MANAGEMEN

MANAGEMENT
Itis the function that
coordinates the efforts of people
to accomplish goals
andobjectivesusing available
resources efficiently and
effectively.

Example:

Starting a supermarket with an

initial budget of Rupees 2 crore.

Resources required:
Goods

to sell.

Worker

 Building/

Capital

rented space.

Management in this case is the

distinct process of planning,
organizing, actuating and
controlling a group a people i.e
the workers and the available
resources to obtain the predetermined objective. i.e profit.

DEFINITIONS OF
MANAGEMENT

VARIOUS DEFINITIONS FOR MANAGEMENT

HAVE BEEN PUT FORWARD BY DIFFERENT
AUTHORS.

A FEW OF THEM ARE:

Other defitions:

It is the art of getting things done

through people.

Mary Parker

To manage is to forecast, to plan, to

organize, to command, to coordinate
and to control.
-

Henry Fayol

 Management

is the art and

science of decision making and
leadership.
-

Donald J

Cough
Management

is a multipurpose
organ that manages a business
and manages managers and
manages workers and work.

Ten Roles Of A Manager(by

MINTZBERG)
Monitor
Disseminator
Spokesperson
Figurehead
Leader
Liaison
Entrepreneur
Disturbance handler
Resource allocator
Negotiator

LEVELS OF
MANAGEMENT

TOP LEVEL
MIDDLE
LEVEL
LOW LEVEL

Three Levels of
Management :
Generally, there are Three Levels of
Management, viz.,
1. Administrative or Top Levelof
Management.
2. Executive or Middle Levelof
Management.
3. Supervisory or Lower Levelof
Management.
At each level, individual manager has to

MANAGEMENT HIERARCHY

TOP LEVEL MANAGEMENT IS RESPONSIBLE

FOR CONTROLLONG AND OVERSEEING THE
ENTIRE ORGANISATION

MIDDLE LEVEL MANAGEMENT IS

RESPONSIBLE FOR EXECUTING POLICIES
WHICH COMPLY WITH THE COMPANYS
POLICIES

LOW LEVEL MANAGERS CONTROL THE JOB

AND GET IT DONE

TOP LEVEL DECIDES THE TRAJECTORY THAT

THE COMPANY TAKES

MIDDLE LEVEL MANAGEMENT

INTERMEDIATES BETWEEN TOP LEVEL AND
LOW LEVEL

LOW LEVEL MANAGERS ACT AS ROLE

MODEL FOR THE WORKERS

TOP LEVEL MANAGEMENT

THEY CONSIST OF BOARD OF DIRECTORS,

GENERAL MANAGERS, CEOs etc

THEY MAKE STRATEGIES, COMPANY

POLICIES AND ASSESS THE COMPANY
PERFORMANCE

THEY HAVE THE FINAL SAY IN THE

FINANCIAL, MARKETING AND THE HUMAN
RESOURCE ASPECTS OF THE COMPANY.

TOP LEVEL MANAGERS POSSESS MORE

CONCEPTUAL SKILLS THAN TECHNICAL
SKILLS.

THEY ARE THE MOST RESPONSIBLE LEVEL

OF AN ORGANISATION.

THEY ARE ANSWERABLE TO THE

SHAREHOLDERS AND THE GENERAL PUBLIC

MIDDLE LEVEL
MANAGEMENT

THEY ARE AT THE CENTRE OF THE

HIERARCHY OF THE ORGANISATION

THEY PROVIDE MOTIVATION TO THE LOW

LEVEL MANAGERS AND THE WORKERS

THEY HELP CHANNELISE THEIR OBJECTIVE

TO A COMMON GOAL

THEY EXECUTE THE ORGANISATIONAL PLANS IN COMPLIANCE

WITH THE DECISIONS TAKEN BY THE TOP LEVEL

THEY HELP TO PENETRATE INFORMATION FROM THE TOP

LEVEL TO THE LOW LEVEL

THEY ALSO COMMUNICATE UPWARDS BY SENDING

FEEDBACKS TO THE TOP LEVEL FROM THE WORKERS.

THEY DEVOTE MORE TIME TO ORGANISATIONAL AND

DIRECTIONAL WORKS

 TOP LEVEL
MANAGERS
CEOS, MANAGING
DIRECTORS ,
CHAIRMAN,
STAKEHOLDERS etc

MIDDLE LEVEL
MANAGERS

LIAISON OFFICERS,
SALES MANAGERS,
MARKETING
MANAGERS ctc

 Low-level managers focus on

controlling and directing. They serve
as role models for the employees they
supervise.
Examples of low-level managers
include supervisors, section
leads, and foremen.

Functionsof Lower Level

Management:
The various functions of supervisor are
as follows:
1)To issue orders and instructions to the
workers and to supervise and control
their work
2)To plan the activities of his section
3)To classify and assign jobs to the
workers
4)To direct and guide the workers about
work procedure

5)To arrange for the necessary tools,

equipment, materials etc., for the
workers
6)To arrange for providing on the-job
training to the workers
7)To look after the proper maintenance
of tools, machinery etc
8)To solve the problems of workers
9)To inform the management about the
problems of workers which are not
solved at this level.

10)To advise middle management

about the working environment and to
act asliaisonbetween the middle
management and the rank and file
workers
11)To maintain discipline among the
workers and to develop in them the
rightapproachto work.
12)To maintain good human relations.
13)To build a high group morale among
the workers.

14) Low-level managers are role models

for employees. These managers also
provide:
Basic supervision;
Motivation;
Career planning;
Performance
feedback; and
Staff supervision.

MANAGERIAL SKILLS

Conceptual

Interpersona
l

Technical

Thinking

Coordinating

Directing

Planning

Communicating

Controlling

Deciding

Creating
morale

Conceptual Skills
Conceptual skills revolve around generating
ideas through creative intuitions and a
comprehensive understanding of a given
context.
Conceptual skills-"helicopter mind"
meaning that one is able to rise above a
problem and see it in context.

It includes recognizing how the various

units of the organization depend on one
another and how changes in any one part
affect all the others.
Also include the communicative capacity
to discuss and debate in pursuit of a good
strategy.
These skills are mainly required by top
level managers; CEO, COO, President, Vice
President, etc.

Interpersonal Skills
Human relations skills.
It is a priority for all levels of
management.
It is a managers ability to work effectively
as a team member and to build
cooperative effort in the unit.
Leadership, liaison, figurehead.
Middle level synchronizes top and lower
levels of management.

It is also known as Soft skills.

Multiculturalism-the ability to work
effectively and conduct business with
people from different cultures.
Human skills are used to communicate,
motivate, lead, and inspire enthusiasm
and trust.

Technical skills

Technical skill involves an understanding of

and proficiency in a specific activity that
involves methods, processes, procedures, or
techniques.
Technical skill is a priority for middle level
management.
Also referred to as Hard skills
It includes the ability to:
Prepare budget
Prepare a spreadsheet
Developing a marketing campaign

ADMINISTRATION

 The

process or activity of running a

business or an organization .It also
deals with public affairs, government
interests..
It is mainly concerned with laying
down the objectives ofthe enterprise
, formulating its policies ,
determining the broad organization
structure , and overall control ofthe
undertaking.

Administration comprises a group of

individuals who are in charge of creating
and enforcing rules and regulations, or
those in leadership positions who complete
important tasks. The individuals maybe
owners who invest in and receive profits
from the enterprise.
Its a top level function that jots down goals
and objectives of the enterprise.
Administration is also responsible for
providing direction, guidance and
leadership to the activities of the enterprise

 Administration

is popular with the

government, military, educational,
and religious organizations. Its
decisions are influenced by public
opinion, government policies, social,
and religious factors.
Designations include- chairperson,
commissioner, chancellor etc.
Functions of Administration include:
Planning, Organizing, Staffing ,
Directing, Controlling, Budgeting

ORGANIZATION

Organizing involves the grouping of

activities necessary to accomplish goals
and plans, the assignment of these
activities to appropriate departments and
the provision for authority delegation and
co-ordination.
It is the process of identifying and
grouping the work to be performed,
defining and delegating responsibility and
authority, and establishment of
relationships for enabling the people to
work most efficiently together in
accomplishing objectives .

STEPS IN ORGANIZATION
Determination

of objectives.
Division of objectives and
appointing individuals or task
forces to each.
Developing relationships
between the various divisions.
Co-ordination of their activities.

FORMAL ORGANIZATION
It is a fixed set of rules of intraorganizationproceduresand
structures.
Clear-cut written out rules.
Brings limitation on the activities of
the individual.
Strictly followed in some societies;
empty formalism in others.

INFORMAL ORGANIZATION
It is the interlocking social structure
that governs how people work
together in practice.
Constantly evolving , dynamic and
responsive.
Treats people as individuals and
excellent at motivation.

MANAGEMENT VS
ADMINISTRATION

Art of getting things done through

others by directing their efforts
towards achievement of predetermined goals.

Executing function, doing function

Decisions within the framework

set by the administration.

Middle level activity

MANAGEMENT

Formulation of broad
objectives, plans & policies.

Decision-making function,
thinking function

Major decisions of an
enterprise as a whole.

Top level authority

ADMINISTRATION

MANAGEMENT

ADMINISTRATION

Group of managerial
personnel who use their
specialized knowledge to
fulfill the objectives of an
enterprise
Used in business enterprises.

Decisions are influenced by

the values, opinions, beliefs
and decisions of the
managers.
Motivating and controlling
Handles the employees.

Consists of owners who

invest capital in and
receive profits from an
enterprise.
Popular with government,
military, educational, and
religious organizations.
Influenced by public
opinion, government
policies, customs etc.
Planning and organising
Handles the business
aspects such as finance.

Characteristics of
Management

1. Management is goal oriented

process:

Management always aims at achieving

the organisational objectives.

2. Management is pervasive:

Management is a universal phenomenon.

The use of management is not restricted to
business firms only it is applicable in profitmaking, non-profit-making, business or nonbusiness organisations; even a hospital,
school, club and house has to be managed
properly.

3. Management is Multidimensional:
Management does not mean one single
activity but it includes three main activities:
i. Management of work
ii. Management of people
iii. Management of operations

(i) Management of work:

All organisations are set up to perform some

task or goal. Management activities aim at
achieving goals or tasks to be
accomplished.

(ii) Management of people:

People refer to Human resources and

Human resources are the most important
assets of an organisation.

(iii) Management of operations:

Management of operations concentrates on

mixing management of work with
management of people, i.e., deciding what
work has to be done, how it has to be done
and who will do it.

4. Management is a continuous
process:
Management is a continuous or never
ending function. All the functions of
management are performed continuously.
Managers perform ongoing series of
functions continuously in the organisation.

5. Management is a group activity:

Management always refers to a group of

people involved in managerial activities.
The management functions cannot be
performed in isolation.

6. Management is a dynamic
function:
Management is a dynamic activity as it has
to adjust itself to the regularly changing
environment. It can be rightly said that
nothing is eternal in management.
The external environment such as social,
economical, technical and political
environment has great influence over the
management.

7. Management is
intangible:
Management function cannot be physically
seen but its presence can be felt. The
presence of management can be felt by
seeing the orderliness and coordination in
the working environment.

8. Balancing effectiveness and efficiency:

Effectiveness means achieving targets and

objectives on time. Efficiency refers to
optimum or best utilisation of resources.
Managements always try to balance both
and get the work done successfully.