Nature and Functions of Management

(Lecture-1)
 Management
 ‘Manage’ ‘Men’ ‘T’- ‘T’ stands for tactfully
 Traditionally, management is ‘art of getting things done by the people’
(Follet, 1933)
 However, in modern view, management involves wide range of functions i.e.
determining the goal(s) and creating an internal environment where
individuals can work efficiently and effectively to accomplish the goal(s) of
the organisation.
 Henry Fayol (1916)- ‘To manage is to forecast and plan, to organize, to
command , co-ordinate and to control’
 Ricky W. Griffin (2005)- ‘Management is the process of planning,
organizing, leading and controlling an organization’ s human, financial,
physical and information resources to achieve organizational goals in an
efficient and effective manner’
 Stoner, Freeman and Gilbert (2005)- ‘The process of planning, leading,
controlling and organizing the work of an organization members and of using
all available organizational resources to reach the organizational goals’.
Management in Organizations
 Peter Drucker (1967)- Efficiency is doing things right; Effectiveness
is doing the right things.
• Effectiveness means creation of value; efficiency is a tool.

Efficiency Effectiveness
Means Ends
Input / Output Goal Attainment

• Can organisations be efficient yet not be effective?

-Yes by doing the wrong things well (Robbins and Decenzo; 2008)
 Class Exercise
 There are three persons in a factory ‘A’, ‘B’ and ‘C’. The manager asked all
of them to fetch some raw materials from the desired store which is 3 km
away from the factory
• Person ‘A’ picked his bicycle went to the store fetch the raw materials and
came back to the factory
• Person ‘B’ hires an cab went to the store fetch the raw materials and came
back to the factory
• Person ‘C’ chose to walk

 Of the three person who is the most efficient?

 Various combinations of managerial effectiveness and managerial
efficiency

Not reaching goals and Reaching goals and not

Efficient not wasting resources wasting resources
Resource
Use
Not reaching goals and Reaching goals and
Inefficient wasting resources wasting resources

Ineffective Effective

Goal Accomplishment
 Administration
 Theo Haimann (1970)- ‘Administration means overall determination
of policies, the setting of major objectives, the identification of general
purposes, the laying down of broad programs and projects and so
forth’.
 Luther Gullick (1937)- ‘Administration has to do with getting things
done; with the accomplishment of defined objectives’

Organization

 Stoner, Freeman and Gilbert (2005)- Two or more people who work
in a structured way to achieve a specific goal or set of goals.
 Ricky W. Griffin (2005)- A group of people working together in
structured and coordinated fashion to achieve a set of goals
 Three Basic Components of Organisation

• Structure
• People
• Goal
 Organisation
(Systematic
arrangement of
people to Hand
accomplish the
objectives)
Administration
(Determines or
formulates the Brain
plans, policies
and objectives)

Management
(To put into effect
the plans, policies Eye
and objectives)
 Difference between administration and management on the basis of
function
Administration
 Top Level Activity
 Decision Making Function
 Thinking Function
 Decides what is to be done and when is to be done
 Represents the ‘Owner of enterprise’.

Management
• Middle Level Activity
• Executive Function
• Doing Function
• Decides how is to be done and who should do it.
• Refers to ‘employees of the enterprise’
 Leaders vs Managers

 Leaders create vision, manager create goals

 A person become leader by the virtue of his personal qualities, a person
become manager by the virtue of his position
 Leaders inspire and coach, managers direct
 Leaders build relationships; managers oversee people and processes
 Leaders take responsibility, managers take credit
 Leaders are change agents, managers maintain the status quo.
 Leaders have followers, managers have employees
 Leaders inspire or motivate, manager direct
 Leaders sell the ideas, manager tell
 Leaders take risks, managers control risks
‘All managers are leaders but not all leaders are managers’?
“Not all leaders are managers, nor all managers are leaders”?
“A good leader is like the sun, giving light to
others, guiding others”
 Class Exercise
 Imagine an organization in which all the physical records
disintegrate overnight. Suddenly, there are no reports, no
computer files, no employee record sheets, no operating
manuals, no calendars – all that remain are the people,
buildings, capital equipment, raw materials and inventory.
Now imagine an organization where all the people simply
quit showing up for work. New people, who are similar in
many ways to the former employees but who have no
familiarity with that particular organization, come to work
instead. Which of the two organizations will be easier to
rebuild to its former status?
 Kim and other writers in the field clearly prefer the first
scenario, where the organization keeps its people and loses
its data, because data can be replaced but what people hold
inside their heads cannot ( tacit knowledge---the unwritten
knowhow, Nonaka and Takeuchi, 1995
 Nature of Management

1. Management is goal oriented

2. Management integrates all four resources: human, information,
physical and financial
3. Management is a continuous process
4. Management is a group activity
5. Management is pervasive
6. Management is universal
 George R. Terry: As a process, management consists of
three aspects

 Management is a social process

 Management is an integrating process
 Management is a continuous process
 The Management Process

Planning
Setting the
organization’s goals
and deciding how
best to achieve them
Organising
Coordinating and
Controlling assembling of
Monitoring and activities and
measuring performance resources
and finding deviations
Leading
Motivating and guiding
people
 Functions of Management

 Stoner, Freeman and Gilbert categorized the functions of

management into 4
1. Planning
2. Organising
3. Leading
4. Controlling
 Ricky W. Griffin sub-headed the functions or process of management
into 5 :
1. Planning
2. Decision Making: selecting a course of action from a set of
alternatives
3. Organizing
4. Leading
5. Controlling
 Levels of Management
 Levels of management refers to the line of demarcation between
different managerial positions in an organisation.

1. Top level (Administration)- Example: In educational institutional-

Vice Chancellor
2. Middle Level (Management)- Example: Dean of different faculties
3. Lower Level (Supervisory)- Example: Chairperson of different
department.
 Jobs and Responsibilities of Four Kind of Managers
(Source: Chuck Williams (2013) Management)

 Change
 Commitment
 Culture
 Environment
Top Managers
(CEO, Vice President,  Resources
Corporate head)  Objectives
Middle Managers  Coordination
(Regional Manager, Plant Manager, Divisional  Subunit performance
Manager)  Strategy implementation

First-line Managers  Non-managerial worker

(Supervisors, Shift manager, Office manager) supervision
 Teaching and training
Team Leaders  scheduling
(Team Leader, Team Contact, Group Facilitator)
 Facilitation
 External Relationships
 Internal Relationships
 Basic Managerial Roles
Henry Mintzberg (1990)

1. Interpersonal Roles- figurehead, leader, liaison

2. Information Roles- monitor, disseminate, spokesperson
3. Decisional Roles- entrepreneur, disturbance handler, resource
handler, negotiator.
 Basic Managerial Skills
1. Technical skills- job-specific skills
2. Interpersonal skills
3. Conceptual skills-Conceptual skills are the abilities that allow an individual
to better understand complex scenarios and develop creative solutions. A
conceptual leader can think through their ideas, transforming thoughts into
action-driven solutions.
4. Diagnostic skills
5. Communication skills
6. Decision-making skills
7. Time-management skills
Managerial Levels and skills

Conceptual and Diagnostic skills

Human Skills

Technical Skills
 Why Management Matters?
1. Gaining competitive advantage
2. Motivate Employees
3. Reduces costs
4. Goal Accomplishment
5. Company Growth
 Emerging Issues and Challenges of Management
 Globalization: New Zealand implement export controls restricting the
export of any goods to Russia that are intended for direct or indirect use by
the Russian military, other security forces, or for the production or
development of military goods.
 For Russian ally Belarus, the EU imposed a ban on imports of products
from mineral fuels to tobacco, wood and timber, cement, iron and steel
 Ethics and Social responsibility: i.e. Grameen Phone, Jamuna Bank
 Workforce diversity
 Empowerment: Google launched a program called ‘Internet Saathi’
 Technology
 Diversity: Modern managers thus have to cope not only with a complex
and rapidly changing world but also with increasingly diverse ways of
thinking about that world, of understanding it and of managing
 Continued….
 Building a Competitive Advantage: i.e. Apple
 Development of the environment
 Quality and productivity
 Innovation and change
 Knowledge management
 Stress Management: i.e. Google has emphasized employee mental
health through resilience training, establishing long-term remote work
plans and offering periodic days off called “reset” days
 Controversies in Management
 the emergence of very large, complex organizations have played an important part in
increasing the demand for managers and the status of management. The quest has
not been simply for more managers but for better quality managers and the more
effective management of people and organizations
 controversies are essentially disputes about ideas. This controversy revolves around
the problematic relationship between knowledge and action, theory and practice
 Why Controversies in Management
 The relationship between knowledge and action in management has been
characterized by Lupton (1984) in terms of the link between ‘fields of knowledge’
and ‘fields of action’. The fields of action are the organizational settings in which
managers work and in which managerial tasks are pursued on an everyday basis. It is
there that managers encounter the challenges, problems and difficulties of practical
management and it is there that practical controversies emerge and are resolved.
The fields of knowledge, on the other hand, consist of the management disciplines
and the activities of research, writing and teaching that embody them
 Continued…
Principles of management Valid or vacuous?
 Are there then any valid principles of management? If we take
principles to mean literally universal generalizations then the
answer must be no
Meritocracy a myth?
 How then do managers get ahead in organizations? Is the ideal of
meritocracy little more than a modern myth
Gender in Management?
 Once it was more or less taken for granted in managerial circles
that management was a male occupation, and mostly it still is.
 Managing all over the world: One way or many?
 Links
Management Functions- youtube
https://www.youtube.com/watch?v=AeHuH39M4QQ

Differences between Managers and Leaders- youtube

https://www.youtube.com/watch?v=8ubRzzirRKs

Inspirational Management Style- Walt Disney

https://www.youtube.com/watch?v=Hq--vfVUIbI

Google Management style

http://iveybusinessjournal.com/publication/distributed-leadership-at-google-lessons-fro
m-the-billion-dollar-brand/
 Semco- Unconventional Management Style
https://www.ted.com/talks/ricardo_semler_how_to_run_a_company_with_almost_no_rules
 References
Donnelly, J.H., Gibson, J.L., & Ivancevich, J.M. (1998) Fundamentals of Management,
10th Edition, Irwin McGraw -Hill, U.S.A.
Williams, C. (2013) Management, 7th Edition, South-Western, USA.
Griffin, R.W. (2005) Management, 8th Edition, Biztantra, New Delhi.
Robbins, S.P. & Coulter, M. (2012) Management, 11th Edition, Prentice Hall, New Jersey.
Certo, S.C. & Certo, S.T. (2012) Modern Management, 12th Edition, Prentice Hall, New
Jersey.
Kreitner, R. (2009) Management, 11th Edition, Houghton Mifflin Harcourt Publishing
Company, Canada.
Mintzberg, H. (1990) ‘The Manager’s Job- Folklore and Fact’, Harvard Business Review,
March-April., p. 1-13.
Robbins, S.P. & DeCenzo, D.A. (2008) Fundamentals of Management, 6th Edition,
Prentice Hall, New Jersey.
Stoner, J.A.F., Freeman, R.E., & Gilbert, D.R. (1995) Management, 6th edition, Prentice
Hall, New Delhi
Thank You All