UNIT-1

Introduction to Managers and Management: Management an Overview: Introduction,

Definition of Management, Role of Management, Functions of Managers, Levels of Management,
Management Skills and Organizational Hierarchy, Social and Ethical Responsibilities of
Management: Arguments for and against Social Responsibilities of Business, Social Stakeholders,
Measuring Social Responsiveness and Managerial Ethics, Omnipotent and Symbolic View,
Characteristics and importance of organizational culture, Relevance of political, legal, economic
and Cultural environments to global business, Structures and techniques organizations use asthey
go international

1.1 Management: An Overview

Management is a fundamental aspect of organizational dynamics, encompassing a broad spectrum

of responsibilities aimed at achieving organizational goals efficiently and effectively. It involves
the coordination of resources, people, and processes to optimize performance and ensure the
success of the organization.

Definition of Management

Management can be defined as the process of planning, organizing, leading, and controlling
resources (including human, financial, physical, and informational) to achieve organizational goals
effectively and efficiently. It involves coordinating the efforts of individuals and groups within an
organization to accomplish common objectives while adapting to changing circumstances and
environments.

At its core, management encompasses the systematic coordination of activities and resources to
accomplish predetermined objectives. It involves making decisions, setting priorities, allocating
resources, and overseeing operations to ensure that organizational goals are met in a timely and
cost-effective manner.

Moreover, management entails leadership, communication, problem-solving, and decision-

making skills to inspire and motivate employees, resolve conflicts, and address challenges that
arise in the pursuit of organizational objectives.
Management serves as the cornerstone of organizational efficacy and efficiency, providing
guidance, coordination, and supervision to achieve objectives. It encompasses a wide array of
functions, roles, and responsibilities aimed at optimizing resources and maximizing outcomes.

In today's ever-evolving and competitive business environment, effective management is

imperative for navigating complexities, capitalizing on opportunities, and overcoming obstacles.
Whether in the realm of business, government, or non-profit organizations, management principles
and practices are instrumental in driving success and sustainability.

This overview aims to explore the fundamental tenets of management, including its definition,
significance, and core components. By comprehending the essence of management, individuals
can gain insights into its multifaceted nature and its profound impact on organizational
performance and success.

1.2 Functions of Managers

In organizations, managers play pivotal roles in ensuring the attainment of goals and the smooth
functioning of operations. These roles and responsibilities are delineated into various functions
and hierarchical levels.

Managers fulfill various essential functions within organizations to ensure smooth operations and
the achievement of objectives. These functions encompass a range of responsibilities aimed at
effective leadership and organizational success.

1. Planning: Planning involves setting objectives, defining strategies, and developing action
plans to guide organizational activities. Managers analyze current situations, anticipate
future trends, and establish goals that align with the organization's mission and vision.
2. Organizing: Organizing entails arranging resources, including people, materials, and
equipment, to accomplish predetermined objectives. Managers create organizational
structures, delegate tasks, and establish reporting relationships to facilitate the efficient
execution of plans.
 3. Leading: Leading involves inspiring, motivating, and guiding employees to work towards
common goals. Managers provide direction, support, and encouragement to individuals
and teams, fostering a positive work environment conducive to high performance and
employee engagement.
4. Controlling: Controlling focuses on monitoring performance, measuring outcomes, and
taking corrective actions as necessary to ensure that goals are achieved and standards are
maintained. Managers establish performance metrics, track progress, and intervene when
deviations occur to keep operations on track.

By effectively fulfilling these functions, managers contribute to organizational effectiveness,

employee satisfaction, and overall performance. They play a critical role in driving innovation,
fostering collaboration, and adapting to changing market dynamics, ultimately contributing to the
long-term success of the organization.

Role of Management: The role of management is multifaceted and encompasses various

functions aimed at achieving organizational objectives and ensuring the efficient utilization of
resources. Some key aspects of the role of management include:

1. Setting Objectives: Management is responsible for defining the goals and objectives of the
organization, aligning them with its mission and vision, and establishing strategies to achieve
them.
2. Planning: Managers engage in strategic planning to develop action plans, allocate resources, and
anticipate future trends and challenges. They create roadmaps to guide organizational activities
and ensure that resources are used effectively.
3. Organizing: Management involves organizing resources, including human resources, finances,
and materials, to facilitate the implementation of plans and achieve desired outcomes. Managers
establish structures, roles, and responsibilities to streamline operations and enhance efficiency.
4. Leading: Effective leadership is a critical aspect of management. Managers inspire, motivate, and
guide employees to work towards common goals, fostering a positive work culture and promoting
employee engagement and commitment.
5. Controlling: Management is responsible for monitoring performance, measuring outcomes, and
taking corrective actions when necessary to ensure that organizational goals are achieved.
Managers establish performance metrics, analyze results, and implement changes to improve
performance and maintain accountability.

Functions of Managers:

Managers perform various functions to fulfill their roles and responsibilities within organizations.
These functions are interrelated and include:

1. Planning: Managers engage in strategic planning to set objectives, develop plans, and allocate
resources to achieve organizational goals effectively.
2. Organizing: Managers organize resources and establish structures, roles, and responsibilities to
facilitate the implementation of plans and streamline operations.
3. Leading: Managers provide direction, guidance, and motivation to employees, inspiring them to
work towards common objectives and fostering a positive work environment.
4. Controlling: Managers monitor performance, measure outcomes, and take corrective actions as
needed to ensure that organizational goals are met and standards are maintained.

By performing these functions effectively, managers contribute to the success and sustainability
of organizations, driving innovation, productivity, and growth. They play a crucial role in
coordinating activities, managing resources, and guiding employees towards achieving
organizational objectives.

1.3. Levels of Management:

Within organizations, management roles are stratified into distinct levels, each with its own set of
responsibilities and authority.

1. Top-Level Management: At the apex of the organizational hierarchy are top-level managers,
including executives and senior leaders. Their primary responsibilities involve:
 Setting the overall direction and strategic goals of the organization.
 Making high-level decisions regarding major initiatives, investments, and policies.
  Representing the organization to external stakeholders such as investors, regulators, and
the public.
 Providing guidance and direction to middle and frontline managers.
2. Middle-Level Management: Middle-level managers operate between top-level management and
frontline employees, overseeing specific departments, divisions, or functional areas. Their key
responsibilities include:
 Implementing the strategic plans and directives set by top-level management.
 Coordinating activities within their respective areas to ensure alignment with
organizational objectives.
 Communicating objectives, policies, and performance expectations to frontline employees.
 Facilitating collaboration and cooperation between different departments or teams.
3. Frontline Management: Frontline managers, also known as first-line or supervisory managers,
directly oversee the day-to-day activities of employees. Their main responsibilities include:
 Assigning tasks and responsibilities to employees based on organizational priorities and
individual capabilities.
 Monitoring and supervising the execution of tasks to ensure quality, efficiency, and
compliance with organizational policies.
 Providing guidance, support, and feedback to employees to enhance performance and
productivity.
 Addressing operational issues, resolving conflicts, and making real-time decisions to
address challenges as they arise.

These levels of management form a hierarchical structure that facilitates communication,

coordination, and decision-making within the organization. Each level plays a critical role in
translating organizational objectives into actionable plans and ensuring the efficient execution of
tasks to achieve desired outcomes.

Overall, managers at different levels contribute to the attainment of organizational goals through
their distinct functions and roles within the management hierarchy. Understanding these functions
and levels is crucial for effective managerial performance and organizational success
1.4. Management Skills and Organizational Hierarchy:
Management Skills: Management skills are the essential competencies that managers require to
fulfill their roles effectively within organizations. These skills are crucial for coordinating
resources, leading teams, making decisions, and achieving organizational objectives. They can be
broadly categorized into four main types:
 Technical Skills: These are specific competencies and knowledge related to performing
tasks and activities within a particular field or industry. For instance, a manager in a
manufacturing company may need technical skills in production processes, machinery
operation, and quality control.
 Human Skills: Also known as interpersonal skills, these involve the ability to work
effectively with others and understand their perspectives, motivations, and emotions.
Strong human skills enable managers to build rapport, communicate effectively, resolve
conflicts, and motivate team members.
 Conceptual Skills: Conceptual skills encompass critical thinking, analysis of complex
situations, and understanding the broader organizational context. Managers with strong
conceptual skills can identify patterns, anticipate trends, develop strategic plans, and make
informed decisions aligned with organizational goals.
 Communication Skills: Effective communication is essential for conveying information,
ideas, and expectations clearly and efficiently. Managers must be proficient in verbal
communication, written communication, and nonverbal cues to communicate with
employees, colleagues, and stakeholders.

1.5. Organizational Hierarchy:

Organizational hierarchy refers to the structure of authority, responsibility, and communication
within an organization. It delineates the levels of management and the reporting relationships
between managers and subordinates. The typical organizational hierarchy comprises three main
levels:
 Top-Level Management: This includes executives or senior management responsible for
setting organizational goals, devising strategic plans, and making high-level decisions that
impact the entire organization. Examples include CEOs, presidents, and vice presidents.
  Middle-Level Management: Middle-level managers oversee specific departments,
divisions, or units within the organization. They implement strategies, coordinate activities,
and communicate with both top-level management and frontline employees. Examples
include department heads, branch managers, and division managers.
 Frontline Management: Frontline managers, also called first-line or supervisory
managers, directly supervise employees and oversee daily operations. They assign tasks,
monitor performance, and ensure that organizational goals are met at the operational level.
Examples include team leaders, shift supervisors, and forepersons.
The organizational hierarchy provides a framework for decision-making, coordination, and
communication within the organization. It clarifies roles, establishes reporting relationships, and
facilitates the flow of information from top management to frontline employees.

Understanding and developing management skills, along with comprehending the organizational
hierarchy, are critical for effective leadership, team management, and organizational success.
These skills and knowledge contribute to managerial competence and career advancement in the
dynamic field of management.

1.6. Social and Ethical Responsibilities of Management

Managing the social responsibilities of a business necessitates a blend of leadership, strategic

acumen, and operational prowess. Here are some managerial competencies vital for addressing
social responsibilities:
1. Visionary Leadership: Leaders with a clear vision for integrating social responsibility into
business operations can inspire stakeholders to align with social goals.
2. Engagement with Stakeholders: Actively involving stakeholders such as employees, customers,
suppliers, and local communities enables understanding their concerns and incorporating feedback
into social responsibility initiatives.
3. Ethical Decision-Making: Managers must make decisions ethically, balancing social welfare with
business interests and considering the impacts on all stakeholders.
4. Strategic Planning: Developing a robust strategy involves setting goals, identifying focus areas
(e.g., environmental sustainability, community development), and allocating resources effectively.
5. Risk Management: Identifying and mitigating potential risks, such as reputational damage or
regulatory compliance issues, requires thorough risk assessment and management.
6. Cross-Functional Collaboration: Collaboration across departments ensures social responsibility
initiatives are integrated into various business functions, including operations, marketing, finance,
and human resources.
7. Transparency and Accountability: Maintaining transparency in reporting social impact metrics
and upholding accountability for commitments builds trust and credibility with stakeholders.
8. Innovation and Continuous Improvement: Encouraging innovation in social responsibility
initiatives and regularly assessing their effectiveness allows the business to adapt to evolving social
and environmental challenges.
9. Corporate Governance: Strong governance structures embed social responsibility in
organizational policies, procedures, and decision-making processes.
10. Adaptability and Flexibility: Being adaptable to changing societal expectations and flexible in
responding to emerging social issues ensures the business remains relevant and effective in its
social responsibility endeavors.

Utilizing these managerial skills enables businesses to navigate the complexities of social
responsibilities while simultaneously achieving financial objectives and generating long-term
value for society.

1.7. Arguments for Social Responsibilities of Business

1. Ethical Obligation: Businesses bear a moral duty to contribute positively to society, including
tackling social issues and advancing community welfare.
2. Sustainability: Investing in social responsibility can enhance a company's reputation, foster trust
with stakeholders, and contribute to long-term business viability.
3. Risk Management: Demonstrating a commitment to social responsibility can help mitigate risks
such as regulatory scrutiny, damage to reputation, and negative stakeholder reactions.
4. Competitive Edge: Embracing socially responsible practices can differentiate a company from
competitors, attract socially conscious consumers, and bolster market positioning.
 1.8. Arguments against Social Responsibilities of Business:

1. Profit Focus: The primary aim of a business is profit maximization for shareholders, and diverting
resources to social responsibility initiatives may deviate from this objective.
2. Ambiguity and Accountability: Ambiguity often surrounds the specific social responsibilities
businesses should undertake, leading to challenges in accountability and measurement.
3. Resource Constraints: Small or struggling businesses may lack the resources to invest in social
responsibility, prioritizing survival over societal contributions.
4. Role of Government: Some argue that addressing social issues should primarily be the
responsibility of governments and public institutions, rather than businesses.

Considerations for Social Stakeholders:

1. Identification: Identify and prioritize key stakeholders, including employees, customers,

suppliers, local communities, and investors.
2. Engagement: Actively involve stakeholders to understand their needs, concerns, and expectations
regarding social responsibility.
3. Collaboration: Foster collaboration with stakeholders to jointly develop social responsibility
initiatives and ensure alignment with their interests.
4. Feedback Mechanisms: Establish channels for gathering stakeholder input and assessing the
effectiveness of social responsibility efforts.

1.8 .Measuring Social Responsiveness

1. Impact Assessment: Evaluate the concrete and intangible effects of social responsibility
initiatives on stakeholders and society, using metrics like environmental impact, community well-
being, and employee satisfaction.
2. Benchmarking: Compare a company's social responsibility performance against industry
benchmarks, best practices, and competitors to identify areas for improvement.
3. Stakeholder Input: Seek feedback from stakeholders through various means, such as surveys and
interviews, to gauge perceptions of the company's social responsiveness.
4. Transparency Reporting: Provide transparent reports detailing social responsibility initiatives,
progress, and outcomes to foster accountability to stakeholders.

Managerial Ethics:

1. Integrity: Uphold high ethical standards, including honesty, fairness, and transparency, in
managerial decision-making and actions.
2. Accountability: Take responsibility for decisions and actions, particularly those related to social
responsibility and stakeholder welfare.
3. Respect for Stakeholders: Treat all stakeholders with respect, considering their interests, rights,
and well-being in managerial choices.
4. Continuous Learning: Stay informed about evolving ethical issues and best practices in social
responsibility, striving for ongoing improvement in ethical leadership.

In summary, integrating social responsibility into business practices demands careful

consideration of ethical principles, stakeholder engagement, measurement methods, and
managerial ethics to ensure positive societal impact while balancing business objectives.

The concepts of omnipotent and symbolic views of management refer to contrasting perspectives
on the role and responsibilities of management within an organization, particularly concerning
social and ethical aspects:

1.8. Omnipotent View of Management

 Definition: This perspective posits that management has substantial power and control
over the organization's outcomes, including its performance, success, and ethical conduct.
 Social Responsibility: In the omnipotent view, management is seen as the primary
determinant of the organization's social responsibility. It is believed that managers have
the authority and capability to shape the organization's actions and behaviors in alignment
with ethical principles and societal expectations.
 Ethical Responsibilities: Proponents of the omnipotent view argue that managers bear
significant ethical responsibilities, as they have the authority to establish policies, make
 decisions, and enforce standards within the organization. They are expected to uphold high
ethical standards and ensure that the organization operates in a morally sound manner.
 Accountability: Managers are held accountable for the organization's performance and
ethical conduct, as they are perceived to have the power to influence outcomes directly.
They are expected to lead by example and take responsibility for the consequences of their
decisions and actions.

1.9. Symbolic View of Management

 Definition: This perspective suggests that management's influence and control over the
organization's outcomes are limited, and their actions are primarily symbolic or ceremonial
in nature.
 Social Responsibility: In the symbolic view, management's role in shaping the
organization's social responsibility is perceived as relatively minor. While managers may
publicly espouse values of social responsibility, the actual implementation and impact of
these initiatives are seen as symbolic gestures rather than substantive changes.
 Ethical Responsibilities: Critics of the symbolic view argue that it may lead to a lack of
accountability for ethical lapses within the organization. Since management's actions are
perceived as symbolic, there may be disconnect between stated ethical principles and actual
behavior, potentially resulting in ethical misconduct or negligence.
 Accountability: The symbolic view may diminish the accountability of management for
the organization's outcomes, including its social and ethical conduct. Since management's
actions are seen as symbolic rather than influential, they may escape scrutiny or
accountability for any ethical failings within the organization.

In summary, Omnipotent View of Management: The omnipotent perspective asserts that

management wields considerable power over an organization's outcomes, including its
performance and ethical behavior. In this view, managers are perceived as the primary influencers
of the organization's social responsibility and are expected to uphold high ethical standards. They
bear accountability for the organization's actions and are responsible for ensuring its adherence to
ethical principles. Symbolic View of Management: Conversely, the symbolic viewpoint suggests
that management's influence over organizational outcomes is limited, and their actions are more
 symbolic or ceremonial. While managers may publicly endorse social responsibility values, their
actual impact on the organization's behavior is seen as symbolic rather than substantive. This
perspective may diminish managerial accountability for ethical lapses within the organization, as
their actions are perceived as symbolic gestures rather than substantive changes.

1.9. Characteristics and importance of organizational culture,

Characteristics of Organizational Culture:

1. Shared Values and Beliefs: Organizational culture entails common values, beliefs, and norms
that guide employee actions and choices, defining acceptable behaviors.
2. Social Norms and Behavior Patterns: Culture shapes the norms and behaviors of employees,
impacting their interactions, communication styles, and collaborative efforts, both formally and
informally.
3. Work Environment: Organizational culture influences the work environment, dictating
communication dynamics, collaboration levels, autonomy, and risk tolerance, setting the overall
tone and ambiance.
4. Leadership Style: Cultural elements are reflected in leadership styles, as leaders' values and
priorities shape organizational culture, directing decision-making and implementation across the
company.
5. Employee Engagement and Morale: A robust culture fosters employee engagement, satisfaction,
and morale, instilling a sense of identity and belonging, thereby motivating and empowering
employees.
6. Adaptability and Innovation: Culture impacts the organization's adaptability and innovation
capacity, with cultures valuing learning, experimentation, and progress fostering creativity and
adaptiveness.
7. Customer Focus: Culture influences the organization's customer-centricity, driving approaches to
service and satisfaction, emphasizing customer needs, relationship-building, and delivering
exceptional experiences.
 Importance of Organizational Culture:

1. Employee Retention and Recruitment: A positive culture attracts and retains talent, aligning
with candidates' values and commitment, fostering recruitment success and reducing turnover.
2. Performance and Productivity: Culture significantly impacts employee performance and
productivity, with supportive cultures enhancing motivation and output, driving organizational
success.
3. Employee Engagement and Satisfaction: Strong cultures enhance employee engagement,
satisfaction, and morale, cultivating motivation and dedication towards organizational goals.
4. Innovation and Adaptability: Culture shapes innovation and adaptability, with cultures
encouraging experimentation and creativity empowering employees to innovate and adapt to
change.
5. Customer Satisfaction: Culture influences customer satisfaction, guiding service delivery and
relationship-building efforts, enhancing loyalty and reputation.
6. Organizational Identity and Brand Image: Culture shapes organizational identity and brand
image, reinforcing values and mission, bolstering reputation and market competitiveness.
7. Ethical Behavior and Corporate Social Responsibility: Culture fosters ethical behavior and
corporate social responsibility, promoting integrity and transparency, vital for maintaining trust
and credibility.

In essence, organizational culture embodies the shared values, norms, and behaviors that drive
employee engagement, performance, innovation, and ethical conduct, crucial for organizational
success and sustainability.

1.10. Relevance of political, legal, economic and Cultural environments to global business

The political, legal, economic, and cultural environments are pivotal factors that shape the
landscape for global business operations. Here's a breakdown of their relevance:

1. Political Environment:
 Regulatory Landscape: Political stability and regulatory frameworks affect businesses by
dictating policies regarding trade, investment, taxation, and industry regulations.
  Government Stability: Stability in governance is crucial for businesses to plan long-term
investments, as instability or frequent changes in government can lead to uncertainty.
 Trade Relations: The political relationships between nations impact trade agreements,
tariffs, and barriers, influencing the ease of conducting cross-border business.
 Political Risks: Factors like political instability, corruption, and government intervention
pose risks to businesses, influencing investment decisions and operational strategies.
2. Legal Environment:
 Regulatory Compliance: Legal frameworks determine the rules and regulations that
businesses must follow, covering areas like labor laws, intellectual property rights,
environmental regulations, and consumer protection laws.
 Contract Enforcement: The efficiency of legal systems in enforcing contracts and
resolving disputes is crucial for ensuring smooth and fair business transactions.
 Intellectual Property Protection: Strong legal protections for intellectual property rights
are vital for safeguarding inventions, patents, trademarks, and copyrights.
 Legal Risks: Businesses face legal risks such as lawsuits, regulatory fines, and penalties
for non-compliance, impacting financial performance and reputation.
3. Economic Environment:
 Market Dynamics: Economic factors such as GDP growth, inflation rates, and
unemployment levels influence market demand, consumer purchasing power, and business
expansion opportunities.
 Currency Fluctuations: Changes in currency exchange rates affect import and export
costs, foreign exchange risk, and profitability for businesses engaged in international trade.
 Interest Rates and Monetary Policy: Central bank policies, like interest rates and
monetary stimulus measures, influence borrowing costs, investment decisions, and overall
economic stability.
 Global Economic Trends: Economic trends in major markets and regions impact global
business cycles, supply chain dynamics, and investment flows, shaping strategic decisions
for multinational corporations.
4. Cultural Environment:
 Consumer Behavior: Cultural differences influence consumer preferences, impacting
product design, marketing strategies, and distribution channels.
  Business Practices: Cultural norms and values shape negotiation styles, relationship-
building approaches, and business practices, affecting intercultural communication and
collaboration.
 Workforce Diversity: Cultural diversity within the workforce brings varied perspectives
and skills, necessitating strategies for managing cross-cultural teams and promoting
inclusivity.
 Corporate Social Responsibility: Cultural expectations regarding CSR influence
businesses' approaches to sustainability, philanthropy, and ethical practices.

In essence, understanding and navigating these environments effectively are crucial for success in
global business operations, as they influence market entry strategies, operational decisions, risk
management practices, and overall competitiveness in the global marketplace.

1.11. Structures and techniques organizations use as they go international

Organizations employ a variety of structures and techniques as they expand internationally to

manage operations effectively, navigate cultural differences, and seize global opportunities. Here
are some common approaches:

1. Global Functional Structure: This structure organizes departments based on functions (e.g.,
marketing, finance) and operates with centralized decision-making from headquarters. It enables
standardization across regions while facilitating coordination and control.
2. International Division Structure: This approach involves creating a separate division or
subsidiary for international operations. Each division may have its functional departments,
allowing for specialization in global markets while maintaining autonomy and responsiveness to
local needs.
3. Transnational Structure: Combining elements of global and multinational approaches, this
structure integrates global coordination with local responsiveness. It fosters collaboration and
knowledge sharing across regions while adapting to diverse market conditions.
4. Matrix Structure: In this structure, employees report to both functional and project or regional
managers. It allows for flexibility and specialization, enabling cross-functional collaboration and
efficient resource allocation in international projects.
5. Joint Ventures and Strategic Alliances: Organizations form partnerships with local companies
or enter into joint ventures to leverage local knowledge and resources. This approach enables risk
sharing, access to distribution networks, and faster market entry.
6. Franchising: Granting third-party operators the right to use the organization's brand and business
model, franchising allows for rapid expansion with minimal capital investment. It leverages local
expertise and resources.
7. Licensing: Through licensing agreements, organizations grant others the right to produce or
distribute their products in specific regions. This approach provides revenue streams and market
penetration without direct involvement.
8. Exporting and Importing: Organizations begin international expansion by exporting products or
importing materials. It allows for gradual market entry, minimal investment, and risk mitigation.
9. Acquisitions and Mergers: Acquiring or merging with local companies provides immediate
access to established customer bases and distribution channels. It accelerates market entry and
facilitates synergies.