MANAGEMENT

&
ORGANISATIONAL
BEHAVIOUR.

MBA SEM-1
(Module 1 – Introduction)
 Module-1 – INTRODUCTION
MEANING OF MANAGEMENT
• The term 'management' stands for the act of planning, organising, directing and controlling the activities of
human beings and physical resources with the intention of accomplishing a predefined objective.
• It is 'an activity' or ‘a process' executed by 'a group of people' dynamically engaged with the authorities to
make decisions or
policies.
• Management is the job of a manager, who exhibits the art of managing the people and getting the things done
with the help of formally organised groups of people.
• According to Peter Drucker –
"Management is a multipurpose organ that manages a business, manages
manager and manages workers and work".
• According to Koontz and O’ Donnel -
"Management is the creation and maintenance of an internal environment in an enterprise where
individuals, working in groups, can perform efficiently and effectively toward the attainment of group
goals. It is the art of getting the work done through and with people in formally organised groups".
 Module-1 – INTRODUCTION
NATURE OF MANAGEMENT
Nature of management can be explained with the help of the following points :
1) Continuous Process:
2) Management as a Career:
3) Management as a Science as well as an Art:
4) Goal-Oriented:
5) Guidance:
6) Management is a Human Activity:
7) Management Denotes Authority:
8) Management is Universal:
9) Management Ensures Coordination:
10) Management is Dynamic:
11) Management is Primarily a Leadership Activity:
12) Management is Decision-Making:

(Detail notes in word file)

 Module-1 – INTRODUCTION
The Evolution Of Management

The Evolution Of Management

• The approaches of management are theoretical frameworks for the study of
management.
• The different approaches of management are
A) Classical approach,
B) Behavioural approach,
C) Quantitative approach,
D) Systems approach,
E) Contingency approach.
Contribution of TAYLOR and FAYOL

(Detail notes in word file)

Module-1 – INTRODUCTION

Management Science Or Art

(Detail notes in word file)

Module-1 – INTRODUCTION

Functions of Management - Planning And Decision Making.

• PLANNING :
Planning is the effort to attain the expected outcome through a
determined future course of action.
It involves –
the visualization of activities that needs to be done,
the methods for doing them,
where they are to be done,
what will be the outcome and
the methods to evaluate the outcome.
Module-1 – INTRODUCTION

Functions of Management - Planning And Decision Making.

Approaches to planning include:

Strategic planning:
Strategic planning usually creates goals for the entire organization. It analyses threats to the
organization, evaluates the organization's strengths and weaknesses and creates a plan of how the
organization can best compete in its environment. Strategic planning usually has a long timeframe
of three years or more.

Tactical planning:
Tactical planning is the shorter-term planning of an objective that takes a year or less to achieve.
Organizations usually use tactical planning to improve a department or area such as its facilities,
production, finance, marketing .

Operational planning:
Operational planning links strategic and tactical goals, specifying the daily actions that can achieve
them. Operational planning also creates a timeframe for putting each portion of the strategic goal
into practice.
 Module-1 – INTRODUCTION

Functions of Management - Planning And Decision Making.

DECISION MAKING
Decision making in management is the process of making a choice between
two or more options.
This involves evaluating the pros and cons of various choices and choosing the
best option to achieve a desired outcome.
In management decision making is about acting in a way that meets
organizational goals and objectives.
It allows managers to set goals and figure out what actions are needed to meet
those goals, and evaluate whether those actions are working as intended.
 Management decision meaning refers to managers guiding their organizations
down the right path toward success.
Module-1 – INTRODUCTION

Functions of Management - Planning And Decision Making.

Decision Making Process In Management

Establishing Objectives
Identify the Decision
Gather Appropriate Information
Identify the Alternatives
Weigh the Evidence
Choose Among the Alternatives
Take Action
Review the Decision
 Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

ORGANISING
Organising means -
the process of forming a framework or a structure
which helps the employees to work effectively
for achieving the
objectives, vision or goals
laid down by an organisation.

 In small-scale organisations, organising is relatively simple.

It involves deciding the necessary tasks to be performed and assigning them
to various employees.
 In large business organisations, organising is more complicated.
It involves the division of work, assigning jobs to respective business units,
departments, and sections, and delegating authority to different positions within
Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

Importance Of Organising
1. Increases the Management Efficiency
2. Optimally Utilises Human Resource
3. Helps in Organisational Growth
4. Provides Importance to Every Department
5. Improves Coordination
Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

Principles of Organizing
1. Principle of Specialization
2. Principle of Functional Definition
3. Principles of Span of Control/Supervision
4. Principle of Scalar Chain
5. Principle of Unity of Command
 Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

STAFFING
The management process by which an organization obtains, maintains, and utilizes a
satisfied and suitable pool of employees is called staffing.
It can be seen as an activity of recognizing, evaluating, deploying, appraising, and
building people at work.
With staffing, an organization can properly manage its employees.
It is considered one of the most vital aspects of managerial activities.
The success of an organization largely depends upon its ability to fill its various
designations with the correct set of personnel.
According to Mc Farland -
“Staffing is the function by which managers build an organization through
recruitment, selection, and development of individuals as capable employees”.
Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

Nature Of Staffing
1. Managerial Function.
2. Constant Activity.
3. Effective Management Of Employees.
4. Suitable Selection and Placement.
5. Universal Function.
 Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

Factors Affecting Organizational Staffing

1 External Factors 2 Internal Factors

(i) Compliance Issues (i) Business Plan of the Organisation
(ii) Socio-Cultural Factors (ii) Organisational Size
(iii) Political Influences (iii) Image of the Organisation
(iv) Competition for Human Resources
Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

Process Of Staffing
Step 1 : Manpower Planning
Step 2 : Job Analysis
Step 3 : Recruitment
Step 4 : Selection
Step 5 : Placement
Step 6 : Induction and Orientation
Step 7 : Training and Development
Step 8 : Performance Appraisal
Step 9 : Compensation
Step 10 : Promotion and Transfer
Module-1 – INTRODUCTION

Functions of Management - Organizing & Staffing

Importance Of Staffing :
1) Key to other managerial activities.
2) Creating healthy employee relationship.
3) Human resource development.
4) Long-term impact.
5) Prospective Involvement.
Module-1 – INTRODUCTION

Functions of Management - Controlling & Directing

CONTROLLING
• Controlling is seeing that actual performance is guided towards expected
performance .
• All other functions of management cannot be completed effectively without
performance of the control function.
• It implies measurement of accomplishment against the standards and correction of
deviation, if any, to ensure achievement of organizational goals.
• The efficient system of control helps to predict deviation before they actually occur.
• Controlling seeks to make sure that all other processes like planning, organizing,
staffing, and directing are properly executed and conducted to achieve the same
organizational goal.
• According to Theo Haimann -
"Controlling is the process of checking whether or not proper progress is
being made towards the objectives and goals and acting if necessary, to correct any
Module-1 – INTRODUCTION

Functions of Management - Controlling & Directing

Importance of Controlling
1) Basis of future action
2) Facilitates decision making
3) Facilitates discipline and order
4) Facilitates Coordination
5) Facilitates motivation
Module-1 – INTRODUCTION

Functions of Management - Controlling & Directing

Controlling Process
Controlling as a management function involves following steps -
1) Establishment of standards.
2) Measurement of Performance.
3) Comparison of Actual and Standard Performance.
4) Taking remedial action.
 Module-1 – INTRODUCTION

Functions of Management - Controlling & Directing

DIRECTING
• Directing refers to the process of instructing, guiding, counselling, motivating, and
leading personnel to realise organisational goals or mission.
• Directing includes supervising people at the workplace, supplying required resources,
providing conducive working conditions, and inspiring employees to deliver unmatched
performance.
• Directing integrates employees' efforts in the organisation in such a way that every
individual effort contributes to increasing organisational performance.
• The manager must stimulate action by giving direction to his subordinates through
orders and also supervise their work to ensure that the plans and policies achieve the
desired actions and results.
• According to Koontz and O'Donnel,
"Direction is a complex function that includes all those activities designed to
encourage subordinates to work effectively and efficiently in both the short and long run.“
 Module-1 – INTRODUCTION

Functions of Management - Controlling & Directing

Importance of Directing
1) Initiates action:
2) Creates a Sound work environment:
3) Develops managers:
4) Behavioural satisfaction:
5) Increase in productivity:
Module-1 – INTRODUCTION

Functions of Management - Controlling & Directing

SCOPE OF DIRECTING / ELEMENTS OF DIRECTING

1. Supervision
2. Leadership
3. Motivation
4. Communication

********************Module 1 END**************************