Chapter 1 Introduction To Management
Chapter 1 Introduction To Management
What is Management?
Definition: It is a set of activities directed at an
organizational resources (human, financial,
physical and information) with the aim of
achieving organizational goals effectively and
efficiently in a changing environment
Efficiency: getting the most output from the least
input
Effectiveness: completing activities so that the
organization’s goals are attained.
Management is…
Efficiency
Efficiency
Getting
Getting work
work
done
done through
through
others
others Effectiveness
Effectiveness
Efficiency & Effectiveness
Efficiency
“Doing things right”
Getting the most output for
the least inputs
Effectiveness
“Doing the right things”
Attaining organizational
goals
Exhibit 1–2 Effectiveness and Efficiency in Management
Characteristics of Management
It is the set of activities
Aims on achieving organizational objectives
Focuses on attaining efficiency and
effectiveness
Copes with environment
Is both science and art
Is an universal activity
Principles of Management
Management by Management by
objectives exception
Division of work Unity of direction
Span of control Unity of functions
Unity of command
Scalar chain
Esprit De Corps
Process and Functions of Management
Planning
Planning is deciding in advance about what to
do, how to do it, when to do it, and who is to
do it.
Planning is deciding in advance what is to be
done and intellectual course of action to be
taken to achieve predetermined goals in time.
Outcome of planning is a strategy
Organizing
The process of deciding
who within an organization will perform what
tasks
where decisions will be made
who reports to whom
how different part of the organization will
coordinate their activities to pursue a common
goal
Leading and Developing
Process of motivating, influencing, and
directing others in the organization to work
productively in pursuit of organizational goals
Developing or staffing refers to the task of
hiring, training, mentoring and rewarding
employees in an organization, including other
managers
Controlling
Process of setting a standard, measuring
performance comparing actual performance
with that of planned performance and take
corrective action if there is any deviation
Cont’
Who Are Managers?
Someone who coordinates and oversees the work
of other people so that organizational goals can
be accomplished.
Managerial hierarchy and levels
Refers to the arrangement of managerial
position in an organization
Managerial hierarchy is divided into different
levels and in each level a manager or a head is
appointed
Each level of hierarchy in an organization
must have a distinct level of responsibility
Cont’
The common managerial hierarchies practiced
in different organizations are as follows:
Top level management
Middle level management
Lower level management
MANAGERIALS LEVELS
Top Level or Executive Management
It is the highest level of management and is
responsible for achieving overall objectives of
the organization
In corporate enterprise, top level management is
constituted with a management committee
elected directly from the shareholders as
members of BODs
This level also includes a chief executive like a
chairman, president, managing director or
general manager
Top Managers
Responsible
Responsible for…
for…
Creating
Creating aa context
context for
for change
change
Developing
Developing attitudes
attitudes of
of commitment
commitment
and
and ownership
ownership in
in employees
employees
Creating
Creating aa positive
positive organizational
organizational
culture
culture through
through language
language and
and action
action
Monitoring
Monitoring their
their business
business environments
environments
Middle Level or Tactical Management
This level consists of functional heads of
different departments and is responsible for
preparing & implementing departmental plans
Top level management delegates a major part
of its authority and responsibility to this level
In some big organizations, this level of
management may have two layers- senior and
junior middle level management
Middle Managers
Responsible
Responsible for…
for…
Setting
Setting objectives
objectives consistent
consistent with
with top
top
management
management goals,
goals, planning
planning strategies
strategies
Coordinating
Coordinating and
and linking
linking groups,
groups,
departments,
departments, and
and divisions
divisions
Monitoring
Monitoring and
and managing
managing the
the performance
performance
of
of subunits
subunits and
and managers
managers who
who report
report to
to them
them
Implementing
Implementing the
the changes
changes or
or strategies
strategies
generated
generated by
by top
top managers
managers
Lower or Operating or Front-line or
supervisory Level Management
Lowest level of management & is directly
involved in implementation of plans
Involved in the actual operation of
production, marketing, financing, accounting,
etc
This level consists of supervisors, sales
officers, accounts officers and other
operational heads
First-Line Managers
Responsible
Responsible for…
for…
Managing
Managing the
the performance
performance of
of
entry-level
entry-level employees
employees
Teaching
Teaching entry-level
entry-level employees
employees
how
how to
to do
do their
their jobs
jobs
Making
Making schedules
schedules and
and operating
operating plans
plans based
based on
on
middle
middle management’s
management’s intermediate-range
intermediate-range plans
plans
Level of Management (In chart)
Managerial Skills
Technical skills
Knowledge and proficiency in a specific field
E.g.: An accountant must have expertise in accounting
Human skills
The ability to understand, alter, lead, communicate, coordinate
and control the behavior of other individuals and groups
Conceptual skills
The ability to think and conceptualize about abstract and
complex situations concerning the organization
Involves seeing the organization as a whole and understand
how parts will affect the whole
Exhibit 1–5 Skills Needed at Different Management Levels
Managerial skills
1. Technical skill.
2. Human skill.
3. Conceptual skill.
Managerial Roles
Interpersonal Informational Decisional
Figurehead
Figurehead Monitor
Monitor Entrepreneur
Entrepreneur
Leader
Leader Disseminator
Disseminator Disturbance
Disturbance
Handler
Handler
Liaison
Liaison Spokesperson
Spokesperson
Resource
Resource
Allocator
Allocator
Negotiator
Negotiator
Roles of Managers
1. Interpersonal Role:
Interpersonal role is concerned with maintaining
formal and informal relation with employees and
with public at large.
Figurehead.
Leader.
Liaison.
i. Figurehead
This role consists largely of such ceremonial work
as greeting and receiving visitors, chairing board
meeting, distributing gifts etc.
ii. Leader
The leadership role involves directing, coordinating,
motivating, staffing, leading and controlling activities.
iii. Liaison
This role involves maintaining relations internally
with different units and externally with the society
for building the image, gathering resources etc.
Roles of Manager
2. Informational Role:
Informational role of manager consists of
receiving, collecting and circulating non-routine
information. The sources of information are
different.
Informational role are characterized by three
activities
Monitor role.
Disseminator role.
Spokesperson role.
i. Monitor
Relates with the assessment and watching
over the activities taking place in and
around the organization.
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ii. Disseminator
This role of manager provides information
to subordinates and keep them informed of
what is going on around the organization
and the precautions to be taken.
iii. Spokesperson
This role of manager involves representing the
unit of work to explain to organizational members
and outsiders about the related issues of their
interest.
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Roles of Manager
3. Decisional Role:
Decisional roles of manager involves negotiations and
compromises with competing or conflicting interests.
The four important decisional roles are
i. Entrepreneurship role.
ii. Disturbance handler role.
iii. Resource allocator role.
iv. Negotiator role.
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i. Entrepreneurship Role
This roles involves initiating change or acting as a
change agent and taking risks for better performances.
For example, an effective marketing manager
continually seeks new product ideas.
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ii. Disturbance Handler Role
This role is related with maintaining smooth
working environment and organizational stability
by solving problems of disagreements and
conflicts.
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iii. Resource allocator role
This role deals with the managerial function of
allocating resources (money, people, time,
equipment, etc.) to different units and subordinates.
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iv. Negotiator role
This role of manager involves bargaining with
other unit and individuals to obtain advantage for
his unit.
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Emerging Issues and Challenges of
Management
Globalization Technology
Quality assurance and Workplace spirituality
productivity Knowledge
Ethics and social management
responsibility
Innovation and change
Workforce diversity
Empowerment of
employees