FUNDAMENTALS OF

MANAGEMENT
Dr. Richa Chaudhary,
Associate Professor, Department of HSS, IIT
Patna
GROUND RULES
 Mobiles to be switched off before entering the class
 Students will not be allowed to enter the class five

minutes of commencement of lecture.

 Assignments/Presentations/Projects to be submitted

on or before the deadline. No request for extension of

deadline shall be entertained.
EVALUATION

Percentage
Components of Course Evaluation
Distribution

Surprise Quizzes 10%

Project/Assignment/Cases/
40%
Presentations

Mid Term Exam 20%

End Term Exam 30%

PEDAGOGY/INSTRUCTIONAL
APPROACH
 Discussions
 Case Studies

 Experiential Exercises

 Role Plays

 Self-assessments

 Film Analysis

 Presentations & Team Work

 COURSE OBJECTIVES

 The course aims at providing fundamental

knowledge and exposure to the concepts,
theories and practices in the field of
management.

 Familiarize with the basic management

concepts and applications.

 inculcate the ability to apply the

multifunctional approach to organizational
objectives and appreciate the significance
and applications of various managerial
COURSE CONTENT

 Unit I: Management Science, Theory and

Practice
 Unit 2: Planning and Decision Making

 Unit 3: Organizing and staffing

 Unit 4: Leading

 Unit 5: Controlling
COURSE CONTENT
 Unit I: Management Science, Theory and
Practice:
Definition, Nature, scope and significance of
Management, Systems approach to
Management, Management functions,
Managerial roles, Management skills,
Management process, Evolution of
Management: Early management, Classical
approaches: Scientific management and
General administrative theory, Behavioral
approach, Quantitative approach,
contemporary approaches, Management and
society, Managing in a global environment,
Modern management challenges
COURSE CONTENT
 Unit 2: Planning and Decision Making:
Planning concept, significance, process and
tools, Goals and plans, Management by
objectives, Decision making: forms, process,
approaches: bounded rationality, evidence-
based management, and techniques, Strategic
planning: Strategies, Tactics, and competitive
dynamics

 Unit 3: Organizing and staffing:

Fundamentals of organizing, Organizational
design and structure, Responsibility, authority
and delegation, Managing human resources,
Organization change and development
COURSE CONTENT
 Unit 4: Leading: Influencing and
communication, Understanding and
managing individual behavior, Effective
Leadership, Motivation, Creating and
managing teams

 Unit 5: Controlling: Controlling concept,

significance, process, and techniques,
information systems, production and control:
operations management, operations control,
total quality management, contemporary
issues in control
BOOKS
Test Book:
 Robbins, Coulter, & Fernandez (2019).

Management (14th ed.), Pearson Education.

 Koontz, Heinrich, & Cannice (2020).

Essentials of Management: An International,

Innovation and Leadership Perspective (11th
Ed.), McGraw Hills.

Reference Books:
 Certo and Certo (2015). Modern

Management; Concepts and Skills (15th ed.),

Pearson Education.
MANAGERS AND
MANAGEMENT
Think about your personal or family budget
for a moment, and answer the following
questions:

1)Do you have your budget written down

somewhere, or in an excel spreadsheet?
2) What are your financial goals?
3) How much do you put in savings, charity,
and monthly expenses?
4) Where does your money come from (a job,
your parents, a hobby)?
5) If you have a budget shortfall during the
month, what do you do?
6) How do you keep track of expenses to ensure
your bank account remains in the black?
POINTS FOR DISCUSSION
 Who manager are and where they work?
 What is management?

 What manager do?

 Why it is important to study management?

 Describe the factors that are reshaping and

redefining management.
WHO ARE MANAGERS?
WHERE DO THEY WORK?
 Organisation:
- A deliberate arrangement of people brought
together to :-accomplish a specific purpose.

 Common Characteristics of
organisations
 Goal
 People
 Structure
THREE CHARACTERISTICS OF
ORGANISATIONS
HOW MANAGERS ARE DIFFERENT FROM
NON MANAGERIAL EMPLOYEES?
 Non Managerial Employees
 People who work directly on a job or task and
have no responsibility to oversee the work of
other
 Example: associates and team member

 Managers
 Individuals in the organisation who directs
the activities of others.
 LEVELS IN MANAGEMENT

TOP LEVEL Board of Directors

MANAGEMENT

Chairman

Chief Executive

MIDDLE LEVEL Departmental Heads

MANAGEMENT

Divisional Heads

Sectional Officers

LOWER LEVEL
Senior Supervisors
MANAGEMENT

Functional Supervisors

Frontline Supervisors
WHAT MANAGER DO?
WHAT IS MANAGEMENT?

 Management is the process of getting things

done, effectively and efficiently, through and
with other people.
 Effectiveness

“Doing the right things” the task that helps an

organisation to reach its goals.
 Efficiency

“Doing things right” the efficient use of

resources as people, money and equipment.
DIFFERENT VIEWS ON FUNCTIONS OF
MANAGEMENT
 Henry Fayol- planning, organizing,
commanding, coordinating, controlling
 Koontz and Weihrich - planning,

organizing, staffing, leading, controlling

 R Terry- planning, organizing, staffing,

controlling
 FUNCTIONS OF MANAGEMENT

1. Planning Defining the purpose and ways to achieve its objectives.

(including forecasting and decision-making)

2. Organizing Arranging and structuring work to accomplish organizational

goal. (including delegating)

3. Staffing : selecting right set of people for the organization.(including

manpower planning, recruitment and selection, training and
development, etc.)

4. Directing : Directing the work activities of others (including

motivation, leadership, communication, and supervision); sometimes,
it is called it as coordination because coordination is a result of direction.

5. Controlling (including budgeting and reporting)

THE FOUR FUNCTIONS OF
MANAGEMENT
MANAGEMENT FUNCTIONS
MANAGEMENT FUNCTIONS
 Planning
 determining organizational goals and a means
for achieving them

 Organizing
 deciding where decisions will be made, who will
do what jobs and tasks, and who will work for
whom in the company
MANAGEMENT FUNCTIONS
 Leading
 inspiringand motivating workers to work hard
to achieve organizational goals

 Controlling
 monitoring progress toward goal achievement
and taking corrective action when progress
isn’t being made
MINTZBERG’S
MANAGERIAL
ROLES
INTERPERSONAL ROLES
 Figurehead
 managers perform ceremonial duties
 Leader
 managers motivate and encourage workers to
accomplish organizational objectives
 Liaison
 managers deal with people outside their units
INFORMATIONAL ROLES
 Monitor
 managers scan their environment for
information and receive unsolicited information
 Disseminator
 managers share information with subordinates
and others in the company
 Spokesperson
 managers share information with people
outside of the company
DECISIONAL ROLES
 Entrepreneur
create and control change within the organization.
This means solving problems, generating new ideas,
and implementing them
 Disturbance handler
 managers respond to problems so severe that
they demand immediate action
 Resource allocator
 managers decide who will get what resources and
in what amounts
 Negotiator
 managers negotiate schedules, projects, goals,
outcomes, resources, and employee raises
WHAT SKILLS DO MANAGERS
NEED?
Robert Katz and others describe four
critical skills in managing
• Conceptual Skills
– Used to analyze and diagnose complex situations
• Interpersonal Skills
– Used to communicate, motivate, mentor and
delegate
• Technical Skills
– Based on specialized knowledge required for
work
IS THE MANAGER’S JOB UNIVERSAL?

• Level in the Organization

– Top level managers do more planning than supervisors
• Profit vs. Nonprofit
– Management performance is measured on different
objectives
MANAGEMENT ACTIVITIES BY ORGANIZATION LEVEL
IS THE MANAGER’S JOB UNIVERSAL? (CONT’D)

 Size of the Organization

 Small
businesses require an emphasis in the
management role of spokesperson
MANAGERIAL ROLES IN SMALL AND LARGE
BUSINESSES
WHY STUDY
MANAGEMENT?

• All of us have a vested

interest in improving the way
organizations are managed

• Organizations that are well

managed find ways to
prosper even in challenging
economic times

• After graduation most

students become managers
or are managed 1-
37
 https://www.youtube.com/watch?v=DjDHryW
bbWo
CHANGING BUSINESS
ENVIRONMENT
 The changing economy
 Globalization

 Technology

 Society

 Workforce

 Customers

 Innovation
 THE CHANGING ECONOMY
OLD ECONOMY NEW ECONOMY
National borders limits National borders are nearly
competition meaningless in defining an
organization’s operating
boundaries
Technology reinforces rigid Technology changes in the way
hierarchies and limits access to information is created, stored,
information used, and shared have made it
more accessible
Job opportunities are for blue Job opportunities are for
collar industrial workers knowledge workers
Population is relatively Population is characterized by
homogenous cultural diversity
Business is estranged from its Business accepts its social
environment responsibility
Economy is driven by large Economy is driven by small
corporations entrepreneurial firms
Customers get what business Customer needs drive business
chooses to give them
HISTORICAL ROOTS OF
CONTEMPORARY
MANAGEMENT PRACTICES
THE EVOLUTION OF MANAGEMENT
THOUGHT

Frederick Taylor (Scientific

Management)

Henry Fayol -Father of Modern

Operational Management Theory

Elton Mayo and F. Roethlisberger

(Hawthorne Studies)

Modern Contributors to
Management Thought
TAYLOR'S PRINCIPLES OF SCIENTIFIC
MANAGEMENT
 Science not the rule of thumb

 Harmony not discord/ cooperation between employers

and employees

 Scientific selection, training and development

 Division of work/ responsibility

 Achieving maximum output (incentive wage plans)

FRANK AND LILLIAN GILBRETH
 Time and motion studies

 https://www.youtube.com/watch?
v=9fQJfap7SAQ
HENRY L. GANTT
HENRI FAYOL, THE FATHER OF
MODERN MANAGEMENT THEORY
HENRY FAYOL, THE FATHER OF
MODERN MANAGEMENT THEORY
HENRY FAYOL, THE FATHER OF
MODERN MANAGEMENT THEORY
HENRY FAYOL, THE FATHER OF
MODERN MANAGEMENT THEORY
HENRY FAYOL, THE FATHER OF
MODERN MANAGEMENT THEORY
MAX WEBER: BUREAUCRACY
 Division of labor
 Authority Hierarchy

 Formal Selection

 Formal Rules and Regulations

 Impersonality

 Career Orientation
HUMAN RESOURCES APPROACH
 The Hawthorne Studies
 Elton Mayo and F.J. Roethlisberger
QUANTITATIVE APPROACHES
• Quantitative Approach
 Used quantitative techniques to improve
decision making
 Evolved from mathematical and statistical
solutions developed for military problems during
World War II
 W. Edwards Deming and Joseph M. Juran ‘s ideas
became the basis for total quality
management (TQM)
CONTEMPORARY APPROACHES
 Focused on managers’ concerns inside the
organization

 Chester Barnard wrote in his 1938 book The

Functions of the Executive that an organization
functioned as a cooperative system

 Fred Fiedler first popularized the contingency

approach (or situational approach) which
says that organizations, employees, and
situations are different and require different ways
of managing
SYSTEMS APPROACH TO MANAGEMENT
SYSTEMS APPROACH TO MANAGEMENT
THE MANAGEMENT
ENVIRONMENT
BUSINESS ENVIRONMENT
 Economic
 Globalization

 Technology

 Socio-cultural

 Political

 Legal

 Environmental

 Demographic
GLOBALIZATION
 24x7 work culture
 Cultural sensitivity

 Competition

 Quality
BORDERLESS ORGANIZATIONS:
 A management structure in which internal
arrangements that impose artificial
geographic barriers are broken down.

 MNCs: Companies that maintain significant

operations in two or more countries
simultaneously but are based in one home
country.

 TNCs: A company that maintains significant

operations in more than one country
simultaneously and decentralizes decision
making in each operation to the local country
HOW DO ORGANIZATIONS GO
GLOBAL?
• Global Sourcing
– Purchasing materials or labor from around the
world wherever it is cheapest
• Exporting
– Making products domestically and selling them
abroad
• Importing
– Acquiring products made abroad and selling
them domestically
GOING GLOBAL (CONT.)
• Licensing
– An agreement primarily used by manufacturing
businesses in which an organization gives
another the right, for a fee, to make or sell its
products, using its technology or product
specifications
• Franchising
– An agreement primarily used by service
businesses in which an organization gives
another organization the right, for a fee, to use
importing its name and operating methods
GOING GLOBAL (CONT.)
• Global Strategic Alliance
– A partnership between an organization and a
foreign company partner(s) in which resources
and knowledge are shared in developing new
products or building production facilities
• Joint Venture
– A specific type of strategic alliance in which the
partners agree to form a separate, independent
organization for some business purpose
GOING GLOBAL (CONT.)
• Foreign
Subsidiary
– A direct
investment in a
foreign country
that involves
setting up a
separate and
independent
facility or office
 WHAT DO MANAGERS NEED TO KNOW?

• Parochialism
– A narrow focus in which managers see things
only through their own eyes and from their own
perspective
• All countries have different values,
morals, customs, political and
economic systems, and laws, all of
which can affect how a business is
managed
HOFSTEDE’S FRAMEWORK
• Geert Hofstede
– Studied differences in culture and found that
managers and employees vary on five value
dimensions of national culture:
1. Power Distance
2. Individualism vs. Collectivism
3. Achievement vs. Nurturing
4. Uncertainty Avoidance
5. Long-term vs. Short-term Orientation

https://www.hofstede-insights.com/country-comparison-
tool
ECONOMIC ENVIRONMENT
 GDP
 Exchange rates

 Taxation

 Inflation

 Monetary policy

 Recession
SOCIO-CULTURAL ENVIRONMENT
 Culture
 Language

 Social systems: family dynamics, gender

roles, and community structures, social

norms
 Religion

 Tradition

 Customs

 values,

 beliefs,

 attitudes,
DEMOGRAPHIC ENVIRONMENT
 Age
 Gender

 Education

 Income

 Occupation
AGEING SOCIETIES

Percentage of elderly population in the country projected to double

to over 20% of total population by 2050, the United Nations
Population Fund, India (UNFPA) in its 2023 India Ageing Report has
said that by 2046 it is likely that elderly population will have
surpassed the population of children (aged 0 to 15 years) in the
country.
As of 2023, Monaco had the highest percentage of people
over 65 in its population at 36%, followed by Japan at 29%
and Portugal and Bulgaria at 24%
WORKFORCE
 Workforce diversity
• Gender
• Age
• Race
• Sexual Orientation
• Ethnicity
• Cultural Background
• Physical Abilities and Disabilities
 Contingent workforce
 Outsourcing

 Rightsizing
FLEXIBLE BENEFITS
 Srijit is married and has three young children;
his wife is at home full-time. His Citigroup
colleague Priyanka is married too, but her
husband has a high-paying job with the
government, and they have no children. Srijit
is concerned about having a good medical
plan and enough life insurance to support his
family in case it’s needed. In contrast,
Priyanka’s husband already has her medical
needs covered on his plan, and life insurance
is a low priority. Priyanka is more interested
in extra vacation time and long-term financial
benefits such as a tax-deferred savings plan
FLEXIBLE BENEFITS
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TECHNOLOGY AND MANAGEMENT
 Efficiency
 Agility

 Telecommuting

 E-commerce

 Social Media

 Work/life balance
QUALITY AND CUSTOMER SERVICE
PESTLE ANALYSIS
 Political
 Economic

 Social

 Technological

 Legal

 Environmental