies, setting of major objectives, the identification
of general purposes and laying down of broad
programmes and projects”. It refers to the activities of
higher level. It lays down basic principles of the
enterprise. According to Newman, “Administration
means guidance, leadership & control of the efforts of
the groups towards some common goals”.
 Management involves conceiving, initiating and
bringing together the various elements; coordinating,
actuating, integrating the diverse organizational
components while sustaining the viability of the
organization towards some pre-determined goals. In
other words, it is an art of getting things done through
& with the people in formally organized groups
Basis Management Administration

Meaning Management is an art of getting things It is concerned with formulation of broad

done through others by directing their objectives, plans & policies.
efforts towards achievement of pre-
determined goals.

Nature Management is an executing function. Administration is a decision-making

function.

Process Management decides who should as it Administration decides what is to be

& how should he dot it. done & when it is to be done.

Function Management is a doing function Administration is a thinking function

because managers get work done because plans & policies are
under their supervision. determined under it.

Skills Technical and Human skills Conceptual and Human skills

Level Middle & lower level function Top level function

Basis Management Administration

Applicability It is applicable to business It is applicable to non-business

concerns i.e. profit-making concerns i.e. clubs, schools,
organization. hospitals etc.

Influence The management decisions are The administration is influenced

influenced by the values, by public opinion, govt. policies,
opinions, beliefs & decisions of religious organizations, customs
the managers. etc.

Status Management constitutes the Administration represents owners

employees of the organization of the enterprise who earn return
who are paid remuneration (in the on their capital invested & profits
form of salaries & wages). in the form of dividend.
 Low Level Managers: have direct responsibility
 for producing goods or services Foreman, supervisors,
 clerical supervisors
 Middle Level Managers:
 Coordinate employee activities
 Determine which goods or services to provide
 Decide how to market goods or services to customers
Assistant Manager, Manager (Section Head)
 Top Level Managers: provide the overall direction of an
organization Chief Executive Officer, President, Vice
President
 LOW LEVEL MANAGERS

 Directly responsible for production of goods or services

 Employees who report to first-line managers do the
organization’s work
 Spend little time with top managers in large organizations
 Technical expertise is important
 Rely on planning and administration, self-management,
teamwork, and communication competencies to get work
done
 MIDDLE LEVEL MANAGERS
 Responsible for setting objectives that are consistent with
top management’s goals and translating them into specific
goals and plans for first-line managers to implement
 Responsible for coordinating activities of first-line
managers
 Establish target dates for products/services to be delivered
 Need to coordinate with others for resources
 Ability to develop others is important
 Rely on communication, teamwork, and planning and
administration competencies to achieve goals
 TOP LEVEL MANAGERS
 Responsible for providing the overall direction of an
organization
 Develop goals and strategies for entire organization
 Spend most of their time planning and leading
 Communicate with key stakeholders—stockholders,
unions, governmental agencies, etc., company
policies
 Use of multicultural and strategic action
competencies to lead firm is crucial
 Choose any company and write management roles of
an existing company
 This part encompasses three roles:

Role Description Identifiable

Activities
Figurehead Symbolic head; obliged to perform a Greeting visitors;
number of routine duties of a legal or social signing documents
nature
Responsible for the motivation and Performing virtually all
activation of employees; responsible for activities that involve
Leader
staffing, training, and associated duties subordinates
Maintains self-developed network of Acknowledging mail;
outside contacts and informers who provide performing other
Liaison activities that involve
favors and information
outsiders
The informational roles also include three roles:

Role Description Identifiable

Activities
Emerges as nerve center of internal Reading periodicals and
Monitor
and external information about reports; maintaining
Information. personal contact.
Disseminator Transmits information received from Holding informational
other employees to members of meeting; making phone
the organization. calls to relay information.
Spokesperson Transmit information to outsiders on Holding board meeting;
organization’s plan, policies, actions, giving information to the
results, etc. media.
 The decisional roles include four roles:

Role Description Identifiable

Activities
Searches for development opportunities in the Designing and initiating
Entrepreneur dynamic environment and initiates changes within the
“improvement projects” to bring about change. organization.
Disturbance Responsible for corrective action when Taking corrective action in
handler organization faces important disturbances. nonroutine situations.
Performing any activity that
Resource Responsible for the allocation of involves budgeting and the
organizational resources of all kinds. programming of
allocator employees’ work.
Responsible for representing the organization Participating in negotiations
with other parties.
Negotiator at major negotiations.
 Approaches -> Emphasis
 Classical - worker efficiency "one right way" to perform
a task
 Behavioral - Understanding the worker to improve
efficiency
 Management Science - Scientific method to improve
productivity and organizational effectiveness
 Contingency - The best approach to problem vary
depending on situations
 Frederick Taylor
 scientific management theory
 "the productivity will increase through careful, systematic
design of workplace conditions, work methods and proper
training and instruction of workers"
 Fundamental Principles:
 The development of a true science of management to
determine the best method for task performance
 The scientific selection of worker towards provision of
responsibility for the task which he/she is best suited
 The scientific education and development of worker
 The intimate, friendly cooperation between management
and workers
 Henri Fayol
 administrative theory
 "with scientific forecasting and proper methods of
management, satisfactory results were inevitable"
 Henry Gantt
 scheduling and rewarding employees
 developed the Gantt Chart which is a tool for displaying
the progression of a project in a form of specialized
chart
 provides a graphical illustration of a schedule that helps
to plan, coordinate and track specific tasks in a project
 Max Weber
 bureaucracy for complex organizations
 organizations with hierarchical structure are most
efficient and effective
 Characteristics of Bureaucratic Organization:
 tasks are specialized
 person is appointed by merit because of ability and
not of favoritism or whim
 career opportunities are provided
 authority and responsibility are specified
 activities are routinized
 a rational and impersonal climate exists
 Elton Mayo
 Hawthorne experiments
 founder of human relations movement
 Hawthorne effect describes a temporary change to
behavior or performance in response to a change in the
environmental conditions, with the response being
typically an improvement
 Douglas McGregor
 Theory X and Theory Y:
 Theory X
 Average person is inherently lazy; does not like work and will try to avoid
it; works to survive
 Avoids responsibility; prefers to be directed rather than act
independently; little or no ambition, not too intelligent; wants only
security
 Manager must exercise strict control to ensure work is carried out
properly
 Theory Y
 Views human nature positively
 People regard work as a source of satisfaction; accept and seek
responsibility
 Work is motivating and rewarding
 Manager provides opportunities for the subordinates to be creative and
productive and to encourage growth and guidance