Unit 1

F U N D A M E N TA L S O F M A N A G E M E N T
 Introduction to Management

Definitions : “Management is the process of designing and maintaining an

environment in which individuals, working together in groups, efficiently
accomplish selected aims.”
“ Management is an art of knowing what to do, when to do and see that it is
done in the best and cheapest way.”
1. The act, manner, or practice of managing; handling, supervision, or
control: management of a crisis; management of factory workers.
2. The person or persons who control or direct a business or other
enterprise.

3. Skill in managing; executive ability .

 Meaning of Concept

“ Concept is the idea or image or understanding about things, activity or a

person that emerges in the mind of a person.

There are three basic concepts of Management

1. Management as a Discipline
2. Management as a Group of People
3. Management as a process

Our Promise Is to build a long term relationship based on professionalism,

communication, integrity and trust!
 Characteristics of management:

i. Management is a goal-oriented process

ii. Management is all pervasive
iii. Management is multidimensional
iv. Management is a continuous process
v. Management is a group activity
vi. Management is a dynamic function
vii. Management is an intangible force
viii. Management as Profession
ix. Management is Continuous
x. Management: Science or Art
Significance/Objectives of Management

 Getting Maximum Results with Minimum Efforts

 Increasing the Efficiency of factors of Production
 Maximum Prosperity for Employer & Employees
 Human betterment & Social Justice
 It helps in Achieving Group Goals
 Optimum Utilization of Resources
 Reduces Costs
 Establishes Sound Organization
 Establishes Equilibrium
Management Practices from Past to Present

 1910s-1940s: Management as Science : focused on increasing productivity

and efficiency through standardization, division of labour, centralization and hierarchy
 1950s-1960s: Functional Organisations : Managers began to understand the
human factor in production and productivity and tools such as goal setting,
performance reviews and job descriptions were born.
 1970s: Strategic Planning : resource allocation and tools like Strategic Planning
(GE), Growth Share Matrix (BCG) and SWOT were used to formalise strategic
planning processes
 1980s: Competitive Advantage : Tools like Total Quality Management (TQM), Six
Sigma and Lean were used to measure processes and improve productivity.
Employees were more involved by collecting data, but decisions were still made at the
top, and goals were used to manage people and maintain control.
 1990s: Process Optimisation : . TQM, Six Sigma and Lean remained popular and a
more holistic, organisation-wide approach and strategy implementation took the stage
with tools such as Strategy Maps and Balance Scorecards.
 2000s: Big Data : Largely driven by the consulting industry under the banner of Big
Data, organisations in the 2000’s started to focus on using technology for growth and
value creation. Meanwhile, oversaturation of existing market space drove to concepts
such as Blue Ocean Strategy and Value Innovation.
Levels of management
 Levels of management

1 . Top Level Management

Top level management consists of Chairman, Board of Directors, Managing
Director, General Manager, President, Vice President, Chief Executive Officer
(C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer etc. It
includes group of crucial persons essential for leading and directing the efforts
of other people. The managers working at this level have maximum authority.
Main functions of top level management are :-

(a) Determining the objectives of the enterprise. The top level managers
formulate the main objectives of the organization. They form long term as well
as short term objectives.
(b) Framing of plans and policies. The top level managers also frame the plans
and policies to achieve the set objectives.
(c) Organizing activities to be performed by persons working at middle level.
The top level management assigns jobs to different individuals working at
middle level.
(d) Assembling all the resources such as finance, fixed assets etc. The top level
management arranges all the finance required to carry on day to day activities.
They buy fixed assets to carry on activities in the organization.
(e) Responsible for welfare and survival of the organization—Top level is
responsible for the survival and growth of the organization. They make plan to
run the organization smoothly and successfully.
 Levels of management

 Middle level management-:This level of management consists of

departmental heads such as purchase department head, sales department
head, finance manager, marketing manager, executive officer, plant
superintendent, etc. People of this group are responsible for executing the plans
and policies made by top level. They act as a linking pin between top and lower
level management.
 Functions of Middle level management-:
 (a) Interpretation of policies framed by top management to lower level.
 (b) Organizing the activities of their department for executing the plans and
policies.
 (c ) Finding out or recruiting/selecting and appointing the required employees for
their department.
 (d) Motivating the persons to perform to their best ability.

 (e) Controlling and instructing the employees, preparing their performance reports
etc.
 (f) Cooperate with other departments for smooth functioning.
 (g) Implementing the plans framed by top level.
 Supervisory Level/Operational
Level

 This level consists of supervisors, superintendent, foreman,

sub-department executives; clerk, etc. Managers of this group
actually carry on the work or perform the activities according
to the plans of top and middle level management. Their
authority is limited.
 Functions of Supervisory Level-:
 Representing the problems or grievances of workers before
the middle level management.
 Maintaining good working conditions and developing healthy
relations between superior and subordinate.
 Looking to safety of workers. Supervisory level managers
provide safe and secure work environment for workers.
 managerial skills-:

1. Leadership: The ability to inspire, motivate, and guide a team towards the
achievement of common goals.
2. Communication: The ability to clearly and effectively communicate ideas, goals, and
expectations to both individuals and groups.
3. Problem-solving: The ability to identify and solve problems in a creative and efficient
manner.
4. Decision-making: The ability to make informed and effective decisions, considering
both the available information and the potential consequences.
5. Strategic thinking: The ability to think critically and creatively about long-term goals
and plans.
6. Organizational skills: The ability to prioritize tasks, manage time effectively, and
maintain a focus on the most important objectives.
7. Adaptability: The ability to adjust to changing circumstances and respond quickly to
new challenges.
8. Interpersonal skills: The ability to effectively interact with people from a variety of
backgrounds and build positive relationships.
9. Financial acumen: The ability to understand and manage financial data and make
informed decisions about budgets and resource allocation.
10.Technical proficiency: The ability to understand and use technology effectively in
order to achieve organizational goals.
 Functions of Management
1. Planning: This involves defining goals and objectives, as well as
developing a plan of action to achieve those goals. This includes
identifying resources, setting priorities, and making decisions
about how to allocate those resources.
2. Organizing: This involves arranging resources and establishing
systems and processes to ensure that work is completed
efficiently and effectively. This includes establishing roles and
responsibilities, allocating tasks, and developing procedures and
protocols.
3. Leading: This involves inspiring and motivating employees to
achieve common goals. This includes setting a positive example,
providing support and guidance, and communicating
expectations clearly.
4. Controlling: This involves monitoring progress, comparing
actual results to expected results, and taking corrective action
when necessary. This includes conducting regular performance
reviews, monitoring financial data, and assessing the
 Roles of manager-:

1. Interpersonal Roles: These involve working with and through people, and
include the following roles:
• Figurehead: The manager represents the organization and performs ceremonial
and symbolic duties. The figurehead performs symbolic legal or social duties. the
manager is seen as a symbol of status and authority.
• Leader: The manager provides direction and guidance to employees, motivates
and inspires them to achieve common goals.
• Liaison: The manager establishes and maintains relationships with other people
and outside of the organizations.
2. Informational Roles: These involve processing and disseminating information,
and include the following roles:
• Monitor: The monitor seeks internal and external information about issues that
can affect the organization internally or externally.
• Disseminator: The manager receives and sends information to others within and
outside the organization.
• Spokesperson: The manager communicates information and represents the
organization to external stakeholders or the social platforms.
 Roles of a manager-:

3. Decisional Roles: These involve making decisions and solving

problems, and include the following roles:
• Entrepreneur: (a person who sets up a business or businesses,
taking on financial risks in the hope of profit) The entrepreneur
acts as an initiator designer and encourages change and
innovation.
• Disturbance handler: The disturbance handler takes
corrective action when the organization faces important,
unexpected difficulties.
• Resource allocator: The resource allocator distributes
resources of all types, including time, funding, equipment, and
human resources.
• Negotiator: The manager participates in negotiations with
other organizations and individuals .
 Manager

A manager is a person responsible for

controlling or administering an
organization or group of staff. They are
responsible for leading a team of
employees to meet goals and achieve
performance metrics. Managers are
often the line of communication
between a company’s employees and
its high-level executives.
 Qualities of a Good manager

Transparancy-:Employees expect you to be transparent

with them. They want to know what’s going on with their
company and how they are doing. They want direct and
honest feedback regularly, and a manager who wo
Excellent Communication-:Communication doesn’t
only happen face-to-face — it happens via email, chat
applications, body language, and much more. Managers
need to communicate with their employees in ways that
make them comfortable
Listening Skills-:Take the time to focus on your
employees and what they are saying. When you get
valuable feedback, make a conscious effort to take
action based on it.
 Qualities of a good manager

4. Trustworthiness-:Good managers are trustworthy, and they

respect confidentiality. Employees need to have faith in their leaders
and know that their managers have their employees’ best interests at
heart. If your employees feel like you don’t support them, it’ll lead to a
toxic work environment, reduced collaboration, and unhealthy
competition in your workplace.
 5. A Willingness to Change-:The world of work is constantly
shifting. The ways we operate in terms of technology, motivating
employees, and reviewing performance are processes constantly
subject to change. From year to year, your business will look different —
and this is a good thing.
 6.Empowering and Motivating Your Team-:Every generation and
individual is motivated by different things. Good managers can relate to
every member of their team, which will help them understand how to
empower and motivate employees to get the best out of them