MS 731 2022 (Prin of Man)
MS 731 2022 (Prin of Man)
MS 731 2022 (Prin of Man)
MSC 731
Unit 1
Prof M Roy
Definition
• Management: Art of directing human activities.
• Process of planning, organizing, leading, and
controlling people and their efforts for
achievement of certain goals.
• Process of achieving organizational objectives
effectively through other people by utilizing
limited resources efficiently in an ever-changing
environment
• Management is related to people, resources,
goal, challenges and changing environment.
• Central to this process is an effective efficient
use of limited resources.
• Effectiveness deals with the achievement of
objectives
• Efficiency is achievement of ends with least
amount of resources
Levels of management
• Top management, middle management and
lower (operating) management.
• Focus:
• Top management more on planning ,strategic
decisions and goals that affect the entire
organization.
• Middle management translates broad and
general strategies , policies into specific goals
and organize the work of first-line managers.
• Lower management involved more on training
and developing workers and take short term
decisions
Management functions
• Henri Fayol proposed five functions : planning,
organizing, commanding, coordinating and
controlling.
• Key functions: planning, organizing, leading
and motivating, controlling
Planning
• Planning: involves advance decisions related to what,
why, when, how and who.
• Involves :
• Study of environment around the organization
• Specifications of goals and strategies for achieving
these goals.
• Framework of policies, procedures and anticipated
course of action
• Revision of plans and adjustments in changed situations
Organizing
• Includes the process of translating the
required activities of plans into a structure of
task, authority and responsibility to carry out
the management’s plans and meet the
organizational goals.
• It consists in determining what tasks are to be
done, who is to be done, how the tasks are to
be grouped, who reports to whom, and where
decisions are to be made.
• Subfunctions:
• Defining the nature content of each job in the
organization
• Setting the base for grouping the jobs
together
• Delegating authority to assigned managers.
Directing and motivating
• Stimulate the organizations to undertake actions
along plan and channelize the organizational
behaviour for attainment of goals . It involves:
• Communicate and explain the objectives to the
subordinates
• Assign the performance standards
• Help and guide subordinates to meet the
standards of performance.
• Praise and reward for better performance
• Management of change through proper
communication and build confidence among
different layers of management
• Coordinate the entire process,
Controlling
• Process of monitoring performance against
goal, determine the causes of deviation from
goals and take corrective actions for
improvement. It involves:
• Set standards of performance,
• Measure the gaps in standard and attained
performance.
• Corrective actions to bridge the gap.
Management Roles
• Role : organise, supervise and control people
to get productive outcome and help
organizations to achieve goals.
• Henry Mintzberg (1973) identified three basic
roles for managers : inter-personal,
informational and decisional role.
Interpersonal role:
• Challenges:
• Globalization and intense competition,
• Technological change and innovation,
• Demographic change
• Ethical awakening and social responsiveness
• Global warming and environmental degradation
• Restructuring and transforming of organization
• Internal and emergence of e-business
Peter F. Drucker
• Peter F. Drucker: Change, innovation and global
managers
• New concepts: Management by objective (MBO),
Knowledge worker, Innovation and entrepreneurship.
• Drucker(1993) : Change: Shift to knowledge and
knowledge society .The shift from knowledge to
‘knowledges’ has given knowledge the power to
create a new society--- “Post-Capitalist Society”
written by Drucker
• In the book‘ The practice of Management’ (1954):
Drucker noted that capitalism was indeed taking a
positive turn from a system based on selfishness and
greed to operating on the positive principle of public
good.
• In 1986, it is observed that production in the
manufacturing sector was increasing while total
employment was dramatically decreasing between
1973 and 1985.
Change: Shift to knowledge and knowledge
society
• In his book ‘Post-Capitalist Society’ he clarified this shift
from capitalism to knowledge society acknowledging that
knowledge was fast becoming the sole factor of production.
• He clearly defined the role of managers, invented the
modern concept of management, and conceptualised MBO
and knowledge management.
• He coined the term ‘knowledge worker and later regarded
knowledge work productivity.
• He was against excessive professionalisation and isolation
of managers from society
Ethics and social responsibility
• In the book ‘Management : Tasks,
Responsibilities ,Practices (1973) :role of
management is viewed as a distinct function
characterised by a degree of responsibility.
• He regards business corporation as a human
organization, a social organization and a community
and micro-society of the larger macro-society, in
addition to being an economic entity.
• His management philosophy was based on a
communitarian philosophy
• He advocated that managers’ work has a far-
reaching impact on the development and well-
being of the people who work in corporation and
a company’s action has an impact on the society.
• He integrated the professional responsibility of
managers with their duty to act as integrity,
exercise sound judgement and act with
courage.
• As a representative of social institution, the business
enterprise is successful when it simultaneously
conducts business in ways that do not undermine
social beliefs and harmony.
Business Environment
• Each organization part of Business Environment, classified into
two categories, i.e., microenvironment and macroenvironment
• Microenvironment: collection of forces that are close to a firm
• Its elements are competitors, organization itself, Suppliers.
Market, Intermediaries, and customers(COSMIC), which are
controllable to some extent.
• Macroenvironment: It is the general environment within an
economy.
• Elements constitutes those outside forces which are not under
the control of a firm
• Study of Macro environment is known as PESTLE analysis.
• PESTLE analysis studies key external factors (Political,Economic,
Socio-cultural, Technological, Legal and Environmental which
guide an organization in strategic decision making
• Political factors are those driven by Govt. actions and policies
like corporate taxation, other fiscal policy initiatives
• Economic factors relate to the broader economy like interest
rate, employment rate, inflation, exchange rates etc.
• Social factors include demographic factors, consumer beliefs,
attitudes
• Technological factors include automation, technological
infrastructure, cyber security etc.
• Environmental factors consider carbon
footprint, climate change impact, stewardship
of natural resources etc.
• Legal factors basically emerge from changes in
regulatory environment that includes industry
regulation, consumer and employment
protection laws, Protection of intellectual
property rights, licenses and permits required
to operate
• PESTLE analysis helps the organization to make
specific choices when planning the company’s
future, from how the brand should be
presented to development of new product
• Business professionals often use strategic
frameworks as SWOT analysis or Porter’s five
forces analysis
SWOT analysis
• SWOT analysis is a strategic evaluation framework used
to measure strength, weaknesses, opportunities and
threats.
• It is an important tool to scan the environment, both
internal and external
• It is used as an instrument to analyze organization’s
financial health and competitive advantages or
disadvantages
• Internal resources gives the strength
• External factors give threat as well as gives opportunities
• Internal environment: Strengths &Weaknesses
• External Environment: Opportunities & Threats
• Useful in formulating strategy to take
advantage of opportunities, such as growing
markets from new internet users
• Helps to minimize the effects of threats or
anticipated threats
• SWOT matrix has now changed to TWOS, where the
organization converts threats into opportunities.
• There are four strategies : S-O, S-T,W-O, W-T
• An organization wants to expand its market by lowering price
or other promotional package by employing reach channel of
social media, it is called S-O strategy.
• An organization wants to expand its market, but it is lagging far
behind the modern technology compared to a foreign firm. By
collaborating with foreign firm it aims to achieve its target to
raise its market , then it is W-O strategy.
Opportunities(O) Threats (T)
Bargaining Bargaining
power of power of
sellers buyers
Threat of Intensity of
substitutes Rivalry
Strategy