MODULE 1

Nature and Evolution of Management

Management is a process of planning, decision making, organizing, leading, motivation and

controlling the human resources, financial, physical, and information resources of an
organization to reach its goals efficiently and effectively.

Mary Parker Fillet defined management as "the art of getting things done through people".

Importance of Management

1. It helps in Achieving Group Goals - It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It
directs group efforts towards achievement of pre-determined goals. By defining objective of
organization clearly there would be no wastage of time, money and effort. Management
converts disorganized resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.
2. Optimum Utilization of Resources - Management utilizes all the physical & human resources
productively. This leads to efficacy in management. Management provides maximum
utilization of scarce resources by selecting its best possible alternate use in industry from out
of various uses. It makes use of experts, professional and these services leads to use of their
skills, knowledge, and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.
3. Reduces Costs - It gets maximum results through minimum input by proper planning and by
using minimum input & getting maximum output. Management uses physical, human and
financial resources in such a manner which results in best combination. This helps in cost
reduction.
4. Management focuses on efficiency and effectiveness – it gives stress on best equipments,
plants, offices, product, service and human relations.These factors increase effectiveness.
5. Brings order in an organization _ the management arranges all works in systematic manner to
achieve group goals.
6. Meet the challenges of change – management enables the organization to face the change.
Thus the complexities of modern business can be overcome through the management.
7. Determination of objectives – The success of an organization is mainly depending on
identification of its objectives. Effective management enables the enterprise to achieve
desired goals with proper control and planning.
8. Economic growth - Effective management leads to greater and more economic production for
the society.
9. Stability – management co-ordinates all the activities of their different departments in the
organization and establishes team spirit. It ensures the survival of an organization in fast
changing environment.
10. Human development- management improves the personality and caliber of employees with
proper training and control.
Significance of Management:

 Achieving Group Goals: Management encourages collaboration and coordination

amongst workers. A general control must be provided to the organizational and personal
objectives in order to favorably accomplish the aims.
 Increases Efficiency: Management improves productivity by managing resources in a
reliable conceivable way in order to decrease cost upscale potency.
 Creates Dynamic organization: Management undertakes the conditions by assuring that
these variations are well accepted privately and that objection to change is controlled.
 Achieving personal objectives: Management promotes leadership and furnishes
motivation to the employees to operate effectively in order to accomplish their personal
aims while working towards the organizational goals.
 Development of Society: Management helps in the enhancement of community by
manufacturing reliable quality commodities, establishing employment chances and
fostering innovative technologies.

Features of Management:
Post-learning a few definitions of management we come across some elements that can be
referred to as basic aspects of management:

 Management is a goal-oriented method: An establishment has a predefined set of

fundamental goals which are the primary basis for its being. These must be easy and
explicitly mentioned. Different establishments have various goals. For instance, the aim
of a retail market may be to improve sales, but the purpose of The Spastics Society of
India is to allow education to children with specific requirements. Management
strengthens the energies of different individuals in the company towards accomplishing
these goals.
 Management is all common: The activities associated with managing a firm are familiar
to all companies whether financial, cultural or civic. A petrol pump must be regulated as
much as a school or a hospital. What managers do in India, Japan, Germany, or the USA
is identical. How they achieve it may be considerably diverse. This variation is due to the
distinctions in tradition, history and culture.
 Management is a perpetual process: The method of management is a set of
consecutive, composite, but distinct purposes (organizing, planning, staffing, controlling
and directing). These operations are concurrently executed by all managers. The
responsibility of a manager comprises a continuous series of duties.
 Management is intangible energy: It is an intangible strength that can’t be seen but its
proximity can be felt in the form of the business operations. The outcome of management
is remarkable in an industry where targets are reached according to procedures,
employees are comfortable and content and there are arrangements rather than confusion.
 Management is a group activity: It implies that it is not a single person who completes
all the actions of the industry but it is always a group of people. Therefore, management
is a group Endeavour.
Effective management refers to the extent to which managers achieve their targets with the
assistance of organizational resources.

Managerial effectiveness consists of the following elements:

1. Manager:
Manager is the key pin of a successful organization. Well-defined objectives and strategies are
required to effectively transform inputs into outputs. Managerial effectiveness is governed by
managerial skills, competence, intelligence, knowledge, sincerity and creativity. It is judged by
not what the managers do but by how well they do. Effective managers enable the business to
grow in the dynamic environment.

2. Organization:
Managerial effectiveness is also judged by the organization itself. Highly innovative and creative
managers may not perform well if the organization structure does not permit them to do so. The
structure, value system, design, culture, size and the work environment largely determine the
way managers manage the organization. A highly bureaucratic and formal organization structure
may not have committed and effective managers.

3. Entrepreneurship:
Success cannot be ensured unless managers have the quality of entrepreneurship. Managerial
effectiveness ensures that business in future is different from business today. It requires hard
work, intelligence, creativity and innovativeness to keep the business successful in future.

4. Environment:
Business operates in the dynamic and turbulent environment with ever changing factors
(economic, political, legal, social etc.). Managers adapt the organizations according to demands
of the environment. Successful and effective managers not only respond to environment; they
also influence the environment and become market leaders in the industry.

Managerial effectiveness is not an end. It is a means to the end, that is, efficient attainment of
organizational goals. In order to accomplish the tasks effectively, managerial effectiveness deals
with managerial jobs, skills of managers and the organization as a whole.

Need of effective management

1. Effectiveness and Efficiency

Effectiveness is related to how well a resource has worked and brought returns for the
organization. And efficiency is the relationship between costs and returns. A higher efficiency
 means more return and less costs for the business. Management is held responsible for all these
matters like efficiency and effectiveness of the organization.
2. Development of employees: It is a crucial role of effective management. Managers train them
for their best result.
3. Gaining the edge over competing firms: An effective manager use his skill to direct his
subordinates under him. It helps to gain the edge over competing firms

4. Achieving the objectives of the organization: By defining objective of organization clearly

there would be no wastage of time, money and effort. Management converts disorganized
resources of men, machines, money etc. into useful enterprise. These resources are coordinated,
directed and controlled in such a manner that enterprise work towards attainment of goals.

Styles of an effective manager

1. Empowerment style
It is a style of management that puts managers in the role of a coachman advisor or facilitator. It
refers to delegating the decision making authority regarding an action to be taken on a task that is
considered to be important both to the manager and employee.

There are four main characteristics that can be attributed to the employee when they feel that
they are empowered:

1. An employee who feels empowered will feel that their personal work is important to the
organization.
2. An employee who feels empowered will be better able to perform tasks successfully.
3. An employee who feels empowered will be free to choose how to begin and end tasks that they
have been given.
4. The personal behavior of an empowered employee will contribute to important outcomes
within the organization.

2. Participating leadership style

A participating leadership style is a low task behavior, high relationship behavior approach to
leadership that helps followers solve problems. The style is anchored by the leader’s ability to
actively listen and collaboratively engage. A leader who employs this style of leadership helps an
individual to determine the next steps and is sharing the decision-making process.

In general terms, a participating leadership style helps followers who have demonstrated the skill
to effectively complete a task but who are struggling with either confidence or
commitment/motivation to perform at a sustained and acceptable standard.

The leader:

 Encourages input
 Actively listens
  Supports risk-taking
 Recognizes the individual’s skills

3. Guidance style

A blend of the task-oriented and people-oriented leadership styles is known as

democratic or participative leadership. The leader provides guidance and direction, but
also encourages feedback from employees and takes their opinions into account (although
he or she makes the final decisions).

Management skills

1. Interpersonal skills: Management jobs are all about people, and being able to build
successful relationships is integral. To lead a team you'll need to earn the respect of your
colleagues. To do this, you need to know how to effectively deal with people.
Setting time aside to get to know team members on both a personal and professional level,
through social activities or team-building training, while still maintaining professional
boundaries, will go a long way to earning their respect.
2. Technical Skills: Technical skills involve skills that give the managers the ability and the
knowledge to use a variety of techniques to achieve their objectives. These skills not only
involve operating machines and software, production tools, and pieces of equipment but also the
skills needed to boost sales, design different types of products and services, and market the
services and the products.

3. Conceptual Skills: These involve the skills managers present in terms of the knowledge and
ability for abstract thinking and formulating ideas. The manager is able to see an entire concept,
analyze and diagnose a problem, and find creative solutions. This helps the manager to
effectively predict hurdles their department or the business as a whole may face.

4. Diagnostic skills: refer to an individual's ability to identify a particular problem and define it.
These skills are acquired through formal training, practice, and experimentation. See Human
resource issues and advanced manufacturing technology.

5. Political skill is defined as: “The ability to effectively understand others at work and to use
such knowledge to influence others to act in ways that enhance one's personal and/or
organizational objectives”

Mint berg’s Management Roles

1. Interpersonal Category

The managerial roles in this category involve providing information and ideas.
Figurehead – As a manager, you have social, ceremonial and legal responsibilities. You're
expected to be a source of inspiration. People look up to you as a person with authority, and as a
figurehead.

Leader – This is where you provide leadership for your team, your department or perhaps your
entire organization; and it's where you manage the performance and responsibilities of everyone
in the group.

Liaison – Managers must communicate with internal and external contacts. You need to be able
to network effectively on behalf of your organization.

2. Informational Category

The managerial roles in this category involve processing information.

Monitor – In this role, you regularly seek out information related to your organization and
industry, looking for relevant changes in the environment. You also monitor your team, in terms
of both their productivity, and their well-being.

Disseminator – This is where you communicate potentially useful information to your

colleagues and your team.

Spokesperson – Managers represent and speak for their organization. In this role, you're
responsible for transmitting information about your organization and its goals to the people
outside it.

3. Decisional Category

The managerial roles in this category involve using information.

Entrepreneur – As a manager, you create and control change within the organization. This
means solving problems, generating new ideas, and implementing them.

Disturbance Handler – When an organization or team hits an unexpected roadblock, it's the
manager who must take charge. You also need to help mediate disputes within it.

Resource Allocator – You'll also need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning staff and other organizational
resources.

Negotiator – You may be needed to take part in, and direct, important negotiations within your
team, department, or organization.