Introduction to Management

Chapter: 1
 Concept of Management
Management refers to the process of planning, organizing, leading, and controlling resources to achieve
organizational goals effectively and efficiently.

“Management is the process of planning, organizing, leading, and controlling an organization's resources to
achieve its goals."
- James A.F. Stoner
 Characteristics of Management (Nature/Essence)
1. Management achieves goals
➢ Ensures organizational objectives are met efficiently and effectively.
2. Management gets the job done
➢ Focuses on task completion and achieving desired outcomes.
3. Management attains efficiency and effectiveness
➢ Balances optimal resource use with achieving high-quality results.
4. Management works with and through people
➢ Engages and coordinates individuals to accomplish objectives.
5. Management is a process
➢ Involves planning, organizing, leading, and controlling activities systematically.
6. Management has environment
➢ Operates within internal and external factors influencing decision-making and performance.
 Functions of Management
The functions of management are the core activities that managers perform to ensure the
effective and efficient operation of an organization. These functions are often described in
a cycle and can overlap, but they can be broken down into five key areas:

1. Planning 📋

● Planning is all about setting goals, figuring out how to reach them, and anticipating what's
coming next. It helps you focus your efforts, decide what resources you need, and
prioritize what's important.
● Planning is the first step to make sure everything runs smoothly.
● Example: A marketing manager plans a campaign by setting sales targets, figuring out
promotions, and deciding on the budget. 💡💰
2. Organizing 🗂

● Organizing is about getting things (people, tasks, resources) in order to make the plan happen.
● It's all about assigning roles, making sure everyone has what they need, and ensuring everything
is in the right place.
● Example: A manager organizes their team by assigning roles, making sure they have the tools
and training, and setting clear reporting structures. 📋👥

3. Leading 🚀

● Leading is motivating and guiding your team to hit those goals.

● It’s about inspiring people, making decisions, and creating a positive environment for everyone to
thrive.
● Example: A team leader motivates their group to hit targets by offering support, providing
feedback, and celebrating wins! 💪🎉
4. Controlling 🔍

● Controlling is about checking if everything is going according to plan and making adjustments if
needed.
● It helps you stay on track and improve where things aren’t working as expected.
● Example: A manager compares monthly sales with targets and tweaks the strategy or provides
extra training if necessary. 📊✏

5. Coordinating 🤝

● Coordinating is making sure all parts of the organization are working together.
● It’s about helping teams collaborate, communicate, and align towards the same goals.
● Example: A project manager ensures that the marketing, finance, and design teams are all on
the same page for a product launch. 🗣📅
TYPES OF MANAGERS
a. On the basis of levels of management:

1. Top level managers

❏ Responsible for overall strategic direction, decision-making, and long-term planning of the
organization.
❏ Include CEOs, Presidents, and Executives.
2. Middle level Managers
❏ Act as a bridge between top and lower management, implementing policies, supervising
departments, and ensuring smooth operations.
❏ Examples include department heads and regional managers.
3. Lower level Managers
❏ Directly oversee day-to-day activities, supervise employees, and ensure tasks are
completed efficiently.
❏ They include supervisors, team leaders, and foremen.
b. On the basis of nature or area of managerial job:

1. Generalist Manager
❏ Handles all managerial functions as needed, without specialization.
❏ Oversee overall organizational activities and can be transferred between organizations.
❏ Role carries high responsibility.
❏ Examples: CEO, President, Vice President, General Manager, Deputy General Manager.
❏ In Nepal’s Civil Service, Joint Secretary and Secretary are generalist managers,
transferable across ministries.
2. Functional Manager
❏ Specialize in areas like production, marketing, or finance.
❏ Role: Oversee departmental functions as per job description.
❏ Authority & Responsibility: Defined in job roles.
❏ Examples: Department heads in organizations.
❏ Nepal’s Civil Service: Officers up to under-secretary level are functional managers.
b. On the basis of nature or area of managerial job:

3. Staff Manager
❏ Serve as experts and advisors to generalist and functional managers.
❏ No decision-making authority: Provide guidance but are not part of the chain of command.
❏ Examples: Legal advisors, external auditors, and management consultants.
❏ In Nepal: Prime Minister’s advisors (e.g., legal advisor) are staff managers.
Managerial Roles
1. Interpersonal Roles: These roles focus on building and maintaining relationships. They involve both
formal and informal interactions with employees and the general public. The key interpersonal roles
include:
● Figurehead Role: Managers act as representatives of the organization by performing ceremonial
and symbolic duties, such as welcoming visitors, distributing gifts, and attending formal events.
● Leader Role: This role is crucial for ensuring discipline and efficiency within the team. It involves
directing, motivating, and managing employees to enhance productivity.
● Liaison Role: Managers serve as a link between their organization and external entities. In this
role, they handle public relations and facilitate communication between different organizational
units and external stakeholders.
2. Information Role: This role involves gathering, collecting, and sharing information. It includes three main
roles:

● Monitoring Role: This involves gathering important information for the organization through
environmental scanning. It helps the manager stay informed about developments, changes,
opportunities, and problems that could impact the organization.
● Disseminator Role: This role involves sharing information within the organization, whether written,
spoken, formal, or informal.
● Spokesperson Role: This role focuses on sharing information outside the organization, where the
manager represents the company’s views and answers external queries.

3. Decisional Role: Decisional role is concerned with choosing the best alternative among the

alternatives to solve organizational problems.

● Entrepreneur Role: The Entrepreneur Role involves taking risks and experimenting with new ideas.
Managers identify opportunities and implement changes to improve the organization.
● Disturbance Handler role: The role requires managers to take corrective actions when unexpected

problems arise, such as strikes, natural disasters, or disputes. They handle crises and resolve conflicts.

● Resource Allocator Role: The role focuses on distributing the organization’s resources, including

money, people, time, and equipment. Managers decide how resources should be assigned to meet the
organization's needs.

● Negotiator Role: It involves bargaining to settle disputes both within and outside the organization, such

as negotiating trade union contracts.

Managerial Skills

Skill is the ability or proficiency to perform a particular task.

1. Technical Skills:
● The ability to use equipment, techniques, or procedures related to a specific job.
● Importance: Mainly required for lower-level managers.
● Purpose: Helps managers understand and perform specific tasks assigned to subordinates.
● Examples: Computer skills, Accounting skills, Quality control skills
● Usage: Essential for supervising and guiding subordinates effectively.

2. Human Skills:
● Refers to the ability to work effectively with employees.
● Involves understanding, motivating, and collaborating with subordinates.
 ● Key examples include:
❏ Communication skills – Expressing ideas clearly.
❏ Negotiation skills – Reaching agreements.
❏ Leadership skills – Guiding and inspiring teams.
❏ Motivation skills – Encouraging employee performance.
❏ Conflict management skills – Resolving disputes effectively.
● Equally important for managers at all levels.
3. Conceptual Skills:

● Conceptual skill is the mental ability to analyze and solve complex problems.
● It involves understanding the organization as a whole and how different parts impact it.
● Helps in analyzing the environment and setting strategies.
● Requires the ability to organize information and assess relationships.
● Mostly essential for top-level managers.
Organization and Management (Management for Organization)

No matter the size or type of organization, it cannot achieve its goals without good management. Here’s how
management and organization are connected:

❏ Using Resources Wisely – Management helps in getting and using resources like money, people, and
materials effectively.
❏ Adapting to Changes – Organizations face changes in the environment, and management helps them
adjust smoothly.
❏ Fulfilling Social Responsibility – Businesses have duties toward society, and management ensures
they meet them.
❏ Keeping Things in Control – Good management ensures everything runs as planned and stays on
track.
❏ Reaching Goals – Management guides the organization to achieve its objectives successfully.
❏ Making Smart Decisions – Managers analyze situations and make the best choices for the
organization.
Changing Perspective of Organization:
The concept of organizations has evolved significantly in recent years. Traditionally, organizations were viewed as
closed systems operating in stable environments. However, modern perspectives recognize organizations as complex
entities functioning in highly dynamic and uncertain environments. The following are key perspectives on
organizations:

1. Mechanistic Perspective (Traditional View)

● Views organizations as machines operating in a stable and predictable environment.

● Focuses on efficiency through specialization and standardization of work.
● Emphasizes a tall organizational structure with a formal hierarchy.
● Believes in a single "best way" to perform tasks and solve problems.
● Developed by theorists such as F.W. Taylor and Henry Fayol.

Example: McDonald's follows a mechanistic structure with standardized processes, strict hierarchies, and
well-defined roles. Employees follow set procedures for food preparation, ensuring efficiency and consistency across
all locations.
2. Organic Perspective (Modern View)

● Emphasizes the social and psychological aspects of employees in the workplace.

● Encourages motivation through understanding human interactions.
● Advocates job redesign to empower workers.
● Promotes a lean, flat, and less hierarchical organizational structure.
● Focuses on effective human resource management practices.

Example: Google encourages creativity and innovation by focusing on employee motivation, collaboration, and
flexible work structures. It offers open workspaces, job rotation, and employee-driven projects to empower workers.

3. Systems Perspective

● Views an organization as an interconnected system with various interacting components.

● Identifies five key elements: input, process, output, feedback, and environment.
● Recognizes organizations as open systems that must interact with external forces.
● Highlights the importance of synergy and interrelated subsystems.
● Incorporates a feedback mechanism for continuous improvement.
Example: Amazon operates as a system where various departments (supply chain, IT, customer service) work
together. Inputs (raw materials, customer data) go through processes (warehousing, logistics) to produce outputs
(delivered products), with constant feedback for improvement.

4. Cultural Perspective

● Emphasizes the role of shared values, norms, and behaviors in shaping organizational culture.
● Focuses on aligning management and employees toward a common purpose.
● Supports employee autonomy to enhance productivity.
● Encourages open, two-way communication.
● Advocates for performance-based reward systems.

Example: Netflix has a strong corporate culture centered on freedom and responsibility. It values innovation,
employee autonomy, and transparent communication, shaping a work environment that prioritizes creativity and
performance.
5. Learning Perspective

● Views organizations as continuous learning systems.

● Encourages sharing of knowledge and experiences to improve productivity.
● Promotes regular environmental analysis for competitive advantage.
● Supports flexible organizational structures and teamwork.
● Emphasizes knowledge management as a key organizational asset.

Example: Tesla continuously learns and adapts by researching and developing new technologies, such as self-driving cars and
battery innovations. Employees share knowledge and collaborate on projects to maintain a competitive edge.

6. Global Perspective

● Sees organizations as boundary-less entities operating across multiple countries.

● Encourages the free flow of resources, including goods, capital, technology, and information.
● Promotes standardized technology and processes to enhance efficiency.
● Focuses on building a strong global image and presence.

Example: Apple operates globally by designing products in the U.S., manufacturing in China, and selling worldwide. It promotes free
trade, standardized technology, and a strong global brand presence.